Purchase Card Basics

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Purchase Card Basics
A Refresher Course for Card Holders and Approving
Officials Department of Commerce Frank Krempa
April 2004
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DOC Purchase Card Training

• INTRO
• ESTABLISHING KNOWLEDGE BASELINE
• COURSE MATERIAL OUTLINE
• MEASURING TRAINING EFFECTIVENESS
• COURSE EVALUATION

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Training Outline

• Why use Bankcards?
• Process and mechanics of getting a card
• Things a Bankcard holder needs to know
• How do I properly use a card ?
• Purchasing process
• Documentation requirements
• WARNINGS !
• Prohibited items and practices
• Using the card, getting quotes
• Checks and balances
• Reviews and audits
• Miscellaneous topics
• Convenience checks, proposed credits history
  checks
• Changes and new policies
• References

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Why use the Government Purchase Card?

• Purchase cards save money
• You are in control
• Its faster
• Merchants are happier

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Obtaining a Government Purchase Card

• Your Approving Official nominates you.
• Take your Online Training.
• Submit an Account Set-up Form you need
  your Hierarchy and your Account Codes - ask your
  admin officer.
• Verification is Mothers Maiden Name.
• Bankcard Center Needs your SSAN.
• Include SPL and Cycle Limit.

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Smith
Jane
O.
DOC OS (Director Acronym) (Office Acronym)
Mothers Maiden Name
222-33-4444
Filling out the form.
1401 Constitution Ave, N.W.
202-482- Your Desk
Room or Office Routing Code
Washington DC
20230
Your Email Address _at_doc.gov
202-Your FAX
2004 51 0153000 000 11 09 0000 00 00 00 00 25 99
00 00 Check w/ your Admin/Budget folks.
01300 81539 ????? ?????
10,000
2,500 unless SAP Training
Approving Official Signature
Date
Name
Phone Number
Fax Number
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Cardholder Responsibilities

• Secure the card.
• Maintain a purchase log.
• Make informed buys of approved products or
  services.
• Have funds available.
• Respect single purchase and cycle limits.
• Reconcile and document transactions.
• Use card ethically.

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Standards of Ethical Conduct

• Public trust
• An employee may not accept a gift that is offered
  because of their official position.
• This includes gratuities, favors, discounts,
  loans, services, meals or lodging.
• Additional scrutiny has been placed on the
  Purchase Card Program because of fraud, waste,
  and abuse issues.
• For more detail, see usoge.gov/pages/laws_regs_fed
  reg_stats/laws_regs.html

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8 Steps to remember before you buy

• Plan your monthly purchases
• discounts vs. unnecessary stockpiling
• cycle limit considerations
• Ensure availability of funds
• Conduct market research
• Best value approach
• State Sales Tax Exemption
• Be clear when talking with merchants
• Recognize your Single Purchase and Cycle Limit
• Use Required sources
• JWOD, GSA, FPI

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Prohibited Items

• Rental or lease of land or Buildings.
• Travel.
• Cash Advances.
• Other agency prohibited items.
• e.g. Microwave ovens, refrigerators - See CAM
  Sec 3.4
• Software and Hardware
• These requirements are authorized only with
  advance approval by OCIO.
• Notice to Property Management
• Before purchase
• After delivery for bar-coding

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Get a GOOD Quote !!

• Make sure everything is included!
• Shipping, express shipping, set-up, parts,
  warranty, trade-in, and training.
• Are you being charged sales tax?
• Usually the Government is Tax Exempt.
• The Purchase Cards are coded Tax Exempt.
• Tax Exempt letters are available if your vendor
  requests one check on-line references at the
  end of this presentation to obtain one.
• By law we must be fair, be consistent, ask for
  the same thing from each vendor.
• Make sure that your vendors accept the Government
  Purchase Card!

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Dont Split Requirements !!

• Breaking up your requirement into parts to stay
  under your Single Purchase Limit (SPL) is
  prohibited.
• Temporary increases can be arranged and processed
  quickly usually within one day.
• If you need frequent increases, consider a higher
  limit. Note Single Purchase Limits (SPL) over
  2,500 require additional training. (Simplified
  Acquisition Training Course - 40 hours).

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Document and Keep Records

• Keep and use a log, record dates.
• Keep item description, unit price, quantity and
  total cost.
• Name of merchant.
• Keep the receipt.

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Accountable Property

• Notify Property Management if this item is
  accountable (valuable and or pilferable)

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Returns, Credits and Disputes

• Work with the merchant if there is a problem
• File a dispute with Citibank if you could not
  resolve the problem

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Reconcile Your Statement

• The only way DOC can manage its budget is if
  everyone does their part.
• The HOW TO mechanics will be offered as a
  refresher course by the NIST CAMS.
• Be aware of your default codes
• DOC receives rebates based on usage and payments.

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Purchase Card Maintenance

• Changes require notice use the maintenance
  form.
• Name change, limit change, hierarchy change
  (Office reorganization), Approving Official,
  Fund Codes (ACCS).

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Lost, Stolen, or Compromised Card Number

• Notify the Bankcard Center and the Agency Program
  Coordinator Immediately
• You will get a new card reissued

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Canceling Your Card

• If you leave DOC, or no longer are a Cardholder,
  notify the APC.
• Turn it off, Cut it up, Turn it in
• If your card has been lost, stolen or
  compromised, notify the APC. The card can be
  cancelled and reissued.

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Miscellaneous

• Convenience Checks
• At this time DOC is not using Convenience checks
• They are like money and require special controls
• Congress has suggested that Credit Checks be run
  on employees being considered for Bankcards

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Changes to the Purchase Card Program

• Purchase Card Delegation memorandum
• Far more formal in the future.
• Buying Green Environmentally Friendly
• Purchase Card Program Review
• From Audit to Best Practices Review.

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Annual Program Reviews

• CAM 1313.301 Section 4.1 specifies requirements.
• Primary Objectives
• Share great practices
• Assess compliance techniques (w laws and
  regulations.)
• Assess efficiency of operations.
• Assess internal and management controls in place
  to bolster public trust
• to prevent or find fraud, waste, and abuse.

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Annual Program Review (continued)

• Purchase card annual review check list.
• Regulations require that the APC complete one
  checklist for each individual cardholder
  reviewed.
• Summary of findings to include
• Areas of extraordinary success.
• Areas of non-compliance.
• Recommendations for improvements.
• Certification of completion of annual review.

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References

• TAX LETTER
• http//apps.fss.gsa.gov/services/gsa-smartpay/taxl
  etter/
• GSA MANUAL - Blueprint
• www.fss.gsa.gov/services/gsa-smartpay
• DOC ACQUISTION MANUAL
• http//oamweb.osec.doc.gov/stage/app/cam.htm
• FORMS
• www.casc.noaa.gov/bankcard/forms.html

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FOR HELP

• CALL COAP or visit room 6521
• Frank Krempa 482-0997
• Dan Alexander 482-7426