Dept. of Health & Human Services

PROCUREMENT CARD

CARDHOLDER

Benefits of the Procurement Card

Increased control of expenditures through complete and timely reporting

Visa Card has widespread acceptance and vendors have high

comfort level

Allows Purchasing Staff to concentrate on higher dollar and more

complex procurements

Transactions are completed quickly and conveniently

Blocked MCC Codes provides security over unauthorized purchases

Purchases reported in monthly statement by each cardholder

Reduction in invoices and payment vouchers

Timely payment to vendors

Incentive of Rebates

Goals of the Procurement Card

Simplify the process of Small PurchasesAcquire materials necessary to complete your taskMerge small purchase transactions on line with NCASEnhance Management’s review of small purchasesReconciliation designed to comply with auditReduce costs associated with small purchases

Roles for Department Card Administrator

Sets up the program for all of DHHS Agencies. Act as a liaison between Bank and Agency to resolve PCard issues. Authority to suspend or close PCard when abuse or misuse occurs. Train staff in initial set up and develop policy and procedures of PCard. Access the Works system of bank to add, change, delete cardholders at the

request of PCard Administrator. Set up PCard Administrators in the Works system to create card reports,

purchase reports and declined purchase reports. Receive PCards from bank, activate, and enter into NCAS and send to Division

PCard Administrator. Reviews NCAS PCard module of all transactions to ensure reconciliation is

within guidelines. Monitors Works system and NCAS for possible fraud or questionable PCard

purchases. Create reports for statistical data of PCards, purchases and vendors. Keeps copy of documentation of all cardholders. Notify Division Card Administrators/Reconciler/AP of any PCard

discrepancies in transactions or payments.

Roles for Division Card Administrator

Division/Facility Card Administrators must be appointed before an Agency is issued PCards.

Helps develop internal policy and procedures of PCard.

Administrators submit requests to add, change, delete cardholders. They also have the authority to terminate a card for misuse.

Receive PCards from Department PCardAdministrator and issue to cardholders.

Ensures each cardholder, manager and/or reconciler are trained before issuing a card.

Keeps documentation of all cardholder forms and list of authorized signatures. Provide a updated signature list to Reconcilers, A/P and Department PCard Administrator.

Reviews the NCAS PCard System to ensure reconciliation is done within the established guidelines.

Act as a liaison between vendor and cardholder to resolve PCard issues.

Ensures the monthly invoice for agency is reviewed and signed by the assigned official and forward to controllers office to pay.

Notify Department Card Administrator,Reconciler or AP of any PCard discrepancies in transactions or payments.

Administrators are also added in “Works” the PCard maintenance system of Bank of America.

Administrators can run detailed card reports of active and inactive cardholders, purchase reports, and declined purchase reports.

Perform reviews of division purchases on PCard at least weekly.

Administrators must provide access to PCard records in the event of an audit request.

Roles and Responsibilities forManagers and Supervisors

Managers and/or Supervisors are required to attend training provided by the Department or Divisionbefore a card is issued.

Initiate card request for permanent employees and submit to Division Card Administrator.

Review each purchase transaction receipt to justify necessary purchase.Make sure cardholder’s signature is present, sign and date the receipt andforward the receipt to reconciler within 2-3 business days.

Review NCAS transactions weekly if available, to insure you are receiving properreceipts from your staff.

Review and approve the monthly statement for each employee with your signatureand forward to reconciler.

Notify Division Card Administrator of any changes to accounts.

Retrieve card from cardholder when an employee is leaving your department.Destroy the card and notify the Division Card Administrator to deactivate the card.

Roles and Responsibilities of Cardholder

The cardholder is responsible for all use of his/her card and safeguarding the card.

Cardholder is required to adhere to the Purchasing Card Procedures.

Cardholder is required to check Correction Enterprises, State TermContracts and HUB Vendor Listing for purchasing preferences. (Givepreference to Correction Enterprises on their commodities)

Keep a copy of each transaction to reconcile your monthly statement.

The Cardholder should receive a monthly statement if purchases have been made during thestatement cycle.

Forward each transaction receipt immediately (1 to 2 business days) tosupervisor upon signing with date and make a copy.

Review your monthly statement approving all charges, sign, date, and forward to supervisor.

Roles for Reconciler and Accounts Payable

RECONCILERReconciler reconciles the receipt inNCAS with proper documentation,receipts must have valid signatures(cardholder/supervisor). Reconciler is responsible for ensuringstatements have detailed receipts beforefiling.PCard documents are required to beretained for five years and available forauditing.If a receipt is not available, a TransactionReconciliation form must be submitted.Reconciliation for the statement periodshould be done by the 7th of thefollowing month.

ACCOUNTS PAYABLEBank statements are verified for authorizedsignatures before processing payments.A/P Administrator verifies bank statementand NCAS pay module match beforecreating invoice.Contact Department Card Administrator ifamounts do not match.A/P Administrator creates invoice throughthe NCAS once per month and submitspayment to the bank.

Roles for Purchasing(Internal Auditing)

PURCHASING Purchasing should audit Procurement Card transactions

periodically for use of state term contracts, Correction Enterprise, etc.

Assist cardholders upon request of agency’s purchasing policies.

Purchasing should also occasionally audit the NCAS module by cardholder to verify employees are not superseding the DHHS’s purchasing policy.

Cardholder Enrollment Form

This form collects information required toestablish an individual’s account within thesystem. All information is required on the form toobtain accuracy in NCAS for reportingrequirements.

The Manager initiates form and forwards to theDivision PCard Administrator to submit toDepartment PCard Administrator for processing.Information from this form is entered into theWorks program to create an PCard account, andwithin days the PCard is sent to DepartmentPCard Administrator to finish processing theinformation into NCAS. Once all the informationis entered the PCard is sent to the Division PCardAdministrator for issuance.

NOTE: The PCard will not be issued beforetraining or signing the Employee Agreementform.

Use of the CardCardholder is the only individualauthorized to make purchases using thecard.

The card does not supercede any StateP&C rules or Direct Pay Policies whichare already in place. (contact yourPurchasing Agent and/or Budget Officer, if needed.)

The Cardholder shall be formally trainedto use the PCard and instructed inproper purchasing procedures. Aftertraining, you are required to sign anEmployee Agreement form toacknowledge your responsibilities andunderstanding the use of the card.

Your Division PCard Administrator willissue you the PCard Manual at training.

Reference your P-Card Manual forDHHS Purchasing Policy and Proceduresbefore making purchases.

Inform Vendor of agency’s tax exemptstatus and provide the number which is located on your card before purchasing items. Verify that Sales Tax was not added before leaving store.

When a purchase is made, the Cardholdermust obtain an itemized receipt.

Upon leaving employment, return PCard toSupervisor to destroy and deactivate by DivisionCard Administrator. If changing to new section, notify PCard Administrator to update card information or replace card.

Procurement Card Process

CARDHOLDER:BEFORE PURCHASING ITEMS CHECK:A. SUFFICIENT FUNDS IN ACCOUNTB. ALLOWABLE PURCHASESC. DEPARTMENT OF CORRECTION ENTERPRISESD. STATE TERM CONTRACT LIST E. HUB VENDOR LISTWhen in doubt contact your PC Administrator or Purchasing AgentPURCHASING ITEMS:*NOTIFY VENDOR OF TAX EXEMPT STATUSAFTER PURCHASING ITEMS:OBTAIN PROPER DOCUMENTATION FROM THE VENDOR:1. OVER THE COUNTER2. TELEPHONE3. ON LINE *For security purposes you should only buy from websites that begin with https:// as they are secure.

Procurement Card Process

UPON COMPLETION OF PURCHASES WITH PROPER SIGNATURES SEND ORIGINAL RECEIPTS TO RECONCILER WITHIN 2-3 DAYS:1. ORIGINAL RECEIPTS and/or2. PACKING SLIP / WITH ITEMIZED PRICES and/or3. PRINT ONLINE RECEIPT CARDHOLDER AND SUPERVISOR MUST SIGNKEEP A COPY FOR YOUR FILE

CARDHOLDER REVIEWS BANK STATEMENTAND CHECK AGAINST RECEIPTS.NOTIFY SUPERVISOR and/or P-CARD AMINISTRATOR OF ANY UNAUTHORIZED TRANSACTIONSCARDHOLDER AND SUPERVISOR MUST SIGN STATEMENT, SEND ORIGINAL TO RECONCILERKEEP A COPY FOR YOUR FILE

Merchant Category Codes

CARDHOLDERCardholder that is approved to purchase materials to complete their tasks within their approved card limits. Examples: STC supplies, equipment repair, Miscellaneous repair parts, postage/shipping

PURCHASING CARDHOLDERCardholder that is designated by purchasing to acquire goods and some services. Examples: degree verifications, renewable subscriptions, advertisements, recycling, shredding, post office boxes

BUDGETARY CARDHOLDERCardholder that is designated by budget to pay services that require special approvals. Examples: conference registrations, booth rentals, license renewals, organization fees, courses, teleconferences, memberships, dues, registrations, similar fees

Merchant Category Codes

All cards are modified by MCC Codes that are opened or blocked to goods and/or services. Your card is allowed to purchase commodities that are permitted within your profile.

Agencies requiring special purchasing needs outside of their card profilemust obtain approval from OPCS and Controller’s office.

Agencies can submit the MCC Exception Request form to their DivisionPCard Administrator for approval and forward to the Department PCard Administrator for review and approval. The form is then sent to the Controller’s Office for final approval.

Card Usage Authorized

The following are examples of potential purchases that can be made with the card up to thecardholder’s delegated transaction amount:

*Office Supplies*Cleaning Supplies*Facilities maintenance, repair, operational supplies*Auto fleet maintenance repair, operational supplies (not motor fleet vehicles) examples of potential purchases that can be made with the card *Other miscellaneous repair parts*State Term Contract items*Computer Hardware/Software/Printer (Emergency only must obtain approval from Purchasing and

DIRM and/or ITS)*Purchases that have been granted prior approval from the Controller’s office are permissible(see MCC Exception Request form)

Remember: Contracts constantly change so if there is any question regarding yourpurchase you should contact your Purchasing office for guidance.

Card Usage - UnauthorizedThe following purchases are NOT permitted with the Card:*Purchases from State Agencies have been restricted from use including Correction Enterprises, NC State McKimmon Center, UNC School of Government, etc*Personal purchases*Cash advances/Gift Cards* Purchase over the Cardholder's transaction limit (controlled by the system)*Meals, Travel and Entertainment (the card is not to be used for business travel orentertainment unless approved by DHHS Controller's Office)* Contractual or consulting services*Motor Fleet Vehicles – services, gas, etc.

NOTE: If an PCard is declined and the vendor’s merchant category(MCC) code is blocked, they should contact their PCard Administrator for assistance.We will only open special (blocked) MCC’s when approved by DHHS Controller’sOffice and if the vendor does not accept a Purchase Order or Direct Pay.

STATE CONTRACT ITEMS CHECK WEBSITE FOR AUTHORIZED VENDORS: http://www.pandc.nc.gov/numlistt.asp

CORRECTION ENTERPRISES PRODUCTS (001A) OFFICE SUPPLIES/EQUIPMENT (615A) PAPER/ENVELOPES (645A): SMALL PACKAGE DELIVERY (958A) BATTERIES (450A) TOOLS, HAND, and Related ACCESORIES (445A)

STATE CONTRACT ITEMS-615A

Office equipment: Small office machines such as non-scientific calculators, adding machines, typewriters, fax machines, and shredders. Computer periferals (including flashdrives, disks, mouse, keyboard), headphones, clocks, powered telephone equipment (including electrical connectors), and electrically corded devices such as surge protectors, battery chargers, AC/DC adapters, and lamps also are within this category. Generally, office equipment items will be non-consumable goods and operate by means of electricity, including via battery power.

Paper/Envelopes: Small quantities of cut-sheet multi-purpose paper (total for same must be less than $250 for any single order) used for printers, copiers, and certain fax machines.

Printer/fax cartridges/Remanufactured Toner: Toner, inkjet, and cartridges used in fax-machines, copiers and printers.

Office supplies: Pens, pencils, paper clips, ribbons, file folders, sticky note pads, in/out boxes, waste baskets, floor mats, batteries of all types, handbooks and booksets, and any other office supplies not identified in the three above categories. First aid kits, light bulbs, flashlights, certain cabinets, electrical extension cords, various special file containment units (such as small mobile file cabinets not covered by State contract 425G), and video and computer data storage media of all types are in this category as well.

Delivery is two business days after receipt of an order. The minimum purchase to qualify for fee shipping is $25. Orders less than $25 will be charged a $5 shipping fee.

If you have any questions about your order, please contact your Purchasing Officer at OPCS.

STATE CONTRACT ITEMS-645A

PAPER: Dual Purpose Paper - Virgin Paper Dual Purpose Paper – Recycled Paper (30% Recycled with 30% Post Consumer Content) Bond Copy Paper, Recycled (50% PC Content/Non-Chlorine Bleached Paper) Bond Copy Paper, Recycled (100% PC Content/Non-Chlorine Bleached Paper) Dual Purpose Paper, Colors – Recycled Paper (30% Recycled with 30% Post Consumer Waste) Offset Paper, Virgin, White Offset Paper, Colors

This contract will be for a minimum order of $250.00 for any single order. Agencies are authorized to purchase from STC 615A below the minimum order.

STATE CONTRACT ITEMS

STC 958ASmall Package Delivery

Fedex UPS

STC 450A Dry cell alkaline, general-purpose dry cell, lithium and rechargeable batteries The minimum order, qualifying for prepaid transportation, is $25.00 for any single order.

STC 445ATools, Hand, and Related Accessories The minimum order, qualifying for prepaid transportation, is $100.00 for any single order.

Procedures for Returns and Problems

Return items should be returned to vendor and a

credit issued on one receipt. The receipt must

have signatures and forwarded to supervisor

and reconciled just like all other transactions.

If item is damaged, the cardholder is responsible

for working with vendor to correct. If after a

reasonable time problems still exists, notify the

departmental administrator to resolve with the

bank and/or vendor.

If card is lost or stolen, immediately notify the bankand your Division Card Administrator.

In the event of fraud, any charges posted to NCASwill be credited back to the PCard. An AffidavitOf Fraud Claim will be completed by the cardholderand submitted to the bank.

Fraud charges will need to be reconciled as the other valid transactions. A Transaction Reconciliation Form must be completed and forward to Reconciler to process as a receipt.

All transactions (debits or credits) should have a

receipt. Cardholders should contact vendor for

missing or lost receipts. If a receipt is not available

a Transaction Reconciliation Form should be

completed.

Misuse or Abuse of the CardIf a Cardholder is making unauthorizedpurchases for which the card is notintended, he or she may be liable for thetotal dollar amount and may be subject toappropriate action up to dismissal.

A PCard Violation form will be completedby the Supervisor and forward to theDivision PCard Administrator.

GS114-15.1 requires state employees reportany information or evidence of an attemptedarson, or arson, damage of , theft from ortheft of, or embezzlement from, or misuseof any state-owned personal property,building or other real property and mustcomplete State Property Misuse ReportForm.

PCard Violation Form

Type of violations that must be reported on the PCard Violationform:

*Failure to provide documentation on time and/or review transactions on time*Lack of documentation*Split transaction to circumvent card limits and/or bidding requirements*Failure to follow DHHS purchasing guidelines for purchasing goods and services*Inappropriate purchase (not within the DHHS purchasing guidelines)*Personal purchase

If Division Card Administrator or Department Card Administrator suspect a PCard

violation, the Division will contact the Supervisor about the possibleviolation. The Supervisor and Cardholder will complete and submit the form toDivision PCard Administrator for approval and forward to DHHS DepartmentPCard Administrator.

Maintenance Forms

The Maintenance Form should be completed by the Supervisor and usedfor the following:*Name Change*Address Change*Transaction Limit Changes*Credit Limit Changes*MCC Change*Suspend Accounts*Close Accounts*Accounting Code Change

Submit to Division Card Administrator for approval and forward toDepartment Card Administrator.

NCAS Cardholder Enrollment

This screen demonstrates how a new card holder is loaded into the North Carolina Accounting System

N23 PC NCAS PROCUREMENT CARD SYSTEM PCCP CARDHOLDER POLICY NEXT FUNCTION: ________ ACTION: ________ 07/16/2009 10:35:51 REQUEST: ________ =============================================================================== AGENCY : 20 LOCATION NO: 2002 CARD NUMBER : 1234567801239899 ADM NO: ____ FIRST NAME : JANE MIDDLE INITIAL : _ LAST NAME : DOE CARDHOLDER PHONE : 919-855-4089 CARDHOLDER ACTIVE INDICATOR : Y CARDHOLDER ACTIVATE DATE : 07/16/2009 CARDHOLDER INACTIVATE DATE : 07/16/9999 DEFAULT GL DATA CARDHOLDER GL COMPANY : 2001 CARDHOLDER GL ACCOUNT : 533110 CARDHOLDER GL CENTER : 11012105 TAX COUNTY CODE : 92

Bank of America-Works System

Once the card request has been entered into the Works system, a card is assigned and this information is

created. Cardholders should check their card for correct spelling, assigned agency and their credit limits.

Your PCard Administrator can give you your card purchasing limits and list of approved purchasing.

Division PCard Administrators can access the Works system and check purchases by individuals

or vendors and run card reports.

Embossed Name JANE DOE (as shown on card)

Card ID 1234567801239899 (card number)

Group Name DHHS VOC REHAB CLIENT (assigned agency)

Profile COC82 (general mcc codes for approved purchases)

Credit Limit CL$ 750 (monthly card limit-renewable on the 28th of the

month)

TXN Limit STL$ 500 (maximum single limit purchase of card per vendor)

NCAS P- Card Module

N23 PC NCAS PROCUREMENT CARD SYSTEM PUTL

UNRECONCILED TRANSACTION 040 - NO MORE RECORDS TO DISPLAY NEXT FUNCTION: ________ ACTION: ________ 07/16/2009 10:44:17 REQUEST: ________ ============================================================================== AGENCY : 20 LOCATION : 2002 AGENCY NAME : DHHS-CENTRAL ADMIN ADMIN # : ____ TRANS. I.D. : _________ CARD NUMBER : ________________ CARDHOLDER : _____________________________ TRANS. DATE : __________ POST DATE : __________ __________ SEL TRANS. TRANS. PAY TRANS. POSTING DATE AMOUNT VENDOR NAME IND. I.D. DATE _ 07/07/2009 199.00 DRI WWW.ELEMENT5.INF _ 003820190 07/08/2009 _ 07/09/2009 29.00 LIBERTY NAMES OF AME _ 011119195 07/13/2009 _ 07/13/2009 .23 INTERNATIONAL TRANSA _ 011219195 07/13/2009 _ 07/02/2009 197.90 FORMS AND SUPPLY - A _ 006719188 07/06/2009 _ 07/02/2009 14.34 USPS 366370016310020 _ 006819188 07/03/2009 _ 06/29/2009 199.98 STAPLES 001072 _ 004619183 07/01/2009 _ 06/29/2009 8.99 STAPLES 001072 _ 004719183 07/01/2009 _ __________ _________________ ____________________ _ _________ __________ PAGE NO: 1 SCREEN STATUS: END OF LIST

This screen identifies how transactions are transferred from the bank as the cardholders make their daily purchases

N23 PC NCAS PROCUREMENT CARD SYSTEM PILS INVOICE LIABILITY SCREEN NEXT FUNCTION: ________ ACTION: ________ 07/16/2009 10:48:14 REQUEST: ________ =============================================================================== AGENCY : 20 LOCATION # : 2002 SHOW OPT: _ AGENCY NAME : DHHS-CENTRAL ADMIN ADM # : ____ TRANS. I.D. : _________ CARD NUMBER : 1234567801239899 CARDHOLDER : Jane Doe TRANS. DATE : __________ POST DATE : 04/28/2009 06/27/2009 SEL TRANS. TRANS. PAY TRANS. POSTING ST DATE AMOUNT VENDOR NAME IND. I.D. DATE _ 04/27/2009 32.83 OFFICE DEPOT #1220 P 001719119 04/28/2009 1 _ 05/05/2009 -32.83 OFFICE DEPOT #1220 P 004319128 05/07/2009 1 _ 05/06/2009 -19.28 SYX TIGERDIRECTINC P 004419128 05/07/2009 1 _ 04/28/2009 82.95 DURALINE IMAGING I P 003218121 04/30/2009 1 _ 05/13/2009 114.95 NETWORK SOLUTIONS, P 010618139 05/15/2009 1 _ 05/29/2009 95.00 K M DATA, INC. P 008619153 06/01/2009 1 _ 06/03/2009 330.00 NIGP.ORG P 009120160 06/05/2009 1 _ 04/29/2009 -71.18 FORMS AND SUPPLY-A P 008020125 05/01/2009 1 PAGE NO: 1 SCREEN STATUS: MORE

Card Holder PurchasesThis screen shows how we can identify one cardholder with any specific dates to see all their purchases

Reconciling

N23 PC NCAS PROCUREMENT CARD SYSTEM PTRM

TRANSACTION RECONCILING AND MAINTENANCE 040 - NO MORE RECORDS TO DISPLAY NEXT FUNCTION: ________ ACTION: ________ 07/16/2009 10:57:53 REQUEST: ________ =============================================================================== CARD NUMBER : 1234567801239899 VENDOR : NIGP.ORG CARDHOLDER : JANE DOE 800-367-6447 /VA/20170 / POSTING DATE : 06/05/2009 ALLOCATED TOTAL : 330.00 TRANSACTION DATE : 06/03/2009 TRANSACTION TOTAL: 330.00 TRANSACTION ID : 009120160 COUNTY CODE : 92 WAKE S LINE TAX AMOUNT COMP ACCOUNT CENTER RECYCLE STC SVC NO. IND PCT TAX AMT ACCR TAX ITEM DESCRIPTION _ 01 330.00 2001 533110 1011030100 _ _ _ _ .000 .00 .00 Government Membership Organization- _ 02 _________________ ____ __________________ ____________ _ _ _ _ ______ _________ _________ ________________________________________ _ 03 _________________ ____ __________________ ____________ _ _ _ _ ______ _________ _________ ________________________________________ _ 04 _________________ ____ __________________ ____________ _ _ _ _ ______ _________ _________ ________________________________________ CONTINUE TO PTR2 : _

This screen shows how we distribute the funding to different accounts and cost centers when reconciled.

Employee Agreement Form

This agreement form when

signed & dated by the employee,

hereby acknowledge and agree to

abide by the policies and

procedures pertaining to the

Procurement Card.

The Supervisor/Manager signature also

acknowledges that the employee has

been trained and understand the

requirements of the PCard.

Issuance of Card

After the Employee Agreement

Form has been signed, the PCard is

given to the trained cardholder.

The Card is now ready to be used.

Please check your name for the

correct spelling and assigned

agency.

Inform your PCard Administrator

for inaccuracies.

You are now a Cardholder

Now that you are aware ofNow that you are aware of

the policy and proceduresthe policy and procedures

your lives will be simpleryour lives will be simpler

with the integration of with the integration of The The

PCard. PCard. Please keep a copyPlease keep a copy

of your signed agreementof your signed agreement

and P-Card Manual.and P-Card Manual.

You are now authorized toYou are now authorized to

use your P-Card for smalluse your P-Card for small

purchases.purchases.

PCard Test Review

You have been given a short test to provide documentation of your training.

Please Submit your completed test to your Division PCard Admininstrator.