STATE OF CONNECTICUT
PURCHASING CARD PROGRAM

AGENCY PURCHASING CARD
COORDINATOR MANUAL

INTRODUCTION

Welcome to the State of Connecticut MasterCard Purchasing Card Program. The State of Connecticut Purchasing Card (P-Card), issued by JPMorgan Chase Bank, is a charge card which acts as a procurement and payment tool offering an alternative to the existing State procurement processes and provides an extremely efficient and effective method of purchasing and paying for a variety of items.

The Purchasing Card Program (P-Card Program) is designed to delegate authority and capability to quickly and conveniently purchase approved items directly from the vendors that accept the MasterCard charge card. This program, co-sponsored by DAS/Procurement Services and the Office of the State Comptroller, was created with the assistance of many staff members and is designed to more efficiently meet your purchasing and payment needs and those of the State.

Effective July 1, 2011, payments for purchases by all state agencies under $1,000 shall be made using the State of Connecticut Purchasing Card. Purchasing cards (P-Card) must be used for payments to any vendor that provides commodities, services and/or utilities. Exceptions to this policy would be for purchases that must be approved using the Core 10 process, vendors who do not accept credit cards and purchases to restock inventories carried in the Core-CT inventory module. Agencies are encouraged to continue the use of P-Cards for all transactions within their agency purchasing policies. Please refer to Comptroller's Memo 2011-11 at:  http://osc.ct.gov/2011memos/numbered/201111.htm

The benefits of the purchasing card to you and the State are significant and include:

Benefits to the Cardholder:

• Obtain goods and services much faster and easier than before.
• Reduces workload related to the purchase of and payment for goods.
• Allows the Cardholder to be more efficient and to focus on the value added aspects of their job.
• Reduces clerical processing time and time associated with the approval process.
• Provides end users with greater autonomy.
  

Benefits to the Agency:

• Only one (1) monthly statement will be received for verification and reconciliation.
• Reduces need to prepare and obtain approval signatures on internal order forms.
• Fewer purchase orders are required; therefore less typing and tracking of individual purchase requisitions and receiving reports are required.
• Monthly approvals required rather than individual purchase order and voucher approvals.
• Receive orders immediately or within days instead of weeks.

Benefits to the State:

• Reduces the number of purchase orders, vouchers and checks.
• Enables DAS/Procurement Services and the Comptroller's Office to focus on higher yield value added activities.
• Reduces the number of vendors in the State vendor file database.
• Prompt payment to the vendor results in better prices and improved vendor relations.
• Reduction in the number of paper transactions.
• DAS/Procurement Services will have more information to negotiate better contracts.

Benefits to the Vendor:

• Receives prompt payment
• Increases cash flow
• Eases operation
• Reduces paperwork
• Reduces accounts receivable overhead costs

P-Card services must be obtained through participation in the statewide contract administered by DAS/Procurement Services in conjunction with the Office of the State Comptroller, Statewide Fiscal Policy Unit. The DAS/Procurement Services Division and the State Comptroller's Office are responsible for monitoring the effectiveness of the P-Card Program and user compliance with the procedures outlined in this manual, the Cardholder/Travel Account Work Rules and the agency procedures.

POLICY FOR P-CARDS

Commodities/Services

The P-Card is to be used for official State of Connecticut purchases wherever MasterCard is accepted and in conjunction with current state contracts. In addition, the P-Card is to be used in conjunction with agency purchasing policies.

Unacceptable purchases with the card:

• Alcoholic beverages
• Automotive gasoline for state vehicles
• Automotive gasoline for in-state rental vehicles
• Cash Advances
• Gifts*/Donations
• Personal items
• Items prohibited by your agency

*Gifts may be purchased for individuals in custodial care of the state with state funds approved for this purpose.

Acceptable Purchases with the card:

• Approved state purchases as prescribed by your agency.

Merchant Category Control Groups (MCCG)

Merchant Category Control Groups have been set up by the Administrator with JPMorgan Chase Bank. These MCCG's or Codes are used to indicate what type of allowances or restrictions should be encoded into the MasterCard.

The following codes are to be used by the Agency Coordinator when filling out the "Cardholder Controls" section of the Purchasing On-Line Application.

Agencies are liable for authorized charges made using the card. Contact the P-Card Program Administrator with any questions regarding the appropriate use of the P-Card.

Agencies must follow the written procedures for use of the P-Card. The agency Program Coordinator is the liaison between your agency, DAS, OSC and the bank.

AGENCY PROGRAM COORDINATOR

Each agency will have a Program Coordinator. This person is responsible for card applications and issuance, card cancellation, card limits, entering cardholder information into Core-CT and communicating with the Program Administrator. The Program Coordinator will receive the cards, reconcile the accounts, and have access to the Payment Net application.

The purchasing card dollar limit may be approved for amounts up to $250,000 per transaction. The agency purchasing card coordinator must review the dollar limits for all cardholders and determine the proper limits for each cardholder. This decision should be based on the cardholder's job duties. Please contact the P-Card Administrator to adjust any cardholder limits.

CARD ADMINISTRATION

P-Cards will be issued to individuals who have appropriate purchasing authority. They are issued with the name of the cardholder embossed on the front. Cardholders must sign the Cardholder Acknowledgement on the Purchasing Card Application form at the mandatory training prior to obtaining the P-Card.

When the vendor at the point-of-sale requests a purchase authorization, the MasterCard system validates the transaction against pre-set limits established by the agency. All transactions are approved or declined (instantaneously) based on the following P-Card authorization criteria:

• Dollar limits per transaction as established by the agency coordinator.
• Dollar limits per month as established by the agency coordinator.
• Number of transactions per day
• Number of transactions per billing cycle
• Merchant Category Code (MCC) established by the bank and encoded into card.

The authorization process occurs through an electronic system that supports the P-Card processing services under the State's agreement with JPMorgan Chase Bank. In addition, DAS/Procurement Services and the Office of the State Comptroller's Statewide Fiscal Policy Unit have the capability to view a large selection of daily reports to effectively monitor the use of P-Cards. The DAS/Procurement Services Division will also identify opportunities to further maximize the State's significant buying power through contract negotiations and contract administration.

AGENCY COORDINATOR RESPONSIBILITIES

• Requesting and maintaining cards through the Purchasing on Line system (POL) and training all new Cardholders
• Identifying potential Cardholders
• Reconciling cardholder transactions in Core-CT
• Assisting Cardholder in verifying and resolving returns, credits and discrepancies, as needed
• Maintaining the supporting documentation in a secure location at all times (locked cabinet is required) if retained centrally
• Collecting and maintaining receipts from Cardholder(s) ensuring timely retrieval for auditing purposes
• Assisting Cardholder in resolution of problems or questions about purchases, as needed
• Retaining documentation at specified location, in compliance with State guidelines for record retention
• Overseeing Purchasing Card Program for their respective agency
• Conduct training for cardholders as required

NEW ONLINE P-CARD APPLICATION

A new paperless system has been developed that streamlines the P-Card application process. The P-Card Coordinator will be able to complete the on-line P-Card application. The Agency P-Card Coordinator enters/verifies the employee information. The system sends approved requests to the State P-Card Administrator for final processing. New card requests, changes to cardholder information and account closures will all flow through the P-Card On-Line (POL) system. The P-Card On-Line System does not manage any requests for municipalities, schools, not-for-profit organizations or for the Voyager Fuel Card. Please note: all users must have or create a BizNet account before using the on-line P-Card System.

Guidelines for the Payment of the P-Card

The agency's accounting unit/business unit is responsible for processing payments to JPMorgan Chase Bank. The following guidelines must be observed when processing payments:

• The full amount of the P-Card invoice must be paid by the due date. See the payment schedule provided for the current fiscal year.
   
• Each agency is set up with its own account number at JPMorgan Chase Bank and in the Core-CT System.
   
• To assist JPMorgan Chase Bank in identifying payments, the agency account number must be provided in the invoice number field when processing payments. Do not put any other numbers or other information in this field except your agency account number.
   
• One consolidated account balance for all P-Cards within each organizational unit specified by the agency, or entire agency, can be drawn down by the agency using the Core-CT P-Card module.
   
• The receipt date on the voucher should be the end of the billing cycle or the last date goods were received in for that billing cycle but never past the 10th of the month.
   
• The invoice date should be the date the bill is generated from the Payment Net system.
   
• The payment due date is established by the terms of the contract with JPMorgan Chase Bank. The payment must be received within twenty-four days after the date of the P-Card billing cycle cutoff. Two business days are needed for processing the Automated Clearing House (ACH) function. If the payment date is a holiday or weekend, it must be paid on the Friday before the holiday, weekend or the last business day. Therefore, all payments must be processed by the agency according to the payment schedule provided by the Statewide Fiscal Policy Unit of the State Comptroller's Office. When entering voucher data, the payment due date feature must be used when preparing voucher prior to the due date. Payment of the July bill each year is charged in full to the new fiscal year, even for those transactions that occurred prior to the end of the previous year.
   
• Agencies can confirm their balances directly with JPMorgan Chase Bank by calling the Customer Service number, 1-800-316-6056.
   
• JPMorgan Chase Bank's taxpayer identification number and suffix (TIN) 13-4994650-01 must be used as the vendor identification on the Core-CT voucher page.
   
• Only one account number should appear in the invoice number field. If you are making payments on any other accounts due to consolidation within your agency, you must issue a separate payment for each account.
   
• The full amount of the P-Card invoice must be paid by the due date. Interest is not to be accrued on this account. Failure to make the payment on time may cause all of your P-Cards to be canceled. Your agency will not be eligible to participate in the program until assurances can be made that the payments will be made on a timely basis. Disputed amounts and credits will appear on subsequent invoices. Monthly invoices must not be reduced by unapplied credits. Your agency will be responsible for payment of any interest if the payment is delinquent. Interest is calculated on the average daily balance on the state agency bill, beginning on the eleventh day of the month.
   
• If finance charges are incurred on the P-Card due to late payment of the JPMorgan Chase Bank bill, agencies are instructed to pay these finance charges. Agencies should add a line to their Purchasing-card purchase order for the interest payment.
  

TRAVEL ACCOUNT

Travel Option - Hotel and Car Rental Purchases

A travel option is available to agencies currently participating in the P-Card Program. This option is available to frequent travelers within an agency. The P-Card, modified with this travel option, allows for payment of cost of hotel lodging, out-of-state car rental and gasoline for out-of-state car rentals.

When using the travel option, all personal expenses, i.e., meals, movie rental, personal telephone charges, restaurant, room service, gasoline for state vehicles, etc, must not be charged to the State of Connecticut Purchasing Card.

Travel Account - Airline and Rail Ticket Purchases

The Travel Account allows purchasing authority to be delegated to one person, the Travel Account Cardholder, within an agency, who is then designated as the "Travel Coordinator" enabling him/her to place orders directly with the State contracted vendor, Sanditz Travel. For additional information on the contract: http://www.das.state.ct.us/Contracts/978_0745.pdf 

Agencies may utilize other travel resources (ie. Web based travel services) to coordinate and procure their travel arrangements.

State purchases made through the Travel Account should be in accordance with Travel Regulations established by DAS. The Travel Account is to be used for purchases related to State business only. The Travel Account is only to be used for the purchase of airline/rail tickets which can be purchased through the State contracted vendor, Sanditz Travel.

Travel Account - Other Travel Purchases

The agency travel coordinator, in addition to paying for airline and rail tickets, has the ability to use their Purchasing Card to pay for employee registrations, conference fees and hotel expenses if their agency p-card procedures allow for these additional types of purchases.

When using the purchasing card for hotels for employees, the travel coordinator must contact the hotel to make certain they will allow the transaction for someone other than the person whose name appears on the purchasing card. You may be required to fax hotel a copy of the p-card, but these details need to be worked out with the hotel. No personal expenses can be charged to this account.

Registration and conference fees can be paid with the purchasing card via the telephone or internet is the hosting organization accepts payment in this manner.

How to Use the Travel Account

The purpose of the Travel Account is to make purchasing and paying for airline/rail tickets easier. Agencies need to establish their own internal procedures in order to customize the Travel Account to most effectively meet the needs of their agency. To purchase airline/rail tickets use the following steps:

Contact: Call Sanditz Travel at 860-346-5511. To ensure proper billing to the appropriate agency, only the Travel Account cardholder should contact Sanditz Travel.

Book: Give the Sanditz representative your 4 digit agency number to reserve airline/rail tickets.
Attain: The traveling employee should get approval from the head of your agency or designee, via a travel authorization number (TA number), for the airline/rail tickets you have reserved.

Ticket: Call Sanditz Travel and give them the TA number. Sanditz Travel will automatically charge your Travel Account to purchase your tickets.

Record: The purchase transaction information must be recorded as required by agency procedures.

Retain: Retain all documentation pertaining to the purchase of the airline/rail ticket. Documentation must be retained according to agency procedures by the cardholder for reconciliation.

Cancellations: The cardholder (Travel Coordinator) is responsible for canceling airline/rail tickets. These arrangements should be made directly with the vendor.

COMPLETION OF THE TRAVEL LOG SHEET

The Travel Log Sheet, CO-502 (Exhibit A of this document) has been preprinted on an envelope used to maintain all documentation related to Travel Account transactions. *This log needs to be filled out for each transaction. The log lists the following information:

* The Travel Log Sheet (envelope) was developed and intended for the convenience of reconciliation and ease of auditing. Use of the Travel Log Sheet (envelope) is strongly recommended. However, agency procedures may differ from this process if compensating controls are already in place. Please refer to your agency procedures for information regarding the Travel Log Sheet (envelope).

RECONCILING YOUR TRAVEL ACCOUNT

Each Travel Coordinator (cardholder) will receive a statement from the agency P-Card Coordinator each billing cycle (cycle cut-off date is the 10th of each month). The statement must be reconciled against the cardholder's transaction for the cycle: Billing for your Travel Account purchases will be included in your Agency's P-Card bill. You will make only one monthly payment to JPMorgan.

Resolving Travel Account Errors and Disputes

If the incorrect charge is due to travel for another state agency being incorrectly billed to your account, contact the Program Administrator and the other state agency. In such cases, adjustments will be accomplished through use of a Transfer Invoice between the affected agencies.

Travel Accounts will be paid in full regardless of whether or not there is a disputed transaction. If JPMorgan Chase Bank needs to investigate a disputed transaction; you will be notified of the resolution upon completion of the investigation. If the dispute is settled in your favor, your account will be credited for the disputed transaction amount.

CHANGING THE TRAVEL COORDINATOR

The Travel Account is listed in the Travel Coordinator's name. The Travel Coordinator is the cardholder and his/her name is on the account with JPMorgan Chase Bank. If the Travel Coordinator changes or leaves the agency or State service for any reason, the travel account must be closed/deleted and a new application must be submitted for the new employee designated as the Travel Coordinator using the POL application.

Since the account is in a specific person's name (the Travel Coordinator), the account needs to be closed. We cannot just keep the account number and switch the Travel Coordinator name.

DEPARTMENT CARD GUIDELINES AND SECURITY PROCEDURES

Department Cards

Department Cards are State of Connecticut Purchasing Cards ("P-Cards") that are issued in the name of a state agency, division, business unit or other functional unit of an agency or department, instead of in the name of an individual state employee. Department Cards enable an agency to streamline purchasing and accounts payable functions in a single unit or division because the Department Cards generate only one account to be reconciled and paid. These Cards also allow more flexibility because more than one authorized user may utilize a single Department Card to make authorized purchases for the agency, unit or division.

Department Card Liability

The Department Card is not insured under the MasterCard Master Coverage policy. Under the regular P-Card liability coverage (Master Coverage) for individual cardholders, MasterCard will pay up to $15,000 for inappropriate use of the card by an employee, as long as the employee is also terminated. JPMorgan Chase Bank will not honor this $15,000 liability clause for the Department Cards.

Vendor Acceptance for Department Cards

Some vendors may not accept the Department Card because a person's name is normally imprinted on the face of the card and the name matches the signature in the signature panel on the back of the credit card. The Department Card will have the name of the agency's department or unit imprinted on the face of the card and the signature panel will display the phrase "See Employee ID". The vendor has the right to exercise his/her discretion to accept or refuse payment by Department Card, but they risk losing the sale.

Agency Department Card Procedures

The requirements set forth in this document govern the physical handling of Department Cards. Separately issued agency specific Purchasing Card ("P-Card") Program Procedures are already in place to control the purchasing done with P-Cards issued to individual staff. These same rules will apply to the Department P-Cards.

Department Card Custodian

For each Department Card issued within an agency, a Custodian shall be assigned. The Department Card Custodian is a specific agency staff person assigned with the responsibility of the security of the Department Card (see Security) and the monthly activity reconciliation.

Agency P-Card Coordinator Responsibilities

The Agency P-Card Coordinator shall keep an up-to-date list of all active Department Cards, along with the names of the Department Card Custodians responsible for securing them. The Agency P-Card Coordinator shall make sure that each Department Card Custodian is familiar with, and abides by, the State of Connecticut Purchasing Card Program Work Rules and the more specific, Agency Purchasing Card Procedures for purchasing with P-Cards.

Department Card Signature Panel

On the back of each Department Card, the Signature Panel shall be signed with the phrase, "See Employee ID". Each Card User shall be instructed to carry his/her employee ID for verification purposes when making a purchase using the Department Card.

Department Card User

A Card User is an individual authorized by the appropriate Department Card Custodian to use a Department Card. Prior to obtaining authorization to become a Card User, the employing agency shall provide the individual with a State of Connecticut Credit Card Use Policy, shall require the individual to sign that s/he has received such policy, and shall maintain the signed policy on file. Additionally, each Department Card Custodian shall ensure that all such individuals and Card Users are familiar with, and abide by, the State of Connecticut Purchasing Card Program Work Rules and the more specific, Agency Purchasing Card Procedures for actual purchasing with P-Cards. The existence of a signed State of Connecticut Credit Card Use Policy on file for the individual, and proper and complete tracking of Department Card usage on the forms discussed below, including all required signatures, shall be considered authorization by the Department Card Custodian for the individual to be a Card User.

Department Card Security

Agencies are responsible for providing for the security of Department Cards issued to their agency for use in making general agency purchases. The Department Cards shall be held in a secure location at each site where they are issued. When a purchase needs to be transacted using the Department Card, it shall be released to a Card User for that purpose. All Department Card usage shall be tracked and recorded through the use of two new forms, the Department Card User Log and the Department Card Purchase Log Sheet. The Department Card Custodian shall be responsible for these two forms.

Department Card User Log

The release of the Department P-Card from its secured location to the Card User shall be tracked through the use of the CO-504D Department Card User Log form. On this document, the Card User's name shall be recorded and his or her signature obtained. The date and time the card is being taken shall be indicated. When the Card User returns the P-Card, that date and time shall be recorded. The Department Card Custodian shall sign and date the Department Card User Log and submit it to the Agency Purchasing Card Coordinator at the end of each billing cycle.

Department Card Purchase Log Sheet

The CO-501 has been modified to become the CO-503D Department Card Purchase Log Sheet form. It now includes a spot for the Card User who made the purchase to record his or her name in addition to all the other data normally collected on this form. The Department Card Custodian shall submit Department Card Purchase Log Sheets in accordance with existing agency procedures.

Purchasing Card Payment Procedures

Overview

The Purchasing Card coordinators will create Core-CT vouchers to pay JPMorgan Chase Bank for the full amount of the billing statement. This bill must be paid on time for the entire amount. The voucher will be processed against the P-Card Purchase Order. A Journal Voucher may need to be processed to change chartfield distributions not captured on the voucher that was generated in Core-CT.

Detail Procedures

1. Users will reconcile their Purchasing-card transactions using Payment Net for the appropriate billing period.

For swipe transactions (point of sale) issue an on-line purchase order monthly, quarterly or annually as best suits the budget management needs of the agency. Do not wait until a bill is received from the bank, produce statements from Payment Net to establish the purchase order. To ensure statutory requirements regarding the encumbrance of funding, the purchase order should be established prior to using the P-card in the new billing cycle.

2. Purchasing will submit the PO for approval. (Refer to the WLA: Submit an Online PO for Approval).

• The Amount Approver and Budget Approver will approve the PO for processing. The
  PO will be Budget checked and Dispatched through the batch processes.

3. The Voucher Processor will create a voucher copied from the Purchasing-card PO from Step 2 for the full amount of the billing period.

• The receipt date on the voucher should be the last day of the billing period (10th of the month).
   
• Agency Account number must be entered in the invoice number field.

4. The voucher will be processed through normal voucher processing. To verify that the voucher was created correctly, refer to the WLA: Viewing Voucher Information.

5. To verify the Purchasing-card PO Balance after the voucher has been processed, run the PO Balance Report to view the balance left on the PO lines.

6. If Chartfield adjustments need to be made to the Voucher from step 4, create a journal voucher to capture the new distribution date.

Payment Net System

Payment Net allows the Agency Coordinator to view transaction information, print statements and run reports (see "Management Information," p. 26 for additional information). A Payment Net account will be established for the Coordinator in each agency and a password will be provided. The Coordinator can then access information on all P-Card activity for the agency and monitor usage by each cardholder.
Payment Net statements and reports can also be run at the end of each billing cycle to determine the agency's monthly bill. Statements can be run for each cardholder and used to reconcile the cardholder's account in accordance with agency procedures. JPMorgan Chase Bank does not provide individual statements to the agency or cardholders.

http://das.ct.gov/images/1090/PaymentNet4_User_Guide.pdf 

http://das.ct.gov/images/1090/PaymentNet4_Reports_Reference_Guide.pdf 

CARDHOLDER RESPONSIBILITIES

• Using the card for State purchases and approved items only.

• Recording all purchases on the P-Card Log, CO-501 and maintaining all supporting documentation (e.g., proper receipts, vendor order forms, cash receipts, etc.)

• Ensuring receipt of goods and following up with the vendor to resolve disputes and arranging for returns, credits, delivery problems, etc.

• Reporting lost or stolen card immediately.

• Safeguarding card security at all times.

• Ensuring the reconciliation of the P-Card Log to the Payment Net statement.

• Completing the reconciliation process as required by agency procedures.

• The cardholder is responsible for all purchases made with the card and for making such purchases in accordance with the procedures outlined in the Cardholder Work Rules and your agency's procedures.

• Only the cardholder is authorized to use the card.

• The cardholder is responsible for repayment of improper charges and has personal liability for misuse.
  

Security

Authorized use of the P-Card is limited to the person whose name appears on the face of the card. The P-Card must not be loaned to another person. If the cardholder is going to be absent from work for an extended period of time, a separate card may be issued to a different person with purchasing authority for the duration of the absence.

The P-Card should be kept in an accessible but secure location. The account number on the P-Card should not be posted or left in a conspicuous place.

Cardholders must return the P-Card to the Agency Program Coordinator immediately upon request or upon termination of employment (including retirement).

The Agency Program Coordinator should be contacted when changes need to be made to existing P-Cards. If a new P-Card needs to be issued, the cardholder should receive the replacement card in 7-10 business days. If the P-Card is lost or stolen, the cardholder must immediately notify JPMorgan Chase and the Agency's Program Coordinator.

The State of Connecticut is liable for the use of the P-Card by authorized users, provided that use is within the single per transaction dollar limit. The State does not accept liability for the following:

• Unauthorized use of the P-Cards.
• Account numbers that are fraudulently used.
• Purchases made with stolen or lost cards that are beyond the maximum limit of $50 and the maximum length of liability of 24 hours after discovery and reporting of card loss or theft.

P-Card Log

The P-Card Log, CO-501 (See Exhibit B) has been designed to meet the needs of the Program. The log has been preprinted on an envelope to maintain all documentation related to a purchase card payment. Cardholders must maintain a log of their purchases so spending limits can be monitored and purchasing activity can be reconciled to the monthly charge card statements.

The purchasing log must be submitted to the Agency Program Coordinator or as agency procedures specify every month only if purchases have been made that month.* A new purchasing log must be established at the beginning of each new billing cycle. The log contains the following information:

• Cardholder Name
• Agency Number, Name/Department
• Billing Cycle Date
• Date of Purchase
• Vendor Name
• Description of Purchase
• Amount of Purchase
• Object Code
• Returned/Credited/Disputed Item
• On Contract/SBE/MBE/WBE
• Cardholder Signature and Date
• Supervisor/Reviewer Signature and Date
• Total Dollar Amount

* The P-Card Log envelope was developed and intended for the convenience of reconciliation and ease of auditing. Use of the envelope is strongly recommended. However, agency procedures may differ from this process if compensatory controls are in place. The Comptroller's Statewide Fiscal Policy Unit must approve procedures that differ from the recommended practice.

HOW TO USE THE P-CARD

1. Identify a vendor that sells the goods needed. Determine if the transaction total is less than the authorized transaction limit on your card and if the purchase and will be made by swipe. If not, the transaction must be processed in accordance with established agency and procurement policies and procedures.

If the product or service being ordered is available from a State contract supplier, the order must be placed with the State contract supplier.

Always use the State contract unless the vendor cannot meet the business needs of the agency in terms of delivery time. If you use a non-contract vendor and are using P-Card logs, make a note on the P-Card Log in the space for Returned/Credited/Disputed Item that this was an "emergency purchase" to indicate that the contract vendor could not meet the agency's business needs.

2. For swipe purchases call or go to the vendor's place of business and place the order. Advise the vendor that the purchase will be made using a MasterCard P-Card. EMPHASIZE that the State is a tax-exempt institution. If the supplier requests the State's Tax Number, provide the supplier with the tax number on the front of the Purchasing Card. A copy of the tax-exempt certificate from the Department of Revenue Services may be faxed to the supplier as proof of the State's tax-exempt status.

3. Give the vendor the account number and expiration date on your purchasing card. The
vendor will verify the account number with Total Systems. The spending limit will be checked electronically for compliance with applicable limits. Important: Tell the vendor that the address label/packing slip that accompanies the package must contain the following information; cardholder's name, agency name, building and room number, street and city address. Packages that are not labeled as described may delay the delivery of items ordered indefinitely. Under no circumstances should the vendor indicate the P-Card number on any address label or packing list. Listing of it would threaten the security of your card. In addition, please inform the vendor not to send a bill or invoice to the ordering department or your Business Office. Submitting an invoice for a charge card transaction may result in a duplicate payment.

4. If using log enter the purchase information in ink on the purchasing log (CO-501). Print legibly.

5. Documentation must be maintained to record the transaction according to agency procedures.Documentation must support the legitimate business purpose of all transactions made with the P-Card. Supporting documentation should include the one of the following items:

• Copy of an order form or application when available
• Packing slip (for goods received) or service report for any service performed by a supplier
• Cashier receipt or vendor invoice
• Internal order form when available

This documentation must be kept by the Cardholder for reconciliation to the charge card statement according to agency procedures.

6. Reconciliation of the P-Card Account:

a. Each month the Agency Coordinator will generate a statement for each cardholder that should be compared to a Core-CT statement or the purchasing log to verify that purchases and returns are accurately listed on the statement. Items that were returned are not to be crossed off the purchasing log. The credits are identified as separate transactions and must be included for auditing purposes.

b. All documentation pertaining to purchases and returns must be matched with the Card statement.

c. Discrepancies should be communicated to the coordinator or noted on the purchasing log for subsequent resolution. If sales tax is billed incorrectly to the Cardholder's account, it is the responsibility of the Cardholder to dispute the charge as outlined in the section "Disputing a Transaction".

d. The P-Card statement and the CO-501, P-Card Log, certifying receipt of all purchases and returns should be forwarded to the cardholder's supervisor or person responsible for approving transactions within a time frame agreed upon by the agency coordinator if they are not reconciling or approving in Core-CT. The CO-501, Purchasing Log, must be signed by the cardholder and the cardholder's supervisor or other approver.

e. All supporting documentation pertaining to the purchases and returns on the statement should be kept on file by the cardholder with the purchasing log until disposition in accordance with agency policies.

Returns, Credits and Disputed Items

In most cases, disputes can be resolved directly between the cardholder and the vendor that provided the goods and services. The cardholder must use the following guidelines when returning an item:

1. If an item needs to be returned for any reason, the cardholder should send the item back to the vendor in the manner agreed upon.

2. The vendor should issue a credit for items that are returned. This credit will appear on a subsequent charge card statement.

3. Documentation of the return (such as a credit receipt) should be issued by the vendor. All documentation pertaining to returns must be kept on file for reconciliation to the charge card statement.
 
4. The return should be entered on the cardholder's P-Card log. The return should be entered or carried forward on the CO-501 or CO-502 until the discrepancy is resolved. When the discrepancy is resolved, the date of the resolution should be entered on the CO-501.

5. If the cardholder and the vendor cannot resolve an issue, the cardholder should contact the agency coordinator who will contact JPMorgan Chase Bank. The bank will investigate the dispute on the cardholder's behalf and assist in the resolution. A temporary credit will be issued pending final resolution.

Disputing a Transaction:

A Cardholder may dispute a charge that appears on their monthly credit card statement. If there is a charge that is not recognized by the Cardholder, or if it appears to be incorrect, the Cardholder must submit a Transaction Dispute Form (Exhibit C) with supporting documentation to the agency coordinator.

The Coordinator must phone the JPMorgan Chase Bank Disputes Team at 1-888-297-0768. If instructed by JPMorgan Chase Bank Disputes Team, fax completed Transaction Dispute Form to both the JPMorgan Chase Bank Disputes Team at fax #1-847-931-8861 and the P-Card Program Administrator at fax #860-713-7484.

During the investigation, a credit will be issued to the Cardholder's account for the amount questioned. When the bank has completed the investigation, the Cardholder will be notified of the resolution. If the dispute is not settled in favor of the Cardholder, the account will be charged for the disputed transaction amount.

During the dispute process, the Program Administrator may be required to request copies of sales drafts. When the request is fulfilled, the Cardholder's account will be charged $5.00 for each copy supplied by the bank.

REPORTING A LOST OR STOLEN CREDIT CARD

Cardholders

If a P-Card is lost or stolen, it is the Cardholder's responsibility to immediately make two phone calls:

1. Immediately contact JPMorgan Chase Bank at 1-800-316-6056.

2. After reporting a lost or stolen card to the bank, the Cardholder must also immediately report a lost or stolen card to their Agency P-Card Coordinator.

Bank representatives are available 24 hours a day, seven days a week. A recording will welcome you to JPMorgan Chase Bank and ask you to press 1 for English (if you stay on the line it will offer other languages).

You will then be asked to enter your account number or if you are reporting a card lost or stolen, to press the (#) key. You will be connected to a bank representative and they will cancel your card. If the situation is warranted, a new account number and plastic is automatically generated and mailed to the P-Card administrator.

Agency Coordinators

Once your cardholder contacts you reporting their card lost or stolen, you have two things to do:

1. Confirm that the cardholder reported their card lost or stolen to the bank.
2. Email the P-Card Administrator at kerry.dimatteo@ct.gov  to notify her that a card was reported lost or stolen to the bank and alert her that a replacement card will be sent to her attention.

Records Retention:

Purchasing card documents are to be maintained on file in each agency for 3 years or until audited, whichever is later

INTERNAL CONTROL

The agency must establish a program of internal control to address the use of the P-Card as a means of expending State funds. The following is the minimum level of standards acceptable for departmental internal control systems that will be developed to guide the use of the P-Card.

• Systems are to be clearly documented and readily available for inspection.
   
• Those persons who are authorized to use cards are to be identified by name.
   
• All transactions and other significant events are to be promptly recorded, properly classified, and promptly reconciled.
   
• Transactions and other significant events are to be authorized by persons acting within their scope of authority.
   
• Key duties and responsibilities should be assigned systematically to a number of individuals to ensure that effective checks and balances exist.
   
• Spending limits are set for cardholders and offices, including single purchase and monthly limits.
   
• Cardholder statements are reconciled and approved.
   
• Qualified and continuous supervision is to be provided to ensure that internal control objectives are achieved.
   
• Access to resources and records should be limited to authorized individuals as determined by the department head.

Each agency has responsibility to ensure that there is written documentation of its internal and administrative control systems on file and that these controls are reviewed on an annual basis and updated where necessary.

All unaccounted for variances, losses, shortages, or thefts of funds or property must be reported immediately.

Cancellation of P-Cards

When an employee leaves an agency for any reason, (retirement, resignation, termination, transfer or death) the P-Card must be cancelled by using the POL application. The card should then be destroyed by the coordinator and the coordinator should make sure the account has been reconciled by the cardholder.

Audits

To ensure the continued success of the Program and to meet the audit requirements of the State, various government agencies, and the requirements of this program, periodic audits will be made of the Cardholder's accounts to ensure that items purchased have been received and that policies and procedures are being followed.

Audits will be completed in accordance with the following guidelines:

• The Fiscal Policy Statewide Services Unit will perform a periodic post audit and complete a written audit report with findings for each Cardholder account;
   
• Audit reports will be completed utilizing a post audit checklist to record any infractions against the categories of misuse outlined in the Agency P-Card Coordinator Manual, Cardholder or Travel Account Work Rules, the Agency Procedure Manual or State Accounting Manual;

After full program implementation, yearly audits may be completed on all Cardholder accounts as follows:

• Audits may be completed on each account as time permits subject to the quantity of cards issued;
   
• Audits will be completed on those accounts where infractions were previously identified on a priority basis;
   
• Quarterly audits may be completed on all new and existing accounts when a low to moderate volume of cards have been issued;
   
• An annual audit may be completed as a minimum for each account when a high volume of cards has been issued;
   
• Random audits may be scheduled at any time in addition to the regularly scheduled audit rotation.

Audits will be conducted for the purpose of confirming compliance to established procedures for card use:

• Maintenance of documentation standards; Use of card for personal purchases;
   
• Use of card by individual other than Cardholder;
   
• Use of the card to purchase a restricted item as identified in the Cardholder or Travel Account Work Rules;
   
• Use of the card in direct violation of acquisitions goals (failure to use existing State contracts);
   
• Use of the card in excess of assigned Cardholder limits, available budget and/or after the expiration date of a contract;
   
• Splitting orders at point of sale to avoid the single transaction limit;
   
• Receipt of item outside of contract period.

Consequences of misuse will include any one or combination of the following remedial actions:

• Verbal notification of infraction;
   
• Written notification with copies sent to the P-Card Post Audit Committee and reporting authority;
   
• Temporary suspension of Cardholder privileges with mandatory re-training (Suspensions will be assessed for a period of a minimum of thirty (30) days or up to ninety (90) days depending on the severity of the infraction);
   
• Card suspension with permanent loss of privileges;
   
• Disciplinary action up to and including dismissal, personal liability and repayment (referred to Human Resources Department for disposition).

Reporting requirements may include any one or combination of the following options subject to the determination of the P-Card Program Administrator and Post Audit Committee.

Formal written warnings will be sent to the individual Cardholder from the DAS/Procurement Services Program Administrator with copies to the Cardholder's immediate supervisor, Dean/Director, or Department head.

The Commissioner of the Department of Administrative Services and the State Comptroller will be copied on the notification based upon the severity of the infraction. The notification will include a warning for P-Card revocation pending further investigation and/or misuse.

EMERGENCY P-CARD PROGRAM

The State of Connecticut has implemented an Emergency Purchasing Card Program that is part of the current Purchasing Card Program administered by the Office of the State Comptroller and Department of Administrative Services. The purpose of the Emergency Purchasing Card (E-Card) is to have a purchasing mechanism in place that is activated in the event of a State of Emergency.

CONDITIONS OF USE

The State Purchasing Card may be used for emergency purchases in the event of a State of Emergency declared by the Governor and if no action to disapprove has been taken by the General Assembly (CGS Sec 28-9).

Each State agency authorized to use the Purchasing Card during a State of Emergency will be required to enter into an agreement to comply with State policies and procedures specifically established for the Purchasing Card during a State of Emergency.

EMERGENCY CARDHOLDERS

Not all agencies will have a need for an emergency purchasing card, while some agencies will have a need for more than one emergency purchasing card. Each State agency must determine if a need exists to designate emergency cardholder(s). Emergency cardholders will have transaction limits raised and be responsible for placing orders, maintaining receipts in a purchasing log envelope and forwarding to the Agency Purchasing Card Coordinator. The Agency Purchasing Card Coordinator will be responsible for maintaining the list of authorized agency individuals designated as emergency cardholders.

There will be two types of emergency card purchasers:

• Dormant - inactive cardholders with emergency card level limits. A card will be issued to an employee and the card will only be activated if a State of Emergency has been declared by the Governor.
  The attached E-Card Application must be completed for each dormant cardholder.
• Open - current cardholders with an active purchasing card. The transaction limit will be enabled with the emergency card level limits if a State of Emergency has been declared by the Governor.
  The Department of Administrative Services will serve as the Statewide Purchasing Card
  Administrator and liaison with the bank of record to maintain the current listing of authorized emergency staff and to ensure that the emergency limits have been activated.

EMERGENCY CREDIT LIMITS

The Comptroller has established specific limits for the use of the Purchasing Card during a State of Emergency and will conduct post audits on the use of the cards.

Authorized emergency limits have been established at $250,000 per transaction. The limit of transactions per day and per month is 999. The Purchasing Card emergency credit limits will not be activated until the Governor declares the emergency.

AGREEMENT FOR USE AND NEXT STEPS

Agency heads should review their agency's disaster plan to determine if the emergency card is necessary and an appropriate use for the agency.
If an Emergency Purchasing Card is determined to be used during a State of Emergency, the agency must complete and sign the "Agreement for Use of the Purchasing Card During a State of Emergency" and attach a list of those employees, including the current cardholders last ten (10) digit account number, currently authorized for Purchasing Card use who will also be authorized to use the Purchasing Card during a State of Emergency and any other employees who will be authorized to purchase during a State of Emergency.

The agency will work with staff members from the Office of the State Comptroller and Department of Administrative Services to coordinate implementation and compliance with this agreement. Please send the completed Agreement and listing to:

Office of the State Comptroller
Emergency Purchasing Card Agreement
55 Elm Street, Hartford CT 06106
Room 222
Attention: Richard Esten

Emergency Card Activation Procedures

In the event of a Governor declared State of Emergency, the Governor's designee (To Be Determined By The Governor's Office) will notify the P-Card Administrator(s) that the Governor has declared a State of Emergency and to activate the Emergency Card Program Plan. The list of P-Card Administrators is on file with the bank and can be found in the "Contact Information" section.

The P-Card Administrator(s) will contact the bank to activate the Dormant E-Cards and to enable the Open E-Cards with the emergency card level limits. The list of Emergency Card Purchasers, both Dormant and Open E-Cards are available upon request and on file with the bank. The P-Card Administrator keeps this list current on a quarterly basis.

Tracking Emergency Card Purchases

All cards are billed to their designated agency account. In the event of emergency purchasing, Open E-Cards may have previous charges from everyday business transactions. If necessary, "Emergency" charges would be determined starting from the date/time that the Governor declared an emergency.

QUESTIONS

Questions may be directed to:

State Comptroller's Office, Statewide Fiscal Policy Unit, Carolyn Mercier (860) 702-3318 or Richard Esten (860) 702-3428

Department of Administrative Services, Procurement Unit, Carlos Velez (860) 713-5092 or
Kerry DiMatteo (860) 713-5072

MANAGEMENT INFORMATION

The Payment Net System provides agencies detailed management information reports that enable agencies to monitor cardholder usage, policy compliance, and frequency of vendor usage. Management information reports currently available include:

Program Management/Policy Compliance Reports
Cardholder Transaction Review
Transaction Report by MCC Code
Cardholder Statistics
Statement of Account

Supplier Management Reports
Industry Spending Summary Report
Industry Spending Trending

Core-CT - EPM Query Reports

Set-aside Reporting for P-Card Transactions

• MasterCard Enhanced Merchant Data
• MasterCard Socio-Economic
• Merchant Profile-MS Excel
• Visa Socio-Economic
• Visa Merchant
• State Agency Coordinators needing to run these reports refer to the Payment Net Reports Reference Guide or User Guide;

http://das.ct.gov/images/1090/PaymentNet4_User_Guide.pdf 

 

http://das.ct.gov/images/1090/PaymentNet4_Reports_Reference_Guide.pdf

MINI GLOSSARY OF TERMS

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