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Purchasing Card

Purchasing Card. FMR-4A-02 http://www.admin.state.mn.us/fmr/policies-procedures_1.html. Agenda. Background Roles and Responsibilities Purchasing Card Usage Processes Miscellaneous Audit/Fraud/Ethics. Background. Pilot Audit Statewide Purchasing Card Policy 2.0

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Purchasing Card

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  1. Purchasing Card FMR-4A-02 http://www.admin.state.mn.us/fmr/policies-procedures_1.html

  2. Agenda • Background • Roles and Responsibilities • Purchasing Card Usage • Processes • Miscellaneous • Audit/Fraud/Ethics

  3. Background • Pilot • Audit • Statewide Purchasing Card Policy 2.0 • http://www.mmd.admin.state.mn.us/pdf/alpappnpolicy1.pdf • Revised FMR-4A-02 Purchasing Card • http://www.admin.state.mn.us/fmr/documents/Policies%20&%20Procedures/Procurement-Expenditures/FMR-4A-02%20Purchasing%20Card%20with%20implementation%20date.pdf

  4. Roles and Responsibilities • Cardholder • Cardholder’s Supervisor • Purchasing Card Coordinator • Purchasing Card Program Manager • Purchasing Card Contractor

  5. Cardholder • FMR-017-01 Purchasing Card Application/Agreement • Securing purchasing card • Following the policy • Documentation • Sales Tax

  6. Cardholder’s Supervisor • Determine need for purchasing card • Approve application/agreement form • Review documentation to ensure compliance • Monitor timely submission of documents • Approve cardholder’s purchasing log

  7. Purchasing Card Coordinator • Provide and document training for new cardholders and cardholders’ supervisors • Review documentation to ensure compliance • Monitor timely submission of documents • Complete Purchasing Card Summary for Payment • Ensure resolution of disputed charges • Annual review of purchasing card needs

  8. Purchasing Card Program Manager • Review application/agreement • Request purchasing card • Communicate agency purchasing card information • Maintain list of cardholders, coordinators, etc. • Ensure annual reconciliation to contractor information • Coordinate annual confirmation of purchasing card needs • Cancel purchasing card • Train purchasing card coordinators

  9. Purchasing Card Usage • Limits – • $2,500 per transaction, $10,000 per month • Multiple purchases to circumvent limit are prohibited

  10. Authorized Uses • Travel Expenses • Lodging • Airline Tickets • Conference Registration Fees • Benefits must accrue to the State (i.e. Frequent flier miles/rewards) • Necessary Goods and Simple Services • ALP authority • Low risk services occurring offsite • Group Meals • FMR-4D-01 Special Expense

  11. Prohibited Purchases • Goods and services for personal use; • Illegal activities; • Non-authorized use (e.g. family member or friend) at work or away from work; • Use of the purchasing card by someone other than the cardholder; • Political activities, fund-raising, union-related activities; • Uses that are in any way disrupting or harmful to the reputation or business of the state; • Licensed equipment (e.g. vehicles, trailers, boats, snowmobiles, all terrain vehicles, etc.);

  12. Prohibited Purchases - Continued • Weapons, ammunition, and explosives; • Maintenance/license agreements; • Meals for an individual; • Alcohol; • Drugs; • Telephone calls (either personal or business); • Cash, cash advances, extension of credit; • Professional/technical, consulting, construction, or high-risk services;

  13. Prohibited Purchases - Continued • Financial services except where it is the only means to make a valid authorized state business purchase (e.g. Pay Pal); • Fixed/capital assets and sensitive items; • Vehicle-related goods or services including fuel; and • Printers and copiers.

  14. Purchasing Card Additional Information • Emergency Use (ALP 1.6.1) • For individual cardholder use only

  15. Application Process • Supervisor determines purchasing card need • Completes Purchasing Card Application/Agreementform • Purchasing Card Program Manager requests purchasing card • Coordinator trains cardholder and cardholder’s supervisor • Cardholder activates card and provides card number

  16. Purchasing and Payment Process • Encumber funds • Purchase in compliance with ALP • Sales Tax (exempt from direct pay permit) • Retain receipts for individual purchases • Complete Purchasing Logand attach documentation • Disputes (document and follow up)

  17. Purchasing and Payment Process - Continued • Memo Statement • Cardholder Supervisor review • Purchasing Card Coordinator review • Complete Purchasing Summary for Payment • Accounts Payable processes payment • Rebates • Reference Corporate Account

  18. Miscellaneous • Lost/Stolen Purchasing Card • Damaged Purchasing Card • Expired Purchasing Card • Cancel Purchasing Card

  19. Audit/Fraud/Ethics • Purchasing Cards are subject to audit anytime • Agency Sample Reconciliation Process • Fraud • Notify the Office of the Legislative Auditor (OLA) • Ethics • M.S. 43A.38 • Code of Conduct

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