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State of New Mexico Procurement Card (P-Card) Program

State of New Mexico Procurement Card (P-Card) Program. Procurement Card Training February 27, 2013. State Agencies Using or Interested in the P-Card Program. Currently t here are 28 State A gencies that are on the P-Card program

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State of New Mexico Procurement Card (P-Card) Program

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  1. State of New MexicoProcurement Card (P-Card) Program Procurement Card Training February 27, 2013

  2. State Agencies Using or Interested in the P-Card Program • Currently there are 28 State Agencies that are on the P-Card program • There are 4 Additional State Agencies that are Interested in Utilizing the P-Card program

  3. What is a Procurement Card? • A.K.A P-Card or Purchasing Card • The State of New Mexico’s Charge Card • For Goods • For Services • For Emergencies • For State Agency Frequent Individual Travelers • Alternate Method of Payment to the Procurement Code Process • Bank of America – VISA Product

  4. Goals of the Program • Streamline Payment Process • Eliminate Direct Purchase Orders • Reduce Purchase Documents • Reduces Payment Vouchers • Future Electronic Submission of Payment to the Bank of America • Elimination of Non-Taxable Transaction Certificates (NTTCs) for Goods Only • To Incorporate as Many State Agencies as Possible

  5. P-Card Benefits • Quicker Payment to Vendors • Reduces Preparation of Individual Purchase Orders and Payment Vouchers • Procurement Items are Received Immediately • Rebates for the State of New Mexico • 1099 Reporting Form for P-Card is no Longer Required

  6. 1099 Reporting Form

  7. General Policies • Department of Finance and Administration (DFA) - Financial Control Division (FCD) Statewide Procurement Card Policies and Procedures • State Agency Internal Policies and Procedures • Procurement Code and State Statutes • State Agency Agreements • State Agency Cardholder Agreements

  8. Policy Exemptions • Exemption from Attaching Supporting Documentation (i.e. Invoices and Receipts) • Exemption from Encumbrance Requirements – P-Card Only • Purchases Over $1,500 Must Comply with Procurement Code – State Contract/Price Agreements

  9. Eligible Purchases • May Be Used for Purchases Equal to or Under $1,500 and • Goods and Services Included in Price Agreements Approved by the State Purchasing Division of the General Services Department (GSD) - Over $1,500 • Travel for State Employees Conducting Frequent Official State Business

  10. Limitations/Restrictions • Vendors Must Accept Visa • Pursuant to Approved MCCs “Procurement Card Listing for Restricted Items” • No Personal Charges • No Cash Advances/Instruments Allowed • No Cardholder Sharing • P-Card Does Not Work at State Agencies (For Example: State Printing)

  11. Card Misuse • Cardholder is Responsible/Liable for Card and it’s Use • Seek Full Restitution Plus Interest • Disciplinary Action, Up to and Including Termination of P-Card Program • DFA/FCD Prerogative to Revoke Card(s)

  12. How Do I Use It? • Creation of a Internal Purchase Requisition (IPR) for Approval Before Purchase • Same as a Regular Credit Card • Catalog Orders • Internet Orders Does not Circumvent the Procurement Process

  13. Internal Purchase Requisition Log

  14. Payment of Charges • Consolidated Billing Statement Sent to the Agency • Single Fund Payment to Bank of America (BofA) • Payment Voucher for BofA Must be submitted to FCD within 15 days of BofA Statement Issued Date • NO LATE PAYMENTS

  15. Prior to Making Payment to Bank of America • State Agency P-Card Administrator or a Designated State Agency Cardholder will Need to Reconcile to Receipts of all Charges Listed on the Monthly Billing Statement Prior to Sending a Payment Voucher to DFA/FCD for Processing a Payment to the Bank of America

  16. Supporting Documentation Required to Make Payment for the P-Card • Payment Voucher Batch Report • On the Invoice Information Tab of the Payment Voucher, Card Number and \ Must be Entered • Monthly Billing Statement • Signed Affidavit for Receipts

  17. Budget/Credit Monitoring • State Agencies Must Develop Internal Policies and Procedures on How the P-Card Will be Used • Budget Must Be Available Prior to Purchase • State Agencies Must Follow FCD’s Year-End Closing Instructions Related to the P-Card • WORKS Software is Available to Monitor Credit Limit and Purchase Activity

  18. Travel General Polices • Agency Travel Policies and Procedures • Authorization from FCD and State Agency Program Administrator to use P-Card for Travel • Must Abide to the Per Diem and Mileage Act and DFA Rule 95-1 Regulations Governing the Per Diem and Mileage Act

  19. Individual Travel P-Card • P-Card Issued Solely for State Employees that Conduct Frequent Travel for Official State Business • Limited to: Lodging, Renting Vehicles, Purchasing Airline or Common Carrier Fare, Baggage Fees, Meals and Gasoline for the Rental Car

  20. Post Audit on P-Card • Financial Control Division Auditor will Conduct Post-Audit • Post Audits Conducted Monthly • However, FCD May at any Time Perform an Internal Audit of an State Agency that Utilizes the P-Card • Post Audit Guidelines • Post Audit Form

  21. Why is a Post Audit Needed? • Verify Compliance with • DFA/FCD Policy and Procedures • New Mexico Procurement Code • New Mexico State Statutes • Monitor • Transaction Types • Amount of Transactions • Proper Allocation of Transaction Types

  22. What Happens if there are Findings on a Post-Audit? • FCD Auditor Will Notify the State Agency’s Chief Financial Officer (CFO) • Memo • Copy of the Check List Form • Copies of All Documentation in Need of Correction

  23. Keep in Mind and Consequences • FCD Reports to the Governor’s Office on the Status of the P-Card Program • Failure to Comply with any of the P-Card Policies and Procedures will Result in a Revoked P-Card Program for the State Agency

  24. How to Get Started? • State Agency Must Establish Internal Policy and Procedures • State Agency’s Management Approval • Assess Current Purchasing and Payment Practices • Decide on Cardholders • Identify Spending Limit

  25. Things to Remember • Read and Understand Your Policies and Procedures • Be Aware of Restricted and Allowable Purchases • Retain all Your Receipts • Keep Transaction Logs Up-to-Date • Review and Reconcile Your Monthly Statements Timely for Payment Voucher Submission to FCD • No Cardholder Sharing • No Longer Required to Submit the 1099 Reporting Form for P-Card

  26. Questions?

  27. Useful Websites • Financial Control Division • http://www.nmdfa.state.nm.us/Financial_Control.aspx • State Purchasing Division • http://www.generalservices.state.nm.us/statepurchasing/ • New Mexico Administrative Code • http://www.nmcpr.state.nm.us/nmac/

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