Oklahoma City Community College P-Card Procedures

1. Oklahoma City Community CollegeP-Card Procedures SAMPLE Rev. January 2018

2. Introduction • The OCCC P-Card is a Visa Purchasing Card issued by the Bank of America (BOA) • The BOA P-Card contract is administered by the OCCC Purchasing Department • There are no fees associated with the program • The terms of the Statewide Contract allow Higher Education and Political Subdivisions to participate in the program; however they are entitled to implement their own policy governing the use of the card; • It is the only credit card authorized by the State of Oklahoma and OCCC

3. Implementation & Maintenance • To Join the Program: • Submit a P-Card Application, signed by the Employee’s Supervisor, to the OCCC Purchasing Department • OCCC Director of Purchasing will forward an “Implementation Actions” worksheet advising the next steps

4. Encumbering Funds • Purchase Order • PO should have sufficient encumbrance to cover all transactions prior to making the transaction (Encumbrance Law §62-34.62) • Changes to amend the encumbrance may be processed as necessary • A new PO should be issued each new fiscal year or as deemed necessary by the Purchasing Department

5. Records Retention • Maintain in a central and secure location; • Records include any transaction documentation, such as, statements, receipts, disputes, correspondence, etc.; • Includes documentation in paper or electronic form and must meet: • OCCC & OMES Information Security Policies, Procedures & Guidelines • Oklahoma Archive Commissions Rules • Must be maintained for seven (7) years; • If audit or litigation occurs, the records are required to be retained for two (2) years after issues are resolved or until the end of the seven (7) year period, whichever is longer

6. Revenue Sharing • Provided to all participants based on • Total Dollar Spend • Average Transaction Size • Speed of Pay • Divided among participants based on agency spend. They more you spend on the p-card the bigger your rebate check.

7. Definitions • Cycle – means the period of time between billings; our cycle closing date is the last business day of the month; • Merchant Category Code (MCC) – means a standard code the credit card industry uses to categorize merchants based on the type of goods or services provided by the merchant; • Merchant Category Code Group (MCCG) – means a defined group of merchant category codes. MCCGs are used to control whether or not P-Cardholders can make purchases from particular types of merchants;

8. Definitions • Single Purchase Limit means the maximum spending limit a P-Cardholder is authorized to charge in a single transaction. • Cannot split purchases for the purpose of evading: • Statutory Single Purchase Limit of $5,000 (not including Central Purchasing Statewide Contracts, Regulated Utilities, Interagency Payments, & Professional Services as defined in 18 O.S. § 803) • Limits established for an individual P-Card; • A competitive bidding requirement

9. Definitions • Split Purchase means dividing a known quantity or failing to consolidate a known quantity of an acquisition for the purpose of evading a competitive bidding requirement; • Statewide Contract means a contract issued by OMES for specific acquisitions for a specified period, with a provision allowing the agencies and Political Subdivisions to place orders as acquisitions are needed; • Transaction Documentation means all documents pertaining to a transaction

10. Participants

11. Employee Status • P-Card participants must be a full time or permanent part time employee of OCCC • Cannot be on a temporary, contract, student, or retired employee status • Must complete satisfactory 90-Day Probationary period (however there are exceptions to this rule based depending on position.)

12. Training • All P-Card participants must complete initial training conducted by the Purchasing Department with all new Pcard applicants; • Cardholders will be provided by email communication an annual refresher of the P-Card procedures at the beginning of each fiscal year (July 1). • Individual cardholder training will be scheduled at the discretion of the Director of Purchasing on an as needed basis.

13. P-Card Employee Agreement • All participants must read and sign the P-Card Employee Agreement. • OCCC P-Card Coordinator retains original and provides P-Card participant with a copy.

14. P-Card Management & Reports • OCCC P-Card Coordinator is responsible for performance or appropriate delegation of the following duties: • Processing and retaining P-Card Program Reports: • Monthly Statement; • Invoice; • Other reports are available in Works and urge P-Card Coordinator to utilize these as well • Processing and retaining P-Card Employee Agreements

15. P-Card Management & Reports • OCCC P-Card Coordinator is responsible for performance or appropriate delegation of the following duties: • Establishing written P-Card program policies and procedures; • Processing authorized requests for P-Cards, maintaining control over active cards, and closing accounts; • Establishing and maintaining usage controls and determining cardholder’s need for the P-Card; • Auditing of reports and transactions to identify unauthorized use; • Auditing 100% of cardholder’s monthly statements for accuracy

16. P-Card Management & Reports • OCCC P-Card Coordinator is responsible for performance or appropriate delegation of the following duties: • Retaining detailed transaction documentation supporting • P-Card transactions • Make available upon request • Establish procedures for maintaining necessary data before it is removed from Works • Paper Copies • Electronic Copies, must meet: • OMES Information Security Policies, Procedures and Guidelines • Oklahoma Archive Commission Rules

17. Issuing the P-Card • Once application is completed, the OCCC P-Card Coordinator orders the card online • P-Card Coordinator must provide: • Monthly credit limit; • Single Transaction limit; • MCCGs that are blocked

18. Issuing the P-Card • Front of P-Card includes: • Cardholder’s name and agency name • Does NOT effect your credit in any way! • Once P-Card is ordered, it is • Delivered to the OCCC P-Card Coordinator • Checked for accuracy • Training is scheduled • Must sign the Employee P-Card Agreement and complete orientation training prior to receipt of the P-Card

19. Property of the State • Corporate Liability card; • Upon termination of employment with the state agency, cardholder must surrender the card to the OCCC P-Card Coordinator prior to leaving; • OCCC and OCCC P-Card Coordinator may also request the cardholder to surrender the card; • Upon surrendering of card; OCCC P-Card Coordinator shall document return on P-Card Application and destroy the card; • OCCC P-Card Coordinator shall also deactivate the card in Works and delete the User information

20. Card Replacement • Expired Cards • BOA will automatically issue a replacement card prior to expiration • Defective Cards • OCCC P-Card Coordinator can order replacement cards online

21. Card Security • P-Card is limited to person whose name is on the card; • Do not loan your card; • Do not use another person’s card; • If possible, file card in a secure, locked place when not in use; • Must return card to the OCCC P-Card Coordinator if leave employment

22. Lost, Stolen, or Compromised Cards • Immediately report any lost, stolen or compromised cards to BOA at (888) 449-2273 • Complete a Lost/Stolen P-Card Notification form found on the OCCC P-Card website • Forward the original to your OCCC P-Card Coordinator, keep a copy of the form with your Statement, and forward a copy to your Approving Official • Remember – OCCC is responsible for purchases on lost, stolen or compromised P-Cards until BOA is notified

23. Statutory References • All purchases shall be made in accordance with State statutes, rules, and these Procedures, which include but may not be limited to: • Central Purchasing Act, 74 O.S. § 85.1 et seq. • State Travel Reimbursement Act, 74 O.S. § 500 et seq. • OMES, Central Purchasing Codified Rules, OAC 580:16 • OMES State Travel Procedures • OCCC Purchasing and P-Card Procedures

24. Using the P-Card • P-Card is issued in your name and shall be used only by you; • P-Card can be used at merchants accepting VISA. Merchants may require a minimum purchase amount of $10.00 (does not include Statewide contracts); • Purchases can only be made within your Single Transaction Limit and Credit Limit assigned to your card; • Cardholder is responsible for reconciling all transactions; • P-Card is not intended to avoid or bypass appropriate purchasing or payment procedures; • P-Card is not for personal use • P-Cardholder shall ensure prices paid are fair and reasonable

25. Methods of Purchase • Walk-In; • Telephone; • Internet • Make certain internet site is a secure location, for example: • “s” on the end of https means it is a secure site; or • Lockbox will appear on the site

26. P-Card Limits • There is no limit on the amount of a P-Card transaction for the following: • Statewide Contract purchases • Regulated Utilities • Interagency Payments • Professional Services as defined in 18 O.S. § 803 • For any other transaction with a OCCC P-Card, the transaction shall not exceed $5,000

27. P-Card Limits • P-Card limits shall be based on need and/or past usage • May set the Single Transaction Limit less than $5,000 • May set the Single Transaction Limit greater than $5,000 • Statewide Contract purchases • Regulated Utilities • Interagency Payments • Professional Services in accordance with 18 O.S. § 803 • Do not set Single Transaction Limit inappropriately high

28. Utility Bills • P-Card may be used to pay utilities: • Regulated Utilities: • Unlimited Dollar Amount; • Print page verifying it’s a regulated utility and file with statement; • Non-Regulated Utilities: • Yearly total must be less than $5,000; • Identification of Regulated vs Non-Regulated Utilities • Oklahoma Corporation Commission website – www.occ.state.ok.us • Divisions > Public Utility then select the applicable utility

29. Interagency Payments • Interagency is defined according to 74 O.S. § 1003 (Inter-local Cooperation Act) and includes, but not limited to: • Political subdivisions • Federal Government • Public Trusts • Interagency payments between State Agencies, Universities, and Colleges: • Should be made by voucher, selecting the payment method “WIR” • DCAR Newsletter, Vol. 21, No. 7, dated February 18, 2011 (page 3) • Agencies can choose to take P-Card payments from other agencies.

30. Advance (Pre-)Payments • P-Card purchases are subject to OMES Procedures Manual, Section 319, Special Procedures, Chapter L., Advance Prepayments • Can use P-Card for conference registration when: • Discount is provided for paying in advance; • Can substitute a participant; • If event is canceled, cardholder receives a full refund

31. State Sales Tax • State of Oklahoma is exempt from Oklahoma State Sales Tax • State Entities also have immunity from taxes imposed by Oklahoma municipalities, which includes, but not limited to: • City Sales tax; • Occupancy tax; • Tourism tax; The State of Oklahoma is not exempt from Tribal Tax.

32. Convenience Fees • Convenience Fees are fees that might be charged by vendors for accepting credit cards • Strictly regulated by Visa and MasterCard • Convenience Fees may be allowed for certain transactions if charged in compliance with Visa rules • The following fees are NOT allowed by Visa regulations: • Credit Card Fees • Processing Fees • Surcharges

33. Convenience Fees • Convenience fees may be allowed by merchants who offer an alternate payment channel (i.e., mail, telephone, or e-commerce) • Merchant must adhere to the following rules: • Fee is being charged for a bona fide convenience of using an alternative payment channel outside the merchant’s normal business practice • The customer must be given the opportunity to cancel prior to the completion of the transactions

34. Convenience Fees • Merchant must adhere to the following rules (Cont’d.): • The fee: • Must be disclosed to the customer as a charge for the alternative payment channel convenience • Is applied only to non face-to-face transactions • Must be a flat or fixed amount, regardless of the amount of payment due • Is applied to all forms of payment products accepted in the alternative payment channel • Is included as part of the total transaction amount • Cannot be added to a recurring transaction • Is assessed by the merchant that provides the goods or services to the cardholder and not a third party

35. Convenience Fees • Visa is very clear about what a convenience fee is and how and when they can be charged. As a result, many vendors that charge fees do so incorrectly and are therefore out of compliance with Visa regulations

36. Convenience Fees • Examples of common violations • Charging a tiered or percentage based fee • Charging a fee for transaction below or above a certain dollar amount • Charging the fee in person, for face-to-face or point of sale transactions • Charging only for Visa or credit card transactions. Convenience fees must be applied to all payment methods accepted via that channel • Calling the fee a processing fee, credit card fee or surcharge • Charging higher prices for credit card purchases versus checks or cash • Charging a convenience fee via the internet when that is the vendor’s only “normal business practice”.

37. Convenience Fees • Example of an allowable convenience fee: • A utility that charges a convenience fee for paying a bill via the phone or internet versus having to come to an office and drop off a payment. As long as the convenience fee is a flat fee and is charged to all transactions accepted via the phone or internet (such as all card types, electronic checks, etc), it is acceptable on a P-Card transaction

38. Prohibited Purchases • Split Purchasing; • Entertainment; • Cash or cash advances; • Purchase of goods or services for personal use or not for official State use; • Any transaction or series of transactions exceeding your P-Card limits; • Motor fuel and automotive general maintenance; • Automatic Drafts;

39. Receipts • Itemized Receipt must be obtained for all purchases • Vendor • Date of Purchase • Description • Unit price and quantity • Transaction total • A signed receipt must be included with the Monthly Transaction Statement at end of each cycle • May be signed by Cardholder, receiving department designee, or Budget Officer of encumbered account. • Transaction receipts for ticketed events or provided meals for student events must be accompanied with an event roster indicating the individuals attending the event.

40. Shipping & Receiving • Goods or services received at time of purchase • Receipt for purchase will serve as the receiving document • Must be signed and dated (original signature not required) • Goods or services received after time of purchase • The document accompanying the goods or services (such as packing slip) serves as the receiving document • Must be signed and dated (original signature not required) • Itinerary shall serve as the receiving document for airfare (traveler’s signature not required) • Include Packing Slip with Statement at end of cycle • Signature stamps (ink pad) are not permitted

41. Returns • Return item to merchant in manner agreed upon • Merchant issues credit • Merchant provides credit receipt documentation • Place with end of month transaction documentation for reconciling • Include with the payment at end of month • Credit may not appear until subsequent statement

42. Disputes • Disputes may be reported to BOA who will assist the State in resolving the dispute; • Must be initiated within 30 days of the purchase date; • Always try to resolve with the vendor first prior to contacting the bank if possible; • Include with the payment at the end of the month – if win the dispute, a credit will appear in a subsequent statement.

43. Reconciliation - Cardholder • Cardholder makes purchase of goods or services in compliance with these procedures and retains transaction documentation for reconciling at end of month; • Merchant delivers goods and submits transaction to bank; • Allocation Description field in Works is updated; • Statement is printed from Works; • Cardholder reconciles statement with transaction documentation; • Cardholder signs, & dates statement, attaches transaction documentation; • Cardholder forwards statement and documentation to Approving Official for review

44. Reconciliation – Approving Official • Approving Official reviews Cardholder’s reconciled statement and transaction documentation for: • Accuracy; • Completeness; • Appropriateness of the purchase; • Verifying transactions were conducted according to Statutes, Rules and Procedures • Issues between Approving Official and Cardholder are to be resolved with the OCCC P-Card Coordinator and may be escalated to the State P-Card Administrator, if needed; • To indicate concurrence, Approving Official shall sign and date the statement and forward the statement and documentation for payment

45. Transaction Information • All transactions must be coded with the correct GL information in Colleague (Datatel); • Must complete at a minimum: • Account Number • Purchase Description • Who • What • When • Where • Why • How

46. Works - Duties • We require every person that has access to the Works Program. • This will help everyone to understand how the system works. This includes accountants & auditors.

47. Think Ahead • What happens if I am gone for a period of time from work? • Your Monthly Transaction Statement must still be turned in at the end of the month and P-Card transactions must be signed off. • The P-card holder is responsible for making sure this is done.

48. Payment • Processing Schedule • P-Card closing period is last business day of the month • Director of Purchasing will send statement deadline email at the first of each month. • Must meet due dates in order to make payment to BOA by required due date. This is VERY important.

49. Payment • OCCC makes one combined payment to the bank each month; • Disputes are included in the payment and will receive a credit in a subsequent statement (if win dispute). • Late payment or non-payment of P-Card purchases will result in OCCC P-Cards being frozen or canceled, and may include additional action to obtain the payment and/or interest accrued

50. Contact Information • Bank of America Customer Service and Lost/Stolen Notification • (888) 449-2273 • Technical Help Desk • (800) 822-5985, option 3 • Sr. Card Account Manager • David Randolph, Vice President • (602) 523-6996 or (602) 540-3124 • David.a.Randolph@baml.com • Works Website • http://www.bankofamerica.com/worksonline/