State of Oklahoma OMES

1. State of OklahomaOMES SWC 200 State P-Card

2. The State of Oklahoma P-Card is a Visa Purchasing Card issued by the Bank of America (BOA), corporate liability card • The BOA P-Card contract is administered by OMES Central Purchasing Division (SW200) • There are no fees associated with the program • Zero liability for unauthorized charges or for lost/stolen cards (Bank must be notified within 24 hours) • The terms of the Statewide Contract allow Higher Education and Political Subdivisions to participate in the program • It is the only credit card authorized by the State of Oklahoma

3. Conditions of Participation • State Entity’s P-Card Procedures must be included in Entity’s Internal Purchasing procedures • Must designate where P-Card transaction documentation is retained • Revised Internal Purchasing Procedures must be submitted to Central Purchasing within six (6) months of completing P-Card implementation • Agencies should update their internal procedures every few years. • P-Card participants must be a full time or permanent part time employee of a State Agency • Cannot be a temporary or contract employee

4. P.O. vs. P-CARD P.O. transaction $91 P-Card transaction $17 Savings $74 • *Based on the 2012 Purchasing Card Benchmark Survey results by RPMG Research Corporation • ** Rounded transaction count; based on average monthly card spend of $1MM and, per the results, of the 2012 NAPCP poll, average transaction size of $359 (based on 2,786 transactions).

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

6. Implementation • To Join the Program: • Submit a request on entity letterhead, signed by the Entity’s Chief Administrative Officer with approval by the board, to the State P-Card Administrator via email or fax and include the Entity’s P-Card Administrator name and contact information • State P-Card Administrator will forward an “Implementation Actions” worksheet advising the next steps • State Entities new to the P-Card program must attend OMES P-Card Voucher Training- Contact Patricia Garcia @ CORE/OMES • Tammy.Howard@omes.ok.gov • (405) 521-4475 fax number The bank will have financial requests in order to be issued the program.

7. Maintenance • Changing the Entity’s P-Card Administrator or Back-up: • Submit a request on entity letterhead, signed by the Entity’s Chief Administrative Officer, to the State P-Card Administrator via email or fax advising of the changes • Please do so in a timely manner so we can get this updated. • Why do we keep a list? We want to know who to contact if we have an announcement or issue. We let the bank know who the P-Card Admin and Back-up are for security reasons.

8. Executive Steering Group The agency decides who has a card and who the approvers are. State Purchasing Director Scott Schlotthauer State P-Card Administrator Tammy Howard Agency P-Card Administrator Agency Approving Officials Agency Approving Officials P-Cardholders P-Cardholders P-Cardholders P-Cardholders

9. Encumbering Funds • Purchase Order • PO should have sufficient encumbrance to cover all transactions prior to making the transaction (Encumbrance Law §62-34.62) • Change Orders to amend the encumbrance may be processed as necessary • A new PO should be issued each new fiscal year • Establish a Purchase Order in PeopleSoft using: • Vendor ID - 0000001101 • Vendor Location – 0002 • Item Number – 1000010910 • Category Number – 84141602 (defaults in with Item Number) • Set Matching to “No Match” (No 11 on header) • Account Number – 601100 • Mark as “Amount Only”, Optional Receiving

10. SAFEGUARDS • Agency appoints cardholders • Training provided • Set limits on each card • Approving official review • Tracks fraud and misuse data

11. Definitions • Cycle – means the period of time between billings; our cycle closing date is the last business day of the month; • Low Dollar Acquisition – means an open market acquisition that is fair and reasonable and does not exceed $5,000.00; • 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;

12. Definitions • 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 • Participants- • Entity P-Card Administrator and Back-ups, Entity Approving • Officials and Back-ups (Must be one level above P-Cardholder) • P-Cardholders (Includes Lodging Only P-Cardholders)

13. Definitions • "Acceptable Electronic Signature Technology" (e-signature) means technology that is capable of creating a signature that is unique to the person using it; is capable of verification, is under the sole control of the person using it, and is linked to the data in such a manner that if the data is changed, the electronic signature is invalidated. • “TXN”- means the transaction number assigned to every transaction in the ISSUING BANK online system. Every transaction is issued this unique number. Using this number in notes to cross reference a transaction to a credit is highly recommended.

14. Employee Agreement • All participants must read and sign the Purchase Card Employee Agreement. • If participant holds multiple roles, separate agreements must be completed for each role. • State Entity P-Card Administrator is responsible for completing and maintaining page 2 of the Agreement. This page includes your P-card limit information. • State Entity P-Card Administrator retains original and provides P-Card participant with a copy of employee agreement. • All P-Card participants must complete initial training conducted by Central Purchasing; • Refresher Training is required every 2 years, it is now available on Skillsoft

15. 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 • Office of Management Enterprise Services (OMES) State Travel Procedures • State Agency Internal Purchasing and P-Card ProceduresProcedures

16. Issuing the P-Card • Once training is completed, the Entity P-Card Administrator orders the card online • P-Card Admin. must provide: • Monthly credit limit; • Single Transaction limit; • MCCGs that are blocked • Once P-Card is ordered, it is • Delivered to the State P-Card Administrator • Checked for accuracy • Training is verified • Picked up by State Entity P-Card Administrator for distribution • Must sign the Employee P-Card Agreement upon receipt of the P-Card (be sure and get your copy)

17. Property of the State • Corporate Liability card; • Upon termination of employment with the state agency, cardholder must surrender the card to the State Entity P-Card Administrator prior to leaving; • State Agency and State P-Card Administrator may also request the cardholder to surrender the card; • Upon surrendering of card; State Entity P-Card Administrator shall document page 2 of the Employee P-Card Agreement and destroy the card; • State Entity P-Card Administrator shall also deactivate the card in Works and delete the User information

18. Card Replacement • Expired Cards • BOA will automatically issue a replacement card prior to expiration • Defective Cards • Entity P-Card Administrator can order replacement cards online • Cut expired, defective, or canceled cards through magnetic strip and forward to Approving Official who forwards it to the Entity P-Card Administrator for documentation and destruction.

19. Card Limits • There is no limit on the amount of a P-Card transaction for the following: • Statewide Contract purchases • Utilities (water, elec, gas, phone) • Interagency Payments • Professional Services as defined in 18 O.S. § 803 • For any other transaction with a state purchase card, the transaction shall not exceed $5,000.00

20. Think before you buy…. #1 State Use Contract (if not selected obtain an exemption from State Use) #2 OCI (if not selected obtain an exemption from OCI) #3 Statewide Mandatory Contract (if not selected obtain an exemption from Central Purchasing) #4 Statewide Non-Mandatory Contract #5 Open market- best price

21. Central Purchasing Procurement Flow

22. Road and Highway Contracts 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 Entity P-Card Administrator if you leave employment • Immediately report any lost, stolen or compromised cards to BOA at (888) 449-2273; Entityis responsible for purchases on lost, stolen or compromised P-Cards until BOA is notified

23. OpenBooks • All transactions are listed on the State of Oklahoma Open Books website, listing • Cardholder’s last name, first initial • Vendor • Amount of transaction

24. Using the Card • 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 SW 690 – Road Oil SW 081 – Asphalt SW 670 – Aggregate

26. Convenience Fee • Merchant must adhere to the following rules : • 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

27. Prohibited Purchases • Split Purchasing; • Entertainment; • Per diem food; • 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 (we do not want them to have the card # on file); • Gift Certificates except for employee recognition in §74-4121

28. Receipts • Itemized Receipt must be obtained for all purchases • Vendor • Date of Purchase • Description • Unit price and quantity • Transaction total • Sign each receipt and include with Statement at end of cycle

29. What happens if I am gone for a period of time from work? • The P-card Admin. can put your card in “suspense” $0.00 while you are away. • Your cardholder statement must still be signed and turned in at the end of the month. • P-card holder is responsible for making sure this is done.

30. Request for Exception • A “Request for Exception” form can be completed requesting to make a purchase contrary to the Procedures • Found on the OMES website at www.OMES.ok.gov, Central Purchasing > P-Card Information > P-Card Forms > Form 030 • Forward to the State P-Card Administrator by email or fax for approval prior to making the purchase (if declined, cardholder will not be able to make the purchase with the P-Card)

31. Construction & Properties (CAP) • Is there a minimum dollar project amount where an agency is not required to go through CAP to enter into a contract and pay by P-Card? • Yes, public construction contracts for less than Five Thousand Dollars ($5,000.00) for minor maintenance or minor repair work may be negotiated with a qualified contractor by the agency.  However, no work shall be started until a written contract is executed and proof of insurance has been provided by the contractor to the awarding public agency.

32. IT & Telecom Purchases • Agencies may purchase items under $5,000 without the prior approval of the ISD Business Segment Director. • The agency is to submit an ePro requisition with an estimated amount of IT P-Card purchases for FY-2014 to ISD Procurement. • Each month, the agency is to print a RPT 170 report (Transaction Detail Data) from Works and download it to an Excel spreadsheet and email it to the OMES help desk.

33. Registration Payments • P-Card purchases are subject to OMES Procedures Manual, Section 319, Special Procedures, Chapter L., Advance Prepayments • Can use P-Card for advance conference registration when: • Discount is provided for paying in advance; • Can substitute a participant; • If event is canceled, cardholder receives a full refund • Registration fees for conferences, meetings, seminars, and similar events whereby in special situations an organization requires preregistration along with payment and by standard policy will not accept a state purchase order/contract in lieu of payment, documentation on the vendor's stationary describing this fact must be sent together with the claim to OMES for consideration of approval or disapproval.

34. 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.

35. Audit • Audit • All transactions are subject to audit by • State Auditor and Inspector • Central Purchasing Division • OMES- Comptrollers Office • Detailed transaction documentation supporting P-Card transactions shall be retained by the State Entity and made available upon request

36. Records Retention • Records include any transaction documentation, such as, statements, receipts, disputes, correspondence, etc.; • Includes documentation in paper or electronic form and must meet: • OMES Information Security Policies, Procedures & Guidelines • Oklahoma Archive Commissions Rules • Must be maintained for seven (7) years; • (BOA does this if loaded in Works) • 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

37. Return item to merchant in manner agreed upon • Credits- If the agency is credited for any items or services that were originally paid for with the purchase card, then the credit MUST be processed through the merchant system. The vendor should not be allowed to maintain a store credit or use the credit toward other invoices. * new to procedures* • 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

38. Multiple Receipts • Multiple Receipts Provided- If the merchant provides two receipts – one with the total amount and one itemized - the P-Cardholder shall attach the itemized receipt to the total amount receipt. • The receipt shall be retained by the P-Cardholder for the monthly reconciliation process. • Note: P-Cardholder may contact the Issuing Bank’s Customer Service at the phone number listed in Appendix A, to obtain a missing or lost receipt. There may be a charge for this service. The State Entity may pass this charge to the P-Cardholder. The charge will appear on the next statement as a bank fee (there will not be a receipt for this fee).

39. Payment Confirmation • Payment Confirmation- A payment confirmation must be obtained for walk-in, internet or payment over the phone purchases. The payment confirmation can be part of the receipt or accompanying the receipt. When the purchase card is used to pay for an invoice, then the supporting documentation must be accompanied by a payment confirmation or the payment confirmation number must be written on the invoice.

40. Receiving Goods and Services • Goods or services received at the time of purchase- The receipt for purchase shall serve as the receiving document. The receipt must contain the P-Cardholder’s signature and date. A carbon copy of the receipt containing the P-Cardholder signature and date meets this requirement • All remaining Transactions- The cardholder’s and approving official’s authorization on the cardholder’s statement indicates that these products and services were received and approved to be paid with the purchase card.

41. Coding Transactions • All transactions must be coded with the correct GL information in Works for downloading to PeopleSoft; • Can be performed by the Cardholder, Manager, or Accountant; • Account codes may default into the transaction, but they must be verified they are correct; • Must complete at a minimum: • Account Code • Fund Type and Class • Dept ID • Business Unit • PO Number and Lines

42. 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 • To indicate concurrence, Approving Official shall sign and date the statement and forward the statement and documentation for payment

43. P-Card AdministratorResponsibility • State Entity P-Card Administrator is responsible for performance or appropriate delegation of the following duties: • Processing and retaining P-Card Program Reports: • Invoice; • Other reports are available in Works and urge P-Card Administrators to utilize these as well • Processing and retaining P-Card Employee Agreements Establishing written P-Card program policies and procedures; Processing authorized requests for P-Cards, maintaining control over active cards, and closing accounts;

44. P-Card AdministratorResponsibility • Establishing and maintaining usage controls and determining cardholder’s need for the P-Card; • Auditing of reports and transactions to identify unauthorized use; • Auditing a random selection of cardholder’s monthly statements for accuracy • Setting Lodging Only P-Cards in “Suspense” status in Works with Credit Limits at $0.00 when not in use • 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

45. Payment Center • Official VISA Site • https://www.centresuite.com/Centre/Public/Logon.aspx?ReturnUrl=%2fcentre%2fDefault.aspx%3fpaymentcenter&paymentcenter • P-Card Administrators Only • Print Company Statement- attached a copy to voucher • Compare to Works Totals • File with Monthly P-Card Records

46. Important • The State makes one combined payment to the bank each month • Late payment or non-payment of P-Card purchases will result in State Entity’s P-Cards being frozen or canceled, and may include additional action to obtain the payment and/or interest accrued • There is tons of information on our website about the program, free training we offer, and deadline schedule

47. 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.

48. LAW Effective 11-1-13 HB1464 will provide OMES Director to approve lodging stay up to 150% of the current standard if it is determined that no lodging is available at the current maximum rate. Request for exception must be turned in, this is for in state travel only. OMES Form 035 Effective 11-1-13 HB1987 clarifies language already stated in Administrative Code 580:16 that Counties can use the P-card Program.

49. Questions and Answers Lisa Bradley405-522-4480lisa.bradley@omes.ok.gov You have questions. We have answers

50. State Travel