UTD Purchasing Card Training Program

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					     OSDH Purchasing Card



Purchase Card Administration
    Procurement Service
     What Will You Learn?
   What is a purchasing card? Why use a purchasing
    card?
   Purchasing cycles defined
   Making the choice, P-Card or Requisition?
   Restricted P-Card Purchases
   Mandatory Merchant Preferences
   Steps to email a P-Card Request
   Required documentation
   Things to Remember
   Whom to contact for more information
What Is the Purchasing Card?
   The OSDH purchasing card (p-card) is a MasterCard. The
    p-card gives the Program Staff and the P-Card Unit the
    freedom and authority to make small-dollar and statewide
    contract purchases without involving the
    requisition/purchase order process.

   Types of Cards Available;
    – Standard P-Card (small dollar acquisitions NTE $5,000.00)
    – Statewide Contract P-Card (Unlimited amount, Central Purchasing
      issued statewide contracts)
    – Travel P-Card (only for airfare and/or lodging purchases, card limit
      is $5,000.00 per transaction)
Why Use a Purchasing Card?

 Time & Cost savings
 Speeds up payment to vendors
 Able to purchase goods/services online
 Able to purchase goods/services from
  vendors who will not accept PO’s
 No fees or interest charged to the State
 Program offers annual revenue sharing
          Traditional Buying Cycle
                              Vendor ships goods
 Program Area staff
  prepares purchase            and invoices OSDH
  requisition                 Shipping & Receiving
 Program staff routes
                               logs and notifies
  purchase requisition to      programs items have
  obtain program               shipped
  signatures, funding,        Accounts Payable
  and then to                  receives invoice
  Procurement.                 approval and
 Procurement office
                               reconciles invoice
  solicits bids if needed,     with purchase order
  generates a PO and          Warrant/Check is sent
  faxes to vendor              to vendor
                   Purchasing Card
                    Buying Cycle
   Program area prepares MS Outlook P-Card request
    and forwards email routing template to obtain
    required approvals (program & B&F) and then to P-
    Card Unit
   P-Card Unit CPO determines fair and reasonable
    cost for small dollar acquisitions (NTE $5,000) and
    contacts vendor to process payment.
   Vendor ships goods to OSDH and charges the
    purchasing card
   OSDH cardholder reconciles card once a month and
    Accounting Services makes one single payment
      P-Card or Requisition
 P-Card > Small dollar purchases not exceeding
  $5,000.00
 P-Card > Statewide contract purchases at an
  unlimited dollar amount
 Requisition > Any items listed as a “Restricted
  Purchase”
 Requisition > Leases, reoccurring monthly
  charges, any purchase requiring lengthy
  contractual documents to be approved
* Any non statewide contract P-Card orders
  exceeding $5,000.00 must be submitted through
  the Purchase Order requisitioning process*
         Restricted Purchases!
        (Many will reject at the point of sale)
   Alcoholic Beverages                   Consulting Services
   Ammunition or Weapons                 Flowers
   Entertainment                         Cash Advances
   Postage                               Gasoline
   Reoccurring monthly charges           Leases
   Split Purchasing                      Insurance
   Transactions exceeding card           Perdiem food or beverages
    limits or statutory small dollar
                                          Gift Certificates – Employee
    threshold ($5,000.00)                  recognition purchases made in
   Automotive General                     accordance with CP Act are
    Maintenance                            authorized
    Mandatory Vendor Preferences

   Mandatory Vendor Preference
    – State Use Vendors - State agencies must make p-card purchases from State
      Use vendors
    – Mandatory Statewide Contracts (Statewide P-Card) – State agencies must
      make purchases from mandatory statewide contracts regardless of the
      transaction amount unless a waiver has been issued by the State Purchasing
      Director
    – Oklahoma Correctional Industries (OCI) – State agencies must make
      purchases from OCI when they are deemed lowest and best. A price quote
      from OCI must be submitted as supporting documentation in order to
      support compliance
    – Non-Mandatory statewide Contracts (Statewide P-Card) – It is preferred to
      obtain a price comparison/quotation from the NM SW contract vendor
      when the goods or services you are requesting are on contract.
            Submitting a Standard
               P-Card request
•Total transaction will not exceed $5,000.00
•Goods/Services are not available through SW contract, Office Portal,
or State Use vendor
•Review required documentation in Proc. > P/card Public Folders
•Ensure purchase is not split purchasing

Split Purchasing – dividing the known quantity or failing to
consolidate a known quantity of goods or services with the intent
of and for the purpose of evading the p-card statutory single
transaction limitation of $5,000.00 .
1) Swiping a card more than once during a single purchase to
avoid the $5,000.00 limit
2)Multiple purchasing events for goods & services related to a
single project
3) Splitting a transaction to avoid the competitive bid process
            Submitting a Statewide
               P-Card request

   Statewide Contract p-card can only be utilized for purchase with
    statewide contract (mandatory or non-mandatory) items and
    vendors.
   Go to http://www.dcs.state.ok.us/SW_Contracts.nsf located on the
    Department of Central Services website to verify Statewide
    Contract Information. You should print or save electronically the
    current contract/addendum to verify your goods/services required
    are currently listed on the statewide contract
   Initiate an electronic p/card request and attach required
    documentation. Be sure to include the current statewide contract
    No. and vendor information on your electronic request.
 Required Documentation
 Registrations (Conferences, Trainings, Seminars, etc.) –
  The P-Card can be used for expenses required to host a
  conference, as well as for conference registration and
  training course fee’s. If advance pre-payment is
  required, the purchase must be made in accordance with
  The Office of State Finance procedures below;
      If the vendor requires advance payment for registration and will not accept a
       state purchase order/contract then the p-card may be used for advance
       payment. Supporting transaction documentation on the vendor’s stationary (or
       email) describing this fact must be submitted along with P-Card request
      When the vendor does accept purchase orders and a P-Card request is initiated
       for pre-payment, the following stipulations must be documented on the
       vendor’s stationary (or email)
         1.) result in discount to the State
         2.) allow for substitution between participants
         3.) provide for 100% refund should the event be cancelled
         Required Documentation
   Pre-payment is allowed on P-card for the following types of purchases;

     –   Official testing organizations, higher education, or regulatory boards
     –   Subscriptions to magazines, periodicals, or books. A six week lead time is allowed
         prior to commencement or expiration
     –   Payments to US Government requiring pre-payment
     –   Payments to fair boards or booth rental at shows for advertising
     –   Conferences, trainings, registrations, and meetings

     Agency memberships and subscriptions P-Card requests must have documentation
       clearly stating the membership period. The listing should be listed in the name of
       the agency or the position title of the employee .
    Required Documentation

 Printing, duplicating, photocopying- Docutech priority vendor,
    central printing, state use items, lastly open market vendors
   Light Refreshments – no meat items allowed, document public
    purpose, and require a sign-in sheet to provide documentation of
    open meeting
   Employment Advertising – listing must be reviewed by Office of
    Communication and Human Resource staff. Proof of Publication
    must be obtained.
   Conference Room Rentals – contracts must be reviewed by P/Card
    Administrator
   All IT purchases require prior documented approval from IT
    Services
Things to Remember
     Don’t break purchases up into
      smaller pieces to “get around”
      limit (Split Purchasing)
     Purchases are exempt from state
      of Oklahoma sales tax
     Program Area required approvals
      (Service Chief, Division Director,
      Deputy Commissioner) and
      funding is required on all P-Card
      requests
     Include vendor contact
      information with p-card requests
          Things to Remember



 Attach a P-Card Equipment Sheet for any tangible asset items
  with an individual unit price exceeding $500.00
 Go to Procurement > P/Card > P/Card Requests for more
  information related to OSDH Internal P/Card guidelines
 Go to
  http://www.ok.gov/DCS/Central_Purchasing/P_Card_Inform
  ation/P_Card_Procedures/index.html to review the State of
  Oklahoma P-Card Procedures
 All IT purchases, software and hardware require prior
  documented approval from IT
 Steps to Email P-Card Requests

  Open P/Card Requests Template in Public Folders
 Click “Reply” or “Forward” to open your email to allow
  editing
 Insert text (see sample text) to briefly describe what is
  being requested and total cost
 Select type of P/Card Request (Statewide or Regular) and
  complete vendor details & contract information
Steps to Email P-Card Requests
    Insert Initiator Name & Date and Approver Names into the routing
    template
    Attach any supporting justification as necessary specific to purchase
    type
   Insert standard subject line as follows (Type of Request)(Program
    Area)(Vendor)
    Sample Subject Line > SWP/Card Request/Procurement
    Service/Continental Book
    Forward email to Service Chief/Division Director for initial
    approval
   Routing recipient will be either “SWPCardrequests” or
    “Pcardrequests”
       For More Information:
             Crystal Atherton
             P-Card Administrator
             - crystalfs@health.ok.gov
             - Phone x56757
Chris Mason               Chuck Donati
 P-Card Program           Contract & Acquisition Agent
Compliance Reviewer       charlesd@health.ok.gov
christopherm@health.ok.gov- Phone x56364
- Phone x56338