TRICARE MANAGEMENT ACTIVITY AURORA USER S GUIDE TO THE GSA

TRICARE MANAGEMENT ACTIVITY-AURORA USER’S GUIDE TO THE GSA SMARTPAY PURCHASE CARD PROGRAM FY05 EDITION 1 TRICARE Management Activity User’s Guide to the GSA SmartPay Purchase Card Program For Cards Issued by TMA-Aurora Table of Contents 1. 2. 3. 4. 5. 6. 7 8. 9. 10. PURPOSE APPLICABILITY BACKGROUND DEFINITIONS AUTHORITY POINTS OF CONTACT TRAINING FOR CARDHOLDERS AND CERTIFYING OFFICIALS SETTING UP AND MAKING CHANGES TO THE PURCHASE CARD ACCOUNTS THRESHOLD LIMITATIONS RESPONSIBILITIES AND PROCEDURES a. Head of the Contracting Activity b. Agency Program Coordinators c. Cardholder d. Designated Approving Official/Certifying Official e. Resource Managers f. Disbursing Officer g. TMA-Aurora Property Book Office h. TMA-Aurora Office of Automation PURCHASE PROCESS VERIFYING PRICE REASONABLENESS MANDATORY SOURCES AUTHORIZED USE RESTRICTED AND UNAUTHORIZED PURCHASES PURCHASE CARD WITH A $25,000 SINGLE PURCHASE LIMIT USING THE PURCHASE CARD AS A PAYMENT VEHICLE MERCHANDISE REBATE, RETURNS, CREDITS and DISPUTES RECONCILIATION AND PAYMENT PROCESS DOD PURCHASE CARD SUSPENSION POLICY FILE RETENTION REVIEWS SUSPECTED ABUSE OR FRAUD LIABILITY OF CARDHOLDERS AND CERTIFYING OFFICIALS LOST OR STOLEN CARD FREQUENTLY ASKED QUESTIONS 4 4 4 4 7 7 8 10 11 11 11 11 13 14 14 14 15 15 16 16 16 16 20 21 22 23 23 23 24 25 26 26 26 11. 12. 13. 14. 15. 16. 17 18. 19. 20. 21. 22. 23. 24. 25. 26. 2 APPENDIX A - CERTIFYING OFFICIAL APPOINTMENT MEMORANDUM APPENDIX B - POINTS OF CONTENT APPENDIX C - PURCHASE CARD CERTIFICATION STATEMENTS APPENDIX D – APC PURCHASE CARD PROGRAM REVIEW CHECKLIST APPENDIX E – CHECKLIST FOR APC REVIEW OF CERTIFYING OFFICIAL 3 1. PURPOSE This User’s Guide establishes and prescribes procedures for use of the GSA SmartPay VISA Purchase Card offered by U.S. Bank for the purchase and payment of supplies and services. This User’s guide supplements instructions from General Service Administration (GSA) and U.S. Bank. Cardholder and Certifying Official program manuals will be available from the US Bank web site http://www.usbank.com/impac/purchase.html. U.S. Bank will mail to each cardholder and Certifying Official a “logon id” to access their web site and download the training manuals. 2. APPLICABILITY This guide is applicable to the government purchase cardholders and Certifying Officials participating in the GSA SmartPay Purchase Card Program. 3. BACKGROUND a. Since 1989, the GSA has been contracting for purchase card services for Federal offices and agencies. The government purchase card is an internationally accepted VISA credit card. The VISA card bears the Great Seal of the United States along with a restricted use designation (“For Official Use Only’). The VISA credit card is accepted at more than 13 million locations worldwide. The Government-wide commercial purchase card program is designed to provide both procurement and non-procurement personnel with a simplified method for purchasing and paying for commercially available supplies and services. The Government-wide commercial purchase card shall be used to purchase and pay for commercial supplies, equipment, and nonpersonal services up to the micro-purchase threshold, currently set at $2,500.00. It can also be used to place a task or delivery orders greater than $2,500.00 if authorized in the basic contract, or make payments against a contract, when the contractor agrees to accept payment by the card. b. The Department of Defense Purchase Card Program Management Office web site http://purchasecard.sarda.army.mil/ provides current information and policies on the program for DoD agencies. 4. DEFINITIONS The following are definitions for terms commonly used in these procedures. Other definitions that are not detailed below are contained in the training manuals provided by U.S. Bank. a. Accountable Officials - The DoD Financial Management Regulations list the following as accountable officials for the purchase card program: the cardholder, officials involved in authorizing payment, and the Certifying Official(s), Resource Managers/Fund Holders, Automated Information System Administrators. Military and civilian personnel (receiving official, cardholder, automated information system administrator) who are designated in writing and provide source information data or service to a certifying official or disbursing officer in support of payment are pecuniary liable for erroneous payments as a result of negligent actions. 4 b. Accountable Property – Property recorded in a formal property management or accounting system. c. Agency Program Coordinator (APC) - An individual designated in writing who is responsible for the overall administration of the TRICARE Management Activity (TMA-Aurora) purchase card program. d. Approving/Certifying Official – Assures proper use of SmartPay purchase card and ensures that purchases are necessary to accomplish the mission. The approving official shall be appointed as the Certifying Official and will be a DoD military member or civilian employee of the Department designated in writing to certify a voucher for payment and attest to the correctness of statements, facts, accounts and amounts appearing on a voucher. A Certifying Official is pecuniarily liable for payments in accordance with 31 U.S.C. 3528. e. Certifying Officer Appointment - Each Certifying Official must be appointed in accordance with the provisions of Volume 5, Chapter 33 of the DoD Financial Management Regulations. A Certifying Official shall be appointed by the issuance of a letter of appointment and the completion of a DD Form 577, Signature Card (appointment package). The appointment letter and the DD Form 577 specifically shall identify the types of payments to be certified (e.g. Statement of Accounts for Purchasing Card). The APC will issue the Certifying Official Appointment. See Appendix A - Certifying Official Appointment Memorandum. f. Cardholder - Individual designated by their TMA-Aurora APC to hold a purchase card to make official buys on behalf of the organization in support of their mission. The card is imprinted with the holder’s name and only that individual is authorized to use the card. The cardholder must be separated from other duties such as resource management, certifying official, and property book officer. g. Card Issuance - The Certifying Official will request purchase card(s) in writing, through the APC. Cards will be mailed directly from the bank to the cardholders. h. Cardholder Statement – The statement of charges provided to a cardholder detailing all of the transactions posted to their account during the billing cycle. i. Declined Transactions – Those transactions where authorization has been refused by issuing bank’s transaction authorization system. j. Delegation of Authority Letter - Issued by TMA-Aurora APC and specifies the extent of the purchase cardholders’ authority in accordance with FAR 1.603-3 and any limitations. k. Disbursing Officer - A military member or civilian employee of a DoD component designated to disburse moneys and render accounts according to the laws and regulations governing the disbursement of public moneys. l. GSA SmartPay Card – A VISA credit card used by cardholders to make purchases 5 (formerly known as IMPAC). m. Javits-Wagner-O’Day (JWOD) - A mandatory source of supply or services for Federal employees. The JWOD program is administered by the Committee for Purchase from People Who Are Blind or Severely Disabled. Two national, independent organizations, National Industries for the Blind (NIB) and National Industries for the Severely Handicapped (NISH), help state and private nonprofit agencies participate in the JWOD Program. n. Merchant – A source from which supplies and services are purchased. o. Merchant Bank – Transmits all sales information to the VISA-based network. p. Merchant Activity Type (MAT) Codes – Codes that define the type of merchant from which the cardholder can make purchases. Merchant category classification codes and Standard Industrial Classification codes have been combined by the U.S. Bank and have been termed Merchant Activity Type (MAT) codes, which describe the type of merchant. q. Pecuniary Liability – Personal financial liability for fiscal irregularities of disbursing and certifying officers and accountable officials to guard against dishonesty, theft, and negligence. r. Prompt Payment Act - Public Law 97-177 (96 Stat 85, 31 U.S.C. 1801). The Prompt Payment Act requires services to pay their monthly billing statements within 23-30 days of receipt (Federal Acquisition Regulation [FAR] Clause 52.232-25 Prompt Payment). An interest penalty shall be paid automatically by the payment office, without request from the bank, if payment is not made by the due date. Interest penalties are charged to the Certifying Official’s account against the single line of account established by the Resource Manager for this purpose. s. Purchase Card Log – A manual or automated log in which the cardholder documents individual transactions and screening for mandatory sources when using the purchase card. Entries in the purchase log may be supported by internal TMA-Aurora documents (i.e., requests for procurement document, email request). The purchase card documentation should provide an audit trail supporting the decision to use the card and any required special approvals that were obtained. At a minimum, the log will contain the date the item or service was ordered, the merchant name, the dollar amount of the transaction, a description of the item or service ordered and an indication on whether or not the item was received. t. Reconciliation – The process by which the cardholder and the Certifying Official review the monthly statements, reconcile against available vendor receipts and purchase card logs and authorize payment of those charges provided on the monthly invoice. u. Requesting Individual - The person(s) requesting purchases be made by a cardholder. v. Required Sources of Supply - The priority of sources is dictated by FAR Part 8 (Required Sources of Supplies and Services, Subpart 8.001 - Priorities for Use of Government Supply). 6 w. Reservation of Funds – A commitment or obligation of funds within the appropriated financial system based upon cardholder or approving official projected needs during a specified time period (usually monthly or quarterly). x. Split Purchase - Intentionally separating a requirement that exceeds a cardholder’s single purchase limit into several buys. y. TMA-Aurora Property Book Officer (PBO) - The approving authority for accountable property who ensures accountability of items. z. TMA-Aurora Office of Automation - Reviewing authority prior to purchase of information technology (hardware, software, services, networking, and maintenance) to ensure acquisition meets current system configuration/control and hardware/software standards. aa. Unauthorized Purchases - Any supplies or services prohibited by GSA or TMA-Aurora. ab. U.S. Bank - U.S. Bank is the financial institution selected by DoD to provide purchase card services for the DoD. ac. Voucher - A voucher, voucher schedule, invoice, bill, or any other document used as a voucher, certified by a Certifying Official based on which a disbursing officer makes a payment (e.g. monthly billing statement). 5. AUTHORITY a. Executive Order 12352 on Federal Procurement Reforms sets forth requirements for federal agencies to establish programs for reducing administrative costs and other burdens that the acquisition functions may impose on the Federal Government and the private sector. b. TMA-Aurora issues delegation of authority letters to cardholders and appointment packages to Certifying Officials authorizing their participation in the purchase card program. 6. POINTS OF CONTACT a. The following people are the points of contact for administering the GSA SmartPay Purchase Card Program for TMA-Aurora. Patricia Harvill TMA-Aurora Agency Program Coordinator (APC) TRICARE Management Activity (TMA-Aurora) AM&S/CMB 16401 East Centretech Parkway Aurora, CO 80111-8043 (303) 676-3428 (703) 676-3554 fax E-mail – Patricia, Harvill@TMA-Aurora.osd.mil 7 Laura Sells TMA-Aurora Alternate Agency Program Coordinator (AAPC) TRICARE Management Activity (TMA-Aurora) AM&S/P&PO 16401 East Centretech Parkway Aurora, CO 80111-8043 (303) 676-3894 (703) 676-3454 fax E-mail – Laura.Sells@TMA-Aurora.osd.mil b. The GSA and required sources of supply POCs are at Appendix B. 7. TRAINING FOR CARDHOLDERS AND CERTIFYING OFFICIALS a. Individuals must attend and complete orientation and training on the purchase card program prior to being delegated purchase authority. All new cardholders and certifying officials of accounts issued by TMA-Aurora are required to take the initial orientation training. Prior to the orientation training the mandatory DoD Purchase Card tutorial must be taken at Defense Acquisition University’s (DAU) website at http://www.dau.mil. Upon completion of the tutorial, a certificate must be printed and forwarded to the TMA-Aurora APC. Orientation training shall be conducted by TMA-Aurora’s APC and cover the following: • • • • • Administrative procedures for participation in the purchase card program. Cardholder and Certifying Official duties and responsibilities Cardholder guide developed by US Bank Approving/designated Certifying Official guide developed by US Bank Funding, billing, payment and record keeping procedures b This training will allow cardholders to perform duties effectively and proficiently in the following areas: • Competition and price reasonableness • Documentation requirements • Prohibition against splitting requirements • Required sources of supplies and services and order of precedence of sources as prescribed in FAR Part 8 and Defense Acquisition Regulation Supplement (DFARS) Part 208. (To view the latest electronic version of the FAR and DFARS go to http://farsite.hill.af.mil) • Rotation of sources to maintain competition • Property accountability One way to gain competencies in these areas is to take the Simplified Acquisition course offered on-line by the Defense Acquisition University (DAU). Go to the DAU web site to register for the on-line course at http://www.acq.osd.mil/dau/train.html. 8 c. Cardholders shall receive procurement ethics training during TMA-Aurora’s mandatory cardholder, Certifying Official orientation, and training class. Annual procurement ethics training is mandatory for all cardholders and Certifying Officials. d. Every two years, cardholders must renew their purchase card. In conjunction with this renewal, cardholders must complete refresher training from TMA-Aurora on the purchase card program. This training will provide cardholders with the latest changes in the purchase card program policies and procedures. Upon completion of the refresher training, the APC will approve the card for reissuance to the cardholder. No purchase cards will be reissued without written approval of the APC. 8. SETTING UP AND MAKING CHANGES TO THE PURCHASE CARD ACCOUNTS a. To begin participating in the TMA-Aurora Purchase Card Program, the activity is required to submit the following to the APC at TMA-Aurora Acquisition Management & Support (AM&S), for each Cardholder, Alternate Cardholder, and Certifying Official request. (1) Primary and Alternate Certifying Officials must be appointed in writing and will be financially responsible for payment of bills for TMA-Aurora. The primary and alternate certifying officials must have completed the mandatory training within the last two years. (2) To establish New Accounts, submit an email memorandum to the APC that includes a brief summary of qualifications considered for the new cardholder (e.g., experience in purchasing, formalized or other procurement or acquisition training). For both the cardholder(s) and Certifying Official(s), include the full names, complete office addresses, telephone numbers, fax numbers, email addresses, and fund cite. Upon receipt of the memorandum to add the new cardholder or certifying official to an existing account, the APC will process applications for the cardholder or certifying official and forward to the bank. The bank will process the application and mail the purchase card to the cardholder. i. The certifying official will receive an appointment package from the TMA-Aurora APC that needs to be completed and returned. The original will be submitted to DFAS and a copy to the APC. Cardholders will receive delegation of authority memoranda. It is extremely important that the original of the certifying official appointment package be submitted to DFAS as soon as received in order to avoid payment delays. DFAS will not process payment requests without receipt of the original appointment package. ii. In addition, the cardholder(s) and the Certifying Official(s) are required to understand the internal procedures, regulations, and policy regarding the TMA-Aurora purchase card program. (3) For any changes to existing accounts, the individual is required to submit an e-mail memorandum to the APC at TMA-Aurora, AM&S that includes the following required information: 9 Full name(s) of Cardholder(s) Full name of the Certifying Official(s) Managing account number Complete mailing address Office telephone number(s) FAX number(s) E-mail address(s) Single purchase dollar limit and monthly office limit requested Change/addition to existing account b. TMA-Aurora AM&S Processing of Approved Purchase Card Application Package. (1) Upon receipt of the individual's request, the APC will complete the review of the purchase card application. Delegation letters to cardholders and appointment letters to Certifying Officials will be issued by the APC. Attached to the Certifying Official's appointment letter is a DD Form 577, Signature Card. The Certifying Official will acknowledge the letter, complete the DD Form 577 and forward the originals to the APC. (2) AM&S will issue a delivery order(s) against the current GSA contract with US Bank. A Certifying Official will coordinate funding of single purchase limits, monthly spending limits, and Billing Office limits with the Resource Manager. The Resource Manager's signature is required on the DD Form 1262, Funding Authorization Document. The Resource Manager will establish bulk funding for the purchase card and ensure the proper use of appropriated funds. The APC will submit the completed forms to US Bank. (3) US Bank will process the application(s) and the delivery order(s) and issue the purchase card directly to the cardholder. US Bank will mail the purchase card within 10 days of receipt of the delivery order(s). (4) Upon receipt of the purchase card, cardholders are to call US Bank at 1-888-9946722 to activate the account. 9. THRESHOLD LIMITATIONS Use of the purchase card is subject to the following purchase limits: a. Cardholder single purchase limit. This limit restricts the dollar amount of any single purchase made by a cardholder. It may be comprised of single or multiple items purchased at one time from a single supplier. b. Cardholder monthly spending limit. The maximum dollar amount authorized for a cardholder within the 30 day billing cycle. It is reset automatically the day after the end of the billing cycle and not carried forward. If your monthly limit was $5,000 and you only spent $4,800— your monthly limit would still be $5,000 the following month. 10 c. Billing office limit. This limit is the maximum dollar amount available for all cardholders within a billing group to spend for purchases during the 30 day billing cycle. This limit is the cumulative total of the cardholder’s monthly limit. 10. RESPONSIBILITIES AND PROCEDURES a. Head of the Contracting Activity (HCA). The HCA is responsible for designating, in writing, the APC. b. Agency Program Coordinator. The APC is responsible for contract administration within the limits of delegated authority. The APC has overall responsibility for the Government purchase card program within TMA-Aurora. The APC’s primary duties include: • Overall implementation and administration of the program. • Serve as primary contact for cardholders and Certifying Officials and as a liaison between the Certifying Official, Disbursing Official, and the bank. • Establish and maintain program-wide communication. Develop and distribute TMAAurora program policies/procedures. • Determine the necessity and the purpose of each card. • Set up new purchase card accounts. Verifying mailing addresses, spending controls, reporting, billing level, accounting code, and other relevant data. • Provide cardholder and Certifying Official training. • Prepare and issue delegation letters to cardholders in accordance with FAR 1.603-3. • Issue letters of appointment to the Certifying Officials and process the DD 577, Signature Card. • Approve single purchase and monthly spending limits and which, if any, merchant categories should be blocked. • Assist in resolving billing disputes, unauthorized card use, card loss, or theft. • Suspend and/or cancel purchase cards. • Issuance of task orders against U.S. Bank GSA contract and contract administration functions of the task orders, within their limits of delegated authority in accordance with FAR 1.603-3. • Conduct annual compliance review of the program, the Certifying Official and cardholders. Review previous findings to ensure corrective actions was taken and repeated deficiencies, if any, are noted during the current review. c. Cardholder. An individual designated by an agency to be issued a government purchase card. The purchase card is imprinted with the cardholder’s name. Only the individual whose name is imprinted on the card may use the card. A cardholder must be separate from other duties such as resource management, Certifying Official, and property book officer. The cardholder’s primary duties include: • Activate card within ten (10) calendar days of receipt. • Maintain card security and safeguard card and card number. 11 • Adhere to standards of ethics. • Conduct mandatory screening from required sources (such as NIB/NISH) for availability prior to making a buy with a commercial supplier. • Ensure funds are available to pay for the purchase prior to making the buy. • Ensure that the SMARTPay VISA credit card is accepted. • Use the appropriate funds for the items being purchased. “Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law.” 13 U.S.C. Sec. 1301 (a). • Use the card to purchase and/or pay for official supplies and services in support of agency’s mission. Assure that no items are bought for personal use. • Rotate purchases equitably among suppliers and verify price reasonableness. • Obtain a fair and reasonable price. • Obtain a receipt at the point of purchase and verify for accuracy before signing. • Enter and maintain purchases and payments in a purchase card log and keep a running balance of available funds. At a minimum, the log will include: Date request received Requestor and telephone number Description of services and supplies Evidence of required approvals Vendor name, Point of Contact, address and telephone Business size, applies to purchases above the $2,500 threshold Quantity; Unit Price; Total Amount Date received supplies or services, Funds Balance and Billed Date Keep credit card receipts/invoices to verify charges on monthly transactions from the transaction log. • Resolve billing discrepancies with suppliers — if discrepancies cannot be resolved with the supplier, then complete a cardholder’s statement of questioned item form and fax to U.S. Bank within 60 days of receipt of the invoice on which the charge first appeared. U.S. Bank will not assist the cardholder in resolving untimely disputes or disputes over taxes and shipping and handling charges. • Coordinate with PBO to assure that all items requiring tracking, to be recorded on the property book or a hand receipt • Retain account files for three years • Report lost, stolen, or compromised cards immediately to the bank. Notify the Certifying Official within one business day. Certifying Officials are required to submit a report to the APC within one (1) business day. • If a cardholder receives a declined transaction (a transaction that U.S. Bank cannot authorize), U.S. Bank should be contacted to determine the reason for the decline. • If a cardholder is leaving the TMA-Aurora, or has lost the privilege of using the card, the card must be returned to the APC for proper disposal. 12 d. Designated Approving Official/Certifying Official (1) In accordance with DoD Financial Management Regulations Vol. 5, Chapter 33, there is a requirement for DoD to have Certifying Officials. The regulations state that "For purposes of the purchase card program the designated approving official shall be appointed as the certifying official." "Sound financial management and internal control practices dictate that such certifying officer be independent and organizationally separate from disbursing officer, whenever practical." (2) A Certifying Official should be a supervisor and have the following minimum qualifications: (1) knowledge of the subject matter, (2) background or experience in the preparation of a voucher for payment, (3) knowledge of appropriations and other funds and accounting classifications, and (4) knowledge of payment process (e.g. availability of funds and location of designated paying and accounting offices). (3) The Certifying Official is the individual designated to receive, review, and certify the official billing statement for the disbursing office to make payment to the bank. For the purpose of the purchase card program, the Certifying Official’s primary duties include: • Adhere to standards of ethics. • Keep a copy of the original delivery order establishing the account in the file. • In coordination with Resource Manager, establish monthly purchase limits for the account, each cardholder and amount per transaction for each cardholder. • Establishing controls to mitigate waste, fraud and abuse to include: (1) separation of duties covering all processes from requirements generation to receipt of items; (2) any approvals required prior to purchase particularly for IT hardware and software; (3) property control procedures covering which items will be on the property book and which items will be on hand receipt; (4) monthly checking of billing to insure buys are appropriate for mission; and (5) planning for annual review of accounts. • Prior to cessation of duties, the Certifying Official shall notify the APC of the name of the replacement Certifying Official. • Ensure that a prospective cardholder completes required training before submitting a request to add a new cardholder to the account. Certifying officials are to send a memorandum to the APC to add or delete cardholders under their account. • Receive official billing statement. • Date stamp receipt of the consolidated monthly billing statement for prompt payment. Review monthly cardholder statements which has a consolidated summary of all transactions made by the cardholders. • Review reconciled cardholder statements of accounts to ensure that receipts and documentation are in order. • Reconcile and certify for full payment the bank’s consolidated monthly Statement of Account against cardholder’s purchase card log and Statement of Account. Forward the monthly billing statement to the disbursing office within 10 calendar days of receipt 13 • Maintain file copies of reconciled billing statements, by month, along with cardholder’s original Statement of Accounts and supporting documents for three years. • Resolve delinquencies with the disbursing office and the bank. • Maintains original cardholder statements of account and receipts/sales slips. • Certifying officials are required to submit a report on lost, stolen, or compromised cards to the APC within one (1) business day. e. Resource Manager An officer or employee of a Federal Department, agency or other individual responsible for managing appropriated funds according to laws and regulation government Federal appropriations. • Coordinate funding and spending limits with Certifying Official. • Establish funds for each cardholder in advance of purchases. Fund purchase cards using bulk funding. • Ensure the obligation document is forwarded to the appropriate payment office. • Assign a single line of accounting for each master account to pay for purchases made on cardholder’s accounts. • Assign a single line of accounting to each master account to pay for interest penalties, if any, incurred on delinquent accounts. f. Disbursing Officer An officer or employee of a Federal department, agency or other individual designated to disburse moneys and render accounts according to laws and regulations governing the disbursement of public moneys. • Receive an annotated and certified copy of the voucher from the Certifying Official. (NOTE: Cardholder' Statements of Account (SAOs), signed by both the cardholder and the Certifying Official, and supporting documentation will be maintained by cardholder or the Certifying Official). • Disburse money only as provided by monthly billing statements duly certified by Certifying Official. • Examine monthly billing statements to determine if they are in the proper form, certified and approved by an authorized Certifying Official, computed correctly on the facts certified, and except for the correctness of computations on a monthly voucher are accountable for disbursing money only as provided by a certified billing statement and performing the voucher examination. • Returning, to the Certifying Official, any voucher that is not in the proper form, is incomplete or is not properly certified. g. The TMA-Aurora Property Book Office (PBO). • Approving authority prior to purchase of accountable property. • Monitor purchase of nonexpendable items. 14 • Ensures inventory accountability is performed. h. The TMA-Aurora Office of Automation. • Reviewing authority prior to purchase of information technology (hardware, software, services, networking, and maintenance) to ensure acquisition meets current system configuration/control and hardware/software standards. 11. PURCHASE PROCESS a. All purchases, whether over the counter, by fax, telephone or internet, require documentation for proof of purchase (e.g., register tape, credit card slip, invoice, etc). The purchase card shall be used for over-the-counter, fax, telephone or internet buys that involve a single delivery and payment. b. General overview of the purchase card process for SmartPay purchases: • Identify the requirement and ensure funds are available. The requesting individual must provide clear and accurate descriptions of requirements and obtain internal approvals prior to the purchase (e.g. approving authority prior to purchase of accountable property. • Check mandatory sources to satisfy requirement • Determine if total purchase amount is within purchase limits -if no, return to requester to submit to contracting to issue a purchase order -if yes, proceed to next step • Contact supplier and obtaining current pricing information - remember to maximize competition by ROTATING suppliers • Verify price reasonableness • Place order with supplier -give supplier your purchase card number, expiration date, and tax exempt number (if required by the supplier) -verify supplier will ship Free On Board (FOB) destination -notify supplier purchase is exempt from state and local sales tax -notify supplier not to swipe the charge card UNTIL the goods are shipped or services performed • Instruct supplier to include the following on the shipping document or packing slip: -cardholder full name and office symbol; -building number, room number, street address, city and state; -cardholder’s telephone number; and -mark the slip “credit card buy” • DO NOT PLACE OR INCLUDE THE PURCHASE CARD ACCOUNT NUMBER ON THE OUTSIDE PACKING SLIP — protect your account number • Certify that the quantity and quality of the items or services furnished match the order you placed with the supplier before signing the credit slip • Verify receipt of items being billed • Documentation should be held until the monthly billing statement is received and 15 reconciled • Attach the original receipts and documentation to the reconciled billing statement and forward to the Certifying Official within 5 working days • A copy of the receipts and documentation with the billing statement should be filed and kept by the cardholder for a period of three years 12. VERIFYING PRICE REASONABLENESS In accordance with FAR 13.202(a) (2), micro-purchases (purchases $2,500 or less) may be awarded without soliciting competitive quotations if the price is considered reasonable. Cardholders should take advantage of the many automated market research tools available today. The objective of GSA Advantage is to allow cardholders to easily find, compare, and order products on-line. Cardholders can order directly from your desktop or browse to compare prices and verify price reasonableness. Cardholders must rotate purchases equitably among suppliers. 13. MANDATORY SOURCES a. FAR 8.002 lists mandatory sources that must be considered before using an open market source. Most commonly these would include Federal Prison Industries (UNICOR) and Purchases from People Who Are Blind or Severely Handicapped (NIB/NISH). b. Javits-Wagner-O’Day (JWOD) Program. Purchases made from NIB/NISH are part of the Javits-Wagner-O’Day (JWOD) Program. The Committee maintains a Procurement List (PL) of all supplies and services required to be purchased from JWOD participating nonprofit agencies. The PL may be accessed at http://www.jwod.gov/procurementlist. TMA-Aurora shall obtain supplies and services on the PL from the central non-profit agency or its designated JWOD participating non-profit agencies except that supplies identified on the PL as available form DLA, GSA, or VA supply distribution facilities shall be obtained through DLA, GSA, or VA procedures. 14. AUTHORIZED USE Without exception, the card shall only be used to purchase and/or pay for supplies and services for official use in support of TMA-Aurora’s mission, such as office supplies and maintenance and repair services,. The purchase card is the preferred payment method for all goods and services under $2,500. It shall also be used as the payment vehicle for other contract documents such as agreements, purchase orders, delivery orders, and contracts. 15. RESTRICTED AND UNAUTHORIZED PURCHASES Only those items that can be acquired with appropriated funds can be purchased using the purchase card. Consult your fiscal/ethics expert prior to making a non-routine purchases since they may be unauthorized. The cardholder may only purchase those goods and services supporting the agency mission with available funds at a fair and reasonable price. Cardholders must properly document their purchases and this documentation must be in writing and in advance of the purchase. The following list of purchases is particularly troublesome and the 16 General Rule must be followed unless an exception is provided in this Guide. a. Food: General Rule: Appropriated funds are not available to pay for food or refreshments. Limited Exceptions: An event may qualify for appropriated funding if certain requirements are satisfied and documented. The justification for use of the credit card under one of these exceptions must be documented in a Memorandum for the Record (MFR) and signed by an Office Chief.?? 1. Light Refreshments: TMA-Aurora may use its purchase card to purchase light refreshments on breaks at Government sponsored conferences only for Government employees on travel orders (TDY status). The purchase card may not be use to purchase refreshments for non-Government employees, or for Government employees who are not on travel orders. 2. Meals at Formal Meetings or Conferences: TMA-Aurora may provide a meal at a formal meeting or conference when: 1) the meal would be incidental to the meeting; 2) attendance by employees is necessary to full participation in the conference or meeting; and 3) employees may not take meals elsewhere without being absent from the essential part of the meeting. This exception is limited to formal meetings or conferences, typically organized or sponsored externally, which cover topical matter of general interest to both Government and non-Government employees. This exception does not apply to purely internal business meetings. 3. Training: TMA-Aurora may serve refreshments/meals at Training where the food is necessary to achieve the objectives of the training program. The food must be incidental to the training session, i.e., do not conduct training for the purpose of serving a meal. Actual training must be conducted, not just discussions or open forums relating to problems and day-to-day operations of TMA-Aurora. Attendees would fail to complete the training if they miss the meal. 4. TMA-Aurora may serve light refreshments at Award Ceremonies honoring individuals recognized under the Civilian Employee’s Incentive Award Program. Cardholders are prohibited from using purchase cards for refreshments at events such as retirement, promotion, and longevity ceremonies. 5. Formal Ethnic Awareness Program where food samples relating to the particular ethnicity are served as part of an education program. b. Personal Purchases: General Rule: Cardholders are prohibited from purchasing items for personal convenience/not for official Government use with the purchase card. This includes all appliances such as refrigerators, microwaves, coffee pots, handheld/portable electronic devices, luggage/briefcases and seasonal decorations. 17 c. Bottled Water Services: General Rule: Cardholders are prohibited from purchasing bottled water service with their purchase card. Limited Exception: If TMA-Aurora has a report from an outside water-testing agency determining that the drinking water is harmful if consumed. d. Postage: Cardholders are prohibited from purchasing postage stamps with their purchase card. e. Trophies, Awards, Plaques, and Mementos as give away items for hail and farewells or other occasions: General Rule: Cardholders are prohibited from purchasing these items with their purchase card. Limited Exception: The purchase of these items for reasonable enhancement of official employee recognition programs under the Civilian Employee’s Incentive Program, or by recruiter (in limited circumstances in accordance with regulation) may be authorized. f. Cash Advances: Cardholders are prohibited from using their purchase card to obtain cash advances. g. Travel: General Rule: Cardholders are prohibited from using the purchase card to pay for travel and travel-related expenses. Limited Exception: Cardholders may use their purchase cards to purchase metro fare cards for use in official Government Travel. h. Vehicle Expenses: General Rule: Cardholders are prohibited from using their purchase cards for vehicle expenses including repairs, maintenance, gas, oil, car washes, accessories, tinted windows, etc. Limited Exceptions: The purchase card may be used to purchase a pass for tolls for official Government vehicles, registration fees and license plates. i. Motor Vehicle, Long-Term Rental or Lease: Cardholders are prohibited from entering into contracts for rental/lease of motor vehicles. 18 j. Explosive, Munitions, Firearms, Toxins: Cardholders are not authorized to purchase these items with their purchase card. k. Classified and Sensitive Items: Cardholders are not authorized to purchase these items with their purchase card. l. Buildings and/or Land, Long-Term Rental or Lease: Cardholders are prohibited from entering into contracts for rental or lease of buildings and/or land for more than 30 days. m. Equipment Rental or Lease: Cardholders are prohibited from using purchase cards to enter into long-term leases for equipment, i.e., six (6) or more months. n. Organization Day Items (t-shirts, baseball caps, utensils, etc): Cardholders are not authorized to purchase goods that are not necessary in the performance of official duties. o. Business Cards: General Rule: Cardholders are not authorized to purchase business cards. Limited Exception: A DoD memorandum dated 28 August 1998 authorizes the printing of business cards using existing software and agency purchase card stock for use in connection with official activities. That policy was further amended 15 July 1999 to add that purchase of business cards from The Lighthouse for the Blind, a Javits-Wagner-O’Day participating nonprofit agency, may be made when addressees determine that costs are equivalent or less to purchase from that source rather than to produce them on a personal computer. p. Purchases from Government Employees or Businesses Owned or Controlled by Government Employees: Purchases from business organizations either owned or substantially controlled by Government employees, either military or civilian, are prohibited. q. Ergonomic Related and Low-vision Equipment: Before using TMA-Aurora funds for ergonomic or low-vision equipment it is recommended that eh Computer/Electronic Accommodations Program (CAP) office be first considered as them may approve and fund the purchase. CAP is a centrally funded program that provides ergonomic and low-vision equipment for all DoD employees. The website is 19 http://www.tricare.osd.mil/cap. r. Membership Fees for Professional Associations: Cardholders are not authorized to purchase membership fees for ANY professional association. s. Furniture: Cardholders are authorized to use the purchase card to purchase furniture. For purchases of $2,500 or less, the cardholders are not required to obtain a waiver from UNICOR. For purchases over $2,500 cardholders must conduct market research to determine what products are available from the private sector and will best meet the Government’s needs in terms of price, quality, and time of delivery. If UNICOR offers comparable products, cardholders must purchase from UNICOR or obtain a waiver. If the cardholder determines that UNICOR does not have products that are comparable to private sector products in terms of price, quality, or time of delivery, cardholders may purchase products using other proper means (e.g. GSA FSS for purchases up to $25,000 . Cardholders must permit UNICOR to submit offers for products over $2,500 and consider any timely offers UNICOR makes to the request for quote. Document the file showing the market research conducted and determination of comparability. u. Printing Services: FAR 8.802 states “Government printing must be done by or through the Government Printing Officer (GPO).” v. Advanced Purchases: General Rule: Advanced purchases generally are not permitted. Delivery must be received prior to payment of the invoice. Limited Exception: Advance payment of tuition and other expenses is authorized either when the training facility renders or refuses to render a billing, or advance payment is indicated in Section G on the DD Form 1556. The purchase log will identify the training facility by name and address and indicate the amount paid to the facility for the advance of tuition. 16. PURCHASE CARD WITH A $25,000 SINGLE PURCHASE LIMIT: a. Selected cardholders are eligible to receive cards authorizing them to purchase goods and services under existing contracts up to $25,000. b. Before the card can be used, the Certifying Official must submit a memorandum requesting an increase from the standard $2,500 purchase card limit. Attached to the memorandum must be a copy of a training certificate indicating that the cardholder has completed one of the following: 20 1) For non-acquisition personnel one training class, CON 327, “Simplified Acquisition Procedures” (or equivalent) is required. There is no pre-requisite for this class which is offered on-line. 2) For acquisition personnel in the 1102 series a copy of the training certificate showing successful completion of “Contracting 101” (Basics of Contracting), or certification in Contracting is sufficient. 17. USING THE PURCHASE CARD AS A PAYMENT VEHICLE a. Purchase Card Program Reengineering Implementation Memorandum #6: Streamlined Payment Practices, directed agencies to increase use of the purchase card as the method of payment by 1 October 1998 for: all training requests using the DD Form 1556 and valued at or below $25,000 all medical services and Nonappropriated Fund payments valued at or below $2,500 when determined to be appropriate and cost effective payment of all goods and services valued at or below $2,500 purchased using standard contracting instruments such as: Standard Form 1449 or DD Form 1155 Contracts, purchase orders, blanket purchase agreements, and orders under Task and delivery order contracts; Goods and services available on Federal Supply Schedules; and As long as the procedures set forth in FAR Part 8 are followed when placing orders, further competition is not required. However, it is the policy of the DoD Purchase Card Joint Management Program Office that priority be given to small business sources of supplies and services to the maximum extent possible. b. When the government purchase card is to be used to pay for a purchase off a GSA Schedule, established IDIQ contract, Blanket Purchase Agreement (BPA), or a purchase order, the statement “Payment to be made by purchase card” shall be inserted in the appropriate block of the contract form. Refer to FAR 32.1110 for instructions for use of the appropriate clause when payment under a written contract will be made through the use of the purchase card. Do not include specific information from the purchase card on the purchase order or contract form. c. Orders can be placed against a GSA Schedule. If necessary due to time constraints, schedule orders may be placed orally if the contract provides for oral orders, the contractor agrees to furnish a delivery ticket for each shipment under the order, and invoicing procedures were agreed upon. If oral orders are placed, they must be followed in writing within five (5) working days. Schedule contractors are required to accept the Government purchase card for all orders at or below the micro-purchase threshold of $2,500. Federal Supply Schedules can be accessed through the Internet at the following sites: Federal Supply Schedule: http://www.fss.gsa.gov/schedules 21 GSA Advantage!: http://www.gsaadvantage.gov. 18. MERCHANDISE REBATES, RETURNS, CREDITS AND DISPUTES a. Cardholders should take advantage of any savings such as rebates, including incentives, rewards and prizes and any product or volume discounts offered. All reimbursements, rebates or discounts, if due or received by check, must be make payable or endorsed to the U.S. Government, not to the cardholder. Rebates or similar payments that are in the form of checks shall be forwarded to TMA-Aurora’s resource manager for deposit with the Treasury. The cardholder’s records should reflect specific details of all such transactions. This activity should not be taken in lieu of purchasing from mandatory sources regardless of the potential savings from outside sources. b. Any credit due should be documented in the cardholder’s records by indicating merchandise returned and date of return. Merchandise returns/credits are to be applied back to the purchase card on which the purchase was originally made. Under no circumstances is a cardholder permitted to solicit or accept merchandise store credits or cash for returned goods and services bought with the Government purchase card. The cardholders Statement of Account (SOA) must be monitored for the proper amount of credit from the vendor. c. Assure that rebates are credited timely to the account. Refunds provided by U.S. Bank are based on sales volume and payment timeliness. Rebates will be received for accounts that are paid before the due date (less than 30 days from the day the statement was received). Rebates are issued each quarter on the cardholder’s statements. In addition, a combined total of all the cardholder rebates is shown on the certifying official’s statement. The certifying official uses the rebate as a payment against the total invoice amount. d. All cardholders have the right and responsibility to process disputes when they have been unable to resolve an issue with a supplier, such as a credit for returned items, excessive charges, invalid charges, etc. While the federal government is tax exempt in most cases, sales tax is not a disputable item. If sales tax should not have been charged, the cardholder must obtain a credit for the supplier. Failure of the cardholder to act promptly to protect the Government’s interest can result in administrative and/or disciplinary action. Credit card users must promptly notify suppliers of disputes or damaged goods and return them and ensure that credit is received for them. Cardholders must be sure to obtain a credit voucher or some proof of returning the item(s) such as a receipt or certified mailing voucher, with documentation of the surrounding circumstances. The cardholder must first in good faith negotiate with the contractor on any disputes that may arise to resolve the issue. Only if the supplier is unwilling to provide a refund or credit should you go to your Resource Manager and Certifying Official for assistance, if the situation cannot be resolved through their assistance, then contact the APC. In addition to the above, the card holder will be responsible for completing the bank form "Cardholders Statement of Questioned Item (CSQI)" and forwarding to US Bank as well as maintaining a copy of the form for the file. e. For disputed transactions and or errors in billing: 22 -Ensure bills are paid in full in accordance with delayed dispute procedures -Complete the "Cardholder Statement of Questioned Item (CSQI)" and forward to the bank for resolution -Monitor the disputed item's progress until resolved 19. RECONCILIATION AND PAYMENT PROCESS a. Cardholders. Each month the cardholder will receive a Statement of Account (SOA) from the bank. Cardholders will reconcile the Statement of Account and forward the original Statement of Account with the transaction log and supporting documents to the Certifying Official within 5 calendar days of receipt. The cardholder as an accountable official shall provide the certification in Appendix C when submitting the documents described to the Certifying Official. b. Certifying Officials. Each month the Certifying Official will receive a consolidated billing statement from the bank and cardholders’ reconciled SOA, purchase log, and any supporting documents. The Certifying Official will reconcile the consolidated billing statement using their cardholders’ reconciled Statement of Account and forward for payment processing to the paying office within 10 calendar days of receipt. The Certifying Official as an accountable official shall provide the certification in Appendix C when submitting the documents described to the Disbursing Officer. 20. DOD PURCHASE CARD SUSPENSION POLICY DoD's policy is to pay its invoices on a timely basis. The bank will automatically suspend delinquent accounts when they go 60 days past due (90 days past the billing date). Prior to suspending an account, the bank will notify the Certifying Official and the TMA-AURORA APC of the upcoming suspension. When a Certifying Official’s account is suspended, none of his/her cardholders may use their cards. The delinquent account will remain in suspended status until it is brought up to date with all the outstanding invoices. Once payment has been made in full, the accounts will automatically be reinstated. Accounts that are suspended more than twice in a twelve month period will be automatically cancelled by the bank and subject to a $25 reinstatement fee per cardholder under the master account. 21. FILE RETENTION a. FAR Part 4.805 states signed originals of small purchases and modifications will be retained for three years after final payment. The Certifying Official will maintain account files for three years. Account files shall include: • — — — Copy of the monthly consolidated billing statement with supporting documentation cardholders original monthly Statement of Account purchase authorization and waivers copy of the cardholder’s purchase log 23 — original credit card receipts and sales slips b. A copy of the cardholder’s monthly Statement of Account plus supporting documentation will be retained by the cardholders for three years. Files shall be maintained in accordance with guidelines set forth in regulation. Files shall be closed at the end of each fiscal year. 22. REVIEWS There are three types of reviews performed on the purchase card program: 1) Certifying Official monthly reviews of cardholder accounts, 2) APC reviews of Certifying Official records and cardholders, and 3) Acquisition Compliance Review conducted by the AM&S Policy and Pricing Office. a. Certifying Official Review. Every Certifying Official is to assure monthly billing statements are correct. The TMA-Aurora APC will monitor Certifying Officials’ accounts on an annual basis. The TMA-Aurora APC will assure that Certifying Official is in fact adequately monitoring their cardholder accounts. On a macro basis, TMA-Aurora wants to verify that agency procedures, controls, and operations are adequate. On a micro basis, the TMA-Aurora APC may examine individual records of cardholders on a sampling basis. The Certifying Official will generally receive a positive report if it adheres to the following: • Written guidance to cardholders advising of office limits and when and how funding will be managed for each purchase card account. • Adequate separation of duties of cardholders and person(s) receiving the item(s). • Records in good shape and easy to track billings with purchases. • Documentation in file explaining any unusual situations, such as a buy, which appears to have been a “split” but was not. • Active consideration of priority sources consistent with Part 8 of the FAR. • Rotation of suppliers to promote competition. Newly appointed cardholders shall be monitored in the first three months to ensure they are effectively performing their duties. Reviews may be extended to once every 18 months for cardholders who demonstrate exceptional performance and understanding of their duties. The GUIDE TO CONDUCTING CARDHOLDER REVIEWS (see Appendix D) or a guide substantially the same will be used to accomplish and document the findings. b. APC review of Cardholders and Certifying Official records. The APC shall conduct annual physical reviews of cardholders and Certifying Officials' accounts using the Checklists at Appendices D and E. Findings shall be documented in writing and forwarded to the Certifying Official for corrective action. Findings shall be maintained on file for three year. c. ACR review of Program. As deemed necessary by the HCA the Policy and Pricing Office (P&PO) will conduct a review of the purchase card program. Findings shall be documented in accordance with TAP 54-02, “Acquisition Compliance Program.” 24 23. SUSPECTED ABUSE OR FRAUD Each Government employee must stop the needless loss of taxpayer money by preventing fraud as well as the conditions that lead to it. An important factor to consider is that fraud is sometimes committed by or with the help of DoD employees. There have been instances of DoD employees creating or participating in the ownership of outside businesses for the purposes of committing fraud or abuse of the purchase card through their ability to make buys with the purchase card. Please report all suspected purchase card abuses or fraud to the DOD Hotline at toll free number 1-400-424-9098. The following are potential problems and indicators of possible fraud: • • • • • • • • • • • • Repetitive buys to the same supplier. Lack of documentation to make the purchase. Purchase cards and account numbers are not safeguarded. Someone other that the cardholder using the card. Inadequate oversight by Certifying Officials and TMA-Aurora APC. Unauthorized purchases. Payments made for items not received. Split purchases to avoid purchase card limitations. Lack of accounting of nonexpendable, pilferable or sensitive items. Forwarding billing statements late to the finance office and incurring interest penalties. Cardholders constantly disputing purchases. Cardholders SOA approved by someone other than the Certifying Official. • Cardholders returning merchandise to suppliers for store credit vouchers instead of having credits issued back to the purchase card account. 24. LIABILITY OF CARDHOLDERS AND CERTIFYING OFFICIALS a. Intentional use of the purchase card for other than official Government business will be considered an attempt to commit fraud against the U.S. Government and shall result in immediate cancellation of an individual’s card and disciplinary action against the cardholder and, if warranted, against the Certifying Official. 25 b. The cardholder shall be held personally liable to the Government for any non-government transactions. Under 18 U.S.C. 287, misuse of the purchase card could result in a fine of not more than $10,000 or imprisonment for not more than five-years or both . c. The cardholder and the Certifying Official are pecuniarily liable for erroneous payments in accordance with provisions of 31 U.S.C. 3528. The amount of pecuniary liability is determined under Chapter 33, Volume 5, DoD Financial Management Regulations. The act of certifying the billing statement for payment makes the Certifying Official financially liable.. Certifying Officials are liable for an illegal, improper, or incorrect payment due to an inaccurate or misleading certification. Consequently, Certifying Officials knowingly making a false certification could be asked to repay the Government for items purchased. If a cardholder or Certifying Official is unsure about certification, they should contact the APC for guidance and/or assistance regarding billing issues. 25. LOST OR STOLEN CARDS a. If the card is lost or stolen, the cardholder must immediately notify U.S. Bank at 1-888994-6722, and within one business day notify the APC and the Certifying Official. Prompt action will reduce liability for fraudulent charges. As a minimum, the following information is required: All information on the loss/theft The date the loss/theft was discovered The location where the loss/theft occurred, if known Any other relevant information b. The cardholders account will be closed and a new one will be opened for them. The new account information should be received within 48 hours. 26. FREQUENTLY ASKED QUESTIONS AND ANSWERS Q1. May pots of coffee be purchased for use at meetings? A1. No. There are no known exceptions in the law for purchase of pots of coffee and O&M funds. GSA decisional law prohibits the use of appropriated funds for the purchase of pots of coffee to provide beverages for any employee regardless of grade level or rank. Cardholders are prohibited from using the purchase card to purchase pots of coffee unless they have first received approval to pay for the coffee using Official Representation Funds in accordance with DoD regulations. Q2. Can commemorative coins be purchased? A2. Coins may only be purchased to use as awards for a job well done, not as a personal memento or commemorative coin. File documentation supporting this purchase must be include with the invoice. Absent and official awards program, distributing coins is considered a gift and this fall outside of a permissible practice. 26 Q3. Are vehicle expenses allowed under the purchase card? A3. No. Vehicle expenses cannot be charged with a purchase card. Q4. Is everything in the GSA managed (Va Industries with the Blind) store available ofr purchase under the card? A4. No. Most items are appropriate, but certain items may be considered personal use items including heaters, fans, and Kleenex. Q5. Can wrist support and ergonomic chairs be purchased with the purchase card? A5. Yes, please see Restricted and Unauthorized Purchases, 15.g. Q6. Can the purchase card be used for monthly recurring utility charges, such as for phone bills and cable bills? A6. Yes. Q7. Can the purchase card be used for monthly IT maintenance? A7. Monthly recurring IT charges for maintenance that do not exceed $2,500 annually may be purchased under the purchase card. Maintenance fees above $2,500 annually should be ordered under contract. Q8. Is the list of cardholders releasable under the Freedom of Information Act (FOIA)? A8. No. Q9. Can food be purchased for meetings, award programs, or retirement functions? A9. Ordinarily, the purchase of food is not allowable. There are very limited situations where purchase of food is permissible. Those situations are discussed on Restricted and Unauthorized Purchases, 15.a. Q10. Is a UNICOR waiver required for the purchase of furniture from other sources? A10. A waiver is not required unless the purchase is over $2,500. If UNICOR is determined not to be competitive in terms of price, quality or time of delivery, another source may be contacted without the need to obtain a waiver. However, UNICOR must, in this situation, be allowed to submit an offer. Q11. Can seasonal decorations be purchased under the purchase card? 27 A11. Seasonal decorations may be purchased only if they are located in a common use area— not in a private office. Q12. Can buses be leased or rented for such functions as organization day, recreational activities and office picnics? A12. No. These activities are not considered mission-essential where appropriated funds may be used. Q13. Can frames be purchased with the purchase card? A13. Frames may be purchased for use in an official award or retirement program when purchased at the GSA-managed store. Q14. Can the purchase card be used to pay for conference registration fees? A14. Yes. 28 APPENDIX A SAMPLE APPOINTMENT MEMORANDUM FOR CERTIFYING OFFICIAL (Use appropriate letterhead) MEMORANDUM FOR (Insert Certifying Official's Name and Unit) SUBJECT: Appointment as Certifying Official You occupy a position where your duties include the functions of payment Certifying Official for (select type; e.g., Mil Pay, PowerTrack, DTS, etc). This memorandum is formal notification that you are hereby appointed a Certifying Official to (Insert the location and address of the disbursing officer to whom your certificate will be made). As a Certifying Official, you will be responsible for certifying vouchers and documents for payment. Certifying Officials have pecuniary liability for any illegal, improper, or incorrect payment processed by the Department as a result of any inaccurate or misleading certification. This means that you may have to repay the total amount of any payment that is found to be illegal, improper, or incorrect. You must become thoroughly familiar with your responsibilities and accountability. By your signature below, you acknowledge this appointment and affirm that you have read and understand your responsibilities as described in the following references: Title 31, US Code, Sec 3325 Title 31, US Code, Sec 3528 DoD Directive 7000.15 DoD FMR Vol. 5, Ch 33 http://www4.law.cornell.edu/uscode/31/3325.html http://www4.law.cornell.edu/uscode/31/3528.html http://web7.whs.osd.mil./ http://www.dtic.mil/comptroller/fmr/ In addition, if you are certifying documents other than travel vouchers paid through the Defense Travel System (DTS) or DTS-Limited, you must complete a DD Form 577, Signature Card. After completion of the acknowledgement below and the Signature Card, keep a copy and forward the originals to the appointing official. (Appointing Official's Signature) ACKNOWLEDGEMENT By signature hereon, I acknowledge my appointment as a Certifying Official. I have read and understand my responsibilities and accountability. I understand my right to request relief of liability for any payment I certify that is determined to be illegal, improper, or incorrect. I further understand that this appointment will remain in effect until revoked in writing by the Appointing Official or successor Attached is the completed DD Form 577, Signature Card (Certifying Official's Name and Signature) Appendix A APPENDIX B-1 SUPPLIER POINT OF CONTACTS GSA Customer Supply Centers 1-800-488-3111 http://www.gsa.gov GSA Advantage (877) 472-3777 http://www.gsa.gov JWOD (Program Information) http://www.jwod.gov/ National Institute for the Blind (NIB) Program Information (703) 998-0770 Customer Hotline 1-800-433-2304 http://www.nib.org National Institute for the Severely Handicapped (NISH) Program Information (703) 560-6800 http://www.nish.org Appendix B APPENDIX B-2 JWOD SUPPLIES DISTRIBUTORS As of 20 December 2004 I. Office supplies, cleaning and janitorial, hardware and paints, furniture, personal care and safety and services at http://www.jwod.gov. Other sources with JWOD programs are listed below. Corporate Express 1 (888) 862-8674 http://www.corporateexpress.com Office Depot 1- (888) 263-9586 http://www.officedepot.com Staples National Advantage 1 - (888) 212 7219538-2728 http://www.staples.com Appendix B APPENDIX C PURCHASE CARD CERTIFICATION STATEMENTS Cardholder (As Accountable Official), certification statement shall read: "I certify that, except as may be noted herein or on supporting documents, the purchases and amounts listed on this account statement: (1) Are correct and required to fulfill mission requirements of my organization. (2) Do not exceed spending limits approved by the Resource Manager. (3) Are not for my personal use or the personal use of the receiving individual (4) Are not items that have been specifically prohibited by statue, by regulation, by contract or by my organization. (5) Have not been split into smaller segments to avoid dollar limitations." _____________________________________ Authorized Cardholder Signature (Or electronic signature) Certifying Official (As Accountable Official), certification statement shall read: "Pursuant to authority vested in me, I certify that this invoice (billing statement) is correct and proper for payment, except as may be noted herein or on supporting documents." _____________________________________ Authorized Certifying Official Signature (Or electronic signature) Appendix C APPENDIX D APC PURCHASE CARD PROGRAM REVIEW CHECKLIST A physical review was conducted on __________________ on _________________ (Account number) (Date) By: _________________________ (Official's full name) Telephone:(___) _____________Fax: (____) ___________ E-mail address: ___________________ Office/activity address: __________________________________ _______________________________ _______________________________ List of Cardholder account(s) reviewed: Cardholder's full name: __________________________________________________ Telephone: (_____) __________________ Fax:(______)_______________________ E-mail address: _______________________ Office/activity address: ______________________________________________________________________ Paying office Point of Contact: ____________________________________________________ Telephone: (_____) __________________ Fax:(______)_______________________ E-mail address: _____________________ Address: ______________________________________________________________________ Limits - Single purchase, monthly spending limit, billing office limit: $ ____________$_____________$_________________ (Single purchase) (Monthly limit) (Billing office limit) Transactions reviewed for the period: ___________Through___________________ (Date) (Date) JAN $ MAY $ SEP $ TOTAL AMOUNT NO OF ACTIONS FEB $ JUN $ OCT $ $______________ _______________ MAR $ JUL $ NOV $ FOR THE YEAR FOR THE YEAR Appendix D APR $ AUG $ DEC $ A. ADMINISTRATIVE ISSUES (1) Is there a separation of duties between cardholders, Certifying Officials, property officers? YES NO NA NOTE. Prohibited relationships could include, but are not limited to, the following: (1) A cardholder can not be a property officer; (2) A cardholder can not be their own Certifying Official; (3) Nor should one individual buy, receive, and certify fund available for a purchase. (2) Have cardholders -- Been delegated authority to make buys in writing? -- Attended and completed required training? YES YES NO NO NA NA (3) For disputed transactions and or errors in billing does the cardholder: --Ensure bills are paid in full in accordance with delayed dispute procedures? YES NO NA --Complete the "Cardholder Statement of Questioned Item (CSQI)" and forward to the bank for resolution? YES NO NA --Monitor the disputed item's progress until resolved? YES NO NA (5) Does the cardholder follow the agency's internal procedures? YES NO NA (6) Are cards and account numbers properly safeguarded against misuse, loss, or theft? YES NO NA B. FUNDS (1) Does the cardholder keep a running balance of available funds? YES NO NA (2) Does the cardholder reconcile his/her account and forward to the Certifying Official within five (5) calendar days? YES NO NA (3) Does the cardholder know the process for rebates offered by manufacturers and retailers? YES NO NA (4) Does the cardholder know how to handle merchandise returns? YES NO NA Appendix D AUDIT ALERT. Cardholders are prohibited from accepting anything other than a credit back to the purchase card for merchandise returns or credits for services. C. PROCEDURES (1) Do cardholders maintain a purchase log of all transactions? YES NO (2) Do cardholders verify price reasonableness? YES NO NA NA (3) Are requirements being "split" to avoid cardholder's single purchase limit? YES NO NA (4) BEFORE a cardholder makes a buy using a commercial source, are required sources of supply and services (FAR 8.001) checked for availability to fill the requirement? YES NO NA (5) Are purchases being rotated among qualified suppliers to promote competition? (FAR 13.104) YES NO NA (6) Did any purchase include sales tax? D USAGE (1) Was the purchase card used to buy any of the following unauthorized items? YES YES YES YES NO Back orders (See question (2) below) NO Cash advances from banks and/or automated teller machines are prohibited NO Travel related purchases (use your government travel card) NO Rental or leases of land or buildings exceeding 30 days YES NO NA YES NO Aviation, diesel, or gasoline fuel or oil for aircraft or motorized vehicles repair of leased vehicles (when the lease includes service or maintenance) YES YES NO Telecommunications services (air time and major systems - FTS2000) NO Explosives, munitions, toxins, firearms - hazardous materials YES NO Janitorial, yard, or maintenance services (any service covered under a existing agency, base, or activity contract) Appendix D YES YES YES YES NO Printing or copying services by commercial services (unless DAPS authorizes) NO Personal services NO Classified and sensitive items NO Items for personal use (any supplies or services not for official government use) YES NO Food (unless authorized by the agency's mission; i.e., hospitals, dining halls, etc) any supplies or services available from required sources of supply/services YES NO Munitions If YES, please record and describe incident(s) ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________ (2) Did cardholder place "backorder" buys with suppliers? (Items must be immediately available or shipped within 30 days)? YES NO NA (3) Does cardholder coordinate with property officer to place pilferable, nonexpendable and/or sensitive property on hand-receipts, or the property books? YES NO NA (4) Are coordination and approval obtained before purchasing items such as photographic supplies; hazardous materials; and computer, communication equipment, and software? YES NO NA (5) Do cardholders verify whether or not required services or equipment repair/service are covered under an existing contract before making the buy? YES NO NA E. RECORDS (1) Is there an original receipt for each transaction? (Receipt should include supplier's name, address, clear description of items or services purchased, quantity, unit price, total price, and exclusion of tax) YES NO NA (2) Is there evidence in the files that the item(s) or services purchased have been received and/or performed? YES NO NA Appendix D (3) Does the cardholder retain for three (3) years copies of their statement of accounts, along with copies of supporting documentation and purchase logs)? YES NO NA (4) Does cardholder utilize a manual or automated system to track purchases, deliveries/performance, payments, and disputes? Manual F. RECONCILIATION PROCESS (1) Are procedures in place to process cardholders Statements of Account (SOA) during their absence? YES NO NA (2) Are reconciled SOAs being forwarded to the Certifying Official within five (5) calendar days for processing? YES NO NA G. REVIEWS (1) The last review was conducted on ___________ BY _____________________ -- Deficiencies, if any, were corrected. YES NO NA -- Copies of findings furnished to the APC. YES NO NA -- Review findings were discussed with cardholders YES NO NA NOTE: Upon completion of the review, the Official shall prepare a written summary of their findings, including deficiencies and corrective action to be taken, if any. A copy of the findings shall be provided to the cardholder and the Agency Program Coordinator at TMA-Aurora within 20 calendar days of the review. Automated Appendix D APPENDIX E CHECKLIST FOR APC REVIEW OF CERTIFYING OFFICIAL (CO) Yes No Comments 1. Did the CO keep a copy of the original delivery order establishing the account in the file. 2. Have monthly purchase limits for the account, each cardholder and amount per transaction per cardholder been established in coordination with the Resource Manager? 3. Did the CO ensure that prospective cardholders completed the required training? 4. Were memos sent to the APC to add or delete cardholders under the account? 5. Did the CO receive the official billing statement? 6. Did the CO date stamp the monthly billing statement for prompt payment. 7. Did the CO review monthly cardholder statements of all transactions made by the cardholders? 8. Did the CO review reconciled cardholder statements of accounts to ensure that receipts and documentation were in order? 9. Did the CO reconcile and certify for full payment the bank’s consolidated monthly Statement of Account against cardholder’s purchase card log and Statement of Account? 10. Is the monthly billing statement forwarded to the disbursing office within 10 calendars days of receipt? 11. Did the CO maintain copies of reconciled billing statements by month, along with cardholder’s original Statement of Accounts and supporting documents for 3 years? 12. Did the CO resolve delinquencies with the disbursing office and the bank? 13. Did the CO maintain original cardholder statements of account and receipts/sales slips 14. Did the CO report on lost, stolen, compromised cards to the APC within one (1) business day? 15. Did the CO conduct annual reviews on cardholder accounts and provide findings to the APC? 16. Did the CO review previous finding to ensure corrective action was taken and repeated deficiencies, if any, were noted? Appendix E