HomeMy WebLinkAboutN-480 - Use of P-Cards CITY OF PASCO
ADMINISTRATIVE ORDERS
Administrative Order No. 480
Finance
Subject: Use of Procurement Card (or P-Card) Initial Effective Date:
April 7, 2000
Revised 6/16/04 2/b/08
Ap roved GC
This Administrative Order supersedes Administrative Order No. 79, "Procedure for Use of City
Visa Credit Card," dated 4/7/00 and revised 6/16/04.
I. PURPOSE:
To establish the policies and procedures related to the authorization, control and use of
procurement cards (P-Cards) issued to City of Pasco personnel.
II. DEPARTMENTS AFFECTED:
All.
III. REFERENCES:
RCW 42.24.115 and RCW 43.09.2855.
IV. POLICY:
The City of Pasco finds that the use of alternative forms of payments such as a P-Card is
an economical and practical means for making purchases in today's business
environment, improve cash management, reduce costs and increase efficiency.
The Administrative & Community Services Department will issue authorized employees
with City of Pasco P-Cards bearing the City logo for the purpose of purchasing goods and
services for City business.
P-Cards are issued to the employee but they remain the property of the City. The
cardholder is responsible for all activity on his/her card. The P-Card is to be used for
purchases related to City of Pasco business; no personal expenses are to be charged to the
card for any reason whatsoever.
V. PROCEDURE:
A) Setting up Accounts: The Department Head will be responsible for completing a
Request for Procurement Card form. They will identify their department
employee(s) who are to be issued a P-Card and designate credit limits for each
individual listed. Once the form has been completed and signed by the
Department Head, it should be sent to the Accounting Supervisor in Finance for
processing.
B) Distribution of P-Cards: P-Cards will by issued by the Program Administrator
in Finance. Cardholders will be required to sign a Procurement Card Agreement
prior to being issued their card. This agreement outlines the cardholder's
responsibilities. Cardholders will also be provided with a copy of the
Procurement Card Policy and Procedure.
C) Authorization and Controls: The P-Card Program will be administered by the
Finance Department. Finance will designate an individual to be the Program
Administrator. This individual will process al requests for cards, credit limit
changes, activation, cancellations, and deactivations. This program is
administered in real time on the US Bank website allowing requests for changes
to take place almost immediately.
D) Credit Limit/Restriction Changes and Seasonal Activation: Request for
changes in credit limits or card restrictions must be made in writing by the
Department Head to the Program Administrator. No changes will be made
without written authorization and approval.
P-Card credit limits can also be temporarily reduced to $.01 to reflect seasonal use
• of the card. This, in essence, deactivates the card during those periods when the
card will not be used. This change also requires written notification by the
Department Head to the Program Administrator.
E) Expired or Terminated Cards: When a card expires, it is the cardholder's
responsibility to turn the expired card in to the Program Administrator in Finance.
The Program Administrator will then issue the cardholder a new card. When an
employee leaves the City's employment, it is the responsibility of the Department
Head to notify the Program Administrator to terminate the P-Card in writing. The
Department Head will also retrieve the P-Card from the employee and send it to
the Program Administrator.
F) Procurement Card: P-Cards are accepted by any vendor who accepts VISA
cards. They function similarly to a credit or debit card. Each cardholder has a
credit limit and/or other purchase restrictions as designated by the Department
Head. Employees are encouraged to use P-Cards in place of Local Purchase
Orders, Purchase Orders and Blanket Purchase Orders. Departments can still
utilize those processes if they so choose. Vendors receive payment upon
transmission of their credit card transactions to their bank. This will reduce the
number of month end vendor statements to be processed by departments since the
vendor has already been paid. It will also reduce the number of inquiries related
to missing and late payments and vendors wanting to know when they will
receive payment.
Administrative Order 480: Use of Procurement Card(P-Card)
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G) Purchases: Purchases may be made in person, by phone, by fax, by snail or via a
secure link on the internet. In-person purchases must be accompanied by the
original sales receipt/invoice; purchases made by phone must have either a receipt
mailed, emailed or faxed to the employee; internet purchases must have a copy of
the on-line receipt printed at the time of purchase or emailed receipt.
Purchases must be for City related business. NON-CITY CHARGES ARE
NOT ALLOWED.
The employee who made the purchase shall immediately complete a
"Procurement Card Payment Authorization Form," attach the receipt and forward
it to their Department Director for approval.
The Department Director shall approve all Procurement Card Payment
Authorization forms, direct that the purchase information be electronically entered
into the city's accounting system and have copies forwarded to Accounts Payable
in Finance within S business days of the purchase date.
H) Local Vendor Preference: Given the local tax benefits generated by use of
Pasco vendors (i.e., property tax, utility tax and sales tax), employees are
encouraged to purchase supplies from Pasco vendors whenever possible and
reasonably economical. Employees are expressly discouraged from traveling out
. of Pasco to purchase supplies unless the increment of savings substantially
exceeds the value of their time and vehicle travel. Electronic purchase decisions
should consider shipping and any other ancillary charges.
I) Credits and Returns: Credits and returns shall be processed in the same manner
as purchases. The cardholder shall obtain a credit receipt or credit memo from the
vendor and complete a Procurement Payment Authorization Form. Indicate on
the form that the transaction is a credit or return and the reason for the credit.
Submit the form and the credit receipt or memo for Department Director
approval.
J) Lack of Receipt or Documentation: In the event that receipts or purchase
documentation is lost; unable to be retrieved or duplicated; or in the instance of
internet purchases, the on-line receipt was not printed, a "Certificate of
Unavailable Documentation" form must be completed by the cardholder. This
form must be submitted along with the Procurement Card Payment Authorization
form to the Department Director for approval. Any additional documentation,
such as packing slips, that substantiate the purchase should also be attached to the
forms submitted. Repeated and frequent use of this form as substitute
documentation may result in revocation of your card.
K) Prohibited Purchases: Prohibited purchases for use of the P-Card include, but
are not limited to the following:
Non-City charges
Cash Advances
Administrative Order 480:Use of Procurement Card(P-Card)
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• Meals for Travel in place of Per Diem
Alcohol
Contracts requiring authorized signatures
• Legal Services
• Payments to individuals or employees
• Refunds of revenue
• Recurring payments except as approved by Finance
• Personal purchases
• Medical Services
• Moving expenses
• College tuition payments
• Consulting Services
Recreational activities
o Except for those activities that are specifically a part of Recreation Service
programs.
Gifts, donations, or contributions to individuals or organizations
• Gasoline or fuel for vehicles.
o Purchasing fuel. for city vehicles should be done at the nearest facility that
accepts the vehicle's fuel card, as the City is exempt from paying the
federal excise taxes on fuel. A listing of fueling locations can be found on
the CFN website at: www.cfnnet.com. The Finance Manager may issue a
temporary use gasoline credit card for special circumstances at the request
of the Department Director. In an emergency or in the event that a fueling
. facility cannot be found, or is so far away as to be impractical, the
employee should purchase fuel and provide receipt to the City in seeking
reimbursement as a travel expense.
Any employee who willfully makes prohibited purchases shall be subject to
disciplinary action, including the possibility of termination.
Unauthorized charges, or charges not properly identified, shall be paid by the
employee. These charges are considered liens against any amount owed by the
City to the employee, and may be withheld by the City from funds owed to the
employee up to the amount of the disallowed charges. [RCW 42.24.115(3)]
L) Disputes: If there are any discrepancies, the cardholder should first contact the
vendor to resolve the problem. If the dispute still exists, contact the Program
Administrator for assistance in handling the dispute. The following may be
formally disputed with US Bank:
• Unauthorized charges, including unauthorized phone or mail order charges.
• Difference in amount authorized and amount charged.
• Duplicate charges.
M) Lost or Stolen Procurement Cards: The cardholder shall report a lost or stolen
card to US Bank at (800) 344-5696 IMMEDIATELY. (The City of Pasco is
responsible for charges until the lost card is reported to the bank.) The cardholder
shall also notify the Program Administrator as soon as possible during the earliest
available business hours.
Administrative Order 480; Use of Procurement Card(P-Gard)
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