State of Oklahoma Statewide Purchase Card. The Purchase Card program began in 2000 as a pilot program and became permanent in 2001. It is authorized by

State of Oklahoma State of Oklahoma Statewide Purchase Statewide Purchase

CardCard

The Purchase Card program began in The Purchase Card program began in 2000 as a pilot program and became 2000 as a pilot program and became permanent in 2001. It is authorized by permanent in 2001. It is authorized by the State of Oklahoma Central the State of Oklahoma Central Purchasing Act (74 O.S., § 85.5 C. 15. & Purchasing Act (74 O.S., § 85.5 C. 15. & L.). The Director of Central Services L.). The Director of Central Services promulgates the program rules.promulgates the program rules.

Legislation passed in 2004 authorized Legislation passed in 2004 authorized the issuance of a Statewide Contract the issuance of a Statewide Contract P/Card to make purchases of any amount P/Card to make purchases of any amount from Statewide Contracts issued by the from Statewide Contracts issued by the Department of Central Services, Central Department of Central Services, Central Purchasing Division.Purchasing Division.

Purchase Card Program Purchase Card Program AdvantagesAdvantages

Use of the State Purchase Card results in Use of the State Purchase Card results in time and cost savings by streamlining time and cost savings by streamlining traditional governmental purchasing traditional governmental purchasing methods. methods.

Purchases are encumbered in the State’s Purchases are encumbered in the State’s financial system and paid electronically to financial system and paid electronically to the bank on a monthly basis; thus, reducing the bank on a monthly basis; thus, reducing transaction costs and paperwork while, at the transaction costs and paperwork while, at the same time, providing audit trails and reports same time, providing audit trails and reports necessary for monitoring of transactions.necessary for monitoring of transactions.

OVERVIEWOVERVIEW

Types of P/Cards Available:Types of P/Cards Available: Standard P-CardStandard P-Card

Credit Card used for making low-dollar acquisitions Credit Card used for making low-dollar acquisitions ($2,500.00 or less)($2,500.00 or less)

Statewide Contract P-CardStatewide Contract P-Card Credit Card used for purchasing from Statewide Credit Card used for purchasing from Statewide

Contracts issued by the DCS/Central Purchasing Contracts issued by the DCS/Central Purchasing Division. Purchases can be any amount.Division. Purchases can be any amount.

Travel P-CardTravel P-Card Credit Card used to purchase airfare or lodging. The Credit Card used to purchase airfare or lodging. The

single purchase limit is $2,500.00 for either travel or single purchase limit is $2,500.00 for either travel or lodging.lodging.

3.0 ORGANIZATION AND 3.0 ORGANIZATION AND TRAININGTRAINING

All participants in the P-Card Program All participants in the P-Card Program are required to attend training are required to attend training provided by DCS, Central Purchasingprovided by DCS, Central Purchasing

Statewide Contract Cardholders, Statewide Contract Cardholders, Approving Officials, P-Card Approving Officials, P-Card Administrators and Back-ups must Administrators and Back-ups must attend a separate Statewide Contract attend a separate Statewide Contract P-Card TrainingP-Card Training


Purchase Card Employee AgreementPurchase Card Employee Agreement Entity P-Card Administrators, Back-Up Entity P-Card Administrators, Back-Up

Administrators, Authorized Signers, Administrators, Authorized Signers, Approving Officials, and Cardholders must Approving Officials, and Cardholders must sign the State of Oklahoma P-Card sign the State of Oklahoma P-Card Employee Agreement form Employee Agreement form PRIORPRIOR to to assuming their duties and being issued P-assuming their duties and being issued P-Cards. Cards.

An agreement form must be signed for An agreement form must be signed for every role a person holds in the program.every role a person holds in the program.


Purchase Card Employee Agreement includes Purchase Card Employee Agreement includes Terms and Conditions such as:Terms and Conditions such as: I accept full personal responsibility for the I accept full personal responsibility for the

safekeeping of all p-cards assigned to me and no one, safekeeping of all p-cards assigned to me and no one, other than myself, is permitted to use the P-Card other than myself, is permitted to use the P-Card assigned to me.assigned to me.

I understand that the use of the p-card does not I understand that the use of the p-card does not exempt me from requirements to obtain certain exempt me from requirements to obtain certain supplies from required sources as set forth in statutes supplies from required sources as set forth in statutes and p-card proceduresand p-card procedures

I acknowledge that I will have personal liability for I acknowledge that I will have personal liability for any inappropriate purchases made by meany inappropriate purchases made by me


Purchase Card Employee Agreement (Continued)Purchase Card Employee Agreement (Continued) I will use the card only within the limits and restrictions I will use the card only within the limits and restrictions

placed upon it placed upon it Failure to follow any of the terms and conditions may Failure to follow any of the terms and conditions may

result in revocation of the card, disciplinary action, result in revocation of the card, disciplinary action, termination of employment, and/or criminal charges.termination of employment, and/or criminal charges.

I shall surrender my P-Card(s) upon (1) transfer to I shall surrender my P-Card(s) upon (1) transfer to another organization of State government; (2) another organization of State government; (2) termination of employment with the State; or, (3) upon termination of employment with the State; or, (3) upon request by my Supervisor, Agency Approving Official, request by my Supervisor, Agency Approving Official, Agency P-Card Administrator or the State Purchasing Agency P-Card Administrator or the State Purchasing Director. Director.

I agree to reimburse the State for any purchases made I agree to reimburse the State for any purchases made by me which are deemed inappropriateby me which are deemed inappropriate


Personnel serving as Entity P-Card Personnel serving as Entity P-Card Administrators, Back-up Administrators, Administrators, Back-up Administrators, Authorized Signers, Approving Officials Authorized Signers, Approving Officials and Cardholders must be full time or and Cardholders must be full time or permanent part time (not temporary) permanent part time (not temporary) employees of a state entity.employees of a state entity.

6.0 P-CARD OPERATIONS6.0 P-CARD OPERATIONS

CardholdersCardholders The P-Card is typically issued to those The P-Card is typically issued to those

employees who have the employees who have the need to actually need to actually purchase goods and servicespurchase goods and services for official use for official use of the State.of the State.

All P-Cards issued under this program are All P-Cards issued under this program are the property of the State of Oklahoma and the property of the State of Oklahoma and shall be surrendered upon termination of shall be surrendered upon termination of employment.employment.

6.0 P-Card Operations6.0 P-Card OperationsCard Controls and Limits

Statewide P-Card – There is no mandatory limit on purchasing amounts. The agency P-Card Administrator shall set the card limits for Statewide Contract P-Cards based on the agency’s need or past usage. These limits should not be set inappropriately high. The card is to be used only for making purchases off of statewide contracts issued by Central Purchasing.


Transaction ApprovalTransaction Approval Statewide Contract P-Card transactions must Statewide Contract P-Card transactions must

be approved in writing by the Approving be approved in writing by the Approving Official prior to making a purchase of goods Official prior to making a purchase of goods or services with the Statewide Contract P-or services with the Statewide Contract P-Card. – The Cardholder shall update the note Card. – The Cardholder shall update the note field on Pathway Net for each transaction field on Pathway Net for each transaction posted with a brief description of the goods posted with a brief description of the goods or services purchased including the or services purchased including the Statewide Contract number.Statewide Contract number.


Merchant PreferencesMerchant Preferences Mandatory Statewide Contracts – State Mandatory Statewide Contracts – State

entities shall make purchases from entities shall make purchases from mandatory statewide contracts regardless of mandatory statewide contracts regardless of the purchase price unless the State the purchase price unless the State Purchasing Director has issued a waiver to Purchasing Director has issued a waiver to the entitythe entity

State Use CommitteeState Use Committee Oklahoma Corrections Industries (if vendor is Oklahoma Corrections Industries (if vendor is

deemed lowest and best.) Cardholder shall obtain deemed lowest and best.) Cardholder shall obtain a quote from OCI and retain with the monthly a quote from OCI and retain with the monthly transaction documentation.transaction documentation.

6.0 P-Card Operations6.0 P-Card OperationsComputer and telecommunication acquisitions require prior approval from OSF for the following:

Computer Acquisitions – Computer acquisitions using the Statewide Contract P-Card when they exceed $25,000 in value.

Telecommunication Acquisitions – Telecommunication acquisitions at any dollar amount.


Receipts shall be obtained for Receipts shall be obtained for ALLALL purchases purchases Receipts shall be itemized and give a Receipts shall be itemized and give a

detailed description of the item purchased – detailed description of the item purchased – Receipts must contain at a minimum (1) Receipts must contain at a minimum (1) vendor; (2) date of Purchase; (3) description vendor; (2) date of Purchase; (3) description (4) unit price and quantity; and, (5) (4) unit price and quantity; and, (5) transaction total.transaction total.

If telephone or internet order, an order If telephone or internet order, an order confirmation or packing slip shall serve as confirmation or packing slip shall serve as the receiptthe receipt


Purchases by P-Card are subject to the Purchases by P-Card are subject to the receiving document requirements. receiving document requirements.

Receiving documents must be signed, dated Receiving documents must be signed, dated and marked “Received”.and marked “Received”.

Although not required, it is recommended the Although not required, it is recommended the agency have a second person verify receipt of agency have a second person verify receipt of goods or services.goods or services.

The receiving documents should be kept by The receiving documents should be kept by the cardholder for the monthly reconciliation the cardholder for the monthly reconciliation process.process.

6.0 P-CARD OPERATIONS6.0 P-CARD OPERATIONSReturns, Credits and Disputed TransactionsReturns, Credits and Disputed Transactions Disputes should first be resolved by cardholder Disputes should first be resolved by cardholder

contacting the merchant to receive a credit (credit contacting the merchant to receive a credit (credit will show up on subsequent statement)will show up on subsequent statement)

If Cardholder is unable to resolve the dispute with If Cardholder is unable to resolve the dispute with merchant, contact JPMorganChase for assistancemerchant, contact JPMorganChase for assistance Must contact JPMorganChase no more than 30 days Must contact JPMorganChase no more than 30 days

after the original transaction date.after the original transaction date. JPMorganChase will investigate the dispute on the JPMorganChase will investigate the dispute on the

cardholder’s behalf and assist in resolution – A cardholder’s behalf and assist in resolution – A transaction Dispute Form must be completed and transaction Dispute Form must be completed and transmitted to the bank. Keep a copy of the transmitted to the bank. Keep a copy of the Transaction Dispute Form on file for reconciliation to Transaction Dispute Form on file for reconciliation to the memo statement.the memo statement.


Remember – payment must be made in Remember – payment must be made in full even if an item is in disputefull even if an item is in dispute

All documentation must be retained All documentation must be retained with transactionwith transaction

Credit will appear on a subsequent Credit will appear on a subsequent statementstatement

5.0 FINANCIAL OPERATIONS5.0 FINANCIAL OPERATIONS

InventoryInventory State entities shall establish procedures to State entities shall establish procedures to

ensure items acquired using the P-Card and ensure items acquired using the P-Card and exceeding $500.00 in cost, or a different exceeding $500.00 in cost, or a different amount if approved by the State amount if approved by the State Purchasing Director are added to the Purchasing Director are added to the inventory schedule pursuant to Title 74 inventory schedule pursuant to Title 74 Section 110.1Section 110.1

6.0 P-Card Operations6.0 P-Card Operations

Card Security – Use of the Statewide Contract P-Card is limited to the person whose name is embossed on the card. The card shall not be loaned to another person.

In the event a cardholder will be absent from work for an extended period, the agency should place a temporary hold on the card on Pathway Net.

Although not required, it is recommended the cardholder not carry the P-Card on their person outside normal duty hours.


Reconciling the Monthly StatementReconciling the Monthly Statement Cardholder shall retain all transaction Cardholder shall retain all transaction

documentationdocumentation The cardholder shall generate an electronic memo The cardholder shall generate an electronic memo

statement (RPT 121) after closing of the bank’s statement (RPT 121) after closing of the bank’s monthly billing cycle from the Pathway Net System.monthly billing cycle from the Pathway Net System.

Cardholder shall reconcile memo statement with Cardholder shall reconcile memo statement with appropriate documents (logs, receipts, receiving appropriate documents (logs, receipts, receiving documents, credits, disputes, etc.) to verify documents, credits, disputes, etc.) to verify purchases and returns are accurately listed on the purchases and returns are accurately listed on the statementstatement


Reconciling the Monthly Statement (Cont’d)Reconciling the Monthly Statement (Cont’d) The statement shall be signed and dated by The statement shall be signed and dated by

the cardholder verifying responsibility for the cardholder verifying responsibility for purchases and proper reconciliationpurchases and proper reconciliation

Once signed and dated, the statement, along Once signed and dated, the statement, along with all documentation must be submitted to with all documentation must be submitted to the cardholder’s designated State Entity the cardholder’s designated State Entity Approving OfficialApproving Official

Approving Official must be at least one level above Approving Official must be at least one level above their position and is current on their P-Card trainingtheir position and is current on their P-Card training


Reconciling the Monthly Statement Reconciling the Monthly Statement (Cont’d)(Cont’d) State Entity Approving Official shall review State Entity Approving Official shall review

the cardholder’s statement and supporting the cardholder’s statement and supporting documentation for accuracy, completeness, documentation for accuracy, completeness, appropriateness of the purchase and appropriateness of the purchase and whether the transactions were conducted whether the transactions were conducted according to State statutes, rules, P-Card according to State statutes, rules, P-Card procedures and sound business practiceprocedures and sound business practice


Reconciling the Monthly Statement Reconciling the Monthly Statement (Cont’d)(Cont’d) To indicate concurrence with the reconciled To indicate concurrence with the reconciled

statement, the State Entity Approving statement, the State Entity Approving Official shall sign and date the statementOfficial shall sign and date the statement

Approving Official shall forward the Approving Official shall forward the statement and supporting documentation statement and supporting documentation for paymentfor payment


If cardholder changes jobs, the P-Card If cardholder changes jobs, the P-Card shall be returned to the State Entity P-shall be returned to the State Entity P-Card AdministratorCard Administrator Card must be canceledCard must be canceled User ID in Pathway Net must be locked User ID in Pathway Net must be locked

(indicate date on P-Card Agreement)(indicate date on P-Card Agreement) Notify State P-Card Administrator of Notify State P-Card Administrator of

cancellation and account closure.cancellation and account closure.

6.0 P-CARD OPERATIONS6.0 P-CARD OPERATIONS If P-Card is lost or stolen, cardholder shall immediately If P-Card is lost or stolen, cardholder shall immediately

notify JPMorganChasenotify JPMorganChase The telephone number (800-316-6056) is available 24 The telephone number (800-316-6056) is available 24

hours per dayhours per day Keep number separate from card locationKeep number separate from card location State Entity is responsible for purchases on lost State Entity is responsible for purchases on lost

or stolen P-Cards until bank has been notifiedor stolen P-Cards until bank has been notified Cardholder shall record the date and time JPMorgan Cardholder shall record the date and time JPMorgan

Chase was notified as well as the name of the Chase was notified as well as the name of the JPMorgan Chase customer service representative JPMorgan Chase customer service representative contacted. Cardholder must complete a Lost or Stolen contacted. Cardholder must complete a Lost or Stolen P-Card Notification form and provide it to the Agency P-Card Notification form and provide it to the Agency Entity P-Card Administrator.Entity P-Card Administrator.

Documents

State of Oklahoma Statewide Purchase Card. The Purchase Card program began in 2000 as a pilot program and became permanent in 2001. It is authorized by