State of New MexicoProcurement Card (P-Card) Program

State of New MexicoProcurement Card (P-Card) Program

Procurement Card Training

February 27, 2013

Procurement Card Training

February 27, 2013

State Agencies Using or Interested in the P-

Card Program

Currently there are 28 State Agencies that are on the P-Card program

There are 4 Additional State Agencies that are Interested in Utilizing the P-Card program

A.K.A P-Card or Purchasing Card

The State of New Mexico’s Charge Card– For Goods– For Services– For Emergencies – For State Agency Frequent Individual Travelers

Alternate Method of Payment to the Procurement Code Process

Bank of America – VISA Product

What is a Procurement Card? What is a Procurement Card?

Streamline Payment Process Eliminate Direct Purchase Orders Reduce Purchase Documents Reduces Payment Vouchers Future Electronic Submission of Payment to the

Bank of America Elimination of Non-Taxable Transaction

Certificates (NTTCs) for Goods Only To Incorporate as Many State Agencies as Possible

Goals of the ProgramGoals of the Program

P-Card Benefits

Quicker Payment to Vendors Reduces Preparation of Individual Purchase

Orders and Payment Vouchers Procurement Items are Received

Immediately Rebates for the State of New Mexico 1099 Reporting Form for P-Card is no

Longer Required

1099 Reporting Form

Department of Finance and Administration (DFA) - Financial Control Division (FCD) Statewide Procurement Card Policies and Procedures

State Agency Internal Policies and Procedures Procurement Code and State Statutes State Agency Agreements State Agency Cardholder Agreements

General Policies

Exemption from Attaching Supporting Documentation (i.e. Invoices and Receipts)

Exemption from Encumbrance Requirements – P-Card Only

Purchases Over $1,500 Must Comply with Procurement Code – State Contract/Price Agreements

Policy Exemptions

Eligible Purchases

May Be Used for Purchases Equal to or Under $1,500 and

Goods and Services Included in Price Agreements Approved by the State Purchasing Division of the General Services Department (GSD) - Over $1,500

Travel for State Employees Conducting Frequent Official State Business

Limitations/Restrictions

Vendors Must Accept Visa Pursuant to Approved MCCs “Procurement

Card Listing for Restricted Items” No Personal Charges No Cash Advances/Instruments Allowed No Cardholder Sharing P-Card Does Not Work at State Agencies

(For Example: State Printing)

Card Misuse

Cardholder is Responsible/Liable for Card and it’s Use

Seek Full Restitution Plus Interest Disciplinary Action, Up to and Including

Termination of P-Card Program DFA/FCD Prerogative to Revoke Card(s)

How Do I Use It?How Do I Use It?

Creation of a Internal Purchase Requisition

(IPR) for Approval Before Purchase

Same as a Regular Credit Card

Catalog Orders

Internet Orders

Does not Circumvent the Procurement Process

Internal Purchase Requisition Log

Division Requestor's Name Date

MFGUNIT SIZE COLOR Product # Price Total

Total: 0

OBJ ECT CODE ORG. CODE

I certify the proposed purchase represented in this document is authorized and is made in accordance with all State (and if applicable

Federal) legislation, rules and regulations. I further certify that adequate unencumbered cash and budget authority exists for this

proposed purchase and all other outstanding purchase commitments and accounts payable.

Cardholder Date

Approve □ Disapprove □Authorized Signature Date

DEPARTMENT OF FINANCE AND ADMINISTRATIONAdministrative Services Division

Internal Requisition Form

ITEM DESCRIPTIONRECOMMENDED VENDOR

QTY (REFERENCE - CATALOG, ETC)

AMOUNT CERTIFICATION AND APPROVAL

Payment of Charges

Consolidated Billing Statement Sent to the Agency

Single Fund Payment to Bank of America (BofA)

Payment Voucher for BofA Must be submitted to FCD within 15 days of BofA Statement Issued Date

NO LATE PAYMENTS

Prior to Making Payment to Bank of America

State Agency P-Card Administrator or a Designated State Agency Cardholder will Need to Reconcile to Receipts of all Charges Listed on the Monthly Billing Statement Prior to Sending a Payment Voucher to DFA/FCD for Processing a Payment to the Bank of America

Supporting Documentation Required to Make Payment for the P-Card

Payment Voucher Batch Report On the Invoice Information Tab of the Payment

Voucher, Card Number and \ Must be Entered Monthly Billing Statement Signed Affidavit for Receipts

Budget/Credit MonitoringBudget/Credit Monitoring

State Agencies Must Develop Internal Policies and Procedures on How the P-Card Will be Used

Budget Must Be Available Prior to Purchase

State Agencies Must Follow FCD’s Year-End Closing Instructions Related to the P-Card

WORKS Software is Available to Monitor Credit Limit and Purchase Activity

Travel General Polices

Agency Travel Policies and Procedures

Authorization from FCD and State Agency Program Administrator to use P-Card for Travel

Must Abide to the Per Diem and Mileage Act and DFA Rule 95-1 Regulations Governing the Per Diem and Mileage Act

Individual Travel P-Card

P-Card Issued Solely for State Employees that Conduct Frequent Travel for Official State Business

Limited to: Lodging, Renting Vehicles, Purchasing Airline or Common Carrier Fare, Baggage Fees, Meals and Gasoline for the Rental Car

Post Audit on P-Card

Financial Control Division Auditor will Conduct Post-Audit

Post Audits Conducted Monthly – However, FCD May at any Time Perform an

Internal Audit of an State Agency that Utilizes the P-Card

Post Audit Guidelines Post Audit Form

Why is a Post Audit Needed?

Verify Compliance with– DFA/FCD Policy and Procedures– New Mexico Procurement Code– New Mexico State Statutes

Monitor– Transaction Types– Amount of Transactions– Proper Allocation of Transaction Types

What Happens if there are Findings on a Post-Audit?

FCD Auditor Will Notify the State Agency’s Chief Financial Officer (CFO)

– Memo– Copy of the Check List Form– Copies of All Documentation in Need of

Correction

Keep in Mind and Consequences

FCD Reports to the Governor’s Office on the Status of the P-Card Program

Failure to Comply with any of the P-Card Policies and Procedures will Result in a Revoked P-Card Program for the State Agency

How to Get Started?

State Agency Must Establish Internal Policy and Procedures

State Agency’s Management Approval Assess Current Purchasing and Payment

Practices Decide on Cardholders Identify Spending Limit

Things to Remember

Read and Understand Your Policies and Procedures Be Aware of Restricted and Allowable Purchases Retain all Your Receipts Keep Transaction Logs Up-to-Date Review and Reconcile Your Monthly Statements

Timely for Payment Voucher Submission to FCD No Cardholder Sharing No Longer Required to Submit the 1099 Reporting

Form for P-Card

Questions?

Useful Websites

Financial Control Division– http://

www.nmdfa.state.nm.us/Financial_Control.aspx State Purchasing Division

– http://www.generalservices.state.nm.us/statepurchasing/

New Mexico Administrative Code– http://www.nmcpr.state.nm.us/nmac/