WEST VIRGINIA DEPARTMENT OF TRANSPORTATION
ADMINISTRATIVE PROCEDURES
VOLUME VI, CHAPTER 5

1. INTRODUCTION

Effective: 9/1/2004

The purpose of the Purchasing Card Program is to provide an efficient, cost-effective method for the payment for goods and services received in small dollar amounts. Purchases under this program are made by using a State Purchasing Card (credit card). These cards are issued in the name of an employee and the State of West Virginia. The state is responsible for payment of all authorized State Purchasing Card purchases.

Using the Purchasing Card simplifies the purchasing process since each purchase is billed to the Purchasing Card account and at the end of each billing period (calendar month) only one "statement" or master bill per organization is processed for payment instead of processing numerous separate invoices. For organizations with small purchasing responsibilities and with authority to use the Purchasing Card, participation in the Purchasing Card Program is not optional.

Only authorized DOT purchases are permitted. Authorized means:

1. the items and services are for the organization to perform an official work function;
2. the quantities purchased are justified to perform the required work;
3. the items or services are within the Cardholder's range of authority as assigned by management;
4. all purchasing policies and procedures are obeyed and;
5. only "best-value" purchases are made.

PURCHASES OF GOODS OR SERVICES NOT FOR WVDOT AND PURCHASES FOR PERSONAL USE ARE PROHIBITED!

Considering the power of this program, Cardholders must take extra care to fully comply with all applicable policies, procedures and laws. Use of the Purchasing Card is subject to the provisions of the West Virginia Government Ethics Act of 1989, as amended, which specifies unethical employee conduct such as, accepting gifts, gratuities, kickbacks (use of position for private gain) and therefore, unlawful actions. Employees should review Volume III, Chapter 23, Employee Ethics of the DOT Administrative Procedures for more information.

Each employee assigned a purchasing card is responsible for its use. The Cardholder's supervisor shares in the responsibility to properly use the Purchasing Card and may also be held responsible for any misuse.

Only employee Cardholders (those named on a credit card) may make Purchasing Card purchases or may authorize purchases for that Cardholder's Purchasing Card account. The card cannot be used by another individual and the Cardholder's card number should not be accessible to any person other than the Cardholder and the Purchasing Card Coordinator for the individual's agency or organization.

Cardholders must be careful to comply with the rules and to diligently seek the best value for the State’s money and to not let the Card’s convenience of use circumvent good purchasing practices.

The online State of West Virginia's Purchasing Card Policies and Procedures, published by the State Auditor’s Office, may be accessed via this chapter's online version on the DOT Intranet, Administrative Procedures page.

2. PURCHASING CARD POLICIES

Effective: 7/1/2006

1. PURCHASING CARD ROLES AND RESPONSIBILITIES

It is important that segregation of duties exists within the administration of the Purchasing Card program. For example, to ensure accountability, all Purchasing Card transactions must be reviewed and approved by the Cardholder's supervisor.

1. The DOT Business Manager will designate an employee of Transportation Finance Division, Procurement Section as the DOT Purchasing Card Coordinator.  All Purchasing Card correspondence and questions intended for the State Auditor's Office or the contract financial institution (bank) will be submitted to the DOT Purchasing Card Coordinator for processing.

The DOT Card Coordinator's responsibilities include:

1. processing new card applications and account changes only for employment classifications authorized for the Purchasing Card (see Appendix B) and for others approved by the DOT Business Manager;
2. aiding in getting disputed charges resolved;
3. aiding in getting a valid receipt from the state contract card company (financial institution) when the vendor does not provide it;
4. authorizing lost card replacements (to the financial institution);
5. receiving cancelled cards for disposal and suspending cards of employees on leave of absence when notified by the organization Purchasing Card Sub-Coordinators;
6. implementing changes to the credit limits for the Cardholders upon gaining the approval of the Business Manager;
7. reviewing the contract financial institution's card account activity reports with the organization Purchasing Card Sub-Coordinators and determining what Cardholder account adjustments are needed;
8. providing guidance and oversight to the organization Purchasing Card Sub-Coordinators,
9. assessing needs, developing and providing Purchasing Card training for Cardholders, supervisors and organization Sub-Coordinators;
10. maintaining the DOT Purchasing Card training records;
11. completing the annual State Auditor's Card Coordinator's training and receiving certification;
12. maintaining a copy of all DOT Cardholder Applications/Agreements and Maintenance forms and;
13. initiating action to immediately cancel an employee's Purchasing Card if circumstances warrant.

2. Each employee Cardholder’s responsibilities include:

1. making only authorized purchases with the best value and following all State and DOT purchasing policies and procedures;
2. logging all purchases on the Cardholder’s Log;
3. retaining the credit card charge slip, a valid vendor’s receipt (see section II., F.), the Cardholder’s Log and all other documentation for each purchase for three years and until audited by Transportation Auditing;
4. reconciling the monthly credit card "Memo Statement" to the Cardholder’s Log;
5. keeping the card secure and promptly reporting any unauthorized use or card loss/theft and;
6. relinquishing the card to his or her supervisor upon request, upon termination, transfer or change in job responsibilities.

3. Each supervisor's (of Cardholders) responsibilities include:

1. reviewing each Cardholder's transactions at least once each week to confirm that only authorized purchases were made and that procedures were followed and signing and dating each purchase receipt authorizing the purchase;
2. questioning the Cardholder about improper purchases or violations and notifying the agency or organization Card Coordinator as required;
3. notifying the supervisor's agency or organization Card Coordinator when a Cardholder goes on a leave of absence and;
4. reviewing, signing and dating the reconciled Cardholder log(s) each month certifying that all purchases were authorized.

4. The DOT Business Manager, Finance Director and the DOT Purchasing Card Coordinator will designate Purchasing Card Sub-Coordinators.  The agency's or organization's chief financial officer (Comptroller) will normally be selected as that organization's Purchasing Card Sub-Coordinator. A designee may be appointed who is a direct subordinate of this manager and who does not have a Purchasing Card.

The Purchasing Card Sub-Coordinator's responsibilities include:

1. reviewing and implementing controls to ensure that purchases by Cardholders are in compliance with State and DOT policies and procedures;
2. reviewing Cardholder applications and other related information of employees in authorized employment classifications that are recommended to be a Cardholder for their organization;
3. ensuring that the Cardholders receive the required training and that they understand their purchasing responsibilities;
4. training the supervisors of Cardholders on the purchasing policies and Purchasing Card Procedures to ensure that they understand their purchasing and control responsibilities;
5. maintaining a record of Cardholder and supervisor training and sending updates to the DOT Purchasing Card Coordinator and requesting training from Transportation Finance including Cardholder visits to the Central Office to achieve a better understanding of how the Purchasing Card Program should be administered;
6. processing new card applications and account changes to the DOT Purchasing Card Coordinator;
7. notifying the DOT Purchasing Card Coordinator to suspend a card for Cardholders on a leave of absence;
8. aiding in getting disputed charges resolved;
9. aiding in getting a valid receipt from the state contract card company when the vendor does not provide it;
10. requesting lost card replacements;
11. receiving canceled cards for disposal and sending them, cut into pieces, to the DOT Card Coordinator in an envelope marked "Confidential";
12. requesting changes to the credit limits of Cardholders;
13. establishing a REMIS Purchase Master each month for Purchasing Card transactions;
14. ensuring that all statements are reconciled and processed for timely payment;
15. initiating action to immediately cancel a Purchasing Card upon gaining approval of the agency or organization manager (Highways' Division Director or District Engineer);
16. performing the monthly review requirements and applying and documenting corrective measures (including additional training) for problems;
17. maintaining a file on each Cardholder to include a copy of the Purchasing Card Application/Agreement, notices to the Cardholder and their supervisor about problems, corrective measures and required actions, etc., so that the file reflects the validity and status of the card as well as the record of the Cardholder as an applicant and user of the card;
18. receiving a copy of all correspondence, policies and procedures sent to Cardholders;
19. completing the annual State Auditor's Card Coordinator's training and receiving certification and;
20. providing oversight to the agency's or organization's Purchasing Card program.

5. Transportation Finance Division's responsibilities include:

1. reviewing all Purchasing Card audit reports and monthly Card Coordinator reports to assess the need for and to take corrective action, when required;
2. reviewing all State and DOT Purchasing Card Procedures for changes, advising Information Services Division of needed revisions and ensuring that employees involved in the Purchasing Card Program are properly notified;
3. attending meetings, seminars, etc., provided by the State Auditor's Office and the Division of Purchasing on the Purchasing Card Program;
4. scheduling Purchasing Card presentations and training at Comptroller's Meetings, staff meetings, DOT Financial Management Conferences and as otherwise determined in consultation with Transportation Auditing Division and DOT management;
5. preparing reports and analyses of individual Cardholder activity, Cardholder classification activity, organization activity, vendor activity, etc., to compare to standards so that trends and potential Cardholder misuse may be identified and corrective measures taken and;
6. performing these analyses monthly, quarterly, semi-annually and annually and submitting a summarization of findings and corrective actions to the Transportation Business Manager.

6. The Transportation Business Manager will provide a written report each quarter to the Secretary of Transportation and the Commissioner/Director of the DOT agencies (with Cardholders) summarizing findings and corrective actions resulting from analyses and reports of Cardholder activity.
7. The State Auditor’s Office and Transportation Auditing Division will periodically review each Cardholder’s and each organization’s compliance with all policies and procedures of the State Purchasing Card Program and the DOT Administrative Procedures and policies. Transportation Auditing will:

1. audit Highways' county maintenance, district shops and other selected district organizations with Cardholders once every two to three years;
2. report findings to the Secretary of Transportation, the Business Manager, the DOT Purchasing Card Coordinator, Finance Division, the audited agency or organization and other appropriate top-level management and;
3. take appropriate follow-up actions to ensure that Finance Division's and management's solutions to findings with statewide implications are achieved and are timely.

2. ORGANIZATION STANDARDS FOR CARDHOLDER POSITIONS

Effective: 9/1/2004

1. The assignment of State Purchasing Cards is limited to:

1. permanent, active, full-time employees of an authorized Purchasing Card classification (see Appendix B) and;
2. organizations that regularly make small dollar amount purchases.

1. Organization Purchasing Card Sub-Coordinators will recommend the per transaction limit and the monthly limit for new Cardholders.
2. In setting a Cardholder's buying limits, the Sub- Coordinator should consider the types of purchases and the volume of purchases the Cardholder will make and recommend transaction and monthly buying limits accordingly. Typically, the monthly limit is set to twice the total purchase amount normally expected for a month to provide time for statement processing and receipt of payment.
3. Annually, the DOT Purchasing Card Coordinator will review the Contract Card Vendor's buying limit recommendations for each Cardholder and may adjust the limits after consultation with the organization Sub-Coordinators.

3. Those organizations that regularly make small purchases for themselves and for other DOT organizations are permitted multiple cards (one card per Cardholder employee) with buying limits of $50,000 per month each.
4. Exceptions to these guidelines will be considered by the DOT Business Manager upon submitting written justification with the Purchasing Card Application.

2. The assignment of State Purchasing Cards to divisions within the Division of Highways is limited to:

1. Engineering; Equipment; Information Services; Maintenance; Materials Control, Soils and Testing and Traffic Engineering.
2. All other divisions within Highways must coordinate their Purchasing Card purchases through the Procurement Section of Finance Division or one of the other organizations as appropriate (such as Information Services for information technology). For services, the organization that requires the purchase will be responsible for the Agreement; only the payment of invoices will be Finance Division's responsibility.
3. Exceptions will be considered as referenced in item II.B.1.d.

3. The assignment of State Purchasing Cards to districts within the Division of Highways is limited to:

1. seven cards for all of a district's headquarters organizations with the organizations that may be selected being:
   --57, --58, --60, --62, --66, --67, --70,
   --79, --80, --85, --97, --98 and –99;
2. two or less cards for each county organization;
3. one or no cards for each Interstate or APD organization.
4. Exceptions will be considered as referenced in item II.B.1.d.

4. For district organizations without a Cardholder or if a district organization's Cardholders are on leave, Purchasing Card purchases will be coordinated through the district maintenance or equipment storekeepers.

3. CARDHOLDER QUALIFICATIONS AND TRAINING

Effective: 9/1/2004

1. The Department of Transportation recognizes only a specific listing of covered classifications that are eligible to be assigned and use the Purchasing Card. The eligible classification titles are listed as Appendix B.
2. When advertising job vacancies that require the use of a Purchasing Card, organizations must clearly state in the posting that the employee must qualify for and use the State Purchasing Card.
3. The Business Manager and the Director of Transportation Finance Division (or their designees) will evaluate all DOT Cardholders' performance to ensure that Cardholders are meeting standards.

1. The objectives of this review are to identify poorly performing Cardholders and to make recommendations for corrective actions.
2. The evaluation of Cardholders will include a periodic review of the Cardholder's performance through the monthly Purchasing Card Coordinator's reviews and audits.
3. The review criteria may include, but shall not be limited to, Cardholders that:

1. repeatedly demonstrate poor judgment in using the Purchasing Card;
2. have policy and procedural violations;
3. have rejected training and;
4. previously had their Purchasing Card cancelled or have been counseled on misuse.

4. Interviews with the Cardholder and supervisor will be conducted before corrective action is taken.

4. Purchasing Card training is mandatory for all Cardholders, supervisors of Cardholders and Purchasing Card Coordinators and Sub-Coordinators.

1. All new Cardholders and all new supervisors of Cardholders will:

1. attend the State Auditor's training class prior to receiving the Purchasing Card;
2. complete the approved DOT Cardholder or supervisor training and;
3. jointly review the DOT Purchasing Card Procedures with their supervisor and the organization's Purchasing Card Sub-Coordinator prior to utilizing the card.

2. Existing Cardholders will:

1. attend the State Auditor's Cardholder Refresher training (biennially) when this training is scheduled and;
2. attend the DOT's Cardholder Refresher training (annually) when this training is scheduled.

3. Existing supervisors of Cardholders will be scheduled for update or refresher training as deemed necessary by the organization's Sub-Coordinator in consultation with the DOT Purchasing Card Coordinator.
4. Organization Sub-Coordinators will complete the State Auditor's training and receive certification (annually) and will attend a session of all DOT training.
5. Employee attendance records for any Purchasing Card training will be exchanged between the DOT Purchasing Card Coordinator and the organization Sub-Coordinators.

4. ALLOWED PURCHASES

Effective: 9/1/2004

1. The Purchasing Card is restricted to authorized purchases only. (See Introduction for guidance on "authorized" purchases.)
2. To avoid "non-use" fees from the State Auditor, you must make all allowed purchases with the Purchasing Card unless the vendor refuses the (VISA) card.
3. The Purchasing Card is limited to transactions of up to $2,500, except for the following:

1. maintenance expenditures (defined as: "Services to maintain an item of equipment or computer software, including parts incidental to providing the service"), which are limited to $10,000 annually and;
2. utilities, which have no limits.

4. All purchasing rules must be followed, such as:

1. not splitting (stringing) purchases to bypass the dollar limits;
2. getting needed items from internal organizations or state agencies before buying them from a vendor (organization storerooms, Surplus Property, Prison Industries, Sheltered Workshops, etc.);
3. purchasing from statewide and agency contracts is required when the items or services are on contract;

1. Issue Blanket Release Order, Form WV-39, or equivalent, as required by contract ordering procedures.
2. You must use the card unless the contract vendor doesn't accept the Purchasing Card, doesn't sell at the contract price or the contract requires a Purchase Requisition, Form WV-35.

4. securing verbal bids for purchases over $1,000 up to and including $5,000, and documenting bids on Form DOT-105B; and
5. getting all prior approvals before purchasing.

5. Items purchased for Hospitality must meet the guidance of the Hospitality Object Code (042), must be authorized and must be documented on a "Hospitality Documentation" form. This documentation will be maintained on file at the purchasing organization in accordance with section "III. K." of this chapter.

5. DISALLOWED PURCHASES AND CHARGES

Effective: 9/1/2004

The following lists the goods and services prohibited from purchase and the charges prohibited from payment with the Purchasing Card. Further guidance is provided with the disallowed object code listing in Appendix A of this chapter.

1. Alcoholic beverages
2. Building leases
3. Cash advances
4. Cash or cash credits
5. Fuel - gasoline and diesel that is travel related
6. Insurance
7. Legal services
8. Tax reportable services (IRS Form 1099 filing)

Exception: You may buy services from WVFIMS listed vendors with the following criteria.

• Vendor Status – "Y"
• Business Designation – "CO," "NO" or "GO"
• Mail Response Date – greater than "01/01/01"

Once you verify that a vendor meets the criteria, you are not required to re-verify services vendors for subsequent purchases. If there are any questions, contact your organization’s Chief Financial Officer or Transportation Finance Division, Procurement Section.

9. Telephone services (except for cell phone and pager services)
10. Travel and related expenses
11. Weapons
12. West Virginia Sales Tax (out-of-state vendors may charge sales tax)
13. Encumbered Purchasing Documents

6. VALID RECEIPTS

Effective: 9/1/2004

A valid receipt is required for all transactions. It must contain specific information and meet certain conditions, but may be in any form. A valid receipt is a detailed cash register receipt, invoice, receiving report and/or a detailed purchasing card charge slip. A shipping ticket or an order form may be acceptable if the following information is provided. A valid receipt must:

1. list each item and its unit cost, quantity and total ("Misc." or "Merchandise" is unacceptable;)
2. state that the sale was by credit card (the words "Visa," "Credit Card," "Purchasing Card," etc., are acceptable;)
3. show a total amount and indicate if sales tax was charged and;
4. be marked "No Balance Due" or "Paid."

If the receipt does not clearly describe the item, the Cardholder must provide that information. To ensure proper documentation, the Cardholder must write the missing information on the receipt or on the Cardholder's Log.

Authorized receiver requirements must be observed, as explained in section "III.E.3.d." of this chapter.

7. CLOSING DATE FOR CHARGES, statement Reconciliation, billings and Payment Processing

Effective: 9/1/2004

1. The closing date for charges is the first business day of the next month. All billings are monthly.

• Therefore, any charges received by the contract purchasing card company (VISA) through the first workday of the following month will be on the monthly billing.

2. A monthly "Memo Statement" (not an invoice) is received by each Cardholder on or about the 10^th of each month. It lists each billed charge for the preceding month.

• The Cardholder employee will promptly reconcile his or her monthly purchases to the Purchasing Card "Memo Statement."
• Cardholders may view their transactions before receiving their Memo Statement on FIMS Inquiry (online), providing they have authorization. FIMS Inquiry authorization is established by contacting the DOT Finance Division Director’s Office.

3. A monthly "Statement" (master invoice) is sent shortly after the "Memo Statement." It lists each charge billed for all the Cardholders for the preceding month.

1. A "Statement" for each subordinate organization will be mailed to a central address, such as Highways' district headquarters, which will require that office to send the "Statement" to the subordinate organization for payment processing.
2. The organization will promptly reconcile all monthly purchases to the Purchasing Card "Statement."
3. The organization’s monthly REMIS Purchasing Card Purchase Master must be adjusted to show an "Amount Owed" equal to the invoice amount on the organization’s Purchasing Card "Statement."
4. No adjustment to the Total Amount of the "Statement" is permitted unless authorized in writing by the state contract purchasing card company.

4. Each organization’s monthly "Statement" must be processed to Transportation Finance, Accounts Payable Section at least seven days prior to the "Statement" due date.

1. Meeting this deadline will avoid the loss of prompt payment discounts as provided in the Purchasing Card contract.
2. Failure to forward "Statements" in a timely manner may result in cancellation of the agency’s/organization’s or Cardholder's participation in the program.

   

8. REMIS PURCHASE SYSTEM

Effective: 9/1/2004

1. Establish one REMIS "SCO" Purchase Master each month for the DOT organization level that receives a "Statement."
2. All Purchasing Card purchases are entered, processed and paid against the REMIS Purchase Master established for the month in which they are billed.
3. The correct WVFIMS vendor number must be used for Purchasing Card payments.
4. Purchase Receipt "PR" entries will be entered on a daily basis as purchases are made. Use care to ensure that the "PR" entries are made to the REMIS Line Item Master established for the Cardholder.

9. VIOLATIONS AND PENALTIES

Effective: 9/1/2004

1. Any violations of these procedures, applicable polices and laws may result in disciplinary action (see DOH Administrative Operating Procedures entitled, Disciplinary Action, Suspension and Dismissal), while intentional violations may result in criminal charges and prosecution in accordance with WV Code §12-3-10b.
2. Any instance of misuse or serious or severe violations of the Purchasing Card Policies and Procedures must be documented and reported to Transportation Finance, Procurement Section, which will forward the information to the State Auditor’s Office, Purchasing Card Program manager.

3. PURCHASING CARD PROCESSES

Effective: 9/1/2004

1. NEW CARD APPLICATIONS

1. The employee/card candidate completes the Purchasing Card Application and the Cardholder Agreement forms.
2. The completed application and agreement forms are given to the organization manager for review and approval signature before they are sent to the organization Purchasing Card Sub-Coordinator.
3. The Sub-Coordinator will recommend the per transaction and monthly buying limits of the Cardholder based upon the expected amount of purchasing by the new Cardholder.
4. The Sub-Coordinator will retain a copy and transmit the original completed forms to the DOT Purchasing Card Coordinator, Transportation Finance Division.
5. Upon receipt, the DOT Purchasing Card Coordinator reviews and if correct, approves, files a copy and processes the original application and the agreement to the contract purchasing card vendor through the State Purchasing Card Administrator. At this point, the Coordinator will schedule the State Auditor's and the DOT's training (as applicable) for the prospective Cardholder. Training must be completed before the card will be issued.
6. The Purchasing Card will be mailed directly to the Cardholder, when issued. The Cardholder employee then signs the reverse side of the card. The Cardholder is not to call the activation number on the front of the card, but must contact the organization Purchasing Card Sub-Coordinator.
7. Only the organization Sub-Coordinator has the four-digit PIN number and will call the activation phone number to activate the new Cardholder's card.
8. The organization Sub-Coordinator will schedule and conduct a joint review of the DOT Purchasing Card Procedures with the Cardholder and their supervisor prior to utilizing the card.

2. LOST/STOLEN CARD REPORTING

   Effective: 9/1/2004

1. The Cardholder, following a thorough search for his or her lost or stolen card, will immediately call the financial institution, or after 5:00 p.m., (800) VISA911.

• Reporting must be done within 24 hours of card loss to ensure limited liability ($50).

2. The Cardholder must then complete and submit a State of West Virginia Purchase Card Maintenance Form to the DOT Purchasing Card Coordinator (in Transportation Finance Division), reporting the card loss and requesting a replacement card.
3. The DOT Purchasing Card Coordinator will document the lost/stolen card reporting, submit the Maintenance Form to the Business Manager for approval, and upon approval files a copy of the form and forwards the original to the State Purchasing Card Administrator.

All Cardholder name changes, address changes, and account cancellations must be requested on the State of West Virginia Purchase Card Maintenance Form.

1. The Cardholder completes and submits the form to the DOT Purchasing Card Coordinator (in Transportation Finance Division).
2. The Coordinator reviews the form, signs it (if approved), and submits it to the Business Manager for approval.
3. Upon receiving the Business Manager's approval, the DOT Purchasing Card Coordinator files a copy of the form and forwards the original to the State Program Administrator, who effects the change(s).

4. ESTABLISHING REMIS PURCHASING CARD PURCHASE MASTERS

Effective: 9/1/2004

1. At the beginning of each calendar month the organization manager, chief financial officer or designee will:

1. establish a REMIS "SCO" Purchase Master for the new billing cycle (calendar month) for each organization level that receives a "Statement," and
2. establish one REMIS Line Item Master for each employee assigned a Purchasing Card within the organization (including all subordinate organizations included in the "Statement").

2. Each REMIS "SCO" Purchase Master for the Purchasing Card is entered with:

1. A Purchase Master Number of 11 characters with the following format:

• VISA,
• three characters for the month,
• the last two digits or the significant two digits of the organization number, and the last two digits of the calendar year. Example: V I S A   O C T  5 0  5 represents the number for Motor Vehicles for October of 2005,
• while VISAJAN588 represents the number for Finance Division for January of 2008.

2. Change Accounting Info. = "Y".
3. Expense Edit = "N".
4. Total Amount = "$0.00".

3. The purchases of each Cardholder are received (REMIS "PR" entries) against the organization’s Purchasing Card "SCO" Purchase Master and assigned Line Item Master, after each purchase during the billing cycle.

5. MAKING PURCHASING CARD PURCHASES

Effective: 9/1/2004

1. Identify Purchase Need and Secure Prior Approval

1. The buyer/Cardholder checks vendors for availability, pricing, and delivery costs and delivery arrangements (F.O.B. destination is required).
2. The buyer/Cardholder then obtains purchase approval from the appropriate authority(ies) (check Chapter 4 of this volume and your agency/organization policies).

• Form DOT-105, Small Purchase Requisition/Receipt Record may be used to document the purchase and the approval(s) or the agency/organization may specify a different form or method to support this function.

2. Place Order with Vendor

1. The purchasing organization’s buyer/Cardholder places the order with the vendor by phone, fax (may use Form DOT-105F, Fax Order), Intra/Internet, or makes a walk-in purchase.

• Cardholder account numbers are not to be transmitted via unsecured Inter/Intranet.

For all purchases, the buyer/Cardholder must exchange:

1. his or her Credit Card Number (vendor may request the credit card from the Cardholder for walk-in purchases) and;

2. the agency’s Tax Exempt Number (you must provide a tax-exempt form upon vendor request).

2. Also, for shipped orders, the buyer/Cardholder must exchange the following information:

1. the full delivery information,
2. the exact shipping costs (if exact is unavailable make sure that the total amount, including shipping, does not exceed the Cardholder’s limit of $1,000 or $2,500 per transaction) and;
3. a sales receipt must be sent inside the package or, if it cannot be included in the package, mailed separately.

3. Receive/Pick-Up Goods

1. The buyer/Cardholder or designee inspects goods/materials for quality, quantity and damage.
2. The buyer/Cardholder or designee then checks the credit card ticket (before signing if a walk-in purchase) and the vendor’s sales receipt/counter ticket for accuracy.
3. Buyer/Cardholder retains his or her copy of the credit card ticket and signs and dates the sales receipt/invoice and attaches these documents to the Cardholder’s Log. The Cardholder must ensure that the Cardholder’s Log is kept secure and private. If an electronic on-screen version is used, password protection may be used for security.

4. Regarding authorized receiver requirements, if the Cardholder actually receives the goods or commodities purchased, he or she is only required to sign the delivery ticket, sign the monthly log, and attach the ticket to the log. If, however, someone other than the Cardholder receives the goods or commodities, the actual receiver must certify the delivery ticket and forward it to the Cardholder, who will attach it to the log. Alternately, the actual receiver may produce and sign a DOT-5 (receiving report) and forward it to the Cardholder, who will attach it to the purchase card log.

4. Record Purchase Receipt

1. The Cardholder records the transaction on the Cardholder’s Log. The log entry must include the assignment of a unique Transaction Number to represent that purchase.

• The Transaction Number (five digits) begins with two digits for the month and ends with three digits consecutively assigned from 001 from the beginning of each month. Remember to coordinate this number assignment between all Cardholders of an organization (keep a log or assign a block of numbers to each) to prevent duplicating these numbers.

2. The Cardholder gives the computer entry clerk the written documentation necessary to enter the REMIS Purchase Receipt "PR" transaction.

• Documentation for "PR" entry may be the Small Purchase Requisition/Receipt Record, Form DOT-105, a copy of the vendor’s sales receipt with notations on accounting, inventory, etc., or other form specified by the agency or organization’s internal rules.

3. The computer entry clerk enters the purchase to the organization’s assigned Purchasing Card Purchase Master through the REMIS, HW-50, Purchase Receipt, "PR" transaction.
4. Enter the REMIS "PR" to:

1. the Purchasing Card Purchase Master for the current month;

2. use the buyer/Cardholder assigned Transaction Number for the "PR" Document Number to identify the purchase and;

3. the Line Item Number assigned to the buyer/Cardholder.

• Enter the name of the vendor followed by a description of what was purchased in the "Description" field to aid in reconciliation.

5. Following "PR," the computer entry clerk initials and dates the purchase requisition/receipt form (Form DOT-105 or other) and files the documentation.

6. SUPERVISOR'S WEEKLY REVIEW OF PURCHASES

Effective: 9/1/2004

1. At least once each week, Cardholder supervisors will collect and review the transaction documents of each of their Cardholders to confirm:

1. that all transactions are known and are "authorized";
2. that the Cardholder Log is being maintained accurately;
3. that required documents such as, invoices, receipts and delivery tickets are retained and comply with information requirements;
4. that all receipts are signed and dated by the Cardholder.

2. Supervisors will document any discrepancies found and will advise the Cardholder of corrective actions.
3. Supervisors will then sign and date each Purchasing Card receipt indicating review and acceptance of the transaction.

7. RECONCILING THE PURCHASING CARD STATEMENT

Effective: 9/1/2004

1. The Cardholder will:

1. Compare each transaction of the Purchasing Card "Memo Statement" to the Cardholder's Log, and to the purchasing card tickets and sales receipts. Also, REMIS TSO Report 404, Credit Card Purchase Reconciliation may be printed to aid in this process.
2. Record "R" for all reconciled transactions and "D" for any disputed transactions in the column labeled "R/D/C" on the Cardholder's Log.
3. For transactions not listed on the month’s memo statement:

1. record "C" in the "R/D/C" column, signifying that the charge is "carried-over" to next month’s statement," and
2. record the transaction at the beginning of the Cardholder's Log for the following month.

4. Then add and record a Grand Total of all transactions listed as "R" or "D." This total must match the total amount of the Purchasing Card "Memo Statement."

5. Then sign and date the log, attach the associated purchasing card tickets and sales receipts, make and retain a copy and give the log and purchasing documentation to the organization manager, supervisor or designee.

2. The Organization Manager/Supervisor will:

1. Review all transactions listed on the Purchasing Card "Memo Statement(s)" and the Cardholder's Log(s) to ensure that all purchases were authorized, recorded and documented in accordance with DOT and agency/organization rules.
2. The organization manager/supervisor then signs and dates the Cardholder's Log(s) and gives the log and all purchasing documentation to the organization’s clerk who files the originals and sends one copy of each Cardholder's Log and "Memo Statement" to the organization's Purchasing Card Sub-Coordinator.
3. Document, in writing, areas of concern.

8. PURCHASE CARD COORDINATOR'S MONTHLY REVIEW OF PURCHASES

Effective: 9/1/2004

1. Following the reconciliation of the monthly Purchasing Card Statement, each organization's Purchase Card Sub-Coordinator (or suitable designee as defined in II.A.4.) will perform a review of their Cardholders' activity and will log these reviews on the P-Card Coordinator's Cardholder Log.
2. The monthly review is intended to provide assurance that Cardholders and their supervisors are complying with polices and procedures and to identify significant problems for timely resolution.
3. Each Cardholder must submit a copy of their reconciled Cardholder Log and Cardholder Statement to the Card Sub-Coordinator (see III.G.2.b.).
4. First, the Card Sub-Coordinator will perform a general review of the Cardholder Logs, Statements and REMIS Purchase Receipt entries and will complete the P-Card Logs and Reconciliations - Monthly General Review answering all questions for each Cardholder.

1. Any problems and the corrective action to be taken must be documented and addressed in writing to the Cardholder and supervisor.
2. All documentation of the problem and actions taken will be maintained in the Cardholder's file.

5. Second, the Card Sub-Coordinator will then perform a detailed review by selecting a sample of approximately 20% of their Cardholders with a minimum of five Cardholders being selected (if available) and will complete the Monthly Detailed Review of P-Cardholders.

1. Base the selection of Cardholders for detailed review upon:

1. the results of previous reviews;
2. the results of previous audits and;
3. the time since the last Cardholder review or audit;
4. however, a detailed review must be performed for each Cardholder at least once in any 12 month period.

2. Card Sub-Coordinators will request a copy of all P-Card purchase documentation for the month from the selected Cardholders.
3. Card Sub-Coordinators must notify the DOT Card Coordinator and Transportation Auditing first, for any significant problems or indications of misuse or abuse of the Purchasing Card.
4. All problems and the corrective action to be taken must be documented and addressed in writing to the Cardholder and supervisor.
5. All documentation of the problem and actions taken will be maintained in the Cardholder's file.

6. Following completion of the general and detailed reviews, the Card Sub-Coordinator will:

1. update the P-Card Coordinator's Cardholder Log;
2. prepare a cover letter to the Director of Transportation Finance to transmit documents (electronically as much as possible) and answer the following:

1. Are Cardholders and supervisors generally following procedures (results of the general review)?
2. How many detail reviews were done for the month and what specific problems were noted?
3. Any problems with specific vendors noted?
4. Any referrals to Transportation Auditing or investigative personnel?
5. Any disciplinary action requested or taken as a result of the reviews?
6. Transmit (by e-mail) a copy of the month's P-Card Logs and Reconciliations - Monthly General Review.

3. Retain copies of all monthly review documentation.

9. PAYMENT PROCESSING

Effective: 9/1/2004

1. The purchase organization’s clerk confirms that:

1. the Grand Total of each Cardholder’s Log matches the Total Amount of the Purchasing Card "Memo Statement,"
2. the combined Total Amount of all the organization’s Purchasing Card "Memo Statements" matches the Total Amount payable listed on the organization’s Purchasing Card "Statement" (Invoice), and
3. the "Amount Received" recorded on the organization’s REMIS Purchasing Card Purchase Master matches the Total Amount listed on the organization’s Purchasing Card "Statement."

2. If required, the purchase organization’s clerk documents and makes needed REMIS receipt record adjustment entries after consulting with the supervisor and buyer/Cardholder.

• Use REMIS, HW-50, Reconcile VISA, "RV" to move transactions that were not billed on the current month’s statement (marked "C" on the Cardholder's Log) to next month’s Purchasing Card Purchase Master. Also, use "RV" to move any receipts that have already been entered in next month's master that were billed in the current month's statement.

3. The purchase organization’s clerk then prepares the Purchasing Card "Statement" (Invoice) for payment processing by:

1. applying the “Payment Stamp” to the first page (includes the payment stub) of the Purchasing Card Statement and completing the required information and;
2. making a copy of the first page of the Purchasing Card Statement and filing it with a copy of the Transmittal and all of the organization’s monthly Purchasing Card transaction documentation.

4. The Invoice (first page with payment stub) is then mailed to Transportation Finance Division by completing Form DOT-104, Transmittal and attaching the invoice.

1. Invoices should reach Transportation Finance no later than the 16^th of each month.
2. Any disputes should be handled in accordance with section "H".
3. Clearly stamp on the front of Form DOT-104, "P-CARD."
4. The purchase organization clerk may send Form DOT-104 directly to Transportation Finance or your agency/organization may require the clerk to send the payment stub (and possibly a copy of the purchase documentation) to your Chief Financial Officer, Storekeeper or other designee for further processing to Transportation Finance.

   

10. RESOLVING DISPUTES

Effective: 9/1/2004

1. Upon first identifying a questionable charge, the Cardholder will contact the vendor. A questionable charge may result from:

1. not yet receiving the goods/services;
2. unidentifiable purchase (no record of the charge - fraudulent use);
3. altered charges (quantity and/or dollar amounts different than expected);
4. defective goods;
5. credits not yet received; and
6. West Virginia Sales Tax charged (state agencies do not pay WV Sales Tax, but see "bullet" under "3.b.", below).

2. The Cardholder may carry over (move to next month’s log) any goods not received or credits not processed, but these must be resolved or placed into dispute within 60 days of the statement date on which the disputed transaction first appeared.
3. If the Cardholder is unable to get results from the vendor, then he or she completes a Purchasing Card Dispute Form, sends a copy to the DOT Purchasing Card Coordinator, mails the original form to the State Purchasing Card Coordinator, and retains a copy.

1. A Purchasing Card Dispute Form will not be processed until the charge appears on the statement, although purchasers may seek resolution with the vendor before then.
2. A Purchasing Card Dispute Form will not be processed for charges of West Virginia Sales Tax of less than $5.00, but the purchaser must attempt to resolve the matter with the vendor.

4. Cardholder then attaches his or her copy of the Purchasing Card Dispute Form to the Cardholder's Log.
5. All disputes will be resolved on subsequent statements.
6. NO ADJUSTMENTS TO THE STATEMENT FOR DISPUTED CHARGES ARE ACCEPTABLE UNLESS AUTHORIZED IN WRITING BY THE FINANCIAL INSTITUTION.

• Send the original and one copy of the written authorization for adjustment along with the "Statement" to Transportation Finance Division for payment processing.
• Also, prepare and submit to Transportation Finance Division a written explanation of why and how the amount being paid (if different from invoice) was calculated.

11. RECORD RETENTION

Effective: 9/1/2004

Purchase organizations are required to retain documentation of Purchasing Card transactions. All Purchasing Card records/documents must be retained for three years and until audited by the State Auditor's Office and by Transportation Auditing. Longer retention of these documents may be required due to the requirements of federal funding or other policies.

4. APPENDICES

1. DISALLOWED DOT OBJECT CODES - STATE PURCHASING CARD

Effective: 9/1/2004

001	series	Personal Services
010	series	Employee Benefits
022		Rental Expense
024		Telecommunications (except for cell phone and pager services)
026		Travel Expenses
027		Computer Services
032		Fire, Auto, Bond and Other Insurance
051		(Miscellaneous) Do not use for Temporary Easement Right of Way expenses. All other Miscellaneous may use the "P-Card.".
074		Building Equipment
080		Payment of Taxes
081		Payment of Claims
083		Grants, Awards, Scholarships, and Loans
088		Bond Sale Costs
089		Bank Costs
092		Building Construction
093		Reimbursement
094		Miscellaneous Land Expenses
096		Other Interest and Penalties
120		Contractor Payments for Capital Asset Projects
128		Federal Subrecipient Disbursement
149		Land Purchases
150		Building Purchase
151		Debt Service (Bonded – Principal)
152		Debt Service (Bonded – Interest)
153		Debt Service (Leases – Principal)
154		Debt Service (Leases – Interest)
231		Building Rent (may be used if not a lease, such as rental of meeting rooms for purposes other than training and development)
621		Payments to Contractors - Voucher Estimates
627		Retainage Withheld

Remember that all prior purchase approvals are still required. For a listing of prior approvals, see Chapter 4 of this volume.

2. AUTHORIZED EMPLOYMENT CLASSIFICATIONS FOR A PURCHASING CARD

Effective: 9/1/2004

 

Class Code		Classification Title
ADSVAS1 & 2		Administrative Services Assistant
HESPEC		Highway Equipment Specialist
HWYSTKP		Highway Storekeeper
ISC1, 2 & 3		Information Systems Consultant
ISCORD1 & 2		Information Systems Coordinator
OFASST2 & 3		Office Assistant
PROCOFF		Procurement Officer
STKPR3		Storekeeper 3
SUPV2 & 3		Supervisor (of a storeroom only)

Card assignments to any other classifications may be considered for exception approval by the Business Manager upon submission of a written justification along with the Cardholder Application/Agreement.