ACCEPTABLE USE OF COUNTY PCARD FOR AGENDA.PDF
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Maricopa County Policy Change Transmittal Letter 11/18/2020 Policy Number: TBD Title: Acceptable Use of County Purchasing Card Type of change Edit/Update ☐ New ☒ Rescind ☐ Owner of Policy Department Name: Procurement Servcies Point of Contact for Revision Name: Kevin Tyne Email: Kevin.Tyne@maricopa.gov Collaborating Department(s) Name(s): Internal Audit, MCSO, MCAO Executive Summary: OPS requests approval of this policy as a Countywide policy as part of fiscal responsibility required of all departments, including appointed or elected officials. Stakeholder Review & Approval Owner of Policy ‐ Appointing Authority Name: Kevin Tyne Date: 11/10/2020 Signature: ____see email__________ Assistant / Deputy County Manager Name: Valerie Beckett Date: Signature: _____ __________ Internal Audit Name: Mike McGee Date: 03/16/2020 Signature: ____see email__________ Maricopa County Attorney's Office Name: Randall Pennington Date: 11/18/2020 Signature: ___see email____________ Clerk of the Board of Supervisors Name: Fran McCarroll Date: Signature: ______________________ , COB, DOF County Manager / Board of Supervisors Name: Joy Rich, County Manager Date: Signature: ______________________ 11/13/2020 see email 11/23/2020 see email MARICOPA COUNTY INTERNAL POLICY Policy Title: ACCEPTABLE USE OF COUNTY PURCHASING CARD Policy Number: N#### Current Adoption Date: MM-DD-YYYY Current Implementation Date: MM-DD-YYYY Approved by: BOARD OF SUPERVISORS Board Agenda Number: C-##-##-###-#-## Original Adoption Date: MM-DD-YYYY I. PURPOSE The purpose of this policy is to define the minimum acceptable standards for use when making purchases using a County Purchasing Card (PCard). II. AUTHORITY The Office of Procurement Services (OPS) is responsible for administering this policy. Appointing Authorities and other supervisory personnel are responsible for assuring compliance with this policy. Violation of County provisions and policies may be subject to disciplinary action, up to and including termination. III. APPLICATION This Policy applies to all Maricopa County elected offices and appointed departments as well as the Flood Control District of Maricopa County, the Maricopa County Library District, and the Maricopa County Stadium District (Special Districts). The Board of Supervisors is authorized to jointly adopt policies applying to the Special Districts under the Intergovernmental Agreement, C-06-18-393-6-00, approved on April 11, 2018. IV. DEFINITIONS A. Account Types 1. Fuel Card: These cards are restricted to purchases for fuel for County vehicles, or rental vehicles on official County business only. 2. Ghost Account: Assigned to users for specific use with a particular County vendor. No physical card is issued as vendor accounts are established based on a username and password. 3. Purchase Card: Issued to Certified Agency Procurement Aides (CAPA) and may be used to purchase goods and approved services in compliance with all Procurement Code requirements, and subject to transaction and monthly Cardholder limits. Cardholders who are not CAPA certified will be issued cards with single transaction limits no greater than $1,000, and monthly transaction limits no greater than $5,000. 4. Travel Card: Used to purchase hotel, airfare and other expenses incurred when an employee travels on County business, in accordance with Travel Policy A2313. B. Appointing Authority: An elected official, the single administrative or executive head of a Department/Special District, or the designated representative authorized to act in this capacity. C. Cardholder: Individual responsible for and named on the PCard. Policy Title: ACCEPTABLE USE OF COUNTY PURCHASING CARD Policy Number: N#### Current Adoption Date: MM-DD-YYYY Page 2 of 6 D. Cardholder Agreement Form: A form signed by the Cardholder, Supervisor of the Cardholder, and the Appointing Authority, acknowledging that the Cardholder has had adequate training, understands the PCard policies and procedures, and accepts responsibility for compliance with all policies and procedures. E. Cardholder Application Form: A form filled out by the requesting department that initiates the PCard issuance process. The form will include Cardholder specific information (NO personally identifiable information other than name), requested monthly and single transactions limits, and default accounting string information. F. Cardholder Transaction Detail: The system generated report used to reconcile proof of purchase to billed transactions. G. Department: Refers to the department, office, or agency under budgetary responsibility and oversight of the Maricopa County Board of Supervisors and the Maricopa County Special District(s) Board of Director(s). H. Department Coordinator (DC): An individual designated by the department to perform reconciliation and reallocation activities on other cardholder accounts. I. Disputed Transaction: A disagreement between the merchant and the Cardholder where the Cardholder is asking for the PCard Providers assistance. J. Employee: A person paid a wage, salary or stipend from public monies in accordance with official entries on County payroll. This includes all classified, unclassified, temporary, and contract employees. K. Fraud: The unauthorized use of a PCard resulting in charges which will be reported to the PCard Provider for investigation, reimbursement, and card cancellation and re-issue when appropriate. L. Monthly Purchase Limit: The maximum dollar amount permitted for a transaction cycle. M. Official Use: Payments made by a Cardholder on behalf of the County as permitted by law and PCard Policies and Procedures. N. PCard Coordinator: The individual designated by larger departments to coordinate the PCard activities within the department. O. PCard Provider: The financial institution providing PCard services to the County. P. PCard Program Administrator: A designee serving as the single point of contact between Maricopa County and the PCard Provider for administration of PCard program. Q. Purchasing Card (PCard): A payment account issued to approved County personnel, to facilitate the purchasing process for official County use. R. Receipt: An itemized document indicating the vendor, item description, price per item, and the total amount charged in a transaction. S. Reconciliation: The process of matching purchase documentation to the financial institution statement of activity to verify all account activity is authorized. T. Reconciliation Report: Documentation showing that the charges processed for payment match the cardholders supporting documentation, and that all purchases were authorized and made in accordance with applicable policies and procedures. Policy Title: ACCEPTABLE USE OF COUNTY PURCHASING CARD Policy Number: N#### Current Adoption Date: MM-DD-YYYY Page 3 of 6 U. Transaction: The payment for goods and services received. V. Transaction Cycle: The period of time from the 7th of the month until the 6th of the following month in which purchases are made. W. Signature: A person’s electronic or handwritten identification indicating approval or authorization. X. Single Purchase Limit: The maximum dollar amount permitted for a single transaction. V. POLICY A. Conditions for Use 1. The PCard may only be used to pay for goods and services in accordance with the Maricopa County Procurement Code and all applicable policies. 2. Cardholders, their Supervisor and Department Coordinators must complete required in person or online training and submit the PCard application with required approvals prior to being issued a card. Retraining must occur every four years. 3. PCards are valid for a period of four years and are not automatically reissued. Required retraining must be completed and a new application submitted prior to receiving a new card. Training shall be available and tracked through the County’s Learning Management System. 4. If a card is unused for longer than 18 months, the financial institution will suspend the account and the card will not be reissued after expiration. 5. Whenever practicable, Cardholders shall purchase from contracted vendors. Cardholders are responsible for ensuring contract pricing and applicable discounts are received. Items not on contract shall be purchased using such competition as is required under the Procurement Code. 6. Dividing purchase transactions to circumvent aggregate purchase limits, single purchase limits, or monthly limits is prohibited. 7. The PCard may not be used to withdraw cash from ATMs or to purchase traveler’s checks, gift cards, reloadable VISA or MasterCard’s, or other negotiable tender. Exceptions may be made for specific grant funded programs with approval from the Chief Procurement Officer. The PCard may not be used for personal purchases, gambling, alcoholic beverages, illegal substances, or other purchases which do not exclusively benefit Maricopa County. 8. PCard privileges may be cancelled or revoked at any time, without prior notice, for any reason, by department management or the Office of Procurement Services. 9. Cardholders will immediately notify the PCard Provider at 800-344-5696 and the Office of Procurement Services at pcardadmin@maricopa.gov if a card is lost or stolen. 10. Cards shall be surrendered by Cardholders to Supervisors upon termination, administrative leave, reassignment to another department, or upon request by Cardholder’s Supervisor or the Office of Procurement Services. It is the Department’s responsibility to immediately notify the PCard Administrator of these conditions for card suspension or cancellation. 11. Agencies will notify the PCard Administrator of Cardholders on leave or vacation for more than 30 days, or a lesser time if appropriate, or if any cardholder is placed on administrative leave or disciplinary leave for any period of time. These accounts will be suspended until appropriate notification is received by the Office of Procurement Services. Policy Title: ACCEPTABLE USE OF COUNTY PURCHASING CARD Policy Number: N#### Current Adoption Date: MM-DD-YYYY Page 4 of 6 12. Departments shall identify and track asset purchases in accordance with the Maricopa County Capital Asset Policy #A2507 and manual, including those under $5,000 as applicable. B. Applying for a Card 1. All prospective Cardholders must: a. Complete the appropriate online or in person PCard training and pass the course assessment with 93% or greater. b. Submit a PCard holder application approved by the Cardholder’s Supervisor and the Appointing Authority. Cardholders may not approve their own application. 2. Cardholder Supervisors must: a. Complete required training and assessment before approving a card holders application. b. Approve cardholder application. C. Account Reconciliation 1. Cardholders or Department Coordinators will maintain monthly Reconciliation Reports to include at a minimum: a. A Transaction Cycle Statement: Cardholders must use the Transaction Detail Report or Cardholder Activity report from the PCard Provider. Forms or reports generated outside of the online system are not acceptable for transaction reconciliation. b. Purchase Documentation: Itemized receipts for all transactions within the cycle and any additional documentation, which may include credit statements, Travel Authorization and Expense Report forms, emails or other supporting documentation. Unmatched receipts will be maintained until those charges appear on a future statement. c. Approval: Cardholder and their Supervisor will sign indicating transactions have been reconciled, reviewed, and approved, before the close of the following cycle. If transactions are reconciled by a Department Coordinator (DC), the DC must indicate this on the signature page of the Cardholder Activity report. 2. Any alternative Reconciliation procedures must be approved in writing by an Appointing Authority and the Chief Procurement Officer. D. Transaction Reallocation: 1. Transactions must be reallocated in accordance with the published PCard Cycle Calendar. 2. Transactions not reallocated before the payment file is received by Maricopa County may post to the default accounting string associated with the account. 3. Corrections must be made through a journal voucher in the financial system. 4. Transactions which are tied to a contract should reference the contract in the accounting string. 5. Transactions which do not include a contract or purchase order reference should include one of the following notations in the transaction COMMENTS section: a. LQ – Low Quote Policy Title: ACCEPTABLE USE OF COUNTY PURCHASING CARD Policy Number: N#### Current Adoption Date: MM-DD-YYYY Page 5 of 6 b. Bidsync Quote# c. SS – Sole Source d. CI – Competition Impracticable E. Records Retention 1. Records may be retained electronically in the County’s approved EDMS (OnBase) or in paper format. 2. Reconciliation Reports shall be maintained for all cycles, even when there is no account activity. 3. All records must be retained by the department for the period defined by State of Arizona General Retention Schedules for Counties. F. Program Administration and Compliance 1. Departments shall perform periodic compliance audits on a random sampling of cardholder transactions and reconciliations to ensure all purchases comply with PCard and related policies, and that reconciliations are being performed as required. Audits shall be performed at least annually and shall include: a. Downloading PCard transactions from the card provider and analyze the data to help identify unusual transactions or patterns. b. Selecting a sample of transactions and reviewing the supporting purchase documentation for compliance. c. Reviewing a random sampling of Cardholder Monthly Reconciliation Reports to ensure cardholder and supervisor review is performed per policy. 2. All requests for changes to accounts must be submitted in writing and approved by the cardholder’s supervisor or Department Coordinator. 3. OPS will review the managing account program controls, including Single and Monthly Purchase Limits, Merchant Category Codes, and authorized user permissions, annually and adjust as appropriate. 4. OPS will compare cardholder accounts with active employees monthly to ensure terminated employees accounts do not remain active. 5. OPS will receive electronic notification of changes in card holder’s supervisors. If a supervisor has not completed required training, they must do so within 15 days. Failure to complete training may result in account suspension. G. Additional Guidelines for Board of Supervisors 1. All cardholders who are members of the Board of Supervisors will file reconciliation reports including all supporting documentation in compliance with Section (C) - Account Reconciliation, with the Clerk of the Board’s office within 30 days of cycle close. H. Additional References For additional guidance and procedures see the Procurement Guide & PCard Procedures at http://mymc.maricopa.gov/DocumentCenter/View/1331/Procurement-Guide-PDF?bidId= Policy Title: ACCEPTABLE USE OF COUNTY PURCHASING CARD Policy Number: N#### Current Adoption Date: MM-DD-YYYY Page 6 of 6 Revision History Version Revision Date Description of Revision 1 MM-DD-YYYY Initial version. (C-##-##-###-#-##)