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

1. INTRODUCTION

Effective: 2/1/2008

The purpose of the P-Card Program is to provide an efficient, cost-effective method of payment for goods and services for regular and routine purchases. 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 P-Card purchases.

Using the P-Card simplifies the purchasing process since each purchase is billed to the P-Card account and at the end of each billing period only one “statement” or master bill per organization is processed for payment instead of processing numerous separate invoices. For organizations with regular and routine purchases and with authority to use the P-Card, participation in the P-Card Program is mandatory.

DOT recognizes the P-Card is the preferred method of payment. All questions concerning applicable Purchasing Rules and Regulations should be referred to your agency/organization Procurement professional. Additionally the Administrative Procedures and the Purchasing Website located at http://www.state.wv.us/admin/purchase/ give additional instructions concerning the P-Card. All P-Card payments will be reviewed for compliance to Purchasing Rules and Regulations.

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 necessary 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 P-Card is subject to the provisions of the West Virginia Government Ethics Act of 1989, as amended, which identifies 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 P-Card is responsible for its use. The Cardholder's supervisor shares in the responsibility to properly use the P-Card and may also be held responsible for any misuse.

Only employee Cardholders (those named on the credit card) may make P-Card purchases or may authorize purchases for that Cardholder's P-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 DOT P-Card Coordinator.

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

The online State of West Virginia's P-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. P-CARD POLICIES

Effective: 2/1/2008

1. P-CARD ROLES AND RESPONSIBILITIES

It is important that segregation of duties exists within the administration of the P-Card program. For example, to ensure accountability, all P-Card transactions must be reviewed and approved by the Cardholder's supervisor. The Cardholder’s immediate Supervisor must initial all P-Card receipts.

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

1. processing new card applications and account changes for active P-Card holders;
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 P-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 P-Card Sub-Coordinators and determining what Cardholder account adjustments are needed;
8. providing guidance and oversight to the organization P-Card Sub-Coordinators;
9. assessing needs, developing and providing P-Card training for Cardholders, supervisors and organization Sub-Coordinators;
10. maintaining the DOT P-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;
13. initiating action to immediately cancel an employee's P-Card if circumstances warrant and;
14. maintain P-Card holder master file in REMIS.

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. retaining the credit card charge slip, a valid vendor’s receipt (see section II., F.), the Cardholder’s Electronic (TSO 404) Log and all other documentation for each purchase for three years;
3. reconciling the monthly credit card “Memo Statement” with purchases made during the month;
4. keeping the card secure and promptly reporting any unauthorized use or card loss/theft and;
5. 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 DOT Card Coordinator as required;
3. notifying the DOT P-Card Coordinator when a Cardholder goes on a leave of absence and;
4. reviewing, signing and dating the reconciled Cardholder electronic (TSO 404 report) log(s) each month certifying that all purchases were authorized.

4. The DOT Business Manager, Finance Director and the DOT P-Card Coordinator will designate P-Card Sub-Coordinators. The agency's or organization's chief financial officer (Comptroller) will normally be selected as that organization's P-Card Sub-Coordinator. A designee may be appointed to assist with P-Card activities who is a direct subordinate of this manager and who does not have a P-Card. The P-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 that are recommended to be a Cardholder for their organization;
3. ensuring that the Cardholders receive the required web based training and that they understand their purchasing responsibilities;
4. training the supervisors of Cardholders on the purchasing policies and P-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 P-Card Coordinator and requesting training from Transportation Finance including Cardholder visits to the Central Office to achieve a better understanding of how the P-Card Program should be administered;
6. submitting new card applications and account changes to the DOT P-Card Coordinator;
7. notifying the DOT P-Card Coordinator to suspend a card for Cardholders on a leave of absence;
8. aiding in the resolution of disputed charges;
9. assists 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 P-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 P-Card transactions;
14. ensuring that all statements are reconciled and processed for timely payment;
15. initiating action to immediately cancel a P-Card upon gaining approval of the agency or organization manager (Highways' Division Director or District Engineer/Manager);
16. performing the monthly organizational review requirements (see appendix C.) and applying and documenting corrective measures (including additional training) for problems;
17. maintaining a file on each Cardholder to include a copy of the P-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 P-Card Coordinator's training and receiving certification;
20. providing oversight to the agency's or organization's P-Card program and;
21. updating organizational management regarding cardholders' and supervisors' knowledge of P-Card use and policies.

5. Transportation Finance Division's responsibilities include:

1. reviewing all P-Card audit reports and monthly P-Card Coordinator reports to assess the need for and to take corrective action, when required;
2. review all audit reports issued by the State Auditor’s Office and the Division of Purchasing about both the method of payment and purchasing and when necessary take corrective action;
3. reviewing all State and DOT P-Card Procedures for changes, advising Information Services Division of needed revisions and ensuring that employees involved in the P-Card Program are properly notified;
4. attending meetings, seminars, etc., provided by the State Auditor's Office and the Division of Purchasing on the P-Card Program;
5. scheduling P-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;
6. may prepare reports and analyses of individual Cardholder 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;
7. may perform these analyses monthly, quarterly, semi-annually and annually and submitting a summarization of findings and corrective actions to the Transportation Business Manager.

6. The State Auditor’s Office and Transportation Auditing Division may periodically review each Cardholder’s and each organization’s compliance with all policies and procedures of the State P-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 P-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

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

1. permanent, active, full-time employees.
2. organizations that regularly make purchases.

(1)	Organization P-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)	Periodically, the DOT P-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. in the legislative session of 2006 permission was granted to allow the P-Card to make regular and routine payments. The Sub-Coordinators should insure personnel who have high transaction amounts and high credit limits are aware of all purchasing rules and regulations. This should prevent a P-Card holder from making a purchase without knowledge of applicable purchasing rules.
4. exceptions to these guidelines will be considered by the DOT Business Manager upon submission of written justification attached to the P-Card Application.

3. CARDHOLDER QUALIFICATIONS AND TRAINING

1. When advertising job vacancies that require the use of a P-Card, organizations must clearly state in the posting that the employee must qualify for and use the State P-Card.
2. 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 action(s).
2. the evaluation of Cardholders will include a periodic review of the Cardholder's performance through the monthly P-Card Sub-Coordinator's review and audit.
3. the review criteria may include, but shall not be limited to, Cardholders that:

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

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

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

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

   (1)	complete the Auditor’s web based training and pass the online P-Card and ethics exams prior to receiving the P-Card;
   (2)	complete the approved DOT Cardholder or supervisor training and;
   (3)	jointly review the DOT P-Card Procedures with their supervisor and the organization's P-Card Sub-Coordinator prior to utilizing the card.

2. existing Cardholders will:

   (1)	complete the State Auditor’s web based refresher training biennially and pass the online P-Card and ethics exams;
   (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 P-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 P-Card training will be exchanged between the DOT P-Card Coordinator and the organization Sub-Coordinators.

4. ALLOWED PURCHASES

1. The P-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 P-Card unless the vendor refuses the (VISA) card.
3. All purchasing rules must be followed, such as:

1. not splitting (stringing) purchases to bypass the dollar limits set for cardholders by the Sub-Coordinator;
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 refuse to accept the P-Card, refuses to sell at the contract price or the contract requires a Purchase Requisition, Form WV-35 (encumbered purchases).

4. securing verbal bids for purchases over $2,500 up to and including $5,000, and documenting bids on Form DOT-105B; and
5. getting all prior approvals before purchasing.

4. Items purchased for Hospitality must meet the guidance of the Hospitality Object Code (042), must be authorized and must be documented on the “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

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

1. Insurance
2. Legal services
3. 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.

4. Travel and related expenses (except for lodging expenses for employees who do not have a travel card)
5. Weapons
6. West Virginia Sales Tax (out-of-state vendors may charge sales tax)
7. Encumbered purchasing documents
8. Goods and services for private use
9. Non-DOT related goods and services

6. VALID RECEIPTS

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 P-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," "P-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. 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

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

• Therefore, any charges received by the contract P-Card company (VISA) through the third 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 10th of each month. This statement can be accessed by the cardholder on the contract vendor’s web site found at: https://www.onlinestatements.cards.citidirect.com/nexd/ESLogin.jsp on the 1st day of the next billing cycle. It lists each billed charge for the preceding month.

• The Cardholder employee will promptly reconcile his or her monthly purchases to the P-Card “Memo Statement”.
• Cardholders may view their transactions before receiving their Memo Statement on WVFIMS Inquiry (online), providing they have authorization. WVFIMS 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.” This statement can be accessed by the Sub-Coordinator on the contract vendor’s web site the 1st day of the next billing cycle. 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 P-Card “Statement”.
3. the organization’s monthly REMIS P-Card Purchase Master must be adjusted to show an “Amount Owed” equal to the invoice amount on the organization’s P-Card “Statement”.
4. no adjustment to the Total Amount of the “Statement” is permitted unless authorized in writing by the state contract P-Card company.

4. Each organization’s monthly “Statement” must be processed to Transportation Finance, Accounts Payable Section by the 16th of each month.

1. meeting this deadline will avoid the loss of prompt payment discounts as provided in the P-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

1. Establish one REMIS “SCO” Purchase Master each month for the DOT organization level that receives a "Statement”.
2. All P-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 P-Card payments.
4. Purchase Receipt "PR" entries will be entered on a daily basis as purchases are made. Ensure that the "PR" entries are made to the REMIS Line Item Master established for the Cardholder.

9. VIOLATIONS AND PENALTIES

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. For additional information please refer to Volume VI, Chapter 5, Appendix B.
2. Any instance of misuse or serious or severe violations of the P-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, P-Card Program manager.

3. PURCHASING CARD PROCESSES

Effective: 2/1/2008

1. NEW CARD APPLICATIONS

1. The employee/card candidate completes the P-Card Application and the Cardholder Agreement forms.
2. The completed application and agreement forms are given to the organization’s manager for review and approval signature before they are sent to the organization P-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 along with required training certificates to the DOT P-Card Coordinator, Transportation Finance Division.
5. Upon receipt, the DOT P-Card Coordinator reviews and if correct, approves, files a copy and processes the original application and the agreement to the contract P-Card vendor through the State P-Card Administrator. Training must be completed before the card will be issued.
6. When issued, the P-Card will be mailed directly to the Cardholder. 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 P-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 P-Card Procedures with the Cardholder and the Cardholder’s supervisor prior to utilizing the card.

2. LOST/STOLEN CARD REPORTING

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 P-Card Coordinator (in Transportation Finance Division), reporting the card loss and requesting a replacement card.
3. The DOT P-Card Coordinator will document the lost/stolen card reporting, submit the Maintenance Form to the Business Manager for approval, and upon approval maintains a file copy and forwards the original to the State P-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 P-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 P-Card Coordinator maintains a file copy and forwards the original to the State Program Administrator, who processes the change(s).

4. ESTABLISHING REMIS PURCHASING CARD PURCHASE MASTERS

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 P-Card within the organization (including all subordinate organizations included in the "Statement").

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

1. a Purchase Master Number of 10 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 digit of the calendar year.
  Example: V I S A O C T 5 0 8 represents the number for Motor Vehicles for October of 2008,
• 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".
5. Contract Line Item No. = last 5 digits of cardholders account number.
6. Description = cardholders last name, first name.

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

5. MAKING P-CARD PURCHASES

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 an Exemption Certificate 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 transaction limit) 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 Electronic (TSO 404 Report) Cardholder’s Log. The Cardholder must ensure that the required purchase documentation is kept secure and private.

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 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.
   

2. the computer entry clerk enters the purchase to the organization’s assigned P-Card Purchase Master through the REMIS, HW-50, Purchase Receipt, “PR” transaction.
3. enter the REMIS “PR” to:

(1)	the P-Card Purchase Master for the current month;
(2)	the Line Item Number assigned to the buyer/Cardholder;
(3)	choose from the list of available transactions, which purchase is to be receipted.

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

4. following “PR,” the computer entry clerk initials and dates the purchase requisition/receipt form (DOT-105 or other) and files the documentation.

6. SUPERVISOR'S WEEKLY REVIEW OF PURCHASES

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 required documents such as, invoices, receipts and delivery tickets are retained and comply with information requirements;
3. 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 P-Card receipt indicating review and acceptance of the transaction.

7. RECONCILING THE P-CARD STATEMENT

1. The Cardholder will:

1. compare each transaction of the P-Card “Memo Statement” to the P-Card tickets and sales receipts.
2. once reconciliation is complete, the Electronic Cardholders Log (TSO Report 404) Credit Card Purchase Reconciliation must be printed.
3. then sign and date the electronic log, attach the associated P-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 P-Card “Memo Statement(s)” and the electronic 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 Electronic Cardholder's Log(s) and gives the log and all purchasing documentation to the to the organization's P-Card Sub-Coordinator for review. The Sub-Coordinator signs all electronic cardholder’s logs before filing.
3. document, in writing, areas of concern.

8. DOT P-CARD COORDINATOR'S MONTHLY REVIEW OF PURCHASES

1. Following the reconciliation of the monthly P-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 Monthly P-Card Review Spreadsheet (see appendix C.).
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’s Logs, Statements and REMIS Purchase Receipt entries and will complete the Monthly General Review answering questions for all Cardholders.

1. any problems and the corrective action(s) 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 a minimum of 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, of any significant problems or indications of misuse or abuse of the P-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 review spreadsheet, the Card Sub-Coordinator will:

1. transmit the Monthly P-Card Spreadsheet reviews electronically to the Finance Director or designee.
2. retain copies of all monthly review documentation.

9. PAYMENT PROCESSING

1. The purchase organization’s clerk confirms that:

1. the Grand Total of each Cardholder’s Electronic Log (TSO 404) matches the Total Amount of the P-Card “Memo Statement”;
2. the combined Total Amount of all the organization’s P-Card “Memo Statements” matches the Total Amount payable listed on the organization’s P-Card “Statement” (Invoice) and
3. the “Amount Received” recorded on the organization’s REMIS P-Card Purchase Master matches the Total Amount listed on the organization’s P-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 to next month’s P-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 P-Card “Statement” (Invoice) for payment processing by:

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

4. The Invoice (first page with payment stub) is then scanned and electronically transmitted to Transportation Finance, Accounts Payable.
5. Invoices should reach Transportation Finance no later than the 16th of each month.

• Any disputes should be handled in accordance with section "J”.

10. RESOLVING DISPUTES

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 P-Card Dispute Form, sends the original to the DOT P-Card Coordinator who forwards it to the State Auditor’s Office, and retains a copy.

1. a  P-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 P-Card Dispute Form will not be processed for charges of West Virginia Sales Tax or shipping and handling charges.

4. Cardholder then attaches his or her copy of the P-Card Dispute Form to the Cardholder’s Electronic Log (TSO 404).
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.

• Scan the original 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

Purchase organizations are required to retain documentation of P-Card transactions. All P-Card records/documents must be retained for three years or 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. LISTING OF DISALLOWED DOT OBJECT CODES - STATE P-CARD

Effective: 6/24/2008

001	series	Personal Services
010	series	Employee Benefits
022		Rental Expense
027		Computer Services
032		Fire, Auto, Bond and Other Insurance
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

2. P-CARD ABUSE POLICY

Effective: 2/1/2008

1. PURPOSE
   The purpose of this policy is to establish the guidelines for handling identified and verified instances of P-Card abuse by an employee who has been authorized to make agency payments for goods and services with a P-Card and has agreed to comply with the policies and procedures.
    

2. SCOPE
   This policy applies to all divisions of the Department of Transportation.
    

3. POLICY
   Instances of P-Card misuse/abuse must first be identified and established as activity where there was no intended fraud on the part of the cardholder, yet there was a violation of P-Card policy and procedure.
   
   Any indication of fraudulent activity or willful misuse by the cardholder must be reported to the organization P-Card Sub-Coordinator , DOT P-Card Coordinator and the card account terminated immediately.
    

4. PROCEDURE
   The first validated violation of P-Card policy and procedure will result in an email notification to the cardholder and the DOT P-Card Coordinator. The content of that notice will include the nature of the violation and the appropriate payment method for future reference. Additional training may be required of the cardholder, if the DOT P-Card Coordinator or Sub-coordinator deem so.
   
   A second violation within a one year time period will result in a face-to-face meeting with the DOT P-Card Coordinator the Sub-Coordinator, the cardholder and their supervisor. The purpose of the meeting will be to discuss the matter, provide additional training and specific corrective actions required by the cardholder and/or cardholder’s supervisor. The DOT P-Card Coordinator will send an email regarding the violation and the result of the face to face meeting to the cardholder’s Sub-Coordinator and the Directors of Transportation Auditing and Finance.
   
   A third violation, regardless of time frame, will result in a formal memo from the DOT P-Card Coordinator noting current and past violations and the results of meetings and additional training provided. At this time, all card privileges for the cardholder will be revoked and the card account deactivated until such time as the cardholder attends and completes cardholder training. The card account will not be reactivated until such time that the cardholder meets with P-Card Administration and can provide reasonable assurances that they understand the P-Card policy and procedures and the proper use of this payment tool.
   
   The DOT P-Card Coordinator and the Director of Transportation Finance reserves the right to suspend a cardholder’s P-Card privileges at any time if it is deemed to be appropriate, pending the completion of any investigation, or if the severity of the violation warrants such action.
    

5. RESPONSIBILITY FOR IMPLEMENTATION
   It is the responsibility of all cardholders and coordinators to abide by the policies and procedures associated with participation in the card program and to supply any information that may be associated with any card misuse or abuse to the DOT P-Card or Sub-Coordinator.

• failure to get approval for purchase(s) of the lowest level supervisor.

• failure to inquire about procurement process for purchases not usually included within job duties.

1. Penalty
   Progressive Discipline involving a verbal or written reprimand and notation on annual performance review.

6. P-CARD SERIOUS VIOLATIONS AND DISCIPLINARY ACTIONS

• permitting the card to be used for unauthorized business purposes.

• failure to seek best value for personal gain.

• making unauthorized business related purchase payments.

• failure to reconcile monthly credit card statement.

• failure to report loss or theft of the P-Card.

• failure of the first line supervision to ensure the statements are reconciled.

• failure to process monthly statements for payment seven days prior to the due date.

• splitting purchases to circumvent Purchasing Policies.

• failure to seek best value where loss is determined to be in excess of $250.00.

• failure to keep the receipt for a transaction, value in excess of $1,000.00.

• failure to continue to not get prior supervisory approval of purchases.

• continuing to make Visa payments for contract commodities purchased off contract.

1.  Penalty
   Progressive discipline ranging from written reprimand to a suspension of three days and notation on the annual performance evaluation.

7. P-CARD SEVERE VIOLATIONS AND DISCIPLINARY ACTIONS

• payment of purchases for personal gain.

• failure to report unauthorized uses by internal or external parties.

• receipt/acceptance of rewards provided by vendors for purchases.

• returning materials for credit and being issued a credit that would apply to an employee and not the Agency.

1. Penalty
   Either progressive discipline ranging from a suspension without pay of at least five (5) days to suspension pending the outcome of an investigation and notation on the annual performance evaluation, or first offense dismissal.

3. MONTHLY P-CARD REVIEW SPREADSHEET

Effective: 2/1/2008

Download Monthly P-Card Review Spreadsheet