Texas Department of Public Safety Payment Card Program

Procedures Guide

ACT-60 January 2017

2

DPS PAYMENT CARD PROGRAM

TABLE OF CONTENTS

DPS PAYMENT CARD PROGRAM ............................................................................................................................... 2

TABLE OF CONTENTS ................................................................................................................................................. 2

I. Introduction .............................................................................................................................................. 3

II. Definitions ................................................................................................................................................. 5

III. Responsibilities...................................................................................................................................... 5

IV. General Information .............................................................................................................................. 7

V. Payment Card Procedures ......................................................................................................................... 8

VI. Violations ............................................................................................................................................ 10

VII. Payment Information/Processing Procedures ....................................................................................... 11

Appendix A: CITIBANK® COMMERCIAL CARD SETUP FORM ............................................................................... 15

Appendix B: Payment Card Use Agreement ...................................................................................................... 18

Appendix C: Payment Card Transaction Tracking Log Instructions ...................................................................... 19

Appendix D: Payment Card Transaction Tracking Log ........................................................................................ 20

Appendix E: Vendor Hold Search ...................................................................................................................... 21

Appendix F: Purchases Where Payment Card MAY NOT Be Utilized ................................................................... 22

Appendix G: Historically Underutilized Business Progam ................................................................................... 23

Appendix H: Capital vs Controlled Assets .......................................................................................................... 24

Appendix I: Frequently Asked Questions & Answers ......................................................................................... 25

Appendix J: Important Phone Numbers and Contacts ....................................................................................... 26

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DPS PAYMENT CARD PROGRAM

I. Introduction The Comptroller of Public Accounts (CPA), Statewide Procurement Division (SPD) entered into a contract with Citibank that allows state agencies to obtain Payment Cards (MasterCard) to use in making certain spot purchases. The expanded use of the Payment Card (P-card) provides an additional payment tool that will streamline purchases traditionally made using petty cash, local accounts, spot purchases, or employee reimbursements. The P-card program reduces the timeframe for traditional payment methods but does not replace or omit the procurement rules and procedures. Further, the P-card reduces administrative costs, allows faster payment to vendors, and simplifies some purchasing transactions.

Information on PCARD purchases and the associated required guidelines are located in section 2.45 The State Payment Card of the State of Texas Procurement Manual. Additional information is also available from the Comptroller at the following link: https://www.comptroller.texas.gov/purchasing/programs/charge-card/.

Additionally, DPS has guidelines specific to our Agency that must be followed. Only certain goods and services can be purchased on the PCARD, and the threshold for DPS is $2,000 as opposed to the State’s $5,000 requirement. Refer to the DPS Payment Card Manual or if you have further questions, please contact P&CS for guidance.

ALL DIVISIONS MUST FOLLOW ACT-60 (TXDPS Payment Card Program Procedures Guide) – NO DIVISION IS EXEMPT.

There is a $2,000 single transaction purchase limit and a $10,000 monthly limit. There are no limitations on the quantity of transactions allowed per business day or per billing cycle. Additionally, please refer to Appendix F for a quick reference chart outlining purchases that are prohibited. Benefits of the P-card Program

Reduces the number of manually-prepared purchase orders/petty cash vouchers. Easy to use. Expedites payments to vendors as Citibank pays each vendor directly during the month.

DPS only makes one payment to Citibank each month improving vendor-agency relationships. (Budget allocations are done in arrears by the Finance Division.)

Allows the Procurement and Contract Services (P&CS) department to focus on complex acquisitions rather than spending disproportionate amounts of time on acquisitions that qualify as spot purchases.

Items of Special Note

Authorized Spot Purchase Limit: Payments may not be made with the P-card when

the purchase will exceed the authorized spot purchase limit for that item/service. This information is available

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at https://www.comptroller.texas.gov/purchasing/publications/procurement-manual.php or you may contact P&CS at 512.424.5255 with questions about spot purchase limits.

P-Card is a Method of Payment ONLY: The P-Card does not replace or omit the procurement rules and procedures. All purchases must comply with the law. Refer to the DPS Procurement & Contract Management Guide for further compliance details. If you have further questions, please contact P&CS for guidance.

Use General Stores & Existing Contracts FIRST: The P-Card should only be used if items are not available from the DPS General Store or through existing contracts.

One-time Purchase Exception Requests: There may be certain circumstances when P&CS may allow a one-time exception use for the P-card such as an emergency situation by a trooper out in the field or if a vendor will not accept a PO for a purchase under the spot purchase limit. Cardholders should submit any one-time exception requests via email to procurement@dps.texas.gov prior to the purchase. Written documentation of approval must accompany your reconciliation documentation.

One-time Transaction Increase Requests: If a cardholder requires a single transaction limit above the designated $2,000 limit currently assigned, approval from BOTH Finance and P&CS is required. Do NOT proceed with any transaction greater than $2,000 total amount until such approvals are granted by both departments. Send email to both Finance and P&CS noting your request with specific purchase requirement details: including vendor, anticipated date of purchase, total dollar amount of purchase, and overall details of the procurement need, and copy the CFO and Program Administrator. If a single transaction dollar limit increase is granted by both departments, Finance will affect the increase in the transaction limit for the card. Written documentation of approvals must accompany your reconciliation documentation.

Billing Statements and Reporting: Timely and accurate reports are critical to the reconciliation of expenditures and payments - each cardholder is responsible for the accuracy and timeliness of his/her billing statements.

Original Receipts: Originals must be maintained by the cardholder for audit purposes. Electronic copies must accompany the reconciliation of your billing statement when submitted for approvals and to Finance. All receipts must be legible and contain the vendor name, address, phone number, and date of purchase. When receipts are not detailed, a hand-written explanation of what was purchased must be included and forwarded to the Finance (Account Payable Department), P-card section, with the Citibank billing statement. Always keep original receipts in a safe location for future reference – these may be requested in the future.

Missing Receipts: Finance requires any missing receipts to have a memo explaining the reason for the missing receipt(s), complete with all the required information as noted above.

Tracking of Expenditures: Careful coordination within the functional and budget areas must be maintained to ensure proper tracking of expenditures and budget accountability/tracking.

Accidental Purchases: Any purchase made due to a DPS employee error must be noted on the Payment Card Transaction Tracking Log (Appendix D) and accompanied by personal check made to DPS from the employee for the exact amount.

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II. Definitions

A. CARDHOLDER PAYMENT CARD AGREEMENT AND ACKNOWLEDGMENT

OF RECEIPT. (Appendix A & B) This is an agreement between the cardholder and DPS which confirms the cardholder has read and understands the policies and procedures. The cardholder and his/her Assistant Director or Deputy Assistant Director must sign this agreement prior to issuance of a card.

B. TRANSACTION TRACKING LOG FOR PAYMENT CARD ACTIVITY

(Appendix C & D) The cardholder must use this form to record all purchases and obtain approval signature(s) of supervisor(s).

C. UNAUTHORIZED PURCHASES.

Any unauthorized item purchased by a cardholder is, by law, declared to be a private purchase of the cardholder rather than a public debt. The Cardholder may be responsible for repaying the agency for an unauthorized purchase.

III. Responsibilities

A. Procurement and Contracting: 1) Oversees the vendor contract with Citibank and acts as liaison between

Citibank and DPS. 2) Responsible for maintaining the ACT-60 and updates changes from CPA

annual and posts on DPS.net 3) Provides guidance on procurement rules and procedures for using the Pcard to

cardholder 4) Coordinates communications with payment card administrator 5) Ensures that all cardholders are given training 6) Reviews one-time Purchase Exception Requests

B. Finance Division: DPS Payment Card (P-card) Administrator:

1) H a s overall responsibility for the daily operation for ensuring payment of the P-card program;

2) Works closely with Procurement & Contract Division and gives feedback on P-card payment issues.

3) Ensure process and audit controls are in place for P-card activities; process card applications to Citibank;

4) Receives new cards from the vendor and distributes to cardholders 5) Assist with training prior to distribution of new cards. Point of contact for

cardholders, /supervisors/approving officials; on payment related issues. 6) Cancels terminating and retiring cardholder cards 7) Oversees resolving issues with use of Index or other financial information; and

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8) Oversees the cancellation of payment cards.

C. Division Deputy Assistant Directors (DAD) or Designee: 1) Review applications of division’s personnel and forward approved

applications to the Finance(Account Payable Department), P-card section ,for submission to Citibank;

2) Hold ultimate responsibility for ensuring the cardholder and supervisor properly performs their duties and responsibilities as related to the program; and

3) Adhere to agency policies/procedures relating to his/her required reviews of transaction logs, billing statements, and receipts.

D. Cardholder Supervisor or Designee: 1) Liaison between personnel and Finance (Account Payable Department), P-

card section, regarding any payment issues related to the P-card program; 2) Assist in training of prospective cardholders in the proper use of the P-card; 3) Review the statements, as applicable, to ensure proper procedures are followed

and to ensure budgetary controls are maintained; 4) Responsible for the approval of the cardholder’s transaction log, statement and

all policy required supporting documents by signing and dating the transaction log and statements

5) Ensures original receipts and supporting cardholder’s documents are maintained according to the agency’s retention schedule.

6) Ensure prompt processing and distribution of the P-card billing statements and copies of receipts to the Finance department (Account Payable Department) on or before the 25th of the month;

7) Upon discharge/separation/retirement/transfer of employee, supervisor will obtain the card, forward the information to the P-card A d m i n i s t r a t o r for immediate cancellation and destruction of the card;

8) Notify the Finance (Account Payable Department) of any suspected fraudulent use;

9) Advise cardholder of any non-compliant purchases found on the statement and remind cardholder his/her card will be suspended or cancelled if non- compliance continues; and

10) Immediately report any lost or stolen cards to Citibank and the Finance Division (Account Payable Department), P-card section.

E. Cardholder:

1) Secure the P-card; 2) Adhere to all rules and regulations regarding the P-card; 3) Maintain all applicable documentation relating thereto, showing all purchases

and credits made during the billing cycle. Billing statements must have receipts attached and signatures of both the cardholder and supervisor submitted to Finance (Account Payable Department, P-card section) by the 25th of each month following the billing cycle period. Failure to submit statements by monthly deadline will subject your payment card to

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cancellation and future cards will not be granted to the card holder; 4) Immediately report any lost or stolen cards to Citibank, your supervisor, and

the P-card supervisor or someone in the Finance Division (Account Payable Department); and

5) Make every attempt to make purchases from HUB vendors (Appendix G). F) Finance Division: Accounts Payable P-Card Team:

1) Determines and communicates to Cardholder, Cardholder Supervisors and DAD or designee Finance requirements for submitting P-card paperwork

2) Increases approved single transaction dollar limits granted by DAD or designee and Finance CFO in the transaction limit for P-card for P-card

2) Notifies Program Administrator of any violation or fraud detected during the audit of the P-Card Statements

3) Receives a billing statement from P-card vendor and reconciles each cardholder statement to the billing statement

4) Performs 100% audit of P-Card statements received 5) Notifies the Program Administrator of cardholder statements not received by

the 25th of the month 6) Verifies the correct Index and agency account code is being utilized 7) Processes the payment to Citibank according to the Prompt Payment Act using

the correct direct deposit TINS # 8) Maintains in Finance all supporting procurement card documentation for audit

purposes.

IV. General Information

A. CONTROLS AND PURCHASING THRESHOLDS Single Purchase Limit $2,000 Spending Limit per Cardholder per billing cycle $10,000* Number of Transactions Allowed per day No limit** Number of Authorizations Allowed per cycle No limit

*Maximum amount authorized unless the DAD requests a limit increase which must be approved by the Chief Financial Officer. **Splitting payment transactions is not allowed and subjects your card(s) to cancellation.

B. STATEMENTS AND BILLING CYCLE

The billing cycle usually begins the 4th of each month and ends on the 3rd of the next month. The cardholder will normally receive a billing statement from Citibank by the 10th of each month. If a billing statement has not been received by the 10th, the cardholder needs to contact the Citibank or DPS Payment Card section.

With internet access, a cardholder can be set up to view his/her account statement online at any time through Citibank Online. The statement may be

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printed from the website: https://home.cards.citidirect.com/CommercialCard/Cards.html

V. Payment Card Procedures

A. DEPARTMENT GUIDELINES FOR USING THE PAYMENT CARD. The card

MAY be used to purchase the following:

• Authorized purchases of goods and/or services up to $2,000.00 within the CPA, and DPS rules and guidelines

• Registration fees • Only hardware purchases up to $1,000.00 per billing cycle

B. COMPTROLLER/SPD PROHIBITIONS AND DEPARTMENT GUIDELINES

FOR RESTRICTED USE OF PAYMENT CARD. (Comptroller Administrative Rules, Sec. 5.57, Para. (g)). Do NOT use the P-Card to purchase any of the following:

• A purchase of a personal nature or any other purchase not connected with official

state business • Cash advances / cash refunds • A prepayment for goods and/or services • Any purchase exceeding $2,000.00, including external repairs and wreck damage

of state owned vehicles • Any purchase(s) where the annual aggregate costs will exceed $5,000 to one

vendor • Any item that is listed on contract including:

• Data Discs (CD, CD-RW, DVD, DVD-RW, diskettes, floppy discs, etc.) and their cases

• Toner (that is on contract) • Security Services

• Capitalized or controlled items • Contract airfare, hotel reservations, or other travel related expenses, even if work

related • Furniture • Fuel • Insurance / wreck repairs containing a personal property claim • Items for resale • Memberships (including legal bar dues) • Mobile devices and Telecommunication equipment (eg. cellular phones, tablets) • Consultant or professional services

https://www.comptroller.texas.gov/purchasing/docs/procurement-manual/2-14.pdf • Witness or Contractor expenses • TIBH or TCI/TDCJ purchases or DIR purchases over $1,000

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• Software and/or IT services, including cloud services • Statewide Term or Managed contract items (FYI – this includes items available in

the TXSmartbuy System) • Printing Services – https://www.comptroller.texas.gov/purchasing/docs/procurement-manual/2-16.pdf • Food / Beverage (any item that can be consumed) • Water • Employee awards • Utility services (this includes cable, internet, and cell phone services) • Revolving payments – any payment that will be made continuously • Any purchase/transaction where the cardholder signature agrees to a vendor’s

terms and conditions that have not been reviewed and approved by the P&CS prior to transaction

• Insurance Surety bonds

C. GENERAL PROCEDURES

1) The cardholder may not accept a cash refund for a purchase, if the agency paid for the purchase with a P-card. All refunds or adjustments to a purchase made with a P-card shall be in the form of a credit transaction or check made payable to DPS.

2) The cardholder is responsible for advising the vendor that he/she is claiming an exemption from state or federal taxes when using the P-card. The cardholder should use the Texas Sales Tax Exemption Certificate whenever taxes may be charged. Due diligence is required.

3) All charges on your P-card will be charged to the budget identified by the cardholder on the Payment Card Statement.

4) Do not loan out your card. The cardholder whose name is on the card is the only individual authorized to use that card. DPS loses transaction dispute rights when cards are used by someone other than the person whose name is on the card; therefore, DPS cardholders may not loan their cards to anyone.

5) Quick Checklist for Credit Card Transactions: (a) Determine what you need to purchase, check the Vendor HOLD status

prior to making the purchase and submit the documentation attached to the receipt along with the monthly billing statement. See Appendix E for more details.

(b) Verify all charges and confirm that the vendor is not including

sales tax before signing the receipt. An itemized and legible receipt is required. If an itemized receipt is unavailable from the vendor, indicate “Only Receipt Received” on the charge slip. Ensure the receipt/charge slip describes each item purchased – if not, write a description of the items on the receipt for future reference.

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(c) Keep the cash register receipt and/or charge-card receipt. They must be turned in with your Citibank monthly billing statement. If the receipt is smaller than 8-1/2” x 11”, please tape it to an 8-1/2” x 11” size sheet of paper. This will help to ensure that smaller receipts do not get lost. Do not place tape over the printing on thermal paper receipts because the tape causes the print to disappear.

(d) If you are authorized to place telephone or on-line orders, ensure that you

receive an original receipt. For your records, you should also print the order form with the item description and cost. Do not allow partial charges to be made.

(e) Credit card purchases must be signed by the cardholder.

(f) A purchase may not be split into two transactions to avoid exceeding a

spot purchase limit. Splitting a charge is not acceptable to avoid the bid process or the single purchase limit. Any occurrences of split purchases will be documented as non-complaint.

6) Cardholder’s Monthly Reconciliation

(a) Each cardholder receives an individual statement for the P-card vendor (b) Reconciling their individual billing statement to a new transaction log

monthly and vendor invoice (cannot be modified by the cardholder) by comparing the entries on their transaction log and invoice to the transactions shown on their statement to ensure the cardholder in fact made all transactions and all transactions charges on the Citibank statement are matching to the vendor invoice(s).

(c) After verification of transactions is completed, the cardholder shall sign and date the individual statement and transaction log.

(d) The individual statement, transaction log, and all policy required paperwork shall be sent to the cardholder’s Supervisor or designee for a review, approval, and submittal to Finance (Accounts Payable Department, P-Card Team) no later than the 25th of the month. Failure to submit statements by the monthly deadline will subject your card to cancellation and future cards will not be granted to the cardholder.

(e) The monthly reconciliation is mandatory for each cardholder and is one of the principal controls of the procurement card program.

VI. Violations

1) Violations of the program policies, procedures, and rules may result in discontinuance of card privileges for the cardholder, suspension, or revocation of the card, administrative actions against the cardholder, other disciplinary actions, or a combination of the aforementioned. One hundred percent (100%) of P-card transactions are audited. The Finance division (Account Payable Department, P-card section) will be advised by the cardholder’s supervisor of any situation with a cardholder that is deemed a violation of P-card use. Do not

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lend out your card as the agency loses rights to dispute transactions. 2) Any unauthorized purchase by a cardholder is, by law, declared to be a private

purchase of the cardholder rather than a public debt. DPS policy requires an employee to note the unauthorized purchase on the Payment Card Transaction Tracking Log (Appendix D) and provide a personal check made out to DPS for the exact amount.

3) Invoices may not be paid with a P-card. Follow proper payment method for paying invoices. Using your P-card to pay any invoice subjects your card to cancellation.

VII. Payment Information/Processing Procedures

A. Payment for goods and services will be made from the fiscal year in which they were purchased or performed. Thus, you may not buy goods or have services performed during one fiscal year and pay for it out of another fiscal year. The signed credit card sales receipt will serve, for payment purposes, as the receiving document. The Account Payable Department will receive a consolidated invoice from Citibank that includes all the activity for all cards in the billing cycle. Allocation of charges will be applied to budgets the following month.

B. Maintaining Records. The Finance division Account Payable Department will

maintain the official audit file for all P-card transaction logs, billing statement copies, and copies of the receipts. It is the responsibility of the cardholder to maintain a secure file of all original receipts – these may be requested in the future.

C. Receipts. Individual receipt(s) obtained from the vendor(s) must be legible and

contain a description of the goods or services purchased. It must be of sufficient detail to support an audit of the payment file. The terms such as: “miscellaneous” or “general merchandise” are not acceptable. A numeric description (ex. HL1218) is not considered sufficient detail, be sure to include the name/description of the item(s).

D. Cardholder Processing Responsibilities: 1) When the cardholder receives his/her monthly statement of account, he/she must

audit the statement by comparing the receipts with the credit card billing statement and transaction log. If all match, attach receipts, sign the statement approving that you made all the transactions, and have your supervisor approve the transactions. Then distribute according to the following:

a. Within 10 working days of receipt of billing statement, validate all

transactions, make a copy of the statement and transaction log, and forward statement and log with all receipt copies to your supervisor for approval signature. Send the signed statement, transaction log, receipt copies, and any other relevant documents to the Accounts Payable Department (Attn: P Card

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Section) via email only to pcardstatements@dps.texas.gov. The cardholder must retain the originals for audit purposes. To prevent duplication issues, do not send a copy or originals to the Finance department after emailing. It is imperative your paperwork is received by the Finance department by the 25th of the same month following the billing cycle ending date. Expenditure and budget reports are generated from your submissions; therefore, your paperwork must be submitted in a timely manner.

b. The transaction log must include approval signature(s) from your supervisor transaction. Failure to comply with P-card policies and procedures, subjects your card to cancellation.

c. Keep a copy of the statement and original receipts for the current fiscal year. The retention schedule for the P-card paperwork is the current fiscal year and the two (2) previous fiscal years.

d. If a cardholder has not made any purchases during a billing cycle, he/she will not receive a statement from Citibank and does not need to send in any paperwork for that period to the Finance department. Occasionally, Citibank has information for all cardholders. If the statement is sent out from Citibank for informational purposes and has a zero (0) balance, do not send your statement to the Finance department.

2) If there are discrepancies, the cardholder must resolve the discrepancies; i.e.,

correct the log, contact the vendor for correction, etc. If the problem is with a vendor and it cannot be immediately resolved, annotate the transaction on the statement as a “disputed charge” and follow the procedures on handling disputed charges. Do not delay submitting your statement, receipt copies, and log to the Finance department (Attn: Payment Card section) while waiting for a dispute to be resolved.

Disputed Charges: What to do?

a) If a cardholder finds a discrepancy on a monthly statement, the cardholder should contact the vendor and attempt to resolve the problem immediately. All disputed items should be indicated on the statement and, if applicable, a memorandum of facts applicable to the dispute should be prepared and kept in the file for submission with the statement.

b) If a cardholder cannot resolve a disputed item directly with the vendor, the cardholder should contact Citibank by phone. Citibank will attempt to resolve the issue. If efforts are unsuccessful, you will need to complete the Declaration of Unauthorized Use Form. This form will be sent to Citibank to establish our contention of error. A copy of this form(s) must be submitted with the statement on which the disputed item(s) appear.

c) Citibank will place the charge in a “state of dispute” and the account may be given a provisional credit until receipt of adequate documentation from the vendor.

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re-posted to the account and the dispute considered closed. e) If the charge is suspected to be fraudulent, Citibank will immediately block

the card, and the cardholder will be notified by the Citibank. f) An investigation of the charge(s) will continue and a provisional credit will be

issued. A new card may be re-issued to the cardholder, if appropriate. If after the investigation is completed, the disputed charge appears to be legitimate, the transaction will then be posted to the new account.

g) Anyone suspecting fraudulent use or misapplication of the card should report this immediately to his/her supervisor and/or Regional/Service Commander who will be responsible for notifying the Accounts Payable department for investigation and appropriate action.

h) All questioned items must be communicated to Citibank within 60 days of the posting date of the charge.

E. Returns and Credits

1) If a cardholder must return an item for credit, the following procedures will be

followed:

(a) If applicable, contact the vendor and get instructions for returning the item.

(b) Ensure all returns appear on the Citibank statement and provide an explanation on the reason for the return.

(c) Note: Some suppliers may charge a restocking or handling fee for returns. If these returns are over 15% of the cost, you must contact the Account Payable department, PCard section, for concurrence. The restocking fee must be shown as a separate item on the credit receipt.

(d) The credit will be applied against the same budget the original transaction was charged against. You must submit both the credit receipt and the original charge receipt – both must be submitted with the statement. Remember, you cannot receive a cash refund for returned items.

(e) If the vendor accepts the returned merchandise and issues a credit, the credit transaction should appear on the following month’s statement. When reviewing the next month’s statement, ensure the credit transaction is referenced against a previous month’s transaction log so as to closeout the open annotation on it. The statement from one month should reference any previous entries on previous logs or statements.

(f) If a transaction requires dispute or return, it is recommended to maintain a log containing pertinent information and details during the resolution process. Recommended details to track where applicable are original order documentation, invoice, purchase date, shipping date and carrier, reason for dispute or return, response by vendor, return materials authorization (RMA) number, item return date, return shipment tracking information, credit receipt including date and amount, restocking fees, every point of contact to customer service representatives including date,

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time, and discussion details. F. Lost or Stolen

The cardholder must immediately notify Citibank, his/her supervisor, AND the Finance department, P-card section, of any card that has been lost or stolen. For notification to Citibank use the following telephone number:

Citibank 1-800-248-4533

(Tell the representative the call is regarding a State of Texas Payment Card. Always obtain and document the name of the Citibank representative to whom you reported the lost or stolen card and the date/time it was reported.)

Liability. DPS is financially liable for the card in the event it is lost or stolen and subsequently used. Fraud is defined as when an individual not authorized to use the card makes charges to the account, or when DPS does not directly nor indirectly benefit from the transaction. If charges are made prior to reporting the card lost or stolen, the amount will come out of the applicable budget assigned to the card. However, once you have notified Citibank that your card is lost or stolen, the agency/state is no longer liable for any purchases made with the card.

The following Appendix A contains the Citibank Application. This file may be accessed online at: https://dpsnet.tle.dps/Divisions/DirectorStaff/Finance/procurementCard.htm. Fax all applications to 512.424.7323 or Scan to Citibank Applications to CitiBankApplications@dps.texas.gov.

If you have any questions, you can contact the P-Card Team. See Appendix J.

*Note: Any New Payment Card Application must be submitted with the Payment Card Use Agreement.

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Appendix A: CITIBANK® COMMERCIAL CARD SETUP FORM

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Appendix B: Payment Card Use Agreement (ACT-63)

PAYMENT CARD USE AGREEMENT

I agree that use of the Payment Card will be governed by the following:

• I understand any misuse of the Payment Card may be subject to cancellation of the card and disciplinary action, up to and including termination of employment, and/or result in criminal penalties. I understand the Payment Card is to be used for State of Texas business only and not for personal use or fuel purchases. Use of the Payment Card for charges other than official state business is a direct violation of the State’s contract assigned by the Comptroller of Public Accounts (CPA) – Statewide Procurement Division (SPD) and 34 T.A.C. §5.57, Use of Payment Cards by State Agencies.

• I have read and understand the Payment Card Program Guide regarding the Payment Card. It represents

trust in me and my empowerment as a responsible agent to safeguard and protect agency assets.

• This is to officially acknowledge that I understand and will follow the Department of Public Safety (DPS) Payment Card rules and regulations. I understand I am expected to adhere to its established policies, procedures and rules and will be held accountable for compliance with all Payment Card rules, regulations, policies, and procedures governing the use of the State of Texas Payment Card.

• I agree I have sole responsibility for the use and accountability of the Payment Card.

• Should it be determined that I failed to use this Payment Card properly, I understand I may be held

personally liable, administratively and financially. I understand DPS may terminate my right to use this Payment Card for any reason. I agree to return the card to DPS immediately upon request or termination of my employment.

• I understand my Assistant Director, the Deputy Director, and my direct supervisor may be notified in

writing of any misuse or delinquency of my Payment Card account. I also understand any misuse of the Payment Card may be reflected in my next scheduled performance review and/or placed as a permanent notation in my personnel file.

• I understand this signed agreement is legally binding and may become a part of my personnel file.

I have read and understand the above-stated policies including the Payment Card regulations, procedures, and penalties for using a State of Texas Payment Card and agree to abide by them.

Printed name of cardholder Signature of cardholder

Printed name of Approving Official (AD or DAD) Signature of Approving Official (AD or DAD)

Date

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Appendix C:

Payment Card Transaction Tracking Log

1. OWNERSHIP SECTION: Enter the cardholder’s name, region and city, statement date, and card number information (last 4-digits).

2. QUANTITY: Enter the quantity of items you are buying.

3. UNIT COST: Enter the unit cost of the items you are buying.

4. TRANSACTION DATE: Enter the date the item(s) are being purchased.

5. VENDOR NAME: Enter the name of the supplier.

6. DESCRIPTION OF SUPPLY/SERVICE: Enter a brief description of the supply(s) or services(s)

ordered. If multiple items were ordered, enter each one unless they may be logically grouped. For example, car headlight, electrical fuse for a car, etc., can be listed as “auto parts” or “auto accessories.”

7. COST; Enter the total cost of the item(s) purchased.

8. HUB. Enter a “Yes” or “No” to represent the HUB status of the vendor. Remember, the same HUB

rules apply for acquisitions using the Payment card as for any other method of purchasing – solicit HUBs to the maximum extent possible.

9. DATE SUPPLY OR SERVICE RECEIVED: Enter the date of receipt of item(s)/service(s).

10. INDEX CODE: Enter the proper index code.

11. NIGP CODE: Enter the 5-digit Class / Item code.

12. APPROVAL SIGNATURE/DATE: This line is the approval signature of your superior BEFORE the

purchase is made.

13. TOTAL: Total all purchases for each sheet or, in the event less than a full sheet is used, total for each billing period. DO NOT INCLUDE MORE THAN ONE BILLING PERIOD PER PAGE.

14. CARDHOLDER SIGNATURE AND DATE: Following review, by the cardholder, reconciliation of

the log to the monthly statement, receipts, and any other documentation that may be necessary, the cardholder must sign the log and the monthly statement to show that he/she certifies them to be accurate and ready for audit.

15. BILLING STATEMENT TRANSACTION LOG APPROVAL AND DATE: This line is the approval

signature of your supervisor at the end of the month approving the monthly submission of your payment card statement, log, receipts, and other documentation.

NOTE: The Payment Card Transaction Log must be typed or printed legibly. The Log should be stapled

on the top of the statement and receipts.

DPS Payment Card Program Procedures Guide Revision Date: 01/04/17

Quantity Unit Cost Transaction Date Vendor Name Description of Purchased Item or Service Total Cost

HUB Yes/No

Date Supply or Service Received

Index Code

NIGP 5-digit Class-Item

Code

Appendix D: PAYMENT CARD - TRANSACTION TRACKING LOG

Cardholder Name: ___________________________________________

Month / Year: __________________________

Location: __________________________________________________

Card (Last 4 Digits): ______________________

PAGE ______ OF _______

TOTAL

Cardholder Signature: _______________________________

Approval Signature: _______________________________

Date: _____________________________________________

Date: ___________________________________________

Cardholder Printed Name: ____________________________

Approval Printed Name: ___________________________

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Appendix E:

Vendor HOLD Search The following are requirements and steps to take to check the Vendor HOLD Search of a merchant BEFORE making a purchase from them:

You must check the status of a merchant if you anticipate making a purchase of $500.00 or more from that merchant.

Documentation of vendor compliance is required for any purchase $500 or more. It is a requirement to check the Texas vendor hold status at Vendor Hold Search and the federal System for Award Management (SAM) at www.sam.gov to verify a vendor’s hold status prior to making a SPO purchase. SAM includes vendors listed on the federal excluded parties list, which prohibits these vendors from doing business at the federal and state level. It is a requirement to attach a screenshot of both the Texas Vendor Hold Search and SAM statuses to the RPA. Vendor status must not be conducted more than seven (7) days prior to purchase date. If the SPO guidelines are not adhered to, including proper documentation of vendor compliance, the buyer will be contacted by P&CS staff to document the acquisition as a non-compliant purchase.

Access the Comptroller’s web link at: https://fmcpa.cpa.state.tx.us/tpis

The “Vendor HOLD Search” screen will appear. It is here that you will enter the vendor name; if the vendor name is populated this indicates that the vendor is on HOLD with the Comptroller. If the vendors name does not appear after you have entered the name this indicates that the vendor is not on HOLD; print the page and attach this it with your CITIBANK billing statement. By state law, we can’t do business with any merchant that is on HOLD.

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Appendix F: Unauthorized Items

Payment Cards MAY NOT be utilized for the following:

A purchase of a personal nature Cash advances / cash refunds A prepayment for goods and/or services Any Purchase exceeding $2,000.00 Any purchase(s) where the annual aggregate costs will exceed

$5,000 to one vendor Any item that is listed on contract including:

o Data Discs (CD, CD-RW, DVD, DVD-RW, diskettes, floppy discs, etc.) and their cases

o Toner (that is on contract) o Security Services

Capitalized or controlled items Contract airfare, hotel reservations, or other travel related

expenses, even if work related Furniture Fuel Insurance / wreck repairs containing a personal property

claim Items for resale Memberships (including legal bar dues) Mobile devices and Communications equipment Consultant or professional services Witness or Contractor expenses TIBH or TCI/TDCJ purchases or DIR purchases over $1,000 Software and/or IT services, including cloud services Statewide Term or Managed contract items (FYI – this

includes items available in the TXSmartbuy System) Printing Services Food / Beverage Water Employee awards Utility services Revolving payments Any purchase where the cardholder signature agrees to terms

& conditions not reviewed and approved by P&CS Insurance surety bonds

All of the following Merchant Category Codes * will be declined at purchase:

3000 – 3299 All Airlines 3501 – 3744 All Hotels 4722 Travel Agencies 5681 Furriers and Fur Shops 5813 Bars, Taverns, Night Clubs,

Cocktail Lounges, Discotheques- or any other establishment where alcoholic beverages are sold

5921 Package Stores, Beer, Wine, Liquor

5944 Jewelry-Watches, Clocks and Silverware Stores

*Merchant Category Codes (MCC) are codes set up by the merchant to describe the type of establishment the vendor is. MCCs are established by the supplier’s industry.

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Appendix G:

TEXAS DEPARTMENT OF PUBLIC SAFETY HISTORICALLY UNDERUTILIZED BUSINESS (HUB) PROGRAM

The Texas Department of Public Safety is fully committed to the Good Faith Effort to enhance the opportunity of HUBs and small businesses to compete for contracts and purchases, increase the number of contracts awarded to HUBs and small business firms, create a fair and open competitive market, and improve community awareness.

The use of the Payment card to pay for a purchase does not exempt DPS from the purchasing requirements of state law and the Texas Comptroller of Public Accounts Statewide Procurement Division (SPD).

Policy: The Texas Comptroller of Public Accounts - SPD administers the Statewide HUB Program as outlined in Texas Government Code Chapter 2161.063. This section encourages the use of Historically Underutilized Businesses (HUBs) by state agencies in the implementation of this policy through the types of goods and services the agency’s needs in conjunction with race, ethnic, and gender-neutral means.

Mission: “We are a unique group of Texans with a proud heritage, passionately committed to providing Historically Underutilized Businesses and Service-disabled Veterans with procurement opportunities.”

Certification Eligibility: A business seeking certification as a Historically Underutilized Business is eligible based on the following criteria:

∗ A business must be at least 51% owned by a Black American, Hispanic American, Women, Asian Pacific American, Native American and/or Service Disabled Veteran

∗ U. S. Citizen ∗ Texas Resident ∗ Principal place of business must be located in the State of Texas ∗ The eligible owner must have proportionate interest and demonstrate active participation in the control,

operations and management of the day to day business activities. For additional information including a copy of the HUB Certification Application, visit

https://www.comptroller.texas.gov/purchasing/vendor/registration/ Benefits of HUB Certification: The State of Texas offers abundant opportunity for minority and owned businesses through the HUB Program. The program and its free four year certification provides minority and woman owned companies the opportunity to do business with state agencies, including institutions of higher education. .

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Appendix H: Capital vs Controlled Assets

CAPITAL VS. CONTROLLED ASSETS

CAPITAL ASSETS CONTROLLED ASSETS $5,000.00 OR MORE UP TO $4,999.99

Capital Accounts Controlled Accounts

15.04 Inventory Number. Each piece of property subject to inventory will be assigned a DPS inventory number by Accounting & Budget Control. Generally, items less than $5,000.00 will not be maintained on the automated capital inventory system. For purposes of inventory control, exceptions will be made for certain items.

The following items will be maintained on the automated Capital Inventory System regardless of cost:

• Firearms • Radars • Radios

The following items will be maintained on the automated Capital Inventory System provided unit cost exceeds $500.00:

• Stereo Systems • Cameras, Video Cameras • Digital Cameras • Video Recorders/Players • Camcorders • Television/VCR Combination • Television Sets • Video Cassette Recorders • Printers • Network Servers • Laptop Computers • Palm Pilot Computers • Personal Computers-CPU’s • Data Projectors • Global Positioning Systems (GPS) • Survey Equipment (Accident

Reconstruction) • LCD Projectors

Equipment subject to inventory control procedures as set forth in the DPS General Manual, Chapter 10, Section 10.15.00, entitled Property Accounting. For example, items with a value in excess of $5,000 or controlled items in excess of $500. Details and examples are provided in Sec. 10.15.04 of the General Manual.

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Appendix I: Frequently Asked Questions & Answers

Frequently Asked Questions & Answers

How does DPS benefit from the P-card Program?

When employees use the P-card, DPS gets greater productivity as a result of reduced paperwork, savings from consolidating multiple supplier invoices to one statement from Citibank, greater control over spending, and reduced purchasing cycle time.

What should I do if my P-card is lost or stolen?

You should call Citibank, Customer Service, toll-free, 1-800-248-4533 and the Finance division, P-card section, immediately, to report the P-card missing and request a replacement.

What do I do if a purchase is denied?

Your purchase may have exceeded a limit placed on your P-card. Contact the Finance division, P-card section, for assistance.

What should I do if I need to change my per-month or per-transaction limit?

Contact your supervisor who will contact your DAD/Budget Manager who will coordinate with the Finance division, P-card section, for the change.

Will use of the P-card affect my credit report?

NO. The P-card is an agency and state liability card, and carries no personal liability for cardholders who use the P-card in accordance with agency policy and procedures.

Whom should I contact to resolve an error or dispute concerning my account?

You should first contact the supplier/vendor. Most exceptions or issues can be resolved between you and the supplier/vendor. If you cannot resolve an issue with the supplier/vendor, print a Dispute Form. Complete and fax this form to Citibank (904-954-7700) and a copy to the Finance division, P-card section.

What if I made charges during a billing cycle and have not received a statement from Citibank by the 15th

of the month? The billing cycle usually begins the 4t h each month and ends on the 3rd of the next month. The cardholder will normally receive a billing statement from Citibank by the 15th of each month. If a billing statement has not been received by the 15th, the cardholder needs to contact Finance. If you do not have access to your statement online, a statement will be forwarded to you.

With internet access, a cardholder can be set up to view his/her account statement online at any time through Citibank Online. The statement may be printed from the website: https://home.cards.citidirect.com/CommercialCard/Cards.html

Do not wait until after the 15th of the month to request a statement as this will only slow the process of your paperwork. Late submission of approved billing statements, subjects your card to cancellation.

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Appendix J:

Important Phone Numbers and Contacts

Department of Public Safety Finance Division 512-424-2060

Karyn Duty, PCard Administrator 512-424-2542

PCard Staff:

Belinda Saunders, Team Lead 512-424-5701

Maudrie Hicks 512-424-2516

Pamela Leifeste 512-424-2826

Debbie Villanova 512-424-5663

David Rodriguez 512-424-7476

PCard Fax 512-424-7323

Email Scanned PCard Statements pcardstatements@dps.texas.gov

Email Scanned Applications citibankapplications@dps.texas.gov Returns, Credits, and Disputed Charges; as well as to Report Fraud or Misuse 512-424-2518 Procurement and Contract Services 512-424-5255

Citibank

Citibank Customer Service 800-248-4553

Citibank Fraud Early Warning (FEW) 800-945-3114

DPS Payment Card Program Procedures Guide Revision Date: 01/04/17