4.3.12.1.1

Purpose

Effective Date:

Sept. 1, 1997

This section contains the policies, regulations, and procedures for the use of the purchase card. The Department of General Administration (GA) through the Office of State Procurement (OSP) has established a purchase card program. The purpose of the program is to provide for rapid acquisition of small dollar purchases and to reduce the amount of paperwork required when making certain types of purchases. Purchase card programs may also be established by institutions of higher education.

4.3.12.1.2

Authority

Effective Date:

Sept. 1, 1997

4.3.12.1.2.a	RCW 43.19.185 authorizes agencies to use credit cards (e.g., purchase card) for making purchases under rules established by GA. GA codified these rules in WAC 236-48-250 through WAC 236-48-300.
4.3.12.1.2.b	RCW 43.19.1905 authorizes state agencies to purchase materials, supplies, services, and equipment of equal quantity and quality to those on state contract from noncontract suppliers provided that an agency notifies OSP.
4.3.12.1.2.c	RCW 28B.10.029 authorizes institutions of higher education to independently exercise certain powers otherwise granted to the Director of GA.

4.3.12.1.3

Policies

Effective Date:

Sept. 1, 1997

	Each agency is to define policies for using the purchase card. The purchase card may be used only to purchase goods and services for the agency. The purchase card is intended to promote purchasing efficiency, flexibility, and convenience. Purchases from vendors that accept credit card payments may be charged to the purchase card.
	The aggregate limit for credit card purchases for each agency is $50,000 per WAC 236-48-252. An agency may request a higher aggregate from OSP. The request must be in writing and must be approved in writing by OSP before taking effect.

4.3.12.1.4

Card Usage

Effective Date:

Sept.. 1, 1997

4.3.12.1.4.a	The purchase card is typically used to procure small dollar amount goods and services. Purchasing requirements such as mandatory use state contracts that would normally apply are still applicable. Agencies are encouraged to review delegated purchasing authority to achieve maximum benefits from the program.
4.3.12.1.4.b	The purchase card may not be used to:
	Obtain cash advances from financial institutions.
	Make personal purchases.
	Purchase materials or services from any member of the card custodian’s immediate family.
	Purchase equipment, materials, or supplies restricted by policies, guidelines or contractual agreements.
	Purchase travel or other travel related expenses unless prior written approval is obtained from OSP. (Refer to Sections 4.2.2.2.2 and 4.2.3.2.3 for the preferred method of paying travel expenses.)

4.3.12.1.5

Applicability

Effective Date:

Sept. 1, 1997

4.3.12.1.5.a

This section applies to all agencies of the state of Washington, unless otherwise exempted by statute. The Budget and Accounting Act defines the term "agency" to mean and include "every state office, officer, each institution, whether educational, correctional or other, and every department, division, board and commission, except as otherwise provided."

4.3.12.1.5.b

Agencies may request a waiver from complying with specific requirements of this section. Absent specific reference to OSP, the request must be in writing and approved in writing by the Director of the Office of Financial Management (OFM) before the waiver may take effect. Such waivers automatically expire at the end of the fiscal biennium for which they were granted and must be reapproved in writing to remain in force. To assure timely approval of waivers, agencies should submit waivers to OFM no later than 10 days before the proposed effective date.

4.3.12.1.6

Definitions

Effective Date:

Sept. 1, 1997

4.3.12.1.6.a	Approving Manager - An individual within an agency who is responsible for designating card custodians and establishing purchase card limits within the organization.
4.3.12.1.6.b	Card Custodian - An individual who is assigned responsibility of card security and issuance of cards to authorized users.
4.3.12.1.6.c	Card Custodian Statement - A zero balance due statement, listing all transactions during the billing period, that is sent to the card custodian by the purchase card provider.
4.3.12.1.6.d	Designated Finance Office - The office designated by the agency to receive the official statement and, in most instances, make payment against the official statement.
4.3.12.1.6.e	Disputed Item - An item appearing on the card custodian statement for which the card custodian disagrees with the charge.
4.3.12.1.6.f	Electronic Access - The integration of electronic based systems that provides for on-line transaction detail inquiries and reporting.
4.3.12.1.6.g	Official Statement – A consolidated statement listing all card custodian charges that is usually sent to the designated finance office for payment.
4.3.12.1.6.h	Purchase Card - A credit card issued to a card custodian for the purpose of making authorized purchases on behalf of the agency.
4.3.12.1.6.i	Purchasing Card Manager - An individual who serves as the administrator of the purchase card program within an agency and is responsible for providing training, advice, direction, consultation, and assistance to approving managers and card custodians.
4.3.12.1.6.j	Purchase Card Provider - An individual, company, firm, or combination thereof with whom the state of Washington contracts for purchase card services.
4.3.12.1.6.k	Purchase Card Transaction Log - A record kept by the card custodian which lists purchase card transactions in detail.