SUBSECTION 4.3.12.3
OPERATIONAL PROCEDURES

The following are the minimum requirements that should be included in an agency’s purchase card policies and procedures. An agency may expand these requirements to better meet the agency’s unique needs.

4.3.12.3.1

Card Ordering

Effective Date:

Sept. 1, 1997

An agency electing to participate in the purchase card program should contact the purchase card provider by phone or written correspondence. Written correspondence should be on agency letterhead and signed by the agency director or director’s designee. The letter should include the name and telephone number of the designated purchasing card manager.

The purchasing card manager may order the purchase card after completing all necessary contractor provided implementation forms that establishes desired electronic controls.

Refer to the purchase card implementation manual for more information about initial set up of purchase card program in an agency.

4.3.12.3.2

Authorization Control

Effective Date:

Sept. 1, 1997

Authorization controls are set by the agency. Controls can be set at the agency or cardholder level. Absent specific authorization by OSP, the agency aggregate credit limit is $50,000.

4.3.12.3.3

Purchase Card Security

Effective Date:

Sept. 1, 1997

Purchase cards and account numbers must be safeguarded against loss, theft, and unauthorized use. Cards should be kept by the card custodian in a secure location.

4.3.12.3.4

Processing Payments

Effective Date:

Sept. 1, 1997

It is the responsibility of the agency head, or authorized designee, to certify that all expenditures/expenses and disbursements are proper and correct. Agencies are responsible for processing payments to authorized vendors, contractors, and others providing goods and services to the agency.

4.3.12.3.4.a

Payment Terms

Payment terms are net thirty (30) days. Agencies are encouraged to pay sooner than thirty days in order to take advantage of rebate incentives. Rebate incentives encourage agencies to receive statements and make payments more frequently than monthly. Refer to the Purchase Card implementation manual for more information about rebate opportunities available to agencies.

4.3.12.3.4.b

Payment Method

Agencies may pay the purchase card provider either by warrant or by electronic fund transfer (EFT) at the option of the agency.

4.3.12.3.4.c

Late Payment Charge

If agencies fail to make timely payments, the purchase card provider can charge a late payment fee of 1% per month on the amount overdue or a minimum of $1.00 under RCW 39.76.

4.3.12.3.5

Disputed Items

Effective Date:

Sept. 1, 1997

Agencies should immediately notify the purchase card provider or merchant, as appropriate, of any items in dispute. Disputed items should be documented in writing, investigated, and resolved within 60 days from discovery of the charge or from the first statement on which the disputed charge appears.

4.3.12.3.6

Reconciliation

Effective Date:

Sept.1, 1997

The purchase card provider shall send each card custodian a card custodian statement that displays detail transactions made during the current billing cycle. Responsibility for reconciliation of card custodian statement rests with the card custodian. The card custodian should secure and retain documentation supporting purchases charged to the purchase card. The approving manager should review the reconciliation.

4.3.12.3.7

Lost or Stolen Cards

Effective Date:

Sept. 1, 1997

If a purchase card is lost or stolen, the card custodian should immediately notify the purchase card provider and the purchasing card manager.

4.3.12.3.8

Purchase Card Abuse

Effective Date:

Sept.1, 1997

The approving manager, in consultation with the purchasing card manager, is responsible for taking appropriate disciplinary actions, consistent with applicable personnel policies, for misuse of the purchase card.

4.3.12.3.9

Post Audits

Effective Date:

Sept. 1, 1997

Purchase card transactions are subject to audit for compliance with the terms and conditions of the purchase card program. Agencies are required to retain all source documents for all purchases made using the purchase card.

4.3.12.3.10

Purchase Card Transaction Log

Effective Date:

Sept. 1, 1997

It is recommended that agencies develop and maintain a purchase card transaction log to record each purchase made using the purchase card. The transaction log should contain all information necessary to reconcile the statement of accounts. All supporting documents (sales receipt, credit slips, cash register slips, order forms, receiving reports, etc.) should be kept and should be readily available when requested. Any items returned should also be recorded on the log. The transaction log will enable the card custodian to reconcile on-line data as well as monthly statements.

A sample purchase card transaction log is included in the implementation manual which is distributed to agencies participating in the purchase card program. Agencies are encouraged to use the sample log or design a log that will suit their own unique requirements.