Corporate Purchasing Card

C O R P O R AT E

P U R C H A S I N G

C A R D

C A R D H O L D E R /

R E V I E W E R

T R A I N I N G

CPC TRAINING – AGENDA

• Introduction to the State Corporate

Purchasing Card (CPC) Program

• Definitions

• Responsibilities

- Cardholder

- Authorized Reviewer

• Types of Purchases

• Split Purchases

• Spending Limits*

• Defective Merchandise/Disputes

• No Activity on CPC

• What You Can’t Do or Purchase

• Cardholder Reporting & Recordkeeping

– Lost or Stolen/Suspending Card Procedures

• CPC Package

• Common Issues

• Process of Corporate Purchase Card

• Helpful Hints

• New Accounts Payable Email Information

• Testing

• Important Contact Information

– Updated 11.9.2021

INTRODUCTION TO THE CORPORATE

PURCHASE CARD (CPC) PROGRAM

• CPC program was implemented in 1997

• CPC program operates on a monthly billing cycle

• Cycle starts on the 26

of each month and ends on the 25

of the following month

• This is a General Accounting Division (GAD) driven program

• Comptroller’s Corporate Purchasing Card Program Policy &

Procedures

DEFINITIONS

• Equipment: meaning any item with a purchase price of $500 or more for NON-SENSITIVE items and these items

have an expected useful life of more than 1 year (typically furniture)

– Needs to have a Property Sticker on it

• Equipment: SENSITIVE ITEMS have a purchase price limit of $250 or more (Ex: Laptops, Tablets, Cell Phones)

– Should have a Property Sticker on it

– OLA auditors look for Game Systems to be logged and photos

• ALL EQUIPMENT: No equipment can be purchased on the CPC without going through Equipment Process.

• Spending Needs: meaning a need to make authorized purchases which further the business of the state (sections

24.26 of the Comptroller’s procedures)

• Split Purchases: meaning dividing purchases into two or more smaller amounts to circumvent procurement

regulations – STRICTLY PROHIBITED

DEFINITIONS CONTINUED…

• Questionable Purchases: specific transactions identified by GAD staff on a monthly basis

that are “questionable” in nature. If questioned by your purchases you MUST respond within 5

business days as GAD requires agency to respond in 45 days of date of purchase.

• Sales and Use Tax: taxes collected by merchants on items purchased. The State of Maryland

is EXEMPT from Maryland Tax. Tax Exempt Number is 30002563 which is located on each

card.

• Preferred Vendor – a statewide contractor approved by Department of Budget &

Management (DBM) or the Department of General Services (DGS) to provide commodities

and/or services – List of Preferred Vendors is included in your packet & sent out each Fiscal

Year to Cardholders

RESPONSIBILITIES OF THE

CARDHOLDER

• Responsible for using their assigned card to make appropriate, AUTHORIZED PURCHASES. Cards can

NOT be shared

• Must gain APPROVAL from supervisor prior to purchase

• Responsible for all purchases, spending needs, and limits within the procedures

• Responsible for tracking all expenditures, coding receipts, preparing CPC Package, and obtaining approval

signature

– SIGN BANK STATEMENT, SIGN ACTIVITY LOG, Ensure all purchases that require a req have 2 bids/quotes & req copy

in CPC package

• Responsible for submitting CPC Package on DUE DATE in its entirety

• CPC Security

• Do Not put your card on file with a vendor

• Do Not create “accounts” with vendors such as Amazon, Chewy or any online vendor

• Do not give your card to someone else to go and purchase any goods or services – this is an automatic

termination

RESPONSIBILITIES OF AUTHORIZED

REVIEWER

• Review all transactions

– Ensure they are accounted for on log and match the monthly bank statement – SIGN the bank

statement

– Ensure reconciliation is done properly and in a timely manner

– Ensure all receipts are detailed, present in package and legible

– Ensure activity log has the following – SIGN the activity log:

• Date of Order, Vendor/Supplier, Description of Purchase, PCA/OBJ Codes, Invoice # (if

applicable), Requisition Number, Delivery Cost, Sales Tax (SHOULD BE ZERO), Total of

Purchase, Date of Delivery/Purchase

• Requisition number needs to be on the log for each purchase that requires one (place under

No. column)\

• Ensure each purchase that requires a Req has the 2 quotes/bids and Req copy in the CPC

package

RESPONSIBILITIES OF AUTHORIZED

REVIEWER CONTINUED

• Personally verify the bank statement – sign the bank statement

• Personally verify the CPC log – sign the CPC log

• Personally verify the 3

Level Report of Monthly Transactions (sent each

month)

– SIGN the Memorandum to Confirm 3

Level Review

• Ensure Cardholder is following all policies/procedures and CPC package is

submitted on time to the Budget/Fiscal Personnel

PURCHASING CARD PROGRAM

ADMINISTRATOR PCPA

• An individual designated by the ordering agency or institution to

perform administrative functions within the limits of delegated

authority to maintain the effectiveness of the program.

• PCPAs CANNOT have a corporate purchasing card. Any exception to

this must be approved by GAD

TYPES OF PURCHASES

• ALL purchases MUST be approved by Supervisor

• All Equipment Purchases to include any Furniture needs: Cardholder needs to email PROPERTY

OFFICER & cc Reviewer and CPC email of needs and PROPERTY OFFICER FOR MDH has the items on

hand or if the items can be purchased on CPC.

– Depends on the amount depends on CPC can be used

• Facility Operations: only make purchases related to facility spending

• Emergency Repairs: repair order for emergency repairs includes repairs necessary to maintain youth &

staff health, safety, and well-being

– Subject to single purchase limit & not to exceed $5000

– Must be approved by Supervisor and PCPA

– Must follow Procurement Guidelines

• Refer to the Small Procurement Guidelines

TYPES OF PURCHASES

• All Equipment Purchases to include any Furniture needs: Cardholder needs to email

PROPERTY OFFICER & cc Reviewer and CPC email of needs and PROPERTY OFFICER will

confirm if MDH has the items on hand or if the items can be purchased on CPC.

– Depends on the amount depends on CPC can be used

– Including but not limited to office supplies

– Special accommodations for youth (emergency clothing needs)

• All Other purchases:

– Any other spending need not discussed

– MUST follow the single purchase limit

PREFERRED AND MBE VENDORS

• Most, if not all, purchases should be made with one of the following:

– Determine if there a current contract already in place by checking the following:

• A. Check DGS, DOIT, and DBM’s websites;

• B. Preferred Provider; or

– Preferred vendor – statewide approved/contracted vendor

– MBE – Certified Minority Business Enterprises

• Agency has 29% Minority Business Enterprises (MBE) purchasing goal

SPLIT PURCHASES

WHAT IS A SPLIT

• A purchase made to the SAME vendor on

the SAME day but in 2 different

transactions

– Tiffani went to Walmart and split her cart

into 2 orders. First Receipt was for Unit

A for $850.00. Second Receipt was for

Unit B for $400.00.

– This is a Split

– This is an OLA Audit Finding

OTHER EXAMPLES

• Steven orders boots from BISM and sends

$250 worth to Noyes and $300 to CYDC.

Codes to proper PCA and AOBJ. This is a

split.

• Savion orders from Rudolph’s on Monday

and get’s $500.00 in Office Supplies for

HQ and then on Wednesday orders

$2,300.00 for Office Supplies. This is a

split purchases and needs a requisition.

SPENDING LIMITS - $2500 OR LESS

• $2500 or Less requires no requisition or purchase order

• One time Charge (non-recurring)

– Exception is Direct TV which was authorized in 2017

• NO Equipment, NO furniture, NO IT equipment

• Use statewide contracts (when available) – WAIVER is needed from the Preferred

Vendor if they can’t be used

• If a WAIVER is obtained it needs to be included in the CPC Package

– If a Preferred Vendor does not provide one; request in writing and CC the PCPA

• If the waiver is still not sent then include the email requesting the waiver into the CPC Package

• NO REQUISITION REQUIRED (see Small Procurement Guidelines sent by Procurement 10/2021)

SPENDING LIMITS - $2501 - $4,999

• One-time Charge only

• No Equipment, Furniture, or IT equipment

• Use Statewide Contracts where available

• Must obtain 2 bids and/or quotes

• Must enter requisition in FMIS

– 2100 Screen in ADPICS

– Use Interface NP on Requisitions

– Email these to your Procurement Officer

– Do not order items/service until approved

– Enter Req # on Activity Log

• The 2 bids/quotes must also be included in your CPC

Package for documentation screen

• NO Split Charges

• Do NOT place order until Approval is

completed

• 9220 Screen in ADPICS provides you the

approval path of where it is in the approval

process

• Requisition Number (must be on LOG) – use

notepad

– Include a copy of the Requisition in the CPC

Package for documenting purposes

Transactions over $5,000 – NOT ALLOWED ON CPC

DEFECTIVE MERCHANDISE/DISPUTES

• Defective purchases – follow vendors return policy for replacement or credit

• Disputes – Bank Statement of Disputed Item Form should be completed and

forwarded to the MDH PCPA ASAP (mdh.cpc@maryland.gov)

– PCPA will track and ensure rectified

– Only the Unit/Institution/LHD APCPA is authorized to submit disputes to

the bank

– Once credit appears on statement record on activity log

NO ACTIVITY – WHAT DO WE DO?

• Print out a Corporate Purchase Card Activity Log

• Put a line diagonal from corner to corner and mark NO ACTIVITY

• Ensure to still enter the MONTH and YEAR at the top

• Cardholder Signs, Reviewer Signs, and Budget/Fiscal Personnel Signs

• Submit each month to your reviewer

• 3 months of No Activity

– Budget/Fiscal Personnel will request a Memorandum of Justification of why there is no activity on

the card.

– This is required for internal tracking as GAD will then request this record during their reviews.

• 6 months of No Activity

– the PCPA will request a Memorandum of Justification of why there is no activity on the card. The

card will more than likely be terminated.

• Making one purchase for $100 worth of office supplies is not justification to keep a card open

WHAT YOU CANNOT PURCHASE OR

NOT DO

• Personnel Items

• GIFT CARDS

• Furniture, Equipment, IT Equipment

• Motor Vehicles to include gas, oil, repairs (even in State Car)

• Travel Accommodations – mdh.dgatravel@Maryland.gov is where to book airfare

– You must use your own debit/credit card at check in for all incidentals

• Weapons, Alcohol, Tobacco

• Cash advances

• No CREATION OF ACCOUNTS – Amazon, Chewy, etc.

• No Savings or Rewards Programs – Petco Plus, Giant Rewards, Safeway Rewards

• No Saving Cards on File with Vendors – BISM, MCE, Rudolph's

• MUST REPORT ANY EMPLOYEE THAT IS OUT OFFICE FOR MORE THAN 5 DAYS – we will

place a hold on their card

REPORTING & RECORDKEEPING

• Lost or Stolen CPC: Call Primary CPC Immediately: Trisha Walters 443.610.1403 or Anna Pisarchik 410-767-

4392 and then submit email to MDH.CPC@maryland.gov and call US Bank 800.344.5696

– Card will be terminated, and a new card issued

• All purchases and credits must be evidenced by itemized documentation

• Receipt, sales slip, packing slip, repair order, or other documentation showing the price of each item or service purchased

• Completed activity log (Signed by Fiscal Officer, Cardholder & Reviewer)

– Completed – the log sets off alerts for requisitions and sales tax

• CPC Bank Statement (Signed by Fiscal Officer, Cardholder & Reviewer)

• All invoices and backup

– Emails of approval, photos of purchases if applicable, waivers or email requests, emergency documentation

– $2501 to $5000 2 quotes/bids and FMIS Req (print for package)

• No activity, CCH must turn in activity log with statement showing No Activity

• If card hold is on extended leave and not available, card will be suspended and Level 3 Report will be printed by

Budget/Fiscal Personnel

• Send to Reviewer for Signature – Reviewer sends to Budget/Fiscal Personnel by the 15

of the month

CPC PACKAGE

• What is it???

– CPC Activity Log (Signed by Fiscal Officer, Cardholder & Reviewer)

– CPC Bank Statement (Signed by Fiscal Officer, Cardholder & Reviewer)

– Receipts/Invoices

• All receipts need to be legible, have NO sales tax, coding on them and REQ numbers and DETAILED

– IF any purchases are $2501 or more: include 2 bids/quotes plus FMIS requisition in the CPC Package

– 3

Level Review Memo (Signed by Reviewer)

• Turning in the Package

– Email to the Reviewer before the 15

of each month – the Reviewer must submit to the Budget/Fiscal Personnel by the

of each month

– Can NOT BE MAILED

• No Activity

– Still MUST turn in a log with statement “NO activity for the month of XXXX” (Signed by Cardholder & Reviewer)

COMMON ISSUES FOR FISCAL

• Late Packages: DUE BY THE 15

of every

month

• Purchase of Equipment

• Sales Tax

– Need to obtain a Credit

• Split Purchases

• Non-use of State Contracts

• Missing Receipts

• No Requisitions

• Missing Documentation

• No Supervisor Approval/Signature

• Allowing other staff to use the card –

VIOLATION

• Cards on File

PROCESS OF THE CPC PACKAGE

• Due by the 15

to Budget/Fiscal Personnel – Reviewer will review and approve the package, turn package into

Budget/Fiscal Personnel

• Budget/Fiscal Personnel reviews all receipts for compliance

– Matches activity log to bank statement to all receipts

– Request missing or additional documents

– Request missing signature

• Budget/Fiscal Personnel enters all entries on a Journal Entry (JE)

• Budget/Fiscal Personnel then reviews all transactions and Journal Entry

• Budget/Fiscal Personnel enters JE into FMIS

• Budget/Fiscal Personnel submits Certification to MDH.CPC@Maryland.gov

• PCPA submits Certification for Agency to GAD (due by 25

of the month)

HELPFUL HINTS!

• Complete Activity Log with each Purchase

• Keep an envelope labeled “CPC Receipts”

• Plan big purchases in order to get Requisition/PO before purchase is needed

• Seek approval when planning your purchases

• Accounts Payable receives invoices at times & will forward to Cardholders

GENERAL TESTING

• Who turns in the CPC Package?

• What is the due date to the Budget/Fiscal Office of all CPC Packages?

• What are the parameters for a requisition?

• Name 1 of 3 locations to identify where to find a statewide contract.

• What do you need if a Preferred Vendor can not fulfill your order or send it promptly?

• Who is your Primary PCPA?

• What Department do you contact for purchasing questions?

GENERAL ANSWERS

• Reviewer

• 15

• $2501 - $5000

• DGS, DBM, DoIT

• Waiver

• Trisha Walters, back up - Anna Pisarchik

• Procurement

TESTING

• Trinity needs to purchase medical supplies for 4 facilities what is step 1 before using the CPC?

She has already gotten the approval?

• Savion has identified that his purchase of youth spending needs is not covered by a statewide

or preferred vendor. He estimates the cost to be $2600.00 what does he need to do before

purchasing? *hint – 3 things he needs to do*

• Steven is completing his package and had an approved purchase of office supplies (Copier

Paper, etc) for $3000.00. What should include in his CPC package for this purchase?

• Trinity needs to purchase Port-a-Potties for CYDC – called vendor and can obtain for $4500

and needs this as an emergency purchase. Her one time purchase limit is $2500.00. What

should she do?

• Savion needs to obtain office chairs for Region 2. It’s $300.00. This is furniture; can just

purchase or is there a step to take?

• Trenton spent nothing for the month of December; what does he need to do? Trenton went 3

months without spending, what does his reviewer have to answer?

• Steven’s total at MCE comes to $6000.00; is he able to use his CPC?

ANSWERS

• Trinity: Review the Statewide Contracts & Preferred Vendors

• Savion: 1. Obtain 2 quotes 2. Enter a Requisition into FMIS 3. Email Procurement Officer

• Steven: Receipt, 2 quotes/bids, Req# and Screenshot of Req

• Trinity: Gain Approval from Supervisor, Contact PCPA (Tiffani), Follow Procurement – Contact 2

Vendors for quotes – no toilets so detrimental to health, welfare and safety to youth – once

approval is gained – get Port-a-Potties in and req entered

• Savion: Contact Joe Hester. Joe emails rather he has chairs in stock or not. Due to amount –

approved for CPC

• Trenton: No Activity on Activity Log; Justification for No Activity for 3 months

• Steven: No, per GAD and program the max one time purchase limit is $5000

IMPORTANT CONTACTS

• US Bank Cardholder Customer Service 800-344-5696

• PCPA –Trisha Walters, 443.610.1403, trisha.w[email protected]

• PCPA Backup – Anna Pisarchik, 410.767.4392 (O), anna.pisarchik@maryland.gov

• Card Recipient – Rae Davis rae.davis1@maryland.gov ; Dipak Patel dipak.patel@maryland.gov

• MDH CPC Mailbox: MDH.CPC@maryland.gov

1.Corporate Purchasing Quiz