3-Appendix B R5350 FCPS.pdf

Regulation 5350.6

Financial Services

Appendix B

RFP200004256

Office of the Comptroller

Effective 03/11/24

OFFICE OF THE COMPTROLLER

Accounting Operations

Procurement Card Management

This regulation supersedes Regulation 5350.5

I. PURPOSE

To establish procurement card program procedures.

II. SUMMARY OF CHANGES SINCE LAST PUBLICATION

1. Section VI.E.4.c. the word “procurement card” was added.

2. Section VI.E.4.e. was added.

3. Section III.C. was revised to remove reference to program manager.

4. Section III.D. was added to define program manager.

5. Section III.G. has been deleted.

6. Section VI.A.3. has been deleted.

7. Section VI.D.1. “$5,000” has been changed to “$10,000” and “comptroller” and “director” have been changed to “office.”

8. Section VI.D.2. “$5,000” has been changed to “$10,000.”

9. Section VI.D.3. Has been deleted.

10. Section VI.E.1.d. “16” has been changed to “8.”

11. Section VI.E.3.a. “Edits to transactions in PaymentNet must be completed by Friday…” has been deleted.

12. Section VI.E.3.B. “(first business day of the week)” has been deleted.

13. Attachment D “Card Number” changed to “Last 8 Digits of Pcard Number.”

14. The word “designee” has been deleted in its entirety.

III. DEFINITIONS

A. Procurement Card – A purchasing card issued by FCPS’ financial institution for the purpose of acquiring goods and services in an efficient and effective manner.

B. Procurement Card Program Administrator – FCPS employee in the Department of

Financial Services assigned to administer the procurement card program.

C. Principal – The Principal is the person at a designated school with fiscal oversight of operations who approves purchases and ensures transactions are conducted in accordance with the current version of Regulation 5012, Purchasing Goods and Non- Professional Services Using Appropriated and Nonappropriated Funds (Regulation 5012).

D. Program Manager - The Program Manager is the position within a department/office/program with fiscal oversight of operations who approves purchases and ensures transactions are conducted in accordance with the current version of Regulation 5012, Purchasing Goods and Non-Professional Services Using Appropriated and Nonappropriated Funds (Regulation 5012). Program Manager titles include but are not limited to Superintendent, Chief of a department, Assistant Superintendent, Executive Director, or Director.

E. Card User – FCPS employee authorized to use procurement cards to purchase goods and services.

F. Card Custodian – FCPS employee assigned by the principal/program manager to safeguard and release procurement cards for preauthorized use and maintain a procurement card log to ensure transactions are recorded in a timely manner.

G. Reconciler – FCPS employee assigned by the principal/program manager to verify and reconcile transactions against the financial institution’s procurement card statement.

H. Financial Institution – The contracted service provider who issues procurement cards.

The current financial institution is JP Morgan Chase.

I. PaymentNet – An online procurement card management system provided by the financial institution, currently JP Morgan Chase.

IV. GENERAL REQUIREMENTS

Procurement cards provide an efficient and effective method for the purchase of goods and services. The principal/program manager must ensure that the purchase of goods and services with procurement cards comply with the current version of Regulation 5012.

Additionally, to protect against fraud and misuse, principals/program managers must safeguard procurement cards issued to their school/office and ensure adequate internal controls are in place and followed.

V. RESPONSIBILITIES

A. The Office of the Comptroller, Department of Financial Services, is responsible for administering the procurement card program and updating this regulation.

B. The principal/program manager is responsible for ensuring compliance with the provisions of this regulation.

VI. PROCUREMENT CARD PROGRAM

A. Authorization to Use Procurement Cards

Procurement cards may only be used by Fairfax County Public Schools (FCPS) employees for authorized business expenses in direct support of the education mission of FCPS. Misuse of the card will result in revocation of the procurement card and may result in further disciplinary action, up to and including termination of employment. If fraud or misuse is suspected, the principal/program manager must immediately contact the accounting operations section, Office of the Comptroller, for further guidance.

1. The principal/program manager must read and sign the Procurement Card Principal/Program Manager’s Statement of Responsibility form (Attachment A) for all appropriated and nonappropriated procurement cards assigned to his or her program and forward to the accounting operations section, Office of the Comptroller. A new form (Attachment A) is required any time there is a change in position.

2. The principal/program manager must ensure that each employee reads and signs the Procurement Card Employee Acknowledgement Disclosure form (Attachment B) before initial use of any appropriated and nonappropriated procurement card. The school/office must retain the disclosure forms for audit purposes.

3. Procurement card custodians are required to use PaymentNet to access transactions and monthly statements. To request access to PaymentNet use the form at the following link:

Payment Net PN4 Access Form (fcps.edu)This link is available only through computers within the internal FCPS network (EmployeeHub).

B. Types of Procurement Cards

1. Appropriated Funded Procurement Card

a. Department or School Named Card

These cards are issued in the name of a department, school, or center to procure goods and services utilizing appropriated funds. These cards may be used by authorized personnel designated by principal/program managers.

b. Individual Named Card https://hub.fcps.edu/system/files/2021-08/PaymentNetPN4AccessForm.pdf

These cards are issued in the name of an individual user to procure goods and services using appropriated funds. The issuance of individual named cards requires the approval of the assistant superintendent, Chief Financal Officer and Comptroller, as well as additional procedures prescribed in Section VI.C.1.b. This card has enhanced disputing rights with the financial institution to research and recover funds for unauthorized charges.

c. Declining Balance Card

These cards are issued in the name of a department or school to purchase equipment for school renovations and other construction projects and has a predetermined dollar limit based on project funding.

d. FOCUS Marketplace

These cards are designated for purchases in the FOCUS Marketplace. These cards are kept with the Office of the Comptroller and are not distributed to schools and departments. The card numbers are provided to vendors accepting FOCUS Marketplace orders.

2. Local School Activity Funded Procurement Card

These cards are issued to schools to procure goods and services utilizing school activity funds. These cards may be used by authorized personnel designated by principal/program managers. These cards have limited disputing rights with the financial institution to research and recover funds for unauthorized charges.

C. Requesting a New Procurement Card or Changing an Existing Card

1. The principal/program manager must submit a request based on the type of card needed as follows.

a. Department or School Named Card – The principal/program manager must complete the Procurement Card Request or Change Form (Attachment C) and forward to the accounting operations section, Office of the Comptroller.

b. Individual Named Card – The principal/program manager must complete the Procurement Card Request or Change Form (Attachment C) and obtain approval from their respective region assistant superintendent/department assistant superintendent In addition, the approval of the assistant superintendent, Chief Financial Officer and Comptroller must be obtained. The individual must provide their date of birth, home address, and proof of citizenship to receive an individual named procurement card. This information will be sent to the financial institution as part of their requirements and the individual may be subject to a credit check.

The Procurement Card Request or Change form and personal information must be forwarded to the accounting operations section, Office of the Comptroller.

c. Local School Activity Procurement Card – The principal/program manager must complete the Procurement Card Request or Change Form (Attachment C) and forward to the accounting operations section, Office of the Comptroller.

d. Declining Balance Card – The principal/program manager must complete the Procurement Card Request or Change Form (Attachment C) and submit the request to the financial management and contracting section, Office of Design and Construction, Department of Facilities and Transportation Services, for approval. The Office of Design and Construction will determine the appropriateness of the request and, if approved, assign the project funding code and dollar limit before forwarding the request to the accounting operations section, Office of the Comptroller.

2. The Office of the Comptroller is responsible for reviewing procurement card requests for completeness and accuracy and, upon approval, forwards the request to the financial institution. In addition, a proper accounting code must be supplied by the school/department to the accounting operations section, Office of the Comptroller.

Procurement cards may not be assigned to accounting codes related to salaries, school initiatives, reserves, or benefits.

D. Procurement Card Spending Limits

1. Purchases utilizing procurement cards must not exceed $10,000 for a single transaction. Exceptions for purchases over $10,000 must be preapproved by the office of Procurement Services.Additional approval may be required by the Comptroller, in the Office of the Chief Financial Officer. For FOCUS Marketplace Cards and Declining Balance cards, refer to Section VI.D.3. and Section VI.D.4.

below.

2. Procurement card purchases for the same or related goods or services must not be split into separate orders to avoid the additional approvals required for purchases that exceed the $10,000 single transaction limit.

Declining Balance cards have a predetermined dollar limit based on project funding.

E. Procedures for Procurement Card Use

Principals/program managers are responsible for ensuring compliance with procedures for procurement card use.

1. Control and Custody of Procurement Cards

a. The principal/program manager must assign individuals to perform the duties of card custodian and account statement reconciliation. Where possible, the card custodian and the reconciler functions should be performed by separate individuals. Individuals performing the role of the card custodian or reconciler must not be assigned as designees to preauthorize procurement card purchases.

b. The card custodian must secure procurement cards in a locked location when not in use. Access to the location must be limited to those with authorization to access the cards.

c. The card custodian must ensure only authorized personnel are issued a procurement card and that the Procurement Card Log (Attachment D) is accurately updated.

d. The principal/program manager must maintain an inventory of all procurement cards issued to his or her program and store the documentation in a secure location separate from the cards. The documentation must include the last 8 digits of the procurement card number, the name in which the card is issued, the credit limit, the procurement card location, and the procurement card custodian.

e. The principal/program manager must immediately report lost or stolen cards to the accounting operations section, Office of the Comptroller who will then notify the financial institution. All lost or stolen cards require immediate notification as well as submission of the Procurement Card Cancellation Form (Attachment E) to the Office of the Comptroller.

f. The principal/program manager must immediately report unauthorized use of the procurement card to the procurement card program administrator in the accounting operations section, Office of the Comptroller. Contact information for the procurement card program administrator can be found on the Procurement Card EmployeeHub page, PaymentNet | FCPS Employee Hub. This link is available only through computers within the internal FCPS network (EmployeeHub).

Individual named procurement cards must be surrendered immediately upon retirement, reassignment, or termination or at the request of an authorized representative (region assistant superintendent or department assistant superintendent) of FCPS

g. Procurement cards must not be held by employees for extended periods without approval from the principal/program manager. Procurement cards must not be transferred to another FCPS facility or staff member.

h. The full 16 digit procurement card number and/or the three digit security code must not be disclosed on any written communication such as email, letters, and memorandums.

i. Procurement cards may be used for internet purchases only from secure websites. A secure website address is preceded by “https.” It is also recommended that the internet site provide encryption measures and a fraud protection guarantee.

https://hub.fcps.edu/financial-services/tool/paymentnet http://fcpsnet.fcps.edu/fs/pcard/index.shtml

j. The registering and storing of the procurement card number on online accounts or vendors is prohibited unless authorized by the Office of the Comptroller.

k. The principal/program manager may request cancellation of a card by filling out the Procurement Card Cancellation Form (Attachment E) and submitting it to the accounting operations section, Office of the Comptroller. Reasons for cancellation include: the card is no longer needed, the fund code is closed, or the card was lost or stolen.

2. Preapproval of Purchases

a. The principal/program manager must preauthorize procurement card purchases in writting.

b. The principal/program manager must review preapproved requests for propriety and compliance with current purchasing policies and regulations. See the current version of Regulation 5012.

c. The principal/program manager must ensure funds are available to pay for procurement card purchases.

d. The principal/program manager must review spending limits and request adjustments when card use changes significantly. Cards not used for extended periods should be canceled.

3. Accounting for Procurement Card Transactions

a. If needed, transactions should be reclassified prior to posting by accessing the

PaymentNet portal and changing the commitment item and/or cost center assigned to each transaction by use of PaymentNet’s edit function.

b. FOCUS Marketplace Procurement Cards and General Use Procurement Cards

Procurement card transactions are downloaded from the procurement card system, PaymentNet, and expenditures are posted to FOCUS on a weekly basis.

c. Local School Activity Fund Procurement Cards

Monthy, the Local School activity fund procurement card activity must be recorded in the local school activity fund financial system..

4. Reconciliation

a. Ensure that original receipts are provided for procurement card purchases and matched to the preapproval request. In the unlikely event that a receipt is lost, the card user must provide a written statement explaining the circumstances and obtain the principal/program manager’s signature of approval before providing to the card custodian.

b. Match original receipts to statements and ensure that all transactions on the statement are properly classified and posted in the financial system. The reconciler must initial and date the procurement card statement when the reconciliation is complete and to verify receipts for all transactions are attached.

If a transaction is in dispute, follow procedures outlined in Section VI.E.5.

c. Monthly procurement card statements and transaction details are available online through PaymentNet. Schools and offices are required to review transactions on an ongoing basis. It is the responsibility of the individual school, center, or department to verify the accuracy of these transactions weekly and monthly by accessing the statement online. The school, center, or department should use PaymentNet to reclassify any charges as necessary as specified in Section VI.E.3.a.

d. Monthly, the principal/program manager must ensure that reconciliations for all procurement cards issued to the program are done on a timely basis.

e. Monthly, the principal/program manager must sign and date the p-card statement after reconciliation and review has been completed.

f. The principal/program manager is responsible for recovering sales tax paid on exempt purchases. FCPS is exempt from sales tax for goods purchased in Virginia or delivered to Virginia. Charges for lodging and purchases of goods in other states or the District of Columbia are subject to sales tax. See the current version of Regulation 5320, Sales and Use Tax.

g. Reconciliation of FOCUS Marketplace procurement card transactions must be performed as part of the Financial Management Report (FMR) reconciliation process. See the current version of Regulation 5111, Financial Management Reports (FMR) Reconciliation. For FMR availability dates go to Financial Management Report (FMR) Availability Schedule | FCPS Employee Hub. This link is available only through computers within the internal FCPS network (EmployeeHub).

5. Disputes

The principal/program manager must inform the merchant from whom goods and services were procured of any inaccurate or unauthorized charges within 30 days of the transaction. If the principal/program manager is unable to resolve a dispute, the principal/program manager must document the dispute and send a copy of the statement and a Cardholder Dispute Form (Attachment F) to the procurement card financial institution. If the disputed transactions are not resolved and result in loss of funds, contact the procurement card program administrator in the accounting operations section, Office of the Comptroller. The procurement card program https://hub.fcps.edu/financial-support-team/financial-management-report-fmr-availability-schedule https://hub.fcps.edu/financial-support-team/financial-management-report-fmr-availability-schedule http://fcpsnet.fcps.edu/fs/comptroller/FMRSchedule.shtml administrator will contact the financial institution to help resolve the dispute. If the funds cannot be recovered from the merchant, the Office of the Comptroller may submit a liability claim to the financial institution for reimbursement.

6. Records Retention

a. The principal/program manager must retain original receipts, invoices, and other supporting documentation along with the procurement card statement and the reconciliation. These items must be maintained in a file at the school, center, or department for three fiscal years plus the current fiscal year (For the current records retention schedule, see the current version of Regulation 6701, Records Management Program).

b. The principal/program manager must retain a copy of the Principal/Program

Manager’s Statement of Responsibility (Attachment A) and the original Employee Acknowledgement Disclosure (Attachment B).

F. Prohibited Use of Procurement Card

1. Procurement cards must not be used to: obtain cash advances, to purchase goods from military facilities, to pay for entertainment, gift cards, debit cards, charitable donations, alcoholic beverages, or to purchase any other goods or services prohibited under FCPS purchasing policies and regulations.

2. Procurement cards must not be used for non-FCPS business such as personal purchases and those typically covered under local travel.

3. Procurement cards must not be used for any purchases not previously authorized by the principal/program manager or his or her designee.

4. Procurement cards must not be used by any FCPS employee who has not completed a Procurement Card Employee Acknowledgement Disclosure (Attachment B). The form is not complete until the principal/program manager approves it.

G. Payment of Procurement Card Balances

1. The Office of the Comptroller is responsible for payment to the financial institution for Appropriated funded procurement cards (e.g. general use and FOCUS Marketplace) accounts.

2. Schools and Offices (if any) are responsible for payment to the financial institution for local school activity fund procurement card accounts. All statements must be paid in full by the assigned deadline to avoid penalties and late fees from the financial institution. Late fees must be noted on the statement with a written explanation why the late fee was incurred.

H. Procurement Card Support

1. Contact information, frequently asked questions, and procurement card guidelines are located on the FCPS EmployeeHub at PaymentNet | FCPS Employee Hub. This link is available only through computers within the internal FCPS network (EmployeeHub). The webpage content is maintained and updated by the Office of the Comptroller.

2. The accounting operations section, Office of the Comptroller, provides support for the following:

a. Requests for new cards.

b. Updates to and cancellation of existing cards.

c. Acts as the point of contact for FCPS with the financial institution.

d. Changes for single transaction or monthly spending limits.

e. Requests for damaged card replacements.

f. System administration, including training, for PaymentNet.

g. Help with card usage problems.

h. Help with recovery of funds from fraudulent charges.

VII. AUDIT AND COMPLIANCE

Adherence to this regulation is monitored by the Department of Financial Services and/or internal and external auditors. Monitoring activities may include, but are not limited to, scheduled or random site visits, transaction review audits, and other analysis as deemed appropriate.

See also the current versions of: Regulation 5012, Purchasing Goods and Non-Professional

Services Using Appropriated and Nonappropriated Funds

Regulation 5111, Financial Management Reports (FMR)

Reconciliation

Regulation 5112, Approval Authority for Financial

Documents

Regulation 5320, Sales and Use Tax

Regulation 6701, Records Management Program

FAIRFAX COUNTY PUBLIC SCHOOLS

https://hub.fcps.edu/financial-services/tool/paymentnet http://fcpsnet.fcps.edu/fs/pcard/index.shtml

Attachment A

PROCUREMENT CARD

PRINCIPAL/PROGRAM MANAGER’S STATEMENT OF RESPONSIBILITY

By signing below:

• I have read, understand, and will abide by the requirements stated in the current version of Regulation 5350, Procurement Card Management, and all referenced policies and regulations.

• I accept responsibility for ensuring compliance with all aspects of the procurement card program within my school, center, or department.

• I will ensure that adequate internal control procedures are being followed at my school, center, or department related to card use, including but not limited to, proper authorization, monitoring, reconciliation, and safeguarding.

School, Center, or Department

Principal/Program Manager’s Name

Principal/Program Manager’s Signature Date

Please forward this form to the Office of the Comptroller, Procurement Card

Administrator.

Attachment B

All individuals using procurement cards must complete and sign this form.

Please file and retain at the individual’s school, center, or department location.

EMPLOYEE ACKNOWLEDGEMENT DISCLOSURE

By signing below, I number Agree to the following:

Print Employee’s Name and ID

• I have read, understand, and will abide by the requirements stated in Regulation 5350, Procurement Card Management, and all referenced policies and regulations.

• I agree to use the FCPS procurement card(s) only for reasonable and necessary business expenses. I understand that misuse of this card may result in disciplinary action, up to and including termination of employment.

• I agree to surrender the card immediately upon retirement, reassignment, or termination or at the request of an authorized representative of FCPS. I understand that use of the card after privileges are withdrawn is prohibited.

• If the card is lost or stolen, I will immediately notify JPMorgan Chase at 1-800-316-6056 and the Office of the Comptroller.

Employee’s Signature Date

School, Center, or Department

Principal/Program Manager’s Name Printed

Attachment C

PROCUREMENT CARD REQUEST OR CHANGE FORM

□ New Card Request □ Existing Card Change Request

Type of Funding: □ Appropriated Funding □ Local School Activity Funding

School, Center, or Department _

Card Purpose

Original Single Transaction Limit Original Monthly Credit Limit

Requested Single Transaction Limit Requested Monthly Credit Limit

Cost Center-General Ledger Code

If this request is for a new pcard please provide the mailing address of the pcard custodian below, including the

Suite number:

Financial Contact Phone

Principal/Program Manager’s Name Phone

□ Declining Balance Card Request:

Facilities and Transportation Services Department Approval Date

SECTION B (COMPLETE FOR INDIVIDUAL NAMED CARDS; MUST ALSO COMPLETE SECTION A)

Individual’s Name Employee ID Number

Phone E-Mail

Signature Date

Authorized by

Assistant Superintendent Date

Card Name

Card Number (last 8 digits only)

Reason for Change

Forward completed form to the Office of the Comptroller, Procurement Card Administrator

Attachment D

Fairfax County Public Schools

Procurement Card Log

Card Number – Last

4 Digits

School or Office ame

Card Name

DATE CARD

RELEASED

CARD USER VENDOR DESCRIPTION

OF ITEM(S)

AMOUNT SIGNATURE OF

USER

DATE

CARD

RETURNED

DATE

POSTED

CANCELLATION FORM

CARDHOLDER INFORMATION:

Attachment E

Card Name:

Card Number: (last 8 digits only)

Principal/Program Manager:

Phone: School or Department:

REASON FOR CANCELLATION:

Card lost Card stolen Unauthorized use of card

Funding ends Card no longer needed

Other, please explain:

Details for Lost, Stolen, or Unauthorized Use of the Procurement Card:

Date Merchant involved

Unauthorized charges reported by financial institution: , Explanation:

Forward completed form to the Office of the Comptroller, Procurement Card Administrator

CARDHOLDER DISPUTE FORM

CARDHOLDER INFORMATION:

Attachment F

Card Name:

Card Number: (last 8 digits only)

Principal/Program Manager:

Phone: School or Department:

MERCHANT INFORMATION:

Merchant Name:

Dollar Amount Disputed:

DISPUTE TYPE:

Erroneous Charge

Duplicate Posting

Erroneous Amount (provide supporting documentation indicating correct amount)

Credit Not Posted (enclose a copy of credit voucher or returned merchandise receipt)

Other (please explain below)

DISPUTE EXPLANATION: