7900823217GuidelinesPolisubs.pdf

State of New York Commercial

Card Program

Procurement Card

Guidelines For

NYS Polisubs

January 2025

GROUP 79008 – Procurement Card Guidelines for NYS Polisubs PAGE 2

7900823217_GuidelinesPolisubs

Table of Contents

1. Background

1.1 Items to Be Purchased With the PCard

1.2 Items Prohibited From PCard Use

2. J.P. Morgan Bank (JPMC) Responsibilities

2.1 Establishing Accounts

2.2 Card Issuance and Customer Service

2.3 Maintaining Accounts

2.4 Providing Authorization

2.5 Monthly Summary Statements

2.6 JPMC Web tools

2.7 Training

3. Cardholder Responsibilities

3.1 Purchases Requiring Prior Approval

3.2 Cardholder Review

3.3 Disputed Items

3.4 Lost or Stolen Credit Cards

3.5 Authorized User Liability

4. Authorized User Management Responsibilities

4.1 Authorized Users

4.2 Credit Limit

4.3 Card Controls

4.4 Department Cards

4.5 Processing Payments

5. Program Administrator/Fiscal Officer Responsibilities

6. The Office of Foreign Assets Control (OFAC) Sanctions List

7. Audit Responsibility

8. Contacts for the PCard Program

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1. Background

New York State’s (State or State’s) procurement card (PCard) program is designed to be an efficient and cost-effective way to expedite small dollar purchases. There are, however, certain inherent risks associated with a PCard program. Specifically, purchases are completed before supervision and oversight activities can occur.

These risks can be overcome if authorized users ensure that adequate detection controls are in place to identify instances of inappropriate or questionable purchases. These guidelines are minimum standards to help authorized users’ managers administer the State’s PCard program. Participating authorized users should develop their own internal procedures to assure appropriate control and accountability over its credit card transactions. Authorized User officials should consider this a higher risk activity that requires appropriate internal controls.

Please note that these guidelines are written based on best practices and recommendations. Authorized users may incorporate these guidelines into their own policies and procedures as long as they don’t conflict with their own laws, rules and regulations.

1.1 Items to Be Purchased With the PCard

You may use the card for:

a. Items from Preferred Sources

b. Items on an Office of General Services’ centralized/statewide contract

c. Maintenance/repairs of equipment

d. Supplies and materials

e. Equipment

f. Printing

g. Conferences/seminars

h. Freight1

i. Personal Services2

1.2 Items Prohibited From PCard Use

Items you cannot use the PCard for include:

a. Personal use

b. Travel/entertainment (i.e. airline, car rental, lodging)3

c. Rent

d. Cash advances

e. Cash refunds

f. Formal contracts4

1 If a purchase exceeds the single transaction dollar limit by up to 10% because freight charges have been added, you may still use the PCard. Freight is the only exception to the transaction limit.

2 You may now use a PCard for personal service payments that would qualify for 1099-MISC reporting to the Internal Revenue Service. You can obtain more detailed information on 1099-MISC reporting at the Internal Revenue Service.

3 It is important to note the JPMC PCard is different from the JPMC Travel Card. Travel related expenses such as meals, lodging, airfare, and car rentals should be charged on the JPMC Travel Card and/or NET Card, not the JPMC PCard. Catered meals for a group such as at a conference are allowable on the PCard. Conference room rental fees are also allowed on the PCard.

4 The PCard may not be used for payments on formal contracts or purchase orders other than statewide Office of General Services (OGS) contracts (P-contracts). Additionally, documents related to contracts must be retained for significantly longer than those for the PCard. There is no way to ensure proper retention if contract payments are made with the card.

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2. J.P. Morgan Bank (JPMC) Responsibilities

2.1 Establishing Accounts

JPMC will set up the accounts for the State’s PCard system. This will include establishing a unique account number for each card issued. Each authorized user can define different attributes associated with each card number to collect user specific purchasing information such as chartfield coding. JPMC will provide any materials and instruction necessary to help authorized users define these attributes.

Additionally, JPMC will be responsible for obtaining this information when applicable directly from each participating authorized users before cards can be delivered.

2.2 Card Issuance and Customer Service

JPMC will mail routine new or replacement cards within 48 hours of receipt of card request, with expected delivery within four to six business days. In the event an emergency account is requested, account numbers and expiration dates will be provided within 24 hours. Expedited new or replacement card requests will be delivered within 2 business days.

JPMC Customer Service will be available for Program Administrators and Cardholders on a 24/7 basis including phone and on-line access. See Section 5 on Page 8 of this document for a description of the Program Administrator’s/Fiscal Officer’s responsibilities.

JPMC uses the last four digits of an employee’s social security number and the first 4 digits of your card delivery zip code for identification purposes when a cardholder contacts them for account information and card activation.

2.3 Maintaining Accounts

JPMC is responsible for maintaining a master account file for each participating authorized user and an account for each cardholder.

2.4 Providing Authorization

JPMC will be available to authorize purchases twenty-four (24) hours a day, 365 days a year.

2.5 Monthly Summary Statements

After the close of each billing cycle (on or about the 5th of the month), JPMC will provide each authorized user their bill, which will include all individual charges by the authorized user’s cardholders, incurred on the account.

JPMC will also provide each cardholder with a monthly statement of charges incurred during the billing cycle.

The PCard statements will be electronically available on PaymentNet within 48 hours after the cycle closes.

2.6 JPMC Web tools

JPMC provides customized reporting tools in PaymentNet to help authorized users and cardholders electronically monitor transactions. PaymentNet provides:

1) Access to program management modules and online statements

2) Manage cardholder maintenance online

a) Add or delete cardholders

b) Review transactions and cardholder statements

c) View/edit hierarchy

d) View dispute log and create dispute forms

3) Create custom reports showing:

a) Cardholder information

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b) Transaction Information

c) Hierarchy

d) Trend analysis

e) Informational Dashboards

4) Secure information and data exchange

5) Self-directed training modules for online systems

2.7 Training

In addition to the self-directed training modules in PaymentNet, JPMC will provide training as needed.

3. Cardholder Responsibilities

When making purchases with the PCard, the cardholder should:

• Follow authorized user’s purchasing rules and regulations.

• Understand the State’s procurement rules and regulations, including: Procurement Laws, NYS Procurement

Guidelines and Procedures, and Travel Guidelines.

• Use Preferred Sources when an item is available from them. See the Preferred Source Guidelines for procedures and requirements.

• Purchase the item from an Office of General Services’ contract vendor when the item is available on statewide contract.

• Purchase items from M/WBE vendors, SDVOB vendors, or small businesses when possible.

• Understand the authorized user’s accounting procedures concerning the availability of funds to cover the expense.

• Be able to substantiate the reasonableness of price for purchased items.

• Purchase only the number of items, at the quantity and quality needed for appropriate their use.

• Be knowledgeable about individual card limits and do not attempt to make purchases in excess of the single transaction limit.

3.1 Purchases Requiring Prior Approval

Authorized User policy and subsequent approval procedures may vary, and it is the cardholders’ responsibility to adhere to their requirements. PCard holders should also review their Authorized User’s policies and procedures pertaining to PCard use. Ultimately, it is the PCard holder who is responsible for the proper use and safekeeping of a PCard.

In addition, cardholders should:

a. Not split an order just to use the PCard when the purchase price will exceed the per transaction limit.

b. Not give their card or account number to anyone else other than the vendor from whom they are making the purchase.

c. Use the card only for legitimate business purposes.

d. Maintain the card in a secure location at all times.

e. Not accept cash in lieu of a credit.

f. Immediately notify JPMC and the program administrator of a lost or stolen card.

g. Destroy the card and notify the program administrator upon terminating employment.

h. Ensure credits for reported disputed items or billing errors appear on a subsequent statement.

i. Attempt to resolve disputes or billing errors directly with the vendor and notify JPMC if the dispute or billing error is not satisfactorily resolved.

j. Obtain all required documentation for reconciliation and forward to the finance office in a timely manner.

The documentation should support authorization of the purchase, the purchase price of the item and the receipt of the item. Examples of documentation include invoices, JPMC statements, printed Internet confirmations, credit card receipts, receiving acknowledgments, receipts in the reconciliation transaction information, and a procurement log.

http://www.ogs.state.ny.us/purchase/AboutPSG.asp https://ogs.ny.gov/procurement/nys-procurement-bulletin-preferred-source-guidelines

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3.2 Cardholder Review

Cardholders can view their statements on PaymentNet at the end of each billing cycle or unbilled transactions at any time throughout the month.

The cardholder should review the monthly JPMC statement for accuracy and reconcile each charge transaction to the vendor receipts and/or invoices. The cardholder should also ensure all items are received in satisfactory condition and dispute any items not received.

The cardholder review should include, at a minimum, the following questions:

a. Did I purchase all items appearing on the statement?

b. Are there any items I purchased that do not appear on the Statement? Keep documentation associated with these purchases until the following Statement. If the charge still does not appear, contact the vendor.

c. Does the amount quoted to me by the vendor match the amount I was charged for each item? Was I charged any tax or freight I was not aware of?

d. Did I receive all items ordered in satisfactory condition? If not, the cardholder should ensure the items are received in satisfactory condition within the 60-day dispute window or dispute the charge.

e. Do credits appear on the statement in the proper amount for any returns?

f. Have I retained a copy of my transaction documents for my records?

3.3 Disputed Items

Authorized Users are responsible for paying the JPMC bill in full, including any disputable charges. The cardholder should review his/her statement each month for accuracy of charges. If the cardholder identifies a disputable charge on his/her statement, the cardholder should attempt to resolve the dispute with the vendor.

If the cardholder cannot resolve a dispute with a vendor or there is a charge that is unauthorized or unrecognized on the cardholder’s JPMC statement, the cardholder may dispute the charge by calling the number on the back of the card, (800) 270-7760 or the cardholder or program administrator may dispute the charge through PaymentNet. Additionally, the program administrator may also call (800) 207-5359 for disputes.

Cardholders and Program Administrators can check on the status of the dispute in PaymentNet or by calling the number on the back of their card: (800) 270-7760.

Contract terms require disputed items be submitted to JPMC as soon as practicable and in any event within (60) days after the last day of the Cycle during which such Transaction is charged to Client, so it is important for the cardholder or program administrator to review charges each month upon receipt of the statement. If the cardholder or program administrator fails to dispute the charge within the 60 days, the Authorized User may lose the ability to dispute the charge and as a result be liable for the fraudulent charge.

3.4 Lost or Stolen Credit Cards

Any lost and/or stolen PCard must be reported immediately to JPMC by calling the number on the back of the card at (800) 270-7760. The cardholder should be prepared to give their name exactly as it appears on the face of the card, the account number, their verification identifier (generally the last 4 of social security number), and a brief explanation surrounding the loss. Immediately following this notification, the cardholder must notify the Authorized User’s PCard program administrator.

3.5 Authorized User Liability

The PCard holder will not be billed directly for the charges but will be able to access a monthly statement of transaction information. The authorized user will be liable for all appropriate charges made using the PCard.

Authorized User’s who complete an application for the JPMC PCard may be subject to a credit check. All authorized and appropriate charges incurred using the PCard are paid by the Authorized User.

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Authorized User will be liable for all charges to the PCard account except for fraudulent use of the card by a vendor and/or an employee, those in excess of the single transaction or monthly limits and any other limits imposed and accepted by JPMC. Authorized User policies will vary, but employees should be responsible for reimbursing the Authorized User for any charges incurred as a result of their misuse of the card. The employee may also be subject to other disciplinary action. The Authorized User will not be liable for any charges incurred by someone other than the cardholder. Therefore, it is important to report immediately any lost and/or stolen procurement cards or unauthorized use of the card to JPMC.

4. Authorized User Management Responsibilities

4.1 Authorized Users

The purpose of the PCard is to enable Authorized User employees to do their work more efficiently. It is also designed to reduce the cost to purchase needed items of a small dollar value.

Each entity will assign a Program Administrator to help identify the employees who are to receive a PCard.

These cards do not need to be limited to employees working in the purchasing unit. Rather, the cards can be assigned to program staff who need to make purchases to carry out Authorized User operations. It may be appropriate for the card to be assigned to the support staff responsible for ordering goods and/or services.

4.2 Credit Limit

Program Administrators can set single transaction limits based on purchasing needs not to exceed the Discretionary Purchase threshold.

When establishing spending and transaction limits, authorized users should consider local purchasing rules or regulations as well as the duties of the employee assigned the PCard. Purchasing professional staff may require higher limits than employees who will infrequently use the card or who are not well versed in purchasing laws, rules and regulations.

4.3 Card Controls

The PCard has specific merchant category codes (MCCs) that are excluded from purchase. Please see the MCC List listed in the Contract Specifics for specific category inclusions and exclusions.

The card can, at the request of the authorized user program administrator’s request, be further restricted to prevent certain purchases, including but not limited to:

a. Crystal and glassware

b. Cameras and photography

c. Clothing and apparel

d. Pet shops

The PCard can have a temporary or permanent MCC change. Permanent or temporary changes can be made via PaymentNet or by contacting the JPMC card services at (800) 207-5359.

In addition, authorized users can control activity on the card by setting the following limits:

a. Single Transaction Dollar Limit (Required) - Maximum amount of a single purchase type transaction permitted on the account (whole dollars)

b. Cycle Credit Limit (Required) - Maximum amount of credit that is permissible in a month

c. Number of Transactions per Cycle - Maximum number of transactions permitted in a month

d. Number of Transactions per Day - Maximum number of transactions that can be authorized in a given day https://online.ogs.ny.gov/purchase/snt/awardnotes/7900823217ContractSpecifics.pdf

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4.4 Department Cards

The Department card is established for a department or program and is under a “department name.” Any authorized staff of the Authorized User can use the card. These are higher risk cards because it is more difficult to establish accountability for purchases. Because of this increased risk, department cards require more detection control by Authorized User officials. The verification ID (on the auto-enroll worksheet or in PaymentNet) will be the first four digits of the authorized user code and is the first of two verification codes needed. The secondary identifier is TBD right now. It is best practice to have all cards issued in an employee’s name. In the case that a Department card has been approved the card responsibility must be assigned to an individual employee.

4.5 Processing Payments

Program administrators can register for JPMC Online statements via PaymentNet:

The statement can also be viewed on PaymentNet , however the authorized user should make payment to JPMC based on the balance due on online Statements. After registering for online statements, the program administrator can then choose other officials, including accounts payable staff, to have access to the statement as well.

The statement is available within 48 hours after the cycle cut (cycle normally cuts on the 5th, unless the 5th is on the weekend). Email reminder alerts that a statement is available can be setup.

Disputed items resolved in the authorized user’s favor will be credited on a later statement.

5. Program Administrator/Fiscal Officer Responsibilities

1. Serves as a liaison to both JPMC and the Office of General Services.

2. Manages and evaluates the authorized user’s PCard program.

3. Administers and maintains the PCard accounts using PaymentNet.

4. Coordinates issuing cards consistent with budget and accounting requirements.

5. Receives and distributes cards.

6. Helps decide monthly and transaction limits for each card.

7. Assigns a single transactions dollar limit and cycle credit limit for each card.

8. Helps identify who will receive, review and approve monthly reports.

9. Helps establish an internal process to review, approve and file monthly statements.

10. Coordinates employee training on the PCard program.

11. Trains Authorized User personnel about their purchasing rules and or regulations

12. Develops a procedure for the cardholder to ensure funds are available to cover the purchase.

13. Monitors card activity and closes inactive card accounts.

14. Directs JPMC to cancel all PCard privileges for any cardholder that either leaves service for any reason or whose duties no longer include a purchasing function.

15. Establishes internal procedures for accounting, auditing, controlling and monitoring card use and processing payments to JPMC.

16. Completes a Program Administrator setup form to add, delete or change any Program Administrator information. You can download this form from PaymentNet > Help> Resources. It is titled Commercial Card Program Authorization Form – Interactive (CCPAF-I) PDF and can be located under the “Program Administrators” section on the page.

Email the form to: CCS-Program-Coordinators@jpmchase.com

17. Ensures the JPMC bill is processed as soon as possible to maximize rebate eligibility or no later than 30 days of receipt.

18. Work with JPMC on OFAC issues if they arise.

mailto:CCS-Program-Coordinators@jpmchase.com

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6. The Office of Foreign Assets Control (OFAC) Sanctions List

The OFAC Sanctions List is mandated and maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control. Per JPMC’s OFAC Sanctions Screening document:

“OFAC administers and enforces economic sanctions programs primarily against countries and groups of individuals, such as terrorists and narcotics traffickers. The sanctions can either be comprehensive or selective.

OFAC rules generally require that U.S. persons (all persons and entities within the U.S., all U.S.

incorporated entities and their foreign branches) are prohibited from transacting with persons on a government sanctions list. As a U.S. entity and a regulated financial institution, we are required to ensure individuals who are listed on a government sanctions list do not use our products.”

The OGS centralized contract with JPMC mandates that Authorized Users would only have to provide prospective cardholders’ names in most instances. JPMC will contact the Program Administrator if an applicant’s name comes back as a match on the OFAC list. They will only ask for a one or two additional pieces of cardholder information to confirm that the applicant is not the one on the OFAC list. JPMC will start with the date of birth (DOB) and if that does not match the name on the OFAC list then the application process will continue. However, if the DOB matches the one on the OFAC list, then an additional step is needed and JPMC will then ask for the applicant’s home address. If the applicant’s address does not match the one on the OFAC list, then JPMC will be able to proceed with the application process. If any of this required information is not provided, then JPMC will not be able to process the application.

If JPMC reaches out to verify the OFAC information and the Authorized User refused to provide the information, the card will be canceled or not issued to the applicant.

Please see the JPMC OFAC Sanctions Screening document posted on our Contract Specifics page at: Contract Specifics.

For more information, please visit the OFAC website: https://ofac.treasury.gov/

7. Audit Responsibility

The authorized user issuing the card should establish a program to audit the PCard transactions. At a minimum this audit should be done monthly. This audit function may rest in the Fiscal Office, the internal auditor’s office or other appropriate office with staff possessing the skills to effectively audit these transactions.

8. Contacts for the PCard Program

Program Coordinators

(800) 207-5359 CCS-Program-Coordinators@jpmchase.com

Client Application Support

(855) 886-7638 ccs.cas.support@jpmchase.com

H2H Connectivity

(844) 718-0643 CAS.Helpdesk@jpmchase.com

Cardholder Support

(800) 270-7760 https://online.ogs.ny.gov/purchase/snt/awardnotes/7900823217ContractSpecifics.pdf https://ofac.treasury.gov/ mailto:CCS-Program-Coordinators@jpmchase.com mailto:ccs.cas.support@jpmchase.com mailto:CAS.Helpdesk@jpmchase.com

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Office of General Services Contract Information for Authorized Users:

OGS JPMC Contract Information JPMC - Contact Matrix - Polisubs Contact email address:

OGS.sm.PS_SW_PCard@ogs.ny.gov https://online.ogs.ny.gov/purchase/snt/awardnotes/7900823217can.htm https://online.ogs.ny.gov/purchase/snt/awardnotes/7900823217ContractSpecifics.pdf