PURCHASING CARD MANUAL 2024 Rev.1.docx

WISCONSIN STATE P-CARD MANUAL May 23, 2024

State of Wisconsin Purchasing Card Manual

Produced by the State Bureau of Procurement, In the Division of Enterprise Operations, Department of Administration, for enterprise use in State of Wisconsin Government.

Revision Date 05/23/2024

1.0 P-CARD OVERVIEW

The Wisconsin Purchasing Card (P-Card) program is simply designed to streamline the acquisition and payment schedules of goods and services required for State business while at the same time eliminating the many administrative inefficiencies and costs of other traditional purchasing methods.

PROCURE TO PAY PROCESS

P-Card Purchase + Quick Payment = Simple Transaction

This P-Card policy and procedure manual is designed to present the framework for implementing and managing a successful Purchasing Card program throughout all the Wisconsin State Agencies. This document was created as a resource which offers a fundamental and practical understanding of the policies and procedures required to sustain effective and efficient operations regarding the State’s P-Card program. These instructions may also be customized for each Agency’s internal policies and procedures requirements.

1.1 Policies governing the State P-Card program

State Procurement Manual, Section PRO-410 State Accounting Manual, Section 5, Subsection 4 Wisconsin State P-Card Manual

Record Retention Schedules Governing the P-Card Program FIS00010 (pCard Applications/authorizations), FIS00020 (for transaction reconciliation and logs), PUR00020 (for audits and internal monitoring).

Non-adherence to any of the P-Card policies and procedures may be considered a violation of work rules and/or an unauthorized purchasing. It may result in suspension or revocation of Cardholder privileges, disciplinary action, and/or repayment of expenses by the cardholder to the State.

1.2 Definitions

Agency- For the purposes of this document, “Agency” shall refer to all State of Wisconsin Executive Agencies, as well as University of Wisconsin Campuses, and all other State of Wisconsin Boards, Commissions, Offices, etc. who participate in the P-Card Program. State of Wisconsin Legislative and Judicial Agencies may participate in the contract, however DOA does not provide oversight to their programs.

Controlling List- A collection of MCC codes defining inclusively or exclusively which MCC codes are permitted on a Managing Account or Cardholder Account.

Cardholder-A state employee who has applied for and received a card account issued by the state.

Cardholder Account- The credit account assigned to an individual state employee. A Cardholder may have more than one Cardholder Account.

Cycle Limit- Also known as a Credit Limit, this is a spending limit set by the Agency and enforced by U.S. Bank that restricts the total value of purchases a Cardholder can make in one billing cycle.

Managing Account- A managing account controls all the funding between our organization and your organization. All cardholder transactions pass through a managing account to ensure that appropriate funds are available for each transaction.

MCC- Merchant Category Code. A code or codes established by the merchant which describe the nature of commodities or services sold by that merchant. A merchant may have one or multiple codes, but each transaction can have only one.

Merchant- The business or individual who receives payment via P-Card.

SBOP- State Bureau of Procurement in the Department of Administration, Division of Enterprise Operations.

SCO- State Controller’s Office in the Department of Administration, Division of Executive Budget and Finance Single Transaction Limit-A spending limit that restricts the value of a single transaction. The Single transaction limit is $5,000 or less on all cards until DOA approves an alternative limit.

1.3 Current Contract

In 2020, The National Association of State Procurement Officers (NASPO) conducted a solicitation for Commercial Card Services, led by the State of Washington. The Category 1 for Purchasing Cards was awarded to U.S. Bank, and in 2021, NASPO established Master Contract 00719. The Department of Administration (DOA), State Bureau of Procurement (SBOP) entered into a Participating Addendum (Cooperative Agreement) with U.S. Bank for Purchasing Card services to support the State of Wisconsin’s Purchasing Card (P-Card) Program. The Wisconsin Contract number is 505ENT-M21-PURCHASCARD-01. The contract term is 1/1/2021 through 12/31/2027. No renewals are established, however the Wisconsin Participating Addendum specifies that the Wisconsin Participating Addendum is automatically extended or renewed in conjunction with any extensions or renewals to the Master Contract. Master Contract Documents can be viewed on the NASPO ValuePoint site at https://www.naspovaluepoint.org/portfolio/commercial-card-services-2021-2027/. The Wisconsin Participating Addendum documents can be viewed on Vendornet at https://vendornet.wi.gov/Contract.aspx?Id=f55e3bc2-ab4e-eb11-8128-0050568c7f0f.

2.0 P-CARD TYPES

2.1 STANDARD PURCHASING CARDS

The standard P-Card is the “U.S. Bank Purchase Card” and is also the most common type of Purchasing Card. The P-Card has a functional purpose that allows organizations to take advantage of the existing credit card infrastructure to make business-to-business (B2B) electronic payments for a variety of business expenses (goods and services).

2.2 TRAVEL CARDS

Using Purchasing Cards for conducting official State business travel provides greater oversight to monitor and control the expenses that are incurred during travel. Standard P-Cards with State Agency liability can be used for travel unless the traveler elects to use the corporate Travel Card with “personal liability” as provided under the Master Agreement between the State of Wisconsin and U.S. Bank.

Individual standard P-Cards can be setup with a travel-related Controlling List. Use of the standard P-Card for travel does not exempt a traveler from the State of Wisconsin travel guidelines which can found in the Uniform Travel Schedule Amounts (UTSA) or from Agency-specific pre-approval travel policies and procedures requirements. Corporate Cards can also be setup with the travel-related Controlling List or otherwise customized as defined by the State Agencies.

2.3 VIRTUAL PAY OR GHOST ACCOUNT P-CARDS

A Virtual Pay or Ghost P-Card shall follow the same contractual requirements as the Standard P-Card, with the exception that no physical card is issued. This is a virtual Card account that an end-user organization implements and issues to a specific supplier. The supplier then invoices for all of the organization's purchases to this one account with the payments being handled much like a P-Card. The term “Ghost P-Cards” refers to this type of Virtual Pay account that is established for the payment of monthly or other periodic charges to a supplier for a State agency for which a physical Card has not been issued. In cooperation with the State P-Card Maintainer and with the Bank, an Agency P-Card Administrator may establish a P-Card to make payments to a single specified supplier.

Ghost P-Cards provide a secure payment method restricted for use with the identified supplier and are secured through numerous account restrictions including spending limits, Merchant Category Code (MCC), and the absence of a physical Card. Ghost P-Cards may be considered when there is a one‐to‐one business relationship between the supplier and the State Agency.

2.4 Foreign Medical Emergency Cards

If you are an employee who travels to foreign countries, a Foreign Emergency Major Medical Expense Purchasing Card may be issued to you to pay for emergency major medical expenses if they arise. Some medical facilities in foreign countries will not perform the necessary procedure unless the bill is paid in advance. Travel insurance is not a reimbursable expense and should not be purchased with a P-Card. The following guidelines apply:

1. A separate Purchasing Card will be issued to the international traveler for use only for foreign emergency major medical expenses. DOA recommends that the second line of embossing identify the Card as Foreign Medical.

2. An MCC controlling list, Group 11 inclusion controlled, must be used. It should contain the following MCC codes, or equivalents as revised by Visa and U.S. Bank:

3. The Account code for this Card must be 1410000-Foreign Emergency Major Medical. This code is required to allow special management and reporting on these costs.

4. As a convenience to the cardholder, the State will initially pay for foreign emergency major medical expenses. However, when the cardholder returns, they must file a claim with their health insurance company for reimbursement to the agency. The claim may be made through the Workers Compensation process if it qualifies. The cardholder must repay any deductibles or items not covered by insurance to the agency. The Agency P-Card Administrator will follow up with the cardholder to ensure that they file an insurance claim.

5. Refer to the State Accounting Manual for more detailed accounting instructions regarding foreign emergency major medical.

3.0 Eligible and Ineligible Cardholders

3.1 ELIGIBLE CARDHOLDERS:

· Cardholders must be full-time or part-time State employees, including Graduate Student employees and Limited Term Employees (LTE), whose jobs benefit from the use of a Purchasing Card. State Agencies may include additional restrictions if desired.

· Municipalities may use this contract and issue cards to their cardholders. The State will not issue cards to municipal employees.

3.2 INELEGIBLE CARDHOLDERS:

· Purchasing Cards shall not be issued to undergraduate student employees.

· Purchasing Cards shall not be issued to contractors, or employees of foundations that are associated with any Agency.

3.3 ELIGIBLE WITH PRIOR APPROVAL FROM SBOP

· Purchasing Cards and Purchasing Card accounts may be issued in the name of a Department or work unit (i.e. Facilities Maintenance or Emergency management) to be shared by multiple employees with prior approval from the P-card Contract Administrator. Such group cards must be assigned to a single employee ID when entered into PeopleSoft, and that Employee is responsible for reconciliation of the card(s)

4.0 Eligible and Ineligible Purchases

4.1 ELIGIBLE PURCHASES

· Individual purchases up to $5,000. Purchases may exceed $5,000 with prior authorization from the State Bureau of Procurement. See UPDATE SINGLE PURCHASE LIMITS Section 7.1.2.2.

· The P-Card may be used on Statewide contracts when the contract or subsequent amendment indicates that P-Card use is allowed.

4.2 INELEGIBLE PURCHASES

· Any personal use is prohibited.

· Cash withdrawals are prohibited.

· Cardholders are prohibited from splitting a payment between two or more transactions on a single account, on multiple accounts, or by using the P-Card and a purchase order in order to circumvent competitive solicitation requirements.

· Any purchase on a contract where the terms of that contract prohibit P-Card usage.

4.3 ELIGIBLE UNDER CERTAIN CONDITIONS

· Procurement Manual Section PRO 505 requires that a purchase order be issued for all print purchases, with limited exceptions. Print purchases may be paid on P-Card after the requirement to issue a purchase order has been met. P-Card payments may be liquidated from a PO in PeopleSoft. Please see Job Aid “Associate PO to P-Card Transaction” on the STAR Confluence Page for instructions.

· Employee Awards may be permitted when in accordance with guidelines established in WI Accounting Manual Section 06 subsection 06.

· The following travel costs are eligible: airline tickets, lodging, car rentals, hotel and airport parking, and rental car gas. Meals and other related travel expenses are subject to certain thresholds outlined in the UTSA and require additional information (e.g., departure/return times) or supporting documentation to be submitted on the travel & expense report that wouldn’t be captured on a purchasing card receipt; therefore, unless specifically identified above, all other travel related expenses should NOT be charged to a P-Card. Use of the standard P-Card for travel does not exempt a traveler from the State of Wisconsin travel guidelines which can found in the current Compensation Plan Section F-Uniform Travel Schedule Amounts (UTSA) or from your specific organization’s travel policies and procedures requirements. DPM Pocket Travel Guide is also provided as a summarization of the State's travel guidelines.

4.4 SALES AND USE TAX EXEMPTION

State purchases are exempt from Wisconsin sales taxes. The Wisconsin Department of Revenue has issued a tax-exempt number for all State Agencies. This number appears on each Card as the second line of embossing. This number is not encoded in the swipe or chip data, and must be provided to merchant at the time of purchase to ensure sales and use taxes are not charged. If the cardholder fails to provide the tax-exempt number at the time of purchase and taxes are charged, the Cardholder should contact the merchant and request a refund after the fact. If the merchant refuses to refund the sales tax, the amount of the sales tax is considered an unauthorized purchase and must be repaid by the cardholder.

All Wisconsin merchants and many, but not all out-of-state merchants honor this exemption. Cardholders may be required to pay other taxes to Municipalities, tribes, or other states. These taxes imposed by other jurisdictions are not unauthorized purchases and will be paid by the State.

5.0 P-CARD RECORDKEEPING REQUIREMENTS

5.1 PUBLIC RECORDS LAW

All documents related to the Purchasing Card may be fully disclosed as a public record to the extent provided for by the Wisconsin Public Records Law.

5.2 RECORD RETENTION

Original supporting documentation for all P-Card transactions must be retained for the required period as specified in the Record Retention Policy established by the Wisconsin Public Records Board. An additional P-Card Record Retention Policy can be found in the State Accounting Manual under Accounting Manual Section 14, subsection 03: Retention of Supporting Documentation.

5.2.1 TRANSACTION RECORDS

The P-Card Reconciler must provide supporting documentation for each transaction that includes at a minimum original itemized receipts, and may additionally include other supporting documentation such as meeting agendas, training authorizations, etc. as required by Agency policies appropriate to the purchase type.

5.2.2 STATEMENT APPROVAL RECORDS

The P-Card Reconciler must provide a Bank Statement (or other log) that includes all transactions and captures acknowledgement from both the Cardholder and their supervisor that all transactions were reviewed and found to be both accurate and appropriate for business purposes.

6.0 CARDHOLDER ROLES AND RESPONSIBILITIES

6.1 Cardholder Roles

6.1.1 AGENCY P-CARD RECONCILER

The Agency P-Card Reconciler is the individual who reconciles P-Card transactions, enters comments, attaches receipts, updates Chartfield coding (as applicable), and sets the transaction status from Staged to Verified. This user in most cases will be the Cardholder or an Agency employee that will reconcile a Cardholder's transactions on their behalf.

6.1.4 AGENCY P-CARD PO USER

Agency end-user who can define a P-Card as the payment method on a purchase order. This role can only be assigned to a user that is assigned the Agency PO Processor or Agency Buyer role. Users assigned this role must have a P-Card.

6.1.5 AGENCY P-CARD REQ USER

Agency end-user who has a P-Card that will have the ability to define their P-Card as the payment method on a requisition. Users assigned this role must have a P-Card.

6.2 CARDHOLDER RESPONSIBILITIES

This includes the Cardholder, and any employees who may perform reconciliation duties on behalf of a cardholder, even if they do not independently hold a card. Additional Reconciler responsibilities include the following:

· Receive a copy of State Agency policies and procedures for Purchase Cards,

· Sign a Cardholder use agreement form and receive training before being issued and using a Purchasing Card.

· Use the Purchasing Card in accordance with all State Agency statutes, rules, policies, and procedures.

· Ensure that the individual card is not given to or shared with other employees.

· Collect and submit valid supporting documentation for each purchase made. A credit Card charge slip with only the total is not sufficient documentation. A receipt needs to include an original record of what was purchased. Any exceptions must be documented.

· Maintain a Purchase Card transaction log for all transactions made according to State Agency procedures.

· Review charges in the system daily and change any account coding as needed.

· Receive Card statement information from the Bank.

· Verify Cardholder statement agrees with record of purchase and receipts.

· Sign the record to attest that all purchases are for State business purposes and comply with appropriate rules and regulations.

· Reconcile the online data and the Bank statement to the Purchase Card transaction log and supporting documentation during the appropriate credit cycle and submit this information to the Agency P-Card Approver for approval.

· Safeguard Card security at all times.

· Report lost or stolen Cards immediately following State Agency procedures.

· Surrender Cards upon termination, reassignment, or request.

· Resolve all disputes with merchants.

6.2.1 STATEMENT OF ACCOUNT VERIFICATION OR P-CARD LOG

A Purchasing Card account statement may be physically mailed bi-weekly from the Bank, or may be downloaded from Access Online for an electronic copy.

· It is the responsibility of the Cardholder to verify the correctness of this statement against the purchase record and collected receipts. If there are inaccuracies and/or erroneous charges, you must report them to your Program Administrator immediately.

· Sign the purchase record and submit it with the receipts and a copy of the statement to the designated P-Card Approver.

· Complete the transactional verification requirements in the PeopleSoft reconciliation process.

6.2.2 CREDIT CARD SECURITY

6.2.2.1 Card Security

A Purchasing Card should be treated with the same level of care as personal credit Cards.

· Do not lend the Card to anyone. The only person authorized to use the Purchasing Card is the person who completed the Purchasing Card Application and Use Agreement (DOA 3584), or equivalent Agency-specific form.

· Guard the Purchasing Card account number carefully. Do not post it or write it in any location that is accessible to others. This does not prohibit saving a P-Card to a payment portal for repeated or ongoing purchases.

· Make sure to use a secure Web site when entering the P-Card information via the Internet.

6.2.2.2 Lost or Stolen cards

If a cardholder discovers their Card is lost or stolen, they must immediately notify U.S. Bank Cardholder Customer Service at (800) 344-5696, then contact the Agency P-Card Administrator. If a Card is lost or stolen over the weekend or after regular business hours, the Cardholder is responsible for calling the U.S. Bank Cardholder Customer Service immediately and also notify your Agency P-Card Administrator by the next business day.

U.S. Bank Cardholder Customer Service Available 24 Hours a Day, Including Weekends Phone: (800) 344-5696 E-Mail: accessonlinesupport@usbank.com

6.2.2.3 Suspected Fraud on Card

If you suspect your account has been used fraudulently immediately contact the U.S. Bank Fraud Department at 1-800-523-9078. At the first opportunity, report the same information to your Agency P-Card Administrator.

Unlike personal credit Cards where Cardholders are responsible for paying the first $50.00 if the Card is stolen or misused, the Purchasing Card program holds the agency or campus responsible for paying all charges resulting from stolen or misused Cards until U.S. Bank has been notified. The U.S. Bank/Visa Purchasing Card Program provides liability protection to the State once notification of any loss, theft, or fraudulent use is made. This same level of liability protection does not apply to Cards that are made available to multiple users, therefore each individual Purchasing Card shall only be used by the person whose name appears on the Card.

6.2.3 RETURNS, CREDITS, AND DISPUTED ITEMS

When necessary, items should be returned according to merchant specifications. The Cardholder is responsible for ensuring that proper credit is posted for any returned items. If merchandise is returned in person, the Cardholder is responsible for obtaining a credit receipt from the merchant and retaining that receipt with other receipts to document the purchase and return. Receiving cash or checks to resolve a credit is prohibited. No exchanges are allowed: the item must be returned for credit with the replacement item purchased separately. Keep all documentation of credits, returns, and exchanges on the Purchasing Card record.

In some cases there may be a restocking fee which is usually a percentage of the purchase price. If the merchant is completely responsible for the error or problem the Cardholder should not have to pay this or any other fee. However, if the merchant is not fully responsible the Cardholder may have to pay the fee. The Purchasing Card may be used to pay this fee as long as it does not exceed any of the Card limits.

DISPUTED P-CARD TRANSACTIONS

When a disputed charge cannot be resolved with a supplier, transactions may be disputed using Access Online. Refer to the Access Online Cardholder Reference Guide; Dispute a Transaction Quick Reference section for directions. During U.S. Bank’s investigation, the Bank will issue a credit to the Purchasing Card account in question for the disputed amount. When the investigation is complete, you will be notified of the resolution by U.S. Bank. If you are not satisfied with the resolution, immediately contact your Agency P-Card Administrator.

Transactions can also be disputed via mail. Complete the U.S. Bank Cardholder Statement of Questioned Item Form and send it to U.S. Bank Financial Services with a copy sent to your Agency P-Card Administrator. This written notice of dispute must be received by U.S. Bank within 60 days of the date that U.S. Bank sent the first statement or transaction file.

*Optional Mailing Address for Disputed Transactions:

U.S. Bank Government Services 4325 17th Avenue SW Fargo, ND 58102

Common Types of Disputed Transactions include:

The merchandise arrives broken, and the merchant refused to replace it.

The invoice is for more than your receipt and the merchant refuses to give you a credit.

Cardholder does not recognize a particular charge on the account.

Cardholder receives a duplicate charge from the merchant.

6.2.4 COMPLIANCE WITH PROGRAM GUIDELINES

Cardholders, program users, or approving officials who knowingly, or through willful neglect, fail to comply with DOA Enterprise and Agency guidelines may be subject to suspension or termination of account privileges or other disciplinary action, up to and including termination of employment and criminal prosecution to the fullest extent of the law. The State P-Card Maintainer and State Bureau of Procurement reserve the right to withdraw any authority or delegated approval due to non‐compliance with applicable laws, rules, regulations, policies, and procedures, or the terms of any conditional approval.

7.0 AGENCY ROLES AND RESPONSIBILITIES

7.1 AGENCY ROLES IN PEOPLESOFT

Each State Agency and Entity is responsible for administering the Purchasing Card program and shall designate at least two people as the Agency P-Card Administrators, a primary and a back-up. The Primary will lead a team of purchasing and accounting personnel for program implementation and ongoing administration. Large State Agencies or Entities may have more than one person to lead teams within the organization’s separate divisions (i.e. site managers). The following State Agency Purchasing Card roles and responsibilities are defined below.

Some Boards, Commissions, and other small entities may be attached to DOA, or to a delegated agency for the purpose of sharing Administrators.

7.1.2 AGENCY P-CARD ADMINISTRATOR

The Agency P-Card Administrator is the person responsible for management and oversight of the Purchase Card program at the State Agency or Campus level. This person establishes and maintains Cardholder profiles, maintains Cardholder proxies, maintains Cardholder ChartFields, and modifies P-Card transactions as necessary. Additional responsibilities include the following:

· Managing the Purchase Card program within the State Agency.

· Developing and enforcing State Agency policies and procedures for using the Purchasing Card, including disciplinary procedures related to unauthorized use of Cards and Card renewal procedures. The State Agency policies and procedures should meet the minimum requirements of the statewide policies and procedures contained in this manual. State ethics laws should also be considered when developing State Agency ethics policies.

· Establishing and maintaining the Purchase Card reporting structure/hierarchy for the State Agency and ensuring proper separation of duties. For example, a Card user cannot be the approver or reviewer for their own transactions.

· Reviewing Purchase Card applications and determining who within the State Agency should receive a Card.

· Ensuring that a Cardholder agreement form has been signed by all the required P-Card roles associated with the Card and maintaining copies of the signed agreements in the State Agency or Entities files.

· Maintaining a list of current Cardholders that are authorized to use Cards.

· Obtaining Cards from the issuing Bank and distributing new and reissued Cards to State Agency employees.

· Providing training to all people with P-Card roles regarding the management, security, and use of the Card.

· Auditing the State Agency Purchase Card program at least annually to ensure that proper procedures are being followed.

· Ensuring Cardholders satisfy documentation requirements for purchases.

· Closing Card accounts as necessary and collecting and destroying Cards upon employee reassignment or termination.

7.1.3 AGENCY P-CARD REVIEWER

State Agency Employee who reviews Purchasing Card transactions and accesses reports for their organization. The role does not have the ability to make any updates to the Purchasing Card transaction.

· Determine that purchases have been authorized by confirming that all required approvals (Cardholder and supervisor) are present on supporting documentation.

· Reviews the statement to ensure that supporting documentation is attached for each purchase and the documentation adequately supports the charges, including the business nature of the transaction.

· Audit cardholder record(s) of purchase and receipts received from cardholders for propriety.

· Determine that the appropriate Account Codes are charged for the individual charges on the P-Card

· Reconcile Cardholder record with billing file to determine accuracy and appropriateness.

· Receive and review requested management reports from the Bank.

· If it is determined that personal charges are occurring on the Card, then appropriate steps must be taken to resolve the misuse of the Card.

7.1.4 AGENCY P-CARD APPROVER

The Agency P-Card Approver is assigned to monitor, review, and approve Card transactions to ensure compliance with Purchase Card policies and procedures. This is a State Agency end-user who can complete all of the same actions as the Agency P-Card Reconciler role, but also has the ability to set the transaction status to Approved. Additional Approver responsibilities include the following:

· Complying with all State Agency purchasing statutes, rules, policies, and procedures.

· Establishing authorization controls for each Card, which includes limits on the types of purchases, dollar limit per transaction, billing cycle purchase limit, etc.

· Establishing procedures for maintaining security of the Purchase Card.

· Ensuring timely reconciliation of Card statements, including ensuring that supporting documentation is attached.

· Monitoring Card activity for unusual patterns of use or unacceptable transactions, and taking appropriate disciplinary measures with Card users who misuse their Purchase Card.

7.1.5 AGENCY AP PROCESSOR

The Agency AP Processor will be responsible for entering, researching, deleting, and correcting vouchers during the Purchasing Card reconciliation process.

· Reconciling Purchase Card transactions to the accounting system and ensuring that all Purchase Card transactions have been recorded and approved.

· Correct all voucher recycle errors during the reconciliation voucher build process.

· Resolve all Budget Check Exceptions by updating voucher distribution line(s) and/or contacting Finance to research and correct all budget issues.

7.2 AGENCY RESPONSIBILITIES

The Agency Purchasing Card Administrator is the liaison between the Agency and the State P-Card Contract Manager. Responsibilities include, but are not limited to, handling purchasing card applications, aiding suppliers (merchants), responding to inquiries on internal policies and procedures, billing information, missing statements and damaged, lost or stolen cards.

7.2.1 AGENCY AUDITING

Agency Internal Audits should include but are not limited to:

7.2.1.1 Annual Review of Spending Limits

Each State Agency and Entity is required to perform a review of spending limits at least annually in order to determine if each Cardholder’s spending limits are both adequate and appropriate. The review must include transactions from at least 24 complete, consecutive cycles.

7.2.1.2 Dormant Cards

Each State Agency and entity is responsible for defining in its internal policy how long a Card can remain unused before it is considered inactive. The State Bureau of Procurement’s recommendation is that a State Agency should review any Card that has not been used within 24 complete cycles and contact the cardholder to determine if the Cardholder still needs the Purchasing Card.

7.2.1.3 Transaction Audits

The Procurement Manual PRO-410 states that the Purchasing Card Agency is responsible for establishing and maintaining proper P-Card controls through the development of internal policies and procedures within their Agency P-Card Manual. Agency P-Card policies and procedures shall be based upon the minimum requirements as they exist in the State’s Accounting Manual and Procurement Manual, and shall be reviewed and enforced via Agency Internal Audits. The primary purpose of these audits is to ensure that:

· Program policies and procedures are being followed.

· Purchase volume appears reasonable.

· Transactions are appropriate.

· Purchases are made from eligible merchants.

· Documentation is complete.

· Proper internal controls exist with regard to the program.

If the Agency P-Card Administrator or the Cardholder’s supervisor determines that personal or other unauthorized charges have occurred, they shall identify and enact appropriate disciplinary steps.

7.2.2 SET-UP, MAINTENANCE, AND CLOSEOUT

7.2.2.1 Set up Cardholder Accounts

Agency P-Card Administrator is responsible for receiving and processing P-Card Applications from Cardholder Applicants in their Agency:

1. Obtain and retain a completed form DOA-3584:Purchasing Card Application and Use Agreement (or Agency-specific equivalent) from each cardholder applicant. The form may be reproduced or customized as needed.

2. Complete the cardholder account setup via the online system provided by the contractor, currently Access Online

3. Collect the accounting information for the cardholder at time of application.

4. Provide training to cardholders and supervisors.

7.2.2.2 Maintain Cardholder Accounts

Maintenance duties include but are not limit to

· Submit written requests for statewide standard MCC or Transaction limit increase exceptions to the State P-Card Contract Manager. See 7.2.2.5 and 9.4.2 for Exception processing details.

· Suspend card accounts if a cardholder takes a leave of absence.

· Update accounting defaults as needed for the duration of card life.

7.2.2.3 Cardholder Closeout

Agency P-Card Administrators are responsible for closing out card accounts if a Cardholder surrenders a card or leaves the position that authorized them to hold the card. Cards accounts must be closed with U.S. Bank via Access Online. Cards must be set as expired in STAR.

7.2.2.4 Set Cardholder Account Spending limits

Imposing spending limits enables management to provide Cardholders with the purchasing power to accomplish the needs of the job without exposing the State or the State Entity to unnecessary risk. Spending limits should be based on job responsibilities. The State Agency/Campus/Entity shall determine Single and Cycle P-Card Limits at both the organizational and Cardholder levels.

· Single Transaction Limit (STL): A mandatory spending limit that restricts the value of a single transaction regardless of the Cycle Limit on the Card. The standard single limit cannot be more than $5,000 without prior written approval from the State P-Card Maintainer. Below the $5,000 threshold, agency administrators may increase or decrease cardholder limits according to individual need without approval from the State P-Card Maintainer.

· Cycle (Credit) Limit : A mandatory spending limit that restricts the total value of purchases a Cardholder can make in one billing cycle. The standard cycle limit is $10,000 for most cardholders, however Agency Administrators may increase cycle limits according to need without approval from the State P-Card Maintainer. It is recommended that cardholders with increased cycle limits receive additional procurement training to avoid serial purchasing.

7.2.2.5 Update Single Transaction Limits

Where a single purchase over $5,000 is appropriate and necessary for a business purpose, Cardholders may request a Single Purchase Limit exception from DOA via their Agency P-Card Administrator. Either the cardholder or Agency P-Card Administrator may complete this form, but the Agency P-Card Administrator must be the one to submit it to DOA. If the exception is approved by DOA, the Agency P-Card Administrator is responsible for updating the Cardholders information via Access Online.

DOA is providing a blanket pre-approval that Agencies and UW may increase Single Transaction Limits for travel expenses that are on a contract resulting from a Request for Bids, Request for Proposals, or Governor’s Waiver.

Request Form for P-Card Exceptions

7.2.3 SUPPLIER DIVERSITY REPORTING

The Agency central purchasing office will record and report to SBOP purchases made with Wisconsin-certified supplier-diverse businesses per PRO-606, Supplier Diversity Policy and Reporting.

8.0 DOA ROLES AND RESPONSIBILITIES

8.1 STATE BUREAU OF PROCUREMENT (SBOP)

The DOA State Bureau of Procurement administers the contract on a statewide level. The State P-Card Contract Manager acts as the statewide program administrator for State Agencies participating in the State Purchase Card contract. The State P-Card Contract Manager and other SBOP personnel serve as resources for all program users in the areas of policy development and implementation, day‐to‐day administration of the program, audit, and training for P-Card program personnel.

The State of Wisconsin P-Card Manual governs all policies and procedures for the State’s P-Card program by establishing minimum standards for use of the P-Card and other related Purchasing Card accounts to ensure compliance with all applicable State procurement laws and requirements. The current version of the P-Card Manual is posted on the VendorNet website on the Contract page for the Purchasing Card Contract. The effective date of the Manual will be in its header. The State Bureau of Procurement also maintains an archive of previous versions of this manual that is available upon request.

8.1.1 STATE P-CARD CONTRACT MANANGER

The State P-Card Contract Manager is responsible for the following:

· Negotiating all contract terms and conditions with the issuing Bank.

· Managing and administering the statewide program.

· Providing liaison services between the issuing Bank and Agencies as required.

· Approving requests for Agency participation in the program.

· Assisting Agencies in the implementation, administration, and management of their programs.

· Communicating program updates and enhancements to all levels of program participants.

· Maintaining and updating the P-Card Manual and P-Card calendar as needed.

· Providing training and support to Agency P-Card Administrators and Auditors.

P-CARD CALENDAR

Shortly before the start of each fiscal year, the P-Card Contract Manager will provide a P-Card Reconciliation Calendar specific to the coming year on Vendornet. The P-Card Reconciliation Calendar provides the dates and timelines that people with P-Card proxy roles will follow to reconcile and approve P-Card transactions as well as correct P-Card vouchers to ensure timely payment to U.S. Bank. The Calendar also contains the P-Card Reconciliation Process Chart explaining the processes and effects of each deadline in the billing cycle. In addition to the dates described in the Calendar, U.S. Bank does not cycle or post payments on the following holidays: Thanksgiving Day, Christmas Day, New Year’s Day.

8.1.2 STATE P-CARD MAINTAINER

The State P-Card Maintainer is a role held by the State P-Card Contract Manager and at least one, usually two back-ups in the State Bureau of Procurement. The State P-Card Maintainers have the ability to correct P-Card error transactions that fail to load in the PeopleSoft file as well as generate reconciled P-Card transactions into vouchers for payment to the Bank within the appropriate billing cycle.

8.1.3 SBOP AUDITOR

In addition to the Agency Internal P-Card audits, SBOP may also conduct random Statewide audits regarding P-Card usage and reporting at either the Agency or Cardholder level. SBOP conducts high-level reviews of purchasing card use from the detailed reports generated from US Bank’s Access Online data system. The reviews occur on a monthly basis. Follow-up audits may be conducted depending upon the findings and trends. This monthly audit process includes a compilation of agencies and campuses that will be reviewed each month on a rotating basis divided among Agencies categorized as High Spend, Medium Spend and Low Spend.

8.1.3.1 Audits

These audits pull data from Access Online rather than PeopleSoft, and identify:

· Purchases from off-contract vendors in commodity or service areas which are covered by mandatory contracts.

· Excluded Merchant Category Codes for verification of pre-approval by State P-Card Contract Manager

· Merchants who appear on DOR’s Ineligible Vendors list.

· Merchants who appear on the Ineligible Vendors list per Executive Order 184.

· Contract compliance ineligibility

· Review cardholder spend to identify cardholders with more than $5,000 for any one day to determine if split purchasing.

· Single Transactions exceeding $5,000 for verification of pre-approval by State P-Card Contract Manager.

· Supplier spend levels will be analyzed to identify opportunities for efficiencies in future solicitations and other possible maverick spend.

· Purchases from merchants or MCC Codes of an unusual nature which may be inappropriate use, such as parking, hotels, florist, restaurants, costume shops.

8.1.3.2 Access Online Bank Notifications

U.S Bank’s online transaction management system, Access Online, has established additional transaction review tools. They include Payment Analytics and Event Driven Notification where automatic notices are sent if a review rule has been triggered. Triggers have been enabled for SBOP to be notified when the following occurs:

· Purchasing Card has been used for a transaction involving foreign currency or a weekend purchase.

· A Cardholder has multiple purchases on the same day with the same merchant exceeding their single purchase limit (split purchasing).

· A transaction using a prohibited Merchant Category Code.

· A transaction with a merchant identified on the Department of Revenue Certification for Collection of Sales and Use Tax.

8.1.3.3 Transaction Types of Interest

The following transaction types will emerge during an audit review and will require the investigator to collect more detailed information.

· Suspect Merchants: These merchants can be referenced by merchant category code or by name that provide services and/or commodities which do not meet legitimate state business needs and are restricted or prohibited by law, regulation, or policy.

· Holiday and Weekend Purchases: Are determined by the transactional dates.

· Split Transactions: This is the act of dividing a single and full amount of payment into two or more simultaneous transactions. This includes payments made by different methods. This is a violation if used by Cardholder to circumvent an established control that would have otherwise prevented a single transaction for the full cost.

· Serial Contracting/Serial Purchasing: Multiple transactions with the same merchant for the same good or service over a short period of time, but up to a single fiscal year, without use of a competitive process or a waiver as required under state purchasing policies, procedures and law for that spend threshold.

· Purchases Beyond Pre-Determined Transactional Parameters:

Cardholder purchases surpassing established single transaction spend limits per P-Card without an exception approval from DOA.

8.2 STATE CONTROLLER’S OFFICE (SCO)

8.2.1 ROLES

SCO has one PeopleSoft role, which is SCO_P-CARD_REVIEWER. This role is reserved for SCO Audit Services Section staff to conduct reviews of Purchasing Card transactions as part of agency compliance reviews. As part of the entrance conference when an agency is under review, the SCO will request certain SCO staff with this role be added for all of the Agency’s P-Card holders. In addition to the agency compliance reviews, SCO may also conduct statewide reviews of cardholders to determine whether cardholder access remains appropriate.

8.2.2 RESPONSIBILITIES

The SCO is responsible for the following:

· Establishing statewide policies and minimum procedures governing the P-Card programs.

· Internal auditing and Agency travel control.

· Responsible for the development and maintenance of the Wisconsin Accounting Manual policies and procedures.

· Ensuring timely payment of the Purchasing Card program invoices.

8.3 STAR PROGAM OFFICE – PEOPLESOFT SYSTEM

For State Agencies participating in STAR PeopleSoft, Purchasing Card payments will be processed in the PeopleSoft system, which is managed and supported by the STAR Program Office in DOA. Transactions will be loaded into PeopleSoft via an electronic interface with U.S. Bank and must be approved either individually or through performing a “select all and approve” function in PeopleSoft which allows an automated batch process to build vouchers. Transactions must be approved no later than the Thursday following the transaction billing date so that a timely payment can be made to meet contractual obligations to the Bank. Transactions not approved by the Agency will be approved by a State P-Card Maintainer in order to ensure that vouchers are generated timely.

8.3.1 TRAINING RESOURCES

The STAR Confluence site hosts a variety of training, testing and reporting resources at https://confl-star.wi.gov/display/AGNCY/Learning

8.3.2 REPORTING SYSTEM ERRORS

Please report system errors via:

1. Telephone at 844-947-7827, During the hours of 7:30 am – 6:00 pm CST (M-F)

2. Email at starsupport@wisconsin.gov

3. Submitting a JIRA ticket for those with access.

When submitting a report, please include the following information:

Business unit, your name and email address, IAM and EMPL ID for the affected user(s) and a description of the problem or request, including screenshots if applicable.

For any additional questions, please contact the STAR Project Team at: STARsupport@wisconsin.gov or The STAR Support Center by phone at: 608-264-STAR (7827) or 844-WIS-STAR (947-7827)

9.0 U.S. BANK: ACCESS ONLINE

9.1 ACCESS ONLINE : LOGIN PAGE

https://www.access.usbank.com/cpsApp1/AxolPreAuthServlet?requestCmdId=login.

9.2 U.S. BANK PROCESSING HIERARCHY NUMBERS

The Processing Hierarchy is a five-level hierarchy of numbers assigned by U.S. Bank to each Managing Accounts and associated card accounts. The Processing Hierarchy numbers control how the system processes transactions for billing and accounting purposes, and are also commonly used for reporting purposes. Processing Hierarchy is based on three mandatory numbers and two optional ones. Mandatory numbers are Bank, Agent, and Company. Optional Numbers are Division and Department.

· Bank Number: A four-digit number that describes the type of card product on the account. Bank Number 1425 indicates a Purchasing Card Account, 3046 indicates a Virtual Card Account, and 3757 indicates a One-Card Account.

· Agent Number: A four-digit number that, in conjunction with the Company Number, uniquely identifies an Agency account.

· Company Number: A five-digit number that, in conjunction with the Agency Number, uniquely identifies an Agency account.

The State P-Card Contract Manager maintains a master list of Processing Hierarchy Numbers at all Agencies. Agency P-Card Administrators may contact them if they need numbers.

9.3 TRAINING RESOURCES: U.S. BANK

U.S. Bank offers a large selection of online guides, videos and eLearnings. To view the Training Library, sign into Access Online and click the “Training library” link on the lower left side of the screen.

9.4 MERCHANT CATEGORY CODES (MCC)

MCC codes are four-digit numbers assigned to a business by its bank when a business first starts accepting one of these Cards as a form of payment. The MCC is used to classify the business by the type of goods or services that it provides.

9.4.1 MERCHANT CATEGORY CODE (MCC) GROUP

Visa provides this list as a logical grouping of merchant category codes (MCCs) which U.S. Bank has implemented as its default MCC groups for Access Online applications.

Visa: MCC All Codes Listing

9.4.2 MERCHANT CATEGORY CODE (MCC) ACCOUNT CONTROLS

Each Agency has established an MCC controlling list which describes whether controls are inclusive or exclusive, and which codes are included or excluded for that Agency. The Agency Managing Account controls are applied to all Cardholder Accounts at that Agency. Once a Cardholder Account is established under a Managing Account, individual MCC codes may be added or removed from the Cardholder Account individually according to need.

Inclusive and Exclusive MCC Controlling Lists U. S. Bank allows Agencies, with approval from DOA, to restrict card purchases by configuration of MCC Controlling Lists. These restrictions will be automatically checked by U. S Bank Software during the purchase authorization process based on the MCC codes used in each transaction. Each State Agency has individually defined MCC limitations as Inclusion or Exclusion controls on their Managing Accounts. Cardholder accounts inherit the MCC controls of their Managing Account, but control structure for a Cardholder Account may be temporarily modified on a code-by-code with approval from DOA P-Card Contract Manager by way of the Request form below.

· Exclusion Controls: An exclusion-controlled account is defined by the list of codes it excludes. It allows transactions using all MCC except those specifically named in its controlling list. Those named in the list are blocked. The majority of Purchasing card accounts and Corporate card accounts are set up with this structure.

· Inclusion controls : An inclusion-controlled account is defined by the list of codes it includes. It allows only those transactions using MCC codes that are specifically named in its controlling list and blocks all other codes. The majority of travel cards are set up with this structure.

If a Cardholder experiences a declined transaction for MCC reasons despite the transaction being appropriate and necessary for their business purpose, the Cardholder can request an MCC exception from DOA via their Agency P-Card Administrator. Either the Cardholder or Agency P-Card Administrator may complete the Exception Request form, but the Agency P-Card Administrator must be the one to submit it to DOA.

How to request an exception

10 P-CARD CONTACTS

10.1 AGENCY CARD PROGRAM CONTACTS

A list of Agency P-Card program contacts is maintained by the State P-Card Contract Administrator. The list is available for viewing at P-CARD PROGRAM ADMINISTRATORS AT EACH AGENCY and is updated semi-annually.

10.2 SBOP P-CARD PROGRAM CONTACTS

· State P-Card Contract Administrator-Penny Lawler 608-261-5051, Penny.Lawler@wisconsin.gov

· State P-Card Administrator Back-up- Leann McGowan 608-266-8024, leannk.mcgowan@wisconsin.gov

10.3 U.S. BANK NATIONAL ASSOCIATION CONTACTS

10.3.1 CONTACTS FOR CARDHOLDERS

· Cardholder Customer Service Toll-free telephone: 800.344.5696, Collect: 701.461.2042 for

· Balance inquiry

· Statement inquiry

· Disputed item

· Declined purchase

· Card activation

· Lost, stolen or compromised card

· Manual authorization (merchant contact)

· Fraud Department Toll-free telephone: 800.523.9078, Collect: 701.461.2042 for

· Receipt, tracking and management of fraud cases

· Investigation of suspicious transaction activity

· Access® Online Technical Help Desk for Cardholders 877.887.9260 for

· Cardholder address or phone number change

· New cardholder account setup

· Card reorder

· Declined transaction research

10.3.2 CONTACTS FOR ADMINISTRATORS

Please note that in order for U.S. Bank to recognize and assist an Administrator, that Administrator must be listed in Access Online as a Point-Of-Contact for that Agency/Managing…