# Presentation: 040082

## Government Purchase Card Acquisitions $2,500.00 or LessKSC Course CCT2/13/01

- Allen J. Miller
- OP-OS/7-3308
-                                                               					NASA

## Introduction

- The establishment of the KSC purchase card program is welcomed by many, especially customers who will receive their micro-purchases (purchases valued at $2,500 or less). In record time --
- From hours to a few business days.

- Purchase Card Training

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## Introduction...

- But in order for this program to succeed, it must be built on
- cooperation, coordination, and widely-communicated internal controls to ensure its integrity and
- accountability.

## Success is Key

- Coupled with the Approving Official, the Cardholder will embark on providing a new benchmark for:
- Quality service and flexibility of micro-purchases.

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## Operating Procedures will introduce 

- Guidelines of the Program.
- Participants to the seven process steps of the Purchase Card program at KSC.  Also, these policies will detail responsibilities, identify ownership, and introduce various customer and program tools.
- & ensure a smooth running program.

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## Program Overview

- The Purchase Card Program can be divided into seven distinct functions. Each sequential function contains specific guidelines, that if not met, the process will not proceed to the next function.

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## Seven Steps to Success

- Purchase Card Account
- Customer Request
- Shopping/Ordering
- Receipt

- Reconciliation
- Disbursement
- Reporting
- Audit Compliance
- Was that 7 ?

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## Participants/Responsibilities

- Each function contains various participants who facilitate the process. Each participant has clear and distinct responsibilities:  the Customer, Cardholder, Approving Official (AO), Agency Program Coordinator (APC).

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## Participants...

- Dispute Office Contact (DOC), the Comptroller Organization, Procurement Cardholder Representative (PCR), Spaceport Services, and Technology Implementation Panel (TIP), & Chief Information Officer (CIO).

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## Customer Responsibilities

- The Customer is the individual within the Cardholder's directorate that expresses a need for an item.
- The Customer is responsible for: Complying with the following Chief Information Officer's (CIO) Directives: Latest version all Executive Notices.

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## Customer Responsibilities...

- Seeking Chief Information Officer (CIO) Approval for Information Technology Purchases.
- Seeking Technical Implementation Panel (TIP) Approval for Information Technology (IT) purchases utilizing ROS (Institutional) funding.

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## Cardholder

- The Cardholder is the individual to whom a Government Purchase Card is issued. Cardholders are :
- Issued a Delegation of Authority from the Procurement Officer.

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## The Cardholder is responsible for:

- Maintaining control/custody of the Purchase Card; only the Cardholder may utilize the card.
- Purchasing only authorized items in compliance with established KSC procedures, pertinent regulations/guidance.

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## Freedom of Information

- All data under the Purchase Card program (including the Cardholder's name and items purchased) is releasable under the Freedom of Information Act.

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## Cardholder...

- Ensuring that adequate funds are available and certified prior to placing an order.
- Training customer on proper completion of Section 1 & 2 of the Purchase Card Purchase Record Document.

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## Cardholder Must

- Maintain a Purchase Card Purchase Record and a Cardholder **Purchase Log** And A **FY File** of all Purchase card purchases.
- Retain all documents (e.g... charge slips, shipping invoices, etc.) pertaining to the purchase.

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## Documentation is Key

- Records keep you out of trouble...
- Explain why you did what you did...
- As long as you try to follow all rules and did not break any laws:
- You will be **okay.**

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##  Cardholder is responsible Cont.....

- Resolving all discrepancies with the vendor(s), and/or Purchase Card company, and reconciling the monthly statement.
- Discrepancies that cannot be resolved between the vendor(s) and the Purchase card company should be brought to the attention of the APC.

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## Cardholder is responsible Cont.....

- Reporting immediately lost or stolen Purchase Cards to the Agency Program Coordinator (APC), Approving Official (AO), and the Purchase Card company.
- Providing the Comptroller Organization the required documentation and funding/accounting data as detailed in this plan or request.

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## Please!!!

- Report any changes to the Agency Program Coordinator (APC) such as phone number, mail code, organization, etc.
**Notify Allen J. Miller in writing & cut up the Purchase Card; if card is no longer required.**

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## Approving Official

- The AO is the person who reviews and approves the cardholder's monthly statement of purchases. The AO shall be the cardholder's supervisor or a higher level individual.

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## Comptroller Organization 

- Resources Project Offices [GG-C1, GG-C2, GG-C3] are responsible for :
- Generating and maintaining the financial data on the Purchase Card Register.
- Establishing Material Requisitions (MRs).

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## Financial Management Division

- The Financial Management Division is responsible for the disbursement of payments in accordance with the Prompt Payment Act. Also, the Financial Management Division shall :

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## Financial Management Division Cont...

- Maintain only the required disbursement documents such as the reconciled Statement of Account approved by the Cardholder and Approving Official, Disputes Form (if applicable), and the Multiple Object Class Code/FMC Reconciliation Form (if applicable).

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## Procurement Cardholder Representative(PCR)

- Will assist the Cardholder in obtaining pertinent information regarding buying sources or any other Purchase Card questions. **The PCR will:**
- Provide assistance in obtaining the phone number for a particular GSA schedule.

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## Logistics

- J-BOSC logistics personnel will be responsible for
- Screening of proposed purchases, tagging of controlled property, and acting as the central delivery point at KSC.
- NASA TA-E1 will tag the controlled equipment that was picked up in person at the vendor's location by the cardholder.

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## Chief Information Officer

- The CIO is responsible for the approval/disapproval of all purchases of IT equipment and software for all organizations.

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## Technical Implementation Panel (TIP)

- Approval/disapproval of all purchases of IT equipment and software for organizations utilizing ROS funding.

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## Purchase Card Account

- The Comptroller Resources Project Offices will generate and maintain jointly with the APC a Purchase Card Register. The Funding will established up front.
- The directorates will commit the entire balance of the MR at the beginning of each fiscal year. Funds not obligated by Sept 15 of the fiscal year will be decommitted.

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## “Remember” (as Spock would say..)

- Do Not Spend without Funds!  A new MR will be established
- at the beginning of the new fiscal year.  There will be no rollover of unobligated funds.

## Do Not Spend without Funds!

- Spock is a famous Vulcan.

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## This Means Only You!!!The Cardholder

- The Procurement Officer will issue a "Delegation of Authority " to the Cardholder. This document authorizes the Cardholder to conduct micro-purchasing on behalf of the U.S. Government.
**Do not loan out your card for others to use or let another place a phone order in your stead.**
- You get one written warning then:
- Your Card will be taken from you.

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## Finally the Buying Process

- At this stage, the cardholder has been trained, an MR established, and the Cardholder is in receipt of a Purchase Card with their name and account number embossed on the front of the card.
- The following details the Customer Request process:

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## Completing the Purchase Record

- The Cardholder is approached by a customer to purchase an item(s) utilizing the Purchase card.
- The customer completes Sections 1 and 2 of  Purchase Record as indicated and forwards a fax or hard copy to the Cardholder for processing.

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## Demo Time

- Let us do some buying.
-  Priorities for use of Government supply sources. Read the required priorities in FAR Part 8 .
- GSA Advantage!

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## General Information:

-  Micro-purchases of $2,500 or less are not set-aside for small business.
- Do not have to be placed competitively.
- Buy American Act is not applicable.

- PROHIBITIONS
- Splitting of a requirement to fall within the $2,500 limit is prohibited ***Remember*** or...

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## Spock will

- Do his Vulcan pinch *thing *and
- It Will Hurt.

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## Cardholder Musts

- Distribute purchases equitably among qualified vendors to avoid the appearance of favoritism.
- By placing a order, the Cardholder is stating the purchase price of items is fair and reasonable.

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## Remember perception is a key to success

- Even if you do not and did not**!** split requirements or pay an unreasonable price!!!  Someone may think you did...

## Ask Yourself

- What would Dan Rather would say?
- What would the IG say or report...
-  ***It’s an integrity thing!***

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## Information

- Partial deliveries and back-ordering of item(s) is discouraged.
- COD shipments are not allowed.
-  Off-site delivery  to a non-Government location is prohibited.

- All purchases not picked up directly from the vendor's location by the Cardholder, will be delivered to a Government location (e.g.. KSC and NASA Vandenberg).

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## Placing the Purchase Card Order

- The cardholder may place the order via phone or in person. When placing the order, the
- Cardholder should provide and confirm the following information (if applicable):

- Notify vendor of tax exempt status (Certificate Number 15 00 052729 51C). If the vendor
- Request a copy of the tax exempt Certificate - contact Barbara Hickle (OP-AM) at 7-9212.

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## Placing the Purchase Card Order

- Confirm with vendor the total cost of the purchase. This cost should include the cost of item(s) as well as the associated shipping and handling charge.

***Avoid unneeded paperwork***

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## Do Not Pay for An Item You Do Not Have!

- Verify that the vendor agrees to charge the Purchase card only after shipment.
-  Notify vendor that no partial deliveries are authorized. ***You can accept partial deliveries for emergency type items! ***
***But:***

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## The vendor must bill for only items shipped.

- Please tell the vendor “You can reserve the entire amount on my card today, just do not charge my card until the item(s) are shipped”.

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## Controlled ItemsObtain:

- Vendor WARRANTY information (length, number, and company responsible) and annotate in Section 4 of Purchase Record. The cardholder shall forward to your property custodian this information to be input in NEMS Control (TA-E1).

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## Controlled Items shipping address

- NASA, J-BOSC Receiving, M6-744        ATTN: Property Management            [Cardholder Name, Building, Room Number]                                                     Kennedy Space Center, FL 32899

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## Documentation, Documentation, Documentation

- To document order placement, the Cardholder will complete the applicable items in Section 4 of the Purchase Record and annotate the Cardholder Purchase Log.

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## General Receipt Information:

- If the item(s) is a controlled item and picked up at the vendor's location by the Cardholder in lieu of being shipped, the Cardholder is to notify Spaceport Services, TA-E1 (7-4805) for tagging.

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## Receipt of item @ J-BOSC Receiving

- Visual inspection accomplished by J-BOSC Receiving. All controlled items will be tagged, the appropriate data will be transmitted to NEMS Control (TA-E1), and the items will be delivered to the Cardholder. All non-controlled items received will be delivered to the Cardholder.

## Item delivered to the Cardholder

- Once the item(s) has been delivered, the Cardholder should check for damage, verify contents, and quantity order against the relevant Purchase Record as follows:

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## IF THE ITEM(s) IS UNDAMAGED And corresponds to the order

- Cardholder contacts the Customer to arrange for pick-up. Please keep all of the shipping documents, and attach the documents/receipt to the Purchase Card Purchase Record.

## Upon Customer Pickup

- Customer initials the "Customer Okay" line located in Section 4 of the Purchase Record. This records the Customer's receipt and acceptance of the property. It is the Customer's responsibility to contact the Cardholder if the item(s) does not operate properly.

## If The Item is DAMAGED

- The Cardholder retains the item(s) with all packaging.
- Contacts the vendor for resolution and Freight Traffic (7-3501) to process a freight claim for damages.

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## If the item does not correspond to the order

- Retain the item(s) with all packaging,
- Complete KSC Form 7-248 to ship the item(s) back
- The vendor will be responsible for the shipping cost.

- Contact the vendor to correct the discrepancy
- Informs J-BOSC Shipping (7-7998) when item(s) is  ready.
- J-BOSC Shipping will assist the Cardholder in this matter.

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## Reconciliation

- Each month, the Cardholder will receive a Statement of Account from the Purchase Card Company.
- The statement will detail transaction date, vendor, and purchase cost. The Cardholder has a total of 5 working days after receipt of statement to reconcile. At this point, the Cardholder should:

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## Reconciliation Cont..

- Verify each charge on the Statement of Account against the Cardholder Purchase Log.
-  IF THE STATEMENT IS CORRECT, the Cardholder signs and dates - on the reverse side - and then forwards it to the Approving Official.

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## Reconciliation Cont..Disputes Form

- IF THERE IS A DISCREPANCY, the Cardholder first contacts the vendor for corrective action, and completes a Dispute Form.
- The original form is submitted to the bank.
- Keep a copy in your file.
-  Forward a copy to Accounting with your monthly statement.

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## Reconciliation Cont..Object Class Codes/Functional Management Codes

- Verify the Correct Codes were used.
- If the codes are the same as on the DESIGNATED ON THE AUTHORIZING MR, the Cardholder does nothing.

**If Not,** the Cardholder summarizes the variation on the Multiple Object Class Code/FMC Reconciliation Form.
- Keep a copy (records), send one with your reconciled statement

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## Financial Management Division:

- Accounts Payable will ensure payments are made in accordance with the Prompt Payment Act and will submit proper documentation to the Purchase card company for invoice adjustments.

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## Reconciliation Cont..

- The Approving Official has a total of 5 working days to review, sign and date the Statement of Account.
- Upon completion, the Approving Official/Cardholder forwards the original reconciled Statement of with the appropriate forms...

- to Accounting/GG-B-C2 for payment

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##  Note:The integrity of this program rests with each Cardholder/Approving Official

- If the Approving Official determines any of the purchases were improper, the APC is notified to take action.
- Please note: The Cardholder may be held personally liable for unauthorized purchases - which may result in restitution, disciplinary action and/or dismissal.

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## Paying the bills for our uncle

- Accounts Payable will only disburse funds for authorized and approved purchases as indicated by the Approving Official. If discrepancies do exist, payment will be made in future months once the purchase has been approved.

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## Reconciliation Cont..End of FY record keeping...

- By September 15, the Cardholder shall report to the Financial Management Division all purchases incurred up to September 15 so obligation can be properly made.

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## Records Retention and Disposition

- The Cardholder is required to retain all records for each Fiscal Year (FY) in a file or notebook at his/her work site to the end of the next FY.
-  Each FY's records shall be maintained in a separate file.
- At the end of the subsequent FY, the Cardholder may turn the prior year's completed file over to their Organizational Records Officer for archiving.

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## Leaving NASA Or Turning in Card

- The Cardholder is required to notify in writing the APC/Allen J. Miller/OP-OS that he/she is leaving NASA and will be turning in or destroying the Purchase Card on the appropriate date.

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## Goodbye, Good Luck Cont..

- The Cardholder is required to reconcile his records and inform his AO of all pending actions. The
- AO shall be prepared to sign all future invoices for reconciliation.

## Penalties for Abuse of Procedures 

- Use of the Purchase card requires adherence to the general and specific instructions governing the program which are contained in the Purchase Card Users' Guide.

- You are cautioned that making cumulative expenditures in excess of the funding limit on your authorizing Material Requisition may be a violation of the Anti -Deficiency Act.

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## the Anti-Deficiency Act.

- The act provides for criminal penalties for knowingly and willfully violating this restriction.
- Splitting of a requirement to fall within the $2500 limit is prohibited.
- The Cardholder and Approving Official may be held personally liable for unauthorized purchases, which may result in restitution or disciplinary action.

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## Audit Compliance

- Audits are a part of life...

## Audit Compliance...

- If you try to follow the procedures and not break the rules You will...

##   Be okay!!!  Do not be afraid to use your card!   

## Feedback

- Written Comments about this presentation and/or suggestions for Program improvement as a whole are always welcome!!
- Send to: OP-OS/Allen J. Miller
- Send to: OP-OS Chief/David Wansley
- Send to: OP/Director of  Procurement/Jim Hattaway

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