State of New Jersey - Circular Letters

Department of the Treasury
State of New Jersey Travel Charge Card Program (Individual)

ORIGINATING NO.: 05-10-DPP

AGENCY: PURCHASE AND PROPERTY

EFFECTIVE DATE: 1-24-05

EXPIRATION DATE: INDEFINITE

SUPERSEDES: 98-05-GSA

SUBJECT: STATE OF NEW JERSEY TRAVEL CHARGE CARD PROGRAM (INDIVIDUAL)

ATTENTION: DIRECTORS OF ADMINISTRATION, CHIEF FISCAL OFFICERS, AND DESIGNATED AGENCY PROGRAM COORDINATORS (APC)

FOR INFORMATION CONTACT: GARRY DALES

PHONE: (609) 984-3131

CONTENTS

I = Introduction

II = Program Standards

III = Travel Charge Card Program

IV = Card Abuse

V = Emergencies

Appendices: A. Corporate Travel Charge Card Instruction Pamphlet

B. Corporate Travel Charge Card Acknowledgement

Introduction
1.1. Purpose
The State of New Jersey's Travel Charge Card Program was established to provide a more convenient and efficient payment system for expenses incidental to official State business travel. This circular letter prescribes policies and procedures governing the State of New Jersey's Travel Charge Card Program. It provides standard guidelines for usage of the card.
1.2. Reference
Department of the Treasury, OMB Circular Letter No. 04-05-OMB, Travel Regulations.
1.3. Responsibilities
1. Director, Division of Purchase and Property, will exercise overall responsibility for policy and program implementation for the State's Travel Charge Card Program for travel-related expenses as follows:
  1. Publish policy and procedural guidelines for the Travel Charge Card Program for the State's Executive Branch Departments/Agencies.
  2. Restrict merchant category spending in accordance with the State's travel policy.
2. State Department/Agency Heads will:
  1. Ensure compliance with the policies and procedures established herein.
  2. Establish and maintain an Agency Program Coordinator (APC) function to ensure compliance with this Circular Letter.
  3. Administer appropriate disciplinary action to those who abuse their card privileges.
  4. Ensure that all Cardholders are familiar with the policies, procedures, and their responsibilities regarding the possession of the travel charge card.
  5. Inform the Executive Commission on Ethical Standards of inappropriate personal use of the travel charge card, which may be considered a violation of the Department/Agency's Code of Ethics.
3. The Agency Program Coordinator (APC) will:
  1. Monitor contract compliance and administer the Department's/Agency's charge card program.
  2. Process applications for charge cards in accordance with this Circular Letter.
  3. Cancel charge cards in accordance with this Circular Letter.
  4. Receive and review informational reports provided by the charge card company.
  5. If necessary, restrict spending for specific industry categories (i.e. retail, mail order, etc.).
  6. Review and approve or deny requests for account reinstatement for canceled accounts.
  7. Solve program problems and answer Cardholders' questions.
  8. Inform the Department/Agency Head of card abuse.
4. The Cardholder will:
  1. Be familiar with and adhere to the policies established in the Circular Letter and the charge card company's terms and conditions.
  2. Pay the bill promptly. A travel expense voucher should be filed promptly with original receipts so that reimbursement may be received in time to pay the charge card company. However, if the bill arrives prior to reimbursement, the Cardholder is still responsible to make a timely payment.
  3. Use the card only for official State business travel-related expenses.
Program Standards
2.1. Program Policy
1. The Travel Charge Card Program will be administered entirely on the basis of merit, without regard to age, sex, race, color, religion, national origin, or physical or mental handicap. All eligible individuals in accordance with Section 3.2 of this Circular Letter are encouraged to apply for a travel charge card. However, State employees may opt to use their own personal credit cards.
2. The travel charge card will eliminate the need for the majority of the Cardholders' cash advances. Cash advances to employees may be restricted based upon travel charge card eligibility.
3. Departmental/Agency travel card programs will be subject to periodic review/audit and will be a targeted area in the annual Internal Controls Assessment to ensure compliance with the policy and procedures of this Circular Letter.
4. Charges made to the travel card may be subject to review under the Open Public Records Act (OPRA).
2.2. Procedures
1. All new or reassigned employees who are likely to travel for official State business may apply for a travel charge card as part of their orientation process.
2. Cardholders transferring within or outside of their present State Department/Agency must comply with Sections 2.4 and 2.5 of this Circular Letter.
3. Cardholders leaving Executive-branch employment will turn in their travel charge cards to their APC.
2.3. Applying for the Travel Charge Card
The travel charge card application requires that applicants provide all necessary personal information consistent with normal charge card application procedures.
1. New applicants will:
  1) Contact their APC to inquire about internal policy and procedures concerning eligibility to acquire the travel charge card.
  2) Complete the travel charge card application form or provide the APC with all pertinent information required by the charge card vendor, upon Departmental/Agency authorization to receive the travel charge card.
  3) Read the Corporate Travel Charge Card Instruction Pamphlet (Appendix A).
  4) Read the Corporate Travel Charge Card Acknowledgment form (Appendix B).
  5) Complete Item # 1 and the Employee section of Appendix B.
  6) Forward completed documents to the APC.
  7) Be subject to a credit check.
2. The APC will:
  1) Verify the applicant's eligibility for the travel charge card in accordance with Departmental/Agency standards.
  2) Provide the applicant with the travel charge card application form or request the relevant information and complete the application for the employee.
  3) Forward Appendix A (Corporate Travel Charge Card Instruction Pamphlet) and Appendix B (Corporate Travel Charge Card Acknowledgement) to the applicant.
  4) Ensure that the applicant completes the travel charge card application form, if the APC is not initiating the request, and Appendix B.
  5) Complete and sign the APC portion of Appendix B.
  6) Forward the application to the contracted charge card vendor.
  7) Retain copies of the completed application and signed Appendix B.
  8) Upon receipt of the card from the vendor, verify the accuracy of the Cardholder's name and billing address versus the application, and if all aspects are in order, give the card and associated literature, if any, to the Cardholder.
3. The Cardholder will:
  1) Sign the charge card upon receipt.
  2) Adhere to all rules and regulations associated with the card.
2.4. Transfers within the Cardholder's Department/Agency
1. The Cardholder must advise the APC if (s)he is transferred within the Department/Agency.
2. The APC will modify any documentation to identify the Cardholder's new unit internally for tracking purposes and if necessary with the charge card vendor.
3. The Cardholder transferring to a position which no longer requires official travel will return the card to the APC. The APC will cancel the account. Upon completion of the cancellation, the APC will destroy the card.
2.5. Transfers outside the Cardholder's Department/Agency
1. The Cardholder must advise the APC if (s)he is to be transferred to another Department/Agency. The card must be returned to the APC prior to the transfer.
2. The APC will cancel the account with the charge card vendor. Upon completion of the cancellation, the APC will destroy the card.
3. If applicable, the transferred employee must reapply for a card with her/his new Department or Agency.
2.6. Cancellation of Travel Charge Card
1. The Cardholder must advise the APC that the travel charge card is no longer needed and must be returned to the APC.
2. The APC will cancel the account with the charge card vendor. Upon completion of the cancellation, the APC will destroy the card.
2.7. Termination of Cardholder
1. The Cardholder or her/his supervisor will contact the APC when the Cardholder leaves the Department/Agency due to retirement or other separation from State employment. The card will be returned to the APC.
2. The APC will cancel the account with the charge card vendor. Upon completion of the cancellation, the APC will destroy the card.
Travel Charge Card Program
3.1. Travel Charge Card
1. The travel charge card will clearly identify the Cardholder as an employee of the State of New Jersey. The charge card is State-sponsored and contractor-issued. The Cardholder enters into a contract with the charge card company. The State accepts no liability for charges made using the charge card.
2. The travel charge card is a charge card, not a credit card, and features no preset spending limits contingent upon a credit check. The Cardholder is responsible to make full payment of all charges to the travel charge card company upon receipt of the billing statement.
3. The charge card contractor:
  1) May provide credit information to credit bureaus concerning State Cardholders' accounts.
  2) Will sell the debt of Cardholders outstanding balance to a collection agency if non payment reaches 180 days.
3.2. Eligibility
1. All State of New Jersey full-time employees who are likely to perform official State business travel are eligible to apply for the travel charge card.
2. The State of New Jersey reserves the right to exclude individuals from participating in the travel charge card program.
3. The application for a travel charge card does not imply automatic acceptance by the contracted charge card company. Personal credit rating and/or history of card abuse or indebtedness will affect the applicant's eligibility to receive a travel charge card.
4. If an employee is placed on any long-term leave, her/his account may be suspended by the APC until the employee resumes work.
3.3. Authorized Card Usage
1. The travel charge card may be used only for expenses incidental to authorized official State business travel away from the assigned work place. These expenses include the annual fee, meals, lodging, and transportation. Costs for air and long-haul rail transportation are excluded, although use of the card for local and Northeast Corridor rail transportation is allowable.
2. The card is valid for use only through the expiration date printed on the card. The Cardholder will not attempt to use the card after that date.
3. The travel charge card company will continue to renew, replace, or reissue cards to the Cardholder until the APC requests otherwise or the account is suspended or canceled.
4. No other person is authorized to use the Cardholder's travel charge card except the State employee to whom it was issued.
5. The card will not be used for personal purposes.
6. The travel charge card can not be used for cash advances.
3.4. Automated Teller Machine Usage
Automated Teller Machine (ATM) usage of the travel charge card is not allowed.
3.5. Payment and Reconciliation
1. The State will reimburse the Cardholder only for authorized and allowable expenses. Any charges in excess of the amount reimbursed will be paid to charge card company out of the Cardholder's personal funds. The State of New Jersey accepts no liability for charges made using the charge card.
2. The Cardholder will provide the travel charge card company with a current and valid address for billing purposes. The travel charge card company will send the monthly billing statement to the address provided by the Cardholder on the application. The Cardholder must advise the charge card company of any billing address change.
3. The Cardholder will make payments to the travel charge card company in accordance with the terms and conditions of the Cardholder's agreement. The agreement stipulates that payment is due, in full, upon receipt of the Cardholder's monthly statement of account.
4. The Cardholder is responsible for payment of all charges made with her/his travel charge card to the extent allowed by applicable law.
5. All payments will be made in United States currency either with a draft or check drawn on a United States bank and payable in United States dollars or with a negotiable instrument payable in United States dollars and clearable through the United States banking system.
6. The Cardholder is responsible for maintaining her/his account in a current status.
7. The Cardholder must retain and submit receipts with the travel expense invoice for all charge card transactions.
8. Billing inquiries and disputes should be made by the Cardholder and addressed to the travel charge card company. Disputes must be made in writing.
9. The following procedures will apply to all past due charges:
  1) At 30 days past due, a delinquency notice will appear on the Cardholder's billing statement.
  2) At 60 days past due, the travel charge card company will automatically suspend the Cardholder's spending ability.
  3) At 180 days past due, the travel charge card company will sell the debt to a collection agency.
  4) Non or late payment of billing may affect the cardholder's personal credit rating.
  5) The Cardholder's privilege to use the travel charge card is subject to suspension and/or revocation due to misuse or non-payment.
Card Abuse
4.1. Abuse Determination
Use of the travel charge card for reasons other than authorized official travel and untimely payment of charges incurred is considered abuse of the privilege of having use of such card. The travel charge card company will not hold a Cardholder liable for any unauthorized transaction, which occurs after the Cardholder notifies the travel charge card company of a loss, theft, or possible unauthorized use of the card. The Cardholder will immediately notify the travel charge card company of a loss, theft, or possible unauthorized use of the card by calling the customer service number listed on the billing statement.
4.2. Consequences
Card abuse can result in the suspension of card privileges or cancellation of the travel charge card. Non or late payment of billing may affect the cardholder's credit rating.
4.3. Suspension and Cancellation
1. A Cardholder's account may be suspended for card abuse. Suspension of an account precludes the Cardholder from placing any charges on the card.
2. The travel charge card company or the APC may initiate procedures for an account suspension and/or cancellation.
3. The travel charge card company may notify the Cardholder of the suspension. The APC will detect this action through the review of the monthly reports received from the travel charge card company.
4. The Cardholder can dispute a charge. However, if the account/card dispute is not resolved, the account will then be suspended and may ultimately be canceled.
5. If the suspended account is paid in full prior to 90 calendar days after the billing date, the suspension may be lifted if approved by the APC.
6. The travel charge card company will conduct credit worthiness checks of Cardholders who have been suspended and are requesting reinstatement.
4.4. Reinstatement
Canceled accounts may only be requested for reinstatement with written authorization and approval from the APC. The travel charge card company retains final approval authority for reinstatement. The charge card company may assess a reinstatement fee.
Emergencies
5.1. Retail Purchases
In an emergency situation, the travel charge card can be used to obtain items incidental to traveling, such as baggage or clothing lost while traveling on official State business. However, these emergency purchases are not reimbursable. The traveler should check with the charge card company regarding lost luggage, as the card company may insure the luggage.
5.2. Transportation
The travel charge card can be used to purchase commercial long-haul train or plane tickets in an emergency only. The reimbursement of the emergency purchase is contingent upon the concurrence and approval of the Department/Agency Head prior to submission of any reimbursement claims.
5.3. Card Replacement
1. The Cardholder may request a replacement card directly from the charge card company. A replacement card can be issued for the following reasons:
  1) Lost or stolen cards.
  2) Worn or damaged cards.
  3) Name changes.
  4) Renewal cards.
2. If the account is delinquent or on hold for any reason, a replacement card cannot be issued.
3. If the card is lost, the Cardholder will notify the charge card company and the APC immediately. If the Cardholder is traveling and needs assistance in notifying the travel charge card company, the APC will provide that assistance. Upon notification, the account will be canceled and a new account number and card will be issued within twenty-four hours of notification and overnighted to the traveler's location. If the Cardholder is abroad; the card will be issued within forty-eight hours of notification and overnighted to the traveler's location. If the loss occurs locally, the card will not be overnighted but will be forwarded in the normal manner utilizing the US Postal Service.
  D. For renewals, the travel charge card company will issue a new card to the Cardholder at least fourteen working days prior to the expiration date of the existing card.

______________________________
Alfred T. Woodrow
Deputy Director
Division of Purchase & Property

Appendix A

TRAVEL CHARGE CARD
INSTRUCTION PAMPHLET

When and How to Use It

WHEN: The card is to be used for authorized official State business travel ONLY!

HOW: Use the card for travel expenses such as:

Lodging
Transportation (i.e., local and Northeast Corridor rail service, rental car, and taxi)
Commercial air and long haul rail tickets ONLY in an emergency situation
Meals
Incidentals (e.g., the annual fee, E-ZPass, parking fees)

The above expenses are reimbursable provided they are in support of official State business travel.

OMB's Circular Letter 04-05 defines reimbursable expenses more fully.

The card may also be used to pay for non-reimbursable expenses in emergency situations such as:

Replace clothing or luggage, which has been lost during official State business travel.
Replace a flat tire on a privately-owned vehicle being used for official State business travel.

Permissible non-reimbursable expenses must be paid in the same timely manner as reimbursable expenses.

State of New Jersey policy is to charge reimbursable travel expenses directly to the card whenever possible.

Automated Teller Machine (ATM) usage is not allowed. Use of the travel charge card for cash advances is prohibited.

BENEFITS:

The card is widely accepted.
Eliminates the time-consuming cash advance process.
The Cardholder receives a monthly bill outlining expenses showing where, when, and exactly how much was spent. The travel charge card company will provide copies of signed receipts upon request.
The Cardholder does not have to use her/his own money in conjunction with State business travel.
If the card is lost or stolen, it can be replaced at no cost, whereas lost cash is not replaceable.

CARD TIPS: The Cardholder is responsible for protecting the card and for obtaining and retaining all receipts necessary to substantiate expenses when submitting a travel expense voucher for reimbursement.

CARD CONTROLS:

Calls to "900" numbers are blocked.
The Agency Program Coordinator (APC) is responsible for monitoring travel card usage and is provided monthly reports identifying individual purchases.

ABUSE: Unauthorized purchases and delinquent payments will be considered card abuse. Such abuse may violate the Department's Code of Ethics, and will subject the cardholder to appropriate disciplinary action.

CARDHOLDER ASSISTANCE: The Cardholder may contact the charge card vendor for the following assistance:

General information
Resolving billing inquiries and disputes
Reporting lost or stolen cards
Reporting problems with goods, services, or merchants
Inquiring about payment and account balance
Information about use of the card
Information about accident and baggage insurance

The Cardholder may also request assistance of any kind from her/his APC.

CARDHOLDER RESPONSIBILITIES:

The Cardholder shall:

Follow all the rules listed in this instruction pamphlet, Circular Letter No. 05-10-DPP, and the travel charge card company's terms and conditions.
Pay the bill promptly and submit voucher and supporting documentation promptly to receive reimbursement from the State in time to pay the charge card company. However, if the bill arrives prior to the reimbursement, the Cardholder is still responsible for timely payment of the bill.
Use the card only for official State business travel as addressed on Page 1 of this pamphlet.
Contact the APC of both entities when transferring from one to another Authority, Board, Commission, Department, Division or Office. A Cardholder whose new position may necessitate official travel will be required to contact both APCs to report her/his current travel charge card account status.

CARDHOLDER TURN-IN PROCESS:

If the card is no longer required, or upon leaving State employment, the Cardholder must turn the card in to her/his APC and request cancellation of the account.

CONTRACT TRAVEL CARD COMPANY RESPONSIBILITIES:

Issue the card.
Replace the card if lost, stolen, worn, damaged or nearing its expiration date or if the Cardholder has an official change of name.
Provide 24-hour assistance as needed.

Appendix B

STATE OF NEW JERSEY
CORPORATE TRAVEL CHARGE CARD ACKNOWLEDGMENT

The corporate travel charge card is to be used ONLY for official State business travel-related expenses. The card can be used to pay all reimbursable costs incidental to approved OFFICIAL STATE BUSINESS TRAVEL, including meals, lodging, limited transportation, and other miscellaneous expenses.

Unauthorized use may result in the suspension of card privileges and/or cancellation of the travel charge card. Card abuse may also violate the Department's Code of Ethics, and may be cause for formal disciplinary action. The State of New Jersey accepts no liability for charges incurred through the use of the travel charge card.
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I certify that I am a full time employee of the State of New Jersey, Authority, Board, Commission,
Department, and/or Office of _____________________________________________________.
My signature below indicates that I have read, fully understand, and will abide by the following
documents:

The travel charge card contract vendor's terms and conditions.
Treasury Circular Letter No. 05-10-DPP.
The State of New Jersey Corporate Charge Card Instruction Pamphlet (Appendix A).

I will use the corporate travel charge card only for purchases related to official State of NJ business travel. I will pay in full the monthly billing statement of account upon receipt. I understand that I may be subject to formal disciplinary action for failure to comply with these terms.

Employee's Name: (Print)_______________________________________________________________

Job Title: ____________________________________________Dept/Agency: ____________________

Employee Signature: __________________________________________Date: ____________________

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Department/Agency Authorization Name: (Print)_____________________________________________

Job Title: __________________________________________________________________________

Signature: ___________________________________________________Date: __________________

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Approved by APC for Card _____Yes _____No

Agency Program Coordinator (APC) Signature: _____________________________________________