ORIGINATING NO.: 04-10-OMB/DPP

AGENCY: OFFICE OF MANAGEMENT AND BUDGET
DIVISION OF PURCHASE AND PROPERTY

EFFECTIVE DATE: 2/23/04

EXPIRATION DATE: INDEFINITE

SUPERSEDES: 02-10-OMB/DPP

SUBJECT: STATE OF NEW JERSEY PURCHASING CARD PROGRAM

ATTENTION: DIRECTORS OF ADMINISTRATION/CHIEF FISCAL OFFICERS/AGENCY PURCHASING CARD ADMINISTRATORS

FOR INFORMATION CONTACT: DIANE F. LINKER, STATE PURCHASING CARD
PROGRAM ADMINISTRATOR

PHONE: (609) 984-7049

I. PURPOSE

The State of New Jersey's Purchasing Card Program ("Program") is established to provide governmental agencies a convenient method to purchase goods and services. The purpose of this Circular Letter is to prescribe policies in the use of the Citibank purchasing card by State government employees. Participation in the Program is at the discretion of an agency.

II. GENERAL

The Department of the Treasury is responsible for administering the Purchasing Card Program, including establishment of State Program policies and procedures, and the appointment of a State Purchasing Card Program Administrator ("State Program Administrator").

State statutes and regulations for procurement and accounting, including those outlined in Circular Letters, are in effect for all purchases made with a purchasing card.

Participating agencies will be subject to periodic audit review by the Office of Legislative Services, and the Department of the Treasury's Division of Purchase and Property, Contract Compliance and Administration Unit, and the Office of Management and Budget.

Unauthorized use of the purchasing card may result in revocation of card privileges, and/or disciplinary action, with the State reserving the right to demand employee reimbursement for such purchases.

III. POLICIES

1. State agencies that wish to participate in the Program must contact the State Program Administrator.
   
   

   Participating agencies must identify and name an Agency Purchasing Card Program Administrator ("Agency Program Administrator")
   
   Failure to adhere to the guidelines of this Circular Letter including, but not limited to, statutes governing purchasing, may result in the revocation of an individual or an agency's purchasing card privileges

2. Only the employee whose name appears on the face of the purchasing card may use the card.

3. All purchases made with the purchasing card must be entered into the Management Acquisition Control System - Enhanced ("MACSE"), and reconciled to the Monthly Purchasing Card Transaction Log (Appendix B), or its equivalent, and to the billing statement on which it appears.

4. Purchasing cards are to be used for official State business only, as follows:

   State contract purchases up to $50,000 per transaction

   Approved waiver purchases up to $50,000 per transaction

   Direct Purchase Authority ("DPA") purchases up to $25,000 per transaction

   Transactions are not to be split to circumvent the bidding statutes or Program policies

   Purchasing cards may not be used for personal use, cash advances (ATM withdrawals), fuel for vehicles (not even State vehicles), or travel and entertainment

5. The State's Program Administrator must approve all Merchant Category Codes and Merchant Category Code Group templates.

IV. RESPONSIBILITIES

The State's Program Administrator is responsible for the overall administration of the Program, which includes:

1. Establishing and publishing Program policies;
   
   
2. Acting as Program point of contact for Citibank;
   
   
3. Approving agency Program participation;
   
   
4. Providing assistance and training for Program participants;
   
   
5. Approving agency Merchant Category Code Group ("MCCG") templates and template changes;
   
   
6. Monitoring agency Program compliance; and,
   
   
7. Reporting inappropriate card activities to the appropriate parties.

The Agency Program Administrator is the person responsible for the overall administration of an agency's Program, which includes:

1. Ensuring establishment of written internal policies and procedures consistent with the Purchasing Card Circular Letter;
   
   
2. Ensuring that cardholders and other applicable participants understand Program and procurement policies and guidelines by providing to them the relevant Circular Letters, answering questions, providing training if necessary, and disseminating updates;
   
   
3. Developing an appropriate MCCG master template, and if warranted, individualized cardholder MCCGs templates;
   
   
4. Acting as point of contact with the State Program Administrator and Citibank;
   
   
5. Enrolling Program participants, including the establishment of participant profiles;
   
   
6. Completing Program forms and maintaining Program files to include, but not limited to, applications for Agency/Organization Program Coordinator Setup* ("A/OPC"), Approving Official Setup* ("A/O"), Purchase Card Setup*, Cardholder Agreements (Appendix A), and the (Cardholder) Purchase Card Maintenance Form*;
   
   

   * Obtain from the Citibank website or the State Program Administrator

7. Receiving and distributing purchasing cards after verifying accuracy of card data to Program files;.
   
   
8. Monitoring cardholder use to:
   
   

   Evaluate necessity of card;
   
   Evaluate transaction activities and adjust limits accordingly; and,
   
   Evaluate transaction activities for appropriate use and informing the State Program Administrator of inappropriate card activities

9. Ensuring that where applicable, participants have the appropriate MACSE profiles and MACSE training, as well as the appropriate training to utilize the Citibank website and reporting features;
   
   

   Contact the State Program Administrator to arrange MACSE and/or Citibank training

10. Ensuring monthly reconciliation in MACSE of all cardholder accounts, and that reconciliation information remains on file in accordance with The State of New Jersey's General Records Retention Schedule;
    
    
11. Ensuring payment to Citibank is timely to ensure rebate-eligibility of payment;
    
    
12. Promptly notifying Citibank of Program participant changes and cancellations, (destroy cancelled cards of cardholders) including credit limit reductions for those users absent from the office for more than 10 working days; and,
    
    
13. Notifying, in writing, of card cancellations to affected vendors from whom recurring transactions have been authorized.

The cardholder, an employee whom an agency has entrusted to make purchases with a credit card in its behalf, is responsible for:

1. Understanding Program and procurement policies and guidelines;
   
   
2. Ensuring that all purchasing card purchases are entered into MACSE;
   
   
3. Notifying vendors of tax-exempt status of purchases;
   
   
4. Maintaining a Monthly Purchasing Card Transaction Log, or its equivalent, including card receipts and supporting documentation for all purchases;
   
   

   If card receipt is lost, or not available, a written explanation is to be attached to the Monthly Purchasing Card Transaction Log

5. Ensuring the cur rent reconciliation of all transactions to monthly billing statements and to MACSE;
   
   
6. Reporting disputed charges to Citibank and appropriate agency personnel within 60 days from the date of the cardholder statement via the Purchasing Card Dispute form*;
   
   

   Questioning the disputed charge with the merchant is the first step. If the charge has not been corrected by the next billing statement, or if the merchant is not agreeable to reversing the disputed charge, next contact Citibank

   * Obtain from the Citibank website

7. Reporting fraudulent charges immediately to Citibank and appropriate agency personnel via telephone and in writing;
   
   

   Fraudulent charges are those appearing on a cardholder's statements that have not been authorized by the cardholder. Vendors from whom recurring transactions have been authorized must be notified via telephone and in writing by the cardholder, as Citibank will cancel the card upon receipt of a fraud report
   

8. Providing the Monthly Purchasing Card Transaction Log (or equivalent), supporting documentation, purchasing card receipts, monthly statement and certification of the month's transactions to agency designated payer to ensure timely payment to Citibank;
   
   

   Reconciliation information must remain on file in accordance with The State of New Jersey's General Records Retention Schedule
   

9. Reporting lost or stolen card within 24 hours after loss is realized to Citibank, and by the next business day to Agency Program Administrator and to vendors from whom recurring transactions have been authorized;
   
   
10. Notifying Agency Program Administrator of absence from the office, planned or otherwise, for more than 10 working days; and,
    
    
11. Relinquishing the purchasing card to the Agency Program Administrator and reconciling transactions prior to:
    

    A change of job duties whereby the use of a purchasing card is not part of the new duties; or,

    Separation from an agency

_______________________________ Charlene M. Holzbaur, Director Office of Management and Budget

_______________________________ John V. Naiman, Acting Director Division of Purchase and Property

APPENDIX A

STATE OF NEW JERSEY
CITIBANK PURCHASING CARD PROGRAM
CARDHOLDER AGREEMENT

The _______________________________ authorizes (Agency Name)

__________________________________ (Employee Name)

to make official State purchases on the agency's behalf using the Citibank Purchasing Card. As a cardholder, I agree to:

• Comply with procurement and Purchasing Card Program policies and procedures;
  
• Accept the responsibilities outlined in the Purchasing Card Program Circular Letter;
  
• Ensure the security and safekeeping of the purchasing card.

In accepting the State of New Jersey purchasing card issued in my name, I agree to the terms and limitations placed on the use of the card. I understand that I will be personally responsible for any unauthorized purchases that I make with the card, and that the State of New Jersey can take the necessary steps to recover payment from me for such purchases.

_______________________________________ (Employee Signature)	_________________________ (Date)
_______________________________________ (Supervisor Signature)	_________________________ (Date)
_______________________________________ (Agency Program Administrator Signature)	_________________________ (Date)

APPENDIX B

STATE OF NEW JERSEY
CITIBANK PURCHASING CARD PROGRAM
PURCHASING CARD TRANSACTION LOG

MONTH/YEAR_________________

DATE ORDERED	ITEM DESCRIPTION	COST	PFST ORDER #	MONTH RECONCILED	COMMENTS

Cardholder Signature/Date_____________________________ Card Number___________________

Approving Official Signature/Date____________________________