1. State of New Mexico Procurement Card (P-Card) Program Procurement Card Training February 27, 2013 Procurement Card Training February 27, 2013

2. State Agencies Using or Interested in the P-Card Program State Agencies Using or Interested in the P-Card Program n Currently there are 28 State Agencies that are on the P-Card program n There are 4 Additional State Agencies that are Interested in Utilizing the P-Card program

3. n A.K.A P-Card or Purchasing Card n The State of New Mexico’s Charge Card –For Goods –For Services –For Emergencies –For State Agency Frequent Individual Travelers n Alternate Method of Payment to the Procurement Code Process n Bank of America – VISA Product What is a Procurement Card?

4. n Streamline Payment Process n Eliminate Direct Purchase Orders n Reduce Purchase Documents n Reduces Payment Vouchers n Future Electronic Submission of Payment to the Bank of America n Elimination of Non-Taxable Transaction Certificates (NTTCs) for Goods Only n To Incorporate as Many State Agencies as Possible Goals of the Program

5. P-Card Benefits n Quicker Payment to Vendors n Reduces Preparation of Individual Purchase Orders and Payment Vouchers n Procurement Items are Received Immediately n Rebates for the State of New Mexico n 1099 Reporting Form for P-Card is no Longer Required

6. 1099 Reporting Form

7. n Department of Finance and Administration (DFA) - Financial Control Division (FCD) Statewide Procurement Card Policies and Procedures n State Agency Internal Policies and Procedures n Procurement Code and State Statutes n State Agency Agreements n State Agency Cardholder Agreements General Policies General Policies

8. n Exemption from Attaching Supporting Documentation (i.e. Invoices and Receipts) n Exemption from Encumbrance Requirements – P-Card Only n Purchases Over $1,500 Must Comply with Procurement Code – State Contract/Price Agreements Policy Exemptions Policy Exemptions

9. Eligible Purchases n May Be Used for Purchases Equal to or Under $1,500 and n Goods and Services Included in Price Agreements Approved by the State Purchasing Division of the General Services Department (GSD) - Over $1,500 n Travel for State Employees Conducting Frequent Official State Business

10. Limitations/Restrictions n Vendors Must Accept Visa n Pursuant to Approved MCCs “Procurement Card Listing for Restricted Items” n No Personal Charges n No Cash Advances/Instruments Allowed n No Cardholder Sharing n P-Card Does Not Work at State Agencies (For Example: State Printing)

11. Card Misuse n Cardholder is Responsible/Liable for Card and it’s Use n Seek Full Restitution Plus Interest n Disciplinary Action, Up to and Including Termination of P-Card Program n DFA/FCD Prerogative to Revoke Card(s)

12. How Do I Use It? n Creation of a Internal Purchase Requisition (IPR) for Approval Before Purchase n Same as a Regular Credit Card n Catalog Orders n Internet Orders Does not Circumvent the Procurement Process

13. Internal Purchase Requisition Log

14. Payment of Charges n Consolidated Billing Statement Sent to the Agency n Single Fund Payment to Bank of America (BofA) n Payment Voucher for BofA Must be submitted to FCD within 15 days of BofA Statement Issued Date n NO LATE PAYMENTS

15. Prior to Making Payment to Bank of America n State Agency P-Card Administrator or a Designated State Agency Cardholder will Need to Reconcile to Receipts of all Charges Listed on the Monthly Billing Statement Prior to Sending a Payment Voucher to DFA/FCD for Processing a Payment to the Bank of America

16. Supporting Documentation Required to Make Payment for the P-Card n Payment Voucher Batch Report n On the Invoice Information Tab of the Payment Voucher, Card Number and \ Must be Entered n Monthly Billing Statement n Signed Affidavit for Receipts

17. Budget/Credit Monitoring n State Agencies Must Develop Internal Policies and Procedures on How the P-Card Will be Used n Budget Must Be Available Prior to Purchase n State Agencies Must Follow FCD’s Year-End Closing Instructions Related to the P-Card n WORKS Software is Available to Monitor Credit Limit and Purchase Activity

18. Travel General Polices n Agency Travel Policies and Procedures n Authorization from FCD and State Agency Program Administrator to use P-Card for Travel n Must Abide to the Per Diem and Mileage Act and DFA Rule 95-1 Regulations Governing the Per Diem and Mileage Act

19. Individual Travel P-Card n P-Card Issued Solely for State Employees that Conduct Frequent Travel for Official State Business n Limited to: Lodging, Renting Vehicles, Purchasing Airline or Common Carrier Fare, Baggage Fees, Meals and Gasoline for the Rental Car

20. Post Audit on P-Card n Financial Control Division Auditor will Conduct Post-Audit n Post Audits Conducted Monthly –However, FCD May at any Time Perform an Internal Audit of an State Agency that Utilizes the P-Card n Post Audit Guidelines n Post Audit Form

21. Why is a Post Audit Needed? n Verify Compliance with –DFA/FCD Policy and Procedures –New Mexico Procurement Code –New Mexico State Statutes n Monitor –Transaction Types –Amount of Transactions –Proper Allocation of Transaction Types

22. What Happens if there are Findings on a Post-Audit? n FCD Auditor Will Notify the State Agency’s Chief Financial Officer (CFO) –Memo –Copy of the Check List Form –Copies of All Documentation in Need of Correction

23. Keep in Mind and Consequences n FCD Reports to the Governor’s Office on the Status of the P-Card Program n Failure to Comply with any of the P-Card Policies and Procedures will Result in a Revoked P-Card Program for the State Agency

24. How to Get Started? How to Get Started? n State Agency Must Establish Internal Policy and Procedures n State Agency’s Management Approval n Assess Current Purchasing and Payment Practices n Decide on Cardholders n Identify Spending Limit

25. Things to Remember n Read and Understand Your Policies and Procedures n Be Aware of Restricted and Allowable Purchases n Retain all Your Receipts n Keep Transaction Logs Up-to-Date n Review and Reconcile Your Monthly Statements Timely for Payment Voucher Submission to FCD n No Cardholder Sharing n No Longer Required to Submit the 1099 Reporting Form for P-Card

26. n Questions?

27. Useful Websites n Financial Control Division – –http://www.nmdfa.state.nm.us/Financial_Control.a spxhttp://www.nmdfa.state.nm.us/Financial_Control.a spx n State Purchasing Division – –http://www.generalservices.state.nm.us/statepurcha sing/http://www.generalservices.state.nm.us/statepurcha sing/ n New Mexico Administrative Code –/ –http://www.nmcpr.state.nm.us/nmac//http://www.nmcpr.state.nm.us/nmac/