1. May 19, 2010 Statewide Fuel Card Standards & Guidelines An Overview of Statewide Fuel Card Policies Released March 1, 2010 State of Georgia Department of Administrative Services Office of Fleet Management & State Purchasing Division

2. Department of Administrative Services 2 Your Presenter Title: State Cards Program Manager Contact: Paul.Kurtz@doas.ga.gov Phone: 404.656.5344 Paul Kurtz, CPCP

3. Department of Administrative Services 3 Agenda Overview of New Statewide Guidelines Questions

4. Department of Administrative Services 4 Update on New Statewide Standards & Guidelines

5. Department of Administrative Services 5 Statewide Standards & Guidelines Established pursuant to Official Code of Georgia Annotated (O.C.G.A.) Section 45-12-73 (12) (A) and (C) ▪Office of Planning and Budget (OPB) will promulgate rules and regulations governing the use of state vehicles as well as the “system of billings” for service, fuel, maintenance and repair of those vehicles Result of an intergovernmental Services Agreement between Department of Administrative Services (DOAS) and OPB ▪“DOAS will periodically prepare, publish and update policies and procedures regarding use of any credit card used to purchase fuel or pay for repairs” for state vehicles. Not effective unless signed by both DOAS Commissioner and OPB Director Created, published and managed in cooperation with DOAS Office o Fleet Management (OFM)

6. Department of Administrative Services 6 High Level Program Overview Policy jointly managed by OFM and State Purchasing Division (SPD) at DOAS ▪State Cards Program Manager will serve as primary contact ▪Will consult as needed with Director, OFM or other OFM personnel Program management will remain the responsibility of OFM State entities required to use WEX Online™ provided by Wright Express As with P-Card, the terms of the contract allow local entities to use the program ▪Can implement their own policies

7. Department of Administrative Services 7 General Program Notes Gold Cards issued to vehicles not people Only one card issued per vehicle Users are assigned Personal Identification Numbers (PINs) ▪PIN serves as electronic signature ▪Sharing of PINs is prohibited ▪Generic, multi-user PINs are prohibited ▪PINs must be unique; no employee numbers, telephone numbers, etc. ▪DO NOT write PINs on cards ▪Compromised PINs must be cancelled immediately Red Cards issued to agency supervisory or lead personnel for specific uses ▪Transaction logs must be maintained for Red Cards

8. Department of Administrative Services 8 Requirements for Use “ The Wright Express card is the only fuel card authorized for use by employees of any state Entity. As such, state Entities may not provide or subscribe to any other fuel programs or services, systems, or products other than those provided by DOAS Office of Fleet Management (“OFM”). State Purchasing Cards (“P-Cards”) and Travel Cards shall not be used to purchase fuel or repair services for state vehicles unless authorized in advance by the State Cards Program Manager with SPD.”

9. Department of Administrative Services 9 Card Types There are important distinctions made between the “Gold” and “Red” cards ▪Gold Cards intended to fuel primary fuel tanks of passenger-carrying vehicles with odometers, engine meters, etc. ▪Red Cards are intended for use with portable tanks, gas cans, mowers and equipment and the like without odometers or usage meters. Can also be used for emergencies Logs must be kept to track usage

10. Department of Administrative Services 10 Important Notes Accurate Mileage is the Lifeblood of Great Fleet Management! ▪“Cardholders shall make every reasonable effort to enter the accurate vehicle odometer or meter reading at the time the fueling transaction takes place” when using Gold Cards. Use of the Fuel Cards for personal purchases including fuel for non-State owned vehicles is strictly prohibited ▪Such use will result in disciplinary action up to and including termination from State employment and criminal prosecution

11. Department of Administrative Services 11 Statewide Purchasing Card Policy

12. Department of Administrative Services 12 Statewide Program Administration DOAS maintains the Standards & Guidelines SPD & OFM personnel are resources regarding policy and implementation Official Standards & Guidelines are posted on the State Cards Program website http://doas.ga.gov/StateLocal/SPD/Services/Pages/SpdCards.aspx

13. Department of Administrative Services 13 State Cards Program Manager Duties and responsibilities: ▪Develop the State Fuel Card Standards & Guidelines in cooperation with OFM ▪Review Policy at least annually ▪Communicate policy changes to program users (with OFM) ▪Serve as the central point of contact on all issues of policy and procedures ▪Review all requests for exceptions to the Policy ▪Work with program users to determine new ways to use the Fuel Card within legal and policy requirements ▪Develop & maintain statewide training materials and manuals

14. Department of Administrative Services 14 Director, Office of Fleet Management Duties and responsibilities: ▪Can delegate the authority to issue fuel cards based on requests from and the resources & skills of the agency involved ▪Oversees administration of the program ▪Partners with State Cards Program Manager to review policy ▪Official liaison between the Bank and all program users

15. Department of Administrative Services 15 DOAS Process Improvement & Audits Duties and responsibilities: ▪Conduct periodic reviews of the programs at entities under the authority of SPD purchasing ▪Issue reports providing an assessment of the program making recommendations for improvement when warranted ▪Require policy improvements and/or place other restrictions on card programs in cases where it is determined that internal controls are not adequate

16. Department of Administrative Services 16 DOAS Office of Fleet Management Duties and responsibilities: ▪Provides reporting to program participants ▪Manages card issuance ▪Participates in policy revisions and development ▪Serves as central point of contact for program management (non-policy) issues ▪All other aspects of fuel card program management remain unchanged

17. Department of Administrative Services 17 State Entity Roles & Responsibilities

18. Department of Administrative Services 18 Card Program Administration Agency Fleet Coordinator ▪Serves as official liaison between entity, State Cards Program Manager and OFM ▪May serve as Fuel Card Program Administrator (can also delegate some or all responsibilities Card Program Administrator ▪Program Administration ▪Program Compliance ▪Set individual vehicle profiles (based on OFM standards) ▪Define criteria for for obtaining a Fuel Card ▪Create and distribute entity policies (not less restrictive than State Standards & Guidelines) and review annually ▪Establish procedures, monitor use ▪Manage account requirements ▪Create Fuel Card inventory system ▪Register with DOAS as Card program Admin ▪Designate other roles ▪Develop written procedures for requesting cards and approving users fir PINs

19. Department of Administrative Services 19 Card Program Administration (continued) Supervisors/Approving Officials ▪Maintain knowledge of State Fuel Card Standards & Guidelines as well as internal policies and procedures ▪Request PINs for users under their supervision ▪Notify Program Administrator when a cardholder resigns, is terminated or reassigned ▪Monitor transactions and card activity ▪Review all documentation

20. Department of Administrative Services 20 Card Program Administration (continued) Cardholder ▪Maintain security of card and all related information including PINs ▪Maintain knowledge of State Fuel Card Standards & Guidelines ▪Ensure all purchases are allowable under State and internal policies ▪Obtain “best value” for State ▪Maintain all required documentation ▪Maintain logs as necessary for Red Cards ▪Ensure timely payment through complying with all requirements as required

21. Department of Administrative Services 21 Internal Controls Each entity must have their own policy that ensures compliance with State laws, rules and policies Internal policies may be stricter, but can not be less strict than State policy Internal controls must include: ▪Separation of duties ▪Weekly independent review ▪Appropriate hierarchical review and approval of purchases ▪Prevention of self-approval ▪Appropriate limits on the number of card users under one supervisor ▪Provision for an annual independent audit

22. Department of Administrative Services 22 About the Fuel Card

23. Department of Administrative Services 23 Use of the Fuel Card General Policies ▪Purchases must be for official State business only ▪Users must use only their PINs – sharing of PINs is strictly prohibited ▪Use of the card for personal purchases is strictly prohibited ▪Fuel only (with minor exceptions) and no other payment method for fuel (i.e. P-Cards) ▪Ensure use of Wright express network vendors ▪Follow procedures at fueling station for proper use of card (mileage, etc.) ▪Restricted for use to purchase 87 octane fuel unless high octane specifically required by manufacturer

24. Department of Administrative Services 24 Allowed Purchases Except as provided in subsection F of the S&G’s, the fuel card shall only be used to purchase: 1.Fuel for use in State-owned vehicles and equipment used for official State business; and 2.In some cases where approved in advance and in the State’s best interest, fluids, car washes and minor miscellaneous items for state vehicles (i.e. incidental non repair/maintenance items only) whose value, taken together, shall not exceed $50 per month. All other non-fuel purchases or incidental purchases totaling more than $50 per month must be approved in advance by OFM/SPD using the Fuel Card Special Approval Request (form SPD-FC001).

25. Department of Administrative Services 25 Prohibited Purchases x Personal purchases of any kind x Cash advances x Gift Cards x Alcoholic beverages x Tobacco products x Food, ice, beverages or related items including “snacks” while traveling on official business x Other purchases not specifically allowed under section V. A. of the S&G’s

26. Department of Administrative Services 26 Emergency Purchases In emergencies, Program Administrators are allowed to obtain after-the-fact approval “Emergencies” defined as: ▪Cases involving welfare of the general public ▪Extreme weather conditions ▪Official declared emergencies Program Administrators must submit Form SPD-PC003, Special Approval Request within 72 hours Must follow guidelines for emergency purchases in Georgia Procurement Manual ▪Include Form SPD-NI005, Emergency Justification Form available on SPD website Can include non-standard use of the Red Cards to fuel vehicles

27. Department of Administrative Services 27 Program Compliance Managers/Supervisors must review a record and/or report of all fuel card transactions to ensure drivers are in compliance with current published policies Entities will ensure that authorization controls are established for their fuel account with the state fuel card Internal audit procedures will be utilized to review all fuel bills for possible fraud Entities will report all incidents of fraud involving the fuel card to OFM and State Cards Program Manager Employees or Entities that fail to comply with these Guidelines shall be subject to one or more sanctions in section VI

28. Department of Administrative Services 28 Program Specific Safeguards Please see the Standards & Guidelines for program specific safeguards to include: ▪Authorization Controls ▪Purchase Alerts ▪Other internal control requirements ▪PIN issuance requirements OFM can assist as needed

29. Department of Administrative Services 29 Questions?

30. Department of Administrative Services 30 Thank you!