YOUR PROCUREMENT CARD PROGRAM STATUTORY COMPLIANCE and ...

1. YOUR PROCUREMENT CARD PROGRAM STATUTORY COMPLIANCEandAUDIBILITYMay 2007

3. Woohoo! You finally have a procurement card program in place.

4. Procurement Card Purchasing Card P Card Now how do you make them comply with your purchasing statutes?

5. Its easy to comply when purchasing a vehicle or other big ticket item�you go out for bids. But what about all those numerous small purchases that are made by your procurement card users?

6. A dollar here, a dollar there�. Individual purchases are small, but they add up over the course of a fiscal year. If your agency�s budget for a commodity or service exceeds the bidding threshold, then you usually need to comply with certain purchasing statutes.

7. It might be well for us to remember the tongue-in-cheek remark of the late Senator Everitt Dirksen: "A billion here, a billion there; pretty soon you're talking real money."

8. Except in our case, �$200 here and $300 there, and pretty soon you are talking bid threshold�

9. Lots of small Pcard purchases add up What happens when you reach the bidding threshold?

10. Purchasing Statutes For municipalities, Texas statutes: require that non-exempt purchases $25,000 and over must be competitively bid. allow the use of cooperative purchasing agreements. require that municipalities solicit HUBs when making a purchase of $3,000 or more.

11. To comply with the statutes for municipal purchasing, the City of Missouri City establishes a solicitation threshold of $3,000. All purchases of $3,000 or greater are put out for solicitation of bids or quotes. Goods and services that are likely to be repetitively purchased are put under a term contract.

12. In addition, numerous cooperative purchasing contracts are utilized: BUYBOARD HGAC TBPC GSA US Communities Fort Bend County City of Sugar Land

13. A typical month�s purchasing card statement has many transactions made from numerous vendors.

15. How do those transactions stack up in meeting competitive bid requirements? Lets take a look�.

16. Yellow indicates contract purchases.Green indicates items without contracts.Purple indicates proper contract was not used.

17. Pretty good�but how does a cardholder know where to go to make a purchase?

18. Users need to be informed of the available contracts that should be utilized.

19. CONTRACT INSTRUCTION SHEETS �Contract Instruction Sheets� were developed by the Purchasing Office. Contains the information cardholders need to make contract compliant purchases. They are issued to employees that have pcards.

20. Sample Contract Instruction Sheet CONTRACT INSTRUCTION SHEET Vendor: Gulf Coast Paper Co. Commodity: Paper & Janitorial Supplies Type Contract: BuyBoard Contract #193-07 Eligible Users: Authorized P-Card Holders Purchase Method: P-card or Purchase order Contract Expires: May 31, 2008 All purchases from Gulf Coast Paper Co. must be made in accordance with these instructions. How to Purchase Purchase Order or P-Card Obtain quote � Price list is available with department administrators Contact: Jesse 800-460-0545 Dru Swoboda � Sales Rep - 361-352-4869 (cell) Place order by phone or fax and request invoice. Order using P-card or Pay invoice with p-card upon receipt. If over cardholder�s transaction limit, submit to Purchasing for payment with Purchasing p-card. Orders can be done placed online, by phone, or by fax 800-460-0545 or 979-265-6149 Fax 979-265-7266 Pricing will be per BuyBoard. Delivery time: Order will be processed when received. Deliveries are now being made 3 times a week. Save invoice and use as receipt to turn in with your p-card statement. On all receipts, please write: �BuyBoard� �Contract #193-07�

21. CONTRACT INSTRUCTION SHEET Vendor: DELL Type Contract: DIR Contract #199-07 Eligible Users: IT � All Purchases Purchase Method: P-card or Purchase Order Contract Expires: July 30, 2007 All purchases from Dell must be made in accordance with these instructions. How to Purchase Obtain quote Contact: Alex Moring 800-879-3355 Ext 7242794 alex_moring@dell.com This quote will reference the DIR Contract Number Place order by phone or fax and request invoice. Order using Purchase Order, P-card or Pay invoice with p-card upon receipt. If over cardholder�s transaction limit, submit to Purchasing for payment with Purchasing p-card. When ordering by credit card - Call or Fax your Credit Card number to the Dell Representative. Orders can be done placed by phone, or by fax 800-879-3355 Ext 7242794 Fax 512-283-1046 Pricing will be per DIR quote by Dell. Delivery time: Order will be processed when received. Save invoice and use as receipt to turn in with your p-card statement. Multiple types of items may be purchased from Dell using the same City Contract Number: Toner, Computers, Monitors, Printers On all receipts, please write: �City Contract #199-07� �DIR-SDD-192� Non-contract purchases may be made ONLY in the case of emergency. The Purchasing Office should be informed of any emergency purchase as soon as possible. Emergency purchases are exempt by state law and City policy from these instructions. All receipts for emergency purchases must be clearly marked: �Emergency purchase for (state purpose)� Failure to abide by these instructions shall result in loss of individuals purchasing privileges.

22. CONTRACT INSTRUCTION SHEET Commodity: Electronics and Peripherals Contract #: 200-07 Vendor: Tech Depot Type Contract: US Communities Eligible Users: All Cardholders Purchase Method: P-card or Purchase Order Contract Expires: November 30, 2008 All credit card purchases from Tech DEPOT must be made in accordance with these instructions. How to Purchase Online Go to the following website: www.techdepot.com > Public Sector > State & Local (Choose Texas) > US Communities � Orders can be done placed online, by phone, or by fax or by Purchase Order. Contact person for Tech Depot: April Jones Phone:800-625-9866Ext. 7285 Fax: 888-251-4058 E-mail: ajones@techdepot.com US Communities pricing will be appropriately noted. Delivery time: Depends on where items are shipped from. Shipping will be free of charge. Print a copy of your order or Print quote as received from the rep. Save packing slip, staple to copy of order, and use as receipt to turn in with your p-card statement. On Tech Depot receipts, please write: �Contract 200-07� �US Communities� The Purchasing Office should be informed of any emergency purchase as soon as possible. Emergency purchases are exempt by state law and City policy from these instructions. All receipts for emergency purchases must be clearly marked: �Emergency purchase for (state purpose)� Failure to abide by these instructions shall result in loss of individuals purchasing privileges.Fill out the user information.

23. Contract Instruction Sheets are distributed to employees.

24.  Cardholder follows instructions to make the purchase.

25. Proper documentation is essential to maintain an audit trail. Cardholder notates credit card receipt with contract number. The contract number is the first �crumb on the audit trail�.

26. Receipt with Contract #

27. Contract number on this janitorial supply purchase is 193-07.

28. AUDIBILITY

29. OH MY GAWD! THE AUDITOR IS HERE!

30. Trekking Down the Audit Trail Outside auditor pulls a random sample expenditure from the City�s general ledger.

31.

32. Transaction is searched by date or amount.

33. Key Information The item is located on the transaction register. Key information�.CONTRACT NUMBER. Contract number points us to the contract file.

34. A trip to the file cabinet�

35. Pulling the Pcard receipt

36. Contract Terms Verification

37. A Visit to the Buyboard Website

38. Vendor catalog is listed

39. A catalog listing�

40. Everything in Place

41. Transaction Audit Completed!

42. Charles Oberrender, CPPB Purchasing & Risk Manager City of Missouri City, TX (281) 403-8612 charles@ci.mocity.tx.us