COUNTY OF SONOMA CAL-Card USER MANUAL DEPARTMENT OF GENERAL SERVICES PURCHASING DIVISION May 2012
TABLE OF CONTENTS SECTION PAGE NO. 1. General Information 1 2. Definitions 3 3. Authorized, Restricted and Prohibited Uses 5 4. Procedures Card Holder 7 5. Procedures Approving Official 11 6. Procedures Billing Officials 12 7. Procedures for Obtaining a CAL-Card 13 8. Procedures for Replacing or Canceling CAL-Cards 14 9. Legal References and Authority 15 10 Information Sources 15 11. Audits of CAL-Card Records & Procedures 16 ii
ATTACHMENTS A. MONTHLY CAL-CARD PURCHASE REPORT B. CARD HOLDER AGREEMENT FORM ACKNOWLEDGEMENT AND RESPONSIBILITY C. NOTICE OF ADJUSTMENT D. DEPARTMENT CAL-CARD REQUEST FORM iii
CAL-CARD USERS MANUAL 1. GENERAL INFORMATION 1-1 BACKGROUND The CAL-Card (procurement/purchasing card) is a VISA charge card with enhanced controls and data reporting, which enables the County to streamline the traditional paper and labor-intensive procurement process. The CAL-Card allows County departments, Board of Supervisors, agencies and offices to quickly obtain low dollar value purchases directly without the necessity of preparing individual purchase requisitions and processing individual receiving reports for each transaction. It should not be used to bypass County policies and procedures related to the purchasing of items. The CAL-Card can be used as the first option before other existing methods to obtain supplies costing less than $2,500 per transaction, including taxes. If the use of the CAL-Card is not practicable, then a standard online electronic requisition to the Purchasing Division should be used. All Card Holders are required to attend a mandatory training before receiving their card. New approvers and billing officials are encouraged to attend a Cal Card training. 1-2 PROGRAM ADMINISTRATION 1-2.1 Purchasing Agent The Purchasing Agent is the County Program Administrator and is responsible for overall coordination of the program, assisting department heads to establish the CAL-Card program in their department, obtaining and issuing cards, training, program evaluation and reporting. 1-2.2 Auditor-Controller The Auditor-Controller s Office is responsible for payment of Official Invoices for all CAL-Card transactions processed in the previous billing cycle. The Auditor shall ensure that all Statements of Questioned Item and Notice of Invoice Adjustment are complete and submitted as required. 1
The Auditor will be jointly responsible with the Purchasing Agent for analyzing CAL-Card use and program evaluation. 1-2.3 Department Billing Officials Department Billing Officials will coordinate all CAL-Card activity with the Purchasing Agent or designee to process new card applications, request replacement cards, set or change transaction limits, block merchant codes and card cancellations. Billing Officials are required to reconcile monthly Master Billing Statements, and to pay the full statemented amount using the Master Billing statement as the invoice. 1-3 CONTROLS 1-3.1 Certification & Approval A number of unique controls have been developed for the CAL-Card Program that may not exist in a traditional credit card environment. These controls ensure that the card can be used only for specific broad categories of purchases and within specific dollar limits. In addition, certification of all purchases is required by each Card Holder, with additional verification performed by the designated Approving Official for each Card Holder before payment is made. 1-3.2 Card Holder Use Only The unique VISA card that Card Holders receive from U.S. Bank has an official County seal or logo and the Card Holder s name embossed on the card. No one but the Card Holder may use this card. It has been specially designed to avoid confusing it with personal credit cards. In all other respects, this is considered a regular Visa card. However, the CAL-Card must not be used for personal purchases 1-3.3 Transaction Limits Department heads determine the maximum dollar amount for each single purchase (up to $2,500) and a total dollar amount for all purchases made within a 30-day cycle for each Card Holder in their department. If the amount of the purchase is over the card s limits, the purchase will be declined. 1-3.4 Authorization Process 2
2 DEFINITIONS In most cases, the merchant checks via a telecommunications system each time that the card is used. This authorization ensures that the purchase is within the single purchase dollar limits and monthly limit. The authorization also verifies that the merchant is of the type permitted under the program set up. 1-3.5 Official Use Only Intentional use of the CAL-Card for other than Official Use Only will be considered an attempt to commit fraud against the County. Proof of such fraud will result in immediate cancellation of the Card Holder s account, and disciplinary action under applicable departmental, agency and County administrative procedure will be taken, up to and or including termination. The Card Holder will be personally liable to the County for the amount of any non-approved purchases and could face criminal charges as well. 2-1 CARD HOLDER Department Heads can designate any permanent County employee as a card holder for the necessary operation of their department. Card holders are responsible for: Security of the CAL-Card Appropriate use of the CAL-Card Asking for and saving detailed receipts for payment documentation Compliance with CAL-Card User Manual and County Policies & Procedures Preparation of the monthly CAL-Card Purchase Report (Attachment A) Documenting expenditure transactions Filing Disputes Reconciling monthly Card Holder statement promptly 2-2 APPROVING OFFICIAL The Approving Official shall be at a level above the Card Holder and is responsible for: Reviewing and approving assigned Card Holder charges 3
Ensuring all purchases are appropriate and within County guidelines Ensuring no prohibited items have been purchased Ensuring claims payment documentation is attached 2-3 BILLING OFFICIALS The Billing Official is responsible for: Receiving the Corporate Summary Bill (Managing Account) On time payments to US Banks (within 45 days) using the Corporate Summary Bill as the invoice Reconciling outstanding balances Reviewing Card Holder Charges for appropriateness Promptly notifying the County Program Administrator (Purchasing Agent or designee) of any changes in Card Holder status Notifying County Program Administrator of changes in Approvers and Billing Officials 2-4 COUNTY PROGRAM ADMINISTRATOR The County Program Administrator (Purchasing Agent and/or designee) is responsible for: Oversight of all Card Holders Setting up new accounts, maintaining existing ones, and terminating accounts Monitoring past due payments, working with Billing Officials to clear unpaid amounts Developing and maintaining Policy and Procedures Providing training for Card Holders, Approvers, and Billing Officials Working with Auditor s Office to audit purchases. 2-5 Restricted, Prohibited and Unauthorized Purchases 2-5.1 Restricted 4
If the goods are restricted, the CAL-Card may still be used if established approvals and criteria are met. See 3-2 below. 2-5.2 Prohibited If the goods or services are prohibited, the use of the CAL-Card is unauthorized and should not be used to purchase such goods or services. See 3-3 below. 2-5.3 Unauthorized Unauthorized purchases that are those that have not authorized or approved by the Department Head or Approving Official. See 3-4 below. 3 AUTHORIZED, RESTRICTED AND PROHIBITED USES 3-1 ROUTINE PURCHASES Purchase of maintenance, repair and operational supplies costing less than a maximum of $2,500 per transaction or the Card Holder s assigned transaction limit, including tax, are authorized. Individual CAL-Card will have customized limits for (1) maximum dollar limit for each purchase transaction; and (2) maximum dollar limits per 30- day cycle. 3-2 RESTRICTED PURCHASES Restrictive purchases include those purchases that may be subject to approval by another department. Questions regarding restrictions should first be directed to the Approving Official, then the Purchasing Division, telephone 565-2433. Examples of restricted purchases follow: 3-2.1 Computer Hardware and Software The purchase of computers, computer upgrade components and software are restricted commodities and can only be purchased by use of the CAL-Card upon advance approval of the Information Systems Director, his designee, or other authorized department or agency management. 3-2.2 Fuel Purchases 5
The CAL Card may not be used to purchase gasoline for County owned vehicles or equipment. When traveling on County business in a County owned vehicle, County commercial gas credit cards can be signed out from Fleet Operations for short term use. The County Commercial Credit Card policy restricts the use of County gas credit cards to outside the County. Exceptions can be authorized by the Fleet Manager. The CAL Card may be used to purchase fuel for rental cars while the Card Holder is out of county on County business. Use of a County commercial gas credit card to fuel a rental vehicle is prohibited. 3-2 PROHIBITED USE OF THE CAL-CARD The CAL-Card Program prohibits the use of CAL card for the following items. These include: Alcohol Building maintenance services Cash advances DERP Expenditures Employment of independent contractors Food not covered under the County s Travel and Meal Reimbursement Policy 3-2 Modular office furnishings Personal Expenses Political or religious organizations Professional services requiring a contract Purchase of telephones or telephone services Rental or lease of land or buildings Securities, insurance Splitting of purchases to circumvent transaction limits Window, wall and floor coverings Work performed on County owned or leased property Authorizing Department Heads and Approving Officials should be aware of the need to control the purchase of sensitive items and the need to properly account for items on departmental asset records. This requirement is no different from any expenditure of County funds, whether by purchase order, petty cash, direct claim, CAL-Card, or other method of expenditure. 6
4 PROCEDURES CARD HOLDER 4-1 RESPONSIBILITY The Card Holder is responsible for ensuring that all purchases are in compliance with CAL-Card and all other County Policies and Procedures. 4-2 OBTAINING GOODS The Card Holder can use the procurement card to purchase goods in person at a merchant point of sale, by telephone, mail order, fax, or the Internet. In any case, the Card Holder should require the vendor to itemize the receipt/invoice for each item purchased. At a point of sale, as the sales draft is being completed, the merchant will normally obtain authorization for the transaction via a telephone call or direct telecommunication link to the VISA authorization network. The merchant will obtain an authorization number, which will also be shown on the sales draft. Purchase Authorization Number Price per item Amount of sales tax and total amount Description of commodities purchased Quantity purchased Shipping charges, if applicable 4-3 MONTHLY CAL-CARD PURCHASE REPORT Upon completing the CAL-Card transaction, whether by telephone, in person, mail order, Internet or other, the Card Holder must record the transaction on the Monthly CAL-Card Purchase Report (Attachment A) including the following information: Date of purchase Receipt/invoice number Description of purchase Vendor s name Expenditure amount 4-4 CAL-CARD RECEIPT When the purchasing transaction is made in person or by telephone, the Card Holder should require the vendor to itemize the receipt. If the receipt or invoice is not itemized, the Card Holder must write in the items purchased. Card Holder should keep photocopies of mail order transactions and screen prints of Internet transactions. The Card 7
Holder must keep all receipts or records of transactions and record such receipts or records on the Monthly CAL-Card Purchase Report. CAL-Card receipts shall be kept until the transaction shows up on the bank statement. CAL-Card receipts shall be reconciled and attached with the Bank statement to the Monthly CAL-Card Report. If the receipt is lost, the Card Holder must submit a missing receipt form outlining the date of purchase, description, and vendor name and expenditure amount. (Note: Excessive instances of lost receipts, i.e., three times per year, will result in the CAL-Card being revoked). 4-5 BANK STATEMENTS At the close of each monthly billing cycle, each Card Holder will receive an individual bank statement. The Card Holder reviews the bank statement for accuracy and reconciles the statement with the Monthly Cal-Card Purchase Report, receipts and transaction records. Within five (5) working days from receipt of the bank statement, the Card Holder will approve, sign and date the bank statement and the Monthly CAL-Card Purchase Report and forward to the Approving Official. Card Holders may access their account online to view and print a copy of their statement after the end of the monthly billing cycle (22 nd of each month). The Approving Official will review the Monthly Cal-Card Purchase Report, receipts and transaction records for appropriateness of charges and complete documentation. The Approving Official will sign the Monthly Cal-Card Purchase report and forward the packet to the Billing Official. 4-5.1 Disputes If an item is to be disputed, the Card Holder must contact CAL Card within 15 days of after the date of the statement. The easiest most preferred method is for the Card Holder to use the online feature to dispute the transaction. In some cases, the Card Holder will be prompted to print the online form, sign it and fax it to U.S. Bank. The Card Holder must attach a copy of the print screen or the printed online form with the monthly bank statement. 8
Alternatively the Card Holder can call customer services. If the Card Holder chooses to call customer services to report a dispute, a form will be sent to the Card Holder for their signature. This form must be signed and returned within 60 days or the County will be responsible for the amount. 4-5.2 Documentation The Card Holder must attach documentation to the Monthly CAL Card Purchase Report for each disputed item and attach supporting documents, if necessary and applicable. Supporting documentation may include copies of postal receipts for returned merchandise, credit vouchers, or the front and back of a canceled check for proof of payment by another means. The most common disputes are described below: 4-5.3 Unauthorized Mail/Telephone/Internet Order This reason should be used for unauthorized telephone, mail order or Internet transactions. If a sales slip is signed or imprinted with the Card Holder s card, this reason does not apply. 4-5.4 Duplicate Processing This reason is used when a transaction has been billed more than once to an account. The amounts must be the same. The Card Holder must provide the transaction details of the original billing, such as dollar amounts, a transaction date, etc. A copy of the monthly bank statement on which the billings occur and a copy of the original sales receipt should also be forwarded to the bank. 4-5.5 Merchandise Not Received This reason is used when the goods were not received or were paid by other means. The Card Holder should attempt to resolve the dispute with the vendor. The Card Holder should detail this attempt and provide the date of expected delivery of service or merchandise. If the goods or services were paid by another means, a copy of the payment document (front and back of a check, warrant, personal credit card receipt, etc.) must be provided. In the event merchandise was cancelled, full details should be provided, such as why the transaction was cancelled and date of cancellation. 9
4-5.6 Merchandise Returned In the event merchandise was returned and a credit has not yet been posted, the Card Holder should describe the reason for returning the merchandise and the date the item was returned. A copy of the reference number of the monthly statement, postal, UPS, or other official receipt proving the merchandise was returned should be forwarded. 4-5.7 Credit Not Received This reason may be used when the Card Holder has received a credit voucher or written refund acknowledgment from the vendor, but the credit has not been posted to the Card Holder s account within 30 days from the date on the voucher or acknowledgment. The Card Holder acknowledges participation in the transaction, but the goods were returned or the service was cancelled. The Card Holder should state the amount of credit they are expecting and provide a copy of the credit voucher or acknowledgment letter with the billing paperwork. 4-5.8 Alteration of Amount This reason is used when the Card Holder participated in the transaction and the amount was altered without permission. The Card Holder must acknowledge the amount before alteration and a copy of the Card Holder s copy of the sales draft must be provided to support this reason. The amount of the credit would be the difference between the amount before alteration and after alteration. The sales draft copy should be forwarded with the billing paperwork. 4-5.10 Inadequate Description or Unrecognized Charge In the event the Card Holder does not recognize the transaction description, the Card Holder should request that U.S. Bank supply a copy of the sales draft due to inadequate description or unrecognized charge. This should be requested only after reviewing supporting documentation and ensuring that a merchant description or location error has not occurred. In the event the vendor s processing bank cannot provide a copy within Visa allotted time frames, the Card Holder s account will be credited until such time as a valid draft is received. If US Bank provides the copy and the Card Holder determines that a valid dispute exists, the Card Holder must dispute the item using the online dispute feature or calling customer service at US Bank. 10
4-5.11 Copy Request This reason should be used when the Card Holder recognizes the charge, but requires a copy of the sales draft for their records. The Card Holder should be encouraged to keep all supporting documentation as evidence of their purchase. 4-5.12 Not as Described This reason is used when the Card Holder claims goods or services were not received as described. The written document of what was to be delivered must be different from what was actually delivered. It is important that the sales draft specifically describe what was purchased. In a telephone order situation, the verbal description is considered the document characterization. The Card Holder must explain how the verbal description was different from what was actually received. An attempt must be made to return the goods. If merchandise was returned, proof of such return should be forwarded with a copy of the bank statement. 4-5.13 Card Holder Dispute This reason should be considered only after reviewing other specific dispute reasons. This reason requires that the Card Holder attempt a resolution with the merchant. A complete description of the problem and the attempted resolution should be provided with the Monthly Bank statement along with a copy of the sales slip and a copy of the Card Holder s Bank statement on which the transaction appears. 4-5.14 Other Dispute Reasons In the event the reasons discussed above do not fit the Card Holder s dispute circumstances, the Card Holder should submit a copy of the bank statement and a detailed letter of the circumstances of the dispute. References should be made to any contact with the vendor, names, telephone numbers, etc., that would be helpful in research of the dispute. 5. PROCEDURES APPROVING OFFICIAL (AO) 5-1 RESPONSIBILITIES As the Approving Official for a Card Holder group, the Approving Official is responsible for making certain that all purchases were appropriate and within CAL Card and County guidelines. Approving Officials are responsible for the following: 11
5-1.1 Reconcile Card Holders Statements of Account Within five (5) working days after receiving a completed Card Holder bank statement from all Card Holders, review each Monthly CAL- Card Purchase Report to be sure all receipts are included, and that the purchases were appropriate and within county guidelines. Verify that the transactions that are disputes are valid and agree with departmental procedures. 5-1.2 Approve Statements of Account Sign and date each Card Holder Bank statement and deliver the completed statements with necessary attachments to the Billing Official for payment processing. A copy of the Monthly CAL-Card Purchase Report and Card Holder Bank statement should be kept on file for audit purposes. Should an Approving Official not receive a Card Holder s bank statement, it is the AO s responsibility to contact the Card Holder. However, if a Card Holder had no CAL-Card purchase activity for that billing cycle, no Card Holder bank statement will be generated, unless adjustments for previously billed transactions are processed during that cycle. 6. BILLING OFFICIAL - PREPARATION OF A CAL-CARD CLAIM 6-1 General Information Preparation of a CAL-Card claim is required for processing the payment. A Sonoma County Auditor-Controller White Claim is prepared for each monthly financial invoice (RO60 - Level 4 Financial Summary). Payments must be processed in a timely manner (within 45 days of date of invoice) in order to avoid penalties, interest charges, or suspension of account. Suspension of the account means Card Holders for that department will not be able to use their CAL Cards. If the department or agency s account is closed, the rest of the County s CAL Card Holders will not be able to use their CAL Cards until the delinquent amount has been paid. 6-2 Procedure Each month, a master account statement(s) will be sent to the Billing Official. Depending on the reporting structure that was set up within 12
the department, there can be more than one master account statement. The master account statements include summaries of all card holders under an approving official. These statements must be carefully reviewed to verify the receipt and acceptance of all charged items to the Card Holder s Bank statements. Billing officials must use the master account statement as the official invoice. Individual card statements should not be used as the invoice. The master account statement must be paid in full within 45 days of receipt. Best practice is to pay the full statement amount, allowing any credits or disputed items to catch up on the following month s statement. A white claim is prepared for the total amount of the master account invoice. A copy of the online dispute form and Notification of Invoice Adjustment (Attachment C) must be submitted if the amount paid is different than the amount of the invoice. Code each line with index code, sub-objects, and other coding as necessary. The invoice number from the financial statement will be used as the description in order to allow the bank to identify payment and to protect against duplicate payments. If an item on the monthly statement is disputed, the Card Holder must have notified US Bank by either completing the online Dispute Form or calling Customer Services. Documentation must be attached indicating the reason and the amount of the disputed item. Documentation can be either an online print screen of the form, or the actual printed form. If the customer called customer service instead, they must attach a memo indicating the reason and the amount of the disputed item. Remove the cost of the disputed item from the statement/invoice, complete a Notification of Invoice Adjustment Form and prepare the claim for payment. Attach the master account statements and all backup documentation to the claim. Have the Department Head or delegated authority, sign the claim and submit to the Auditor s Claims Division for processing. 7. PROCEDURES FOR OBTAINING A CAL-CARD 7-1 Billing Official Prepare a Card Holder Request Form for each CAL-Card requested (Attachment D). Card Holders must be a permanent County employee that the Department Head has designated as needing a Cal Card. Specify the single transaction limit requested (not to exceed $2,500, 13
amount determined by Department Head or designee) Specify a 30- day total transaction limit for each requested Card Holder. Complete the name of the Approving Official for each requested Card Holder. (Note: A Card Holder cannot be his/her own Approving Official). Have the Card Holder Request Form approved and signed by the Department Head or designee and submit to the Agency Program Coordinator (Purchasing Agent). Billing Officials should keep a copy for their records as the information listed on the form is what U.S. Bank will use to verify the account. 7-1-2 Purchasing Agent The Purchasing Agent, or designee, will review Card Holder applications received, clarify or modify applications in conjunction with requesting Billing Official, and submit a Card Holder Application Request to the bank. New CAL-Cards will be mailed to the Purchasing Division who will distribute cards to each new Card Holder and provide training as required. 8. REPLACING OR CANCELLING CAL-CARDS 8-1 There may be instances where it becomes necessary to replace CAL- Cards or obtain additional cards. Please follow the instructions below that apply: 8-1.1 Reporting Lost or Stolen CAL-Cards Card Holder will immediately contact the U.S. Bank. See section 11 for phone number. The card will be cancelled and a replacement card will be ordered. Card Holder will promptly notify Approving Official and Billing Official of the lost or stolen card. The Billing Official will notify the Purchasing Agent or designee (County Program Coordinator). The County Program Coordinator will receive and forward the replacement card. 8-1.2 Replacement of Defective Cards 14
If a CAL-Card needs to be replaced because it is worn out or defective, the Billing Official shall submit a request for a replacement card to the Purchasing Agent. A replacement card will typically be issued within five (5) days of notification. 8-1.3 Cancel a Card Holder When a Card Holder leaves a department or County employment, the Billing Official shall notify the Purchasing Agent who shall cancel the Card Holder s Account. The Card Holder or Approving Official should destroy the cancelled CAL-Card immediately. The card shall not be used by other staff. 8-1.3 Replacing a Card Holder The Billing Official shall submit to the Purchasing Agent an application form for the new Card Holder (Attachment D). 9 LEGAL REFERENCE AND AUTHORITY 9-1 ORDINANCE AND RESOLUTIONS The County of Sonoma authority to obtain goods and services is granted in Sonoma County Code Section 2-52 through 2-58 (County Ordinance No. 4654) and Board of Supervisors Resolution No. 95-0328. (REF: CAL-Card Concurrent Resolutions No. 99-1411 and No. 99-1550). 10. INFORMATION SOURCES U. S. Bank/I.M.P.A.C. Government Services - Customer Service P.O. Box 6346 Fargo, ND 58125-6346 Phone: 1-800-344-5696 Fax (701) 461-3910 Fraud Department Available 24/7 1-800-523-9078 Sonoma County Program Coordinator County Purchasing Agent (707) 565-2433 Fax (707) 565-6107 Billing Office Contact Sonoma County Auditor-Controller 15
Supervising Accountant (707) 565-3271 11. AUDIT OF DEPARTMENT RECORDS AND PROCEDURES Processed claims, including supporting documentation are scanned into the Auditor s Office Soft File system. Department records and prior year claims will be kept in accordance with the County s Records Retention Policy. These records are considered public record. The Auditor-Controller may conduct periodic audits by department to ensure compliance with CAL-Card regulations and procedures. 16