6592 - Services for the JD Edwards 9.2 Upgrade, Legal Notice/ Advertisement
CITY OF DENTON PURCHASING CARD PROGRAM
Administrators:
Kelly Smith- Ext. 7143- First Contact- Main Contact
Julia Winkley- Ext. 7130- Second Contact- Back up
Cindy Alonzo- Ext 7318- Third Contact- Back up
1.0 Overview: Page 4
The Purchasing Card program is to be used to procure low-value maintenance, repair and operational expense
items. Typically 80% to 90% of the purchase orders issued are for $1,000 or less. The efficiency of the P-Card
helps to make your job more productive.
Different limits can be set for each person, but the standard City of Denton limits are:
Single purchase limit- $3,000
Spending limit per 30 day cycle-$3,000-
Must comply with City of Denton Travel Policy.
Cycle begins on the 6th day of the month and ends on the 5th day of each month- Unless it falls on a
weekend and it will begin on the next Monday following the weekend.
If you exceed your limits, your transaction will be rejected when the merchant attempts to process it.
Certain types of merchants will be blocked for all Cardholders. Some of the types of merchants that are blocked
are; International transactions, liquor stores, bars and lounges, adult entertainment facilities, etc.
Should you have a question concerning an establishment you wish to use, please contact the Purchasing Card
Administrator in the Materials Management Department.
2.0 Purchasing Card Eligibility: Page 5
Designated Cardholders will be employees empowered by their Division Directors to:
Make purchases for the department/division
Keep accurate receipts and transaction records of all purchases
Submit purchase transaction records to the Materials Management Department in a timely manner.
Division Directors- When determining which employees should be assigned a Purchasing Card, may wish to
use the following criteria:
Will the employee's use of a Purchasing Card enhance productivity?
Will the employee's use of a Purchasing Card reduce paperwork?
Will the employee utilize the Purchasing Card regularly for the purchasing of authorized (budgeted) goods,
supplies, and services?
Acceptable Purchasing Card Uses- Page 5
All Purchasing Card purchases should follow the Policies and Procedures contained in the City of Denton
Materials Management and Payment Procedures Manual.
Acceptable purchase items include:
Books and magazines
Memberships and subscriptions
Maintenance, Repair, and Operational expense items
Supplies, small tools
Conference Registration
Hotel Expenses
Non Travel Related Meals such as business meals
Miscellaneous Travel Expenses
MEALS- Page 5
Effective October 1, 2005, the p-card may NOT be used for travel related meals. In accordance with the City of
Denton Travel Policy, the reimbursement will be based on a per diem basis and therefore the p-card cannot be
used.
Non-travel related meals, such as safety award and business meals, are an acceptable purchase with P-Cards.
IRS Rules State that that Non-travel related business meals must be document the business purpose and
attendees must be listed on all business meal receipts. **Cardholders are required to keep all documentation in
their records, and supply them to the Auditor upon request.
Unacceptable Purchasing Card Uses- Page 6
P-Cards are not to be used for the purchase of items available from the Distribution Center and Fleet
Services.
Office Supplies should be not be purchased from other than the contract supplier unless CRITICAL RUSH
CONDITIONS EXIST.- Currently Contracted with Staples Online Contract
Uniform purchases should be made from the approved vendor designated by Materials Management.-
Currently G&K
Purchasing Card purchases are not to be combined with other employee Purchasing Cards to circumvent
the established purchasing limits.
Purchasing Cards are not to be used for such items as:
Unbudgeted goods, supplies and/or services- **No Personal expenses are allowed on your P-Card.
There will be consequences for not following the rules. These expenses are being paid by taxpayer
dollars. Treat this like it was your own personal money, use the card wisely and make good choices.
Personal restaurant meals and/or alcohol- **Cards will not reject these purchases at restaurants or
grocery stores, but you will be questioned about these types of purchases.
Gift certificate, gift cards, in store credit- **Never ask for or allow them to give you cash back or store
credit.
International Purchases- **Call me and we can make those arrangements.
Pay Pal Internet Purchases- Unless prior approval from Materials Management- **Some Exceptions are
ok- No other way to pay, Conferences, let me know and I can document it.
Unauthorized Entertainment- **You must pay for any personal expenses out of pocket.
Personal, professional, or temporary services- **Should be processed through the requisition process.
Services where a potential liability may exist and requires insurance and/or bonds (see Insurance
requirements- Page 9)
Cell phones and cell phone accessories without prior approval from Technology Services- **The City pays
you a monthly stipend, must use that to pay for accessories.
Products or services which require the approval of another individual
City vehicle fuel purchases inside the City limits- **Must use Fleet Services pumps
Fuel operated mechanical equipment without written approval of Fleet Services.
Computer hardware, software and services (without written approval from Technology Services)
Communications hardware, software and services (without written approval from Technology Services)
Consequences for Failure to Comply with Program Guidelines
Permanent revocation of card!
Disciplinary measures that may include termination and legal action.
Cardholder Duties and Responsibilities include: Page 7, 8 & 9
Maintain cards in secured location.
Cardholders are responsible for reporting any fraudulent use or misapplication of the card
immediately, to the Purchasing Card Administrator.
Cardholders are responsible for immediately investigating any disputed charges and invoking the
disputed charge procedures when necessary.
Cardholders are responsible for immediately notifying JPMorgan Chase (1 800 890-0669), their
supervisor, and the Purchasing Card Administrator if a card is lost or stolen. **Phone # is on the back of
the card
Cardholders are responsible and accountable for adherence to the per transaction and per 30 day cycle
limits set for their card.
Cardholders are accountable for the physical receipt of the merchandise.
Cards are issued to individuals rather than to department/division.
Only the person whose name is on the card may use that card. Do not give your card to someone else to
pay for you.
Cardholders must reconcile all purchases in the Smart Data on Line System (Attachment 2).
Additionally, each item on a transaction will need to be coded to the appropriate expense account.
Making a Purchase:
When making a purchase via the Purchasing Card, the employee (Cardholder) is to:
Obtain the best possible price. Many vendors offer government discounts- Remember the City is
exempt from sales tax.
901 B Texas Street, Denton, TX 76209 is always the billing address.
Verify the charges (and that we are not charged tax) and sign the receipt. If the receipt does not
identify what each amount is for, write it on the receipt. “Be Specific”, auditors must be able
to identify what was purchased.
You should receive a charge card receipt or cash register receipt. Keep them! You'll need them at
the end of the billing cycle. If the order was placed by phone, you may not get a receipt- but you
should note the confirmation number and keep the shipping receipt when the merchandise arrives.
An electronic receipt or email confirmation with item details and price are acceptable. A signed
receipt is not required.
You must keep receipts for the full 3 fiscal year retention policy. You can chose it store them electronically
or keep the hard copy. As long as you can present them for audit when requested.
Have supplier ship according to terms. F.O.B.: Destination, seller pays for freight, even though we
may have shipping and handling as part of the total cost charged to the card.
(IMPORTANT) Give the supplier your name. Department and office address. Make sure the
supplier incorporates this information on the shipping label if material is to be shipped directly to
your office.
Confirm pricing and tax-exempt status. Ask the supplier to enclose a copy of the sales slip with
each shipment listing price per item and other applicable charges.
Ask the supplier to immediately process the credit card authorization with the Bank.
Once the transaction has been processed, input account number and description in the
JP Morgan Chase Smart Data on Line System.
Approved Vendors list for services performed on site- The State of Texas requires insurance for repair
and installation services to be performed on City property. This includes but is not limited to locksmiths,
electricians, and plumbers. The Materials Management department maintains an approved vendor list for
these types of services. The list is posted on the Materials Management intranet site and is updated monthly.
The vendors on the approved list have the required insurance including general liability, automobile, and
workers’ compensation insurance. If you have need of a vendor that is into on the approved list, please
contact Materials Management in advance to ensure that the service provider meets the minimum insurance
requirements. If a Cardholder contracts with a service provider who is not on the approved vendor list, and
does not obtain prior approval from Materials Management, a warning may be issued.
Several things to remember:
Competitive bidding is not required but you should strive to obtain the best value
Log each transaction in the Smart Data On Line System
A Purchasing Card should only be used by the authorized cardholder
The Purchasing Card sales receipt will serve as the receiving document
Remember that we do not pay State of Texas sales tax- City of Denton Tax ID # 75-6000514
Call Purchasing if the vendor requires a tax exemption certificate
Billing address for all purchases is 901 B Texas Street Denton, TX 76209
Maintenance service providers must have the minimum required insurance-contact Materials Management
for an approved vendor’s list
What if there is an Error on the Statement or Other Problems?: Page 10
In the case of an error or disputed charge, you should first contact the supplier. Most issues can be
resolved between the Cardholder and the supplier. If you cannot reach an agreement with the supplier,
the next step is to contact the Bank at their customer service center (800-890-0669) 24 hours a day.
Nearly all errors or disputed charges can be managed using these two steps. If you are unable to obtain
an acceptable resolution, you should call the Purchasing Department.
Lost or Stolen Cards: Page 11
In the event your card is lost or stolen, you (the Cardholder) must notify JPMorgan Chase, your
Department Manager/Director, and the Purchasing Card Administrator immediately! Representatives
of JPMorgan Chase are available 24 hours a day. JPMorgan Chase will replace lost or stolen cards
within fifteen (15) days after notification of the loss. JPMorgan Chase Call: 1-800-890-0669
No charge for replacement cards that have been compromised- Can be sent overnight if requested
$25.00 Overnight shipping charge for lost cards
Notes when reconciling fraudulent transactions on your statement:
For accounting purposes, you must reconcile the fraudulent charges. When you go to reconcile, you will
reconcile as usual. I would put something along the line of “Fraudulent transaction” and for the refund “Refund
for Fraudulent Transaction.” For the fraudulent transactions (they will show up on you old card) pick an account
# & when the refund comes through (they will show up on your new card probably next month) you will use the
same account #s. The two account #’s will cancel each other out.
Returned Merchandise
If a Cardholder returns merchandise obtained with a Purchasing Card to a merchant, the Cardholder
is to obtain a credit against the Purchasing Card. Cash reimbursements, gift cards, store credit or
product substitution is not allowed. The return credit will show up on the statement as a credit it will show in
red with ($0.00) around it once the transaction has been completed.
6.0 AUDIT: Page 12
The Cardholder is responsible for verifying and completing an accurate SDOL transaction log in a
timely manner. The SDOL transaction log is to be reconciled and approved by the Cardholder’s
supervisor within five (5) working days after receipt of email notification. You will receive an email each
month to remind you to reconcile. Cardholders are subject to a random audit internally, externally at any
time. An email will be sent to you requesting the information needed for the audit.
Requirements for the audit:
A copy of your Transaction Log from the JPMorgan site showing supervisor approval for each item. **Both
reviewed and approved boxes must be checked for every transaction.
A detailed description for each transaction explaining what you have purchased must be provided on all
transactions. **Please remember descriptions such as “Misc. Stuff”, “Office Supplies”, and “Supplies” are
not appropriate as a description, the description must be detailed and explain what it was that you have
purchased.
As part of the audit process, receipts MUST be provided even if you have added them into the JPMorgan
System.
Provide clear copies of all receipts supporting each transaction on the log.
If you have business related travel related expenses, please include a copy of your Expense Report.
If you are paying for business lunches, please attach a copy of the attendee list and an description on the
meeting topic.
If receipts are lost, please include a Lost Receipt Form for each lost receipt. *This form must be signed by
your supervisor.
Smart Data on Line (SDOL) Reconciliation: Page 12
Each Cardholder is to maintain an accurate electronic SDOL transaction log which contains a
detailed record of each Purchasing Card purchase (Attachment 2).
The log is to contain:
Account Number- If an account number is not shown on the drop down menu, contact the Finance
Department. Kurt Breyfogle at kurt.breyfogle@Cityofdenton.com or 349-7219 will be your contact in
accounting to add those account numbers.
If multiple Account Numbers need to be allocated to a single transaction, use the Split option in the SDOL
system.
A detailed description of item/services purchased is required. Descriptions such as “Misc. Stuff” or Office
supplies” or “Misc. Supplies” are not appropriate descriptions. You will be asked to revise those
transaction descriptions.
Attaching receipts in SDOL: To assist supervisor with review of purchases. You are not required to attach
your receipts in JPMorgan, but some supervisors may require that you do. You must keep a copy of your
receipts and provide them for any requested audit or clarification.
Cardholder electronic review
Supervisor’s electronic approval
Funding of Card charges
It is the Cardholder’s responsibility to ensure that their purchases are properly funded. Failure to
provide correct account numbers can result in the loss of procurement card privileges. **Account Information
MUST be added in JPMorgan so that accounting can reconcile the master statement. Please make sure
this is always done every month.
Department Purchasing Card Management Responsibilities: Page 14
1. Cardholder's are to submit their reconciled SDOL transaction log to their supervisor for review and
electronic approval within five (5) working days. Cardholders will be notified by email of the due date.
2. If Cardholders do not provide the required account numbers by the specified due date, a warning email
will be sent by the Finance Department.
3. On the fourth day of non-compliance, a list of Cardholders will be provided to the Director of Finance.
The decision to terminate or suspend an employee’s Purchasing Card will be made by the Director of
Finance.
Inappropriate Purchasing Card Purchases:
Are not the bank or the vendor's responsibility. The vendor will be paid and the department budget charged
unless the City returns the merchandise and the vendor agrees to take it back and issue a credit to the card.
Your P-Card is unique to the City of Denton and should not look like any of your other cards, but we
understand that accidents happen. The cardholder MUST go to Customer Service to pay back ANY
accidental charges that might occur. A warning will be issued it there are too many instances of
accidental charges.
Supervisor Responsibilities:
The Cardholder's supervisor is to review the employee's usage of the Purchasing Card and is responsible for
ensuring the Cardholder conforms to the Purchasing Card usage guidelines and City of Denton Materials
Management and Payment Procedures Manual. Inappropriate usage of the Purchasing Card by the Cardholder
(employee) shall be addressed by appropriate disciplinary measures as detailed in the Warning Process section
of this manual.
Things to check when reviewing the cardholder’s statement:
**If the card holder is not available to reconcile their statement, please login and reconcile for them.**
Make sure cardholders have entered the correct HBU Code before approving. (This is your departments
account code)
Please make sure all information is filled out and all boxes are checked. *Remember to select save
afterwards.
If revisions need to be made to a cardholders transaction(s) supervisors have the capability to edit those
transactions. The approved and reviewed boxes have to be unchecked before the transaction can be edited.
Employee on extended leave:
If an employee is absent from work for an extended period of time (15 days or more) due to illness, military
service, or other FMLA events, the Supervisor should notify the Materials Management Department to
temporarily close the employee’s Purchasing Card. This will help to mitigate potential fraudulent use by
unauthorized parties.
Changes in Employment Status - Promotion, transfer, etc.:
If a Cardholder changes departments, the Materials Management Department must be notified by email or
written memorandum. This ensures that the Cardholder is set up under the appropriate supervisor hierarchy in
the SDOL system. Materials Management will also follow up with the employee’s new supervisor to confirm
that the employee needs to have a Purchasing Card to perform their job duties. The card may be canceled by
Materials Management at the request of the new supervisor.
Resignation, termination, etc.:
If a Cardholder's status with the City changes in such a manner that he/she is no longer an employee of the City,
their card must be turned in to the Purchasing Manager and their card account must be closed. It is the
supervisor's responsibility to take the card from the employee and send it to the Materials Management
Department or notify the Materials Management Department that it has been shredded. It is recommended that
terminating employees turn their Purchasing Card into their supervisor at least one (1) week before leaving
along with their Purchasing Card Records. IMPORTANT: This cancellation must be in writing through email or
memorandum. Division Directors or ACM’s are responsible for this action and for sending a copy to Materials
Management.
WARNING PROCESS: Page 17
First Misuse:
Written warning issued to Cardholder.
Director of department or immediate supervisor notified.
Second Misuse:
Written warning issued to Cardholder.
ACM, director of department, and immediate supervisor notified.
30-day suspension of procurement card.
Third Misuse:
Written warning issued.
ACM, director of department, immediate supervisor, and HR notified.
Letter of reprimand placed in employee