Fiscal Policies P-Card Policy
The State of Idaho's P-Card (purchasing card) program was established to streamline and simplify the requisitioning, purchasing, and payment process. The program was designed to reduce the routing time required for the approval process and paperwork of procurement procedures such as petty cash, check requests, and expense reimbursements. The purchasing card works like a cash card for both the vendor and the agency personnel that use them.
There are many benefits to be derived by using the purchasing card as a payment mechanism when appropriate:
State purchasing cards are to be issued to state employees only. If an agency has unique circumstances where they wish to issue a card to a non-state employee, they may do so with approval from the State Controller's Office, Deputy Controller, Division of Statewide Accounting. Generally exceptions will only be approved when the cardholder is an employee of another governmental entity functioning as a state employee. Each agency determines the number and limitations set on the cards.
The purchasing card is to be used for official State of Idaho purchases and in conjunction with current state contracts. It is required that state contract merchants/vendors be used when making purchases of commodities that are available from State term or agency contracts. In addition, the purchasing card is to be used in conjunction with agency purchasing policies.
The purchasing card may be used to pay travel expenses for official state business. The expenses must be in compliance with the State travel rules and regulations. All expenses must be accounted for on a travel voucher and appropriate receipts and invoices in sufficient detail to support the charges must be attached. All cash advances made on the purchasing card must be accounted for and reconciled on the travel voucher. Cash advances should be reasonable in relation to the type and length of the travel.
Service providers can be paid using the purchasing card. Payments made with the P-Card are subject to 1099 reporting requirements. The transactions must be posted to the correct vendor number in the accounting system.
Unacceptable purchases include but are not limited to:
Each agency will designate a Program Coordinator. This person is responsible for:
Each program area will assign a supervisor or other approver(s) to review and approve cardholder purchasing card transactions including related receipts and invoices in sufficient detail to support the charges. Although only one level of approval is required as a key control, a program area may assign additional levels of approvers as they feel necessary and appropriate.
Once the cardholder has received their card they are responsible for:
Group cards do not have an individual's name imprinted on the face of the card. These types of cards are intended to be used by multiple people.
Group cards are to be issued to one person who is held accountable for the card with all the same responsibilities as defined in the Cardholder Responsibilities above.
The agency's accounting unit is responsible for processing payments to the bank. The payment due date is established by the terms of the contract with the bank. Two business days are needed to process the Automated Clearing House (ACH) function. If the payment date is a holiday or weekend, it must be paid on the Friday before the holiday, weekend or the last business day.
For users of the automated P-Card process, the following is also necessary:
The agency must establish a program of internal control to address the use of the purchasing card as a means of expending state funds.
The following is the minimum level of standards acceptable for departmental internal control systems that will be developed to guide the use of the purchasing card:
Consequences of misuse shall include:
In addition, consequences of misuse may include any one or combination of the following: