Purchasing Card

Idaho
Department of
Correction

Standard
Operating
Procedure
Title:
Purchasing Card

Page:
1 of 8

Control Number:
114.03.03.021
Version:
1.0
Adopted:
09/03/2003

IDOC Data Sensitivity Classification - L3 Restricted
Pat Donaldson, chief of Management Services on 02/24/2020.
Open to the public: Yes
SCOPE
This standard operating procedure (SOP) applies to any Idaho Department of Correction
(IDOC) employee who has been issued a purchasing credit card (P-card), and any IDOC
employee who uses a P-card, as well as their supervisors, approvers, and fiscal staff.
Revision Summary
Revision date (02/24/2020) version 1.0: Previously, this information was combined with the
IDOC Purchasing Card Manual. Completely reformatted; revised to reflect current practices,
updated terminology. IDOC Purchasing Card Manual will be a separate document.
TABLE OF CONTENTS
Board of Correction IDAPA Rule Number ............................................................................. 1
Policy Control Number 114 ................................................................................................... 1
Purpose ................................................................................................................................ 2
Responsibility ....................................................................................................................... 2
Standard Procedures ........................................................................................................... 2
1. State Purchasing Cards ............................................................................................... 2
2. Use of State Purchasing Cards .................................................................................... 3
3. Purchasing Card Spending Limits ................................................................................ 4
4. Duties and Responsibilities .......................................................................................... 4
5. Internal Control ............................................................................................................ 6
6. Misuse of Purchasing Cards ........................................................................................ 6
Definitions ............................................................................................................................ 7
References ........................................................................................................................... 7
BOARD OF CORRECTION IDAPA RULE NUMBER
None
POLICY CONTROL NUMBER 114
Fiscal Policy
Control Number:
114.03.03.021
Version:
1.0
Title:
Purchasing Card

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Idaho Department of Correction
IDOC Data Sensitivity Classification - L3 Restricted
PURPOSE
The purpose of this SOP is to provide the necessary information to ensure that IDOC
employees follow correct procedures regarding the issuance, use, and monitoring of
department-issued P-cards.
RESPONSIBILITY
The chief of Management Services is responsible to ensure that this SOP is implemented
correctly and monitored appropriately to meet the State Controller’s Office guidelines.
The financial executive officer is responsible to ensure that staff members adhere to the
fiscal processes outlined in this SOP and all associated fiscal standard operating
procedures.
The fiscal unit is responsible for adhering to fiscal processes related to processing and
reconciling P-card transactions.
P-card approvers are responsible for ensuring P-card transactions are reviewed
appropriately and approved in a timely manner.
The P-card administrator is responsible for overseeing the P-card process to ensure that
staff are following proper procedures.
Supervisors are responsible for ensuring that the employees they have given permission to
receive P-cards are using them properly per the guidelines outlined in this SOP and in the
IDOC Purchasing Card Manual.
P-card users are responsible to adhere to the procedures detailed in this SOP and in the
IDOC Purchasing Card Manual.
STANDARD PROCEDURES
1. State Purchasing Cards
Issuance of Purchasing Cards (P-cards)
State purchasing cards are issued to state employees only. Supervisors determine if an
employee has an operational/business need to use a P-card. If the supervisor determines
that a P-card will be issued, the following steps must be taken:
• Fill out the Request for New P-card User
• Sign the Cardholder Purchase Card Agreement
• Submit the completed forms to the P-card administrator in the fiscal unit by sending
them to: [e-mail]
• Complete P-card training
Note: If a department has unique circumstances where they wish to issue and card to a
non-state employee, the P-card administrator must obtain approval from the deputy
controller at the State Controller’s Office, at the Division of Statewide Accounting. Generally,
exceptions will only be approved when the cardholder is an employee of another
government entity functioning as a state employee.
Control Number:
114.03.03.021
Version:
1.0
Title:
Purchasing Card

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Idaho Department of Correction
IDOC Data Sensitivity Classification - L3 Restricted
Group Card Issuance
Group card issuance is extremely limited as there is no protection against fraudulent use
and represents a significant liability to the department. Group cards are issued to one
person who is accountable for the card with all the same responsibilities defined in the
cardholder responsibilities section.
Group cards do not have an individual’s name imprinted on the face of the card. This type of
card is intended for temporary use by multiple people.
If an employee and their supervisor desire a group card, the following steps must be taken:
• Contact the P-card administrator for consideration of the request. Due to the liability
that group cards present, issuance is considered on a case by case basis.
• In the rare circumstance that the issuance of a group card is deemed appropriate, fill
out the Request for New P-Card User.
• Sign the Work Group Card – Cardholder Agreement.
• Submit the forms to the P-card administrator at [e-mail].
2. Use of State Purchasing Cards
Purchasing Goods
P-cards are used for official State of Idaho purchases in conjunction with current state
contracts, including department contracts and state open contracts. P-card users are
required to use merchants and vendors with whom the state has contracted to provide
these goods and services. In addition, the P-card must be used in accordance with
department purchasing polices as described 147.06.06.004, Purchasing and
Contracting.
Travel
P-cards may be used to pay travel expenses for official state business. The expenses
must follow the Idaho State Board of Examiners’ Travel Policy and Procedures.
All expenses must be accounted for on a travel voucher. Corresponding receipts and
invoices containing enough detail to support the charges must be attached.
Services
Service providers can be paid using a P-card. Payments made with P-cards are subject
to 1099 reporting requirements. The fiscal staff will ensure that the transactions are
posted to the correct vendor number in the P-card system.
Allowable Purchases
Allowable purchases are purchases that are made in adherence to the SOPs described
herein.
Acceptable purchases are:
• Approved state purchases as described in 147.06.06.004, Purchasing and
Contracting
• Travel expenses related to official state business
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Idaho Department of Correction
IDOC Data Sensitivity Classification - L3 Restricted
Prohibited Purchases
Prohibited purchases include, but are not limited to the following:
• Alcoholic beverages
• Purchasing gasoline for state vehicles, unless the vendor will not accept the state
gas card
• Items for employee’s personal, non-work related use
• Items prohibited by department or state policy as explained in 147.06.06.001,
Purchasing and Contracting, Department of Administration IDAPA Rule 38.05.01 and
Idaho’s State Procurement Act, at title 67, chapter 92, of the Idaho Code.
• Items that fall under the Capital Outlay category. Capital outlay items are single items
with a cost that exceeds $2,000 and that have a useful life (estimated lifespan) of
greater than two years. (See definitions.)
3. Purchasing Card Spending Limits
The IDOC has predetermined spending limits on purchasing cards which are as follows:
• $1,500 per transaction
• $2,500 per day
• $4,000 per month
If an employee knows they will need to make a purchase that is above the predetermined
limits, they must notify the P-card administrator to have the limit temporarily raised. In an
emergency, any fiscal staff member may be contacted.
Limits can be raised immediately to accommodate operational needs. However, P-card
users are not allowed to attempt to avoid the spending limits by having the vendor split the
transaction into smaller amounts.
4. Duties and Responsibilities
Cardholder
Once the cardholder has received their P-card, they are responsible for:
• Complying with the requirements of this SOP.
• Using the P-card for state purchases and approved items only.
• Notifying vendors of the department’s Idaho state tax-exempt status.
• Maintaining all supporting documentation (e.g., proper receipts in sufficient detail to
support the charges, vendor order forms, cash receipts, P-Card No Receipt Form,
and timely submission of support to the accounting unit as appropriate for the
department.
• Accounting for all travel related uses of the P-card by recording the transactions on
their travel reimbursement voucher, noted as “paid by P-card”.
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Idaho Department of Correction
IDOC Data Sensitivity Classification - L3 Restricted
• Ensuring receipt of goods and communicating with the vendor to resolve disputes
and arranging for returns, credits, and delivery problems.
• Notifying the P-card administrator immediately if the P-card is lost or stolen.
• Safeguarding P-card security at all times. All precautions must be used to maintain
confidentiality of the cardholder account number and expiration date of the P-card.
The account number must never be left in a conspicuous place. Only the person
whose name appears on the face of the card may use the P-card. The only
exception to this is if a Group Card is used (see section describing group card
issuance).
• Verifying receipt of all purchases and returns must be forwarded to the cardholder’s
supervisor or person responsible for approving transactions within 30 days of
transaction.
• Immediate repayment of improper charges and acceptance of personal liability for
misuse.
• Returning the card to the P-card administrator immediately upon request or upon
termination of employment (including retirement).
Approver
As a key component of internal control, each program area will assign a supervisor or
other approver(s) to review and approve cardholder P-card transactions including related
receipts and invoices in sufficient detail to support the charges. The fiscal unit provides a
final review process as an additional control.
Fiscal Unit
The department’s fiscal unit is responsible for the following duties:
• Processing payments to the bank
• Recording each fiscal years’ activity by June 30. To comply with federal regulations
relating to the Statewide Indirect Cost Allocation Plan, it is important that the
reduction of cash and recording the expenditure occur in the same year. Detailed
procedures related to processing the June P-card transactions and paying the bank
can be found in the P-Card User Manual on the State Controller’s web site.
• Reconciling P-card transactions to the accounting system. The P-card liability
general ledger accounts must be reconciled and adjusted at least monthly.
Reconciliations must be reviewed and approved by a supervisor.
P-Card Administrator
The department has designated a P-card administrator in the fiscal unit. This person is
responsible for:
• Card issuance, change, and cancellation.
• Maintenance of cardholder lists and documentation in a secure location at all time
(locked cabinet).
• Maintenance of card limits and restrictions.
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Purchasing Card

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Idaho Department of Correction
IDOC Data Sensitivity Classification - L3 Restricted
• Maintenance of cardholder agreements.
• Assisting cardholders in verifying and resolving returns, credits and discrepancies.
• Conducting training for cardholders.
• Evaluating and documenting P-card distribution to ensure that only those individuals
with ongoing legitimate business needs receive a P-card, and that P-card limits are
set accordingly.
• Selecting and administering “black-out” dates at fiscal year-end.
5. Internal Control
Standards have been set for the fiscal unit to provide an acceptable level of departmental
internal control systems guiding the use of the P-card. The following items comprise the
minimum level of acceptable standards:
• Internal control systems must be clearly documented and readily available for
inspection or audit.
• Persons authorized to use P-cards must be identified by name.
• All transactions must be recorded, classified, and reconciled within 30 days of the
transaction.
• Transactions may be only be authorized by persons acting within their scope of
authority.
• Key duties and responsibilities will be assigned systematically to a number of
individuals to ensure that effective checks and balances exist.
• All P-card transactions related to travel must be accounted for and referenced on a
travel voucher so that related receipts and invoices can be inspected to support the
charges.
• Spending limits must be set for cardholders, including single purchase and/or
monthly limits.
• Qualified and ongoing supervision will be provided to ensure that internal control
objectives are achieved.
• Access to resources and records will be limited to authorized individuals as
determined by the director or designee.
6. Misuse of Purchasing Cards
Types of Purchasing Card Misuse
The following types of P-card misuse must be reported immediately to the P-card
administrator:
• Non-compliance with documentation standards
• Not verifying P-card transactions within 30 days
• Use of P-card for employee personal purchases
Control Number:
114.03.03.021
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1.0
Title:
Purchasing Card

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Idaho Department of Correction
IDOC Data Sensitivity Classification - L3 Restricted
• Use of P-card by individual other than cardholder
• Use of the P-card to purchase non-allowable items
• Use of the P-card in violation of state acquisition and procurement policies and
procedures (failure to use existing department contracts or state open contracts)
• Splitting transactions at the point of sale to avoid the single transaction limit
Consequences of Purchasing Card Misuse
Misuse of purchasing cards is prohibited. Improper use of P-cards may result in loss of
use privileges as well as disciplinary action and/or prosecution.
The consequences of misusing a P-card include:
• Repayment of non-allowable charges
• Notification sent to the cardholder’s immediate supervisor
In addition, consequences of misuse may include any one or combination of the
following:
• Verbal notification of the infraction
• Written notification with copies included in the individual’s personnel file
• Temporary suspension of cardholder privileges
• Mandatory re-training
• P-card suspension with permanent loss of privileges
• Disciplinary action up to and including dismissal
• Personal liability, repayment of all personal and other non-authorized expenses,
prosecution, and repayment of all costs incurred, including, but not limited to, legal
costs incurred by the state in the investigation and prosecution for any misuse of a P-
card
Reactivation of card privileges will not occur unless all deficiencies have been corrected.
A r equest for reactivation of a P-card must be made to the employee’s division chief. If
the division chief approves the request, the division chief will forward the request to the
P-card administrator to reactivate the P-card.
DEFINITIONS
Capital Outlay: Any single item costing over $2,000 with an estimated useful life of greater
than two years.
Useful Life: The estimated lifespan of a depreciable fixed asset during which is can be
expected to contribute to department operations.
Fixed Asset: A long-term tangible piece of property that a department or firm owns and
uses in its operations.
REFERENCES
147.06.06.001, Purchasing and Contracting
Control Number:
114.03.03.021
Version:
1.0
Title:
Purchasing Card

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Idaho Department of Correction
IDOC Data Sensitivity Classification - L3 Restricted
Department of Administration IDAPA Rule 38.05.01
Idaho State Procurement Act, title 67, chapter 92, Idaho Code.
Statewide Indirect Cost Allocation Plan
State Board of Examiners’ Travel Policies and Procedures
IDOC Purchasing Card Manual
Request for New P-Card User
Cardholder Purchase Card Agreement
Work Group Card – Cardholder Agreement
P-Card No Receipt Form
Federal regulations relating to the Statewide Indirect Cost Allocation Plan

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