Quarterly Purchasing Card Administrators’ Meeting
Wednesday, February 9, 2011 – 8:30-12:30
HSMV Auditorium, Neil Kirkman Building
AGENDA
Introductions
Outstanding Items
 ITN Update
 National Association of Purchasing Card Professionals Membership Update
 Tolls and Fees Update (includes presentation by Lisa Wilkerson, DOT)
 PCard Copies by Hotels
 Need for Both Monthly and Cycle Limits
 MRE Training
 Financial Disclosure
New Items
 Bureau of Accounting Issues

o
Statewide Vendor File
o
1099s
o
3%
o
Third Party Billing
“Zero Balance” Invoices and Other Receipt Requirements (Included with Charge Reviews)
 Charge Reviews
o Statutory Authority/Justification
o Allowable Expenses
o Documentation Requirements
 Reports for Agency PCard Administrators’ Management
 Status of Plan Reviews
o Rep Letters
 Tax-Exemption Renewal
 Travel Insurance Benefits
 Disapproval Code for Disputes
 Decline Reports
 Vendor Issues
o Office Depot/Staples requesting card numbers
o Best Buy Best Practices
 Clips
Quarterly Purchasing Card Administrators’ Meeting
Minutes
Wednesday, February 9, 2011 – 8:30-11:30
HSMV Auditorium, Neil Kirkman Building
Facilitator: Marie Walker
 Introductions
Marie Walker introduced:
Bureau of Auditing staff, including Mark Merry, Cheri Greene, Lee Rayner,
and Michelle Oliver.
Bank of America (BOA) staff, Kristen Harrison and Evan Tullos. Note: All
BOA concerns and issues still need to go through Marie. This meeting
was an opportunity to enhance communication among all parties.
 Outstanding Issues
1. Invitation To Negotiate (ITN) Update – The current agreement with BOA
has been extended until 2013 (Amendment 10); however, the extension can
be terminated earlier. The ITN team is still negotiating with the finalists.
2. National Association of Purchasing Card Professionals Membership
Update – DMS is taking the lead on this issue. If DMS joins the Association
as the primary member, other state agencies and local governments may join
as associates at a reduced rate. Marie will follow up with DMS.
3. Tolls and Fees Update (presentation by Lisa Wilkerson, DOT)
Lisa Wilkerson provided slides to Agency Administrators. The slides will be
posted to the PCard website in the near future.
Open road tolling video (click on tv screen appearing at the right of the screen
on the following link):
http://www.floridasturnpike.com/all-electronictolling/about.html
Receipt system for Highway Tolls Administration video.
http://www.htallc.com/Receipt_Request.aspx?rental=208
Additional discussion regarding Tolls and Fees:
a. Transponders supplied by each agency are recommended in order to
avoid paying the convenience/administrative fees and higher toll charges.
b. When replenishing a transponder‘s balance, the agency should print out
where the tolls were charged for that transponder and attach to the PCard
receipt.
Quarterly PCard Administrators’ Meeting
February 9, 2011
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4. PCard Copies by Hotels – DFS and DOR are at an impasse. DOR
continues to require hotels to make copies of the PCard to support the tax
exemption. This item is off the agenda unless something changes.
5. Need for both Monthly and Cycle Limits – According to the FLAIR
personnel in DFS‘ Division of Information Systems, both ―monthly and cycle
maximum amounts are required.‖ Only the ―monthly and cycle transactions
can be left at zero, which equates to unlimited.‖
6. MRE Training – The FLAIR Enterprise Education staff are still developing the
introductory class for PCard.
Financial Disclosure – Agency Addressed Memo is working its way through the
approval process. (Note: Agency Addressed Memo #21, (2010-2011),
Purchasing Card Financial Disclosure Requirements was issued February 9,
2011.) The form can be accessed at the following website:
http://www.ethics.state.fl.us/
7. Third Party Vendors – Agencies should use the Third Party Vendor‘s FEID
in the Vendor ID field and capture the vendor‘s name the agency is doing
business with in the description and/or commodity description fields. The use
of PayPal is discouraged; however, it is acceptable if no other options are
available.
 New Items
1. DFS, Bureau of Accounting Issues - Debbie Evans
a. The Feds have postponed the 3% withholding requirement on payments
of $10,000 or more for commodities or services for PCard purchases for at
least 18 months. (The PCard portion has been postponed - not the 3%
withholding requirement for other purchases.)
b. Beginning January 1, 2011, Bank of America (the PCard provider) will be
responsible for preparing 1099s for the purchases the State of Florida makes
using a PCard.
i. Agencies do not need to collect Form W-9 from PCard vendors
anymore as an electronic methodology is being implemented
ii. Agencies still need to obtain the correct Tax Identification Number (TIN)
to:
o maintain the integrity of the Statewide Vendor File
o be consistent when there are other purchases from the vendor
that are not PCard
o report correctly on the Sunshine Spending Website
(transparency)
iii. DFS receives many requests to help find a TIN for a vendor. Here are
some helpful tips:
Quarterly PCard Administrators’ Meeting
c.
i.
ii.
iii.
iv.
v.
vi.
d.
i.
ii.
iii.
iv.
v.
vi.
vii.
February 9, 2011
Page 3
o Contact the source that provided the service and ask for the
vendor‘s payroll or tax section
o Ask for the Tax Identification Number used to report payroll taxes
and income tax to the IRS
o If their corporate office pays the taxes, ask for the phone number
to the corporate office
DFS is developing an electronic Substitute Form W-9
Has additional business designations than on our current Substitute
Form W-9 needed for the 3% withholding requirement
Will require vendors to complete this new form before creating purchase
orders or payments for commodities or services.
Will encourage the PCard vendors to register electronically
The K-vouchers will be exempt from this requirement.
The current Substitute Form W-9 will be obsolete
An Agency Addressed Memorandum will be sent out the day the
website goes live (towards the end of February)
New vendor file enhancements
Agency Addressed Memorandum #20 dated 02/07/2011 concerning the
Client Vendor conversion and Statewide Vendor File enhancements.
(Includes contact information)
http://www.myfloridacfo.com/aadir/aam/aam2011.pdf
Removed PCard (PC) indicator
Added a ―Payee‖ designation for entities not providing services or
commodities
Allows agencies to add vendors that have not provided an FEIN or SSN
with a prefix ‗N‘ (After due diligence trying to obtain the correct TIN)
The nine digit vendor id following the ‗N‘ prefix will be systematically
assigned
DFS will still assign the vendor ID for foreign vendors
Agency Addressed (No. 19, 2010-2011) dated 01/21/2011 indicates the
training workshop schedule.
Additional discussion regarding Statewide Vendor File:
a. The PF1 key for Vendor # in the PCM does not populate the ―dba‖ name.
For example, Highway Toll Administration should have a dba Avis
Rentacar Tolls. Debbie suggested adding a seq. 02 for the vendor
including Avis Rentacar Tolls to Line 1.
b. The confidential indicator is automatically included for vendors added
through MFMP. Agencies can request DFS to remove the indicator.
c. Agencies should not use BOA‘s FEID when vendor‘s FEID is not
available, especially for object codes listed in green on the State Standard
Expenditure Object Codes list.
Quarterly PCard Administrators’ Meeting
February 9, 2011
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d. The Vendor File Group will assist agencies in finding the correct FEID. If
the FEID cannot be determined, an agency should add the vendor to the
statewide vendor file using the ―N‖ prefix. (The Statewide Vendor File
Group will monitor the use of ―N‖ numbers.)
e. Kristen Harrison (BOA) will ask the bank‘s developers how/what the bank
can do to help with determining vendor FEIDs.
2. Charge Reviews – DFS will be performing more charge reviews. If the
requested information (policies, procedures, statutes, etc.) apply to many
purchases, DFS will file the copy provided to prevent from asking for it again.
During the reviews, DFS has noticed a need for further explanation of the
following subjects:
o Statutory Authority/Justification – When DFS request authority or statutory
authority, it must be State of Florida statute. An agency must have express
or implied authority for a purchase.
o Allowable Expenses – Reference Guide for State Expenditures is an
excellent source to determine allowable expenses. The Reference Guide
and CFO Memos carry the authority of rule.
o Documentation Requirements
The slides related to this discussion were provided separately and will be
posted to the PCard website.
Additional discussion regarding Charge Reviews:
a. Some agencies do not allow last 4 digits of card number to be included on
documentation. An indication the purchase was paid by a credit card is
sufficient.
b. Receipt and Invoice requirements were discussed. For the most current
guidance, see the Reference Guide for State Expenditures being released
March 2011.
c. PCard is a method of payment, not an exception to purchasing rules.
d. Advance payments must comply with requirements contained in the
Reference Guide for State Expenditures.
e. DFS will continue to perform post audits, from time to time.
3. Reports for Agency PCard Administrators’ Management – These reports
are needed to ensure internal controls are being met. DFS is working to
determine what information needs to be included on the reports, who needs
access to them, and how the reports will be distributed.
4. Status of Plan Reviews – DFS is working on reviewing the agency plans
received with last years‘ Representation (Rep) Letters.
o Rep Letters - DFS plans to request the Rep letters annually; however, this
year‘s request will be postponed due to new agency heads and the delay in
Quarterly PCard Administrators’ Meeting
February 9, 2011
Page 5
reviewing the agency plans included with last year‘s Rep letters. Agencies
requested a workshop prior to receiving the next Rep Letter, and DFS
agreed.
5. Tax-Exemption Renewal – DFS has contacted DMS regarding the expiration
of the current Tax Exempt Certificate (May 2011), as it is DMS‘ program.
DFS will post the new certificate (full-size and wallet-size versions) on the
PCard website. The same tax-exempt number will be issued. (NOTE: The
certificate has been issued and will be posted on the PCard website early in
May.)
6. Travel Insurance Benefits – There is no ―death while traveling‖ coverage
included with the PCard.
7. Disapproval Code for Disputes – DFS received a suggestion for a new
disapproval code to be created strictly for PCard charges being disputed, in
order to differentiate those disapprovals from others coded as 081. At this
time, FLAIR changes cannot be made due to other projects.
8. Decline Reports – Zeros and dashes are appearing in the amount fields of
the Decline Reports. According to BOA, these values depict address
verification by the merchant, not valuable data, such as: restricted blocked
MCC, over credit limit, or other reasons to monitor a cardholder‘s usage. The
agency administrators were asked how they felt about DFS not including
these entries on the weekly Decline Reports. To meet the various needs of
agency administrators, records with zeros and dashes will be included at the
end of each report.
Agency administrators have noticed recently that charges are being declined,
but later appearing in FLAIR as a valid charge. Marie asked the
administrators to submit specific details of these occurrences and she will
follow-up with BOA. (NOTE: Based on research after the meeting, some
issues are being caused by merchant bank issues—not BOA. In those cases,
the merchant must take action to resolve the issue.)
9. Vendor Issues– Office Depot and Staples have recently requested lists of
cardholders and account numbers from agency administrators. The state
contract does not require the vendors to maintain a list of cardholders and
account numbers.
o Office Depot – To receive the state contract prices, cardholders can either
register the card on Office Depot‘s website or request an Office Depot
Store Purchasing Card which can be used for identification purposes.
o Staples – DEP noted that Staples was not able to manage all of the
agency cards under one account, so the agency could capture the costs of
the agency.
Quarterly PCard Administrators’ Meeting
February 9, 2011
Page 6
o Best Buy – Company account manager stated that in order for a state
agency to receive contract prices related to Contract Number 880-000-091, the cardholder should order items via the Best Buy website or the
dedicated toll-free number (866-214-2754) prior to picking up the items at
the store.
10. Clips – DFS has boxes of binder clips and paper clips, which were received
from the agencies on vouchers, etc. Marie offered to share the clips with the
agencies.
11. Questions
o Records Retention requirements – five years (original documents or
scanned images)
NOTE: Some topics were discussed in a different order than presented
here for the convenience of the guests.
CHARGE REVIEW
CONCEPTS
Allowable?
– State Laws
– State Rules
– Reference Guide for State Expenditures
– Federal Laws, Rules, and Regulations
Ask – Can the funds be used in this manner?
Allowable?
 Attorney General Opinion #078-101 - states
an agency must have expressed or implied
statutory authority to expend state funds.
 An agency cannot delegate to a provider an
authority the agency does not possess. If an
expenditure is unallowable for an agency, it is
generally unallowable for the provider.
(If the law does not say that you can, then you cannot.)
Allowable?
Questionable Expenditures:
•
•
•
•
•
•
•
•
•
•
•
•
•
Candy
Alcohol
Banquets
Decorations
Greeting Cards
Gift Cards
Lobbying
Personal Cellular
Telephones
Flowers
Office Parties
Coffee Pots
Microwave Ovens
Refrigerators
•
•
•
•
•
•
•
Fund Raising
Promotional Items
Entertainment
Refreshments
Fans
Portable Heaters
Meals not in accordance
with Section 112.061, F.S.
Note: some of these items
may be allowable with
statutory authority.
Justifiable?
• Necessary--Required to provide services.
• Reasonable--Sufficient for intended purpose.
•A prudent person would come to the same
decision under similar circumstances.
Requires professional judgment.
Justification should be documented.
Ask - Can I defend this purchase?
Allowable?
Reasonable?
Justification for Purchase of the following products and associated Florida Statute:
Digital SLR Camera Canon 60D ($999.00)
Canon EF 70-300mm f/4-5.6 IS USM Lens for Canon EOS SLR Camera ($547.11)
BEAR MANAGEMENT
One of my chief responsibilities is management of human-bear conflicts.
Florida’s Endangered and Threatened Species Act (s. 379.2291, F.S.) states
that the Legislature recognizes the wide diversity of fish and wildlife within
Florida and that it is the policy of the State to conserve and wisely
manage these resources, with particular attention on species defined as
endangered or threatened. State-listed as threatened, Florida Black Bears
are carefully monitored and conflicts with humans are taken very
seriously. My staff and I trap and relocate approximately 30 bears and
converse with more than 500 citizens, more than most in the NW Region.
Our goal is use the camera to document each aspect of our management
duties (trapping, relocating, hazing, site visits) so that we might impart the
knowledge we have gained to new and current employees. The Canon
60D is the least expensive camera that still provides the
desired video and photo quality necessary for tutorial
production.
Documentation Requirements
• Preferred: Receipt
• Optional: Document or Combination that
Provides:
– Same information as a receipt (detailed
information about goods or services received)
– Clear evidence goods or services were received
– Payment date
– Indication paid by PCard & last 4 digits
Example 1
Example 2
Example 3
Example 4
Rental Car Toll Charges
Quarterly Purchasing Card
Administrators’ Meeting
Wednesday, February 9, 2011
8:30-12:30
1
Rental Car Toll Charges
•Rental car companies have been using toll by plate (formerly
referred to as PlatePass) for over two years
•In 2011, Florida's Turnpike Enterprise is moving forward with
implementing all-electronic open road tolling
•First conversion to all-electronic open road tolling happens on
February 19, 2011 in South Florida
http://www.floridasturnpike.com/all-electronictolling/about.html
2
Rental Car Toll Charges
•Most rental car companies participate in a toll by plate program,
but we are going to talk specifically about Avis
•Avis program is automatic
•There is no “opt out” provision
•The only way to not participate is to use a transponder or pay cash
(IF AVAILABLE FOR THE ENTIRE ROUTE)
3
Rental Car Toll Charges
•Cameras take a photo of the rental car's license plate as it goes
through the high speed toll lane
•The system filters out transponders
•The system sends a bill for the tolls to the rental company's tolling
program vendor
•Avis’ tolling program vendor was PlatePass, but their new company
is called Highway Toll Administration (HTA). They do business as
AVIS RENTACAR TOLLS.
4
Rental Car Toll Charges
• HTA collects the toll plus applicable service fees from the customer's
credit card, and pays the toll to the road agency.
• The service fees are retained by HTA, not the toll road.
5
Rental Car Toll Charges
• $2.50 per day up to $10.00 even if you only use one toll booth the
entire trip
• Cash is a way to opt out, but ONLY if cash is an option for the
entire trip
• If you are traveling from Orlando to Miami and you hit the all
electronic toll road, you will be charged the administrative fee for
the entire trip
6
Rental Car Toll Charges
• Charges post approximately two weeks after rental car is
returned
•The charges post using the vendor name AVIS RENTACAR TOLLS
http://www.htallc.com/Receipt_Request.aspx?rental=208
7
Rental Car Toll Charges
8
Rental Car Toll Charges
9
Rental Car Toll Charges
10
Rental Car Toll Charges
•If you are billed by the rental car company, because
you did not have the transponder mounted properly…..
11
Rental Car Toll Charges
• Don’t hold it in your hand
• Make sure the batteries are fully charged
• Transponders don’t last forever, if it is over 10
years old…you may need a new one.
• If all that fails and your transponder does not
work, please contact SunPass Customer Service
Center: 1-888-TOLL-FLA (1-888-865-5352).
12
Rental Car Toll Charges
•If you are billed, because you did not have a
transponder or pay cash…..
DRAFT LANGUAGE FOR DFS REFERENCE GUIDE
Convenience fees – Tolls
The agency may pay the convenience fee related to a rental car
transponder only if the following conditions are met:
1. an agency supplied transponder was not available to the traveler
2. the toll was paid at a toll plaza that did not accept cash
Documentation must be maintained in the agency’s file to support
the payment of the convenience fee.
13