Mississippi Department of Education
Office of Accounting
Purchasing Division
Small Purchase Procurement Card Program
Policies and Procedures
Introduction
Section 31-7-7, Mississippi Code of 1972, Annotated authorizes services of the Small
Purchase Procurement Card Program for the State of Mississippi. The program, which is
an alternative method of purchasing, will provide needed resources in a timelier manner.
The program will reduce administrative costs associated with small purchases; small
purchases determined to be under $3,500. The traditional process of requisitions, pricing,
purchase orders, invoicing, payment vouchers and the issuance of checks to multiple
vendors will be dramatically reduced.
The Small Purchase Procurement Card Program will place the responsibility of prudent
and necessary purchasing practices in the hands of the individual Cardholder, Supervisor,
Division Director, Bureau Director, and Associate Superintendent.
Documentation and controls governing the user of the procurement card have been
designed to ensure the safeguarding of assets and compliance with State and Agency
regulations, policies, and procedures. Failure to comply with the Department of
Education’s established policies and procedures, when using the procurement card, would
be ample cause to revoke the card and terminate the cardholder privileges.
Small Purchases Procurement Card Objectives
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To provide staff with a convenient, alternative and efficient way to purchase lowdollar or small purchases without the need for a requisition or purchase order.
To reduce the costs, paperwork and processing time associated with small purchases.
To ensure that the Mississippi Department of Education is not liable for unauthorized
and inappropriate purchases made by cardholders.
To ensure timely payments to merchants and the banking institution.
Small Purchase Procurement Card Background
To ensure that the procurement card is used for specific purchases within specific dollar
limits, several unique controls have been developed for this program that do not exist for
a traditional credit card.
The credit card is a VISA card. The Citibank issues the credit card.
Citibank will provide services for governmental entities making small purchases.
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Small Purchase Procurement Card Background
(Continued)
The card will bear the individual’s name, account number, expiration date and the
Agency name. The card may bear the cardholders job title. The individual cardholder
will not require a credit check.
Cost of the Small Purchase Procurement Card
The Agency nor the cardholder will be charged an annual fee for maintaining a credit
card account. There is no Citibank annual fee.
Policies
These policies are the minimum requirements for use of the Small Purchase Procurement
Card Program. Individual offices may implement more stringent or additional
requirements. However, the Accounting Office will not monitor the more stringent or
additional requirements. The office will be responsible for monitoring their additional
requirements.
Training
Cardholders will be trained by the Office of Accounting, Purchasing Division on how to
use the card, record keeping and reporting on the procurement card. Training will occur
prior to receiving the card. A document certifying that the cardholder received training
and that the cardholder understands polices and procedures is required prior to issuance
of the card. Cardholders will be required to sign a statement of training.
As new cardholders are established, group training or one-on-one training will be
provided. Additional training or retraining may be scheduled, if deemed necessary.
Should a group not materialize, training will be provided on a one-on-one basis.
Purchasing Authority
The procurement card is to be used for purchases, which are bona fide needs of the
Mississippi Department of Education. Personal purchases charged to the card are
prohibited and will be considered a violation of the agency’s policies and procedures.
Should an employee use the procurement card for personal purchases, the card will
immediately be revoked, without future reinstatement. Reimbursement of the cost of non
bona fide agency purchases will not be considered a correction to a violation of the
policies and procedures.
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Cardholder Spending Limits
Each cardholder is authorized a maximum dollar amount for each daily purchase, single
purchase, and a total for all purchases made within a given billing cycle (30 – Day Limit.)
Department heads may establish lower limits.
Each time a cardholder makes a purchase using the procurement card, these limits are
verified. The vendor’s authorization to approve the purchase will be declined should the
amount exceed the established limits.
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Single Transaction Limit – not to exceed $3,500 with a point of sale terminal
Single Transaction Limit – not to exceed $50 without a point of sale terminal
Daily Spending Limit – not to exceed six (6) purchases per day. The six (6) shall not
exceed $3,500 for each transaction or $21,000
Monthly Spending Limit – not to exceed $30,000
Other Spending Limits
In order to promote cost effective purchases for specific items, we have imposed the
following spending limits.
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Binders for Planners - $85
(Note: The agency does not pay for personalization of binders. Binders remain the
property of the Department of Education.
Briefcases (leather, nylon or ballistic) - $125
Franklin Covey Binders in excess of $85.00
Franklin Covey Briefcases in excess of $125.00
Internet Spending Limits
Purchases made from the Internet must follow all purchasing policies and procedures.
We have imposed a $3,500 limit on purchases made from the Internet. See question three
(3) under the Frequently Asked Question Section of the policy and procedures, page 16.
Procurement Responsibilities
The Agency Director of Accounting is responsible for:
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Approving cardholder applications as recommended by Purchasing Director.
Approving cancellation of cardholder privileges.
Reviewing of monthly and annual reports.
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The Purchasing Director is responsible for:
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Reviewing cardholder applications for completeness, reasonableness of limits and
recommends applications for processing.
Acting on the Director’s request, to review and process requests for changes to
spending limits, blocking, card cancellations as well as other administrative tasks.
Communications with the banking institution on issues related to the program as
required.
Maintaining management reports by agency, by office, by cardholder as distributed
from the banking institution.
Receiving the procurement cards from the banking institution for safekeeping and for
distribution to the cardholders.
Maintaining reports of all applications, cards issued and cardholder agreements.
Providing training to new cardholders.
Assisting Office Directors and Cardholders in the operation of the small purchase
procurement card program.
Updating program documents, policy and procedures, web page and reference guides.
Requesting and assist in monitoring and auditing of the program as required.
Serving as liaison between Office of Purchasing-DFA and the financial institution.
The Associate Superintendents and Office Directors are responsible for:
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Identifying or designating employees who require a card.
Appointing the Card Coordinators.
Ensuring that all transactions and transaction logs are reviewed and approved,
verified, signed, dated, by the card coordinator.
Ensuring that statement and transaction logs are completed and forwarded within
three (3) working days of receipt to Purchasing.
Authorizing changes in card spending limits or blocking.
Ensuring that the appointed Card Coordinators and Cardholders attend training on the
small purchase procurement card program prior to implementing the program.
Authorizing new card applications, cancellations, and advising the Purchasing
Director of cardholder transfers and terminations.
Setting the upper limits per transaction and monthly limits for each cardholder in their
office. Limits may vary between cardholders.
Exercising discipline in cases of misuse and advising the Purchasing Director to
revoke the card.
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Cardholders Responsibilities
The cardholder shall:
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Assure that the commodities purchased are required for bona fide government
purposes.
Assure that the prices paid are fair and reasonable.
Notify the merchant that the purchase is being made in the name of a government
entity, which is exempt from state and local taxes.
Assure that a list of the commodities purchased (either in the form of a detailed sales
receipt or an order description) is reviewed and confirmed by the cardholder.
Assure that all commodities are received (no back orders allowed).
Assure that state contract commodities are purchased only from the state contract
vendor at or below the state contract price.
Assure that purchases are within the limits set by the individual agency and available
budget authority.
Assure that no purchases are made from hotel, motel, or restaurants.
Assure that no cash advances are made with the card.
Upon receipt of the monthly statement, the cardholder shall review all charges to
assure accuracy, complete applicable dispute documents, reconcile the statement with
originals of receipts and order logs, and approve and sign the statement.
Forward the statement, originals of receipts, logs, and dispute documents to the
appropriate official within the agency, the coordinator, according to agency policy.
This should be done within three (3) days after receipt of the statement.
Attend training on the small purchase procurement card prior to using the card.
Sign and date a statement of training, indicating the date of training and that the small
purchase procurement card policy and procedures were demonstrated as hands-on
training. Signature also certifies that the cardholder is personally liable for purchases
made that do not comply with the established procedures.
Contact his/her purchasing card coordinator, and the Director of Purchasing for
updates, changes, or transfers.
Turn in credit card and documentation on or before the last day of work due to
resignation, termination, or retirement.
Office Card Coordinator Responsibilities
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Coordinate the card program at the Division/Office level.
Ensure that applications and change request forms are completed and approved.
Ensure that cardholders have appropriate signing and commitment authority before
being issued a card.
Maintaining original Card Coordinator, Office Director, Associate Superintendent
and cardholder “sample of signature” on file.
Train and assist with the use of the card.
Ensure that cardholders sign the Cardholder Agreement.
Collecting and destroying cancelled cards.
Advise the Director of Purchasing of merchants who do not accept the card or who
have refused to recognize the sales tax exemption for a state agency.
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Office Card Coordinator Responsibilities
(Continued)
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Ensure the cardholders transaction logs and information is complete and accurate.
Follow-up with cardholder and merchants when disputes have been filed or reported.
Obtain required signatures on logs.
Forward reconciled approved logs, statements, original receipts, and original invoices
to Purchasing for review within five (5) working days of receipt of credit card
statement. The cardholder has three (3) working days to review the statement. The
Coordinator has two (2) working days for review. The reconciled statement with
supportive documentation shall be submitted to Purchasing within five (5) working
days of receipt of the credit card statement.
Cardholder Responsibility/Security
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The cardholder is to safeguard the credit card and account number as she/he guards
personal credit information.
The card will bear the cardholder’s name and may only be used by that cardholder.
No other person is authorized to use the card.
The card shall not be loaned to anyone.
The purchasing card should be kept in an accessible, but secure location.
The account number shall not be posted or left in a conspicuous place.
Should the cardholder take extended leave, the individual delegated with procurement
authority, as a back up, may be issued a card for the duration of the absence.
Use of the Small Purchase Procurement Card
The card is to be used only for Department of Education bona fide purchases as necessary
to meet the goals of agency.
Conditions for Use
Even though the small purchase card program does not require the cardholder to get
quotes or seek competition, it is good business practice to seek competition and the
lowest price within the parameters of quality, quantity and delivery.
Splitting Purchases
Cardholders shall not split purchases into multiple purchases when the total purchase
price would exceed the transaction limit.
Monthly Purchase Log
Cardholders must maintain a log of their purchases. A new log sheet must be established
at the beginning of each month or billing cycle. Record a summary of each item
purchased on your log sheet at the time and date of purchase. E.g. list office supplies as
the description when several office supplies are purchased. Please use a log for each
budget used.
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Vendor Acceptance
After you have determined the item needed, determine if the item must be purchased
from contract vendor. If not, make sure the vendor accepts the VISA card. Call or visit
the vendor and place your order. Give the vendor your card number and expiration date.
Exercise precautions to avoid the risk of unauthorized use of the card.
State Contract Vendor/Purchases
Items listed on the state contract can only be purchased from the contract vendors as
listed on the contract. However, there is a dollar limit exception. If the total purchase
dollar amount is less than $25.00, the purchase can be made from any source. See the
vendor account information listing for account numbers.
The individual cardholder will be liable for payments to VISA for contract items greater
than $25.00, which are purchased from vendors other than the contract vendor.
Local State Contract Vendors
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A to Z Paper Company
Athens Paper Company
Better Marketing Konnection
Barefield Office Products
Business Interiors
Grainger
Jackson Paper Company
MAC Papers
Stuart C. Irby
Food for Business Meetings
Meals may be furnished at meetings, which conduct business of the Department. The
following criteria must be met:
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The meeting encompasses a normal meal time hour and it is determined that business
will be conducted during the meal time or it is determined it is more efficient to
provide food on-site rather than leave the premises
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The meeting lasts at least two & one-half hours before and at least two & one-half
hours after the meal time
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The majority of the attendees are not state agency employees; agenda of the meeting
must accompany the request for payment
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Food for Business Meetings
(Continued)
Prior approval to purchase food for business meetings, by the appropriate
superintendent’s management team member, must be obtained and must accompany the
monthly log. Normal processing, as required by MDE contracting policies and
procedures, must be followed.
Cardholders are authorized to use the Visa Credit Card to purchase food for meetings.
The credit card can be used at grocery store chains, restaurants, and caterers. Prior
approval from the purchasing division is required for restaurant and catering purchases.
You may contact purchasing after the selection of food is made. Purchasing will need the
merchants name, your credit card number, and amount of the purchase. Listed are the
merchants from which you can purchase refreshments. The list is not all inclusive. WalMart Super Center, Kroger, Brookshire’s i.e., Donuts, beverages, candy, cookies, etc.
You may purchase from a caterer. E.g. box lunches or catered meals. E.g. Jason’s Deli,
McAlister’s, Room Service, Broad Street Bakery, Chimneyville, George’s Catering,
Centre’ Deli. Attach a copy of your director’s written approval to purchase food for a
business meeting to the monthly log.
Pick Up and Delivery of Orders
When items are picked up from the vendor or delivered to your office, keep all
documentation pertaining to the purchase such as sales receipts or packing slips. This
documentation must be maintained and forwarded to the Office of Accounting for record
retention and monthly reconciliation to the credit card statement.
Central Receiving/Delivery of Credit Card Orders
The small purchases procurement card eliminates the need to issue a purchase order;
therefore, Central Receiving will not have a purchase order on file to verify the items
ordered and delivered by credit card. The shipping label should list the cardholders
name, room number and the words “Credit Card Purchase” or “VISA.”
Central Receiving will only be responsible for verifying that the contents shipped or
delivered agree to the packing slip. There will not be a purchase order. It will be the
responsibility of the cardholder or cardholder’s backup to verify that the goods
received is what was ordered. The cardholder will be required to check quantity, price,
total, and condition of goods. Central Receiving will deliver the order, but will only be
able to verify contents against the packing slip, if the order includes a packing slip.
The cardholder is responsible for contacting the vendor if there is a discrepancy. Should
a discrepancy occur, the cardholder shall contact the vendor immediately.
If you order items and want to ensure that your order is delivered to the right location,
advise Central Receiving that you placed a credit card order and you are expecting
merchandise. Give Central Receiving the vendor’s name, vendor’s order number
anticipated delivery date, and the name of the carrier (UPS, Fed Express, US Post Office,
Airborne). The notification can be made by e-mail to Mike Byrd in Central Receiving.
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Making a Purchase by Telephone
When making a purchase:
 Always make sure you have the current price, when ordering from a catalog
 Always ask for the discounted price given to state agencies
 Confirm that the vendor agrees to accept VISA
 Instruct the vendor to include on the shipping label and on the packing label
 Cardholders name and their backup person’s name e.g. Carol Spann/Val Black
 Cardholders telephone number
 Complete delivery address, including room number and building name
 The words “Credit Card Purchase” or “VISA”
 The Vendor's order number
Making a Purchase by Fax
When making a purchase:
 Always make sure you have the current price, when ordering from a catalog
 Always ask for the discounted price given to state agencies
 Confirm that the vendor agrees to accept VISA
We recommend that you use the Small Purchase Visa Credit Card Fax Order Form.
See the Appendix for the Fax Order form.
Missing Documentation
Should a cardholder not have supportive documentation (receipts, invoices, etc.) to attach
to the credit card statement, the cardholder is required to provide a Missing Document
Affidavit form. The affidavit will list the description of the item, date of purchase,
merchant’s name and why there is no supporting documentation. The Cardholder’s
supervisor must sign the affidavit. Should an employee file over three (3) missing
document affidavits per year, the card will be revoked.
Federal Employers Identification Number (Tax ID Number)
The Mississippi Department of Education's federal employers tax identification number
is 64-6000758.
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Sales Tax
Per Section 27-65-105(a) of the Mississippi Code of 1972, Annotated, the Mississippi
Department of Education is exempt from state sales tax. Review your invoices and cash
register receipts upon receipt. Make sure that the vendor does not charge you sales tax.
It is the responsibility of the cardholder to have the sales tax charge removed or credited.
The agency will not pay sales tax.
State Sales Tax Exemption Letter
The purchasing web page has a Sale Tax exemption letter from the Mississippi Tax
Commission posted. Click link to view the state sale tax exemption letter. The state of
Mississippi does not issue a Sales Tax Exemption certificate.
Customer Account Numbers or Tax Exempt Numbers
Some merchants require that we use an account number set up by the merchant, assigned
to the agency to be used to denote a government account. Listed are the merchants and
account numbers
-Books-A-Million
-Barnes & Nobels
-WAL MART
-Franklin Covey
-Office Depot
-Office Depot Contract Acct.
-Radio Shack
-Office Max
0008488342
6681787 (will accept a PO)
141522 (Sales Tax Exempt number on Wal-Mart Card)
309506
*0-34227787-8 (Sale Tax Exempt Numbers)
*24803472
01150100042633
0002-0341-7047-03
*Use both numbers when purchasing from Office Depot.
Prohibited Use of the Small Purchase Credit Card
Restrictions are placed on the following items. The card shall not be used for the
following: Any violation will result in revoking the card and disciplinary action.
Revoked cards will not be reissued.
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Computer accessories (as listed)
 Cables (Parallel)
 Switches
 Adapters
 Zip Drives
 Printers
 Mice
 Speakers
 Scanners
 Modems
 Ethernet Hubs
 Software, computer supplies and computer accessories
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Prohibited Use of the Small Purchase Credit Card
(Continued)
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Membership Dues
Registration
Subscription Renewals
Rental of any Items or Services
No cash advances (ATM Machines)
No equipment over $500 can be purchased
No furniture
Special Equipment items as listed:
 Weapons
 Cameras and camera equipment
 Tape Recorders
 Two-way radio equipment
 Typewriters
 Appliances – refrigerators, freezers, air conditioners, stoves, microwave
ovens, etc.)
 Televisions, VCR
 Lawn maintenance equipment
 Sterling silver
 Cellular telephone
 Major computer components
 Chain saws
 Air compressors
 Welding machines
 Generators
 Motorized vehicles
 Dictating equipment
 Antiques
Consulting Services
Furniture
Non business/Personal Items
Tax reportable services
Travel
Airline tickets and all related travel charges
Single purchases in excess of $3,500
Entertainment
Gasoline
Repetitive purchases to circumvent purchasing dollar limit thresholds
Out of country purchases
Utilities
Clothing (exception is children at MS Schools Blind and Deaf, limit of $25.00 for
each piece of clothing)
Frames (unless awards authorized by statute or recipients are non-state employees
or teachers)
Palm Pilots/PDA’s (equipment only)
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Back Orders
The back order of any purchase using the card is not acceptable. Goods purchased using
the small purchase credit card must be immediately available. No back orders are
allowed. Allowing back orders would mean that vendors are paid for goods that have not
been received. State statute prohibits paying for goods and services that have not been
received.
Record Keeping/Monthly Log
After a purchase is made, log it on the Small Purchase Card Log and attach the receipt,
Credit Card Fax Order Form and invoice for documentation of the purchase. The
Cardholder is responsible for verifying receipts to make sure that taxes are not charged.
The documentation will be used to verify purchases on the statement, the quantity, and
that a complete description are listed correctly. If a telephone order is placed, make sure
the shipping documentation is maintained. At the end of the monthly billing cycle, the
cardholder will receive a statement for the previous months transactions. This statement
must be reconciled. Upon receipt of the cardholder statement, please date stamp.
Reconciliation Due Date
Cardholders shall reconcile statements within three (3) working days of receipt. The
cardholder shall then pass reconciled statement to his supervisor and the office cardholder
coordinator for review. The supervisor must sign and date the reconciled statement. The
Office Coordinator will review the cardholder statement for accuracy, verify that all
procedures for credit card purchases were followed, check for appropriate signatures
signed by the card holder and supervisor, date listed and forward the statement to
Accounting, within five (5) working days of receipt in the respective office. The
cardholder has three (3) working days to review. The coordinator has two (2) working
days to review, for a total of five (5) working days in the respective office.
Upon receipt from the originating office, the purchasing agent will review the reconciled
statement each month for purchasing compliance. The purchasing agent shall sign, date
and submit the reconciled statement to Accounts Payable for payment.
Cardholder Employee Reconciliation Backup
The Cardholder’s supervisor shall serve as backup, if cardholder is out on leave, in order
to meet the five (5) working day reconciliation submission deadline to Accounting.
Credit Card Activity
Should a cardholder not have any purchasing activity for a particular billing cycle, no
Statement of Account will be generated for the cardholder. A Statement of Account will
be generated if adjustments for previously billed transactions are processed during that
cycle.
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Review and Reconciliation of Monthly Statement/Log
Each cardholder is responsible for reconciling purchases to the statement of account. At
the end of each monthly cycle, the financial institution will submit a monthly Statement
of Account to each cardholder. The Director of Purchasing will receive a master
statement of account, which will list all items purchased during the billing cycle.
Upon receipt of the Statement of Account, the cardholder is required to review the
statement, verify the purchases and reconcile each transaction to the monthly purchase
log. The cardholder shall resolve credit adjustments and sales tax charges. The
cardholder shall verify and match each transaction listed against the purchase log listing
of each purchase.
The Cardholder shall review the monthly statements and secure his/her supervisor’s
approval within five (5) working days of receipt. The Office Card Coordinator shall
forward approved monthly statements and appropriate logs and documents immediately
to the Office of Accounting.
Reconciling differences should be resolved prior to sending the statement to Accounting.
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See the section on missing documentation if you fail to attach documentation to the
reconciled statement.
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See the section on dispute resolution if your account has been incorrectly charged.
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Document on comments section of the small purchase log, or in written form any
discrepancies between the statement transactions and the purchase log.
Documentation should include description of item, date of purchase, vendor, and
reason that the documentation is lacking.
After the statement has been reconciled, the cardholder shall:
1. Staple original sales receipts, original invoices, original credit card slips and
any other documentation to the statement in date of purchase sequence.
2. Sign and date the statement and the monthly log. The cardholder signature
certifies that the items purchased are accurate and was made by the
cardholder.
3. Submit the Statement of Account and purchase log reconciliation to the
respective office purchase card coordinator for review and approval.
4. Submit the Statement of Account and purchase log reconciliation to the
cardholders supervisor for approval signature.
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Review and Reconciliation of Monthly Statement/Log
(Continued)
If purchased items or credits are not listed on the monthly statement, the Cardholder shall
RETAIN the appropriate transaction documentation until the next monthly statement. If
the purchase or credit does not appear on the statement within 60 days after the date of
purchase, the Cardholder or approving supervisor shall notify the Director of Purchasing.
Do not accept a refund in cash, gift card, or check format, only accept credits to the
cardholder account.
The approving supervisor shall verify the cardholder’s monthly statement and
purchase log for the following items:
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Original receipts, original sales tickets, original invoices for each purchase are
attached.
Verify that goods were received or services were performed.
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Verify that the cardholder complied with applicable procedures required for credit
card purchases.
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Verify that the cardholder’s Statement of Account and purchase log is reconciled.
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Submit reconciled statement and log to the Office of Accounting within five (5)
working days from first day received by the office.
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The approving Supervisor’s signature/approval of a Cardholder’s monthly statement
indicates that the Cardholder was authorized to make purchases and that the
purchases were made in accordance with the applicable procedures.
The Office of Accounting’s Purchasing Agent will verify that the reconciled
purchasing logs and cardholder statements agree to the master statements and
purchases were made in accordance to purchasing law. Any questionable reconciled
statements will be returned for adjustments. The cardholder shall resolve any
questionable documentation or make necessary adjustments prior to using the card for the
next billing period.
The purchasing agents will verify:
 Spending limits
 Adjust encumbrances
 Ensure that discounts are given for state contract items
 Type of items purchased
 Number of purchasing transactions per day
 Check for reasonable prices
 Non-charge of sales taxes
 Non-charge of back orders
 State contract items are purchased only from contract vendors, unless under $25.00
 Appropriate approval signatures
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Payment
After review for purchasing compliance by the Purchasing Agent, reconciled statements
will be submitted to Accounts Payable for payment within three (3) working days of
receipt of the statement from the respective office.
Accounts Payable will be responsible for reconciling the invoices to the statement
assigning object codes and processing the statements for payment within five (5) working
days of receipt from purchasing.
The Accounts Payable division will process one (1) check to VISA for the agencyconsolidated statement. VISA must receive payment within 45 days after the date of the
card billing cycle cutoff. Prompt payment is required in order to avoid finance/late
charges.
The total amount of the statement due shall be paid by the due date. Disputed purchases,
amounts, and credits will post to subsequent statements.
Disputes and Returns
It is the responsibility of the cardholder to handle disputes. In most cases disputes can be
resolved directly between the cardholder and the vendor. If the cardholder is
disputes a charge or has an unresolved issue, complete a Purchasing Card Dispute form
and include it with the monthly statement reconciliation.
If items or services procured with the credit card are found defective or in dispute, the
cardholder has the responsibility to return item(s) to the merchant for replacement or to
receive a credit on the purchase, or correction of disputed services rendered. If the
merchant refuses to replace or correct the faulty item/service, then the purchase will be
considered to be in dispute.
A disputed item/service must be noted on the cardholder’s Statement of Account. In
addition, the cardholder must complete a “Purchasing Card Dispute” form with
appropriate documentation attached. This form shall be forwarded with the statement to
the Director of Purchasing for adjustment with the banking institution. Once the banking
institution has been notified, the Director of Purchasing will forward the statement to
Accounts Payable for payment. The Director of Purchasing will notify the cardholder of
the action taken on disputed items/services. The vendor is required to resolve disputes
within 90 days of the receipt of a Purchasing Card Dispute form.
It is essential that the time frames and documentation requirements established by the
banking institution be followed to protect the Cardholder’s rights in dispute. Dispute
policies and procedures issued by the banking institution will be provided at the time
credit cards are issued to cardholders.
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Merchandise Returns
If an item is not satisfactory, received in damaged condition and/or defective, duplicate
order, etc., the cardholder should make contact with the vendor to explain the problem
and inquire about return policies.
If an item has been returned and a credit voucher received, the cardholder shall verify that
this credit is reflected on the monthly statement.
If items purchased by the use of the credit card are found to be unacceptable, the
cardholder is responsible for obtaining replacement or correction of the item as soon as
possible. If the vendor has not replaced or corrected the item by the date the cardholder
receives his/her monthly statement, the purchase of that item will be considered in
dispute.
Credits/Refunds
Refunds to cardholders account must be a credit to the account. Do not accept refunds or
credit in the form of cash or a gift card.
Lost or Stolen Credit Cards
If the card is lost or stolen, it is the cardholder’s responsibility to immediately notify the
bank. Call Citibank, commercial card customer service at 1-800-248-4553 (open 24
hours). Next notify the Director of Purchasing, your supervisor and the Office Card
Coordinator of the loss or theft.
The cardholder will be required to file a lost/stolen affidavit with the Purchasing Division
within five (5) working days. The affidavit will document the date of loss, any purchases
that the cardholder made prior to the loss and any other pertinent information. If the
credit card was stolen, attach a copy of the police report to the “lost/stolen” affidavit.
A new card will be issued to the cardholder upon completion of the required lost/stolen
card procedure. A card that is subsequently found by the cardholder or found and
returned to the bank after being reported lost shall be destroyed.
Cardholder Employee Termination or Transfer
Should a cardholder transfer from one internal office to another; the card shall be turned
in, account reconciled and the account closed. The new supervisor and Associate
Superintendent will request that the individual become a cardholder under his/her
authorization.
If the supervisor is unable to collect the credit card when the employee leaves, the
supervisor shall notify the Purchasing Division immediately and follow-up in writing
requesting that the credit card account be closed to prevent any purchases.
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Revoked Small Purchase Cards
Small Purchase Procurement Cards that are revoked will not be reissued to the employee.
Should a Supervisor or Director recommend revoking a card, please complete the
cardholder maintenance form. Upon completion of the cardholder maintenance form,
with the authorized signature, hand deliver the credit card and the maintenance form to
the Director of Purchasing.
Semi Annual Inventory of Credit Cards
Twice each year, December 15 and June 15, the Purchasing Division will provide a
listing of credit cards issued for each office’s employees. Each Office Coordinator shall
conduct a physical inventory of credit cards and provide a written report to the
Purchasing Division stating the results of the inventory. The report should include the
number of cards, name of cardholder, disputes, and activity needing changes or problems.
Budget and Expenditures
The Small Purchase Card program places the responsibility of purchasing in the hands of
the cardholder. Due to the credit card replacing the traditional purchasing process, which
included setting aside budget through the encumbrance of funds and issuance of a
purchase order, a purchase order is no longer required. Please note that purchases made
using the small purchase card do not reduce the budget until payment is made.
Offices must be aware that purchase orders are no longer required for credit card
purchases. Since credit card statements are one (1) month behind the purchase, payments
made or expenditures may not post to your budget until two (2) months later. Even
though your budget balance may appear high, credit card purchases will reduce budget
balances when payment is made to the financial institution.
Internal Budget Control
To assist the offices with budgetary control and to prevent the overspending of budget,
each office may encumber funds. The respective office will prepare a requisition to
generate one (1) purchase order per year, by fund, organization, and by major budget
category for contractual and/or commodities. The purchase order will be an estimate,
which will be modified for the second half allotment. The Office Coordinator will
determine the second half modification amount. Should an office over or under estimate
what they plan to spend, the purchase order can be adjusted.
Fiscal Year-End Purchases
Purchase orders established for budgetary control will be cancelled by the purchasing
division no later than June 15 of the fiscal year. Cancellation of the current fiscal year
purchase orders will free encumbered budget and assist officers with their year-end
budget analyzation. We recommend that purchases for the current fiscal year end June 15
each year. Purchases can be made by credit card after June 15 for emergencies; however,
offices will be required to track their budget during June each year. Purchases made in
June will use the current year’s charge codes. The cut off date for fiscal year end
purchasing on a credit card shall be June 15 of each year.
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Blanket Budget Obligation by Purchase Order
A procedure available to set aside budget is through the use of a blanket purchase order.
A purchase order (baseline) can be established for each respective office of the agency.
On the purchase order, we can encumber a specified amount by organization code for the
major budget categories of contractual (B) and commodities (C).
The function of this type purchase order is to set aside budget only. No expenditures will
be charged against the purchase order. Purchase orders established for budgetary control
will not be reduced without written authorization from the Office Directors. It will be the
responsibility of each office to analyze expenditures and decrease or increase the
purchase order. The monthly budget expenditure report can be used to determine
expenditures by category. Credit card purchases will be charged to object of expenditure
codes 61800 (contractual) and 62800 (commodities). The monthly budget expenditure
report is the Organization Budget Report, number A508.
Liability
The State of Mississippi will not accept any liability or financial responsibility for state
employee charges that have not been properly authorized
 Purchases that exceed the card limits specified.
 Purchases that violate the Merchant Category Code restrictions specified by
the Agency (blocked Merchants.)
 Purchases made for personal use.
 Purchases made which are not in compliance with the cardholder’s agreement
as stated in the current policy and procedures.
The individual cardholder will be liable for unauthorized purchases. The small purchase
credit card privileges will be suspended and the card revoked.
Credit Card Assistance
Should you need further clarification regarding the small purchase program, contact
Purchasing for further Assistance. Purchasing will set an appointment to meet with you.
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Frequently Asked Questions
1. Can I use the credit card to buy food for a business meeting?
Yes, however, prior approval from the purchasing division is required for use of
the VISA to purchase food.. You may purchase from Wal-Mart Super Center or
Kroger, and Brookshire’s e.g. Doughnuts, beverages, candy, cookies, etc. You
may purchase from a caterer e.g. box lunches or catered meals. Attach a copy of
your director’s approval to purchase food for a business meeting to the log.
Restaurants that cater box lunches are acceptable. E.g. Jason’s Deli, McAlister’s,
Room Service, Broad Street Bakery, Chimneyville, George’s Catering, Centre’
Deli, Campus Chefs.
2. Can I use the credit card to buy airline tickets?
No, all airline tickets are charged to the agency Business Travel
Account (BTA) Airline tickets can be charged to the employees
personal credit card and the employee can request reimbursement.
3. Can I use the credit card to purchase from the Internet?
Yes; however, make sure that:
 The Internet site is secure meaning that merchants use encryption
technologies for sensitive information. An algorithm is applied to data
converting it to an unreadable form.
 There is non-repudiation of receipt and delivery. You as a customer cannot
deny delivery.
 The Internet supplier is one that you know and trust.
 Print the e-mail order confirmation from the vendor and attach it to the log.
 Cardholder is in compliance with purchasing policy
 Contract items are ordered from contract vendors only.
 Review the Internet vendor for quality products.
 Review the Internet vendor’s return and satisfaction guarantee policy.
4. Can I use the credit card to purchase personal items for myself?
No, the small purchase card is to be used for bona fide needs of the agency.
5. How would an office modify or close out blanket purchase orders?
The Office Director shall prepare a written request indicating the amount of the
modification or the request to close the purchase order. Attach a copy of the
purchase order to the memo or e-mail
Or
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The Office Director may write a statement on a copy of the purchase order
indicating the modification amount or the request to close the purchase order
along with the Director’s signature and date.
6. How long does it take to replace a lost or stolen card?
A replacement card should be mailed to you within two (2) or three (3) working
days from report of loss.
7. If I change my name can I request a new card?
Yes, complete the Cardholder Maintenance form and send it to Purchasing.
8. How much does the Agency save by instituting a Purchase Card
program for small dollar purchases?
Research indicates that a purchase order costs anywhere from $50.00 to
$150.00 to process. Using a purchasing card can reduce that expense
substantially – sometimes as much as 90% - as well as produce timesavings
that can be reallocated to more productive activities.
9. Who within the agency should receive a Purchasing Card?
Anyone authorized by their Director who currently completes requests for goods.
Generally these employees perform the following types of jobs: administrative
assistants, shop foreman, maintenance crew. These are just a few examples.
There may be many other candidates not mentioned. As each office analyzes its
current procurement process, this is one area to investigate. Where do most of
your PO’s originate? Which employees generate the most PO’s? This type of
analysis will help you determine other appropriate staff to receive a card.
10. Implementing the Purchasing Card program within my office will
require considerable time and attention. I want to ensure that we do
it right the first time. What kind of guidance can you give me?
Put together a cross-functional team within your office to evaluate the
products, current processes, and impact to your office. Once the decision
to move forward is reached this team will remain in place to plan and
implement. Get and keep Associate Superintendent level of management
commitment. You are asking people to change their habits and will
naturally meet resistance. Associate Superintendent level management
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support will help overcome this obstacle.
11. I am concerned about unauthorized use of the card by my
employees. Should I be?
If your internal policies are structured properly you should not be concerned about unauthorized use. During the planning and implementation
stages, be sure that all the appropriate people are around the table. This
will ensure that policy dictates employee and management behavior. We
require that cardholders sign documents that outline the rules for use. The policy
covers terminated employees including processes for canceling cards
and securing the credit cards.
12. How many vendors will accept my company’s Purchasing Card?
VISA is accepted by over 3 million locations in the U.S. and over 13
million worldwide. However, we must purchase state contract items from
the contract vendor.
13. If vendors take regular VISA cards can they take my VISA
Purchasing Card?
Yes. Any vendor location that accepts Visa-branded cards is able to
accept a purchasing card.
14. State Contracts
What is a quick way to find or move within the state contract
document?
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Go to www.dfa.state.ms.us
Located on the left side of the home page, click Statewide
Purchasing
Click State Contracts
Click the contract catalog that you need, e.g. Office Supplies
Look on the menu bar and click the binoculars
The find drop down box will come up. Type in the name of item you need,
e.g. pads, click find
This will take you to the Office Supply Index Page. The item will be
highlighted, get the page number for the item, then scroll down to that page
number. The page for the item will come up
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15.
Then, proceed to look for the item you need
Allowable Purchases
Are diskettes allowable purchases on the procurement card?
Yes. You can purchase diskettes using your procurement card. See Prohibited
P-Card purchased for purchases that are not allowed.
16. Purchasing Process
Should vendor invoices come to requesting office for payment?
Yes. Invoices should come directly to accounting from the vendor for payment.
Should the requesting office receive an invoice, send the invoice to accounting.
Invoices for credit card purchases must be attached to the monthly log.
However, invoices may go directly to the special schools receiving department.
17. Vendor Set Up and Maintenance
If a vendor/contractor is not considered to be a consultant, does the
vendor/contractor need to complete the minority vendor form?
Yes. Each vendor/contractor that we employ will need to complete the Minority
Vendor Self Certification Form. Vendors/contractor shall check the appropriate
codes for both Minority Business Enterprise and Women Business Enterprise. The
Mississippi Development Authority tracts the data to determine that state agencies
demonstrate minority participation, the volume of minority participation and its
relation to federal funding. SPPC purchases do not require that vendor numbers be
set up.
18. Prohibited Purchases with the Small Purchase Procurement Card
Are there items that I cannot use the credit card to purchase?
Restrictions are placed on the following items. The card shall not be used for the
following: Any violation will result in revoking the card and disciplinary
action. Revoked cards will not be reissued.
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Membership Dues
Computer accessories (as listed)
 Cables (Parallel)
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Switches
Adapters
Are there purchases that I cannot use the credit card to purchase?
(Continued)
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Zip Drives
Printers
Mice
Speakers
Scanners
Modems
Ethernet Hubs
Software, computer supplies and computer accessories
Registration
Subscription Renewals
Rental of any Items or Services
No cash advances (ATM Machines)
No equipment over $500 can be purchased
Special Equipment items as listed:
 Weapons
 Cameras and camera equipment
 Tape Recorders
 Two-way radio equipment
 Typewriters
 Appliances – refrigerators, freezers, air conditioners, stoves,
microwave ovens, etc.)
 Televisions, VCR
 Lawn maintenance equipment
 Sterling silver
 Cellular telephone
 Major computer components
 Chain saws
 Air compressors
 Welding machines
 Generators
 Motorized vehicles
 Dictating equipment
 Antiques
Consulting Services
Furniture
Non business/Personal Items
Tax reportable services
Travel
Airline tickets and all related charges
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Single purchases in excess of $3,500
Entertainment
Gasoline
Prohibited Use of the Small Purchase Credit Card
(Continued)
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Repetitive purchases to circumvent purchasing dollar limit thresholds
Out of country purchases
Utilities
Clothing (exception is children MS Schools Blind and Deaf, limit of $25.00
for each piece of clothing)
Frames (unless awards authorized by statute or recipients are non-state
employees or teachers)
Palm Pilots
Franklin Covey Binders in excess of $85.00
Franklin Covey Briefcases in excess of $125.00
Franklin Covey Writing Pens and Pencils
19. Can I use my card to purchase furniture?
 No, contact purchasing for assistance.
20. Can I use my card to rent a van for moving service?
 No. Contact purchasing for assistance.
21. Are international companies required to complete W-9’s?
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No, international companies are only required to be set up as a vendor,
vendor maintenance form be assigned a vendor number, and complete
the minority certificate form. International companies are exempt
from completing W-9’s.
 International Individuals and contractors/consultants are not required to
Complete W-9’s. Set up as a vendor only.
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Small Purchase Card Log/Instructions
1. Enter Name/Month/Card Number/Office Name/Coding
2. Ensure All Information For Each Item Is Complete and Legible.
Date:
Vendor:
Description:
Total:
List the date the transaction was made.
List the name of the vendor where the purchase was made.
List a detail description of the item purchased.
List the total without taxes included.
3. Attach original receipts (In Date Order) to the Small Purchase Card Log.
4. Account Reconciliation
 Total all charges on the log. The total charges should equal the amount due on
your statement.
 If purchases appear on your record log but not on your statement (this may
happen due to the cut off date of your statement), list as reconciling items in
discrepancy section on the log, document these purchases on another log to be
used for the following month.
 If charges appear on the statement but not on your record log, verify the purchases
that were made by you, record these purchases on your log and request another
invoice from the vendor.
 If you have credits/returns or a dispute and inaccurate charges on your statement
contact the vendor and resolve prior to sending the log to Accounting.
5. Sign Form.
6. Cardholder’s supervisor or designated staff shall sign.
7. Forward log to Office Coordinator and on to Accounting within five (5) days of
receipt. This timeframe includes review by both, the cardholder and coordinator.
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Definitions/Glossary
Approving Supervisor – is the individual authorized to review and approve a cardholders
purchases and monthly statement.
Cardholder – the individual or employee who is issued a Procurement Card and signed
the Cardholder agreement. This person makes purchases on behalf of the agency
exercising prudent purchasing and maintains a Small Purchase Card Activity Log of all
transactions.
Card Administrator – the individual designated by the Director of Accounting to be
responsible for the administration of the Small Purchase and Procurement Card Program.
Office Card Coordinator – the division/office employee who has been designated by the
Associate Superintendent to be responsible for the coordination of the program on behalf
of the respective office.
Credit Card Company – the banking institution contracted with by the State of
Mississippi to provide governmental agencies procurement card services.
Small Purchase – the dollar amount limitation of purchasing authority delegated to a
cardholder, which does not require written quotes/bids. The current limit is $3,500.
Individual offices may further restrict limitations on small purchases as necessary.
Contract Vendor – a business from which the State of Mississippi has contracted with to
provide goods at a discounted price with appointed delivery schedule to meet the
immediate needs of state agencies under the provision of this program.
Vendor – a business from which the cardholder is purchasing goods and or services under
the provision of this program.
Point of Sale Terminal – a machine that the cashier uses to run the credit card through so
that information is transmitted electronically to the banking institution for authorization.
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