United States Department of Agriculture
Research, Education, and Economics

ARS * CSREES * ERS * NASS
Manual

Table of Contents

                                        
1. Policy
2. References
3. Definitions
     Bank Contractor
     Fundholder
     Management Unit.
     Profile Accounting Code.
     Profile Budget Object Class (BOC) Code
     Purchasing Agent.
     Transaction Detail Listing.
     REE Headquarters.
4. Special Instructions
     Program Implementation
     Merchant Category Code
     Software Distribution
     Prohibition on Acquiring Hazardous Items
     Record Keeping
     Accountable/Sensitive Property
     Proof-of-Purchase Documentation
     Federal Procurement Data System Reporting
     Access to the Purchase Card Management System
     LAPC/AAPC Changes
     Year-end Spending
     Cardholder Reassignment/Transfer
     Reconciliation and Payment
5. Training Requirements/Certification
     Training Requirements
     Procurement Personnel
     Nonprocurement Personnel:
     Training Certification
6. Responsibilities and Procedures
     REE Purchase Card Team
     Summary of Responsibilities
7. Authorized Use of Cards and Checks
8. Purchase Card Management and Oversight
9. Procedures to Obtain a Purchase Card
     Exhibit 1
     Exhibit 2
     Exhibit 3
     Exhibit 4
      Exhibit 5
     Exhibit 6
     Exhibit 7
     Exhibit 8
     Exhibit 9
     Exhibit 10
     Exhibit 11
     Exhibit 12
     Exhibit 13
     Exhibit 14
     Exhibit 15

                                        
It is REE policy that:

• Fundholders or management unit personnel shall designate in writing the employees to be Cardholders. Also, ARS fundholders, in consultation with other management unit personnel, shall designate the Finance Contacts for each ARS Area/Field location/Headquarters office. For the agencies, CSREES, ERS, and NASS, Finance Contacts shall be designated by the respective management unit personnel delegated this responsibility.
  
  
• To the maximum extent practicable, purchases that fall within the micro-purchase threshold ($2,500) shall not be forwarded to the Procurement Office for processing.
  
  
• Commercial purchase cards shall not be issued to cooperator employees.
  
  
• Commercial purchase cards shall not be used to make payments under existing contracts.
  
  

• DR 5013-6 - Use of Purchase Cards and Convenience Checks
  
  
• REE P&P 210.1 - Procurement and Property Management Review
  
  
• USDA/Procurement Homepage - www.usda.gov/dalprocure.html
  
  
• PPD Homepage - www.afm.ars.usda.gov/divisions/ppd
  
  
• APC/LAPC Purchase Card Program Guide
  
  
• PCMS/Micro-Purchase Guide
  
  

Bank Contractor. A commercial financial institution which the Government has contracted to provide commercial purchase cards and related support services.

Fundholder. The person who is responsible for the effective management and use of assigned program funds and other resources as evidenced on the annual operating plan(s).

Management Unit. The person who is directly responsible for the effective management of a staff, office, branch, or division, including program funds and resources. These individuals may be Division Directors, Branch Chiefs, and/or Section Heads.

Profile Accounting Code. The accounting code that will be initially charged for the goods/services for each purchase transaction.

Profile Budget Object Class (BOC) Code. The BOC code that will be initially charged for the goods/services for each purchase transaction.

Purchasing Agent. Individuals who have been delegated authority to obligate funds on behalf of the government to make buys within designated limits for simplified acquisitions.

Transaction Detail Listing. The report from the Central Accounting System which displays data sent from Purchase Card Management System (PCMS) and other National Finance Center (NFC) feeder systems, i.e., PRCH, TRVL, etc.

REE Headquarters. The offices located in the Washington Metropolitan Area of ARS, CSREES, ERS, and NASS.

Program Implementation. Each office (i.e., Area Agency Program Coordinator (AAPC)/Local Agency Program Coordinator (LAPC)) must be identified with the bank contractor prior to participating in the Purchase Card Program. This is accomplished by the Agency Program Coordinator (APC). First, the Area Administrative Officer (AAO) shall forward the request to establish the AAPC to the APC. When the AAPC has been established, the next office to be established is the LAPC. The AAPC shall forward the request to establish an LAPC to the APC. Both requests should include the AAPC/LAPC's complete name, user ID (if one exists), social security number (SSN), telephone number, etc. A sample request form is shown in Exhibit 1.

It is equally important to identify the Finance Contacts for each ARS field location and Area office, including the agencies of CSREES, ERS, and NASS at this time. The information needed to establish the Finance Contacts should be sent to the respective LAPC or AAPC. For ARS Headquarters and the agencies of CSREES, ERS, and NASS, the information should be forwarded to the LAPC who is located in the Policy Branch (PB), Procurement and Property Division (PPD), Beltsville, Maryland.

It is encouraged that each office designate an Alternate to manage the Program in the absence of the primary AAPC/LAPC. The same information that is needed to set up a primary AAPC/LAPC is also required to set up an Alternate.

Requests for cards/checks cannot be submitted to the bank contractor until this process has been completed.

Merchant Category Code. The Merchant Category Code restricts the types of merchants from which purchases can be made. Due to the wide variety of supplies and services acquired in support of USDA's programs, Merchant Category Code 0000, which designates all types of merchants, has been authorized.

Software Distribution. The APC will notify the designated REE Information Technology Division (ITD) representative when an update to PCMS is ready for distribution. The REE ITD representative will coordinate the distribution of the software with the ARS Area Computer Specialists and the ITD representatives from CSREES, ERS, and NASS.

Prohibition on Acquiring Hazardous Items. All purchases of firearms, ammunition, explosives or hazardous biological and radioactive substances shall be made by a Purchasing Agent. Requests for these substances shall be submitted to the servicing Procurement Office with a copy of the required approvals and licenses. In addition to the types of items identified above, nonprocurement Cardholders are restricted from using the purchase card to buy the following hazardous materials:

    1.0% 2-Acetylaminofluorene (2-AAF)
    0.1% 4-Amniodiphenyl (4-ADP)
    0.1% Benzidine
    1.0% 3-3'-Dichlorobenzidine (DCB)
    1.0% alpha-Naphthylamine (1-NA)
    0.1% beta-Naphthylamine (2-NA)
    0.1% 4-Nitrobiphenyl
    1.0% N-Nitrosodimethylamine (DMN)
    1.0% beta-Propiolactone (BPL)
    0.1% bis(Chloromethyl)ether (BCME)
    1.0% 4,4'-Methylene-bis (2 - chloroaniline)
    1.0% Ethyleneimine (EI)

Record Keeping. Cardholders shall keep a formal record of each purchase card transaction as support for funds control operations.

When a check is issued, annotate on the supporting documentation the date the check was issued, the convenience check number, cardholder's name, and the waiver number applicable to the check. The Tax Identification Number (TIN) or SSN and waiver number shall also be entered into PCMS when reconciling the transaction.

Accountable/Sensitive Property. When accountable/sensitive property is purchased by nonprocurement personnel, cardholders shall forward the description, model number, manufacturer, serial number, property custodian, acquisition cost, acquisition date, and appropriation/accounting number to the appropriate property office. This information is required for each piece of accountable property and will be used as the official property record in the Property Management Information System.

The following is a list of property determined by REE to be sensitive property:

• Firearms (regardless of cost)
  
• Law enforcement badges (regardless of cost)

Purchasing agents are responsible for providing a copy of the stamped AD-700 for all accountable property purchases to their property office, indicating that the agent used the purchase card to buy accountable property. The property office needs to obtain a copy of the stamped AD-700 at the time of the buy in order to forward property documents to the accountable property officer requesting required information and properly reconcile agency suspense reports.

Cardholders and property officials will work together to ensure that property officials receive appropriate documentation when the purchase card is used to purchase accountable/sensitive property.

Proof-of-Purchase Documentation. To supplement proof-of-purchase documentation, commercial purchase card orders must be recorded on a log (Exhibit 2), which includes the following categories as a minimum:

    Date ordered
    Name of the supplier
    Description of supplies or services
    Total price
    Date delivered
    Purchase Card or Check Transaction

The log (manual or automated) may be modified to meet individual office requirements, but must include the categories previously listed. The log should be maintained in a manner that is consistent with the commercial purchase card billing cycle to facilitate reconciliation. The logmust be forwarded to the respective Local Finance Contact (LFC) each month and will enable the posting and reconciliation of individual purchase card transactions with the NFC reports at month-end.

• Over-the-Counter Purchases. When cardholders make over-the-counter purchases, they must record the purchase in the log and obtain a copy of the charge slip. They should also make sure all carbons have been destroyed; the sales receipt will become the accountable document.
  
  
• Telephone/Internet Orders. Cardholders must record all commercial purchase card telephone/internet orders on the log and any shipping documents associated with the order will become the accountable document.

Federal Procurement Data System Reporting. Warranted procurement personnel must reconcile transactions at or above $25,000 and actions in the Small Business Competitiveness Demonstration Program from $501-$100,000 in PCMS by using code “22" in the SF-281 Code Block in the Transaction Maintenance Screen in PCMS. This does not relieve the procurement personnel of completing an SF-279 “Independent Contract Action Report.” On the SF-279 form, block 4, do not enter the purchase card account number as the contracting office order number. Procurement personnel can use any combination of numbers not to exceed 15 characters as the contracting order number. It is recommended that you use two digits for the fiscal year and an additional four digits to identify your tracking sequence number (e.g., 00-XXXX).

Access to the Purchase Card Management System. User IDs/passwords are required to access the PCMS and data query tool. The LAPC is responsible for obtaining these user IDs/passwords through the Security Access Management System (SAMS). This information should be forwarded to the user in a secure manner. Exhibit 3 is an example of a memorandum for this purpose.

LAPC/AAPC Changes. When there are changes to an LAPC or AAPC, the APC must be notified to process these changes through PCMS-Cardholder Account Maintenance Screen (CAMS) and SAMS. See Exhibit 1.

The cognizant LAPC or AAPC should be notified when there are changes to a Finance Contact.

Year-end Spending. In the event that transactions are not processed in PCMS by September 30 of the current fiscal year, a period-end estimate must be submitted to cover those transactions that are not processed. The procedures in NFC's yearly year-end closing instructions and procedures memorandum should be followed to report the period-end estimate.

Cardholder Reassignment/Transfer.

• Reassignment/Transfer within ARS Area. The AAPC has capability to reassign/transfer an existing cardholder within the specific Area (e.g., from Orlando, FL (SAA location), to Raleigh, NC (SAA location)). This is accomplished by: (1) making the modification to the “Unit” field in CAMS, and (2) using the “Insert SAC” option in SAMS to insert the new “Unit” number. The LAPC shall forward the request using the information in Exhibit 4 to the AAPC.
  
  
• Reassignment within ARS Headquarters, CSREES, ERS, and NASS. The LAPC for these offices/agencies has the capability to reassign/transfer an existing cardholder within the respective offices of ARS Headquarters, CSREES, ERS, and NASS, (e.g., for ARS Headquarters, CSREES, ERS and NASS Headquarters_agency to agency; NASS field_from State to State).
  
  
• Reassignment/Transfer within REE. Until the APC has the capability to perform the above-mentioned reassignments/transfers within ARS, CSREES, ERS, and NASS, the AAPCs shall forward the request using the information that is shown in Exhibit 4 to the APC.

Reconciliation and Payment. Guidelines for reconciling a transaction with the PCMS/Foundation Financial Information System (FFIS) interface are available in the “Cardholder PCMS Quick Guide for Reconciling Purchase Card Transactions. This guide is available from the Purchase and Fleet Card Regulations and Guides page at http://www.usda.gov/procurement/card/ guide.html. When a purchase is made using the purchase card or convenience check, the transaction travels through several processes prior to reconciliation. Exhibit 5 shows the process flow of a transaction after the cardholder makes a purchase.

The cardholder should notify the LAPC when experiencing problems in reconciliation.

In the absence of a cardholder, the LAPC must obtain authorization to reconcile a cardholder's purchase card transactions. The LAPC will submit the form in Exhibit 1 with the appropriate information to the APC. The NFC will pay the electronic invoice and schedule payment with the U.S. Treasury regardless of whether the purchases are reconciled.

Accounting adjustments may be made up to 6 months after reconciliation, within the fiscal year, or by November 30 of the following fiscal year. Otherwise, accounting adjustments shall be coordinated through the fiscal office.

• Purchase Card Transactions. The mandatory fields to be completed when reconciling purchase card transactions in PCMS are: Action, Date Received, SF-281 Code (if >$2500), Item Description (for training, include the name of the employee and title of training course), Agency Reference Number (ARN), Comments and Modify (when applicable). In the ARN field, a cardholder must enter a Document Control Number (DCN) for each transaction to enable the Servicing Funds Control Office to validate PCMS transactions that appear on the Agency's FFIS Transaction Detail Listing. In order to be consistent in assigning the DCN, the cardholder will input their first initial and last name, followed by their sequentially assigned DCN, e.g., D Jones 0002. Only the first 20 characters of the ARN will pass to FFIS and spaces or dashes are considered as characters.
  
  
• Check Transactions. The mandatory fields to be completed when reconciling check transactions in PCMS are: Merchant Address, Merchant City, Merchant State & Zip Code, Action, Date Received (enter date the check was written), SF-281 Code (if > $2500), TIN or SSN, ARN, Comments (enter applicable waiver number), and Modify (when applicable). For check fees, complete the Action, Date Received (enter date check was written), Item Description (enter check number; for training, include the name of the employee and the title of the training course), and Modify Accounting (enter BOC code).
  
  In accordance with NFC Bulletin 96-1, dated December 10, 1996, the TIN is a 9-digit unique identifier assigned to all individuals and businesses that file tax returns in the United States. For individuals, the SSN serves as the TIN (formatted 000-00-0000). For U.S. businesses, the Employer Identification Number (formatted 00-0000000), assigned by the Internal Revenue Service, serves as the TIN. For international orders, use 98-9898989.
  
  Specific BOC codes should be used in reconciling check transactions. These codes are shown in the following table.
  

TYPE OF ACTION	BUDGET OBJECT CODES
Purchases <$1,000	2670 (ARS use only)
Local Travel	2115
Training (SF-182's)	2523
Check Fees	2581
Electricity	2311
Natural Gas	2312
Water, Purchased Steam, Purchased Chilled	2313
Fuel/Oil	2618
LPG/Propane	2619
Coal	2617
Registration Fees/Honorariums	2570

 

• Reconciliation Process. LAPC's and AAPC's have a responsibility to ensure that cardholders reconcile timely and in compliance with existing Departmental/Agency guidelines and procedures. A reconciliation process has been designed to allow a cardholder 60 days to reconcile transactions before deactivating the account. The process is as follows:
  
  
  
  1. LAPC sends a written notification to cardholders who have not reconciled their transactions within the 30-day time frame. This notification should be routed through the appropriate supervisor/manager. See enclosed Exhibit 6 for sample notification message which includes a specific date to reconcile transactions, a deactivation date if transactions have not been reconciled by that date, and information on the re-activation process.
     
              (a)     Query Report. On the 15^th of each month, LAPC's and/or AAPC's will query the “unapproved” transactions of the previous month in PCMS using the “List of Unapproved Transactions Report” in the Discoverer application. This is the 30-day report.
     
              (b)     Notify Cardholders. Using this report, an LAPC will notify each card holder through the appropriate supervisor/manager. This is the only notification the cardholder and/or manager/supervisor will receive.
     
     
  2. Second Report (60-day). Using same date parameters as #1, run another report 30 days after the first notification. Purchase card accounts appearing on the list will be deactivated, absent extenuating circumstances.
     
     
  3. To re-activate the card, the cardholders supervisor must submit a request to the LAPC and include in the request an agreement from the cardholder to abide by the purchase card policy to reconcile within the 30-day time frame.

   

Training Requirements. The APC is responsible for training the AAPC and the LAPC for REE Headquarters and the agencies of CSREES, ERS, and NASS. The APC is also responsible for coordinating the training of the Finance Contacts at REE Headquarters. All participants in the Purchase Card Program must be thoroughly trained to ensure proper management and oversight of the Purchase Card Program. The AAPC is responsible for training the LAPC in the proper management of the Purchase Card Program within their respective locations. The LAPC shall have responsibility for ensuring that all prospective cardholders are trained in procedures for properly using the commercial purchase card with associated check writing feature and reconciling their transactions. Prior to issuing a card to Cardholders, all training shall have been completed.

LAPCs should also coordinate training with the LFCs at their respective field locations.

Listed below is the training that is required for each individual who has a role in the Purchase Card Program.

• APC/AAPC/LAPC (individuals in the 1102/1105 Series):
  
      -    review DR 5013-6 and this Manual;
      -    view The USDA Purchase Card Program;
      -    Javits-Wagner O'Day (JWOD) videos;
      -    APC/LAPC Purchase Card Program Guide and;
      -    complete Discoverer Training, PCMS Training which includes Cardholder Account Maintenance System Training, Security Access Management System Training, and PCMS Training Workbook with PCMS Cardholder Instructions.
  
  
• Finance Contacts:
  
      -    view the USDA Purchase Card Program video;
      -    review DR 5013-6 and this Manual; and
      -    complete Discoverer Training.



• Procurement Personnel (warranted COs having completed 40 hours of simplified acquisition training):
  
      -    review DR 5013-6 and this Manual;
      -    view the USDA Purchase Card Program and JWOD videos; and
      -    complete the PCMS Training Workbook with PCMS Cardholder Instructions.
  
  
• Nonprocurement Personnel:

      -    review DR 5013-6 and this Manual;
      -    view the USDA Purchase Card Program and JWOD videos;
      -    PCMS/Micro-Purchase Guide
      -    complete the Micro-Purchase Self-Test in the PCMS/Micro-Purchase Guide and the PCMS Training Workbook with PCMS Cardholder Instructions; and
      -    as part of training, it is recommended that cardholders be given the following brochures/booklets to assist them in complying with required sources of supplies and services: Buyers Guide to the Javits-Wagner O'Day (JWOD) Program, GSA Customer Supply Center for the Specific Region, UNICOR Quick Ship Credit Card Catalog, JWOD Skillcraft Products and Services Catalog, and “Greening the Government, Closing the Circle, A Guide to Implementing Executive Order 13101, Federal Acquisition, Recycling, and Waste Prevention.”

Training should be conducted for the Cardholders when the purchase card/check, training materials, and user ID/password have been received by the LAPC. This will allow Cardholders to receive “just-in-time” training.

Training Certification. All cardholders, LAPCs, and AAPCs should receive some form of training certification that documents successful completion of training and receipt of the
training materials in support of the Purchase Card Program. Sample forms are shown in
Exhibits 7 and 8 to document this training. Warranted personnel will receive credit toward their maintenance training requirements based upon the duration of time spent receiving official AAPC/LAPC and/or cardholder training as follows:

    AAPC/LAPC - 16 hours
    Cardholder - 2 hours

REE Purchase Card Team. Within REE, individuals have been designated to manage and provide oversight of the Purchase Card Program at different organizational levels. The roles determine the responsibilities of the individuals. Exhibit 9 is a diagram of the REE Purchase Card Program Roles. Exhibit 10 further explains the roles for problem solving.

Summary of Responsibilities. The following are specific responsibilities associated with each role involved in the REE Purchase Card Program.

APC. The APC position is located in PPD, Administrative and Financial Management (AFM), Beltsville, Maryland. The following responsibilities are in addition to those listed in the APC/LAPC Purchase Card Program Guide:

• Coordinates the implementation of the program within REE through the Department's Contracting Officer Technical Representative or the Department Program Coordinator, the bank contractor, the General Services Administration, and the AAPC.
  
  
• Maintains open communication with the Financial Management Division (FMD) and ITD on policy, procedures and problems relating to the Purchase Card Program.

  AAPC. The AAPC and Alternate will be designated by the AAO for the ARS Areas in consultation with the APC. For REE Headquarters, CSREES, ERS, and NASS; the AAPC will be located in PPB and designated by the Chief of PPB. The Alternate AAPC will perform the duties of the AAPC in the absence of the AAPC. The AAPC/Alternate has the following responsibilities:

• Point of Contact for the Purchase Card Program in the Area.
  

• Provides training and guidance to the LAPC.
  

• Establishes and maintains the Purchase Card Program within his/her designated Area.
  

• Monitors purchases using the Discoverer software and provides the Area management with information from PCMS utilizing data query.
  

• Conducts random monthly:             
  

  • cardholder reviews using established standard reports and the audit form
                (Exhibit 11); and
    
  • LAPC reviews for compliance with existing purchase card policy.
            
    
• Reports cases of fraud, waste, and abuse. The USDA Office of Human Resources has provided a list of suggested penalties for specific offenses which is provided in Exhibit 12. The types of misconduct are listed with recommended disciplinary actions for inappropriate use of the purchase card and convenience checks. Offices may institute stricter but not more lenient disciplinary measures.
  
  
• Reconciles, on an emergency basis, cardholder accounts in the absence of the LAPC.
  
  
• Submits Area Quarterly Report on Purchase Card/Check Use and Reconciliation to the APC as stipulated in this Manual.

  LAPC. The LAPC will be designated by the cognizant ARS AAO for the ARS Areas, in consultation with the APC. The following listed responsibilities are in addition to those listed in the APC/LAPC Purchase Card Program Guide:
  

• Submits Annual Energy Management Data Report on a yearly basis.
  

• Works with the cardholders, Finance Contacts, and the AAPC in the implementation and management of the program.
  
  
• Conducts random monthly cardholder reviews using established standard reports and the audit form in Exhibit 11 for compliance with existing purchase card and federal acquisition policy.
  
  
• Ensures that prospective cardholders complete appropriate training requirements in simplified acquisition and commercial purchase card procedures. Upon completion of the Micro-Purchase Self-Study Test, returns the course booklet to the cardholder for future reference.
  
  
• Establishes monthly cardholder limits, in consultation with the fundholder and appropriate management unit.
  
  
• On a case-by-case basis, approves and processes requests of cardholder's authorization for certain restricted transactions.
  
  
• Prepares and submits monthly unauthorized purchase card/convenience check reports to the AAPC. The LAPC can modify the quarterly report to reflect monthly review of purchase card data.
  
  
• Ensures that reassigned and/or departing cardholders surrender their commercial purchase cards/convenience checks in accordance with the requirements of this Manual and DR 5013-6.
  
  
• Ensures that cards issued under their authority are properly utilized for official Government business only.
  
  
• Issues warning notices for the following types of misconduct:
  
          -    writing checks when vendor accepts purchase cards
          -    failing on a consistent basis to reconcile transactions in PCMS
          -    allowing or authorizing another employee to use purchase card
          -    circumventing single purchase limit
          -    cardholder sharing their PCMS user IDs and passwords, whereby breeching security
  
  
• Deactivate purchase card/convenience checks for repetitive misuse of purchase cards/convenience checks after consultation with cardholder's supervisor.
  
  Cardholder. The cardholder has the following listed responsibilities in addition to those listed in the APC/LAPC Purchase Card Program Guide and the PCMS/Micro- Purchase Guide:
  
  
• Documents all commercial purchase card/check transactions in accordance with the requirements of this Manual and DR 5013-6.
  
  
• Makes corrections in PCMS to agency and accounting, BOC, and subaccount codes.
  
  
• Changes profile accounting at the end of the current fiscal year to reflect new fiscal year accounting (as required).
  
  
• Ensures property information is forwarded to appropriate Property Officer for accountable/sensitive property purchases.
  
  
• Prepares log and submits to the Finance Contact, when applicable.
  
  
• Reconciles weekly and selects one day to routinely reconcile on a weekly basis.
  
  
• Initiates disputes in PCMS and follows up on disputes to resolve issue, whether to the bank or merchant, in a timely manner.
  
  Manager/Supervisor. These individuals determine, in writing to the LAPC, who within their organizations should receive purchase cards and convenience checks. The manager/supervisor shall have the following responsibilities:
  
  
• Determines the necessity and appropriateness of each card.
  
  
• Determines single and monthly purchase limits.
  
  
• Submits the prospective cardholder's name, work address (including all acronyms), telephone number, e-mail address, single purchase limit, monthly cardholder limit, accounting information, and check writing capability to the LAPC. Also include the direct Supervisor's name and e-mail address.
  
  
• Ensures that cards issued under their authority are properly utilized for official Government business only.
  
  
• Takes disciplinary action or other appropriate action for misuse of purchase cards when notified by the LAPC and notify the LAPC of action taken.
  
  Headquarters Finance Contact (Chief, FMD-Fiscal Operations Branch (FOB)). This position is located in FMD, AFM, Beltsville, Maryland, and shall have the following responsibilities:
  
  
• Works with the APC to ensure accounting requirements are included in the purchase card policy.
  
  
• Communicates any financial concerns to the APC and NFC.
  
  
• Interacts with NFC to restore accounting related issues.
  
  
• Provides guidance and instructions to the Area Finance Contacts (AFCs) and LFCs relating to financial issues in PCMS and Discoverer tool.
  
  AFC (Area Budget and Fiscal Office). The AFC shall be designated by the AAO in consultation with the AAPC for the ARS Areas. For REE Headquarters, the AFC will be located in Fiscal Operations Branch, FMD, Beltsville, Maryland. For the offices of CSREES, ERS, and NASS, the AFC will be located in their respective Headquarters offices in Washington, D.C.
  
  The responsibilities of the AFC are as follows:
  
  
• Reports any Transaction Detail Listing or accounting irregularities to the FMD- FOB and AAPC (for AFM, CSREES, ERS, and NASS, this is the LAPC).
  
  
• Works with the AAPC (for CSREES, ERS, and NASS, this is the LAPC) to ensure accounting requirements are communicated to the Cardholders and fundholders/management unit personnel.
  
  
• Maintains a good understanding of PCMS.
  
  
• Maintains open communication with the designated LFCs for ARS field locations on policy, procedures, and problems relating to the Purchase Card Program.
  
  LFCs. The LFCs will be designated by the cognizant ARS AAO for the ARS Areas. The LFC has the following responsibilities:
  
  
• Reviews purchase card/check transactions using data query tool to assure the correct agency, accounting code, and benefitting subaccount, are assigned to all purchase card/check transactions befitting their management unit.
  
  
• Follow-up with Cardholders to ensure errors are corrected.
  
  ITD Contact. The ITD Contact at REE Headquarters is responsible for:
  
  
• Conducting site surveys of Headquarters office computer equipment.
  
  
• Ensuring that PCMS software will operate on existing REE computer environments.
  
  
• Providing detailed downloading/installation instructions to Area Computer Specialists and ITD representatives from CSREES, ERS, and NASS on PCMS.
  
  
• Maintaining open communication with the Area Computer Specialists and ITD representatives from CSREES, ERS and NASS on policy, procedures, and problems relating to the Purchase Card Program.
  
  

1. Utilities. The purchase card may be used to pay for utilities required for the government. The Cardholder shall initiate the action to capture the utilities' usage for inclusion in the Annual Energy Management Data Report and reconcile the transaction   in PCMS. The Cardholder shall:
   
   
   1. Contact the utility vendor to determine if the vendor will accept the purchase card. Use of the convenience check is allowed only in emergency situations and when one of the Debt Collection Improvement Act waivers is applicable. The waivers are shown in Exhibit 13.
        
   2. Instruct utility vendor where to send invoice.
        
   3. Maintain a record of how much energy is consumed in dollars and also energy units (i.e., gallons of gas, KW of electricity, gallons of oil, etc.), on a monthly basis, using the report in Exhibit 14. Also, include type of service, e.g., electric, gas, water. The invoice is a good source of this information. This information should be kept on file to be included in the Annual Energy Management Data Report.
        
   4. Use the appropriate BOC codes for each energy type. These are listed in the table in Section 4 of this Manual.
      
      
   5. Reconcile in PCMS. Include the waiver number and energy units in “Comments Section” of the Transaction Maintenance Screen.
      
      
   6. Continue to use the purchase card as the method of payment, when selected, until the end of the reporting period, i.e., do not change method of payment within the reporting period once decision has been made to pay by purchase card.
          
      
2. Federal Express. The purchase card is the preferred tool to use for payment of mail delivery services. Where the volume of transactions makes it inefficient to reconcile individual transactions through the PCMS, Blanket Purchase Agreements (BPAs) may be used to effect payment to Federal Express (FedEx). Contact the cognizant Servicing Purchasing Office to establish the BPA with FedEx.
   
   If the purchase card is used, the Cardholder shall initiate action to convert an existing FedEx Government account or to establish a new account to be paid by the purchase card. Since the FedEx account is linked to the purchase card account number, one Cardholder in each office/branch/staff shall be designated as the point of contact (POC) for the FedEx account. The name of the FedEx POC should be provided to the office/branch/staff. These transactions will be reconciled in PCMS.
   
   
   1. Establishment of New Account/Conversion of Existing Account
      
      The Cardholder shall:        
              
      1. Contact the FedEx Government Customer Account Services on 1-800-645-9424. This number is the only authorized phone number to either convert an existing FedEx Government account or to establish a  new account to pay by purchase card. FedEx will provide a form to either establish a new account or to make the transition to the purchase card.
                     
      2. Complete the form and forward to FedEx as indicated on the form. For existing FedEx Government accounts, include the FedEx account number and the purchase card account number. The FedEx account number can be found on the air bill form that is used to send out packages. It takes FedEx 3-5 business days to establish or convert the account. The Cardholder will receive a faxed confirmation letter from FedEx. Once the confirmation letter has been received, the office/staff/branch should be notified of the designated FedEx POC. The purchase card shall not be used to pay FedEx until the confirmation letter has been received by the designated FedEx POC (Cardholder).
         
         
   2. Mailing Packages. The sender shall complete the air bill form as required and not place the purchase card number on the air bill form. If the sender is not the FedEx POC, the sender shall forward a copy of the air bill to the FedEx POC.
      
      
   3. Reconciliation. The FedEx transaction(s) shall be reconciled in PCMS by matching the air bill number from the copy of the air bill with the number in PCMS. The air bill number appears in the “Merchant City” field in PCMS. Use of the purchase card to pay a FedEx bill without first setting up an account for payment by purchase card will result in FedEx charging commercial rates to the Cardholder's purchase card.
      
      

    

To aid in the review of purchase card data, several standard reports are available for the APC, AAPCs, LAPCs and supervisors/managers to use and assist with management and oversight of the Purchase Card Program. These reports are explained below:

    -    Purchase Card Master File (for use by APC, AAPC, and LAPC). This report includes the information pertaining to cardholder account setup requests that have been transmitted to the bank by NFC. Use this report to verify that hierarchy and purchase limit information returned from the bank is correct.

    -    Cardholder Monthly Transaction Comparison Report - < $2500 (for use by APC, AAPC, and LAPC). This report compiles transactions less than $2,500. Use this report to verify single purchase limit compliance.

    -    Aged Transaction Report (for use by APC and Manager/Supervisor). This report summarizes the number of transactions per cardholder that have not been reconciled in accordance with existing policy.

    -    List of Unapproved Transactions (for use by LAPC, AAPC and APC). Use this report to verify timely reconciliations. This report also displays the transactions by cardholder listed in the “Aged Transaction Report” that have not been reconciled.

    -    Cardholder Monthly Reconciliation Report (for use by LAPC, AAPC, APC, and Manager/Supervisor). This report lists all transactions purchased by the cardholder. Use this report to verify fund adjustments, select transactions for statistical sampling, check for split transactions, and whether transactions (i.e., card/check) are reconciled properly (i.e., all required data has been entered into PCMS). LAPCs will be required to review at least 10 percent of their cardholder transactions each month.

    -    Check Report (for use by APC). This report is used for reviewing check transactions.

The chart identifies the responsible individual and frequency of the reports.

Program Reviews. Management and oversight of the Purchase Card Program within a specific Area/Field location/Office/Agency is the responsibility of the LAPC/AAPC. Random cardholder and LAPC reviews are to be performed monthly.

APC Review. The APC shall conduct program reviews and monthly cardholder reviews using established standard reports. In conjunction with the Procurement and Property Management Reviews, PPD reviews purchase card transactions.

AAPC Review. The AAPC shall conduct random monthly cardholder reviews using established standard reports and LAPC file reviews for compliance with existing purchase card policy. In addition to the random/monthly cardholder and LAPC file reviews, the AAPC will annually conduct a review of LAPC files. The LAPC file review shall be commensurate with the number of LAPCs and cardholders in the Area. It is encouraged that the AAPC keep a separate file copy of the cardholder accounts with supporting documentation selected for review. When requested, forward this entire file to the APC for review.

LAPC Review. The LAPC shall conduct random monthly cardholder reviews using established standard reports. The cardholder review should be commensurate with thenumber of cardholders at the location. LAPCs are to report monthly review findings to the AAPC.

Supervisor/Manager/Fundholder Review. These individuals shall conduct a review of purchase card data of cardholders in their offices using standard reports to ensure cards are properly utilized for official Government business.

APC, AAPC, and LAPC review findings are to be incorporated in the applicable Monthly or Quarterly Report on Purchase Card/Check Use and Reconciliation. This report is shown as Exhibit 15. The monthly report is submitted to the AAPC and the quarterly report is submitted to the APC. Negative reports are required. The quarterly reports are required as follows:

    Reporting Date            Period Covered
    January 31                 October-December
    April 30                January-March
    July 31                April-June
    October 31                July-September

Unauthorized use of the Governmentwide commercial purchase card/convenience check shall result in disciplinary action (Exhibit 12).

LARRY R. CULLUMBER
Director
Procurement and Property Division

Exhibits

1    Request for Assistance
2    Purchase Card/Check Log
3    Security Letter
4    Reassignment/Transfer Request
5    Transaction Process Flow Chart
6    Notification of Unreconciled Transactions in PCMS
7    Training Check List and Certification for Cardholders
8    Training Check List and Certification for LAPCs/AAPCs
9    REE Purchase Card Program Roles
10    REE Purchase Card Program Roles for Problem Solving
11    Audit-Statistical Sampling
12    Recommended Disciplinary Action
13    Debt Collection Improvement Act Waivers for Check Writing Purposes
14    Monthly Energy Management Data Report
15    Quarterly Report on Purchase Card/Check Use and Reconciliation

Exhibit 1

Request for Assistance*

Requested by:    ___________________________    Telephone No. ___________
            (LAPC/AAPC)
Date of Request: ________________

Type of Request:    ( )    Establishment of AAPC (forward to APC)
            ( )    Establishment of LAPC (forward to APC)
            ( )    Request for APC assistance (forward to APC)
            ( )    Request for NFC or Bank Assistance (see below)*

Name:            (Enter name of individual)

Telephone No.:        (Enter telephone no. of individual)

Role:            (Enter either CH, LAPC, AAPC, or Finance Contact)

Program:        (Enter first six digits of purchase card number)

Dept:            (Enter 12 for USDA)

Agency:            (Enter 03=ARS, 18=ERS, 20=NASS, 22=CSREES)

Region:            (Enter two-digit assigned region no.)

Unit:            (Enter two-digit assigned unit no.)            

Subunit:        (Enter 0000)

Account No.:        (Enter last 10 digits of purchase card number. Leave Blank for LAPC/AAPC/Finance Contact)

User ID:        Enter existing NFC User ID.

SSN:            Enter social security number

(Complete for Establishment of AAPC/LAPC only):    
Series:            Enter 1102 or 1105. If not in 1102/1105 series, state if training requirements have been met or when training requirements (CO Warrant System) will be met to qualify as LAPC/AAPC.

(Complete for NFC Assistance (complex problems only)):
Problem:        State the problem.

*After completion, fax to NFC at 504-255-5525. For Bank assistance, fax to 301-504-1739.

Exhibit 2

Purchase Card Transaction Log for the Month of ______________________________

Name of Cardholder:                                    Profile Accounting Code:

A copy of this record must be sent to the Local Finance Center or AFC by the 1st workday of the month.

SUBJECT:    Access to the Purchase Card Management System

TO:    REE Purchase Cardholders/LAPCs/AAPCs/Finance Contacts

FROM:    _____________________________________
        LAPC/AAPC/APC

You have been given access to the Purchase Card Management System (PCMS). To gain access to PCMS, you are required to use a User ID/password. Your User ID/password is _________________. Please change your password immediately since you have been given a generic password for this application.

It is your responsibility to safeguard your User ID/password at all times. Never share this information with anyone since this increases risk and reduces accountability. If you feel your User ID/password has been compromised in any way, please call (insert LAPC/AAPC/APC telephone number) .

If you encounter problems with your User ID/password, i.e., password has expired or needs to be reset, please contact me at the above listed telephone number.

In accordance with existing National Finance Center (NFC) Security regulations, listed below are a few important facts to remember:

    1.    Passwords should be unique--at least 8 characters long and must contain at least one numeric character.

    2.    Passwords should be changed every 90 days. You will be alerted in PCMS to change your password.

    3.    Passwords are suspended after three attempts to log on.

    4.    NFC requires that the first four characters of your password be different from the previous password.

Exhibit 4

REASSIGNMENT/TRANSFER REQUEST

Submitted by: ___________________________________        Date: __________________
            (LAPC or AAPC)

Type of Request: ( ) Reassignment/Transfer within REE (forward request to APC)
         ( ) Reassignment/Transfer within Area (forward to AAPC)
         ( ) Drop LAPC/AAPC. User no longer works for REE. (forward to APC)

User's Name:        _________________________________

User's ID:        _________________________________

Role:            _________________________________

Program Code:    _________________________________

Account Number:    _________________________________ (Cardholders only)

Complete for Reassignment/Transfer:

                FROM                TO
Agency:            ______________        ______________

Region:            ______________        ______________

Unit:                ______________        ______________

Subunit:            ______________        ______________

New Address:            ______________________________________

                ______________________________________

Telephone:            ______________________________________

Exhibit 5

Exhibit 6

SUBJECT:    Notification of Unreconciled
        Transactions in PCMS

THROUGH:    (Cardholder's Supervisor)

     TO:    (Name of Cardholder)

FROM:    (Name of LAPC)

Enclosed is a report of your unreconciled transactions which shows (insert number of transactions) unreconciled transaction for the period (insert date) . This is to advise that unless all of these transactions are reconciled 30 calendar days from the date of this message your purchase card account will be deactivated for failure to reconcile transactions in a timely manner.

Timely reconciliation of transactions is your responsibility and was addressed in purchase card training. Departmental Regulation 5013-6, Use of the Purchase Card and Convenience Check, Section 6, Paragraph j, states, “Requirement to Timely and Accurately Reconcile. It is USDA policy that cardholders shall reconcile their accounts not later than 30 calendar days after a transaction appears in PCMS, absent extenuating circumstances. Failure to timely and accurately reconcile may cause inaccuracies in agency status of funds information. In addition, failure to cite correct budget object classification codes, and for convenience check recipients, Employer Identification Numbers (EINs) for Social Security Numbers (SSNs), may cause 1099's to erroneously be issued to USDA employees and vendors. Failure to timely and accurately reconcile shall constitute grounds for management to revoke purchase card and convenience check privileges, and possible disciplinary action. For additional information on cardholder responsibilities, refer to the PCMS/Micro-Purchase Guide.”

This is the only notification you will receive in regards to the unreconciled transactions listed on the enclosed report. If all transactions are not reconciled within this 30-day period, you must submit the purchase card, all unused convenience checks, the check register, and check carbons to me by (insert date) . Your purchase card account will be deactivated for a minimum of 30 days or until all transactions are reconciled. The account may then be re-activated based on the written request of your supervisor assuming that all transactions are reconciled at that time. If the transactions are not reconciled within 60 days, the account is subject to cancellation.

Please be advised that it is REE policy that purchases that fall within the micro-purchase threshold ($2,500) shall not be forwarded to the servicing Procurement Office for processing. Deactivation of your card will affect your ability to obtain needed supplies and/or services in a timely manner.

If there are any extenuating circumstances preventing you from reconciling, please contact me on (LAPC's telephone number). Your cooperation in this matter will be greatly appreciated.

Enclosure

cc:
Cardholder's supervisor
AAPC

Exhibit 7

CARDHOLDER
TRAINING CHECK LIST AND CERTIFICATION

NAME:________________________________    Date of Training: ________________________

I certify that I reviewed and understand the above listed training materials and received training to effectively support the USDA Purchase Card Program.

            Signature of Trainee___________________________________
                                                

                                         Exhibit 8

LAPC/AAPC
TRAINING CHECK LIST AND CERTIFICATION

NAME:________________________________    Date of Training: ________________________

See Section 4 for training of Finance Contacts.

I certify that I reviewed and understand the above listed training materials and received training to effectively support the USDA Purchase Card Program.

            Signature of Trainee___________________________________

Exhibit 9

Exhibit 11

AUDIT - STATISTICAL SAMPLING

Cardholder Name __________________________    Account Number ______________        SPL _____________

Reg/Unit __________________            Date ________________________

Indicate type of transaction: [ ] Check [ ] Purchase Card

Is the transaction reconciled in PCMS: [ ] Yes [ ] No

Purchase Date: _______________________            Amount of Purchase: $ ________________

Merchant Name: ___________________________        TIN: ________________________ (applicable only to checks)

Accounting Data

Total _______________

1. What type of purchase/reimbursement is it? [ ] Supply [ ] Service [ ] Spot Cash Award     [ ] Local Travel
                 [ ] Misc. Expenses [ ] Tuition & Books [ ] Emergency Salary

2. What was purchased? (Enter textual description of the purchase).

3. Accounting and budget object class was proper and accurate? [ ] Y [ ] N

4. Transaction was supported by valid documentation? [ ] Y [ ] N

5. What type of documentation supports this transaction? [ ] SF-287-2 [ ] SF-1164 [ ] SF-182 [ ] AD-202
                         [ ] AD-343 [ ] Receipts [ ] Pkg-Slip [ ] AD-700    

6. Receipts were attached? [ ] Y [ ] N        

7. Employee=s SSN was entered? [ ] Y [ ] N

8. Is approval for the purchase documented? [ ] Y [ ] N

9. Was purchased approved prior to purchase date? [ ] Y [ ] N

10. Is transaction within the single purchase limit? [ ] Y [ ] N

11. Is purchase recorded in Inventory? [ ] Y [ ] N

12. Comments. Explain any No answer.                                

---

                                                    
                                 Exhibit 12

RECOMMENDED DISCIPLINARY ACTIONS
                                                

 

     Exhibit 13

Debt Collection Improvement Act Waivers for Check Writing Purposes

Exhibit 14

Exhibit 15

                
QUARTERLY REPORT ON
PURCHASE CARD/CHECK USE AND RECONCILIATION

Completed by: _____________________________________    Date:__________________

        _____________________________________
                (Area/Location)

Month: ________________                Quarterly:    ( )    October - December
                                    ( )    January - March
                                    ( )    April - June
                                    ( )    July - September

No. of              Type of*
Occurrences        Unauthorized Use        Description of Action(s) Taken

*Mark in column labeled “Type of Unauthorized Use”, one of the following:
    (1)    Cash Advance or Travel Advances
    (2)    Long term leases/rentals
    (3)    Airline, train, bus, or common carrier tickets, or individual travel expenses
    (4)    Major telephone systems
    (5)    Allowing others to use card or account number
    (6)    Fuel and related supplies and services
    (7)    Circumventing thresholds/splitting transactions
    (8)    Purchase of hazardous items
    (9)    Personal purchases/identification
    (10)    Writing checks to self or for cash
    (11)    Paying in advance for supplies or services, except when authorized by law
    (12)    Writing checks when vendor accepts purchase card
    (13) Failing to reconcile within 30 days
    (14)    Other unauthorized purchases:
            Greeting cards
            Memberships in an individual's name
            Insurance of items being shipped to or for the Government
            Shipment of household goods
    (15)    Writing checks for spot awards
    (16)    Writing checks for transit subsidies
    (17)    Writing checks for emergency salary payments