[Ord. No. 10-2014, § 1]
The purpose of this article is to set forth the standards for
the use of procurement cards by the Borough for the acquisition of
goods and services under the limited circumstances permitted by N.J.S.A.
40A:5-16(c), as may be amended from time to time.
[Ord. No. 10-2014, § 1]
Words and terms as used in this article are intended to have
the meaning set forth in N.J.A.C. 5:30-9A.2, as may be amended from
time to time.
[Ord. No. 10-2014, § 1]
Procurement cards shall be issued in the names of specific individuals.
A procurement card shall not be issued unless it can be shown that
such issuance is necessary for the conduct of ongoing operations in
the normal course of providing government services.
[Ord. No. 10-2014, § 1]
(a)
All authorized procurement card users, individuals responsible for
supervisory review, individuals responsible for activity reconciliations,
the Program Manager, and the CFO shall be required to complete training
on the Borough's policies and procedures governing the use of
procurement cards to acquire goods and services on behalf of the Borough.
(b)
Prior to implementation of the procurement card program, the CFO
and Program Manager shall receive training in all aspects of the system.
(c)
The CFO and Program Manager, with the advice and consent of the Finance
Committee, shall identify positions within the Borough that will benefit
from use of a procurement card, establish limits, period and categories
of permissible use, and organize training for each individual whose
duties may at any time include the use of a procurement card, supervisory
review or reconciliation of activity in the P-Card program, which
positions shall be approved by the Borough Council. The Program Manager
shall notify in writing every employee so identified to obtain his/her
consent for the required training. Employees may decline the responsibility
associated with becoming a procurement card user without any negative
consequences. However, if the employee declines, he or she shall not
be eligible to utilize a P-Card.
(d)
The Program Manager shall initiate training for all authorized procurement
card users, individuals responsible for supervisory review, individuals
responsible for activity reconciliations. The topics the Program Manager
shall cover in procurement card user training include the following:
(1)
Explanation of the state regulations and benefits of P-Card usage.
(2)
Borough policies and procedures regarding P-Card usage.
(3)
Requirement for expeditious submittal of receipts to the Program
Manager within 48 hours of use.
(4)
Requirement of expeditious handling of returns within 48 hours of
determination that a return is necessary or appropriate to ensure
the Borough is not billed for the goods or services, or is receiving
proper credit.
(5)
Explanation that procurement card users may only use P-Cards at preapproved
vendors for preapproved merchant codes as established by the Chief
Financial Officer and Program Manager.
(6)
Explanation that the use of the P-Card for travel/room and board,
or for cash advances is expressly prohibited.
(7)
Requirement that lost or stolen P-Cards are to be reported immediately
to the Chief Financial Officer or Program Manager, who will in turn
immediately cancel said P-Card.
(8)
Requirement that the P-Card shall be relinquished to the Chief Financial
Officer and Program Manager upon retirement, termination of employment
or other circumstances where the employee's P-Card privileges
are terminated.
(9)
Requirement that procurement card users shall not permit vendors
to retain the P-Card or otherwise institute a "running total" for
the P-Card.
(10)
Requirement that procurement card users shall notify the Chief
Financial Officer and Program Manager of suspected fraudulent acts.
(11)
Explanation that the improper use of a P-Card shall result in
the employee being personally responsible for any such payment, and
that improper use of the card may result in the termination of the
employee's procurement card user privileges and disciplinary
action up to and including termination in accordance with the Borough's
Personnel Policies and Procedures Manual, as may be amended from time
to time.
(12)
All employees trained in procurement card use, upon completion
of the requisite training, shall complete and sign an agreement to
abide by the Borough's P-Card policies and procedures, including
financial responsibility for misuse of the P-Card, in the form prepared
by the Chief Financial Officer and Program Manager and approved by
the Borough Council.
[Ord. No. 10-2014, § 1]
The use of procurement cards is authorized and permitted in
the following circumstances:
(a)
When payment to the vendor is required in advance of the delivery
of certain goods or services that cannot be obtained from any other
source at a comparable price;
(b)
When ordering, billing and payment transactions for goods or services
are made through a computerized electronic transaction; or
(c)
When an individual transaction does not exceed either 15% of the
statutory bid threshold or the Borough's established threshold
if less than 15% of the statutory bid threshold.
(d)
The maximum threshold on procurement card transactions specified
in Paragraphs (a) through (c) above cannot exceed either 15% of the
local unit's bid threshold or Borough's established threshold
if less than above. In no circumstance should expenditures exceed
what was appropriated.
(e)
Items purchased under the P-card program must be tangible supplies,
parts or materials necessary for ongoing operation and function of
the Borough (for example, office supplies, auto supplies) or nontangible
items (for example, publications, conference and training fees), or
items purchased in transactions where vendor certification would not
normally be readily available at the time of purchase.
[Ord. No. 10-2014, § 1]
Authorized procurement card users are prohibited from using
procurement cards for personal business, for any circumstances that
are not authorized in N.J.S.A. 40A:5-16(c) or N.J.A.C. 5:30-9A.3,
or to purchase personal property or services, including travel and
dining expenses for government employees, volunteers, or officials.
Existing law N.J.S.A. 40A:5-16.1 provides mechanisms for employees
to receive travel and expense funds in advance.
[Ord. No. 10-2014, § 1]
A procurement card shall only be issued to individuals who are
covered by a fidelity bond or by a blanket honesty policy held by
the Borough of Morris Plains. If an individual to whom a procurement
card has been issued becomes ineligible for coverage under the fidelity
bond or blanket honesty policy, that individual's procurement
card shall be cancelled.
[Ord. No. 10-2014, § 1]
At the time of a procurement card transaction, authorized procurement
card users shall obtain and retain the original receipts. When procurement
cards are used to purchase goods over the Internet, telephone or fax,
such purchases must be evidenced by an order confirmation along with
either the original packing slip that accompanied the purchased goods
or an itemized receipt. A voucher must be prepared at least on a monthly
basis detailing expenditures with all receipts noted above attached.
[Ord. No. 10-2014, § 1]
The day-to-day oversight and management of the procurement card
program and procurement card useage, including management of supervisory
review and reconciliation of procurement card activity, shall be the
responsibility of the appointed Program Manager, or if no Program
Manager is appointed by the Borough, then by the Chief Financial Officer
who shall serve as the Program Manager, to assure that all controls
are actively pursued each cycle without exception.
[Ord. No. 10-2014, § 1]
Use of the procurement card does not change or eliminate any
bid thresholds or other limits set forth in the provisions of the
Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq., or the provisions
established in Article VII under the By-Laws of the Borough Council
of the Borough of Morris Plains, County of Morris, State of New Jersey.
[Ord. No. 10-2014, § 1]
Violations of the Borough's policies and procedures governing
the use of procurement cards shall result in appropriate disciplinary
action as outlined in the Personnel Policies and Procedures Manual,
Borough of Morris Plains, without regard to the position held by the
card user.
