CONCURRENCE:
________________________ ________________________
John R. Lyon James L. Jennings
Director of Logistics Operations Director, Administration Office
________________________ ________________________
A. D. Flowers Jimmy J. Akin
Comptroller Chief Information Officer
________________________
Gregory S. Warner
Associate Counsel
APPROVAL:
________________________
James E. Hattaway, Jr.
Director, Procurement Office
The establishment of the KSC Credit Card Program is welcomed by
many, especially customers who will receive their micro-purchases
(purchases valued at $2,500 or less with a total amount not
exceeding $20,000 per fiscal year based on Comptroller Organizations
allotment of funds) in record time -- from hours to a few
business days. But in order for this program to succeed, it must
be built on cooperation, coordination, and widely-communicated
internal controls to ensure its integrity and accountability.
The Cardholder will play the key role in maintaining the program's
integrity and success. Coupled with the Approving Official, the
Cardholder will embark on providing a new benchmark for quality
service and flexibility of micro-purchases.
The following operating policies and guidelines will introduce
the credit card user, and program participants to the seven process
steps of the Credit Card program at KSC. Also, these policies
will detail responsibilities, identify ownership, and introduce
various customer and program tools to ensure a smooth running
and successful program.
Program Overview Back to Contents
The Credit Card Program can be divided into seven distinct functions.
Each sequential function contains specific guidelines, that if
not met, the process will not proceed to the next function. Also,
it is the program's intent to ensure internal control without
compromising customer satisfaction. Finally, two additional steps
are included for Reporting and Audit Compliance.
Each function contains various participants who facilitate the
process. Each participant has clear and distinct responsibilities:
the Customer, Cardholder, Approving Official (AO), Agency Program
Coordinator (APC), Dispute Office Contact (DOC), the Comptroller
Organization, Procurement Cardholder Representative (PCR), Logistics,
and Technology Implementation Panel (TIP).
The Customer is the individual within the Cardholder's directorate
that expresses a need for an item. The Customer is responsible
for:
· Complying with the following
Chief Information Officer's (CIO) Directives:
01-95 "Conditional Freeze On Purchase Of Information Technology", Effective
Date 3/14/95 [Appendix L]
06-95 "Minimum Office Automation Software Suite Interface Standards and Product
Standards" [Appendix M]
07-95 "Minimum Hardware Configuration" [Appendix
N]
· Seeking Chief Information Officer
(CIO) Approval for Information Technology Purchases.
· Seeking Technical Implementation
Panel (TIP) Approval for Information Technology (IT) purchases
utilizing ROS funding for organizations such as AC, CC, EO, HM,
IM, OP, etc.
The Cardholder is the individual to whom a Government Credit Card
is issued. Cardholders are issued a delegation of authority from
the Procurement Officer. The Cardholder is responsible for:
· Maintaining control/custody
of the credit card; only the Cardholder may utilize the card.
· Purchasing only authorized items
in compliance with established KSC procedures, pertinent regulations/guidance
as listed in this document and other regulating controlling polices
and funding procedures. Please note that all data under the credit
card program (including the Cardholder's name and items purchased)
is releasable under the Freedom of Information Act with the exception
of the Cardholder account number and Approving Official account
number.
· Ensuring that adequate funds
are available and certified prior to placing an order.
· Training customer on proper
completion of Section 1 & 2 of the Credit Card Purchase Record.
· Maintaining a Credit Card Purchase
Record and a Cardholder Purchase Log of all credit card purchases
and retaining all documents (e.g. charge slips, shipping invoices,
etc.) pertaining to the purchase.
· Resolving all discrepancies
with the vendor(s), and/or credit card company, and reconciling
the monthly statement. Discrepancies that cannot be resolved between
the vendor(s) and the credit card company should be brought to
the attention of the Dispute Office Contact (DOC).
· Reporting immediately lost or
stolen credit cards to the Agency Program Coordinator (APC), Approving
Official (AO), and the credit card company.
· Providing in a timely manner
to the Comptroller Organization the required documentation and
funding/accounting data as detailed in this plan or request.
· Complying with Energy Star Requirement
in FIRMR Bulletin C-35 [Appendix O]
· Providing in a timely manner
to the Chief Information Officer (AI) the required Energy Star
Compliance Reporting as detailed in this plan or request.
Approving Official (AO)Back to Contents
The AO is the person who reviews and approves the cardholder's
monthly statement of purchases. The AO shall be the cardholder's
supervisor or a higher level individual. In order to avoid statement
processing delays and late payment penalties, the AO must designate
an Alternate Approving Official in his/her absence.
Agency Program Coordinator (APC) Back to Contents
The APC for KSC is appointed by the Procurement Officer to serve
as the liaison between credit card program participants and the
credit card company. The APC is responsible for:
· Coordinating credit card applications;
establishing accounts in accordance with NFS 18-70.403 Appendix
I paragraph 5; issuing and destroying credit cards; changing dollar
limitations or authorizing amounts in cooperation with the Comptroller
Organization; training credit card program participants; serving
as the Dispute Office Contact (DOC); and overseeing the credit
card program.
Dispute Office Contact (DOC) Back to Contents
The DOC is the focal point appointed by the Procurement Officer
for coordination of the tracking and resolution of disputed purchases.
The DOC shall coordinate, process and monitor resolution of disputed
purchases, credits, or billing errors. The DOC should only become
involved in a disputed purchases when an impasse has been reached
between the cardholder, the vendor, and/or credit card company.
Comptroller Organization Back to Contents
The Comptroller Resources Project Offices [GG-C1, GG-C2, GG-C3]
are responsible for generating and maintaining the financial data
on the Credit Card Register, coordinating with customer organizations
on funding levels (not exceeding $20,000 per credit card for
each fiscal year), and establishing MRs.
The Financial Management Division is responsible for the disbursement
of payments in accordance with the Prompt Payment Act. Also, the
Financial Management Division shall maintain only the required
disbursement documents such as the reconciled Statement of Account
approved by the Cardholder and Approving Official, Statement of
Questioned Items (if applicable), and the Multiple Object Class
Code/FMC Reconciliation Form (if applicable) involved in the disbursement
of funds.
Procurement Cardholder Representative(PCR) Back to Contents
The PCR appointed by the Procurement Officer will assist the Cardholder
in obtaining pertinent information regarding a required buying
source or any other credit card questions. The PCR will also screen
all proposed purchases and provide assistance in obtaining the
phone number for a particular GSA schedule.
The Base Operations Contract (BOC) logistics personnel will be
responsible for the primary screening of proposed purchases, tagging
of controlled property, and acting as the central delivery point
at KSC. After receiving notification from the cardholder, NASA
LO-SOD-1 will tag the controlled equipment that was picked up
in person at the vendor's location by the cardholder.
Chief Information Officer Back to Contents
The CIO is responsible for the approval/disapproval of all purchases
of IT equipment and software for all organizations.
Technical Implementation Panel (TIP) Back to Contents
The TIP is responsible for the approval/disapproval of all purchases
of IT equipment and software for organizations such as GG, CC,
EO, HM, IM, OP, PA, etc. utilizing ROS funding.
· To establish a credit card account,
the APC shall query the directorates with the support of project
RMO Offices to specify the: 1) number of credit cards required;
2) individuals assigned to each credit card; 3) Approving Official
for each Cardholder; and 4) authorization limits for each card.
· The Comptroller Resources Project
Offices will generate and maintain jointly with the APC a Credit
Card Register. The Accounting Classification Number (ACN) line
will be established up front and the directorates will commit
the entire balance of the MR at the beginning of each fiscal year.
Funds not obligated by September 15 of the present fiscal year
will be decommitted. It is the Cardholder's responsibility to
report to the Financial Management Division all purchases incurred
up to September 15 so obligation can properly be made. A new MR
will be established at the beginning of the new fiscal year. There
will be no rollover of unobligated funds.
· The Procurement Officer will
issue a "Delegation of Authority " to the Cardholder.
This document authorizes the Cardholder to conduct micro-purchasing
on behalf of the U.S. Government.
· The credit card will be issued
to the Cardholder once he/she has attended a 4-hour training class
on the Credit Card Program. The APC shall be responsible for distribution
of all credit cards and ensuring that all Cardholders attend training
prior to the receipt of the credit card.
At this stage, the cardholder has been trained, an MR established,
and the Cardholder is in receipt of a credit card with their name
and account number embossed on the front of the card. The following
details the Customer Request process:
· The Cardholder is approached by a customer to purchase an item(s) utilizing the credit card:
Þ The customer completes Sections 1 and 2 of Credit Card Purchase Record [Appendix A] as indicated and forwards via e-mail, fax or hardcopy to the Cardholder for processing.***
***Section 1: Chief Information Officer (CIO) Approval is required for all Information
Technology purchases for all directorates. CIO Approval is obtained by faxing a copy of the Credit Card Purchase Record to 7-1745 Attn: Jimmy Akin (Headquarters
Room 2537, Mailcode AI). The CIO will return the Credit Card Purchase
Record to the Customer within 24 hours after receipt. Once approved
the Customer forwards via fax or hardcopy to the Cardholder for
processing. Note: If ROS funded continue to Section 1A.
***Section 1A: Technical Implementation Panel (TIP) Approval
is required for all Information Technology purchases for organizations
such as GG, CC, EO, HM, IM, OP, etc. utilizing ROS funds. Your
organizational TIP representative shall approve via signature
the IT purchase prior to submittal to the TIP.
TIP Approval is obtained by faxing a copy of the Credit Card Purchase
Record to 7-8807 ATTN: John Van Hooser (IM, Headquarters Room
2625C). The TIP will return the Credit Card Purchase Record to
the Customer within 24 hours after receipt. Once approved the
Customer forwards via fax or hardcopy to the Cardholder for processing.
Screening of the customer request is accomplished by the Cardholder,
BOC Cataloging, and the Procurement Cardholder Representative
(PCR) as detailed below:
Cardholder Screening: Back to Contents
Upon receipt of the customer's Credit Card Purchase Record, the
Cardholder will screen the requirement as follows and complete
Section 3(A) of the Credit Card Purchase Record:
· IS FUNDING AVAILABLE?
The Cardholder checks the Cardholder Purchase Log's [Appendix
B] balance column to verify if there is sufficient funding. If
funding is not available, the Cardholder informs the customer
to issue a purchase request to the Procurement Office.
· AUTHORIZED PURCHASE?
The Cardholder refers to the Unauthorized Purchase List [Appendix
C] to verify whether the item(s) is an authorized purchase. If
the answer is NO, the Cardholder informs the Customer to issue
a purchase request to the Procurement Office.
Cardholder Screening is now complete. The Cardholder simultaneously
forwards the Credit Card Purchase Record to BOC Cataloging (FAX#:
7-3143 or E-mail Address: EGGMEM@BOCP5.KSC. NASA.GOV), and
the Procurement Cardholder Representative (PCR) (FAX#: 7-1188).
For additional detail, refer to BOC Cataloging and PCR sections
below.
BOC Cataloging: Back to Contents
Upon receipt of a Credit Card Purchase Record from the Cardholder,
BOC Cataloging will screen and process the request in accordance
with Federal Acquisition Regulation (FAR) Part 8 as follows:
· If the item(s) is available
through Kennedy Inventory Management System (KIMS) or Federal
Supply Sources (MUFFIN, NIB, NISH, etc.), the Credit Card Purchase
Record will be processed by BOC and the items delivered to the
Customer. The credit card process would stop here.
· If the item(s) is not available
via KIMS or Federal Supply Sources, BOC catloging will complete
Section 3(B) of the Credit Card Purchase Record to reflect the
GSA Schedule Contract (if applicable), and provide the Federal
Supply Code (FSC).
· The BOC will determine if item(s)
will be controlled property per NHB 4200.1 Paragraph 3.101b and
the KSC Sensitive Items List.
Based upon this screening, the Cardholder will determine whether
this purchase is a Mandatory GSA Schedule Buy [Appendix D]. If
so, the cardholder may contact their Procurement Cardholder Representative
[Appendix E] for assistance in obtaining specific contract details.
Procurement Cardholder Representative (PCR): Back to Contents
Upon receipt of a Credit Card Purchase Record from the Cardholder,
the PCR will screen the proposed purchase for adherence to regulations
established in this users guide. Contingent upon the screening
results of BOC Cataloging, the credit card purchase may be considered
acceptable for purchase if the PCR does not contact the Cardholder
within 24 hours from his/her submittal.
General Information:
· Micro-purchases of $2,500 or
less are not set-aside for small business and do not have to be
placed competitively. Buy American Act is not applicable.
· Splitting of a requirement to
fall within the $2,500 limit is prohibited. According to the Federal
Acquisition Regulation (FAR) Part 13.103(c), "Requirements
aggregating more than the simplified acquisition threshold or
the micro-purchase threshold shall not be broken down into several
purchases that are less than the applicable threshold merely to
permit use of simplified acquisition procedures, or to avoid any
requirements that apply to purchases exceeding the micro-purchase
threshold." Also, according to NASA FAR Supplement (NFS)
1870.403 (9)(c)(1), "The total of a single purchase to be
paid for using the card may be comprised of multiple items and
cannot exceed the authorized single purchase limit. Purchases
will be denied if the authorized single purchase limit is exceeded.
Payment for purchases may not be split in order to stay within
the single purchase limit."
Examples of split awards include a procurement with three line
items that totals $3,000. You may not split the procurement and
order two of the line items one day for $2,400 and then turn around
and order the other line item the next day for $600. An organizational
split award constitutes establishment of a large requirement at
the beginning of the fiscal year and purchasing the items individually
over the year to avoid the regular procurement process. Splitting
of a requirement to fall within the $2,500 limit is prohibited.
· Distribute purchases equitably
among qualified vendors to avoid the appearance of favoritism.
· By placing a credit card purchase,
the Cardholder is stating the purchase price of items is fair
and reasonable.
· If the vendor will not accept
a Government Credit Card, a purchase request must be forwarded
to the procurement office for processing.
· Partial deliveries and back-ordering
of item(s) is discouraged.
· COD shipments are not allowed.
· If assistance is needed in locating
a vendor, the Central Industry Assistance Office at 867-7353 will
provide help.
Placing the Credit Card Order: Back to Contents
· The cardholder may place the
order via phone or in person. When placing the order, the Cardholder
should provide and confirm the following information (if applicable):
a. Notify vendor of tax exempt status (Certificate Number 15 00
052729 51C). If the vendor requests a copy contact Barbara Hickle
(OP-AMO) at 7-7345.
b. Confirm with vendor the total cost of the purchase. This cost
should include the cost of item(s) as well as the associated shipping
and handling charge.
c. If purchasing IT items (computers, monitors, or printers)**, verify with the vendor that these items are Energy Star compliant and annotate the Credit Card Purchase Record.
Purchasing of non-compliant equipment requires prior approval from the Chief Information
Officer. **Servers are exempted.
d. Verify that the vendor agrees to charge the credit card only
after shipment.
e. Notify vendor that no partial deliveries are authorized.
f. If the item IS A CONTROLLED ITEM as indicated by BOC
screening, obtain from the vendor WARRANTY information
(length, number, and company responsible) and annotate in Section
4 of the Credit Card Purchase Record. The cardholder shall forward
to your property custodian this information to be input in NEMS
Control (LO-SOD-1).
g. If the item IS A CONTROLLED ITEM and is being shipped,
instruct the vendor to mark the box as follows:
NASA, BOC Receiving, M6-744
Property Management
[Cardholder Name, Building, Room Number]
Kennedy Space Center, FL 32899
h. If the item IS A NON-CONTROLLED ITEM and is being shipped,
instruct the vendor to mark the box as follows:
NASA, BOC Receiving, M6-744
[Cardholder Name, Building, Room Number]
Kennedy Space Center, FL 32899
i. To document order placement, the Cardholder will complete the applicable items in
Section 4 of the Credit Card Purchase Record and annotate the
Cardholder Purchase Log.
General Receipt Information:
· If the item(s) is a controlled
item and picked up at the vendor's location by the Cardholder
in lieu of being shipped, the Cardholder is to notify NASA LO-SOD-1
(7-3735) for tagging.
· Upon receipt of the item(s)
at KSC, visual inspection of the shipping container will be accomplished
by BOC Receiving. All controlled items will be tagged, the appropriate
data will be transmitted to NEMS Control (LO-SOD-1), and the items
will be delivered to the Cardholder. All non-controlled items
received will be delivered to the Cardholder.
· Once the item(s) has been delivered,
the Cardholder should check for damage, verify contents, and quantity
order against the relevant Credit Card Purchase Record as follows:
Þ IF THE ITEM(s) IS UNDAMAGED
AND CORRESPONDS TO THE ORDER, the Cardholder
contacts the Customer to arrange for pick-up. Please keep all
of the shipping documents, and attach the documents/receipt to
the Credit Card Purchase Record.
Þ IF THE ITEM(s) IS DAMAGED, the Cardholder retains the item(s) with all packaging,
contacts the vendor for resolution and Freight Traffic (7-3501) to process a freight claim
for damages.
Þ IF THE ITEM(s) DOES NOT
CORRESPOND TO THE ORDER, the Cardholder
retains the item(s) with all packaging, contacts the vendor to
correct the discrepancy, completes KSC Form 7-248 [Appendix F]
to ship the item(s) back, and informs BOC Shipping (7-7998) when
item(s) is ready for pick-up. The vendor will be responsible for
the associated shipping cost. BOC Shipping will assist the Cardholder
in this matter.
Each month, the Cardholder will receive a Statement of Account
[Appendix G] from the Credit Card Company. The statement will
detail transaction date, vendor, and purchase cost. The Cardholder
has a total of 5 working days after receipt of statement to reconcile.
At this point, the Cardholder should:
· Verify each charge on the Statement
of Account against the Cardholder Purchase Log.
Þ IF THE STATEMENT IS CORRECT,
the Cardholder signs and dates - on the reverse side- and then
forwards it to the Approving Official.
Þ IF THERE IS A DISCREPANCY,
the Cardholder first contacts the vendor for corrective action,
and completes a Statement of Questioned Items Form [Appendix H].
The original form is submitted to Rocky Mountain Bank Card System
and a copy with the Statement of Account is forwarded to the Approving
Official.
· Verify the Object Class Code
[Appendix I] and Functional Management Code (FMC) [Appendix J]
of the items purchased.
Þ IF THE OBJECT CLASS CODE
AND THE FMC ARE THE SAME AS DESIGNATED ON THE AUTHORIZING MR,
the Cardholder does nothing.
Þ IF THE OBJECT CLASS CODE
AND/OR THE FMC IS DIFFERENT FROM WHAT IS DESIGNATED ON THE AUTHORIZING
MR, the Cardholder summarizes the variation on
the Multiple Object Class Code/FMC Reconciliation Form [Appendix
K]. This form along with the Statement of Account is forwarded
to the Approving Official.
· The Approving Official has a
total of 5 working days to review, sign and date the Statement
of Account. Upon completion, the Approving Official forwards the
original reconciled Statement of Account, a copy of the Statement
of Questioned Items (if applicable) and the Multiple Object Class
Code/FMC Reconciliation Form (if applicable) to GG-B1-A for payment.
· If the Approving Official determines
any of the purchases were improper, the APC is notified to take
action. Please note: The Cardholder will be held personally
liable for unauthorized purchases [Appendix C] - which may result
in restitution, disciplinary action and/or dismissal.
Financial Management Division:
· Upon receipt of the reconciled
Statement of Account, Statement of Questioned Items Form (if applicable)
and Multiple Object Class Code/FMC Reconciliation Form (if applicable),
Accounts Payable will obligate, cost and disburse funds.
· Accounts Payable will ensure
payments are made in accordance with the Prompt Payment Act and
will submit proper documentation to the credit card company for
invoice adjustments.
· Accounts Payable will only disburse
funds for authorized and approved purchases as indicated by the
Approving Official. If discrepancies do exist, payment will be
made in future months once the purchase has been approved.
By September 15, the Cardholder shall report to the Financial
Management Division all purchases incurred up to September 15
so obligation can be properly made. Additionally, the cardholder
shall report to Chief Information Officer (AI) the total number
of Energy Star Compliant IT items (computers, monitors, and printers)
purchased for the fiscal year.
To ensure the integrity of the Credit Card Program at KSC, the
Procurement Office will establish a cross-directorate team that
will include members from the Procurement Office, the Administration
Office, the Office of the CIO, the Comptroller Organization, and
the Logistics Directorate. The team will be responsible for auditing
on a semiannual basis a statistically valid sample of the Credit
Cardholders for compliance to the spirit and intent of the preceding
policies and procedures. The team will also audit on a semiannual
basis the credit card purchase statements for Approving Official
signature and conduct interviews with Approving Officials to verify
that proper review is given to the purchases. Problem areas found
during the semiannual audits will be reviewed more frequently
than semiannually, on a random basis. Problem areas will result
in more direct review of individual purchases, at a minimum, to
revocation of the bankcard. The Audit and Compliance Team will
issue semiannual reports to Senior Management on the compliance
and status of the Credit Card Program. The team will also be responsible,
for updating and augmenting this plan, and issuing "lessons
learned" on a periodic basis. Also, the Audit Compliance
team will be responsible for establishing and maintaining metrics
to communicate performance.
· Credit Card Purchase Record A
· Cardholder Purchase Log B
· Unauthorized Purchase List C
· Mandatory GSA Schedule List D
· Procurement Cardholder Representative List E
· KSC Form 7-248, Request for Shipping Document F
· Statement of Account (Sample) G
· Statement of Questioned Item Form H
· Object Class Code List I
· Functional Management Code (FMC) List J
· Multiple Object Class Code/FMC Reconciliation Form K
· CIO Directive 01-95 L
· CIO Directive 06-95 M
· CIO Directive 07-95 N
· FIRMR Bulletin C-35 O
