ADMINISTRATIVE CODE

TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES
CHAPTER XIV: COMPTROLLER
PART 1130 PURCHASING CARD PROGRAM

Section 1130.10 Statutory Authority

Section 1130.20 Definitions

Section 1130.30 Contract Evaluation and Award

Section 1130.40 Program Participation

Section 1130.50 Duties of State Agencies

Section 1130.60 Compliance Audit

Section 1130.70 Compliance Certification

TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES
CHAPTER XIV: COMPTROLLER
PART 1130 PURCHASING CARD PROGRAM
SECTION 1130.10 STATUTORY AUTHORITY

Section 1130.10 Statutory Authority

a) This Part establishes rules necessary to implement Section 13.3 of the State Finance Act [30 ILCS 105/13.3] relating to the use of purchasing cards by State agencies.

b) This Part applies to all State agencies that seek to use a purchasing card under the authority of Section 13.3 of the Act.

Section 1130.20 Definitions

The following definitions shall be used in interpreting this Part:

"Act" means the State Finance Act [30 ILCS 105].

"Authorized purchase" means an acquisition where a participating agency authorizes an employee as a purchasing card user within cardholder setup limits and restrictions specified by the participating agency; where the merchant authorizes the transaction in accordance with established payment card association rules and regulations; and the participating agency receives the goods. In no event shall a cardholder's acquisition of services or travel expenses be an authorized purchase.

"Cardholder" means an individual designated by a participating agency in accordance with procedures established by CMS to be a purchasing card recipient and make authorized purchases.

"CMS" means the Department of Central Management Services.

"Goods" means all tangible personal property.

"Participating agency" means a State agency that is enrolled in the purchasing card program pursuant to procedures established by CMS.

"Purchasing card program" means the program for State agencies' use of purchasing cards established under this Part.

"Services" means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports or supplies that are incidental to the required performance.

"Single purchasing card transaction" means an individual occurrence of using a purchasing card issued under this Part to purchase any amount of goods.

"State agency" means any department, officer, authority, public corporation, quasi-corporation, commission, board, institution, State college or university, or other public agency created by the State, other than units of local government and school districts.

"Travel expense" means an expense incident to official travel.

Section 1130.30 Contract Evaluation and Award

a) CMS shall solicit purchasing card vendors to provide for purchasing cards for use as authorized by this Part.

b) CMS and the Comptroller shall jointly evaluate and make recommendations in regard to proposals submitted by purchasing card vendors in response to CMS' solicitation under this Section. CMS' and the Comptroller's joint considerations shall include but not be limited to:

1) the purchasing card vendor's ability to provide both detailed transaction data as may be needed for State accounting purposes and overall purchase card program information as may be required by State agencies;

2) the purchasing card vendor's ability to electronically interface detailed transaction data with the participating agencies' accounting and billing systems;

3) the availability of discounts and rebates that the purchasing card vendor will provide the State;

4) the cost to the State for the products and services provided by the purchasing card vendor;

5) the impact of the purchasing card program on existing procurement practices and systems;

6) the payment terms and late payment penalties the purchasing card vendor will require;

7) the purchasing card vendor's ability to provide card limits and restrictions as may be required by participating agencies;

8) the purchasing card vendor's proposed program for liability of unauthorized card use;

9) the purchasing card vendor's proposed agency enrollment, implementation and account maintenance processes; and

10) the location and number of suppliers that accept the purchasing card.

c) As recommended by CMS and the Comptroller as a result of their joint evaluation process, CMS shall award contracts to purchasing card vendors to provide for purchasing cards for use as authorized by this Part.

Section 1130.40 Program Participation

a) CMS will establish procedures governing:

1) the enrollment and responsibilities of State agencies participating in the purchasing card program under this Part; and

2) participating agencies' issuance of purchasing cards to cardholders under this Part.

b) Procedures adopted by CMS shall require each potential cardholder, prior to card issuance, to certify that:

1) the cardholder shall use the purchasing card for authorized purchases only; and

2) the cardholder shall accept liability for all unauthorized purchases.

Section 1130.50 Duties of State Agencies

a) State agencies may participate in the purchasing card program in accordance with this Part and the procedures established by CMS.

b) A participating agency may use purchasing cards to pay for purchases of goods in accordance with this Part. A single purchasing card transaction shall not be greater than $500. Purchasing cards shall not be used for the procurement of services or travel expenses.

c) Each participating agency shall process payments to the purchasing card vendor as provided in the uniform accounting system developed by the Comptroller.

d) Each participating agency shall develop and implement internal standards and procedures that will permit full compliance with the provisions of this Part, the Comptroller's uniform accounting system, and procedures established by CMS under this Part.

e) Each participating agency shall maintain detailed documentation regarding its purchasing card transactions in accordance with the State Records Act [5 ILCS 160].

Section 1130.60 Compliance Audit

The Internal Auditor of each participating agency shall annually perform an audit of the purchasing card program as implemented by the participating agency.

Section 1130.70 Compliance Certification

a) The Comptroller shall establish standards for an annual certification to be provided to the Comptroller and the Auditor General by the Agency Head of each participating agency prior to use of purchasing cards by the participating agency cardholders and annually thereafter. The certification shall establish that:

1) sufficient internal controls exist to insure appropriate use of the purchasing card by the participating agency's cardholders;

2) proper segregation of duties are in place regarding the reporting and accounting of purchasing cards;

3) the participating agency maintains an adequate pre-audit and post-audit function; and

4) the participating agency has appropriately addressed any findings identified by an internal or external audit relating to the participating agency's purchasing card program.

b) The Comptroller shall refuse to issue payment of purchasing card transactions made by cardholders of a participating agency unless a current certification by the participating agency's Agency Head, as required by subsection (a) of this Section, is on file with the Comptroller.

c) The Comptroller may inspect and audit the records and supporting documentation that the participating agencies maintain and that relate to the purchasing card program established under this Part.