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Purchasing and Travel Cards FAQ:

1. What about the Travel Card and the Purchasing Card?
A: Effective October 17, 2005, all travel-related, reimbursable expenditures for airline tickets, travel agency service fees, car rentals and hotel room rates will be charged to the state�s Purchasing Card. Purchase orders, direct bills and personal credit cards will not be used after October 16, 2005. This will allow the state to better collect data to be used for leveraged contract negotiations with airlines, car rental companies, hotels and travel agencies in the future. Additionally, using the state�s charge cards will save countless hours spent currently on purchase orders and direct bills.

Employees also have the option of using the state�s Travel Card for all travel-related expenditures incident to a trip while in official travel status.

For more information on Purchasing Card and/or Travel Card(s), please contact the Travel Office (x6651).

2. Is using a state Purchasing or Travel Card mandatory for travel?
A: Administrative savings to the state and better data collection for improved contract negotiations are compelling reasons to utilize one or both of the cards for your travel-related expenditures. Therefore, effective October 17, 2005, use of a Purchasing Card is required for all reimbursable airline tickets, hotel room rates and car rental costs. In addition, reimbursable expenses for rental car fuel, airport parking, hotel parking and any applicable taxes may also be charged to the state�s Purchasing Card. Expenses such as meals, room service, telephone calls, movies, etc. may not be charged to the Purchasing Card. No personal charges of any kind may be made to the Purchasing Card.

Employees have the option of using the state�s Travel Card for all travel-related expenditures incident to a trip while in official travel status.

3. Are there expenses I cannot put on the Purchasing Card?
A: Yes. There is very specific policy on the authorized use of the Purchasing Card. Please contact the Travel Office with specific questions.

4: Is there a rule of thumb to follow for each card?
A: The Purchasing Card is widely used throughout the state as payment for many types of products and services. Regarding the travel program, effective October 17, 2005, you will charge airline tickets, travel agency service fees, the hotel room rate and car rental costs to a Purchasing Card. Car rental fuel, airport parking, hotel parking and any applicable taxes may be charged to the Purchasing Card. These charges are billed directly to the state so you will not receive a statement at home. You may not make any other travel-related charges to the Purchasing Card. No personal charges of any kind may be made to the Purchasing Card.

Regarding the Travel Card, you may charge airline tickets, travel agency service fees, the hotel room rate plus any taxes that may be applicable, car rental, car rental gas, airport parking, hotel parking, fuel and meals. Travel Card policy also allows for other travel-related charges when they are incident to your trip while you are in official travel status. The Travel Card is personal liability, so as long as the personal expense is related to the business trip you may make charges to this card. You will receive the statement at your home or office, whichever you designate. Please remember, the Travel Card cannot be used for non-travel related charges.

5. If I get a Travel Card, will I have to start turning in receipts for food?
A: The state�s policy for receipts is not changing.

6. What are the benefits of using the state�s cards?
A: The Purchasing Card is viewed as a tool that enables cardholders, purchasing and accounting staff to perform more efficiently by reducing administrative time. Many agencies have found the Purchasing Card: Reduces the time needed to purchase and receive supplies and services; Reduces the number of requisitions and purchase orders; Reduces cash advances; Reduces the number of invoices and invoicing problems; and, Reduces the number of checks issued. The benefits to the individual cardholder include not paying money out-of-pocket for airline, hotel, car rental, car rental gas, airport and hotel parking expenses.

The Travel Card benefits the state as it reduces the need for travel advances, it allows the collection of data, which can then be used to negotiate more favorable rates, and it streamlines reimbursement procedures by providing a single source of payment documentation. The Travel Card also includes the following insurance coverage
   �    $500,000 Travel Accident Insurance
   �    $1,250 Baggage Insurance
   �    Full primary collision insurance on car rentals

7. How do I get a Purchasing Card?
A: Purchasing cards are issued at the discretion of your Unit Business Representative (UBR). Contact your UBR if you would like a Purchasing Card.

8. How long will it take US Bank to issue me a card?
A: Once the paperwork is submitted to the Bank, it will take approximately two weeks or less to receive the card.

9. What if I need to take a trip before I receive my new Purchasing or Travel Card(s)?
A: Please order the card(s) now to avoid this situation. The Purchasing Card must be used for airline tickets, travel agency service fees, hotel room rates and car rental costs effective October 17, 2005.

10. When will I receive the statement for any charges on my Travel Card?
A: You will receive a monthly statement around the 23rd of each month.

11. What if a department is planning a conference? Will all participants have to secure a Purchasing Card to pay for their travel-related expenses?
A: The purchasing card offers two other options that would work in this situation. One is called a �ghost account�, the other a �meeting or event� account. Both work in a similar way in that they are behind the scenes. The agency would make arrangements with the hotel to charge all reimbursable expenses to a single account. If you would like additional information on how this works, please contact the Travel Office.

12. What if a state employee has bad credit? Will s/he be able to secure a Purchasing or Travel Card?
A: The Purchasing Card is a state liability card so the individual cardholder�s credit rating is not applicable. The credit check for state employees applying for the Travel Card is non-invasive per our contract with the bank. Therefore, all employees that apply for a Travel Card should receive one. However, should a state employee fall behind on payments to the bank, the card could be cancelled.

13. How will an employee�s credit history and credit report be affected if they choose to secure and utilize the travel card?
A: US Bank will not perform an initial credit check on any prospective cardholder prior to issuance of a travel card. However, US Bank does perform an internal credit scoring inquiry, referred to as a delinquency alert, to identify potential cardholders that may represent a substantial risk. This inquiry has no effect on the individual�s credit report or credit history. Utilizing the travel card will not impact or affect an employees� credit report. Employee credit reports will only be affected if payment in full is not made within 150 days. At 151 days, the card is cancelled and collection of the balance is turned over to collection agency and reported to the credit bureau.

14. Does campus have the flexibility to determine if either the travel card or the purchasing card be utilized?
A: The travel card can be offered, not mandated. If the employee so chooses, s/he may complete an application for the travel card. If the employee prefers not to have a travel card, charges for all airline tickets, travel agency service fees, hotel room rates, and car rental rates that are reimbursed or processed through University accounts must be placed on purchasing cards.

15. Our athletic account administrator is the only one in that department to have a purchasing card and he doesn�t want his staff to have access to one. He could book airfare but only has a $1500 limit on the card which of course wouldn�t be enough. Do these types of departments get a large increase of the limit to enable them to use it?
A: When appropriate, the charge limit for purchasing cards can be increased either on a permanent or occasional one-time basis. If you would like to increase the spend limit or for more information, contact the Travel Office. If supported by the campus, the Travel Office would then contact the DOA State Bureau of Procurement to secure the spend limit adjustment.

16. Travelers may not know the purchasing card guidelines so they may make inappropriate charges, i.e. $100 social function at a conference, tuxedo rental for an optional event, meal purchases etc. How do we handle unauthorized (including personal) purchases?
A: The cardholder must be contacted for a refund of any unauthorized purchases. The State Controller�s Office and the State Bureau of Procurement have well-established policies in place on appropriate use of the purchasing card. A cardholder manual is also available. All purchasing card cardholders should receive these documents and also receive either individual or group education on appropriate use of the card. The more information we can communicate to cardholders now, the fewer inappropriate charges we will need to deal with later.

17. How do we handle situations where employees can�t get personal credit cards due to non-payment where departments are very nervous about putting a University purchasing card in their hands?
A: A University should feel comfortable offering the purchasing card to all employees as the card is centrally billed and paid. Non-payment will not be an issue. Additionally, the state has liability coverage for fraud built into the contract. The state also has liability coverage for employee misuse built into the contract. However, in cases of proven employee misuse, the employee must be terminated for the state to secure the liability coverage. If a University still does not feel comfortable issuing employees a purchasing card, the travel card can be offered. If the employee so chooses, s/he may complete an application for the travel card. The credit check for state employees applying for the travel card is greatly relaxed per the state�s contract with US Bank. Therefore, all employees that apply for a travel card should receive one. However, should a state employee fall behind on payments to US Bank, the Bank will cancel the card.

18. Can telephone calls be charged to the purchasing card? What about the $5 call that is allowed to travelers on a daily basis?
A: At this time, telephone calls cannot be charged to the purchasing card.

19. Are students allowed to use their own personal credit cards or cash since we do not allow them access to a travel or purchasing card?
A: Only employees may have the state�s purchasing and/or travel card issued to them. Students may not have a card(s) issued to them however, when state funds or funds passing through state or university accounts are used for student airline tickets, travel agency service fees, lodging and car rental, use of the purchasing card is mandatory. Students may never carry someone else�s purchasing or travel card. Only the employee named on the card may carry the card(s). Student personal credit cards or cash may be used for charges other than those stated here.

20. There is a privacy concern with DOA monitoring travel card activity. Will they have access to individual credit card activity and information, or just summary level information for all the travel cards for the Institution?
A: DOA, the State Controller�s Office and each University travel card program administrator will have access to each cardholder�s charge and payment data as they have responsibility for cardholder policy and payment compliance. They will not have access to the cardholders credit history.