The Honolulu Police Department participates in the city’s
purchasing card program in an effort to streamline the payment
process for small purchases and improve fiscal management
control. Guidelines and procedures for the use and related
responsibilities for the program are governed by this directive
and referenced herein.
PROGRAM DESCRIPTION
The city has a First Hawaiian Bank (FHB) MasterCard credit
card account that uses a purchasing charge card (pCard) to
pay for certain types of acquisitions. While the city is
the credit card account holder, authorization to make
charge purchases will be extended through the issuance of
pCards that are made out to specific persons. The Finance
Division’s fiscal officers are designated as the
department’s pCard program coordinators.
AUTHORIZED USERS
A. Each division-Ievel element shall have authorized
pCard holders who are selected by the e1ement
commander and approved by a pCard program
coordinator.
B. Though selected, cardholders sha1l not use the pCards
until they have completed the mandatory training by
the Finance Divislon.
C. Only the individual whose name is on the pCard shall
use the card; authority to use the card is not
transferable.
D. Cardholders shall be responsible for the use and
custodial care of their pCards.
1. The cardholder shall keep the pCard in a
secure place and carefully guard its account number.
2. The cardholder shall not lend the pCard to anyone else.
USE OF THE CARD
A. The pCard shall be used only for
official business purchases that have been
approved by the Finance Division.
B. The pCard shall be used in strict
compliance with laws, regulations, city and
departmental purchasing policies, and the
rules and procedures set forth in the pCard training.
C. An e-form approval is required before
the pCard can be used. Refer to Policy 2.34,
PURCHASING RULES.
D. Any use of the pCard that is in
violation of this directive can result in
revocation of the pCard, disciplinary action,
and/or criminal prosecution.
RESTRICTIONS
A. The pCard shall not be used for transactions such as:
1. Purchases of $2,500 or more (this limit
does not apply to price schedule items);
2. Purchases that are parceled to circumvent
the pCard single-transaction limit;
3. The purchase of gasoline and alcoholic beverages;
4. The withdrawal of cash;
5. The purchase of goods and services for personal use; and
6. Hotel accommodations or lodging facilities during travel.
B. Cardholders shall not accept cash in
lieu of a pCard credit for returns.
LOST OR STOLEN CARDS
A. Cardholders shall immediately report
lost or stolen pCards to the pCard program
coordinator and the FHB at or.
B. Cardholders shall immediately
initiate police reports for lost or stolen pCards.
CHANGE OF INFORMATION/STATUS
A. Each cardholder shall submit a
Purchasing Card Change Request e-form via
the element commander to the Finance Division
if the cardholder’s status or information changes
(i.e., when a cardholder transfers out of the
element, when a commander wishes to change
cardholders, and when a cardholder’s employment
with the department is terminated).
The e-form can be accessed at
B. Initial and new pCard applications
shall continue to be submitted on paper.
RECONCILING THE CHARGE ACCOUNT
A. Cardholders shall retain all receipts,
invoices, delivery tags, approved e-forms, and
other documentation that verify their pCard charges.
B. Cardholders shall reconcile the accuracy
and completeness of charge purchases by Wednesday
of each week for the previous week’s pCard purchases
through information that is posted on the FHB pCard Web site.
1. Cardholders shall submit a printout of
each week’s charge purchases every week through
information that is posted on the FHB pCard Web site.
2. Element commanders shall review the
weekly statements, attest (in writing) to the
accuracy and validity of all charges listed,
and submit the verified statements and
supporting documents to the Finance Division
by the end of each week.
C. Cardholders shall review their FHB monthly pCard statements.
1. Cardholders shall submit the statements
to their respective commanders with any additional
verifying documents for charges that were not previously listed.
2. Commanders shall review the monthly
statements, attest (in writing) to the accuracy
and validity of all charges listed, and submit
the verified statements and any additional
documents to the Finance Division within five working days.
D. Cardholders should resolve statement discrepancies and
disputes directly with the vendors.
PREFERRED METHOD OF PAYMENT
The pCard is the preferred method
of payment. A pCard purchase can be
initiated immediately after an e-form is
received with an approved purchase authorization number.
REFERENCE
For related information, refer to Policy 2.34, PURCHASING RULES.