Executing Purchases Using CAL-Card as the Payment Method - 1902.4

Executing Purchases Under $2,500.00

For purchases valued less than $2,500.00 and not acquired through a Leveraged Procurement Agreement (LPA), state agencies are not required to execute a purchase document. However, the procurement must be processed through the FI$Cal system or a contract form (STD. 65, STD. 213) for payment.  When purchases to an individual supplier have reached $7,500.00 within a calendar year, a purchase document must be issued for the next purchase.

DGS/PD recommends that state agencies evaluate each non-LPA transaction less than $2,500.00 to determine whether it’s in the state’s best interest to execute a purchase document.

Please refer to: Government Code, Sections 8355 and 12990.  Public Contract Code, Sections 6108, 10286.1, 10295.1, and 10296.

Executing Purchases $2,500.00 and Over

A purchase document is required for all purchases valued at $2,500.00 and over that will be paid using CAL-Card.

Please refer to: Government Code, Sections 8355 and 12990.  Public Contract Code, Sections 6108, 10286.1, 10295.1, and 10296.

Leveraged Procurement Agreements (LPA) and CAL-Card Payment

A purchase document is required for all LPA purchases paid using CAL-Card.  Individual LPA User Instructions will indicate the required purchase document (i.e. STD. 213).

Purchase Document Requirements

Purchase documents must identify that payment will be made using CAL-Card and include all required terms, conditions, attachments or documentation applicable to the transaction.

Restriction for “Encumbrance Only” Acquisition Type

“Encumbrance Only” is an acquisition type available for use by accounting personnel only for the purposes of encumbering funds for transactions that do not require a contract (aka “agreement” or ”purchase order”) such as the following:

• Court Orders / Settlements
• Payroll Estimates
• Workers Compensation Claims
• Retirement Cash-Out / Payout
• Debt Services
• Travel / CalATERS
• Grants (only grants that meet criteria, please click here for specified information in SCM Volume 1, Section 4.06)

State agencies are PROHIBITED from using the “Encumbrance Only” acquisition type in FI$Cal for Cal-Card transactions.  Compliance with SCM policy is required to maintain purchasing authority granted by the DGS/PD.