LOS ANGELES COUNTY
DEPARTMENT OF MENTAL HEALTH
  Policy 804.08 Client Services CAL-Card Purchasing Program
 
  PROCEDURES
  1. Cardholder
     
    1. CAL-Card Enrollment and Distribution
       
      1. To apply for a CAL-Card, the employee must complete a CAL-Card Application Agreement and have the Level I, Level II, and Level III Approvers sign the application.
         
      2. All new cardholders must review the CAL-Card Program Policy and complete a mandatory CAL-Card orientation/training prior to receiving the assigned CAL-Card. During the CAL-Card distribution, the CAL-Card Program Group will make a copy of the cardholder’s valid County Identification Card, Driver’s License, or California Identification Card.
         
      3. The cardholder must sign and date the Acknowledgement of Receipt confirming receipt of the CAL-Card, completion of the CAL-Card orientation/training, review of the CAL-Card Policy, and agreement to all terms and conditions of the policy.
         
      4. Upon receipt of the CAL-Card, cardholders must sign the signature panel, and call U.S. Bank Customer Service at 1-800-344-5696 to activate the CAL-Card.
         
    2. CAL-Card Security
       
      1. Cardholders are solely responsible for the security of their assigned CAL-Card and access passwords/codes at all times. Cardholders must handle the CAL-Card with the same level of responsibility, care, and security required when using any property of the Los Angeles County Department of Mental Health (DMH/Department).
         
    3. CAL-Card Purchases
       
      1. All cardholders must adhere to the following purchase limits:
         
        1. Individual Transaction Limit: $700.00
           
          • The splitting of purchases to bypass the individual transaction limit is prohibited.
             
        2. Monthly Purchase Limit: $2,500.00
           
      2. Cardholders must discuss CAL-Card purchases with their supervisor prior to entering into a transaction.  The following conditions must be met for the supervisor to concur with the purchase request.
         
        1. The intended purchase must meet the criteria as documented in Section E, Allowable Purchases. If the cardholder is unsure whether a purchase is allowable, the purchase must be discussed with the Level I Approver and the CAL-Card Program Group.
        2. The purchase must contribute to the client’s recovery goals.
        3. If there are community resources or other departmental options available to obtain the needed services or products, those resources must be utilized prior to using the CAL-Card. 
           
      3. Unique Emergency Purchases: Situations may arise where the requisition process is not the appropriate vehicle or other resources are not available based on the emergent nature of the situation.
         
        1. The cardholder must contact the CAL-Card Program Group and request approval to use the CAL-Card if the cardholder feels their issue constitutes a unique emergency. The CAL-Card Program Group will review the request.
        2. If the request is valid and accepted, the CAL-Card Program Group will forward the request to the Program Administrator for final approval. Upon the Program Administrator’s approval, the CAL-Card Program Group will provide instructions to the cardholder if any additional supporting documentation must be included in the CAL-Card billing packet.
           
      4. Client Contribution
         
        1. If the client is able to contribute funds toward the purchase, the CAL-Card shall only be used for the portion of the expense the client cannot fund. The amount contributed by the client shall be reflected on the itemized receipt, and client contribution shall be noted on the Daily CAL-Card Transaction Log.
           
      5. Allowable Purchases - The cardholder must demonstrate that the cost of the item purchased is reasonable.  All attempts shall be made to purchase products at the lowest possible price. Supportive services that may be purchased by Directly-Operated Programs charged with the care of DMH clients:
         
        1. $1.00 - $150.00
           
          • Food
          • Clothing
          • School Supplies
          • Holiday Decorations
          • Hygiene – Products, Services, and Personal Items
          • Transportation
          • Bicycle Repair
          • Automotive Gasoline
          • Cleaning Supplies
          • Toys
          • Communication - Calling Cards, Pre-paid Cell Phones
          • Out of State Birth Certificates
          • Background Check Fees
          • Credit Reporting Fees (Not including housing applications)
          • Eyeglasses
          • Pet Care
          • Tents & Sleeping Bags
          • Medical, psychiatric, or over the counter medications that are not covered by the client’s health plan*

            *Client remains responsible for any mandated Share of Cost with federally funded insurance programs.
             
        2. $150.00 - $350.00
           
          • Job-related expenses
          • Educational/Vocational Supplies and Training Clothing
          • Recreational/Social Activities related to the client’s recovery goals – must obtain prior approval from the Program Administrator
          • Rent and Utility Deposits
          • Tuition
          • Moving Expenses (Not Including Storage)
          • Furniture/Appliances
          • Expenses related to eviction prevention
          • Emergency medical care not covered by client’s health plan
          • Property Taxes
          • Automotive Repair – must obtain prior approval from the Program Administrator
          • Home Repair
          • Tutoring Services
          • Emergency Travel Expenses – Contact the CAL-Card Program Group to discuss.
             
        3. Up to $700.00
           
          • Short-term** Motel Stays

            ** Short-term is defined as one (1) week. If a client needs to stay beyond one week, the cardholder must obtain prior approval from the CAL-Card Program Group and the Program Administrator.

            NOTE: Other small-dollar CSS allowable expenditures will be considered with sufficient justification. For large-dollar purchases above $350.00 (excluding motel stays), the cardholder must contact their CAL-Card Program Group for approval.  After reviewing and validating the purchase request, the CAL-Card Program Group will contact the Program Administrator to verify if the purchase is within State, County, and DMH policy limits and receive final approval.

            Programs must make every effort to submit purchase requests in a timely manner or investigate other resources. A purchase request not submitted timely is an insufficient reason to request a CAL-Card purchase approval or an increase to the transaction limit.
             
      6. CAL-Card Prohibited Purchases
         
        1. Prohibited purchases include those purchases that may be subject to approval by the CAL-Card Program Group and the Program Administrator.  CAL-Cards may not be used for the following:
           
          • Cash advances
          • DMH employee personal use
          • Tobacco and alcohol products
          • Pre-ordering materials, supplies or equipment, or using any other method in order to bypass the normal procurement process
          • Communication-related equipment such as, cellular phones (excluding calling cards and pre-paid cell phones), radios, fax machines, etc.
          • Recreational/social activities not related to the client’s recovery goals
          • Purchasing items online (excluding birth certificates).  Contact the CAL-Card Program Group regarding purchasing items online that cannot be obtained through any other method.
          • Storage expenses
          • Gratuity or donations
          • Purchase of animals and/or animal adoption fees
          • Fines
          • Wire transfers/money orders
          • Any purchase that the CAL-Card Program Group does not allow
             
        2.  If the cardholder is unsure whether a purchase is allowable, the purchase must be confirmed as allowable with the CAL-Card Program Group before the purchase is made. If the CAL-Card Program Group is uncertain whether the purchase is allowable, the purchase must be verified with the Program Administrator.
        3. Cardholders are held personally liable for any personal/improper purchases made with the CAL-Card and may be subject to immediate cancellation of the card and disciplinary action. Cardholders who inadvertently use the CAL-Card for personal purchases must notify their Level I Approver, CAL-Card Program Group, and the Program Administrator upon discovery. 
           
          • The cardholder will be required to reimburse the Department for any personal purchase. Cardholders will make the necessary arrangements to reimburse the Department with the Level I Approver and CAL-Card Program Group.
          • Do not send cash, checks, or money orders with CAL-Card billing packets. If reimbursement to the Department is required, cash, check, or money order is paid directly to Accounting - Accounts Receivable. Attach a copy of the deposit receipt with the CAL-Card billing packet.
             
    4. CAL-Card Documentation
       
      1. All purchases must be documented in the client’s progress notes.
         
      2. Itemized purchase receipts must be obtained for all CAL-Card transactions. The cardholder must write the client’s identifier number and obtain the client’s signature on the front of each receipt.
         
      3. Daily CAL-Card Transaction Log
         
        1. All CAL-Card transactions must be entered in the Daily CAL-Card Transaction Log. For each transaction, the cardholder must record the purchase date, client’s name, description of purchase, vendor name, cost, and a brief justification for the purchase. The cardholder’s supervisor must concur with all purchases prior to the cardholder entering into a transaction, and the cardholder’s supervisor must sign the Daily CAL-Card Transaction Log.
        2. For purchases made without prior discussion with the cardholder’s supervisor, cardholders must check the “exception” box on the Daily CAL-Card Transaction Log for that purchase, and include with the justification an explanation of why the purchase was not discussed with the cardholder’s supervisor prior to the purchase.
           
      4. CAL-Card Justification
         
        1. If a purchase falls under one or more of the following criteria, a CAL-Card Justification Form must be completed and submitted with the Daily CAL-Card Transaction Log and itemized receipt.
           
          • The purchase could have been obtained through a different mechanism other than the CAL-Card but was not a viable option in this instance.
          • The purchase is needed on an ongoing basis.
          • The purchase exceeds the allowable dollar range listed.
             
        2. The cardholder must complete the CAL-Card Justification Form by checking the appropriate justification reason, describing the purchase, and completing the appropriate justification section for the purchase.

          NOTE: For purchases above $350.00 (excluding motel stays), the CAL-Card Program Group and Program Administrator must give prior approval before the purchase is made.
           
      5. Lost Receipts
         
        1. If a receipt is lost, it is the sole responsibility of the cardholder to contact the vendor for a duplicate in a timely manner. If a cardholder is unable to provide a receipt for any transaction, the cardholder must complete the Lost Receipt form and reimburse the Department for the expense.
        2. All payments must be paid directly to Accounting, Accounts Receivable. The cardholder must submit a copy of the deposit receipt in the place of the missing receipt in the CAL-Card billing packet.
           
      6. Returns
         
        1. When returning items, the cardholder must update the CAL-Card Daily Transaction Log with the credit entry and retain the credit slip to submit with the monthly CAL-Card billing packet. All returns should have two receipts - the original itemized purchase receipt and the credit receipt. Obtain as much documentation as possible to include in the CAL-Card billing packet to correctly detail the transaction.
           
    5. CAL-Card Billing
       
      1. Statements - At the end of the billing period (22nd of each month), the cardholder’s Statement of Account is available. Charges posted to the account for billing from the 23rd day of the previous month to the 22nd day of the current month will be reflected on the Cardholder statement.
         
      2. Reconciliation - The cardholder must reconcile the original itemized receipts to the charges on the Statement of Account.  Steps required to complete the reconciliation include:
         
        1. Compare the itemized receipts and Transaction Logs to the transactions listed on the Statement of Account. The cardholder must access U.S. Bank online to view all account activity and print the individual monthly statement of account. The cardholder must sign the Statement of Account certifying that all purchases listed on the statement, unless annotated to the contrary, are true, correct, and for official business only.
        2. Disputed items should be highlighted and the dispute process initiated.
        3. Cardholders must attach smaller sized receipts to an 8 ½ x 11 sheet of paper to avoid losing documentation. All receipts must be attached in the order as they appear on the statement.
        4. Once the reconciliation is complete, the signed Statement of Account, original itemized receipts and all supporting documentation must be completed and signed.
        5. A CAL-Card Billing Cover Sheet must be affixed to the front of the billing package and all documents forwarded to the Level I Approver within five (5) days from the end of the billing period.
           
    6. Errors and Dispute Resolution
       
      1. Cardholders must immediately report suspected fraud, and lost or stolen CAL-Cards to U.S. Bank Customer Service, Level 1 Approver, CAL-Card Program Group, and the Program Administrator.
         
      2. The reconciliation process may disclose an entry on the Statement of Account that does not correspond to the cardholder’s CAL-Card receipts and transaction log entries.  The cardholder must contact U.S. Bank to report any errors or disputes and complete any necessary forms as instructed by U.S. Bank. Disputed charges with U.S. Bank must be resolved within thirty days. Include all documentation supporting the resolution of the dispute in the monthly CAL-Card billing packet.
         
      3. Deduct the disputed amount from the statement total and adjust the total to be paid.  The correct amount to pay U.S. Bank must be written on the cover sheet. The total amount to pay must not include the disputed transactions.  In the comment section of the cover sheet, state the name of the cardholder disputing the charges and the disputed amount. It is the cardholder’s responsibility to track disputes to resolution and respond to all inquiries from U.S. Bank regarding a dispute or when dispute rights are lost.  All documentation must be included in the cardholder’s monthly CAL-Card billing packet.
         
    7. Absence and Late Submittals
       
      1. Prior to an extended leave or vacation cardholders must relinquish their CAL-Card to their Level I Approver. Cardholders must make arrangements when absent to ensure paperwork is submitted to the Level I Approver in a timely manner.
         
      2. Cardholders who are late with monthly billing submittals are subject to temporary suspension or permanent cancellation of the CAL-Card.
         
  2. Level I Approver
     
    1. Sign as first approver for CAL-Card applications.
       
    2. Perform monthly reconciliation of all CAL-Card billing packets including cardholder original itemized receipts, Daily CAL-Card Transaction Logs, CAL-Card Justification Forms when applicable, and U.S. Bank Statement of Account.
       
    3. Once reconciliation is complete, sign the CAL-Card Billing Cover Sheet, Statement of Account, CAL-Card Daily Transaction Logs, and if applicable the Justification and Lost Receipt forms.
       
    4. Monitor all cardholder statements and billing documentation to ensure compliance with the CAL-Card Policy and program procedures.
       
    5. Forward the CAL-Card billing packet to the Level II Approver, within five (5) days of receipt of documents from the cardholder.
       
    6. Obtain CAL-Cards from cardholders who are leaving the Department, terminating County service, transferring programs or going on an extended leave or vacation.
       
      1. For employees going on extended leave or vacation, the Level I Approver must obtain and store the CAL-Card in a secured file.
         
      2. For cardholders transferring, changing positions, or terminating employment, the CAL-Card must be returned to the Program Administrator for cancellation and destruction.
         
  3. Level II Approver
     
    1. Sign as a second approver for CAL-Card applications.
       
    2. Monitor all cardholder statements and billing documentation to ensure compliance with the CAL-Card Policy and program procedures.
       
    3. Conduct a second independent reconciliation of all CAL-Card billing packets including original itemized receipts, Daily CAL-Card Transaction Logs, CAL-Card Justification Forms when applicable, and U.S. Bank Statement of Account.
       
    4. Once reconciliation is complete, the Level II Approver signs the CAL-Card Billing Cover Sheet, and if applicable the Justification and Lost Receipt forms.
       
    5. Forward the CAL-Card billing packet to the CAL-Card Program Group, within five (5) days of receipt of the documents from the Level I Approver.
       
    6. Request cancellation of assigned CAL-Cards.
       
    7. Provide disciplinary action and confiscate CAL-Cards from cardholders who violate the provisions of the CAL-Card Policy.
       
  4. CAL-Card Program Group
     
    1. Act as liaison between the CAL-Card Program’s cardholders and the Program Administrator.
       
    2. Manage and maintain the CAL-Card Program Group’s budget.
       
    3. Direct cardholders to other departmental or community resources if available.  The CAL-Card shall only be used when there are no other alternatives.
       
    4. Collect all CAL-Card applications and apply the third level of approval.  Once complete, forward the original application to the Program Administrator.
       
    5. CAL-Card Distribution – Upon receipt of new CAL-Cards, coordinate card distribution with new cardholders.
       
      1. Issue training/orientation instructions and the CAL-Card policy to the cardholder.
         
      2. Copy cardholders’ County Identification Card, Driver’s License, or California Identification Card.
         
      3. Collect the signed Acknowledgement of Receipt form from the cardholder.
         
      4. Forward the copy of the cardholder identification and the signed, original Acknowledgement of Receipt form to the Program Administrator.
         
    6. Maintain record of all cardholders in the CAL-Card Program Group, and review the authorized cardholder list provided by the Program Administrator quarterly.
       
    7. Upon receipt of the monthly Statement of Account from the Program Administrator, notify cardholders of all CAL-Card billing package due dates and ensure timely billing reconciliation.
       
    8. Review cardholder statements to ensure purchases are appropriate, follow the CAL-Card policy and procedures, and have complete documentation.
       
    9. If required, inform the Level II Approver to implement appropriate corrective action in a timely manner.
       
    10. Monitor and evaluate all emergency and/or repetitive purchases to determine if the requisition process or another resource should be utilized.
       
    11. The Level III Approver will sign the CAL-Card Billing Cover Sheet once the CAL-Card Program Group has completed their reconciliation.
       
    12. Forward the original CAL-Card billing packet and a copy to the Program Administrator, within five (5) days after receipt of the documents from the Level II Approver.
       
  5. Program Administrator
     
    1. The Program Administrator is responsible for the program management and oversight of the DMH CAL-Card program.  Duties and responsibilities include:
       
      1. Ensure cardholders recognize the CAL-Card as a payment mechanism only and all purchases must comply with the County’s purchasing policy and procedures, including vendor selection guidelines.
         
      2. Verify and confirm initial and recurrent training of all program participants.
         
      3. Develop the program’s training approach.
         
      4. Account Setup
         
        1. Determine the necessity and purpose for each account.
        2. Determine spending controls – transaction limits and restrictions.
        3. Coordinate new account setups.
        4. Order CAL-Cards online as required.
        5. Determine personnel to have access to U.S. Bank’s online system.
        6. Verify CAL-Card Application Agreements meet processing requirements.
           
      5. Account Maintenance/Cancellation
         
        1. Coordinate account maintenance changes in U.S. Bank Access Online.
           
          • Approve adjustments to purchase limits.
          • Cancel or suspend CAL-Cards.
          • Change of cardholder name, business address, and/or phone number.
             
        2. Cancel cards immediately upon employee termination in U.S. Bank online system.
           
      6. General Program Management
         
        1. Act as a liaison with the Internal Services Department (ISD) and U.S. Bank.
        2. Monitor card usage, ensure timely reconciliation, and take corrective action for any violations of policies.
        3. Maintain a listing of all cardholders issued CAL-Cards by retaining copies of CAL-Cards and original Application Agreements.
        4. Upon receipt of the monthly Statement of Account, the Program Administrator must forward a copy to all CAL-Card Program Groups within five (5) days.
        5. Quarterly, provide a list of authorized cardholders to the Accounts Payable Section and to all CAL-Card Program Groups.
        6. Track all credit card dispute, fraud, and lost card occurrences; initiating corrective action as necessary.
        7. Ensure prompt payment to U.S. Bank. Forward all original payment packages to the Accounting Division, Accounts Payable Section within five (5) days of receipt of the documents from the CAL-Card Program Group.
        8. Proactively ensure past due amounts do not exceed ninety days.
        9. Eliminate charge-off occurrences.
           
  6. Billing Official
     
    1. The Accounting Division is responsible for submitting timely payments to U.S. Bank for charges against all assigned CAL-Cards.
       
    2. The Accounts Payable Section will ensure all approved payment packages are received and reconciled against the invoice and payment is processed within five (5) days after receipt of the documents from the Program Administrator.
       
    3. Ensure the Statement of Account is reconciled and has the appropriate approvals and original receipts support all purchase transactions.
       
    4. Mark all original receipts “PAID” at the time U.S. Bank is paid.
       
    5. Process payment to U.S. Bank through the eCAPS On-Line Vendor Payment System.  In the event that there are disputed items, the amount of the billing statement that is approved, (i.e., not disputed) is to be paid.
       
    6. Retain copies of US Bank Statement of Accounts, CAL-Card Daily Transaction Logs, original receipts, and supporting documentation, along with payment documents, for the completion of the State audit or the latter of five (5) years.  The documents must be secured at all times in compliance with Health Insurance Portability and Accountability Act (HIPAA) policies and procedures.
       
    7. Complete Notification of Invoice Adjustment (NIA) forms as needed.
       
    8. Review and follow-up on pending cardholder disputes to ensure timely resolution.
       
    9. Monitor invoice payments and disputes through to closure.