STATE OF OKLAHOMA Purchase Card (P-Card) Program by Linda Powell

What is the P-Card? To put it simply, the P-Card is a credit card issued to State employees to purchase goods and services needed for conducting official state business at Fair and reasonable prices. Funds for P-Card purchases are encumbered upfront through an Authority Order in order to meet the prior encumbrance requirement (62 O.S.§ 34.62) It is a charge card - the merchant receives payment at point of sale It is not a debit card - funds do not leave account at point of sale It is not the same as a personal credit card – the State of Oklahoma carries no balances and pays no fees or interest It is a Corporate liability card meaning the liability rests with the State, not the employee

Transaction limits $5000 maximum single transaction limit (with the exception of utilities, SW Contract purchases issued by the Central Purchasing Director, Interagency payments, Professional services as defined in Title 18) Single transaction limits are determined at the agency level and set by the entity P-Card Administrator. Limit can be less than the statutory $5000

Statutory References All purchases shall be made in accordance with State statutes, rules, and these Procedures, which include but may not be limited to: Central Purchasing Act, 74 O.S. § 85.1 et seq. State Travel Reimbursement Act, 74 O.S. § 500 et seq. OMES, Central Purchasing Codified Rules, OAC 260:115 Office Management Enterprise Services (OMES) State Travel Procedures State Agency Internal Purchasing and P-Card Procedures

The State of Oklahoma P-Card is a Visa Purchasing Card issued by the Bank of America (BOA) The BOA P-Card contract is administered by Central Purchasing (SW200) There are no fees associated with the program Zero liability for unauthorized charges or for lost/stolen cards (Bank must be notified within 24 hours) The terms of the Statewide Contract allow Higher Education and Political Subdivisions to participate in the program It is the only credit card authorized by the State of Oklahoma

Did you know? Transactions less than $5,000 typically represent about 5% to 10% of total spend for a company, BUT represent about 75% to 80% of spend volume Total number of non-cash transactions in the USA increased 6.6% to approx. 124 billion transactions, 65% of which were made with a payment card.* In overall Purchase card spend grew from $161 billion to $196 billion, with a 12% growth in the Government/non-profit segment.** *World Payments Report, 2013 published by Capgemini **RPMG Research Corporation, 2012 P-card Benchmark Survey Results

Why P-Cards? Reduce POs and invoices Broaden Vendors and Categories Agency convenience Cash Flow Eliminates lost, stolen or returned checks Rebate Simplify vendor maintenance (vendor does not have to be registered in PeopleSoft) Immediate Payment to Vendor Visibility and Transparency Potential for Discounts for Faster Payment Cost savings

COST SAVINGS Reduce transaction processing costs and time Average cost of traditional PO process: $91* Average cost of P-Card process: $17* Savings per transaction: $74* Reduction in procurement cycle time by approx. 9 days Based on 2009 figures, this is an Administrative Cost Savings of over $7.9 million Based on 31,000 POs Processed Under $5,000 in FY10, this is an Administrative Cost Savings of over $2.2 million *2012 RPMG Research, P-Card Benchmark Survey Results

PO vs P-Card Comparisons P-Card 100% Transparent to the Public via Web Limits on Types of Purchases Made Rebate Small Town/Remote Business Acceptance 100% External Continuous Monitoring 1 Voucher per Billing Cycle to Bank Tracked Fraud & Misuse Data $17 – Cost per Transaction Purchase Order Only through Open Records Requests No Limits on Types of Purchases Made No Rebate Limited Acceptance Limited External Monitoring 1 (or more) Voucher (s) per PO No tracking of Fraud & Misuse $91 or more cost per PO

Prohibited Purchases Entertainment Per Diem food and beverages Cash advances Purchase of goods for personal use Motor vehicle fuel Automotive maintenance Automatic drafts Gift Certificates Split purchasing

Revenue Sharing Provided to all participants based on Total Dollar Spend Average Transaction Size Speed of Pay Most recent rebate received: $3.3 million (including Higher Ed) divided among participants, based on agency spend for FY 14.

Executive Steering Group State Purchasing Director State P-Card Administrator Agency P-Card Administrator Agency Approving Officials Agency Approving Officials P-Cardholders Organization Linda Powell Scott Schlotthauer Statewide Travel Manager

Questions?

State P-Card Team: Linda Powell Vickie Rivas

Travel Program by Linda Powell Oklahoma State Travel Program Linda Powell

TRAVEL SW210 – Provides an online booking tool or optional phone assistance through a travel management company. Mobile alerts Travel booking through reimbursement (available in 2015) Able to capture accurate State travel spend for all payment processes.

Travel For now – until full implementation estimated in 2015, you may continue to use a travel agent of your choice or choose not to use a travel agent. Airfare may be purchased through a travel agent, online, or direct with an airline. To put it simply the only requirement is that you show due diligence and get the best fare possible whether it is airline, hotel, rental car, etc.

Coming Soon: Oklahoma State Travel Website

OMES Travel contact Statewide Travel Manager Vacant