Tips and Tools for implementing and managing your p-Card Program WASBO Spring Conference May 10, 2013 Procurement Cards – p-Cards – have existed in the private and public sectors for many years. They represent an evolution of the credit card brought about by applying new technology to an emerging e-commerce world that now includes schools. The purpose of this presentation is to provide information about a unique p-Card application created to maximize the benefits for schools and potentially also help Associations. These purposes are specifically: To describe how p-Cards operate in today’s environment to improve the efficiency and effectiveness of the school business office and schools as they go about acquiring products and services needed to support teachers teaching and students learning. The unique nature of a multi-state program created by Illinois ASBO will be explained and the advantages of the economy of scale such a system provides will be explained. The basic steps for schools to participate will be outlined, and, The process for local school district implementation and monitoring of card usage will be illustrated.

All p-Card programs are NOT alike!

What are Procurement Cards? They look and operate similar to credit cards. They do not carry a revolving line of credit. Usage and authorization parameters can be reviewed and managed via the internet by district administration. One must be careful NOT to confuse true p-Cards with a standard credit card or a business card issued by a bank. A p-Card is not just another fancy name for the credit cards we already use. True p-Cards – especially those customized to fit the legal requirements governing public sector spending – passes these basic characteristics and capabilities: They operate like a credit card in that when it is used and the vendor asks whether the card is a credit or debit – the correct response is credit. They do not carry a revolving line of credit – the monthly balance must be paid in full each month. Each card is customized to limit the purchasing authority and spending levels. Most p-Card programs give 24/7 access to daily card activity using internet access.

Only 3 Possible costs to participating school Late fee ATM Charge – IF cash advance option is selected Interest owed on any cash advance Earlier in this presentation, the benefits of the Illinois programs were enumerated. These included: No costs, No fee, No out of district cash payments to be involved – THIS IS TRUE FOR THE TOTAL PROGRAM, however; there are three service charges a district MAY create. The first is the late payment penalty. The other two involve a feature of the card that districts DO NOT NEED TO USE unless they want. This feature is the CASH ADVANCE. Currently zero districts allow card holders to have cash advances, the feature is there. The district agrees to pay the ATM fee per advance (usually $1-2) and they pay the prevailing interest rate on the money borrowed/advanced from the day of withdrawal to the date the next payment is received. Other than these three charges, everything else is at NO COST TO THE DISTRICT – I REPEAT – NO COST.

Billing and Payment Monthly Billing Statements –ONLINE ONLY www.bmodetailsonline.com Payment Methods Automated Clearing House Check When the school district sets up its contract for p-Card services, it can elect to have a consolidated bill mailed to the district p-Card administrator monthly or simply go on line, and download it. This is the preferred method. You can have each individual user download their own and reconcile it themselves if you prefer. IT’S YOUR CHOICE. Payment choices are pretty simple send ONE check or set-up an ACH payment system. This is preferred – it is the best way to assure payment is received ON TIME.

NEW! In order to provide ease and convenience, and also in keeping with our strong commitment to conserving the environment, we at BMO Spend & Payment Solutions have decided to make the corporate card program paperless to the maximum extent possible. The Invoice Report is the first document, which is made completely paperless—this means you will stop receiving your Invoice Reports via fax and mail; instead, you will be provided access to electronic copies of your Invoice Reports in details Online.

The Invoice Report in the electronic format offers you the following benefits: • Instant Access: View your Invoice Report 24 hours a day, 7 days a week. • Print & Save: Print or save your Invoice Report on your computer. • Email Notification: Receive an email notification when your Invoice Report is ready in details Online. • Indefinite Archiving: Archive your Invoice Report indefinitely on your computer.

NEW!

p-Cards Should Not/Will Not Eliminate all of the Purchase Orders a district uses – whether paper or electronic! Change what you buy Who you buy from When you buy

Illinois ASBO p-Card Web site Please visit our Web site: www.illinois-pcard.com

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Application Documents

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details Online Training Weekly Webinars Mondays: 11:00 am EST General Overview Mondays: 1:00-3:00 pm EST In Depth-Required for Admins. Mondays: 3:00-4:00pm EST Basic

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Procedure Manual Samples on Website Policies and procedures for use Policies and procedures for MISuse Parts can be individualized Samples of paperwork Tutorials

Procedural Manual IDEAS: Overview of program How to obtain a card Guidelines for us How to process card use Consequences Samples of paperwork

Details Online Getting Started Create New User/Change Password View User Change Credit Limits View or Print Statements Reports Set up Interface

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Growing your Program Analyze your spending habits Look at your check registry Get cards into the people who are doing the spending Secretaries Buildings and Grounds/Maintenance High School Departments Look at your big purchases Energy Transportation Food Books Technology Manage Your Program Details Online  Run incentive programs with your rebate

David Wintczak David.Wintczak@bmo.com