Tools to Expand Card Programs! Cheryl Shanaberger, MPA, CPPO Director Procurement Management Department City of Port St Lucie February 3, 2017

Our Purpose Today: Concept for Expanding P-Card use Strategies to Promote Vendor Acceptance Advantages of payment by P-Card Implementation Internal Vendor Pitfalls

Payment Methods Procurement Cards Travel Cards Fuel Cards E-Payables P- cards are Electronic payments and different cards related to a specific purchase The functionality of each solution may vary. However, regardless of the system used or the title they all are Electronic payments Some agencies use different P-card issuer for each solution, however using one issuer for both the agency may have a better opportunity for increased efficiencies and benefits.

Benefits Occur faster than check payments Provides more budget control if incorporated with an encumbrance or expense process Streamlines the payment process Provides project management

Benefits to end-user E-Payables & P-Card Increase days payable outstanding Advantage of Early payment Eliminates need to retain suppliers’ banking information Reduction in check payments and cost Reduced exposure to fraud No federal 1099 reporting Timely reporting & tools for reconciliation Increased spend/payment visibility E-Payables or P-card , 1099 reporting for all P-card transactions ended 2011

Agency Challenges Incorporate electronic payable into a payments strategy Supplier enrollment Internal resources It Support System integration issues Proper data transmission for all parties Some system integration issues- just getting in integrated into your finance AP system, reporting of integrated, exception reports for data

Supplier Barriers Cost, Cost, Cost Fear of change Concern of retaining card # Concerns sharing bank account details

Overcoming Supplier Barriers Offer multiple options for invoicing & payment Simplify & promote enrollment Know your suppliers What offers and incentives can your agency offer Include in all RFP’s & Bids Include in award consideration E Payables, P-card, different suppliers have different needs so the solution is to provide supplier multiple ways to invoice electronically, invoice templates, create invoice from electronic PO Have marketing campaigns that include online enrollment sites. Email, support, meetings with your provider To market you need to understand their spend, current process & time frame of payments, how will the system benefit the supplier

Think E – Payment Profit Margin Retainage Mobilization Payment Terms Rebate sharing Bonds Fees are deductible by vendor Points for Award in RFP Rebate considered in award Understand in the contract, what is their cost of doing the job, value of money, profit- can your process be beneficial to them Retainage is not required Paying up front to offset fees Sharing your rebate Bonds FS 255.05 (7) –alternatives- cash, money order, certified check, cashier check irrevocable letter of credit, a security, you determinate the value

What can go wrong! Bank card program software could not handle transaction size Corporate limit not increased Transactions entered incorrectly Contractor charged incorrect rates

Let’s Give it a go! Examples of contracts and will divide into teams to work out the issues.

Questions? Ref: Bank of America Merrill Lynch, Driving automation in the payable process June 2012 Ref: NAPCP.org, Electronic Payables Ref: De Moya/BCC Engineering, Miami, FL   Ref: Odebrecht/Lakes Engineering, Coral Gables, FL Ref: Archer Western/RS&H, Tampa, FL