P-Card Panel Vicky Frayne – Purchased Services Specialist Francis Howell School District vicky.frayne@fhsdschools.org   Kim Mulvaney – Controller St. Joseph School District kim.mulvaney@sjsd.k12.mo.us Dawne Trokey – Accounts Payable/P-Card Coordinator Meramec Valley R-III School District dtrokey@mvr3.k12.mo.us Patty Bedborough, Executive Director of Finance Northwest R-I School District pbedborough@nwr1.k12.mo.us

P-Card Details FHSD SJSD VISA through UMB starting in FY 04/05 Approximately 300 cards currently issued 2,726,178.24 in FY 09/10 SJSD VISA through Commerce starting in FY 04/5 130 cards currently issued $1,771,000 in FY 09/10

P-Card Details MVR3 NWRI VISA through UMB starting in FY 04/05 92 cards currently issued $2,621,000 in FY 09/10 NWRI MasterCard through Harris Bank/PFM starting in FY 04/05 40 cards currently issued $1,864,000 in FY

Reasons for Starting Program Tight controls over who/what/where and HOW much employees can purchase Reduced paperwork resulting in lower cost per transaction Simplifies buying process Reduces check volume On-Line purchases Removed need for petty cash in schools Hotel/Airfare reservations Vendors that don’t accept district purchase orders Rebates on purchases

How Issued/Limits Changed Administrator/Manager requests P-card issuance Cardholder requests monthly credit limit increase with approval from supervisor Credit limits may be permanent or temporary

Types of Cards FHSD: Ghost, Petty Cash, Individual SJSD: Department, School & Individual MVR3: Ghost, Department & Individual NWRI: Individual only

Ghost Accounts FHSD SJSD & NWRI MVR3 No physical card is issued Higher monthly credit limits both individual transaction limit and monthly limits. Ex: Bill paying, Textbooks, Copier lease payments. SJSD & NWRI Currently no ghost accounts MVR3 No physical card issued Higher monthly credit limits due to larger purchases (ex: Technology)

Limits & Restrictions FHSD SJSD Most have a $500 transaction limit & $2000 monthly limit. Most MCC code restrictions are the same. Activity Petty Cash have some restrictions lifted to allow for specialized activities (IE Golf Team @ private clubs). Airline/gasoline purchases not allowed without authorization. SJSD Monthly/Single transaction limits vary across cards MCC code restrictions are same across all cards

Limits & Restrictions MVR3 NWRI Monthly/Single transaction credit limit is $1000 (some exceptions ex: Ghost cards) Can be raised with proper approval and paperwork Strategy restrictions (dollar limit & MCC code restriction) NWRI Monthly/Single transaction limit mostly $1000, but varies for AP Bookkeeper Monthly limit is mostly $1000, but varies with usage and approval Can be raised with approval form No gasoline or gift cards allowed MCC code restrictions

MCC Codes Merchant Category Code Assigned by VISA to each vendor identifying what type of vendor they are P-cards can be set to accept or restrict certain MCC codes. (ex. Gas P-card, restrict access to ATMs/Casinos) MCC codes can be set in different groups and assigned to different cards or groups of cards

P-Card Agreement/Handbooks FHSD Each user must read & sign an agreement before receiving their card. Handbook given to all cardholders during 2 hours training session. SJSD Each user and bookkeeper must read and sign an agreement when card is assigned, or employees change Handbook given to all cardholders/bookkeepers/administrator

P-Card Agreement/Handbooks MVR3 Each user (individual and department cards alike) has to read and sign an agreement at the beginning of the year before using a card. Handbook given to every new cardholder when training is done. NWRI Each individual has to read agreement packet and sign agreement When card arrives the AP bookkeeper reviews the rules and the packet with cardholding including the reporting and receipt details

Training Training is done individually when a new user gets a card. Updates/reminders are discussed at the annual secretary meeting. Reminders sent via message postings on VISA site FHSD: Training is given to all new cardholders before they receive their card. Try to do several at a time and have several during the year.

Documentation/Sales Tax Monthly statement with a receipt/invoice showing details of the purchase with a total that matches the statement. Administrator approval is required at this time also. Sales tax is not allowed (except for restaurant/gas/out of state purchases) (FHSD does not allow tax @ restaurants.) Vendor must credit back the sales tax or cardholder must personally pay.

Specific Transactions FHSD Restaurants-requires itemized receipt and charge receipt No sales tax allowed Gift Cards allowed for student incentives. Form and signature of gift card receipiant is required. If used for personal purchase by mistake, employee provides reimbursement to the district. No Paypal transactions allowed. SJSD Restaurants – itemized receipt required Sales tax allowed Gift Cards allowed if for student incentives If used for personal purchase employee must reimburse district and warning given with possible suspension of card MVR3 (and NWRI) Restaurants - itemized receipt required Gift Cards - Not allowed – no exceptions

Disputes/Returns/Credits Dispute form is filled out and sent to VISA/Mastercard. Never had an issue getting a disputed transaction taken off the card. Individual cardholder is responsible for working with the vendor for a return/credit. Online reconciliation is required for all disputed charges and credits are allocated to correct account numbers.

Fraud Fraud does happen but not very often. (FHSD: PayPal is the biggest offender for fraud charges.) VISA and Mastercard do a great job monitoring all cards for fraudulent activity. VISA and Mastercard may suspend a card due to what they see as a fraudulent transaction but as soon as we verify that it is not fraudulent, then the card is reopened and ready for use. If it is fraud then VISA and Mastercard take care of getting that transaction taken off our card AND a new card is issued for our cardholder.

Processing Transactions Cardholder is responsible for allocating budget number for their transactions each month. Cardholder must also attach all receipts/invoices to the statement for administrator approval. Statements and all receipts/invoices are sent to the Central Office AP office for review. AP reviews transactions/paperwork/approvals Payment to VISA is made via ACH. Transaction data is downloaded from VISA into a CSV file that is then uploaded into our software system into a batch for processing. MVR3 - transactions are posted to software at vendor detail level. SJSD - transactions are posted as journal entries with vendor name in description. FHSD – transactions are posted in the financial system as a Visa transaction.

End of Year Processing Information is sent to all cardholders with cutoff dates for making payments within this fiscal year. Any payments on VISA made after a certain date may not be posted in this fiscal year. This is their responsibility to make payments on VISA, accordingly. 1099 Reporting will be done by VISA now FHSD: Closes most cards at the end of May and requires paperwork submitted before staff leaves for the summer. Bare minimum of cards are left open for emergency transactions only. All cards are closed for 3 weeks and reopen July 1.

P-Card Panel Presenters Vicky Frayne – Purchased Services Specialist Francis Howell School District vicky.frayne@fhsdschools.org   Kim Mulvaney – Controller St. Joseph School District kim.mulvaney@sjsd.k12.mo.us Dawne Trokey – Accounts Payable/P-Card Coordinator Meramec Valley R-III School District dtrokey@mvr3.k12.mo.us Patty Bedborough – Executive Director of Finance Northwest R-I School District pbedborough@nwr1.k12.mo.us