Canadian Public Procurement Council Canadian Forum on Public Procurement September 30 – October 3, 2007

Acquisition Cards – An Essential Procurement Tool Presentation by Jacques LaBonté Director - Materiel Management October 3, 2007

AGENDA Public Works and Government Services Materiel Management Directorate Acquisition Card Program Policy and Procedural Development Electronic Settlement Collateral Activities New Initiatives

Government of Canada’s PWGSC Accountable for: –Accounting, banking and compensation; –Acquisitions and contract management; –Consulting and audit; –Greening government operations; –Government information services; –Real property management.

Corporate Materiel Management Responsible for: –Contracting and procurement; –Acquisition card management; –Asset management; –Fleet management; –Inventory management.

Policy and Procedural Development Departmental Acquisition Card policy introduced in FY 1993/04 Complimentary procedures incorporated Roles of AC coordinators / cardholders / managers defined Mandatory sign off by cardholders acknowledging understanding of program Mandatory training of cardholders with respect to electronic settlement and green procurement

Acquisition Card Program Program introduced in FY 1991/92 1,400 cards in circulation Fiscal Year 2005/06: –47,000 (+/-) transactions –Valued at (+/-) $13 million Fiscal Year 2006/07 –56,000 (+/-) transactions –Valued at (+/-) $19 million

Acquisition Card Program Monthly monitoring of all acquisition card activity, with all questionable transactions queried Quarterly management usage reports to senior management Annual compliance audits undertaken and reported on Ongoing compliance with collateral corporate policies (hospitality / memberships / etc.)

Electronic Settlement “MILTON” introduced in FY 1995/96 Consolidated statement issued monthly Payment effected within 7 days Cardholders issued statement, managers copied 100% of cardholders registered

Collateral Activities BMO ongoing support includes : –Access to Details Online; –On-line support vis-à-vis acquisition card administration; –Organization of regional conferences for small to medium departments and agencies to highlight “Best Practices” and showcase “Best of Breed; –Availability of Centre of Expertise knowledge such as the provision of spend analysis, etc.

New Initiatives Mandatory use of acquisition cards in lieu of purchase orders (less than $10,000) Acquisition cards to be used as a settlement tool for: –Departmental contracts, including utilities supporting the departments property management functions (optional); –Electronic purchasing (mandatory); –Taxis (in lieu of paper coupons).

Conclusion The success of implementing and managing a P- card program depends on many factors. Some of the most important factors are : –The development and implementation of a comprehensive policy –The support of senior management –An appropriate communication strategy –A good monitoring/auditing process