JPMorgan Chase Purchasing Card Program Executive Summary

Agenda Topics n Program Characteristics n How the Program Works n Benefits of Using a Purchasing Card n Risks and Compensating Controls

Program Characteristics n The JPMChase Purchasing Card Credit Card issued to an authorized University employee Personal Charges are not allowed, University related purchases only Cardholders must attend a training class in order to have a card n SSL Internet Web Browser Confirm receipt of goods and billing accuracy Change account codes from system defaults if necessary Provide additional comments in memo field if necessary n Back Office Functions Performed by PCA Monitoring and auditing of transaction data System administration functions Payments to JPMChase each month

How the Program Works n Point of Sale Activities Card presented at POS for payment. Face to face, telephone, internet Confirm tax exempt status before signing merchandise receipt Retain all sales related documentation n Coding and Approval Activities Charges show up in browser hours from POS Transaction is coded by one person and approved by another Transaction flows from JPMChase into FIS the following morning n End of Month Activities PCA ensures that all transactions for the period are downloaded into FIS PCA reconciles the billing statement that is received from JPMChase PCA initiates an ACH Debit transaction to JPMChase on due date

Benefits of Using a Purchasing Card n Achieve best value by ensuring the prompt payment of vendors n Reduce admin costs associated with low dollar amount po’s n Simplicity and ease of use for the cardholder

Risks and Compensating Controls n Employees not abiding by card policy statement Cardholders must attend training classes and sign an agreement letter System allows for online and real-time user profile changes Software has very powerful reporting features for administrators n Overdrawing account balances in FIS Access to account codes can be granted or restricted at the employee level JPM Chase downloads into FIS on a nightly basis, very little posting delay Card spending limits can be raised or lowered at the employee level n Fraud PCA and his staff will be conducting compliance audits on the back end VISA and Mastercard both offer $15,000 liability waiver protection