Photo by Karl Steinbrenner Update on Card Programs Presented By Valerie J Alley, CPCP

AGA February 2011 Charge Card Administration 2 Current “Hot” Topics –What is a Pcard? –Commonwealth Program –3% Withholding –1099’s –Rebate

AGA February 2011 Charge Card Administration 3 What is a Pcard? Multi-purpose bank card aimed at streamlining the traditional purchase order and payment processes for lower-dollar transactions Based on standard, Visa/MasterCard credit card Provides enhanced internal controls & reporting Purchasing Cards are given to employees to acquire goods and services for their organization Central bill / Central pay / Corporate liability

AGA February 2011 Charge Card Administration 4 What is a Pcard? The majority of states and large corporations have established programs Not simply a credit card it’s a “payment tool” –The Commonwealth of Virginia uses the term “Charge Card” so it does not infer they give employees credit Includes technology to streamline your purchasing process

AGA February 2011 Charge Card Administration 5 Commonwealth of Virginia Program Sixteen years ago –2,500 cards –Average spend $6 million for a fiscal year Today –Over 20,000 cards –Average spend over $30 million per month –FY 2010 spend $426 million The Commonwealth allows localities and authorities in Virginia to “piggy-back” on the State Contract –Gives the localities and authorities the benefits of a large contract –Gives the Commonwealth additional volume to reach higher rebate tiers

AGA February 2011 Charge Card Administration 6 3% Withholding –Goes into Effect January 1, 2012 –Effect on 1099’s –Effect on Card Transactions

AGA February 2011 Charge Card Administration Changes Effective January 1, December 31, 2011 No longer responsible for 1099 reporting for card transactions After 2011 ?????

AGA February 2011 Charge Card Administration 8 Rebate –Rebate is a viable revenue source Pcard (SPCC and GOLD) and ATC 1.46% Individual Liability Travel less of a % –Volume for FY2012 expected to grow substantially based on being excluded from 3% Withholding

AGA February 2011 Charge Card Administration 9 Conclusion Questions?