Department of General Services CAL-Card Program Training State of California Department of General Services CAL-Card Program Training ________________________________________________________________ U.S. Bank I.M.P.A.C. Government Services

OVERVIEW OBJECTIVES What is a CAL-Card - who can participate CAL-Card History Current Contract Advantages Costs Prompt Payment Rebate C.A.R.E. Contract partners - program structure Controls - system reports How to participate - responsibilities Support tools _________________________________________________________________

WHAT IS THE ??? Payment mechanism (all agency policies & procedures apply) for purchases of goods, services and travel expenses (travel for local agencies only) up to $25,000 per transaction, higher limits are available government purchase card, issued in the name of the cardholder, billed to the agency Agency determines merchant category codes and spending limits for each card Three levels of billing information Cardholder, Approving Official and Accounting Office Management reports _________________________________________________________________

WHO CAN PARTICIPATE? Any tax funded agency in the State of California Current participants: 825 State agencies (161) CSU System / UC System (7) Local government agencies (657) 27 Community Colleges 120 Cities 172 School Districts 39 Counties 178 Special Districts (1/13/03) _________________________________________________________________

CAL-Card HISTORY 1990 CALTRANS inquired about a purchasing card for small dollar purchases DGS - Looked at Federal Program DGS - Reviewed statistics on small dollar purchase orders: 81% - less than $1,050/Avg. $324 $60 to $258 - average processing cost _________________________________________________________________

PILOT STUDY Participants included: Processing cost savings: 42.2% EDD CHP CALTRANS DGS DMV Processing cost savings: 42.2% (CAL-Card vs. Purchase Orders) _________________________________________________________________

CURRENT CONTRACTOR: Term: December 22, 2000 - December 22, 2006 Two year contract with four one year options for extension ________________________________________________________________

WHAT DOES CAL-Card REPLACE? Purchase Orders Travel Expense Claims Local Agencies only Petty Cash Service Order State Agencies limited to $5,000 _________________________________________________________________

CAL-Card ADVANTAGES Expanded supplier base No minimum card count or spend Statewide support Suppliers paid promptly Eliminates multiple checks, one check to U.S. Bank Multiple billing cycles/levels Choice of billing cycle dates- from the 3rd to 27th ________________________________________________________________

More CAL-Card ADVANTAGES Improved access to supplies and materials: Walk-in purchases Telephone Internet Obtained goods/services when needed Controls-dollar and Merchant Activity Type (MAT) code limits/restrictions Opportunities to save $$$ Training and support tools provided at no cost Cost free with the exception of late fees ________________________________________________________________

CAL-Card PROGRAM COSTS Late Payment Penalty begins day 46 from invoice date State Prompt Payment Act – 4.445% Interest less than $75.00 for each invoice is waived _________________________________________________________________

CAL-Card Rebate Program Prompt Payment Rebate thru 40th day from date of invoice Invoices paid in full minus any formal disputes Sliding scale 62- 2 basis points (pg A-63 of contract) Rebate is a check mailed quarterly to your agency Rebate must reach $75.00; paid at a minimum of once yearly ________________________________________________________________

Amount of Invoice x Percentage=Rebate Prompt Payment Rebate Check Date from Invoice Date Basis Points 1 to 3 days 62 (0.62%) 4 to 7 days 56 (0.56%) 8 to 12 days 48 (0.48%) 13 to 16 days 41 (0.41%) 17 to 20 days 35 (0.35%) 21 to 24 days 28 (0.28%) 25 to 28 days 22 (0.22%) 29 to 32 days 15 (0.15%) 33 to 36 days 9 (0.09%) 37 to 40 days 2 (0.02%) _________________________________________________________________ Amount of Invoice x Percentage=Rebate

C.A.R.E Customer Automation Reporting Environment Comprehensive web based solution for CAL-Card Program maintenance Cardholder limits and MAT codes can be changed “real time” Secure and protected environment Integration with your financial system Web based training and PC lab training Download cardholder Statement of Account day after cycle date Monthly billing reports, R090, R060, F110, F107 are available 3 days after cycle date thru electronic file transfer _________________________________________________________________

CAL-Card PROGRAM PARTNERS YOUR AGENCY _________________________________________________________________

CAL-Card PROGRAM PARTNER: Department of General Services Request For Proposal (RFP) development Contract negotiations and award Contract management Statewide marketing and training Monitor program success Generate new program enhancements _________________________________________________________________

ENHANCEMENTS Prompt Payment Rebate Membership and administrative fees eliminated Invoice due 45 days from invoice date Accounting Overviews Southern California User Groups Websites,www.calcard.com. and www.pd.dgs.ca.gov/calcard Additional U.S. Bank National Account Manager assigned to California C.A.R.E. – U.S. Bank web based program for CAL-Card program management _________________________________________________________________

CAL-Card PROGRAM PARTNER: U. S. Bank I.M.P.A.C. : International Merchant Purchase Authorization Card Division within U. S. Bank for government purchase cards Program implementation and support Reporting, billing, payments, and dispute settlement systems Monthly Reports available through: C.A.R.E.- Customer Automation and Reporting Environment (Contact U.S. Bank National Account Manager for additional information or set up) Floppy Disk, Magnetic Tape, Hard Copy, Super Tracs _________________________________________________________________

CAL-Card PROGRAM PARTNER V I S A VISA Logo/Bank Card Services Association Develop CAL-Card program with U.S. Bank Support CAL-Card marketing efforts Dispute settlement system-must be filed within 60 days from transaction date Fraud protection for agencies that have: 2- 4 cards = $5,000 per card 5+ cards = $15,000 per card _________________________________________________________________

AGENCY PROGRAM STRUCTURE Agency Program Coordinator Accounting Officer Cardholder _________________________________________________________________ Approving Official

The Cardholder Agency purchasing agent Receives monthly Cardholder Statement of Account Reconciles receipts to Cardholder Statement of Account and forwards to A/O Authorizes payment and/or use of credits in a timely manner Initiates disputes, completes and faxes CSQI to U. S. Bank Monitors disputes thru to closure _________________________________________________________________

Approving Official Receives monthly R090 Report Ensures all Cardholder Statements of Account are received with backup documentation attached Monitors disputes thru to closure Approves Cardholder Statements of Account in a timely manner Compiles Cardholder Statements of Account, with R090 as a cover, and forwards the payment package to the Accounting Office _________________________________________________________________

Billing Office Receives monthly R060, F110, F107 Ensures all approved R090 payment packages are received and reconciled against the R060 Payment is processed in a timely manner Completes NIA forms as needed Monitors invoice payments and disputes thru to closure _________________________________________________________________

Agency Program Coordinator Receives F107, F110, standard and ad hoc reports Adds/deletes Cardholders, Approving Officials and Billing Contacts Establishes and changes Cardholder limits and MAT codes Provides written procedures and training for: Agency Program Coordinator/ Sub APC Cardholder Approving Official Billing Office Monitors program compliance and payment/dispute resolution _________________________________________________________________

SYSTEM CONTROLS Cardholder: Approving Official: Billing Office: Single transaction, 30 day, quarterly and annual spending limits Merchant Activity Type Codes Monthly Statement of Account Approving Official: 30 day, quarterly and annual spending limits Monthly statement and reports Billing Office: Monthly invoice and reports Program Coordinator: Cycle and system management reports _________________________________________________________________

CAL-Card Merchant Codes _________________________________________________________________

EXCLUDED MERCHANT CATEGORY CODES _________________________________________________________________

PROGRAM REPORTS Cardholder Statement of Account A variety of reports are available to participants in the CAL-Card Program as well as ad hoc reporting capability. Below are some of the standard program reports. Cardholder Statement of Account Business Account Summary (A/O)- R090 Financial Summary (invoice)- R060 Invoice Status Report - F110 New Account Report - G022 Merchant Activity Report - R900 Disputed Transaction Status Report - F107 _________________________________________________________________

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INSTRUCTIONS FOR DISPUTING A SALES TRANSACTION 1 INSTRUCTIONS FOR DISPUTING A SALES TRANSACTION 1. Attempt to resolve the dispute with the vendor. 2. Complete the Cardholder Statement of Questioned item form. This form is available from your Approving Official or Agency Program Coordinator. 3. Pay particular attention to: -describing the attempted vendor resolution -signing the form -providing your day time telephone number including area code -attaching any supporting documentation such as credit vouchers, return shipping documents such as postal receipts or UPS receipts, etc 4. Return the original form to: I.M.P.A.C. Government Services P.O. Box 6346 Fargo, ND 58125-6346 5. The Statement of Questioned Item must be returned to l.M.P.A.C. Government Services promptly after the statement date on which the transaction appeared In order to preserve your rights to dispute the transaction. 6. Retain a copy for your files and forward a copy with your Certified Statement of Account to your Approving Official or other routing as indicated by your office's internal procedures. If you have any questions concerning disputing a transaction, you are encouraged to call l.M.P.A.C. Customer Service at 1-800-227-6736 so that we might assist you. _________________________________________________________________

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HOW DOES AN AGENCY PARTICIPATE IN THE CAL-Card PROGRAM? Send a “Request to Participate” to DGS Complete an addendum to the Master Service Agreement (MSA) with U. S. Bank Local agencies three years audited financial reports _________________________________________________________________

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AGENCY RESPONSIBILITIES Designate: Agency Program Coordinator & Sub. APC Approving Officials Cardholders Accounting Coordinator Establish card limits and restrictions Develop procedural manuals and training for all levels _________________________________________________________________

SUPPORT TOOLS U.S. Bank training video Calcard.com (obtain password from U.S. Bank National Account Manager) pd.dgs.ca.gov/calcard (no password) Boilerplate guidebooks for APC, A/O, CH and Accounting Officer, training video, fill and print forms. Program, Accounting and User Group schedules Quarterly User Group Meetings Program and Accounting Training Participants list – disk / e-mail CD of Program & Accounting Training Issue memos- Proposals- Testimonials CAL-Card Program Overview Binder Contract – hard copy _________________________________________________________________

OVERVIEW BINDER TABLE OF CONTENTS _________________________________________________________________

QUESTIONS? CAL-CARD PROGRAM _________________________________________________________________