1. 1 What is Program Optimization? Purchase Card Program Optimization assists agencies in improving the effectiveness of their procurement programs by maximizing the use of the purchase card The Program: –Provides recommendations for increasing process savings, cost savings, and financial incentives associated with increasing the use of the purchase card versus traditional procurement methods –Provides insight for improvement opportunities by using the best practice assessment tool included in Visa’s Procure-to-Pay Consultative Tool Suite –Generates recommendations for improving the program, including guidance for implementation and monitoring program success

2. 2 Public Sector Program Optimization Approach Implement Results/ Track Progress Deliver Results Best Practice Assessment Produce Interim Results Analyze Accounts Payable Data Evaluate Opportunity/ Enroll Clients  Conduct analysis of A/P file for spend analysis and supplier matching  Assess best practice adoption through use of Visa Performance Gauge tool  Prepare and present findings to client sponsor and senior management  Provide high level implementation guidance and templates for tracking progress  Identify opportunities for expanding purchase card volume  Request A/P File leveraging preferred file layout  Facilitate implementation of recommendations and assist program in monitoring benefits achieved  Leverage Visa Merchant Acceptance team to enroll non-Visa accepting vendors  Identify and prioritize specific expansion targets  Identify best practice successes and opportunities for improvement  Identify “Quick Hit” opportunities (e.g., expansion opportunities which can be obtained within six months)  Receive feedback and revise analysis approach, if appropriate Our team follows a six-phase process* for program optimization * Activities may be modified as appropriate depending on an organizations' annual spend and bank and organizational objectives.

3. 3 Optimization A/P File Data Requirements General Ledger Code Business Unit Code Cost Center Code Gross Amount Invoice Number Payment Date Payment Method 1 Supplier Name Alpha- numeric Numeric Alpha- numeric MM/DD/YY YY Check, ACH, etc. Alpha- numeric Data Element Format Payment data G/L Code G/L Description Spend Category Alpha- numeric Data Element Format General Ledger cross-reference information Element is Required 1 If payment method is not available, agency should provide a list of suppliers which are paid electronically Supplier Street Address Supplier City Supplier State Supplier Zip Code Alpha- numeric Data Element Format

4. 4 Accounts Payable Analysis Analyzing an A/P file enables us to: procurement spend patterns Identify purchase card expansion targets Identify “quick hit” (1-3 months) and longer term (3+ months) savings opportunities Conduct analysis with Visa’s Supplier Matching Service (to identify the current check/P.O. accepting vendors that accept the Visa card) Quantify benefits associated with moving transactions from checks/paper P.O.’s to the purchase card, including process cost savings and where applicable, rebates

5. 5 Accounts Payable Reports Total spend and count of transactions by payment method Top suppliers by spend, count of transactions and payment method Total spend, count of transactions and payment method by business unit Card program opportunities by transactions and spend based on Visa acceptance among the suppliers Results from the analysis will be displayed in a series of reports including:

6. 6 Visa has created online consultative tools to complement the program optimization efforts, including: Estimates financial benefits of improving procurement efficiency Calculates potential benefits of reducing paper and electronic purchase orders Rates program performance against best practices Recommends and quantifies benefit of implementing best practices Benefits CalculatorPerformance Gauge Procure-to-Pay Consultative Tools

7. 7 Through our optimization initiatives, we have identified opportunities to grow organizations' purchase card spend by 20% (on average) Additional savings are associated with process costs savings, averaging between $54 and $100 per (check) transactions migrated to the purchase card Optimization projects are being conducted for a number of Federal agencies, as well as for State, Local, and Higher Education organizations: Public Sector Program Optimization Public Sector FocusCompletedUnderwayProposedAnnual PCard Spend Range Federal Government232$6M to $1.7B State Government021$56M – $337M Universities731$1.8M – $30M