1. STATE OF OKLAHOMA Purchase Card (P-Card) Program by Tammy Howard

2. What is the P-Card? To put it simply, the P-Card is a credit card issued to State employees to purchase goods and services needed for conducting official state business. All transactions are encumbered upfront through an Authority Order in order to meet the prior encumbrance requirement (62 O.S.§ 34.62) It is a charge card - the merchant receives payment at point of sale It is not a debit card - funds do not leave account at point of sale It is not the same as a personal credit card – the State of Oklahoma carries no balances and pays no fees or interest It is a Corporate liability card meaning the liability rests with the State, not the employee

3. The State of Oklahoma P-Card is a Visa Purchasing Card issued by the Bank of America (BOA) The BOA P-Card contract is administered by Central Purchasing (SW200) There are no fees associated with the program Zero liability for unauthorized charges or for lost/stolen cards (Bank must be notified within 24 hours) The terms of the Statewide Contract allow Higher Education and Political Subdivisions to participate in the program It is the only credit card authorized by the State of Oklahoma

4. Property of the State The P-Card is the property of the State (corporate liability card) Upon termination of employment with the state agency, cardholder must surrender the card to the State Entity P-Card Administrator prior to leaving State Agency and State P-Card Administrator may also request the cardholder to surrender the card

5. What DOES IT LOOK LIKE? The card has “State of Oklahoma”,Tax ID number and State Seal embossed on the front of the card The card is issued in the employee’s name and lists the agency name on line 2 ( Although the card is in the employee’s name, it does not effect employee’s credit, positively or negatively)

6. DID YOU KNOW? Transactions less than $5,000 typically represent about 5% to 10% of total spend for a company, BUT represent about 75% to 80% of spend volume. Between 2006 and 2009, overall check volume in the USA decreased 10% while card-based transactions increased 7%* 2009, more than 75% of total payments were electronic and 60% were made using some type of card instrument* *U.S. Federal Reserve System (2011) ‘The 2010 Federal Reserve Payments Study’, April

7. Why P-Cards? Reduce POs and invoices Electronic Payment One Statement Broaden Vendors and Categories Agency & Cardholder convenience Cash Flow Eliminates lost, stolen or returned checks Rebate Simplify vendor maintenance Immediate Payment to Vendor Visibility and Transparency Potential for Discounts for Fast Pay

8. COST SAVINGS Reduce transaction processing costs and time Average cost of traditional PO process: $93* Average cost of P-Card process: $22* Savings per transaction: $71* Reduction in procurement cycle time: approx 12 days Based on 2009 figures, this is an Administrative Cost Savings of over $7.9 million Based on 31,000 POs Processed Under $5,000 in FY10, this is an Administrative Cost Savings of over $2.2 million *2010 RPMG Research, P-Card Benchmark Survey Results

9. PO vs P-Card Comparisons P-Card 100% Transparent to the Public via Web Limits on Types of Purchases Made Rebate Small Town/Remote Business Acceptance 100% External Continuous Monitoring 1 Voucher per Billing Cycle to Bank Tracked Fraud & Misuse Data $22 – Cost per Transaction Purchase Order Only through Open Records Requests No Limits on Types of Purchases Made No Rebate Limited Acceptance Limited External Monitoring 1 (or more) Voucher (s) per PO No tracking of Fraud & Misuse $93 Cost per PO

10. Revenue Sharing Provided to all participants based on Total Dollar Spend Average Transaction Size Speed of Pay Divided among participants based on agency spend

11. P-Card safeguards Safeguards are in place for security and control: State rules and procedures in place Card Design Approving Official one level above cardholder Frontend controls on P-Card process: Card limits Transaction limits Merchant Category Code (MCC) restrictions Audits - State Auditor & Inspector, OMES, Central Purchasing Bank continuous monitoring Required signed cardholder agreement Transparency on Open Books Every Agency should have a back-up P-Card Administrator. This is important in case someone is out of the office during end of the month processes.

12. Open Books All transactions are listed on the State of Oklahoma Open Books website, listing Cardholder’s last name, first initial Vendor Amount of transaction TRANSPARENCY

13. Open Books

14. PARTICIPANT RESPONSIBILITIES Protect the P-Card as if it was your own personal card Use of the P-Card is limited to the person whose name is on the card Know the laws and rules for using the P-Card Attend P-Card training- held once a month You must retake the class every two years Obtain itemized receipts for all purchases Reconciliation and approval required monthly

15. Executive Steering Group State Purchasing Director State P-Card Administrator Agency P-Card Administrator Agency Approving Officials Agency Approving Officials P-Cardholders Organization Tammy Howard Scott Schlotthauer

16. P-Card Limits There is no limit on the amount of a P-Card transaction for the following: Statewide Contract purchases Regulated Utilities Interagency Payments Professional Services as defined in 18 O.S. § 803 For any other transaction with a state purchase card, the transaction shall not exceed $5,000.00

17. Statutory References All purchases shall be made in accordance with State statutes, rules, and these Procedures, which include but may not be limited to: Central Purchasing Act, 74 O.S. § 85.1 et seq. State Travel Reimbursement Act, 74 O.S. § 500 et seq. OMES, Central Purchasing Codified Rules, OAC 580:16 Office Management Enterprise Services (OMES) State Travel Procedures State Agency Internal Purchasing and P-Card Procedures

18. Purchasing Requirements P-Card purchases must comply with statutes, rules, and procedures, as well as: State Use Contracts Oklahoma Corrections Industries (OCI) Mandatory Statewide Contracts Non-Mandatory Statewide contracts Internal Purchasing Procedures

19. Methods of Purchase Walk-In; Telephone; Internet Make certain internet site is a secure location, for example: “s” on the end of https means it is a secure site; or Lockbox will appear on the site

20. Prohibited Purchases Split Purchasing; Entertainment; Per diem food; Cash or cash advances; Purchase of goods or services for personal use or not for official State use; Any transaction or series of transactions exceeding your P-Card limits; Motor fuel and automotive general maintenance; Automatic Drafts (we do not want them to have the card # on file); Gift Certificates except for employee recognition in §74-4121

21. Receipts Itemized Receipt must be obtained for all purchases Vendor Date of Purchase Description Unit price and quantity Transaction total Can be kept electronically or hard copies. Include with Statement at end of cycle There is no excuse- you MUST have a receipt for a credit or debit

22. Records Retention Maintain in a central location; Records include any transaction documentation, such as, statements, receipts, disputes, correspondence, etc.; Includes documentation in paper or electronic form and must meet: OMES Information Security Policies, Procedures & Guidelines Oklahoma Archive Commissions Rules Must be maintained for seven (7) years; If audit or litigation occurs, the records are required to be retained for two (2) years after issues are resolved or until the end of the seven (7) year period, whichever is longer

23. Reconciliation Cardholder must reconcile their own statement with transaction documentation Cardholder forwards statement and documentation to Approving Official for review Approving Official reviews Cardholder’s reconciled statement and transaction documentation for: Accuracy Completeness Appropriateness of the purchase Verifying transactions were conducted according to Statutes, Rules and Procedures

24. Payment The State makes one combined payment to the bank each month Late payment or non-payment of P-Card purchases will result in State Entity’s P-Cards being frozen or canceled, and may include additional action to obtain the payment and/or interest accrued

25. Questions?

26. STATE OF OKLAHOMA Travel Program by Tammy Howard

27. TRAVEL SW100-Travel Agents; 19 vendors on contract SW100B-City Pairs; American Airlines These have been allowed to die. We are currently bidding an online all in one solution.

28. Travel Until a new contract is awarded you may continue to use a travel agent of your choice or choose not to use a travel agent. Airfare may be purchased through a travel agent, online, or direct with an airline. Please remember that the state only pays for coach fares. To put it simply the only requirement is that you show due diligence and get the best fare possible whether it is airline, hotel, rental car, etc.

29. Statutory References All purchases shall be made in accordance with State statutes, rules, and these Procedures, which include but may not be limited to: Central Purchasing Act, 74 O.S. § 85.1 et seq. State Travel Reimbursement Act (STRA), 74 O.S. § 500 et seq. Central Purchasing Codified Rules, OAC 580:16 State Purchase Card Procedures Office Management Enterprise Services (OMES) State Travel Procedures State Agency Internal Purchasing and P-Card Procedures

30. TRAVEL HB 2197 Removes restrictions which will allow the State to solicit for a travel program using best value which best meets our needs Requires agencies to prepay for airline fees and lodging expenses using a P-Card (whenever possible)

31. Travel Purchases Except for airfare, lodging, taxi, shuttle, & rental car all other travel-related expenses are prohibited on the P-Card, such as: Meals, including room service Hotel Telephone (not business related) Internet (not business related) Traveler must pay out of pocket for all other travel related expenses Travel Claim may be submitted by the Traveler for reimbursement of travel related purchases prohibited on the P-Card (OMES Reimbursement Form 19)

32. Travel Purchases Airfare and Lodging considered separate transactions Active State Employees or Officials of the State Non-State Employees (as allowed by STRA) when Performing substantial and necessary services to the State and Directed or approved by appropriate department official Does not apply to Contractors or their agents Must follow the STRA statutes and OMES State Travel Procedures OMES may audit travel documentation (100% audited at this time) Non-compliance may result in loss of P-Card travel privileges and/or additional travel training being required

33. Reservations made by: Agency Travel Coordinator Card is in Travel Coordinator’s name Must complete Lodging Letter and send to hotel Traveler Card is in the Traveler’s name Limit of $5,000 per employee per transaction State Entity P-Card Administrator must set limits to $0.00 and place cards in “Suspense” status when not in use to deter fraudulent use. Travel Purchases

34. Travel No Shows If an employee is signed up to attend a Conference, stay at a hotel, or has scheduled a flight and does not show up for said event it is up to the employee to payback the money to the agency. Please check with your agency’s internal purchasing rules

35. Questions? P-Card Team: Tammy Howard 405-522-1654 Tammy.Howard@omes.ok.gov Vickie Rivas 405-522-4970 Vickie.Rivas@omes.ok.gov