1. Purchase Card (P/Card) Program by Lisa Martin

2.  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.  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.  State Agencies  Political Subdivisions, for example:  Higher Education  Cities / Towns  Public Schools  Trusts developed under Title 60  City-County Health Departments

6.  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 affect employee’s credit, positively or negatively)

7.  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

8.  Traditionally, P/Cards were used for low-dollar spend such as indirect materials, supplies, services and non-capital items  Today large dollar spend and alternative items are put on cards

9.  Reduce POs and invoices  Electronic Payment  One Statement  Broaden Vendors and Categories  Agency & Cardholder convenience  Cash Float  Eliminates lost, stolen or returned checks  Rebate  Simplify vendor maintenance  Immediate Payment to Vendor  Visibility and Transparency  Potential for Discounts for Fast Pay

10.  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

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

12.  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 - SA&I, OSF, DCS  Bank continuous monitoring  Required signed cardholder agreement  Transparency & Open Books

13.  All transactions are listed on the State of Oklahoma Open Books website, listing  Cardholder’s last name, first initial  Vendor  Amount of transaction  Itemized Description if vendor is a “Level 3” vendor

15.  DateSupplierTransaction Amount Sales TaxCustomer Defined Code Line Item Detail Level I StandardXXX Level II Variable DataXXXXX Level III Detailed DataXXXXXX

16.  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  Obtain itemized receipts for all purchases  Reconciliation and approval required monthly

17. Executive Steering Group State Purchasing Director State P/Card Administrator State Entity P/Card Administrator State Entity Approving Officials State Entity Approving Officials P/Cardholders

18.  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

19.  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.  DCS, Central Purchasing Codified Rules, OAC 580:16  Office of State Finance (OSF) State Travel Procedures  State Agency Internal Purchasing and P/Card Procedures

20.  P/Card purchases must comply with statutes, rules, and procedures, as well as:  State Use Contracts  Mandatory Statewide Contracts  Oklahoma Corrections Industries (OCI)  Internal Purchasing Procedures  Remember required forms  OSF Form 115 for IT or Telecommunications  Accessibility  Inventory requirements

21.  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

22.  Office Supplies  Lumber and Hardware  Computer Hardware  Maintenance Supplies  Airfare and Lodging

23.  Split Purchasing;  Entertainment;  Per diem food;  Transportation – except airfare and vehicle rental on SW contract;  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;  Gift Certificates except for employee recognition in §74-4121

24.  Itemized Receipt must be obtained for all purchases  Vendor  Date of Purchase  Description  Unit price and quantity  Transaction total  Include with Statement at end of cycle

25.  Receiving documents must be obtained for all purchases  The receipt may be the receiving document for goods or services received at time of purchase  The document accompanying the goods or services, such as a packing slip, may be the receiving document for goods or services received after time of purchase  Include with Statement at end of cycle  Signature stamps are not permitted

26.  Maintain in a central and secure location;  Records include any transaction documentation, such as, statements, receipts, disputes, correspondence, etc.;  Includes documentation in paper or electronic form and must meet:  OSF 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

27.  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

28.  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

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

31. Travel Program by Lisa Martin

32.  SW100-Travel Agents;  SW100B-City Pairs; and  SW200-Procurement Card;

33.  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.  Central Purchasing Codified Rules, OAC 580:16  State Purchase Card Procedures  Office of State Finance (OSF) State Travel Procedures  State Agency Internal Purchasing and P/Card Procedures

34.  Purpose  The purpose of the statewide contract for Travel Agent Travel Services is to enable state agencies to obtain travel services through contractually designated travel agencies at the lowest cost, with excellent customer service for traveler itineraries which meet the needs of state agencies.  Intent  It is the intent of the state to award contracts only to a sufficient but limited number of bidders whose competitive bids meet the requirements of the solicitation and are most advantageous to the state (lowest price and best bids) consistent with necessary geographic coverage.

35.  Coverage by Zone  Zone 1 Oklahoma County  Zone 2 Payne County  Zone 3 Tulsa County  Zone 4 Cleveland County  Zone 5 Rest of State  Designated as High or Low Travel Areas

36.  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)

37.  Purpose  The purpose of the statewide contract for City Pairs Air Fare is to provide airline fares for 130+ different domestic locations and 30+ international locations. The fares listed on the contract are one way pricing, fully refundable without any advance purchase, excursion or length of stay.  Airline on our contract:American Airlines

38.  Features  The fare placed under contract shall be available on all tickets purchased during the contracted period  The contract fares are applicable for state employees on state official business and persons who are performing substantial and necessary services to the State which have been approved by the appropriate department official and traveling directly at government expense  (e.g., Wards of the State and their escort, Witnesses for State trials)

39.  Contracted fares are not applicable to:  Contractors  Personal Travel  Payment for air fare shall be made through the entity’s Purchase Card (P/Card)  State travelers will be required to utilize contract flights whenever schedules permit and there is no lower applicable fare for the days of travel and routing being utilized  Where the State City Pairs airfare is the lowest available fare meeting requirements and seats are available, state agencies and contract travel agencies shall give preference to the airline on the state contract as opposed to a matching price with a non-contract airline

40.  The state reserves the right to utilize transportation provided by other carriers:  When the transportation is offered to the general public at a fare which is less than the State Contract fare; or  When the trip routing between city/airport fares is not the most direct or compatible with the traveler’s itinerary. Note: Requires agency department justification/approval.

41.  Codes  Fare codes of YCAOK and –CAOK have been established for the City Pairs  The YCAOK fare is the last seat availability  The -CAOK fare basis code indicates a market that is capacity controlled by the airline with a limited number of seats available at the contract rate.  The -CAOK fare will be less than the YCAOK and will save the State of Oklahoma substantial dollars over the course of a year.

42.  Fiscal Year 2012 (through May 11, 2012)  Total Dollar Spend for Travel (State Agencies & Higher Ed): Approx. $25 M  This includes transportation and lodging  Total Dollar Spend for Travel (State Agencies Only):  Transportation: Approx. $1.1 M  Lodging: Approx. $2.7 M  Total: Approx. $3.9 M

43.  Purpose  The P/Card allows agencies to purchase travel related services (airfare and lodging) allowed by the State of Oklahoma P/Card Procedures.

44.  Except for airfare and lodging, all other travel-related expenses are prohibited on the P/Card, such as:  Meals, including room service  Hotel Telephone or Internet  Parking  Taxi Cabs  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

45.  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 OSF State Travel Procedures  OSF may audit travel documentation  Non-compliance may result in loss of P/Card travel privileges and/or additional travel training being required

46.  Reservations made through Agency Travel Coordinator  Use a Travel Agent on Statewide Contract (SW100)  Unlimited Dollar amount  Travel Agent searches airfare and compares the lowest fare found to what is on Statewide Contract SW100B City Pairs and books whichever fare is the lowest meeting the traveler’s needs  SW100B City Pairs is Refundable airfare  Use statutory exception (74 O.S. § 85.45k(B)) to Travel Agent on Statewide Contract (SW100)  $5,000 per employee per transaction

47.  Statutory exceptions (74 O.S. § 85.45k(B)) to using SW Travel Agent:  State agency can acquire air travel at less cost  Must get a quote from the Travel Agent and keep with transaction documentation  Air travel originates outside the state and it is impractical for the agency;  Air travel is due to an emergency and time does not permit use of the contract travel agency;  Air travel is part of a package arrangement by an organization that schedules a meeting or conference  Reason for the exception must be documented in the Allocation description field in Works

48.  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

49. Lisa Martin State P/Card Administrator 405-522-1654 Lisa_martin@dcs.state.ok.us