1. State of Oklahoma Purchase Card Overview

2. P/Card – Background P/Card Program began in ◦ 2000 as a Pilot ◦ 2001 went permanent Contract awarded to ◦ BankOne that later changed to JPMorgan Chase ◦ Card was a MasterCard

3. P/Card - Background Standard P/Card ◦ $2,500.00 Statutory Single Transaction Limit ◦ $5,000.00 Statutory Single Transaction Limit effective August, 2009 Statute Changed in 2004 ◦ Allowed Statewide Contract purchases at unlimited dollar amounts ◦ Three (3) Cards:  Standard P/Card  Statewide Contract P/Card  Travel P/Card (Airfare Only)

4. P/Card - Background New Contract awarded in May, 2010 ◦ Bank of America (BOA) ◦ Card is a Visa ◦ One Card instead of Three

5. P/Card – Participants Open to ◦ State Agencies ◦ Higher Education ◦ Political Subs Current Number of Participants ◦ 98 State Agencies ◦ 46 Higher Ed and Political Subs

6. P/Card - Rebate Rebate based on ◦ Total Spend of All Participants ◦ Average Transaction Size of All Participants ◦ Speed of Pay (by Entity) Rebate Percentages ◦ Under old contract – Approx. 1.1% ◦ With new contract – Approx. 1.53%

7. P/Card - Rebate CY2005 Rebate ◦ Total Spend of All Participants – Approx $111M ◦ Total Rebate of All Participants-Approx $1 M FY2012 Projected Figures ◦ Total Spend of All Participants – Approx $215M ◦ Total Rebate of All Participants-Approx $3 M ◦ (Numbers could change depending upon spend)

8. P/Card - Advantages Prompt Payment to Merchants Reductions in Procurement Costs Improved Cash Flow Shorter Procurement Cycle Times Less Vendor Maintenance in PeopleSoft Expand Vendors Accepting State Business Controls Liability Protection against Fraud/Misuse Rebate

9. P/Card – Safeguards Card Design Training to All Participants Limits on Cards Approving Official one Level Above Cardholder Continuous Monitoring ◦ DCS Auditors ◦ State Auditors ◦ BOA Fraud Division

10. P/Card – Comparison to PO Purchase Card Purchase Order 100% Transparent to the Public via Web Only Through Open Records Requests Real Time View of Transactions Only Viewable after Invoice is Processed Blocked Vendors From Use No Vendors Blocked From Use Instant Changes to Caps on Transaction Values No Instant Changes to Caps on Values Caps can be Raised for Individual Purchases Untimely Process to Raise or Lower Caps Limits on Types of Purchases Made No Limits on Type of Purchases Made Rebate No Rebate *$22.00 Cost Per Transaction *$93.00 Cost Per Transaction 1 Voucher Per Billing Cycle 1 Voucher per Transaction Vendor Fraud Coverage No Vendor Fraud Coverage Small Town & Remote Business Acceptance Limited Acceptance 100% External Continuous Monitoring Limited External Monitoring Individual Purchaser is Personally Liable Limited Personal Liability Tracked Fraud and Misuse Data No Tracking of Fraud and Misuse Data Required Training to All Participants Limited Training to Limited Participants Required Refresher Training No Refresher Training *RPMG 2010 Purchasing Card Benchmark Survey