1. Special Situations and Emergency Use of Cards NSAA/NASC Joint Middle Management Conference April 12, 2006

2. Agenda What constitutes an Emergency or Disaster? Using Purchasing Cards to prepare After the event Case Studies and Lessons Learned

3. Citizens or employees stranded, harmed or at risk of being harmed Infrastructure fails Unforeseeable or Foreseeable but unavoidable Military or terrorist attack Natural disaster or weather – hurricane, tornado, earthquake, tsunami, forest fire Accident – plane crash, oil spill Infrastructure breakdown – blackout, water supply failure, public services disruption Every disaster is a crisis but not every crisis is a disaster. Emergency and Disaster Defined

4. Emergency Preparation Develop a written plan Define your response team Prepare response kits Be Prepared – the 5 Ps: Prior Planning Prevents Poor Performance

5. Advance Preparation Some organizations require Executive Order Alert Bank of impending situation Activate Cards or change controls as needed Pre-purchase as much as possible Staff emergency centers, begin staging for relief and recovery Work with Bank to increase corporate credit limit as needed

6. Current list of p-cards Review controls Transactions limits Cycle Limits Merchant category controls Make sure those who need cards, have cards Plan for distributing cards, if necessary Plan for record keeping and accounting Advance Preparation

7. Differences in Usage Normal PurchasesDisaster Response 98% transactions under $2,500$25,000 - $300,000 20 state, 200 local agencies - US$515 MM per year One agency spent $7 million in two weeks Local, contracted vendorsSmall, unknown businesses, out-of-state suppliers, liquor stores, hotels Office supplies, equipmentGenerators, satellite phones, bulk fuel, rented trailers, storage, chainsaws

8. Unlimited parameters Batch changes or card by card Customer Support 24-7 Audit-ability for post-emergency spend analysis, preparation for future emergencies Detailed reporting assist in processing state and federal grant applications, insurance claims On the spot payment Flexibility to use non-traditional or out-of-state merchants Last minute travel Policy overrides: Buy now, explain later Using Pcards

9. Post Emergency Card Uses Restock shelters Remove debris Pull out trees Restore power Repair roads and bridges Provide for basic needs for employees and citizens

10. Post crisis Communicate with bank to return controls to normal status Review transactions Begin FEMA reimbursement practices Review Auditor requirements Collect any cards not needed

11. Lessons Learned Beware of opportunistic thieves Audit transactions after the fact Dont forget to change card parameters back to normal Be aware that unusual spending activity triggers security watches, so work with your bank COOP plan

12. Case Study City of Port St. Lucie, Florida 2004 Hurricane season 25 cards issued before the storm Decreased cards slowly after 1 st week Today only have 6 active emergency cards 471 transactions $2 million spent

13. Case Study Hillsborough County Florida General preparation Inefficient payment methods delayed preparation No need for cash when using Pcards Multiple transaction uses Able to use non-traditional vendors Accountability

14. Summary Be part of the plan Develop process and procedures Communicate with bank provider Communicate with users Know FEMA and Insurance requirements Review, evaluate, and improve

15. Jeri Winkleblack Vice President Account Manager Card Payment Solutions Global Treasury Services Tel: 850-561-1737 jeri.winkleblack@bankofamerica.com Bank of America, N.A. 315 South Calhoun Street, Tallahassee, FL 32301