State of OklahomaState of OklahomaPurchase Card OverviewPurchase Card Overview

P/Card – BackgroundP/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

P/Card - BackgroundP/Card - BackgroundStandard 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)

P/Card - BackgroundP/Card - BackgroundNew Contract awarded in May,

2010◦Bank of America (BOA)◦Card is a Visa◦One Card instead of Three

P/Card – ParticipantsP/Card – ParticipantsOpen to

◦State Agencies◦Higher Education◦Political Subs

Current Number of Participants◦98 State Agencies◦46 Higher Ed and Political Subs

P/Card - RebateP/Card - RebateRebate 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%

P/Card - RebateP/Card - RebateCY2005 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)

P/Card - AdvantagesP/Card - AdvantagesPrompt Payment to MerchantsReductions in Procurement CostsImproved Cash FlowShorter Procurement Cycle TimesLess Vendor Maintenance in

PeopleSoftExpand Vendors Accepting State

BusinessControlsLiability Protection against

Fraud/MisuseRebate

P/Card – SafeguardsP/Card – SafeguardsCard DesignTraining to All ParticipantsLimits on CardsApproving Official one Level

Above CardholderContinuous Monitoring

◦DCS Auditors◦State Auditors◦BOA Fraud Division

P/Card – Comparison to P/Card – Comparison to POPO 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