State of Oklahoma Purchase Card Overview

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State of OklahomaPurchase Card Overview
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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

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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)

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P/Card - Background

• New Contract awarded in May, 2010
• Bank of America (BOA)
• Card is a Visa
• One Card instead of Three

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P/Card Participants

• Open to
• State Agencies
• Higher Education
• Political Subs
• Current Number of Participants
• 98 State Agencies
• 46 Higher Ed and Political Subs

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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

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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)

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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

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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

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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