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State of Nevada: Purchase Card Overview – Agency intro April 17, 2014.

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Presentation on theme: "State of Nevada: Purchase Card Overview – Agency intro April 17, 2014."— Presentation transcript:

1 State of Nevada: Purchase Card Overview – Agency intro April 17, 2014

2 2 Introductions Bank of America Overview Individual rebate program Each Dept will receive their rebate How they pay their bills will only impact their Dept rebate What we expect from you You are Purchasings ongoing POC for issues Identifying POCs for implementation to work with the Bank Oversight of Dept payment timeliness Adding and deleting PCA/TCAs Transition and Implementation Collecting old cards and distributing new cards Transition and Implementation, cont. Contacted by Pamela Stalling to schedule construction of each agencys P-card and T-card program What information the agencies will need to have for the program set up Transaction Management Online Application in Works Approval levels determined by agency Data import into ADVANTAGE for payment Payment Terms Options from Bank and determined by the Dept Err on side of caution, it can be changed to a quicker payment requirement at a later date to drive rebate Questions and Answers Agenda

3 33 Introductions - Bank of America Merrill Lynch Offering a dedicated, Nevada focused team… CLIENT TEAM EXTENDED TEAM - CARD …backed by strong, committed resources State of Nevada Client Team Extended Team Greg Titus SVP, Senior Client Manager Jeff Moore SVP, Senior Treasury Solutions Officer Beverly Drury SVP, Senior Product Sales Specialist Holly Campbell VP, Senior Card Account Manager Leadership Implementation Pam Stallings VP, Public Sector Business Leader Michael Bell Treasury Services Sr. Advisor Dedicated Card Servicing ext

4 Nevada Consortium Overview

5 55 Nevada Consortium Public Sector Group Overview The NVCPSG, introduced in 2006 has continued to see year over year volume and membership growth. Membership provides dedicated support staff, a forum for peer-to-peer networking, and the ability to earn additional rebate basis points. The fiscal year spend of $55 million resulted in over $575,000 in revenue sharing back to qualifying members. The NVCPSG volume has more than tripled since REVENUE SHARING BENEFITS STRONG OUTLOOK GROWTH

6 66 Current Members NVCPSG Member Agency Product Carson City School District Purchase City of Carson City Purchase City of North Las Vegas Purchase, ePayables City of Reno Purchase City of Sparks Purchase Clark County ePayables Clark County School District ePayables Clark County Water Reclamation - (CCWR) Purchase Douglas County Purchase Incline Village General Improvement District Purchase Las Vegas Metro Police Purchase, Travel Lyon County Purchase LVCVA Purchase, Travel NSHE – UNR ePayables Nye County Purchase RSCVA Purchase State if Nevada *** Purchase, Travel Storey County Purchase Truckee River Flood Management Authority Purchase Washoe County Purchase, ePayables

7 77 Nevada Consortium Contract Overview NV Consortium Contract In March, State of NV linked to NV Consortium Contract for Card Services Approved by State Board of Examiners NV Consortium Benefits Total Annual NV Consortium Volume drives revenue sharing potential Annual Rebate eligibility requirements include Calculation period = Fiscal year - July – June On-time payments in full to maintain eligibility

8 88 Nevada 2014 Rebate Grid NVCPSGCycle days Standard Transaction Multiplier TableGrace days Excludes Large Ticket Annual USD Card Volume Tiers REBATE BASIS POINTS $500,000$9,999, $10,000,000$14,999, $15,000,000$19,999, $20,000,000$24,999, $25,000,000$29,999, $30,000,000$34,999, $35,000,000$39,999, $40,000,000$44,999, $45,000,000$49,999, $50,000,000$64,999, $65,000,000$79,999, $80,000,000$94,999, $95,000,000$109,999, $110,000,000$124,999, $125,000,000$139,999, $140,000,000$154,999, $155,000,000$174,999, $175,000,000$199,999, $200,000,000$224,999, $225,000,000$249,999, $250,000,000$274,999, $275,000,000$299,999, $300,000, Large Ticket Interchange Multiplier TableCycle Days Qualified TransactionsGrace Days Annual Volume REBATE BASIS POINTS $ (1 BPS = 0.01% or or 60 BPS = 0.60% or )

9 99 Nevada 2014 Rebate Grid (1 BPS = 0.01% or or 60 BPS = 0.60% or ) NVCPSG Cycle days Standard Transaction Multiplier Table Grace days Excludes Large Ticket Annual USD Card Volume Tiers REBATE BASIS POINTS $50,000,000$64,999, Large Ticket Interchange Multiplier Table Cycle Days Qualified Transactions Grace Days Annual Volume REBATE BASIS POINTS $

10 10 Rebate Calculation criteria (1.) Volume (standard) Tier = $50,000,000 - $64,999, Cycle/Grace – (Speed of Pay) 2. Your (standard transaction) program volume 4. (Large Ticket vol) cycle/grace – (if applicable) VolCycle / graceBPSRebate $500,00030 / %$7, / %$7, VolCycle / graceBPSRebate $1,000,00030 / % $ 14, / % $ 14,700 (1 BPS = 0.01% or or 60 BPS = 0.60% or )

11 Works - Card Management Platform

12 Works: All-inclusive Program Management 12 Seamless integration into your business processes Easy to navigate with minimum clicks to: o Define accounting codes and cost allocations o Manage roles and access o Administer cards and profiles o Control spending and access at multiple levels o Create customized reports o Enable simplified cardholder reconciliation o Provides robust audit and control functionality Convenient spend control profiles apply to multiple cards o Saves time o Increases control 99.96% system availability A solution that meets all of the State s requirements... and offers even more. We can meet all of your required technical elements. Let us demonstrate.

13 Purchase Card Implementation

14 14 Streamlined Agency Implementation servicingimplementationrelationship Builds reporting platform and hierarchies to support reporting, data integration Provides training to program administrators Effective resource coordination from a single source Proven timely project delivery Updates throughout to track progress and ensure satisfaction Global & regional account managers share: Best practices Overall growth strategies and program optimization Acts as a point of escalation Develops an approach to address specific client challenges Identifies and improves processes Provides a roadmap for re- engineering Performs process reviews Cardholder/company-level support Local card, language support in local time zone Coordinated by a team you know and trust Specialists assist with operational questions Technical resources to complement your current team Company-level servicing provides in-region support; key point of contact for the program administrator; and assists with card program management

15 15 Four phases of a successful implementation define Define project goals, team roles & responsibilities Agree on program scope: phases, timeline for card issuance, data integration and project completion Execute the documentation required Finalize the project statement and issue project plan design Collect the data needed to configure your program, to support your automation, control and spend processes objectives Review existing policies, procedures for card use Prepare the communication plan Data integration file specification deliver Verify the solution supports the operational processes to achieve the project goals Complete systems configuration Build the data integration file and set-up connectivity System training Deploy the solution and issue cards review Post go-live monitoring & validation Initiate the transition to business as usual sustaining operations The Account Servicing team takes over Post-implementation review

16 Program Optimization and Marketing

17 17 Program Optimization Maximize your Card Usage Are you getting the most benefit from your Card program? Do you have the ability to move additional approved spending from check to Card? Is my agency utilizing the Card in all departments? Are all departments using Card whenever possible? Is the Card being used for travel related expenses? Is my agency including in bids that Card is the preferred form of payment? Question POs for low dollar purchases

18 18 Individual Program Optimization and Consulting Opportunity Consultative analysis & planning Provides benchmark and best practice information Identifies opportunities, benefits of expanding your card program Develops a tactical card expansion plan to help you achieve your financial goals Provides periodic reviews Supplier target & enrollment services Identifies and helps you prioritize suppliers who accept card payments at the amounts you need to pay Engages our Merchant Services group to discuss enrollment opportunities for suppliers who do not accept card payments Enables key suppliers to accept card payments

19 19 Program Marketing How do you increase key Agency participation? As primary state bank for over 25 years we know all key agencies We will meet directly with agencies to outline the benefits of program participation We can personalize Works demonstrations to address individual Agency issues Regularly scheduled member user group meetings to promote ongoing peer networking and gain industry knowledge This has been key to the success of the Nevada Consortium No other bank offers this level of marketing support!

20 20 A Track Record of Growth

21 21 Better Fraud Control Benefit Summary Improved fraud monitoring Improve process efficiencies Integration with accounting system Decrease operational expenses Increase revenue without increase spending Shift of existing spending Strong support network through agency & local government peers

22 Appendix

23 23 Works® Real-time manipulation of credit availability Works ® Easy integration into your ERP system Online hierarchy management Card maintenance and Active Card Controls Spend monitoring for encumbered funds and discretionary/ incremental funds Pre-approval and post- approval workflows One of the most innovative web-based travel and purchasing card solutions available Data can easily be integrated into ERP systems Tools to make card the payment method of choice: – Real-time card controls – Funds pre-approval process – Declining balance card issuance – Merchant Category Code (MCC) restrictions and transaction limits to purchasing authority – Card issuance or suspension – Add or close cards in real-time Simplifies management reporting – Online, on-demand, configurable reporting – Spend by vendor reports Accommodates unique cardholder, manager, auditor, accountant and administrator permissions Existing HR data feeds for account, addition, deletion, and maintenance Level III purchasing and travel data

24 24 Works: Differentiators Credit refresh feature Active Card Control TM Accounting support Pre-purchase approval Flexibility to make one- time purchases for optimized control Increase/decrease funds on card, disable cards in real-time Enforce corporate and individual spending policies by blocking specific Merchant Category Codes (MCCs) Ability to monitor spending towards projects or grants with spend monitor Map, configure GL segments or use GL assistant to enable cardholders to pick from a list of cost center codes Upload changes or additions to GL Segments or Valid combinations Ability to move large- dollar transactions to purchasing cards by using electronic pre- purchase approval by management Ability to control when a cardholders credit line will refresh even with central payment option

25 25 Comprehensive card program management Why Works? streamlined reconciliation timely data & reporting self-service administration web-based solution 24x7 online access Permissions-based sign- on Intuitive, user-friendly navigation Works Resource Center – Individual account status – Central starting point for tasks – Alerts and updates No software installation or maintenance Request, activate and close cards online Modify card settings in real-time Enforce card controls at the point of purchase – MCC Group restrictions and limits – Transaction & credit limits Audit logging of card program changes and actions Enables distributed or centralized tasks Automates and improves accuracy of allocation Hands-free reconciliation reduces manual activities to exception handling Supports post-purchase transaction details, reallocation and approval Offers transaction file export to financial application Improve reconciliation with transaction matching Transaction data updated daily for immediate access to spending information Permissions-based online access to data and reports Visibility into individual or group spending activity Full transaction data export for further analysis

26 26 Robust payment management capabilities Why Works? dynamic credit management hands-free reconciliation business rule engine transaction workflow Facilitates user review and accountability Enables appropriate approvals and controls, both pre- / post- purchase Streamlines cross- departmental data flow Enables policy enforcement at the time of request and the point of purchase Facilitates spending authority matrix Reduces process flow bottle-necks by automating certain decisions Applies policies to transaction types generating alerts Offers flexible credit limit management – discretionary vs. pre- approval Facilitates dynamic adjustment of individual credit limits for pre- approved purchases Enables credit limit restoration based on user compliance Automation reduces manual activities to exception-handling Enforces cardholder reconciliation activities via delayed restoration of funds feature

27 27 Configurable reports options Why Works? Reporting made simple Select from 650+ data fields to create an endless variety of report templates Report categories Filter examples 650+ data fields Card Purchase request Audit Spend Defined groups Employees Card numbers Card profiles Card status categories Card statement periods Fields include, but are not limited to: Allocation Cardholder Card Transaction Card decline Card profile Card renewal date Cardholder spend limits

28 28 Exact Authorization Override Value drives efficiencies and provide flexibility to Purchasing, Travel, Commercial, and One Card cardholders Before Exact Authorization Override In order to enable a purchase outside of standard card controls, the PA would move the card out of the existing profile to a specific profile and then schedule the card to move back to the last profile after a period of time After Exact Authorization Override EAO drives efficiencies for card clients by eliminating the need to move cards in and out of profiles, instead, enabling exception, one-off purchases by placing the card in an exact auth profile Make specific purchases outside of normal card controls, while retaining strict controls over the card program.

29 Uploading receipt images 29 Uploading receipts into Works: 1.Once enrolled in the program, a cardholder logs into Works. 2.The cardholder selects the transaction, reimbursement request or expense folder which corresponds to a receipt image. 3.The accountholder clicks on the Single Action Menu (SAM), and selects Manage Receipts. 4.The user clicks Add, selects the receipt image to be uploaded, and clicks OK. Retrieving receipts: 1.A cardholder/manager logs into Works. 2.The cardholder/manager selects a transaction, expense report to view attached receipts. 3.The user clicks on the name of the image to view the image. 4.The user can then print and save PDF images on their computer. Simple Receipts can be attached directly from the desktop to the transaction, reimbursement*, or expense report. * Users can upload receipts from their desktop directly into Works. Receipts can be attached to the transaction, reimbursement* or expense folder. Additional receipts can be stored in the Receipt Store until needed. * With deployment of Reimbursements project; expected in December 2013

30 30 Declining balance card features Value provides greater control and visibility in all card programs * Prepaid Card BofAML also offers business funds prepaid cards for employees with business expenses. Receive reporting on purchase and transaction activity by cardholders. Need a fixed value card for personal use? For a fixed value card for a non-employee or for consumer-related purchase activity, our personal funds prepaid card solution is a perfect fit. Common uses for events, projects, grants, etc. Funded with a single amount for a specific business- related purpose and time period. Funds are not restored with a payment or on a cycle date. Funds decline as purchases are made until the funds are spent (or the time period is passed). Used only by employees and only for business transactions. Detailed reporting on all transactions in Works. Declining balance for business expenses

31 31 Works Card Shuffler Value convert check payments to electronic payments Use purchasing cards for non-recurring, high-volume payments securely and efficiently Card number is only available to that vendor once payment is approved Using Works Active Card Control TM, cards lay dormant with no available funds until they are funded for vendor payment by an organizations claims/warranty or eProcurement system Control card limit/expiration date of each payment Each card account number can correspond to one payment enabling ease of reconciliation Automated reconciliationConvert additional spend to cards One-time payments to single vendors

32 32 Generating purchase requests Card Shuffler Simple & Secure Shuffler selects a card account to be used for the payment when a purchase request is generated through ePayables. Account number is automatically assigned and available to be viewed through a secure method. Notify the vendor of the card account number. Using the patented Active Card Control technology, each card is funded with the exact amount to be paid. Select the shuffler as the payment method. Once Shuffler selects a card account, authorized users may run a configurable report or view the purchase request details to locate the selected full account number. Communicate the account number to the vendor. Automatic Automatically generated purchase requests Manual Manual purchase requests

33 Why MasterCard for Purchasing and Travel Card Programs

34 MasterCard Information Advantage Manages a full range of global payments brands and related products Sets and enforces policies and rules Establishes standards and procedures for merchant acceptance and settlement MasterCard has a global data repository using a standardized global format, Visa does NOT

35 Acceptance MasterCard Branded Cards Are Accepted Globally at Nearly 36 Million Locations Total MasterCard Acceptance Locations* (in Millions) WorldwideAPMEAEuropeUnited StatesLatin AmericaCanada MasterCard has a material and quantifiable acceptance advantage over Visa in the US due to Visas lack of acceptance at Sams Club and Visas weaker acceptance in industries like utilities, education and healthcare Purchase Card Level 3 Line Item detail from over 400,000 B2B suppliers* Currently 3 out of the top 5 largest utilities accepts MasterCard and not Visa* Southern California Edison (Los Angeles metro), Florida Power & Light (state of Florida) and Con Edison (New York metro) do not accept Visa * source: MasterCard Worldwide Q4, 2012 SEC report

36 36 Notice to Recipient "Bank of America Merrill Lynch" is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered as broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.FINRASIPC This document is intended for information purposes only and does not constitute a binding commitment to enter into any type of transaction or business relationship as a consequence of any information contained herein. These materials have been prepared by one or more subsidiaries of Bank of America Corporation solely for the client or potential client to whom such materials are directly addressed and delivered (the Company) in connection with an actual or potential business relationship and may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with us. We assume no obligation to update or otherwise revise these materials, which speak as of the date of this presentation (or another date, if so noted) and are subject to change without notice. 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