1. HOUSE BILL 192 AND YOU: UNDERSTANDING, IMPLEMENTING AND ENFORCING GEORGIA’S NEW P-CARD LEGISLATION

2. HOUSE BILL 192 - BACKGROUND  Authored by State Representative Alan Powell (R-Hartwell)  Passed State House of Representatives 167-0  Passed State Senate 46-4  Effective as of July 1, 2015  Supported by ACCG, GMA  Applies to ALL purchasing cards not just state cards

3. THE PURCHASING CARD PROGRAM - BACKGROUND  The Purchasing Card (P-Card), issued by Bank of America, is a method for employees to make official purchases  Local governments can benefit from using the P-Card by eliminating purchase order paperwork. The P-Card offers a consistent and timely reconciliation processes and electronic management controls.  The P-Card is one of three authorized cards (WEX Fuel Card / American Express Travel Card) for use by State Agencies, units of the University System of Georgia, and technical colleges within the Technical College System of Georgia.  Local governments and State Entities not under State Purchasing Division (SPD) authority are not required to follow the Statewide Purchasing Card Policy; however, this is recommended. Each entity is responsible for implementing a P-Card policy and ensuring compliance with that policy

4. BENEFITS OF THE P-CARD PROGRAM  Local participants can earn a rebate based on their annual purchase volume providing they meet the minimum purchase dollar threshold of $20K.  Reductions in procurement costs & improved cash flow  Liability protection against fraud and misuse  Access to detailed spend data  Possibility of reducing or eliminating use of petty cash

5. SAFEGUARDS IN THE P-CARD PROGRAM  Full program oversight, reconciliation and workflow approval with one single tool  Optimize your processes and spending controls through MCC Blocks, Workflow and general ledger integration  Automate your expense allocation and information management activities  Create, access and share on-demand reporting  Integrate your card transactions into current ERP system

6. HOUSE BILL 192 – KEY PROVISIONS  Each county, municipal corporation, local school system, local authority or consolidated government who issues purchasing cards or credit cards to its elected or non-elected officials must create, publicly vote on and pass specific policies regarding the use of government purchasing or credit cards no later than January 1, 2016.  An elected or non-elected official of the aforementioned governmental entities is prohibited from the use of a government purchasing or credit card unless such purchases are solely for items or services relating to the official's public duties and in accordance with guidelines that are adopted by the county, municipal corporation, local school system, or consolidated government.  Purchases made by a government purchasing or credit card shall be available for public inspection  P-Card polices adopted by governments must be available for public inspection  Penalties for public officials who misuse public funds were clarified and increased by authorizing local district attorneys to pursue felony charges against elected officials and government employees who buy personal items with purchasing cards.

7. HOUSE BILL 192 – KEY PROVISIONS  Policies must include: 1. a designation of officials who may use purchasing or credit cards 2. designation of a card program administrator 3. a requirement that authorized users must sign a cardholder agreement 4. transaction limits 5. a description of purchases that shall be and shall not be authorized 6. a process for auditing and reviewing purchases made 7. procedures and penalties for addressing violations made with such cards including, but not limited to, revocation of card privileges and prosecution.

8. A HELPING HAND: GMA AND ACCG  The Georgia Municipal Association (GMA) and the Association of County Commissioners of Georgia (ACCG) worked closely with Representative Powell on HB 192  GMA and ACCG will provide draft legislation for use by local governments seeking to comply with HB 192  A copy of the draft legislation has been provided to you and can also be found at: http://www.gmanet.com/Advice-Knowledge/Sample-Documents/Model-Purchasing-Card-Policy.aspx http://www.gmanet.com/Advice-Knowledge/Sample-Documents/Model-Purchasing-Card-Policy.aspx

9. QUESTIONS?