1. Commonwealth of Virginia Purchase Card Program Valerie J Smith, CPCP Assistant Director, Charge Card Administration Department of Accounts

2. Commonwealth of Virginia (COV) COV PCard program started in 1994 Managed by Department of Accounts 2 providers since 1994 – AMEX 1994-2005 – GE MasterCard 2005-Present

3. COV Purchase Card Program Purchase Card Program is Mandatory – All State Agencies including Higher Ed – Small Purchase Charge Card Transaction Limit up to $5,000 Monthly Credit Limit up to $100,000 – Gold Card Transaction Limit up to $50,000 Monthly Credit Limit up to $250,000

4. COV Purchase Card Program Quarterly Reporting on Utilization – Report on Statewide Financial Management and Compliance PCard Program Section – Overview of Purchase Card Program Volume – SPCC Utilization – Purchase Card Late Pays

5. COV Purchase Card Program Quarterly Utilization Reporting – Utilize relationship with GE MasterCard Supplier match on vendors paid with Check or EDI – Compare payments made by Check or EDI to PCard transactions $5,000 and below SPCC Program is mandatory, Gold cards are optional Utilization is based on Transaction Count

6. COV Purchase Card Program Quarterly Utilization Reporting (continued) – Agency 151 DOA 1 st Quarter Spend on PCards – 100 transactions Spend on MasterCard accepting vendors paid by Check or EDI – 25 transactions 100 + 25 = 125 total transactions for quarter – 100/125 = 80% utilization

7. COV Purchase Card Program Quarterly Utilization Reporting (continued) – State Threshold = 70% 30% Cushion – Any agency under 70% gets charged a fee for each transaction not put on the card FY06 $1 per transaction FY07 effective in 4 th Quarter $5 per transaction

8. COV Purchase Card Program Quarterly Utilization Reporting (continued) – Each agency receives detail of non compliance – Exemptions are addressed by DOA Examples include – Special Contract pricing – Seen MasterCard Utilization increase FY06 4 th Quarter 69% FY07 1 st Quarter 73% FY07 2 nd Quarter 76%

9. COV Purchase Card Program Quarterly Utilization Reporting (continued) – System is not Perfect Use Tax ID as the match criteria – Data provided by vendors via Acquiring Banks Not up to date or incorrect which causes errors – DOA decided to leave 30% cushion to take into account imperfections

10. COV Purchase Card Program Quarterly Utilization Reporting (continued) – Major Example of Systemic Limitations At one time Sams Club did not accept MasterCard Sams Club uses the same Tax ID as Wal-Mart Wal-Mart accepts MasterCard Charges made by check to Sams showed as non compliant – DOA considers this part of the 30% cushion unless transaction volume is predominant and then may consider exemption for this one vendor

11. COV Purchase Card Program Web Resources – DOAs Charge Card Administration Web Page http://www.doa.virginia.gov/Payroll/Charge_Card/Charge_Card_Main.cfm – Report on Statewide Financial Management and Reporting http://www.doa.virginia.gov/General_Accounting/Quarterly_Report/Quarterly_Report_Main.cfm

12. COV Purchase Card Program Additional Resources Valerie J Smith, CPCP Assistant Director, Charge Card Administration Department of Accounts Commonwealth of Virginia 804-371-7804 Valerie.Smith@doa.virginia.gov

13. COV Purchase Card Program Time for Questions…..