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WASBO’s

P-card Program

October 2013

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States in the P-card Program

Illinois (Sponsor) with BMO/Harris Bank (Chicago)

Indiana

Iowa

Wisconsin

Alaska

Montana

Oregon

New Hampshire

Washington (~35 districts)

– SD/ESDs/Other Educational Agencies/Organizations

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Advantages to the WASBO Program

Creates a user group/support

network for educational agencies

– Weekly training sessions with BMO

– Other user group/training/work sessions

offered by WASBO

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Who is the BMO Financial Group?

BMO Incorporated in 1817…opened NY office same year

Harris Bank (Chicago):

– Founded in 1882

– 100% owned subsidiary of BMO since 1984

– Offices or branches in Arizona, California, Florida, Georgia, Illinois,

Indiana, New York, Texas, Virginia, and Washington

– 6,700 employees across the U.S.

– Acquired Northwestern Trust in Seattle in 2002

Financially strong: AA- rating by S&P

Top 10 card issuer in North America

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detailsOnline Management System

This dynamic web-based system enables you to: Submit, approve, and cancel card accounts

Adjust spending limits/manage Cardholder profiles

View Cardholder charges

View/print management reports

A library of over 75 standard reports available - or -

create your own reports

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Support… When You Need It!

Training provided to each district - Dedicated Implementation Manager @ BMO

Help at the end of the telephone line - Call Client Services Center 8am - 6pm local time, Monday-Friday.

Training - Weekly web cast training sessions available in interactive format providing high-level overview covering the basic concepts and functionalities of detailsOnline, and a second detailed training which drills down into individual components and functionalities of the system.

User documentation - documentation is split into 2 formats:

– Quick Reference Guides provide an overview of the most popular detailsOnline functions.

– Detailed User Guides in-depth understanding of the concepts involved as well as user-friendly, task-oriented, step-by-step instructions.

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District Benefits

Superior system control & flexibility

– Set spending limits for each card

– Set transaction limits per charge

– Set monthly limits

– You control:

what can be purchased

where purchases are made, and

limit the amount per transaction

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District Benefits

Easier on Accounts Payable

– One monthly payment vs. multiple payments to

multiple vendors

– Reduction in paperwork

– Fraud prevention & protection through BMO and

MasterCard

– Detailed reporting available 24/7

– Easy online administration and dedicated customer

support

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District Benefits

Billing Statements (Online or Paper)

– Cardholder Report

– Individual Reports (Individuals have online capabilities)

Payment Methods

– ACH (Preferred)

– Warrant/Check (Data at Bank is retained for 25 months,

then bank archives for 7 years)

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Vendor Benefits

Reduces vendor paperwork & transaction costs

Vendor paid within 48 hours of shipment/pick-up – Are you currently losing discounts?

– Late payment fees?

Payments deposited directly in designated bank accounts & eliminates need for vendor to inquire about when payments will be made

Reduces/eliminates the issues of partially filled orders

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P-card Informational Packet

(All are at wasbo.org/member services/p-card)

How to Get a P-card Program Started in Your District/ESD

Resolution Authorizing Individual Procurement Cards

BMO ePurchasing Solutions – Account Agreement

Application to Participate in WASBO’s P-card Program

Individual Procurement Card Use Agreement

P-card Power Point Presentation

GFOA Recommended Practice

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Completing the Application

Complete following and send to WASBO:

– Board of Directors resolution approving participation

– Application to Participation

Designate local P-Card Administrator(s)

Tax ID Number

– BMO Member Account Agreement

Select Closing Date of 5th or 20th (during card training)

Select Settlement Period (7-14-21 days)

– SD’s last 3 years of audits

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Training & Issuing Cards

WASBO will forward to BMO within a few days

BMO reviews and processes (approval in ~6 wks)

SD Receives “Purchasing Card Handbook” from BMO

Schedule and receive online training (Phase 1)

– Usually a 30-45 minute phone call with BMO

Training is to identify cardholders and customize and set

parameters for each cardholder

– Cards delivered within approximately 14 business days

Issue cards to selected employees

– Employee signs user agreement

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Purchase, Train, Review & Process

Make Purchases (Refer to List)

Phase 2 training on how to retrieve and use

reports from detailsOnline

Review and monitor individual card use

Reconcile and process monthly bill

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Expanding Usage of the P-Card

– KCDA – Travel – Technology Levies – Courier Services – Electrical Supplies – Equipment Leasing – Fax Machines – Fax Supplies – Freight – Furniture – Guard Services – Hardware – Relocation Services – Industrial Supplies – Inventory – Janitorial Supplies – Legal Services – Locksmith – Maintenance Contracts – Mailing Equipment – Medical Exams – Microfiche – Nursing Services

– Utilities – Office Supplies – Overnight Mail – Pagers – Parking – PC Leasing – Periodicals – Pest Control – Photocopying – Photographic – Printing – Production Services – Promotional Items – Virtual Offices – Storerooms – Subscriptions – Clerical Services

Trade Shows – Training – Uniforms – Work Orders – Fleet Costs

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Rebates…

Illinois ASBO (Sponsor) does not

retain any rebate funds generated by

Washington State School Districts

Washington State SD’s will receive

rebates generated by their purchases

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Rebate Schedule

Current Rebate Tiers

(Program runs annually from April 1 to March 31 with payouts in June)

Settlement Periods

Net 7 Days Net 14 Days Net 21 Days

Annual Purchasing Volume (*) Rebate % Rebate % Rebate %

$301 Million and above 1.31 1.25 1.19

$251 to $300 Million 1.30 1.24 1.18

$201 to $250 Million 1.26 1.20 1.14

$151 to $200 Million (Current) 1.24 1.17 1.10

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Rebate Schedule

(*) The Annual Purchasing Volume Tier level is determined

by total purchases by all districts from every state under

this program.

When the Annual Purchasing Volume Tier is determined at

year end, the districts rebate amount is calculated by

taking the % from the Settlement Periods column (7, 14 or

21 days) as selected by the district when they signed up for

the program, and then, multiplied by the districts own

annual purchasing volume total.

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Rebate Example

Annual Purchasing Volume for 07-08 = $55

Million (Tier 5)

“Sample SD” selected 7 day settlement period

Annual procurement purchases = $1,000,000

– (Objects 5, 7, 8 & 9 = $4,000,000) x 25% = $1,000,000

Rebate is $1,000,000 x .0115 = $11,500

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Getting Data to Your System

WSIPC is working with BMO on WISE/Legacy

and WESPAC Systems to:

– Develop an extract process which will export

accounting code information from BMO to your

Accounting System.

– The extract process will build a record in a flat file

directly from the BMO transaction based on your

specifications.

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Other Considerations

Which funds should you use P-cards for?

– General Fund

– ASB

– Capital Projects

Should paperwork be passed between site

and district office for purchases - or -

should paperwork be maintained at the

school or department level?

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Questions?

Program information: Holly Wallace

Illinois ASBO

Member Relations Specialist

NIU, IA 103

108 Carroll Ave.

DeKalb, IL 60115

815-753-9083

hwallace@iasbo.org

Rebate & other questions: Nancy Moffatt nancy@wasbo.org

Ruth Foster, ruth@wasbo.org

(1-800-524-4706 or 360-528-2025)