History of the P-Card
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Transcript History of the P-Card
History of the P-Card
The Purchasing Card Program began
operating in Arkansas in September 2002
with the U of A and UCA being the first to
have a managing account with US Bank.
State Agencies began using the P-Card in
March 2004. The Game and Fish
Commission was the first State Agency with
the P-Card beginning with 5 cards.
The following charts illustrate the program’s
growth.
Statewide P-Card Spending per
Contract Period of May – April
$17,823,000.00
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
$10,084,666.00
$6,279,620.00
$4,048,645.00
$468,284.00
20022003
20032004
20042005
20052006
20062007
Rebates Per Contract Period
120,000.00
$101,056.00
100,000.00
80,000.00
$44,776.00
60,000.00
40,000.00
20,000.00
$2,824.00
-
2004-2005
2005-2006
2006-2007
* Rebates were not earned during first 2 contract periods.
What Are the Benefits of a
Purchasing Card?
Time Savings
Receive
goods faster
Less time needed to pay bills
Fewer checks written
Increased Vendor Selection
P-Card
is a VISA card, not store
branded
NO P.O. required
Vendors get their money within 36
hours
Paper Savings
No
P.O. required
Only one invoice per month
Only one check per month
Online reporting capability
Built in purchasing control
Per
month spending limit
Per transaction spending limit
Block vendors based on MCC
numbers
Access to cardholder account via the
internet
Money Savings
All
costs associated with the
procurement process are reduced.
The breakdown on the next page
illustrates this.
Cost Breakdown of PO vs. Purchasing Card*
Purchasing Card
Traditional
Purchase Order
$7.60
The total cost associated with payment for goods and
services (including receipt and matching of invoices,
purchase orders, receiving documents; approval workflow
for payment, disbursement of funds; mailing/transmitting
payment; post-purchase accounting for transactions; and
reconciliation of disbursement with bank records)
$31.30
$5.71
The total cost of the purchasing process (including
activities to requisition a good, approve a purchase, and
generate and deliver a purchase order to supplier)
$31.75
$8.52
The total cost of sourcing (including specification of
requirements, supplier pre-selection, transmittal of
requirements to suppliers, receipt and evaluation of
supplier quotations, supplier selection, and contracting)
$21.83
$26.16
$89.21
* 2005 Purchasing Card Benchmark Survey Results – RPMG Research Corporation
Okay…. How does my
organization get into
the State Purchasing
Card Program?
Steps to Getting the State
Purchasing Card if Not a State
Agency
Contact DFA/OSP
Complete Participating Agency Addendum and send in to
OSP
Send 3 years of audited financial information to OSP
Establish a Purchasing Card Policy/Procedure manual
(may use state version or hybrid version)
Dept of Finance and Administration - Office of
State Procurement Purchasing Card Contacts
Jeff Spears (501) 371-1405
[email protected]
Norma Little (501) 683-2217
[email protected]
Address:
1509 West 7th Street, 3rd Floor
Little Rock, AR 72201