State of Nevada: Purchase Card Overview – Agency intro

April 17, 2014

Agenda

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 Purchasing’s 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 agency’s 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

Introductions - Bank of America Merrill Lynch Offering a dedicated, Nevada focused team… CLIENT TEAM

Greg Titus

SVP, Senior Client Manager 775-325-9015 [email protected]

Jeff Moore

SVP, Senior Treasury Solutions Officer 702-498-4404 [email protected]

…backed by strong, committed resources

EXTENDED TEAM - CARD

Holly Campbell

VP, Senior Card Account Manager 602-448-3044 [email protected]

Michael Bell

Treasury Services Sr. Advisor Dedicated Card Servicing 888.715.1000 ext 21651 [email protected]

Beverly Drury

SVP, Senior Product Sales Specialist 503-795-6478 [email protected]

Leadership Extended Team Client Team

Implementation

Pam Stallings

VP, Public Sector Business Leader 303-617-9171 [email protected]

State of Nevada

Nevada Consortium Overview

Nevada Consortium Public Sector Group Overview GROWTH BENEFITS

Membership provides dedicated support staff, a forum for peer-to-peer networking, and the ability to earn additional rebate basis points.

STRONG OUTLOOK

1 2

The NVCPSG volume has more than tripled since 2006.

4

The NVCPSG, introduced in 2006 has continued to see year over year volume and membership growth.

REVENUE SHARING

3

The 2012-13 fiscal year spend of $55 million resulted in over $575,000 in revenue sharing back to qualifying members.

Current Members

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

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

Nevada 2014 Rebate Grid

NVCPSG Standard Transaction Multiplier Table

Excludes Large Ticket Annual USD Card Volume Tiers $500,000 $9,999,999 $10,000,000 $14,999,999 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $19,999,999 $24,999,999 $29,999,999 $34,999,999 $39,999,999 $44,999,999 $49,999,999

$50,000,000

$65,000,000 $80,000,000 $95,000,000 $110,000,000 $125,000,000 $140,000,000 $155,000,000 $175,000,000 $200,000,000 $225,000,000 $250,000,000 $275,000,000 $300,000,000

$64,999,999

$79,999,999 $94,999,999 $109,999,999 $124,999,999 $139,999,999 $154,999,999 $174,999,999 $199,999,999 $224,999,999 $249,999,999 $274,999,999 $299,999,999 +

Cycle days Grace days Large Ticket Interchange Multiplier Table

Qualified Transactions Annual Volume

$0 +

(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)

Cycle Days Grace Days 7 3

176 177 178 179 180 181 162 164 166 168 170 172 174 127 130 140 143 146 149 152 155 158

160

7 3

70 14 3

174 175 176 177 178 179 160 162 164 166 168 170 172 125 128 138 141 144 147 150 153 156

158

14 3

69 14 7 30 3 30 7 30 14

172 173 174 175 176 177 158 160 162 164 166 168 170 123 126 136 139 142 145 148 151 154

156

169 170 171 172 173 174 155 157 159 161 163 165 167

REBATE BASIS POINTS

120 118 123 133 136 139 142 121 131 134 137 140 145 148 151 143 146 149

153 151

167 168 169 170 171 172 153 155 157 159 161 163 165 163 164 165 166 167 168 149 151 153 155 157 159 161 114 117 127 130 133 136 139 142 145

147

14 7

68

30 3 30 7

REBATE BASIS POINTS 67 65

30 14

63 30 20 30 25

159 160 161 162 163 164 145 147 149 151 153 155 157 110 113 123 126 129 132 135 138 141

143

30 20

62

156 157 158 159 160 161 142 144 146 148 150 152 154 107 110 120 123 126 129 132 135 138

140

30 25

60

Nevada 2014 Rebate Grid NVCPSG

Cycle days 7 14 14 30 30 30 30 30 Standard Transaction Multiplier Table

Excludes Large Ticket Annual USD Card Volume Tiers

$50,000,000 $64,999,999 Grace days 3 3 7 3 7 14 20 25 160 158 156 REBATE BASIS POINTS 153 151 147 143 140 Large Ticket Interchange Multiplier Table $0

Qualified Transactions Annual Volume

+ Cycle Days Grace Days

7 3

70

14 3

69

14 30 30 30 7 3 7

REBATE BASIS POINTS

14

68 67 65 63

30 20 30 25

62 60

(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)

Rebate Calculation criteria

10 ●

(1.) Volume (standard) Tier =

$50,000,000 - $64,999,999

●

3. Cycle/Grace – (Speed of Pay)

●

2. Your (standard transaction) program volume 4. (Large Ticket vol) cycle/grace

– (if applicable) Vol

$500,000

Cycle / grace

30 / 25 30 / 14

Vol

$1,000,000

Cycle / grace

30 / 25 30 / 14

(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)

BPS

1.40% 1.47%

Rebate

$7,000.00 $7,350.00

BPS

1.40% 1.47%

Rebate

$ 14,000 $ 14,700

Works - Card Management Platform

Works: All-inclusive Program Management

A solution that meets all of the State ’s requirements ... and offers even more.  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

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We can meet all of your required technical elements. Let us demonstrate.

Purchase Card Implementation

Streamlined Agency Implementation implementation

▪ ▪ ▪ ▪ ▪ 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

servicing

▪ ▪ ▪ ▪ ▪ ▪ 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

relationship

▪ ▪ ▪ ▪ ▪ ▪ 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

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

Program Optimization and Marketing

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 PO’s for low dollar purchases

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

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!

A Track Record of Growth

Nevada Consortium $60 000 000 $50 000 000 $40 000 000 $30 000 000 $20 000 000 $10 000 000 $ 2007 2008 2009 2010 2011 2012 2013 Washington Public Sector Group $300 000 000 $250 000 000 $200 000 000 $150 000 000 $100 000 000 $50 000 000 $ 2007 2008 2009 2010 2011 2012 2013 Oregon Consortium $140 000 000 $120 000 000 $100 000 000 $80 000 000 $60 000 000 $40 000 000 $20 000 000 $ 2007 2008 2009 2010 2011 2012 2013 Idaho Consortium $50 000 000 $40 000 000 $30 000 000 $20 000 000 $10 000 000 $0 2012 2013

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Benefit Summary

▪ Better Fraud Control ▪ 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

Appendix

Works®

▪ 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

Works ®

Real-time manipulation of credit availability Card maintenance and Active Card Controls Pre-approval and post approval workflows Easy integration into your ERP system Spend monitoring for encumbered funds and discretionary/ incremental funds Online hierarchy management

Works: Differentiators

Active Card Control TM Accounting support Pre-purchase approval Credit refresh feature

▪ ▪ ▪ 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 cardholder’s credit line will refresh even with central payment option

Comprehensive card program management Why Works?

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

self-service administration

▪ ▪ ▪ ▪ – – 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

streamlined reconciliation

▪ ▪ ▪ ▪ ▪ ▪ 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

timely data & reporting

▪ ▪ ▪ ▪ 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

Robust payment management capabilities Why Works?

transaction workflow

▪ ▪ ▪ Facilitates user review and accountability Enables appropriate approvals and controls, both pre- / post purchase Streamlines cross departmental data flow

business rule engine

▪ ▪ ▪ ▪ 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

dynamic credit management

▪ ▪ ▪ 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

hands-free reconciliation

▪ ▪ Automation reduces manual activities to exception-handling Enforces cardholder reconciliation activities via delayed restoration of funds feature

Configurable reports options Why Works?

Reporting made simple

Select from

650+ data fields

to create an endless variety of report templates Report categories Card Purchase request Audit Spend Filter examples 650+ data fields 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

Exact Authorization Override Make specific purchases outside of normal card controls, while retaining strict controls over the card program.

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

Uploading receipt images

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”.

Simple

Receipts can be attached directly from the desktop to the transaction, reimbursement*, or expense report.

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.

*    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 29

Declining balance card features

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.

Value

provides greater control and visibility in all card programs *

Prepaid Card

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.

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 reconciliation Convert additional spend to cards One-time payments to single vendors

Generating purchase requests Card Shuffler

Simple & Secure

Automatic

▪ ▪ ▪ ▪

Automatically generated purchase requests

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.

▪ ▪ ▪

Manual

Manual purchase requests

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.

Why MasterCard for Purchasing and Travel Card Programs

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

Acceptance

MasterCard Branded Cards Are Accepted Globally at Nearly 36 Million Locations Worldwide

35.9

Total MasterCard Acceptance Locations*

(in Millions)

APMEA

10.6

Europe

10.1

United States

9.2

Latin America

5.0

Canada

1.0

• • MasterCard has a material and quantifiable acceptance advantage over Visa in the US due to Visa’s lack of acceptance at Sam’s Club and Visa’s 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

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