approval by board and completing the application packet

Approval by Board and Completing the Application Packet

There are 3 major activities to start a p-Card program I. Educating and Orientation about Payment

Cards (P-Cards)

II. Approval by Board and Completing application Packet

III. Implementing the program with employees

This power point is about Board Approval and Completing the Application

To begin:

Go to Website www.illinois-pcard.com

Click on Application Documents

Begin by printing the “Check List”

Print all 5 parts of the application

Step 1

Sample Board Resolution – Authorizing issuance of individual p-Cards. You may use this sample or draft your own

NOTE: All application documents are in pdf form – all documents must be printed then filled in with ink or typewriter. Electronic versions do not exist for legal reasons

Step 2

BMO ePurchasing Solution Master Card Program Member Account Agreement

NOTE: This document cannot be altered in any way, or it will be sent back to the district. Only fill in the blanks.

Member Account Agreement Page 1

Give complete legal name of the school district and number

Give physical address (no post office box) of the school district primary office

As you carefully read the Member Account Agreement remember:

YOUR DISTRICT IS THE “MEMBER”

Section 1.1 page 1

This section establishes the “initial”

MONTHLY LINE OF CREDIT FOR THE

SCHOOL DISTRICT

• Note: this must be at least $10,000• This is not your commitment to spend each

month.

Note About the Line of Credit

This amount represents the amount of money the Bank will lend the school district and its card holders (in total each month) by way of p-Card charges

THIS AMOUNT DOES NOT REQUIRE THE DISTRICT TO CHARGE THIS AMOUNT EACH MONTH – It only sets the maximum monthly limit that can be charged

More notes about the line of credit The Bank reserves the right to suggest

modifications (up or down) to the district, and make those changes after notification

If this limit is reached – no further charges can be made on ANY card until total payment on the account is RECEIVED for the current billing cycle

MAKE SURE YOU ASK FOR ENOUGH

CREDIT TO COVER AT LEAST TWO

MONTHS OF CHARGES

There are a variety of ways of determining

what line of credit to ask for. Go to FAQs on

the p-Card Website for suggestions

There is NO single correct or best way to determine this figure.

MAKE SURE YOU ASK FOR MUCH MORE THAN YOU THINK YOU MAY NEED. A GOOD GUIDE IS YOUR BIGGEST BACK TO BACK CHARGES IN A MONTHLY FISCAL YEAR

Plan for growing your p-Card program

Number of cards

Amount of credit allowed per card

Also keep in mind – “IF” you anticipate an abnormally high month, that in all likelihood, this could exceed your credit limit you can contact the Bank for a one time or permanent bump up.

If this happens more than 1 or 2 times perhaps a new contract should be executed to increase your monthly credit limit

Page 2 – 8 is reading – DO IT CAREFULLY

Page 10 Section 10 Notices

In section 10.2 the member is being asked for the name of the p-Card administrator/assistant and their contact information

Leave Bank of Montreal information blank

Page 12 Signature Page

Date this page

Under “member” sign by p-Card administrator #1 and administrator #2

Leave Bank of Montreal information blank

Schedle 1

District full legal name and number

Schedule I part B

The school district may choose the length of the grace period (ie…time between the monthly billing date – the 5th or the 20th)

7, 14 , 21, 27 days

Note: Rebate

Part D

Information and signatures of p-Card administrator #1 and p-Card administrator #2

Page 3 of Schedule 1

Sign under (member) – p-Card administrator name, etc…

Organizational Set up Form

Full district name and number

Grace days are 7, 14, 21, 27 days (make sure the grace days chosen will always fall before payment due date).

Billing requirements choose one 5th or 20th

Cardholder statement sent to program administrator, is best practice

Monthly statement method*

ACH Payment

Or

Payment by check

*ACH is best practice

If ACH is selected give name of Bank, routing number, account #, and name of deposit account holder

Make sure you sign and date this page

YOU ARE ALMOST FINISHED

Complete “Save the Date” form

Here you are agreeing to provide a copy of audit within 30 days of completing audit or 180 days of end of fiscal year

AUDIT (need not be official copy, can be electronic, or online, or paper)

One for each Administrator and each

Assistant

Last 3 years of audited financial statements – original

or copy – electronic or Website

You are almost done!

Package and send (ASAP) to:

See the Check List on the Application Page at www.illinois-pcard.com for where to send your application in your state.

What’s next??

On Application Documents page on the www.illinois-pcard.com Website, review the Next Steps at the end of the documents page.

Questions

And

Answers

Putting Together a p-Card System for My School District

2014