State of CaliforniaDepartment of General Services

CAL-Card Program Training

U.S. Bank I.M.P.A.C. Government Services

OVERVIEW OBJECTIVES What is a CAL-Card - who can participate CAL-Card History Current Contract Advantages Costs Prompt Payment Rebate C.A.R.E. Contract partners - program structure Controls - system reports How to participate - responsibilities Support tools

WHAT IS THE Payment mechanism (all agency policies &

procedures apply) for purchases of goods, services and travel expenses (travel for local agencies only) up to $25,000 per transaction, higher limits are available

government purchase card, issued in the name of the cardholder, billed to the agency

Agency determines merchant category codes and spending limits for each card

Three levels of billing informationCardholder, Approving Official and Accounting

Office Management reports

???

WHO CAN PARTICIPATE?Any tax funded agency in the

State of California

Current participants: 825 State agencies (161) CSU System / UC System (7) Local government agencies (657)

27 Community Colleges120 Cities172 School Districts 39 Counties 178 Special Districts

(1/13/03)

CAL-Card HISTORY 1990 CALTRANS inquired about a

purchasing card for small dollar purchases

DGS - Looked at Federal Program

DGS - Reviewed statistics on small dollar purchase orders:81% - less than $1,050/Avg. $324$60 to $258 - average processing cost

PILOT STUDY Participants included:

EDDCHPCALTRANSDGSDMV

Processing cost savings: 42.2%(CAL-Card vs. Purchase Orders)

CURRENT CONTRACTOR:

Term:

December 22, 2000 - December 22, 2006

Two year contract with four one year options for extension

WHAT DOES CAL-Card REPLACE?

Purchase Orders

Travel Expense Claims

Local Agencies only

Petty Cash

Service Order

State Agencies limited to $5,000

CAL-Card ADVANTAGES Expanded supplier base No minimum card count or spend Statewide support Suppliers paid promptly Eliminates multiple checks, one check

to U.S. Bank Multiple billing cycles/levels Choice of billing cycle dates-

from the 3rd to 27th

More CAL-Card ADVANTAGES Improved access to supplies and materials:

Walk-in purchases Telephone Internet

Obtained goods/services when needed Controls-dollar and Merchant Activity Type

(MAT) code limits/restrictions Opportunities to save $$$ Training and support tools provided

at no cost Cost free with the exception of late fees

CAL-Card PROGRAM COSTS

Late Payment Penalty begins day 46 from invoice date

State Prompt Payment Act – 4.445% Interest less than $75.00 for each invoice

is waived

CAL-Card Rebate Program

Prompt Payment Rebate thru 40th day from date of invoiceInvoices paid in full minus any formal

disputesSliding scale 62- 2 basis points

(pg A-63 of contract)Rebate is a check mailed quarterly to

your agencyRebate must reach $75.00; paid at a

minimum of once yearly

Prompt Payment RebateCheck Date from Invoice Date Basis Points

1 to 3 days 62 (0.62%)4 to 7 days 56 (0.56%)8 to 12 days 48 (0.48%)13 to 16 days 41 (0.41%)17 to 20 days 35 (0.35%)21 to 24 days 28 (0.28%)25 to 28 days 22 (0.22%)29 to 32 days 15 (0.15%)33 to 36 days 9 (0.09%)37 to 40 days 2 (0.02%)

Amount of Invoice x Percentage=Rebate

C.A.R.ECustomer Automation Reporting Environment

Comprehensive web based solution for CAL-Card Program maintenanceCardholder limits and MAT codes can be

changed “real time” Secure and protected environment Integration with your financial system Web based training and PC lab training Download cardholder Statement of Account day

after cycle date Monthly billing reports, R090, R060, F110, F107

are available 3 days after cycle date thru electronic file transfer

CAL-Card PROGRAM PARTNERS

YOUR AGENCY

CAL-Card PROGRAM PARTNER: Department of General

Services Request For Proposal (RFP) development

Contract negotiations and award

Contract management

Statewide marketing and training

Monitor program success

Generate new program enhancements

ENHANCEMENTS Prompt Payment Rebate Membership and administrative fees

eliminated Invoice due 45 days from invoice date Accounting Overviews Southern California User Groups Websites,www.calcard.com. and

www.pd.dgs.ca.gov/calcard Additional U.S. Bank National Account

Manager assigned to California C.A.R.E. – U.S. Bank web based program for

CAL-Card program management

CAL-Card PROGRAM PARTNER:U. S. Bank

I.M.P.A.C. : International Merchant Purchase Authorization Card Division within U. S. Bank for government

purchase cards Program implementation and support Reporting, billing, payments, and dispute

settlement systems Monthly Reports available through:

C.A.R.E.- Customer Automation and Reporting Environment (Contact

U.S. Bank National Account Manager for additional information or set up)

Floppy Disk, Magnetic Tape, Hard Copy, Super Tracs

CAL-Card PROGRAM PARTNER V I S A

VISA Logo/Bank Card Services Association

Develop CAL-Card program with U.S. Bank

Support CAL-Card marketing efforts

Dispute settlement system-must be filed within 60 days from transaction date

Fraud protection for agencies that have:2- 4 cards = $5,000 per card5+ cards = $15,000 per card

AGENCY PROGRAM STRUCTURE

Cardholder

Approving Official

Accounting Officer

Agency Program

Coordinator

Agency purchasing agent Receives monthly Cardholder

Statement of Account Reconciles receipts to Cardholder Statement

of Account and forwards to A/O Authorizes payment and/or use of credits

in a timely manner Initiates disputes, completes and faxes CSQI to

U. S. Bank Monitors disputes thru to closure

Receives monthly R090 Report Ensures all Cardholder Statements of Account

are received with backup documentation attached

Monitors disputes thru to closure Approves Cardholder Statements of Account

in a timely manner Compiles Cardholder Statements of Account,

with R090 as a cover, and forwards the payment package to the Accounting Office

Receives monthly R060, F110, F107 Ensures all approved R090 payment

packages are received and reconciled against the R060

Payment is processed in a timely manner Completes NIA forms as needed Monitors invoice payments and disputes

thru to closure

Receives F107, F110, standard and ad hoc reports

Adds/deletes Cardholders, Approving Officials and Billing Contacts

Establishes and changes Cardholder limits and MAT codes

Provides written procedures and training for: Agency Program Coordinator/ Sub APC Cardholder Approving Official Billing Office

Monitors program compliance and payment/dispute resolution

SYSTEM CONTROLS Cardholder:

Single transaction, 30 day, quarterly and annual spending limits

Merchant Activity Type CodesMonthly Statement of Account

Approving Official:30 day, quarterly and annual spending limitsMonthly statement and reports

Billing Office:Monthly invoice and reports

Program Coordinator:Cycle and system management reports

SIC Code Description 5211 Lumber & other bldg. material dealers 5311 Department stores 5331 Variety stores 5399 Misc. general merchandise stores 5734 Computer & computer software stores

MCC Description SIC Combinations J Discount/Department/Variety Stores,

Misc. General Mdse., Duty Free Stores 5300, 5309-5311, 5331, 5399

K Misc. & Specialty Retail Stores, Lumber/Hardware, Lawn/Garden…….

5047, 5211, 5732-5735, 9402…..

MAT Code MCC Combinations 0690 HIJKMNOPQRTU 0094 KLOU

CAL-Card Merchant Codes

EXCLUDED MERCHANT CATEGORY CODESDESCRIPTION Air Phone Wire Transfer-Money Orders Direct Marketing Insurance Services Financial Institutions Manual Cash Advance Financial Institutions Automatic Cash Advance Non-Financial Institutions- Foreign Currency, Money Orders, Travelers Checks Security Brokers/Dealers Savings Bonds Timeshares Betting, Casino Gaming Chips, Off-Track Betting Political Organizations Religious Organizations Court Costs, Alimony, Child Support Fines Bail and Bond Payments Tax Payments

A variety of reports are available to participants in the CAL-Card Program as well as ad hoc reporting capability. Below are some of the standard program reports.

PROGRAM REPORTS

Cardholder Statement of Account Business Account Summary (A/O)- R090 Financial Summary (invoice)- R060 Invoice Status Report - F110 New Account Report - G022 Merchant Activity Report - R900 Disputed Transaction Status Report - F107

INSTRUCTIONS FOR DISPUTING A SALES TRANSACTION

1. Attempt to resolve the dispute with the vendor.2. Complete the Cardholder Statement of Questioned item form. This form is available from your Approving Official or Agency Program Coordinator.3. Pay particular attention to: -describing the attempted vendor resolution -signing the form -providing your day time telephone number including area code -attaching any supporting documentation such as credit vouchers, return shipping documents such as postal receipts or UPS receipts, etc4. Return the original form to: I.M.P.A.C. Government Services

P.O. Box 6346 Fargo, ND 58125-63465. The Statement of Questioned Item must be returned to l.M.P.A.C. Government Services promptly after the statement date on which the transaction appeared In order to preserve your rights to dispute the transaction.6. Retain a copy for your files and forward a copy with your Certified Statement of Account to your Approving Official or other routing as indicated by your office's internal procedures.

If you have any questions concerning disputing a transaction, you are encouraged to call l.M.P.A.C. Customer Service at 1-800-227-6736 so that we might assist you.

HOW DOES AN AGENCY PARTICIPATE IN THE CAL-Card PROGRAM?

Send a “Request to Participate” to DGS

Complete an addendum to the Master

Service Agreement (MSA) with U. S. Bank

Local agencies three years audited

financial reports

AGENCY RESPONSIBILITIES Designate:

Agency Program Coordinator & Sub. APC

Approving Officials

Cardholders

Accounting Coordinator

Establish card limits and restrictions

Develop procedural manuals and training for all levels

SUPPORT TOOLS U.S. Bank training video Calcard.com (obtain password from

U.S. Bank National Account Manager) pd.dgs.ca.gov/calcard (no password)

Boilerplate guidebooks for APC, A/O, CH and Accounting Officer, training video, fill and print forms. Program, Accounting and User Group schedules

Quarterly User Group Meetings Program and Accounting Training Participants list – disk / e-mail CD of Program & Accounting Training Issue memos- Proposals- Testimonials CAL-Card Program Overview Binder Contract – hard copy

OVERVIEW BINDER

TABLE OF CONTENTS

CAL-CARD PROGRAM

QUESTIONS?