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David Cox

Welcome and Program Update

2013 User Training Conference: A Toolbox for Program Administrators | October 2013

Transaction Services

Before we get started, please be sure to…

Before:

– Kindly turn your cell phone to silent as to not disrupt the session

After:

– We value your feedback. We‟ll distribute a survey after this session, please

provide us with your feedback by completing the survey. Your feedback will influence

next year‟s training

– Ask us questions! For any questions or comments, please feel free to reach out to us directly

1

Today‟s Agenda State of Texas Contract with Citibank

Online Tool Enhancements

Single Sign On

Program Optimization

Agenda and Overview of Schedule

2

State of Texas Contract with Citibank

State of Texas Contract Information

Introductions of Citi personnel

State Comptroller‟s Office has executed contract renewal for September 2013 to 2014

– The renewal is the first of three one year renewals

Participating Programs

– 137 State agencies

– 73 Universities

– 372 Cooperatives

Rebates

– The next rebates will be paid in November

State: General Revenue

CO-OP‟s: Direct Payment

4

2. Common SlidesOnline Tool Enhancements

Citi Commercial Card Mobile Alerts

Global Messaging Service SMS and email alerts provide updates on

– Recent transactions

– New statement available

– Payment received

– Payment past due

Subscribe via the CitiManager Portal

– Increase efficiency

Receive information automatically

– Timeliness of notifications

Prompt notification

– 24/7 Availability

– Simplicity

Sign up one time

– Flexible subscription options

SMS, email or both

Cardholders can stay informed about activity on their cards via their mobile phones

6

CitiManager® 13.1 Release*

CitiManager Mobile Banking Help Page:

Users can access the enhanced Mobile Banking Help

Page with the following link:

https://home.cards.citidirect.com/SMSHelp

New Message for “COM”:• Message to be more user friendly:

Citi Commercial Cards:

STOP = Suspend alerts on this phone

HELP = Display help information

Visit https://home.cards.citidirect.com/SMSHelp for more

information

Remaining Available Spending Limit:Cardholders will be able to check their available spending

limits by texting „LIMIT XXXX‟ or “LIMITXXXX” or

“SPENDXXXX” or SPEND XXXX” to Citi. They will

receive the following messages from Citi with the limit

available:

SMS Text for non-declining balance:

Citi Commercial Cards: Account ending <CARD_NUMBER>

has < XXXXXXXXXXXXXXXXXXX CUR > remaining

available

SMS Text for declining balance:

Citi Commercial Cards: Account ending <CARD_NUMBER>

expires in <XXX> days with <XXX,XXX,XXX,XXX.XX

CUR> remaining available

7

*Release date 5/18/13.

CitiManager 13.1 Release

SMS Alerts Enhancements

Mobile Banking Help Page has been improved for overall usability by instructing cardholders

how to subscribe to Citi‟s On-Demand Alerts and listing all available SMS alerts

Cardholders will be able to stay informed about their account activity anytime, anywhere

8

CitiManager

Infrastructure development

– Building blocks for future releases

Performance

Security

System Updates

9

Global Card Management System (GCMS)

Speed of Performance

Audit upgrades for future releases

– User set up forms

– User templates

– Transaction tracking

System Updates

10

Citi Custom Reporting System (CRS)

Surcharge Fee Source Amount - Amount at source of surcharge for the fee that a retailer adds to the cost of a

purchase when a customer uses a credit card

Surcharge Fee Transaction Amount - Amount in billing currency of surcharge for the fee that a retailer adds to

the cost of a purchase when a customer uses a credit card

Interchange Fee Ctrl Status –

– Attribute update: extended the field length from 2 characters to 5 characters

Note: Data for the Surcharge Amounts is provided by the vendor and we may not have control on the validity &

accuracy of these fields

System Updates – New Transaction Attributes

11

Single Sign On

Single Sign On

Single Sign On provides portal to all program management tools through CitiManager

Reduces system logins and password maintenance

– Access CitiManager, CitiDirect Global Card Management System (GCMS), Citi Custom Reporting System

(CCRS) and (CLASS) with a Single Password

Provides software navigation efficiencies

Contact account manager or Help Desk representative to assist in activating Single Sign On

13

2. Common SlidesProgram Optimization

Optimization Requirements and Feedback

One year of history of check payments

– Include vendor name, address, and tax ID, the more data the better the results

– File format is in Excel

Feedback

– Top 30 merchant card acceptors by spend

– Top 30 merchant non-card acceptors by spend

– Highest spend by Merchant Category Code

Turnaround time for analysis is approximately a week to 10 days after receipt of check file

15

Top 30 MasterCard Acceptors by Spend

16

Vendor Spend Payment Method

JET SET SPORTS 6,149,252 CHECK

VERTIS COMMUNICATIONS 5,636,802 CHECK

US POSTAL SERVICE 4,688,224 Wire

UNITED AIRLINES 2,834,960 Check

ALTA RESOURCES INC. 2,508,599 EFT

AMMATAC CORP 2,426,617 EFT

NIKE USA INC 1,937,758 Check

MOORE WALLACE NORTH AMERCIA, INC. 1,574,330 Check

AT&T 1,320,654 Check

TRANS WORLD INTERNATIONAL, INC. 1,205,771 CHECK

COLORADO SPRINGS UTILITIES 1,179,071 Check

TEAM EPIC LLC 1,131,011 CHECK

MERKLE, INC. 966,415 EFT

MARSH USA INC 916,791 Check

LAUTERBACH GROUP INC 877,421 Check

ASPEN VALLEY SKI/SNOWBOARD CLUB 875,796 CHECK

PARADYSZ MATERA CO INC 768,127 EFT

VML, INC. 761,516 CHECK

ADECCO USA, INC. 694,654 Check

CARNATION BUILDING SERVICE INC 687,765 Check

BLUE STATE DIGITAL 629,600 CHECK

SYSCO FOOD SERVICES OF DENVER 623,140 CHECK

AT&T MOBILITY 588,908 Check

STAPLES PROMOTIONAL PRODUCTS 585,060 CHECK

ECHO ENTERTAINMENT INC. 582,475 CHECK

ROYAL COLLEGE OF ART 545,501 WIRE

U.S.FOODSERVICE 537,132 CHECK

Top 30 MasterCard Non-Acceptors by Spend

17

Vendor Spend Payment Method

HIGHMARK BLUE CROSS BLUE SHIELD 8,312,523 EFT

MOSIMANN'S LTD 1,475,062 WIRE

TIMEBASED EVENTS LTD. 981,350 WIRE

PARTNERSHIP FOR CLEAN COMPETITION 770,051 EFT

ALANIZ, LLC 629,648 Check

BRYAN CONSTRUCTION INC. 589,751 CHECK

SINK COMBS DETHLEFS PC 488,982 CHECK

TARGET SOFTWARE INC 447,323 Check

TOUCH OF TASTE LTD. 438,902 WIRE

CITIZEN PICTURES LLC 424,700 CHECK

27 SOUTH TEJON COMMERCIAL CONDOMINIUMS 409,556 EFT

EAST PLEASANT PICTURES LLC 381,443 CHECK

ESSENCE LONDON 369,065 WIRE

VORTEX MAINTENANCE INC 342,222 Check

SRi SPONSORSHIP RESEARCH INTERNATIONAL 282,500 CHECK

MORE FANCY LLC 281,703 CHECK

EDGE DIRECT LLC 246,111 CHECK

HOGAN LOVELLS US LLP 241,687 Check

ATHLETE SAFETY ALLIANCE LLC 240,000 CHECK

EFFECT ESPORTE E ENTRETENIMENTO LTDA 226,763 WIRE

ALCANTARA EARTHWORK & PAVING CO 225,700 Check

BROWN UNITED INC. 218,138 CHECK

SHERNG-LEE HUANG 208,210 CHECK

WINDSTAR STUDIOS, INC. 197,704 CHECK

THE 1st MOVEMENT LLC 193,100 CHECK

DIAMONDBACK DIRECT 191,968 EFT

Highest Spend by Merchant Category Code

18

MCC Merchant Category Count Spend

7941 SPORTS CLUBS/FIELDS 3 6,649,861

8398 CHARITABLE AND SOCIAL SERVICE ORGANIZATIONS - FUNDRAISING 50 1,907,238

4900 UTILITIES 19 1,494,303

7311 ADVERTISING SERVICES 8 1,007,591

8999 PROFESSIONAL SERVICES 7 955,462

7399 BUSINESS SERVICES-NOT ELSEWHERE CLASSIFIED 23 934,381

6300 INSURANCE SALES UNDERWRITING AND PREMIUMS 2 924,197

7349 CLEANING AND MAINTENANCE JANITORIAL SERVICES 3 695,244

5199 NONDURABLE GOODS (NOT ELSEWHERE CLASSIFIED) 4 662,532

8641 CIVIC, SOCIAL, FRATERNAL ASSOCIATIONS 4 627,316

8220 COLLEGES, UNIVERSITIES 13 625,019

780 LANDSCAPING SERVICES 5 603,330

1520 GENERAL CONTRACTORS 3 416,321

5999 MISCELLANEOUS AND SPECIALTY RETAIL STORES 26 384,338

5099 DURABLE GOODS NOT ELSEWHERE CLASSIFIED 7 382,961

5969 DIRECT MARKETING-OTHER DIRECT MARKETERS-NOT ELSEW. 8 357,878

5691 MEN'S-WOMEN'S CLOTHING STORES 1 297,247

5964 DIRECT MARKETING - CATALOG MERCHANT 4 194,792

4899 CABLE SATELLITE, AND OTHER PAY TELEVISION AND RADIO 2 193,986

5499 MISC FOOD STORES SPECIALTY MARKETS CONVENIENCE 8 191,890

7999 MISCELLANEOUS RECREATION SERVICES 6 191,152

7299 OTHER SERVICES (NOT ELSEWHERE CLASSIFIED) 14 181,526

7392 CONSULTING, PUBLIC RELATIONS 5 180,122

8111 LEGAL SERVICES, ATTORNEYS 5 179,188

2741 MISCELLANEOUS PUBLISHING AND PRINTING 14 177,267

1731 ELECTRICAL CONTRACTORS 6 165,328

7523 PARKING LOTS, GARAGES 2 163,795

5047 LABORATORY-MEDICAL-DENTAL-OPHTHALMIC HOS. EQUI-SUP 9 148,429

8911 ARCHITECTURAL/SURVEYING SERVICES 3 144,703

Impact and Benefits of Optimizing your Program

19

(1) Source: 2012 Purchasing Card Benchmark Survey Results/Richard Palmer and Mahendra Gupta, RPMG Research Corporation

(2) Assumes only invoices currently being paid via check, that identified as card-accepting merchants.

Average cost per transaction with traditional PO $95 (1)

Average cost per transaction with P-Card $21 (1)

Equals potential savings of $74(1) per transaction

$74 savings x 1,000 transactions currently being paid via check = $74,000 (2)

Typical Transactional Cost Savings in Private Sector


20


Average cycle time per transaction with traditional PO: 12.8 days (1)

Average cycle time per transaction with P-Card 4.9 days (1)

Reduction of cycle time = 8.5 days or 70%(1)

Cycle time defined as time from determination of purchase need to the receipt of ordered goods

Cycle Time Reductions in Private Sector


27% of respondents use P-Card data to obtain higher discounts from vendors

Respondents reported an average 1.7% higher discount from their merchant base (1)

21

Merchant Negotiations



Reduction of the number of suppliers whom goods & services are received

1/3 of respondents to the RPMG study reduced their vendors listed in the AP master file by an average of

18%(1)

42% indicated that vendors who accepted P-Cards had increased their share of business with the customer by

an average of 19% over five years (1)

22

Supply Chain Management


2. Common SlidesConference Agenda

Agenda – Day 1 Conference

8:00 – 8:30 a.m. Onsite Registration

8:30 – 9:30 a.m. Welcome and Program Update

9:45 – 10:45 a.m. Speaker:

Fraud, Misuse and Abuse: Current Trends in Third-Party Fraud and How Citi is Addressing It

Provides awareness of fraud activities and recommendations on managing abuse and misuse by

employees

10:45 – 11:45 a.m. Speaker:

Best Practices for Program Auditing

Will review available tools to assist with audits

12:00 – 1:00 p.m. Lunch (Provided on Conference Day)

1:00 – 2:15 p.m. Roundtable Discussion:

Program Management — Breakout Groups (Travel Card and Purchase Card)

2:30 – 3:45 p.m. Roundtable Discussion:

Best Practices for Training Program Administrators, Level Managers and Cardholders

3:45 – 4:00 p.m. Wrap-up and Overview of Training Day Agenda (following

24

,

Agenda – Day 2 Training

25,

Time Introductory Level Advanced Level

8:30 – 10:00 a.m. CitiManager® Portal for Program Administrators Citi Custom

Reporting

System

(CRS)

10:10 – 11:40 a.m. CitiDirect® Global Card Management System (GCMS) Citi Custom

Reporting

System

(CRS)

12:00 – 1:00 p.m. Lunch

1:10 – 2:40 p.m. Citi Standard Reporting CitiDirect Global

Card

Management

System (GCMS)

2:50 – 4:20 p.m. CitiManager Portal: What Can My Cardholders Do? CitiDirect

Global

Card

Management

System (GCMS)

efficiency, renewable energy & mitigation

In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important

issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-

emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power

for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to

clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with

a broad range of stakeholders on the issue of climate change to help advance understanding and solutions.

Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.

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used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby

("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.

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or regulation, you agree to keep confidential the information contained herein and the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as

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