JPMorgan Chase

Purchasing Card Program

Executive Summary

Agenda Topics

Program Characteristics

How the Program Works

Benefits of Using a Purchasing Card

Risks and Compensating Controls

Program Characteristics

The JPMChase Purchasing CardCredit Card issued to an authorized University employee

Personal Charges are not allowed, University related purchases only

Cardholders must attend a training class in order to have a card

SSL Internet Web BrowserConfirm receipt of goods and billing accuracy

Change account codes from system defaults if necessary

Provide additional comments in memo field if necessary

Back Office Functions Performed by PCAMonitoring and auditing of transaction data

System administration functions

Payments to JPMChase each month

How the Program Works

Point of Sale ActivitiesCard presented at POS for payment. Face to face, telephone, internet

Confirm tax exempt status before signing merchandise receipt

Retain all sales related documentation

Coding and Approval ActivitiesCharges show up in browser 24 - 48 hours from POS

Transaction is coded by one person and approved by another

Transaction flows from JPMChase into FIS the following morning

End of Month ActivitiesPCA ensures that all transactions for the period are downloaded into FIS

PCA reconciles the billing statement that is received from JPMChase

PCA initiates an ACH Debit transaction to JPMChase on due date

Benefits of Using a Purchasing Card

Achieve best value by ensuring the prompt payment of vendors

Reduce admin costs associated with low dollar amount po’s

Simplicity and ease of use for the cardholder

Transactions less than

Total number of Transactions

Total Dollars

$ 500 176,196 $ 21.4m

$ 1,000 191,141 $ 31.7m

$ 5,000 206,834 $ 64.9m

Transactions less than

Percentage of all transactions

Percentage of all dollars

$ 500 82% 9.2%

$ 1,000 89% 13.6%

$ 5,000 96% 27.9%

Risks and Compensating Controls

Employees not abiding by card policy statement Cardholders must attend training classes and sign an agreement letter

System allows for online and real-time user profile changes

Software has very powerful reporting features for administrators

Overdrawing account balances in FISAccess to account codes can be granted or restricted at the employee level

JPM Chase downloads into FIS on a nightly basis, very little posting delay

Card spending limits can be raised or lowered at the employee level

FraudPCA and his staff will be conducting compliance audits on the back end

VISA and Mastercard both offer $15,000 liability waiver protection