Connecticut ASBO’s Payment Card Service (partnering with IL ASBO) p-Cards for Schools: NOW more than EVER 2016
n We are all so busy doing our jobs we don’t take the time to think about what our job is and what it is becoming.
School Business Management is about the continuous improvement of COST EFFECTIVE SCHOOLS!
STATE ASBO AFFILIATES exist to increase the efficiency and effectiveness of school business managers and school district business operations
Some basic school business operations “rules of thumb” 70 -75% of budget funds employee salaries and benefits. n 58 – 60% of non payroll checks are for less then $500. n 80% of non payroll expenditures are made by 20% of the employees. n
FACT: It costs money to spend money QUESTION? What does it actually cost to process a P. O. from beginning to end?
What are the Experts Saying? “The average cost of processing a purchase order manually is between $75 - $200. Automating procurement reduces that cost to between $10 $40. . . The Return-On-Investment (ROI) is amazing. ” Deloitte Consulting
Bench Marking Questions n How many non-payroll checks are written each month? n What percentage are for less than $500?
How many of these small transactions each month could be consolidated into one payment? (check or ACH)
In p-Card the “p” stands for PAYMENT
NOT All p-Card programs are alike!
Key to Consolidating Small Purchases into one payment: n As a minimum Get p-Cards into the hands of as many employees as you can who are currently making small purchases/ generating PO’s of less than $1, 000.
What are p-Cards? ( P stands for payment) They look and operate similar to credit cards. n They do not carry a revolving line of credit. n Usage and authorization parameters can be reviewed and managed via the internet by district administration-in real time n
Specific card use parameters can be established for each card n Transaction n Monthly limits per charge limits n Preferred Supplier Restriction
Customized Card design can display: n n n Card holder name School District name and number and/or Tax ID 2 Lines, 24 characters each, per card Ghost Cards
Advantages of an Association Sponsored Program Single Contract n Creates a user group/support network n Negotiation clout n Due diligence costs eliminated n No Costs n No Fees n No Charges n Rebates n
Rebate Distribution n Rebates are calculated in April on the total amount of spend from April 1 – March 31(all 900+ districts) and the rebate is distributed in May to Illinois ASBO. n Illinois ASBO then distributes to each partner their share – 100% of rebate generated by their schools per the Memorandum of Understanding
Billing Cycle Requirements n School District may choose a billing cycle cut-off of the 5 th or the 20 th. n Payment is due at Harris Bank within chosen grace (7, 14, 21 or 27) days of billing cycle cut-off.
Only 3 Possible costs to participating school Late fee n ATM Charge – IF cash advance option is selected n Interest owed on any cash advance n
Billing and Payment n n Monthly Billing Statements ¨ Available online Payment Methods ¨ Automated Clearing House ¨ Check
Online Capabilities (24/7) “details online” n Online Program Management ¨ Submit, approve, and cancel Card accounts ¨ Instant Account Activation ¨ Adjust spending limits/manage Cardmember profiles ¨ View Cardmember charges ¨ Change accounting information n Online Information Services ¨ View/Manage Program Information ¨ Access to Web reporting tools
Vendor Benefits n n n Reduces paper processing/billing Reduces vendors’ time/costs of processing/depositing payments Reduces vendor transaction costs Vendor paid by BMO within 48 hours of shipment/pick-up Reduces the issues of partially filled orders Reduces vendors time/costs of processing & depositing of payments
Benefits of a p-Card Program for Management Easier on Accounts Payable n Submit one monthly payment vs. multiple payments to multiple vendors n Reduction in paperwork n Fraud indentification, prevention and protection through the Bank and Master. Card n Detailed reporting available 24 x 7 n Easy online administration and dedicated customer support n Control on spending limits and accepted vendors
How to Get Started 1. Download documents www. illinoispcard. com 2. Submit resolution to local board of education for purchasing card participation 3. Identify local p-Card administrators 4. Complete application packet – send to: See Check List on Website for your State
For more information, word documents and other tools, or to download all available files, please go to: www. illinois-pcard. com.
Free Upcoming Webinars How To Implement n Completing the Application n Developing a p-Card User Handbook (unique to your district) n
Holly Wallace 815. 753. 9083 (tel) 815. 753. 9367 (fax) hwallace@iasbo. org
Connecticut ASBO’s Payment Card Service (partnering with IL ASBO) p-Cards for Schools: NOW more than EVER 2016
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