State of California Government Purchase Card Program http

State of California Government Purchase Card Program http: //www. dgs. ca. gov/pd/Programs/Leveraged/CALCard. aspx “CAL-Card”

What is a “CAL-Card” ? § § § The State of California offers state and local government agencies a Master Service Agreement providing VISA purchase card services The CAL-Card is a cost free payment mechanism; agency policies and procedures apply to the procurement Purchases of goods/services up to $100, 000 per transaction, higher limits are available upon approval from U. S. Bank Travel expenses for local agencies only; travel insurance is not included The CAL-Card is a purchase card issued in the name of the cardholder and billed to the agency

Unique graphics make it easy for an employee to distinguish it from their personal card

CAL-Card Contract n Contractor: n Term: October 19, 2006 to October 18, 2011 n Five year contract with one (2) year option for renewal (2013)

Benefits Rebates VISA dispute, fraud and Waiver Liability protection Training and support tools provided at no cost Access Online – Free U. S. Bank Internet program for CAL-Card Program management § Forty five (45) days to pay n Payment options include: n Check, Electronic fund transfer (EFT) via Automated Clearing House (ACH) EDI or Wire Transfers § § § Ability to define dollar and Merchant Category Code limits for each card

State Contracts n n If accepted by the vendor, use CAL-Card as a payment mechanism when purchasing from a State contract Local governments may also utilize State contracts Information regarding State contracts may be found at: http: //www. dgs. ca. gov/pd/Home. aspx Questions regarding State contracts should be directed to the contract administrator for that contract

Rebates $ n Prompt Payment Rebate – invoices paid before the 45 th day from invoice date, minus any formal disputes or reported fraud, qualify for prompt payment rebate n Average Transaction Rebate n Volume Sales Rebate n Rebates are calculated quarterly; a check is sent to the Program Administrator on the 50 th day after the end of each quarter n n Total rebate must reach $75. 00 for the quarter; if not, it will accrue to the next quarter Quarterly Rebate calculations are posted on the Cal-Card website; Click on “Program Information”, then “Rebates”

Reduce Operating Costs and Increase your Rebates n Purchase cards are no longer considered a “Small Dollar” purchase tool n Agency’s rebates are increased when using CAL-Card as a payment mechanism n Rebates lower the cost of purchases

Fraud Third party fraud - non employee § Zero deductible § Zero liability § Fraud must be reported to U. S. Bank Customer Service at 1 -800 -3445696 within 60 days from Transaction Date § Keep a log; date fraud was reported to U. S. Bank and the name of the fraud representative Embezzlement by an employee VISA Liability Waiver Coverage - if employee is terminated § 1 - 4 cards $5, 000 – per card § 5 + cards $100, 000 – per card § Contact a U. S. Bank Account Coordinator for VISA Liability Waiver information. Agency should attempt to collect from Cardholder for the first 60 days after termination. After 60 days of collection efforts, a claim can be submitted if still necessary. § Do not Dispute – Agency is responsible for payment to U. S. Bank

Reporting Lost or Stolen Cards and Fraud n Procedures for reporting lost or stolen cards and fraud are located on the CAL-Card website: , click on: http: //www. dgs. ca. gov/pd/Programs/Leveraged/CALCard. aspx “How to Report Lost/Stolen Cards and Fraud”

Access Online n n n Secure Internet tool for program management provided by US Bank Account set up, maintenance performed electronically through Access Online A wide variety of management reports are available to the agency Program Administrator for auditing and to ensure program compliance

Interest Penalty n n n State Agencies are required by State law to pay penalties for late payments The rate of the interest penalty is based on the State Prompt Payment Act and is announced after July 1 st of each year n The annual Budget Letter (BL) announcing the interest rate is posted on the CAL-Card website. Per the State Prompt Payment Act, an interest penalty less than $75. 00 per invoice is forgiven and SHOULD NOT be paid to U. S. Bank Agencies are responsible for calculating any interest penalty List interest separately on check or remittance advice

Billing and Reconciliation n Billing Officials should review the “Access Online Payment Process” presentation on the CAL-Card website n Click on “Access Online” from the home page n Provides procedures when remitting payment to U. S. Bank to ensure proper posting of payment Do not send Cardholder Account numbers to U. S. Bank when making a payment The Account Number listed on the Managing Account Statement is your “Invoice” number

Billing and Reconciliation, cont n n n Include the payment coupon from the Managing Account Statement when sending payment to U. S. Bank n This is the top portion of the invoice n If you are a state agency, attach this coupon to your state remittance advice n Managing Account number must be noted on all check(s) or remittance advice(s) sent to U. S. Bank If the Managing Account number or coupon is not provided to U. S. Bank, your payment will be returned. This could cause suspension of all cardholders at that Managing Account Level Approval may be done electronically through Access Online or hardcopy on a downloaded Cardholder Statement of Account n Contact your Account Coordinator to set up electronic approval in Access Online

Billing and Reconciliation, cont n n n Billing Officials and the Program Administrator should utilize Access Online Past Due reports and the Managing Account Statement to monitor outstanding balances U. S. Bank must receive payment by the 45 th day from invoice date Late payments will result in the Managing Account (billing level) being automatically suspended at 60 days past due Suspended accounts cannot be reopened until payment has been posted by U. S. Bank If a payment must be sent overnight to U. S. Bank, the “overnight” mailing address is listed in the Billing Official guide on the CAL-Card website n Click on “Program Information”, “Guidebooks”

Managing (Corporate) Account Summary **Invoice** Perforation ØTop portion is the payment coupon; send with your check when making payment to U. S. Bank ØLists Cardholder transactions ØUnpaid balance rolls forward

Top Portion of the Invoice This number must be included on your check or remittance advice

Cardholders n n Must be familiar with, and adhere to, their agency’s procurement guidelines and procedures All charges must be for “Official” business only Responsible for reconciliation of receipts to monthly Cardholder Statement n Prompt reconciliation maximizes agency Prompt Payment Rebate Cardholder is responsible for filing disputes, if needed n This may be done through Access Online, filing a Dispute (CSQI) form (located on the CALCard website) or calling customer service

Cardholder Statement of Account DO NOT LIST CARDHOLDER ACCOUNT NUMBER(S) ON YOUR CHECK WHEN MAKING A PAYMENT

Approvers n n n n Responsible for reviewing and approving Cardholder transactions Take the time to review all documentation for accuracy; make no assumptions Transactions are for “Official Business” only Ensure that all documentation has been provided by Cardholder per agency’s policies and procedures May approve Cardholder statements through Access Online or hardcopy Beware of repetitive “Missing Receipt” documentation STATE AGENCIES ONLY - SCO requires Approvers to print their name below their signature

Billing Official n n n n Responsible for reconciling the Managing Account Statement (Invoice) Verifies that all documentation has been provided by Cardholder for payment Verifies charges have been approved for payment by the agency “Approver” Reviews Cardholder charges; questions any item that seems out of the ordinary. Refers those items to the Program Administrator Processes Managing Account Statement (Invoice) and pays U. S. Bank quickly to maximize their Prompt Payment Rebate Monitors past due balances Beware of repetitive “Missing Receipt” documentation Ensures that all payments sent have posted to the Managing Account

Program Administrators n n n n Best practice: Primary Program Administrator should be the “hands on” person for program management Responsible for developing procedures and training for Approvers, Cardholders and Billing Official Monitors all past due balances; works with Billing Official to clear unpaid amounts Performs random monthly audits of CAL-Card spends Reviews monthly management reports for agency program compliance and spending patterns Adds/deletes Cardholders, Approvers and Billing Officials, establishes Cardholder spending limits and Merchant Category Codes, State Agencies Only- Responsible for excluding per diem travel related MCCs from cards

Contact Information n n Cardholder changes may be done through Access Online Program Administrator and Billing Official changesn Contact your Account Coordinator or email calcard@usbank. com n U. S. Bank will need your agent/company number to make these changes This includes changes to: n Name n Address n Telephone number (including area code changes) n Fax n Email address n Agency name

Training n Internal (agency) training is essential for a successful CAL-Card program n Develop written procedures n Several training resources are available on the CAL-Card website n Provide CAL-Card training on a regular basis n n Monthly, Quarterly, Yearly Make sure all new staff receive training n A sample Cardholder Acknowledgement Statement is available on the CAL-Card website; this form may also be adapted for Approvers. Click on “Program Information”

Access Online Training n From http: //www. dgs. ca. gov/pd/Programs/Leveraged/CALCard. aspx click on “Access Online” then click on “U. S. Bank Access Online Training” n Web-based training– To obtain current passwords for (wbt) training email US Bank: calcard@usbank. com n Web conference training – n Access Online training provided to you at your desk n Instructor led course with the ability to watch online, listen and ask questions via a toll-free phone number

How to Participate in the CAL-Card Program n n n Participation information is located on the CAL-Card website n Click on “Participation Information” Review/Print the Implementation Process Complete a Request to Participate Provide U. S. Bank with all information included on the Request to Participate form E-mail cpsmidmarketsalescoordinator@usbank. com for assistance completing the required forms

CAL-CARD TIPS ü Add http: //www. dgs. ca. gov/pd/Programs/Leveraged/CALCard. aspx to your favorites ü Internet transactions- screen print the “Order Confirmation” ü Print contact information from website for easy reference ü Use only the blue links on website; do not use links on left side of page or tabs at the top ü Share all CAL-Card communications with alternate Program Administrators; create a “CAL-Card” folder ü Review Access Online web-based training; print User Guides ü Subscribe to CAL-Card Bulletin page for current updates ü Always ask for the name of the person you are speaking to when calling U. S. Bank

Questions may be directed to: Melissa Gould (916) 375 -4579 melissa. gould@dgs. ca. gov or U. S. Bank - calcard@usbank. com