300 likes | 908 Views
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
E N D
State of CaliforniaGovernment Purchase Card Programhttp://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 freepayment 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
Contractor: Term: October 19, 2006 to October 18, 2011 Five year contract with one (2) year option for renewal (2013) CAL-Card Contract
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 • Payment options include: • 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 • 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 $ • Prompt PaymentRebate – invoices paid before the 45th day from invoice date, minus any formal disputes or reported fraud, qualify for prompt payment rebate • Average Transaction Rebate • Volume Sales Rebate • Rebates are calculated quarterly; a check is sent to the Program Administrator on the 50th day after the end of each quarter • 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 • Purchase cards are no longer considered a “Small Dollar” purchase tool • Agency’s rebates are increased when using CAL-Card as a payment mechanism • 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 1-800-344-5696 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 • 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 • 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 • 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 1st of each year • 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 • Billing Officials should review the “Access Online Payment Process” presentation on the CAL-Card website • Click on “Access Online” from the home page • Provides procedures when remitting payment to U.S. Bank to ensure proper posting of payment • Do notsend 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 • Include the payment coupon from the Managing Account Statement when sending payment to U.S. Bank • This is the top portion of the invoice • If you are a state agency, attach this coupon to your state remittance advice • 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 • Contact your Account Coordinator to set up electronic approval in Access Online
Billing and Reconciliation, cont • 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 45th 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 • Click on “Program Information”, “Guidebooks”
Managing (Corporate) Account Summary **Invoice** Perforation • Top portion is the payment coupon; send with your check when making payment to U.S. Bank • Lists Cardholder transactions • Unpaid balance rolls forward
Top Portion of the Invoice This number must be included on your check or remittance advice
Cardholders • 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 • Prompt reconciliation maximizes agency Prompt Payment Rebate • Cardholder is responsible for filing disputes, if needed • This may be done through Access Online, filing a Dispute (CSQI) form (located on the CAL-Card website) or calling customer service
Cardholder Statement of Account DO NOT LIST CARDHOLDER ACCOUNT NUMBER(S) ON YOUR CHECK WHEN MAKING A PAYMENT
Approvers • 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 • 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 • 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 • Cardholder changes may be done through Access Online • Program Administrator and Billing Official changes- • Contact your Account Coordinator or email calcard@usbank.com • U.S. Bank will need your agent/company numberto make these changes This includes changes to: • Name • Address • Telephone number (including area code changes) • Fax • Email address • Agency name
Training • Internal (agency) training is essential for a successful CAL-Card program • Develop written procedures • Several training resources are available on the CAL-Card website • Provide CAL-Card training on a regular basis • Monthly, Quarterly, Yearly • Make sure all new staff receive training • 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 • From http://www.dgs.ca.gov/pd/Programs/Leveraged/CALCard.aspx click on “Access Online” then click on “U.S. Bank Access Online Training” • Web-based training– To obtain current passwords for (wbt) training email US Bank: calcard@usbank.com • Web conference training – • Access Online training provided to you at your desk • 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 • Participation information is located on the CAL-Card website • 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 • Add http://www.dgs.ca.gov/pd/Programs/Leveraged/CALCard.aspx to your favorites • Internet transactions- screen print the “Order Confirmation” • Print contact information from website for easy reference • Use only the blue links on website; do not use links on left side of page or tabs at the top • Share all CAL-Card communications with alternate Program Administrators; create a “CAL-Card” folder • Review Access Online web-based training; print User Guides • Subscribe to CAL-Card Bulletin page for current updates • Always ask for the name of the person you are speaking to when calling U.S. Bank
QUESTIONS? Questions may be directed to: Melissa Gould (916) 375-4579 melissa.gould@dgs.ca.gov or U.S. Bank - calcard@usbank.com