Overview of the Federation of Independent IL Colleges & Universities PCard Program

1. Overview of the Federation of Independent IL Colleges & Universities PCard Program

2. “The best purchasing card programs are changing historical paradigms." Jeff Pikulik, Purchasing, Oct 2005 E-procurement can be an excellent foundation for the formation of a strategic procurement initiative. Syllabus, 2006 P-Cards and collaboration changes the way that America’s independent colleges are doing business. Bob Maurer, The Greentree Gazette, March 2006

3. Purchasing Card: A Card-Based Payment Solution Why Purchasing Cards? • 80% (or greater) of all institutional purchase transactions are below $500 • Payment vehicle versus a procurement function • Process efficiency • Single card for all purchases • Reduced paper • Reduced labor • Enhanced card controls • System-driven reconciliation Capital Long-term Debt Low DOLLAR High Low VOLUME High Daily Operational Costs

4. Purchasing Card Benefits for Higher Educations Creating Value with Savings and Efficiency • Streamline the Purchasing Process • Reduce the amount of invoices processed • Reduce the amount of checks processed for “low dollar, high volume” invoices • Reduce the amount of time required to fulfill need • Reduce the overall transaction cost • Increased Control • Rebate based on volume • Improve your accountability measures • Gain ability to run reports on data spend patterns • Increase knowledge of purchasing habits across your entire campus

5. The Cost to Process a Purchase Order Averages $65-125 Receiving: Receive Goods Manager: Approve Purchase Purchasing: Purchase Goods End User: Generate P.O. or Requisition End User: Need to Buy Accounts Payable: Match per Purchase Accounts Payable: Pay per Purchase File P.O. and Purchase Information Accounts Payable: Post to GL

6. The Cost to Use PCards Averages $21 Receiving: Receive Goods Purchasing: Purchase Goods Manager: Approve Purchase End User: Generate P.O. or Requisition End User: Need to Buy End User: Purchase & Receive Goods Purchase History Filed Electronically Accounts Payable: Match per Purchase Accounts Payable: Pay per Purchase File P.O. and Purchase Information = Cost Savings to Your Institution! Accounts Payable: Post to GL

7. Target Card Applications Bottled Water Electrical Supplies Medical Supplies Virtual Offices Business Forms Equipment Leasing Microfiche Storerooms Cafeteria Services Fax Machines Subscriptions Library Databases Catering Fax Supplies Overnight Mail Temporary Services Cellular Phones Freight Pagers Relocation Services Chemicals Furniture Parking Training Cleaning Services Guard Services Utilities Fuel & Transportation Computer Hardware Hardware Periodicals Uniforms Computer Peripherals Industrial Supplies Pest Control Work Orders Computer Software Inventory Photocopying Fleet Costs Computer Supplies Janitorial Services Photographic Material Bookstore Consulting Legal Services Postage Copier Supplies Contract Labor Locksmith Printing Lighting Services Copiers Maintenance Contract Production Services HVAC Courier Services Mailing Equipment Promotional Items Travel & Entertainment

8. Collaboration with CCCS • Contracts negotiated to expand to multiple states • 15 States currently accessing PCard contract • Collaboration initiatives and program expansion focused through CCCS • Resource Website www.thecoalition.us • Implementation guides • Audit protocols • Helpful marketing materials • FAQs • Discussion forum

9. Summary of Opportunity • Streamline campus purchasing processes • Increase controls on purchasing • Utilize an industry p-card leader • Multiply your rebate by combining spend dollars with institutions across the country • Illinois facts: Eligible schools: 58 Accessing schools: 1 2006 YTD Spend through September 1st : $1,331,340.23

10. The CCCS and the Federation PCard Program is more than just a way of purchasing goods and services… “If you want to go fast, go alone; ifyou want to go far, go together.” …it’s Strength through Collaboration.