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State of Nevada: Purchase Card Overview – Agency introApril 17, 2014
2
▪ Introductions
▪Bank of America Overview▪ Individual rebate program
▪ Each Dept will receive their rebate
▪ How they pay their bills will only impact
their Dept rebate
▪What we expect from you▪ You are Purchasing’s ongoing POC for issues▪ Identifying POCs for implementation to work with the Bank
▪ Oversight of Dept payment timeliness
▪ Adding and deleting PCA/TCAs
▪Transition and Implementation▪ Collecting old cards and distributing new cards
▪Transition and Implementation, cont.▪ Contacted by Pamela Stalling to schedule construction of each agency’s P-card and T-card program▪ What information the agencies will need to have for the program set up
▪Transaction Management▪ Online Application in Works▪ Approval levels determined by agency▪ Data import into ADVANTAGE for payment
▪Payment Terms▪ Options from Bank and determined by the Dept▪ Err on side of caution, it can be changed to a quicker payment requirement at a later date to drive rebate
▪Questions and Answers
Agenda
33
Introductions - Bank of America Merrill Lynch
Offering a dedicated, Nevada focused team…
CLIENT TEAM
EXTENDED TEAM - CARD
…backed by strong, committed resources
State of Nevada
Client Team
Extended Team
Greg TitusSVP, Senior Client [email protected]
Jeff MooreSVP, Senior Treasury Solutions [email protected]
Beverly DrurySVP, Senior Product Sales [email protected]
Holly CampbellVP, Senior Card Account [email protected]
Leadership ImplementationPam StallingsVP, Public Sector Business Leader 303-617-9171 [email protected]
Michael BellTreasury Services Sr. Advisor Dedicated Card Servicing 888.715.1000 ext 21651 [email protected]
Nevada Consortium Overview
55
Nevada Consortium Public Sector Group Overview
The NVCPSG, introduced in 2006 has continued to see year over year volume and membership growth.
Membership provides dedicated support staff, a forum for peer-to-peer networking, and the ability to earn additional rebate basis points. The 2012-13 fiscal year
spend of $55 million resulted in over $575,000 in revenue sharing back to qualifying members.
The NVCPSG volume has more than tripled since 2006.
REVENUE SHARING
BENEFITS
STRONG OUTLOOK
GROWTH
12 34
66
Current Members
NVCPSG Member Agency Product
• Carson City School District Purchase
• City of Carson City Purchase
• City of North Las Vegas Purchase, ePayables
• City of Reno Purchase
• City of Sparks Purchase
• Clark County ePayables
• Clark County School District ePayables
• Clark County Water Reclamation - (CCWR) Purchase
• Douglas County Purchase
• Incline Village General Improvement District
Purchase
• Las Vegas Metro Police Purchase, Travel
• Lyon County Purchase
• LVCVA Purchase, Travel
• NSHE – UNR ePayables
• Nye County Purchase
• RSCVA Purchase
• State if Nevada *** Purchase, Travel
• Storey County Purchase
• Truckee River Flood Management Authority Purchase
• Washoe County Purchase, ePayables
77
Nevada Consortium Contract Overview
• NV Consortium Contract• In March, State of NV linked to NV Consortium Contract for Card Services• Approved by State Board of Examiners
• NV Consortium Benefits• Total Annual NV Consortium Volume drives revenue sharing
potential• Annual Rebate eligibility requirements include
• Calculation period = Fiscal year - July – June• On-time payments in full to maintain eligibility
88
Nevada 2014 Rebate Grid
NVCPSG Cycle days 7 14 14 30 30 30 30 30Standard Transaction Multiplier Table Grace days 3 3 7 3 7 14 20 25
Excludes Large TicketAnnual USD Card Volume Tiers REBATE BASIS POINTS
$500,000 $9,999,999 127 125 123 120 118 114 110 107$10,000,000 $14,999,999 130 128 126 123 121 117 113 110$15,000,000 $19,999,999 140 138 136 133 131 127 123 120$20,000,000 $24,999,999 143 141 139 136 134 130 126 123$25,000,000 $29,999,999 146 144 142 139 137 133 129 126$30,000,000 $34,999,999 149 147 145 142 140 136 132 129$35,000,000 $39,999,999 152 150 148 145 143 139 135 132$40,000,000 $44,999,999 155 153 151 148 146 142 138 135$45,000,000 $49,999,999 158 156 154 151 149 145 141 138$50,000,000 $64,999,999 160 158 156 153 151 147 143 140$65,000,000 $79,999,999 162 160 158 155 153 149 145 142$80,000,000 $94,999,999 164 162 160 157 155 151 147 144$95,000,000 $109,999,999 166 164 162 159 157 153 149 146
$110,000,000 $124,999,999 168 166 164 161 159 155 151 148$125,000,000 $139,999,999 170 168 166 163 161 157 153 150$140,000,000 $154,999,999 172 170 168 165 163 159 155 152$155,000,000 $174,999,999 174 172 170 167 165 161 157 154$175,000,000 $199,999,999 176 174 172 169 167 163 159 156$200,000,000 $224,999,999 177 175 173 170 168 164 160 157$225,000,000 $249,999,999 178 176 174 171 169 165 161 158$250,000,000 $274,999,999 179 177 175 172 170 166 162 159$275,000,000 $299,999,999 180 178 176 173 171 167 163 160$300,000,000 + 181 179 177 174 172 168 164 161
Large Ticket Interchange Multiplier Table Cycle Days 7 14 14 30 30 30 30 30
Qualified Transactions Grace Days 3 3 7 3 7 14 20 25Annual Volume REBATE BASIS POINTS
$0 + 70 69 68 67 65 63 62 60
(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)
99
Nevada 2014 Rebate Grid
(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)
NVCPSG Cycle days 7 14 14 30 30 30 30 30
Standard Transaction Multiplier Table Grace days 3 3 7 3 7 14 20 25
Excludes Large Ticket
Annual USD Card Volume Tiers REBATE BASIS POINTS
$50,000,000 $64,999,999 160 158 156 153 151 147 143 140
Large Ticket Interchange Multiplier Table Cycle Days 7 14 14 30 30 30 30 30
Qualified Transactions Grace Days 3 3 7 3 7 14 20 25
Annual Volume REBATE BASIS POINTS
$0 + 70 69 68 67 65 63 62 60
10
Rebate Calculation criteria
●(1.) Volume (standard) Tier = $50,000,000 - $64,999,999
●3. Cycle/Grace – (Speed of Pay)
●2. Your (standard transaction) program volume
4. (Large Ticket vol) cycle/grace – (if applicable)
Vol Cycle / grace BPS Rebate$500,000 30 / 25 1.40% $7,000.00
30 / 14 1.47% $7,350.00
Vol Cycle / grace BPS Rebate$1,000,000 30 / 25 1.40% $ 14,000
30 / 14 1.47% $ 14,700
(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)
Works - Card Management Platform
Works: All-inclusive Program Management
12
Seamless integration into your business processes Easy to navigate with minimum clicks to:
o Define accounting codes and cost allocationso Manage roles and accesso Administer cards and profileso Control spending and access at multiple levelso Create customized reportso Enable simplified cardholder reconciliationo Provides robust audit and control functionality
Convenient spend control profiles apply to multiple cards o Saves timeo Increases control
99.96%system availability
A solution that meets all of the State’s requirements ... and offers even more.
We can meet all of your required technical elements. Let us demonstrate.
Purchase Card Implementation
1414
Streamlined Agency Implementation
servicingimplementation relationship
▪ Builds reporting platform and hierarchies to support reporting, data integration
▪ Provides training to program administrators
▪ Effective resource coordination from a single source
▪ Proven timely project delivery
▪ Updates throughout to track progress and ensure satisfaction
▪ Global & regional account managers share:− Best practices− Overall growth strategies
and program optimization▪ Acts as a point of escalation▪ Develops an approach to
address specific client challenges
▪ Identifies and improves processes
▪ Provides a roadmap for re-engineering
▪ Performs process reviews
▪ Cardholder/company-level support
▪ Local card, language support in local time zone
▪ Coordinated by a team you know and trust
▪ Specialists assist with operational questions
▪ Technical resources to complement your current team
▪ Company-level servicing provides in-region support; key point of contact for the program administrator; and assists with card program management
1515
Four phases of a successful implementation
define
▪ Define project goals, team roles & responsibilities
▪ Agree on program scope: phases, timeline for card issuance, data integration and project completion
▪ Execute the documentation required
▪ Finalize the project statement and issue project plan
design
▪ Collect the data needed to configure your program, to support your automation, control and spend processes objectives
▪ Review existing policies, procedures for card use
▪ Prepare the communication plan
▪ Data integration file specification
deliver
▪ Verify the solution supports the operational processes to achieve the project goals
▪ Complete systems configuration
▪ Build the data integration file and set-up connectivity
▪ System training▪ Deploy the solution
and issue cards
review
▪ Post go-live monitoring & validation
▪ Initiate the transition to “business as usual” sustaining operations
▪ The Account Servicing team takes over
▪ Post-implementation review
Program Optimization and Marketing
1717
Program OptimizationMaximize your Card Usage
Are you getting the most benefit from your Card program? Do you have the ability to move additional approved spending from check to Card?
• Is my agency utilizing the Card in all departments? • Are all departments using Card whenever possible?
• Is the Card being used for travel related expenses? • Is my agency including in bids that Card is the preferred form of payment?
• Question PO’s for low dollar purchases
1818
Individual Program Optimization and Consulting
OpportunityConsultative analysis & planning Provides benchmark and best
practice information Identifies opportunities, benefits of
expanding your card program Develops a tactical card expansion
plan to help you achieve your financial goals
Provides periodic reviews
Supplier target & enrollment services Identifies and helps you prioritize
suppliers who accept card payments at the amounts you need to pay
Engages our Merchant Services group to discuss enrollment opportunities for suppliers who do not accept card payments
Enables key suppliers to accept card payments
1919
Program Marketing
How do you increase key Agency participation?
• As primary state bank for over 25 years we know all key agencies • We will meet directly with agencies to outline the benefits of program participation• We can personalize Works demonstrations to address individual Agency issues• Regularly scheduled member user group meetings to promote ongoing peer networking and gain industry knowledge
• This has been key to the success of the Nevada Consortium
• No other bank offers this level of marketing support!
2020
A Track Record of Growth
2007 2008 2009 2010 2011 2012 2013 $-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
Oregon Consortium
2007 2008 2009 2010 2011 2012 2013 $-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
Washington Public Sector Group
2007 2008 2009 2010 2011 2012 2013 $-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Nevada Consortium
2012 2013$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
Idaho Consortium
21
▪ Better Fraud Control
Benefit Summary
▪ Improved fraud monitoring
▪ Improve process efficiencies ▪ Integration with accounting system
▪ Decrease operational expenses
▪ Increase revenue without increase spending▪ Shift of existing spending
▪ Strong support network through agency & local government peers
Appendix
2323
Works®
Real-time manipulation
of credit availability
Works®
Easy integration
into your ERP system
Online hierarchy
management
Card maintenance
and Active Card Controls
Spend monitoring for encumbered
funds and discretionary/incremental
funds
Pre-approval and post-approval
workflows
▪ One of the most innovative web-based travel and purchasing card solutions available
▪ Data can easily be integrated into ERP systems
▪ Tools to make card the payment method of choice:–Real-time card controls–Funds pre-approval process–Declining balance card issuance–Merchant Category Code (MCC) restrictions
and transaction limits to purchasing authority–Card issuance or suspension–Add or close cards in real-time
▪ Simplifies management reporting–Online, on-demand, configurable reporting–Spend by vendor reports
▪ Accommodates unique cardholder, manager, auditor, accountant and administrator permissions
▪ Existing HR data feeds for account, addition, deletion, and maintenance
▪ Level III purchasing and travel data
2424
Works: Differentiators
Credit refresh feature
Active Card ControlTM
Accountingsupport
Pre-purchase approval
▪ Flexibility to make one-time purchases for optimized control
▪ Increase/decrease funds on card, disable cards in real-time
▪ Enforce corporate and individual spending policies by blocking specific Merchant Category Codes (MCCs)
▪ Ability to monitor spending towards projects or grants with spend monitor
▪ Map, configure GL segments or use GL assistant to enable cardholders to pick from a list of cost center codes
▪ Upload changes or additions to GL Segments or Valid combinations
▪ Ability to move large-dollar transactions to purchasing cards by using electronic pre-purchase approval by management
▪ Ability to control when a cardholder’s credit line will refresh even with central payment option
2525
Comprehensive card program management
Why Works?
streamlined reconciliation
timely data & reporting
self-service administration
web-based solution
▪ 24x7 online access▪ Permissions-based sign-
on ▪ Intuitive, user-friendly
navigation▪ Works Resource Center– Individual account status– Central starting point for
tasks– Alerts and updates
▪ No software installation or maintenance
▪ Request, activate and close cards online
▪ Modify card settings in real-time
▪ Enforce card controls at the point of purchase
– MCC Group restrictions and limits
– Transaction & credit limits
▪ Audit logging of card program changes and actions
▪ Enables distributed or centralized tasks
▪ Automates and improves accuracy of allocation
▪ Hands-free reconciliation reduces manual activities to exception handling
▪ Supports post-purchase transaction details, reallocation and approval
▪ Offers transaction file export to financial application
▪ Improve reconciliation with transaction matching
▪ Transaction data updated daily for immediate access to spending information
▪ Permissions-based online access to data and reports
▪ Visibility into individual or group spending activity
▪ Full transaction data export for further analysis
2626
Robust payment management capabilities
Why Works?
dynamic credit management
hands-free reconciliation
business ruleengine
transaction workflow
▪ Facilitates user review and accountability
▪ Enables appropriate approvals and controls, both pre- / post-purchase
▪ Streamlines cross-departmental data flow
▪ Enables policy enforcement at the time of request and the point of purchase
▪ Facilitates spending authority matrix
▪ Reduces process flow bottle-necks by automating certain decisions
▪ Applies policies to transaction types generating alerts
▪ Offers flexible credit limit management – discretionary vs. pre-approval
▪ Facilitates dynamic adjustment of individual credit limits for pre-approved purchases
▪ Enables credit limit restoration based on user compliance
▪ Automation reduces manual activities to exception-handling
▪ Enforces cardholder reconciliation activities via delayed restoration of funds feature
2727
Configurable reports options
Why Works?
Reporting made simple
Select from
650+ data
fields to create an endless
variety of report templates
Report categories Filter examples
650+ data fields
Card
Purchase request
Audit
Spend
Defined groups
Employees
Card numbers
Card profiles
Card status categories
Card statement periods
Fields include, but are not limited to:
Allocation
Cardholder
Card
Transaction
Card decline
Card profile
Card renewal date
Cardholder spend limits
2828
Exact Authorization Override
Valuedrives efficiencies and provide flexibility
to Purchasing, Travel, Commercial, and One Card cardholders
Before Exact Authorization OverrideIn order to enable a purchase outside of standard card controls, the PA would move the card out of the existing profile to a specific profile and then
schedule the card to move back to the last profile after a period of time
After Exact Authorization OverrideEAO drives efficiencies for card clients by
eliminating the need to move cards in and out of profiles, instead, enabling exception, one-off purchases by placing the card in an exact
auth profile
Make specific purchases outside of normal card controls, while retaining strict controls over the card program.
Uploading receipt images
29
Uploading receipts into Works:
1. Once enrolled in the program, a cardholder logs into Works.
2. The cardholder selects the transaction, reimbursement request or expense folder which corresponds to a receipt image.
3. The accountholder clicks on the Single Action Menu (SAM), and selects “Manage Receipts”.
4. The user clicks “Add”, selects the receipt image to be uploaded, and clicks “OK”.
Retrieving receipts:
1. A cardholder/manager logs into Works.
2. The cardholder/manager selects a transaction, expense report to view attached receipts.
3. The user clicks on the name of the image to view the image.
4. The user can then print and save PDF images on their computer.
SimpleReceipts can be attached directly from the desktop to the transaction, reimbursement*, or expense report.
* Users can upload receipts from their desktop directly into Works.
Receipts can be attached to the transaction, reimbursement* or expense folder.
Additional receipts can be stored in the Receipt Store until needed.
* With deployment of Reimbursements project; expected in December 2013
3030
Declining balance card features
Valueprovides greater control and visibility in all card programs
*Prepaid CardBofAML also offers business
funds prepaid cards for employees with business
expenses. Receive reporting on purchase and transaction activity by cardholders.
Need a fixed value card for personal use?For a fixed value card for a non-employee or for consumer-related purchase activity, our personal funds prepaid card solution is a perfect fit.
Common uses for events, projects, grants, etc.
Funded with a single amount for a specific business-related purpose and time period.
Funds are not restored with a payment or on a cycle date.
Funds decline as purchases are made until the funds are spent (or the time period is passed).
Used only by employees and only for business transactions.
Detailed reporting on all transactions in Works.
Dec
linin
g ba
lanc
e fo
r bus
ines
s ex
pens
es
3131
Works Card Shuffler
Valueconvert check payments to
electronic payments
▪ Use purchasing cards for non-recurring, high-volume payments securely and efficiently
▪ Card number is only available to that vendor once payment is approved
▪ Using Works Active Card ControlTM, cards lay dormant with no available funds until they are funded for vendor payment by an organizations claims/warranty or eProcurement system
▪ Control card limit/expiration date of each payment▪ Each card account number can correspond to one
payment enabling ease of reconciliation
Automated reconciliation Convert additional spend to cards
One-time payments to single vendors
3232
Generating purchase requests
Card ShufflerSimple & Secure
▪ Shuffler selects a card account to be used for the payment when a purchase request is generated through ePayables.
▪ Account number is automatically assigned and available to be viewed through a secure method.
▪ Notify the vendor of the card account number. ▪ Using the patented Active Card Control™
technology, each card is funded with the exact amount to be paid.
▪ Select the shuffler as the payment method.
▪ Once Shuffler selects a card account, authorized users may run a configurable report or view the purchase request details to locate the selected full account number.
▪ Communicate the account number to the vendor.
AutomaticAutomatically generated purchase requests
ManualManual purchase requests
Why MasterCard for Purchasing and Travel Card Programs
MasterCard Information Advantage
• Manages a full range of global payments brands and related products• Sets and enforces policies and rules• Establishes standards and procedures for merchant acceptance and settlement• MasterCard has a global data repository using a standardized global format, Visa does NOT
Acceptance
MasterCard Branded Cards Are Accepted Globally at Nearly 36 Million Locations
Total MasterCard Acceptance Locations*(in Millions)
Worldwide APMEA Europe United States Latin America Canada
35.9 10.6 10.1 9.2 5.0 1.0
• MasterCard has a material and quantifiable acceptance advantage over Visa in the US due to Visa’s lack of acceptance at Sam’s Club and Visa’s weaker acceptance in industries like utilities, education and healthcare
• Purchase Card Level 3 Line Item detail from over 400,000 B2B suppliers*
• Currently 3 out of the top 5 largest utilities accepts MasterCard and not Visa*
• Southern California Edison (Los Angeles metro), Florida Power & Light (state of Florida) and Con Edison (New York metro) do not accept Visa
* source: MasterCard Worldwide Q4, 2012 SEC report
36
Notice to Recipient
"Bank of America Merrill Lynch" is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered as broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.
This document is intended for information purposes only and does not constitute a binding commitment to enter into any type of transaction or business relationship as a consequence of any information contained herein.
These materials have been prepared by one or more subsidiaries of Bank of America Corporation solely for the client or potential client to whom such materials are directly addressed and delivered (the “Company”) in connection with an actual or potential business relationship and may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with us. We assume no obligation to update or otherwise revise these materials, which speak as of the date of this presentation (or another date, if so noted) and are subject to change without notice. Under no circumstances may a copy of this presentation be shown, copied, transmitted or otherwise given to any person other than your authorized representatives. Products and services that may be referenced in the accompanying materials may be provided through one or more affiliates of Bank of America, N.A.
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