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Purchasing Card Program History & Recognition
The West Virginia State Purchasing Card Program was implemented in 1996 when State Auditor Glen B. Gainer III envisioned the need for a process that would create more accountability for purchases, improve relations with vendors and save the State millions through cost avoidance.
Auditor Gainer developed the Local Government Purchasing Card Program in 2008 to bring all local government entities into a single purchasing card program and replace the various card types existing today across county and municipal governments. Offering all local government entities the opportunity to be part of one single purchasing card program will allow them to achieve the highest possible rebate back to the local governments.
The State Auditor’s Office Purchasing Card Division is staffed with 20 employees consisting of six Certified Purchasing Card Professionals (CPCP), two Certified Public Accountants (CPA) and two Certified Fraud Examiners (CFE).
The State Purchasing Card Program has achieved great success being recognized by VISA International in a 2004 nationwide study performed by Deloitte & Touche, which called West Virginia's program "one of the nation’s best", having implemented 12 of the nation’s top 26 best practices.
The purchasing card is the preferred method of payment for the procurement of eligible goods and services. It offers state agencies, boards and commissions, and local government entities an efficient method for streamlining the payment process.
The Purchasing Card Program offers agencies an efficient method of payment while continuing to meet established internal controls for the procurement and payment of goods or services. It reduces the volume of accounts payable transactions and the associated administrative costs by eliminating vendor invoices and consolidating multiple vendor payments into one monthly payment to the charge card vendor; suppliers are paid directly by the card issuer within three (3) business days.
The purchasing card offers many benefits such as increased accountability for purchases, improved reporting of purchasing activity, and fraud prevention. "Industry standard" for purchasing card misuse accounts for $250 of every $1 million transacted.
The purchasing card allows the State Auditor's Office to know almost immediately when potential fraud has occurred. The swipe of the card immediately sends notification if abnormal purchases have taken place.
The purchasing card has also improved relations with the business community, reversing the negative reputation with vendors, due to the length of time required to process payments. Prior to implementation of the program, the average wait for a vendor to receive payment was 70 days. The purchasing card has allowed vendors to receive payment in 2-3 days. This prompt and efficient method of payment has allowed the State and local government entities to be more selective in its business partners as well as allowing the State and local government entities to negotiate better discounts on the cost of goods and services.
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