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The Purchasing Card Program offers local government entities 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.
Local government entities utilize the purchasing card for regular routine payments and travel as well as emergency payments.
For fiscal year 2010, the Local Government Purchasing Card Program processed in excess of 42,000 transactions totaling approximately $16,500,000 with an average transaction amount of $386.60.
The Operations section of the Local Government Purchasing Card Division promotes the use of electronic processes of the purchasing card program. The section provides assistance to the local government entities in developing policies and procedures, internal controls, maintenance of accounts, fraud monitoring as well as customized usage reports.
The purchasing card provides additional savings beyond the cost avoidance savings previously discussed. These savings are from the following areas:
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Discounts on the cost of goods or services provided to the local government entities directly attributable to prompt payment with the purchasing card.
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The local government entities realize additional savings in the timely delivery of goods and services, directly attributed to prompt payment from the use of the purchasing card.
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The use of the purchasing card has allowed the local government entities to become a better business partner. With its cost avoidance and prompt payment efficiencies, it is receiving additional interest from vendors desiring to transact business with the local government entities. This allows the local government entities to be more competitive in selecting business partners, most certainly allowing the entities to be more selective when considering cost of goods or services and the timely delivery of such goods.
For the Purchasing Card Program to continue to maintain its high acclaim and cost avoidance savings, we must continue to have aggressive and ongoing monitoring in addition to appropriate individual local government entity requirements.
2011 Spring P-Card Newsletter
2010/2011 Winter P-Card Newsletter
2010 Fall P-Card Newsletter
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