Embed Size (px)
Citation preview
Quarterly Purchasing Card Administrators’ Meeting Friday, February 17, 2012 – 9:00-Noon Winewood Office Center, Building 4
AGENDA Introductions
Special Presentations
Bill Geier, DFS, Office of Financial Integrity—Who They Are and How to Avoid Them
Mark Hernandez, DMS—Using the State Term Contract at Office Depot and Staples
LaQuita Varnado-Extine, DFS—PCard Website Update
Outstanding Items
ITN Update—No Report
Rep Letter—No Report
New Items
Process to Change Agency PCard Administrators and Backups
Ordering Card Sleeves
Paper Statements
Card “Bonus Features”
Charging at the “Vendor Next Door” (Ultimate Beneficiary Law)
Online Purchases—Documentation Requirements
Using Level 3 Data—Michelle Oliver
MRE Training
Maricopa County Video—PCard Controls
Questions/Other Discussion
Post Meeting OPTIONAL Slide Show
Based on popular demand, a few slides/stories related to Marie’s Holiday in Paris
Quarterly Purchasing Card Administrators’ Meeting Minutes Friday, February 17, 2012 – 9:00-Noon Winewood Office Center, Building 4 Facilitator: Marie Walker
Introductions Special Presentations
Bill Geier, DFS, Office of Fiscal Integrity (OFI) – Who They Are and How to Avoid Them (Presentation posted on Purchasing Card Quarterly Meetings website.)
Mark Hernandez, DMS – Using the State Term Contract at Office Depot and Staples (Presentation posted on Purchasing Card Quarterly Meetings website.) Additional discussion:
o Administrators should inform Mark of non-responsive contract vendors. His contact information is included in the presentation.
LaQuita Varnado-Extine, DFS – PCard Website Update
o PCard website is being rebranded to be consistent with other CFO websites.
o Pages will be rolled out as they are ready.
o New reports will be added to the PCard website. The following reports should be ready by the end of April 2012:
Summary of MCC and Object Codes – with drill down details Level 3 Report Card Limits vs. Actual Charges – with drill down details Charge Summary Report by Group/Cardholder – with drill down
details Cardholders and Approvers Report
o Excel output of new reports will not be formatted as they are now (like the on-screen version). New reports will have two options for output: .pdf and Excel. Output of old reports will be changed as time permits.
o All Information Warehouse data is current as of the previous night. Outstanding Items
ITN Update – No update to report.
Rep Letter – No update to report.
Revision to Model Plan – No update to report.
New Items
Process to Change Agency PCard Administrators and Back-ups – The following steps must be completed when there is a change to the Agency Administrator or Back-up:
o The PE record must be updated by the Agency Administrator or Back-up, entering ―Y‖ in the Administrator field and ―A‖ in the Approver field.
o The Administrators and Back-ups Access Control Record must have ―Update‖ capabilities for the PCard Module (CD), granted by the agency’s access control custodian.
o Written requests for changes must be submitted to the Statewide PCard Office. (Contractually, DFS must notify the bank on letterhead to make changes.) The requests must include:
Name (s) & changes requested
Effective Date of Change
Contact Information
RACF-ID
Ordering Card Sleeves – Card sleeves are available from BOA. The following is the contact for ordering card sleeves:
Exzellia Dumas, AVP Card Sales Analyst 600 Peachtree Street Atlanta, Georgia 30308 (404) 607-5936 [email protected]
Paper Statements – It appears some agencies are receiving paper statements from the bank occasionally. The bank should be suppressing the statements. The Agency Administrators should inform the Statewide Office if they receive the statements.
Card ―Bonus Features‖ and Optional Insurance Issues – BOA includes flyers with the PCards offering ―bonus features, including roadside assistance and various insurance coverages. According to Jane Ritter at BOA, ―the features should be available on the corporate card program.‖ However, some of the ―features‖ have a cost attached. In regard to purchasing optional insurance coverages:
o It is not clear whether agencies have authority to purchase optional insurance coverage.
o The PCard provides insurance coverage for rental vehicles (not on the state term contract) in some situations, but not all.
o The Statewide Office has been in contact with the DFS Risk Management Office regarding insurance purchases. That Office recommends purchasing optional insurance coverage for cars rented outside the state term contract to protect the State.
o Rental equipment is treated differently. According to DFS Risk Management, there is no authority for purchasing rental equipment insurance from the rental vendor. The agency is liable for any damage to the equipment.
Discussion included the following comments: DEP purchases rental equipment insurance through DMS for 3-month periods. The Administrators discussed the difference in paying a minimal fee for vendor insurance versus purchasing insurance through DMS. This topic will be pursued through the Statewide Office; the agencies will receive additional information as it becomes available.
Charging at the ―Vendor Next Door‖ (Ultimate Beneficiary Law) – There has been a couple recent instances where a cardholder attempted to make a purchase with a vendor who did not accept credit cards. The vendor then processed the charge through another business’s credit card equipment. This is not acceptable, as transparency is lost. Payment must go to whom the State owes the money, and the receipt must match where the goods or services were purchased. This is addressed in Section 215.965, F.S.:
Disbursement of state moneys.—Except as provided in s. 17.076, s. 253.025(14), s. 259.041(18), s. 717.124(4)(b) and (c), s. 732.107(5), or s. 733.816(5), all moneys in the State Treasury shall be disbursed by state warrant, drawn by the Chief Financial Officer upon the State Treasury and payable to the ultimate beneficiary. This authorization shall include electronic disbursement.
The Agency Administrators should keep in mind that public records requests or the information on the web will show where the card is swiped. Also, depending on MCC, the transaction may not even process. If a vendor does not have the equipment to accept a PCard, cardholders CANNOT go next door and process the payment at another business. Another method of payment must be used.
Online Purchases—Documentation Requirements – When conducting charge reviews, the Statewide PCard Administrator’s Office has noticed that agencies do not always have enough documentation for online purchases. The Agency Administrators should refer to the Receipt Requirements section of the Reference Guide for State Expenditures. The cardholders should save a ―print screen‖ of the order information and combine it with other documents (such as packing slip, invoice, etc.) to ensure the receipt requirements are met.
Using Level 3 Data—Michelle Oliver (Presentation posted on Purchasing Card Quarterly Meetings website.)
MRE Training - The Enterprise FLAIR Education group has offered to teach one more MRE for Administrator’s Class. An announcement for the class will be sent the Agency Administrators once a date has been set.
Maricopa County Video—PCard Controls (Video available upon request. Please contact Marie Walker or Michelle Oliver.)
PCard Meetings Website –The following website includes information for the Quarterly PCard Administrators’ Meetings:
http://www.myfloridacfo.com/aadir/PurchasingCard/PCardMeetings.htm
A link to the meetings website will be added to the PCard website.
Questions/Other Discussion
o Diana Blue had a question regarding the customer code/ID required at some gas pumps when using a PCard. According to Bob Notman, BOA stated any number will work.
Next meeting is scheduled for May 17, 2012.
February 17, 2012
Office and Educational
Consumables STC
P-Card Administrators
Quarterly Meeting
2
Introduction
• Mark Hernandez• CPPO, CPPB, FCPM, FCPA, FCCN, FCCM
• Associate Category Manager
• Division of State Purchasing
• Department of Management Services
3
Contract Administrator History
• 8 years in the Private Sector in Sales,
Management, Marketing, Advertising
• 13 years of State Procurement, Contract
Management and Administration
– DCF 8 years
– APD 3 years
– DMS 2 years
4
Office and Educational Consumables
• What we will cover today:
1. A little history on the solicitation and functionality of the contract.
2. What is covered under STC #618-000-11-1?
3. What is the best practice to ensure that I am getting the most
competitive price available under the contract?
4. Copies of the documentation (invoices/shipping reports/etc.) end
users can expect to see in support of purchases made through the
STC—to help identify ―doctored‖ documents.
5. Availability of replacement receipts—in the event one gets lost.
6. Reporting data from the vendors to the customers to improve
savings for the state.
5
State Term Contract History
• Effective October 18, 2010, a new state term contract for a
variety of office and educational products was executed.
• Awarded vendors include:
• Cost savings range from an average 4 to 13 percent off of the
previous state contract.
• Contract discounts average more than 50 percent, with
discounts up to 80 percent off the SP Richards List Price.
6
Contract Overview• This STC provides products in some of the following
categories:
• Each product category (above) has its own discount associated,
this STC includes three major discount categories:
– Core Items Non-Core Items Generic Items
Toner, Non-HP Toner Remanufactured
Folder, Binders and accessories Paper (20# white recycled & virgin,
other)
IT peripherals Office consumables (pens, post-it notes,
etc.)
Equipment Breakroom and cleaning supplies
7
Contract Overview
• These items are covered by other Florida STC.
• The awarded vendors were not required to include these categories
in their final product catalogs.
Contracted Items STC Number
IT Hardware & Software STC 250-000-09-1: Network Infrastructure
STC 250-040-08-1: PCs, Laptops and Monitors
STC 252-500-09-1: Mainframe and Other Software
Copiers STC 600-000-11-1: Multifunction Products
Safety and Lab Supplies STC 490-000-07-1: Laboratory and Safety Supplies /
Equipment
Office Furniture STC 420-420-10-1: Educational / Institutional Furniture
STC 425-001-05-P: Office Furniture
8
Contract Overview
• We started with over 400 core items, that are now over 800
core items(including both name brand and generic) total for
Office Depot and Staples, but about half that for GCOP.
• What is a core product? A core product is a item that has
collective annual spend of $10,000 or more.
• We are considering adding to this requirement the following
criteria:
• How frequently the item is ordered
• Numbered Ordered
13
Pricing Model
• Discount Category and Product Category – What is the
difference?
– Discount Categories – core, non-core, generic
– Product Categories – consumables, equipment, etc.
14
Pricing Model
Discount
CategoryProduct Category
Office Depot %
Discount off List Price
Staples % Discount
off List Price
Gulf Coast %
Discount off List
Price
Core Toner - HP 35% 37% 38%
Toner - Non HP 32% 42% 38%
Consumables 66% 64% 60%
Folders, Binders & Accessories 70% 66% 62%
Equipment 30% 53% 48%
Breakroom & Cleaning Supplies 40% 60% 52%
IT Peripherals 34% 55% 45%
Non-Core Consumables 66% 55% 60%
Folders, Binders & Accessories 70% 55% 62%
Toner - Non HP 32% 25% 36%
Equipment 30% 40% 36%
IT Peripherals 34% 40% 44%
Toner - HP 35% 32% 35%
Breakroom & Cleaning Supplies 40% 55% 52%
Paper - Other 60% 70% 60%
Generic Core &
Non-Core Consumables 79% 77% 75%
Equipment 36% 62% 76%
Folders, Binders & Accessories 75% 77% 62%
Paper - 20# White (Recycled and Virgin) 79% 81% 76%
Toner - Reman 63% 54% 72%
IT Peripherals 32% 44% 49%
Breakroom & Cleaning Supplies 55% 77% 52%
Paper - Other 71% 80% 72%
Toner - Non HP 61% 54% 58%
15
Contract Purchases: RESPECT and PRIDE
• Similar commodities or services of comparable price or
quality found necessary for use by any state agency may not
be purchased from any source other than RESPECT or
PRIDE.
• RESPECT or PRIDE purchases should be made prior to
purchasing off of a state term contract or agreement.
15
RESPECT products/services PRIDE products/services
•Office supplies, marker boards
• Janitorial products and services
• Office furniture
• Maintenance supplies
www.respectofflorida.org www.pride-enterprises.org/
16
Contract Benefits: Minimum Mandatory Requirements
• Delivery within two business days on orders placed by 4 p.m.
• Desktop delivery (How do I include desktop location?)
• No delivery fees for orders more than $25, excluding
furniture.
• Fees for furniture delivery not to exceed $40.
• Training from each vendor on how to use the vendors portal,
at the request of our customers.
• Order and price accuracy rates of 98% and 99.5%,
respectfully.
17
• A ―third party‖ audits each vendor’s pricing for contracted
items on a monthly and annual basis.
• Monthly Price Accuracy Audit – Samples a minimum of 570
items displayed on the vendor’s State of Florida portal.
• Annual Price Accuracy Audit – Samples a minimum of 600
customer invoices.
• The approved product catalog as submitted by the state will
be used to validate prices on the vendor’s website and on
customer invoices.
Contract Benefits: Third-Party Price Auditing
18
Additional Contract Benefits
• Each vendor maintains a Punchout catalog in MFMP.
• Each vendor has a strong presence in Florida.
• Gulf Coast Office Products and Staples offer potential volume
discounts.
• Staples and Gulf Coast Office Products do not have a
minimum order amount.
• Office Depot offers additional promotional opportunities (i.e.
waiver of the minimum order fee for the first year + of the
contract).
• Each customer can develop a shopping list of frequently
purchased items to speed up the order process.
19
Contract Tips & Tricks
• There are many ways to purchase off of this
contract:
• Not sure how to make your purchases? Use the Procurement
Decision Tree handout from DMS at
http://dms.MyFlorida.com/mfmp_jobaids
PCard purchases MFMP purchase orders Direct vendor sales
(for non-catalog orders
only)
•Vendor website
•MFMP PCard purchases
•In-store purchases
• Punchout catalog
orders
• Non-catalog orders
•Vendor website
•Phone, e-mail
•Sales representative
20
Contract FAQs
• What are the benefits of core vs. non-core items?
• Can we use our PCard to purchase items off of this contract?
• Is the contract pricing each vendor’s best and final offer?
• Is two-day delivery each vendor’s best and final offer?
• Are there minimum order requirements?
• How do I read the contract pricing spreadsheet?
• How do I read the vendor’s catalog on DMS website?
21
Office and Educational Consumables
2. What is the best practice to ensure that I am getting the most
competitive price available under the contract?
• Time Permitting end users should compare pricing, UOM, and other product details:
– Vendor’s State of Florida Punchout Catalog
– DMS State Purchasing Website catalogs can be downloaded in MS Excel Spreadsheet
• In Store may be an option as well to get lower prices.
• Why are some prices Lower on Joe Public’s web site?
22
Vendor Catalogs
• How are the catalogs validated?
Six Layers of checks
– UPC = SPR
• Manufacture Number
• Product Description
– Check UOM, QPU, List Price
– Discount % = previous Qtr or BAFO % off list
– Vendor’s Net Price = State/SPR Net Price
23
Office and Educational Consumables
3. Copies of the documentation (invoices/shipping reports/etc.)
they can expect to see in support of purchases made through
the STC—to help identify ―doctored‖ documents
• See handouts of Office Depot and Staples invoices, package slips and
• Ultimate responsibility for verification and approval of items ordered, received, and stocked is the end user.
24
Office and Educational Consumables
4. Availability of replacement receipts—in the event one gets lost
• Both Staples and Office Depot stated getting duplicate copies of documentation is possible.
• I have not confirmed this with Gulf Coast Office Products, yet, but most likely this should not be a problem.
25
1. Copies of the documentation that an end user/agency can expect
to see in support of purchases made through the STC with
Staples (to help identify ―doctored‖ documents)
– Open AR Payment/Ordering
– Credit Card Payment/Ordering
2. Availability of replacement documents
3. Reporting data available to the customers to improve savings for
the state
25
26
Staples - STC Overview
26
Important Note: State of Florida Agency End Users should be ordering via one
of two Means.
1. State of Florida Vendor Portal – (Punch-out Catalog)
2. My Florida Marketplace/ARIBA Punch-out
Any Invoices or Order Support Details Not referencing Staples Account
Number #1060810 (Contract Account) or 1061773 (Off-Contract account) are
not applicable to the Staples Advantage – State of Florida program
Our Government Exclusive Customer Care team should be the 800 Number
that is being called for questions or documents - 888-298-2206
27
Order Support for Open A/R Orders
27
Orders placed either on our web portal directly or via the MFMP Punch-out which
are billed as Open A/R orders and NOT paid via VISA P-Card, should be receiving or
have access to, the following support items for their records:
1. Emailed Order Confirmation Once Order has been processed
2. Detailed Packing List of Order Shipment included within each delivery
3. Staples Issued INVOICE with full order details and charges for
payment
- MFMP orders are invoiced via Daily XML Invoicing
- Staples Online Portal orders are invoiced via regular mail
4. Delivery Tracking/POD Information
*Please note that all Invoices and Packing Lists issued for State Term
Contract orders will also reference the STC #618-000-11-0 on them
28
Sample Order Confirmation Email
29
Sample Packing List
29
30
Sample Invoice
30
31
Order Support for P-Card Orders
• Orders purchased via a State Issued P-Card will NOT be issued an actual Invoice from Staples
• Order support information available is the same as Open A/R Orders (exclusive of the Staples Issued Invoicing)
• Order Confirmation Email
• Packing List Enclosed in Shipment
• Access to Delivery/POD Information
• P-Card Purchases will be invoiced directly through your
issuing P-Card company on Their Invoices
31
32
How to Get Copies of State Term Contract Support Docs
32
• Contact Staples Government Exclusive Customer Care Team:
• Phone: 888-298-2206
• Email: [email protected]
• Fax: 888-222-8618
• Please contact our government team listed above for any copy requests of Packing Lists, Invoices, Tracking Information or POD Requests. These requests can be easily and promptly addressed upon request.
33
Reporting Overview
• Your dedicated Staples Account Manager has access to many reporting tools that can be used to help drive savings within your program.
• Account Reviews covering expenditure and other various metrics within the STC offering are conducted Quarterly with DMS to review key metrics and review potential savings opportunities for the Contract as a whole.
• Due to the structure of the STC there are limitations to individual savings opportunities at the end user level however, the next few slides to touch on an important Savings Functionality available to all of our State of Florida end users as an up front way to more consciously shop and browse the STC offering, ―Easy Savings Alternatives‖.
• Detailed information from the Easy Alternatives functionality is accessible as well (included as an attachment), which drills down to the user level to review who is taking advantage of these Alternatives and who is not.
34
Office and Educational Consumables
5. Reporting data from the vendors to the customers to improve
savings for the state
• Our National Big Box Stores can provide similar functions Such as:
– Green or Cheaper alternatives to what is currently selected, e.g. remanufactured toner versus OEM, or a box of two dozens pens, versus a box of one dozens (cheaper by the dozen?).
– Super users views (Office Depot, Staples?)
35
Easy Savings Alternatives
• Presents lower cost alternative for user
consideration
• Identifies if a lower cost alternative is available
• Easy to compare original item and
recommended alternative
• Side by side comparison for easy evaluation
• Choice is up to user
• Flexible choice to purchase best value option
without sacrificing quality
• Our Field Marketing team can design, develop,
and deploy custom campaigns specific to
noncompliant end users
• Provide educational tools or refresher trainings
to reinforce this initiative
36
Recommended Alternative Details in StaplesAdvantage.com
How it works:
• When an item has an Easy Savings Alternative, it will appear in a box above the item selected
• A detailed side-by-side comparison of the two items is provided
• Choose either the original item or the Easy Savings Alternative by clicking the appropriate ―Add to Order‖ button
• It’s that easy!
37
Product Alternatives - Reporting• Product alternatives are an opportunity to
access a lower-cost substitute when purchasing qualifying products through StaplesAdvantage.com.
• Summary report of master account level data will now be available detailing the use of product alternatives within your organization.
• Summary data and reporting to include:
• Total number of product alternatives offered
• Accepted and declined alternatives (by period, quarter, year)
• Savings achieved (accepted products alternatives)
• Savings lost (declined product alternatives)
• Full DETAILED REPORTING is also available now (see Excel Spreadsheet) to be used within each Agency to target individual’s not utilizing these Targeted Product Alternatives
State of Florida Agencies
YTD Sales $1,038,848.39
YTD Easy Savings Possible $47,566.48
YTD Easy Savings Realized $5,632.49
Missed Savings as % of Sales 4.04%
Savings
Realized
Savings
Lost
38
Office Depot
39
Office Depot
40
Office Depot
41
Want to learn more about this contract?
STC Web page: http://dms.MyFlorida.com/stc/office_consumables
Discount of f list summary spreadsheet
Vendor information / vendor contacts
Contract commodity codes
Contract Manager
Mark [email protected](850) 414-6741
42
Contract Resources
Entity Name Contact Person Contact information
State Purchasing
Contract
Manager
Mark Hernandez [email protected]
•Gulf Coast Office
Products
Melanie Brock [email protected]
• Office Depot Lori Miller [email protected]
• Staples Ken Johnson [email protected]
MFMP Buyer Help [email protected]
(866) 352-3776
State Purchasing Customer Service [email protected]
(850) 488-8440
http://dms.MyFlorida.com/stc/office_consumables
43
Team Member E-Mail Phone Number
Contract Manager [email protected] (850) 414-6741
MFMP BuyerHelp [email protected] (866) 352-3776
MFMP F&A
Analyst
[email protected] (850) 294-0739
MFMP Operations
Manager
[email protected] (850) 488-7809
State Purchasing [email protected] (850) 488-8440
LEVEL 3 DETAIL MRE QUERIES
How to use the
LEVEL 3 DETAIL MRE QUERIES
LEVEL 3 DETAIL BY ADD DATE
LEVEL 3 DETAIL BY ADD DATE
Vendor
Charge
Date
Add
Date
Charge
Amount
Transaction
Amount
Transaction
Description
Commodity
Description
Level 3
Total Item
Amount
Level 3
Unit Item
Amount
Level 3
Item
Quantity
Level 3
Item Code
Level 3
Item Description
ADVANCE AUTO PARTS
#9312 01/23/12 01/26/12 $23.96 $23.96 GREASE FOR MISC EQUIPMENT $23.96 $5.99 4 07070036 GREASE-RED & TACKY 14 OZ L
AMAZON MKTPLACE PMTS 01/24/12 01/26/12 $18.99 $3.99 SHIPPING SHIPPING $15.00 $15.00 1 B0058V4O3A THE FRESHWATER DECAPOD CRU
AMAZON MKTPLACE PMTS 01/24/12 01/26/12 $18.99 $15.00 BOOK FRESHWATER DECAPOD CRUSTACEANS $15.00 $15.00 1 B0058V4O3A THE FRESHWATER DECAPOD CRU
AMAZON MKTPLACE PMTS 01/24/12 01/26/12 $22.99 $3.99 SHIPPING SHIPPING $19.00 $19.00 1 B000WWWIII SPHAERIACEAN CLAMS OF KANS
AMAZON MKTPLACE PMTS 01/24/12 01/26/12 $22.99 $19.00 BOOK SPHAERIACEA CLAMS $19.00 $19.00 1 B000WWWIII SPHAERIACEAN CLAMS OF KANS
AMAZON MKTPLACE PMTS 01/24/12 01/26/12 $228.99 $3.99 SHIPPING SHIPPING $225.00 $225.00 1 0867271582 BIOLOGY OF FRESHWATER CORB
AMAZON MKTPLACE PMTS 01/24/12 01/26/12 $228.99 $225.00 BOOK BIOLOGY OF
FRESHWATER CORBICULID
& SPHAERILD CLAMS $225.00 $225.00 1 0867271582 BIOLOGY OF FRESHWATER CORB
OFFICE DEPOT #1165 01/23/12 01/26/12 $13.00 $13.00 OFFICE SUPPLIES MOUSE $13.00 $13.00 1 277398 MOUSEPAD/WRISTREST,CRYST
OREILLY AUTO 00022236 01/24/12 01/26/12 $140.98 $140.98 ROTORS (2 EA.),
DISC BRAKES (2 EA.), FWC
#114178 $64.99 $64.99 1 WAG-MX1069 DISC PAD SET
OREILLY AUTO 00022236 01/24/12 01/26/12 $140.98 $140.98 ROTORS (2 EA.),
DISC BRAKES (2 EA.), FWC
#114178 $55.99 $55.99 1 WAG-MX1068 DISC PAD SET
OREILLY AUTO 00022236 01/24/12 01/26/12 $140.98 $140.98 ROTORS (2 EA.),
DISC BRAKES (2 EA.), FWC
#114178 $20.00 $10.00 2 LAB-ROTOR-C CAR/TURNED
WW GRAINGER 01/23/12 01/26/12 $59.81 $59.81 PVC PVC TUBING FOR #107772 $19.76 $2.47 8 2PMJ5 REDUCER BUSHING,3/4 X 1/2
WW GRAINGER 01/23/12 01/26/12 $59.81 $59.81 PVC PVC TUBING FOR #107772 $11.31 $3.77 3 6NG78 ADAPTER,FEMALE,1 IN
WW GRAINGER 01/23/12 01/26/12 $59.81 $59.81 PVC PVC TUBING FOR #107772 $11.68 $2.92 4 6NG67 COUPLING,1 IN
WW GRAINGER 01/23/12 01/26/12 $59.81 $59.81 PVC PVC TUBING FOR #107772 $9.32 $9.32 1 3XWE5 COUPLINGS,1/4 IN BARB, PK
WW GRAINGER 01/23/12 01/26/12 $59.81 $59.81 PVC PVC TUBING FOR #107772 $7.74 $3.87 2 2PMJ6 REDUCER BUSHING,1 X 1/2 IN
WW GRAINGER 01/23/12 01/26/12 $140.72 $140.72 SUBMERSIBLE PUMP
SUBMERSIBLE PUMP FOR
#107772 $140.72 $140.72 1 3YU68 PUMP,SUMP,1/2 HP
FLAIR DESCRIPTIONS
Vendor
Charge
Date
Add
Date
Charge
Amount
Transaction
Description
OFFICE DEPOT 01/28/11 02/01/11 $214.98 TONER
OFFICE DEPOT 01/28/11 02/01/11 $214.98 TONER
OFFICE DEPOT 08/10/11 08/15/11 $409.98 TONER
OFFICE DEPOT 08/10/11 08/15/11 $409.98 TONER
FLAIR VS. LEVEL 3 DESCRIPTIONS
Vendor
Charge
Date
Add
Date
Charge
Amount
Transaction
Description
Level 3
Total Item
Amount
Level 3
Unit Item
Amount
Level 3
Item
Quantity
Level 3
Item Code
Level 3
Item Description
OFFICE DEPOT 01/28/11 02/01/11 $214.98 TONER $169.99 $169.99 1 238734 CAMERA,DIGITAL,M580,BLUE
OFFICE DEPOT 01/28/11 02/01/11 $214.98 TONER $44.99 $44.99 1 286867 2YR PREM MISC REPL. $150
OFFICE DEPOT 08/10/11 08/15/11 $409.98 TONER $349.99 $349.99 1 231588 TV,P2770HD,27",SAMSUNG,BOFFICE DEPOT 08/10/11 08/15/11 $409.98 TONER $59.99 $59.99 1 926946 2YR MISC REPAIR $300-$49
COLLIDING TRANSACTIONS
From Jane Ritter (at BOA):
Two different merchants under the same acquirer (same
merchant services provider) and BIN (Bank Identifier Number)
used the same message ID and date. When the system
received the information and attempted to line it up, it matched
to both- resulting in this issue. This issue occurred due to
coincidence and we will be bringing the issue to the attention
of the acquirer if it occurs again; however, the chances of this
occurring are very slim.
LEVEL 3 DETAIL
Questions?
Please call Michelle Oliver at 850.413.5451 if
you would like the Notes version of this
presentation.
FLORIDA DEPARTMENT OF FINANCIAL
SERVICES
DIVISION OF ACCOUNTING AND AUDITING
Presented to Purchasing Card Administrators
February 17, 2012
MISSION STATEMENT
2
• The mission of the Office of Fiscal Integrity is to detect and investigate the misappropriation or misuse of state assets in a manner that safeguards the interests of the State of Florida and its taxpayers.
INVESTIGATIVE AUTHORITY
17.04 To settle accounts of those entrusted with property, funds or moneys
of this state; and those indebted to the state
• OFI may conduct investigations
• Shall refer violations for state or federal prosecution
17.0401 Confidentiality of information relating to financial investigations
• Information relative to investigations is confidential until the investigation is completed
17.05 Subpoenas; sworn statements; enforcement proceedings
• OFI may issue subpoenas, administer oaths, and examine witnesses
20.121 Department Of Financial Services
• OFI shall function as a Criminal Justice Agency
• May conduct investigations within or outside this state
3
ORIGIN OF CASES
• Internal Referrals From Within DFS
• Inspectors General
• FBI, FDLE, and Local Law Enforcement
• Other Governmental Agencies
• Consumer Complaints
4
FOLLOWING THE MONEY
• Financial Data Will Prove If a Crime Has Been
Committed
• Subpoenaed Bank Statements (with Signature
Cards) Will Reveal Financial Transaction History:
o Other Bank Accounts/Credit Cards Being Used
o All Transactions
• Spreadsheets Are Created to Analyze:
o Timeline of Account Activity
o Who Spent the Funds, and When and Where
They Were Spent
5
FOLLOWING THE MONEY
• Questionable Items Are Researched and Flagged
• Examples of Questionable Transactions:
o Checks Written Payable to Cash
o Payments to Subsidiaries or Possible Shell or
Ghost Companies
• Final Outcome – Financial Analysis Helps Explain
the Crime and is Matched With Analyst's Diagrams
and Charts for Ease of Understanding the Case
6
TYPES OF FRAUDS INVESTIGATED
• Contract and Grant Fraud
• Unclaimed Property Fraud
• Electronic Fund Transfer (EFT) Fraud
• State Travel / Purchasing Card and Payroll Fraud
• Ghost Contractors / Ghost Employees
• Theft of State Property
• Fraud Through Counterfeit Warrants / Fraudulent
Debits to State Treasury Accounts
7
TYPICAL CRIMINAL CHARGES IN OFI CASES
8
• Mail Fraud / Wire Fraud
• Aggravated Identity Theft
• Scheme to Defraud
• Aggravated White-Collar Crime
• Racketeering
• Grand Theft
• Money Laundering
• Official Misconduct
P-Card Investigations
• Suspected fraudulent transactions are referred by
the Statewide P-card Office directly to OFI
• OFI interviews witnesses and uses the CFO’s
subpoena authority to obtain necessary documents
and records from vendors and financial institutions
• Many cases involve receipts that are “lost”, followed
by a fraudulent replacement receipt being created
• Many P-card frauds occur because of a lack of
oversight
9
P-Card Investigations
• Agencies need to do a thorough job of monitoring
• Approvers frequently fail to review the transaction
• Many times, approvers fail to require adequate
descriptions of the items being purchased
• Be wary of generic descriptions (like office supplies)
or no description for items being purchased
• Check a vendor’s website if there is a question about
legitimacy
• Ask yourself whether the vendor name and the
description make sense
10
P-Card Investigations
• The administrator should be running queries and
looking for patterns of possible abuse/misuse
• The approvers need to be knowledgeable AND
monitor that the agency needs what is being
purchased & confirm agency is getting what was
ordered.
• If OFI or any other law enforcement agency
investigates, the administrator and approvers will be
interviewed to determine how the scheme was
perpetrated.
11
