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
exzellia.c.dumas@baml.com
 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.
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.
o
 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.
P-Card Administrators
Quarterly Meeting
February 17, 2012
Office and Educational
Consumables STC
Introduction
• Mark Hernandez
• CPPO, CPPB, FCPM, FCPA, FCCN, FCCM
• Associate Category Manager
• Division of State Purchasing
• Department of Management Services
2
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
3
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.
4
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.
5
Contract Overview
• This STC provides products in some of the following
categories:
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
• Each product category (above) has its own discount associated,
this STC includes three major discount categories:
– Core Items
Non-Core Items
Generic Items
6
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
7
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
8
Pricing Model
• Discount Category and Product Category – What is the
difference?
– Discount Categories – core, non-core, generic
– Product Categories – consumables, equipment, etc.
13
Pricing Model
Discount
Category
Core
Non-Core
Product Category
Toner - HP
Toner - Non HP
Consumables
Folders, Binders & Accessories
Equipment
Breakroom & Cleaning Supplies
IT Peripherals
Consumables
Folders, Binders & Accessories
Toner - Non HP
Equipment
IT Peripherals
Toner - HP
Breakroom & Cleaning Supplies
Paper - Other
Generic Core &
Non-Core
Consumables
Equipment
Folders, Binders & Accessories
Paper - 20# White (Recycled and Virgin)
Toner - Reman
IT Peripherals
Breakroom & Cleaning Supplies
Paper - Other
Toner - Non HP
Gulf Coast %
Office Depot %
Staples % Discount
Discount off List
Discount off List Price
off List Price
Price
35%
37%
38%
32%
42%
38%
66%
64%
60%
70%
66%
62%
30%
53%
48%
40%
60%
52%
34%
55%
45%
66%
55%
60%
70%
55%
62%
32%
25%
36%
30%
40%
36%
34%
40%
44%
35%
40%
60%
32%
55%
70%
35%
52%
60%
79%
36%
75%
79%
63%
32%
55%
71%
61%
77%
62%
77%
81%
54%
44%
77%
80%
54%
75%
76%
62%
76%
72%
49%
52%
72%
58%
14
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.
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/
15 15
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.
16
Contract Benefits: Third-Party Price Auditing
• 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.
17
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.
18
Contract Tips & Tricks
• There are many ways to purchase off of this
contract:
PCard purchases
• Vendor website
•MFMP PCard purchases
•In-store purchases
MFMP purchase orders
Direct vendor sales
(for non-catalog orders
only)
• Punchout catalog
orders
• Non-catalog orders
• Vendor website
•Phone, e-mail
•Sales representative
• Not sure how to make your purchases? Use the Procurement
Decision Tree handout from DMS at
http://dms.MyFlorida.com/mfmp_jobaids
19
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?
20
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?
21
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
22
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.
23
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.
24
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
25
Staples - STC Overview
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
26
26
Order Support for Open A/R Orders
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
27
27
Sample Order Confirmation Email
28
Sample Packing List
29
29
Sample Invoice
30
30
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
31
How to Get Copies of State Term Contract Support Docs
• Contact Staples Government Exclusive Customer Care
Team:
• Phone: 888-298-2206
• Email: governmentteam@staples.com
• 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
32
easily and promptly addressed upon request.
32
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.
33
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?)
34
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
35
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!
36
Product Alternatives - Reporting
• Product alternatives are an opportunity to
access a lower-cost substitute when
purchasing qualifying products through
StaplesAdvantage.com.
State of Florida Agencies
YTD Sales
• 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)
$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
• 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
37
Office Depot
38
Office Depot
39
Office Depot
40
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 Hernandez
Mark.Hernandez@dms.MyFlorida.com
(850) 414-6741
41
Contract Resources
Entity Name
Contact Person
Contact information
State Purchasing
Contract
Manager
Mark Hernandez
Mark.Hernandez@dms.MyFlorida.com
•Gulf Coast Office Melanie Brock
Products
florders@gcop.com
• Office Depot
Lori Miller
national-research@officedepot.com
• Staples
Ken Johnson
ken.johnson@staples.com
MFMP
Buyer Help
BuyerHelp@MyFloridaMarketPlace.com
(866) 352-3776
State Purchasing
Customer Service
PurchasingCustomerService@dms.MyFlorida.com
(850) 488-8440
http://dms.MyFlorida.com/stc/office_consumables
42
Team Member
E-Mail
Phone Number
Contract Manager Mark.Hernandez@dms.MyFlorida.com
(850) 414-6741
MFMP BuyerHelp
BuyerHelp@MyFloridaMarketPlace.com
(866) 352-3776
MFMP F&A
Analyst
Anne.Rabon@dms.MyFlorida.com
(850) 294-0739
MFMP Operations Danielle.Kosberg@dms.MyFlorida.com
Manager
State Purchasing
PurchasingCustomerService@dms.MyFlorida.com
(850) 488-7809
(850) 488-8440
43
How to use the
LEVEL 3 DETAIL MRE QUERIES
LEVEL 3 DETAIL MRE QUERIES
LEVEL 3 DETAIL BY ADD DATE
LEVEL 3 DETAIL BY ADD DATE
Vendor
Charge
Date
Add
Date
Charge Transaction Transaction
Amount
Amount Description
ADVANCE AUTO PARTS
#9312
AMAZON MKTPLACE PMTS
AMAZON MKTPLACE PMTS
AMAZON MKTPLACE PMTS
AMAZON MKTPLACE PMTS
AMAZON MKTPLACE PMTS
01/23/12
01/24/12
01/24/12
01/24/12
01/24/12
01/24/12
01/26/12
01/26/12
01/26/12
01/26/12
01/26/12
01/26/12
$23.96
$18.99
$18.99
$22.99
$22.99
$228.99
$23.96
$3.99
$15.00
$3.99
$19.00
$3.99
AMAZON MKTPLACE PMTS
OFFICE DEPOT #1165
01/24/12
01/23/12
01/26/12
01/26/12
$228.99
$13.00
$225.00
$13.00
OREILLY AUTO 00022236
01/24/12
01/26/12
$140.98
$140.98
OREILLY AUTO 00022236
01/24/12
01/26/12
$140.98
$140.98
OREILLY AUTO 00022236
WW GRAINGER
WW GRAINGER
WW GRAINGER
WW GRAINGER
WW GRAINGER
01/24/12
01/23/12
01/23/12
01/23/12
01/23/12
01/23/12
01/26/12
01/26/12
01/26/12
01/26/12
01/26/12
01/26/12
$140.98
$59.81
$59.81
$59.81
$59.81
$59.81
$140.98
$59.81
$59.81
$59.81
$59.81
$59.81
WW GRAINGER
01/23/12
01/26/12
$140.72
$140.72
GREASE
SHIPPING
BOOK FRESHWATER
SHIPPING
BOOK SPHAERIACEA
SHIPPING
Commodity
Description
FOR MISC EQUIPMENT
SHIPPING
DECAPOD CRUSTACEANS
SHIPPING
CLAMS
SHIPPING
FRESHWATER CORBICULID
BOOK BIOLOGY OF
& SPHAERILD CLAMS
OFFICE SUPPLIES
MOUSE
DISC BRAKES (2 EA.), FWC
ROTORS (2 EA.),
#114178
DISC BRAKES (2 EA.), FWC
ROTORS (2 EA.),
#114178
DISC BRAKES (2 EA.), FWC
ROTORS (2 EA.),
#114178
PVC
PVC TUBING FOR #107772
PVC
PVC TUBING FOR #107772
PVC
PVC TUBING FOR #107772
PVC
PVC TUBING FOR #107772
PVC
PVC TUBING FOR #107772
SUBMERSIBLE PUMP FOR
SUBMERSIBLE PUMP #107772
Level 3 Level 3 Level 3
Total Item Unit Item Item
Amount Amount Quantity
Level 3 Level 3
Item Code Item Description
$23.96
$15.00
$15.00
$19.00
$19.00
$225.00
$5.99
$15.00
$15.00
$19.00
$19.00
$225.00
4
1
1
1
1
1
07070036
B0058V4O3A
B0058V4O3A
B000WWWIII
B000WWWIII
0867271582
$225.00
$13.00
$225.00
$13.00
1
1
0867271582 BIOLOGY OF FRESHWATER CORB
277398 MOUSEPAD/WRISTREST,CRYST
$64.99
$64.99
1
WAG-MX1069 DISC PAD SET
$55.99
$55.99
1
WAG-MX1068 DISC PAD SET
$20.00
$19.76
$11.31
$11.68
$9.32
$7.74
$10.00
$2.47
$3.77
$2.92
$9.32
$3.87
2
8
3
4
1
2
$140.72
$140.72
1
LAB-ROTOR-C
2PMJ5
6NG78
6NG67
3XWE5
2PMJ6
GREASE-RED & TACKY 14 OZ L
THE FRESHWATER DECAPOD CRU
THE FRESHWATER DECAPOD CRU
SPHAERIACEAN CLAMS OF KANS
SPHAERIACEAN CLAMS OF KANS
BIOLOGY OF FRESHWATER CORB
CAR/TURNED
REDUCER BUSHING,3/4 X 1/2
ADAPTER,FEMALE,1 IN
COUPLING,1 IN
COUPLINGS,1/4 IN BARB, PK
REDUCER BUSHING,1 X 1/2 IN
3YU68 PUMP,SUMP,1/2 HP
FLAIR DESCRIPTIONS
Vendor
OFFICE DEPOT
OFFICE DEPOT
OFFICE DEPOT
OFFICE DEPOT
Charge
Date
01/28/11
01/28/11
08/10/11
08/10/11
Add
Date
02/01/11
02/01/11
08/15/11
08/15/11
Charge Transaction
Amount Description
$214.98 TONER
$214.98 TONER
$409.98 TONER
$409.98 TONER
FLAIR VS. LEVEL 3 DESCRIPTIONS
Vendor
OFFICE DEPOT
OFFICE DEPOT
OFFICE DEPOT
OFFICE DEPOT
Charge
Date
01/28/11
01/28/11
08/10/11
08/10/11
Add
Date
02/01/11
02/01/11
08/15/11
08/15/11
Charge Transaction
Amount Description
$214.98 TONER
$214.98 TONER
$409.98 TONER
$409.98 TONER
Level 3
Level 3 Level 3
Total Item Unit Item
Item
Amount Amount Quantity
$169.99
$169.99
1
$44.99
$44.99
1
$349.99
$349.99
1
$59.99
$59.99
1
Level 3 Level 3
Item Code Item Description
238734 CAMERA,DIGITAL,M580,BLUE
286867 2YR PREM MISC REPL. $150
231588 TV,P2770HD,27",SAMSUNG,B
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
• 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.
2
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
•
•
•
•
•
•
•
•
Mail Fraud / Wire Fraud
Aggravated Identity Theft
Scheme to Defraud
Aggravated White-Collar Crime
Racketeering
Grand Theft
Money Laundering
Official Misconduct
8
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
CONTACT:
Steve Horn
steven.horn@myfloridacfo.com
850-413-5553
200 East Gaines Street
Tallahassee, FL 32399