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If you Have to Spend Money…

why not Earn Money too?

By Catherine Zadroga| Purchasing/Accounts Payable Specialist, Owen J. Roberts SD | PASBO Procurement Committee
Beth Polinski | Business Coordinator, Owen J. Roberts SD | PASBO Accounting Committee

rocurement card programs can be an effective cash are issued, which translates into time and money savings
management and purchasing tool for virtually (less check stock, fewer envelopes for mailing, lower
Pany school organization. You might be asking postage costs, less time reconciling bank accounts
yourself, things are going just fine, so why would I want monthly, lower bank fees, etc.).
to adopt a procurement card program in my organization?
Perhaps they are, but aren’t we always looking for ways • We can all agree that manual processes are often costly
to improve efficiencies, maximize cash management and by their very nature.
reduce costs? Of course we are! Here are a few reasons for • Back to that $3.4 million annual spend…..when you
your organization to consider adopting a procurement card use the cards to pay your Accounts Payable invoices,
program based on actual results experienced by the Owen J. the cards are also buying you cash float. Since you
Roberts School District. are delaying the payment due to satisfy the credit card
company for another billing cycle, your funds remain
• Rebates! Our annual rebates have been exceeding invested longer. And thanks to an increasing financial
$50,000. Not too shabby, right? Our purchasing market, invested funds are yielding higher interest rates.
volume on the cards averages about $3.4 million These earnings can really add up. One rule of thumb we
annually. Using the EasyProcure program, our rebates always adhere to in our district, if a vendor charges a
are calculated on our district’s total spend, as well as fee to accept payment via p-card, they will not be paid
the aggregated spend of the program’s participants. via p-card. We are truly spending nothing to use these
More EasyProcure participants = increased rebates! cards, but we are earning in excess of $50,000 each
• $3.4 million annual spend sounds like a lot, and it is. year thanks to them. Who among us does not like pure
But this also speaks to the flexibility of the use of the profit?
card. Procurement cards are accepted by vendors who • Early and fast payments often entitle districts to pre-
already accept Visa. Not only does using the cards pay, early pay, and early bird discounts.
make conference registrations, travel registrations and • Tax considerations. IRS Form W-9 is not required
online purchasing easier and faster, but the program to be collected for direct procurement purchases.
also allows for payment of general Accounts Payable However, keep in mind that if you are using your
invoices. All of this increases efficiencies and payment procurement program to satisfy your Accounts Payable
becomes more streamlined as far invoice liability, it is good measure to continue to
fewer paper checks ensure you have a current Form W-9 on file for each
vendor. Additionally, Form 1099 is not required to
be issued to qualifying vendors paid by procurement
card. However, you are not relieved of the
responsibility to issue a Form 1099 for
those general Accounts Payable invoice
vendors whose payment you are
passing through the procurement.

5 PASBO Report