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Regular-General Government # 25.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Receive and file an addendum to the Department of Financial Services annual report on purchase card transactions for fiscal year 2017-18. (No general fund impact) (Newens/Pistochini) |
| Recommended Action |
| Receive and file an addendum to the Department of Financial Services annual report on purchase card transactions for fiscal year 2017-18. |
| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
The Board of Supervisors requested additional information about the County's purchase card program during the September 25, 2018 Board meeting, presented in Attachment D. The purchase card program is offered by the State of California and is known as the Cal-Card.
Enclosed are additional documents concerning’s the County’s participation in the Cal-Card program during the period of July 1, 2017 through June 30, 2018. These documents are summarized as follows:
Monthly Review & Approval Process
Attachment A summarizes how the Cal-Card program is structured and the segregation of duties the County has established to ensure multiple people and departments/divisions are involved in the review and approval of Cal-Card transactions. Department heads must approve the issuance of new Cal-Cards to their staff. The Cal-Card user’s respective manager must review and sign-off all of the user’s transactions on a monthly basis. The department’s fiscal staff is also involved in the review of Cal-Card transactions by performing reconciliation and initiating accounting entries. The Department of Financial Services' (DFS) General Accounting Division, due to timing of prompt payment requirements, reviews Cal-Card expenses after making final payment to the credit card issuer, US Bank. Since mid-September 2018, the DFS’ Procurement Division provides overall program administration and reviews transactions and aggregate spend data at a Countywide level to monitor compliance with County policies.
Transaction History by Merchant Category Code
Attachment B summarizes the top 25 merchant categories the County spent money during last fiscal year. Each vendor a Cal-Card user purchases from is assigned merchant category code by the vendor’s payment processor. The County spent money in 161 categories last fiscal year.The largest 25 categories represent approximately 73% of the total spend.
Transaction History by Location
Attachment C summarizes where the County’s Cal-Card users spent money. The County is able to obtain location data by state. Over 56% was spent in California alone. Most of the transactions occurring in Washington are due to business conducted with Amazon. The Procurement Division implemented a new countywide contract effective September 2018 with Amazon to improve oversight and control of Amazon purchases. Texas is the third largest spend location due to airfare purchases from airline companies headquartered in Texas. |
| Collaborations (including Board advisory groups and external partner agencies) |
| None. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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