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Special Situations and Emergency Use of Cards
NSAA/NASC Joint Middle Management Conference
April 12, 2006
Agenda
• What constitutes an “Emergency” or Disaster?• Using Purchasing Cards to prepare• After the event • Case Studies and Lessons Learned
• Citizens or employees stranded, harmed or at risk of being harmed
• Infrastructure fails• Unforeseeable or• Foreseeable but
unavoidable
• Military or terrorist attack
• Natural disaster or weather – hurricane, tornado, earthquake, tsunami, forest fire
• Accident – plane crash, oil spill
• Infrastructure breakdown – blackout, water supply failure, public services disruption“Every disaster is a
crisis but not every crisis is a disaster.”
Emergency and Disaster Defined
Emergency Preparation
• Develop a written plan• Define your response team• Prepare response kits• Be Prepared – the 5 P’s:
“Prior Planning Prevents Poor Performance”
Advance Preparation
• Some organizations require Executive Order• Alert Bank of impending situation• Activate Cards or change controls as needed• Pre-purchase as much as possible• Staff emergency centers, begin staging for relief
and recovery• Work with Bank to increase corporate credit limit
as needed
• Current list of p-cards• Review controls
• Transactions limits• Cycle Limits• Merchant category controls
• Make sure those who need cards, have cards• Plan for distributing cards, if necessary• Plan for record keeping and accounting
Advance Preparation
Differences in UsageNormal Purchases Disaster Response
98% transactions under $2,500 $25,000 - $300,000
20 state, 200 local agencies - US$515 MM per year
One agency spent $7 million in two weeks
Local, contracted vendors Small, unknown businesses, out-of-state suppliers, liquor stores, hotels
Office supplies, equipment Generators, satellite phones, bulk fuel, rented trailers, storage, chainsaws
• Unlimited parameters• Batch changes or card by card• Customer Support 24-7 • Audit-ability for post-emergency spend analysis,
preparation for future emergencies• Detailed reporting assist in processing state and
federal grant applications, insurance claims• On the spot payment• Flexibility to use non-traditional or out-of-state
merchants• Last minute travel• Policy overrides: “Buy now, explain later”
Using Pcards
Post Emergency Card Uses• Restock shelters• Remove debris• Pull out trees• Restore power• Repair roads and bridges• Provide for basic needs for
employees and citizens
Post crisis• Communicate with bank to return controls to
normal status• Review transactions• Begin FEMA reimbursement practices• Review Auditor requirements• Collect any cards not needed
Lessons Learned• Beware of opportunistic thieves• Audit transactions after the fact• Don’t forget to change card parameters back to
normal• Be aware that unusual spending activity triggers
security watches, so work with your bank• COOP plan
Case Study
City of Port St. Lucie, Florida
2004 Hurricane season
•25 cards issued before the storm
•Decreased cards slowly after 1st week
•Today only have 6 active emergency cards
•471 transactions
•$2 million spent
Case StudyHillsborough County FloridaGeneral preparation• Inefficient payment methods delayed preparation• No need for cash when using Pcards• Multiple transaction uses• Able to use non-traditional vendors• Accountability
Summary
• Be part of the plan• Develop process and procedures• Communicate with bank provider• Communicate with users• Know FEMA and Insurance requirements• Review, evaluate, and improve
Jeri WinkleblackVice PresidentAccount ManagerCard Payment SolutionsGlobal Treasury Services
Tel: [email protected]
Bank of America, N.A.315 South Calhoun Street, Tallahassee, FL 32301
