2011 Annual Report - West Virginia State Auditor's Office

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Purchasing Card DivisionGlen B. Gainer III, West Virginia State AuditorThe Purchasing Card Division is staffed with 22 employees including two Certified Public Accountants(CPA), six Certified Purchasing Card Professionals (CPCP), and two Certified Fraud Examiners (CFE).Purchasing Card ProgramThe Purchasing Card is the preferred method ofpayment for the procurement of eligible goodsand services. It offers agencies, boards andcommissions an efficient method for streamliningthe payment process. The payment process isstreamlined by reducing the volume of accountspayable transactions and the associatedadministrative costs. Individual vendor invoicesare eliminated by consolidating multiple vendorpayments into one monthly payment to thecharge card issuer. State vendors are paid directlyby the card issuer within three (3) business days.In order to participate in the State Program,agencies are required to have sufficient internalcontrols in place to ensure compliance withapplicable laws, rules and regulations, P-CardPolicies and Procedures, and other governinginstruments. The Purchasing Card Divisionevaluates the effectiveness of these internalcontrols through program evaluations andmonitoring.Employees of the State of West Virginia mayobtain a purchasing card by contacting thepurchasing card coordinator within their agency.Individuals must be trained and agree to followPurchasing Card Policies and Procedures before apurchasing card will be issued.For fiscal year 2011, the Purchasing Card Programprocessed in excess of 650,000 transactionstotaling approximately $407,000,000 with anaverage transaction amount of $626.33.Studies obtained by the National Association ofPurchasing Card Professionals estimate thetransactional cost of the purchase order andpayment process range from $50 to $250.By utilizing the purchasing card as a paymentmechanism, the efficiencies provided result insavings ranging from 55% to 90% of thistransactional cost. Using these estimates, thePurchasing Card Program for fiscal year 2011netted the State of West Virginia between $17.9million and $146.2 million in cost avoidancesavings. The purchasing card provides additionalsavings beyond the cost avoidance savingspreviously discussed. These savings are from thefollowing areas:Discounts on the cost of goods or servicesprovided to the State directly attributable toprompt payment with the purchasing card.In past years, the State received a higher bondrating which saved additional monies becauseone of the main considerations to re-evaluatethe State of West Virginia to a higher bondstatus was how obligations are paid in a timelymanner. Specifically mentioned was the use ofthe State’s Purchasing Card.The State realized additional savings in thetimely delivery of goods and services, directlyattributed to prompt payment from the use ofthe purchasing card.2011 ANNUAL REPORT WVSAO.GOV Page 20
Purchasing Card DivisionGlen B. Gainer III, West Virginia State AuditorThe use of the purchasing card has allowed the State of West Virginia to become a better businesspartner. With its cost avoidance and prompt payment efficiencies, it is receiving additional interest fromvendors desiring to transact business with the State. This allows the State of West Virginia to be morecompetitive in selecting business partners, most certainly allowing the State to be more selective whenconsidering cost of goods or services and the timely delivery of such goods.For the Purchasing Card Program to continue to maintain its high acclaim and cost avoidance savings, wemust continue to have aggressive and ongoing monitoring in addition to appropriate individual agencyrequirements.In order to ensure proper monitoring and enhance the internal controls, the program utilizes a widevariety of resources, technology and participant requirements, including but not limited to the following:The Program continues to perform evaluations of agency P-Card program internal controls. It alsoutilizes more than 25 standard reports for the monitoring of agency transactions. These standardreports are also available to agencies so they can make use of them in their own program monitoringand oversight processes.Each Agency Coordinator receives credit usage, sales tax, transaction decline and account changereports on a daily basis for internal monitoring. In conjunction with Agency Coordinators, thePurchasing Card Program completes, on a biennial basis, a utilization and credit analysis of eachagency. This analysis is used to determine that each cardholder’s credit and transaction limits are inline with their individual job responsibilities and requirements to reduce the potential risk of fraud forthe State of West Virginia.The State Auditor’s Office Purchasing Card Division continues to monitor and enhance the web-basedtraining module. This type of training allows a much more efficient and comprehensive trainingprogram which not only includes Purchasing Card Policies and Procedures, but also topics such asethics and budget responsibility that have not been readily available to state employees in the past.Purchasing Card Coordinators from all agencies receive required annual training that includes onehour of ethics instruction. Applicants who become new cardholders must take the required trainingand be successfully tested before a purchasing card will be issued.All current cardholders are required to complete three (3) hours of refresher training every two (2)years. This training will include one (1) hour of ethics training, Purchasing Card Policies andProcedures, travel guidelines, and the use of purchasing cards for emergency response. All purchasingcard training must be approved by the State Auditor.2011 ANNUAL REPORT WVSAO.GOV Page 21
Page 1 and 2: AnnualReport2011WEST VIRGINIA STATE
Page 3 and 4: West Virginia State Auditor's Offic
Page 5 and 6: Financial Services DivisionGlen B.
Page 9: Financial Services DivisionGlen B.
Page 20 and 21: Information Systems and Technology
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Page 26 and 27: Purchasing Card DivisionGlen B. Gai
Page 32 and 33: Chief Inspector DivisionGlen B. Gai
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Page 50 and 51: County Collections DivisionGlen B.
Page 58 and 59: Securities DivisionGlen B. Gainer I
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Page 62 and 63: Communications DivisionGlen B. Gain
Page 64 and 65: Communications DivisionDuring FY 20
Page 66 and 67: Training ServicesGlen B. Gainer III
Page 68 and 69: Training ServicesGlen B. Gainer III
Page 70 and 71: GROSS PAY BY DEPARTMENT12/31/2011 1
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SALARIES GREATER THAN 80,000 (EXCLU
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AGENCY SALARY NAME TITLEDEPT OF HEA
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AGENCY SALARY NAME TITLE$110,184.00
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AGENCY SALARY NAME TITLEEDUCATIONAL
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AGENCY SALARY NAME TITLEINSURANCE C
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AGENCY SALARY NAME TITLESEC OF HEAL
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HIGHEREDUCATIONSALARIESGREATER THAN
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AGENCY SALARY NAME TITLEEASTERN WV
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AGENCY SALARY NAME TITLEMOUNTWEST C
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AGENCY SALARY NAME TITLEWV HIGHER E
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2011 Annual Report - West Virginia State Auditor's Office

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