The State's General Fund grows due to P-Card usage
We’re excited to let you know that the Department of Administrative Services (DAS), in partnership with the Office of the State Comptroller (OSC), accepted a rebate of $1,438,341.70 from JPMorgan Chase, stemming from the State’s use of P-Card services issued by the bank for the last calendar year. This is the sixth year in a row, of the 23 years of this program, that the State has met the $1 million mark.
The State of Connecticut has a contract for Purchasing Card (P-Card) Services with JPMorgan Chase, and part of the agreement includes a rebate that goes to the State’s General Fund. The contract also has this provision for participating municipalities, municipal schools, and non-profits throughout Connecticut.
The total rebate earned during the 2020 calendar year is $1,438,341.70, with a deposit into the General Fund of $1,051,966.52. The balance of $386,375.17 was issued to eligible Connecticut entities piggy-backing off our contract as per our rebate policy.
The State of Connecticut P-Card Program was established in 1998 to issue credit cards to state employees as a payment tool for emergency purchases. It quickly proved to be a primary way to do business with greater efficiency and the only way to effectively purchase travel services and process internet transactions.
The P-Card Program was opened up to client entities in 2004 allowing municipalities, schools and non-profits to piggyback off the State’s contract enabling them with the same efficiencies and a means to earn money back on purchases they would have otherwise purchased with a purchase order or petty cash.
In 2020, remote working conditions brought about technology-based modifications to our process with JPMorgan and seven new Client Entities implemented our program with greater efficiencies. We are keeping these process improvements, which include the acceptance of electronic signatures and scanned documents.
Use of the state’s P-Card and JPMorgan’s online PaymentNet system automates transaction data and all maintenance of cards and cardholder limits are online and accessible through secured permissions for authorized employees. The P-Card Program is designed to be paperless with options for cardholders to upload receipts and reconcile transactions.
Currently, 73 executive branch state agencies, 5 state universities, 31 municipalities, 18 municipal public schools, 26 non-profits, as well as all the Connecticut community colleges use the P-Card program, and the list is growing as client entities learn more about the benefits of the program. This is just another example of a program that might seem small but is saving the State, and our residents, a significant amount of money because we’re paying attention to these details every day.
If your organization is interested, please email the P-Card team at DAS.PCardAdmin@CT.gov.
Thank you, and we look forward to growing our cost-savings programs that benefit communities throughout the State in the future!