NAPCP - CPCP Certification exam with correct answers 2024.

CPCP - ANSWER-Certified Purchasing Card Professional PCPCC - ANSWER-Purchasing Card Professional Certification Council grants CPCP designation NAPCP - ANSWER-National Association of Purchasing Card Professional grants CPCP designation in conjunction with PCPCC Have exclusive and sole property of CPCP credential initials CPCP Code of Ethics - ANSWER-1. Maintain integrity of the CPCP exam 2. Comply with the law in all activities related to P-Card Program, Influence workplace practices, & Report illegal behavior 3. Maintain ethical leadership by demonstrating promoting highest standards of honesty, confidentiality, and integrity. Question practices & procedures when necessary 4. Build trust by avoiding conflicts of interest, unethical relationships, improper actions and/or indiscreet communications 5. Manage confidential and Proprietary information with due care and proper consideration for ethical, legal, and regulatory ramifications 6. Understand and Respect policies and regulations pf my employer and the card provider organization 7. Develop and Maintain a professional level of competence and credibility through continuing ed. and professional certification through the CPCP program 8. Act as a mentor by contributing to the body of knowledge and growth of the Purchasing Card profession What would best prevent fraud in a P-Card Program - ANSWER-Establishing a system of checks and balances What is the best first step in the development of a P-Card program? - ANSWER-Creating a business case What is the main objective of the P-Card RFP process? - ANSWER-To select a provider objectively The primary goal of a P-card program is to? - ANSWER-Streamline the process for acquiring low-cost goods Reducing or eliminating cash funds through P-Card use results in? - ANSWER-A greater capture of transaction data What is a best practice concerning MCC restrictions? - ANSWER-Utilize some standard profiles based on card usage The primary customers of merchant acquirers are? - ANSWER-Suppliers of goods and services Who is a merchant acquirer? - ANSWER-A bank or other contracted party that processes supplier card transactions. Enroll suppliers in the card acceptance process and implement equipment and software solutions related to this purpose. They facilitate payment flow, including payments to suppliers. They are the supplier's bank What is another name for merchant? - ANSWER-Supplier What is a merchant discount fee? - ANSWER-A fee paid by a supplier (merchant) to a bank or other contracted party for services relate to the processing of the merchant's card transactions What are the two types of card payment systems? - ANSWER-Four-Party Payment System and Three-Party Payment System What is a four-party payment system? - ANSWER-merchant discount fee includes interchange-a fee paid by a merchant acquirer to the issuing bank(card issuer), plus additional clearing and settling fees. It compensates the issuer for the time after settlement with the acquiring bank/merchant and before it recoups the settlement value from the end-user. It is a source of revenue for the issuers. Ex. Visa and Mastercard What is a three-party payment system? - ANSWER-No interchange component but the merchant still pays a merchant discount fee in conjunction with card acceptance. Ex. traditional Am. Express Model What are the steps in the traditional procure-to-pay process? - ANSWER-1. Process a requisition 2. Process a Purchase Order 3. Process a Invoice 4. Process a Check for payment What is the estimated process cost of the traditional process? - ANSWER-$50 to $200 Are the process cost the same for both low value and high value transactions using a traditional procure-to-pay process? - ANSWER-Yes How do p-cards simplify the procure-to-pay process? - ANSWER-1. Streamlines the process 2. Procure goods and services in a timely manner 3. Reduce transaction costs 4. Track expenses 5. Take advantage of Supplier Discounts 6. Reduce or Redirect Purchasing Staff and/or AP Staff 7. Reduce or Eliminate Petty Cash How do p-cards benefit suppliers (merchants) - ANSWER-1. Cost reductions by eliminating invoice creation, handling and mailing, depositing payments, and collection activities 2. Funds deposited electronically 3. Faster receipt of payments and improved cash flow 4. Increased sales 5. Customer satisfaction 6. Staff reductions and/or redirection in AR What is an Interchange Fee? - ANSWER-Also called a swipe fee. Fee charged by banks to the merchant who processes a credit card or debit card payment. The purpose of the fee is to cover the costs associated with accepting, processing and authorizing card transactions. Paid by suppliers (merchants) to the merchant acquirer. What is a surcharge fee? - ANSWER-Also called a checkout fee. An additional fee that a merchant adds to a consumer's bill when he or she uses a card for payment. Paid by consumers to the merchant What did the Durbin amendment do? - ANSWER-The Durbin amendment is part of the 2010 Dodd-Frank law, which sharply lowered debit card interchange fees — charges that stores pay banks when a customer makes a purchase using debit cards What is the Durbin Amendment? - ANSWER-A federal measure called the Durbin Amendment introduced limits on transaction fees collected when debit card purchases are made. Passed in 2011. Dodd-Frank Wall Street Reform and Consumer Protection Act - ANSWER-Dodd-Frank was passed in 2010 in order to protect consumers from the unfair and deceptive practices and products that led to the 2008 crisis; give regulators the tools to ensure that no Wall Street firm grows too large, complex, or risky so as to threaten the global economy; create transparency in previously opaque President Obama's Wall Street reform law created an independent agency to set and enforce clear, consistent rules for the financial marketplace. The Consumer Financial Protection Bureau (CFPB) is setting clear rules of the road and will ensure that financial firms are held to high standards. How long is CPCP certification recognized? - ANSWER-3 years After three years how do I maintain certification? - ANSWER-1. Retake CPCP exam 2. Meet alternative requirements that are in effect at the time to retain certification Can certification be revoked and Why? - ANSWER-Yes. Why? 1. Falsification of an application 2. Breach of existing ethical standards of professional practice 3. Misrepresentation of certification status Can revocation be appealed and how? - ANSWER-Yes. Submit an appeal in writing to the appeals committee of the PCPCC. P-Card Program Implementation End-User Organizations - ANSWER-1. Support from Senior Mgmt 2.Assemble a research team composed of Purchasing, A/P, IT, Audit, Finance, etc. 3. Organization should re-engineer its procure-to-pay processes to reap the greatest benefits 4. Develop a Business Case-illustrate the anticipated savings and benefits, outline potential challenges, risks and mitigating controls, identify the required resources, propose a recommendation 5. Develop a P-Card Model-creating program goals & metrics, identify targeted transactions, define program roles & responsibilities, document program requirements(IT and interfaces to the GL), design the control environment 6. Evaluate overall purchasing activities to determine how and when to use p-cards 7. Determine the best procure-to-pay process for different expense/purchase types 8. Create a pilot program to test the p-card model. Provides the foundation from which to build a long-term program, revealing gaps and issues that must be addressed prior to full program rollout. 9. Internal Communication Strategy 10 Dedicated resource to manage and support the program Supplier P-Card Acceptance Implementation - ANSWER-Re-engineer processes to maximize the benefits of card acceptance 1. Gain an understanding of the p-card process and its opportunities 2. Select an acquiring partner with expertise in business-to-business (B2B) payments 3.Implement appropriate processes and technology 4. Work with customers to establish standard policies and procedures Who implemented the 1st commercial card payment system? - ANSWER-A group of major airlines in 1937. Used primarily as a central billing approach for air travel. Similar to ghost cards Liability Waivers - ANSWER-Offered to mitigate the concerns with inappropriate card usage caused the distribution of Corporate cards to increase. Waivers, typically joint-and several-liability, evolved to the individual liability-individual pay option popular today. Who implemented the 1st p-card? - ANSWER-Late 80's a card was develop for the Federal GSA for the purchase of non T & E items such as MRO and business supplies. Introduced as central liability/central pay payment vehicles. This distinguishes P-Cards from Commercial Cards. What is the mission of NAPCP? - ANSWER-Membership based organization committed to advancing Commercial and Payment professional and industry practices worldwide. Ghost Card - ANSWER-A variation on the purchasing card that does not involve the use of an actual card. With this system, a card number is given to a specific vendor and is then used for electronic purchasing and billing purposes. Also known as a virtual card. Corporate Card - ANSWER-Companies may provide their employees with corporate cards for the payment of approved, business-related expenses, most often travel-related (T & E). One Card - ANSWER-A single charge card that combines procurement (goods/services) with travel and entertainment (T & E) and in some cases fleet charges Fleet Card - ANSWER-A card product used to pay for fuel, maintenance, repair and related expenses on company vehicles Prepaid Card - ANSWER-A debit-based card, allowing the user to pay now versus later, as the card transaction amounts are deducted from a funded account, for example a Payroll Card loaded with an employee's earned wages Declining Balance Card - ANSWER-A card that typically does not require a pre-funded account, a spending limit, and/or expiration date are established up-front, giving it a specific "shelf life" to accommodate a specific project budge or spend allowance; for example a meeting card. Business Card - ANSWER-A credit card targeted for smaller businesses in lieu of a p-card, commonly used for a variety of expense types (ex. goods, services, travel, etc.). Organization maybe allowed to carry a balance Electronic Payables - ANSWER-Electronic payment, generally involving a supplier invoice (electronic or paper) and end-user approval process, followed by a behind-the-scenes payment to the supplier through the card network; these solutions are also known as electronic accounts payable, automated payables, e-payables, push payments, straight-through payments, buyer-initiated payments, single-use accounts and electronic invoice presentment and payment Convenience Checks - ANSWER-A payment tool with characteristics resembling those of a common checking account, but they settle against a P-Card account. Level 1 Data - ANSWER-Standard- 1. Date 2. Supplier Name 3. Transaction Amount Level 2 Data - ANSWER-Variable- 1. Date 2. Supplier Name 3. Transaction Amount 4. Sales Tax 5. Customer Defined Code Level 3 Data - ANSWER-Detailed Data- 1. Date 2. Supplier Name 3. Transaction Amount 4. Sales Tax 5. Customer Defined Code 6. Line Item Detail Issuers - ANSWER-Work directly with end-users to implement and grow programs, issue cards and invoice posted P-Card Transactions. Uses the services of the networks and processors to facilitate card issuance, authorize transactions and provide data. Banks are issuers Networks aka Associations - ANSWER-Facilitates the movement of transactional data between the issuer and merchant acquirer and set the rules pertaining to card acceptance by suppliers. Organizations in this role include Visa, Mastercard, and Am. Express. Am. Express also assumes the role as issuer and merchant acquirer. Processors - ANSWER-Provide various services to card issuers and merchant acquirers, which may include card production, statement printing, authorization and data delivery Are balances carried with P-Cards? - ANSWER-No, the balance is paid in full each month Who assumes liability with a P-card program? - ANSWER-The end-users organization assumes liability and makes payment. End-users are - ANSWER-the companies, government agencies, universities/colleges, etc that provide P-Cards to their employees. P-Card program managers(PM), program administrator(PA), and/or site coordinator (SC) are - ANSWER-the primary roles that manage a P-Card program within an end-users organization. Cardholders are - ANSWER-those who initiate P-Card transactions on behalf of their employer, the end-user organization. Suppliers are - ANSWER-those who accept P-Cards as payment for goods and services. Issuers are - ANSWER-those who work directly with end-users to implement and grow programs, issue cards, and invoice posted P-Card transactions. True or False: The issuer uses the services of the networks and processors to faciliate card issuance, authorize transactions, and provide date. Many financial institutions are not issuers. Issuers are sometimes called card "providers" - ANSWER-False: Many financial institutions are issuers. USBANK and JP Morgan Chase are examples. Merchant acquirers are - ANSWER-those who enroll suppliers in the card acceptance process and implement equipment and software solutions related to this purpose. They facilitate payment flow including payment to suppliers. What is also known as a supplier's bank? - ANSWER-Merchant acquirers What is also known as card providers? - ANSWER-Issuers What is a purchasing card? - ANSWER-It is a type of commercial credit card used by organizations for the payment of goods and services. Why were P-Cards created? - ANSWER-A financial re-engineering tool to streamline accounts payable processes, typically replacing paper checks as the payment method for low-value transactions. Which is not a benefit of using the P-Card? a. procure in a timely manner b. take advantage of supplier discounts c. convenience fee d. reduce transaction costs e. track expenses - ANSWER-c. convenience fee Networks are - ANSWER-used to facilitate the movement of transactional data between the issuer and the merchant acquirer and set the rules pertaining to suppliers' card acceptance. What organizations would be considered a network? - ANSWER-Visa, MasterCard, and American Express What are also known as associations? - ANSWER-Networks Processors are - ANSWER-those who provide various services to card issuers and merchants acquirers, which may include card production, statement printing, authorization and data delivery. What is Procure-to-Pay Process? a. Pay for what you buy online or in-person; obtain a receipt b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list with product; no invoice received c. Suppliers fulfill cardholder order, charge card, ships product; invoice received d. Suppliers send invoice, charge card, fulfill order, ship product; packing list received - ANSWER-b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list with product; no invoice received Benefit for using the Procure-to-Pay process: a. supplier receive payment within 2-3 days versus 30+ days b. receive a payment voucher guaranteeing payment c. cardholders have their product before they have to pay d. The process eliminates all paperwork - ANSWER-a. supplier receive payment within 2-3 days versus 30+ days Who provides an invoice (central bill) to the end-user organization reflecting the total of each P0Card account plus a grand total of what is owed for the cycle? a. Suppliers b. Processors c. Networks d. Merchant acquirers e. Issuers - ANSWER-e. Issuers Corporate liability or organization liability are terms for ______________________________. - ANSWER-Liability for payment. Who neither owes the card issuer nor makes payments? a. Cardholders b. Suppliers c. End-users d. P-Card manager - ANSWER-a. Cardholders Each month, individual cardholder statements should show a ___________________ balance. a. full b. zero c. 1/2 of month total - ANSWER-b. zero Does the organization carry a balance month to month? - ANSWER-No The P-Card Billing Process includes the following entries but one: a. Cardholder b. End-User Organization c. Bank d. Card Issuer e. General Ledger - ANSWER-c. Bank To minimize the risk of fraud and misuse, what can the end-user organization do? List 4 items. - ANSWER-a. Dictate policies and procedures related to card usage b. transaction documentation c. variety of controls d. spend and velocity limits What are the 3 types of purchasing card account types? - ANSWER-a. Traditional P-Card (plastic or non-plastic) b. Department Card c. Ghost Card/Ghost Account What is a department card? - ANSWER-It is not a common card any more due to accountability can be difficult and merchant cannot authenticate the cardholder. It was created to increase purchasing flexibility while restricting the number of cards issued. What is a ghost card? - ANSWER-A card account issued to a specific supplier or supplier type. Generally the card's account number is not know by the employees. It is common for mulitple employees to use the card. What is a traditional P-Card? - ANSWER-The cards are issued to individual employees to pay for a variety of expenses with multiple suppliers. What is interchange? - ANSWER-It is a fee paid to a card issuer by the merchant acquirer. The rates are decided by VISA and MasterCard. The factors for these rates are card type, merchant type, transaction amount, etc. What is the merchant discount? - ANSWER-It is a fee that a supplier pays to its merchant acquirer. It includes interchange plus additional clearing and settling fees. American Express uses this discount. American Express function as an _________ and ___________ ___________. - ANSWER-issuer; merchant acquirer How many data capture levels are there? - ANSWER-3 (I, II, III) Who choses the data capture levels transmitted to the end-user? - ANSWER-Suppliers Describe the different Data Capture Levels. - ANSWER-Level I - basic; date, supplier, trans amount Level II - basic + tax amount, customer defined code, supplier postal code & state Level III - Level I & II info + ship from/to postal codes, freight amount, line item detail Originally, P-Cards were payment for what kinds of transactions? Select all that apply. a. Under $10,000 b. Under $1000 c. Small purchases d. Technology items e. Office supplies, repairs, and MRO goods - ANSWER-b. Under $1000 c. Small purchases e. Office supplies, repairs, and MRO goods Which countries have the most established P-Card markets? - ANSWER-United States and Canada What is a Corporate (Travel) Card? - ANSWER-These cards are used to pay for employee travel and entertainment (T&E) expenses. Involves a plastic card which typically have personal/employee liability for the payment of monthly expeditures paid directly to the issuer. It is common the employee submits an expense report to their organization for reimbursement. What is a Fleet Card? - ANSWER-Specialized cards used to capture fleet-related expenses (fuel, maintenance, repairs, etc.). These cards provide the capability of capturing POS data such as mileage for tracking scheduled maintenance. The organization carries the liability. What is the One Card? - ANSWER-This is a hybrid card issued to the employee for more than 1 category of expenses (i.e. office supplies and travel). Typically the card has organization/corporate liability versus employee. What is a Prepaid Card? - ANSWER-This is a debit-based card allowing users to "pay now". These Store Value Cards can be reloadable or non-reloadable(i.e. gift cards). Commonly used to pay employees who do not have a bank account and unable to have direct deposit. Also used to distribute funds like unemployment benefits. What is a Declining Balance Card? - ANSWER-Like a P-Card, this does not require a pre-funded account. This card has an established spending limit and/or expiration date. This card is also known as the Controlled Value Card. The limit does not refresh. It usually has an associated budget or spend allowance. Good for business meetings or relocation expenses. What are Convenience Checks? - ANSWER-Resemble a common check account but settle against a P-Card, becoming part of the organization's central bill from the issuer. Benefit of convenience checks - ANSWER-When AP doesn't want to set up a vendor and the supplier doesn't accept card payments. What is the Business Card? - ANSWER-These cards are targeted for smaller businesses (50 accounts) which may be allowed to carry a balance. What is electronic payables? - ANSWER-A form of electronic payment that is initiated and managed by A/P. What are the features of electronic payables? - ANSWER--Allows the end-users to utilize part(s) of a traditional P2P process -Obtain invoice receipt with approval prior to payment Electronic payables are also known as - ANSWER--Electronic Accounts Payable (EAP) -Straight-through payments (STP) -Buyer-initiated payments (BIP) -Electronic invoice presentment and payment (EIPP) How does the front end process with electronic payables work? - ANSWER--The front-end process (procurement through invoice approval) can take may forms -Electronic payables are primary about the payment process -A PO is not absolute for electronic payables. -Procurement staff may or may not be involved with purchases paid through the electronic payables solution -eCommerce solution may be used in procurement (not required) -Supplier invoices may be paper or electronic -An imaging system and automated work flow process for invoice receipt, retention, and approval How does the invoice process with electronic payables work? - ANSWER--AP is involved with each transaction -Common practice is for the end-user to notify the card issuer to pay approved invoices. How does the payment process with electronic payables work? - ANSWER--Issuer initiates the payment process to the respective suppliers -Payment logistics typically happen within these 3 scenarios: 1- Supplier maintains a zero-value "card" account number which has the approved amount that is turned on and off as needed. Sometimes referred to as a Dynamic Ghost Account. 2- Supplier is instructed to charge a "single-use account" which is loaded with the approved amount for the supplier's exact charge. A different card number is generated for each payment. 3- Supplier doesn't maintain or receive any sort of card account number to charge. STP from the card provider or a direct deposit into the supplier's bank account is used. What is the difference between traditional P-Cards and Electronic Payables in the typical P2P process? - ANSWER-Traditional P-Cards were optimized for process savings: fewer people, steps, and paperwork than the traditional P2P process. Electronic Payables is some form of the traditional P2P process: more people and steps than the typical P-Card P2P process. What is the difference between traditional P-Cards and Electronic Payables in the Procurement process? - ANSWER-Traditional P-Cards have cardholders purchase goods and services while providing the card account info for payment purposes. Electronic Payables have employees initiate requisitions (i.e. through ERP) and/or place order with suppliers directly. What is the difference between traditional P-Cards and Electronic Payables in the invoice process? - ANSWER-This is eliminated with the Traditional P-Card process. Invoices are replaced with packing list or similar document. Electronic Payables have the supplier provide invoices. End-user approves and electronically notifies its card provider to pay. What is the difference between traditional P-Cards and Electronic Payables in guaranteed, electronic payments to suppliers? - ANSWER-With Traditional P-Cards, suppliers charge card upon order fulfillment, receiving payment through merchant acquire (supplier's bank) within 2-3 days. Electronic Payables is facilitated by end-user's card provider, which either "loads" a card account number with approved amount (and supplier processes a charge) or makes a direct deposit into the supplier's merchant account. Timing depends on end-user approving invoice. What is the difference between traditional P-Cards and Electronic Payables with fees to suppliers? - ANSWER-Traditional P-Cards and Electronic Payables both charge fees related to card acceptance; varies by supplier. What 2 indicators would lead an organization to pursue the P-Card opportunity? - ANSWER--At least 80% of an org's payments are $2500 each equating to 5% of spend -Approx. 80% of suppliers are used 1-2 per year How much less does the P-Card P2P process cost in comparison to traditional P2P process? - ANSWER-$25 In addition to process savings, there are benefits that emerge for procurement. Name 3 benefits. - ANSWER-1- Become more streamlined 2- Become more customer-focused 3- Have more time to concentrate on value-added tasks such as: RFP, contract negotiations with key suppliers, contract management, and supplier relations. In addition to process savings, there are benefits that emerge for Accounts Payable. Name 4 benefits. - ANSWER-1- AP is only required to make 1 payment/mth to issuer versus paying each invoice individually 2- Payment terms are negotiated during the RFP process between the org and issuer versus for each purchase with supplier 3- Paper-based invoices are replaced which reduces manual data-entry activities 4- Reduce department workload Name the benefits of P-cards - ANSWER-1- Process Savings 2- Staff Reallocation and/or Reduction 3- Reduction in Procurement Cycle Time 4- Spend Data Availability 5- Supplier Consolidation/Reduction 6- Petty Cash Reduction or Elimination 7- Opportunity for Improved Cash Flow 8- Revenue-Sharing Potential 9- Disputes, Chargebacks Rights, and Liability Waiver Insurance 10- Other Benefits: cardholders may express increased job satisfaction with being able to complete their jobs more quickly and efficiently, an org may find policy infractions that previously may have been undetected through reporting tools, play a large role in recovery plans in the Name the 9 benefits of Electronic Payables - ANSWER-1- Optimizing working capital (cash flow) and increasing days payable outstanding (DPO) 2- having more timely reporting and improved reconciliation tools through the associated technology 3- increased spend/payment visibility 4- taking advantage of discounts from suppliers (more timely payments than with check) 5- eliminating the need to retain suppliers' banking information 6- reduction in check payments 7- reduction/elimination of late payment fees 8- reduced exposure to fraud 9- potential revenue share from issuing bank What role gets involved and determines if an organization should implement a P-Card program? - ANSWER-Senior Management When implementing a program, the senior management commonly completes 4 tasks. - ANSWER-1- Requests or approves the establishment of a team to conduct research 2- provides oversight of the process and/or project 3- reviews the business case 4- makes the final decision concerning whether or not the organization will take the necessary steps toward card program implementation What role should be the "program champion"? 1- Research team 2- Program Administrator 3- Senior Management 4- Department lead/liason - ANSWER-3- Senior Management What departments should participate in the research team? 1- Senior Manager 2- Procurement 3- Accounts Payable (AP) 4- Treasury/Finance 5- Internal Audit 6- IT 7- Project Manager - ANSWER-All of the above What is one pitfall for an organization when determining how to divide the various process and payment tools? - ANSWER-Some organizations resist change and find it difficult to develop different P2P processes for different purchase types or spend categories. When would a Declining Balance Card be a good solution? - ANSWER-If it is currently difficult to track and manage expenses for organization meetings and events. When it is the Fleet Card program a good solution? - ANSWER-If the organization owns vehicles. When is Electronic Payables a good solution? - ANSWER-- If the inventory process is manual and paper-based, EP could provide efficiencies. - regulated industries, like hospitals, must often meet part or all certain requirements of the P2P process (approving the invoice) When is the One Card program a good solution? - ANSWER-If there is overlap with travel for business and regularly initiate purchases or payments for goods and services for multiple employees. What are some things to consider with the One Card? 1- Program Liability 2- Credit Limits 3- Program Controls 4- Manner in which purchases and expenses are accounted for, reconciled, and reimbursed. 5- Only use with one type of charge - ANSWER-Answers 1-4 are correct. What is value proposition? - ANSWER-The unique added worth a card program affords an organization; can be measured in cost savings, efficiency or intangible benefits such as improved service. When conducting preliminary research, information must be gathered and reviewed which may include: - ANSWER-1- How different card products are used by industry peers(including the related P2P processes) 2- Industry benchmarking information3- Successes and challenges 4- Staffing needed to manage a card program5- Possible controls and fraud prevention tactics 6- Technology options for program management 7- Potential start-up costs and how those costs are commonly funded 8- typical time frames for a card-related RFP process and subsequent program implementation What kind of staffing(roles) may be needed to help manage a card program? - ANSWER-A program manager (PM) and/or program administrator (PA) What would be considered industry benchmarking information when conducting preliminary research? - ANSWER-Typical benefits resulting from the usage of different card products The first step of the internal research process is to review: - ANSWER-1- the purchase order process 2- purchases and/or AP payments not associated with a PO (i.e. check requests) When mapping out the processes and costs, inefficiencies will appear. One area to focus should be________________. - ANSWER-organization's paper-based and/or manual processes ending with check payment. The research team could prepare a _________________ document to demonstrate a particular _____________ and _____________. - ANSWER-- 6-column spreadsheet -P2P and associated cost Name the suggested header rows when reviewing a particular P2P process and associated cost. - ANSWER-1- Step number 2- Description of step 3- Role (job position that performs the step) 4- Time spent on step 5- Cost per minute Average salary + 35% benefits= total competition Total comp/2080 hours= hourly wage Hourly wage/60 minutes=cost per minute 6- Extended cost of step What action should be accomplished in the Defining Targeted Transaction phase? - ANSWER-Narrow down the types of cards that would be best for the organization and for specific types of transactions (i.e. Corporate cards, Fleet cards, etc.). When should P-Cards be used versus Electronic Payables? - ANSWER-P-Card should be used when the process does not require an invoice and subsequent approval are truly needed prior to payment. When is P-Card is used as a payment solution the invoice is replaced by _________________? - ANSWER-A priced packing list The benefits of P-Card for the supplier. - ANSWER-Quick Payment Don't have to send a invoice Risk of duplicate payment is reduced P2P process is completed more quickly What criteria may be used to evaluate if suppliers have the potential for electronic payables? - ANSWER--current credit card acceptance -volume -the goods/services commonly purchased -cost of goods/services -existence of a contract What type of suppliers are a good fit for P-Cards? - ANSWER-Infrequently to high-volume used suppliers What type of purchases are a good fit for P-Cards? - ANSWER-Low to mid-value expenses such as supplies, computers, catering, event registration, subscriptions, shipping expenses, etc What type of supplier is good for Electronic Payables? - ANSWER-Mid to high-volume suppliers What type of purchases are ideal for Electronic Payables? - ANSWER-Mid to high-value indirect spend: inventory, raw materials and capital purchases What is the most common range of transaction sizes? a. $5000 to $9999 b. $500-$24999 c. Less than $500 d. $2500-$4999 - ANSWER-c. Less than $500 In regards to card/account issuance, what is the difference between a traditional P-Card Account and a Ghost Account? - ANSWER-P-Card is issued to a specific employee; Ghost is issued to a specific supplier or supplier type. In regards to protections, what is the difference between a traditional P-Card Account and a Ghost Account? - ANSWER-P-Card typically has protections such as chargeback rights and liability waiver insurance. Ghost may or may not have the same protections as traditional P-Card. In regards to usage, what is the difference between a traditional P-Card Account and a Ghost Account? - ANSWER-With P-Card, the cardholder uses with multiple suppliers. Multiple employees initiate purchases that are processed to a single Ghost Account. When comparing P-Card and Ghost, how do they differ in regards to responsibility? - ANSWER-The P-Card cardholder and Ghost "account custodian" are both for reviewing posted transactions. The P-Card cardholder is responsible for account activity while the Ghost "account custodian" is responsible for oversight. What security features do the P-Card and Ghost Accounts have? - ANSWER-P-Card cardholder must protect the security of card/account number. With the Ghost account, employees often do not know the account number. Security measures differ from traditional accounts. What controls are in place for traditional P-Card and Ghost Accounts? - ANSWER-For the P-Card, account/card controls allow for the various types of purchases with various suppliers. For the Ghost account, the account/card controls often are restricted and designed to allow for activity with the specific supplier(s). Which account (P-Card or Ghost) might be the best Commercial Card product to use with suppliers to invoice/charge freight, transportation, and delivery expenses? - ANSWER-Ghost Account If Ghost accounts will be used, you will want this addressed within the _________ and included in the __________________. A. RFQ and organization B. RFP and organization C. RFP and pilot program D. RFP and with a test group - ANSWER-C. RFP and pilot program The next step after the research phase is ___________________. A. Gathering facts B. Defining Program Targets C. Review existing processes D. Create a Business Case - ANSWER-D. Create a Business Case When building a Business Case, the team should illustrate: A. Anticipated savings/benefits B. Staffing needed for program implementation and ongoing management C. Hard-dollar costs, including software and hardware costs, if applicable D. Potential revenue-sharing income and cash flow savings E. Supplier consolidation/reduction estimates and potential impact F. Reduction of staff in the procurement and AP departments G. All of the above - ANSWER-G. All of the above Who should dictate the components and degree of detail that the business case should contain? A. Senior management B. Research team C. Suppliers D. Staff - ANSWER-A. Senior management What is a business case? - ANSWER-A business case is taking the form of a structured proposal, offers a thorough cost/benefit analysis and provides the background for management to make a decision. What is a project plan? A. A roadmap B. Request for proposal C. Program model D. None of the above - ANSWER-A. A roadmap What are the steps to put a program in place? - ANSWER-1. Value Proposition 2. Research opportunities 3. Business Case 4. Prepare a project plan 5. RFP 6. Program Implementation What does a project plan include? - ANSWER-1- Project Schedule noting key dates 2- Design the Control Environment 3- Defining Program Roles: Resources assigned to tasks & constraints 3- Communication plan 4- Detailed Tasks & identify task dependencies 5- Government regulations Who is assigned the responsibility of developing the card program model? A. Management B. Team of Stakeholders C. Executive team D. Project manager - ANSWER-B. Team of stakeholders What is the purpose of a program model? A. Create the appropriate subgroups B. Know what to research C. To save future dollars D. Prepare for upcoming RFP - ANSWER-D. Prepare for upcoming RFP The __________ period is the appropriate time for an organization to finalize its desired card programs and/or account types. - ANSWER-Pre-RFP What are the different types of payment options? - ANSWER-P-Cards Ghost Accounts Corporate cards Fleet cards One cards Prepaid cards Declining balance cards Convenience checks Electronic payables During the creating program goals and objectives phase, an organization's specific situation will define the direction. Name the 3 types of situations. - ANSWER-1- First-time implementation of a P-Card program or other Commercial Card product 2- Rebidding an existing card program 3- Re-vamping of an existing program Unlike traditional procure-to-pay processes, _______________ allow employees to both initiate and pay for purchases, resulting in the need for different types of controls. A. Ghost Account B. Travel Card C. P-Card D. Electronic payables - ANSWER-C. P-Card What are some examples of program risks? A. Productivity loss B. Fraud C. Financial Loss D. All of the above - ANSWER-D. All of the above What is fraud? - ANSWER-It is the unauthorized use of a P-Card resulting in an acquisition whereby the end-user organization does not benefit. What is misuse/abuse of a P-Card? - ANSWER-It involves unauthorized purchasing activity, such as buying a higher quality good than deemed appropriate to using non-preferred suppliers, by the employee to whom the P-Card is issued. A lack of _________________ can be a significant risk. For example, a particular employee have "write" access to card transactions and the financial system. A. Inadequate oversight B. Checks and Balances C. Separation of duties D. Policy Compliance - ANSWER-C. Separation of duties Maintaining a current ________________ will help an organization implement appropriate controls, as well as provide valuable documentation for audit purposes. A. List of policies B. Risk analysis C. Reconciliation D. List of roles - ANSWER-B. Risk analysis An organization should test the effectiveness of the __________, taking the necessary actions to close any _____________. A. controls, identified gaps B. roles, identified gaps C. reconciliation, open transactions D. controls, fraud and misuse - ANSWER-A. controls, identified gaps What are the 3 key controls to support the structure of the control environment? Choose 3. A. Independent review of the cardholder's transactions, such as by the cardholder's manager, to detect potential fraud and misuse. B. Cardholder reconciliation of their posted P-Card transactions to detect potential fraud or unauthorized charges C. Separation of duties provides a system of checks and balances, supporting policy compliance. D. the P-Card audit program, serving to confirm whether or not the controls are effective, uncovering any previously undetected fraud and misuse. - ANSWER-A. Independent review of the cardholder's transactions, such as by the cardholder's manager, to detect potential fraud and misuse. B. Cardholder reconciliation of their posted P-Card transactions to detect potential fraud or unauthorized charges D. the P-Card audit program, serving to confirm whether or not the controls are effective, uncovering any previously undetected fraud and misuse. Select 4 of the supporting controls from the list. 1- Card Controls 2- Executive support 3- P-Card policies and procedures (P&P) 4- Training - covering card program P&P 5- Card Issuer P&P 6- P-Card technology and reporting - ANSWER-1- Card Controls 3- P-Card policies and procedures 4- Training - covering card program P&P 6- P-Card technology and reporting Should the card issuer offer assistance to the end-user organization regarding implementation controls prior to card issuance? Yes or No - ANSWER-Yes A P-Card program will affect both ____________and ____________. A- Procurement; Materials Management B- Accounting; Administration C- Accounting; Budget D- Procurement; Accounting - ANSWER-D- Procurement; Accounting Which department typically handles the electronic payables program and why? - ANSWER-Accounting because it is a payment tool used for proved invoices. Which department typically handles the P-Card program and why? - ANSWER-Procurement because many department procedures and roles are affected by the implementation, procurement can promote P-Card to decrease the # of PO as well as help ensure the card purchases comply with organizational procurement policies and manage supplier relationships. Which department typically handles the Corporate Travel Card program? - ANSWER-Procurement How will the P-Card program effect Procurement and A/P? - ANSWER-Procurement will complete less clerical-based duties (PO) and more time spent on contract negotiations, managing relationships with suppliers, monitoring procurement policies, etc. Accounting will have decreased invoices, staff reduction/reallocation. Minimally, _______ should be defined prior to developing the RFP to allow the individual or team to participate from inception. A- teams B- stakeholders C- A/P D- roles E- Procurement - ANSWER-D- roles Program management may want to set up a basic hierarchy in the development phase. What are the 3 Program Management Hierarchy? A- Project Manager, Project Administrator, Site coordinator B- Program Manager, Program Manager, Site coordinator C- Program Manager, Project Administrator, Site Coordinator D- None of the above - ANSWER-B- Program Manager, Program Manager, Site coordinator Which 2 Program Management roles tend to have evenly split 50/50 in regards to being separate or combined? - ANSWER-Program Manager and Program Administrator The ideal PM is knowledgable in _______________, _______________, ____________, and __________________. - ANSWER-procurement, accounting, IT, project management The PM is a key player in determining ____________, ________________the implementation activies, ______________ and ___________________ the program's P&P and ___________ the organization's vision for the program. - ANSWER-choice of issuer, guiding, creating, communicating, executing Under supporting roles, what is audit's potential role? - ANSWER-Partner with the program management team to develop and maintain effective control strategy; audit the PM and program participants for compliance with P&P. Under supporting roles, what is tax's potential role? - ANSWER-Partner with the PM team to establish compliance with regulatory requirements. Under supporting roles, what is AP's role? - ANSWER-Process payments to the card issuer; facilitate accounting entries for expenses made via the card and monitor GL accounts associated with the card program. Under supporting roles, what is Treasury/finance's role? - ANSWER-Develop a relationship with the card issuer and other banking/financial partner's; review cost of funds to determine an appropriate schedule for paying the card issuer. Under supporting roles, what is IT's role? - ANSWER-Assist with development of custom interfaces between P-Card technology, internal systems, and custom reporting needs. The primary function of P-Cards is to shift the purchasing responsibility from the _______________ department to the _____________ department. - ANSWER-procurement; acquiring Cardholders should be selected based on A- Seniority B- Position C- Job needs D- Vote - ANSWER-C- Job needs Traditionally, P-Cards are assigned to _________________. A- Groups/departments B- Individuals C- PM D- Employees - ANSWER-D- Employees Cardholders are responsible for __________, __________, __________, and __________________. - ANSWER-proper use of the card, reconciling transactions, reviewing the monthly statement and initiating disputes. Proper use of the card means A- Using only their account B- Authorized purchases C- Maintaining accurate support documents D- Monitoring General Ledger - ANSWER-A- Using only their account B- Authorized purchases C- Maintaining accurate support documents Inactive or under-utilized P-Cards may pose a ______________ and ________________ ________________ of the program as a whole. A- success; increase efficiency B- risk; less reconciliation C- success; increase end-users D- risk; decrease efficiency - ANSWER-D- risk; decrease efficiency Who should oversee and monitor cardholder compliance? A- Project team B- Managers, supervisors, and approvers C- PM, PA, coordinator D- Senior management - ANSWER-B- Managers, supervisors, and approvers Optimal program success is dependent on ____________. A. cardholders and their management held accountable for their roles. B. the right individuals in the correct roles. C. training on P&P and following government regulations. D. none of the above - ANSWER-A. cardholders and their management held accountable for their roles. Sarbanes-Oxley Act is U.S. legislation that resulted from numerous scandals. The intent of SOX was A. for publically traded U.S. companies to have no accounting loopholes and boost investor confidence while holding management responsible. B. for the acquiring community to report the gross amount of card payments for each supplier. C. to impose a sales tax on the sale of taxable items, calculated as a percentage of the sales price. D. none of the above - ANSWER-A. for publically traded U.S. companies to have no accounting loopholes and boost investor confidence while holding management responsible. When is the best time to research government regulations? A. Developing a Program Model B. When writing the RFP C. Post RFP award D. After a card issuer is selected - ANSWER-A. Developing a Program Model Which sections of the SOX Act that may affect P-Card operations? - ANSWER-Sections 409, 302, 404 What is section 404 of the SOX Act 202? A. Recording balances for financial reporting B. Outline for an organized P-Card program C. P-Card control environment is effective with controls concerning accurate financial reporting and fraud D. Regularly audited by tax authorities - ANSWER-C. P-Card control environment is effective with controls concerning accurate financial reporting and fraud What is sales tax? - ANSWER-A tax imposed on the sale of taxable items. Who establishes the items subjected to tax and the amount of tax? A. State B. All of the above C. Special taxing district D. Unit of local government - ANSWER-B. All of the above Who is generally responsible for tax collection? A. Buyer B. Merchant C. Government D. None of the above - ANSWER-B. Merchant All suppliers collect tax in all jurisdictions. True or False - ANSWER-False When are suppliers required to register with a state and collect taxes? A. Where they have a physical presence B. Where they have no physical presence C. Online orders D. None of the above - ANSWER-A. Where they have a physical presence If the supplier doesn't pay tax, who must pay the taxes? A. Noone B. Purchaser C. Government - ANSWER-B. Purchaser What is "use tax"? - ANSWER-A tax paid by the purchaser when taxable property or services are used in the state and state tax has not been paid. Use tax ______________ the sales tax and is owed by the __________ when the sales tax is not collected by the supplier at the time of a taxable sale. A. supplements; supplier B. decreases; organization C. increases; supplier D. supplements; organization - ANSWER-D. supplements; organization Why was use tax regulations implemented? A. To prevent the order of goods from out-of-state suppliers in an effort to avoid paying the sales tax. B. To prevent the order of goods from suppliers in effort to avoid paying the sales tax C. To ensure taxes are paid by the supplier and the purchaser. - ANSWER-A. To prevent the order of goods from out-of-state suppliers in an effort to avoid paying the sales tax. In the event of a use tax audit, it is the obligation of the _________ to document either the payment of sales tax or the accrual and remittance of the use tax. A. Supplier B. Purchaser C. Both the supplier and purchaser D. Neither - ANSWER-B. Purchaser What are the best characteristics of a use tax solution? Chose 3 answers. A. Process is consistently performed B. Documentation supports tax decision-making and process C. process captures tax intelligence, such as audit results or manual transaction reviews D. Annual reviews update process for tax law changes - ANSWER-A. Process is consistently performed B. Documentation supports tax decision-making and process C. process captures tax intelligence, such as audit results or manual transaction reviews Which regulations is a U.S. federal tax law requirement? A. Sarbanes-Oxley Act B. 1099 Reporting C. Use tax D. None of the above - ANSWER-B. 1099 Reporting When did the 1099 reporting become a law? A. 1920's B. 1930's C. 1940's D. 1950's - ANSWER-C. 1940's What is the purpose of the 1099 reporting? A. Obligates organizations to report all payments made to all suppliers providing a means for the IRS to ensure suppliers are reporting income. B. Obligates organizations to report a few payments made to certain suppliers providing a means for the IRS to ensure suppliers are reporting income. C. Obligates organizations to report certain payments made to certain suppliers providing a means for the IRS to ensure suppliers are reporting income. D. Obligates organizations to report all payments made to certain suppliers providing a means for the IRS to ensure suppliers are reporting income. - ANSWER-C. Obligates organizations to report certain payments made to certain suppliers providing a means for the IRS to ensure suppliers are reporting income. Do states have 1099 requirements similar to federal government? - ANSWER-Yes When suppliers fill out a 1099-Misc, do they include the DBA? - ANSWER-No If suppliers do not supply the end-user organization with a proper TIN, the _____________________ is required to withhold a certain percentage of the payment, forward back-up to the IRS and advise the supplier this has been done. A. Supplier B. Purchaser C. IRS D. Federal government - ANSWER-B. Purchaser Through 2010, an incorporated supplier who provided service had to exceed $_______ during a calendar year had to report on 1099. A. $600 B. $650 C. $700 D. $750 - ANSWER-A. $600 Effective 2011, Public Law 110-289 IRC Section 6050W took effect. What does this law require? A. Report the number of card transactions for each supplier (including name, address, and TIN) B. Report which suppliers your organization did business with (including supplier, address, and TIN) C. Report the gross amount of card payments for each supplier (including name, address, and TIN) D. None of the above - ANSWER-C. Report the gross amount of card payments for each supplier (including name, address, and TIN) Which form was developed for 6050W, the Public Law 110-289? A. 1099-Misc B. 1099-L C. 1099-K D. 1099 - ANSWER-C. 1099-K 1099 reporting is required by the original Section ______ of the Internal Revenue Code (IRC). A. 6045 B. 6047 C. 6041 D. 6049 - ANSWER-C. 6041 Which of the following would best prevent fraud in a P-Card program? A. Shredding P-Card documentation B. Establishing a system of checks and balances C. Performing a background check on cardholders D. Storing the cards in a centralized, secure location - ANSWER-B. Establishing a system of checks and balances Which 2 different pieces of legislation passed in 2006 and 2010 respectively were repealed due to subsequent legislation? A. Public law 110-289 and 109-222 (Tax Increase Prevention and Reconciliation Act - TIPRA) B. Public law 109-222 TIPRA and a small paragraph in Section 6041 C. H.R. 674 and Section 6041 D. None of the above - ANSWER-B. Public law 109-222 TIPRA and a small paragraph in Section 6041 Which of the following is the best first step in the development of a P-Card program? A. Creating a business case B. Hiring staff to run the program C. Selecting a card provider D. Training cardholders - ANSWER-A. Creating a business case The main objective of the Request for Proposal (RFP) process is to: A. Meet potential relationship/account managers B. design a P-Card program C. gather provider market share information D. select a provider objectively - ANSWER-D. select a provider objectively The primary goal of a P-Card program is to: A. prevent staff from interacting with Purchasing B. eliminate full-time equivalent (FTE) staff positions in Accounts Payable C. streamline the process for acquiring low-cost goods. D. eliminate FTE staff positions in Purchasing - ANSWER-C. streamline the process for acquiring low-cost goods. Reducing or eliminating cash funds through P-Card use results in: A. more accurate financial entries B. increased banking fees C. the need for more accounts payable staff D. a greater capture of transaction data - ANSWER-D. a greater capture of transaction data Which of the following is a best practice concerning MCC restrictions? A. Do not block any MCCs to prevent transaction declines B. Make every cardholder's MCCs profile different C. Utilize some standard profiles based on card usage D. Block most, relying on temporary unblocks for most purchases - ANSWER-C. Utilize some standard profiles based on card usage The primary customers of merchant acquirers are: A. suppliers of goods and services B. banks that issue cards C. individuals/cardholders D. card networks - ANSWER-A. suppliers of goods and services The Tax Increase Prevention and Reconciliation Act (TIPRA) was signed into law in 2006 becoming Public Law_______. A. 109-222 B. 109-212 C. 109-674 D. 109-289 - ANSWER-A. 109-222 For 1099 reporting, what changes occurred from 2010 to 2011? A. non-card payments didn't have to be reported B. card payments had to be reported C. card payments didn't have to be reported D. neither card nor non-card payments had to be reported. - ANSWER-C. card payments didn't have to be reported Due to the changing regulatory landscape, an organization should consult with their ________ to remain current on requirements. A. card holders B. card issuer C. A/P or tax department D. B & C - ANSWER-D. B & C card issuer and A/P or tax department Understanding the IT requirements and communicating the requirements in the RFP should be complete in what planning stage? A. Developing B. Researching C. Implementation D. Planning - ANSWER-D. Planning The interfacing process is sometimes referred to as A. connecting B. mapping C. filing D. coding - ANSWER-B. mapping List the pro and cons of interfacing with A/P - ANSWER-Pro - All transaction detail is together (card and non-card) Cons - Extra step in process Clutters the A/P system Inconsistent use of fields Data duplication List the pros and con of interfacing with the GL. - ANSWER-Pros - Streamlines process Elminiates clutter in A/P Con - May require use of multiple systems to see transaction and payment details The creation of interface files generally occurs after an organization __________ a card issuer. A. Selects B. Awards C. Fires D. Gets involved with - ANSWER-A. Selects Do public or private organizations have a lower tolerance for risk? - ANSWER-Public Would public or private organizations possibly be exempt from some regulations such as sales tax or the Sarbanes-Oxley Act? - ANSWER-Public If an organization is switching issuers versus establishing a new program, who addresses its exit strategy with the current card issuer? A. Contract negotiator B. Card Issuer C. Organization D. Program Admin - ANSWER-C. Organization In the Infrastructure portion of Program Implementation, what task do the program management personnel need to do? - ANSWER-Understand their roles and ensure they are trained In the Infrastructure portion of Program Implementation, what task need to be done in the policies and procedures? - ANSWER-The procedures and policies need to be documented. In the Infrastructure portion of Program Implementation, what actions must be done in the controled environment? - ANSWER-Ensure the control is established and is related to account set-up and card controls. In the Infrastructure portion of Program Implementation, what task must be completed to meet government regulations? - ANSWER-The organization has strategies prepared to meet the regulations. In the Infrastructure portion of Program Implementation, what task must be complete for the training program? - ANSWER-The training program needs to be ready to be delivered and communicated. During the implementation, the organization should communicate with _______________ and ______________ about the P-Card program, the benefits to the organization, how the processes will change, and promote the P-Card use with policies and procedures. A. Issuer and Supplier B. Supplier and organization C. Issuer and organization D. P-Card end-users and organization - ANSWER-B. Supplier and organization Name 4 topics that should be part of the strategic communications during the Implementation process. - ANSWER-Introduce the P-Card program Explain the benefits Describe how the processes will change Promote the P-Card use in accordance with policies and procedures. The _______________ is the recommended first step and valuable for first-timers as well as for organizations switching issuers. A. Pilot Program B. RFP C. Preparing Suppliers D. Survey - ANSWER-A. Pilot Program What is the purpose of a pilot program? A. Operate in production mode B. Testing all program elements on a small scale C. Making any necessary changes before implementing a full program rollout. D. All of the above - ANSWER-D. All of the above Name a pitfall of not pursuing a pilot program. - ANSWER-1- Never reap the full efficiencies that the P-Card has to offer Unlike to the RFP process, the extensive activities with a pilot program may require a separate project plan. True or False - ANSWER-False. It is recommended that both the RFP and the pilot program have project plans. Name several success factors of a pilot program. 8 listed. - ANSWER-1- pilot group should represent the P-Card population 2- pilot group should have sufficient training to perform the expected tasks 3- the types of accounts in the pilot group should represent the whole plan 4- the chosen P-Card technology should be thoroughly tested with many scenarios and variables of the system 5- the pilot program should allow the card to be used with multiple suppliers for a variety of purchases 6- Core team members involved in an oversight perspective, yet using their expertise. 7- Have a definite end point for the pilot program (3 months is typical) 8- Solicit feedback and conduct a separate evaluation to prepare for the full program rollout Who would be good participants in a pilot group? A. Supporters B. Doubters C. Those with computer experience D. Outspoken individuals E. Suppliers F. None of the above - ANSWER-A. Supporters B. Doubters C. Those with computer experience D. Outspoken individuals E. Suppliers Consider reviewing existing whether or not an existing contract with a supplier will need to be amended to reflect card payments or acceptance. True or False - ANSWER-True A pilot program typically functions for A. a few months B. a few billing cycles C. a limited duration D. as long as it takes - ANSWER-A. a few months B. a few billing cycles Which one of these operations is not part of a pilot program? A. training B. planning C. transaction documentation D. system integration E. reporting - ANSWER-B. planning The time it takes from order to receipt of goods/services is called_________________. - ANSWER-Cycle Time The ___________________________ should be monitored to ensure the suppliers are charging the same prices as before, raised or lowered prices in conjunction with P-Card use. - ANSWER-Cost of goods and services One type of key metrics that can be measure the success of the P-Card program by AP is _______ ___ ________. - ANSWER-Reduction of invoices Transaction volume, dollar volume, spend per card, average transaction size all describe which type of metric during a pilot program? - ANSWER-P-Card Spend Maximum savings may not be realized until the program is in which stage of rollout? - ANSWER-full program rollout One of the first steps toward a full rollout is for the organizationto make any necessary __________ ____________. - ANSWER-Program adjustments Changes should be documented for an _____ ______ and communicated to existing ______ _________. - ANSWER-audit trail, program participants Which department in an organization is assigned the responsibility for the P-Card program? - ANSWER-Procurement The role of the program management team is multi-faceted. What does it entail? A. Communicating B. Encompassing sales C. Compliance D. Customer service - ANSWER-B. Encompassing sales C. Compliance D. Customer service It would be wise to complete a ______ ________ serving to identify, in detail, the particular job duties, responsibilities, requirements and skills associated with the fulfillment of the PM and/or PA roles. - ANSWER-job analysis Who assumes most of the responsibility for the program success? A. Audit Role B. Site coordinator C. Program Manager D. Program cooridnator - ANSWER-C. Program Manager Which one is not a responsibility of the Program Manager? A. Promoting the program and ensuring the acceptance within the organization B. Card distribution C. Developing a training program D. Staying abreast of industry changes, news, best practices, and the evolution of tools and strategies for program improvements E. Interacting effectively both up and down the organizational hierarchies and serving as the liaison to senior management - ANSWER-B. Card distribution Which are not responsibilities of the Program Manager? A. Assisting with the development of the P-Card business case B. Promoting the program and ensuring its acceptance within the organization C. Assisting management in establishing overall goals for the program D. Receiving applications E. taking the lead role in determining the ongoing technology needs of the organization and working with the issuer to ensure these needs are met - ANSWER-D. Receiving applications Which is not a responsibility of the Program Administrator? A. Setting up new accounts B. Assisting with cardholder training C. Account maintenance, MCC restrictions and/or account limits D. Continued growth of the program such as expansion plans E. Policy compliance reviews, looking for transaction anomalies and odd spending patterns and reporting any potential card misuse - ANSWER-D. Continued growth of the program such as expansion plans What is not a responsibility of a site coordinator? A. Maintaining a record of all accounts at their site B. New cardholder training C. Overseeing records retention D. Coordinating any necessary account maintenance with either the PA or the issuer E. Audit for compliance with the organization's procurement policies - ANSWER-E. Audit for compliance with the organization's procurement policies Name 2 supporting roles that ensure the overall success of the program and maintain the separation of duties. A. Stakeholders B. End-users C. Audit D. Accounts Payable - ANSWER-C. Audit D. Accounts Payable Some of the functions of a Steering Committee are: (Select 3) A.