It cost Fayette County $219.76
to buy a $14.49 thermostat last July, according to a report from the county
Finance Department.
"This is a much more efficient
system and it saves dollars," said Mark Pullium, finance director,
in urging the County Commission last week to adopt a pilot program to
try out the purchase, or procurement, card system he was recommending.
Commissioners unanimously agreed,
though some voted for the measure with reservations.
"I have reservations,"
Commissioner Herb Frady told Pullium, "but I'll support it as a pilot
program and then help you pick it apart in six months."
Representatives of Wachovia,
the bank that handles Fayette's accounts, pitched the idea of the P-card
to commissioners in October as a means of increasing efficiency and accountability.
The purchase cards would be similar to the ATM/debit cards used by many
individual bank customers, and will be distributed to key county employees
to make purchases that will automatically come out of the county bank
account.
"It will save you time,
money, effort and a whole list of things," said Ingrid Kelly, senior
sales officer for Wachovia.
Cards like the ones she is
proposing, Kelly said, have numerous high-tech controls on them so they
can't be easily abused. A county official can be authorized to spend a
given amount of money per month, and a different amount per transaction,
and the card can be set up to pay for expenditures only in authorized
categories, she said.
So a worker authorized to purchase
only office supplies wouldn't be able to use the card for travel, she
said.
The cards also could be electronically
linked to the county budget, so a department would be forced to stay within
prescribed limits, said Kelly, adding that workers would have to keep
receipts and those receipts would have to be randomly audited to prevent
abuse.
Because it eliminates the physical
costs of receiving invoices and mailing checks, along with the costs of
employees who have to be involved in such transactions, the purchase card
can cut the cost of a purchase from an average of $50 - $150 to an average
of $15 - $25, she said.
During the October meeting,
commissioners weren't quite ready to buy the actual estimates, which are
industry averages, and asked Pullium to conduct his own study of actual
costs to the county.
His report said that the average
cost of a purchase order as currently handled is $205.27. Using that average,
he gave the example of the $14.49 thermostat.
The P-card will reduce that
cost considerably, Pullium predicted.
A limited number of county
workers will try the card out for six months and its worth will be evaluated
again.







Easy button Return it to long suffering taxpayers including those who have paid huge tabs to educate other people's kids…