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Commercial Card Program Overview

State of Texas

Transaction Services

Private and Confidential

https://www.google.com/url?q=http://en.wikipedia.org/wiki/Seal_of_Texas&sa=U&ei=455WU460M8jJ8wGYzoHQDw&ved=0CDQQ9QEwAw&usg=AFQjCNHxvZc_fTanh600BsrbvtO7dt9rhA

Program Overview

State of Texas



CITIBANK COMMERCIAL CHARGE CARD PROGRAM: FEATURES & BENEFITS

With decades of experience serving federal, state and local governments throughout the United States, Citi is uniquely positioned to share its expertise and best practices with public sector organizations across North America. Citi’s card solutions and value-added services help organizations optimize operations to achieve their expense management goals. Texas SmartBuy members may also leverage rebate opportunities available with Citi’s commercial cards to increase their financial advantage.

Through customized implementation, training and marketing plans, Citi helps organizations achieve a seamless, efficient transition and provides the tools needed for effective program management. Benefits of a Citi commercial card program include:

Online Program Tools: Citi’s suite of online tools delivers critical business intelligence and helps increase program efficiency, visibility, control and compliance.

Online Statements: Citi’s online statements put all the details of card activity online for fast, secure 24/7 access and streamlined review.

Program Audit Tool: Monitors cardholder usage and helps ensure compliance with this innovative tool that flags card activity when it exceeds pre-set program parameters.

Card Security Controls and Restrictions: Citi’s flexible card solutions give program administrators many options for controlling card use according to their entity’s business requirements.

Marketing Support: Citi marketing toolkits include customizable templates and content to educate program administrators and cardholders about the card program and help ensure a successful program launch and smooth transition.

Training Programs and Resources: Citi training professionals work with an entity during the transition to identify its training needs and tailor the training curriculum accordingly.


Program Details

Citi pays a semi-annually, calculated based upon spend in March through August and September through February.

• Rebate Fund Disbursement• December and June• Paid via - ACH or Wire

• Rebates paid on cumulative spend of all contract participants

• Rebate paid on first dollar of spend

• Monthly cycle is the 4th of the previous month to 3rd of current month

• Bills must be paid in full each cycle to be eligible for that cycle period

• For each day paid early, customer is paid additional 0.75 basis points per day

• Large ticket rebate—60 basis points

Rebate:


Rebate Overview

• Below is the current rebate schedule for the State of Texas program. The State’s spend is $859MM with an average transaction size of $228. Therefore, the State is earning 1.93% in rebates on spend today.

Contract Terms:

Pricing Terms:

$0-99 $100 $150 $200 $250 $300 $350 plus

$0-399 1.66% 1.66% 1.69% 1.70% 1.71% 1.71% 1.72%

$400 1.83% 1.83% 1.85% 1.86% 1.87% 1.87% 1.88%

$425 1.83% 1.84% 1.87% 1.88% 1.88% 1.89% 1.89%

$450 1.83% 1.84% 1.87% 1.88% 1.89% 1.89% 1.90%

$475 1.83% 1.84% 1.87% 1.88% 1.89% 1.89% 1.90%

$500 1.84% 1.85% 1.87% *1.89% 1.89% 1.90% 1.90%

$525 1.85% 1.85% 1.88% 1.89% 1.90% 1.90% 1.91%

$550 1.85% 1.86% 1.88% 1.90% 1.90% 1.91% 1.91%

$575 1.85% 1.86% 1.89% 1.90% 1.91% 1.91% 1.92%

$600 1.86% 1.87% 1.90% 1.91% 1.92% 1.92% 1.92%

$625 1.86% 1.87% 1.90% 1.91% 1.92% 1.92% 1.92%

$650 1.87% 1.88% 1.91% 1.92% 1.93% 1.93% 1.94%

$675 1.88% 1.89% 1.91% 1.93% 1.93% 1.94% 1.94%

700 plus 1.88% 1.89% 1.91% 1.93% 1.93% 1.94% 1.94%

Average Transaction Size

Sem

i Ann

ual S

pend

($ M

illio

ns)


Rebate OverviewIn addition to the 1.93% (193 bps) earned on spend, the State also has the ability to earn an additional 0.75bps for each day prior to day 30 (after invoice date) the State remits payment.

As an example of additional rebates that could be earned, below is a table that shows the potential if payment is made within 30 days, 20 days and 15 days.

Citi will pay rebates for balances paid up to 30 days from invoice date. If partial balance is paid within 30 days, that balance will earn a rebate. Should multiple payments take place up to 30 days, the balances paid will receive the respective payment incentives based on the timeliness of each payment.

Pay by day 30 = 1.93% (193 bps )Pay by day 29 = 1.9375% (1.93 + .0075 )Pay by day 15 = 2.0425% (1.93 + .1125)

Early Payment Incentive Chart


Cards

State of Texas



Types of Commercial Cards


Citi Purchasing Card: Solution Benefits

CONTROL AND VISIBILITY

STREAMLINED PROCUREMENT

SAVINGS OPPORTUNITIES

• Reduce procurement cycle time from up to 10 days down to 3*• Pay all suppliers within 1-3 days, improving relationships• Automatically upload Citi files to expense/GL systems• At month’s end, get 1 bill, make 1 payment• Expedite processing of 80% of invoices, which account for 20% spend*

• Save up to $70 per transaction, compared to other purchasing methods*• Improve cash-flow cycle (30 + 25 days)• Access attractive financial incentives with each transaction• Consolidate spend with preferred suppliers to negotiate discounts

• Manage Control all adjustable spend and transaction limits for each card• Instantly access graphs and reports to assess trends, breakdowns etc.• Know who is spending where and how much• Increase spend compliance levels by 12% on average*


Citi Products: Online Functionality as a Standard

Alerts Profile Maintenance

Transaction Allocation

CitiManager Mobile

• ~30 globally available SMS and / or email

alerts• Time Zone Selection & Alert

Subscription Audit Log Report• 28 languages

supported• Alerts available in

real-time

• Maintain personal profile – name, address, email, passwords

• Enroll in and manage email and text alerts

• Set-up recurring or make one-time account payments (where available)• Real-time

updates for common fields

• Availability can be set based on

role

• Review and allocate purchase card transactions

• Route and monitor approvals

• Access current and past statements

• View new activity not yet posted to a statement

• Choose from 24 languages

• View past payments

Applications and Activation

• Apply for a card• Establish ID and

profile• Web delivery/

acceptance of disclosures and reference materials

• Card activation• Bulk and

individual online applications

available• Globally

consistent; locally compliant

The Citi solution employs state of the art technology, creating easy-to-use applications, real-time alerts, on-the-go mobile access and customizable maintenance – all online, all the time.


Citi Bank One CardCiti One Card allows you to combine the features and benefits of Citi Purchase, Corporate Cards into one efficient program, providing simplified control and reporting capability.

• Citi One Card provides consolidated transaction

information

• Customize your reports using 600+ data points, so you

can analyze the data that is most pertinent at any given

time

• Put critical tools at your fingertips with Citi® Program

Dashboard so you can utilize program data to drive

compliance and efficiency across your organization

• Simplify report integration with our suite of standard

and customized data files that can be effortlessly

integrated with any expense management and ERP

system

• Access statements with ease, 24/7. Both you and your

cardholders can view and download current and previous

billed and unbilled transactions — all updated daily

One Card Overview Benefits

For Your Organization

• All-encompassing Card integrating multiple programs into one

• A single program to manage, reducing Card requests, program maintenance, and increasing efficiency

• MCC templates to control a multitude of authorizations/limits

• One consolidated statement for each billing period

• Simplified integration into your general ledger systems

• Consolidated and customizable reporting

For Your Employees

For Your Suppliers

• Greater convenience, eliminating the need for multiple cards

• Cardholders will receive the same Card benefits provided by the individual card programs

• Faster payments

• Improved cash flow

• Reduced collection costs


Declining Balance: What is it?

Plastic Card(Set Merchant Category Controls as desired)

Non-Refreshing Preset Limit(Users “spend down” to 0 on the card)

Ability to Set Period of Use (Start & End Date)

Employee

Control Ease of Use Efficiency FlexibilityBenefits:

Sample Use Cases:

51

All

Local Currency Countries Supported

All IPC Countries Supported

• Meetings & Events• Discrete Projects• Rewards

• Recognition• Relocation• Emergency Uses

• Annual Provisions (ex., Uniform Stipend)

• Consulting Pay• Toll Fees• Gas Card


Application Process

Apply Online; Set limit and end date (for NA, contact CAS to set start / end date)

Available with Central Billing Set for minimally 2 cycles

Maintenance Requests

Online Maintenance Available (For NA, use Call Center for maintenance requests)

Statement / Transaction Viewing

Specially Created Online Statement notes Declining Balance Limit, amount remaining, & amount used

Account Summary & Unbilled Screens

Reporting Online Reports available with Declining Balance specific

information: End Date, Limit, Spend Available, Spend Used (End Date available outside NA only)

Service Center Support Maintenance, Applications, and Statements

Declining Balance: Functionality Available 1

2

3

4

5


Coverage:• Lodged, Central Billing account available globally• Virtual Card Accounts available in ~40 markets• Matching/reconciliation based on regional/local

capabilities

Enhanced Data:• Data integration with top TMCs• Client custom data supported (e.g., invoice, VAT)

Travel Spend Categories:• Air, Agency Travel Fees, Rail (select markets)

Reporting and Reconciliation:• Enhanced CTA statement• CTA Management Reports (CCRS)• Enhanced data files

Employee and Non-Employee Travel:• Streamline travel processes for employees

and non-employees / external consultants

Credit Limit Controls:• Allows companies to maintain lower credit

limits on individual corporate cards by moving large ticket air transactions to CTA

Reporting and Analysis:• Captures enhanced data• Reduces data reconciliation between TMC

and Accounts Payable departments• Allows companies to monitor employees'

compliance with travel policies

Product Benefits

Central Travel Account Citi’s Central Travel Account (CTA) Product is a centrally-billed corporate account ‘lodged’ at a your TMC designed to help streamline and control travel-related expenses.

$


M&E Product: Traditional Plastic & VCA for M&EM&E spend exceeds $500 billion annually, ~1% of an organization’s total revenue, yet only ~60% of organizations with “best practice” M&E programs use meeting cards and strategic meetings programs.

• Traditional “plastic” Accounts and Virtual Card Accounts (VCA)

• “Declining Balance” by market

• Central Bill/Central Pay programs with Individual statement

• Core global capabilities include MCC controls, fraud management, digital access, 24x7 support, 29 languages

Citi Offering

• Cvent: leading global event management technology software company• Citi: leading global payments provider with the largest Virtual Card Account footprint• Together: Citi Virtual Card Accounts and traditional cards are integrated into the Cvent tool to

support vendor payment directly from the Cvent system. Post payment, joint clients can view, reconcile, and analyze all Meetings & Events data – from transactional and financial to planning –within the Cvent tool.

• Benefits: Simplifies budgeting, payment, reconciliation, and management. Supports permissions-based entitlement, spending controls, enhanced data, and consolidated reporting for meetings management and financial control.

Cvent Proprietary Integration

• Citi Custom Reporting System (CCRS)

• Citi GCMS Allocations Tool

• Citi Online Statements

• Data file feeds sent to EMS Providers and ERP / PO Systems or other client systems

Reporting, Data Analytics, File Feeds

• Simplify reconciliation

• Gain complete visibility into all spend

• Provide 1 Card per meeting with standard MCC controls; use VCA for more robust controls

• Use Citi Alerts, such as High Value Transaction, to be notified when large transactions are processed

Benefits

Note: Quality of data matched to Citi financials dependent on data quality / validations done by TMC before sending to Citi for appending to financial records.


Citi Virtual Card Accounts OverviewClients can gain financial benefits, process improvements, and greater security & control by leveraging Citi Virtual Card Accounts (VCA) for supplier payments.

Virtual Card Numbers (VCNs)

Increased Transaction-

Level Control

Enhanced Client-

Supplied Data

Three Interface Options

Virtual Card Numbers (VCNs)• Unique, non-plastic account numbers used for secure

purchasing• Secure VCN can be delivered via encrypted email to

suppliers

Increased Transaction-Level Control• Define authorization controls for each VCN:

− Number of transactions (single- or multi- use)− Transaction amount limit (exact, maximum)− Validity Period & more

Enhanced Client-Supplied Data• Capture client-specified data elements with each VCN

for enriched data analysis, allocation, and reconciliation

Three Interface Options• Request website with customizable approval workflows• Batch File Interface• Real-time API


VCA for TravelCiti’s VCA for Travel supports a number of use cases related to Low-Cost Carrier (LCC) Central Bookings and Hotel Bill-Backs.

Interviewee TravelEmployees without Cards/with Cards but Using LCCs

Consultants/Contractors without

Cards

Employee Meeting/Conference Attendance

Infrequent Travellers Relocation Travel

Distressed/Stranded Traveller

Reward/Incentive Travel

Group Trainings

Facility Inspections/Tours and Site Visits

Location Visits/Ad Campaign Shoots

Recruiting Events

Primary Use Cases Secondary Use Cases

VCA for Travel


Virtual Cards for Accounts PayableVirtual Cards present an opportunity to generate revenue from making supplier payments; while leveraging existing systems, policies and procedures for other batch file payments such as ACH and Check.

1. Existing approval and A/P process

Citi VCA

2. Payment Instruction File

5. File delivery & reconciliation

Supplier

3. Payment and remittance sent

ERP Citi GDR

4. Controlled transaction

authorization process

Invoices

Process Summary

1. Existing approval and A/P process: After purchase order sent to supplier, Client receives and approves invoice

2. Client sends payment instruction file to Citi, specifying invoices, amounts to be paid, and controls to apply

3. Supplier receives payment and remittance information via secure email

4. Transaction data processed through credit card network, with transaction-level controls enforced

5. Buyer receives transaction file/report for reconciliation

Response file Card Network


VCA Process Flow


Citi Program Management Tools


CitiManager

Program Management

Cardholder Management

CitiManagerwith single sign-on

Program Maintenance

• Real-time Program Updates / Changes, including hierarchy

transfers

• Online Application (OLA) Processing

• Admin Users -Entitlement based

access that is secure & compliant

Financial Management

• P-Card/Travel Card Transaction

reallocation module

• View statements, recent activity, and

credit / balance information via

CitiManager Mobile

Secure File Sharing

• File sharing for large and sensitive documents

• Folder based file delivery for intuitive storage and access.

Reporting and Data Mining

• Scheduled & Ad-hoc reporting

• Graphical Program Dashboard Summary

Reports

• Optional Program Audit Tool (PAT)

• 36 months of historical data available

Online Training

• Trainings offered on all aspects of card

program

• Tools and demos to assist with using

CitiManager

• Live instructor lead trainings, Online

modules and quick reference guides


22

What is Available

CitiManager: Cardholder OverviewCitiManager provides cardholders with a high level overview of their account details, including available current balance, available credit, and next payment due date.

• Home shows a snapshot of cardholder’s account activity and company messages

• My Card Account shows pending requests associated with the cardholder’s account and allows updates to contact details

• Statement shows current and past statements for view, download, or print

• Payment (optional on TE Cards) allows cardholders to make or delete payments as well as view past payments

• My Profile allows cardholders to enroll in Citi Alerts, update their user preferences and profile, reset challenge questions, and change their password

• Resources shares site messages, and provides access to site user guides and FAQs


CitiManager: Online Maintenance

What is Available

• There are over 150 fields in CitiManager that can be updated online

• Program Administrators have the ability to change cardholder credit limits in real time and add temp date based credit limits.

• Cardholders can update their contact details online, in real time

CitiManager Online Maintenance (OLM) allows updates to account profile information and ability to manage cardholder credit limit, charging rights, and account status


CitiManager: Global Card Management System (GCMS)

Quick Facts

• GCMS solution:

• Offers auto-reallocation capability

• Provides an extensive transaction review and work-flow approval process

• Provides level three data

• Offers integrated transaction reallocationcapability supported by file uploads from client ERP systems

• Is capable of receipt imaging

Assign ExpensesSplit expenses Upload ReceiptsApprove

Transactions

GCMS is Citi’s transaction management module that assists users in reconciling card transactions through optional work flow approvals and export into your organization’s accounting system.


Citi Custom Reporting System: Robust Reporting & VisibilityCiti’s reporting continuum provides depth of data, available based on controlled reporting hierarchy, and commensurate with user role or need

• High-level graphic summary of your program, viewable through multiple dimensions with drill-down functionality.

• Five unique dashboard reports highlight program performance and vendor & transaction information

Dashboards

• Users can modify existing standard report templates to suit their individual business requirements.

• Frequently used standard reports include Account Statement Report, Daily Transaction Summary Report, and Merchant Detail Report.

Standard and Shared Reports

• Custom reports can be generated from over 800 data elements, including level III and enhanced folio data.

• Reports can be saved and run automatically.• Access to more advanced functionality, such as sub-totaling columns and on-the-fly

charting capabilities.

Ad Hoc Reporting

• Parameter driven rules flag accounts and transactions identified as noncompliant with internal policy.

• Enhances program auditing, improves compliance, prevents card misuse and reduces fraud.

• 13 standard audit reports with 35 customizable parameters.

Program Audit Tool


Program Controls and Card SecurityEnsure account use falls within your defined program parameters to maintain policy compliance and mitigate fraud.

• Reporting and management tools for monitoring monthly card usage • Profile transactions and automatically flagging exceptions• Data mining functionality to support enhanced control• Exception management and ad hoc audit reporting

• Our expertise has lead to fraud rates that are less than half of the Industry average• Dynamic fraud monitoring of every transaction• Fraud Early Warning specialists proactively supporting cardholders• Deployment of Chip and Pin and “3D Secure” technologies

• Capability to set company, department and cardholder level restrictions, including:• Transaction value limits• Account spending limits• Velocity transaction limits• Merchant Category Code (MCC) parameters for T&E and P-card profiles

LIMITS AND CONTROLS

FRAUD MANAGEMENT

PROGRAM AUDIT TOOL


SMS and Email Alerts With over 30 email and SMS alerts to choose from, cardholders and PAs can elect to receive important account information directly to their designated smartphone for immediate action.

Declined Transaction Alert informing the cardholder of a declined transaction with an associated reason for the same

Statement Ready Receive notification when your statement is available to be viewed on CitiManager

Payment Due Receive notification when there are 30 days before payment is due on your account

Payment Received Receive notification when your payment has been received

Payment Past Due Receive notification on your statement due date if payment hasn’t been received

Replacement Card Notice Receive notification when your new card has been mailed out

Fraud Management1 Notification of potential fraudulent transaction

Dispute Resolution1Receive notification once dispute is resolved, stating if account was debited or credited per the decision of the dispute resolution

Convenience

Timeliness

Efficiency

Flexible Emails are sent 24/7. SMS is sent from 8am to 9pm local time. Local time is determined by the area code associated with what is listed as their home phone.

1 North America Only, Implementation GloballyPrivate and Confidential

Citi Client Support


Service Support: Your Commercial Card Client Delivery TeamA seasoned group of professionals that service our clients and their cardholders with distinction.

• Main Client Servicing Site: Jacksonville, Florida

• Employees: 200 associates

• Average Tenure: ~ 9 years

• Leadership Team Experience: ~15 Years

Technology

Training

Product Management

Solution Consultants

Client Operations

Account Managers• Strategic partner and advisor to support

program roll-out and optimization

• Global / Regional Staffing

• Program Growth, Vendor Match, Best Practices

Program Strategy

Client Account Services (CAS)• Primary point of day-to-day operational

accountability and reporting

• Global / Regional Staffing

Program Administration

Customer Service• Cardholder inquiries, servicing and support

• Citi-managed staff dedicated to Commercial Cards

• Regional/ Local Staffing

Cardholder Support

Support Groups

Account Management and Support


On-line/Web-based tool helpdesk Password resets

Toll free call or emailNavigation of

functionality of web tools

Statement and reporting assistance

Availability 5:00am to 8:00pm CT

2 3

4 5

1

6

Help Desk


Implementation – Working Together to Ensure SuccessA dedicated and experienced Citi team works closely with the client team to deliver a seamless, timely implementation.

Citi Implementation Team Client Team

Project Leader• Key liaison with Citi

project team

• Communicate and manage client priorities and project team communication and coordination

Program Manager• Ensure alignment with

strategy and goals

• Advise hierarchy and entitlements for program setup and access

• Work with Citi to create scheduled reports for program management ease

Global / Regional Implementation Manager• Oversee project at their

respective levels

Project Manager• Documentation of project

• Management of project plan, issues log, and meeting coordination forthe collective project team

Technical Implementation Manager• Technical expertise

• Integration, data andfile delivery specialists positioned to partner with your technical resources

Trainer• Education and training

• Coordination, development and delivery approach to provide optimaltransition experience

IT / Integration Leader• Ensure seamless

Integration• Manage file delivery

testing between Citi client systems

Treasury/ Accounts Payable Team• Ensure streamlined

payment to bank for cardholder purchases

• Support integration of virtual/supplier accounts for supplier card payments


IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used orrelied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction").Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.

Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment or firm offer and does notobligate us to enter into such a commitment, nor are we acting as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to keep confidential the information contained herein andthe existence of and proposed terms for any Transaction.

We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number.We may also request corporate formation documents, or other forms of identification, to verify information provided.[TRADEMARK SIGNOFF: add the appropriate signoff for the relevant legal vehicle]

© 2019 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

© 2019 Citibank, N.A. London. Authorised and regulated by the Office of the Comptroller of the Currency (USA) and authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authorityand limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. All rights reserved. Citi and Citi and Arc Designare trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world

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