September 10, 2009 - COLUMBUS -Chancellor Eric D. Fingerhut today announced that the University System of Ohio has selected J.P. Morgan to provide purchasing card services for member institutions. The five-year agreement will help improve cash management, streamline procurement processes, and eliminate costs associated with expensive manual paper-based processes. The agreement is another step in the continued effort to create and improve efficiencies within the University System of Ohio as outlined in the 10-year Strategic Plan for Higher Education.
The unprecedented agreement leverages the group purchasing power of all 14 Ohio public universities and 23 community colleges. Currently, members spend some $250 million a year using purchasing cards. By adding more universities and colleges to a single purchasing card program and working with J.P. Morgan to expand the number of vendors that accept card purchases, the University System of Ohio will greatly reduce the time and costs associated with managing high-volume, low-dollar purchases. Studies show that using purchasing cards can save schools an average of $110 per transaction and reduce procure-to-pay time by six days.
Although some schools within the System currently have independent purchasing card agreements with various vendors, an aggregate agreement demonstrating increased cost-savings was coordinated by the Inter-University Council of Ohio (IUC) - the educational association of Ohio's public universities.
"The University System of Ohio is finding more opportunities to be efficient every day," said Chancellor Eric D. Fingerhut. "I applaud the IUC's Purchasing Group and the procurement staff at Ohio University for leading this effort that will help the University System focus its resources on serving students."
The University System of Ohio will significantly improve spending control and visibility by using J.P. Morgan's online PaymentNet® management tool which provides account administrators with the ability to monitor card usage in real-time, pre-assign and modify spending limits, reconcile transactions with the university's financial reporting system, and quickly run more than 70 detailed transaction reports, such as vendor analysis, unusual activity analysis, travel or catering spending, and delinquency reports. Cardholders within the System can also monitor their transactions online, allowing improved oversight of departmental budgets.
An aggregated purchasing process enables department heads to spend less time authorizing, tracking and processing purchase data. In addition, financial administrators will be able to reduce overhead significantly, minimize administrative tasks and allow staff to focus on other responsibilities, as well as improve payment flexibility.
"By collaborating on this project, we are able to become more efficient, which in turn can result in less pressure to raise tuition," said Bruce Johnson, President of the IUC.
There are currently 8,700 cardholders within the University System of Ohio. Eight schools are currently contracted with J.P. Morgan, which will allow for a more rapid deployment and immediate member savings under the aggregate purchasing plan. The purchasing cards facilitate the purchase of items valued under $1,500 without the need to use petty cash, purchase orders or out-of-pocket funds. In addition, substantial use of the purchasing cards for travel-related services that all colleges and universities incur on a routine basis is anticipated.
"All schools have tight operating budgets these days and there is pressure to spend every dollar properly," said Eduardo Vergara, Global Commercial Card Executive, J.P. Morgan. "No matter the size of your school or the amount of your budget, a purchasing card program could fit with your procurement goals and - moreover - help you achieve the bigger benefits of time and cost savings. The key is having the right partner and online technology to help you better manage day-to-day operations."
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About the University System of Ohio
The University System of Ohio is the most comprehensive public system of higher education in the nation, consisting of 14 public universities, 24 regional university branch campuses, 23 community colleges, and an adult education network with more than 120 adult workforce centers and training programs around Ohio. For more information, visit www.uso.edu
About The Inter-University Council of Ohio
The Inter-University Council of Ohio (IUC) was established in 1939 as a voluntary educational association of Ohio's public universities. Today the association represents Ohio's 14 public universities. Together, these institutions offer a broad range of associate, baccalaureate, graduate, and professional programs. The association's purpose is to facilitate the development of common interest and concern of its members and to assist in sustaining and improving the quality of public higher education. IUC also engages in public relations, research and government liaison work on behalf of its members.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan, Chase, and WaMu brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com
John T. Murray III | Vice President, Corporate Communications | J.P. Morgan Treasury Services
1-571-934-2808 | john.t.murray@jpmorgan.com
