Monsanto Cracks Down On Card Delinquencies

Agriculture technology supplier Monsanto Co. is cracking down on corporate card fraud and delinquency as it rolls out a global one-card program through tighter controls, improved communication and training for employees and increased involvement of upper management.

Team leader for expense management production support Staci Leap, who focuses on the card program and expense reporting, and compliance and control team leader Tamara Khan share the ongoing task at the St. Louis-based company. Their global responsibilities expanded from the Americas about 10 months ago, and they currently are moving their cardholders to a one-card that combines travel and purchasing capabilities. They also are conducting a global rollout of Concur's expense reporting tool, with 27 countries expected to be using it by year-end.

Through robust reporting and controls, Monsanto has been able to drive down delinquencies considerably, from 30 percent to almost none, Khan said. The company pays card charges directly to the bank based on submission of expense reports, so it's been a critical task for Monsanto.

"We've found that our cardholders don't want to do things wrong. They want to do right," Leap said. "They don't always realize the requirements of their responsibilities."

Leap and Khan create monthly dashboards with key metrics, statuses and issues for senior management review, and the two meet regularly to discuss spending trends and potential violations. Cardholders are notified of delinquencies at the 30-day mark, and, after 60 days, managers are notified, the card is suspended and the traveler incurs a delinquency fee that must be paid out of pocket, Khan said. In addition, Monsanto compiles a list of those who are frequently submit late expense reports as well as those who have received audits.

"Our repeat offender database has been a success for us," Khan said. "It will allow us to segment the groups that need further training in the card programs."

Through training, Monsanto has been better able to communicate its 27-page corporate control policy to its cardholders. The team created a condensed version of the policy to notify travelers better of key points and updates, Leap said. The strategy has been to focus training to a broader focus than just the expense tool, highlighting the responsibilities specifically around the card.

As the program is rolled out globally, the same standards have had similar effects on delinquencies worldwide.

In addition, Concur's tool allows Monsanto to analyze data in order to audit duplicate expenses when travelers hand-key items instead of using prepopulated data, Khan said. The team already has caught about $50,000 in duplicate expenses, she said.