Presentation on theme: "The Welsh Procurement Card at Aberystwyth University"— Presentation transcript:
1 The Welsh Procurement Card at Aberystwyth University
2 WELSH PURCHASING CARD (WPC) What is a Purchasing Card?A Charge Card that is:Issued to IndividualsBelongs to and is charged to the OrganisationLike a Credit CardBut with More Control
3 WELSH PURCHASING CARD (WPC) Why use Purchasing Cards?Because they provide an efficient ordering and payment mechanism for low risk procurementBecause they save time and effortBecause they allow those with the need to satisfy that need without the intervention of others (one-to-one)Because they can increase the visibility of what has been bought and provide enhanced management information
4 The Paperchase Process NEGOTIATION & ORDERREQUISITIONPurchasing/SuppliesGOODSGOODSSupplierEmployeeCOPY OFPURCHASEORDERREQUESTFORAUTHORISATIONINVOICECHEQUEAUTHORISEDPAYMENTBankINTERNALBUDGETREPORTManagerSTATEMENT FORRECONCILIATIONFinance
5 The Purchasing Card Process ORDERSupplierRECEIVE GOODS/SERVICESEmployeeRECORD ON LOG
6 The Streamlined Process Once a MonthSupplierEmployeeSTATEMENT FOR RECONCILIATIONSTATEMENTS & MISRBS BankCard Administrator
7 WELSH PURCHASING CARD (WPC) Risks?Procurement Cards can help organisations to empower staff to obtain the goods and services they need to do their jobs with the minimum of bureaucracy.That empowerment requires trust but with trust comes responsibility.
8 WELSH PURCHASING CARD (WPC) What are the Controls?Transaction LimitMonthly (credit) LimitMerchant Category Group (MCG) BlockingVisibilityLaying down the Rules !
9 MERCHANT CATEGORY GROUPS 1 Building Services2 Building Materials3 Estate & Garden Services4 Utilities & Non-Auto Fuel5 Telecommunication Services6 Catering & Catering Supplies7 Cleaning Services & Supplies8 Training & Educational9 Medical Supplies & Services10 Staff - Temporary Recruitment11 Business Clothing & Footwear12 Mail Order/Direct Selling13 Personal Services14 Freight & Storage15 Professional Services16 Financial Services17 Clubs/Associations/Organisations18 Statutory Bodies19 Office Stationery and Equipment20 Computer Equipment & Services21 Printing & Advertising22 Books & Periodicals
10 MERCHANT CATEGORY GROUPS 23 Mail & Courier Services24 Miscellaneous Industrial/Commercial Supplies25 Vehicles, Servicing & Spares26 Automotive Fuel27 Travel28 Auto Rental29 Hotels & Accommodation30 Restaurants & Bars31 General Retail & Wholesale32 Leisure Activities33 Miscellaneous34 Cash
11 WELSH PURCHASING CARD (WPC) What can be bought with Purchasing Cards ?Anything!As long as it is legitimate use of public money
12 WELSH PURCHASING CARD (WPC) How do Purchasing Cards work?Issued to individual members of staff(May also be held by supplier)Purchases made face-to-face or by fax, phone, on-line, etcTransactions recorded on LogReconciliation against Bank record OnlineTransactions approved and coded OnlineExported and Posted electronically to General Ledger
13 WELSH PURCHASING CARD (WPC) VAT & Levels of Supplier CapabilityLevel I - “Tesco”Level II - Summary VAT & Customer Reference NumberLevel III - Full VAT (Line Item Detail)
14 FRAUDULENT USE! Corporate Liability Waiver of - £50K per Card per Annum- £1.5M per Annum for the UniversityLost/Stolen Cards -Organisation’s liability limited to £25 for illegal use
15 WELSH PURCHASING CARD (WPC) ReconciliationTransaction data is available on a continuous basis hours after posting.Can be viewed by any authorised person using Smartdata Online.Typically reviewed by Cardholder and authorised by Manager.
16 WELSH PURCHASING CARD (WPC) Reporting/GL Export FileCreated specifically for the University to suit requirements for import into GL.19 system default reports.Reports can be created/run by any authorised person.All reports/exports can be scheduled to run on a periodic basis.
17 WELSH PURCHASING CARD (WPC) Smart Data On LineAuthority based Online Reporting Tool for:Cardholders/Managers/Supervisors/AdministratorsData consolidation, coding and reportingWeb based application = 24/7 access to transactionsError free integration and presentation of transaction data to:Review / ApproveAdd detailCost Allocate and split transactionsReport and Export to General Ledger, etc