The Welsh Procurement Card at Aberystwyth University

WELSH PURCHASING CARD (WPC) What is a Purchasing Card? A Charge Card that is: Issued to Individuals Belongs to and is charged to the Organisation Like a Credit Card But with More Control

WELSH PURCHASING CARD (WPC) Why use Purchasing Cards? Because they provide an efficient ordering and payment mechanism for low risk procurement Because they save time and effort Because 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

The Paperchase Process NEGOTIATION & ORDER REQUISITION Purchasing/ Supplies GOODS GOODS Supplier Employee COPY OF PURCHASE ORDER REQUEST FOR AUTHORISATION INVOICE CHEQUE AUTHORISED PAYMENT Bank INTERNAL BUDGET REPORT Manager STATEMENT FOR RECONCILIATION Finance

The Purchasing Card Process ORDER Supplier RECEIVE GOODS/SERVICES Employee RECORD ON LOG

The Streamlined Process Once a Month Supplier Employee STATEMENT FOR RECONCILIATION STATEMENTS & MIS RBS Bank Card Administrator

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.

WELSH PURCHASING CARD (WPC) What are the Controls? Transaction Limit Monthly (credit) Limit Merchant Category Group (MCG) Blocking Visibility Laying down the Rules !

MERCHANT CATEGORY GROUPS 1 Building Services 2 Building Materials 3 Estate & Garden Services 4 Utilities & Non-Auto Fuel 5 Telecommunication Services 6 Catering & Catering Supplies 7 Cleaning Services & Supplies 8 Training & Educational 9 Medical Supplies & Services 10 Staff - Temporary Recruitment 11 Business Clothing & Footwear 12 Mail Order/Direct Selling 13 Personal Services 14 Freight & Storage 15 Professional Services 16 Financial Services 17 Clubs/Associations/Organisations 18 Statutory Bodies 19 Office Stationery and Equipment 20 Computer Equipment & Services 21 Printing & Advertising 22 Books & Periodicals

MERCHANT CATEGORY GROUPS 23 Mail & Courier Services 24 Miscellaneous Industrial/Commercial Supplies 25 Vehicles, Servicing & Spares 26 Automotive Fuel 27 Travel 28 Auto Rental 29 Hotels & Accommodation 30 Restaurants & Bars 31 General Retail & Wholesale 32 Leisure Activities 33 Miscellaneous 34 Cash

WELSH PURCHASING CARD (WPC) What can be bought with Purchasing Cards ? Anything! As long as it is legitimate use of public money

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, etc Transactions recorded on Log Reconciliation against Bank record Online Transactions approved and coded Online Exported and Posted electronically to General Ledger

WELSH PURCHASING CARD (WPC) VAT & Levels of Supplier Capability Level I - “Tesco” Level II - Summary VAT & Customer Reference Number Level III - Full VAT (Line Item Detail)

FRAUDULENT USE! Corporate Liability Waiver of - £50K per Card per Annum - £1.5M per Annum for the University Lost/Stolen Cards -Organisation’s liability limited to £25 for illegal use

WELSH PURCHASING CARD (WPC) Reconciliation Transaction data is available on a continuous basis 24 - 48 hours after posting. Can be viewed by any authorised person using Smartdata Online. Typically reviewed by Cardholder and authorised by Manager.

WELSH PURCHASING CARD (WPC) Reporting/GL Export File Created 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.

WELSH PURCHASING CARD (WPC) Smart Data On Line Authority based Online Reporting Tool for: Cardholders/Managers/Supervisors/Administrators Data consolidation, coding and reporting Web based application = 24/7 access to transactions Error free integration and presentation of transaction data to: Review / Approve Add detail Cost Allocate and split transactions Report and Export to General Ledger, etc