Implementing a Purchase Card System

1
Implementing a Purchase Card System

• Angela Kirby
• Coventry City Council

2
Background

• Began implementing Oracle iProcurement
  (electronic purchase order system) in 2003
• Purchasing cards were rolled out as a
  complementary purchasing tool (but not integrated
  to iProcurement)
• Roll out undertaken directorate by directorate to
  give structure to the project
• Approx 1,000 live cards at the moment

3
Purchase Card Strategy

• Purchasing Cards used where iProcurement isnt
  practical. e.g.
• Rail and air travel
• Petty cash purchases
• Subscriptions/training courses
• Food Purchases
• Internet purchases

4
Purchase Card Strategy

• Purchasers are directed to use the cards for low
  value, high volume purchases
• Not restricted to budget holders/managers
• We have found that admin/clerical staff make the
  best use of cards and produce the best
  efficiencies

5
Resources

• Realise that this will need some resource to
  promote, manage and administrate the programme
  especially ongoing
• At the beginning we had input from Procurement,
  Finance and Audit to compile the processes and
  guidance notes
• Approx ¾ post to manage our programme

6
Changing the culture within the organisation

• There may be resistance to the introduction of
  cards some people are uncomfortable with them
• Can be seen as an easy way to spend money it
  is!!
• Need to convince Senior Managers that card
  holders wont go on a spending spree
• Need to convince card holders that this is just
  an alternative purchasing tool

7
Training

• All card holders trained before receiving their
  card
• They are given verbal and written instructions on
  what they can use the card for etc
• Shown how to use the purchase card system
• Card holder signs for the card and that they
  accept the conditions under which it is issued

8
Approving transactions

• All approvals are now done on line via the
  purchase card system
• Card holders review their transactions, calculate
  the VAT (if applicable) and revise the cost
  centre (if applicable)
• Approver (usually line manager) then approves the
  transaction
• All bank statements/transaction logs/receipts
  collected centrally for retention

9
Controls

• Transaction and monthly limits
• Only give access to limits appropriate to the
  business needs
• Access to categories
• Kitchen staff only have access to grocery/food
  type categories
• Building Services staff only have access to
  building materials type categories

10
Monitoring

• We monitor card usage monthly from the
  transaction reports
• Particularly look for compliance with corporate
  contracts
• Users are contacted directly where there may be
  an issue

11
Any Questions