The Welsh Procurement Card at Aberystwyth University

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The Welsh Procurement Card at Aberystwyth
University
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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

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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

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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
STATEMENT FOR RECONCILIATION
Manager
Finance
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The Purchasing Card Process
ORDER
Supplier
RECEIVE GOODS/SERVICES
Employee
RECORD ON LOG
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The Streamlined Process
Once a Month
Supplier
Employee
STATEMENT FOR RECONCILIATION
STATEMENTS MIS
RBS Bank
Card Administrator
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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.
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WELSH PURCHASING CARD (WPC)
What are the Controls?

• Transaction Limit
• Monthly (credit) Limit
• Merchant Category Group (MCG) Blocking
• Visibility

• Laying down the Rules !

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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

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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

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WELSH PURCHASING CARD (WPC)
What can be bought with Purchasing Cards ?

• Anything!

As long as it is legitimate use of public money
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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

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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)

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FRAUDULENT USE!

• Corporate Liability Waiver of
• - 50K per Card per Annum
• - 1.5M per Annum for the University
• Lost/Stolen Cards -Organisations liability
  limited to 25 for illegal use

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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.

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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.

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WELSH PURCHASING CARD (WPC)
Smart Data On Line

• Authority based Online Reporting Tool for
• Cardholders/Managers/Supervisors/Administrat
  ors
• 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