BFC Government Procurement Card Requirements

Transcription

1 BFC Procurement Card for Schools H:\Finance\Procurement Cards\BFC Procurement Card Procedures Sept 2012 v2.doc Introduction and overview 1. The BFC Government Procurement Card (GPC) is a purchasing card. 2. It is similar to personal debit cards and can be used as an alternative method of payment to the local bank account for the procurement of goods and services and travel and subsistence costs, including online and telephone ordering. 3. The GPC operates in the same manner as a normal debit card and is issued to a named individual with both an individual transaction and a monthly expenditure limit. 4. Cards need to be signed for by a duly authorised member of school staff and collected from BFC Corporate Services. 5. Each card holder receives a monthly statement for which they are accountable for. 6. All cards are Chip and PIN enabled. 7. There are no credit facilities and balances shown on the statement are automatically charged in full each month to the school s local bank account. 8. There is no facility to withdraw cash. Schools can continue to use their petty cash resources if required. 9. Schools must ensure that detailed internal processes and procedures are in place that cover the operation of the GPC programme, in keeping with BFC finance and procurement policies and procedures. These should be reviewed regularly and will be subject to inspection as part of the normal internal audit review process. 10. Card holders must not use the GPC for transactions other than those in connection with authorised school activities. 11. In order for the proper operation of the GPC programme, and the maintenance of robust records, there is likely to be a need for additional financial administration time. This will vary between schools, and is estimated at 1 day per month in a secondary school. There may be offsetting reductions associated with existing payment arrangements as these will reduce where the GPC programme is used. Actions required prior to issue of cards 12. Required card holders need to be identified by the school (Headteacher). 13. Clear, documented delegations need to be agreed by governors for each card holder over spending limits and types of goods and services that can be purchased by each card holder. Annex 1 provides a model template that can be used for this purpose. This is available separately as an Excel spread sheet (Governors). 14. School to ensure expenses policy complete and up to date (Bursar). The BFC policy can be viewed at Relevant application forms to be completed and returned to Corporate Finance (Bursar). 1

2 Procedures 16. Formal written procedures need to be produced and adhered to by schools. A model note is attached at Annex 2 that can be used for this purpose. This may need to be adapted to each school s requirements, but any changes must retain the basic controls and requirements of the GPC programme and the Council s procurement policies and procedures. 17. Guidance relating to accounting for the GPC programme in FMS is set out below in paragraphs 32 to The school procedures for the issue of and administrative arrangements for use of Procurement cards and the individual financial limits and their compliance to operational requirements need to be reviewed by the appropriate committee of the governing body on an annual basis. This review should also take into account the usage made by individual card holders for their ongoing need. 19. Authorisers will be required in school for each card holder (Headteacher or chair of governors in absence). Certification is also required that all transactions on each statement are appropriate and conform to card conditions and school policies (Card holder) 20. Internal controls need to be established over tracking orders placed by cardholders (commitments) and that sufficient budget exists prior to placing orders. Annex 3 sets out a model transaction log. This is available separately as an Excel spread sheet. Contact for further information and advice 21. The operation of the GPC including application forms: Nigel Lynch nigel.lynch@bracknellforest.gov.uk 22. For advice on internal school operations and accounting requirements: Dominic Flannigan dominic.flannigan@bracknellforest.gov.uk October

3 Bracknell Forest Borough Council Register of Authority for use of School Procurement Card This form is to be used to record details of staff with authority to use a BFC procurement card and to enter into expenditure commitments in accordance with the Contract and Procurement regulations, on behalf of the school. Annex 1 Authority for: School: Date agreed by Governors:.. Committee Making Decision:. Example: Name Position Signature (To confirm agreement of card holder to comply with the terms and conditions of card issue) Restrictions to the specific nature of goods and or services applicable. Maximum individual transaction value Monthly expenditure limit A Teacher Head of ICT IT goods and services 750 2,500 Expenses relating to official school business

4 MODEL PROCEDURES FOR SCHOOL USE OF BFC PROCUREMENT CARDS Introduction Annex 2 1. Certain individuals within the school have been issued with BFC Procurement Cards. They are: Add job title and name. Add job title and name. If required, the school may wish to issue the Bursar with a card to place orders on behalf of others. In particular, see section on auction site purchases below. 2. The Bursar / named card user will be responsible for collecting the card from BFC Corporate Services. 3. The following notes contain guidance for members of staff who wish to make online purchases, or other purchases which need to be paid for using a procurement card. 4. Staff must not use personal credit cards for any transactions; personal credit card transactions will not be recognised as a school liability. 5. Misuse of the BFC Procurement cards will be considered a disciplinary offence and will be subject to the provisions within the Governors policy on Staff Discipline and Grievance. 6. Either: Online purchases Card holders can make online purchases in accordance with the terms and conditions of card issue. Details of each purchase must be transferred to the monthly transaction log together with the receipt / copy order and forwarded to the Bursar for FMS update. Card holders are responsible for ensuring there is sufficient budget to fund any purchases before they place an order. Online purchases can only be completed on websites that have a secure payments area, which is activated before card details are entered. Or: Online purchases can be arranged by ing the Bursar with the link to the website with details of the items to be purchased. The Bursar will enter the order on FMS to record the commitment against the appropriate department. The Bursar will then complete the purchase using the Procurement Card, provided sufficient budget exists. Online purchases will only be completed on websites that have a secure payments area, which is activated before card details are entered 7. Normal purchasing procedures, as set out in the Financial Procedures section of the Staff Handbook, will apply. This includes the requirement to obtain X written quotations for orders over YYY. 4

5 Use of online auction sites (e.g. ebay) 8. Purchasing from online auction sites will be permitted under the following conditions: The Headteacher s authorisation must be obtained in advance, who will set a limit on the amount which may be bid. The member of staff requesting the purchase must demonstrate to the satisfaction of the Bursar and the Headteacher that the item is unavailable elsewhere, or they can obtain the goods at a price at least 33% below that at which they would be able to buy them elsewhere. The amount bid must not exceed the limit set by the Headteacher. Purchases may only be made from a trader with a minimum feedback score of over 10, and with a 98% or higher positive feedback result. Purchases must be made using the School s ebay account, details of which are available from the Bursar. If any of these conditions are not adhered to, the transaction may not be recognised as a school liability. 9. If a member of staff bids successfully for an item, they must send an to the vendor to inform them that it is a school purchase and that payment will be made on the next working day. They must then pass the details to the Bursar promptly for settlement using the Procurement Card Requirements on Cardholders 11. Cardholders must comply with the conditions of use set by the issuing bank and by Corporate Finance, both of which they will receive when they apply for a card. The conditions set out in this document are additional to the above. 12. Cards are provided to named Cardholders and are not transferable. Upon receipt the Cardholder must memorise and destroy the PIN in confidential waste. When the card is in use the Cardholder should retain the card on their person at all times, and never leave it unattended. When the GPC card is not in use, it must be locked in a secure place and should only be accessed by the Cardholder. 13. Individual transaction limits and overall credit limits will be set by governors on advice of the Headteacher and the Bursar. 14. Restrictions on the type of goods which may be purchased on each individual card will be set by governors on advice of the Headteacher and the Bursar. 15. Cards may not be used for withdrawing petty cash. Any petty cash required must be requested from the Bursar. [May need to set up a petty cash account if not one in place]. Neither can cards be used for non business related expenses or personal items. 16. Cardholders may not use personal loyalty cards (e.g. Nectar, Clubcard etc) in conjunction with the card. If any such use is made, it will give rise to a taxable benefit in kind which the individual will be liable for. 5

6 17. When using an internet purchasing site, the user must delete the credit card details on completion of every transaction. 18. Online purchases can only be completed on websites that have a secure payments area, which is activated before card details are entered. 19. Card users are responsible for keeping receipts for any purchases made using the card. All transactions on the receipt must be allowable purchases; it is not acceptable to make any personal purchases using the card, even if reimbursement is made to the school. 20. On receipt of the statement each month, the cardholder must match each transaction to a receipt and attach the receipt to the statement. If a receipt is missing, the cardholder may be liable to reimburse the school for that transaction. The statement and receipts must all be passed to the Bursar. 21. The Bursar will check that all the transactions are valid and supported by receipts, and will then code the transactions on a transactions log for posting onto Agresso. The completed transactions log will be returned to the cardholder for signature to confirm that all the purchases were for the business purposes of the School. The documents will then be passed to the [A N Other where practical] for checking before the cash journal voucher is passed to the Headteacher for approval. 22. If a card is lost or stolen the cardholder must contact the Bank as soon as possible to notify them of the loss or theft. They must also notify the Bursar as soon as possible and in any event within five days of contacting the Bank. The Bank can be contacted on: (from the UK) (from overseas) 23. If unauthorised use is made of the card, the cardholder must notify the Bank immediately. They must also notify the Council and the Bursar. 24. If the cardholder leaves the School s employment they must return their card to the Bursar. 6

7 ADMINISTRATION OF BFC PROCUREMENT CARDS Issue and Administration of cards 25. The issue of BFC Procurement cards and the financial limits set on their use must be approved by the relevant committee of governors. The School procedures for the issue and use of BFC Procurement cards and the individual financial limits will be reviewed by the relevant committee of governors on an annual basis. 26. The Bursar will provide new users with the following documentation: Lloyds TSB Cardholder Application BFC Purchase Card Request Form Government Purchase Card Conditions of Use School Procedures 27. The cardholder should complete the BFC Purchase Card Request Form and Page 1 of the Lloyds TSB Purchasing Card Cardholder application and return both documents to the Bursar along with the signed Acceptance and Undertaking on Page 1 of the Government Purchase Card Conditions for Schools. The cardholder should retain the other pages of the Conditions of Use for future reference. 28. On receipt of a completed application, the Bursar should check details fro completeness and accuracy and then forward the verified documents to Education Finance. 29. The Bursar will be responsible for updating these procedures as necessary and presenting them to the relevant committee of governors for review. The Bursar will also be responsible for reviewing the use of the cards and making recommendations to the relevant committee of governors with regard to individual cardholders credit limits. 30. The Bursar will report the loss, theft or misuse of a card to the BFC Purchase Card Administrator immediately. 31. If a cardholder leaves the School s employment, the Bursar will ensure that their card is cut in half across the smartcard chip and returned to the BFC Purchase Card Administrator. Ordering and accounting for purchases 32. The Bursar will validate that purchases made using the cards comply with the School s procedures for ordering included in the Managing Money section of the Staff Handbook and with the cardholder procedures for the use of Procurement Cards and online purchasing. 33. On receipt of a request from a budget holder, the Finance Administrator will raise an order on FMS to create a commitment, and then make the purchase online. 34. On receipt of the monthly statements from the cardholders, the Bursar will check that all transactions are legitimate and appropriate and are supported by receipts. The Bursar will enter the transactions onto a transaction log and enter the appropriate FMS 7

8 35. The signed transaction log, together with the supporting credit card statement and receipts, will be passed to the Bursar who will review the transactions before initialling the log and passing it to the Headteacher for authorisation for payment. Transactions relating to purchases by the Headteacher will need to be authorised by the Chair of Governors. 36. Once the Headteacher / Chair of Governors has authorised payment, the log will be returned to the Bursar who will enter the transactions onto FMS as Cash Book journals. A Cash Book journal will be entered for each transaction for each card holder. If Supplier is entered against each transaction the expenditure appears in Supplier Review under Journal Payments The reference field should be c/c + initials of the card holder + month of the statement for easy identification later. 37. If a purchase order was raised then it should be cancelled once the CB journal has been entered. 38. The total balance outstanding on all cards is paid monthly by direct debit. When the bank statement is reconciled in FMS, one line on the bank statement may reconcile with many lines in FMS. These will be easily identifiable using the reference field. 39. The Cash Book Journals will be picked up in the normal way for inclusion on the Imprest return which reports the expenditure to Bracknell Forest Council. 8

9 REQUEST FOR EBAY PURCHASE Name:. Budget to be charged:. Item to be purchased Reason for purchase from ebay (delete as appropriate) Estimated cost of item Item is unavailable elsewhere Item can be bought on ebay at a saving of at least 33% of next best price (documentary evidence to be provided I understand that if my request is approved I will be issued with a password for the School s ebay account, which will be valid only for this one transaction. I also understand that I will be given a limit above which I cannot bid. Any expenditure over this limit or which is not included in this authorisation will be my own responsibility, and I will be liable to reimburse the school for it. Signed. Date. Authorised by Headteacher:. Maximum bid Bid completed date. Payment date. Cardholder signature 9

10 Annex 3 Transaction Log for Government Purchase Card SCHOOL NAME Cardholder Name: Statement No. Signature Date Page No. Authorised by: Signature Date FMS Reference I confirm that all purchases have been for business purposes of the above named school. Attach receipts (annotated with reference number) and a copy of credit card statement Reference Date of Order Supplier Description of Purchase Amount excl VAT VAT Total Incl Amount VAT Total 0.00 Fund Ledger Code Date goods received Entered onto FMS Petty Cash unspent cash Ref Date Description Amount Fund Ledger Code Entered onto FMS I confirm receipt of amount specified in petty cash tin Date: 10