Financial and Commercial Services. Government Purchasing Card (GPC) Procedures

Transcription

1 Financial and Commercial Services Government Purchasing Card (GPC) Procedures Date: Jan 2010

2 CONTENTS Contents 1. INTRODUCTION GENERAL RULES REGARDING USE OF THE GPC CARD PLACING AN ORDER USING THE GPC CARD... 3 a) Using the GPC card in person... 3 b) Using the GPC card by telephone... 3 c) Using the GPC card for ordering by mail... 3 d) What if the supplier refuses to accept your card?... 3 e) Do you need a VAT Invoice/receipt... 3 f) Recording purchases on the Transaction Log or Statement... 3 g) What to do if goods need to be returned ADMINISTERING YOUR STATEMENTS... 4 a) Receiving monthly statements... 4 b) What to do if you dispute an item on the statement... 4 c) The reconciled statement CARD HOUSEKEEPING... 5 e) Cardholders liability PURCHASING SERVICES RESPONSIBILITIES FINANCE (CREDITORS) RESPONSIBILITIES FINANCE (Management Accounts) RESPONSIBILITIES SUMMARY

3 1. INTRODUCTION The University has identified that there are advantages to be gained by using Government Purchasing Cards (GPC) as part of its procurement and financial accounting processes. The basic objective of using the cards is to reduce the paperwork and administration time involved in the ordering and invoice process for one off, low value (less than 1000), goods and services from Contracted and Non Contracted Suppliers. Please read the following procedure carefully as FAILURE to adhere to them WILL result in the University GPC card being withdrawn. 1 GENERAL RULES REGARDING USE OF THE GPC CARD The University GPC Card is issued in your name, which means that you are responsible for ensuring that the purchase transactions that are made against it are for legitimate University business requirements. Personal use of the card is not permitted, even if you intend to repay the cost of the transaction. You must keep the GPC card and PIN number safe and secure at all times. It is not permitted to set up direct debit or standing order payments against the card. Please refer to the Finance Department for further advice on these types of payments All purchases made with the card must be for the benefit of the University and can only be for items that would normally be purchased by you. Purchases against the card must not contravene the University s Financial Regulations, Travel & Expense or the Entertaining and Hospitality Policies. Copies of which can be found at University GPC Cards are not provided as a means to by pass the Purchase Order System (POP). Purchases, where possible should be made from suppliers who are already set up on the POP system. The University has numerous contracts and agreements in place with suppliers, details of which can be found on the Purchasing Web pages Convenience must not be allowed to override all other considerations such as warranty, after-sales service. It is not permissible to split an order with a supplier because the value exceeds your individual card transaction limit. All purchases must be supported by a written request or , which must be kept on file in the department for audit purposes. Travel the cardholder must declare the date, destination and purpose of the travel expense. (Inland Revenue Requirement). 2

4 Hospitality the cardholder must declare the date, organisation, number of external and internal persons present and the purpose of the hospitality. Hospitality can only be given in accordance with the University s Entertaining and Hospitality Policy. 2 PLACING AN ORDER USING THE GPC CARD a) Using the GPC card in person When making a Purchase at a supplier outlet you will be asked to confirm the transaction by entering your unique PIN number. You must never disclose this PIN number to anyone. Also you cannot place an order by phone and then send someone else with the GPC card to collect the goods. b) Using the GPC card by telephone Once a supplier is identified, proceed to purchase by quoting your card details. Instruct the supplier to mark the packaging/paperwork with GPC purchase card and for the attention of [name and location]. If applicable, a VAT invoice/receipt clearly marked GPC Purchase Card paid should be sent with the goods or directly to you. The supplier may request details of the University postcode for a security check. If asked for the Richmond Road postcode BD7 1DP should be quoted. c) Using the GPC card for ordering by mail Orders can be made if there is an application form that can be completed for Visa payment. The packaging and accompanying paperwork must be marked GPC purchase card and for the attention of [name and location]. If applicable, a VAT invoice/receipt clearly marked GPC purchase Card paid should be sent with the goods or directly to you. d) What if the supplier refuses to accept your card? If the supplier refuses to accept your card, contact the bank in the first instance, they should be able to advise what the problem is. Then if you are not able to resolve the problem you may need to contact the University Card Administrator. e) Do you need a VAT Invoice/receipt The University does not reclaim Vat paid on its purchases therefore it is not necessary for you to obtain an invoices / receipts that shows the VAT element. All invoices/ receipts though must be attached with your statement and sent to the finance department for audit purposes. f) Recording purchases on the Transaction Log or Statement You must record all your purchases on a transaction log or the monthly statement and include all the relevant information, requisitions, invoices/receipts and goods received notes with it. You should ensure that there is sufficient detail to facilitate reconciliation to the card statement at the end of the month. 3

5 g) What to do if goods need to be returned The following Procedures should be followed: Inform the supplier immediately. Make arrangements for the replacement goods to be sent to you (where applicable) Return the rejected goods to the supplier, or arrange for supplier to collect them. Enter details onto the Transaction Log sheet or monthly statement. When the monthly statement is received, check to ensure that the supplier has credited your account, and recharged you where applicable. 3 ADMINISTERING YOUR STATEMENTS a) Receiving monthly statements Each month you will receive your University Card statement. Match this statement against your Transaction Log sheet (if kept). Once verified that the transactions are correct, add the relevant cost codes against each transaction. Sign the statement, attach all relevant paperwork and pass it to your budget manager for authorising. b) What to do if you dispute an item on the statement Occasionally you may not be able to reconcile your log sheet against the monthly statement for one of the following reasons: Transactions you are not aware of Contact the University Card issuers Customer centre, the telephone number will be on the reverse of your card and request details of the transaction in question. Once you are sure that it is not a transaction you have forgotten about send Form 2 (see Appendix 2) to the University Card Administrator for action. The bank will also issue you with a form to complete so the transaction can be credited against your account. Supplier s price is greater Contact the supplier direct in order to discuss the difference. If you are unable to solve the difference, complete Form 2 and send to the University Card Administrator for action. Billed for goods not yet received If the goods have not been despatched, inform the University Card Administrator. It is a Visa regulation that the transaction is not processed until the goods are despatched. If the goods have been despatched check the delivery address with the supplier and follow up with the relevant store/delivery point. 4

6 You must ensure that any credit received is applied directly to your University Card account and is not settled by way of cash reimbursement or cheque. c) The reconciled statement This must be signed and passed to your Authorising Officer within 3 days of the statement being available. This is to enable your Authorising Officer sufficient time to authorise and return the completed form to Finance within 5 days of the statement being produced. Continual failure to comply with these times scales will result in your card being withdrawn. 4 CARD HOUSEKEEPING a) Security of the Card Lost or stolen cards should be immediately notified to the University card provider. Complete Form 3 (see Appendix 3) and forward this to the University Card Administrator. A new card will be forwarded by the bank shortly. b) Card Expiry If a replacement card is not received by the time the old card expires, contact the University Card Administrator. Expired cards should be cut up, in particular the microchip and disposed of securely. c) Damaged card If you damage your card contact the University Card Administrator. d) Change of Personal details Contact the University Card Administrator if you change your name, your job/department or you leave the University s employment. Cut the card up and return it to the Purchasing Office. e) Cardholders liability Although the University Card is embossed with your name the account and therefore liability is in the name of the University. The card does not have an impact on your personal credit status. 5 PURCHASING SERVICES RESPONSIBILITIES It is the responsibility of the Purchasing Office to ensure that: New and existing cardholders have signed the cardholder agreements before the cards may be used. The Card Authorising Officer/Administrator approves any requests to amend credit limits. 5

7 Guidance and procedures are issued to new cardholders and Card Authorising Officer/Administrator. Training is provided as appropriate. Cards are terminated on a timely basis. A log is maintained on a shared drive within Finance of the cardholders details. Suppliers are encouraged to accept card payments, in liaison with the cardholder. The Purchasing Office will monitor management information in respect of the level of the usage, values and nature of purchases made in order to consider whether the cards continue to offer value for money. 6 FINANCE (CREDITORS) RESPONSIBILITIES That Cardholder and Authorisers adhere to the timetable as detailed above and that statements are sent to Creditors on a timely basis. Check that the statements have been appropriately coded authorised. Regular monthly checks are carried out to ensure outstanding balances are being cleared and monthly reversing journal prepared for outstanding balances. Creditors input received statements correctly and on a timely basis to the appropriate ledger codes and clear the appropriate balance on the card holding account. Maintain a record of statements. 7 FINANCE (Management Accounts) RESPONSIBILITIES Financial Accounts allocate direct debits to the correct holding account. Creditors balances are cleared off on a timely basis by JPC transaction. 8 SUMMARY The basic object of using the University GPC card is to reduce administration, but we also need to maintain the appropriate controls as given in this document. The University reserves the right to withdraw the card if the cardholder does not follow the established procedure and may face appropriate disciplinary action. The University continues to search for new ways to improve the way we conduct our business. Your use of the University GPC card in conducting your daily business can help significantly reduce the number of transactions we process for payment each month. If you have any questions about these procedures or need additional information, please contact the Purchasing Office. 6