Purchasing Card D-Cal

Purchasing Card & Dcal User Guide Page 1 of 53 Purchasing Card D-Cal Cardholder User Guide Version 5 July 2009

Purchasing Card & Dcal User Guide Page 2 of 53 Index 1. Introduction Page 4 2. What is a Purchasing Card Page 5 3. Placing Orders Using Your Purchasing Card Page 6 4. Which Suppliers You Can Use Page 8 5. Recording Purchases & Goods Received Page 10 6. What Happens If Your Card is Declined Page 12 7. Using the DCAL System Page 12 7.1 What is D-Cal Page 12 7.2 Screen Settings for Using DCAL Page 13 7.3 Logging On Page 13 7.4 Forgotten User Names or Passwords Page 15 7.5 Process Transactions Page 15 7.5.1 Accessing the Transaction Screen Page 17 7.5.2 How to Process a Transaction Page 16 7.5.3 Tax/VAT Processing Page 20 7.5.4 Transaction Split Page 23 7.5.5 Review Transaction(s) Page 30 7.5.6 How to Approve a Transaction(s) Page 31 7.5.7 From & To Dates Page 33 7.5.8 Other Functions within the Transaction Page 34 Screen 7.5.9 How to Dispute/Undispute Transactions Page 34 7.5.10 How to Deal with Fraud Transactions Page 35 7.6 E-Statements Page 36 7.7 Filtering Page 36 7.8 D-CAL Transaction Status Key Page 38 8. Lost or Stolen Purchasing Cards Page 40 9. Card Security & Housekeeping Page 41 10. Fraud Prevention/Awareness Page 41

Purchasing Card & Dcal User Guide Page 3 of 53 APPENDICES Appendix A - Financial Regulations Expenditure & Incomes Appendix B - Cardholder Undertaking Appendix C -Transactions Log Appendix D - VAT on Purchases Appendix E - Billing Periods

Purchasing Card & Dcal User Guide Page 4 of 53 1. INTRODUCTION These instructions will explain how to obtain and use your Purchasing Card and applies to all holders of Plymouth City Council Purchasing Cards, and are in addition to the requirements of Financial Regulations. In particular, Cardholders must comply with current Financial Regulations which relate to the Ordering and Payment for Goods and Services (See Appendix A) and the use of credit cards and internet purchases. A full copy of Financial Regulations can be located on the Staffroom within the Document Library, http://www.information.plymouth.gov.uk/2006- intranet/documentlibrary/documents/financial%20regs%20intro- %20210408%20(FM01).pdf Cards will be issued on the basis of need, to employees whose references have been formally taken up by their employing department, and who have served the employment probationary period (normally 6 months). No purchase cards can be issued to Agency Staff, however in exceptional cases there may be the need for considering the issuing of a purchase card to a Non-PCC employee and these cases would require to be approved by senior management. In accordance with the Administration Guidelines, each cardholder is allocated an Approver, Administrator & Corporate Administrator responsible for various areas of the introduction and operation of Purchasing Cards. You need to be aware who these officers are, and you will be informed of this when you receive your Purchasing Card. Their individual responsibilities are as follows: Approver Responsible for approving your transactions. Administrator (Senior Financial Service Officers Creditors, Tel No 01752 304439 or email: creditors@plymouth.gov.uk) Responsible for the administration, of new/replace/cancel cards. Chase up cardholders/approvers re non-reviewed/approved transactions. Corporate Administrator (Financial Systems & Projects Team, Tel No 01752 305556/5557 or email finansys@plymouth.gov.uk) Responsible for the corporate administration and Council s overview and control. The Administrator (Senior Financial Service Officers-Creditors) will hold and issue Cardholder Application Forms, and to obtain these forms you will be required to contact Creditors on Tel: 304439 or e-mail:creditors@plymouth.gov.uk., or complete a Purchasing Card Request form which is located on the Staffroom within the Document Library. http://www.information.plymouth.gov.uk/2006- intranet/documentlibrary/documents/departmental%20request%20form%20.pdf. The Head of Service or Line Manager (who must be an authorised signatory) will approve the

Purchasing Card & Dcal User Guide Page 5 of 53 card application: the transaction limit and the monthly spend limit. The Director of Corporate Resources (or a nominated authorised bank signatory) will only consider the issue of a Purchasing Card in response to written requests by Heads of Services or an authorised signatory. The Director of Corporate Resources (or a nominated authorised bank signatory) will authorise the issue of the Purchasing Cards. This approval may be withheld, in any given case, if he/she are not satisfied that the issue of a Purchasing Card is appropriate. The Director of Corporate Resources (or a nominated authorised bank signatory) reserves the right to withdraw any Purchasing Card without notice. Upon an employee receiving a Purchasing Card they will be required to complete a Cardholder Undertaking (See Appendix B) 2. WHAT IS A PURCHASING CARD? Purchasing Cards are badged charge cards. They are used for the purchase of low value, low risk goods and services, such as rail tickets, accommodation, business expenses etc. They work in a similar way to personal credit cards, however they don t offer extended credit and the balance on the cards is paid off monthly, and no CASH can be withdrawn except by nominated Emergency Response Officers. Purchasing Cards replace both the paper ordering and payment processes, leading to increased efficiency and reduced costs. Purchasing Cards streamline the purchasing process, and offer cardholders the following benefits: No paper orders or invoices to process Improved accuracy of ordering because you speak direct to suppliers Faster delivery times Convenience of being able to make one simple phone call to place an order, order on-line from secure websites Empowerment of being entrusted as a cardholder Improved information and control over spending Plymouth City Council made the decision to use Purchasing Cards for the purchase of certain goods/services to achieve the following objectives. To streamline purchasing procedures To reduce the number of paper invoices To increase purchasing efficiency To improve prompt payment statistics

Purchasing Card & Dcal User Guide Page 6 of 53 To improve control over authority spend The Purchasing Cards are issued for the express function of obtaining goods and services for Plymouth City Council or for payments relating to business expenses incurred in the course of the Cardholders official duties. Use for any other purpose, or failure to comply with the instructions issued, will result in immediate withdrawal of the card and will be treated as acts of potential gross misconduct. Personal expenditure is not permitted, however it is accepted that personal expenditure may be included within a bill e.g. hotel and subsistence expenses. On such occasions the Cardholder must record the transaction on the Transaction Log (See Appendix C). The Cardholder must repay the full amount of any personal expenditure to the Council, including VAT and also ensuring that the monies are re-imbursed onto the corresponding expenditure code, before the transaction is approved and exported to the General Ledger. To re-imburse the personal expenditure to Plymouth City Council you will be required to ensure that the monies is passed to Cashiers, accompanied by a departmental paying-in voucher which should be completed with the appropriate ledger code into which the monies need to be paid. Note: Personal expenditure includes subsistence payments that are in excess of the rates laid down by the Single Status Agreement. 3. PLACING ORDERS USING YOUR PURCHASING CARD Purchasing Card operation A Purchasing Card will be issued to an individual and ONLY THE PERSON WHO S NAME APPEARS ON THE CARD IS AUTHORISED TO USE THE CARD. It is not permitted to give the card or card number to a third party or another council colleague, under any circumstances. When Purchase Cards are ready for collection, individuals will be contacted to arrange suitable time and date for collection from the Financial Systems Team. Individuals must arrange to collect the card within six weeks of being notified, if the purchase card is not collected then it will be destroyed. Prior to collection of a purchasing card individuals will be expected to inform the Corporate Administrator on Tel No 01752 305556/7 or email: - finansys@plymouth.gov.uk of the named person who will approve the cardholders transactions on a weekly basis. Any fees and charges arising from the use of the Purchasing Card will be recharged to the cardholder s departmental budget. Purchasing cards should be treated as if it is your own personal credit card. An initial individual transaction and monthly spend limit will be authorised for each card, based on estimated monthly expenditure and in line with the current parameters laid out

Purchasing Card & Dcal User Guide Page 7 of 53 in Financial Regulations. The monthly spend limit will be reviewed in the light of actual usage and this can be amended accordingly, but will still need to remain in the set parameters as authorised by the Director of Corporate Resources. Purchase Card Limits Maximum Transaction Limit Maximum Authorised Card Limit Director 1,000 5,000 Head of Service 500 2,500 3 rd Tier Manager 500 2,500 Head Teacher 500 5,000 Stores Purchase Officer 5,000 50,000 Departmental Nominated 5,000 10,000 Purchase Officer Emergency Planning 10,000 50,000 Officer Senior Officer from Department (for Emergency response purposes) 10,000 50,000 Cardholders must not exceed their authorised credit limit, or the limit on individual transactions. The cardholder must not split the cost of transactions to overcome the single transaction limit on a card or even use several cards for one transaction. If there is a continued problem or business need with the single transaction limit or monthly credit limit, then you will need to contact the Administrator on Tel No 01752 304439 or email:- creditors@plymouth.gov.uk. to increase the limits. Please note that the increase in limits will be subject to approval from the Director of Corporate Resources (or a nominated authorised bank signatory. The obtaining of CASH is only to be allowed for Emergency Response Incidents and should only be requested as a last resort by an Emergency Response Cardholder. Other restrictions may also apply on an individual basis. Suppliers will be automatically paid by the Co-operative Bank within 4 working days of the purchase being made. Cardholders will be able to place orders via the Purchasing Card in person, by or on secure Internet sites, or by telephone. Faxing or e-mailing copies of the card or cardholder statements is strictly prohibited. Please ensure that you plan transactions in advance to allow time for card authorisation. The following steps need to be followed when using a Purchasing Card:-

Purchasing Card & Dcal User Guide Page 8 of 53 1. Orders must only be placed with Internet suppliers who provide a secure site with appropriate encryption facility. 2. Give a clear description of the goods or services you require. 3. Agree the full cost of the goods or services you require. The agreed price must include any discounts available, delivery and VAT. 4. You must also ensure that you have sufficient budget to cover the expenditure. 5. When placing your order you should quote the following information. Company name e.g. Plymouth City Council, Legal & Democratic Services Your name as it appears on the card Your card number (16 digits) Your card expiry date (4 digits) 6. Agree the delivery date and location. The location must be a Plymouth City Council establishment, but where appropriate some exceptions can be agreed in consultation with Internal Audit. 7. You must maintain a separate record of all Purchasing Card transactions in the form of a Transaction Log. (See Appendix C). 8. When your purchasing card is not in use it must be kept securely at all times. 4. WHICH SUPPLIERS YOU CAN USE Guidance is available on the Procurement website or you can e-mail: procurement @plymouth.gov.uk. If you are using a Purchasing Card the following has to be adhered to; The supplier must provide a secure site with appropriate encryption facility if using the Internet The Cardholder should take reasonable steps to check the credibility and trustworthiness of the supplier, or if they are unsure seek clarification from the Head of Strategic Procurement. To ensure that the supplier site is secure the following steps need to be followed:-

Purchasing Card & Dcal User Guide Page 9 of 53 a. Security Alert Do not tick the box to disable any future warnings on your Personal computer. b. The supplier s screen itself should display a padlock icon at the bottom of the display: c. If the security message and padlock icon do not appear before you are invited to enter your card details, DO NOT provide card details and report the matter to the Senior Financial Service Officers- Creditors and the Head of Strategic Procurement for investigation.

Purchasing Card & Dcal User Guide Page 10 of 53 d. When leaving a secure area/site the following message should appear Do not tick the box to disable future warnings on your personal computer. e. Do not enter any Purchasing Card details after this message has displayed The Strategic Procurement team will be running reports on a regular basis to review the following: Large Value purchases Odd/unusual purchases Inappropriate purchases Off Contract Spend i.e. where there is a corporate contract in place and another supplier is being utilised for these goods Consistent purchases of similar goods If any of the above instances are noted then the Purchasing Card holder would be notified in the first instance and an explanation for the relevant usage may be requested. 5. RECORDING PURCHASES AND GOODS RECEIVED Recording Purchasing Card transactions Every Purchasing Card transaction made with a supplier must be recorded on a Transaction Log (Appendix C) and must be signed and dated your log is a record of all goods and services purchased using your card and will enable you to: keep track of all goods and services ordered; record the full transaction price expected; record any credits or refunds agreed; review your transactions in the D.Cal system (see Section 7); help resolve any queries that may arise. help produce information requested for management and audit reviews help to identify any fraudulent transactions You are required to keep a copy of all documentation that relates to your purchases

Purchasing Card & Dcal User Guide Page 11 of 53 together with your transaction log (e.g. receipts, valid tax invoices/delivery notes), and the monthly hardcopy purchasing card statement that will be received by all purchasing cardholders. A new transaction log needs to be started at the beginning of each month. All the aforementioned documentation should be retained as specified by the Council s documentation scheme under the Retention and Disposition Schedule (retention of documents i.e. invoices require to be destroyed 6 years after administration use has concluded). For further guidance please contact the Corporate Information Manager or Internal Audit. All reconciled transaction logs should be signed, dated and retained in a safe place for your own records. Internal audit may occasionally wish to have a look at these transaction logs. Cardholders who are required to use Purchasing Cards to pay for grant funded expenditure, must have regard for the terms and conditions of the grant, particularly relating to the retention of documents. Goods and services received When goods and services are received from the supplier you should update the corresponding entry on your transaction log with a tick ( ) in the Goods Received column and keep a copy of the goods received/delivery note. If colleagues accept goods and services on your behalf you must ensure that they send you the delivery note so that you can update your log and keep records as necessary. Returns If you need to return goods, you should ensure that the supplier arranges a credit to your Purchasing Card account. This credit should then be entered onto your transaction log to aid reconciliation when you review your transactions on a weekly basis. In the event of your not being able to reach a mutual agreement between yourself and the supplier, you should inform your Administrator (Senior Financial Service Officers- Creditors on Tel: 304439) immediately.

Purchasing Card & Dcal User Guide Page 12 of 53 6. WHAT HAPPENS IF YOUR CARD IS DECLINED As a security feature, Purchasing Cards have a number of controls that limit spending on the cards as follows:- Cardholder monthly limit The cards will not be accepted by suppliers when this limit has been exceeded. Individual transaction limit Prevents the cards being used for higher value items than originally intended. Merchant category blocking Restricts purchases to certain types of suppliers, for example stationery. Card Suspension Prevents the cards being used when the cardholder has outstanding transactions of over three months old on the DCAL system. If your Purchasing Card is declined when placing an order it could be due to one of the following reasons. Monthly card limit exceeded Individual transaction limit exceeded Attempting to use your card for unauthorised merchant categories Trying to use an expired card or suspended card In the event of a supplier not accepting your Purchasing Card, you should obtain the reason why if able to and then contact your Administrator (Senior Financial Service Officers-Creditors on Tel: 304439). 7. USING THE D.CAL SYSTEM 7.1 What is D.Cal? The system DCAL has been introduced into Plymouth City Council to change the current manual process to an automated process, which will also provide more comprehensive management information. D.CAL is an online transaction management system that enables purchase cardholders to log on and view transactions that have taken place on their card and then process these transactions.

Purchasing Card & Dcal User Guide Page 13 of 53 Users (Cardholders and Approvers) are required to login to D.CAL on a weekly basis to review the ledger codes and the VAT codes assigned to their transactions, and to make changes to the ledger codes and VAT codes where necessary. Once users are satisfied that the transaction is a valid one and that the ledger code and Vat code is correct, the transaction is marked as reviewed by the cardholder and ready for approval by the appropriate nominated Approver. Cardholders who are also Approvers are able to review their own transactions as well as cardholders they are responsible for, but they are unable to approve their own transactions. All transaction approvals need to be carried out by another officer, unless agreed by the Director of Corporate Resources. In the case of a purchasing card being issued to a Non-PCC employee the transactions will be required to be approved by the employee s Head of Service. Logon ID s and passwords for D.CAL users will be issued by the Financial Systems Team at the time of collecting your purchase card or when you have requested to be set up on the system as an Approver. 7.2 Screen settings for using D.Cal D.Cal holds a lot of information and to view the full screens you will have to adjust your screen resolution to 1024 x 768 pixels. To do this you should: 1. Right click in blank space on your desktop, click on Properties. Select the Settings tab from the window that appears 2. If the Screen Resolution slider is set to less than 1024 by 768 pixels then drag it to the right until it reaches this setting. 7.3 Logging on To login to D.CAL do the following: 1. Open Internet Explorer. 2. In the address field type www.dcalonline.com. The D.CAL Login screen is displayed. 3. When the Home screen is displayed there is no need to select a language and this field can be ignored 4. Click the Start Login Process button displayed on the screen.

Purchasing Card & Dcal User Guide Page 14 of 53 When first using this website the pop-ups may be disabled and the screen will appear as shown. 4 5. In order to allow pop-ups just click on the dropdown menu and select always allow Pop-ups from this site as shown below, then the User Login Step 1 screen is displayed. 5

Purchasing Card & Dcal User Guide Page 15 of 53 6. Enter the username assigned to you by your administrator in the Username field. This will be ply hyphen then the first 7 digits of your surname and then your initial: for example ply-worthink 7. Click the Next button. The User Login Step 2 screen is displayed. 8. Enter the password as assigned to you by your administrator into the Password field. Note: The first time a user logs onto D.CAL they will be asked to change the password and validate it. The new password entered by the user must be a combination of upper and lower case, alpha and numeric characters and must be a minimum of 8 characters in length. This system is case sensitive. Example, Plymouth01 (this is a sample password only). 9. Click the Next button. 10. Depending on the question enter, your Mothers maiden name (this will be your surname in lower case), the last four digits of your work telephone number, or the last four digits of your purchase card number. For Approvers who do not have a purchase card just click OK when asked for the last four digits of your purchasing card number. 11. Click the Submit button. 7.4 Forgotten User Names and Passwords If any user forgets his/her password when they are logging on they should contact the Financial Systems Helpdesk Tel No 01752 305556/7, who will be able to provide you with a new password. Please do not select the Forgot Your Username? Or Forgot Your Password? Due to the fact that this functionality is not active. 7.5 Process Transactions 7.5.1 Accessing the Transactions Screen 1. When you have logged in and if you are a Manager/Approver type user then the Transaction screen will be displayed automatically. Otherwise to access the Transactions screen click the Transactions button, the Transaction screen is displayed To view for

Purchasing Card & Dcal User Guide Page 16 of 53 New/Imported transactions i.e. un-processed transactions that have not been reviewed, approved or exported, you will need to carry out the following steps: 1 1. In the Trans Status drop down select New/Imported. 2. In the Trans drop down select All. 3. Click the Filter button. The Transactions screen is returned containing details of New/Imported transactions for the current billing cycle i.e. all un-processed transactions. If you wish to view transactions that do not fall within the current billing cycle, (See Appendix E for 2009 billing periods),then you will be required to change the From and To dates. Please note that the From date should never be prior to the 1 st Nov 2007 (this is the date that the system information became Live). It is advisable to make the From date the same as the first date that appears on the Transaction Log. 4. The select Filter. 4 Users may use the other filters available within the Trans Status drop down as follows; All this will return all transactions irrelevant of their status Approved this will return all transactions that have been approved Reviewed this will return all transactions that have been reviewed Disputed this will return all transactions that are disputed New/Imported this will return all transactions that are new i.e. no actions have yet been taken against these transactions. Exported this will return all transactions that have been exported, these transaction will also now appear in the General Ledger. Unexported this will return all transactions that have been reviewed, approved, disputed, new/imported, but do not appear in the General Ledger.

Purchasing Card & Dcal User Guide Page 17 of 53 7.5.2 How to Process a Transaction The terminology process a transaction for a Cardholder user means that the ledger code (cost allocation codes CAC s) and VAT Codes on New/Imported transactions must be checked and then given the status of reviewed in order for their manager to approve the transaction(s).the reviewing of transactions must be carried out at least once a week. The following are the process transaction steps: Filter for New/Imported transactions and validate View/change ledger code (cost allocation codes-cac s) Tax/VAT processing Review transaction(s) Filter for New/Imported Transactions and Validate (Refer to Page 10 & 11 Section 7.5.1) When a list of new/imported transactions has been returned do the following: Check the following is correct on each transaction: The billing amount Merchant/Supplier Goods purchased If there is an issue with any of the above, users must not perform any further processing steps on the transaction(s) on D.CAL other than placing the transaction(s) in Dispute (Refer to page 26 Section 7.5.9), and contact the supplier detailing the issue. If the transaction(s) appearing has not been carried out by the cardholder, then the Administrator Tel No 01752 304439 should be contacted, to explain that the transaction is potentially fraudulent. If there are no queries/issues with the transaction(s) or when a query/issue has been resolved via the supplier and the transactions has been removed from being in Dispute (Refer to page 26 Section 7.5.9) the cardholder must check that the ledger codes are correct on each part of the transaction. View/Change Ledger Code (cost allocation codes-cac s) When carrying out this function all cardholders must ensure that they assign a valid and appropriate ledger code to the transactions. Ledger Code details are displayed in columns named Account Code, Cost Centre and Classification Code

Purchasing Card & Dcal User Guide Page 18 of 53 In order to view the Ledger Code (cost allocation codes-cac s) on a transaction and change them (if necessary) the user must carry out the following steps: 1. Using the scroll bar located on the bottom right of the Process Transactions screen, scroll across the screen until the Account Code columns are displayed. 2 2. Select a transaction to change/assign ledger code (CAC s) by ticking the check box located alongside the transactions Billing Amt. Please note one or more numerous transactions can be selected to have codes changed/assigned, but only a level at a time. 3. Once the transaction(s) check boxes have been ticked, click on the Assign CAC s button located at the bottom of the screen. 3 4. The Assign Cost Allocation Codes screen is displayed, with Account Code (Subjective Detail Code) displayed by default in the Cost Allocation Level field, with its related codes displayed in the list on screen. If you do not wish to search through the whole list then carry out the following steps:- 1.Enter the code required in the CODE field 2. Click FILTER

Purchasing Card & Dcal User Guide Page 19 of 53 1 2 5. The Account Code will now be displayed and can be selected for allocation. To do this, select the radio button next to the code and then click Submit. 3 6. Once the correct Account Code (Subjective Detail Code) has been assigned select from the Cost Allocation Level the Cost Centre or Classification code if these also need to be changed/assigned. 4

Purchasing Card & Dcal User Guide Page 20 of 53 7. Click the Submit and Close button. The selected codes are displayed against the transaction in the Process Transactions screen and the Cost Allocation Codes screen is minimised so that further ledger code CAC changes/assignments can take place for the selected transaction(s). 8. When all ledger codes (CAC s) have been changed/assigned click the Close button. If a code does not return having entered and filtered on a valid code please contact the D.CAL Corporate Administrator (Financial Systems Team) email:finansys@plymouth.gov.uk. The Administrator will check that the code is available, if not he/she will add the valid code to the list. 9. Alternatively select a transaction to change/assign ledger code (CAC s) by ticking the check box located alongside the transactions Billing Amt. You are then able to double click on the Account Code (Subjective Detail Code), Cost Centre or Classification and then select the relevant codes as detailed at Point 4. 7.5.3 Tax/Vat Processing There are three types of suppliers that cardholders may purchase with. These are: Non VAT capable (Level 1) These types of suppliers do not send through LID (Line Item Detail) or Tax/VAT detail on transactions. Transactions that occur with this type of suppliers will require an invoice in order for Tax/VAT to be reclaimed by your company. Transactions with this type of supplier will need to have Tax/VAT applied to them manually in D.CAL. Before assigning tax you must ensure that you have a valid tax invoice and all invoices need to be retained as specified by the Council s documentation scheme under the Retention and Disposition Schedule (retention of documents i.e. invoices require to be destroyed 6 years after administration use has concluded). For further guidance please contact the Corporate Information Manager or Internal Audit. Summary VAT capable (Level 2) Where the supplier sends through the VAT details with no LID (Line Item Details) Tax/VAT does not need to be applied manually to these transactions in D.CAL. VAT capable (Level 3) VAT capable suppliers send through details of all the items purchased (LID) with Tax/VAT details. Transactions that occur with this type of supplier do not need to have Tax/VAT manually applied to them in D.CAL.

Purchasing Card & Dcal User Guide Page 21 of 53 Listed below are the current VAT Codes and Descriptions: VAT Code 1 - Standard Rate VAT -15% VAT Code 2 Old Standard Rate VAT -17.5 % VAT Code 9 - Outside the Scope of VAT - 0% VAT Code 8 - Exempt from VAT - 0% VAT Code 0 - Zero Rated VAT - 0% VAT Code 5 - Reduced Rate Domestic Fuel & Power - 5% If you required any further information has too which rate should be applied to various transaction, then please refer to the VAT Handbook which is located on the Document Library on the Staffroom. Cardholders who are required to use Purchasing Cards to pay for grant funded expenditure, must have regard for the terms and conditions of the grant, particularly relating to the retention of documents, irrelevant of the type of suppliers and their VAT capabilities. Within D.CAL either cardholders or approvers will need to carry out manual Tax/VAT assignment on transactions from Level 1 type suppliers. If you are unsure which VAT/Tax rate you should be assigning refer to VAT Handbook which is located on the Document Library on the Staffroom. If you are also unsure whether you should be assigning VAT/Tax details please refer to VAT on Purchases (Appendix D). Assign Tax/VAT Details When checking Tax/VAT for your transactions the following steps should be followed: 1. In the Trans Status drop down in the Process Transactions screen select New/Imported as details in 7.5.2 1 2. Click the Filter button. A list of all transactions that require Tax/VAT processing is displayed. You will then need to ensure that you have a valid VAT invoice or receipt (if in doubt check with the VAT section on Ext 4432).If you don t have a valid VAT invoice or receipt you assign a tax rate of 0% - Zero VAT Code 9 Out of Scope. Please note that if this is the case the VAT amount will be unable to be reclaimed and the gross amount will be placed against the relevant budget. Please note that an Approver with Card or Reviewer with Card will be required to switch

Purchasing Card & Dcal User Guide Page 22 of 53 to cardholder mode before clicking the filter in order to see their own transactions that require VAT/Tax 3. Select a transaction(s) to assign Tax/VAT details to by ticking the check box located alongside the transactions Billing Amt. 4 5 4. Click the Tax button. The Tax Codes screen containing the available tax rates and codes is displayed. 5. Select the appropriate Tax code/rate. Please note that if the VAT rate is 0% this is still required to be assigned. 6. Click the Assign and Calculate button. The selected code is displayed against the transaction and the Vat is calculated in the Process Transactions screen and the Tax Codes screen is minimised so that Tax can be assigned to further transactions. 7. Repeat steps 4 to 7 for each transaction(s) for which Tax codes are to be assigned.

Purchasing Card & Dcal User Guide Page 23 of 53 8. Multiple transactions can be allocated the same tax code simultaneously by ticking more than one check box alongside the transaction billing amount and following steps 5 to 8 above. 10. When assigning VAT/Tax codes to transactions there is the need to ensure that you have a valid tax invoice or receipt and there is also the need to bold out the receipt button against that relevant transaction. In order to do this you simply need to click on the paperclip which is on the line for the transaction that you are dealing with. 7.5.4 Transaction Split A Split is the ability to divide a top line transaction or line item into multiple line amounts for different rates of VAT/Tax coding and/or cost coding at a more detailed level. Split lines are displayed in the same manner as LID's (Line Item Detail) and are treated as addendum data. In the filter, set the 'View Addendum' checkbox to view both LID's and Split lines. Split line transactions are displayed with a scissors icon. 1. Any type of transaction can be split whether at top or line item. How to add split lines to top line transactions 1. In the main Process Transactions screen, select the check box of a top line transaction. 2. Click the Split button. 10 1 2 3. The Split dialog box is displayed with information from the top line transaction including the Merchant Name, Original (Source) Amount, Exchange Rate (only displayed for foreign transactions), Billing Amount, Tax Receipt Amount, Net Amount, Tax Rate and Tax Code. This information is used as a reference when applying the split information and is static and non-editable.

Purchasing Card & Dcal User Guide Page 24 of 53 4 5 6 4. Enter the number of split lines required, the minimum number is 2. 5. Select a format for the split by choosing the 'Billing Amount Split' or 'Percentage Split' radio buttons. 'Billing Amount Split' is set as the default on entering the screen. The percentage amounts are restricted to two decimal places 6. Click Create Split Lines. 7. On submission, the required number of split lines is displayed in the main panel. By default the new split lines have a default description applied. E.g. Split 1, Split 2, Split 3 etc. Users may edit the default descriptions if required. 7 8. Depending on the choice of radio buttons, the 'Billing Amount' or 'Percentage' columns are editable form fields. Enter the relevant amounts in the fields. The quantity and unit costs are optional tools that you can use if you find them helpful but can generally be ignored. The system will automatically deduct what is remaining when an amount is entered into each of the fields i.e. top line is 28.43 when entering 10.00 on first line the value of 18.43 will appear on the next line and if another amount is entered on the second line then the remainder will be placed on the third line and so on.

Purchasing Card & Dcal User Guide Page 25 of 53 9. Only when the split line totals matches the billing total or 100% will the other functions become active, once active you will then be able to select all rows if the same Vat/Tax code needs to be assigned or if there is varying VAT/Tax code that need to assigned then you will need to select the lines individually and then assign the relevant VAT/Tax code) Please refer to Page 14 Point 4). 9 10. Once the VAT/Tax code(s) have been assigned then click the Submit Button and this will save the split lines to the main Process Transactions screen. 11. Once the split transaction(s) appear on the main Process Transactions Screen the split lines will take all default Cost Allocation (Account, Cost Centre and Classification) codes fro the top line. However if these Cost Allocation codes need to be changed then they can changed in the same manner as the Transaction Processing Screen. (Refer to Page 13 Point 3). If you wish to change all the split lines to the same codes then just tick the top line transaction and then selecting Assign CAC s this will then change all the lines, however if you wish to change individual lines with varying codes then you will need to select each line individually. When assigning a range of different account, cost centre and classification codes against the split lines, there is the need to remove the account, cost centre and classification codes that appear on the top line and in order to do this carry out the following steps:-

Purchasing Card & Dcal User Guide Page 26 of 53 12. Select None 2 13. Select Submit and Close, this then removes the narrative 14. When all the tax codes in the split lines are all the same then the top line tax code is the same. If there are is a mixture of tax rates then the top line displays MIXED. 15. In the main Process Transaction screen, a scissors icon denotes a new split line. 16. Credit transactions which are denoted by a minus sign can be split. However in the split screen the transaction amounts do not need a minus sign before the amount. How to edit a Split Line for a Top Line transaction Split transactions can be edited only if the split has been carried out by the user and not by the supplier, but lines cannot be added or removed from an existing split. In order to do this you will be required to delete the split 1. Select the top line or any split line transaction containing the split lines to edit.

Purchasing Card & Dcal User Guide Page 27 of 53 2. Click Split. 1 2 3. The Split dialog box appears containing the saved split lines information either in billing or percentage mode. 4.In the split dialog box, switch to 'Billing Amount Split' or 'Percentage Split' editing mode by selecting the appropriate radio button and clicking Change Edit Mode. 4 5. Edit the information and ensure that the totals are correct using the calculator button. 6. It is possible to edit the Tax Code for split lines, simply by denoting the line where the edit needs to take place and then select Tax. This will display the various Tax Codes and you can then select the code which is required. 7. Click Submit. The dialog box closes and the split fields are applied in the main Process Transaction screen. How to add split lines to a line item 1. In the main Process Transactions screen, select the check box of a top line transaction containing line items to split. 2. In the functionality panel click Split.

Purchasing Card & Dcal User Guide Page 28 of 53 1 2 3. The Split dialog box is displayed with information from the top line transaction and existing line items. This information is used as a reference when applying the split information and is static and non-editable. 4. Select a format for the split by choosing the 'Billing Amount Split' or 'Percentage Split' radio buttons. 'Billing Amount Split' is set as the default on entering the screen. 5. Enter the number of split lines required for each line item. 6. Click Create Split Lines. 7. On submission, the required number of split lines is displayed in the bottom panel. By default the new split lines take the description of the original line item, but this can be edited. 4 6 5 7 8. Depending on the choice of radio buttons, the 'Billing Amount' or 'Percentage' columns are editable form fields. Enter the relevant amounts in the fields. The quantity and unit cost fields are optional.

Purchasing Card & Dcal User Guide Page 29 of 53 9. When working in the billing amount or percentage split mode the user enters values in the form fields. The last split line form field is non editable and shows the remainder of the total as other split line values are entered. 10. Only when the split line totals matches the billing total or 100% will the other functions become active, once active you will then be able to select all rows if the same Vat/Tax code needs to be assigned or if there is varying VAT/Tax code that need to assigned then you will need to select the lines individually and then assign the relevant VAT/Tax code) Please refer to Page 14 Point 4). 11. Once the VAT/Tax code(s) have been assigned then click the Submit Button and this will save the split lines to the main Process Transactions screen. 12. Once the split transaction(s) appear on the main Process Transactions Screen the split lines will take all default Cost Allocation (Account, Cost Centre and Classification) codes from the top line. However if these Cost Allocation codes need to be changed then they can changed in the same manner as the Transaction Processing Screen. (Refer to Page 13 Point 3). If you wish to change all the split lines to the same codes then just be tick the top line transaction and then selecting Assign CAC s this will then change all the lines, however if you wish to change individual lines with varying codes then you will need to select each line individually. 13. After making your code changes, click Submit. The dialog box closes and the split fields are applied in the main Process Transaction screen. How to edit a split line for a line item 1. Edit a split line by selecting the top line transaction and clicking Split in the functionality panel. 1 2 2. The Split Dialog box appears displaying the saved information.

Purchasing Card & Dcal User Guide Page 30 of 53 4 3. The Delete Split button is now active. Delete the split. 4. Edit the information and click Submit. The dialog box closes and the information is updated in the transactions screen. 7.5.5 Review Transaction(s) Once a cardholder is satisfied that all components of the transaction(s) are correct and Tax/VAT has been assigned, they must review the transaction(s) so that their designated transaction Approver can approve the transaction(s). To review a transaction(s) do the following: 1. Select the transaction(s) to review by ticking the check box located alongside the transactions Billing Amt.s) 2. Click the Review button. 1 4 2 3. Multiple transactions can be selected by either clicking Select All and then clicking Review or the relevant lines can be selected by ticking the check box and then clicking Review.

Purchasing Card & Dcal User Guide Page 31 of 53 4. Transactions are also unable to be Unreviewed simply by ticking the check box next to the transactions that needs to be unreviewed and then click Unreview. This function can also be carried out over multiple transactions as detailed in Point 4 above. Note transactions can only be unreviewed if they have not been approved. 5 5 5. To view transactions that have been reviewed, filter on the Trans Status Reviewed. (Refer to Page 11) and then All cardholders should note that their designated Approver should not approve their transactions until they have been reviewed 7.5.6 How to Approve a Transaction(s) If you are a Cardholder/Approver, you are responsible for approving transactions for a number of cards As a Cardholder/Approver the Process Transaction screen is available in two views. You must also ensure that transactions are approved on a weekly basis. Cardholder view the toggle button cardholder needs to be selected Displays details of transactions that occur on your own card, which require processing. Manager (Approver) view the toggle button manager needs to be selected Displays details of transactions that have occurred on other cardholder s cards that have been reviewed, for which the approver is responsible. Your reviewed transactions will also appear in this view, but you will be unable to approve these transactions. The views available to a cardholder/approver can be switched by selecting the different toggle buttons. Approving other Cardholders Transactions for which you are the designated approver.

Purchasing Card & Dcal User Guide Page 32 of 53 In Manager mode: 1. In the Trans Status drop down in the Process Transactions screen select Reviewed. 2 1 2. If you wish, refine your filter by specifying the Name, or Card Number of the cardholder you wish to approve transactions for. 3. Click the Filter button. A list of Reviewed transactions for the cardholder(s) is displayed. 4. Check that the transaction(s) has been coded correctly with correct Cost Allocation (Account, Cost Centre and Classification Code) and that the transaction has been made is legitimate for work purposes. 5. Check that VAT/Tax has been assigned and that the cardholder has an invoice for the transaction. A yellow flag will appear next to the Billing Amount of a transaction(s) when VAT/Tax has been assigned; if this flag does not appear then the reviewer has not completed the transaction(s) and therefore should not be approved. The manager should also make the cardholder aware of the error and ensure that it is amended accordingly. The transaction(s) that are required to be approved should look like these. Select the transaction(s) to approve by ticking the check box located alongside the transactions Billing Amt. 6. Click the Approve button. 5 7. Multiple transactions can be selected by either clicking Select All and then clicking Approve or the relevant lines can be selected by ticking the check box and then clicking Approve. 8. Transactions are also unable to be Unapproved simply by ticking the check box next to the transactions that needs to be unapproved and then click Unapprove. This function

Purchasing Card & Dcal User Guide Page 33 of 53 can also be carried out over multiple transactions as detailed in Point 4 above. Note transactions can only be unapproved if they have not been exported. 8 When approving transactions in DCAL the responsible officers should carry out ad-hoc spot checks to ensure that valid tax invoices and receipts have been received and filed appropriately. 7.5.7 From and To Dates The From and To dates located on the Process Transactions screen will always default to the current billing period. If a user needs to review transactions for the previous billing period they must change the calendar dates. In order to change the From and To dates click on the calendar icon to the right of the date field. The following screen is displayed. See Appendix E for 2009 billing periods

Purchasing Card & Dcal User Guide Page 34 of 53 7.5.8 How to add Comments to a Transaction 1. Filter or navigate to the required transactions. 2. Select the checkbox (es) of the transaction(s) to apply comments. 2 3 3. In the Functionality Panel, click Comments. 4. In the Comments dialog box add the comment. 5. Click Submit. 6. To add another comment just simply select Comment again. 7.5.9 How to Dispute/Undispute Transactions Transactions would be required to be placed in Dispute, if the cardholder was not happy with the cost, awaiting a credit or fraudulent. 1. Filter or navigate to the required transactions. 2. Select the checkbox (es) of the transaction(s) to dispute/undispute. 3 2

Purchasing Card & Dcal User Guide Page 35 of 53 3. In the Functionality Panel, click Dispute. 4. In the Dispute dialog box either select the radio button for 'Dispute the transactions' or 'Undispute the transactions'. 5. Click Submit. 6. The relevant transaction status flag is displayed to show the disputed/undisputed state of the transaction. 7. If a transaction(s) has been placed in dispute, once resolved the transaction(s) will be required to be Undisputed. These transactions are also required to be monitored on a weekly basis and must be taken off dispute and processed as soon as possible. 7.5.10 How to Deal with Fraud Transactions When fraudulent transactions appear on DCAL the following actions need to be carried out to ensure that all transactions are correctly cleared from DCAL and not showing as outstanding:- 1. Fraud transactions will appear on the DCAL system as individual transactions when the card has been used fraudulently. The user should automatically place these transactions in Dispute on the DCAL System (please refer to Point 7.5.9) and also notify the Creditors section on Telephone No 304493, as soon as possible, Creditors will automatically notify the Internal Audit section of all fraudulent transactions. The cardholder must note that the purchase card with fraudulent transactions should be no longer used and the user must await the arrival of a new purchase card. 2. Once the bank has been informed by Creditors of the relevant fraudulent transactions then a credit will appear on the DCAL system against the users new purchase card number. The credit is sometimes shown as an overall sum of all the fraudulent transactions or on individual lines and the normal narrative that appears next to these transactions is Purchase Under Investigation.

Purchasing Card & Dcal User Guide Page 36 of 53 3. When the above corresponding transactions appear on the DCAL system the transaction will be required to be undisputed they can be actioned in the normal way. The debit and credit will negate each other and thus no charge will be placed against the General Ledger, unless there is a variance in a currency exchange rate between the time of when the fraud was committed and the credit is given. 4. There will also appear a debit on the user s old purchase card number which will total the sum of the fraudulent transactions or may be shown as individual debit transaction and the normal narrative that appears next to these transactions is Purchase Under Investigation. 5. These transactions should not be processed until a subsequent credit appears on the user s old purchase card number. 6. Also within DCAL against the cardholders name a credit zap record will appear on the user s old purchase card number and a debit zap record will appear on the users new purchase card number. Zap record details the genuine transactions that have taken place and these corresponding transactions need to be processed in the normal way through DCAL. However the debit and credit will negate each other and therefore no charge will appear against the General Ledger. 7.6 E-STATEMENTS The E-Statement provides on-line access to account information at all times. The E- Statement displays in a standard statement format, showing Transaction date, Post Date, Reference (Optional) merchant, amount and a running total on each line. In the top panel it shows the Card user name; card Number, Employee ID, the Payment Due Date, Credit Limit, Employee ID and Cost Centre. There is also a summary statement line showing the Current Balance for the current period to date, the total number of transactions made on the card and Debits, Credits, Payments made on the cards and available credit. Cardholders see details for their own current or previous statements, and can see historical statements as far back as one year. A manager who is responsible for other cardholders can view their current or historical statements. 7.7 Filtering There are two filter facilities available within D.Cal, these are: 1. Basic Filter 2. Advanced Search Basic Filter Basic filtering can be performed in all D.Cal within the basic filter header,

Purchasing Card & Dcal User Guide Page 37 of 53 Basic filter header The basic filter header is available on all D.Cal screens; however the appearance of it on each screen will vary to reflect the area of the product in focus. For example, the filter header in Process Transaction screen differs from filter header in Run Reports screen. The basic filter allows you to limit information displayed on screen to the filter criteria entered. For example, entering the last four digits of a card number will limit transactions returned to those for that card only. Filter fields that are pre-populated are required filter criteria fields, or are required if another filter criteria field is filled e.g. In the Process Transactions screen Billing Amount filter requires a <, >, or = sign in the field preceding it and Transaction Status, Transaction type, and From and To dates are required filter criteria. Advanced Search The advanced search facility is available on the Process Transaction screen only and provides a further way to filter by including more filter criteria. Clicking the Advanced Search link in the filter header activates advanced Search. Due to the number of advanced filters available, these display in a pop-up box. Once the contents of the filter have been defined and validated the criteria are displayed in the filter header of the main transaction-processing screen. The results of the filter are also displayed on screen.

Purchasing Card & Dcal User Guide Page 38 of 53 If filters have already been set in the basic filter screen, activating the Advanced Search populates these values in the Advanced Search form fields. Any filters set in the advanced filter will also populate the basic filters on return to that filter type. 7.8 D.Cal Transaction Status Key The Status column in Process Transactions identifies the status of each transaction through a number of colours and symbols. The following table illustrates what the various colours and symbols represent.

Purchasing Card & Dcal User Guide Page 39 of 53 Transaction Status Status Description New / Imported Reviewed Approved Exported Any transaction status White background - transactions that have not been reviewed or approved Blue background - transactions that have been reviewed, but not yet approved Green background - transactions that have been approved and are awaiting export to GL Orange background - transactions that have been exported to GL Flag - tax complete Any transaction status No flag - tax not complete. Tax can be assigned if a VAT invoice/receipt is available Disputed x Cross in third status box - transaction is being disputed with the supplier Any transaction status 3 lines in third status box - comment is attached to transaction Output File This functionality allows the user to save the result of selected transactions in the Transactions screen into an Excel Spreadsheet. Users have the option to open the file immediately or to save it. Once in this format, the data can be ordered and filtered as required.

Purchasing Card & Dcal User Guide Page 40 of 53 Email This functionality allows Corporate Administrators and Managers to send emails to all approvers/owners of transactions. Administrators/Managers will be prompted to enter a subject header and text content to be sent in the email. For example: Filter for New/Imported transactions, then click Email button to send an email to these cardholders requesting that they review their transactions. Or Filter for Reviewed transactions, then click Email button to send an email to the approvers requesting that they approve these transactions. Trace Provides user with the full history of the transaction. Users can select a top line, line item or split line transaction and view or print the events that have taken place for it. 8. LOST OR STOLEN PURCHASING CARDS If you lose your card, or it is stolen, you must: Advise the Bank immediately by phoning them on 0845 600 6000 (24 hour service). Obtain the name of the person you speak to. Advise your Administrator (Senior Financial Services Officers Creditors) as soon as possible, by either email: - creditors@plymouth.gov.uk or phone on Tel: 304439. You need to let them know your card number, name, location, the date you phoned the Bank and name of the person you spoke to. Your Administrator (Senior Financial Services Officers Creditors) will formally confirm the card cancellation to the Bank in writing and will arrange for a replacement card to be issued to you. Advise your Line Manager at the next available opportunity.

Purchasing Card & Dcal User Guide Page 41 of 53 9. CARD SECURITY AND HOUSEKEEPING As a cardholder you should keep your card in a safe place, and take reasonable steps to prevent it from being lost, stolen or used by anyone else. Replacement Purchasing Cards are issued every 2 years and will be issued direct from the bank. When your old card expires it should be destroyed. If you change your job within Plymouth City Council and you will still be required to have a Purchase Card then you must contact your Administrator (Senior Financial Service Officers-Creditors on Tel: 304439) who will forward a Departmental Amendment Request form which will need to be completed. If you change your job in Plymouth City Council and you are not required to have a purchase card you must ensure that all transactions on the DCAL system are approved and immediately stop using your purchase card. The card must be cut up and sent back to the Creditors Section, Floor 5, Civic Centre with a covering note detailing the cardholders name. If you leave Plymouth City Council, you must ensure that all transactions on the DCAL system are approved and immediately stop using your purchase card. The card must be cut up and sent back to the Creditors Section, Floor 5, Civic Centre with a covering note detailing the cardholders name. 10. FRAUD PREVENTION/AWARENESS It pays to be aware whenever you use your Purchasing Card, so here is some useful advice to guard against fraudulent use: Keep all Purchasing Card receipts securely as they contain information a fraudster could use. If you have a PIN number NEVER write it down, or keep it with your Purchasing Card. DO NOT let the card out of your sight when paying a bill, since the card details and magnetic strip could be copied. If you receive a telephone call requesting information on your account, for security, or any other reason, do not reply, inform the caller that the Senior Financial Service Officers-Creditors will call back with any details requested. Report the matter immediately to the Senior Financial Service Officers-Creditors on Tel: 304439, Head of Strategic Procurement or Internal Audit.

Purchasing Card & Dcal Appendix A Page 42 of 53 EXPENDITURE AND INCOME: ORDERING AND PAYING FOR WORK, GOODS AND SERVICES Why is this important? D.2.19 Public money must be spent with prudence and demonstrable control and wholly in accordance with the Council s policies, and corporate procurement arrangements so as to deliver the approved service outcomes. All local authorities and schools have a duty to achieve best value in the delivery of their services, in part through economy and efficiency. The Council s procedures should help to ensure that services can receive value for money in their purchasing arrangements. The following requirements should be read in conjunction with the Council s Fair Funding Scheme, Standing Orders and delegations relating to Contracts for supplies, works and services General D.2.20 In accordance with the relevant codes of practice, every officer and member of the Council who is involved in contractual or purchasing decisions on behalf of the Council has a responsibility to formally declare any links or personal interests which they may have with purchasers or suppliers, contractors and in respect of partnership arrangements. D.2.21 Official orders for the purchase of goods or services must be in a standard form approved by the Director of Corporate Resources, and must be issued for all purchases other than for supplies of utilities (gas, electricity, water, etc), periodic payments (such as rent or rates), petty cash purchases, purchasing cards or other exceptions as specified by the Director of Corporate Resources. In addition commitments from credit card, purchasing card or internet purchases must only occur through the Council s approved scheme and in accordance with the instructions on that scheme from the Director of Corporate Resources. D.2.22 Official orders must not be raised for any personal or private purchases. D.2.23 Apart from payments from petty cash, imprest accounts or schools own local bank accounts, the normal method of payment due from the Council shall be by BACS. Direct debit and periodical payment arrangements shall require the prior agreement and authorisation of the Director of Corporate Resources. D.2.24 The use of e-business, e-commerce, credit / debit or purchasing cards, or other electronic means of purchasing goods or services, must be authorised by the Director of Corporate Resources.

Purchasing Card & Dcal Appendix A Page 43 of 53 Key controls D.2.25 The key controls for ordering and paying for the purchase of work, supplies and services are to ensure that procedures are in place which include: (a) (b) (c) (d) (e) (f) (g) all goods and services are ordered only by staff authorised to do so and that the details of each order are completely, accurately and promptly recorded in an appropriate form approved by the Director of Corporate Resources; all goods and services shall be ordered in accordance with the Council s Standing Orders for the Regulation of Contracts for works, supplies and services, unless they are purchased from approved internal sources within the Council; goods and services received are checked, to ensure they are in accordance with the order as recorded, by a person other than the one who had placed the order; invoices are not authorised for payment, or payment otherwise authorised, unless the goods or services have been received to the correct price, quantity and quality standard. Furthermore invoices must not be amended and submitted for payment as this is contrary to VAT regulations; a suitable credit note to offset the original invoice and/or a replacement invoice must be obtained in order to pay the correct amount. In the case of the latter the original invoice should be destroyed or suitably marked to prevent it being paid. all payments are made to the correct person, for the correct amount, on the due date, are properly recorded and are accurately accounted for, irrespective of the method of payment, and with any errors being promptly identified and corrected; all appropriate payment records and supporting documentation are retained for the defined period in accordance with the Council s approved policy on document retention. all statutory and corporate requirements are met; and (h) the progressive impact on existing systems and procedures of the effect of e- business, e-commerce and electronic purchasing arrangements is monitored to ensure that the security and integrity of data is maintained. Responsibilities of Director of Corporate Resources D.2.26 To ensure that all of the Council s financial systems and procedures for the ordering, purchasing and payment of suppliers for goods and services are sound and properly administered. D.2.27 To ensure that Chief Officers do not operate a local system for the ordering,

Purchasing Card & Dcal Appendix A Page 44 of 53 purchasing or payment of suppliers for goods and services, without the Director of Corporate Resources prior approval. D.2.28 To approve any changes to existing relevant financial systems and procedures prior to the commitment for change. D.2.29 To approve the form of official orders, their computerised equivalents, and associated terms and conditions. D.2.30 Other than in respect of minor payments made from petty cash or imprest accounts, or payments by schools made from local bank accounts, to make payments from the Council s funds on the Chief Officer s authorisation that the expenditure has been duly incurred in accordance with these financial regulations. D.2.31 To make payments on Chief Officers behalf, whether or not provision exists within the estimates, where the payment is specifically required by statute or is made under a court order, and, where appropriate and in conjunction with the Chief Officer, to report to the Cabinet / appropriate Committee to seek an additional budgetary allocation. D.2.32 To make payments to contractors on the approved certificate of the appropriate Chief Officer, that must include details of the value of work, retention money, amounts previously certified and amounts now certified. D.2.33 To provide advice and encouragement to suppliers and Chief Officers on making payments by the most economical means and within statutory deadlines. D.2.34 To advise Chief Officers on the availability and suitability of commitment recording facilities within the central financial accounting system, so as to maximise the usefulness of management information enquiries or reports available to them to assist them in monitoring and controlling spending against their budget allocations. D.2.35 To consider the potential impact of any loans, leasing or rental arrangements on the Council s borrowing powers, and thereby protect the Council from entering into unapproved credit arrangements and ensure that value for money is being obtained. Responsibilities of Chief Officers D.2.36 To operate the corporate system for the ordering, purchasing or payment of suppliers for goods or services unless prior approval has been obtained from the Director of Corporate Resources, apart from payments from schools own local bank accounts. D.2.37 To obtain express approval from the Director of Corporate Resources prior to the

Purchasing Card & Dcal Appendix A Page 45 of 53 commitment to, introduction or implementation of any proposals for the provision of new or replacement processes or systems for the ordering, purchasing or payment of suppliers for goods or services, or the amendment of currently approved processes or systems. D.2.38 To ensure that written or computer generated orders which are uniquely numbered are used to obtain all goods and services for their department. Since orders are controlled stationery, Chief Officers must therefore ensure that these are securely stored when not in use. D.2.39 To ensure that orders are used only for the supply of goods and services for the department, establishment or for appropriate partnership bodies; on no account must the Chief Officer allow members of staff to use official orders to obtain goods or services for their private use. D.2.40 To ensure that only those staff authorised by the Chief Officer sign or raise orders or their computer generated equivalents. D.2.41 To maintain an up-to-date list of the names of officers authorised to sign official orders and other related records on the Chief Officer s behalf and to provide a copy of those specimen signatures to the Director of Corporate Resources, together with prompt notification of any subsequent changes. D.2.42 To ensure that, prior to placing an order, their staff satisfy themselves that the goods or services ordered are appropriate and needed, that the volume is not excessive having regard to the normal rate of usage, that there is adequate budgetary provision, that quotations or tenders in accordance with the Council s Standing Orders (Competitive Tendering) have been obtained wherever necessary, and that value for money has been taken into consideration. D.2.43 To ensure that the department obtains best value for money from purchases by taking appropriate steps to obtain competitive prices for goods and services of the appropriate quality, whilst having regard to the Standing Orders for the Regulation of Contracts, and other directions, guidelines and best practices of the Council concerning co-ordinated contracts and goods and services. D.2.44 To ensure that staff do not place orders or make payments for any loans, or enter into any leasing or rental arrangements, without the prior agreement and authorisation of the Director of Corporate Resources. D.2.45 To ensure that goods or services are checked on receipt, and that this check is evidenced, to ensure they are in accordance with the order as recorded by a person other than the one who had authorised the order; and on receipt, to ensure that appropriate entries are made in the relevant asset registers, inventories or stores records.

Purchasing Card & Dcal Appendix A Page 46 of 53 D.2.46 To ensure that an invoice is neither paid nor submitted to the Director of Corporate Resources for payment unless a proper VAT invoice has been received, checked, coded and certified for payment, such certification confirming: (a) (b) (c) (d) (e) (f) (g) (h) the receipt of the goods or services; that the invoice has not previously been paid; that expenditure has been properly incurred and is within budget provision; that prices and arithmetic are correct and, where relevant, accord with quotations, tenders, contracts or catalogue prices; discounts have been taken where available; the invoice is correctly coded; the correct accounting treatment of Value Added Tax; and that appropriate entries will be made in accounting records. D.2.47 To provide for the separation of duties by ensuring that at least two members of staff are involved in the ordering, receiving and payment process, so that, where possible, a different officer from the person who signed the order, and in every case, a different officer from the person checking and certifying the invoice, authorises an invoice for payment. D.2.48 To ensure that payments, or requests for payment, are made only on an original invoice and not made on a photocopied or faxed invoice, statement or other document, unless with the agreement of the Director of Corporate Resources. On no account should supplier s invoices be prepared or altered by employees of the Council. D.2.49 To ensure that payments, or requests for payment are made so that the supplier is paid on the due date and to ensure that statutory deadlines are met. D.2.50 To encourage suppliers of goods and services to receive payment by the most economical means for the Council, but not to offer suppliers the facility of payment by direct debit without the prior approval and authorisation of the Director of Corporate Resources. D.2.51 To ensure that their members of staff are aware of their responsibilities under the local Code of Conduct for Employees, particularly with regard to declaring any links or personal interests which they have with regard to purchasers, suppliers, contractors and in respect of partnership arrangements.

Purchasing Card & Dcal Appendix A Page 47 of 53 D.2.52 To maintain, in a suitable form, a record of the details of those members of their staff who declare any links or personal interests which they have with regard to purchasers, suppliers and or contractors. D.2.53 To identify, as soon as possible after the 31st March, outstanding liabilities or goods or services received but not paid in respect of the previous or earlier years, and to make an accrual to that year s final accounts in accordance with the requirements of the Director of Corporate Resources timetable for the closure of the accounts. D.2.54 With regard to contracts for construction and alterations to buildings and for civil engineering works, to document and agree with the Director of Corporate Resources and the relevant Chief Officer, the systems and procedures to be adopted in relation to the financial aspects of such contracts, including the certification of interim and final payments, the checking, recording and authorising of payments, the system for monitoring and controlling capital schemes, and the procedures for the validation of sub contractors tax status. D.2.55 To notify the Director of Corporate Resources immediately of any expenditure to be incurred as a result of statute / court order where there is no budgetary provision, and in conjunction with the Director of Corporate Resources to report to the Cabinet / appropriate Committee to seek an additional budgetary allocation. D.2.56 To ensure that all appropriate payment records and supporting documentation are retained for the defined period in accordance with the Council s approved policy on document retention. D.2.57 To make, with the approval of the Head of Legal Services, ex-gratia payments, from the appropriate departmental budget, up to a maximum value of 1,000 to any one payee in any one year for damage to, or loss of, property, or for personal injury where such a payment is adjudged to facilitate, or is conducive or incidental to the discharge of any functions of the Council; to maintain a record detailing the payee, the amount and the reason for making the payment and to submit a report for information to the Cabinet / appropriate Committee on an annual basis. POST SCRIPT From April 2004 the Radius e-procurement system will be fully operational and this will require amendment to these Regulations.

Purchasing Card & Dcal Appendix B Page 48 of 53 PLYMOUTH CITY COUNCIL PURCHASING CARD SCHEME CARDHOLDER UNDERTAKING I declare that: 1. I have received my Company Purchasing Card, signed it immediately, and will keep it in a safe place at all times. 2. I have received, read and understood my copy of: 2.1 Cardholder Application Form 2.2 Instructions to Cardholders 2.3 Extract of Financial Regulations relating to purchasing 2.4 VAT Instructions 3. I agree to comply with the requirements of the Cardholders Application Form, Cardholders Instructions, Financial Regulations, VAT Instructions and any subsequent instructions that may be issued from time to time. 4. I acknowledge that the card is solely for my own use on Council business and is Council property. I will not give the card, or the card number, to anyone else to use. I will only disclose the card number to complete a purchasing transaction, or when reporting the loss or theft of the card. 5. I understand that the expenditure and transaction limits must not be exceeded. I understand that I may contact the Bank at any time to query transactions, or confirm available credit. I will not be permitted to amend spending limits or categories. 6. I undertake to use the card solely for the purchase of supplies for Plymouth City Council official business, and to ensure that all transactions are reviewed on a weekly basis. I understand that my card facility will be cancelled if there are unreviewed or unauthorised transactions over three months old on my card account (except for those flagged as fraudulent transactions or queries). 7. I agree to notify the Bank and the Administrators (Senior Financial Service Officers Creditors) immediately if the card is lost, stolen or liable to misuse. 8. I agree to surrender the card to my line manager for reassessment as soon as I am appointed to another post within the organisation. 9. I agree to surrender the card to the Director of Corporate Resources before leaving the Council s employ. 10. I agree, if applicable as an Emergency Response Officer that I will request Cash using my card only as a last resort and in connect with an Emergency Response Incident. Bank ref:. Transaction Limit.. Credit Limit.. Cardholder Name: Ext:.. Card Embossed Name:.. Card Start Date: Department: Cardholder signature:. Card Expiry Date:... Section:.. Date:.

Purchasing Card & Dcal Appendix C Page 49 of 53 PLYMOUTH CITY COUNCIL PURCHASING CARD TRANSACTION LOG CARDHOLDER NAME:. START DATE: No 1. Order Date* CARD NUMBER (LAST 4 DIGITS):. END DATE:.. Supplier Goods/Services Value VAT Requisitioned By Name/Ref* Ordered* * Code Cost Centre * Account (Subjective Detail) Code Classification Code (Fund Code) Goods Received Reviewed in DCal* 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. * Mandatory field (info must be completed) Signed:.. Date:

Purchasing Card & Dcal Appendix D Page 50 of 53 PLYMOUTH CITY COUNCIL PURCHASING CARD SCHEME TAXATION VAT ON PURCHASES VAT capable suppliers In D.Cal, transactions from VAT capable suppliers are identified by a flag. Whenever a transaction has a flag against it you do not need to do anything further as regards the VAT. This means that the VAT is separated at source and no VAT invoices or receipts are needed to reclaim VAT back from Her Majesty s Revenue and Customs (HMRC). However if purchasing cards have been used to pay for grant funded expenditure, then a VAT invoice will be required by the card holder in order for grants to be audited and claimed. Non VAT capable suppliers You may be required to use your purchasing card with non VAT capable suppliers. Where this is the case the transactions will go through as normal Visa card transactions and no tax (VAT) will be assigned to the transactions in D.Cal. In other words, the tax will not be complete or identified because there will be no flag displayed against the transaction in D.Cal. On all tax not complete transactions you must assign the relevant rate of VAT to the transactions, to complete the tax, prior to reviewing the transactions in D.Cal. The cardholder user guide explains how to do this. If you are assigning 0% VAT it is imperative that you select the correct VAT description. If you are assigning 17.5% VAT then you must obtain a VAT invoice as evidence for HMRC. A standard VAT invoice where the value of the supply exceeds 250 (including VAT) should have the following information: An identifying number Tax point (date of supply) Date of issue Supplier's name, address and VAT registration number The name and address of the person to whom the goods or services are supplied. Where goods/ services are supplied to the Council, then the invoice must include "Plymouth City Council" Description of goods / services For each description, the quantity, rate of VAT and amount payable excl VAT Unit price (where the supply can be broken down into countable elements) Total amount payable, excl VAT Rate of any cash discount

Purchasing Card & Dcal Appendix D Page 51 of 53 Each rate, and amount, of VAT chargeable (optional) Total amount of VAT chargeable Less detailed VAT invoice (including till rolls) where the value of supply is 250 or less (including VAT) should have the following information: Suppliers name, address and VAT number Tax point (date of supply) Description of supply For each rate of VAT chargeable, the gross amount payable including VAT, and the VAT rate applicable Total charge including VAT, for each rate of VAT chargeable **If any of the above details are missing the VAT may not be recoverable** Purchasing from non-uk VAT-registered suppliers Where goods are purchased from a non-uk trader, or services are supplied to the Council in the UK by a non-uk supplier, you should notify the company of the Council's VAT- Registration No. (144 6758 45). This will enable the supplier to zero-rate the supply and no VAT will be charged. The Council has to make adjustments on its VAT Return in these cases, so any documentation should be sent to the Corporate Accountants VAT Section. Without the Council's VAT Registration No., the supplier will have to charge VAT at the rate relevant to the particular country - this VAT cannot be recovered by the Council and will therefore result in an additional cost to your service. (NB - example of service supplied in the UK would be purchasing software licence from Microsoft.) Where services are supplied outside the UK by a non-uk trader, VAT is chargeable by the supplier at the relevant rate and cannot be recovered by the Council - there is no provision for zero-rating. An example of this is where hotel accommodation or meals are purchased in another country in respect of a Council officer on official business. In these situations, the total cost (including VAT) should be coded to the relevant ledger code. For full details on accounting for and calculating VAT, please refer to the VAT Handbook on the Document Library (Intranet/Document Library/Document Title/VAT Handbook) or contact the Corporate Accountants VAT Section on 01752 30(4432) Tax Items (17.5%)

Purchasing Card & Dcal Appendix D Page 52 of 53 Summary VAT capable suppliers Transactions are identified by a flag in D.Cal. The VAT is separated at source and no VAT invoices or receipts are needed. Non VAT capable suppliers Transactions that DO NOT have a flag in D.Cal need the tax completing. This means that you must either assign 0% VAT along with the relevant description, or 17.5% for all other transactions. If you are assigning 17.5% VAT to a transaction in D.Cal, then you MUST have the VAT receipt or invoice as evidence. This must be retained for 2 years plus current year. If you do not have a VAT receipt or invoice then you should NOT assign 17.5% in D.Cal, and instead leave the transaction as tax not complete. If we try to recover VAT that we are not entitled to HMRC will charge us interest (currently 7.5%) and penalties, for any errors found but not corrected before the VAT return is submitted. Please Note: You CANNOT reclaim VAT on entertainment. Plymouth City Council is empowering you by allowing you to use purchasing cards, and benefiting from the flexibility that the cards offer. However you must follow the rules, detailed above, to correctly process tax not complete transactions.

Purchasing Card & Dcal Appendix D Page 53 of 53 2009 BILLING PERIODS FROM 5th January 3rd February 3rd March 2nd April 5th May 3rd June 3rd July 4th August 3rd September 5th October 3rd November 2nd December TO 2nd February 2nd March 1st April 4th May 2ndJune 2ndJuly 3rd August 2nd September 4th October 2nd November 1st December 4th January