Slough Borough Council

Purchasing Card Policy

Document Control

Change Record

Date / Author / Version / Change Reference
T
21/02/12 / Joanna Anderson / 1.0 / Initial Draft

Reviewers

Position
Procurement & Contracts Analyst
Community & Wellbeing SMT

Slough Borough Council Best Practice Guide for using Purchasing Cards

This policy will apply to all individuals who are provided with a Slough Borough Council Purchasing Card.

The Policy is designed to ensure that there are clear internal arrangements for the effective use and management of purchasing cards.

The Policy establishes the responsibilities of employees of the Council when usingpurchasing cards.

The main advantages to Slough Borough Council of using purchasing cards are:

Fewer steps required to make a purchase - increasing efficiency
Reduces the cost of payments – with other methods the cost of processing often exceeds the value of the purchase
Individuals are more accountable for their purchases
Suppliers are paid more quickly

1.Slough Borough Council Purchasing Cards

1.1Policy

1.1.1The card is only to be used by the named cardholder. The named cardholder is responsible for all purchases made against their card.

1.1.2Purchasing cards will not be issued to consultants or temporary agency staff.

1.1.3Failure to comply with the guidance contained within this policy will result in the card being withdrawn and disciplinary action being taken.

Managers Responsibilities

1.1.4It is the manager’s responsibility to ensure that the use of purchasing cards does not circumvent the council’s procurement processes and procedures and contract procedure rules.

1.1.5To monitor the use of purchasing cards through periodic audits, checks of usage and by using monitoring reports provided by the Procurement & Contracts Analyst, and ensure any misuse results in the card being withdrawn and appropriate disciplinary action taken in accordance with the Disciplinary Policy.

1.1.6No Slough Borough Council purchasing cards will leave the organisation at the end of a term of employment. In the event of a cardholder leaving our employment, the card must be returned to the Procurement & Contracts Analyst.

Cardholders Responsibilities

1.1.7Cardholders must only use the card for official Council purchases. Any misuse of cards may result in the card being withdrawn and disciplinary action being taken.

1.1.8Cardholders must ensure that purchases are reasonable and necessary in the smooth running of the service.

1.1.9It is the cardholder’s responsibility to ensure that the card details are kept secure and not disclosed to others.

1.1.10It is the Cardholders responsibility to ensure that the individual transaction log and receipts are sent to the finance team within 10 days of receipt of their statement.

1.1.11The purchasing card should not be used in conjunction with any other reward scheme, e.g. Nectar, Tesco Club Points, Boots Advantage Points, Argos Vouchers

1.2Purchasing Card Process

1.2.1The cardholder may place an order using the purchasing card by telephone, internet or by visiting the supplier. The cardholder must record each purchase on their transaction log (Appendix E).

1.2.2Cardholders will receive a monthly statement from the Co-operative Bank detailing their
monthly transactions.

1.2.3On receipt of the monthly statement, the cardholder must complete the detail section of their online account via the Co-operative online portal for each transaction on their statement. This should be a short summary of the item(s) purchased and why. The transaction log and relevant receipts need to be sent to your finance officer within 10 days of receipt of the card statement.

1.2.4 It is the cardholder’s responsibility to ensure that all purchases made on their card are validated against their transaction log. Any transactions of a fraudulent nature, must be reported to Co-operative Services on0845 600 6000. This service is available 24 hours a day, 7 days a week. For security reasons, identification questions will be asked. Cardholders must also advise the Procurement & Contracts Analystwithin 24 hours (where practicable).

1.3Suppliers and Categories of Spend

1.3.1Council purchasing cards can be used with any supplier that accepts payment by VISA. The cardholder should follow the council’s Contract Procedure Rules when deciding whether it is appropriate to procure goods, services and works via their purchasing card.

1.3.2Where there is a corporate contract, the contracted supplier must be used. A list of corporate contracts is on the Procurement page of SBC Insite.

1.3.3Where there is no corporate contract, the cardholder must comply with the Contract Procedure Rules to demonstrate value for money for all purchases.

1.3.4Every supplier accepting VISA transactions has a ‘merchant category code’. A list of categories is shown in Appendix B.

1.3.5Standard cards have merchant category 34 (cash) blocked and categories where corporate contracts exist. A full list of standard blocked categories can be found in Appendix B. Changes to blocked categories can be made at any time with relevant senior management approval.

1.3.6VISA will send the Procurement & Contracts Analyst details of any attempts to purchase from blocked merchant categories.

1.4Transaction Limits and Monthly Spend Limits

1.4.1Single transaction limits are built into each card. The standard transaction limit is £500. Different transaction limits can be requested when applying for a purchasing card however these will require senior management approval. The limits set include any VAT where applicable.

1.4.2Purchases above the card’s transaction limit will be declined.

1.4.3Where goods or services exceed the single transaction limit, cardholders must not under any circumstances,break down transactions into smaller value purchases to disaggregate a larger purchase and avoid this control limit. Attempts to avoid this control may be declined and details passed to the Procurement & Contracts Analyst.

1.4.4Monthly credit limits are built into each card. The standard monthly limit is £1000. Different monthly limits can be requested when applying for a purchasing card, however these will require senior management approval

1.4.5Transactions that take the value of the monthly purchases over the monthly credit limit will be declined.

1.4.6If a cardholder finds that either their single transaction or monthly transaction limit is insufficient, they should discuss possible changes with the relevant Director/Assistant Director. Requests to change any credit limits must be made through Corporate Procurement.

1.5Billing

1.5.1The council will make one monthly payment via direct debit to cover all transactions.

1.5.2Finance will recharge the amount due from each cardholder’s cost centre. They will use your transaction log and receipts to verify the recharge amount.

1.5.3Assistant Directors will receive monthly usage information on the 30th of the month following the receipt of the invoice. This will include, but is not limited to, the total amount spent;any VISA notification alerts (i.e. blocked transaction requests) regular retailer expenditure and one-off excessive payments.

2.Obtaining a Slough Borough Council Purchasing Card

2.1New users

2.1.1The Procurement & Contracts Analyst issues all purchasing cards.

2.1.2Requests for purchasing cards should be made by completing a cardholder request form. These are available from Corporate Procurement or via the procurement section of the intranet.

2.1.3Employees will not be allowed more that one purchasing card.

2.1.4Section 2 of the cardholder request form must be completed in full. Corporate Procurement will complete Section 3.

2.1.5Cardholder request forms without a cost centre code and directorate will be returned.

2.1.6The form should be returned to the Procurement & Contracts Analystfor the Authorised Signatures in Section 3 to be obtained. These must be the council’s main cheque signatories (Appendix F).

2.1.7Further merchant category blocks may be made by the Procurement & Contracts Analyst before the form is sent to the Co-op. This will block categories where corporate contracts or restricted items (e.g. cash, fuel) haven’t been blocked by the card requestor/budget holder.

2.1.8The new card will be sent to the Procurement & Contracts Analyst. Upon collection you will be required to provide your driving licence or passport for ID purposes and to complete a Cardholder Agreement form (Appendix D). This sets out your responsibilities as a cardholder.

2.1.9Budget holders can request changes to a Cardholder’s transaction limits or blocked merchant categories by completing the Changes to Purchasing Card Controls Form in Appendix C.

2.1.10A yearly audit will be undertaken to ensure that monthly limits and blocked merchant categories are in line with the policy guidelines.

2.2Card Security

2.2.1Cardholders must keep their card secure at all times and be as vigilant with its transactions as they would with their own card.

2.2.2Cardholders must not allow anyone else to use their card. The cardholder is responsible for all transactions on the card.

2.2.3Lost or stolen cards should be reported immediately to Co-operative Services on 0845 600 6000. This service is available 24 hours a day 7 says a week. Cardholders must inform the Procurement & Contracts Analystwithin 24 hours (where practicable).

2.2.4The bank will issue replacement cards to the Procurement & Contracts Analyst.

2.2.5If you subsequently find a card you have reported as lost or stolen, do not attempt to use the card. You must return it immediately to the Procurement & Contracts Analyst.

2.3Unwanted Cards and Leavers

2.3.1All unwanted cards should be returned to the Procurement & Contracts Analystfor cancellation.

2.3.2When a cardholder leaves the authority, the cardholders Line Manager must collect the card and return it to the Procurement & Contracts Analyst.

2.3.3For security reasons, credit cards must be handed to the cardholders Line Manager during any periods of extended leave including maternity.

Appendix B:

Merchant Categories

Merchant Category / Blocked SBC / Blocked Schools

Building Services

/ 

Building materials

Estate and Garden Services

Utilities and Non-auto fuel

/  / 

Telecommunication services

/ 

Catering and catering supplies

/ 

Cleaning services and supplies

/ 

Training and Educational

Medical supplies and services

Staff – Temporary Recruitment

/  / 

Business clothes and footwear

/ 

Mail order/direct selling

Personal Services

Freight and Storage

/ 

Professional Services

Financial Services

Clubs/Associations/Organisations

Statutory bodies

Office stationery, equipment and supplies

/ 

Computer Equipment and Services

/ 

Print and Advertising

/ 

Books and periodicals

Mail and Courier Services

/ 

Miscellaneous commercial supplies

/  / 

Vehicle Servicing and Spares

/ 

Automotive Fuel

/ 

Travel

/ *

Auto Rental

/ 

Hotels and Accommodation

/  *

Restaurants and Bars

/ *

General retail and wholesale

Leisure activities

Miscellaneous

/  / 

Cash

/  / 

* Except Directors and Personal/Executive Assistants

Appendix C:

Changes TO PURCHASING Card Controls Form

Cardholder's name

Department

Section

Work telephone no.

Card Number

Changes to card controls

Old / New
Transaction limit
Monthly credit limit
Block / Unblock
Blocked categories
Old / New
FIS objective code

Authorisation

Budget holder signatureDate

Assistant Director Signature ______Date ______

DATA PROTECTION ACT 1998 - The data you provide on this form will only be used for the purpose of monitoring and managing Purchasing Card transactions. However, Slough Borough Council must protect the public funds it handles and so may use the information on this log to prevent and detect fraud and may also share the information, with other organisations that handle public funds for the same purpose.

APPENDIX D:

CARDHOLDER AGREEMENT FORM

Surname
Mr / Mrs /Miss
Forename(s):
Other Initials
Employee ID Number
Tel. No
Department
Section

a)As a Cardholder I agree to comply with the Slough Borough Council's guidance on using Purchasing Cards. I also agree to abide by the Bank’s Conditions of Use printed on the Card Request Form and enclosed with the Purchasing Card.

b)I understand that it is my responsibility to keep the purchasing card safe and secure.

c)I have received and understood that I am being entrusted with a corporate Purchasing Card and will be making financial commitments on behalf of the Council.

d)I understand that Slough Borough Council is liable to the card provider for all the charges made on the card.

e)I agree to use this card for Slough Borough Councilbusiness purchases only and agree not to charge personal purchases. I understand that Slough Borough Councilwill audit and monitor the use of this card and report and take appropriate action on any discrepancies.

f)I will follow the established procedures for the use of the card. Failure to do so may result in either revocation of my use privileges or any other disciplinary actions, including termination of employment.

g)I have been given a copy of the Purchasing Card Policy and understand the requirements for the Card’s use.

h)I agree to return the Card immediately upon request or upon termination of employment (including retirement). Should there be any organisational change, which cause my purchasing requirements to change, I agree to return my card and arrange for a new one, if appropriate.

i)If the card is lost or stolen I agree to notify Co-operative Bank immediately by telephone and the Procurement & Contracts Analystas soon as possible thereafter.

Card Number
Monthly Credit Limit
Single Transaction Limit
Cardholder's Signature
Date

Appendix E:

Cardholders Daily Log Sheet

(NotE: TEMplate available on PROCUREMENT SITE on SBCinsite in EXCEL SPREADSHEET FORM)

Month: / June / Complete shaded areas only
Card Number: / 4485 / 7002 / 9000 / 9999
Cardholder Name: / A Holder
Cardholding Department: / Directorate
Cost Centre Control Code: / S / B414 / 1828 / 0000 / (For Finance use)
Statement Date: / 01/02/2012
Ref No. / Date / Supplier Name / Expenditure Code / Transaction Amount (GBP) / Contra Amount / Description of Goods / Date Goods Received / St Ref:
Authority / Cost Centre / Subjective code / Sub detail / GBP / GBP
1 / 09-Jun-06 / Office world / S / B414 / 0401 / 0000 / 127.66 / Office Chair / 12/06/2006
VAT / S / X001 / 5500 / 5502 / 22.34 / Office Chair
2 / 13-Jun-06 / Acme Training Co. / S / B414 / 1070 / 0000 / 468.09 / Management Course / 14/06/2006
VAT / S / X001 / 5500 / 5502 / 81.91 / Management Course
3 / 14-Jun-06 / Acme Training Co. / S / B414 / 1070 / 0000 / -212.77 / Management Course Credit / 14/06/2006
VAT / S / X001 / 5500 / 5502 / -37.23 / Management Course Credit
4 / S
VAT / S / X001 / 5500 / 5502
5 / S
VAT / S / X001 / 5500 / 5502
6 / S
VAT / S / X001 / 5500 / 5502
7 / S
VAT / S / X001 / 5500 / 5502
8 / S
VAT / S / X001 / 5500 / 5502
9 / S
VAT / S / X001 / 5500 / 5502
10 / S
VAT / S / X001 / 5500 / 5502
11 / S
VAT / S / X001 / 5500 / 5502
12 / S
VAT / S / X001 / 5500 / 5502
Contra (for Finance use) / S / B414 / 1828 / 0000 / 450.00 / Contra Code
Statement Total / 450.00 / 450.00
Cardholders Signature: / Finance Authorisation:
Print Name: / Print Name:
Position: / Position:
Date: / Date:
Cost Centre Manager Authorisation: / Posted to Ledger by:
Print Name: / Print Name:
Date: / Position:
Date:

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APPENDIX F:

COUNCIL CHEQUE SIGNATORIES/

PURCHASING CARD SIGNATORIES

Designation
Strategic Director for Regeneration, Housing & Resources
Director of Customer and Community Services
Assistant Director of Finance & Audit
Corporate Finance Partner (CWB)
Senior Accountant

* List is current signatories as at 01/03/2012

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