Implementing a Purchase Card System

1. Implementing a Purchase Card System Angela Kirby Coventry City Council

2. Background • Began implementing Oracle iProcurement (electronic purchase order system) in 2003 • Purchasing cards were rolled out as a complementary purchasing tool (but not integrated to iProcurement) • Roll out undertaken directorate by directorate to give structure to the project • Approx 1,000 live cards at the moment

3. Purchase Card Strategy • Purchasing Cards used where iProcurement isn’t practical. e.g. • Rail and air travel • Petty cash purchases • Subscriptions/training courses • Food Purchases • Internet purchases

4. Purchase Card Strategy • Purchasers are directed to use the cards for low value, high volume purchases • Not restricted to budget holders/managers • We have found that admin/clerical staff make the best use of cards and produce the best efficiencies

5. Resources • Realise that this will need some resource to promote, manage and administrate the programme – especially ongoing • At the beginning we had input from Procurement, Finance and Audit to compile the processes and guidance notes • Approx ¾ post to manage our programme

6. Changing the culture within the organisation • There may be resistance to the introduction of cards – some people are uncomfortable with them • Can be seen as an easy way to spend money – it is!! • Need to convince Senior Managers that card holders won’t go on a spending spree • Need to convince card holders that this is just an alternative purchasing tool

7. Training • All card holders trained before receiving their card • They are given verbal and written instructions on what they can use the card for etc • Shown how to use the purchase card system • Card holder signs for the card and that they accept the conditions under which it is issued

8. Approving transactions • All approvals are now done on line via the purchase card system • Card holders review their transactions, calculate the VAT (if applicable) and revise the cost centre (if applicable) • Approver (usually line manager) then approves the transaction • All bank statements/transaction logs/receipts collected centrally for retention

9. Controls • Transaction and monthly limits • Only give access to limits appropriate to the business needs • Access to categories • Kitchen staff only have access to grocery/food type categories • Building Services staff only have access to building materials type categories

10. Monitoring • We monitor card usage monthly from the transaction reports • Particularly look for compliance with corporate contracts • Users are contacted directly where there may be an issue

11. Any Questions