Government Purchasing Card (GPC) Procedures

Financial and Commercial Services

Government Purchasing Card (GPC) Procedures

Date: Jan 2010

CONTENTS

Contents

1. INTRODUCTION .................................................................................................................. 2 1 GENERAL RULES REGARDING USE OF THE GPC CARD ............................................ 2 2 PLACING AN ORDER USING THE GPC CARD ............................................................... 3 a) Using the GPC card in person ..................................................................................... 3 b) Using the GPC card by telephone ............................................................................... 3 c) Using the GPC card for ordering by mail ..................................................................... 3 d) What if the supplier refuses to accept your card? ........................................................ 3 e) Do you need a VAT Invoice/receipt ............................................................................. 3 f) Recording purchases on the Transaction Log or Statement ........................................... 3 g) What to do if goods need to be returned...................................................................... 4 3 ADMINISTERING YOUR STATEMENTS .......................................................................... 4 a) Receiving monthly statements ..................................................................................... 4 b) What to do if you dispute an item on the statement ..................................................... 4 c) The reconciled statement ............................................................................................ 5 4 CARD HOUSEKEEPING ................................................................................................... 5 e) Cardholders liability ..................................................................................................... 5 5 PURCHASING SERVICES RESPONSIBILITIES ........................................................... 5 6 FINANCE (CREDITORS) RESPONSIBILITIES .............................................................. 6 7 FINANCE (Management Accounts) RESPONSIBILITIES.................................................. 6 8 SUMMARY ..................................................................................................................... 6

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1. INTRODUCTION

The University has identified that there are advantages to be gained by using Government Purchasing Cards (GPC) as part of its procurement and financial accounting processes.

The basic objective of using the cards is to reduce the paperwork and administration time involved in the ordering and invoice process for one off, low value (less than ?1000), goods and services from Contracted and Non Contracted Suppliers.

Please read the following procedure carefully as FAILURE to adhere to them WILL result in the University GPC card being withdrawn.

1 GENERAL RULES REGARDING USE OF THE GPC CARD

The University GPC Card is issued in your name, which means that you are responsible for ensuring that the purchase transactions that are made against it are for legitimate University business requirements.

Personal use of the card is not permitted, even if you intend to repay the cost of the transaction.

You must keep the GPC card and PIN number safe and secure at all times.

It is not permitted to set up direct debit or standing order payments against the card. Please refer to the Finance Department for further advice on these types of payments

All purchases made with the card must be for the benefit of the University and can only be for items that would normally be purchased by you.

Purchases against the card must not contravene the Universitys Financial Regulations, Travel & Expense or the Entertaining and Hospitality Policies. Copies of which can be found at

University GPC Cards are not provided as a means to by pass the Purchase Order System (POP). Purchases, where possible should be made from suppliers who are already set up on the POP system. The University has numerous contracts and agreements in place with suppliers, details of which can be found on the Purchasing Web pages brad.ac.uk/admin/purchasing/

Convenience must not be allowed to override all other considerations such as warranty, after-sales service.

It is not permissible to split an order with a supplier because the value exceeds your individual card transaction limit.

All purchases must be supported by a written request or email, which must be kept on file in the department for audit purposes.

Travel ? the cardholder must declare the date, destination and purpose of the travel expense. (Inland Revenue Requirement).

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 Hospitality ? the cardholder must declare the date, organisation, number of external and internal persons present and the purpose of the hospitality. Hospitality can only be given in accordance with the Universitys Entertaining and Hospitality Policy.

2 PLACING AN ORDER USING THE GPC CARD

a) Using the GPC card in person

When making a Purchase at a supplier outlet you will be asked to confirm the transaction by entering your unique PIN number. You must never disclose this PIN number to anyone. Also you cannot place an order by phone and then send someone else with the GPC card to collect the goods.

b) Using the GPC card by telephone

Once a supplier is identified, proceed to purchase by quoting your card details. Instruct the supplier to mark the packaging/paperwork with ,,GPC purchase card and for the attention of [name and location]. If applicable, a VAT invoice/receipt clearly marked GPC Purchase Card paid should be sent with the goods or directly to you. The supplier may request details of the University postcode for a security check. If asked for the Richmond Road postcode BD7 1DP should be quoted.

c) Using the GPC card for ordering by mail

Orders can be made if there is an application form that can be completed for Visa payment. The packaging and accompanying paperwork must be marked ,,GPC purchase card and ,,for the attention of [name and location]. If applicable, a VAT invoice/receipt clearly marked GPC purchase Card paid should be sent with the goods or directly to you.

d) What if the supplier refuses to accept your card?

If the supplier refuses to accept your card, contact the bank in the first instance, they should be able to advise what the problem is. Then if you are not able to resolve the problem you may need to contact the University Card Administrator.

e) Do you need a VAT Invoice/receipt

The University does not reclaim Vat paid on its purchases therefore it is not necessary for you to obtain an invoices / receipts that shows the VAT element.

All invoices/ receipts though must be attached with your statement and sent to the finance department for audit purposes.

f) Recording purchases on the Transaction Log or Statement

You must record all your purchases on a transaction log or the monthly statement and include all the relevant information, requisitions, invoices/receipts and goods received notes with it. You should ensure that there is sufficient detail to facilitate reconciliation to the card statement at the end of the month.

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g) What to do if goods need to be returned

The following Procedures should be followed:

Inform the supplier immediately.

Make arrangements for the replacement goods to be sent to you (where applicable)

Return the rejected goods to the supplier, or arrange for supplier to collect them.

Enter details onto the Transaction Log sheet or monthly statement.

When the monthly statement is received, check to ensure that the supplier has credited your account, and recharged you where applicable.

3 ADMINISTERING YOUR STATEMENTS

a) Receiving monthly statements

Each month you will receive your University Card statement. Match this statement against your Transaction Log sheet (if kept). Once verified that the transactions are correct, add the relevant cost codes against each transaction.

Sign the statement, attach all relevant paperwork and pass it to your budget manager for authorising.

b) What to do if you dispute an item on the statement

Occasionally you may not be able to reconcile your log sheet against the monthly statement for one of the following reasons:

Transactions you are not aware of Contact the University Card issuers Customer centre, the telephone number will be on the reverse of your card and request details of the transaction in question. Once you are sure that it is not a transaction you have forgotten about send Form 2 (see Appendix 2) to the University Card Administrator for action. The bank will also issue you with a form to complete so the transaction can be credited against your account.

Supplier's price is greater Contact the supplier direct in order to discuss the difference. If you are unable to solve the difference, complete Form 2 and send to the University Card Administrator for action.

Billed for goods not yet received If the goods have not been despatched, inform the University Card Administrator. It is a Visa regulation that the transaction is not processed until the goods are despatched. If the goods have been despatched check the delivery address with the supplier and follow up with the relevant store/delivery point.

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