The Journey Towards Implementing
a Successful Purchase Card Scheme
Tony Brett
Head of Procurement
University of Bath
The start of the journey…
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2012/13
64 cards
£1.2m expenditure per annum
6514 transactions
• 3 cards in central Purchasing
• 1 card = 40% of the value of transactions
Some of the problems…
• Strategic procurement bogged down with
tactical transactions
• Limited rationale for issuing cards
• No guidance for card holders
• Limited monitoring of cards
Audit to the rescue!
AUDITMAN
Audit Report:
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No written guidance for card holders
Roles and responsibilities unclear
Inconsistent record keeping
Card holders unaware of link to
Financial Policies
Lack of authorisation to use cards
Cards issued without a needs
assessment
List of cardholders not maintained
Levels of transactions not monitored
Inconsistent use of cards
Fraud!
EDUCATION BUYER CHARGED WITH CREDIT CARD FRUAD
What did we do?
• Addressed all audit concerns
• Created a system to enable “appropriate use”
of purchase cards.
– Where POs are not accepted
– NOT where a contract already exists
– Procurement rules still apply
Specific actions:
• Redefined role of central purchasing
• Guidance on issuing cards
• Created card-holder guidance (inc security
procedures)
• Created a card-holder agreement
• Created standard templates for card holders
• Reengaged with card provider
• Delivered training to all card holders
• Issued more cards
Purchase Card Agreement
Purchase Card Agreement
I acknowledge that breach of any of the above rules may
result in the purchase card being withdrawn from my use.
Failure to follow these rules could constitute a serious breach
of financial regulations and could result in investigation and
action under the University's Disciplinary Policy & Procedure.
Specific actions:
• Redefined role of central purchasing
• Guidance on issuing cards
• Created card-holder guidance (inc. security
procedures)
• Created a card-holder agreement
• Created standard templates for card holders
• Reengaged with card provider
• Delivered training to all card holders
• Issued more cards
Where are we now?
• 77 cards in use – all card holders trained with
signed card agreements.
• 3% of transactions via central procurement
• Monitoring programme has begun
The results so far…
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Monitored 6 card holders
Min of 1 monitoring session per annum
Min of 1 transaction per month
Approx. 45min per card holder
Reduction in inappropriate spend (exc Travel!)
No negative feedback…so far.
Where next?
• Review provider offering
• Improve use of technology (remote
monitoring)
• Continue monitoring
Key Points
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Fully understand your current risks/issues
Define what “appropriate use” means to you
Engage all card holders in the process
Keep it simple!
Monitor use
Thank you