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Who am I? Rhidian Morgan (MCIPS) Head of Procurement The South West Wales Higher Education Procurement Partnership Swansea University Swansea Metropolitan University Trinity College Carmarthen
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Swansea University Students - 14,000 Turnover - £150m Non Pay Spend - £50m Payments (2008/9) - 74,000
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Why Did Swansea University Implement Purchasing Cards?
To improve efficiency To speed up the procurement process To reduce the paper trail Perceived to be Good Practice (E Procurement) Savings
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Who uses the cards? Devolved Budgeting Heads of Department? Authorised Signatories? Purchase order in putters?
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What are Purchasing Cards used for?
Low value transactions High volume repeat transactions One off transactions Foreign purchases Internet Transactions Conferences Travel and Hotel Accommodation
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What can’t Purchasing cards be used for? Hospitality & Entertainment Cash Membership subscriptions Personal Expenditure
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What controls are in place?
Merchant categories Individual transaction limits Monthly transaction limits Purchasing Card Procedures The Purchasing Policy & Procedures
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The advantages of using Purchasing Cards? Speeds up the order / delivery process Reduced paper trail (Less invoices / orders) Reduction in verbal / confirmation orders Accurate prices agreed Reduced invoice queries Improved Management Information Savings
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The disadvantages of using Purchasing cards?
Lack of control over suppliers used Lack of control over products purchased
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Savings
OGC state that a saving of £28 can be claimed for each transaction processed via Purchasing cards
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Fraud (extract from the Mail on Sunday 13/09/09)
“Mr Bumble and a '£60,000 spending spree' with his Government credit cards”…..“A civil servant went on an extraordinary £60,000 spending spree using Government credit cards to fund a luxury lifestyle and his passion for musical theatre, it has been claimed”…..
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Purchasing Card Transactions Total Purchasing Card Transactions
10000 9000 8000 7000 6000 Transactions 5000 Series1
4000 3000 2000 1000 0 2005/6
2006/7
2007/8
2008/9
Year
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Monthly Purchasing Card Transactions Monthly Purchasing Card Transactions 1200
800
2005/6 2006/7
600
2007/8 2008/9
400
2009/10
200
Ju ly
Ju ne
M ay
Ap ri l
0 Au gu Se st pt em be r O ct ob er N ov em be D r ec em be r Ja nu a Fe r y br ua ry M ar ch
Number of Transactions
1000
Month
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Monthly Purchasing Card Expenditure
Monthly Purchasing Card Expenditure 250,000 2005/6 2006/7
150,000
2007/8 100,000
2008/9 2009/10
50,000
ly Ju
Ju ne
M ay
Ap ril
0 Au gu Se st pt em b O er ct ob er N ov em b D ec er em b J a er nu a Fe r y br ua ry M ar ch
Value £
200,000
Month
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Average Transaction Values Average Purchasing card Transaction value £250.00 2005/6 2006/7
£150.00
2007/8 £100.00
2008/9
£50.00
2009/10
Ju ly
M ay Ju ne
Ap ril
£0.00 Au gu Se st pt em be r O ct ob N ov e r em b D ec er em be r Ja nu a Fe r y br ua ry M ar ch
Value £
£200.00
Month
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Conclusion Risk of Fraud Procurement Processes improved Reduced Invoice queries Reduction in paperwork Savings
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Janet Reed Aberystwyth University How Purchasing Cards can brighten up your life!
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