SOUTHAMPTON UNIVERSITY HOSPITALS NHS TRUST PURCHASING CARD PROCEDURES

Transcription

1 SOUTHAMPTON UNIVERSITY HOSPITALS NHS TRUST PURCHASING CARD PROCEDURES 7.1 Introduction to Purchasing Cards and their use These specific procedures for purchasing cards must be read in conjunction with the Trust procedures for ordering goods and services found elsewhere in this document *, and UNDER NO CIRCUMSTANCES should this method of purchasing be used to substitute or replace other Trust-approved methods, or to purchase product ranges described within the full procedures. For example, stationery items must only come via Guilbert Niceday (see section 5) and uniforms must follow the procedures in section 9. Purchasing cards are provided to allow the procurement of low value items with the process being managed by the user department. The card can be used for items like: Accommodation/Travel Training courses Estates Department consumables Other low value one-off purchases, which must be in compliance with the procedures laid down for Purchasing Cards. Setting up an account To obtain a purchasing card you must contact the Purchase Card Administrator who will set up the account for you subject to correct authorisation. You will be asked to apply using the form in Appendix 1, which must be approved by your line manager. The Trust is committed to the use of Purchasing Cards for all low value orders/purchases from approved sources, details of which are available from your Supplies organisation. Local systems must be set up to ensure the HM Government Procurement Card Best Practise Guide is followed and adopted, an extract of which is shown in section 7.6. *Southampton and Winchester Health Supplies. Procedures for Ordering goods and Services. June 2008

2 7.2 Cardholder s Procedures Cardholders will be required to sign an agreement (see Appendix 2) when the card is handed to them, indicating that they understand the use of the card, and also what will happen if misuse occurs. (A copy of this agreement must be retained by the cardholder for future reference.) A transaction limit including any VAT payable will be set for each individual cardholder not to exceed 500 per single transaction and on a monthly basis expenditure on each card will not exceed 5000 per cardholder as a standard practise. Purchases must comply fully with all local and nationally agreed contracts and standards. There are some areas where Purchasing Cards should not be used. These are as follows: Cards must not be used to purchase items specifically identified in the procedures for ordering goods and services as having an existing Trust-approved method of procurement (e.g.: stationery). Cards must not be used for any personal purchases. Cards must not be used for furniture or furnishings. Cards must not be used for cash acquisitions. Cards must not be used for medical equipment or consumables of any kind. Cards must not be used for any goods or services that will affect the fabric of Trust buildings or any other property. Cards must not be used for the purchase of petrol IMPORTANT NOTE: Purchasing Cards must only be used by the named cardholder, and permitting others to use them will put you in breach of your individual cardholder agreement. Purchasing cards can be used for travel and subsistence (not petrol), but this expenditure must be in line with the allowable limits set by the Trust, which are obtainable from Human Resources (checks should also be made by Authorising Managers that this expenditure is not duplicated on a travel & subsistence form). The Supplies Department have prepared a listing of issues that must be considered prior to making purchases, in respect of hazards and other constraints (see section 7.5), and purchasing cards should not be used to obtain these items. If you need further advice on these matters, then please consult with the Supplies Department. At all times cardholders should remember that the use of purchasing cards is simply another means of expenditure from budgets within their directorate. Therefore, the same amount of care should be taken when using purchasing cards as would be taken for any other purchases or expenditure made from directorate budgets, including the implementation of local systems to ensure the best practice guide in section 7.6 is complied with. When using the Purchasing Card you will find there are two aspects to it. The first is the pure purchasing aspect, which can only be used with suppliers who have been specifically signed up to the Nat West Purchasing Card arrangement. The other aspect of the card is the Visa (credit card); this can be used with most suppliers displaying the Visa symbol for sales and transactions, subject to certain restrictions (for more information speak to the Purchasing Card Administrator).

3 Purchases can be made either in person by presentation of the card by the cardholder to the supplier, over the phone quoting the card number, on the internet, or from mail order companies. Purchasing Cards can be used for purchases from charitable funds, providing certain checks are made. Firstly, cardholders should ensure the fund balance is in credit and can cover the value of the proposed purchase. Secondly, there may be a VAT advantage in buying certain types of goods from charitable funds; please refer to the guidance below for details. The transaction log (see Appendix 3 attached excel document) should be maintained at all times, listing fully all purchases made via the card at the time of the transaction, and all associated documentation from the company should be held with the log sheet. When recording purchasing card transactions, the following should be noted: All details required by the log e.g.: supplier name; and total values per supplier/transaction (not individual product costs). The cost centre and account code to which it is to be charged. If VAT is to be reclaimed this will also need to be noted on the log and record the total exclusive of VAT; the amount of VAT and the Net Value of the invoice. If VAT is not reclaimable then only the total value of the invoice need be recorded. The internal requisition or control sheet number. The supplier s reference (especially important for areas like patient appliances). The holder of the Purchasing Card cannot sign off the log sheet this has to be done by another authorised signatory When using the Purchasing Card, the following should ALWAYS be quoted as a reference number to the supplier: VIS0000, where 0000 represents your transfer point number. For Example, VIS1234 represents transfer point no This will enable identification for delivery purposes by Stores, and also provide an individual identifier. In addition, the cardholder should provide a telephone number to the supplier for ease of contact and state clearly where the goods should be delivered, ideally through B level stores or your local receipting point. The delivery address for the Southampton General Hospital is: B Level Stores, Centre Block, Southampton General Hospital, Coxford Road, Southampton, SO16 6YG. If the supplier requires the cardholders address for authorisation purposes, ALWAYS QUOTE Financial Control, 1 st floor, Old Nurses Home, Mail point 120, Southampton General Hospital, Tremona Road, Southampton SO16 6YD and NOT your site location. At the end of each calendar month, the Purchasing Card holder will ensure that all purchases made have been documented on the daily log sheet, and that all associated documentation is attached to it. This information must then be passed to your authorising manager for authorisation, and finally to Financial Control Mail Point 120 Old Nurses Home who will ensure all spend has supporting documentation, and to validate records of purchases made compared to the Nat West statement for each individual card.

4 This is an Audit requirement and must be strictly adhered to. Failure to do so will result in the Purchasing Card being revoked after the second month of default. All log sheets to reach Financial Control no later than the last Friday of the month. At the start of each calendar month, a new daily log sheet should be used to record all transactions as they occur. As with any other purchasing mechanism operated by the Trust, services identified as contracted out are subject to reclaim on the VAT paid. In order to ensure this reclaim is facilitated it is important to ensure that at the time the purchase is made a full VAT invoice is requested from the supplier. A list of contracted out services is available from the Financial Control Supervisor. In cases where purchases are made from charitable funds, certain checks should be undertaken. Firstly, cardholders should ensure the fund is in credit and capable of bearing the transaction value. Secondly, if the item to be purchased can be exempt from VAT when bought from charitable funds, then the supplier will need to be advised at the time the purchase is being made, and will also need a statement indicating that the source is of charitable status. If you require any further advice, then contact the Charitable Funds Manager. 7.3 General Management Issues If any new suppliers are identified by the Trust as being suitable for Purchasing Card use, the information should be passed to the Purchasing Card Administrator to enable Nat West to make an approach. If the Purchase Card holder identifies that goods were not delivered at the time expected, the cardholder should contact the supplier directly to expedite delivery. If goods are delivered and are subsequently inappropriate for any reason and a return is required, the cardholder should make the first contact direct to the supplier. If problems are experienced then the Supplies Department should be advised. If credit notes are required, the Purchasing Card holder should make the initial request, and if unsuccessful this should be notified to the Supplies Department to enable them to pursue the matter on the cardholder s behalf. Further information and help relating to the use of Purchasing Cards can be obtained from the Purchasing Card Administrator. 7.4 Accounting Arrangements Cardholders should undertake processes as identified in section 7.3 above. The information on the transaction log will be made available immediately after the last day of the calendar month to the Finance Manager, following authorisation by the Authorising Manager, who will facilitate review and make any necessary accruals for that month. Nat West provides information for each calendar month with details of all transactions. The Purchasing Card Administrator will receive this in electronic and hard copy form, allowing for

5 spot checks and audits to be carried out by the Supplies Department in relation to the goods and services purchased. Following receipt of the information at month end from Nat West, Financial Control will send the information electronically to directorate Finance Managers. In all cases this information will be on Excel and a default code, which will have been identified by the Financial Control, will be present against all transactions identified by Nat West. Upon receipt of the information, Financial Control will ensure that prompt action is taken to match the Nat West report against that recorded on the transaction log sheets and actual codes will be used to replace the default code. If appropriate back up documentation is not provided, the Finance Manager will advise the cardholder s manager as the item/s purchased may not be legitimate, and steps may be taken to recover the costs from the individual. Any difference greater than 10% should also be queried by the Finance Managers to ensure the Trust avoids unnecessary losses. This information, once complete, should be returned electronically to Financial Control on the following time scale: Day One: Information distributed electronically Day Four: Approved reconciliation returned to Financial Control Day Seven: Nat West will make deduction via Direct Debit. A copy of the transaction log sheet should be forwarded by the Finance Managers to Payment Services, together with copies of any invoices where a VAT reclaim has been identified. All invoices and associated documentation should be kept with the transaction log sheet until month-end reconciliation. It should then be clearly marked Paid via PC (purchasing card) after reconciliation, and held by the relevant Finance Manager. Where reclaim of VAT has been identified, this will be drawn to the attention of the VAT return accountant. The arrangements agreed with Nat West are set that within 7 days of issuing the month end reports, Nat West will deduct the total direct debit from the Trust s bank account. Therefore it is vital that prompt action is taken by all parties to ensure that wherever possible actual cost centres and account codes are used rather than the default codes, to reduce the amount of time required for Finance to code the transaction logs. Any discrepancies or items which cannot be reconciled between the Nat West month end report and the transaction log should be identified to the Payment Services Manager within 3 days of receipt of the information. 7.5 Advice to purchasing card users potential hazards and constraints The listing below has been prepared to provide guidance to Purchasing Card holders. It should always be remembered that the use of Purchasing Cards does not mean that purchasing standards should not be applied, and you must always consult with the relevant specialist department within the Trust before making a purchase. For example: CIS/IM&T for computers, computer equipment and software, Estates Maintenance for building work, materials, surveying etc, Health & Safety for fire and other standards, and infection control for relevant clinical standards etc. No medical equipment or consumables of any sort should be purchased.

6 Trust approved suppliers and/or contracts should be used wherever possible. Ensure that all products bought are CE marked. Fire retardancy standards (e.g., all furniture and fabrics, including bedding and curtains). Health & safety issues (both for patients, staff and visitors). PPQs Pre Purchase Questionnaires may be required for some equipment purchases, i.e., equipment of any type that may need evaluation before purchase (for example, fans, heaters, etc). Computer equipment and software should be checked with CIS/IM&T to ensure compatibility with the Trust s systems, and the security of the Trust s electronic infrastructure. Any product which may contravene Trust or Department of Health policy, Medical Devices Agency guidelines, or Trust Standing Orders and Standing Financial Instructions. Products with MDA Hazard Warnings against them. Furniture there are set standards for furniture within the NHS which all furniture purchased by the Trust must comply with. Contact the Supplies Department for advice about this. If in doubt about compliance with any of the above, please consult with the Supplies Department before making the purchase.

7 7.6 Extract from HM Government Procurement Card Best Practice Guide. A summary of the roles Requisitioner The person who uses the goods or services. This is the person who requisitions the items, not orders them. This person will receive the goods / services Cardholder Authorising Manager Budget The person issued with the purchasing card. This person is given authority to commit by the budget holder. This is the person who will order the goods and services from the supplier The person authorised to approve the monthly purchasing card log The person who controls the budget. It is this person who gives the cardholder the authority to commit on his/her behalf. This person may also be the authorising Manager, or may give this authority to someone else, but not the cardholder or requisitioner. Process End User Identifies & requisitions goods / services Card Holder purchases goods / services Processed every time an order is placed Goods supplied / paper work received Quantity & quality checked by end user Monthly statement sent to card holder for verification and reconciliation Authorising Manager approves monthly Statement Finance receive approved monthly statement form Finance make payment

8 Appendix 1 SOUTHAMPTON UNIVERSITY HOSPITALS NHS TRUST MEMO To: Applicant From: Card Administrator Re: Purchasing Card Application To: Applicants Line Manager Reason why card is needed: Managers Authorisation: Name:...Job Title:... Contact number:... Signed... Dated... Please do not hesitate to contact me should you have any queries. Card Administrator

9 Appendix 2 SOUTHAMPTON UNIVERSITY HOSPITALS NHS TRUST NAT WEST PURCHASING CARD I... hereby acknowledge receipt of a Southampton University Hospitals Trust purchasing card, number:... As a cardholder, I agree to comply with the following terms and conditions regarding my use of the card. 1. I have received and understand that I am entrusted with a purchasing charge card and will be making financial commitments on behalf of the Trust. I will strive to obtain the best value for the Trust. 2. I understand the Trust is liable to the card provider, (Nat West) for all charges made on the card. 3. I agree to use this card for appropriate Southampton University Hospitals Trust business purchases only and agree not to charge personal purchases. I understand that the Trust will audit the use of this card and take appropriate action on any discrepancies. 4. I will follow the established procedures for use of the card. 5. I have been given a copy of the Nat West Purchasing Card Cardholder Guide and understand the requirements of the card s use. 6. I agree to surrender the card to the Southampton University Hospitals Trust Card Administrator upon retirement, termination of my employment with the Trust, transfer to any new assignment or appointment within the Trust or upon request from an authorised representative of card administration. I understand the use of the card after privileges are withdrawn is strictly forbidden. 7. In the event that the card is lost or stolen, I will immediately notify the bank by telephone. I will confirm the telephone notification by mail or facsimile to the bank and copy to the Southampton University Hospitals Trusts card administrator immediately. 8. I agree to only place orders with appropriate suppliers and note the items listed within the procedures for ordering goods and services which indicate where I should and should not use this card and will ensure that the Trusts minimum purchasing standards are met. 9. I understand that I must return my Log Sheet on a monthly basis with the relevant backing documentation and failure to do so will result in my Purchasing Card being revoked after a two month default. 10. I understand that failure to abide by these established policies will result in termination of the use of the purchasing card. Intentional abuse may result in disciplinary action up to and including my dismissal 11. Please have this form authorised by your manager, copy and keep on file and return original t the Card Administrator. Employee Signature Date Department.. Managers Signature Date Directorate