PURCHASING CARD POLICY

Transcription

1 PURCHASING CARD POLICY Revised July 2005 Amended October 2005 Revised October Includes reference to Agresso Revised November 2015 Revised February 2016 Amendment to Section 5 Revised November 2016 Amendment to Section 13 Revised December 2016 Amendment to Section 5, 14 & 15

2 CONTENTS 1. The Purchasing Visa Card 2. Purchasing Using a Visa Card 3. Verifying and Approving the Transactions 4. Problems with Supply of Goods 5. Duties of the Cardholder including Fraud Reporting 6. Duties of the Departmental Line Manager/ Approver 7. Misuse of the Purchasing Card 8. Spending Limits 9. Guidelines for Travel and Entertainment related spend 10. Guidelines for Procurement Via the Internet 11. Card Security 12. Acceptable Purchases 13. Purchases Not Permitted 14. Internal Audit of the Use of the Purchasing Card 15. Card Support and Key Contact Points Summarised Appendix 1 - Employee Agreement Procurement Unit 2

3 1. THE PURCHASING VISA CARD Provided by RBS Natwest the Purchasing Card is VISA badged and works in a similar way to a credit card, except charges are applied directly to the University in full each month by Direct Debit. Purchasing Cards are for use only in relation to the business of the University. Each card is issued to a single, named cardholder and has limits on the values of single transactions and monthly expenditure. The card looks like any normal credit card, embossed on the card is the following: The University name The Cardholder name Expiry Date Card Number 2. PURCHASING USING A VISA CARD When a purchasing requirement has been identified that cannot be met using the e market place facility within Agresso or via an Agresso Purchase Order, the cardholder should obtain approval to purchase from the staff member requesting the product or service along with the project code; typically this request will originate from the budget holder. For simplicity this will ordinarily be in the form of an e mail direct to the Cardholder from the requestor / budget holder, and it must be retained, scanned and attached to the Agresso task by the Cardholder and therefore visible to the approver when reaching them via Agresso workflow. The card cannot be used under any circumstances to draw out cash The card can be used for: Telephone/verbal ordering Point of sale (remittance slip) (face to face) Booking forms Internet procurement Procurement Unit 3

4 The following flow chart sets out the procedures for use: The cardholder identifies a purchasing requirement or receives a request to buy from a member of staff in the School or Department The cardholder will telephone or use on-line ordering facilities with approved suppliers, wherever possible, having first consulted the Procurement section of the Finance intranet which lists mandatory contracts and how to buy using them. The supplier will be informed that the purchase is to be charged to a Visa purchasing card. Full details of the purchase will be given, including description, quantity, delivery point and price. Purchases outside the card's limits on value will not be accepted. If a transaction is declined or not validated by the supplier the Cardholder should refer to the Procurement Team. The following Visa purchasing card information will be given to the supplier: Card number Expiry date As a security measure cardholders may also be asked to quote the last three digits of the number printed within the signature strip on the reverse of their card. In addition to the security code mentioned above, the cardholder may also be asked to quote the numbers in the University billing address eg office number (as we do not have an office number in our address this should not apply) and postcode, LE11 3TU - i.e. '113' would need to be quoted. All cards have a four digit Personal Identification Number (PIN). This PIN will never be needed for mail order, telephone, or internet purchases and should never be revealed in any circumstances. The cardholder will instruct the supplier to dispatch the goods with a delivery note clearly marked "PURCHASING CARD ORDER" The invoice and goods will be addressed to the cardholder, clearly marked with the cardholder's name, department and University. Note the invoice is only utilised as evidence for VAT it is not a vehicle for payment. For the majority of card purchases Suppliers should be able to provide an invoice. When purchasing from approved suppliers listed in the Catalogue section of the Procurement intranet, guidance will be provided about invoices some suppliers have enhanced point of sale capabilities with VAT information recorded electronically; a paper invoice is not produced and the Tax Code field is already populated with P1 or PZ when viewing the Agresso task - this means VAT was recorded by the Merchant at the point of sale and does not need changing. Procurement Unit 4

5 3. VERIFYING AND APPROVNG CARD TRANSACTIONS The cardholder Verifies all card transactions in Agresso, and the cardholder line manager or Agresso role holder approves all card transactions in Agresso. For full details with screen snapshots, please use the PowerPoint document which is published adjacent to this Policy document on the web page, a link is also provided below: How to review and approve in Agresso 4. PROBLEMS WITH SUPPLY OF GOODS The cardholder should immediately contact the supplier requesting that a refund voucher be put through NatWest and a VAT credit note be raised. Does the supplier agree to issue a credit? Detail on Agresso making appropriate comments. Use the same codes for the credit as the debit. Pursue with supplier until agreement is reached contact the Procurement team if no resolution YES NO If credit has not been received, contact supplier to find out when the refund voucher was processed. If no resolution is reached, contact the Procurement Team who will pursue with the NatWest on your behalf. Please note the time limit for disputed transactions is 90 days from date of transaction. 5. DUTIES OF THE CARDHOLDER Procurement Unit 5

6 The Cardholder shall: Upon receipt of the Purchasing card familiarise themselves with these procedures. If training or support is required, please contact your Finance Business Partner Place orders with suppliers Ensure that goods are received and checked. Contact supplier for any returns. Resolve simple disputes with the suppliers. Scan and attach hard copy invoices, delivery notes and any other proof of purchase documentation to the Agresso task at cardholder verification stage. HMRC have agreed (Jan 2016) that scanned documents are acceptable and there is no longer a need to keep the paper provided there is an electronic copy on Agresso. Existing paper records still need to be retained for 4 years that precede the HMRC agreement. If the cardholder leaves the department or the University, then documents should be passed to their line manager for safe keeping. Reconcile and Verify transactions in Agresso in a timely manner. The Cardholder is responsible for the proper use and security of a Purchasing Card allocated to them. If a card is lost or stolen or fraudulent activity is suspected, the cardholder must inform any member of the FSS team immediately in person via telephone with e mail back up. The FSS staff member will liaise with the Bank and appropriate further action will be advised; if outside of working hours contact should be made direct with the NatWest Bank by telephone on (24 hours) (NatWest Card Centre, Southend-On-Sea, SS99 0YY) and a follow up contact made to FSS. If a card is subsequently found it must not be used but should be destroyed by cutting it in two vertically across the magnetic strip and returned to the FSS team who will inform the Bank. The Cardholder should inform the FSS team via e mail of a change of name, job or department and, on receiving a new card, dispose of the old one by cutting in two and returning to the FSS team. The Purchasing Card should be used only as instructed by the University and solely for purchases on behalf of the University. Although the card is embossed with the Cardholder's name, the account and therefore the liability are in the name of Loughborough University. There is no impact on personal credit status. 6. DUTIES OF THE AGRESSO DEPARTMENTAL LINE MANAGER OR MANAGER RESPONSIBLE FOR CARD TRANSACTION APROVALS DUTIES Approves all cardholder transactions through Agresso. Responsible for verifying the integrity of all Purchasing Card transactions. Responsible for ensuring the return to the FSS team of any cards in the event that the cardholder leaves the Department or the University. Where Agresso workflow approval rules allow approvers (who are also cardholders) to approve their own transactions, as a point of segregation of duty principles, approval should always be sought from another approver in the workflow list. Full details of the process to approve transactions can be found in the embedded PowerPoint document at section 3. Procurement Unit 6

7 7. MISUSE OF THE PURCHASING CARD The use of the Card for any purpose which is not in accordance with the guidelines in this document could result in disciplinary action, which could result in dismissal Such misuse includes, but is not limited to: Having deliveries for goods made to addresses external to Loughborough University, unless, exceptionally deliveries are direct to an external conference or exhibition Making purchases not specifically intended for legitimate University use 8. SPENDING LIMITS The Purchasing Card has unique spending limits set for each individual Card. There is a limit per order/transaction inclusive of VAT that cannot be exceeded and for the majority of card holders this is < 1k Further, the Purchasing Card has a maximum monthly spend limit. Transaction and monthly limits are determined at point of initial card application process. Exceptionally, a cardholder may seek to have the single transaction limit increased all changes to originally agreed limits have to be approved by the Director of Finance. 9. GUIDELINES FOR TRAVEL, ENTERTAINMENT AND HOSPITALITY RELATED SPEND Cardholders should be mindful at all times of P11D implications and possible tax liabilities. Standard travel related products and services must be booked via the Key Travel portal and the purchasing card should only be used for incidental travel and hospitality related items. All personal items such as newspapers, drinks and telephone calls, etc., must be settled by employees utilising their own funds. Any such expenses must be reclaimed using a travel claim form in accordance with current travel and subsistence rates. Procurement Unit 7

8 10. GUIDELINES FOR PURCHASING VIA THE INTERNET Cardholders should note the following risks when using the Internet and subscribe to the following recommendations of best practice. Risks and how to mitigate them: Terms and conditions are drafted very much from the point of view of the supplier. There will be little if any opportunity to vary such terms, although you are free to take your business elsewhere. Contact the Procurement team if you need advice. Security of Cardholder details don t record your card details on a web site to facilitate payment unless you are reasonably satisfied of security look for web sites that have some form of kite mark. If you have concerns, don t proceed and contact the Procurement team for advice. The design of the web page, creative and user friendly as it may appear, can often be a cover for poor quality or inappropriate goods and services. PayPal, or other payment intermediaries Suppliers who can only take payment by PayPal (i.e., can t accept payment direct to a Bank Account or Visa direct) may present risks to the University that include fraud, unregulated trading, standards, tax and H&S etc. The Procurement Team can help you look for alternative suppliers Cardholders should avoid linking University Purchasing Cards to personally held PayPal accounts unless absolutely necessary. Under no circumstances should the Bank Account option within a PayPal account be used for University procurement. Via post event reporting, purchasing card transactions settled via PayPal will be highly scrutinised. Purchasing via ebay this can give rise to unacceptable H&S risks arising from rogue traders and sub-standard products. Approved suppliers via Agresso should be considered first. Cardholders should avoid using ebay and consult with their line managers before using this market place. Cardholders and their line managers are to be aware that they may be held accountable for any products procured that give rise to adverse issues in the workplace; furthermore, such transactions may give rise to budgetary exposure if the product has to be purchased again. You may be asked for a security code when you make a telephone, mail order or Internet purchase. This is the last three digits of the number found on the back of your card within the signature panel. This additional information, together with your statement address details, may be checked during the normal authorisation procedure and will help provide additional proof that the card is held by the authorised cardholder at the time of the transaction. For security reasons, do not quote your security code during any other type of telephone call unless you are sure that you are speaking to the NatWest Bank. After you have made the purchase, you may be asked for another password - this is an added layer of security for online transactions. Examples of this type of security measure include Visa's 'Verified by Visa' and MasterCard's 'Secure Code'. Please contact the FSS team if guidance is required. Ensure the browser you are using is up to date and fully patched. Currently the most popular browsers are Microsoft Internet Explorer, Google Chrome and Firefox Procurement Unit 8

9 Ensure the site is secure. Most modern browsers will display a green padlock along the address bar and confirm the site address is https Ensuring that the machine being used to make the purchase is fully patched and is running a support anti-virus client which is up to date with virus definitions 11. GENERAL CARD SECURITY The NatWest Purchasing Card should be kept in an accessible but secure location. NEVER display your Purchasing Card number around your work area. NEVER give your Purchasing Card number to someone else. NO ONE but the Cardholder should place an order using his or her Purchasing Card. 12. ACCEPTABLE PURCHASES Examples of purchases that may be made are: Those made through approved University Suppliers when the card is advised to be used (as detailed in the Catalogue on the Procurement Intranet) Those made for legitimate University use typically low value, one off purchases 13. PURCHASES NOT PERMITTED (*) For goods and services that can be procured via Mandatory contracts listed within the Procurement intranet Catalogue Any items exceeding your Purchasing Card order limit. Any supplier, product or service not for legitimate University use. Any such purchase delivered to addresses external to Loughborough University. Personal items Lease contracts or long-term rental contracts. (*) refer to Point 7 - Misuse of the Purchasing Card The purchasing card should not be used to purchase gifts or rewards or any items to be used as payment in kind, for any employee, other than where this is permitted under the University s Achievement rewards. 14. INTERNAL AUDIT OF THE USE OF THE PURCHASING CARD Routine internal audit checks on card usage will be conducted. This is to help mitigate fraud risks, support optimum use of cards and the development of our e market place tool via Agresso. The portion of spend and number of transactions compared with total non-pay spend by School or Service Department and by cardholders with similar roles, will be periodically reviewed by the Business Partners. Additionally our Internal Auditors will periodically review policy and purchases. Procurement Unit 9

10 15. NEW CARD APPLICATIONS AND SUPPORT TEAM KEY CONTACT POINTS New Card Applications The FSS team will receive and process all card application requests via the web form and liaise with the relevant Finance Business Partner who will approve or decline the card request. FSS Team Will provide all back office transactional processing and support, including the processing of files to Agresso, expediting timely processing of the verification and approval stages, and providing MI reports to the Finance Business Partners and Procurement to support a regular and routine review of card expenditure. If your card has been declined or you need to report a lost or stolen card, or suspect Fraud, the FSS team should be contacted immediately via telephone and backed up by e mail. All attempted fraud must be reported in accordance with the University Fraud Reporting Procedures requiring the fraud or attempted fraud to be reported immediately to the FSS support team and the Bank. The FSS team member will notify the head of the FSS team or any other available member of the Finance Management Team if unavailable who will report the details to the Director of Finance who carries responsibility for deciding on the course of action to reduce the possibility of any financial loss to the University. Procurement Team The Procurement team are available should the cardholder have any problem with the supply of goods or services when using the Purchasing Card NatWest Bank 24 hour telephone support For general account queries in terms of current balance, lost cards or reporting Fraud Procurement Unit 10

11 Appendix 1 PURCHASING CARD Employee Agreement 1. I,.. hereby request a Purchasing Visa Card. As a Cardholder I agree to comply with the following terms and conditions regarding my use of the Card. 2. I have received and understood that I am being entrusted with a Purchasing Visa Card and will be making financial commitments on behalf of Loughborough University. 3. I understand that Loughborough University is liable to the card provider (NatWest) for all the charges made on the Card. 4. I agree to use this Card for Loughborough University business purchases only and not to charge personal purchases. I understand that Loughborough University will audit use of this Card and report and take appropriate action on any discrepancies. I further understand that, as the named cardholder, only I am allowed to make transactions against the card. It is also my responsibility to reconcile all receipts to my transactions on the Agresso System 5. I will follow the established procedures for the use of the Card. Failure to do so may result in either revocation of my use privileges or any other disciplinary actions. 6. The Purchasing Visa Card Manual can be found at I agree to regularly review this for updates and understand the requirements for the Card s use. 7. I agree to return the Card immediately upon request or upon termination of employment (including retirement). Should there be any organisational change, which cause my purchasing requirements to change, I agree to return my Card and arrange for a new one, if appropriate. 8. If the Card is lost or stolen I agree to notify NatWest immediately by telephone and the Loughborough University Card Administrator as soon as possible thereafter. 9. I understand that I must not under any circumstances, attempt to obtain another Card directly from NatWest. Cardholder's Signature:.. Date:.. Department:. Procurement Unit 11