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					               Purchase Card - Cardholder Procedures - June 2002




Procedures
for use of the
Cambridgeshire County Council
Purchasing Card by Schools




June 2002




1. About the Purchasing Card

2. Obtaining goods and services with your Card

3. Making Payments to Company Barclaycard
4. Safeguarding the use of the Card
5. Loss or theft of the Card

6. Misuse of the Card
7. Account Codes

8. Scheme of Financial Management for Schools




Page 1 of 13
1     About the Purchasing Card

1.1   What is a Purchasing Card?

      The County Council Purchasing Card (CCPC) is an alternative method of
      paying for low value and infrequently supplied goods; it can also be used for
      expenditure relating to travel (rail or air fares) hotel, courses and conferences.

1.2   Why have a Purchasing Card?

      The CCPC is designed to streamline the order and payment processes. It is
      to be used for items of expenditure for which it would not be practical or cost-
      effective to pay through the FAMIS system.

      Generally such payments will be:

            Under £50

            One-off purchases

            To suppliers not in FAMIS or you are unlikely to use again..

      The card also provides detailed management information to help monitor and
      evaluate the school’s purchasing activity.

                          Use of the CCPC will reduce the volume of invoices and
                          associated paperwork for sundry buying and accounts
                          across the County Council. Instead of paying many
                          thousands of invoices each month, the credit card
                          company will pay suppliers for goods and services
                          obtained by use of the cards and we will pay the credit
                          card company once a month by electronic bank transfer.

1.3   The Card

      The card looks, and is used, like a personal
      Barclaycard debit/credit card with embossed data and a
      microchip. Your card will bear your name. You have
      the sole right of use of your card and will be
      responsible for its use.

      The card will charge payments for appropriate goods and services to the
      County Council’s credit account. Establishments displaying the VISA symbol
      will accept it for payments.

      The card bears the following information :

            your name

            the expiry date of the card

            the 16-digit card number


                                           2
1.4   Where can I use the CCPC?

      The card may be used for:

          payment at the point of sale (i.e., in a shop)

          telephone ordering

          purchasing through the internet

          booking forms

          paying subscriptions

1.5   Spending Limits

      You will have two limits on spending with your card:

            your credit limit - i.e., the total amount that
             you may have outstanding on your
             purchasing card account at any time



            your transaction limit - i.e., the total amount
             that you may spend on any one purchase or
             “transaction”



      You are responsible for ensuring that you do not exceed these limits at any
      time. A transaction will fail if you exceed either limit.

1.6   Who Can Have a Card

      All schools who use FAMIS and all schools with a County Council Bank
      Account including bank account schools who have a Barclays sub-account
      can apply for County Council Purchase cards. Headteachers, Deputy Heads,
      Head of Departments, Bursars, Site Managers and Finance Officers may all
      find them useful. Where the Headteacher is the cardholder their application
      should be authorised by the Chair of Governors. Appropriate users would be
      those expected to use the card at least three times a month. Section 4.3 has
      the detail of how to apply for a card.
      Schools who bank independently of the County Council should make
      arrangements with their bank for the supply of Purchase cards.

2     Obtaining Goods and Services with your Purchasing Card

2.1   Checks

      If the intended purchase meets all of the following criteria, the purchasing card
      may be used to purchase the product or service.


                                           3
      Before buying goods or services with the card, you must:

          ensure that the goods or service that you propose to buy are not
           available from suppliers with whom the
           County Council already has a corporate
           contract. Examples of contract suppliers are
           ESPO, Saber - Furniture Contract, Thirsty
           Work – Water Coolers, Vodafone etc. Goods
           and services from such suppliers must be acquired through the
           approved procurement channels. For further advice please contact the
           Central Purchasing Team.

          check that the value of the purchase is within your transaction limit.

          check that the value of the purchase will not, when added to the
           existing balance on your card account, exceed your credit limit.

          ensure that the supplier is able to accept payment by VISA.

          ensure that the purchase is within budget and bona-fide.



2.2   Exceptions

      The following must not be purchased using the card:

          cash

          building services

          building materials

          goods or services from statutory bodies (e.g., electricity, gas, water)

          payments to staff or for temporary recruitment.

      You must not - under any circumstances - use your
      purchasing card for Personal or Private use.
      Use of the card for transactions other than those authorised by
      Cambridgeshire County Council will result in the withdrawal of the card
      and these actions may be treated as gross misconduct and the
      appropriate disciplinary steps will follow.

2.3   Transaction Log

      Each transaction must have supporting
      documentation detailing the nature of the item(s)
      purchased. You must therefore maintain a
      personal transaction log (see Appendix A).



                                         4
      All receipts and delivery notes should be kept safe and reconciled against
      your personal transaction log. This includes a VAT invoice/receipt to enable
      the VAT element to be reclaimed. Failure to obtain such a voucher will mean
      that the school will have to bear the VAT element of the expenditure.

2.4   Authorisation

      The transaction log must be maintained and signed by you. All relevant
      documents, receipts or vouchers must be retained with it. On a monthly basis
      the Headteacher must approve and certify transaction logs as reconciled with
      the Barclaycard statement. The transaction logs must be retained centrally
      and securely within the school and be available for inspection as required. A
      file must be maintained within the school for each cardholder, holding all
      authorised transaction logs, statements and supporting
      receipts/documentation.

2.5   Role of the Headteacher/Budgetholder

      The Headteacher/budgetholder must:

            Review all cardholder statements, transaction logs and receipts to
             ensure that expenditure is appropriate and that budgetary control
             reports accurately reflect purchasing card transactions.

            Approve and certify the transaction log as reconciled with the
             Barclaycard statement.

            Where the Headteacher is both the Budgetholder and Cardholder,
             expenditure should be monitored by the Governors through a termly
             report to the Finance or appropriate committee.

3     Payments to Company Barclaycard

3.1   What to do when you receive your Card Statement

      Company Barclaycard will submit accounts in two forms:

          a paper account will be sent to the address you have given on the
           application form, and

          a consolidated electronic account will be sent to the central payments
           section.

      It is your personal responsibility to reconcile the charges on your
      account with your personal transaction log. This check
      should be made immediately upon receipt of the
      account. Central Finance will automatically pay
      any company credit card account if no
      irregularities on the account are reported by the
      cardholder, Headteacher, Budgetholder or their
      relevant financial adviser.



                                          5
      It is of paramount importance that you, as cardholder, check the following
      immediately upon receipt of your account:

          that you personally made the purchases listed on your account
           statement

          that all purchases were made in accordance with the procedures
           applying to the use of company credit cards (e.g., could the
           goods/service have been bought through a corporate contract?)

          whether there are any unusual VAT issues surrounding payments (e.g.,
           does the amount exclude VAT - especially important on goods/services
           bought outside the UK).

                     If you have are doubts about any of these points you should
                     consult your Financial Advisor or the Central Purchase Card
                     Administrator. Failure to follow this requirement may render
                     you personally liable to refund any faulty payments (or parts
                     thereof) made to the credit card company, and result in the
                     withdrawal of your card.

      When the cardholder has reconciled the Card Statement with the Transaction
      Log, the Headteacher will authorise the Transaction Log. It will then be
      forwarded to the School’s Finance Officer who will reconcile it with the record
      of expenditure within FAMIS or the relevant prime accounts report. The
      completed paperwork must then be placed in the designated file.

      It is anticipated that in 2002, the credit card company will make statements
      available through the web and that paper copies may be eliminated. You will
      be advised when this facility is available.



3.2   VAT

      The rules relating to VAT are too complex to detail in this document. In the
      initial set-up (from October 2001 to January 2002), where cardholders have
      only a single budget code, some items upon which VAT is payable will have to
      be manually transferred via journal between ledger entries to ensure recovery
      of appropriate amounts of VAT.

      Although this will become simpler once credit card company statement data is
      fully integrated with FAMIS (including the allocation of your purchases to the
      merchant category codes) there may still be items that have differing VAT
      rates within each merchant category. You must identify these and contact
      your financial advisor to make adjustment via journal transfer.

      Your overall credit limit and the maximum transaction value have been
      registered with the card. Both of these figures include VAT. It is your
      personal responsibility to ensure that neither figure is exceeded.




                                         6
      Cardholders must ensure that they obtain and keep VAT receipts for all
      transactions, which include VAT.



3.3   Flowcharts

      The appended set of flowcharts set out the basic procedures for the use of the
      card (Appendix B), authorising and making payments (Appendix C).

      Please contact your School Finance Adviser or the Central Purchase Card
      Administrator in case of disputes and problems that may be encountered with
      using the card.

4     Safeguarding the Use of the Card

4.1   Security

          sign the card as soon as you receive it

          ensure that it is kept secure

          only the cardholder named on the card may
           use the card

          misuse of the card will result in it being
           withdrawn and disciplinary procedures being taken against you -
           please refer to 6 below.

4.2   Procedures

      The procedures in this manual must be followed at all times. If you have any
      concerns regarding the procedures for use of the card, advice may be sought
      from any of the County Council contacts listed in Appendix D.

4.3   Applying for a card

      An application form (available from the Central Purchase Card Administrator)
      must be completed and signed by the proposed card user and approved by
      the Headteacher. When the Headteacher is also the cardholder their
      application should be authorised by the Chair of Governors. The completed
      form must be sent to the Central Purchase Card Administrator, who will check
      that it is completed correctly. The Income and Payments Manager will be
      responsible for approving the issue of any card. A register of all cardholders,
      card numbers and locations will be maintained centrally by the Central
      Purchase Card Administrator.

4.4   Changes to the Cardholders Details or Requirements

      Any changes to the cardholders details, such as location, name, job title or
      budget code must be notified to the Central Purchase Card Administrator
      immediately.


                                           7
      If an increase in your credit or transaction limit is required then the
      Headteacher must approve this request before submitting it to the Central
      Purchase Card Administrator. The request will be checked and submitted to
      the Income and Payments Manager for final approval.

4.5   Checks

      The Central Purchase Card Administrator will be responsible for carrying out a
      rolling programme of random checks of statements and personal transaction
      logs to ensure that procedures have been fully complied with and expenditure
      certified in accordance with Financial Regulations.

      Detailed analysis data is available and will be used for control purposes by the
      Council’s Income & Payments Group and Central Purchasing Team and
      transactions will also be subject to Internal Audit scrutiny.

4.6   Leaving the County Council

                           The Headteacher is responsible for ensuring that the
                           card is handed to the Central Purchase Card
                           Administrator when/if you leave the school.

      In the case of long term absence (e.g., maternity leave) you should hand your
      card to the Head Teacher or the Central Purchase Card Administrator for
      safe keeping.

5     Loss/Theft of the Card

         Loss or theft of your card must be
         reported immediately to Company
         Barclaycard on 01604 230230.

         Telephone service is available 24
         hours a day, seven days a week.


      You should also inform the Central
      Purchase Card Administrator as soon as possible (at least by the following
      working day if outside working hours).



6     Misuse of the Card

      Your CCPC may only be used to procure goods and services on behalf of the
      school and in accordance with these procedures.

      Use of the card for transactions other than those authorised by
      Cambridgeshire County Council will result in the withdrawal of the card and
      these actions may be treated as gross misconduct and the appropriate
      disciplinary steps will follow.


                                         8
7     Accounting Codes

7.1   Need for Coding

      For the time being, you have been nominated a single cost code to charge
      CCPC expenditure to. This code is, by your prior agreement, the one relating
      to the majority of purchases that you are likely to make.

      Company Barclaycard will, however, soon be fully integrated with FAMIS,
      enabling automatic allocation of costs to various County Council cost codes
      when the statement is received centrally. This will be possible because the
      suppliers are divided into the “merchant categories” shown on the CCPC
      application form (e.g., transport, general groceries, electrical, etc.); whilst
      there may still be a need to make manual corrections in some cases, most
      costs will be automatically charged to the correct cost code.

      Work on developing the interface between Company Barclaycard and FAMIS
      is in hand and it is anticipated that it will be available in the Spring of 2002.
      You will need to discuss codes again with your Financial Advisor when
      automatic merchant categorising becomes available.

      New procedures will be issued to explain the changes.

      Purchase Card orders and related transactions must not be entered into
      FAMIS, Self Service Purchasing (SSP) as the expenditure will be recorded
      and coded elsewhere within the FAMIS system.

      8. Scheme of Financial Management for Schools

      This procedure document should be read in conjunction with Section 19 of the
      Scheme of Financial Management for Schools




                                          9
                                                                   Purchase Card - Cardholder Procedures - June 2002


Appendix A - Suggested Transaction Log



                                                        PURCHASING CARD TRANSACTION LOG

                Name:                                                                         School/Department

                Certified in accordance with Financial
                Regulations
                Goods recd    Budget/Card Holder                       Price Correct
                Initial             Initial                                Initial



                  Date          Short Description                         Supplier            COST CENTRE         SUBJECTIVE   OBJECTIVE VAT     Net           Vat          Total
                                                                                                                                                          Z800000Z3012000




                             STATEMENT TOTALS




                                                                                                                                   Certified as Correct
                             CARDHOLDERS DECLARATION                                                                                        and Lawful

                             I declare that the information provided on the transaction log                                                     Authorised:
                             is correct and the expenditure incurred is in accordance with                                                                (Signature of Headteacher)
                             the requirements of the scheme as set out in the cardholder
                             procedures manual.
                                                                                                                                                Pin Number:
                             Signed:                    Date:




Page 10 of 13
                Purchase Card - Cardholder Procedures - June 2002


Appendix B - Purchasing Goods via Barclaycard


         I want to buy              can I get it off a                yes
           something                  contracted
                                       supplier?



                                                                  purchase on-
                                           no                   contract from that
                                                                supplier using the
                                                                normal procedure


                                        does the
                no                   supplier accept                   yes
                                         VISA?



          use normal                                              is the cost within my
           purchase                          no                 transaction and credit
            process                                                       limit?




        retain all receipts and          use your
               vouchers                 purchasing                      yes
                                           card



         record the purchase
        on the transaction log




Page 11 of 13
                            Appendix C - Paying Accounts


Reconcile the Barclaycard              Did I make all
    statement to the                   the purchases                     no
 Transaction Log within 5                on the card
     days of receipt                     statement?


                                                                      Report to
                                                                       Central
                                             yes                    Purchase Card
                                                                     Administrator


                                        Is there a VAT               Yes – identify
                                       liability with any             this on your
                                       payments or do               transaction log
                                          you want to
                                        change any of
                                          your codes?

                                                                     consult your
                                                                       financial
                                                                        adviser

                                               no


                                                                       Complete
                                                                        Journal
                                     Submit the reconciled
                                     transaction log to the
                                        Headteacher for
                                    approval and retain the
                                          documents




                                   School Finance Officer to
                                 retain certified transaction log
                                   all supporting vouchers for
                                        Customs & Excise,
                                  Audit and Central Purchase
                                   Card Administrator. Your
                                       account will be paid
                                    automatically by Central
                                            Payments



                                          12
                            Appendix D - Company Barclaycard - Contact People and Useful Telephone Numbers



            NAME                                                              TELEPHONE                       E:MAIL

In case of theft or loss of your           Barclaycard House                 01604 230230
             card *                        1234 Pavilion Drive
                                         Northampton NN4 7SG*                 (24x7 service)

        Martyn Bacon                 Income and Payments Manager             01223 717238             mailto:martyn.bacon@cam
                                                                                                          bridgeshire.gov.uk

           Hira Kurl               Central Purchase Card Administrator       01223 717030             mailto:hira.kurl@cambridg
                                                                                                             eshire.gov.uk

    Company Barclaycard*                                                      0345 001001
         Helpdesk

  Central Purchasing Team                    To be advised
                                                     *Quote company number ( 20013587)

                                         , card number, name and transaction query, date and amount




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