1. The Journey Towards Implementing a Successful Purchase Card Scheme Tony Brett Head of Procurement University of Bath

2. The start of the journey… 2012/13 64 cards £1.2m expenditure per annum 6514 transactions 3 cards in central Purchasing 1 card = 40% of the value of transactions

3. 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

4. Audit to the rescue! AUDITMAN

5. Audit Report: 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

6. Fraud! EDUCATION BUYER CHARGED WITH CREDIT CARD FRUAD

7. 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

8. 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

9. Purchase Card Agreement

11. I acknowledge that breach of any of the above rules may result in the purchase card being withdrawn from my use.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.

12. 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

13. 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

14. The results so far… 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.

15. Where next? Review provider offering Improve use of technology (remote monitoring) Continue monitoring

16. Key Points 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

17. Thank you