www.swansea.ac.uk

www.swansea.ac.uk

Who am I?

Rhidian Morgan (MCIPS)Head of Procurement

The South West Wales Higher Education Procurement Partnership

Swansea UniversitySwansea Metropolitan UniversityTrinity College Carmarthen

www.swansea.ac.uk

Swansea University

Students - 14,000

Turnover - £150m

Non Pay Spend - £50m

Payments (2008/9) - 74,000

www.swansea.ac.uk

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

www.swansea.ac.uk

Who uses the cards?

Devolved Budgeting

Heads of Department?

Authorised Signatories?

Purchase order in putters?

www.swansea.ac.uk

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

www.swansea.ac.uk

What can’t Purchasing cards be used for?

Hospitality & Entertainment

Cash

Membership subscriptions

Personal Expenditure

www.swansea.ac.uk

What controls are in place?

Merchant categories

Individual transaction limits

Monthly transaction limits

Purchasing Card Procedures

The Purchasing Policy & Procedures

www.swansea.ac.uk

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

www.swansea.ac.uk

The disadvantages of using Purchasing cards?

Lack of control over suppliers used

Lack of control over products purchased

www.swansea.ac.uk

Savings

OGC state that a saving of £28 can be claimed for each transaction processed via Purchasing cards

www.swansea.ac.uk

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”…..

www.swansea.ac.uk

Purchasing Card Transactions

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Transactions

2005/6 2006/7 2007/8 2008/9

Year

Total Purchasing Card Transactions

Series1

www.swansea.ac.uk

Monthly Purchasing Card Transactions

Monthly Purchasing Card Transactions

0

200

400

600

800

1000

1200

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Febru

aryMar

chApr

ilMay

June Ju

ly

Month

Num

ber o

f Tra

nsac

tions

2005/6

2006/7

2007/8

2008/9

2009/10

www.swansea.ac.uk

Monthly Purchasing Card Expenditure

Monthly Purchasing Card Expenditure

0

50,000

100,000

150,000

200,000

250,000

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Februa

ryMar

chApr

ilMay

June Ju

ly

Month

Valu

e £

2005/6

2006/7

2007/8

2008/9

2009/10

www.swansea.ac.uk

Average Transaction Values

Average Purchasing card Transaction value

£0.00

£50.00

£100.00

£150.00

£200.00

£250.00

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Febru

ary

March

April

MayJu

ne July

Month

Valu

e £

2005/6

2006/7

2007/8

2008/9

2009/10

www.swansea.ac.uk

Conclusion

Risk of Fraud

Procurement Processes improved

Reduced Invoice queries

Reduction in paperwork

Savings

www.swansea.ac.uk

Janet Reed Aberystwyth University

How Purchasing Cards can brighten up your life!