GPC Expenditure - £500 and over - background
GPC Expenditure £500 and over
Items of GPC Expenditure £500 and over
Education Scotland now publishes monthly reports showing all items of GPC expenditure of £500
and over.
Publication of Items of Government Procurement Card Expenditure Over £500
1.
The Government Procurement Card (GPC) is a corporate credit card, a cost effective way
of buying and making payments for low value goods and services where the supplier is only
expected to be used once. GPC is also used where individuals are required to travel and stay
overnight on a regular basis for business purposes.
2.
Within the Scottish Government, GPC cards are issued to staff on the strict basis of need
and card use is rigorously controlled. There are three levels of authorisation and monitoring in
place between those responsible for the ordering of goods and services (Card Holder), those
responsible for verifying legitimate business use (Card Officer) and those responsible for
checking that the authority to make such purchases is used properly (Card Controller). Card
Holders must sign declarations undertaking to abide by the Scottish Government policy
governing card use. The declarations make clear that misuse of cards may result in disciplinary
action. Sanctions of suspension or withdrawal of card use are also made clear. The use of GPC
cards is subject to inspection by internal and external auditors.
3.
Goods and services can be ordered and paid for by telephone, at a sales point, or from a
secure internet site. There are also monetary limits placed on individual transactions and
monthly expenditure, depending on business need. All transactions are recorded by Card
Holders in a transaction log for authorisation and review on a monthly basis by the Card
Officer. The GPC operates in line with Scottish Government procurement policy.
4.
The credit card supplier provides a management information system, which is used by GPC
Administrators. This system controls which goods and services can and cannot be purchased
and to monitor, approve and audit spend, down to individual card level. Automated restrictions
are placed on card use via the system, allowing a range of purchases to be blocked at the
point of sale. These include the prohibition of cash advances and the restriction of certain
categories of goods and services.
5.
Two separate reviews of GPC transactions are carried out on a monthly basis. All
transactions incurred by Card Holders are reviewed for completeness and conformity with
Scottish Government GPC policy by their respective Card Officers. In addition, an independent
review of selected transactions is carried out by GPC administrators. GPC administrators are
empowered to apply sanctions for instances of non-compliance with GPC policy, whether
detected by Card Officer or by the GPC Administrators.
6.
All transactions incurred on Scottish Government issued cards are automatically recorded
in the credit card supplier’s system, which provides the basis for monthly Card Officer reviews
of the completeness, accuracy and propriety of each card holder’s transactions. The Card
Controller’s main responsibility is to oversee the proper use of GPC within his or her business
areas, including carrying out selective checks of Card Holder monthly transaction statements
to minimise the risk of card misuse, and ensuring that GPC user and approval information is up
to date. Card Controllers are also responsible for safeguarding the effectiveness of the
separation of duties between Card Holder and Card Officer.
7.
The credit card supplier’s system also provides the basis for monthly independent reviews
of selected GPC transactions by the GPC Administrators. Any proven instances of internal fraud
are subject to disciplinary action. Sanctions are available for other infringements of GPC policy,
including withdrawal of cards. The credit card provider has procedures in place to detect
external fraud (normally use of a cloned card), and to notify all relevant parties when an
external fraud is detected for investigation and recovery. There is also a single corporate
“embedded” card, which is used as a mechanism for paying certain suppliers who supply goods
and services under SG contracts and who submit large volumes of small-value invoices. These
transactions are not expenditure incurred by individual card holders.