What are the key procurement card controls?

Introduction

If you’re a procurement card user, you’ve probably wondered why your organization is using them. After all, it’s not as if they are a new idea or that they’re easier to use than any other form of procurement. In fact, many people have come up with negative reasons why their organizations don’t use procurement cards. However, these reasons often stem from misconceptions and misunderstandings about how the card works and what it can be used for. These misconceptions about procurement cards are holding back the adoption of this powerful tool by public sector agencies and small businesses alike – which means that unless we change the way we think about these cards now, our future will be one of more limited access to goods and services at affordable prices!

Procurement card controls and how to audit them

A procurement card is a card that allows you to spend money on goods and services. It’s used by Public Sector Banks, post offices, state-owned enterprises and other government institutions. You can learn about what is a procurement card in this section.

A procurement card can be used for:

Payment of bills or purchases made by an individual (or group) of employees;
Purchase of equipment/software;
Payment of suppliers or contractors;
Congestion relief fund payments in case of emergencies like disruption due to natural calamities etc.;

Why isn’t the business case for procurement cards working?

It’s important to understand the business case for procurement cards. As with any other control, if you don’t use it, no one will know that it exists.

The main reason why procurement cards are not being used as frequently as they should be is because there has been a decline in their use over time.

procurement cards in the public sector

Procurement cards are a great way to save money. They’re easy to use, safe and secure, and they can be used by anyone with the right authority.

What’s more, procurement cards can be used for any type of purchase—not just food or drink! You could use one at your local supermarket or fitness club if you wanted to buy some groceries; or perhaps at a dentist’s surgery if you were looking after yourself with dental care (or even having an operation).

Who is using the procurement card, and what are they using it for?

If you’re a business owner or manager, one of the most important things to know about your procurement card is who is using it. The way to control this is by creating a policy that requires each employee to have their own procurement card. This will help prevent misuse of the account and make sure that only eligible purchases are made with your company’s money.

When determining which employees should be issued an official purchase order (PO) number, consider factors like age and experience level as well as whether they’ve ever been disciplined for misconduct in the past year or two years respectively; this can give some insight into whether someone might take advantage of such authorization later on down the road! Additionally, think about what kind of spending habits each person has when deciding which ones should be eligible – if someone has recently purchased something expensive without authorization but has always paid off within 30 days then maybe they shouldn’t need special treatment right now…but if he/she just bought something small enough not worth reporting then maybe there’s no reason not too!

What is the limit of their authority?

You should also be aware that your procurement card agreement will have limitations on their authority. The most important ones are:

Limits on the amount that can be spent. This is usually set at a fixed dollar amount, but it may also be limited by transaction type or product/service type (e.g., more than $1,000).
Limits on the number of transactions that can be made in a given period of time (e.g., every 30 days).
Limits on what kind(s) of goods or services may be purchased through the card—for example, only food items would be allowed when using this type of card over grocery stores; nothing else can be purchased with this particular kind

What should be purchased on the procurement card, and what should not?

The procurement card is only for non-cash purchases. It’s used to purchase items which are not covered by a purchase order or other documentation. This includes consumables such as paper clips or batteries; supplies like ink cartridges and glue sticks; equipment such as computers and furniture; software licenses etc.

When you use your card for these types of purchases (and no others), then you’ll need to provide proof that they qualify—for example an invoice number from your supplier that shows they were bought using the Procurement Card.

When should a purchase order be raised instead of a procurement card purchase being made?

You need to buy something that is more than $1,000.
You need to buy something that is more than $1,000 and it is not a recurring purchase.
You need to buy something that is more than $1,000 and it is a recurring purchase.

The power of procurement cards lies in their control.

Procurement cards are not a panacea for procurement problems. They are not magic wands that can solve all of your problems, or even most of them. They are also not silver bullets, and they won’t solve everything.

Even if you have one of these cards in place, it doesn’t mean that all of your procurement problems will be solved by using them. You still need to understand what’s going on in your organization before making any changes or implementing new tools like procurement cards

Conclusion

A procurement card is a great way to increase efficiency and save time for your business. It’s also a good way to ensure that you aren’t wasting money on unnecessary items or services. However, it can be difficult to control the use of these tools if they aren’t in place, so it is important that any company has proper controls in place before they start using them themselves. That way you know how much money is being spent on each purchase order or service request before making an actual payment!