Review of electronic purchase cards

Reporter: Stuart Littleford

The findings of an internal audit review into the use of Scottish Government electronic purchase cards (ePC) have been published. 

The review was commissioned by the First Minister following the public release of significant amounts of ePC spending data in August.  

The review was undertaken by auditors in the Scottish Government Directorate for Internal Audit and Assurance, who have recommended improvements to policy and guidance, including enhanced monitoring and reporting, as well as a review of card usage and limits, and of categories of exclusions and out-of-scope expenditure.   

The Permanent Secretary has also indicated that corporate guidance should be reviewed and updated to reflect the principle that all staff ‘away days’ should be carried out within public sector venues, with any exceptions requiring senior (director-level or above) approval of an appropriate business case. 

An on-going review of the number of card holders has already resulted in a reduction of just under 10% since the summer, while mandatory training and follow-up refresher training will also be given to everyone with ePC responsibilities.  

Electronic purchase cards are routinely used by the Scottish and UK Governments to pay for low value items such as catering, one-off supplies and training.  

The Internal Audit team reviewed 194 transactions that had been the focus of reporting or commentary in news and social media. The audit of this sample found that all but one were appropriate expenditure under the current ePC policy. The transaction that was not appropriate was not made by the cardholder and was identified via banking system controls as fraudulent and the expenditure was refunded. 

Among the purposes of the transactions identified through the audit were: 

• Nail polish; used by Science and Advice for Scottish Agriculture (SASA) to distinguish items of glassware to prevent cross-contamination. Nail polish has to be used for this purpose under chemistry standard operating procedures.
• Driving theory tests; these tests form part of the advanced driving course provided to staff who, as part of their job, spend a significant amount of time driving to rural and remote locations in Scotland.
• Pregnancy tests; must be included as part of a ship’s medical stores for Marine Scotland vessels under Merchant Shipping legislation.
• Asda Christmas purchases; Christmas lunch for Marine Scotland vessel crew working on Christmas Day.

Public Finance Minister Tom Arthur told GPSJ: 

“The Scottish Government is focused on delivering the best value for money for taxpayers – something that is particularly important during a cost-of-living crisis, where both household and public sector budgets are tight. That is why the First Minister commissioned a review into ePC spending to ensure we have the right procedures in place. 

“It is reassuring that the review concludes that the transactions audited were all appropriate under the current ePC policy, with the only exception being a fraudulent transaction carried out by a third party. I welcome the recommendations which aim to strengthen processes, including reviewing what may or may not be purchased through ePC, as well as improved monitoring and mandatory training.  

“The use of ePC is standard practice across governments and it is vital that policies and guidance on usage remain as robust and transparent as possible. This will ensure civil servants can continue to carry out their daily duties effectively while maintaining the best use of public funds.”