29 Questions
What is the purpose of P-Cards?
To procure unplanned and time-critical expenditure, not covered by framework agreements.
What is the primary objective of the Administer P-Cards process?
To provide timely responsiveness to unplanned and time-critical procurement requests not covered by a framework agreement.
Who is eligible to be assigned Naira P-Cards?
Delegation of Financial Authority holders and the Supply Chain Team.
What type of transactions are P-Cards applicable for?
Unplanned business expenditure that requires immediate purchase.
What is the strategic role of Delegation of Financial Authority holders and the Supply Chain Team in the Administer P-Cards process?
Initiating and processing small, unplanned, and time-critical expenditures.
Under what circumstance should P-Cards be used?
For urgent needs that are not covered by existing procurement arrangements.
What is the main advantage of using P-Cards?
Significantly reduces the need for imprests for key transactions.
What is the primary function of Naira P-Cards?
To cover urgent needs across the business.
What is the purpose of assigning P-Cards to Delegation of Financial Authority holders?
To facilitate timely responsiveness to unplanned procurement requests.
What type of expenditure justifies the use of P-Cards?
Unplanned and time-critical expenditure
What is the basis of measurement for the 'Timeliness of purchase reconciliations' performance measure?
Latest date for completion of the request process
Who is responsible for the 'Receipts and Support Documents' input?
P-Card Custodian
What department is responsible for approving P-Card Replenishment Requests?
Finance Department
How often is the 'Spend Analysis Report' output?
Quarterly
What is the timeframe for the 'Timeliness of Spend Analysis Report' performance measure?
$2^{nd}$ Week in the month after the quarter
Who inputs the 'Reconciliation Report' as required?
P-Card Custodian
'Appropriateness of P-card purchases' performance measure is based on:
Number of unauthorized or inappropriate P-card purchases.
Who administers Purchasing Cards (P-Cards) Input & Output Documents?
P-Card Custodian.
What is the frequency for 'Reconciliation Report' input?
As required N-3/4.
Who inputs 'Approved P-Card Request' as required?
SCM (N-3/4) Finance Department.
Who is responsible for maintaining custody of P-Cards and ensuring approved use?
Supply Chain Management
What type of transactions are eligible for P-Cards?
Subscriptions and foreign training courses
Who reviews the justification for a P-Card request to ensure it is not covered by existing framework agreements?
Supply Chain Management
When are P-Cards replenished if the holding value is below 25% of the assigned value?
$25$th day of the month
Who processes and issues the P-Card to the approved User Department?
$N-3/4$
Who approves all P-Card purchases and designates a P-Card Custodian for the department?
$N+1/2$
Who files receipts and keeps a record of all P-card transactions?
$N-1/2$
When does SCM conduct a quarterly review of P-card expenditure?
At the end of each quarter
What happens if Finance finds a discrepancy in the reconciliation report against the account statement?
The User Department custodian is notified for explanation.
Study Notes
- The text outlines policies and procedures for the use of P-Cards (Purchasing Cards) in NNPC Limited.
- Functions requiring frequent foreign subscriptions will be issued foreign currency P-Cards.
- Transactions eligible for P-Cards include subscriptions, foreign training courses, and services where only card payments are accepted.
- A designated staff member (such as Supply Chain or HR) will maintain custody of P-Cards and ensure approved use.
- P-Cards cannot be used for loans, personal commitments, travel allowances, or expenses covered by framework agreements.
- P-Card transactions may be subject to periodic audits by the GRC/Internal Control function, and a report shall be submitted to the Respective HODs and Supply Chain Management.
- P-Cards will be funded by the relevant Finance Team and replenished when the holding value is below 25% of the assigned value.
- A justification for the limit of non-Naira P-Cards must be made at each request and approved by the relevant DFA holders.
- The User Department identifies the need for a P-Card, prepares a justification, and forwards it to SCM for approval.
- The SCM reviews the justification, ensures it is not covered by existing framework agreements, and forwards it for approval.
- The Finance Team processes and issues the P-Card to the approved User Department.
- The User Department approves all P-Card purchases and designates a P-Card Custodian for the department.
- The User Department obtains approval from the P-Card Custodian before making a purchase and submits accompanying receipts to the custodian after each purchase.
- The P-Card Custodian files receipts and keeps a record of all P-card transactions.
- The P-Card Custodian collates all receipts and support documents for all payments made in the month and prepares a reconciliation report against the funds disbursed into the P-Card.
- The P-Card Custodian submits the reconciliation report to N-3/4 for review and vetting, and forwards an approved request to Finance and Internal Audit for processing.
- Finance reviews the report against the account statement, and if there is a discrepancy, notifies the user department custodian for explanation.
- If no discrepancy is found, Finance replenishes the P-Card as required.
- SCM conducts a quarterly review of P-card expenditure to inform policy and consider if certain procurements can be planned going forward.
Test your knowledge about the process of administering purchasing cards (P-Cards) for making routine smaller purchases and streamlining the purchase cycle. Learn about the strategic role of Delegation of Financial Authority holders and the Supply Chain Team in initiating and processing small, unplanned, and time-critical expenditures.
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