Use of purchasing cards by elected members explained
A review into the use of purchasing cards by elected members has been scrutinised by a committee of councillors.
Salford City Council’s Audit and Accounts Committee met last week (4 February) and were told that both the council’s Chief Finance Officer and City Solicitor and Monitoring Officer were satisfied with the use of purchasing cards by members.
The review by the City Solicitor and Head of Internal Audit found that purchasing cards were initially introduced by officers because are an efficient way to pay for low value goods or services; that they are cost-effective in reducing administration and procurement times; they reduce the number of orders, claims and invoices; and facilitate payments to suppliers. They also come with the advantage of a one percent cashback on transactions, and their use is recorded and monitored by the council’s finance team.
Salford City Council has a strong track record of paying invoices on time, maintaining a performance rate of over 90% for valid and undisputed invoices within 30 days in recent years. Performance Rates: In the 2023/24 financial year, the council paid 93.11% of valid and undisputed invoices within 30 days, slightly down from 95.10% in 2022/23.
The review follows a long-standing programme of work by the authority’s internal auditors that has examined both elected member and officer use of purchasing cards. That work programme concluded that there were no issues with the way that purchasing cards had been used by members.
During the committee meeting, members heard that the use of purchasing cards is explained in the council’s Constitution, has previously been considered in a Chief Finance Officer report in April 2025, and that line-by-line transaction data has been published on the council’s website for the past five years, with further reporting to follow on a quarterly basis. Public reporting of line-by-line purchasing card transactions is not a legal requirement, but has been done to emphasise transparency and openness in their usage. As further context, the authority spends around £1.3m every day in delivering services to residents and communities; the value of the purchasing card transactions by members for legitimate council business equates to around £13 a day.
The review highlighted that while there isn’t a specific policy on the use of purchasing cards by members, their use must be consistent with the Members Allowances Scheme, Members’ Code of Conduct, council’s financial regulations, schemes of delegation and Constitution. In keeping with the Constitutional use, elected members and other purchasing card holders had been informed by officers that the cards are to be used for legitimate expenditure associated with the work of the council, City Mayor’s Office and for the considerable responsibilities that the City Mayor has on the Greater Manchester Combined Authority.
During the meeting last week, the committee was told that the level of expenditure by members on purchasing cards is very small, and does not meet the normal threshold for review by internal audit. The review found that the council’s Chief Finance Officer and City Solicitor and Monitoring Officer are satisfied with the use of purchasing cards by members and that there is no evidence to suggest their use by members has been improper. This conclusion is consistent with the long-standing work programme examination of their use.
Council budgets are subject to stringent financial controls in order to be as transparent as possible on all financial monitoring. The latest value for money assessment was reported to the Audit and Accounts Committee last November and showed a clean bill of health with no significant weaknesses or recommendations. The publishing of purchasing card transactions data publicly on the council’s website goes beyond legal requirements for the reporting of member expenses on an annual basis.
The low-value of purchasing card transactions is set in the context of the council setting a legal, balanced budget which for the next financial year is anticipated to be more than £463m to deliver more than 700 services to residents young and old across the city. It is also set against the context of the work of the City Mayor, wider executive and whole council in attracting significant investment into the city, enabling Salford to be recognised regionally, nationally and internationally. Purchasing card spend by the City Mayor’s office is set in context of attendance at more than 2,000 meetings last year alone on a significant range of issues, from explaining to ministers about the need for step-free access to train stations, business investment into the city, growing relationships and opportunities with overseas cities and countries, lobbying for greater national recognition for rugby league, and investment into affordable, social housing.