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Section 1 - Purpose and Context
(1) The Corporate Credit Card is an alternative purchasing and payment system which improves payment performance, simplifies clerical processes, provides more effective cash management and enhances service delivery. The system is specifically designed for, but not restricted to, high volume but low value (usually less than $1,000) transactions.
(2) This policy sets out the principles and responsibilities for obtaining and using a Corporate Credit Card.
(3) The University has adopted standards and processes that will ensure its credit card system achieves the stated objectives while allowing the University to remain diligent in ensuring all related expenditure is legitimate.
(4) The benefits to using a Corporate Credit Card include:
- For the University and employees:
- less paperwork;
- faster receipt of goods and services;
- increased flexibility;
- less reliance on petty cash;
- reduced purchase processing costs from a reduction in requisitions, orders, invoices, cheques and petty cash;
- prompt recording of financial transactions; and/or
- improved purchasing and management information capacity.
- For suppliers:
- prompt payment;
- improved cash flow; and/or
- reduced invoicing and collection costs.
(5) The Corporate Credit Card system has two main components:
- Mastercards and credit facility supplied by a nominated credit provider; and
- credit card management software used by Credit Card Administrators and the Accounts Payable Operations Supervisor for accounting purposes and control of credit card data.
Section 2 - Definitions
(6) For the purpose of this policy:
- ABN - refers to the Australian Business Number that should be displayed on the receipts/tax invoices of all suppliers operating a business in Australia.
- Accounts Payable Operations Supervisor - refers to the employee in the Finance Office who manages the credit card system.
- ATM - refers to Automatic Teller Machine.
- BAS - refers to the Business Activity Statement the University is required to complete and submit to the Australian Taxation Office each month.
- Cardholder - refers to the employee whose name appears on a Corporate Credit Card.
- Credit Card Administrator (CCA) - refers to the employee assigned to a Corporate Credit Card to perform the online accounting process and file completed statement reconciliations.
- FBT - refers to Fringe Benefits Tax.
- GST - refers to Goods and Services Tax.
- Line Manager - refers to the employee with budgetary control over the cost centre assigned to a Corporate Credit Card.
- PIN - refers to the Personal Identification Number supplied to a Cardholder by the credit card provider.
- Private expense - refers to any expense that is not related to the University's business operations.
- TAN - refers to Travel Approval Number
Section 3 - Policy Statement
(7) The Corporate Credit Card system's main objective is to streamline processes and improve efficiency for the receipt of goods and services, and payment to suppliers, and to support employees who travel on behalf of the University.
(8) The University may issue a Corporate Credit Card to an applicant who:
- is an ongoing or fixed term employee of the University or its entities;
- occupies a position that has a regular and demonstrated need to purchase goods/services within their unit or is required to travel on behalf of the University within Australia or overseas;
- is willing to abide by the conditions of use as stated in the University's application form and the credit card provider's application form, and comply with relevant University policies and procedures; and
- is able to produce appropriate documentation to establish identity as stated on the University's application form and in accordance with the Financial Transactions Reports Act 1988 (Cth) (100 Points Identification).
(9) The University will not issue a Corporate Credit Card to adjunct, visiting or casual employees.
(10) Credit limits on Corporate Credit Cards, and any amended credit limit, will depend on the anticipated monthly expenditure required by the position, the expenditure needs of the unit and the existing credit limits across the unit, and must be approved by the appropriate Delegated Officer.
(11) Limits on Corporate Credit Cards used for travel will also depend on the frequency of travel undertaken by the employee and the anticipated budget per trip. For example, some employees who travel infrequently may require a substantially higher budget than others who travel more often.
(12) An amendment to a credit limit can be temporary or permanent depending on the needs of the unit. The University's credit provider requires temporary limit changes to remain in place for a minimum of one monthly credit card statement cycle.
(13) A Corporate Credit Card may be withdrawn for the following reasons:
- Misuse of the card, including unacceptable or inappropriate expenditure.
- Non-compliance with a condition of use.
- Continued non reconciliation and/or appropriate approval of monthly credit card statement.
- Transfer to another position or unit within the University that does not require the credit card purchasing facility where the transfer is either permanent or of a duration in excess of 12 months.
- The position currently held within the unit no longer requires a credit card purchasing facility or the card has not been used for 12 months.
(14) A Corporate Credit Card will be cancelled for the following reasons:
- The card has been withdrawn.
- The Cardholder leaves the University's service and returns their card to the Accounts Payable Operations Supervisor for cancellation.
Conditions of Use
(15) Corporate Credit Cards may only be used for appropriate business expenditure and the Cardholder is responsible for all charges placed against their Corporate Credit Card.
(16) A Cardholder has authority to incur expenditure up to the limit of the card. However, all purchases must comply with the Procurement Policy before a transaction takes place.
(17) By accepting a Corporate Credit Card, the Cardholder agrees to abide by:
- the conditions of use specified by the credit provider on issue of the card and the University Corporate Credit Card Application;
- all relevant University policies, procedures and guidelines; and
- any reasonable instructions the University issues in respect to the use of the card.
(18) Where a Cardholder does not comply with the conditions of use of a Corporate Credit Card or otherwise misuses a card, the University:
- will be held liable;
- will withdraw the card from the Cardholder; and
- may initiate disciplinary action or legal proceedings against the Cardholder.
(19) Credit cards should not be used with suppliers who do not comply with relevant GST legislation.
(20) The Code of Conduct prevents staff using a credit card to make donations to any political association.
Section 4 - Procedures
Part A - Applying for a Corporate Credit Card
(21) An applicant should report a perceived need for a new Corporate Credit Card to the relevant Line Manager. The Line Manager will determine whether a need for a new card has been established.
(22) Where the Line Manager does not support the application, they must advise the applicant.
(23) Where a need for a Corporate Card has been established, the applicant must:
- read all conditions of use specified in this policy;
- complete, sign and date the Corporate Credit Card Application Form;
- complete, sign and date the Credit Provider's Application Form, making sure that the postal address for delivery is the University location; and
- attach clear photocopies of the documents necessary to establish their identity; and
- submit all documents to the Line Manager.
(24) The applicant may deliver their proof of identification directly to the Accounts Payable Operations Supervisor instead of through the internal mail system.
(25) The applicant must not send any original identification documents (e.g. passports) through the mail.
(26) The Line Manager must:
- check all documents have been completed and signed;
- nominate a CCA (preferably an existing CCA or Oracle User where practical);
- obtain the CCA's acceptance of their nomination by signature on the University Corporate Credit Card Application; and
- forward all application documents to the relevant CAT6 or CAT7 delegation holder for endorsement.
(27) On receiving an application, the relevant CAT6/CAT7 delegation holder may:
- endorse the application without amendment and forward it to the Accounts Payable Operations Supervisor;
- endorse the application with an alternate credit limit and forward it to the Accounts Payable Operations Supervisor; or
- reject the application where they:
- are not satisfied the need for the card has been established;
- consider the requested credit limit is unjustifiable; or
- require further information related to the application.
(28) On receiving all required documentation, the Accounts Payable Operations Supervisor will lodge the application for formal approval with the appropriately authorised officer. Where an incomplete application is received, the Accounts Payable Operations Supervisor will contact the relevant parties and request the missing information.
(29) Where the authorised officer approves the application, the Accounts Payable Operations Supervisor will:
- forward the relevant documentation to the Credit Provider for approval and processing; and
- file all documentation associated with the application.
(30) When the Credit Provider provides notice that the application has been approved, the Accounts Payable Operations Supervisor will:
- send an email notification to the Delegations Register Maintenance Officer, advising the new Cardholder's details so they can create or amend delegation records as necessary; and
- create the new record in the credit card system.
(31) The Credit Provider will forward the new card directly to the Cardholder, normally within a period of 21 days of the Finance Office receiving the application. Cardholders should notify the Finance Office of any delay in receiving their card.
(32) On receiving a Corporate Credit Card, the Cardholder must:
- sign the card as soon as possible;
- activate the card prior to use in accordance with the Credit Provider's instructions; and
- read and comply with any other instructions issued by the Credit Provider with the card.
Part B - Applying for an Increased/Decreased Credit Limit
(33) Where the need to amend an existing card limit has been established, the employee should complete the Credit Card Amendment Notification Form and submit it to their Line Manager.
(34) The Line Manager will assess the application and seek approval in accordance with the requirements that apply to the issue of a new Corporate Credit Card.
(35) On receiving an approved Credit Card Amendment Notification, the Accounts Payable Operations Supervisor will:
- notify the change to the Credit Provider;
- amend the record in the credit card system; and
- send an email notification to the relevant Delegations Register Maintenance Officer for the delegations records to be amended as necessary.
Part C - Applying to Retain a Credit Card on Transfer/Secondment
(36) To use a Corporate Credit Card in a new position, the Cardholder must notify their new Line Manager that they hold a Corporate Credit Card. The Line Manager will assess the application in accordance with the requirements that apply to the issue of a new Corporate Credit Card.
(37) Where the Cardholder is eligible to retain and use their card in the new position, the Cardholder must complete and lodge a Corporate Credit Card Amendment Notification with their Line Manager. The Line Manager will seek approval in accordance with the requirements that apply to the issue of a new Corporate Credit Card.
(38) Where the Cardholder is ineligible to use their card in their new position, and the new position is either permanent or of a duration in excess of 12 months, the Cardholder must comply with the requirements for Withdrawal of Corporate Credit Cards.
(39) Where the Cardholder is ineligible to use their card in their new position, and the appointment is for a period of less than 12 months, the Cardholder must retain their card in a secure location but cease to use it for the duration of the appointment.
(40) On receiving an approved Credit Card Amendment Notification, the Accounts Payable Operations Supervisor will comply with the requirements set out in clause (34) b and c.
(41) If the application is approved, the Cardholder can continue to use the card in accordance with the conditions of use.
Part D - Withdrawal and Cancellation of Cards
(42) Where a card is withdrawn due to transfer/secondment, the Line Manager will provide a notice of card withdrawal to the Cardholder.
(43) Where a card is withdrawn for general non-compliance in relation to reconciliation processes or they no longer need the card, the Accounts Payable Operations Supervisor, the Line Manager or another relevant officer holding a CAT6 or CAT7 level delegation, will provide a notice of card withdrawal to the Cardholder which indicates the reasons for the withdrawal.
(44) Where the card is withdrawn because of misuse, the relevant CAT6 or CAT7 delegation holder will provide a notice of card withdrawal to the Cardholder.
(45) Where an employee has notified the University they intend to leave the University's service, the Office of People and Culture must notify the Accounts Payable Operations Supervisor before the employee's last date of service. The Accounts Payable Operations Supervisor will provide a notice of card withdrawal to the Cardholder.
(46) On receiving a notice of card withdrawal, the Cardholder must:
- destroy the card by cutting through the card number;
- complete the Corporate Credit Card Amendment Notification Form;
- hand the destroyed card and the notification form to their Line Manager, the Accounts Payable Operations Supervisor or other relevant officer who holds a CAT6 or CAT7 delegation; and
- undertake a reconciliation of their final statement, or if leaving the University provide their CCA with all relevant documentation, receipts, invoices and the like for a reconciliation to be undertaken on receipt of the final statement.
(47) On receiving a withdrawn card and amendment notification:
- the Line Manager must ensure it is forwarded to the relevant CAT6 or CAT7 delegation holder for consideration;
- the CAT6/CAT7 delegation holder will endorse or reject the withdrawal and forward all documentation to the Accounts Payable Operations Supervisor;
- the Accounts Payable Operations Supervisor will:
- obtain formal approval to withdraw and cancel the card in accordance with the Delegations (Administrative) Policy;
- notify the Credit Provider;
- expire the card in the Oracle Financial System; and
- notify the Delegations Register Maintenance Officer so that they can update the Delegations Register.
Part E - Obligations of Cardholder and Credit Card Administrator
(48) A Cardholder or CCA can contact the Accounts Payable Operations Supervisor for advice and/or training before incurring any expenditure, or authorising and performing the online accounting process, as appropriate.
Before Incurring Expenditure
(49) Upon receiving a new card, the Cardholder should:
- sign the reverse of the card immediately and activate the card by following the instructions provided with the card by the credit provider;
- ensure the safe custody of the credit card and the PIN at all times. The PIN may be used to access the credit card balance at ATM outlets;
- read this and related University policies; and
- ensure sufficient funds are available to cover purchases.
(50) Travel must be approved prior to expenses being incurred in accordance with the Travel Policy.
(51) The Cardholder may place an order with a supplier:
- in person;
- by phone , email or fax;
- by mail; or
- via the internet where the site has been confirmed as secure by one of the following means:
- a padlock, usually located at the bottom of the screen.
- a valid security certificate showing a current end date, usually accessed by double clicking on the padlock symbol.
- a web address that commences with https, as the "s" suggests a secure site.
(52) If a website cannot be confirmed as secure, the order/purchase must not proceed.
(53) When using a credit card, a Cardholder shall:
- obtain an invoice/receipt displaying the supplier's ABN for goods under $82.50;
- obtain a Tax invoice displaying the supplier's ABN for goods $82.50 and over;
- ensure suppliers record full and proper descriptions of items or services on invoices/receipts;
- confirm the supplier site is secure when placing an order via the internet;
- ensure goods and services are received in good order and condition;
- ensure a credit is received for any returns or refunds;
- ensure expenditure does not exceed the monthly credit limit; and
- immediately report lost, stolen or damaged cards to the credit provider and the Accounts Payable Operations Supervisor.
(54) A Cardholder must obtain the prior written approval of the Vice-Chancellor and President or Vice-President, Finance and Resources for any staff to attend an event that requires payment to a political party or political association using a University credit card.
(55) A Cardholder cannot approve expenditure, but must verify the accuracy of their credit card expenditure as detailed on their statement and submit their accounts for approval.
(56) The Cardholder should keep all invoices/purchase receipts in a safe place.
(57) On receiving a statement from the credit provider, the Cardholder shall:
- check each transaction for accuracy, enter the appropriate account codes against each item and include a full description of the goods/service;
- note invoices/receipts for entertainment expenses with the number of employees and non-employees who attended, and complete an FBT declaration as required;
- submit a signed declaration of authenticity of the transaction when an invoice/receipt has been lost and cannot be replaced by the supplier;
- attach all invoices/receipts and other necessary documentation to the statement;
- sign the statement for authenticity and forward it to their Line Manager for approval as soon as possible; and
- complete the credit provider's Disputed Transaction form if an unidentified transaction appears, scan the form to the Accounts Payable Operations Supervisor's email address and attach it to the statement.
(58) A Cardholder must provide all the necessary documentation for any pending statement reconciliation (e.g. invoice/receipts/declarations) to their Line Manager prior to going on leave.
(59) On receiving a reconciled statement, the Line Manager shall:
- check all documents are attached to the statement;
- check all expenditure is in accordance with the University's policies and procedures;
- sign the statement as approved when satisfied all expenditure is in order; and
- forward the statement to the relevant CCA before the end of the month for the online accounting process to be completed as required.
(60) Where the Line Manager identifies expenditure that is inappropriate or misrepresented, they will inform the Cardholder immediately. Where the expenditure is deemed inappropriate or in breach of a University policy, the Cardholder will be required to reimburse the University. Counselling and/or disciplinary action may also be provided/taken.
(61) Where the Line Manager identifies serious misuse of a card, they will notify the Accounts Payable Operations Supervisor as soon as possible. The Accounts Payable Operations Supervisor will promptly refer the matter to the Manager, Financial Operations.
(62) The Credit Card Administrator must:
- as soon as possible after appointment, complete the on line Oracle Training course provided by the Office of Organisational Development where not previously completed;
- notify the Accounts Payable Operations Supervisor when they have completed the training course.
(63) On receiving an approved statement of reconciliation, the CCA shall:
- ensure the statement has been signed by the Cardholder and approved by their Line Manager in accordance with Schedule A1 of the University's Delegations (Administrative) Policy;
- review the transaction codes and goods/services;
- immediately notify the Cardholder and Line Manager of any non-compliance;
- notify the Finance Officer, Fixed Assets of any purchase of a single item of equipment with a value of $2000 - $4999;
- notify the relevant Client Services Accountant of any prepayments for services for periods extending past the current year;
- perform the online accounting process of all transactions by the close of each month, including any disputed transactions and credit transactions;
- examine and process statements in accordance with the requirements of section 13 of the Public Finance and Audit Act 1983 (NSW); and
- file statements and their attached documentation in accordance with the University's Records and Archive Management Service requirements.
Monitoring and Review
(64) Cardholders who have used their card during the previous month's statement period, and their CCA, will receive an email which:
- lists all outstanding transactions;
- advises that a statement will be provided; and
- requests the statement to be processed promptly to ensure the expenditure is included in both the financial accounts for the current month and the GST Business Activity Statement (BAS).
(65) Where the Cardholder is on leave at the time the email is sent, the CCA should notify the Accounts Payable Operations Supervisor of the expected return date of the Cardholder so the card is not suspended during the period.
(66) Cardholders and their CCA will receive further email notices as follows:
- for transactions outstanding at the end of the month (see Statement Reconciliations above):
- a reminder of the original signed agreement to comply with card accounting procedures;
- advice that they are in breach of the agreement; and
- notice of a further ten days to complete the reconciliation process and online approval by the CCA.
- for transactions still outstanding at the end of the ten day extension period, notice that the card has been suspended from use. The card limit will be reduced to zero and the use of the card prohibited.
(67) Where a Cardholder fails to provide the relevant documentation to the CCA within the required timeframe, the CCA will contact the Cardholder and appropriate line management where necessary.
(68) Where a card has been suspended from use, the Cardholder should contact the Accounts Payable Operations Supervisor for instructions.
(69) The Accounts Payable Operations Supervisor will conduct a monthly review and follow up credit cards that have been suspended from use due to overdue transactions. Where the Accounts Payable Operations Supervisoridentifies a Cardholder has failed to complete the reconciliation process within any extended period, they will contact the Cardholder and, if necessary, their Line Manager.
(70) Where the Cardholder continues to fail to complete the statement reconciliation process within the required timeframe, the Accounts Payable Operations Supervisor may recommend to the Director, Financial Operations the withdrawal and cancellation of the card.
(71) The Accounts Payable Operations Supervisor will conduct a quarterly review of under-utilised credit cards.
(72) The Accounts Payable Operations Supervisor will promptly report any serious misuse of cards to the Manager, Financial Operations for further investigation.
(73) The Office of Audit and Risk Assessment will conduct periodic reviews of the use of Corporate Credit Cards.
Section 5 - Guidelines
(74) As a guide in establishing an appropriate credit card limit:
- Purchases <$500.00 per month : $1000 card limit
- Purchases <$1000.00 per month : $1500 card limit
- Purchases <$2000.00 per month : $2500 card limit
Appropriate uses of a Corporate Credit Card
(75) Appropriate uses of a Corporate Credit Card include:
- payment for goods/services in full or part supply;
- subscriptions for the University;
- conference fees (where TAN is in place);
- travel expenses deemed appropriate under the Travel Policy (where TAN is in place);
- general consumables other than stationery and office supplies;
- equipment items other than any computing equipment and with a value less than $5000. (Please refer to the Procurement policy and adhere to any required procedures prior to the purchase transaction); and
- official entertainment.
(76) Inappropriate uses of a Corporate Credit Card include:
- internal payments to the University;
- private expenses, including the purchase of gifts, food and related items in relation to non-business activities, such as birthday celebrations and the like;
- accrual of personal Loyalty points or FlyBuy points with purchases;
- private telephone accounts including internet/broadband services;
- motorway tolls;
- personal professional association membership fees;
- travel costs where the employee has elected to receive reimbursement for actual costs or has elected to receive a specified travel advance;
- withdrawal of cash /cash advances except where the credit card has been specifically approved for this purpose by the Director, Financial Operations or the Vice-President, Finance and Resources;
- stationery and general supplies including DVDs, CDs available from the University's approved contract supplier;
- computer equipment including all hardware, CD burners, DVD burners, mobile phones, Ipads, Tablets, data services and plans and software (excluding the purchase of low value business use only software unavailable through IT Services and purchased from managed application outlets such as Apple Store), other equipment items with a value of $5000 or greater. Please refer to the Procurement Policy;
- splitting purchases to avoid purchasing policy requirements;
- fuel purchases with the exception of hire cars, new University vehicles awaiting issue of fuel cards and in exceptional circumstances purchases with the prior approval of the Director, Financial Operations;
- University-appointed Travel Agent bookings;
- books or journal subscriptions/serials (other than in exceptional circumstances). Where such an exception has been approved, details must be forwarded to the Library for recording purposes; and
- tips and gratuities made in respect of meals and/or entertainment provided in Australia. If employees wish to give a tip or gratuity then it shall be at the employees own expense. An exception can be made where a set percentage service charge is added to the bill in an overseas country where it is culturally expected and appropriate.
- Donations in any form made to any political party or political association.