Council Policy Manual

Transcription

1 CORPORATE CREDIT CARD Policy, procedure protocol Policy Document version 1 Policy number CORP4/5 Obsolete Number 3/1.1 Keyword classification Adoption date June 2004 Resolution Review due date This policy will be reviewed at the time of any relevant legislative changes, or may be reviewed at a minimum, every three years. Date revoked Documents superseded Related Documents Relevant delegations Responsible Directorate Responsible officer General Manager Finance Manager 1 Corporate Credit Card Policy

2 Contents Eligibility... 3 Limits... 3 Conditions of Use... 3 Monthly Business Card Statements... 3 Card Holder Responsibilities... 3 Accounts Payable Officer... 4 Procedures... 5 Applying for a Corporate Credit Card... 5 Issue of a Corporate Credit Card... 5 Renewal of Cards... 5 Reconciliation Procedures... 5 Lost or Stolen Cards... 6 Damaged Cards... 6 Termination of Employment... 6 Cardholders' Responsibilities Corporate Credit Card Policy

3 Eligibility 1. Permanent executive officers of the Council may apply for a Corporate Credit Card. 2. To be eligible for a Corporate Credit Card an officer must meet one or more of the following criteria: 2.1 Travel frequently in the course of his/her duties. Limits 2.2 Purchase Minor Goods and Services 1. Credit limits are set at $5,000 for permanent officers 2. ATM withdrawals are not permitted under any circumstances. 3. Cash withdrawals over the counter are not permitted under any circumstances. Conditions of Use 1. The Corporate Credit Card may be used for: 1.1. Payment of claimable travel expenses, eg the purchase of accommodation, taxi fares etc The purchase of minor stores where an account is not held with the supplier The Purchase of goods or services over the internet including airfares, accommodation, approved computer software. 2. The Corporate Credit Card cannot be used: 2.1. Regular or periodic payments are not to be charged to the card Capital items or low value assets cannot be purchased using a Corporate Credit Card. 3. The Corporate Credit Card is to be used only for Official Business. Monthly Business Card Statements Statements of card holder activity are issued once a month by the bank. The statements are printed by the bank after the end of the billing cycle. The statements are received by the accounts payable officer at the administration centre and distributed to the card holders. Card holders who have no activity during the month are not issued with a statement. Card Holder Responsibilities 1. The card holder will be personally responsible and accountable for the safe keeping of the card. 3 Corporate Credit Card Policy

4 2. The use of the Corporate Credit Card is governed by the Cardholders Responsibility and this policy. 3. Corporate Credit Card expenditure is to be reconciled within 15 days of Statement Date. Each cardholder is required to acquit the expenditure monthly and reconcile against the statement. Cardholders with outstanding acquittals at the end of the month will be requested in writing to acquit their expenditure. Cardholders with acquittals outstanding for greater than 2 months will be given notice in writing to acquit the expenditure. If the expenditure remains outstanding, or no reason submitted for the non-compliance, the card will be automatically cancelled with no further warnings. 4. All transaction slips are to be retained and submitted with cardholders reconciliation as supporting documentation. 5. Lost or stolen cards are to be cancelled immediately. 6. Officers issued with a corporate credit card are in a position of trust in regard to the use of public funds and improper use may render the cardholder liable to disciplinary and legal action as well as criminal prosecution for misuse. Accounts Payable Officer The Accounts Payable Officer will: 1. Maintain a Register of Cardholder s. The Register shall contain the cardholder s name, card number and credit limit. 2. Review all statements received and issue the statements to the cardholders. 3. Present a monthly report to the Finance Manager to include details of: 3.1. expenditure for the period 3.2. instances where the use of the card is contrary to guidelines 3.3. any matters which affect the efficiency or effectiveness of the card 3.4. action taken in relation to matters raised in the report 3.5. results of action in response to matters outstanding from previous reports. 4. Instigate action should there be evidence of misuse of card or transactions contrary to policies and procedures. 5. Ensure that the expenditure is checked against the supporting documentation which should be attached. 4 Corporate Credit Card Policy

5 Procedures Applying for a Corporate Credit Card 1. The officer must complete a Submission for A Corporate Credit Card Form The submission must be authorised by the General Manager A bank Cardholders Registration form (obtained from Accounts Payable Officer) is completed and attached to the request Use your first name and surname to complete the name field on the Registration Form. Do not include tiles eg Mr, Dr etc State your work address for the address on the bank Cardholders Registration Form Ensure the form is correctly completed and is signed by the officer requesting the card. The Authorising Officer is the General Manager Issue of a Corporate Credit Card 1. The card will be issued to the Administration Centre. 2. The officer requesting the card will be notified to collect the card from the Accounts Payable Officer in person. 3. Two copies of the Cardholders Responsibilities will be signed by the cardholder. One is for the officer, the other is returned to the Accounts Payable Officer where it is kept on file. Renewal of Cards Renewals for individual lost or damaged cards are requested by a memo to the Accounts Payable Officer. Reconciliation Procedures 1. Each month, the Accounts Payable Officer receives the monthly statements. The statements are distributed to each Cardholder. 2. The Cardholder reconciles the expenditure on the statement within 15 days of statement date by completing a Corporate Credit Card Reconciliation Form. Any amounts being disputed by the cardholder are to be reported to the Accounts Payable Officer who will pursue it with the bank. 3. All expenditure is charged to the relevant expense codes. Approvals where appropriate are to be attached. 4. A copy of the processed reconciliation is to be forwarded to the Accounts Payable Officer 5 Corporate Credit Card Policy

6 Lost or Stolen Cards 1. Lost or stolen cards must be cancelled as soon as possible by contacting the bank Details of the cancellation (bank s reference number, date and time) will be forwarded to the Accounts Payable Officer and the cardholder. 2. During business hours contact the Finance Manager in order for the card to be cancelled. Damaged Cards 1. Damaged cards can be replaced by cutting the card through the card numbers and returning it to the Accounts Payable Officer with a request for replacement. 2. The new card will be issued as per Issue of Corporate Credit Card above. Termination of Employment 1. Cardholders leaving the department must cut the card through the card numbers and return it to the Accounts Payable Officer. 2. The Cardholder must acquit all expenditure on their Corporate Credit Card. 3. Contact the Accounts Payable Officer to find out the balance of the card prior to completing the acquittal. 4. The acquittal must be lodged with the Accounts Payable Officer prior to last day of duty. Cardholders' Responsibilities Cardholders' must ensure that:- 1. Credit Cards are maintained in a secure manner and guarded against improper use. In the event that a card is lost or stolen, cardholders must report the loss immediately to the card provider regardless of whether it is a working day or weekend. The Finance Manager should also be advised as soon as possible. 2. cards are used only for official business purposes; 3. cards are only used by the person whose name appears on the card; 4. adequate funds are available to cover expenditure before it is incurred; 5. expenditure is approved by an officer with an authority to incur expenditure. 6. all documents (ie. withdrawal slips, receipts, etc.) supporting transactions on the card are retained. If no supporting documentation is available then the officer should provide a declaration detailing the nature of the expense and must sign on the statement that "All Expenditure is of a business nature"; 7. credit limits are not exceeded (purchases must not be split to negate credit limits); 6 Corporate Credit Card Policy

7 8. expenses claimed at the end of statement periods are submitted promptly. These should be completed and submitted for processing within an appropriate time limit to ensure the cardholder s account can be paid by the due date and no later than fifteen days after the credit card statement date; 9. deposits are not made to the card account (by the cardholder); 10. Cards are returned to the Finance Manager upon termination of employment; 11. Credit Card are used within the guidelines set out by the Council and the provider. Failure to comply with any of these requirements could result in the card being withdrawn from the officer. In the event of loss/theft through negligence, or non-compliance with these requirements any liability charged by the provider against the Council may be passed onto the officer. Acceptance of conditions: I acknowledge and accept the above conditions in the operation of my Credit Card Signed Date 7 Corporate Credit Card Policy