Waterfront Auckland s Credit Card Policy

Transcription

1 Waterfront Auckland s Credit Card Policy CONTENTS 1. Policy Statement 2. Background 3. Purpose and Scope 4. Principles and Strategic Alignment 5. Policy Definitions 6. Policy 6.1 Issue of Waterfront Auckland credit cards 6.2 Use of credit cards 6.3 Use of personal cards 6.4 Review and approval 6.5 Delegation of coding and approval duties 6.6 Personal Expenditure 6.7 Cash Advances 6.8 Cancellation of cards 6.9 Security and Lost or Stolen Cards 6.10 Disputed Transactions 6.11 Credit Card Amendments 6.12 Applications for new cards 6.13 Internet purchases using credit card APPENDIX ONE Pin selection and protecting Pins APPENDIX TWO Auckland Waterfront Auckland Terms and Conditions of Credit Card Use

2 WATERFRONT AUCKLAND CREDIT CARD POLICY The purpose is to provide guidance on the use of Waterfront Auckland s credit cards as a method of payment for Waterfront Auckland expenditure POLICY STATEMENT The purpose is to set out the policies and procedures relating to the use of Waterfront Auckland credit cards by Waterfront Auckland staff as a method of payment for Waterfront Auckland expenditure. 2. BACKGROUND Waterfront Auckland has made a decision to roll out a purchase card solution that will form an additional payment channel for small value expenditure and reduce the transaction levels of expenditure processed by Accounts Payable. 3. PURPOSE AND SCOPE The purpose is to set out the policy and procedures relating to the use of Waterfront Auckland credit cards as a method of payment for Waterfront Auckland expenditure. This enables efficient processing of low value transactions and avoids employees having to use their own money while incurring expenses on behalf of Waterfront Auckland. This Policy covers all Waterfront Auckland credit cards for Waterfront Auckland employees. Credit cards should not be used for significant items of expenditure, but only used where usual means of payment on account are not feasible. Typically, such items will only include operational work related items. Air travel and entertainment expenses are not to be charged to Waterfront Auckland credit cards. (see Travel policy). The Board have decided not to issue Credit Cards to Board Directors, the Chief Executive has decided not to authorise credit cards for General Managers. Credit cards are available only to frontline staff in the Marina and central admin functions to facilitate the purchase of goods and services for small volume / value day to day business functions. Credit cards are never to be used for non business related and/or personal expenditure. Credit limits will be set depending on the business requirements. Credit limits should be kept at a minimum level when an extended credit limit is not required. All card holders and associated credit limits shall be approved by the GM Corporate Services in line with Delegated Authority Policy. Waterfront Auckland credit cards will not be issued to non employees, contractors, and casuals. 4. PRINCIPLES AND STRATEGIC ALIGNMENT This Policy is designed to align with the key principles in the Office of the Controller and Auditor-General's (OAG) good practice guide, "Controlling sensitive expenditure: Guidelines for public entities". The key principles in the OAG guidance include: Public money principle - public money is not the property of Waterfront Auckland staff to do with as staff please. The expenditure must be subject to standards of probity and financial prudence that are to be expected of a public entity and able to withstand public scrutiny, including audit scrutiny. Expenditure decisions should:

3 have a justifiable business purpose; preserve impartiality; be made with integrity; be moderate and conservative, having regard to the circumstances; be made transparently and be appropriate in all respects The guidance notes that the above principles should be applied as a set. None should be treated as more important than another. The issuance of a Waterfront Auckland credit card is an act of trust by Waterfront Auckland. This needs to be reflected in the way in which a cardholder uses the card. The general terms and conditions of the card must be complied with. The highest standards of ethics and probity are expected from every cardholder. The availability of credit cards is restricted to those who have a genuine "business" need for one. They are neither a status symbol nor a "perk". Waterfront Auckland credit cards should not be used as a matter of course, but only when the normal purchasing procedures are not available. As much as possible, cardholders should attempt to purchase through the normal purchasing system. The nature of expenditure incurred on the credit card should still comply with Waterfront Auckland's other discretionary expenditure policies. All employees must ensure that expenditure is business related and that this Policy, other discretionary expenditure policies and Waterfront Auckland's Fraud Policy, are adhered to at all times. Approval/authorisation is required by a General Manager. The Approver must hold a delegated financial authority in line with purchasing approvals. 5. POLICY DEFINITIONS BNZ Bank of New Zealand PIN Personal Identification Number Cardholder means Waterfront Auckland employee issued with a Waterfront Auckland credit card. Card approver or Approver means the general manager of the Cardholder 6. POLICY The purpose is to provide guidance on the use of Waterfront Auckland's credit card as a method of payment for Waterfront Auckland expenditure. This Policy covers all Waterfront Auckland credit cards. 6.1 Issue of Waterfront Auckland credit cards Waterfront Auckland has an agreement with BNZ to provide credit cards. No other Waterfront Auckland credit cards will be in circulation. Waterfront Auckland credit cards will only be issued to operational staff to facilitate payment of business expenses. Only those persons authorised by Waterfront Auckland, on approval of a the GM Corporate Services or CEO, may operate a credit card in Waterfront Auckland s name. A register of card holders is maintained by Accounting Services (Auckland Council). The limits set on the individual credit cards will not exceed the overall financial delegation of the card approver. Credit limits set will be kept to a minimum level when extended credit limits are not required. Employees that are responsible for administering the credit cards will not be eligible for a card. When selecting and managing a credit card PIN, card holders must comply with the BNZ policy on PIN s. The selected PIN must be designed to reduce the change of anyone guessing the numbers you choose. The PIN must be kept confidential at all times.

4 Prior to the card being issued, the recipient must be given a copy of this Policy and be required to sign it to signify that they have read and understood it. All card holders are required to sign a Terms and Conditions of Use form before being issued with the card. 6.2 Use of credit cards Credit cards will only be used where usual means of payment on account are not feasible. Typically, such items will only include operational work related items. Travel and entertainment expenses are not to be charged to Waterfront Auckland credit cards. (See Travel Policy). Credit cards must not be used to purchase capital expenditure items. Credit cards must not be used to meet the costs of tipping staff in NZ. All expenditure charged to the credit card must be supported by a detailed tax invoice. When an expense involves more than one cardholder, the expense should be charged to the credit card of the most senior cardholder. Expenditure must never be split between cardholders. Cardholders are not permitted to exceed their Waterfront Auckland credit card limit (daily and overall monthly limit). Carholders are not permitted to share their card and associated PIN. A signed declaration will be required by the BNZ and outlines the non sharing of cards rule. Failure to comply with this will result in the cardholder being held personally liable for the transactions incurred. 6.3 Use of personal cards If an employee incurs approved business expenses and is not a Waterfront Auckland credit card holder, Waterfront Auckland will reimburse the employee for the business expenditure. To claim the reimbursement, the employee must comply with the Staff reimbursement policy. 6.4 Review and approval Each time a transaction is incurred by a card holder, the expenditure transaction will be sent electronically to the card holder s address. The card holder is required to review and code the transaction appropriately (as per the Spendvision guide). Adequate narration is required on each transaction to enable the Approver to approve the transaction. Narrations must include who attended, what the purpose of the expenditure was. Card holders must code all of their transactions prior to month end. Receipts must be attached to the P card statement prior to month end and be sent to the approver. Coded transactions are then sent electronically to the one up manager s for approval. The approver of the cardholders expenditure transactions must go into each transaction, review the transaction for appropriateness (including supporting receipts) and approve or decline each transaction. Inappropriate or non compliant transactions will be declined by the approver. Approvers must approve or decline all transactions prior to month end. The card approver must: review all transactions ensure all transactions have the correct GL, Business unit, GST status and appropriate narration, and Project and Asset code (if applicable) ensure cardholders follow the appropriate policies and procedures advise Card Administrator in writing of changes in employees, cost centre or address advise termination/transfers, along with the return of the card (duly cut in two) to Administrator for cancellation

5 Accountability rests with the approver for determining the appropriateness of expenditure. Uncoded and unapproved transactions will be treated as non compliance with this policy. 6.5 Delegation of coding and approval duties If the cardholder is away, coding duties can be delegated to another staff member. If the approver is away, approval duties can be delegated to the staff member on the same tier or higher than the current approver. 6.6 Personal Expenditure No personal expenditure is to be charged to a Waterfront Auckland credit card under any circumstances. Personal expenditure on Waterfront Auckland credit cards is considered gross misconduct. Where personal expenditure is incurred, the employee will be subject to disciplinary procedures. 6.7 Cash Advances Cash advances are not available on Waterfront Auckland credit cards. If cash is required for overseas travel, this should be pre-arranged with the Travel co-ordinator. 6.8 Cancellation of cards The Administrator has the right to cancel a credit card at any time. Cancellation will occur where a cardholder has breached the terms of this policy in relation to coding, provision of receipts, etc. The credit card must be returned by the cardholder on termination of their employment with Waterfront Auckland to the Accounting Services Department for cancellation with all the supporting documentation and reconciliation of card balance at the time. The card cancellation should be processed by the Accounting Services Department immediately once the expenditure has been reviewed and signed off. The cardholders tier 3 manager must sign off the "Termination of Employment Checklist" certifying that the expenditure has been reviewed and approved. All final wage/salary payments will be subject to completion of the Termination of Employment Checklist. 6.9 Security and Lost or Stolen cards It is the cardholders responsibility to keep the card secure. If the card is lost or stolen, the Cardholder must notify the Auckland Council Administrator (during business hours) and the Police immediately and request a replacement. In the event the Administrator is not available, or after hours, contact BNZ directly on domestically or internationally, then contact the Administrator Disputed Transactions Any transactions of unknown origin or disputed transactions must be referred to the Auckland Council Administrator immediately Credit Card Amendments Credit card limit increase requests must be recommended by a tier 3 manager or higher. Tier 3 managers and above must gain one up recommendation of any limit increases. The recommendation is to be sent to Accounting Services by for final approval before the limit is increased Applications for new cards Staff wanting to obtain a card must complete Auckland Council s P card application form, must sign Auckland Council s terms and conditions of Credit Card use, have their application endorsed by their general manager, and approved by the CEO Internet purchases using credit card Purchasing over the internet is discouraged, but there may be instances where this is warranted. All credit card payments over the internet need to reflect good security practice. Purchases must be only from established reputable companies known to Waterfront Auckland which use a safe and secure site. The card holder needs to keep a copy of any online order forms completed when purchasing. Any purchases using the credit card over the internet must be consistent with Waterfront Auckland's normal purchasing practices. Cards that are required to

6 be used over the internet should have low credit limits to minimise the risk to Waterfront Auckland over fraudulent activities. Responsibilities The cardholder is responsible for: Card security Keeping receipts and tax invoices for all charges Comply with Waterfront Auckland's policies Ensure all transactions are coded in Flexipurchase using the correct GL, Business unit, GST status and appropriate narrative is includes that outlines the purpose of the expenditure. Ensure all transactions are coded monthly (minimum). Cardholders who fail two times to comply with the P card policy requirements, as provided with the application form and also available on the intranet, will have their P card suspended. This two strike" policy is to ensure P card policy compliance. Receipts and supporting documentation must be scanned into Spendvision and attached to the credit card transaction at the time of coding the transactions. The card approver is responsible for: Checking the submitted transactions have the correct GL,Business Unit, GST status and appropriate narration Ensuring the transaction is business related, reasonable and appropriate based on the Cardholders position and that appropriate receipts and vouchers have been sighted at month end. Reviewing the attached supporting documentation and approving the transactions, within three business days of receiving notification to approve. The card administrator (Auckland Council Staff member) is responsible for: Being the point of contract between Waterfront Auckland and BNZ Issuing new and replacement Waterfront Auckland credit cards Being the liaison point with BNZ for any cancellation, change of cost centre and/or addresses Monitoring exception reporting on exceeded credit card limits Informing BNZ of any cardholder problems with vendors/merchants Investigating any charges disputed or unknown transactions as notified by Waterfront Auckland card holder Ensuring cardholder coding and approver approvals are complete by monitoring and following up non compliance Resolving statement enquires raised by cardholders Monitoring adherence to Waterfront Auckland credit card policy and procedures General Manager Corporate Services Review and report credit card limits. Breach of policy Any breach of this Policy may be considered to be serious misconduct and may lead to withdrawal of the card, disciplinary action including possible dismissal and, for serious and wilful misuse, police action. In all cases of misuse, Waterfront Auckland will endeavour to recover any monies from the cardholder, including by appropriate legal means if required.

7 APPENDIX ONE PIN selection: Waterfront Auckland credit cards will be the new chip technology and will require a PIN to be selected. Your selected PIN must be one designed to reduce the chance of anybody guessing the numbers you choose. You must avoid unsuitable PINs such as: - birth dates, months or years in any form or combination; - sequential numbers (such as 3456) and easily identifiable number combinations (such as 1111); - any of the blocks of numbers on your card; - other easily accessible personal figures such as parts of personal telephone numbers or personal data; PIN changes may be made at any of the BNZ branches. Means of protecting a PIN: You are responsible for keeping your PIN secure. In particular you must: not keep a written record of your PIN; not keep your PIN in a form that can be readily identified as a PIN; not disclose your PIN to any other person (including persons in apparent authority, family members or spouse); not negligently or recklessly disclose your PIN; notify BNZ immediately if you become aware that your PIN has become known to someone else; and ensure any other cardholders who are able to access any of your Card Accounts by a PIN keep their PIN secure as set out above.

8 APPENDIX TWO AUCKLAND WATERFRONT AUCKLAND TERMS AND CONDITIONS OF CREDIT CARD USE Employee Name:..I hereby confirm that on receipt of my Waterfront Auckland Credit Card (the card ) issued in my name, I will abide by the following conditions: The Card will be used only by me and only after I have signed the reverse of the card in the space provided. I undertake to comply in all respects with BNZ Terms and Conditions in relation to the Card and understand as a BNZ cardholder that I am jointly and severally liable along with Waterfront Auckland for all transactions on this card. I will not charge personal expenditure to the Card. The Card will only be used for Waterfront Auckland business related expenses in accordance with Waterfront Auckland s policies and procedures, and I agree that it is my responsibility to always keep myself informed of such policies and procedures. I have read Waterfront Auckland s Credit Card Policy and related procedures. Should I use the Card for personal expenditure or expenses which are subsequently not approved as valid Waterfront Auckland business related expenses, then I authorise Waterfront Auckland to deduct from any sum it owes to me at any time the amount of unapproved expenditure and I agree that should amounts still be outstanding, I will pay these immediately in full to Waterfront Auckland. Waterfront Auckland may also recover any such amount as a debt. I also agree that personal transactions on Waterfront Auckland credit cards constitute gross misconduct and will be dealt with accordingly. I will not use the Card to guarantee the payment of a cheque to a third party. If the card is lost or stolen, then I understand that I must notify BNZ and the Police immediately, and request a replacement Credit Card. In the event that BNZ is not notified, the liability of all expenses incurred by an unauthorised person will be with Waterfront Auckland as the card owner. I undertake to code and submit my expenditure as per the policy and scan tax invoices, receipts and vouchers into the Spendvision system within the required timeframes. I will immediately surrender my Card upon the request of an authorised representative of Waterfront Auckland, if for any reason I cease to be employed by Waterfront Auckland. I understand and accept that the Card can be withdrawn or cancelled by Waterfront Auckland at any time, entirely at its discretion. I understand and agree that any failure to comply with any of the above conditions of use, or any of the Waterfront Auckland s policies and procedures referred to above, will result in the Card being withdrawn or cancelled by Waterfront Auckland. CARDHOLDER S NAME: POSITION: CARDHOLDER S SIGNATURE:. DATE:.