AQ0600 - CORPORATE CREDIT CARD (BMO COMMERCIAL) CODE OF RESPONSIBILITY 1.0 PURPOSE To provide guidelines for Interior Health Staff requesting and using corporate credit cards. 2.0 DEFINITIONS Health Shared Services British Columbia ( HSSBC ): Department Head: a not-for-profit, consolidated shared services organization created to enhance value to the health system through the effective delivery of non-clinical services including Supply Chain services on behalf of all health authorities in British Columbia. a supervisor, manager, director or executive lead to whom the cardholder directly reports. 3.0 POLICY 1. Purchases under $2,000 (including taxes) may be purchased on a corporate credit card provided if: a. the item purchased is not minor equipment; b. Interior Health (IH) does not have a supply contract for a competitive product; c. the purchase is not a capital project cost unless authorized by the Capital Planning and Projects department; or d. the purchase is in compliance with AP0300 Travel Expense Policy, AP0700 Signing Authority Policy and any other applicable policies. Examples of purchases for which a credit card is appropriate include: books, travel, professional fees, department store purchases, incidentals, confectionary, novelties, consumer products, advertising, maintenance parts, emergent purchases, car rental and fuel, sundry. The following purchases are NOT appropriate: construction costs, medical/surgical items, personal or fleet vehicle expenses, office supplies/furniture, computer products, gift cards and software. If a total purchase price (including tax and delivery) exceeds a cardholder's transaction limit, the cardholder may not split a purchase into multiple transactions. 2. Department Heads are responsible for approval of corporate credit card requests of their staff, approval of monthly statements and notification to Accounting & Treasury of changes to department staffing that affect the assignment of the card and destruction of cards of terminated staff. Staff changing departments may retain their card with the new manager s approval but must notify HSSBC Supply Chain to change the default department assigned to the card. Department Heads will review transactions for appropriateness and ensure that travel expenses are being captured and recorded to the appropriate individual. Department Heads are responsible to sign off on a Corporate Credit Card Request form (Appendix A). Policy Sponsor: Vice President Residential Services and Chief Financial Officer 1 of 6
3. Corporate credit cards will be issued to specific individuals as approved by Department Heads or Capital Planning. HSSBC s Lead, Accounts Payable will review and initial applications for completeness up to a maximum of $10,000 per month. Applications will be approved based on meeting the rationale of either: a. frequent purchases under $500; or b. frequent overnight travel. 4. The Manager, Accounting & Treasury, will be responsible for administering the program including merchant blocking and card controls and will act as the liaison between BMO and Interior Health. 5. Cards will be restricted to a maximum monthly credit limit of up to $10,000. Higher limits must be approved by the cardholder s Director and the Manager of Accounting & Treasury or Finance Card Administrator. 6. Cardholders must retain all original detailed receipts for submission and must attach them to the monthly statements. 7. The corporate credit card is provided to employees based on their need to purchase business-related goods and services. A card may be revoked at any time based on change of assignment or location. The card is not an entitlement nor reflective of title or position. 8. The card is for business-related purchases only; personal charges are not to be made using the card. 9. Unauthorized use of the card can be considered improper use of IH funds, which may result in disciplinary action, up to, and including termination. The card is for the sole use of the cardholder and they should be present when it is used. Sharing of cards is not permitted. 10. Cardholders are expected to comply with internal control procedures in order to protect company assets. This includes keeping receipts, reconciling monthly card statements and following proper card security measures. 11. Failure by the corporate credit cardholder to perform an account reconciliation for two consecutive months will result in the suspension or cancellation of the corporate credit card. 12. A cardholder must surrender his or her card upon termination of employment (i.e. retirement or voluntary/involuntary termination). At this point, no further use of the account is authorized. 13. A lost or stolen card or disputed transactions should be reported immediately by telephone to BMO Commercial Card Service Centre at 1-800-263-2263 and to the Material Services Customer Care Help Desk on the next business day at 1-877-979-7780, or email to materialservicestrainingandsupport@interiorhealth.ca. The cardholder will be considered accountable for fraudulent transactions charged to the card if they fail to report the transaction within 60 days of the billing cycle date. 14. No cardholder may accept cash or a cheque from a vendor who is making a refund pertaining to a transaction previously charged to a corporate credit card account. A credit voucher must be issued by the vendor in all cases. 15. Cardholders are required to sign the IH Corporate Credit Card Cardholder Agreement (Appendix B). Policy Sponsor: Vice President Residential Services and Chief Financial Officer 2 of 6
4.0 PROCEDURES 1. The department making purchase(s) and/or return(s) with vendor(s) will coordinate the pickup of supplies. Arrangements for the pickup of the goods can be accomplished various ways including: a. the department requesting purchase(s) will pick up; b. the requesting department makes arrangements with a local courier; or c. the service area has its own transportation service and can do the pickup for the requesting department. 2. If the product is being shipped to an IH receiving dock, the supplier is to be instructed to put the department or cardholder name and location on the external packaging so that the item(s) can be delivered internally. 3. When placing orders by phone, ensure the supplier sends the receipt to the cardholder, and not to HSSBC Accounts Payable. 4. It is the cardholder s responsibility to logon to Details on Line (DOL) (www.bmodetailsonline.com) to retrieve their statement. Cardholders can set their online profile in order to receive an email notification from BMO that their statement is ready. Transactions will be pre-coded to the default department of the cardholder and grouped by Expense Object Code based on the merchant category. For each transaction, the cardholder must insert a brief description of the business reason for incurring the charge. Each transaction will also identify a traveler, which will default to the cardholder s name. This is a reporting function as all business travel must be identified by staff member. Even nontravel transactions will have an associated traveler name but in this case, is not relevant and can be ignored. 5. If there are no further changes to be made to department, expense codes, descriptions or traveler name, the cardholder prints the statement, attaches receipts, obtains their supervisor s (or designate) signed approval on the statement and forwards to HSSBC Accounts Payable by the end of the month. 6. If the cardholder needs to change the department, expense codes or traveler name on any transaction, the cardholder may do this any time after a transaction has been posted by BMO. The cardholder has up to five business days from the date they receive the statement to make any adjustments through DOL, www.bmodetailsonline.com, BMO s on-line, webbased card management system. (A step-by-step procedure can be found on the intranet under Purchasing). Invalid cost centers will revert to the default cost center for the card. Invalid EOC s will revert to 6950000. The cardholder then prints the statement with the changes, attaches receipts, obtains supervisor (or designate) signed approval on the statement, and forwards it to HSSBC Accounts Payable by the last day of the month. 7. Within two business days following the 20th day of the month, Accounting downloads all transactions from DOL which are subtotaled by Department and EOC, and enters the expenses into Meditech. Editing to transactions can no longer be made on DOL following this date. 8. HSSBC Accounts Payable will review statements to ensure that receipts are attached, statements are signed off by managers and general compliance to the this policy. Policy Sponsor: Vice President Residential Services and Chief Financial Officer 3 of 6
CORPORATE CREDIT CARD PROCEDURE SUMMARY Cardholder Places Order/Receives Order Specify shipping info Specify billing info Receive Statement notification from BMO Details Online (DOL) two business days following the 15 th day of the month Log on to DOL and review statement. Ensure each transaction has a description. If further changes are required, edit on DOL by the 20 th of the month (Refer to BMO Training Guide for detailed instructions) Print statement, sign and attach receipts Supervisor or designate signs off on statement, ensuring expenses are in compliance with stated policies and that they approve the expense Send to HSSBC Accounts Payable by the end of the month Policy Sponsor: Vice President Residential Services and Chief Financial Officer 4 of 6
APPENDIX A CORPORATE CREDIT CARD REQUEST Please arrange for an Interior Health corporate credit card to be issued as follows: Issue card in the name of Cardholder s IH employee number: Cardholder s Mnemonic Outlook E-mail Address Position/Title Department Facility Mailing Address of Facility Department Code (i.e. 1002.71.1353000) Transaction Limit (recommended $2,000) Period Limit (recommended $5,000) Supervisor s Name and Phone Number By signing below, supervisors acknowledge that they have read and understood their responsibilities as outlined in the Corporate Credit Card Policy/Procedure. Supervisor s Signature (must have primary signing authority for above cost centre) Rationale Frequent small (under $500), local purchases Frequent overnight travel Fax completed requisition to: HSSBC Supply Chain #104-2355 Acland Road, Kelowna, BC, V1X 7X9 Phone: 1-877-979-7780, Fax: 250-491-6347 Supply Chain Initial: Policy Sponsor: Vice President Residential Services and Chief Financial Officer 5 of 6
APPENDIX B INTERIOR HEALTH CORPORATE CREDIT CARD CARDHOLDER AGREEMENT Interior Health is pleased to present you with a corporate credit card. It represents Interior Health s trust in you and your empowerment as a responsible employee of Interior Health to safeguard and protect Interior Health s assets. I,, agree to comply with the policy and procedures provided, and as such, may subsequently be revised. I acknowledge receipt of the policy and procedure and confirm that I have read and understand its terms and conditions. I understand that Interior Health is liable to The Bank of Montreal for all charges made by me. As the holder of this BMO Commercial Card, I agree to accept responsibility for the protection and proper use of this credit card as outlined in the Policy & Procedure. I understand that Interior Health will audit the use of the BMO Commercial Card. I understand that commodities, where Interior Health-wide Agreements are in place, MUST be purchased from the contract suppliers. I further understand that improper use of this corporate credit card may result in disciplinary action. I understand that Interior Health may terminate my right to use this corporate credit card at any time for any reason. I agree to return the corporate credit card to Interior Health immediately upon request or upon termination of employment. APPLICANT: Signature: Date: Print Name: Dept. Phone #: Department: Policy Sponsor: Vice President Residential Services and Chief Financial Officer 6 of 6