CORPORATE CREDIT CARD

CORPORATE CREDIT CARD CEO Directions CEO Directions define specific responsibilities of Comcare staff and others engaged to assist the organisation meet its objectives. They may also establish a set of behaviours required to be exhibited by these individuals. An individual s failure to comply with a CEO Direction may lead to disciplinary action. CONTENTS Scope 2 Roles and responsibilities 2 Issuing of corporate credit cards 3 Credit card limits 3 Cancellation of corporate credit cards 4 Lost, stolen, misuse of corporate credit cards and pin security 4 Monthly credit card statement reconciliations 5 General terms of use 6 Disputed transactions 7 Audit and monitoring 7 Further information 7 Appendix 1: Valid tax invoice 8 Appendix 2: New cardholder request 9 Appendix 3: Annual cardholder declaration 11 Appendix 4: Lost tax invoice/receipt declaration 12 Appendix 5: Dispute transaction 13 Appendix 6: Misuse of corporate credit card 14 Published date: 1 May 2013 Review period: Policy owner: As required Chief Financial Officer 1

SCOPE 1. The CEO Direction Corporate Credit Card (the Direction) sets out Comcare s policy on corporate credit cards and applies to all corporate credit cardholders and those managers responsible for authorising credit card applications and authorising cardholder s monthly credit card statement acquittals (the Approving Officer). 2. Comcare s credit card facility is provided by Mastercard through the Commonwealth Bank of Australia (the Bank). 3. The Direction must be read in conjunction with CEO Direction Official Hospitality, CEO Instruction Travel and Procurement and Instrument of Delegations Financial Authorisations. ROLES AND RESPONSIBILITIES Chief Financial Officer 4. The Chief Financial Officer (CFO) is responsible for the enforcement of Comcare s corporate credit card policy and ensuring an effective system of accountability and control is in place for the administration and management of Comcare s corporate credit cards. Finance 5. Under the direction of the CFO, Finance is responsible for the issuing, cancelling, monitoring and reporting of corporate credit cards (the Card). The Finance Team will conduct regular audits of cardholder s credit card reconciliations and report findings to management. Finance will periodically review usage of cardholder accounts to ensure credit limits are appropriate for the level of usage. Cardholders 6. Cardholders are responsible and accountable for the transactions charged to their Card. Cardholders must ensure transactions are for official business purposes only and are in accordance with Comcare s policies, procedures, CEO Directions, CEO Instructions, the Commonwealth Authorities and Company Act, Public Service Act and any other government policies/procedures relating to government spending. 7. Cardholders are to reconcile and acquit their credit card statements each month, by the end of the month. Cardholders are to promptly follow up and resolve any discrepancies or disputed transactions on their credit card statements. 8. Cardholders must ensure that all transactions appearing on the monthly credit card statement have been charged correctly, are correctly recorded with an account code, GST and description in the financial system (Finance One). Tax invoices and/or other supporting documents are attached to the credit card statement and filed in TRIM. 9. Cardholders are responsible for the safeguarding of the Card and the return of the Card to Finance for cancellation in any of the situations specified in Cancellation of Corporate Credit Cards section below. 10. At the commencement of each financial year, each cardholder will need to sign an Annual Cardholder Declaration stating that they fully understand their cardholder responsibilities as a cardholder as stated in the Direction. The signed declaration must be placed on the cardholder s TRIM file. Approving Officer 11. Approving officers are responsible for ensuring cardholders adhere to the Direction, other relevant policies, procedures, appropriateness of all purchases and the timely completion of the acquittal process, including zero transaction reports, for all cardholders under their responsibility. CEO DIRECTION CORPORATE CREDIT CARD 2

ISSUING OF CORPORATE CREDIT CARDS 12. The purpose of the Card is to facilitate and simplify the purchasing process for minor purchases and travel expenditure. 13. The Card will only be issued to an employee who: > is required to travel for business purposes; and/or > can demonstrate an ongoing and regular need to purchase goods or services on behalf of a Group or Team which are best facilitated through the use of a credit card. Examples include paying for training courses, professional fees, publications, catering or any purchase where a credit card is the only acceptable form of payment. 14. Both ongoing and non-ongoing employees can apply for the Card provided they have a genuine business need such as those specified in paragraph 13. The employee must complete the two New Cardholder Request forms (Comcare s and the Bank s) and obtain authorisation from their General Manager prior to lodging the application with Finance. 15. Contractors will not be eligible for the Card. The exception to this is where a contractor is working on a long term contract for Comcare and will be required to undertake frequent travel as part of that engagement. Eligible contractors must complete the new cardholder request forms and obtain authorisation from their General Manager prior to lodging the application with Finance. 16. Finance will finalise the application forms to complete the approval process in accordance with Comcare s Financial Delegations. Finance will submit the applications to CBA and advise the cardholder when their Card is ready to be collected (allow 10 working days). 17. Expiring Cards are automatically renewed by the credit card provider a few weeks prior to the expiry date. 18. Where a cardholder transfers to another group within Comcare, it is the cardholder s responsibility to have their new General Manager approve the continued use of the credit card and provide details of new cost centre by emailing HelpDesk-Finance. CREDIT CARD LIMITS 19. Standard transaction and monthly limits: Officer Transaction limit (incl GST) Monthly credit limit (incl GST) Chief Executive Officer $5,000 $20,000 Senior Executive Officers $5,000 $10,000 Directors $5,000 $10,000 Executive Assistants and Executive Officers $2,000 $10,000 All other staff $2,000 $5,000 20. Where there is a need, either ongoing or one-off, to increase the credit limit of the Card, the cardholder must make a request to Finance in writing (email acceptable), providing the reason for the proposed increase and approval of the responsible General Manager. The Chief Financial Officer retains the right to override the requested limit if deemed excessive. 21. The Finance Team will review card usage and limits regularly and recommend adjustments to the standard limit when the need for excess limit is no longer present. CEO DIRECTION CORPORATE CREDIT CARD 3

CANCELLATION OF CORPORATE CREDIT CARDS 22. The Card is not transferable. The Card may be cancelled by Finance when: > the cardholder ceases employment with Comcare > the cardholder no longer requires the Card because of a change of duties or positions > the cardholder is taking an extended period of absence e.g. three or more months > the cardholder fails to comply with any CEO Directions, Comcare s policies or procedures relating to the use of the Card > requested to do so by a Supervisor/Manager or the CFO; or > the Card is unused for more than twelve months. 23. Where the cardholder is leaving the employment of Comcare, the cardholder is required to return the Card to Finance and comply with the Comcare s exit procedures, including the reconciliation of all outstanding credit card statements. 24. Finance must ensure that the Card is effectively destroyed and notify the Bank of the cancellation. LOST, STOLEN, MISUSE OF CORPORATE CREDIT CARDS AND PIN SECURITY 25. Cardholders must ensure that the Card is kept in a safe place and immediately advise the Bank if it is lost, stolen or there are suspected unauthorised transactions. Cardholders must also notify Finance and their direct supervisor as soon as practicable. 26. Cardholders are not to disclose their card number to anyone, apart from when making a purchase. 27. Cardholders must not disclose their PIN to anyone nor record it on any article carried with the Card or any article which is susceptible to loss or theft at the same time as the card. 28. Comcare takes misuse of the Card seriously. Every year Comcare is required to report all credit card misuses, wilful or inadvertent and any remedial actions taken to the Department of Finance and Deregulation. 29. Wilful misuse of the Card can be a criminal offence. Penalties apply for fraud or misuse of the Card under the Commonwealth Authorities and Company Act 1997, Public Service Act 1999 and Crimes Act 1914 and card holders may be liable for any loss to the Commonwealth. 30. If an employee is suspected of misusing the Card, the responsible Director or General Manager should immediately notify Finance and take necessary actions to investigate the matter. If fraudulent activity is suspected the matter must be referred to the Fraud Officer in the Governance, Audit and Risk Team. 31. Cardholders who have inadvertently misused the Card, such as making a non-business related purchase, must reimburse immediately any amounts incurred to Comcare by either depositing the amount onto the Card or other payment arrangement as agreed with Finance as soon as the misuse is identified. A Misuse of Corporate Credit Card form must be completed and forwarded to Finance for record. 32. Where an employee is found to have contributed to a financial loss through negligence or misconduct, the employee may be held liable for the value of the loss. CEO DIRECTION CORPORATE CREDIT CARD 4

MONTHLY CREDIT CARD STATEMENT RECONCILIATIONS Reconciliation of credit card statement 33. Card transactions are loaded into Finance One monthly (currently by the 20th). Cardholders are notified when transactions have been loaded and must acquit their transactions in Finance One by the end of the month. The online tutorial, Finance One Purchase Card User Guide and Purchase Card Tutorial, provides instructions on how to acquit the transactions in Finance One. 34. Cardholders are to reconcile and acquit their card statements monthly. Reconciliations and supporting documentation must be provided to the delegate for approval. Where there has been no transaction during the month, a zero transaction report must be printed and authorised. 35. Cardholders are to promptly follow up and resolve any discrepancies or disputed transactions on their card statements. 36. Cardholders must retain all tax invoices, supporting documentation, approvals associated with each purchase and attach them together with the card statement in TRIM (electronically and filed). The TRIM file must be titled FINANCIAL MANAGEMENT Accounting Mastercard Reconciliation Cardholder Name Financial Year. A new file must be created for each financial year. 37. Tax invoices must be obtained for all transactions. The credit card approval slip does not constitute a tax invoice. Tax invoices must indicate if the amount paid is GST inclusive or exclusive. There must be a clear description of the goods/services purchased on the tax invoice. Failure to provide valid tax invoices may result in financial loss for Comcare as GST paid cannot be recovered. 38. Where a tax invoice is not immediately available, for example, where a transaction is conducted over the phone, the cardholder must record all relevant details and ensure a tax invoice is duly received subsequent to the purchase. Where a copy of a tax invoice cannot be obtained or lost a Lost Tax Invoice/Receipt Declaration with explanation must be completed and approved. The completed declaration must be placed on the cardholder s TRIM file. 39. Transactions subject to FBT must be properly documented and recorded. For example, FBT entertainment is to be recorded and attached to the card statement, detailing the number of people attending with a breakdown of staff and non-staff. 40. Cardholders are to acquit all outstanding transactions on their credit card before taking any leave if the acquittal deadline falls during the period of absence. If this is not practical, for example, because card transactions have not been loaded into Finance One, the cardholder should provide sufficient information for another employee to acquit the transactions on their behalf. 41. For cash amounts withdrawn from ATMs as the daily travel allowance, the ATM receipt must be obtained and placed on cardholder s TRIM file as evidence of acquittal. 42. Where travel related expenditure has been incurred on the Card, a copy of the completed travel expenditure reconciliation must be placed on the cardholder s TRIM file. Expenditure incurred in relation to travel must be within the limits specified in Comcare s CEO Instruction Travel. 43. Repeated failure to acquit monthly statements in a timely manner is considered a serious breach of the Direction. CEO DIRECTION CORPORATE CREDIT CARD 5

Approval of credit card statements 44. Acquittal statements are to be approved by the cardholders direct supervisor at the Director level or above except in the following cases: > the DCEO approves acquittal statement of the CEO; and > Executive Officers may approve acquittal statements of the Executive Assistants. 45. Approving officers are responsible for the timely completion of the acquittal process, including zero transaction reports, for all cardholders under their responsibility. A zero transaction report must be authorised where there have been no transactions by the cardholder during the month. 46. Approving officers must exercise due diligence in ensuring cardholders adhere to the Direction, other relevant policies and procedures and confirm the appropriateness of all purchases before approving the acquittals. Any serious breaches to Comcare policies must be investigated and reported to Finance and where necessary, the responsible General Manager or above. GENERAL TERMS OF USE 47. Employees are to use the Card for official business related purposes only. 48. Cardholders must obtain approval from an appropriate financial delegate before using the Card to pay for their own business expenses e.g. professional membership, training, travel etc, see Instrument of Delegations Financial Authorisations. 49. Direct debit authorities must not be placed on the Card. 50. Items such as tips, donations, airfare optional extras (carbon offset and insurance), personal expenses on accommodation invoice (e.g. movies, minibar items other than for travel meal) and unacceptable gifts under CEO Direction Gifts and Benefits are considered inappropriate expenditure and must not be paid on the Card. 51. Centrally purchased items such as assets, IT equipment, Property equipment, stationery and insurance should only be purchased by the responsible Technology, Property and Finance Teams, unless the cardholder has obtain specific approval from the respective teams to purchase item separately on the Card. 52. Cardholders are to provide details of assets purchased on the Card to Finance for proper accounting. See Comcare Asset Management Policy. 53. Where the Card is used for travel related purposes, the cardholder must firstly obtain approval from their manager for the proposed trip. Once this has occurred the cardholder is entitled to use the Card for all business related expenses in relation to that trip, up to the approved travel limits. Travel related expenses purchased on the Card must be for the approved Comcare employee or employee s on official travel, payment for additional people not on approved official travel is considered inappropriate expenditure. For further information on travel refer to the CEO Instruction Travel. 54. Where the Card is used for entertainment or hospitality purposes, the cardholder must obtain prior approval from the appropriate delegate detailed in the Instrument of Delegations Financial Authorisations. For further information refer to CEO Direction Official Hospitality. 55. For purchases made over the internet, the cardholder should take reasonable precautions to ensure purchases are only made from reputable suppliers with secure websites. Where doubts exist about the authenticity of a website, Technology should be consulted or another form of payment should be arranged. CEO DIRECTION CORPORATE CREDIT CARD 6

56. When purchasing with the Card, cardholders must ensure and may be required to substantiate that: > the purchase complies with relevant Comcare and Commonwealth policies and procedures > the purchase is efficient, effective, economical and ethical use of Comcare funds and are publicly defensible > the Card is the most efficient and cost-effective payment mechanism in the circumstances > the purchase is within relevant financial delegation, budget and credit card limits (transactional and monthly) > a purchase has not been split into multiple payments in order to by-pass the credit or spending limits > where appropriate, prior approval has been obtained before the purchase is made; and > cash withdrawal is only made for daily travel allowance, or when the purchase can only be paid by cash. DISPUTED TRANSACTIONS 57. In the event that an unauthorised transaction is debited against a cardholder s account, it is the responsibility of the cardholder to advise the CBA of the transaction in question and follow up the issue of the disputed transaction until resolved. A Disputed Transaction Form must be completed and forwarded to the CBA as soon as an unauthorised transaction is suspected. 58. When a transaction is in dispute, the cardholder needs to select in Finance One Disputed and send a Disputed Transactions Form to CBA. When the CBA re-credits the cardholder s account, the cardholder must match the disputed transaction with the credit. AUDIT AND MONITORING 59. On a monthly basis, Finance will provide a list of cardholders with outstanding credit card reconciliations to General Managers for review and follow up. 60. On an annual basis, Finance will provide a list of current cardholders to General Managers for review. Each General Manager must review the list and ensure that all cardholders in their Group continue to satisfy the eligibility criteria for a credit card. 61. On an ongoing basis, the Finance Team will conduct quality assurance reviews on the use of the Card, reviewing cardholder s compliance and supporting documentation. Findings from the review will be reported to management. 62. The CFO may recommend cancellation of the Card and/or other appropriate disciplinary actions where a serious breach of the Direction has been established. FURTHER INFORMATION 63. Any queries relating to the Direction should be referred to HelpDesk-Finance. Chief Executive Officer Comcare 2015 CEO DIRECTION CORPORATE CREDIT CARD 7

APPENDIX 1: VALID TAX INVOICE VALID TAX INVOICE For all transactions with a value between $82.50 and $1,000 (including GST) the following information needs to appear on the receipt to form a valid tax invoice: > the words Tax Invoice > name of the supplier > the supplier s ABN number > the date of issue > description of the goods/services, including quantity (if applicable) and the price of what is sold > GST inclusive price > the GST amount or words such as Total price includes GST. For transactions with a value over $1,000 (including GST), all of the above requirements apply and the following details must also be included: > the name of the recipient; > address or Australian Business Number (ABN) of recipient. Where a tax invoice is not obtained for transactions of $82.50 (GST inclusive) or more, Comcare cannot claim input tax credits for GST paid. CEO DIRECTION CORPORATE CREDIT CARD 8

APPENDIX 2: NEW CARDHOLDER REQUEST NEW CARDHOLDER REQUEST CARDHOLDER ACKNOWLEDGEMENT AND AGREEMENT Comcare considers the use of a corporate credit card for non-business related purposes as a serious matter. Officers are not to use a corporate credit card to pay for personal expenditure even if there is an intention to reimburse Comcare. Wilful noncompliance with this requirement may lead to disciplinary action and/or criminal investigation. I (full name) understand and agree that I will: (location and branch) 1. only use the credit card for business related purposes and maintain tax invoices/supporting documents of the transaction. 2. ensure that the credit card and PIN are kept securely at all times and documentation to support all purchases is obtained and filed in accordance with the CEO Direction Corporate Credit Card. 3. not permit the use of my credit card by another Comcare employee without my express authorisation. 4. complete the acquittal of credit card account with proper supporting tax invoices and other documentation, in accordance with CEO Direction Corporate Credit Card. 5. immediately advise the Commonwealth Bank of Australia phone 131576, if the card is lost, stolen or suspect an unauthorised transaction and also advise Finance as soon as practicable. 6. use the credit card only for the purpose for which it is issued and understand that action may be instituted in accordance with the CEO Direction for any misuse. 7. I am aware there are a range of penalties available for any credit card fraud or misuse under the Commonwealth Authorities and Companies Act, Public Service Act and Crimes Act and as a cardholder may be liable for any loss resulting to the Commonwealth. I have read and fully understood the CEO Direction on Corporate Credit Cards and will comply with it at all times. Cardholder signature Witness signature 9 CEO DIRECTION CORPORATE CREDIT CARD 1 Please keep a copy of this form for your own records and send the original to Finance. If you require assistance please contact the Finance HelpDesk on x29650 or HelpDesk-Finance@comcare.gov.au. GPO BOX 9905 CANBERRA 2601 1300 366 979 COMCARE.GOV.AU

REQUEST FOR ISSUE OF CORPORATE CREDIT CARD I approve the issue of a Comcare Credit Card to the following employee: Given name Surname Title (Mr, Mrs, Ms, Dr) Name to appear on card Group Cost centre Classification Office location (e.g. Canberra) Business phone number Purpose of Card (for example, taxis, interstate travel, subscriptions, office supplies) Limits: (Tick the relevant box for standard limits monthly limit, transaction limit or nominate other) $20 000, $5000 (Chief Executive Officer) $10 000, $5000 (Senior Executive Officers, Directors) $10 000, $2000 (Executive Assistants, Executive Officers) $5000, $2000 (All other staff) Other (specify) General Manager Name Chief Financial Officer Name Created in FMIS by 10 CEO DIRECTION CORPORATE CREDIT CARD 2

APPENDIX 3: ANNUAL CARDHOLDER DECLARATION ANNUAL CARDHOLDER DECLARATION CEO DIRECTION CORPORATE CREDIT CARD This declaration should be signed annually by each cardholder and placed on their credit card TRIM file at the commencement of the financial year. Comcare considers the use of a corporate credit card for non-business related purposes as a serious matter. Officers found to have contravened this requirement may have the card cancelled and/or disciplinary action taken. Officers are not to use a corporate credit card to pay for personal expenditure even if there is an intention to reimburse Comcare. I (name) acknowledge that I have read the CEO Direction Corporate Credit Card and understand the responsibilities I have as a cardholder which are detailed in the Direction. Signature 11 CEO DIRECTION CORPORATE GPO CREDIT BOX 9905 CANBERRA CARD2601 1300 366 979 COMCARE.GOV.AU

APPENDIX 4: LOST TAX INVOICE/RECEIPT DECLARATION LOST TAX INVOICE/RECEIPT DECLARATION This form is to be completed for each transaction under $82.50, in the event that a tax invoice was not obtained at the time of transaction or has been misplaced. This form may not be used for expenses $82.50 or more. Items $82.50 and over must have a valid Tax Invoice. Comcare cannot claim a GST credit if a valid Tax Invoice is not provided. This form is to be approved by the relevant General Manager or Director and attached to your Corporate Credit Card statement or expense claim. TRANSACTION DETAILS Name of supplier of purchase Amount including GST $ Description of purchase Additional information I declare that the above purchase was for business related purposes and I have made all reasonable attempts to locate the missing receipt. Cardholder name Signature Managers name Signature Notes: A valid Tax Invoice must be obtained for all transactions $82.50 (GST inclusive) or more. Credit card approval slips do not constitute a valid Tax Invoice. Transactions require a receipt or docket displaying the heading tax invoice, the company name, the company ABN number and the GST amount (inclusive/exclusive). There must be a clear description of the goods/ services purchased on this documentation, the description goods is not sufficient. Where a valid Tax Invoice is not obtained for transactions of $82.50 or more Comcare cannot claim input tax credits for GST paid. The total cost of this expenditure will be charged to the relevant cost code. 12 CEO DIRECTION CORPORATE GPO CREDIT BOX 9905 CANBERRA CARD2601 1300 366 979 COMCARE.GOV.AU

APPENDIX 5: DISPUTE TRANSACTION A Disputed Transaction Form is available on ComNet. CEO DIRECTION CORPORATE CREDIT CARD 13

APPENDIX 6: MISUSE OF CORPORATE CREDIT CARD MISUSE OF CREDIT CARD The following information may be used for reporting in Comcare s compliance report, to brief the CEO for Senate Estimates hearings and may be required in any associated credit card audit or investigation. CARDHOLDER DETAILS Name Credit card number Position/level Division/section MISUSE DETAILS Description of purchase/charge Amount reimbursed Amount reimbursed Circumstances in which the card was used for these purchases CARDHOLDER S DECLARATION I confirm that the above information is true and correct and understand that the above misuse(s) is/are in breach of Comcare s policy. Signature Name of Approving Officer (financial delegate) Signature FINANCIAL USE ONLY How misuse was discovered Reported by cardholder Reported by approving officer By internal audit or Finance Misuse Register updated on Action(s) taken No further action Informal warning Formal warning CEO DIRECTION CORPORATE CREDIT CARD 14 GPO BOX 9905 CANBERRA 2601 1300 366 979 COMCARE.GOV.AU Other (please specify)