FMPM 421 Corporate Credit Cards

Intent

To set out the requirements for application, issuance, approved use, acquittal, and suspension or cancellation of a University corporate credit card.

Definition

Corporate Credit Card

Procedure

Application

An application for a corporate credit card must be made in writing by completing the University’s Corporate Credit Card Application and Agreement. (refer http://cms.jcu.edu.au/fabs/finops/procure2pay/creditcards/index.htm  FaBS website).

The application will be assessed by the Financial and Business Services (FaBS) Procure-to-Pay team for completeness and to ensure that the approval to hold a corporate credit card is in accordance with FMPM Policy 420 – Corporate Credit Cards.

Unsuccessful applications, with appropriate explanation, will be returned to the applicant.

Issuance

The FaBS Procure-to-Pay team will:

• process the application for a University corporate credit card;

• ensure the following is undertaken and signed off on by the cardholder:

• corporate credit card and Expense Management System (EMS) training; and

• the on-line questionnaire regarding use of the corporate credit card;

• arrange for the collection or distribution of the corporate credit card; and

• update the Corporate Credit Card Register.

A University corporate credit card will only be issued where the applicant has:

• signed the Corporate Credit Card Application and Agreement, thereby agreeing to accept and abide by the conditions upon which the corporate credit card is issued;

• completed the:

• corporate credit card and Expense Management System (EMS) training; and

• on-line questionnaire regarding use of the corporate credit card; and

• provided photo identification at the time of collection of the card.

In summary, the procedure for applying, approving and issuing a corporate credit card is represented below:

Approved Use

The Corporate Credit Card Application and Agreement, sets out the authorised use of (ie. for Travel and/or for Purchase of Goods and Services) and restrictions on use of University corporate credit cards.  The restrictions/exclusions are:

• Personal or Private use.  Where a cardholder inadvertently uses a corporate credit card for personal or private use they must report it immediately to the Spendvision Audit Officer (corporatecreditcard@jcu.edu.au); and

• Cash  withdrawals which should only be used in connection with approved University travel and where the corporate credit card cannot be used; and

• Payment for general purchases greater than $200 is restricted to cardholders with Corporate Credit Card Financial/Purchasing Delegation under the Delegations Policy FMPM APPENDIX A

Where Corporate Credit Card Purchasing Delegation has been granted, additional restrictions/exclusions on use of the corporate credit card include:

• Payment of contract or consultancy services; and

• Payment to non-preferred suppliers where a preferred supplier arrangement is in place, unless approved by the Manager, Procure-to-Pay, Financial and Business Services; and

• Payment for Schedule 8 controlled drugs and Schedule 4 restricted drugs as per the Queensland Health (Drugs and Poisons) Regulation 1996.

Obtaining receipts/tax invoices

The cardholder is responsible for obtaining receipts/tax invoices for all corporate credit card transactions.  Every endeavour must be made to secure receipts/tax invoices.

GST amounts incurred on corporate credit card transactions greater than $82.50 (GST inclusive) can only be reclaimed from the Australian Taxation Office if a tax invoice is obtained.  Where a tax invoice is not obtained, the GST amount will be included in the cost of the transaction and charged to the relevant Organisational Unit Account Number. Refer FMPM Procedure 732 - Goods and Services Tax.

It is mandatory that all supporting documentation (e.g. tax invoice, receipt, expenditure certification) is scanned and attached to the corporate credit card transaction in the Expense Management System (EMS), with original documentation being retained in accordance with FMPM Policy 930 – Document Retention and be produced upon request from Internal or External Auditors or the Director, Financial and Business Services.

Lost or unobtainable receipts/tax invoices

In circumstances where obtaining a receipt/tax invoice is not possible or is lost (not replaceable) the cardholder must provide (for any corporate credit card transaction greater than $50) an Expenditure Certification.  The Expenditure Certification, signed by the cardholder, includes the details of and the reasons for the expenditure and a certification that the expenditure was incurred for official University business purposes only, and does not include any private expenditure.

Acquittal

Corporate credit card transactions and account statements are available online through the University’s Expense Management System (EMS).

All corporate credit card transactions must be acquitted:

• Twenty one (21) days from completion of travel; or

• If the travel related expense is incurred before travel is undertaken, acquittal is to be completed before the start of the travel; or

• Within twenty-one (21) days of purchase.

• in accordance with FMPM Policy 740 and FMPM Procedure 741 – Travel.

• in accordance with FMPM Policy 710 – Purchasing and FMPM Procedure 711 – Procurement Manual.

Disputed Transactions

It is the responsibility of the Cardholder to ensure the legitimacy of all transactions made on their Corporate Credit Card.

Where a transaction charged is in dispute (e.g. not recognised/ charged in error) the Cardholder should, where possible, resolve the transaction with the supplier.  Cardholders with transactions that remain in dispute after five (5) working days should:

• code the “Disputed Transactions” expense type 1179 in the Expense Management System (EMS-Spendvision);

• tick the “disputed transaction” box in the EMS (a Dispute Form will appear in the EMS after the box has been ticked);

• complete the National Australia Bank (NAB) Dispute Form;

• fax the Dispute Form to the NAB; and

• email a copy to corporatecreditcard@jcu.edu.au

The Cardholder has ninety (90) days from the date of the transaction to lodge a Dispute Form.  After this period expires the transaction can longer be disputed through the NAB and consequently, the transaction is coded an Organisational Unit Account Number.

Suspension/Cancellation and Return of Credit Cards

A corporate credit card may be suspended or cancelled by the Head of Organisational Unit or the Director, Financial and Business Services for any of the following reasons:

• the cardholder takes extended leave (e.g. maternity leave, LSL);

• the cardholder ceases continuing, fixed term or adjunct    employment with the University;

• the position currently held by the cardholder no longer requires a corporate credit card;

• minimal utilisation of the corporate credit card is identified;

• failure to acquit transactions;

• misuse of the corporate credit card by the cardholder including unacceptable, inappropriate or fraudulent expenditure;

• continual non-compliance with the conditions contained within the Corporate Credit Card Application and Agreement and/or FMPM Policy and Procedures; and

• over use of the concession for lost or unobtainable receipts/tax invoices by frequently submitting Expenditure Certifications.

Corporate credit cards that have been:

• suspended maybe either retained by the cardholder or returned to the Manager, Procure-to-Pay.

• cancelled must be returned to the Manager, Procure-to-Pay.  The Manager, Procure-to-Pay will promptly notify NAB of any card that has been cancelled.

Replacement or Renewal

Corporate credit cards become due for renewal periodically. The FaBS Procure-to-Pay team is responsible for the collection and distribution of renewed or replacement cards, in accordance with the NAB’s specific procedures.

Loss or Theft

Loss or theft of a corporate credit card must be reported immediately by the corporate credit Cardholder to the:

• National Australia Bank; and

• Financial and Business Services, Procure-to-Pay team. (corporatecreditcard@jcu.edu.au)

Points of Contact

The points of contact for corporate credit card issues are:

• In Australia, the National Business Line, 131 012, or the nearest National Australia Bank branch; or

• Overseas, the National Business Line (Access Code)

+61 131 012.

Specimen Forms

Corporate Credit Card Application and Agreement

Expenditure Certification

Related Legislation

Financial Accountability Act 2009

Financial and Performance Management Standard 2009 (Sec 19)

Financial Management Practice Manual APPENDIX A – Delegations Policy (section 1.4 - FMPM APPENDIX A)

For enquiries in relation to this Finance Procedure please contact corporatecreditcard@jcu.edu.au

Administration

Approval Details

Revision History