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Corporate Credit Card Policy

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Section 1 - Purpose

(1) This policy prescribes employee’s and other’s use of Charles Sturt University (the University) corporate credit cards.

Scope

(2) This policy applies to all cardholders, their supervisors and delegated approvers for the two types of corporate credit cards utilised by the University, being:

  1. travel card - for the payment of travel and entertainment expenses; and
  2. purchase card - for the payment of general purchases of small value goods and services.
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Section 2 - Glossary

(3) In this policy:

  1. Band - means the delegation level of a Budget Centre Manager as defined in the Delegations and Authorisations Policy.
  2. Cardholder - means the authorised holder of a University corporate card whose name appears on the credit card.
  3. Corporate card - means a University corporate card used for either purchasing or travel expenses.
  4. Delegated approver - means the employee responsible for monitoring and approving credit card activity against an approved University budget.
  5. Expense management system – means the University system which manages the acquittal and reconciliation of corporate card transactions.
  6. Private transaction - means any transaction, or part thereof, that is not related to the University’s business operations.
  7. Purchase card - refers to the card to be used for purchasing and payment of transactions that are generally low value(< $3,000). Purchase cards are intended to accommodate specific operational needs that normal purchasing procedures do not support.
  8. System administrator - means the Division of Finance staff member responsible for administering the operation of the purchase and travel card programs within the University's expense management system.
  9. Travel Card - refers to the card issued to eligible staff members who require a card to facilitate travel and associated costs while undertaking University business.
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Section 3 - Policy

Part A - Corporate cards

(4) The University operates both purchase card and travel card programs and uses the expense management system to monitor, approve and acquit all credit card transactions.

(5) Credit card use is strictly controlled and employees using or applying for a corporate credit card should ensure that they are aware of, and adhere to, this policy.

(6) Failure to follow or intentionally disregard compliance with this policy may result in cancellation of the card, legal or criminal proceedings and/or disciplinary action in accordance with the University’s disciplinary procedures.

Part B - Eligibility

(7) Employees who have a purchasing role may apply to have a University purchase card and employees who travel on duty at least once per annum may apply to have a University travel card.

(8) Applicants must be an employee of the University.

(9) Purchase cards may also be issued in strictly limited circumstances to individuals (other than employees) directly associated with the University on a case by case basis following an assessment and approval by the Chief Financial Officer (CFO), or a delegate of the CFO.

(10) All applications must be supported by their Supervisor and authorised by their delegated approver (band 6 or above).

(11) Applications can be found on the Division of Finance website.

Part C - Principles

(12) The University is a public statutory body and its funds, irrespective of the source, are public monies. University funds must be spent for their defined purposes and in the best interests of the University.

(13) The University is accountable publicly for the use of its funds and all employees exercising financial authority under delegation are responsible for ensuring that approvals for expenditures comply with University delegations, policies and procedures.

(14) All purchasing transactions must meet the following four principles. An expenditure must be:

  1. necessary to perform a valid business purpose fulfilling the mission of the University. If required, employees must be able to identify and justify the relationship or nexus between the expenditure and the official business of the University;
  2. reasonable and represent “value for money” in that the expenditure amount is not extreme or excessive;
  3. appropriate in that the expenditure is suitable and fitting in the context of the valid business purpose;
  4. allowable according to the terms of any regulation, law, sponsored contract, or University policy and procedures. There is evidence that University procedures have been followed to demonstrate that a prudent decision to incur the expense has been made.

(15) University credit cards may only be issued to an employee by an approved officer authorised in accordance with University delegations (refer to the Delegation Schedule 02 - Finance Delegations — FIN17).

(16) No person may approve the issue, or an increase to the limit, of their own card nor may they authorise the acquittal of their own expenses.

(17) The purchase card is generally limited to $3,000 per transaction and the following apply:

  1. this amount includes the purchase price, delivery fees, visa transaction fees, GST (if applicable), and any other charges;
  2. cardholders may apply in writing to the delegated approver (band 6, Division of Finance) to have a transaction limit increased; and
  3. individual monthly credit limits are established by the delegated approver (band 6, Division of Finance) for each cardholder having regard to the anticipated usage of the card and the likely expenditure to be incurred.

(18) The use of credit cards is intended to complement the procurement procedures for minor purchases. 

(19) Budget Centre Managers are responsible for ensuring they approve expenses in a timely manner throughout the year and that any outstanding acquitted expenses are approved by the end of each financial year.

Part D - Cardholder responsibilities

(20) Cardholders are responsible for:

  1. the safe custody of cards to prevent loss, theft or misuse (e.g. cards must not be left on desks, in unlocked drawers/cabinets or otherwise accessible to any unauthorised persons);
  2. the security of card information;
  3. spending University funds prudently in accordance with budgets available;
  4. acquitting and reconciling their purchase card expenses in a timely manner (at least monthly) in the University’s expense management system; and
  5. providing all relevant travel card receipts to CSU Travel on completion of travel.

(21) Cardholders must return their University credit card when they:

  1. leave their employment or engagement with the University; or
  2. no longer require the use of the credit card as part of their University duties.

(22) The loss or theft of a credit card must be reported immediately to the bank. The loss or theft must also be reported as soon as practicable to the system administrator.

Part E - Liability

(23) Liability for charges incurred with the card rests with the University and not the individual cardholder.

(24) The use of the card by the cardholder will not affect an individual's personal credit rating.

(25) The cardholder will be liable to repay to the University all costs for transactions that are of a private nature. 

Part F - Card usage

(26) The credit card may only be used for transactions for University business and purposes, and not for private purchases. Where there are repeated instances of private transactions, it will be subject to disciplinary action in accordance with the University’s disciplinary procedures.

(27) The credit card may only be used by the employee whose name appears on the card. The cardholder may not allow any other person to use their card for any purpose whatsoever.

(28) All purchases made using the credit card are to be substantiated with appropriate receipts and/or tax invoices.

(29) Cardholders who deliberately misuse their credit card may face legal or criminal proceedings along with cancellation of the card and/or disciplinary action in accordance with the University disciplinary procedures. Misuse includes:

  1. a private transaction such as personal purchases or purchases for the sole benefit of the cardholder;
  2. purchase of fixed assets (> $10,000);
  3. contractor payments;
  4. establishment of recurring direct debits;
  5. payment of fines;
  6. loyalty memberships including airline frequent flyer memberships;
  7. cash advances, automated teller machine (ATM) withdrawals or purchasing bank cheques, foreign exchange (cash or traveller cheques);
  8. assigning the University credit card to another person;
  9. using a University credit card after the cardholder's employment or relationship with the University has been suspended or terminated;
  10. using a University credit card, without authorisation, when the user of the cardholder is not the cardholder named on the card; and
  11. not complying with the processes specified for the expense management system; for example, not reconciling the card transactions within the required timeframe or producing receipts when required or requested to do so.
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Section 4 - Procedures

(30) Nil.

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Section 5 - Guidelines

(31) Nil.