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Purchasing Card - Policy and Procedures - Procedure 000495

Rationale and Objective(s)

This policy specifies the use of, eligibility, responsibilities and restrictions on the University’s purchasing card.

Definitions and Acronyms

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Provisions

1.0 Introduction

  1. 1.1 The University provides a Visa purchasing card facility to supplement its traditional methods of procuring goods and services. Visa should be used to facilitate the payment of low value, high volume goods and services with those vendors who accept payment by credit card.
  2. 1.2 University issued credit cards are to be used only for official University expenditure, for procuring goods and services which are deemed necessary and appropriate.
  3. 1.3 University staff committing or incurring expenditure are accountable for such expenditure and have a responsibility for the exercise of economy and for ensuring that correct accounting, procurement and taxation practices are applied.
  4. 1.4 Cardholders are required to familiarise themselves with the Purchasing Card Procedural Guide and which form part of the conditions of use of this policy. The procedural guide provides general instructions regarding the University’s credit card program, how to action certain types of expenses, assist with account code assignment, and GST requirements.
  5. 1.5  The University reserves the right to commence action outlined under the heading Disciplinary Action Section 7 as a result of any Misconduct (Section 6) of the Purchasing Card Policy.

2.0 Eligibility

Conditions of application eligibility are outlined as follows:

  1. 2.1 Applicants must be a recognised employee (or affiliate) of the University of Newcastle
  2. 2.2  Applications require the recommendation of the applicant’s immediate supervisor, approval of the relevant PVC and/or Divisional Head.
  3. 2.3  Applications must nominate an appropriate Purchasing Card Supervisor who will be required to perform monthly transaction reviews.

3.0 Cardholder Responsibilities

The following cardholder responsibilities form part of the conditions of use of the Purchasing Card Policy. Refer Section 6 for potential penalties should a cardholder fail to exercise any part of these conditions as specified.

The purchasing card holder agrees to:

  1. 3.1  Ensure their card is at all times used only for official University expenditure whilst on official University business.
  2. 3.2  Account for transactions incurred in their capacity as a card holder against their own account and not subordinate transactions to another card holder or account in any way.
  3. 3.3 Ensure all expenditures incurred are directly related to the requirements of their position/office within the University and are in accordance with their financial delegation.
  4. 3.4 Maintain an up to date knowledge of the purchasing card policy and procedures at all times.
  5. 3.5 Ensure security of their Visa purchasing card at all times and immediately report the loss or theft of the card to the University’s Purchasing Card Administrator.
  6. 3.6 Return Visa purchasing card to the University’s Purchasing Card Administrator upon cessation of employment with the University or during significant periods ofabsence (exceeding 6 months).
  7. 3.7 Advise the Purchasing Card Administrator of changes to their employment orposition status.
  8. 3.8 Ensure transactions do not exceed their transaction purchasing limit and not, under any circumstances, attempt to split purchases into smaller amounts to avoid the transaction purchasing limit.
  9. 3.9 Ensure transactions are processed within nominated processing timeframes as provided in the Procedural Guide or as otherwise advised by the Purchasing Card Administrator.
  10. 3.10 Ensure investigation of any transaction discrepancies is actioned within 2 weeks of the transaction statement date.
  11. 3.11  Ensure provision of monthly transaction report and supporting  documentation to their nominated supervisor for review on a monthly basis, including in cases where no usage has occurred.
  12. 3.12 Ensure monthly statement records and supporting documentation are retained for all transactions for a minimum period of 5 years and are made available, on request, for internal and/or external audit review.
  13. 3.13 Cardholder will complete the Expense Management System training, prior to card issue.
  14. 3.14  Will ensure transactions do not exceed the cardholder’s Transaction Purchase Limit.
  15. 3.15 Source pre-approval from the relevant Pro Vice-Chancellor or  Deputy Vice-Chancellor through the University’s Expense Management System before proceeding with purchases in the following categories:
    • International travel (refer to the University’s Travel policy  for details of  domestic travel pre-approval).
    • Use of Private Motor Vehicle
    • Entertainment > $500
    • Cash Advances (acquittable)
  16. 3.16  Source pre-approval from the relevant Director, Financial Services before proceeding with Restricted purchases (refer section 5 of this Policy)

 4.0 Supervisor Responsibilities

The following supervisor responsibilities form part of the conditions of  use of the Purchasing Card Policy. These responsibilities cannot be delegated. Refer Section 6 for potential penalties should a supervisor fail to exercise any part of these conditions as specified.

The nominated purchasing card supervisor agrees to:

  1. 4.1 Monitor and determine the appropriateness of all expenditures incurred by purchasing card holders under their supervision.
  2. 4.2 Ensure appropriate pre-approvals have been obtained with regard to those items listed at Section 3.13 of this Policy.
  3. 4.3 Ensure correct accounting, taxation and procurement policies/requirements have been satisfied.
  4. 4.4 Ensure completeness and timeliness of monthly statement documentation and review.

5.0 Restricted Purchases

  1. 5.1 Personal purchases (all purchases must be for the official University use only).
  2. 5.2  Purchasing goods and/or services from external suppliers where existing contracts are already in place (eg COS for stationery & office supplies).
  3. 5.3 Computer equipment (exception: miscellaneous peripherals and supplies –  where similar items not available through office supplies contract)
  4. 5.4  Automatic periodic debit authorities.
  5. 5.5 Advertisements – (should be referred to Marketing and Media or Human Resources in relation to recruitment).
  6. 5.6  Building alterations and /or refurbishment (with the exception of Facilities Management).
  7. 5.7  Employee or student benefits (tuition, gifts, flowers, alcohol, etc) unless otherwise authorised by an appropriately delegated staff member.
  8. 5.8  Subscriptions and memberships for staff and students which are considered personal  (Exception: where membership is a legal requirement to carry out the duties of the staff members position)
  9. 5.9  Fines, late fees or penalties for staff and students.
  10. 5.10  Student costs other than official excursions.
  11. 5.11  Acquisition or installation of telephones, mobile phones and other communications devices (refer Procurement section).
  12. 5.12 Gratuities/Tips (exception: within the U.S.A or other countries where this is customary)
  13. 5.13  E-Toll Tags (Exception Vehicle Procurement Officer)
  14. 5.14  Assets (all assets to be purchased via the Financial Management Information System)

6.0 Misconduct/Serious Misconduct

The University will deal with the contravention of policy, abusive, improper and/or fraudulent purchasing card related transactions or practices according to the provisions of the Enterprise Bargaining Agreement relating to misconduct/serious misconduct and related disciplinary clauses.

As a guide only, the following practices contravene policy.

Abusive Practices. Authorised goods and services purchased at terms that are disproportionate to their worth to the University or generally considered excessive with reference to comparable prices for like goods and services. Examples may include but are not limited to:

  • purchasing and/or approving items such as a $500 carry bag for a laptopcomputer
  • paying and/or approving $500 per hour for a consultancy fee
  • allowing transactions to auto approve which results in the University’s beingliable for the GST

Improper Purchases. Transactions that are intended for University use but are not allowed by University policy, government regulation or other law. Examples may include but are not limited to:

  • purchasing or approving gifts for staff members or visiting professionals outside of University policy
  • splitting purchases to circumvent card limits or single purchase limits
  • unauthorised purchasing or approving expenditure from non-contracted suppliers where a University contract exists

Fraudulent Transactions. The use of University Purchasing cards to acquire goods and services for personal use or personal gain represents a fraud against the University. Examples may include but are not limited to:

  • purchasing or approving items of expenditure for family and friends
  • using another staff member’s Purchasing card without permission
  • involvement in any arrangement where a supplier deliberately submits transactions for goods or services that are not provided.
  • Use of purchasing cards to incur expenditure for which staff members are also entitled to or have received an allowance or reimbursement.
  • supervisor ignoring or being involved in Purchasing card misuse by cardholders.
  • supervisor having a subordinate make a purchase to avoid the approval process
  • expenditure incurred or approved by staff whilst not undertaking University activities (L.S.L, LWOP, Annual Leave, Sick Leave, etc.)

7.0 Disciplinary Action

Disciplinary provisions apply to both cardholders and supervisors. The disciplinaryaction taken for individual cases will depend on the severity of the transgression, the staff member’s intent and any special circumstances.

Disciplinary actions can include but are not limited to:

  • formal censure; and/or
  • counselling; and/or
  • further training and development; and/or
  • loss of increment(s); and/or
  • demotion; or
  • termination

In addition to the above disciplinary action, the University may take the following administrative actions:

  • card cancellation
  • cost recovery
  • criminal action (including reference of matters to appropriate externalagencies)

Scope

This policy refers to all staff of the University with delegated authority to commit and incur expenditure.

Essential Supporting Documents

 

Approval Authority: Vice-Chancellor
Date Approved: Monday, 1st August 2005 Date For Review: Thursday, 31st July 2008
Policy Contact Position: Director Financial Services
Amendment History: