Purchasing Card Policy
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| Approved by | University Council, April 1995 |
| Date Took Effect | |
| Last Approved Revision | |
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Purpose
This policy covers the use of the University's corporate Purchasing Cards and outlines the internal control mechanisms and rules of use. Purchasing Cards are an efficient method of paying accounts and are not an alternative source of funding. Use of Purchasing Cards must comply with the internal controls outlined in the University's Financial Policies dated 1 January 1995, and subsequent updates, with particular emphasis on the policy entitled "Financial Delegation".
Policy Content
Issue of Cards:
Purchasing Cards can be issued to staff members under the following circumstances:
- Permanent issue - issued to allow employees to pay for goods and services incurred on behalf of the University where alternative methods of payment are not convenient. The issue of these cards must be with the written approval of the Head of the Division concerned and be countersigned by the Director Financial Services.
- Temporary issue - provided for a specified purpose and period to cover expenses incurred on behalf of the University. The card will be cancelled at the end of the specified period. The issue of these cards must be with the written approval of the Head of the Division concerned and be countersigned by the Director, Financial Services.
- A copy of this policy will be provided to all card holders on or before the issue of their Purchasing Card. In addition card holders will be required to sign a form agreeing that the card will not be used for personal or unauthorised expenditure and that, should such expenditure occur, it will be reimbursed to the University on demand.
Use of Cards:
- Cards may only be used to pay for goods and services and for drawing cash where the expenditure is incurred on behalf of the University.
- Drawing cash within New Zealand is not permitted unless the cardholder is away from their "home campus" at the time cash is required.
- Purchasing Cards must not be used for personal expenditure.
- All expenditure must be supported by original invoices, including tax invoices where required by the Goods and Services Tax Act, except where the Purchasing Card voucher is the tax invoice and no other documentation was issued by the supplier. Cash withdrawals must be supported with details and receipts (or tax invoices for amounts in excess of $50) showing how the cash was spent. Where invoices are not supplied by the card holder the Accounts Department of Financial Services will request these and will advise the Director, Financial Services if adequate evidence of expenditure is not provided within the required timeframe. Card holders who neglect to provide adequate evidence of expenditure may have their cards cancelled on the authorisation of the Director, Financial Services.
- Where the invoice supplied does not clearly indicate that the expenditure is business-related, the purpose of the expenditure should be noted on the invoice by the card holder.
- Where a Purchasing Card is used for the purpose of entertaining, a brief note is required on the invoice or attached to the invoice outlining the purpose of the entertaining, the names of the card holder's guests and their relationship with the University. This is required so the University can determine if there is any liability for Fringe Benefit Taxation.
Credit Limit:
A credit limit will be set to reflect the needs of the card holder. However this should not exceed $10,000 without specific approval from the Director, Financial Services.
Review of Continued Use:
- A monthly review of the Purchasing Cards on issue, both permanent and temporary, will be done by the Accounts Department of Financial Services and those which have little or no usage in the preceding six month period may be cancelled. The results of the review together with recommendations will be presented to the Director, Financial Services for action.
- Card holders who leave the employment of the University will have their cards cancelled and must account for all outstanding expenditure incurred prior to their leaving date.