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Category Finance
Type Policy
Approved by Vice-Chancellor,  March 2013
Date Policy Took Effect 1 January 2013
Last Approved Revision 30 April 2014
Sponsor Chief Financial Officer
Responsible Officer Financial Controller
Review Date 30 April 2019

Purpose

The purpose of this policy is to define the rules and procedures governing the use of Purchase Cards.

The purpose of the Purchase Card is to provide an effective means of paying for everyday purchases and to reduce the reliance on petty cash floats, staff reimbursements, cash advances and the number of small payment transactions processed through the Accounts Payable office.

Organisational Scope

This policy applies to the University and its subsidiaries.

Definitions

Purchase Card – a bank issued credit card.

Policy Content

1. Purchase Cards will only be issued to employees of the University and its subsidiaries who are permanent or are employed on a fixed term contract of at least six months.

2. Overall responsibility for authorising the issue of a Purchase Card resides with the Chief Financial Officer.

3. Purchase Cards must only be used to pay for goods and services where the expenditure is business related and is incurred on behalf of the University.

4. Purchase Cards may include a cash advance facility.

5. Where the Purchase Card is unavoidably used for personal purchases the value of those purchases must be repaid to the University in full at the earliest opportunity, and no later than the date of the affected month’s Purchase Card statement.

6. Expenditure must be reasonable, appropriate and in accordance with the University’s policies and procedures related to expenditure.

7. Expenditure must be supported by appropriate and relevant documentation.

8. The use of Purchase Cards must always be in accordance with the requirements of the issuing bank.

9. Expenditure on the Purchase Card must not exceed the monthly credit limit.

10. The Purchase Card is a means of payment only and the use of the Purchase Card does not reduce the requirement for appropriate purchase decision making and compliance with authorisation processes for entering into a commitment on behalf of the University, including ensuring that a budget has been approved for at least the value of the purchase.

11. Purchase Cards that have not been used for a period of six months will be cancelled.

12. Purchase Cards may be issued for a specified period of time or for a specific purpose and once that time has elapsed or the purpose has been completed the Purchase card will be cancelled.

13. Any breach of purchasing policies or procedures may result in the cancellation of the Purchase Card and possible disciplinary action.

Related Policies, Procedures and Forms

Contact for Further Information

For further information, contact the Financial Controller, extn 9247 or email financial.controller@otago.ac.nz