Expense and Purchasing Card Procedures


Application


This document applies to all University staff members.

Purpose


The procedures that must be followed for implementing the Expense and Purchasing Card Policy

Procedures


Issue of purchasing and expense card

1.    A Purchasing Card Application Form must be completed and authorised by the director of faculty finance or finance manager and sent through a service request to the Shared Transaction Centre (select topic Ecards or Pcards and then relevant sub-topic)

2.   An Expense Card Application Form must be completed and authorised by the faculty dean and sent through a service request to the Shared Transaction Centre (select topic Ecards or Pcards and then relevant sub-topic)

3.    Completed and authorised application forms must be sent to the Shared Transaction Centre through a service request to the Shared Transaction Centre (select topic Ecards or Pcards and then relevant sub-topic)

4.    The cardholders are required to produce a photo ID and sign the relevant declaration form when they collect their cards

Declaration 

5.    A declaration form for each type of card: Purchasing Card Declaration form and an Expense Card Declaration form must be submitted with each application

Note - The declaration incorporates an acceptance of the delegation and personal responsibility for the use and safekeeping of the card and an undertaking the cardholder will comply with University policies 

Card limits

6.    The standard expenditure limit for Expense Cards is $20,000 per month and for Purchasing Cards is $15,000 per month

7.    These  financial  limits  may  be  extended  in  exceptional  circumstances, however  any  request  for  an  increase  in  the monthly limit must be supported by a brief explanation endorsed by the relevant director of faculty finance or faculty dean and sent for review through a service request to the Shared Transaction Centre (select topic Ecards or Pcards and then relevant sub-topic)

Use of expense card

8.    An expense card may be used to pay for official University-related expenses such as:

  • accommodation (other than accommodation “charged back” through the University’s Travel Management Coordinator (TMC) and excluding personal costs, e.g. mini bar)

  • meals

  • rail, rental cars and bus travel (other than travel “charged back” through the University’s TMC)

  • taxi and shuttle service fares

  • parking

  • petrol/ diesel for vehicles used on University business (but only if no University Fuel Card held)

  • cardholder’s membership subscriptions

  • staff catering expenses

  • official entertainment expenses 

Use of purchase card

9.    A purchasing card may be used to pay for one-off, low value transactions (under $500 NZD) or the following types of transactions: 

  • prepaid accommodation

  • domestic and Trans-Tasman airfares

  • subscriptions

  • training courses, seminars, conference registrations

  • supermarket purchases 

10.    A purchasing card must not be used where: 

  • supermarket purchases
  • the goods or services can be purchased on MarketSite

  • the goods or services can be purchased from an existing vendor on the financial system

  • the transaction is recurring

  • it is for the purchase of hazardous materials

  • it is for the purchase of fixed assets

  • it is for the purchase of construction or renovation work that should go through Property Services

  • it is for the payment of long-term hire or lease agreements

  • it is for the payment of donations

  • it is for the payment of payroll or contract-for-service arrangements 

Supporting documentation

11.    Each cardholder is responsible for obtaining adequate supporting documentation /receipts from the merchant for every expense card or purchase card transaction

12.    Receipts for transactions in NZ over $50 must comply with IRD requirements for tax invoices 

13.    Cardholders, or their designated proxy, will be responsible for ensuring that ‘Expense Reports’ are created and submitted for approval by the 2nd business day of the next month  

14.    The director of faculty finance and finance managers are responsible for ensuring that every cardholder’s expense card or purchasing card ‘Expense Reports’ are processed by the 3rd business day of the next month 

15.    Scanned original invoices or receipts are to be attached to the transaction in the ‘Expense Report’

16.    A credit card docket by itself is not an adequate receipt

17.    Failure on the part of the cardholder to provide appropriate original receipts may result in the disallowing of expenditure resulting in personal reimbursement and for continued default withdrawal of the card

Disputed transactions

18.    If a cardholder disputes a transaction appearing on their statement they must categorise the transaction as a ‘Disputed Transaction’ in the ‘Expense Report’

19.    The cardholder must complete a Card Dispute Notification Form and submit it online to the Shared Transaction Centre

20.    Once approved this will be forwarded to the bank for investigation 

21.    The bank will only investigate and resolve transactions that are disputed within 28 days of the transaction being made

22.    The bank will investigate the transaction and resolve it within 60 days

23.    If a disputed transaction is resolved in the University’s favour, the bank will either: 

  • credit the amount of the transaction on the cardholder’s statement; or

  • credit the amount of the transaction on a Financial Services’ statement; or

  • the amount debited from the University’s bank account for the next month will be reduced accordingly

24.    If the dispute resolution goes against the University, the original debit entry on the cardholder’s statement will stand. However, a journal will need to be made by the cardholder’s faculty or service division to charge the transaction to the correct account

Card fees

25.    The bank will charge a flat fee per card per annum

26.    This will be charged to the individual cardholder’s cost centre

27.    There is a card replacement fee if new cards are required in the event of a loss or theft

28.    No card replacement fee will be charged if the card has been compromised and a new card is re-issued

29.    There are no transaction fees

30.    The cardholder should contact the Shared Transaction Centre via a service request if they have been incorrectly charged a fee

Cancellation of cards

31.    Cards which have been issued to staff members who no longer require them are to be cancelled

32.    When a cardholder leaves the University’s employment, it is the responsibility of the staff member’s line manager to retrieve the physical card from the staff member, together with any outstanding receipts

33.    A service request is to be raised to advise the Shared Transaction Centre of the cancellation who will advise the bank to cancel the card immediately

34.    Upon confirmation from the card administrator, the card can be returned to the Shared Transaction Centre

35.    Receipts for un-reconciled transactions are to be retained by the director of faculty finance or finance manager until the related statements have been reconciled and authorised

Lost or stolen cards

36.    If an expense card or purchasing card is lost or stolen it must be reported to both the bank and to the Shared Transaction Centre as soon as possible

37.    The cards are to be blocked immediately from further use 

Note - For lost or stolen cards:

In New Zealand contact ANZ Card Centre, Wellington                          0800 473 473

If overseas (call collect/reverse charges)   ANZ, Auckland Card Centre   +64 9 522 3010

or VISA International (call collect/reverse charges) Singapore                +65 345 1010

or contact local bank displaying the VISA logo or a VISA office 

Misuse of cards

38.    Misuse of cards may result in disciplinary action possibly including termination of employment in addition to any action by an external enforcement agency

39.    The card may be placed on hold, withdrawn or cancelled

40.    In addition, the University may seek the reimbursement of losses or costs from the person concerned 

41.    Legal proceedings may also be taken against the cardholder for any fraudulent or pre-meditated misuse of this card

Ownership of the card system

42.    The distribution and control of cards will be managed centrally by the Shared Transaction Centre 

43.    Staff in the Shared Transaction Centre  will be the only point of contact with the bank regarding the issue of cards

Responsibility for purchasing

44.    The introduction of an expense card in no way signals a change in the Procurement Policy

45.    Expense cardholders are not responsible for purchasing

Review and card usage

46.    There will be an annual review of all cardholders to coincide with the delegations annual review in which the director of faculty finance and finance managers will be asked to confirm that those to whom cards have been issued are still current and correct

47.    Staff members who have been identified as appropriate holders of an expense card and decline its use may find that their expense claims are declined

Definitions


The following definitions apply to this document:

Cardholder is the staff member to whom the card has been issued

Expense card refers to a credit card issued to a staff member who is required to undertake frequent travel on behalf of the University and/or pay for official entertainment. Also referred to as an ‘eCard’

Purchasing cards refers to a credit card issued to a staff member who are required to undertake purchasing on behalf of their department. Also referred to as a ‘pCard’

Staff member refers to an individual employed by the University on a full or part time basis

Travel Management Co-ordinator (TMC) is the organisation appointed by the University to co-ordinate all University travel

University means the University of Auckland and its subsidiaries

Document management and control


Owner:                     Chief Financial Officer

Content manager:    Financial Services

Approved by:            Vice-Chancellor

Date approved:        30 November 2016

Review date:            30 November 2019