Credit card use policy process

Objectives

To outline for staff the terms of use for corporate credit cards and PCards.

Definitions

Acquittal: a financial term describing the process in which the purpose of expenditure is verified in accordance with the underlying payment.

Corporate credit card holders:

  • the staff member whose name appears on the corporate credit card and purchases goods and services for RMIT business purposes only, where the only payment method accepted by the vendor is credit card or the vendor is based overseas.
  • the staff member whose name appears on the corporate credit card, who is empowered to purchase items on behalf of their area/department. The card is mainly a virtual card and is used for the business purchases on behalf of the department/school/portfolio.

PCard holders: the staff member whose name appears on the corporate credit card, who is empowered to purchase items on behalf of their area/department.

Exclusions

Staff without corporate credit cards or PCards.

Process steps

1. Principles of use

1.1. The use of corporate credit cards and PCards is restricted to RMIT business only

1.2. The credit card holder is responsible for the security of the card.

1.3. The corporate credit card can be used for purchases up to a maximum limit of $2000 per purchase, excluding Property, Plant and Equipment (see Property, plant and equipment policy and Property, plant and equipment procedure). Travel expenses (i.e. fares and accommodation) may exceed this limit.

1.4. The PCard can be used for purchases with a maximum limit of $5000 per purchase. The maximum credit limit on the PCard is $50,000 per month, or higher if approved by the relevant authority.

1.5. The maximum credit limit on the corporate credit card is $25,000 per month. The authorising officer sets the maximum limit of the credit card. Credit limits and amendments to credit limits must be authorised according to the Delegations Policy and schedules.

2. Transactions

2.1. It is both the card holder’s and the Authorising Officer’s responsibility to ensure the card is used for legitimate RMIT business and within RMIT policies and procedures. If a card holder or Authorising Officer has any doubt as to the correctness of corporate credit card use, they must contact the Finance Officer (Credit Cards) before the transaction is processed.

2.2. The following is a list of transactions where the corporate credit card can be used, together with any special acquittal requirements:

2.2.1. Goods and services: For the purchase of goods and services, either from Australia or overseas, up to a limit of $A2000 per transaction (PCard holders’ limit is extended to $5000). This limit does not relate to travel expenses i.e. fares and accommodation. Splitting a transaction into smaller transactions to avoid exceeding the transaction limit is prohibited.

2.2.2. Asset purchases (PCard holders only): For the purchase of an asset less than $5000 in value where the vendor insists on payment by credit card. In these situations the PCard holder will post the transaction to the general ledger account ‘584500’ and liaise with the Fixed Asset Accountant to create the asset within SAP. The Fixed Asset Accountant will clear the item from the posted general ledger account.

2.2.3. Travel expenses: For all travel-related expenses the travel authority number must be quoted on the supporting documentation. In addition, where the expense relates to overseas travel or travel within Australia that exceeds five consecutive nights, a copy of the travel diary must be attached to the acquitted statement.

2.2.4. Entertainment and hospitality expenses: As well as appropriate supporting documentation, these expenses require a full description of the purpose of the function, names of all attendees and their relationship to RMIT.

2.2.5. Fuel: The purchase of fuel is allowed only for rental vehicles. A Fleet Card is provided for RMIT vehicles and use of the corporate credit card is prohibited. Where private vehicles are used for official RMIT business, the Staff Reimbursement system is the only method to be used for reimbursement. Use of the Corporate Card is prohibited for private vehicles.

2.2.6. Citylink: Citylink expenses may be charged to the corporate credit card for departmental vehicles only. The vehicle registration number must be quoted on supporting documentation.

2.3. Prohibited transactions include:

2.3.1. Cash withdrawals.

2.3.2. Payments to other RMIT entities (these are processed as internal transfer of funds).

2.3.3. Payments to consultants: There are particular approval and reporting requirements for consultants and all payments must be processed through the Purchase Requisition/Purchase Order system.

2.3.4. Gifts to staff members, except where prior approval from the Head of School/ Service Area Director (or equivalent) is obtained. Gifts resulting from People and Culture policies recognising period of service (where staff have 25 years of service, or have retired after 10 years of service) are permitted. Documented approval from People and Culture must be attached to the acquitted statement.

2.3.5. Personal expenses. Where personal expenses form part of the same account as legitimate RMIT expenses (e.g. hotel accounts, telephone accounts), the corporate credit card is only to be used for the RMIT portion of the account.

3. Acquittal

See Credit card acquittal policy process.

3.1. It is the staff member’s responsibility to ensure the card is acquitted within 14 days. The card statement should be acquitted within 14 days of the statement date. Late acquittals may result in the cancellation of the card.

3.2. The authorising officer must ensure all supporting documentation is complete and adequate.

3.3. The Electronic Expense System is used to code and authorise expenditure transactions.

[Next: Supporting documents]