To view or download this policy as a PDF click Finance and Administration Policies Documents

Purpose

The purpose of this policy is to ensure that effective controls are in place with respect to the use of corporate credit cards by council staff members.

This policy provides guidance on how corporate credit cards issued under the name of Central Desert Regional Council (CDRC) are to be allocated, used and administered to ensure that they assist in efficient delivery of services while minimising the potential for misuse and fraud. Central Desert Regional Council utilises Corporate Credit Card facilities as defined in the Financial Delegations Manual.

Scope

The policy applies to all staff issued with a corporate credit card including the Chief Executive Officer (CEO) and is intended to apply to the use of corporate credit cards, as well as any other similar type of corporate or organisational purchasing card used for purchases on behalf of Council.

Definition and Terms

Nil.

Legislation and Reference

Local Government Act, 2019
Local Government (General) Regulations 2021
Australian Accounting Standards
Code of Conduct
Delegations Register

Policy Statement

Council is committed to sound financial management, public accountability and transparency.

Credit cards are a valuable tool for the efficient and effective operation of Council’s daily business and not a benefit assigned to specific individuals.

Credit cards should only be used in situations where it is not reasonably possible to go through the Council’s normal purchase order procedure for the ordering of and / or payment for goods or services.

Council will apply best practice in relation to the management, authorisation and use of credit cards.

This policy sets out the controls which apply to the allocation and use of corporate credit cards as per the Delegations Register. CDRC offers the use of corporate credit cards to the CEO, Directors, President and any other staff position deemed appropriate by the CEO. The acceptance of a credit card by staff is not compulsory.

Application of Policy

1. Issuing of credit cards
   1. 1.1 Before a corporate credit card is issued, the recipient must agree to the conditions of use by signing the Corporate Credit Card Agreement Form.
   2. 1.2 Corporate Credit Cards are issued in accordance with the Delegations Register. The CEO will approve the issue of corporate credit cards to staff.
   3. 1.3 Once approval is given, the finance department will organise issue of the corporate credit card.
2. Credit card and Transaction Limits
   1. 2.1 Credit card limits are defined in the Delegations Register. Each card issued will have a single transaction maximum limit and a monthly maximum limit. There is no cash advance functionality.
3. Use of credit cards
   1. 3.1 The corporate credit card is not to be linked to any form of award points. The CEO or Council may limit the purposes for which the credit card may be used.
   2. 3.2 Corporate credit cards are to be used for legitimate work purposes only, and are not for personal use at any time. The cardholder is not to gain any personal benefits from being the holder of the card.
   3. 3.3 All transactions made with corporate credit cards must be within the approved annual budget for the respective requesting officer’s area of responsibility.
   4. 3.4 Any expenditure using the corporate credit card must comply with legislative requirements, Council’s procurement policy, delegations and procedures.
   5. 3.5 Transactions related to official travel and accommodation must be approved through the normal procurement procedures.
   6. 3.6 Incidental travel‐related expenses normally covered by Travel Allowance are not to be paid for with corporate credit cards.
   7. 3.7 Transactions with corporate credit cards by telephone are not encouraged, unless a receipt can be emailed or faxed through immediately.
   8. 3.8 Liability for purchases made on corporate credit cards lies with the corporate cardholder, and not CDRC.
   9. 3.9 Cardholders are responsible for the safe custody and security of the Card and are liable for any misuse and associated costs.
   10. 3.10 Given due notice, if a corporate cardholder does not provide proof of purchase documentation for a certain transaction, and /or the purchase was for illegitimate or personal purposes, the cardholder will be liable to reimburse the amount incurred and will be subject to disciplinary proceedings.
4. Loss or theft of Corporate Credit Card
   1. 4.1 Upon suspicion that a corporate credit card is misplaced, stolen or lost notification must be given to the finance department so that the card is cancelled immediately and no exceptions will be made.
5. Pin numbers confidentiality
   1. 5.1 The Cardholder should keep the PIN number strictly confidential to minimise opportunities for fraud.
   2. 5.2 Cardholders are not to disclose their credit card details (including “PIN”) to other corporate members.
6. Credit card transaction reconciliations
   1. 6.1 Cardholders are responsible for managing their corporate credit cards, by reconciling their credit card statements monthly and attaching supporting documentation and receipts for submission to the finance department.
   2. 6.2 Upon genuine loss of receipt, the cardholder may complete a statutory declaration to state an undocumented transaction was for legitimate work purposes, and to provide reasons for loss of receipt.
   3. 6.3 Excessive use of statutory declarations by staff members in this regard, defined as more than one per three months, will be brought to the attention of the CEO (the President if it is the CEO’s card) and investigated and may result in disciplinary proceedings and/or removal of the use of the corporate credit card facility.
   4. 6.4 Credit card reconciliations must not be approved without appropriate supporting documentation or an appropriate statutory declaration.
   5. 6.5 Repeated failure to provide supporting documentation will be brought to the attention of CEO, who will consider whether it is appropriate for the person to continue being a cardholder and whether further disciplinary action should be taken.
   6. 6.6 The Cardholder is to notify the finance department as soon as possible if there is a disputed credit card transaction.
   7. 6.7 Finance department will provide corporate credit card holders training on credit card management.
   8. 6.8 Corporate credit card transactions are reported to Council monthly in the finance report.
7. Cancellation and replacement of corporate credit card
   1. 7.1 Each issued corporate credit card remains the sole property of CDRC. The CEO will control or revoke the use of one or more corporate credit cards at any time. Cancellation of a credit card is necessary where the:
      • Cardholder changes job function that has not got appropriate delegation
      • Employment of cardholder with CDRC ceases
      • Cardholder has not adhered to set procedures and policies
      • Misuse of credit card
      • Cardholder breaches any other terms of this policy.
   2. 7.2 The finance department is to ensure that all returned credit cards are cancelled and destroyed.
   3. 7.3 If a corporate credit card is lost or stolen, the cardholder must immediately contact the issuing institution to report the loss and cancel the card. The matter must be reported to the CEO. If the CEO is the cardholder, the President must be notified.
   4. 7.4 In the above circumstances, the finance department will ensure that the credit card has been cancelled and arrange a replacement card (if appropriate).

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