3FIP 36: Corporate Credit Card Policy & Guidelines

Transcription

1 3FIP 36: Corporate Credit Card Policy & Guidelines

2 Table of Contents 1. REVISION RECORD PURPOSE OBJECTIVES ALLOCATION OF CORPORATE CREDIT CARDS USE OF CORPORATE CREDIT CARDS ACQUITTAL OF MONTHLY CARDHOLDERS STATEMENTS SECURITY OF CORPORATE CARDS...6 Page 2 of 8

3 1. REVISION RECORD Revision Number Date (Month Year) Details of Revision Revised by Page 3 of 8

4 2. Purpose 2.1 This document sets out the policy covering the allocation and use of Corporate Credit Cards by employees of IDM. The policy also outlines the procedures for acquitting and processing monthly Cardholder Statements. 3. Objectives 3.1 To allow IDM employees access to efficient and alternative means of payments for approved expenses, especially expenses related to business travel (accommodation, hire of vehicles, procurement of air tickets, fuelling of company vehicles during travel, etc) 3.2 To improve managerial reporting related to credit card purchases. 3.3 To improve efficiency and reduce costs where possible. 4. Allocation of Corporate Credit Cards 4.1 Corporate Credit Cards will only be issued to Directors, Accountants and Managers, Drivers that travel regionally and internationally and who are able to demonstrate that issuance of a card will aid in the effective and efficient exercise of the official duties. Factors that will influence the decision to issue credit card include: The nature and extend of purchases of goods and services that may be undertaken(including internet purchases); The frequency and nature of regional and international travel that may be undertaken in the course of official duties; The need to meet the cost of official out of pocket expenses (e.g. approved entertainment cost). 4.2 The Regional Director is responsible for the authorisation of issuance of Corporate Credit cards The limit on the Credit Card shall be set at P/M/E30, Each application for the issue of a Corporate credit card must be in writing and is to include: The applicant s surname and initial (to be shown on the card); Page 4 of 8

5 4.3.3 The applicant s position title; and Justification for issue (that adequately explains the rationale for issue of a card). 4.4 Approved applications are to be taken to the Accountant who will liaise with the bank and the applicant with respect to the establishment of the new credit card account and physical issue of the card. The approved application form is to be placed in the file for Corporate Cards. 5. Use of Corporate Credit Cards 5.1 Corporate credit cards will only be used for business purposes. Personal purchases of any type are not allowed. 5.2 Listed below are examples of the type of official expenditures that can be incurred using a card: Regional travel related expenses not covered in the per diem allowance, including taxi fares, parking expenses, toll gate charges, accommodation, air tickets, car hire (inclusive of fuel for a hired car), fuel of IDM vehicles during travels Costs incurred while travelling regionally or internationally on approved official business; Prepayment of an approved course/ conference fees where paying via credit card will be the proposed mode of payment by the supplier Payment of subscriptions where paying via credit card will be the proposed mode of payment by the supplier Cost of Official Out of pocket expenses(e.g approved entertainment costs) 5.3 Cash advances on credit cards are not allowed. 5.4 Cardholders will be required to sign an agreement indicating they accept these terms. Individuals who do not adhere to this policy and risk revocation of their Corporate Credit Card privileges and /or disciplinary action. 5.5 In making internet purchases the cardholder should exercise caution. A credit card payment should only be made where the provider has encryption on Page 5 of 8

6 their site- this can be established by checking if there is a padlock image at the bottom of the browser when visiting the merchant s site. Encryption ensures that information sent (e.g. credit card number) cannot be intercepted over the internet. 5.6 Cardholders using internet must carefully scrutinize their credit card statements for any suspicious transactions. If any suspicious transaction is noted the bank needs to be notified within fourteen days from date of the statement. If the transaction is found to be invalid the Institute will not be held liable for the payment. 6. Acquittal of Monthly Cardholders Statements 6.1 Cardholder statements itemising transaction activity are issued on monthly basis. Upon receipt of such statements cardholders should reconcile and acquit their monthly statements within 10 days of the statement date. 6.2 Repeated failure to acquit monthly statement in a timely fashion may result in the credit card being cancelled. 6.3 As part of the acquittal process card holder is to: Examine each transaction and attach supporting documents Highlight transactions in disputes and notify the Accountant, who will pursue such charges with the bank; Attach the approved copy of travel advance form or per diem clearance form where expenses related to travel An entertainment form should be attached where a transaction related to entertainment or hospitality Certify the Statement that all charges shown are correct, were incurred for official purposes and are in accordance to the policy; and The cardholder will take the certified statement to the Regional Director /Country Director (for the campus) approval Upon approval the certified statement to will be taken to the Accountant who will ensure that payment is made on amounts due. Page 6 of 8

7 6.3.9 The Accountant shall ensure that payments on amount due are done within 10 days after receiving the certified statement with supporting documents The Cardholder shall be held accountable for any interest owed due to delay in payment of the amounts due Interest owed due to delay in payment shall fully be recovered automatically from the cardholder s monthly salary subsequent to the month on which the amount due should have been paid. 7. Statement of commitment by the cardholders 7.1. Cardholders shall sign a statement of commitment to strictly follow the failing which IDM offices are authorised to deduct from salary any interest accrued as stipulated in paragraph The Accountant shall be held accountable for failure to deduct payment from salary in accordance with paragraph Security of Corporate Cards 8.1 Credit cards are only to be used by person whose name appears on the card; 8.2 The cardholder is responsible and accountable for the safe keeping of the card. Cards are to be kept secure and protected against improper use; 8.3 In the event that the card is lost or stolen, the cardholder must notify the Accountant and report the loss immediately to the bank. 8.4 Any PIN that has been issued with the card must not be disclosed or carried with the card. 8.5 For safe keeping of the credits, these can be locked in the safe at Accounts Office while not in use. 9. Reporting 9.1 The Director of Finance/ Accountant shall report any observed flouting of (e.g delay in submission of monthly acquittal of Cardholder statements, any inappropriate use of the Credit card, and delay in payment of amounts due) to the Regional Director/Country Director. Page 7 of 8

8 9.2 The Country Directors shall on quarterly basis submit a report to the Regional Director on the Corporate Credit Card Usage, highlighting the following: Summary of expenditure for the period and year to date (YTD) Indicate instances where use of Corporate credit card was contrary to Corporate Credit Card (e.g. delay in submission of monthly acquittal Cardholder statements, any inappropriate use of the Credit card, delay in payment of amounts due) Indicate the action taken in relation to any of such matter that maybe raised above. 10. Withdrawal of credit cards 10.1 In all cases where have been flouted without a valid reason, the cardholder shall loose the privilege of owning the IDM credit card, and the credit card shall immediately be cancelled. Page 8 of 8