SSC Guidance. SSC Purchasing Cards. Financial Management Series. Effective August _1.DOC File ref: PG-2

Transcription

1 SSC Guidance Financial Management Series SSC Purchasing Cards Effective August _1.DOC File ref: PG-2

2 Contents Purpose and background... 3 SSC Purchasing Cards for work-related purposes... 3 Personal liability and discipline... 5 Conditions of use... 5 Documentation of Purchasing Card transactions... 6 Delegations of authority... 7 Monitoring... 8 Further information _1 2

3 Purpose and background Purpose This guidance sets out the requirements for State Services Commission ( SSC ) employees who use an SSC Purchasing Card for work-related goods or services. Background Proper use of an SSC Purchasing Card creates a flexible, secure, and welldocumented method of purchasing work-related goods or services with efficiency and economy. The SSC Purchasing Card simplifies the procurement of certain workrelated goods or services that by their nature are more efficiently and economically paid for at the time of purchase. Use of an SSC Purchasing Card also eliminates the need for using personal funds to procure certain work-related goods or services. SSC Purchasing Cards for work-related purposes Prohibitions on certain uses Generally, use of an SSC Purchasing Card is restricted to purposes that are solely work-related, and an SSC employee must not use an SSC Purchasing Card for his or her personal benefit, directly or indirectly; this includes, but is not limited to, personal use in connection with travel, training courses, hospitality, or any loyalty programmes. The SSC recognises that there will be rare occasions when, connected with work, an SSC Purchasing Card may be used for unforeseen or urgent personal circumstances. In such cases, the cardholder must reimburse the SSC for the personal expenditure as soon as practicable. An SSC employee must not use an SSC Purchasing Card for payment of consultants or contractors. Financial limitations The financial limit for an SSC Purchasing Card will normally be set at either $1,500 or $5,000. Use of an SSC Purchasing Card for purchases totalling more than $5,000 must be approved by the State Services Commissioner, the Deputy State Services Commissioner, a Deputy Commissioner, or the Chief Legal Advisor _1 3

4 Appropriate uses An SSC Purchasing Card may be used for work-related transactions such as: payment for accommodation; payment for work-related publications (including but not limited to overseas and Internet purchases); payment for other work-related purchases over secure websites on the Internet; payment of conference registration fees; payment of airport departure taxes (if not paid as part of air travel); reasonable catering/hospitality (in-house or external), especially for non-ssc persons or delegations who have been invited to address SSC; and internal staff recognition (e.g., cards or flowers) in such situations as bereavement or significant life events, or for exceptional work performance involving extra efforts and extended commitments of time (e.g. a gift voucher or meal of no more than $50 per person in value). Cash advances Use of an SSC Purchasing Card for cash advances is not permitted, except with the prior approval of the State Services Commissioner, the Deputy State Services Commissioner, a Deputy Commissioner, or the Chief Legal Advisor. An application for a cash advance facility must state: the cardholder s name; the period for which the cash advance facility will be required; the reason for the cash advance facility; and the maximum amount of cash that will be required (stated in New Zealand dollars) _1 4

5 Personal liability and discipline Unauthorised use An SSC employee is personally liable to the SSC for any unauthorised use of an SSC Purchasing Card. The cost of any unauthorised purchase, and any consequential loss or expenses incurred by the SSC, will be recovered either from the cardholder s salary (with the cardholder s agreement), or through other appropriate processes. Disciplinary action An SSC employee s misuse of an SSC Purchasing Card may lead to disciplinary action, which may include dismissal. Conditions of use Terms and conditions A holder of an SSC Purchasing Card must comply with all terms and conditions that are brought to his or her attention by the SSC s Purchasing Card administrator. Loss or theft If an SSC Purchasing Card is lost or stolen, the cardholder must report the loss or theft immediately to the credit card company and to the SSC s Purchasing Card administrator _1 5

6 Documentation of Purchasing Card transactions Correct coding of uses The holder of an SSC Purchasing Card is responsible for ensuring that all uses of the SSC Purchasing Card are fully and correctly coded. Statement of use The holder of an SSC Purchasing Card must submit a statement documenting the use of his or her Purchasing Card, as required by the SSC s Purchasing Card administrator. The statement of use will include: invoices or receipts (or if invoices or receipts are not available, other documentary evidence of transactions); completed online coding of the transactions; and an explanation of the work-related need for the transactions. Absence of documentation If supporting documentation for use of an SSC Purchasing Card is not available, the cardholder must provide a written statement to the SSC s Purchasing Card administrator explaining the reason for this unavailability, countersigned by the cardholder s Manager (or by a Deputy Commissioner, as the case may be). Approval of documentation Each statement of use of an SSC Purchasing Card must be approved by. one of the following persons: the State Services Commissioner, the Deputy State Services Commissioner, a Deputy Commissioner, the Chief Legal Advisor, or another person who has the delegated authority to do so _1 6

7 Delegations of authority Letters of delegation Authority to use an SSC Purchasing Card may be set out in a letter of delegation to an SSC employee. The letter of delegation will state the financial limits that apply to the use of the SSC Purchasing Card, and provide for the employee to make a Purchasing Card declaration. Purchasing Card declaration Before receiving or using an SSC Purchasing Card, an SSC employee must sign the following Purchasing Card declaration : 1 I have an approved delegation for financial expenditure. I have read and understood the SSC s Delegations Policy, and agree to be bound by it as a term of my employment. 2 I have read and understood the SSC s Purchasing Card Guidance, and agree to be bound by it as a term of my employment. 3 I will not use my SSC Purchasing Card for other than SSC-authorised work-related purposes. 4 The SSC Purchasing Card will only be used by the named cardholder. I will not authorise another person to use my SSC Purchasing Card. 5 I will only use my SSC Purchasing Card according to the financial authority I have been granted. 6 If I misuse my SSC Purchasing Card, I understand that I may incur disciplinary action, which may include dismissal. With the exception of genuine (and immediately reported) loss or theft of my Purchasing Card, I acknowledge that I am personally liable to the SSC for any unauthorised purchases made on my SSC Purchasing Card or for card misuse. I further acknowledge that the cost of any unauthorised purchase and/or any loss or expense incurred by the SSC as a consequence could be recovered either from my salary (with my agreement) or through legal action. 7 If my SSC Purchasing Card is lost or stolen, I must report it immediately to the Purchasing Card administrator and to my Manager. 8 Prior to leaving my employment with the SSC, I will complete all necessary requirements (as set out in the SSC Purchasing Card Guidance) and return the SSC Purchasing Card to the Purchasing Card administrator _1 7

8 Applications for an SSC Purchasing Card If an employee s delegation letter does not include authority to use an SSC Purchasing Card, he or she may apply to the SSC s Purchasing Card administrator for an SSC Purchasing Card. The application must state the following: that the applicant has the necessary delegated financial authority; that the applicant acknowledges that he or she has read this SSC Purchasing Card Guidance and will comply with it; the dollar limit that will apply; the name that will appear on the SSC Purchasing Card; and the date(s) upon which the SSC Purchasing Card is required. Issuance of SSC Purchasing Card Following the SSC s Purchasing Card administrator s review of a delegation letter or an application for an SSC Purchasing Card, and completion by the applicant of the Purchasing Card declaration, an SSC Purchasing Card will be issued to the applicant. Monitoring Compliance with this guidance Compliance with this SSC Purchasing Card Guidance will be monitored as part of the SSC s Internal Control Monitoring System _1 8

9 Further information Related guidance Code of Accounts Discipline Procedures Delegations Policy Gifts and Benefits Policy Tax Manual (on GST matters) Travel Policy Contacts Questions regarding this SSC Purchasing Card Guidance should be directed to the Chief Financial Officer on ext 6704 or the Purchasing Card administrator on ext _1 9