UTS Corporate Credit Card – Vice Chancellor's Directives

1. Vice-Chancellor's Directives statement

The University of Technology, Sydney permits the issue of a corporate credit card to approved staff as a mechanism for the procurement of a range of goods and services required by staff in the course of conducting University business. The University is responsible for settlement of liabilities incurred through the use of the card for legitimate business purposes.

2. Vice-Chancellor's Directives intent

The purpose of these Vice-Chancellor's Directives is to establish a framework to manage the issue and use of UTS corporate credit cards, the acquittal of the associated expenses and the circumstances in which the card will be suspended and cancelled.

3. Vice-Chancellor's Directives objectives

3.1 Establish the conditions governing the issue of a credit card.

3.2 Establish the legitimate purposes for which the corporate credit card may be used.

3.3 Establish responsibilities for the use, management and administration of the card.

3.4 Establish the conditions associated with the suspension and cancellation of the card.

4. Vice-Chancellor's Directives scope

These Vice-Chancellor's Directives cover the use and management of all UTS corporate credit cards issued to UTS staff regardless of the card provider or the purpose for which the card is issued. This includes those credit cards known as 'purchase cards'.

5. Definitions

5.1 'Asset' refers to a physical item the purchase price of which is over $5,000 and which will be used by the university for more than one year.

5.2 'Cardholder' refers to the UTS staff member to which the card has been issued.

5.3 'Card Limit' refers to the maximum amount that may be expended on the card in any one month.

5.4 'Credit Card Administrator' refers to the staff member in the Financial Services Unit appointed to undertake the administrative work associated with the corporate credit card.

5.4 'Credit Card Agreement' refers to the agreement between the University, the cardholder and the cardholder's manager regarding the use and management of the card.

5.5 'Credit Card Procedures' refer to the detailed instructions issued to guide staff in the application of these Vice-Chancellor's Directives, and include the specific instructions regarding Oracle i-expenses.

5.6 'Manager' refers to the cardholder's direct supervisor, or any person temporarily appointed to supervise the cardholder.

5.7 'UTS corporate credit card' refers to a credit card issued through the University to a staff member for the purposes of procuring goods and services in the course of University business.

6. Vice-Chancellor's Directives provisions

6.1 Recommending the issue of a credit card

• The University executive and Deans and Directors may recommend to the Chief Financial Officer that a UTS corporate credit card be issued to a staff member having a legitimate business requirement for the card.
• A legitimate business requirement includes, but is not necessarily limited to:
  • Frequent travel in the course of duty
  • Frequent necessity for undertaking business entertainment
  • The regular purchase of minor goods and services for use by the University, such as office or technical supplies
  • Purchase of library materials, subscriptions and periodicals
• The CFO may from time to time approve the issue of a credit card for a specific purpose.
• Only one corporate credit card may be issued to any staff member. Exceptions will require the approval of the CFO.
• All staff will be subject to regular review to ensure their continued eligibility. Cards issued to staff who are no longer eligible will be withdrawn.

6.2 Acceptance of recommendation

• The Chief Financial Officer will accept the recommendation and issue the credit card provided;
• The Dean or Director has in place effective systems for ensuring timely and accurate acquittal of credit cards.
• The application for credit card has been correctly completed.
• The recommended card limit is within the guidelines issued by the Chief Financial Officer.
• The applicant and the applicant's manager have signed the Credit Card Agreement.
• There is no indication that the applicant should not be issued with a credit card.

6.3 Use of the credit card

• Staff issued with a corporate credit card are in a position of trust regarding the use of University funds. All transactions on the card must legitimately further the interests of the University.
• The corporate credit card must not be used for any purpose that is of a personal or private nature.
• The UTS corporate credit card is in general intended for use while on business travel, business entertainment and for the purchase of minor or urgent supplies.
• Purchases using the credit card must be within the relevant approved budget.
• The use of the credit card should be in compliance with procedures and guidelines outlined in other relevant UTS policies, in particular the UTS Procurement Vice-Chancellor's Directives.
• The cash advance option will generally not be available on the UTS corporate credit card. The Chief Financial Officer may approve the use of cash advances where there is a clear business requirement.
• Prudence and economy should be exercised in the use of the card.
• Assets should not be purchased using the corporate credit card.
• Improper use of the corporate credit card may render the cardholder liable to disciplinary action, legal action or criminal prosecution.
• Purchases using the corporate credit card are not confidential and are open to scrutiny by the University executive, the cardholder's manager, the staff of the Financial Services Unit and Internal and External Audit.

6.4 Card limits

• A monthly expenditure limit is to be determined after consultation with the Dean or Director who recommends the issue of the card.
• This limit should be commensurate with the cardholder's business requirement for using the card and have regard to the cardholder's experience and seniority.
• The expenditure limit must be within the guidelines issued by the CFO.

6.5 Cardholder responsibilities

• Cardholders must sign the Credit Card Agreement before the card is issued.
• Cardholders are responsible for ensuring the card is used only for approved business expenses.
• Cardholders must submit credit card acquittals and all relevant documentation, including original tax invoices, to their manager for approval within 14 days of the end of the month of purchase unless an extension has been granted by the CFO.
• Cardholders are responsible for ensuring that invoices for goods and services purchased using the corporate credit card are not presented separately to Financial Services Unit for payment.
• Cardholders are responsible for ensuring they do not claim cash reimbursements though oracle i-expenses or any other means for goods and services purchased using the corporate credit card.
• Cardholders are responsible for ensuring they have sufficient knowledge of the Oracle i-expenses module to correctly acquit their credit card transactions.
• Lost or stolen cards must be reported immediately in accordance with the instructions issued with the card.
• Where a cardholder takes an extended period of leave or takes PEP, the card must be surrendered to the cardholders' manager, who will pass it to FSU for cancellation. Exceptions may be approved by the CFO, after consultation with the relevant member of the Executive.
• On or before the last day of employment at UTS, cardholders will surrender the card to their manager and ensure all transactions are accounted for and documentation is complete.

6.6 Manager's responsibilities

• The cardholder's manager must sign the Credit Card Agreement before the card is issued.
• The cardholder's manager is responsible for ensuring the cardholder acquits all card transactions each month in accordance with the University's procedures.
• The cardholder's manager must ensure all transactions are validly incurred for legitimate business purposes.
• The manager is required to verify and approve all transactions each month in accordance with University procedures. This includes ensuring the cardholder has supplied all supporting documentation, such as tax invoices and entertainment forms. After approval, documentation must be forwarded to FSU in the designated envelope.
• Any inappropriate or unjustified transactions must be followed up by the manager with the cardholder immediately. Suspected breaches of Vice-Chancellor's Directives must be referred to the relevant Dean, director or VCMG member, who will report the matter to the Director, Financial Services or the Chief Financial Officer. Breaches of Vice-Chancellor's Directives which constitute misconduct must be reported to the Vice-Chancellor.
• Where a cardholder ceases to be employed by UTS, takes PEP or takes a period of extended leave, the manager is responsible for withdrawing the card and notifying the Credit Card Administrator in Financial Services Unit promptly.

6.7 Financial Services Unit responsibilities

• Financial Services Unit will be responsible for the administration of the corporate credit card.
• Financial Services Unit will communicate to all cardholders regarding changes or amendments to these Vice-Chancellor's Directives and the University credit card procedures.
• Financial Services Unit will ensure applications for the card are in accordance with University Vice-Chancellor's Directives before forwarding the application to the issuing bank.
• The Credit Card Administrator will ensure both the cardholder and the manager have signed the credit card agreement before the card is issued to the cardholder.
• The Credit Card Administrator will process correctly completed expense acquittals in a prompt and timely manner.
• Financial Services Unit will maintain records of card acquittals including all essential documentation.
• Financial Services Unit will cancel or suspend credit cards promptly in accordance with University Vice-Chancellor's Directives.
• Where a cardholder is in breach of these Vice-Chancellor's Directives, the Director, Financial Services will make recommendations to the Chief Financial Officer regarding the withdrawal of the card.

6.8 Goods and Services Tax (GST)

• The University is liable to pay GST and is also eligible in many instances to claim a GST input-tax credit.
• It is UTS policy to ensure that in all applicable cases sufficient records are kept to enable tax credits to be claimed.
• The Australian Tax Office (ATO) requires that all credits claimed in respect of amounts over $50 must be supported by an original tax invoice showing the ABN, the total invoice amount and the GST component.
• Tax invoices must be attached to expense acquittals and forwarded to Financial Services Unit where they will be retained for examination by the ATO in the event of an audit.

6.9 Cancellation of the credit card

• The credit card will be cancelled by the Credit Card Co-ordinator if the cardholder ceases employment with UTS or the card holder takes a period of long leave, such as long service leave, maternity leave or extended leave without pay.
• The credit card will be cancelled when the card holder is on PEP. Staff members on PEP are required to seek either a cash advance (where allowed by Vice-Chancellor's Directives) or manual reimbursements for approved expenses. Exceptions may be approved by the CFO, after consultation with the relevant member of the Executive.
• The credit card may also be cancelled at the direction of the Chief Financial Officer. The following circumstances will cause the Chief Financial Officer to consider the cancellation of the card:
  • The card is not correctly acquitted on a regular and timely basis.
  • Expenses are not correctly approved on a regular and timely basis.
  • Correct and complete documentation is not forwarded to the Credit Card Administrator on a regular and timely basis.
  • The card is used other than in accordance with these Vice-Chancellor's Directives.

7. Enforcement of the Vice-Chancellor's Directives

The Chief Financial Officer has overall accountability for Financial Management and is therefore responsible for enforcing the UTS Corporate Credit Card Vice-Chancellor's Directives.

8. Breaches of the Vice-Chancellor's Directives

The Chief Financial Officer is responsible for authorising corrective action to rectify all breaches of the UTS Corporate Credit Card Vice-Chancellor's Directives, except where a breach constitutes misconduct, which must be reported to the Vice-Chancellor.

8.1 Reporting breaches

All suspected breaches of these Vice-Chancellor's Directives should be reported to the relevant Dean, Director or VCMG member, who will then report the matter to the Finance Director or the Chief Financial Officer. In the case of misconduct, the breach will be referred to the Vice-Chancellor.

The Chief Financial Officer will ensure that any fraudulent activity associated with the UTS Corporate Credit Card is reported to the Director, Internal Audit.

8.2 Penalties for breaches

Improper use of the corporate credit card may render the cardholder liable to disciplinary action, legal action or criminal prosecution.

9. Supporting implementation procedures and guidelines

These Vice-Chancellor's Directives are supported by the Corporate Credit Card Procedures.

See attached Credit Card Agreement (80K PDF).

Other related Rules, policies, procedures and guidelines

UTS Delegations of Authority

UTS Procurement Governance Policy (232K PDF)

UTS Travel Guidelines

Approval and revisions tables

Approval

Revision/modification history

Amended Directives published: May 2006