Credit card use procedure
Intent and objectives
1. 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.
2. 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.
Purchases on PCard via Central procurement team.
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, Certain travel expenses (i.e. overseas 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.
Principles used in this procedure
- 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.
- Transactions must be within the limit as per policy. Splitting a transaction into smaller transactions to avoid exceeding the transaction limit is prohibited..
- Incidental travel expenses: For all incidental travel-related expenses the travel authority number must be quoted on the supporting documentation. In addition, where the expense exceeds five consecutive nights, a copy of the travel diary must be attached to the acquitted statement.
- 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.
- 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.
- 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.
Prohibited transactions include:
- cash withdrawals
- payments to other RMIT entities
- there are particular approval and reporting requirements for contractors and consultants and all payments must be processed through the Purchase Requisition / Purchase Order system
- 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
- 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
The following payment methods are permissible:
- by phone
- over the counter
- by fax or mail
- by internet, although the use of the internet for purchasing is not encouraged due to the potential for unauthorised persons to access card-holder information
A tax invoice must be obtained for purchases greater than $82.50 (GST inclusive).
How to make a purchase request from the designated PCard holder
The following procedure is performed by the PCard holder unless otherwise stated:
1. The requestor is to document the Credit Card Purchase Request using the standard Purchase Request Form. All details of the form are to be completed.
1. The requestor is to document the Credit Card Purchase Request using the standard Purchase request form (DOC 110 KB, 1p). All details of the form are to be completed.
2. Complete the internal order and the cost element.
3. Upon approval, purchase the required goods/services.
4. File the Request Form and supporting documentation for month-end credit-card reconciliation and acquittal.
Acquittal (see ‘Credit card acquittal procedure’)
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.
The authorising officer must ensure all supporting documentation is complete and adequate.
The Intranet Credit Management System (ICMS) is used to code and authorise expenditure transactions.[Next: Supporting documents and information ]