Credit card holder roles and responsibilities procedure

Procedure

Intent and objectives

To outline the roles and responsibilities of staff using corporate credit cards or PCards for the purchase of goods and services

Scope

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.

Exclusions

Purchases on PCard via Central procurement team.

Procedure steps and actions

The card holder

The card holder is the staff member whose name appears on the corporate credit card. It is the card holder’s responsibility to adhere to the following:

  • ensuring use of the credit card is within university policy
  • signing the credit card immediately upon receipt
  • keeping the credit card in a secure place
  • keeping card holder and account details up to date
  • retaining all original tax invoices, sales vouchers and receipts and attaching these to the monthly statement
  • reconciling statements, signing the Acknowledgement on the printed statement and submitting for authorisation during the monthly reconciliation period
  • notifying CBA Card Services if the card is lost or stolen on ph. 13 1576 (outside Australia ph. 13 2221 or 1800 230166), then notifying the Finance Officer (Credit Cards) on Ext. 50607

The card must be returned immediately if:

  • requested by the cost centre manager
  • requested by the Finance Officer (Credit Cards)
  • the card holder leaves the university
  • the card is no longer required

If card holder or account details change, the card holder must complete a Cardholder Maintenance Form, have it signed by the authorising officer, and forward it to the Finance Officer (Credit Cards).

The card holder must advise the Finance Officer (Credit Cards) immediately of any unauthorised use of the credit card.

Converting from a credit card holder to a PCard holder

  • The Head of School or the Service Area Manager determines which staff will be PCard holders.
  • The Limit Increase Application Form is completed and sent to the responsible Portfolio Finance Manager for endorsement.
  • The endorsed form is submitted to the Executive Director Financial Services for approval.
  • Approval is granted and given to the Finance Officer (Credit Cards) to implement the change.

Lost/stolen cards

If a corporate credit card is either lost or stolen, the card holder must immediately notify the Commonwealth Bank Card Services Centre:

13 1576 (24 Hours service).

If you are overseas, you must call:

1800 627 8372 (within USA) OR 1 636 722 711 (outside USA).

When the CBA is advised of a lost or stolen card, a report number is allocated, which will be proof of the date and time of the report. The card holder must record this number. The CBA will place a stop on the card account, and arrange for a replacement account to be established and a card to be forwarded.

Also advise the Finance Officer (Credit Cards) Financial Services on 03 9925 0607.

Replacing a damaged card

Follow the steps below to arrange for a replacement card if the original is damaged or unable to be used:

1. Complete the cardholder maintenance form (PDF 30.13 KB, 1p), selecting the appropriate action item.

2. Ensure the Authorising Officer has signed the form to certify the correct procedure has been followed.

3. Forward the form to the Finance Officer (Credit Cards).

Cancelling cards

To cancel the credit card, follow the steps below:

1. Review and code all transactions that appear in the iCMS, and provide the delegate, if one has been appointed, with the details of any other transactions that have not yet appeared in the system.

2. Where transactions have not yet appeared in iCMS, the appropriate coding must be documented on the appropriate receipts and handed to the delegate.

3. If you have any purchases that are automatically debited to the credit card on a periodic basis (e.g. subscriptions or memberships), the card holder is responsible for cancelling these accounts.

4. Complete a cardholder maintenance form (PDF 30.13 KB, 1p) and tick the appropriate action item. If the card holder is leaving RMIT, a delegate must be appointed on the same form by selecting the appropriate action item.

5. Destroy the credit card by cutting the card in two, and forward with the form to the Finance Officer (Credit Cards).

6. Ensure the Authorising Officer has signed the Cardholder Maintenance Form to certify the correct procedure for cancelling the card has been followed.

Disputed transactions

Where a transaction appears on the corporate card statement that the cardholder has no record of or believes that the expense has been charged twice, the following steps are to be followed:

1. Contact the merchant for clarification and if necessary rectification of the charge. If dispute is still not resolved, proceed to complete transaction as appears below.

2. Complete the CBA customer investigation request for disputed business card transactions form.

3. Print out a copy of the statement details from iCMS and highlight the transaction.

4. Fax the completed form and the highlighted statement to the CBA on 1300 729 512.

Authorising officer

The Authorising Officer is the staff member assigned to manage the issuance of credit cards, authorise changes and ensure staff compliance with the credit card policy and its associated procedures.

The responsibilities of the Authorising Officer include:

  • approving the issuance of cards to staff under their supervision and determining appropriate monthly credit limits. The maximum monthly credit limit allowable is $25,000 ($50,000 for a PCard)
  • ensuring that applications for new cards or the re-instatement of existing cards are appropriately authorised:
    • Where the credit limit is greater than $10,000, authorisation is required by the Vice-Chancellor or the Executive Director Financial Services
    • Where the credit limit is under $10,000, applications as above must be authorised by the relevant Pro Vice-Chancellor (PVC), the Executive Director of Financial Services or the Vice-Chancellor
  • ensuring that changes required to the card facility are appropriately authorised:
    • Any changes to credit limits, where the new credit limit is greater than $10,000, must be authorised by either the Vice-Chancellor or the Executive Director Financial Services
    • Any changes to credit limits, where the new credit limit is under $10,000, must be authorised by the Vice-Chancellor or the Executive Director, Financial Services or the relevant PVC
  • reviewing and authorising statements no later than 14 calendar days after the statement date
  • ensuring the correct and complete entries are in the iCMS by checking that:
    • expenditure is relevant to card-holder usage
    • amounts are appropriate
    • internal order and G/L expense codes have been correctly allocated
    • full and adequate descriptions of expenditure have been provided
    • appropriate supporting documentation has been attached
  • following up staff who fail to submit statements within the monthly acquittal period
  • regularly reviewing the card holder’s usage and the appropriateness of their credit limits, and ensuring corrective action is taken if necessary
  • rejecting any personal or non–business related expenditure and ensuring the card holder immediately pays for the unauthorised transaction
  • providing guidance and support to the card holder to ensure they have ability and skills required to acquit transactions accurately and in a timely manner in accordance with the Credit Card Policy and its associated procedures.

Finance officer (credit cards)

The Finance Officer is the staff member who is responsible for the coordination, administration and management of the corporate credit card. The Finance Officer has the following responsibilities:

  • coordinate, administer and manage the credit card, including the iCMS
  • in conjunction with the card holder’s Authorising Officer, ensure compliance with all relevant policies and procedures in relation to credit card use
  • undertake a two-way compliance review (i.e. from the iCMS to the supporting documents and from the supporting documents to the iCMS/general ledger) of a sample of transactions on a monthly basis
  • report any identified exceptions to the card holder’s Authorising Officer, the head of school/service area manager (if different) and the Executive Director Financial Services
  • report to the Executive Director Financial Services, the card holder’s Authorising Officer and the Head of School/Service Area Manager (if different) any unauthorised use and major or habitual breaches of these procedures (i.e. individual transactions exceeding the amount stipulated within this policy)
  • maintain audit files for work completed from cyclical transaction reviews

Appointing a coder, delegate or deputy

The iCMS provides a feature that allows a staff member other than the card holder to access card data for that card holder. There are different types of access available, depending on the relationship required:

  • Delegate: has the ability to view, code and submit a statement on the card holder’s behalf. This access should be given when the card holder will be absent during a statement coding period
  • Deputy: has the ability to act on behalf of the Authorising Officer to view and authorise statements submitted by card holders within the cost centre. This access should be given when the Authorising Officer is absent for a period of time

To set up a delegate (code or code and submit) or deputy, complete the following steps:

1. Complete the cardholder maintenance form (PDF 30.13 KB, 1p) and select the appropriate action item. Choose the type of relationship to set up.

2. Include both card holder details and the other proposed delegate’s details, the date the relationship should become effective, and the date it should cease to be effective (if applicable).

3. Ask the Authorising Officer to authorise the form.

4. Forward the form to the Finance Officer (credit cards).

[Next: Supporting documents and information ]