Purpose The purpose of this policy is to: 1. ensure that organisational transactions are carried out as efficiently as possible through the use of credit cards and transaction cards as appropriate. 2. guard against any possible abuse of organisational credit cards. Authorisation <<Position>> [name of organisation]
Procedures 1. Card Issue The Organisational Credit Card may only be issued by a board member, staff member, or volunteer where their functions and duties would be enhanced by the use of an Organisational Credit Card. Cards will thus be issued only to people on the approved Organisational Credit Card List [see Appendix B]. The approved Organisational Credit Card List shall be held by the CEO. Other persons may be added to the list by the board. The board may delegate this power to any or all of: o The Finance Committee o The CEO o The auditor Cards may be issued on a temporary basis and recovered afterwards. Each Organisational Credit Card will be issued to a specific person, who will remain personally accountable for the use of the card. Cardholders will sign the attached declaration (Appendix A). Only the authorised signatory may use the card. No more than one card shall be issued per cardholder. Credit limits as appropriate shall be set for each card by the issuing authority. 2. Cardholder's Responsibilities The Cardholder shall: o In all cases obtain and retain sufficient supporting documentation to validate the expense (e.g. tax invoice) or shall in lieu provide a statutory declaration o Attach these to the monthly statement from the bank o Review the monthly statement for inaccuracies (and report these to the CEO) o Verify that that goods and services listed were received o Sign the monthly statement to verify that transactions have been made for official purposes o Forward the papers to the authorised signatory for approval (the board chair shall authorise payments to the CEO; the CEO shall authorise the expenditure of all other cardholders).
o Notify the bank and the CEO (or in the case of the CEO, the board chair) immediately if o The card is lost or stolen. o Any unauthorised transaction is detected or suspected o Notify the CEO of any change in name or contact details o Take adequate measures to ensure the security of the card. o Return the card to the CEO if o the Cardholder resigns o the CEO determines that there is no longer a need for the cardholder to retain his or her card o the Organisational Credit Card has been cancelled by the bank. o Be personally liable for any unauthorised transaction unless the card is lost, stolen or subject to fraud on some part of a third party. The Cardholder shall not:
3. Credit Card Expenditure The Card will only be used for those activities that are a direct consequence of the cardholders' function within the organisation. Where coincident and/or private expenditure occurs on the same transaction (where, for example, a person incurs a debt for personal telephone calls during a hotel stay) the cardholder must settle the private expense prior to charging the balance on the Organisational Credit Card. Where doubt exists as to whether or not an item is function-related, prior authorisation should be obtained from the CEO (or, in the case of the CEO's own card, the Chairperson of the Board or the Chairperson of the Finance Committee).
The use of the corporate card for "services of a dubious nature" is expressly prohibited. "Services of a dubious nature" are defined as any goods or services that might bring the name of the organisation into disrepute. 4. Credit Card Misconduct Wherever a breach in this policy occurs, the CEO must assess the nature of the breach and if significant report the breach to the police for criminal investigation or if lesser in nature, institute an appropriate disciplinary process: o in the first instance, counselling and or verbal warning (and diary or file note created) o in the second instance, a written warning o in the third instance, or if the dollar amount is greater than $1000 the card is to be immediately withdrawn. At the next Finance Committee meeting the CEO shall report: o the investigation of the circumstances of the breach o police reports and action (if any) o disciplinary action taken (if any) APPENDIX A CARD ISSUE FORM Organisation Name …………………………………………. Cardholder Name …………………………………………. Position …………………………………………. I understand and agree that the Organisational Credit Card is issued to me on the express understanding that I will, at all times, comply with the following conditions. USE
MONTHLY RECONCILIATION
o Ensure that all transactions that appear on the monthly statement are verified by me. o Ensure that sufficient supporting documentation is attached to the monthly statement when it is submitted for approval. o Certify that goods or services paid for using the Card have been actually delivered or provided. o Sign the monthly statement provided by the service provider to indicate that the transactions appearing on the statement have been made only for official purposes. Continued…. CHANGE IN CARDHOLDER DETAILS
UPON RESIGNATION OR TRANSFER
LOST OR STOLEN CARDS
DECLARATION
Cardholder Signature …………………………………………. Signature of Authorised Card Issuer …………………………………………. APPENDIX B ORGANISATIONAL CREDIT CARD LIST AS AT [date] [Insert list of authorised cardholders]
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