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Credit Card procedure

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Section 1 - Preamble

(1) This Procedure was approved by the Vice-Chancellor on 15 October 2015 and incorporates all amendments to 11 April 2017.

(2) This Procedure is pursuant to the Credit Card policy and includes the following schedule:

  1. Schedule A: Credit Card Agreement.
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Section 2 - Purpose

(3) This Procedure sets out the steps for the acceptable use of University credit cards by staff.

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Section 3 - Scope

(4) This Procedure applies to all University credit card expenditure, including grant-related expenditure throughout the University.

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Section 4 - Policy

(5) Refer to the Credit Card policy.

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Section 5 - Procedure

University credit card use

(6) Purchases using University credit cards are subject to the rules that apply to all University purchases and must therefore comply with the Procurement policy and Procurement procedure and where the purchase relates to travel services, also comply with the Travel policy and Travel procedure.

(7) Purchases under $5,000 should be made using University credit cards where possible.

(8) In the case of entertainment expenses, the most senior staff member present, who has a delegation for the budget for which the entertainment is approved, must pay the bill using their University credit card.

(9) Cardholders must ensure that their corporate credit card is maintained in a secure manner to prevent loss, theft or misuse and that they do not store their full credit card number and expiry date anywhere.

Acquittals

Overarching requirements that apply for all transactions requiring sufficient supporting documentation

(10) It is the responsibility of the University credit cardholder to provide supporting documentation (refer clause 17 g) that evidences each transaction made on their University credit card as a valid business-related expense when the supporting documentation is in a language other than English).

(11) Supporting documentation must have the minimum details as follows:

  1. name and address of the supplier
  2. description of goods/services supplied
  3. date of transaction
  4. amount paid
  5. method of payment and
  6. amount of applicable taxes paid.

(12) Supporting documentation must be scanned in an acceptable format (TIFF, PDF, PDA, JPEG or JPEG2000) and attached to the expense management system for each transaction as part of the University's credit card acquittal process.

(13) Supporting documentation must be compliant with Goods and Services Tax (GST) requirements (for Australian-based supply) and contain relevant information to assess whether there are Fringe Benefits Tax (FBT) implications for the transaction.

(The Corporate Finance website contains detailed information about GST and FBT)

(14) For Australian transactions, if a valid tax invoice is not provided by the supplier Deakin may not be able to claim the GST credit for the purchase. If this occurs, the full cost of the transaction including the GST component will be charged to the relevant organisational area. For transactions with a value equal to or less than $75 (excluding GST) no tax invoice is required to be issued, however the GST can be claimed so long as it is consistent with the requirements of clause 19. If a tax invoice is provided the claim for the GST (if applicable) must be as detailed in the tax invoice.

(15) In exceptional circumstances where a tax invoice/invoice/receipt cannot be obtained, a duly executed statutory declaration can be used instead provided that it includes details that verify that the transaction is related to a business expense. A statutory declaration will not entitle the University to claim GST on a transaction, and in these cases the full amount of the transaction will be charged to the relevant budget centre. A GST claim can only be made where it is consistent with the requirement of clauses 14 and 19.

(16) Supporting documentation attached to a transaction must relate to the particular transaction being verified for acquittal purposes. In circumstances where the one attachment contains the supporting documents to cover several transactions, the claimant must clearly identify which page(s) relate to the transaction being verified for acquittal purposes.

Transactions with a value greater than $75 (excluding GST)

(17) Transactions with a value greater than $75 must have sufficient supporting documentation for acquittal purposes. Documentation requirements are explained below:

  1. EFTPOS dockets, order confirmations, booking confirmations or emails in isolation will not be accepted for acquittal purposes
  2. A tax invoice/invoice from the supplier, embedded in an email from the supplier is acceptable for acquittal purposes.
  3. Internet purchases
    1. A tax invoice from a supplier operating as a business within Australia or from the supplier's nominated service provider must be attached for acquittal purposes.
    2. The cardholder must obtain a transaction receipt confirmation or a payment confirmation, that verifies the date of the purchase/payment, the vendor's details, the item/service purchased and the amount charged to the corporate credit card where the supplier does not provide an invoice but does provide an order/booking confirmation,. These must be attached for acquittal purposes.
  4. International transactions
    1. Where the supplier does not provide an invoice and only a receipt is available, in addition to the receipt, the cardholder must provide sufficient supporting information within the expense management system to verify that the transaction is related to a business expense.
    2. Where the supplier does not provide an invoice and where there is no receipt available, a duly executed statutory declaration containing sufficient information such as to verify the transaction is related to a business expense must be attached.
    3. Where the only available supporting documentation (tax invoice/invoice/receipt) is in a foreign language, a brief description/explanation written in English verifying the transaction as a business related expense needs to be given on the supporting documentation, or attached separately. A literal translation of the supporting documentation is not required.
    4. There is no GST on international transactions and so no GST can be claimed.

Transactions with a value equal to or less than $75 (excluding GST)

(18) The minimum supporting documentation required for any transactions with a value equal to or less than $75 (excluding GST) is a receipt.

(19) For GST to be claimed on any transactions with a value equal or less than $75 (excluding GST), the University credit cardholder and approver must ensure that the description in the expense management system adequately explains the transaction and that GST is included in the transaction as not all transactions are subject to GST. This explanation must be sufficient to assess whether there are FBT implications for the transaction.

(20) Alternatively to a receipt for the minimum supporting documentation (see clause 18) a tax invoice may be attached by the cardholder and included in the expense management system and the transaction can be acquitted in the same manner as for a transaction with a value greater than $75 (excluding GST) or an invoice may be attached as above but GST can only be claimed on an invoice where it is consistent with the requirements of clause 19.

Retention of documentation

(21) The University credit cardholder is required to retain the electronic copy and the hard copy of any documents/receipts attached to the acquittal until the transaction has been approved in the expense management system. After approval the University credit cardholder may discard any original hard or soft copy documentation.

Private and non-University use of University credit card

(22) Where private or non-University business expenses are charged to a University credit card in error, the staff member must immediately:

  1. notify their manager immediately on becoming aware of the error
  2. personally reimburse the expenses to the University
  3. list the expense as a private expense when completing the acquittal and attach the receipt received from the cashier showing the payment has been made from the staff member's personal credit or debit card.
Failure to take corrective action as required under this clause can result in the University taking measures to recover monies owed as allowed under the Credit Card policy and this procedure.

(23) Any repayment of foreign currency used for private or non-University expenses must be made in Australian currency using the currency conversion rate that was used for the actual expense as listed on the corporate credit card statement.

(24) Any fees or penalties that are incurred in relation to any private or non-University expense listed on the University credit card statement must be repaid by the cardholder, in addition to the expense repayment.

Cash advance facility

(25) The cash advance facility on University credit cards is disabled on all University credit cards. In exceptional circumstances the cash advance facility will be enabled by the expense management system Administrator, Corporate Finance, but only where this has been approved by the relevant Faculty General Manager, Faculty Finance Manager or Portfolio Finance Manager. This approval must be attached in the expense management system by the cardholder for acquittal purposes.

(26) Approval needs to be obtained for enabling the cash advance facility for each and every instance that a cash advance is required. A cardholder cannot use the one approval and apply this to every instance.

(27) Cardholders must comply with the supporting documentation requirements and the acquittal requirements set out in this Procedure in relation to transactions from funds obtained via a cash advance facility.

(28) Any unspent cash must be converted back to Australian dollars at a bank. These excess funds must then be paid back to the account code from which they were drawn by accessing the University's E-Store and using the web payment facility for credit cards (using the cardholder's own credit or debit card). University cardholders must not bank these funds at the ANZ Bank back against your University credit card.

(29) An approved cash advance can only be used for expenses in relation to the purpose for which it was approved. Staff requiring reimbursement of expenses not relating to this purpose must make a separate cash reimbursement claim via the expense management system — ie staff are not permitted to reimburse themselves by withdrawing cash from an approved cash advance facility.

Internet purchases using a University credit card

(30) In making Internet purchases a University credit card payment must only be made where the provider has encryption on their site. This can be established by checking if there is a padlock image at the bottom of the browser or in the address bar when visiting the merchant's site.

Return of monies owed to the University

(31) Monies that are owed to the University through the use of the University credit card and in breach of the Credit Card policy and this procedure must be paid back to the University within 14 days of the receipt of a Letter of Demand or unless otherwise advised by Corporate Finance.

(32) It is a condition of use that staff who do not comply with clause 31, thereby authorise the University to recover the amount owed or any part of the amount owed via deduction from salary payments or from any payment of leave entitlements upon termination of employment, or any other method of recovery deemed necessary by the University.

Administration

(33) Approvals must be completed in the expense management system by the last day of the month. Approvers must verify that expenditure is in line with the requirements of the Credit Card policy and Procedure and other policies and procedures relevant to the transaction, such as for example Procurement and Travel and ensure appropriate tax invoices/receipts are electronically attached as required under the Credit Card policy. A report identifying cardholders who repeatedly fail to meet this deadline will be prepared quarterly for the Chief Financial Officer and sanctions may be imposed in line with the Credit Card policy.

(34) Cardholders are responsible for promptly acquitting all transactions processed on their University credit card. Acquittals must be completed in the expense management system by the 20th day of the following month. If acquittals are not completed in the expense management system by the 20th day of the following month the University credit card limit will be reduced to $1 until the acquittal is completed. The University credit card will then be withdrawn and cancelled if:

  1. after another two months the acquittal has still not been completed; or
  2. the acquittal is not completed as required three times within a six month period.

(35) Acquittals must include sufficient detail to allow the approver to understand the nature of the expense and why it was incurred. This includes a legible copy of supporting documentation, correct ledger coding information and appropriate narrative descriptions.

(36) If the audit requirements of the Funding Agreement or the Grant Agreement require the acquittal to contain full supporting documentation, clauses 18 to 20 do not apply.

Applications for University credit cards following withdrawal or cancellation

(37) If a staff member has had a University credit card withdrawn or cancelled in the past they may only be issued with a new University credit card with the approval of both a person with a delegation level of GE4 or higher (refer Financial Delegations policy) and the Chief Financial Officer.

Return of University credit cards

(38) When ceasing employment, the University credit cardholder must acquit any outstanding University credit card transactions and return the card to the expense management system Administrator, Corporate Finance before the last day of employment.

(39) The University credit cardholder must promptly return the University credit card to the expense management system Administrator, Corporate Finance when directed to do so, or when it is no longer required due to a change of circumstances, a change of position, or it has been withdrawn or cancelled.

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Section 6 - Definitions

(40) For the purpose of this Procedure:

  1. Dynamic currency conversion (DCC): when credit cardholders are travelling overseas and are undertaking a transaction in foreign currency (for example at an automated teller machine or at a supplier etc), they are sometimes provided with an option to have the transaction converted to Australian dollars at the source and charged to the University credit card in Australian dollars rather than in the foreign currency. If you choose the option to have the transaction converted to Australian dollars at the source this causes Deakin to incur additional charges.
  2. Expense management system: the system in which cash reimbursements, cash advances on University credit cards and all other transactions on University credit cards are acquitted — currently referred to as the Travel and Expense Management System (TEMS).