Purchasing Card Policy & Procedures Revised October 2015

Purchasing Card Policy and Procedures

Contact: Assistant Financial Accountant

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TABLE OF CONTENTS

1. INTRODUCTION............................................................................................................................... 3

1.1 THE PURCHASING CARD ................................................................................................................... 3 1.2 THE CARDHOLDER ............................................................................................................................ 3 1.3 AUTHORISING OFFICER ..................................................................................................................... 3 1.4 PURCHASING CARD ADMINISTRATOR ............................................................................................... 4

2. ABOUT THE PURCHASING CARD ............................................................................................... 4

2.1 ELIGIBILITY ...................................................................................................................................... 4 2.2 CARDHOLDERS’ EXPENDITURE DELEGATION ................................................................................... 4 2.3 APPLYING FOR A PURCHASING CARD ................................................................................................ 5 2.4 CARD SECURITY ............................................................................................................................... 5 2.5 CONDITIONS OF CARD USE ............................................................................................................... 5

3. PURCHASING CARD TRANSACTIONS ....................................................................................... 6

3.1 ALLOWABLE EXPENDITURE .............................................................................................................. 6 3.2 NON ALLOWABLE EXPENDITURE ...................................................................................................... 6 3.3 PURCHASING GOODS/SERVICES ........................................................................................................ 7 3.4 PURCHASING GOODS/SERVICES OVER THE INTERNET ....................................................................... 7 3.5 TAX INVOICES, RECEIPTS AND SUPPORTING DOCUMENTATION ........................................................ 7 3.6 FREQUENT FLYER SCHEMES, REWARDS POINTS AND FLY BUYS ...................................................... 7

4. MONTH END PROCESSING ........................................................................................................... 7

4.1 PURCHASING CARD ACQUITTAL ....................................................................................................... 7 4.2 CARDHOLDERS’ RESPONSIBILITY ..................................................................................................... 8 4.3 DISPUTED TRANSACTIONS ................................................................................................................ 8 4.4 SETTLEMENT WITH WESTPAC ........................................................................................................... 8

5. ADMINISTERING THE PURCHASING CARD ........................................................................... 8

5.1 AUTOMATIC REPLACEMENT OF EXPIRING CARDS ............................................................................. 8 5.2 LOST OR STOLEN CARDS ................................................................................................................... 9 5.3 CHANGING PURCHASING CARD DETAILS .......................................................................................... 9 5.4 REPORTING ....................................................................................................................................... 9 5.5 REVIEW OF USAGE ............................................................................................................................ 9 5.6 WHEN TAKING EXTENDED LEAVE OF ABSENCE ............................................................................... 9 5.7 WHEN LEAVING LEGAL AID NSW OR OTHERWISE RETURNING A PURCHASING CARD ................... 10

APPENDIX A ............................................................................................................................................. 11

GLOSSARY OF TERMS .......................................................................................................................... 12

CONDITIONS OF USE ............................................................................................................................. 14

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1. INTRODUCTION

Legal Aid NSW uses Purchasing Cards (Purchasing credit cards) for the purchase of goods and services by approved officers. The following Treasury Policies and Guidelines apply to these procedures:

Credit Card Use – Best Practice Guide TPP 05-01 August 2005.

Treasurer’s Directions 205.01 – 205.08 Payment of Expenses by Credit Card.

Cardholders should also refer to the Expense8 quick reference guide on the intranet. Purchasing cardholders are required to use the Expense8 system to acquit their purchases within 3 days. It is important that these policies and procedures are read, understood and adhered to by cardholders; failure to comply may result in cancellation of the card and other disciplinary action.

1.1 The Purchasing Card

The Purchasing Card is a Westpac Visa Card issued to authorised officers who meet approved travel and other expenses requirements, and who procure goods and services from suppliers on behalf of Legal Aid NSW.

Purchasing Cards are issued subject to certain Cardholder Responsibilities. Cardholders must agree to these conditions by signing the “Conditions of Use” document on p.13 prior to issue of the card.

1.2 The Cardholder

Purchases goods or services using their Purchasing Card in accordance with their financial delegation under s12.

Codes and certifies transactions in the Expense8 system.

Submits the certified transactions via the Expense8 Purchasing Card Management System for approval to their Authorising Officer - including receipts/tax invoices for each transaction.

Executive cardholders have the option of appointing a delegate for the purposes of uploading their receipts or tax invoices and coding the transactions in Expense8. To nominate a delegate the executive cardholder will need to send an email to the purchasing card administrator pcard@legalaid.nsw.gov.au advising the delegate and the period that the nomination will remain in place.

1.3 Authorising Officer

An officer who reviews/authorises transactions of Purchasing Cardholders must be satisfied that purchases/acquisitions are approved by a delegated officer (the Cardholder). The purchases must be certified as to their correctness in and be in accordance with clauses 3.1 Allowable Expenditure; 3.2 Non Allowable Expenditure; 3.3 Purchasing Goods/Services and 3.4 Purchasing Goods/Services over the internet.

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When satisfied that the purchase is in accordance with the Cardholders financial delegation, the Authorising Officer formally authorises the payment. This is in accordance with Section 13 of the Public Finance and Audit Act 1983 and the Treasurer’s Directions. The Authorising Officer is the Manager or Director of the cardholder. Where the cardholder is the CEO, the authorising officer is the Deputy CEO.

1.4 Purchasing Card Administrator

The role of Purchasing Card Administrator is undertaken by either the Assistant Financial Accountant, or other officers delegated by the Executive Director Finance. The Purchasing Card Administrator is responsible for:

1. Processing of cardholder applications/amendments. 2. Maintaining Purchasing cardholder register. 3. Arranging financial expenditure delegation for cardholders. 4. Training of cardholders in procedures. 5. Maintaining the Expense8 Purchasing Card Management System. 6. Ensuring cardholders and authorising officers complete their monthly

obligations of coding, certifying and authorising. 7. Monitoring card usage to ensure compliance with Legal Aid NSW policies,

procedures and spend categories. 8. Reconciliation of the Purchasing Card Suspense Account. 9. Contact liaison with Westpac on any card issues.

All inquiries should be referred to the Assistant Financial Accountant.

2. ABOUT THE PURCHASING CARD 2.1 Eligibility

A Purchasing Card may be issued to a Legal Aid NSW employee who is authorised to incur expenditure in their official duties or purchase goods and services on behalf of Legal Aid NSW. Personal expenditure is strictly not permitted and may result in disciplinary action. The card is issued to an individual employee and is not transferable. Contractors and Finance staff are not permitted to hold a Purchasing Card.

2.2 Cardholders’ Expenditure Delegation

Cardholders hold a financial delegation under Section 12 of the Public Finance & Audit Act to incur expenditure within set limits (the card limit) on behalf of Legal Aid NSW for the Purchasing of goods and services. They are responsible for the exercise of due economy. The cardholder approves the transaction at the time of making the purchase and certifies the transaction is correct in the Expense8 Purchasing Card Management System.

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Certification is where the cardholder confirms that an approved payment is correct in accordance with Section 12 of the Public Finance and Audit Act 1983 and that the goods or services have been received.

2.3 Applying for a Purchasing Card The following steps outline the process of applying for a Purchasing Card:

1. Submit a request to your manager outlining reasons why a Purchasing Card is required.

2. Obtain a recommendation for issue of the card from your Manager or Director.

3. Finance to review the request and approve issue of the card. 4. In the event that the request is denied, Finance will provide an explanation

via email to the applicant, and cc their Manager/Director. 5. Approved applicants complete a Purchasing Card Application Form. 6. Applicant to read and sign the Conditions of Use statement. 7. Submit completed application and signed Conditions of Use forms to the

Purchasing Card Administrator. Applications can be sent by email to pcard@legalaid.nsw.gov.au. The original forms can be sent in the internal mail to the Finance section, attention: Assistant Financial Account

The Purchasing Card Administrator will arrange for the Purchasing Card to be issued by Westpac.

2.4 Card Security

Cardholders are responsible for safe-keeping and proper use of their card. Cards should be secured in the same way as personal credit cards in order to prevent fraudulent use by unauthorised persons. Cardholders should: Sign the back of the card immediately it is received - this action is essential. Keep it in a safe and secure place at all times, away from personal cards to

avoid accidental misuse. Do not allow another person to use the card to make purchases on your

behalf. 2.5 Conditions of Card Use

Any employee-related fraudulent activity or other failure to comply with the Cardholder Responsibilities will result in cancellation of the card and will render the cardholder liable to disciplinary action.

Cards issued for overseas travel are of a temporary nature for the duration of the trip. Action will be taken by the Purchasing Card Administrator to cancel the card on completion of travel.

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3. PURCHASING CARD TRANSACTIONS

3.1 Allowable Expenditure

Purchasing Cards are restricted to use for the following expenses:

Conduct Money and GIPA applications up to $100 Advertising/promotion Cleaning and waste removal Conferences Courier and freight IT Software Support (IT use only) Internet Purchases (see 3.4 below) Postage and DX Repairs and Maintenance Subscriptions, books and periodicals Travel, accommodation, taxi fares, car hire and parking Urgent minor stores/office stationery (when not able to acquire from Staples) Official out-of-pocket expenses (including entertainment costs) covered by

Premier’s Department guidelines Legal Expenses (in specific restricted instances - see 3.2 below)

3.2 Purchasing Cards and Legal Expenses

Purchasing cards may be used for legal expenses, strictly as follows:

Minor expenses up to $100, including Conduct Money and GIPA applications Critically urgent legal expenditure over $100 – only where the expense

could not possibly have been foreseen, no other payment option is available, there is already a grant of aid in ATLAS, and the ATLAS file ID is recorded on the documentation attached to Expense8

NB This item is heavily restricted because there is no way to interface between Expense8 and ATLAS, so any legal expenditure paid for via purchasing card cannot be recorded against the client file in ATLAS.

3.3 Non Allowable Expenditure

Purchases of the following nature CANNOT be made with the card:

Personal expenses (non-business related). Cash advances. Motor vehicle expenses (petrol, oil, repairs) where StateFleet is available. Motor vehicle infringement notices. Expenditure above budget allocations.

Purchasing Cards CANNOT be used where:

The cost of the transaction exceeds the Cardholder’s credit limit/delegation. The supplier is not a Visa Card merchant. The supplier does not have an ABN (Australian Business Number). The supplier has an arrangement for other preferred payment method with

Legal Aid NSW.

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3.4 Purchasing Goods/Services

When completing an over-the-counter transaction the cardholder must:

1. Ensure the supplier has an ABN. 2. Obtain a valid Tax Invoice/Receipt. 3. Retain a copy of the Tax Invoice together with any other supporting

documentation - for upload into Expense8.

When paying a Tax Invoice over the phone the cardholder must:

1. Ensure the supplier has provided a valid Tax Invoice. 2. Quote the Invoice Number to the supplier. 3. Record the receipt/payment number, date and time of payment on the tax

invoice - for upload into Expense8.

Prepayments must NOT be made for the purchasing of goods and services except for conference bookings, books and subscriptions.

3.5 Purchasing Goods/Services over the Internet

Cardholders are only permitted to use their cards for purchases over the internet where the item is only available for purchasing over the internet and there is no alternative supplier. Please refer to APPENDIX A for internet purchasing guide.

3.6 Tax Invoices, Receipts and Supporting Documentation

Cardholders are responsible for obtaining original Tax Invoices in support of Purchasing Card transactions. All Tax Invoices, receipts and supporting documentation must be retained and uploaded into the Expense8 Purchasing Card Management System. If the transaction is for a legal expense, there must be an approved grant of aid in ATLAS, and an ATLAS file ID must be included with the documentation. Supporting documentation should be retained by the card holder for a period of 1 month after the expenditure has been approved in Expense8, except when the transaction was for legal expenditure above $100. In this case, the supporting documentation must be filed on the case file.

3.7 Frequent Flyer Schemes, Rewards Points and Fly Buys

Cardholders CANNOT seek or accept any frequent flyer rewards points or other benefits or inducements offered by suppliers, either personally or on behalf of Legal Aid NSW. Cardholders CANNOT determine their choice of supplier based on the availability of frequent flyer or rewards points offered by a supplier.

4. MONTH END PROCESSING

4.1 Purchasing Card Acquittal It is the responsibility of the cardholder to ensure that all transactions have been submitted for approval in Expense8 prior to month end.

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Cardholders are required to submit claims in Expense8 within 3 days of making a purchase. Please refer to the Expense8 Quick Reference user guide on the intranet.

4.2 Cardholders’ Responsibility

As soon as practical after making a purchase, the Cardholder must log into Expense8 and complete the following:

1. Confirm that the transactions are correct by matching and uploading tax invoices/receipts to the entries on the purchasing card account.

2. Immediately take action for any unidentified/disputed transactions (see

Dispute Notification procedures 4.6). 3. Complete the WBS code and general ledger account code for each

transaction. 4. Certify each transaction by submitting it for approval.

4.3 Disputed Transactions

Cardholders are responsible for all the transactions that appear on their Purchasing Card account. A disputed transaction is an incorrect or unauthorised debit amount to the cardholder’s account. It is essential that disputed transactions are notified to the bank immediately they become known. Cardholder responsibilities with disputed transactions are:

1. Email the Purchasing Card Administrator as soon as dispute charge is identified: pcard@legalaid.nsw.gov.au

2. Attempt to contact the supplier to ascertain details of the charge and resolve the problem.

3. If unsuccessful, within 24 hours of identifying the charge, notify Westpac HVC Commercial Cards Section, via telephone. Phone: 1300 650 107. The card centre will obtain details of the transaction and issue a Dispute Transaction Reference Number, which should be recorded by the cardholder.

4.4 Settlement with Westpac

Settlement of the monthly account is via direct debit as per Treasurer’s Direction 205.07, to avoid potential interest charges for late payment.

5. ADMINISTERING THE PURCHASING CARD

5.1 Automatic Replacement of Expiring Cards

When a card nears its expiry date Westpac will automatically reissue a new card, which becomes valid from the beginning of the following month. When the

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replacement card is available the Purchasing Card Administrator will contact the cardholder to arrange delivery. The existing card should be used until the end of its expiry date then destroyed.

5.2 Lost or Stolen Cards

The loss or theft of a Purchasing Card must be notified immediately to Westpac’s Lost or Stolen Card Hotline on 1300 650 107. The hotline is accessible 24 hours a day, 7 days a week.

The Cardholder should:

Advise the Purchasing Card Administrator by phone and confirmation e-mail of the lost/stolen card, including Westpac’s log reference number.

Immediately check to see if there are any unauthorised transactions.

5.3 Changing Purchasing Card Details

The Purchasing Card Administrator should be notified of any changes including:

Change of location or position. Card no longer required. Cessation of employment with Legal Aid NSW.

5.4 Reporting

The Purchasing Card Administrator will submit a quarterly report on card usage to the CEO (TD 205.01). Matters include review of transactions, disputed transactions and outstanding transactions of more than 30 days. Instances of inappropriate use will be reported to the CEO immediately. The CEO, as part of their performance review with the Minister, must certify that credit card usage has been in accordance with Premier’s Memoranda and Treasurer’s Directions. This must be included in the Legal Aid NSW annual report.

5.5 Review of Usage

The Purchasing Card Administrator is to undertake a regular review of card usage. Any Cardholders not using their cards during this period will be requested to show reason why their cards should not be cancelled.

5.6 When Taking Extended Leave of Absence

When a Cardholder takes leave for more than three months the Purchasing Card will temporarily suspended for the period of absence.

The Cardholder should:

1. Request that the Purchasing Card be temporarily suspended by advising the Purchasing Card Administrator at least 5 days prior to commencing leave.

2. Process all outstanding Purchasing Card transactions before commencing leave by coding, certifying and submitting for authorisation in Expense8.

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3. A cardholder on sudden or unplanned leave should notify the Purchasing Card Administrator as soon as practical of their estimated duration of absence.

5.7 When Leaving Legal Aid NSW or otherwise returning a Purchasing Card

When a cardholder is ceasing employment with Legal Aid NSW, the cardholder should:

1. Notify the Purchasing Card Administrator via email the card is no longer required, including the date.

2. Cease usage of the Purchasing Card. 3. Process all outstanding Purchasing Card transactions by coding, certifying

and submitting any outstanding transactions in Expense8.

4. Advise the Purchasing Card Administrator of any incomplete transactions e.g. Transactions under investigation.

5. Cut the card in half and return it to the Purchasing Card Administrator who will arrange for the cardholder account to be closed.

Please note that this is a revised policy and procedure document in line with the roll-out of Legal Aid NSW Purchasing Cards and the Expense8 card management system.

Please contact the Purchasing Card Administrator (pcard@legalaid.nsw.gov.au) if you have any questions, suggestions or comments.

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APPENDIX A

Purchasing Goods/Services via the Internet The following is extracted from Treasury’s Credit Card Use - Best Practice Guide (TPP 05-01) When purchasing goods over the internet, it must be ensured that all purchases are conducted in accordance with sections 12 and 13 of the Public Finance and Audit Act 1983. The following guidelines are the minimum requirements:

1. Search for a padlock site or a solid key in the status bar at the bottom of the window to indicate you are on a secure page. These symbols mean the information you are sending is encrypted and cannot be read by other internet users.

2. Ensure sufficient documentation is kept relating to the transaction you make to

justify any expenditure claims, preferably showing the transaction or payment number as a reference, a tax invoice and ABN number if the provider of the goods or service is within Australia. Most reputable organisations will e-mail you a confirmation of your order. Keep details of the web address.

3. Ensure you are confident you know who you are dealing with and that you are

dealing with a reputable company/organisation with a proven track record. Contact the provider prior to the transaction to confirm. If any doubt exists do not use that provider.

4. Keep passwords and username completely confidential. Any legitimate payment

provider will never request details in regard to your pin number or password. Do not e-mail your Purchasing Card number to any provider.

5. Secure sites address box should start with https:// and NOT http:// Sites that

start with https:// have an added encrypted transaction layer. 6. Do not click on pop-up windows when making payment or go to different links on

the site. 7. Read purchasing and return policies of the organisation. Ideally the website

should cover delivery methods and costs, currency accepted, return and refund policies any taxes that are applied and contact telephone number or email address.

8. Check your account ensuring correct amount has been debited as per your

records.

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GLOSSARY OF TERMS Approval A delegation held by cardholders from the Attorney General to incur or commit expenditure on behalf of the Commission within set limits in accordance with Section 12 of the Public Finance and Audit Act 1983. Authorising Officer A Legal Aid NSW employee appointed by the Director General to independently review a payment in accordance with Section 13 of the Public Finance and Audit Act 1983 and the Treasurer’s Directions to ensure that the payment has been properly approved by a delegated officer and certified as to its correctness. Normally it is a Manager supervising the Cardholder. The CEO Purchasing credit card statement is authorised by the Deputy CEO. Cardholder An Legal Aid NSW employee to whom a card is issued to incur expenditure on behalf of the Commission in accordance with the Terms & Conditions for use of the card. Cardholder Agreement An agreement signed by the Cardholder confirming that they have read, understood and agree to adhere to the Cardholder Responsibilities of the card. Certification Confirmation by the cardholder that the expenses reflected on their card statements were incurred for business purposes only and that the goods/services have been received. The cardholder or their coder certifies approved Purchases. Coding Allocating transactions to the appropriate General Ledger account and cost centre. Cardholder Responsibilities The Cardholder Responsibilities for use of the Purchasing Card agreed to by the cardholder prior to issue of the card. Disputed Transaction An unauthorised or incorrect transaction appearing on the cardholder’s statement. Expense8 Legal Aid NSW Purchasing Card Expense Management System. Merchant A vendor or supplier that accepts MasterCard for the payment of goods and services supplied. Monthly Credit Limit The maximum value of transactions that may be debited to a Cardholder’s account during a monthly cycle. The limit may not be exceeded. Personal Expenditure Expenditure of a personal non-business related nature that should not be charged to the Purchasing Card.

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Purchasing Card A Westpac Visa Card used by cardholders to incur approved expenditure and/or procure goods and services from suppliers on behalf of the Commission. Purchasing Card Administrator The person responsible for administering the Purchasing card system and ensuring compliance to these procedures. It is part of the Assistant Financial Accountant role. Receipts Receipts/tax invoices are the supporting documentation issued when goods and services are purchased with the Purchasing Card. Tax Invoice A document containing information about a taxable supply or service that must be provided by a supplier for each Purchase. Transaction Limit The maximum value of a single transaction that a Cardholder may incur against the Purchasing Card.

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CONDITIONS OF USE

CARDHOLDER ACCEPTANCE I undertake as the cardholder that the following conditions will be adhered to:

1. Purchasing Cards are maintained in a secure manner and guarded against

improper use. In the event that a card is lost or stolen, cardholders must report the loss immediately to the card provider regardless of whether it is a working day or weekend.

Westpac Lost or Stolen Card Hotline: 1300 650 107 (accessible 24/7) Assistant Financial Accountant: (02) 9219 5947 pcard@legalaid.nsw.gov.au

2. PIN numbers are not made available to, or known by, other persons. 3. Purchasing Cards are used only for official business purposes. 4. Purchasing Cards are only used by the person whose name appears on the card. 5. Adequate funds are available to cover expenditure before it is incurred. 6. Expenditure is approved by an officer with an authority to incur expenditure

(Section 12 delegation). Note that officers holding delegation should not approve their own expenditure.

7. All documents (i.e. tax invoices/receipts, etc.) supporting transactions on the card

are uploaded to Expense8. The original tax invoices and receipts should be retained by the card holder until the expense has been approved in the Expense8 system. If no supporting documentation is available then the officer should provide a declaration detailing the nature of the expense and must sign on the statement that “All Expenditure is of a business nature”. A simple statutory declaration form is available from the intranet.

8. Credit limits are not exceeded (purchases must not be split to negate credit limits).

9. The Purchasing Cards are not used for cash advances. 10. Deposits are not made to the card account (by the Cardholder). 11. Cards are returned to the Purchasing Card Administrator upon termination of

employment. 12. Purchasing Cards are used within the guidelines set out by the Department and

the provider.

Failure to comply with any of these requirements could result in the card being withdrawn from the officer. In the event of loss/theft through negligence or non-compliance with these requirements, any liability charged by the provider against the Agency may be passed onto the officer.

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Acceptance of conditions: I acknowledge and accept the above conditions of use for my Purchasing Card. Signed……………………………………………..............……Date………......…............…… Name……………………………………………………...................……….…………………… Position…………………………………………………....................…………………………… Location……………………………………………………..................................……………...