Purchasing Card

Purchasing Card Policy

Policy Code: FN1284

Purpose

To achieve significant improvements in the purchasing process for low value high volume items in order to streamline the overall purchasing operation.

Scope

This policy applies to Council and staff members of the University using a University Purchasing Card and / or with key responsibilities under this policy.

Definitions

Accountable Officer: Staff member responsible for the operation of the card facility as appointed under the Purchasing Card Policy.
Account Codes/Cost Centres: General ledger codes used to identify accounts.
Audit and Risk Committee: Committee of University Council.
Card Administrator: Financial Services Administration Officer responsible for day to day Purchasing Card administration.
Cardholder: Authorised holder of Purchasing Card in accordance with the Purchasing Card Policy / Procedure.
Card Provider: Financial Institution contracted to provide the University Purchasing Card facility.
Certifying Officers: Chancellor, Deputy Chancellor, Vice Chancellor and President, Deputy Vice Chancellors, Chief Operating Officer/CFO, Executive Deans, Directors, and Managers with financial delegations and responsibility for reviewing relevant 'Cardholders' transactions and approving payment. The Certifying Officer must be the card holder's authorising supervisor or more senior line manager.
Council Member: Member of University Council other than a staff member of Council.
Designated Purchasing Officer: Faculty/Section staff member with significant purchasing functions. HEW 2 - 4 or equivalent as approved under Section 2. Delegations to Persons or Bodies of Persons the "Delegations - Contracts, Financial, Staffing and Tenders Policy".
Financial Delegate: Council or staff member with an approved Financial Delegation in accordance with Section 2 of the Delegations - Contracts, Financial, Staffing and Tenders Policy.
Financial Operations Central Purchasing Officer: Staff member within the Financial Services Section with responsibility of Central Purchasing Officer for authorised expenditure only.
Gift Card/Voucher: A gift card or voucher is a restricted monetary equivalent or scrip that is issued by retailers or banks to be used as an alternative to a non-monetary gift.
Gratuity:            A Gratuity is a token offering provided in return for a voluntarily service as a sign of appreciation for providing the service. There must not be any expectation of payment of value by the recipient for the service they provide, at the time of providing the service.
Official Purposes: Purposes in direct connection with or as a direct consequence of the functions and duties undertaken by a Council Member or staff member of the University.
Program Administrator: Responsible for providing procedural, administrative and systems support for all staff.
Voucher: A Voucher is a Gift voucher, food voucher, book voucher, gift card, movie ticket, movie money, entry pass or any similar voucher, ticket or right.

Policy Statement

The University will have a system of controls and procedures in place to ensure authorised Purchasing Card transactions are recorded in an accurate and timely manner.

Federation University Australia will use Purchasing Cards ("cards") to maximise the commercial advantages provided by these facilities and electronic commerce generally, to achieve:

  • Reductions in the administrative costs of procurement processes.
  • Improved purchasing efficiency and control.
  • Electronic transaction data for reporting, analysis and control.

Key Council and staff members will be appointed and allocated management, administrative and monitoring responsibilities, ensuring efficient and effective operation of the cards.

Responsibilities

Cardholders will be required to make themselves familiar with the requirements of the Purchasing Card Procedure and the contents of all the relevant documentation.

The following key Council and staff members will be appointed and allocated management, administrative and monitoring responsibilities:

Position Role

Chancellor,

Deputy Chancellor,
Vice-Chancellor and President,
Deputy Vice-Chancellors,
Chief Operating Officer

Executive Deans

Directors andManagers

Certifying Officers - accountable for expenditure for their particular cost centre and responsible for reviewing transactions appearing on cardholder statements and approving payment.
Audit and Risk Committee Monitoring - the effective operation of the policy and monitoring the management of violations.
Chief Operating Officer/CFO Accountable Officer - responsible for the operation of the card facility.
Manager, Financial Services Program Administrator - responsible for providing procedural, administrative and systems support.
Financial Services Administration Officer Card Administrator - responsible for day to day Purchasing Card administration.

Transaction and Card Limits

Standard financial limitations will apply, according to the table below. These limits are subject to restrictions on the types of goods and services for which a cardholder may use the card.

Other limits include:

  • Card transaction limits will not exceed card holder's financial delegation.
  • The card is not to be used to obtain cash, traveller's cheques, pre-paid phone cards, pay traffic infringements or other fines, or for the payment of tips.
  • Splitting of expenses into more than one invoice to ensure that limits are not exceeded is not permitted.
  • Restrictions may be applied to the types of goods and services available for individual cards.
  • On Campus transactions/purchases are not permitted
Cardholder Category Transaction Limit Monthly
Limit
Chancellor
Vice-Chancellor and President
Deputy Vice-Chancellors
Chief Operating Officer/CFO
$10,000 $25,000
Deputy Chancellor
Directors of Sections
$5,000 $15,000
Council Member
Financial Delegate
Designated Purchasing Officer-Frequent User *
$2,500 $15,000
Designated Purchasing Officer-Non Frequent Users * Up to $1,000 Up to $5,000
Financial Services Central Purchasing Officers $10,000 $25,000

* Frequent / Non Frequent Users are as determined by the Chief Operating Officer/CFO.

The Accountable Officer or Program Administrator may approve short term increases if supported by a business case (e.g. travel requirements).

Legislative Context

  • Financial Management Act 1994.
  • Purchasing card rules for use and administration (Issued pursuant to the Financial Management Act 1994)

Associated Documents

Implementation

The implementation of the Purchasing Card Policy will take place in the following format:

  1. The National Australia Bank will be advised and an extension to facility limits will be applied for.
  2. An Announcement Notice under 'Current News' on the 'FedUni' website and on the 'What's New' page on the 'Policies and Procedures @ FedUni' website to alert the University-wide community of the approved Policy.
  3. All card holders will be advised by email of the Policy update.