CEI 3.5 Corporate Credit Card

1. Scope of these instructions

These Chief Executive's Instruction's (CEI) outline the requirements for officials who issue and/or use a Corporate Credit Card (CCC) on behalf of the Department of Agriculture, Fisheries and Forestry (the department). This CEI is to be read in conjunction with CEI 3.2 – Payment of Accounts. Additional information on this CEI is available in the document All about Corporate Credit Cards and the Corporate Credit Card Manual.

2. Policy principles

• Credit cards issued by the department are to be used for official purposes to pay for travel and minor purchases of goods and/or services up to $2 000 per transaction (including GST) unless otherwise approved by the Chief Finance Officer.
• All cardholders are provided with a Financial Management and Accountability (FMA) Regulation 9 and section 44 of the Financial Management and Accountability Act 1997 (FMA Act) delegations to approve spending proposals up to the transaction limits of their CCCs. Cardholders may use the CCC to pay a claim that includes both official travel expenses and unavoidable coincidental private expenditure incurred during official travel. They must reimburse the department for the amount of the coincidental private expenditure within 14 calendar days of completing travel.
• All CCC expenditure must be able to withstand public scrutiny and represent efficient, effective economical and ethical use of public money and be consistent with government policy.
• Cardholders must have obtained written approval prior to spending public money with their credit card.
• Cardholders, FMA Regulation 9 approvers and the reviewing officers must be familiar with departmental policies and guidance related to travel, payment of accounts, procurement, public property, gifts and official hospitality.

3. Target audience

This CEI is applicable to all officials in the department who have been issued a corporate credit card, process acquittals, and/or approve or review credit card transactions.

4. Departmental instructions

4.1 Responsibilities

Cardholders must:

• satisfy themselves, after making reasonable enquiries, that the spending proposal would be a proper use of Commonwealth resources as per ss44 of the FMA Act and is in accordance with the policies of the Commonwealth including the Commonwealth procurement guidelines.
• keep supporting documentation for each credit card transaction (excluding card fees or foreign exchange conversion fees) and attach to the corresponding CCC acquittal.
• reimburse the department for the cost of meals paid for with the CCC when they have also received payment of the full travel allowance into their bank account. The use of the CCC to purchase meals versus receiving the travel allowance is at the cardholder's discretion.
• acquit their credit card transactions in iCMS supported by necessary documentation.

FMA Regulation 9 Approvers must:

• not approve expenditure for an officer holding a more senior position, with the exception of the Chief Operating Officer, who has the authority to approve expenditure made by the secretary or the deputy secretaries in the secretary's absence.
• satisfy themselves, after making reasonable enquiries, that approving the spending proposal would be a proper use of Commonwealth resources and is in accordance with the policies of the Commonwealth including the Commonwealth Procurement Guidelines.
• ensure funds are available prior to approving any spending proposal.
• ensure they do not exceed the limitations that are placed on their spending power.
• Ensure their decisions are recorded and that they are obtained prior to entering into an arrangement to spend public money. If approval of a spending proposal is verbal, the delegate must record the terms of the approval in writing within 14 calendar days.

Reviewing officers must:

• provide an independent review that purchases on the CCC are valid and approved.
• not be the same person as the cardholder initiating the spending proposal.
• confirm that documented evidence of prior spending approval has been attached to the CCC acquittal for each credit card transaction made by the cardholder.

Division Heads / Executive Managers:

• are responsible for the issuance, cancellation and management of the CCC held by their employees, including the periodic review of card limits within their division.
• approve credit card limits, including setting or varying existing limits.

Branch Heads / General Managers / Regional Managers must:

• appoint reviewing officers.
• maintain a list/register of reviewing officers for their branch/business area.

Chief Finance Officer:

• ensures proper controls are in place for the management of credit cards in the department
• issues policies and procedures for the use and management of credit cards
• initiates the periodic review of cardholders, card limits, reviewing officers and general acquittal processes
• approves the use of a CCC to withdraw cash in exceptional circumstances
• is responsible for the issuance, cancellation and management of the CCC held by their staff
• approve credit card limits, including setting or varying existing limits.

4.2 Record keeping

Accounts and records relating to credit card purchases are to be maintained in accordance with section 48 of the FMA Act and retained by the department in accordance with the requirements of the Archives Act 1983, generally this is for a period of seven years.

5. Breaches

• officials are bound by the APS Code of Conduct under section 13 of the Public Service Act 1999 and section 44 of the FMA Act to use Commonwealth resources in an efficient, effective, economical and ethical manner. Officials who do not comply with this CEI may be found to be in breach of these provisions and sanctions may apply.
• section 60 of the FMA Act deals specifically with "Misuse of Commonwealth Credit Card" and carries a penalty of seven years imprisonment if a breach occurs.

6. References

6.1 Legislation

• Financial Management and Accountability Act 1997 (sections 38(2), 44, 48 and 60)
• Public Service Act 1999 (section 13)
• Financial Management and Accountability Regulations 1997 (Regulations 8, 9, 12 and 21)
• Financial Management and Accountability (Finance Minister to Chief Executives) Delegation (as amended)

6.2 External guidance/instruction

• Finance Circular 2011/05 – Chief Executive's Instructions
• Finance Circular 2011/01 – Commitments to spend public money (FMA Regulations 7 - 12)

6.3 Internal guidance/instruction

• MyLink page on Corporate Credit Cards
• Corporate Credit Card Manual
• Corporate Finance training

6.4 Related CEIs

• CEI 1.2 – Fraud Control
• CEI 1.3 – Gifts
• CEI 1.4 – Official Hospitality
• CEI 1.6 – Recordkeeping
• CEI 3.1 – Procurement
• CEI 3.2 – Payment of Accounts
• CEI 3.4 – Official Travel
• CEI 6.1 – Care and Custody of Public Property

7. Definitions

Change History