Company Credit Cards (Alberta Council)

From SJA

This is a draft policy.

Contents 1 The Need 2 Policy 2.1 Purpose 2.2 Scope 2.3 Responsibility 2.4 Definitions 2.5 References and Related Statements of Policy and Procedure 3 Procedures 3.1 Use of Credit Cards and Expense Reports 3.2 Credit Card Expense Reports, Authorization, and Payment

The Need

Credit cards issued in the name of the company are a convenient means of paying for purchases. However, due to their quasi-cash nature, controls are required to ensure that only authorized expenditures are made.

Policy

Employees shall be given access to a company credit card where the nature of their job requires such use.

Company credit cards may only be used for business expenses and may not be used for expenses of a personal nature.

Purpose

The purpose of this Statement of Policy and Procedure is to ensure that company credit cards are used for appropriate purposes and that adequate controls are established for day-to-day use.

Scope

This policy applies to all employees who maintain a credit card for company use and the finance department.

Responsibility

Individual's holding company credit cards are responsible for:

• Using the cards only for their intended purpose
• Retaining receipts and providing explanations for all company credit card transactions
• Obtaining authorization for credit card invoices
• Submitting Credit Card Expense Reports by the due dates requested

The Finance Department is responsible for:

• Limiting the use of company credit cards to those employees who require a card for company business
• Ensuring that all credit card transactions are properly authorized
• Processing payments for credit card invoices on a timely basis to avoid late payment charges
• Arranging credit or transaction-level limits for individual cards

Definitions

• "General credit card" means a credit card that can be used at multiple establishments, such as Visa, American Express, or MasterCard.
• "Supplier-specific credit card" means a credit card that can be used only with a specific supplier, such as a gas company or an office supply company.
• "Credit limit" means the total amount that may be charged to the credit card before transactions are refused by the credit card company.
• "Transaction-level limit" means the total value of any individual transaction that may be charged to the card or the type of transaction that may be charged to the card. For example, some gas companies will allow for "gas only" cards, which deny credit for other miscellaneous purchases at the gas station.

References and Related Statements of Policy and Procedure

• Expense Authorization (Alberta Council)
• Expense Advances and Expense Allowances (Alberta Council)
• Travel Guidelines (Alberta Council)

Procedures

Use of Credit Cards and Expense Reports

• Credit cards are to be used for company purchases only. Cards will be issued in the names of specific employees.
  • MasterCard may be used for:
    • Travel expenses including accommodations (use credit for accommodations where available; for accommodations used repeatedly request that the Accounts Payable Coordinator to complete a credit application)
    • Travel expenses including meals and parking
    • Miscellaneous of one-time small purchases
  • MasterCard may NOT be used for:
    • Gas purchases when gas cards are available
    • Office supplies greater than $50
    • All purchases where a credit account can be established and St. John Ambulance Alberta Council can be billed for the purchase
• Employees must retain receipts and note the purpose of the expense and the participants on the back of each receipt.
• Employees other than the Chief Executive Officer are required to file periodic expense reports when requested by the Finance Department (at least monthly) with the accompanying receipts explaining the expenses.
• Use of company credit cards for personal expenses may result in disciplinary action.

Credit Card Expense Reports, Authorization, and Payment

• When the credit card bills are received they will be reviewed by the Accounts Payable Coordinator who will prepare a Credit Card Expense Report based on the purhases listed on the credit card bill which can be located on the S: Drive/Finance/... When these reports are available the Accounts Payable Coordinator will send an email to all cardholders advising them to complete their report and submit receipts by a certain date. It is crucial this date is adhered to in order to prevent St. John Ambulance Alberta Council from paying late fees.
• It is the responsibility of the cardholder to submit all detailed and transaction receipts for credit card purchases. Failure to submit receipts may result in the expense being deducted from payroll. Failure to comply with the reporting due date may also result in the cancellation of your MasterCard.
• The employee shall submit the corresponding receipts along with an expense report and the credti card invoice to appropriate individual for authorization. The employee is expected to submit the invoice, and expense report and receipts by the requested due date in order for St. John Ambulance Alberta Council to avoid late payment charges.
• Charges for items where the receipt has been misplaced must be explained to the authorizing individual who must initial the specific charge and indicate "receipt missing" beside it.
• The authorizing individual will confirm that the charges are justified and appropriate before authorizing the invoice for payment by noting "Okay to Pay" and signing the report. Individuals that have lost more than one receipt on past reports will be required to pay out of their own pocket for the purchase. Payment can be issued by cash, debit, credit, or payroll.
• The approved invoice shall be forwarded to the Accounts Payable Coordinator for payment.
• The Finance Manager shall verify the authorization and schedule the invoice for payment according to the terms of the credit card control, and so as to avoid unnecessary late payment charges.