CORPORATE POLICY, STANDARDS and PROCEDURE
Page 1 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
TBA
DATE APPROVED
Chief Financial Officer
March 2011
CURRENT VERSION
DATE
March 2011
DATE(S) REVISED / REVIEWED SUMMARY
Version
1.0
Date
March 2011
Comments / Changes
Initial policy released
1. PURPOSE OF THIS POLICY
To define the purposes for which Corporate Purchase Cards are to be used and the
conditions under which cards are approved, issued and monitored.
The objective of the Corporate Purchase Card Program is to provide a simpler, faster and
more cost effective method for buying and for paying for small dollar transactions. This
program is designed to replace a variety of processes including petty cash and nonpurchase order purchases. The use of the Corporate Purchase Card to purchase low dollar
value goods and services in support of sound business practices will replace the more costly
purchase order process. Fraser Health Authority staff who currently make frequent small
dollar purchases for his/her department(s) are candidates for the Corporate Purchase Card.
2. POLICY STATEMENT
Fraser Health Treasury Staff will administer the Corporate Purchase Card Program including
application approval and spending limit approval.
Fraser Health staff and those assigned Spending Authority rights within Fraser Health and
who are provided with a Corporate Purchase Card will comply with the principles and
procedures outlined in this policy. Failure to comply may result in the revocation of the
Corporate Purchase Card as well as further disciplinary action as warranted under Fraser
Health’s Theft, Fraud and Corruption policy.
2.1.
Responsibilities
2.1.1.
Cardholder
»
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© Fraser Health Authority
Review the Online Cardholder Training Video.
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 2 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
TBA
DATE APPROVED
Chief Financial Officer
March 2011
CURRENT VERSION
DATE
March 2011
»
Sign the Corporate Purchase Card Cardholder Responsibilities and
Obligations document prior to being granted a Corporate Purchase
Card for business use.
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© Fraser Health Authority
»
Ensure that all expenses are only charged to the cost centre(s) for
which the purchase card has been set up.
»
Retain all original receipts for items purchased. The original receipt
is the merchant’s itemized bill with details of the purchase and
H.S.T. (please note that the MasterCard signature slip is NOT
acceptable as an original receipt).
»
Within 5 business days after the cut-off on the 15th of the
month, review the monthly Cardholder statement in the Bank of
Montreal Details Online system. Amend the cost centre to be
charged and the tax calculations as required to accurately record
the charges for each transaction.
»
Ensure that the business purpose for all expenses incurred is noted
on the approved statement and/or merchant’s itemized bill.
»
Print the statement using the Fraser Health custom statement.
»
Attach the original receipts to the monthly statement for approval
and sign-off by the appropriate Cost Centre Owner.
»
Within 7 business days after the cut-off on the 15th of the
month, forward the monthly statement and original receipts to
General Accounting. Note and highlight any transactions in dispute
in the statement.
»
Comply with internal control procedures in order to protect company
assets. This includes keeping receipts, reconciling period card
statements and following proper card security measures.
»
Surrender his/her card upon termination of employment (i.e.
retirement or voluntary/involuntary termination).
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 3 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
TBA
DATE APPROVED
Chief Financial Officer
March 2011
CURRENT VERSION
DATE
March 2011
2.1.2.
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© Fraser Health Authority
»
Return the Corporate Purchase Card and re-apply for a new one (if
needed) in the case of changing job description, department or cost
centre within Fraser Health. The Corporate Purchase Card Request
Form must be completed to make updates and changes to
Cardholder details.
»
Report a lost or stolen card or disputed transactions immediately by
telephone to the Bank of Montreal at 1.888.267.7834 and to the
Purchase Card Coordinator within Fraser Health Treasury by the
next business day at 604.520.4773.
»
No Cardholder may accept cash or a cheque from a vendor who is
making a refund pertaining to a transaction previously charged to
the Corporate Purchase Card account. The vendor in all cases must
issue a credit voucher.
Cost Centre Owner
»
Assess the need for Corporate Purchase Cards based on operational
requirements.
»
Ensure that each Cardholder is informed of his/her responsibilities
regarding the use of the Corporate Purchase Card.
»
Ensure that the use of Corporate Purchase Cards conforms to all
corporate policies and procedures.
»
Authorize staff, or those assigned Spending Authority rights within
Fraser Health, to apply for a Corporate Purchase Card provided that
the Cost Centre Owner has appropriate signing authority.
»
Request variances to the standard credit limit and transaction limit
for each Cardholder up to the maximum allowed by Fraser Health’s
Limits of Spending Authority policy.
»
Within 7 business days after the cut-off on the 15th of the
month, review and approve the Corporate Purchase Card
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 4 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
TBA
DATE APPROVED
Chief Financial Officer
March 2011
CURRENT VERSION
DATE
March 2011
statements for
supervision.
2.1.3.
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© Fraser Health Authority
each
Cardholder
under
his/her
immediate
»
Ensure that original receipts are attached to the approved
statement. The original receipt is the merchant’s itemized bill with
details of the purchase and H.S.T. (please note the MasterCard
signature slip is NOT acceptable as an original receipt).
»
Ensure that the business purpose for all expenses incurred is noted
on the approved statement or merchant’s itemized bill.
»
Ensure expenses are properly charged to the cost centre(s) for
which he/she has Spending Authority.
»
Monitor and control the utilization of Corporate Purchase Cards
within his/her department or area of responsibility.
»
Ensure that a Cardholder’s Corporate Purchase Card is recovered
when the Cardholder ceases to be a Fraser Health employee or
transfers to a different cost centre.
Purchase Card Coordinator (within Fraser Health Treasury)
»
Administer the issuance, modifications and cancellation of Corporate
Purchase Cards through the Bank of Montreal Details Online
program.
»
Ensure that a fully completed and signed Corporate Purchase Card
Request Form and a Corporate Purchase Card Cardholder
Responsibilities and Obligations document are on file. The
documents will be retained by the Corporate Purchase Card
Coordinator for review by the Internal Audit department.
»
On a Quarterly basis, review the list of current Cardholders with the
People Services department to ensure that Cardholders remain
employees of Fraser Health.
»
Provide assistance to Cardholders for inquiries relating to the Bank
of Montreal Details Online program.
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 5 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
TBA
DATE APPROVED
Chief Financial Officer
March 2011
CURRENT VERSION
DATE
March 2011
2.1.4.
Payment Coordinator Responsibilities (within Fraser Health
General Accounting)
»
Provide coordination with respect to monitoring the overall
utilization of Corporate Purchase Cards.
»
Review monthly statement packages to ensure appropriate original
supporting receipts with business purpose explanation and Cost
Centre Owner approval have been obtained.
»
Follow-up with Cardholders with regards to outstanding/late
statements.
»
Ensure the monthly transaction file received from the Bank of
Montreal Details Online program is loaded into Meditech.
»
Review expenditure activity for inappropriate purchases.
3. POLICY SCOPE
This policy applies to all holders of Corporate Purchase Cards and those with assigned
Spending Authority rights who supervise these cardholders.
4. POLICY PRINCIPLES
4.1
General
The Corporate Purchase Card is provided to staff or those assigned Spending
Authority rights within Fraser Health based on his/her need to purchase business
related goods and services. The Corporate Purchase Card is not an entitlement nor
reflective of title or position.
Applicants will not be subject to a commercial credit check.
Corporate Purchase Card privileges may be revoked for Cardholders who
fail to adhere to this Policy.
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© Fraser Health Authority
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 6 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
Chief Financial Officer
TBA
DATE APPROVED
March 2011
CURRENT VERSION
DATE
March 2011
4.2
Authorization
Fraser Health Treasury within Accounting Services will be responsible for approving
all Corporate Purchase Card applications and spending limits and will be responsible
for administration of the program.
Applications may be approved based on meeting the general rationale of either - (i)
frequent purchases under $2,500; (ii) frequent travel or (iii) other reasons based on
specific circumstances.
Staff who wish to apply for a Corporate Purchase Card must complete the Corporate
Purchase Card Request Form. Those with appropriate Spending Authority are
required to authorize their staff to apply for a Corporate Purchase Card.
Contractors may only receive a Corporate Purchase Card to purchase goods on
Fraser Health's behalf in limited circumstances and would have to justify the need in
the Corporate Purchase Card Request Form. The application for Corporate Purchase
Cards by Contractors will be assessed on a case by case basis.
A Corporate Purchase Card will become invalid based on change of job description,
department or cost centre.
4.3
Spending Limits
The Cost Centre Owner authorizing the application for a Corporate Purchase Card
must have sufficient spending authority in accordance with Fraser Health's Limits of
Spending Authority policy.
All Corporate Purchase Cards are set-up initially with a standard monthly credit limit
of up to $10,000 (Canadian dollars) and a standard per transaction limit of up to
$2,500 (Canadian dollars) including all applicable taxes, freight and currency
conversion fees. The transaction limit and credit limit can be modified provided the
change does not exceed the spending authority limit for the individual approving the
credit limit change as specified in Fraser Health's Limits of Spending Authority policy.
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© Fraser Health Authority
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 7 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
Chief Financial Officer
TBA
DATE APPROVED
March 2011
CURRENT VERSION
DATE
March 2011
Cardholders shall not circumvent the established spending limits by subdividing
purchases/invoices/contracts into smaller amounts.
To modify a credit limit the Cost Centre Owner must include the specific
requirements in the Corporate Purchase Card Request Form and submit the form to
the Corporate Purchase Card Coordinator.
4.4
Purchase Limitations
All purchases made via Corporate Purchase Cards must comply with all existing
Fraser Health polices.
Corporate Purchase Cards may only be used by the authorized Cardholder and may
not be shared with any other individuals.
Corporate Purchase Cards may NOT be used in the following circumstances:
o
o
o
o
o
o
o
o
when the total purchase price exceeds the total dollar limits per transaction;
when the goods and services are available for purchase under an existing
contract (i.e. accessible through on-line requisitioning such as Grand & Toy);
when the goods are available from Fraser Health's Central Warehouse;
when the goods are available from Internal Printing or Stationery Stores;
for personal vehicles operating and maintenance expenses including vehicle
repairs, fuel, oil, etc.;
for purchasing goods and services subject to standardization (i.e. furnishings,
computer equipment);
for personal purchases;
to obtain cash advances.
Examples of purchases for which use of the Corporate Purchase Card is NOT
appropriate include: medical/surgical items (except in emergent situations), personal
expenses, computer hardware, software and related products, professional fees,
liquor, parking fines and towing charges.
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© Fraser Health Authority
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 8 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
Chief Financial Officer
TBA
DATE APPROVED
March 2011
CURRENT VERSION
DATE
March 2011
Purchases relating to travel and business related expenses must be made in
accordance with the Travel and Business Expense policy.
Unauthorized use of the Corporate Purchase Card can be considered
improper use of Fraser Health funds which may result in disciplinary
action up to and including termination of employment.
4.5
Personal Beneficiaries
A Cardholder by virtue of this policy shall not acquire goods or services when the
Cardholder is the direct or indirect beneficiary of such goods or services. Another
authorized person, usually the person of next higher authority, must use his/her own
Corporate Purchase Card to complete such transactions.
4.6
Use in Conjunction with the Limits of Spending Authority Policy
The Corporate Purchase Card policy should be followed in conjunction with the
Limits of Spending Authority policy. Specifically, per transaction limits must be
within the Cardholder’s Spending Authority.
Staff or Contractors without Spending Authority who require a Corporate Purchase
Card to fulfill their duties may be delegated the appropriate Spending Authority as
per Fraser Health’s Limits of Spending Authority policy.
5. PROCEDURES
5.1
Ordering and Delivery
The department making a purchase and/or return with a vendor will be responsible
for coordinating the pick-up of shipments.
If the product is being shipped to a Fraser Health receiving dock, the supplier is to
be instructed to put the department or Cardholder name and location on the
external packaging so that the shipment can be delivered internally. Any
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© Fraser Health Authority
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 9 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
Chief Financial Officer
TBA
DATE APPROVED
March 2011
CURRENT VERSION
DATE
March 2011
accompanying invoice or packing slip must be clearly stamped or marked “Paid by
MasterCard”.
When placing orders by phone ensure that the supplier sends the receipt to the
Cardholder and not to Accounts Payable. The receipt or invoice must be clearly
stamped or marked “Paid by MasterCard”.
When ordering goods and/or services from the Internet, ensure that the site is 128bit, SSL-encrypted as signified by the closed lock symbol on the bottom of the web
browser. Ensure that the vendor is known and is reputable. Print the order
confirmation form from the website.
5.2
Reconciliation of Statement and Dispute
Within one business day following the 15th of each month, the Corporate Purchase
Card statement is available on the Bank of Montreal Details Online site for review
and verification.
If a dispute arises from a transaction for which the Corporate Purchase Card was
used the Cardholder must settle it directly with the supplier/merchant concerned. If
the dispute is not resolved to the Cardholder’s satisfaction, the disputed item should
be reported to the Bank of Montreal call centre at 1.888.267.7834. All disputed
transactions are to be highlighted and identified on the statement with explanations
when submitted to General Accounting.
If there are no changes to be made to department, account codes or traveller name
the Cardholder prints the custom statement, attaches original receipts, provides
explanations of valid business purposes, obtains his/her Cost Centre Owner’s (or
designate) signed approval on the statement and forwards the package to General
Accounting within seven business days of the statement date.
If the Cardholder needs to change the department, account codes or traveller name
on any transactions, the Cardholder has up to five business days from the date they
receive the statement to make any adjustments through Details Online. Instructions
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© Fraser Health Authority
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 10 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
Chief Financial Officer
TBA
DATE APPROVED
March 2011
CURRENT VERSION
DATE
March 2011
on how to make changes are described in the user guide. The Cardholder then prints
the custom statement with the changes, attaches original receipts, provides
explanation of a valid business purpose, obtains his/her Cost Centre Owner’s (or
designate) signed approval on the statement and forwards the package to General
Accounting within seven business days of the statement date.
Cost Centre Owners should ensure purchases are supported by an original receipt,
are properly reconciled to the statements, have a valid business purpose and are
charged to the correct cost centre prior to sign-off of the statements. Signed
statements are sent to General Accounting for review.
The Corporate Purchase Card is not to be used for personal purchases. Should the
Cardholder inadvertently use the card to make such a purchase the Cardholder
should remark in the note section of the transaction that this item is personal.
He/she should attach a cheque payable to “Fraser Health Authority” to cover the
personal purchases when the Cardholder submits his/her monthly statement.
5.3
Finance Procedures
General Accounting will review statements to ensure that receipts are attached and
that the appropriate authority has signed off the statements. General Accounting will
also review transactions for appropriateness.
Seven calendar days following the 15th day of each month, General Accounting
downloads all transactions from Details Online which are then uploaded into the
Meditech system.
6. DEFINITIONS
Cardholders are those staff who have been authorized with a Corporate Purchase Card in
accordance with this policy.
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© Fraser Health Authority
CORPORATE POLICY, STANDARDS and PROCEDURE
Page 11 of 11
POLICY TITLE
NUMBER
CORPORATE PURCHASE CARDS
AUTHORIZATION
TBA
DATE APPROVED
Chief Financial Officer
March 2011
CURRENT VERSION
DATE
March 2011
Corporate Purchase Card refers to commercial credit cards issued under the current
banking arrangements.
Cost Centre Owner refers to a staff member who has budget responsibility and spending
authority over a particular cost centre or a department which may be made up of one or
more cost centres.
Department Director must be a Director for a particular program or service area and
must be a Cost Centre Owner as defined by this policy.
Emergent Situation is defined as the inability to perform clinical duties due to the lack of
medical/surgical supplies which cannot be delivered from the Central Warehouse within a
reasonable timeframe.
Spending Authority is the authority to commit funds from a specific cost centre as
defined in Fraser Health’s Limits of Spending Authority policy.
Staff refers to all employees of Fraser Health and allied health professionals and physicians
employed by Fraser Health.
7. REFERENCES
Fraser Health Policy:
Limits of Spending Authority
Fraser Health Policy:
Signing Authority
Fraser Health Policy:
Theft, Fraud and Corruption
Fraser Health Policy:
Travel and Business Expenses
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© Fraser Health Authority