Tab A
Efficient Electronic Payment Methods Policy
- Subject to the requirements outlined below, agencies must identify and use the most efficient electronic payment method for all expenditure categories.
- Agencies should use PCards for all procurement related expenditure of $5,000 or less under applicable expenditure categories unless there is a more cost effective electronic alternative(see below for guidance in determining applicable categories). Agencies have the discretion to choose a higher expenditure limit than $5,000 for individual transactions, having regard to the typical size and nature of their low value, high volume purchases, and subject to being satisfied that appropriate risk management strategies are in place.
- Where a procurement related expense is not suitable for payment by PCard, agencies should use another efficient electronic payment method (eg EFT). It is not permissible for agencies to use cheques for such payments unless a viable electronic payment method is not available. In such exceptional cases, agencies must still eliminate cheques to the maximum extent possible by no later than end of 2017.
- For non-procurement related expenses (eg refunds to private individuals) –
- Agencies shoulduse a suitable electronic payment method (eg EFT). PCards will generally not be suitable except in certain situations (eg where a refund is owed to an individual who paid for goods or services with a credit card).
- Agencies shouldnot use cheques. Where it is not possible to eliminate cheque usage for an expenditure category in the short term, agencies must provide an easy electronic payment alternative by no later than end 2015, and ensure that cheques for the expenditure category are eliminated to the maximum extent possibleby no later than end of 2017.
- Agencies must not use cheques for any new category of expenditure, or vendor.
Guidance on applicable expenditure for PCards
In determining suitable expenditure categories for PCard, agencies should consider the overall risk of the category, having regard to the nature of the goods or services being procured, the complexity of the transaction, and the typical value of the transaction.
Typical suitable categories for PCards include:
- food services (eg food, beverage, venue rental)
- education and training (eg conferences, training courses)
- repair and maintenance services (eg cleaning, pest control, equipment servicing)
- retail outlets (eg grocery, office sundries)
- wholesale trade (eg hardware trade outlets)
- information media (eg on-line book stores)
- printing services (eg brochures, signs)
- transport and logistics (eg train tickets, couriers)
- one-time or infrequent vendors
Categories of expenditure for which PCards would not be suitable include:
- Construction related purchases
- Consulting engagements and other advisory related services
- Capital purchases
- Cleaning and maintenance services
In each of these cases, the nature of the good or service is such that its purchase will likely require approval of particular terms, conditions or other requirements, and/or is unlikely to be low value, making it unsuitable for payment through a PCard.