Credit Card
Policy & Procedures
CONTENTS
INTRODUCTION
1. General Rules before using your University card Page 3
2. Placing an order using the card Page 4
a)…Using the credit card in person Page 4
b)…Using the credit card by telephone Page 4
c)…Using the credit card for ordering by mail Page 4
d)…What if the supplier refuses to accept your card? Page 4
e)…Requesting a VAT invoice Page 4
f)….Recording purchases Page 4
g)…What to do if goods need to be returned Page 4
3. Administering your statements Page 5
a)…Receiving monthly statements Page 5
b)…What to do if you dispute an item on the statement Page 5
c)…The reconciled Statements Page 5
4. Card Housekeeping Page 6
a)…Security of the card Page 6
b)…Card expiry Page 6
c)…Damaged card Page 6
d)…Change of personal details Page 6
e)…Cardholders liability Page 6
5. Purchasing Office Responsibilities Page 6
6. Finance (Creditors) Responsibilities Page 7
7. Finance (Management Accounts) Responsibilities Page 7
8. Summary Page 7
INTRODUCTION
The University has identified that there are 2 reasonable justifications for the use of a University credit card.
1. A Departmental credit card to be used by staff members who as part of their role and responsibilities are required to purchase goods and services on behalf of the department, faculty that they work in. In order to streamline the purchasing process the credit card can be used to purchase one off, low value (typically less than £1000), goods and services from Contracted and Non Contracted Suppliers.
2. An Individual credit card to be used by staff members who as part of their role and responsibilities are required to travel on University business and or provide external hospitality on a regular basis. This card is to be used for incidental expenses that would otherwise have to be paid for by the individual and reclaimed as an expense.
Please read the following policy and procedures carefully as failure to adhere to them will result in the University credit card being withdrawn.
1 GENERAL RULES REGARDING USE OF THE CREDIT CARD
The University Credit Card is issued in your name, which means that you are responsible for ensuring that the purchase transactions that are made against it are for legitimate University business requirements.
· Personal use of the card is not permitted, even if you intend to repay the cost of the transaction.
· You must keep the credit card and PIN number safe and secure at all times.
· It is not permitted to set up direct debit or standing order payments against the card. Please refer to the Finance Department for further advice on these types of payments
· Departmental card purchases must be for the benefit of the University and can only be for items that would normally be purchased by your department.
· Individual credit card purchases must be for legitimate business travel or hospitality expenses.
· Purchases against either card must not contravene the University’s Financial Regulations, Travel & Expense or the Entertaining and Hospitality Policies. Copies of which can be found under Policies and procedures.
· Any charge against a card that is not accepted as a legitimate business expense can be fully recovered by the University from the cardholder’s salary. Deductions will only be made after receiving a minimum of 30 days notification from the authorising manager.
· University Credit Cards are not provided as a means to by pass the Purchase Order System (E5). Purchases, where possible should be made from suppliers who are already set up on the E5 system. The University has numerous contracts and agreements in place with suppliers, details of which can be found on the Purchasing web pages
· Convenience must not be allowed to override all other considerations such as warranty, after-sales service.
· It is not permissible to split an order with a supplier because the value exceeds your individual card transaction limit.
· All departmental purchases must be supported by a written request or email, which must be kept on file in the department for audit purposes.
· Travel – the cardholder must declare the date, destination and purpose of the travel expense. (HMRC Requirement). Travel Policy
· Hospitality – the cardholder must declare the date, organisation, number of external and internal persons present and the purpose of the hospitality. Hospitality can only be given in accordance with the University’s Entertaining and Hospitality Policy.
2 PLACING AN ORDER USING THE CREDIT CARD
a) Using the credit card in person
When making a purchase at a supplier outlet you will be asked to confirm the transaction by entering your unique PIN number. You must never disclose this PIN number to anyone. Also you cannot place an order by phone and then send someone else with the credit card to collect the goods.
b) Using the credit card by telephone (Departmental Cards Only)
Once a supplier is identified, proceed to purchase by quoting your card details. Instruct the supplier to mark the packaging/paperwork with ‘University credit card’ and for the attention of [name and location]. If applicable, a VAT invoice/receipt clearly marked University credit card paid should be sent with the goods or directly to you. The supplier may request details of the University postcode for a security check. If asked for the Richmond Road postcode BD7 1DP should be quoted.
c) Using the credit card for ordering by mail (Departmental Cards Only)
Orders can be made if there is an application form that can be completed for Visa payment. The packaging and accompanying paperwork must be marked ‘University purchase card’ and ‘for the attention of [name and location]’. If applicable, a VAT invoice/receipt clearly marked University purchase Card paid should be sent with the goods or directly to you.
d) What if the supplier refuses to accept your card?
If the supplier refuses to accept your card, contact the bank in the first instance, they should be able to advise what the problem is. Then if you are not able to resolve the problem you may need to contact the University Card Administrator in Finance.
e) Do you need a VAT Invoice/receipt
The University does not reclaim Vat paid on its purchases made by University credit cards but you will be required to show the VAT element, where applicable when coding your transactions in the online system.
All invoices/ receipts though must be first scanned and then attached to your online transaction report. Non-grant code receipts are to be retained by the cardholder for a period of up to 12 months for audit purposes
For purchases made against a Research Grant code, after scanning and attaching the receipt online the hardcopy MUST be sent through to the Research Grants Office in Finance.
f) Recording purchases on the Transaction Log or Statement
You may wish to record all your purchases on a transaction log, including all the relevant information, requisitions, invoices/receipts and goods received notes. You should ensure that there is sufficient detail to facilitate reconciliation to the card statement at the end of the month.
g) What to do if goods need to be returned
The following Procedures should be followed:
Inform the supplier immediately.
Make arrangements for the replacement goods to be sent to you (where applicable)
Return the rejected goods to the supplier, or arrange for supplier to collect them.
Enter details onto the Transaction Log sheet or monthly statement.
When the monthly statement is received, check to ensure that the supplier has credited your account, and recharged you where applicable.
3 ADMINISTERING YOUR STATEMENTS
a) Receiving monthly statements
Each month you will receive an email from Mastercard via the online system indicating that your statement is available to be coded. Login online and check that the transactions are correct and add the relevant cost codes. You will be required to attached a scanned version of the receipt to each transaction.
Ensure that there is a full description of the transaction entered in the required field, and that the required information for travel and hospitality is added.
Print your statement off and send this along with any your receipts for RESEARCH GRANTs only expenditure to Finance.
b) What to do if you dispute an item on the statement
Occasionally you may not be able to reconcile your log sheet or monthly statement for one of the following reasons:
Transactions you are not aware of
Contact the University Card issuers (the Bank) Customer centre, the telephone number will be on the reverse of your card and request details of the transaction in question. Once you are sure that it is not a transaction you have forgotten about inform the University Card Administrator in Finance for action. The bank will also issue you with a form to complete so the transaction can be credited against your account.
Supplier’s price is greater
Contact the supplier direct in order to discuss the difference. If you are unable to resolve inform the University Card Administrator in Finance for action.
Billed for goods not yet received
If the goods have not been despatched, inform the University Card Administrator in Finance. It is a Mastercard regulation that the transaction should not be processed until the goods are despatched. If the goods have been despatched check the delivery address with the supplier and follow up with the relevant store/delivery point.
You must ensure that any credit received is applied directly to your University Card account and is not settled by way of cash reimbursement or cheque.
c) The reconciled statement
This must be coded and available to your Authorising Manager within 5 days of the statement being available. This is to enable your Authorising Officer sufficient time to authorise within 10 days of the statement being produced. In the event of holidays or illness, if you are unable to meet this requirement then please contact the finance department so that alternative arrangements can be made.
Continual failure to comply with these times scales will result in your card being withdrawn.
Be aware that the following process will take place:
i) Month 1 statement - After the initial 5 days you will be sent a reminder to complete the coding of your transactions.
ii) Month 2 statement – If the month 1 and 2 statements remain un-coded beyond the second 5 working day period your UoB credit card will be blocked.
iii) Month 3 statement – if there are still any outstanding statements to be coded and or approved by this point the University will look to recover these expenses from your salary
Please remember it is the cardholders responsibility to ensure that the statements, coding and receipts are all kept up to date.
4 CARD HOUSEKEEPING
a) Security of the Card
Lost or stolen cards should be immediately notified to the University card provider (the Bank) and inform the University Card Administrator in Finance. A new card will be forwarded by the bank shortly.
b) Card Expiry
If a replacement card is not received by the time the old card expires, contact the University Card Administrator in Finance. Expired cards should be cut up, in particular the “microchip” and disposed of securely.
c) Damaged card
If you damage your card contact the University Card Administrator in Finance.
d) Change of Personal details
Contact the University Card Administrator in Finance if you change your name, your job/department or you are to leave the University’s employment.
Cut the card up and return it to the Purchasing Office.
e) Cardholders liability
Although the University Card is embossed with your name the account and therefore liability is in the name of the University. The card does not have an impact on your personal credit status.
5 PURCHASING SERVICES RESPONSIBILITIES
It is the responsibility of the Purchasing Office to ensure that:
New and existing cardholders have signed the cardholder agreements before the cards may be used.
The Card Authorising Officer/Administrator approves any requests to amend credit limits.
Guidance and procedures are issued to new cardholders and Card Authorising Officer/Administrator.
Training is provided as appropriate.
Cards are terminated on a timely basis.
A log of the cardholder’s details is maintained within the online system.
Suppliers are encouraged to accept card payments, in liaison with the cardholder.
The Purchasing Office will monitor management information in respect of the level of the usage, values and nature of purchases made in order to consider whether the cards continue to offer value for money.
Creditors download statements transactions on a timely basis to the appropriate ledger codes and clear the appropriate balance on the card holding account within the Finance system.
6 FINANCE (CREDITORS) RESPONSIBILITIES
Ensure that the Cardholder and Authorisers adhere to the timetable as detailed above and that expense reports are submitted online in a timely basis.
Perform regular audit checks to ensure that any expenditure is a legitimate business expense. Also, to check that the statements have been appropriately coded, with detailed descriptions and appropriate receipts/invoices attached authorised.
Regular monthly checks are carried out to ensure outstanding balances are being cleared and monthly reversing journal prepared for outstanding balances.
7 FINANCE (Management Accounts) RESPONSIBILITIES
Financial Accounts allocate direct debits to the correct holding account.
Creditors balances are cleared off on a timely basis by JPC transaction.
8 SUMMARY
The basic object of using the University credit card is to reduce administration, but we also need to maintain the appropriate controls as given in this document.
The University reserves the right to withdraw the card if the cardholder does not follow the established procedure and may face appropriate disciplinary action.
The University continues to search for new ways to improve the way we conduct our business. Your use of the University credit card in conducting your daily business can help significantly reduce the number of transactions we process for payment each month. If you have any questions about these procedures or need additional information, please contact the Purchasing Office.
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