• Section 1 - Purpose
• Section 2 - Application & Scope - Exclusions or Special Conditions
• Section 3 - Credit Cards
• Section 4 - Petty Cash Accounts
• Section 5 - Cash Advances
• Section 6 - Management and Supervisory Responsibilities
• Section 7 - Documentation Required for Credit Card and Expense Claims
• Section 8 - Receipts
• Section 9 - Records Management 
• Section 10 - Audit 
• Section 11 - Fringe Benefits Tax
• Section 12 - Exceptions to this procedure 
• Section 13 - Non-Compliance
• Section 14 - Termination of Employment 
• Section 15 - Definitions

Section 1 - Purpose

(1) The purpose of this Procedure is to provide guidance on acceptable expenses, responsible expense behaviours and the process for expense management, including claiming, acquitting, and approving expenses incurred on a UOW corporate credit card and out-of-pocket expense claims.

(2) This Procedure seeks to ensure adequate controls to minimise risk and to ensure expenses incurred are not used for fraudulent or corrupt purposes.

Section 2 - Application & Scope - Exclusions or Special Conditions

(3) This Procedure covers expenses incurred on UOW issued corporate credit cards, out-of-pocket expense reimbursements, petty cash payments, and cash advances.

(4) This Procedure applies to:

1. all staff of the University;
2. students and visitors where the University is reimbursing or funding expenses.

(5) This Procedure should be read in conjunction with the supporting documents, procedures and forms.

(6) Cardholders and their managers and supervisors are responsible for ensuring that they act in accordance with the Purchasing and Procurement Policy and other relevant University policy documents, to ensure adequate controls are exercised to minimise the risk that corporate credit cards are used for fraudulent or corrupt purposes.

(7) The University Corporate Credit Card and Expense Management System (EMS) is an alternative purchasing and payment system that improves payment performance, simplifies clerical processes, provides more effective cash management, and enhances service delivery. The system is specifically designed for, but not restricted to, high volume but low value transactions.

Section 3 - Credit Cards

(8) Eligibility:

1. National Australia Bank is the University's exclusive credit card supplier. No other provider's card will be approved without prior approval of the Director Financial Services;
2. permanent and temporary UOW staff can apply for a UOW corporate credit card;
3. visiting or Honorary staff are not permitted to be issued with a UOW corporate credit card;
4. staff on secondment to another position within UOW must seek prior, written approval from their supervisors to use their corporate credit card during their secondment;
5. eligible staff can only be issued with one (1) corporate credit card;
6. to be eligible for a corporate credit card, a staff member must meet one (1) or more of the following criteria:
   1. travel frequently or internationally in the course of their duties (at least four (4) times annually);
   2. purchase significant volumes of minor goods and/ or services (at least $5,000 annually) for use by the University which otherwise could not be purchased in an effective and efficient manner using standard procurement processes (refer to the Purchasing and Procurement Policy).
7. one (1) card per area is permitted, with priority going to the most senior person. Exceptions can be applied for using a request form and requires the approval of the Faculty Lead.

(9) Limits:

1. each card will have a maximum credit limit of $2,500 and be for business expenditures only. Exemptions to this limit will be made on a case-by-case basis in accordance with the Delegations of Authority Policy. Exemptions can be temporary and/or for a one-off purpose only;
2. each card’s individual expense item limit is limited to the credit limit of the card;
3. cardholders must not use the credit card to obtain cash advances from any source.

(10) Applying for a corporate credit card:

1. applications for corporate credit cards are processed through ServiceNow. Applications are processed by the Accounts Payable Team in the Financial Services and Enterprise Data Division;
2. all corporate credit card applications will be verified for completeness and accuracy within the Financial Services and Enterprise Data Division prior to the ordering of the card. Applications that have not been accurately completed will be returned to the relevant authorised person or cardholder;
3. all cardholders must complete and sign an acknowledgment of understanding of the following documents: the Acceptable Expense Guidelines the relevant cardholders’ Responsibility statement issued by the Bank, the Delegations of Authority Policy, and the cardholder Agreement to govern the use of any corporate credit card;
4. all cardholders must complete an online training that outlines the requirements and UOW expectations of using a credit card prior to receiving the credit card and a refresher training every year.

(11) Cardholder Responsibilities:

1. in addition to verifying and reconciling transactions, cardholders must also:
   1. submit their corporate credit card transactions, in accordance with Delegations of Authority Policy, for approval;
   2. cardholders cannot authorise their own transactions or have a subordinate approve them;
   3. include in the reconciliation of each expense within the Expense Management System, transactional evidence to support all charges. An acceptable receipt for reimbursements of claimable business expenses on the corporate credit card is an original receipt; and 
   4. ensure descriptions of transactions sufficiently identify the nature and business purpose of the transactions.

(12) Renewal of Cards: 

1. cards that are due to expire will be reviewed by the Financial Services and Enterprise Data Division via a quarterly report to determine if the card holder still meets the above eligibility criteria;
2. old cards must be destroyed, and the replacement card signed by the cardholder. 

(13) Lost or Stolen Cards:

1. lost or stolen credit cards must be reported and cancelled immediately with National Australia Bank by the cardholder. The Financial Services and Enterprise Data Division must also be notified as soon as possible via ServiceNow.

(14) Reconciling Credit Card Transactions:

1. credit card expenditures must be reconciled in the EMS within 10 days after the end of the month of the expense being incurred;
2. if expenses are not reconciled and submitted for approval within this time frame the card may be temporarily suspended;
3. holders of credit cards will be reminded on a regular basis of outstanding transactions on the card; however, it remains the cardholder’s responsibility to account for the transactions incurred on a card within the policy timeframe.

(15) Disputed Transactions:

1. it is the cardholder’s responsibility to dispute transactions that may have been erroneously charged to a credit card;
2. disputed transactions must be noted within EMS and resolved with the supplier/merchant and the Bank by the cardholder. The cardholder must notify the Bank immediately for resolution, and Financial Services should be informed;
3. if, after disputing a transaction, the charge is ultimately payable, the transaction must be reconciled and acquitted. If the transaction is not acquitted, the expense will be charged to the cardholders’ default project number;
4. in addition to other transaction reviews, the number of disputed transactions will be reviewed from time to time to ensure the cardholder is using the card appropriately and not exposing the card to unnecessary risk of misuse or fraudulent transactions.

(16) Suspension or Cancellation of a UOW corporate credit card:

1. if Credit Card expenditures are not reconciled within the prescribed time or the Financial Services and Enterprise Data Division have not received a plausible explanation, the credit card may be suspended or cancelled. The Cardholder’s default Project number or department account may be debited for the amount outstanding;
2. continued or repeated non-compliance with these procedures will result in cancellation of the card;
3. if a card has been cancelled due to non-compliance with these procedures and transactions have not been reconciled by the date of cancellation, the card holder will be held personally liable for unreconciled expenses;
4. a card which has had no approved transactions or activity for six months may be cancelled;
5. the Chief Financial Officer is responsible for approval of card suspension or cancellation.

Section 4 - Petty Cash Accounts

(17) Petty Cash accounts may be available for use in areas where small cash reserves are warranted (for example, where there is high volume interaction with the public, such as the Science Centre and the Early Start Discovery Space).

(18) The limit is currently $100 for each petty cash transaction.

(19) Establishment and appointment of custodians is as per the Delegations of Authority Policy.

(20) Petty Cash accounts may be revoked or cancelled as per the Delegations of Authority Policy.

(21) An area receiving a Petty Cash account must designate one staff member as the main custodian of the account. The custodian is responsible for safekeeping and proper use of the account. Changes to the Custodian must be approved as per the Delegations of Authority Policy.

(22) The Financial Services and Enterprise Data Division may cancel a petty cash account when no activity has occurred for a period of three months.

(23) Cash must always be kept in a lockable cash box. When not in use, petty cash must be stored under lock and key, preferably in a steel cabinet (e.g., stationery or filing cabinet). Only the amount of cash genuinely needed should be kept on hand.

(24) Money lost because the custodian has failed to safeguard the account or allowed it to be improperly used is the custodian's liability and must be repaid by the custodian. Money lost due to circumstances beyond the control of the custodian is repaid from the Faculties/Unit's budget or other available operating funds.

(25) Any custodian who has two losses of funds in any two (2) year period will have their control of the float terminated and will be prevented from controlling that float in the future.

(26) Petty cash systems will be the subject of regular audit (in the format determined by Internal Audit) and may occur without notice. Custodians will be required to submit recoups on a regular basis (at least once a month, regardless of the number of transactions during that month) to ensure that the account balances.

Section 5 - Cash Advances

(27) Cash advances will be issued on an exceptional request basis for incident expenses only.

(28) An application is to be made to the Chief Financial Officer stating reasons and providing justification for the amounts requested.

(29) The amount of cash advance requested should be the minimum necessary to cover anticipated incidental out-of-pocket expenses.

(30) Cash advances cannot be issued for costs that can be prepaid, prearranged through invoice, or charged on UOW credit card.

(31) Request for payment of cash advance must be made through the University Expenses Management System. If the advance is related to travel, to ensure timely payment, the application and approval should occur at least seven (7) days before travel commences.

(32) Acquittal of cash advance must be settled within 30 days of return from a trip and include receipts/invoices.

(33) Any unused portion of the allowance must be repaid to the University in Australian Dollar.

(34) It is the responsibility of the employee to convert any unused foreign notes and coins before settlement.

(35) An employee may have only one Cash Advance outstanding at any given time.

Section 6 - Management and Supervisory Responsibilities

(36) A staff member must not authorise their own transactions.

(37) The staff member’s manager/supervisor is responsible for verification and approval of all expenses.

(38) Approvers should action (approve, reject, request more information, etc.), within 14 days of the transaction being submitted by the staff member.

(39) The manager or supervisor is responsible for ensuring transactions are business related and that the claimant has supplied supporting documentation. Any unusual transactions must be followed up with the cardholder immediately. Suspected breaches of policy must be referred to the Financial Services and Enterprise Data Division without exception.

(40) Sub-delegation of these responsibilities is not permitted under the Delegations of Authority Policy. While managers or Supervisors may delegate administrative processing of approvals to another staff member (for example, an administrative assistant), the responsibility for ensuring credit card transactions are verified and approved remains with the manager or supervisor. 

Section 7 - Documentation Required for Credit Card and Expense Claims

(41) All transactions should be reconciled with appropriate documentation to substantiate expenditure, including business purpose. A valid tax receipt, invoice, or equivalent should be attached for each transaction.

(42) The cardholder must retain all original documentation (receipts and invoices) detailing any applicable GST.

(43) Acquittal of transactions should ensure descriptions sufficiently identify the nature and purpose of the transaction (including, for example, in the case of meals, who the meal was for). If this is not provided, the approver shall not approve the expense until the information is attached.

(44) In the event a receipt is not available or lost, a statutory declaration can be made to support the transaction. The absence of a receipt does not satisfy a reasonable explanation for not acquitting and reconciling transactions within the required timeframe. Failure to provide receipts or a credible explanation for the unsupported expenditure may result in an automatic debit from the Unit’s housekeeping account two (2) months after the end of the month the transaction occurs in.

(45) Reimbursement for return of goods and/or services must be credited directly to the card account or the cost coding of the original transaction.

(46) Staff are responsible for ensuring that their purchases meet the University’s Workplace Health and Safety requirements.

Section 8 - Receipts

(47) Transactions made using credit cards will upload automatically into the Expense Management System. 

(48) Evidence for all credit card transactions (for example, receipts, invoices) will be retained as an electronic record within the Expense Management System. Retention outside of the Expense Management System will be deemed as not complying with these Procedures or for audit purposes. 

(49) Where a staff member has misplaced or lost a receipt of invoice in relation to a credit card transaction, a statutory declaration must be made, and this declaration loaded into the Expense Management System as evidence for the transaction. 

Section 9 - Records Management 

(50) All documentation associated with the application for a corporate credit card will be maintained within the University’s Expense Management System. All receipts must be electronically lodged within the system.

(51) All acquittals and approvals must be made within the Expense Management System and accompanied by the electronic image of the receipt or supporting document.

Section 10 - Audit 

(52) Random audit of cardholder purchases will occur on a regular basis. In addition, Internal Audit and external auditors will carry out audits from time to time.

Section 11 - Fringe Benefits Tax

(53) Expenses charged to corporate credit cards may be subject to fringe benefits tax. This generally applies to meal and entertainment expenses. Guidance on what meal and entertainment expenses may be subject to FBT can be found on the University Intranet: Guidance on FBT.

Section 12 - Exceptions to this procedure 

(54) Deviation from this procedure may be necessary in exceptional circumstances.

(55) Where this occurs, the staff member must seek approval of the exception from the Chief Financial Officer or delegate. Such approval is required to be attached along with the transaction supporting documentation. 

(56) To facilitate the approval, the staff member must do the following: 

1. summarise why the expenditure is a legitimate UOW business expense and arrange for it to be signed by the head of school or equivalent;
2. submit for approval to the Chief Financial Officer or delegate;
3. once this is approved by the Chief Financial Officer or delegate, ensure a copy of the approval is kept with the supporting documentation for this transaction and electronically attached in the Expense Management System.

Section 13 - Non-Compliance

(57) In all cases of misuse, the University reserves the right to recover any monies from the cardholder. The cardholder acknowledges authorisation for the University to recover, from their salary, any amount incorrectly claimed. 

(58) Transactions will be reviewed by the Financial Services and Enterprise Data Division on a random basis to ensure compliance and identify any breaches.

(59) Any non-compliance suspected of being intentional will be escalated for further investigation and disciplinary actions.

(60) Improper or unauthorised use of University funds may result in the individual being held liable for expenditures, termination of an individual’s access to monetary accounts, and/or disciplinary action.

Section 14 - Termination of Employment 

(61) Prior to departure or termination of duties, the cardholder must acquit all expenditures on their Card account.

(62) The card must be surrendered upon termination of employment to the Financial Services and Enterprise Data Division.

Section 15 - Definitions