University of Glasgow - MyGlasgow - Finance: Pay and Pensions - Expenses

Corporate Credit Cards Policy

Introduction
Cardholders Responsibility
Allowable Expenditure Categories
Reason for limiting Expenditure Categories
Alternative Methods available to Purchase 'Other Items'
Compiance Regime
Travel Booking Policy
Rules and Regulations
Cash Withdrawl
Time Limit for Coding Transactions
Authorisation
Authorised Signatories Responsibilities
Role of System Administrator

1. Introduction

A corporate credit card is a credit card provided by the University’s bank, on behalf of the University of Glasgow. Corporate credit cards provide cardholders with a convenient means to meet necessary expenditure whilst on business travel. Expenditure incurred by means of the card is subject to the University’s Financial Regulations in the same way as expenditure incurred by other means. All
expenses incurred using the Corporate Credit Card should be in line with the existing University Expenses Procedures which can be found at Expenses Policy.

The card is available to those members of staff who undertake significant and regular travel on behalf of the University. Details of the application procedure can be found at the Procurement Office web page.

There are some significant additional considerations to consider in relation to corporate credit cards and these are outlined in this document.

The provision of a corporate credit card places on the cardholder a high degree of financial responsibility and duty to act with care. In addition to the Expenses Policy all applicants for a corporate credit card must familiarise themselves with the following policies:

Before a corporate credit card will be provided, all applicants must undertake and successfully complete the Anti-Bribery & Corruption training on Moodle, the training can be found at Anti-Bribery & Corruption Training.

It is important to recognise the limited use to which the card can be put (see Section 3) and the alternative means of purchasing “other” items of expenditure (see Section 5.0). Equally important is the need to comply with the set limits placed on certain categories of allowable expenditure (see sections 8.8 to 8.10 inclusive).

It is also important that cardholders comply with the various reporting requirements associated with these procedures including the need to ensure that each item on the corporate credit card statement is supported by a valid receipt and that an adequate explanation for the expenditure being incurred is provided (see section 8.2). Of equal importance is the requirement to provide the necessary supporting information in the event of business entertaining expenditure being incurred (see section 8.11).

Use of the card for personal items of expenditure is not allowed. The use of the card for personal expenditure will result in the withdrawal of the card and disciplinary action.

The card shall not be used to purchase any form of equipment (including computer items or accessories), books, subscriptions, conference, or internet purchases where there are alternative University purchasing procedures already in place e.g. departmental purchasing cards.

Any expenditure deemed non-allowable will be deducted from salary at the full discretion of the Finance Office.

Cards will normally have a maximum credit limit of £5,000. In certain exceptional cases, for example where an individual is frequently traveling on University business, a higher limit may be permitted. Any individual requiring a temporary increase to their card limit can request this by contacting the Finance Office a week before the trip is due to start. Cards will not have large credit limits (more than £5,000) on a permanent basis.

University corporate credit cards should not be used to withdraw cash under any circumstances.

The card may only be used by the person named on the card.

Please note that compliance with the rules and procedures is required of all staff, regardless of the level of seniority, and that effective follow-up action will be taken in the event of failure in this respect.

When a member of staff leaves the University, the University corporate card must be returned to the Finance Office at least 30 days before their leaving date. All expenditure incurred must be processed and approved prior to the cardholder leaving the University.

2. Carholders' Responsibilities

Upon receipt of the card, cardholders will be issued with a Personal Identification Number (PIN). A PIN is a numerical code consisting of four digits. The first purchase on the card will require the cardholder to insert their PIN number as part of the card provider’s validation process. The PIN will be sent by the card provider through an SMS message to the mobile telephone number recorded on the application. If the SMS text messages are not acknowledged, following the card provider’s third attempt, the cardholder will be sent the PIN number in letter format to the address listed in the card application form.

Cardholders have an over-riding duty to ensure that expenditure committed using the University’s corporate credit card is done so in accordance with the prescribed regulations governing the Scheme, which are specified in this document. Misuse of the card will be subject to disciplinary action.

Specific Responsibilities:

2.1 Cardholders must ensure that all expenditure is incurred wholly, necessarily and exclusively in the performance of the duties of employment.

2.2 Cardholders should note that any use of the card for personal expenditure will result in the withdrawal of the card and disciplinary action. Any expenditure deemed non-allowable will be deducted from salary at the full discretion of the Finance Office.

2.3 Cardholders must provide justification for all transactions and should expect to be challenged if they fail to do so. Cardholders must ensure that a clear explanation exists as regards the reason for every line of expenditure on the credit card statement. Cardholders must be able to demonstrate when, where and, vitally, why expenditure has been incurred.

2.4 Cardholders must ensure expenditure is limited to allowable categories. For reference, these
are:

Direct travel costs, e.g. rail and taxi fares and parking and car hire
Subsistence (including overnight accommodation costs)
Personal incidental expenditure
Business Entertaining (but not Staff Entertaining)

2.5 Cardholders must obtain appropriate receipts to support expenditure for every line of expenditure on credit card statements.

2.6 Cardholders must ensure that expenditure does not exceed the laid down limits regarding tipping and subsistence rates (subsistence in this context includes overnight accommodation rates). In the event of these rates being exceeded, the cardholder must provide a written explanation, providing a business reason for exceeding these limits and note that non-allowable expenditure of this nature may be deducted from salary at the sole discretion of the Finance Office.

2.7 Where business entertaining costs have been incurred, cardholders must ensure the following information is upload to the card provider’s online portal along with their receipt in support of the claim:

The name of the venue the event took place in
The names of each person present (including the cardholder)
Whether the individual is internal or the University or is a third party
THe purpose of the entertainment

2.8 All Corporate Card holders must register with the card providers online portal and set up access via a secure password. They must ensure that their individual password is not shared with anyone (not even the card provider or card administrator) and is kept in a secure place.

Once accessed, the University’s single sign on authentication will be enabled. Cardholders must comply with the card provider’s access authentication process. The cardholder must notify the card provider should they have any IT access issues that require resolution.

Cardholders need to log in to the card provider’s online portal and provide details of all purchases made. The transaction will typically appear on the card provider’s online portal within 24 hours of the transaction being made. The cardholder will see the transaction, the value, and the name of the merchant. The cardholder then needs to enter:

a clear explanation of the reason for the expenditure
the expense type
the sub-project that the purchase is to be charged to
a receipt and any other supporting documentation

2.9 All credit card expenditure must be coded by the employee within 2 weeks of receiving their corporate credit card statement. Cardholders do not need to wait for their statement to arrive. Instead they can log in to the provider’s online portal and code transactions on a more regular basis.

2.10 Each transaction, once coded by the cardholder should be “Submitted” and this will then be available to the Authorised Signatory for approval within the card provider’s online portal before being forwarded forwarding to the Finance Office Systems Administrator for final approval.

2.11 Cardholders must inform their line manager in the event of a dispute relating to any purchases. Cardholders must also report the disputed transaction to the card provider for investigation and record the transaction as “disputed” within the card provider’s online portal.

2.12 It is the responsibility of all cardholders to notify the card provider immediately if they discover that their card is lost, stolen or they have identified any misuse of the card. They must also notify the corporate card administrator at the same time.

2.13 In order to reduce and mitigate the risk of fraud, all corporate credit card holders must:

Sign their new card immediately
Ensure their home address and mobile telephone number is always up to date in the University’s HR/Payroll system (PeopleXD)
Ensure the corporate credit card is always kept in a secure place. Leaving cards on desks could pose a serious security risk for potential fraud or theft, and if lost or stolen due to negligence may result in disciplinary action
Never leave receipts and card number unattended
Never lend the card or card number to anyone to use, even a line manager
Never send card details via email
Never give out your PIN number to a third party when purchasing on the internet only use secure sites
Ensure that your PIN and Corporate Card are stored securely in a separate place

2.14 The Freedom of Information (Scotland) Act 2002 provides a general right of access to information held by the University. The University will always comply with the Act and will include the publication of expenditure against corporate cards held by the University upon request.

2.15 To obtain a corporate credit card, you must consent to your personal data being processed by the card provider in accordance with this Corporate Credit Card Policy. The University will be known as the ‘Data Controller’ of your personal data processed in relation to all card applications. Card holders are required to ensure that they have reviewed and understand the University Private Notice for Purchasing & Corporate Cards and the card provider’s privacy notice.

3. Allowable Expenditure Categories

The University’s corporate credit card must only be used for expenditure on specific items and must be incurred wholly, necessarily and exclusively for business purposes. The specific “allowable” expenditure categories are:

Direct travel costs, e.g. rail and taxi fares and parking and care hire
Subsistence (including overnight accommodation costs)
Personal incidental expenditure
Business Entertaining (but not Staff Entertaining)

4. Reason for limiting Expenditure Categories

Corporate credit card expenditure is restricted to the categories listed above because of HM Revenue & Customs (HMRC) regulations. Under these regulations, credit cardholders can incur such expenditure without a tax liability arising providing adequate controls exist to monitor expenditure. Using the corporate credit card to incur items of expenditure out-with the allowable expenditure categories puts the University at risk of non-compliance and also compromises the University’s purchasing and financial regulations.

5. Alternative Methods available to Purchase 'Other Items'

There will undoubtedly be valid business reasons for wishing to purchase items not categorised as “allowable” under the Corporate Credit Card Scheme. In this event, cardholders must use the purchase order or the purchase card systems using approved suppliers. Purchases from other University departments must be made by journal transfer.

Cardholders must not use their card for any type of expenditure where there is already an approved University procedure e.g. booking domestic and international flights and hotel accommodation, and other travel related requirements. All bookings must be made with the University’s travel management provider.

6. Compliance Regime

Corporate credit card expenditure is subject to the same policies, rules and regulations as apply to the University’s expenses reimbursement system.

7. Travel Booking Policy

The University’s Travel Booking Policy can be viewed at the Procurement Office web page. The policy covers all aspects of business travel, including matters such as optimising cost, health and safety, insurance, and authorisation of expenditure regarding mode and class of travel. This statement must be read in conjunction with these conditions of use and operational procedures.

The web page also contains details of current travel providers, both domestic and international, as well as details of the University’s Travel Insurance.

8. Rules and Regulations

The following rules and regulations govern the running of the Scheme, and all cardholders are expected to comply with them, irrespective of level of seniority.

8.1 Costs must be minimised without impairing the efficiency of the University and unnecessary expense must be avoided.

8.2 Appropriate receipts must be provided for every line of expense on the credit card statement. Failure to provide appropriate receipts may result in that expenditure being deemed nonallowable and subsequently deducted from salary at the full discretion of the Finance Office.

A receipt must be provided which includes details of what was purchased; the date the item was purchased; the amount paid for each item and the total amount paid; and the supplier’s name and identifying information.

The purpose of obtaining receipts containing the criteria above is to provide objective evidence that an item or service was obtained and paid for by the person.

If a receipt does not provide the required information, then the information should be recorded by the cardholder and provided along with the receipt.

Where a receipt is unavailable the card provider’s online portal provides a “Declaration Form” that must be downloaded, completed by both cardholder and the Authorised Signatory, and uploaded back into the portal in lieu of a receipt.

8.3 Cardholders have an obligation to provide clear and detailed explanations and documentation for all corporate credit card expenditure as a matter of routine but must also comply with any request for additional information from the Authorised Signatory or Scheme Administrators.

Cardholders must ensure that a clear explanation exists as regards the reason for every line of expenditure on the credit card statement – where necessary a written explanation may be included when uploading documents to the provider’s online portal.

8.4 The card should not be used to incur expenditure on behalf of another member of staff.

8.5 Parking costs incurred while traveling on business are legitimate travel costs. Parking fines are not a legitimate business expense and should not be charged to the University by credit card or in any other manner.

8.6 Car hire should be considered where the use of public transport is impractical or not appropriate. If the corporate credit card is used for car hire, cardholders are reminded that no personal use of the car is permitted.

The corporate credit card may be used to purchase fuel for hire cars (but not private cars) and receipts must be provided. In this instance there will be no need to complete a mileage claim, as this journey will not be claimable. Full details of the journey undertaken must be provided when coding the transaction on the card provider’s online portal.

8.7 Credit card insurance or any other form of insurance must not be purchased by cardholders except for UK car hire of less than 3 days where, on these occasions, the car hire company’s insurance should be taken out along with any insurance waiver that reduces the level of excess payable. For UK car hire of 3 days or more you should contact University Transport Services to
ensure appropriate insurance is in place.

8.8 “Subsistence” is the term used to cover the costs of drinks, snacks and meals purchased and consumed during the course of a business journey. Allowable expenses under this category include the cost of a meal, the cost of a reasonable level of refreshments (both alcoholic and non-alcoholic) taken with the meal, and refreshments such as tea, coffee and/or soft drinks between meals.

Two rates apply.

Maximum Daily Rate (A)
Employees may claim up to a maximum of £20 per day for each day on which they purchase snacks, meals, etc. whilst away from both home and their normal place of work, in instances where there is no requirement for an overnight stay.

Maximum Daily Rate (B) (Overnight Stay)
Employees may claim up to a maximum of £60 for each day on which they purchase meals, snacks, etc. whilst away from both home and their normal place of work, provided there is a requirement for an overnight stay.

These limits are the maximum recommended rates and should only be exceeded in the event of a supportable business reason being provided in writing. Receipts must be provided in support of all subsistence claims.

8.9 It is not always necessary to tip; a service charge may have already been added or the service may not have been acceptable. In the event however of giving a tip to a service provider, the tip should NOT exceed 10%.

8.10 Personal Incidental Expenditure - Employees staying away from home overnight on business often incur minor expenses of a personal nature (for example, private telephone calls). Since these expenses are not incurred wholly in the performance of employment duties such expenses would not normally be allowable against tax. However, HMRC provide a concession that allows certain claims for what they term as 'incidental overnight expenses' to be reimbursed without the need to deduct tax. Currently the rates are £5 for every night spent away on business in the UK and £10 for every night spent away on business outside the UK.
Note: these amounts are limits and not allowances. Receipts in support of 'personal incidental expenditure' must be provided where it would be reasonable to expect them.

Please note that incurring personal incidental expenditure up to HMRC limits specified is not an automatic right given to the cardholder and receipts must be supplied to support any such expenditure.

8.11 Entertainment expenses incurred “wholly, exclusively and necessarily” in the performance of an employee’s duties will be reimbursed on production of receipts. At least one third party must be present at a meal, function, etc. for it to qualify as ‘business entertaining’. Entertainment includes hospitality of any kind, not merely restaurant meals.

Staff entertaining costs are not allowable.

When entertaining has occurred, cardholders must, as well as providing a receipt for the expense, provide a supporting statement detailing the business case in the “Reason” field of the card provider’s portal. It is a prerequisite that the cardholder provides additional Information in relation to the expenditure.

The following information must be provided as additional Information in support of the claim:

The name of the venue the event took place in
The names of each person present (including the cardholder)
Whether the individual is internal to the University or is a third party
The purpose of the entertainment

9. Cash Withdrawals

Cash withdrawals are NOT permitted.

10. Time Limit for Coding Transactions

Cardholders must ensure that coding of their transactions on the card provider’s online portal is completed within 2 weeks of receiving the statement.

Failure to comply may result in some or all the expenditure being charged to the cardholder. Persistent failure to comply may result in the withdrawal of the corporate credit card from the employee.

11. Authorisation

All corporate credit card expenditure incurred by each cardholder must, in addition to being coded by the cardholder, be authorised by the cardholder’s line manager certifying the legitimate nature of the expenditure.

The ultimate responsibility for ensuring the regularity of the expenditure covered by the statement falls upon the person authorising the statement.

12. Authorised Signatories Responsibilities

The ultimate responsibility for ensuring the correctness of the expenditure covered by the corporate credit card statement rests with the Authorised Signatory.

Authorised signatories have an obligation to satisfy themselves that the expenditure being authorised has been committed in accordance with the rules and regulations underpinning the running of the scheme as outlined in this document (see sections 2.0 to 8.0).

12.1 In particular, Authorised Signatories must ensure that the cardholder has provided a clear explanation as regards the reason for every line of expenditure on the credit card statement. Therefore transactions in the card provider’s online portal must be viewed to ensure proper explanations and receipts have been provided.

12.2 Authorised signatories must ensure expenditure is limited to the allowable categories.

12.3 Authorised signatories must check that appropriate receipts have been provided to support expenditure for every line of expenditure on credit card statements.

12.4 Authorised Signatories must approve all eligible expenditure within the card provider’s online portal. If the Authorised Signatory is not convinced that the expenditure is eligible, then that line of expenditure should be marked as rejected.

The Authorised Signatory will be the cardholder’s line manager. Delegation of line manager authority can only occur in the event of prolonged absence from their university post. Delegation of manager authority can only go to the line managers’ manager to ensure the person authorising the statement is sufficiently senior to the cardholder to be able to legitimately question any aspect of expenditure appearing on the statement.

13. Role of Systems Administrator

The role of the Systems Administrator is to support the cardholders and authorised signatories by providing guidance on the rules, regulations and procedures underpinning the corporate credit card system. The Systems Administrator is also responsible for taking a pro-active role in monitoring and controlling expenditure.

13.1 To monitor on a regular basis the effectiveness of the control procedures and, where appropriate, to query and seek explanation for individual transactions.

13.2 Ensure that all credit card transactions are correctly coded on a timely basis.

13.3 In the event of non-coded transactions within the stipulated two-week period, an email will be sent to the cardholders and authorisers reminding them of their failure to comply with procedures. In the event of non-compliance within one week of the date of the email, the University reserves the right to seek reimbursement of the amount covered by the non-coded transactions and to suspend the use of the card.

13.4 The Pay Control Section will conduct the following procedures:

Note: For audit purposes, all checks that are required to be undertaken as described below must be evidenced.

13.4.1 A check must be made by Control Section staff to ensure appropriate receipts have been provided to support each line of expenditure on the credit card statement.

13.4.2 A check must be made by Control Section staff to ensure that a proper explanation has been received for each line of expenditure on the credit card statement.

13.4.3 A check must be made by Control Section staff to ensure that specific expenditure limits i.e. subsistence, overnight accommodation, and tips, have not been breached without proper explanations being provided.

13.4.4 A check must be made by Control Section staff to ensure that in the event of expenditure on entertainment taking place, the requested additional information has been uploaded along with the receipt.

13.4.5 In the event of missing or incomplete data being supplied, or “non-allowable” items being included in a transaction, the transaction be rejected to the cardholder via the card provider’s online portal and an email explaining the reason for its rejection. The error or omissions highlighted should be corrected and the reasons for including “non-allowable” items given and the transaction resubmitted. Appropriate responses to questions asked and the resubmission of the transaction must occur within one week of receipt of the email from the System Administrator. Failure to do so will result in the University seeking reimbursement and suspending the card.

13.4.6 Instances of incomplete, missing or “non-allowable” items included on statements but not corrected in line with section 13.10 will be escalated to the Head of Pay & Pensions and the Deputy Director of Finance for further action. Actions and outcomes will be documented.

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Finance: Pay and Pensions