Responsibility for policy: Chief Financial Officer
Approving authority: Vice-Chancellor
Last reviewed: May 2016
Next review date: May 2021
- This policy applies to all staff of the University of Waikato and other individuals who have been issued a University of Waikato PCard.
- The purpose of this policy is to set out the principles and processes that apply with respect to the issue and use of University of Waikato PCards.
- The following documents set out further information relevant to this policy:
Use of PCards
- PCards should be used as the method of payment for:
- Low value transactions - both continuing and one-off
- Travel expenses where the final costs are not yet established (accommodation and rental vehicles etc.) but excluding airfares
- Conference fees and associated expenditure
- Online purchasing (other than through the University's approved purchasing systems)
- Field trip expenses
- Cash advances while undertaking international travel
- PCards must not be used for:
- Personal expenses under any circumstances
- Goods or services where the University has a preferred supplier contract, without the prior written approval of the Chief Financial Officer or delegated authority
- Capital items, without the prior written approval of the Chief Financial Officer
- The purchase or payment of loyalty programme memberships (e.g. Koru Club)
- Information and communication technologies - including all software, other than purchases made by authorised Information and Technology Services staff
- Facility repairs and maintenance, other than purchases made by authorised Property Services staff
- Services attracting PAYE or withholding tax
- Purchases for staff that are subject to Fringe Benefit Tax (e.g. gift vouchers) without prior written approval of the Chief Financial Officer or delegated authority
- Koha, donations, scholarships or sponsorships
- Lease agreements
- Refuelling of personal vehicles while engaged on University business
- Expenditure on food and drink for staff meetings without prior authorisation by the relevant Head of School, Director or equivalent in accordance with clause 64 of the Procurement Policy
- Any expenses which may represent a breach of any University policy
- Cash advances within New Zealand
- All transactions made with a PCard are subject to:
- this Policy
- the PCard Application and Terms and Conditions Agreement signed by the cardholder
- the cardholder's PCard limit
- approval by the cardholder's designated approver.
- When using a PCard, users must observe high standards of ethical behaviour and exercise a high degree of integrity and accountability consistent with the principles set down in the Staff Code of Conduct.
- Staff who purchase goods or services using a PCard must adhere to the principle that if all relevant factors are equal, the University prefers to select goods or services that are less environmentally harmful.
- An approver who believes that a cardholder has misused a PCard must complete a PCard Misuse Form and submit it to the Procurement Manager, Financial Services, for investigation.
Authority to issue and control
- A PCard may only be issued by the Chief Financial Officer or delegated authority.
- The Chief Financial Officer has sole authority for approving the issuing bank.
- The Chief Financial Officer has sole responsibility for approving the Expense Management Tool (Fraedom).
Issue of a PCard
- Applications for a PCard are subject to the approval of the Chief Financial Officer on the recommendation of the relevant line manager and budget holder (if different positions).
- Subject to the approval of the Chief Financial Officer, a PCard can be issued to all permanent staff who have purchasing responsibilities and/or are required to travel on University business.
- Prior to a PCard being issued, the approved staff member must read and sign the PCard Application and Terms and Conditions Agreement; the approver, by approving the PCard application, also agrees to their responsibilities as the PCard approver.
- A PCard must be signed by the cardholder upon receipt.
- All cardholders must sign the PCard Application and Terms and Conditions Agreement on each occasion a PCard is renewed and otherwise at the discretion of the Chief Financial Officer or delegated authority.
- The PCard Administrator and other administrators of the Expense Management Tool (Fraedom) are not eligible for a PCard under any circumstances.
- A schedule of spending limits for cardholders is set out in the PCard Manual.
- Where the current credit limit is insufficient for the cardholder's immediate purchasing requirements, it may be temporarily or permanently increased at the discretion of the Chief Financial Officer or delegated authority following a recommendation from the relevant line manager.
Transaction approval limits
- A schedule of transaction approval limits is set out in the PCard Manual.
PCard cash advances
- Cash advances on a PCard may be approved only while the cardholder is undertaking international travel.
- All cash withdrawals are subject to:
- prior approval by the relevant line manager
- reconciliation in the cash expense module in the Expense Management Tool (Fraedom).
- Any cash advance not spent must be returned in New Zealand currency by repaying at the University Cashier at the Student Centre, or directly to the relevant PCard at any branch of the issuing bank; a receipt must be obtained for the amount repaid.
- A cardholder who has not reconciled and accounted for previous cash advances in the Expense Management Tool (Fraedom), will be denied further cash advances.
- Where a cardholder has not finalised cash advance reconciliation within two months after the cash advance took place, the University will treat this advance as a personal spend which must be reimbursed by the cardholder.
- Staff must not allow membership of any loyalty programme to influence their business decisions on behalf of the University.
Authority to waive the provisions of this policy
- Only the Vice-Chancellor and the Chief Financial Officer has authority to waive the provisions of this policy in individual cases.
Responsibility for monitoring compliance
- The Chief Financial Officer is responsible for monitoring compliance with this policy and reporting any breaches to the Vice-Chancellor.
- Breaches of this policy may result in any of the following actions:
- cancellation of a PCard
- the requirement that amounts determined to have been expended in breach of this policy be repaid
- reduction of a PCard limit for a period of time
- disciplinary action under the Staff Code of Conduct.
The term ‘School’ in this policy includes Faculties and the term ‘Head of School’ includes Deans.