Purchasing Card Policy

• comply with the requirements of this policy.
• use Pcards only for official purposes.
• ensure the safety and security of their Pcards at all times.
• obtain and retain relevant card receipts and other documents for all transactions. Official tax receipts are required for all transactions over $30 (inclusive of GST). Where this is not possible, provide alternative documents and/or explanation to sufficiently support the transaction. Any transactions without supporting documents will require a statutory declaration as part of the Expense8 acquittal process.
• ensure that the card’s transaction limit is not exceeded (purchases must not be split to negate single transaction limits).
• promptly acquit the transactions in Expense8 within 30 days of the transaction date.
• notify the card issuer immediately in the following circumstances:
  • loss or theft of the card
  • on awareness that an authorised transaction has occurred.
• notify Finance as soon as practicable in the following circumstances:
  • cessation of employment with the Department. All transactions must be acquitted and approved by the relevant manager prior to departure
  • where a card is no longer required because of a change in the cardholder’s substantive role or responsibilities
  • prolonged leave of absence (e.g., on personal leave or secondment)
  • loss or theft of the card
  • on awareness that an unauthorised transaction has occurred.

• all purchasing activities by direct reports who are cardholders.
• prompt review and action (approve/reject) of the transactions in Expense8 within 30 days of the transaction date, providing reasons for any rejections.
• notify Finance, as soon as practicable in the following circumstances:
  • where a card is no longer required because of a change in the cardholder’s substantive role or responsibilities
  • prolonged leave of absence (e.g., on personal leave or secondment).

• process Pcard applications and manage card issuance.
• administer card transactions in Expense8 and reconcile with SAP General Ledger.
• provide guidance and support on card usage and the Expense8 process.
• review card activity to ensure:
  • compliance with this policy, including imposition of card suspension and revocation in cases of non-compliance
  • identification of dormant or low use cards to recommend for cancellation.
• disable Pcards promptly when cardholders are on a prolonged leave of absence.
• instigate action where there is evidence of misuse (including possible unauthorised or fraudulent transactions).
• act as a point of contact between the Department and the card issuer.

A Pcard may be issued to Department staff who meet one or more of the following criteria:

• responsible for purchasing goods and services in the course of their duties
• travel frequently in the course of their duties
• travel overseas on official business.

All Pcard requests must be approved by a Senior Executive (PSSE Band 2) or equivalent.

For a new Pcard, the default transaction limit is A$10,000, and the credit limit is A$10,000 per month, except for where there is a specific business request to set the credit limit lower than the default monthly limit of A$10,000.

Requests to increase monthly credit limits above the set value must be made in writing to, and approved by, the Chief Financial Officer. The transaction limit cannot be increased.

A Pcard is simply a payment method, not a procurement approval mechanism. Before using a Pcard to make purchases, cardholders must ensure full compliance with relevant department policies and delegations.

Key delegations and policies to follow include:

• Procurement Delegations: establish requirements for the procurement of goods and services, including mandatory pre-approval from an authorised delegate who must not be the cardholder.
• Financial Delegations: sets the financial limit per transaction applicable to cardholders.
• Travel Policy: provides the parameters to incur expenses while undertaking official travel, including the use of Pcards for travel-related expenses.
• Gifts, Benefits and Hospitality Policy: provides guiding principles for giving or receiving gifts, benefits and hospitality.

Subject to the exclusions below, all purchases of goods and services must be made through NSW Government registered suppliers where applicable. Details of registered suppliers are available at https://buy.nsw.gov.au.

Pcards can NOT be used for:

• cash withdrawals, except where approved by the Secretary as part of an international travel request. Approved cash withdrawals are subject to the below limit:
  • A$200 per transaction
  • A$600 per month (billing cycle)
• purchase of an Information and Communications Technology (ICT) solution, including capital items, low value assets, and subscriptions for cloud-based services, without obtaining pre-approval by an authorised delegate under the Procurement Delegations instrument.
• purchase of alcohol, whether as part of a meal or otherwise, except where it is:
  • authorised under and complies with the Liquor & Gaming NSW Inspector Manual
  • written approval in advance by the Secretary or a Deputy Secretary

Evidence of the above authorisation or approval must be attached to the transaction in Expense8.

• regular or periodic payments, except where suppliers only accept Pcards. These should be arranged through a standing purchase order.
• purchase of goods or services which may result in personal benefits (e.g., frequent flyer points, reward programs, etc.).
• purchase of goods or services subject to whole-of-government arrangements. For example, airline tickets must be booked through the NSW Government contracted travel provider (FCM Travel) unless exempted under the Travel Policy.
• professional services. These services must be purchased using a purchase order raised for the full period of the engagement.
• payments related to Departmental motor vehicles except in emergency situations. Fuel should be purchased using cards provided with the vehicle, if available, while repairs and servicing should be arranged through the fleet management provider, SG Fleet.

When acquitting Pcard transactions in Expense8, full supporting documentation, including all receipts and explanatory notes, must be provided. Merchant copies of card transactions are not considered valid receipts.

Explanatory notes must contain sufficient detail to enable approving managers to confirm that the expenditure meets legitimate business requirements.

Where a transaction was incurred for or on behalf of Government officers and non-Government officers, supporting documentation must clearly identify the proportionate split of the costs. This is necessary to facilitate the calculation of any applicable fringe benefit tax (FBT) liability.

Pcard transactions may be rejected by managers for various reasons including:

• missing or incorrect supporting documents attached in Expense8
• purchase of goods or services of a kind that is not permitted by the Department
• purchase does not comply with the Department’s policies and/or delegations
• expenditure is more than the allowable limits (e.g., cost of a meal while travelling).

When a transaction is rejected, the cardholder is required to re-acquit and resubmit the transaction for approval by the manager. The reason for rejection must be addressed in the resubmission, For example, include or replace incorrect supporting document, or recode the transaction to a designated prohibited personal use general ledger account, where the purchase is deemed to be non-business related.

Cardholders must reimburse the Department for rejected transactions which are determined to be personal expenses in nature. Repayments are to be made directly to the cardholder’s Pcard via BPAY.

If repayment via BPAY is not possible, contact DCITHS Finance via DCITHS-pcards@dciths.nsw.gov.au to arrange for an alternative method.