Calrex Incorporated - credit card applications

This policy covers the use of CALREX Industries corporate credit cards and outlines the internal control mechanisms and rules of use.

Credit cards are an efficient method of paying accounts and are not an alternative source of funding. In most cases, payment to suppliers will be handled directly by the Finance Department.

Requesting a credit card

The National Bank is our exclusive supplier; no other provider’s credit card will be approved for issue to staff members. Requests for the issue of new corporate credit cards must be in writing and must identify the need for the issuance of a credit card and must clearly identify why other forms of payment are not convenient or not possible. The issue of new credit cards requires the written approval of the Director of Finance and Corporate Services and must be countersigned by the Chief Executive.

Limits

If approved, the card will be issued in the name of the employee requesting the card. An authorised credit limit will be placed on the card. The first issued card will be temporary, but requests for a permanent card will be considered after three months. Please note that a permanent card will be issued after consultation with the Director of Finance, and in extreme cases may require an interview.

Use of the card

The credit card is intended to allow employees to pay for goods and services incurred on behalf of the institute where alternative methods of payment are not convenient or possible. Applicants for a credit card will be required to sign a policy agreeing that the card will not be used for personal or unauthorised expenses.

Drawing cash is not permitted unless the cardholder is away from the office and their home for a minimum of 2 nights at the time cash is required, and the cash is required for genuine institute business purchases. Cash withdrawal purchases must be supported by appropriate invoice and receipt documentation.

Invoices and receipts

Where the invoice supplied does not clearly indicate that the expenditure is business-related, the purpose of the expenditure should be noted on the invoice by the card holder. Where a credit card is used for the purpose of entertaining, a brief note is required on the invoice or attached to the invoice outlining the purpose of the entertaining, the names of the card holder's guests and their relationship with the institute.

Review of usage

Authorised staff from the Finance Department will undertake inspection of cardholder purchases on an ongoing but random basis. When additional documentation on a transaction is requested, this must be readily obtainable. In the event that the credit card policy has not been adhered to, the card(s) may be confiscated.

Those which have little or no usage in the preceding six month period may be cancelled. The results of the review together with recommendations will be presented to the Director of Finance and Corporate Services for action. Card holders who leave the employment of the institute will have their cards cancelled and must account for all outstanding expenditure incurred prior to their leaving date.

Abuse of the card

Institute credit cards are issued for genuine business expenditure only and must not be used for personal expenditure. Persons breaching this policy may expect withdrawal of the card, disciplinary action, including dismissal and, for wilful misuse, police action. In all cases of misuse, the institute reserves the right to recover any monies from the cardholder by appropriate legal means.