|BACKGROUND AND DEFINITIONS|
|The Tasmanian Government Card (TGC) achieves efficiencies through the rationalisation of ordering, authorisation, reconciliation and payment procedures, particularly for low value purchases. Agencies are not compelled to use the TGC. However, they should choose the most cost effective mode of payment.
- The major benefits arising from the use of the TGC include:
- generating productivity gains to agencies and the Government as a whole;
- allowing the Government’s suppliers to receive speedier payment;
- reducing the paperwork associated with the purchasing and payment process for both the Government and its suppliers; and
- reducing the number of payments processed by agencies.
For the purposes of this Instruction:
Cardholder means an employee who has been issued with a TGC; and
Service provider means the Westpac Banking Corporation (Westpac).
|USE OF THE TGC|
|(1)||The TGC shall be used by cardholders only for procurement, including travel.|
|(2)||Use of the TGC is mandatory for all applicable payments under $1 000.
Agencies must identify and document appropriate applicable payments for payment by the TGC within their agency.
When determining what constitutes an applicable payment, an agency should take into consideration internal management and operational needs as well as any impacts on overall procurement strategy, the cost of any applicable merchant fees and impact on payment terms.
Within this context, applicable payments may include such matters as:
- office travel, accommodation and food services (those not considered entertainment);
- education and training;
- ad hoc repair and maintenance services;
- retail and wholesale purchases (eg grocery, hardware stores, office supplies and consumables); and
- couriers, printing services and information media.
|(3)||Subject to paragraph (4), a Head of Agency shall determine an upper limit for each cardholder, above which no single transaction is to exceed.|
|(4)||The Head of Agency may, on a case by case basis, approve an increase of the upper limit of a single transaction to $10 000 for domestic travel by the Head of Agency or officers at the Senior Executive Service level or equivalent, or $20 000 for overseas travel by the Head of Agency or officers at the Senior Executive Service level or equivalent.|
|(5)||The TGC shall not be used in the following circumstances:|
|(a)||to make cash withdrawals;|
|(b)||for entertainment purposes, except where authorised in paragraph (7);|
|(c)||to purchase fuel (for which there is a separate contract card already available);|
|(d)||for the payment of invoices, correctly rendered by suppliers, after the due date for payment;|
|(e)||for the payment of fines; and|
|(f)||for personal transactions, even if it is the cardholder’s intention to immediately reimburse the private expenses.|
|In instances where a cardholder is undertaking duties in a remote area and the contracted government supplier for fuel does not have an outlet within a reasonable distance, a fuel card for an alternative supplier may be requested from the Government’s fleet manager.|
|(6)||The TGC shall not be used for interagency payments other than where, after taking into account the merchant fee, the overall administrative cost to both parties in making small value interdepartmental payments by TGC is less than the costs of direct credit processing, invoicing and receipting.|
|(7)||The TGC shall be used for entertainment purposes only for official business, by the Head of Agency and officers at the Senior Executive Service level or equivalent, with the prior approval of the Secretary of the Department of Treasury and Finance.
The Head of Agency should write to the Secretary of the Department of Treasury and Finance and formally request approval for a cardholder to use a card for entertainment purposes. As authorisation may be granted to an individual officer in accordance with the office they hold, the request should specify the name and Senior Executive Service level or equivalent of each officer for which approval is being sought.
The Head of Agency should note the following in regard to any authorisations granted:
- officers authorised to incur entertainment expenses cannot delegate authorisation to another cardholder;
- if an authorised officer moves to a different agency, the previous authorisation to incur entertainment expenditure is not transferable; and
- authorisation to use a TGC for entertainment purposes cannot be gained by including an authorisation statement in a contract of employment.
The Head of Agency should ensure that each officer authorised to use a TGC for entertainment purposes understands what constitutes entertainment. In accordance with the Fringe Benefits Assessment Act 1986, Attachment 2 provides guidance regarding the definition of entertainment, together with examples. This document should be provided to officers upon gaining authorisation to use a TGC for entertainment purposes.
|(8)||Each purchase for entertainment purposes using the TGC must be authorised at Deputy Secretary or the Head of Agency level.
Attachment 1 provides an Entertainment Declaration template for use by authorised officers to obtain endorsement for entertainment purchases.
Policies and Procedures in Agencies
|(9)||The Head of Agency must ensure the effective, efficient and appropriate use of the card facility within an agency. The Head of Agency will determine how many TGCs are issued, to whom and for what purposes, including setting monthly credit and transaction limits.|
|(10)||The Head of Agency shall ensure that effective internal controls are maintained over the use of the TGC and shall issue instructions covering specific Agency policies and procedures that apply to the TGC. Unauthorised use of the TGC represents an unauthorised use of public monies.|
The Head of Agency should nominate an administering or controlling officer for the TGC who is responsible for:
Agency internal controls should ensure that:
- ordering, collecting and cancelling cards;
- updating policies and procedures;
- ongoing education and training of cardholders; and
- reviewing the operation of the card facility within the Agency, including reporting on its activities and ensuring that the TGC is cost effective.
- cardholders acknowledge their responsibilities in the use of the TGC. (Refer to Attachment 3 for a suggested acknowledgement form);
- new cards are signed immediately by the cardholder;
- lost or stolen cards are reported immediately;
- cardholder acknowledgements are reconstituted upon the creation of new agencies;
- all TGC transactions are accounted for, monthly statements are reconciled and transactions are recorded in the general ledger on a timely basis;
- transactions are in accordance with the Government’s procurement policies;
- disputed transactions are reported immediately, and that subsequent action by the service provider is followed up; and
- all TGCs are retrieved from separating employees before they leave the Agency.
|(11)||The cardholder shall obtain appropriate supporting documentation in relation to each transaction.
For GST purposes, the cardholder shall obtain a valid tax invoice as supporting documentation for each transaction. For transactions less than $75.00 in value (not including GST), cash register dockets or receipts constitute appropriate supporting documentation if a tax invoice is not readily available.
In the absence of a tax invoice or original receipt, the cardholder shall provide sufficient information regarding the transaction to satisfy an authorising officer who is appropriately delegated by the Head of Agency. The supporting information should include details of the transaction purpose, date, time, amount and vendor name.
Every attempt should be made to obtain formal original documents in support of transactions. The use of photocopies of documents should be avoided wherever possible. If, in a particular circumstance, photocopies are used as supporting documentation, they require a high level of authorisation and particular care needs to be made to ensure that payment is not made more than once for any particular transaction.
Where purchases are made in connection with official travel, the cardholder should be aware that transaction procedures and the availability of supporting documentation may vary in other countries.
|(12)||TGC statements must be authorised for reimbursement to the Service Provider by an officer with appropriate authority. This authority may be delegated by the Head of Agency.
No cardholder may authorise reimbursement for a statement to which that cardholder is a party.
Service Provider Contacts
|Information regarding the conditions offered by the Service Provider relating to the TGC is available in:
- Westpac Purchasing Card – Administrator Manual
- Westpac Purchasing Card – Customising the Administrator Manual
- Westpac Purchasing Card – Cardholder Manual
- Westpac Purchasing Card – Customising the Cardholder Manual
These manuals can be accessed via http://www.purchasing.tas.gov.au/contracts.
|TI 705 Attachment 1 - Entertainment Declaration|
|TI 705 Attachment 2 - Entertainment: Definition and Examples|
|TI 705 Attachment 3 - Acknowledgement by Cardholders|