Finance

“Monthly Credit Limit”

the maximum amount of charges that can be made against the government credit card in one monthly accounting period.

“Government

the one credit card issued under an approved agreement between the Government and a selected credit card company specifically to an individual named on the card, for purchasing items directly for Government business such as goods and/or services including travel.

“Transaction-level limit”

the maximum value of any individual transaction that may be charged to the card or the type of transaction that may be charged to the card. For example, an individual may be issued a “gas only” card, which will have a low transaction threshold and be subject to a restriction on transaction types.

The Government may assign/issue a Government Credit Card to a public officer with the following restrictions:

a)   The card is to be used exclusively for travel. Government supplies less than $5,000 may be purchased in extra-ordinary circumstances however, an effort must be made to obtain approval in advance; or,

b)   The card is to be used exlusively for procurement purchases. $5,000 will be the transaction-level limit (default). Higher amounts will require Assistant Comptroller General approval; or,

c)   The card may be used for both travel and procurement purchases subject to the limitation under 4.1 (b) above.

Deputy Ministers and the Chief Executive Officers of public agencies or their designated credit card administrators shall:

a)   Ensure that only public officers ordinarily tasked with purchasing supplies or services under $5000* are issued a GCC;

   *No single purchase transaction may exceed the $5,000 per transaction or $50,000 monthly credit limit unless pre-approved by the Department Director of Finance (or equivalent) and Assistant Comptroller General or designate.

b)   Ensure all credit cards are secured while in Departmental custody;

c)   Establish systems to assign credit cards including authorization for expenditure and contract authority under the employee’s specimen signature record (see FAM 1801) to be completed in advance of card distribution and completion of Appendix A (Cardholder Terms and Conditions, which is to be signed at the time the card is disbursed).

d)   Ensure employees, who transfer departments/public agencies, terminate employment or misuse their GCC promptly return their card to the department card administrator;

e)   Monitor and maintain adequate records to account for the distribution and use of credit cards;

f)   Charge all credit card purchases and related expenses to an appropriated or special purpose fund under their department’s/public agency’s budget , taking responsibility to ensure that the correct financial coding is used; and,

g)   Perform monthly credit card billing reconciliations including resolving any discrepancies or disputed items.

Cardholders shall not personally accumulate benefit points from vendors and/or receive a real or perceived personal benefit from their purchases.

A Government credit card may be used to obtain cash with the pre-approval of the Comptroller General or their delegate for international travel only and with specific restrictions.

Government Credit Cards (GCC)

The GCC may be used for travel related purchases including transportation and accommodation. However, employees may not use their cards for reimbursable expenses such as meals and incidentals purchased while on approved duty travel. All transportation and accommodation charges must be substantiated and pre-authorized.

No GCC single purchase may exceed $5,000 except with the approval of the Comptroller General or their delegate.

Where payments exceeding $5,000 have been approved, payment by GCC must have been made in accordance with the Government’s standard procurement and contracting regulations and policies.

The Government and specific Government related entities (in accordance with the Reciprocal Tax Agreement with the Government of Canada) do not pay the cost of the Goods and Services Tax (GST) nor Harmonized Sales Tax (HST) unless the cost is unavoidable (e.g., when reimbursing a duty traveler for out-of-pocket meal expenses or replenishing a petty cash account). A public officer shall complete, sign, and issue a GST/HST Exemption Form whenever any purchases are made using the GCC.

The completed and signed GST/HST Exemption Form must be issued to the vendor at the same time the GCC purchase is made, providing one separate Form for each separate purchase. The GST/HST Exemption Form is to be supplied with each card issued. The Form may be sent via email, fax or Canada Post if it is impractical for the purchasing officer to issue it in person, provided the vendor agrees with the arrangement. (See Section 5, Guidelines).

Every GST/HST Exemption Form must be completed with the following information:

a)   The purchase date;

b)   The vendor’s name;

c)   The purchase amount;

d)   The clearly printed name of the purchaser; and,

e)   The purchaser’s signature in the signature block, certifying that the purchase is not subject to GST/HST.

(The back of the GST/HST Exemption Form identifies which Government related entities are not subject to GST/HST.)

Each credit cardholder shall verify and certify the transactions and charges on their monthly activity statements. Original receipts must always be obtained and retained to justify charges that relate to approved purchases.

Cardholder signatures are required on the body of their statement for certification.

The authorizing supervisor or manager will confirm that the charges are justified and appropriate by their signature in addition to their clearly printed name and date on the body of each cardholder statement.