HomeMy WebLinkAboutCBRM Corporate Credit Card Policy Cape Breton Regional Municipality
320 Esplanade
Sydney,NS BIP 7139
Title CBRM Corporate Credit Card Policy
Implementation Date Approved by Council January 21,2025
Revision Date
1. Title
CBRM Corporate Credit Card Policy.
2. Legislative Authority&Related Policies
The Nova Scotia Municipal Govemment Act
Department of Municipal Affairs and Housing, Financial Reporting and Accounting Manual:A Regulation
pursuant to the Municipal Government Act Sections 451 and 520
CBRM Employment Expense Reimbursement Policy
Code of Conduct for Elected Officials of the Cape Breton Regional Municipality
CBRM Procurement Policy
3. Policy Statement
It is the policy of the municipality for staff and elected officials to use corporate credit cards in an appropriate,
consistent and authorized manner for the efficient and cost-effective purchased of goods and services.
4. Objectives
4.1. Define acceptable and prohibited uses of municipal credit cards
4.2. Prevent misuse or unauthorized expenditures
4.3. Facilitate timely and efficient payment of municipal expenses
4.4. Ensure adherence to municipal and financial regulations and policies
4.5. Minimize the risk of financial misconduct
5. Scope
This policy applies to all employees,as well as every reportable individual (elected officials, and CAO or
designate) of the Cape Breton Regional Municipality.
6. General Provisions
6.1. There are two credit card programs within CBRM: Purchase Cards and Travel Cards.
6.1.1. Purchase cards are used to purchase business-related goods and services in accordance with
the procedures governing the issue and use of the card,and in alignment with CBRM
procurement and expense policies.
6.1.2.Travel cards are used to coordinate travel and for travel related expenses e.g.,transportation,
accommodation and must be used in accordance with procedures governing the issue and use
of the card, and in alignment with CBRM expense policies.
6.2. Credit cards cannot be used by anyone other than the cardholder.
6.3. Credit cards should not be used for transactions that will circumvent municipal policies including, but
are not limited to:employment expense reimbursement policy, and procurement policies.
6.4. Purchase cards should not be used for travel-related activities; and travel cards should not be used
for purchases unrelated to travel.
CBRM Corporate Credit Card Policy 1
6.5. CBRM Employment Expense Reimbursement Policy provides additional information on allowable
and prohibited expenses.
6.6. Purchase card and travel card reconciliations must be completed monthly. Expenses that remaining
unreconciled may not be reimbursed at the discretion of the CAO.
6.6.1.Any credit cards not reconciled for more than two months,will automatically be suspended.
7. Allowable and Prohibited Expense Details
Purchase Card Allowable Expenses
• Single non-recurring purchase transactions not exceeding the cardholder's assigned limit
• Pre-approved training and/or conference or seminar registration expenses
• Emergency purchases as defined in Section 7.9.1 of the CBRM Procurement Policy
Travel Card Allowable Expenses
• Booking travel arrangements or accommodations
• Pre-approved training and/or conference registration expenses
• Fuel when travelling
• Emergency purchases as defined in Section 7.9.1 of the CBRM Procurement Policy
Prohibited Expenses—All Cards
• Personal (non-CBRM related) purchases of any kind
• Personal effects and services—claims for loss of personal effects, passports, medical and hospital
treatment, purchase of trunks, hand luggage,clothing,or other personal equipment,or services such
as shoeshines,valet or laundry services(unless the duration of stay exceeds one week or has been pre-
authorized as permissible. All others are evaluated on a case-by-case basis and requires actual
receipts).
• Capital equipment items
• Computer hardware and software,cellular phone,etc. unless written authorization is obtained from
the Director of IT and the CAO
• Furniture
• Personal or consulting services
• To make purchases on behalf of any other person
• Cash advances, or settlement of municipal accounts
• Gift cards*
• Travel expenses otherwise covered under the per diem as per the Employment Expense
Reimbursement Policy(meals and/or other expenses).
• Any good or service covered by a contract established by CBRM Procurement including materials,
repairs,and operations supplies
• Credit cards may not be used for settling another employee's expenses
• Individual purchases of alcohol will not be reimbursed. See Employment Expense Reimbursement
Policy, Section 13 Expense Details: Hospitality.
• Expenses not included within budgetary permissions.
• Other costs incurred for unofficial municipal travel and/or activities.
• Any good/material stocked in central warehouse including safety and protective equipment.
*The Mayor's Office, on occasion,purchases gift cards which require approval of the CAO.
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The purchase of prohibited items may be allowed,except personal use items, in emergency cases or where
approved for specific cardholders by the applicable issuing authority as outlined in Section 7 and with the
concurrence of the Chief Financial Officer or their designate. In the case of emergency purchases, approval prior
to purchase should be obtained where possible by the cardholder from the designated authorizing manager.
Appropriate explanation and justification must be attached to the cardholder monthly statement when submitting
receipts.
8. Allocation of Municipal Credit Cards
8.1. Each credit card will be issued to a specific person,who will remain personally accountable for the
use of the card. Each cardholder must sign a cardholder acknowledgement of use form as provided
by the Finance Department.
8.2. No more than one travel and one purchase card is issued per cardholder.
8.3. Any person eligible for a credit card may decline and instead complete expense claims in the CBRM
Expense Portal.
8.4. Credit cards are allocated to reportable individuals or employees of CBRM.Cards are issued based
on identified need and written approval must be provided to the Finance Department by the issuing
authority as outlined below:
9. Card Approving and Expenditure Authorization:
Cardholder Issuing Authority Expense Claim Authorizer
Employees Department Director Department Manager
Management Department Director Department Director
Directors Chief Administrative Officer Chief Administrative Officer,
Chief Financial Officer
Chief Administrative Officer Chief Financial Officer Chief Financial Officer
Mayor Chief Administrative Officer Chief Administrative Officer,
Chief Financial Officer
10. Transaction Limits
10.1.Transaction limits vary by department and role and are set in accordance with procedures of the
Finance Department and in coordination with the issuing authority.
11. Fraud,Misuse or Misappropriation of Municipal Funds
11.1.An irregular use in the expense claim submitted by an individual,or any other misuse or
misappropriation of public funds, may result in disciplinary and/or legal action, not excluding
termination.
11.2.Should there be suspected misuse or misappropriation of public funds,the following actions are to
be taken:
11.2.1. Bring the item the attention of the Chief Administrative Officer and the Chief Financial
Officer.
CBRM Purchase Card Policy 3
11.2.2. The CFO at the direction of the CAO reports suspicious activity and potential misuse of
funds to Council for their determination.
11.2.3. At the direction of Council,any file that has been reported may be referred to the
Department of Municipal Affairs and Housing and/or legal counsel for direction which may
result in referral to civil or criminal proceeding or other determination.
11.2.4. The credit card will be suspended until the matter is resolved to the satisfaction of the
CAO and CFO.
12. Roles and Responsibilities
Cardholder
• Completion of the acknowledgement of this policy and
• Overall responsibility for acceptable CBRM card use, safe storage, and access.
• The cardholder is personally accountable for all transactions made with the purchase card issued
in their name, and must not allow another person to use the card.
• Understanding and conformance to all CBRM's purchasing requirements.
• Obtain and retain sufficient support documentation to validate the expense(e.g., receipts and
invoices detailing the expense).
• Complete credit card reconciliation monthly for approval within the electronic system, including
the provision of:
■ Photos of receipts
■ Explanation of expenses
■ Correct coding
• Notify the Finance Department of any changes in name or contact details.
• Timely notification to the Finance Department of any technical difficulties experienced when
completing on-line statement.
• Manage"returns" portion of statement by using the same budget code that was provided for the
purchase.
• Contact the Card Issuer immediately if there are any issues with the card—such as lost or stolen,
no later than one day from the issue.
• Surrender credit card upon reassignment or leave of employ.
Issuing Authority
• Approve and place requests for new credit cards.
• Review requests for limits and provide rationale to finance for limit increase.
• Monthly approval of credit card statement
• Escalating any misuse of credit card.
• Notification to the Finance Department if an employee leaves area of direct responsibility e.g.,
job in another department
• Ensure cards are returned to Finance Department to be destroyed if individual leaves the CBRM
and notify Finance if the card is unable to be retrieved.
Finance
• Completion of application for credit cards.
• Distribution of new cards.
• Revision of limits if approved by authorizer.
• Notification to cardholder if any fraudulent activity is identified by credit card issuer.
• Cancellation of cards as direction by an issuing authority,CFO,or CAO.
• Providing support as required.
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• Conducting audits as needed to confirm compliance with policies.
• Payment of overall monthly corporate accounts.
• Communications to authorizers or cardholder on any discrepancies.
13. Policy Review Requirements
13.1 Annually;and
13.2 By January 31st immediately following a regular election held under the Municipal Elections Act.
14. CBRM Corporate Credit Card Agreement
14.1. The enclosed CBRM Corporate Credit Card Agreement must be signed by the cardholder prior to the
card being issued. The agreement recognizes that cardholders have read, understood and agree to
use the card in accordance with those policies related to the use of corporate credit cards.
14.2.Signed Corporate Credit Card Agreement forms will be kept on file in the Finance Department.
CBRM Purchase Card Policy 5
Cape Breton Regional Municipality
Corporate Credit Car Agreement F
rm
Department Work Location
Name of Employee Credit Card Number
Enclosed is your new Purchasing Card. Although this card is issued in your name,it is the property of the Cape
Breton Regional Municipality(the"CBRM"and must be used in accordance with the CBRM's policies,procedures
and guidelines.
By signing this Agreement you acknowledge that you have received the card indicated above,have read and
understood the CBRM Corporate Credit Card and Employment Reimbursement Expense policies,and agree to
comply with the following terms and conditions:
1. This card is provided to you based upon your need to purchase business-related goods and services in the
course of your employment with the CBRM. This card may be revoked at any time based on a change of
assignment or location. This card is not an entitlement nor is it reflective of your title or position.
2. This card is for business-related purchases only.Any use of this card for purchases of a personal nature is
strictly prohibited.
3. You are the only person entitled to use this card and you are responsible for all charges made against it.
4. Any unauthorized use of this card will be considered an improper use of public funds and will be subject
to appropriate disciplinary action.
5. This card must be used in accordance with all municipal policies, procedures and guidelines respecting
municipal purchasing and the use of cards as such policies, procedures and guidelines may from time to
time be issued and amended.
6. This card must be returned to your Department Director immediately upon request and, in any event,
upon your resignation, retirement or dismissal,at which time, no further use of this card will be
authorized.
As the holder of this card,you are responsible for its protection and safekeeping.If this card is lost or stolen you
are required to advise immediately,during working hours,the card provider and the Finance Department.
Signature of Witness Signature of Cardholder
CBRM Purchase Card Policy 6