GUIDELINES

Acquisition Cards

Policy Bulletin 151

POLICY OBJECTIVES

1. To provide direction for the administration and control of the acquisition card program.

AUTHORITIES

2. 2. Treasury Board Policy on Acquisition Cards;
Commissioner's Directive 350 - Materiel and Supply Management Services.

CROSS-REFERENCES

3. Guidelines 350-1 on Asset Management;
Financial Administration Act (FAA);
Treasury Board Hospitality Policy;
CSC Standards of Professional Conduct;
CSC Code of Discipline.

RESPONSIBILITIES

General

4. The Corporate Services Sector at National Headquarters shall determine the card-issuing financial institution to be used by the Correctional Service of Canada (CSC).

5. The Service shall designate a National Acquisition Card Co-ordinator, as well as Regional and Site Co-ordinators.

National Co-ordinator

6. The National Co-ordinator is responsible for:

1. establishing and communicating internal policies and procedures;
2. communicating internal and central agency policies and procedures to all Regional Co-ordinators;
3. monitoring and reporting on the use of the acquisition cards;
4. advising the Regional Co-ordinators or cardholders of any issues and/or concerns; and
5. ensuring that appropriate staff are made aware of the requirements.

Regional Co-ordinators

7. The following tasks shall be performed by the Regional Co-ordinators at Regional Headquarters and in operational units:

1. process all applications for cards, as well as maintain a register of all cardholders, and copies of signed Acquisition Card Acknowledgement and Receipt (form CSC 1095);
2. submit the applications to the issuing financial institution;
3. notify the issuing financial institution when an acquisition card is cancelled and retrieve the card from the cardholder;
4. advise the cardholders on their responsibilities;
5. monitor the use of the acquisition cards;
6. advise the Site Co-ordinators of any issues and/or concerns; and
7. report possible serious violations to the Regional Comptroller, the regional head of Materiel Management, the National Headquarters Manager of Contracting and Materiel Services and the Comptroller.

Site Co-ordinators

8. The Site Co-ordinator is responsible for:

1. processing card requests and submitting them to the Regional Co-ordinator for action;
2. distributing the acquisition cards;
3. advising the cardholders on their responsibilities;
4. advising the cardholders of any issues and concerns that were found in their procurement process or card use;
5. retrieving the card from the cardholder when no longer required, destroying it and advising the Regional Co-ordinator of the action taken;
6. advising the Regional Co-ordinator and the operational unit Finance officer of any cardholder termination of employment or transfer to another unit; and
7. authorizing or acquiring a copy of form CSC 0816, entitled "Departure Clearance for Employee/Contractor and Other", which all employees should get signed off when leaving the operational unit or Service.

Cardholders

9. The cardholders shall:

1. ensure the safety and security of the card (the individual to whom the card is issued shall demonstrate reasonable care to guard against any abuse or misuse of the card from an unauthorized person);
2. notify the issuing financial institution and the appropriate co-ordinator by telephone in the event of loss or theft of the card;
3. advise the appropriate co-ordinator upon his or her transfer to any other CSC operational unit;
4. return the card to the appropriate co-ordinator immediately upon termination of employment;
5. verify and reconcile monthly statements;
6. resolve with merchants or suppliers any discrepancies or disputed items;
7. process payments in accordance with the terms and conditions of agreement with the issuing financial institution and avoid incurring interest on overdue accounts;
8. contact the operational unit Asset Management Co-ordinator to ensure that all assets and attractive items purchased with the acquisition card are recorded in the Service's asset management system, as well as advise the store or receiving area staff of any delivery to the operational unit; and
9. ensure the policy on the goods and services tax (GST/HST) and the provincial sales tax (PST) is observed for all purchases made with the card.

Finance

10. Finance shall ensure purchases are done in accordance with departmental policy, notify the cardholder of any discrepancy and request additional clarification as required. All inappropriate use of the card must be reported to the Site Co-ordinator.

Materiel Management

11. Materiel Management shall ensure that all assets and attractive items purchased with the acquisition card, that they are aware of, are recorded in the Service's asset management system.

REQUIREMENTS

12. The CSC Standards of Professional Conduct is to be used as a guiding principle in the application of this policy. The CSC Code of Discipline is applicable to any employee who has been found to wilfully abuse or disregard this policy.

13. Staff may be authorized to use acquisition cards for the procurement of goods and services (excluding items listed in paragraph 19), within delegated procurement and expenditure initiation levels, where it is efficient, economical and operationally feasible.

14. Staff may be authorized to use acquisition cards to charge hospitality. Prior approval and the filing of the required information to support the expenditure is still required.

15. Cards may be used to make purchases by telephone or directly from the supplier for the acquisition of low dollar value goods.

16. While it is not necessary for the cardholder to have delegated expenditure initiation authority (FAA, section 34) to use the card, all purchases must be authorized by the budget manager.

17. A cardholder who is a budget manager and has made a purchase with his or her card can certify the invoice for payment under section 34 of the FAA.

18. Purchases shall be restricted to a maximum of $5,000 per transaction. The value of any single item shall not exceed $5,000. Acquisition cards shall not be used to split contracts or to make repeated planned purchases that are objectionable and reflect poor management.

PROHIBITED USES OF THE CARD

19. Acquisition cards shall not be used for the following:

1. procurement of agency personnel services;
2. fuel, meals, accommodation or other travel related expenses;
3. vehicle operating and maintenance expenses, excluding parts purchased by an institution garage operation for general vehicle maintenance needs;
4. cash advances;
5. personal purchases;
6. interdepartmental transactions with the exception of Corcan; and
7. Internet purchases (the card number must not be transmitted on the Internet).

20. The cardholder must not transfer or share the card with any other employee for purchases on behalf of the CSC.

21. Under no circumstances shall the cardholder personally accumulate benefit points from vendors.

22. All benefits or gifts received by any person as a result of the use of the card shall be given to the cardholder's operational unit and not be kept by the employee. All such transactions shall be reported in writing to either the Site, Regional or National Co-ordinator and applicable Chief and Regional Administrator of Finance, whichever is appropriate given the location of the transaction.

CAPITAL EQUIPMENT

23. For purchases of any items normally charged to capital (such as computers) or identified as attractive items, staff (i.e. the operational unit Asset Management Co-ordinator, the applicable Finance officer and the custodian) must ensure that they are recorded in the asset management system currently in use by the Service.

Assistant Commissioner
Corporate Services,
Original signed by
Louise Saint-Laurent

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