Home > Corporate > Finance and Informatics > Chapter 12 - Non-Public Funds Credit Cards (Revised 4 Feb. 11)
Chap 12 Credit Cards
NPP Corporate Credit Card (NPP CCC)
NPP CCC - Emergency/Temporary CC Limit Increases
NPP CCC - Card Holder Responsibilities
NPPC CCC - Reconfirmation/Recall
NPP CCC - Base Card Administrator Responsibilities
NPP CCC - Card Administrator Responsibilities (DACCT)
NPP CCC - Banking Institution CC Reports
Government of Canada Designated Travel Card (DTC)
NPP CCC - Non-Standard CC Transactions
Annex A - Payroll Note Memorandum 
Annex B - Request/Application for NPP Corporate Credit Card (NPP CCC)
Annex B1 - NPP CCC Credit Limit Tables 
Annex B2 - Acknowledgement of Responsibility for NPP CCC
Annex B3 - NPP CCC Expenditures Recap
Annex C - NPP CCC and Designated Travel Card (DTC) Provider Information
Annex D - Request/Application for American Express DTC
CREDIT CARDS
1. The use of credit cards to facilitate purchase and payment of goods is now a generally accepted practice and has become widespread.
2. The intent of this chapter is to provide some background on each of the available cards, the rules for obtaining and using the credit cards, and to either outline the controls for the expenditures that are appropriate for each of these cards or to provide a source for that information.
3. Corporate credit cards can be issued to the following individuals in their NPP capacity:
a. NPF employees;
b. CF Members;
c. Public Servants; and
d. Volunteer within a NPP entity.
4. The following cards are available:
a. the designated Bank of Montreal MasterCard also known as the NPP Corporate Credit Card (NPP CCC); and
b. the Government of Canada Designated Travel Card (DTC) “AMEX” card (see Note).
Note: The DTC is not available for volunteers within a NPP entity.
5. The NPPAM shall upon original issue or return of a NPP authorized credit card, advise the appropriate personnel office (using the format at Annex A).
NPP CORPORATE CREDIT CARD (NPP CCC)
6. The use of the NPP Corporate Credit Card (NPP CCC) by authorized personnel will make the purchase of certain items more efficient and reduce the requirement to secure and carry cash. The NPP CCC can also be used for the purchase of merchandise for resale. These cards will eliminate the requirement to hold petty cash funds and/or significantly reduce the value of petty cash funds. Petty cash funds will only be required for those cases where the item being purchased is of very low value and the vendor has a threshold amount for a purchase, under which credit cards are not accepted.
7. Since NPP has its own CCC, the use of individual personnel credit cards for NPF purchases is not allowed. Only emergency purchases will be reimbursed if done via a personnel credit card, if there is no individual within the NPF entity that has a NPP CCC.
8. The NPP CCC will be issued in the name of the individual holder and is only to be used by the cardholder. Holders will be expected to guard these as they would their own personal credit cards and to afford them the same security as they would afford to cash.
9. Similar to petty cash purchases, PST is normally paid and most suppliers do not accept the PST exemption number or certification (Chapter 8 (Sales Tax), Annex A, Appendix 1) on such purchases. However; in the provinces of Saskatchewan and Manitoba, special permission has been negotiated to recover PST payments and accordingly reporting procedures have been established to report these payments separately and PST is deducted at source (similar to the process of claiming GST/HST Input Tax Credits (ITC’s). Where PST is paid, it will be included in the cost of the purchase. Quebec Sales Tax (QST), the Harmonized Sales Tax (HST) in Newfoundland, Nova Scotia, New Brunswick, Ontario, and British Columbia and GST in all provinces will be paid and claimed per normal procedures for all credit cards.
REBATE BY BANK OF MONTREAL TO DGPFSS
10. Effective fiscal year 2007/2008, the financial institution that issues the Corporate Credit card, Bank of Montreal, will issue a rebate on a quarterly basis to the Director General Personnel and Family Support Services. This rebate will be forwarded to the Non-Public Property entities that use the NPP CCC on a prorated basis. The more the card is used by authorized personnel, the greater the rebate for a Non-Public Property entity.
11. As with petty cash and change funds, NPP CCC is issued on the written authority of the appropriate delegated authority outlined in the CDS Delegation of Authorities for Financial Administration of NPP.
12. In order to obtain an NPP CCC, the applicant must complete the application form held at the local Non-Public Funds Accounting Office or found at Annex B, have spending limits authorized as per paragraph 13, and forward to the NPPAM (Base Card Administrator).
RESTRICTIONS – LIMITS AND USAGES
13. There is a transaction, daily and monthly card limit for each card. Credit Limit Tables have been established and can be found at Appendix 1 to Annex B. Requirements for higher limits must be justified and approved in accordance with the CDS Delegation of Authorities for Financial Administration of NPP.
14. The NPP CCC is to be used primarily for expense items and the purchase of merchandise for resale and is to be used as a first resort for these purchases. The card may be used for the purchase of merchandise for resale but not to pay salaries/commissions where there are T4/T1204 implications. When used to purchase merchandise for resale, the normal purchasing accountability procedures outlined in Chapter 21 (Purchases) must be followed. When used to purchase fixed assets, the normal accountability procedures outlined in Chapter 28 (Fixed Assets) must be followed.
15. Card holders are prohibited from using the card for personal expenses of any kind. Any violation will result in immediate cancellation of the card and may result in disciplinary action.
16. On a monthly basis, the Base Card Administrator will ensure that all cardholders have submitted a Corporate Credit Card Expenditures Recap. If an individual is negligent of submitting the Expenditure Recap on timely basis, then the Base Card Administrator can request the Card Administrator to temporarily suspend the CCC.
17. Suspected fraudulent expenditures are to be thoroughly investigated and proper administrative action taken. Any fraudulent expenditure will be charged to the individuals ABACIS ME record. Upon notification of fraudulent activity, cards will be cancelled. The Base Card Administrator will notify National Accounts Receivable Office of action taken.
EMERGENCY/TEMPORARY CREDIT CARD LIMIT INCREASES
18. There may be occasions where an emergency/temporary limit increase is warranted. These emergency increases must be documented and supported by the approving authority, and must be for a finite period, with an indicated expiry date. The Card Administrator is to ensure that these temporary limits have a short-term expiry date.
19. The NPP CCC user shall:
a. Read the section and sign the “Acknowledgement of Responsibility for a Corporate Credit Card” (Appendix 2 to Annex B) which will be kept on file at National Accounts Payable Office (NAPO);
b. Obtain a sales slip/voucher for each expenditure made with the purchase card;
c. Monthly, upon receipt of the NPP Corporate Credit Card Statement from the Banking Institution, the user shall complete a Corporate Credit Card Expenditures Recap (Appendix 3 to Annex B) including the proper GL account coding and approval of expenditure recap as per the CDS Delegation of Authorities for Financial Administration of NPP;
d. As part of completing the Recap, the Credit Card Bank Statement must be reviewed. Any charges that have been made in error must be clearly annotated on the statement;
e. Corporate Credit Card Expenditure Recap should reference any minutes/memo authority, must be signed by the appropriate approving authority and be submitted to the local NPF accounting office in a timely manner along with the Credit Card Bank Statement and all supporting sales slips/vouchers for input to ABACIS, as part of the month-end process; and
f. Card holders are reminded that they can not approve their own Corporate Credit Card Expenditure Recap.
Note: The user will not make any payment on the NPP CCC. Payment is made by Director General Personnel and Family Support Services/Finance Division through NAPO.
g. Notify the Card Administrator through the Base Card Administrator when there is a change to the information provided on the original application form (e.g. Name, address, etc);
h. Should the standard card transaction credit limits detailed above be inadequate, a request for a change must be forwarded to the Base Card Administrator with proper approval authority who will contact the Card Administrator (note that limits may be temporarily increased when required);
i. Return the card to the Base Card Administrator who will advise the Card Administrator and ensure the card is destroyed when it is no longer required (e.g. The card holder is transferred or otherwise leaves the position) or when ordered to do so by the approving authority or the Card Administrator; and
j. Immediately report lost or stolen cards to the Card Administrator through the Base Card Administrator as well as to the appropriate Banking Institution listed at Annex C. The bank will cancel the missing card and issue a replacement card.
20. The NPP CCC Cardholder shall:
a. Not use the card for any purpose, or in any manner, not authorized by proper authority; and
b. Not make any personal expenditure with the card.
21. NPP CCC is subject to reconfirmation verification by Division Heads, Base Commanders or delegated authorities. This will establish the continued requirement and re-confirm the cards expenditure limits. Where the business activity is deemed to be inadequate, these cards should be recalled.
RESPONSIBLITIES OF THE BASE CARD ADMINISTRATOR
22. The NPPAM or equivalent is designated the Base Card Administrator for their Base/Wing. As the card administrator, he/she shall:
a. Receive minutes/memo authorizations for issue of card(s) as per the CDS Delegation of Authorities for Financial Administration of NPP;
b. Forward applications for new cards to Card Administrator as well as cancelled/returned cards to the Banking Institution;
c. Receive new cards from the Banking Institution and issue them to the authorized holders;
d. Brief the cardholders on their responsibilities as detailed in this policy and obtain and forward a signed copy of the “Acknowledgement of Responsibility for a Corporate Credit Card” (Appendix 2 to Annex B) to the Card Administrator. The cardholders ABACIS ME record must be annotated indicating that the individual holds a NPP Corporate Credit Card;
e. Based on information received from the cardholder to the Base Card Administrator, the Base Card Administrator will inform the Card Administrator of the cardholder’s issue. The Card Administrator will liaise between the cardholders and the Banking Institution concerning any changes concerning cardholders (additions/deletions), cardholder information, or card limits. The Card Administrator will provide the changes to the Banking Institution at the telephone number or address listed at Annex C or via bmodetailsonline.com;
f. The Card Administrator will provide the changes to the Banking Institution at the telephone number address listed at Annex C or via www.bmodetailsonline.com;
g. In addition to annotation of the cardholders ABACIS ME record, the Base Card Administrator will ensure that the issue of the NPP Corporate Credit Card is indicated on the employee’s Personal Liability and Clearance Card (PLCC), if such a system is in place at the unit. This will ensure that the card is returned when employment ceases;
h. For each card requested/issued, pass a copy of the application for new cards, any changes in card holder information, as well as the card account number, and all minutes/memo authorization for issue to the Card Administrator; and
i. Notify the Card Administrator, in writing, of all changes of Base Card Administrator.
23. The Base Card Administrator shall ensure the following:
a. The card holders are forwarding their monthly NPP CCC statements, along with all applicable source documents including the Recap (properly approved for payment) on a timely basis;
b. Review all documentation to ensure that it has been reconciled by the card holder;
c. Report any disputed charges, that have been highlighted on the statement, to the Banking Institution contact as per Annex C; and
d. Enter the amounts payable according to the Credit Card Bank statements (including any charges made in error) as follows:
Example:
The Banking Institution statement shows $100 in valid charges and an incorrect $20 (i.e. the cardholder did not make the latter expenditure). There is a total of $18 HST charge, of which $3 is applicable to the error.
DR Outlet Expense $100
DR A/Rec NPP CCC 23
DR A/Rec HST 15
CR A/Pay NPP CCC $138
Note that the Debit and the Credit relating to the incorrect charge are posted to two separate accounts and not netted as a credit of $115 in A/Payable. This will allow the charges made in error to be monitored and tracked. In addition, there should be a separate entry made for each statement submitted, rather than one total for all statements. The A/Payable is to be set up as an SU account to be named “Purchase Card ““SU 4110000”. The A/Receivable is to be set up as CU account to be named “Purchase Card“.
RESPONSIBILITIES OF THE CARD ADMINISTRATOR
24. The Director of Accounting (DAcct) or their designate will be the Card Administrator and shall:
a. Maintain a NPP Corporate Credit Card database with up-to-date card holder information as provided by the Base Card Administrator;
b. ensure that the following information is obtained for each card holder:
i. Name
ii. ME Number (if the ME number is not in ABACIS, then ME record must be created)
iii. Work Location
iv. Work Telephone Number
v. Home Address
vi. Home Telephone Numberc. Receive the various detailed reports from the Banking Institution and review those reports to ensure compliance with the card restrictions;
d. Maintain a file, for each card issued, containing the issuing authority minutes/memo, the card application, the Acknowledgement of Responsibility for a Corporate Credit Card and any changes to the card holder'’ information;
e. Reconcile card holders of record between Bank lists and NPP Corporate Credit Card database; and
f. Act as the national liaison between the Banking Institution and the card holders for disputed charges, errors and chargebacks using the address and numbers provided at Annex C.
25. Travel expenses will not be charged on the NPP CCC. In an emergency, please contact the Base Card Administrator.
26. Managers – The outlet managers must as a minimum:
a. establish a viable maximum limit for his/her outlet;
b. initiate a periodic review of expenditure totals to compare usage to credit limits;
c. verify the Corporate Credit Card Expenditure Recap and Statement, presented with the Credit Card vouchers for authorization, to ensure that all expenditures are legitimate expenditures relative to the outlet’s role; and
d. approve all NPP CCC expenditures prior to sending to the Accounting staff for payment. An individual cannot approve their own Corporate Credit Card Expenditure Recap.
27. NPP Accounting Staff – The Base/Wing/Unit accounting staff must as a minimum:
a. ensure that all submissions for payment are duly authorized;
b. ensure that items submitted are within the ranges prescribed in the CDS Delegation of Authorities for Financial Administration of NPP;
c. scrutinize the submitted vouchers to ascertain whether “unusual” expenditures have been submitted, and query the nature of that expenditure; and
d. take appropriate accounting action.
BANKING INSTITUTION CREDIT CARD REPORTS
28. The Banking institution will provide the card holder with a monthly statement that is to be used, in concert with the Corporate Credit Card Expenditure Recap, to effect payment for all expenditures.
29. Credit Card reports are available to Base card administrators on the financial institution’s website (www.bmodetailsonline.com).
GOVERNMENT OF CANADA DESIGNATED TRAVEL CARD (DTC)
30. The purpose of the card is to provide a cost effective and convenient method of paying for official government travel expenses. NPF employees are entitled to request and use the government-sponsored designated travel card.
31. The travel card is intended to cover expenses related to temporary duty travel while away from the member’s employment location such as but not limited to and in accordance with the NPP Travel Directive:
a. Commercial lodgings;
b. vehicle rentals and related expenses;
c. meals; and
d. cash advance requirements.
32. The DTC is a government corporate card meaning that misuse and delinquencies cannot be tolerated. It is a cardholder responsibility to ensure timely reimbursement to the credit card company. For accounts that become delinquent over 90 days and/or cards that are being misused, National Defence will initiate recovery from the employee and additional administrative action up to and including dismissal, if warranted.
33. If you require a Government Designated Travel Card, complete the application form “Request for American Express Designated Travel Card” found in Annex D. The manager authorizes the expenditures limits, and sends the completed form to the BCompt at Base/Wing/Unit or CFO/Building Services Assistant for DGPFSS HQ employees.
34. A DTC shall be cancelled when an NPF employee no longer is employed by Staff of the Non-Public Funds, Canadian Forces, if the employee is taking an extended leave without pay for period greater than 6 months, or the card is no longer required.
NON-STANDARD CREDIT CARD TRANSACTIONS
35. There may be cases where local arrangements have been made for the use of a non-standard credit card. An example of a non-standard credit card is Costco since Costco does not accept MasterCard by any customer.
36. Accounting staff is to ensure that particular attention is paid to the transactions processed on non-standard cards. Expenditures on these cards must be approved by an authority other than the cardholder thus ensuring that these expenditures fall within authorized parameters, and are used only to maximize benefit to the outlet concerned.
37. The expenditures on non-standard cards must be verified and authorized by the approving authority as per the CDS Delegation of Authorities for Financial Administration of NPP in order to ensure that the expenditures are legitimate business expenses made on behalf of the outlet, and that the use of such cards provides the maximum benefit to that outlet.
Note: Similar to the NPP CCC, if a non-standard card provides for a purchase rebate, or some similar refund, that benefit must accrue to the outlet and not to an individual cardholder unless there is confirmed authority for this type of transaction.
38. Managers must confirm that the minor fringe benefits obtained through the use of such cards are significant enough to compensate for the increased risk.