Purchase Card Policy (SF-POL-004)
Issue Date
09 May 2024
Approved by Kāinga Ora Board
Owner
Tony Murray
Author
Liz Robinson
(Director Financial Control)
(Manager – Payables)
1982
1. Purpose
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This policy provides high-level guidance to assist employees of Kāinga Ora – Homes and
Communities (“Kāinga Ora”) to effectively use Purchase Cards. This policy should be read
alongside all Kāinga Ora policies and guidelines, including but not limited to Sensitive
Expenditure Policy & Guidance, Purchase to pay Policy, Travel Policy & Guideline, Motor
Vehicle Policy & Guideline and the Procurement Policy.
Information
This policy establishes the key principles relating to the use of Purchase Cards (pCards).
pCards users, card holders and designated approvers, are expected to understand this policy
and to be familiar with all pCard guidelines and procedures as documented.
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pCards permit authorised Kāinga Ora cardholders to purchase products or services directly
the
from suppliers without having to go through the traditional PO process; this results in
increased operational efficiencies and reduced costs.
2. Background under
This policy applies to all Kāinga Ora employees who hold a pCard and all designated
approvers responsible for approving pCard transactions.
3. Key Principles
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pCards must only be issued to eligible employees, with limits appropriate to the position(s)
they hold.
© Kāinga Ora – Homes and Communities. This document has been developed by Kāinga Ora. It is prohibited to
reproduce, adapt, or use this resource – either in part or whole – without the prior written consent of Kāinga
Ora.
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pCards must only be used for justifiable business purposes and within the policy framework
of Kāinga Ora and Kāinga Ora’s bank terms and conditions of use.
pCards must not be used for personal expenses.
Spending remains the responsibility of the card holder until it is approved by an authorising
manager.
Approvers are accountable and responsible for all spending once approved and it meets all
of these principles.
Al spending approvals must be in line with the Mana Tuku Kaupapa Here (Delegations
Policy).
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Reporting and compliance activities relating to the policy requirements below are the
responsibility of Finance Shared Services.
Act
4. Policy requirements
4.1 Eligibility
The issuance of any pCard requires the approval of a Director or equivalent tier 3 manager.
Information
Standard physical pCards may be issued to employees who:
• are required to undertake frequent travel outside their region while undertaking Kāinga
Ora business and/or pay for travel expenses
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• are required to provide tenants emergency support in place-based roles
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• are required to undertake regular business development and/or community
development activities, while performing Kāinga Ora business
• are designated purchasers who are required to undertake purchasing on behalf of a
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business unit or groups.
pCards of any sort must not be issued to contractors.
Online purchases, such as one-off payments or regular or recurring subscriptions, can be
facilitated by a virtual pCard that does not require an employee to hold a standard physical
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pCard.
4.2 Credit limits
Credit limits on standard physical cards must not exceed the delegated financial authority of
the card holder’s authorising manager.
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Credit limits must align with the requirements of an individual’s role. As a general guideline,
limits for employees who are:
• in place-based roles required to provide tenants with emergency support should be
$500
• required to undertake regular business development and/or community development
activities should be $1000
• designated purchasers who are required to undertake purchasing on behalf of a
business unit or group should be $2000
• required to undertake frequent travel outside their region while undertaking Kāinga Ora
business and/or pay for travel expenses should be $500
1982
Credit limits on virtual cards should not exceed $5000.00, in line with the principles of the
Act
Procurement Policy item 13 b, where a contract is required for spending over $5000.00.
4.3 Conditions for issue and use
All cardholders are required to sign the Kāinga Ora purchase card acceptance form with
Kāinga Ora’s bank terms and conditions of use on receipt of their card, or on reissue if their
previous card was issued under a different approver. Information
Al pCards are not transferable, they must only be used by the cardholder.
The card number, expiry date, and CVC must not be given to any person other than the
cardholder, this includes other employees.
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Pre-approval is required from the budget holder for al spending, especial y where the
the
approver is not the budget holder and requires supporting documentation in evidence for
audit and compliance purposes.
Legible and complete supporting documentation must be provided for each transaction.
under
All expenses incurred remain the responsibility of the purchase card holder until they are
approved by their approver/authorising manager.
Approvers are accountable and responsible for all spending once approved.
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The fol owing rules apply to pCards:
• pCards must not be used where a current contract for that good/service is in place with
an existing supplier
• pCards are intended for one-off purchases with low dol ar value (<$5,000); they should
be used for:
o external entertainment and hospitality
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o employee support and welfare
o internal meetings and training
o position-related expenses
o health and wel -being
o electric vehicle charges
o travel allowances; and/or
o tenant-related expenses
• pCard administration is the responsibility of the Finance Shared Services (FSS) team. All
staff who receive a pCard must sign a Purchase Card Acceptance Form committing that
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all card purchases are designated for Kāinga Ora, and they will comply with all Kāinga
Ora policies and guidelines
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• For all pCard purchases, GST receipts and pre-approval documents must be attached by
the pCard holder, in accordance with the Sensitive Expenditure Policy (SF-POL-003)
• The pCard holder is responsible for ensuring their transactions are completed and ready
for approval by the authorising manager within 30 days of the expense being incurred
• The authorising manager is responsible for ensuring all pCard transactions are
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completed within 60 days of the expense being incurred
• When the pCard holder ceases employment by Kāinga Ora, the pCard must be returned
to the authorising manager who must destroy the card and contact Finance Shared
Service
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• When the pCard holder changes their employment status or reporting line, the new
the
authorising manager must advise Finance Shared Services that the pCard is still required,
the limit is still valid, and confirm they are the new authorising manager
• In the event a pCard is lost or stolen, or potentially fraudulent transactions are
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identified, the card holder must contact the credit card company directly, before
advising Finance Shared Services
• When a new authorising manager is hired, seconded, or otherwise changed the card
holder must advise Finance Shred Services of the new authorising manager.
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For more information and contact details for Finance Shared Services refer to the Purchase
cards and Employee Claims Atamai page.
4.4 Restrictions
You must not use a Kāinga Ora Purchase card for:
• Personal expenses, such as coffee
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• Items prohibited under the Sensitive expenditure policy & Sensitive expenditure
guidance
• Cash Withdrawals except as per the Koha policy
• Purchase of Kainga Ora vehicle fuel, oil or car washes, as per the Motor vehicle guideline
• Purchase of extra baggage, seat bookings or Koru Club membership as per the Travel
guideline
• expenses where a current contract for that good/service is in place with an existing
supplier, such as personal safety equipment as per the Procurement policy
• Items where an existing supplier exists in the Finance Systems, where a new Purchase
Order can be raised as per the Purchase to Pay policy
1982
• Items where an alternative purchasing process exists, such as stationery via the
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OfficeMax catalogue, as per the Purchase to Pay policy.
5. Monitoring, reporting and compliance management
Monthly reporting of expenditure is advised by Finance Shared Services to the respective
policy holder(s) who are responsible for undertaking their own compliance activities on
Information
spending under their policy, e.g. Travel and Health and Wellbeing are not Finance policies.
Monitoring and compliance activities relating this policy is the responsibility of Finance
Shared services.
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6. Policy breaches
the
Legible and complete supporting documentation must be provided within 30 days of
expenditure being incurred; and if not received after 90 days, this may result in suspension
of the Purchase Card. under
Approval must be complete within 60 days of the expenditure being incurred, and if not
received after 100 days may result in escalation of approvals to their one-up manager.
The use of Purchase Cards must always be in accordance with the requirements of the
issuing bank.
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A breach of any Kāinga Ora policy, guideline, or procedure may result in the cancellation of
the Purchase Card, the repayment of expenses by the card holder, and possible disciplinary
action.
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1982
Act
Information
Official
the
under
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• can be approved under the financial delegation policy
and that they have the appropriate delegation/authority
to approve it; and
• is supported by the appropriate documentation; and
• is correctly coded.
8. Related policies, procedures, legislation and documents
8.1 Policies and guidelines
Procurement policy
1982
Purchase to Pay policy
Act
Sensitive expenditure policy & Sensitive expenditure guidance
Koha policy
Travel policy & Travel guideline
Motor vehicle policy & Motor vehicle guideline.
Information
Mana Tuku Kaupapa Here – Delegations Policy
8.2 Legislation, regulation, and guidance
Office of the Auditor General – Part 4 Using credit card
Official s and purchasing cards
Te Kawa Mataaho/Public Service Commission – Chief executive Gifts, Benefits and Expenses.
the
under
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1982
Act
Information
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the
under
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