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Legislative Assembly for the ACT: 1999 Week 6 Hansard (22 June) . . Page.. 1699 ..

Financial Management Reform

These advantages result in the prompt payment of suppliers, less paperwork, and hence reduced administrative costs, improved cash management and greater convenience for purchasing officers. Generally, credit cards can be used to make the purchasing process quicker, more convenient and less expensive.

3. Accountability and Responsibility

Using credit cards for purchasing reduces much of the paperwork whilst maintaining an acceptable level of control.

It is the card holder's responsibility to ensure the card is used only for approved

purposes and that this can be clearly demonstrated.

Under the Audit Act 1989, requests to spend money must be submitted for approval to an appointee for the purposes of Finance Regulation 25 and similar legislative provisions are likely to be in place under the proposed Financial Management Act 1996. Delegation limits can be used to limit the potential liability of an Agency. It will be necessary that cardholders retain supporting documentation concerning every credit card purchase. This documentation will be used by the:

card holder, to reconcile monthly card use;

card holder's supervisor, to scrutinise and verify each month's transactions;

and

Agency Credit Card Administrator (Administrator), to co-ordinate, liaise and

provide management information.

4. Penalties for Misuse of the Corporate Credit Card

The credit card is issued for official purposes only. Misuse of the card will result in disciplinary action and possible criminal prosecution.

A card holder is responsible for all purchases on her or his card. Under no

Circumstances should a card holder permit another person to use her or his credit

Card or credit card number to make a purchase.

Misuse or fraudulent use of the ACT Government Corporate Credit Card may result in charges being brought against the offending officer under section 109 of the Audit Act 1989 or under the Crimes (Offences against the Government) Act 1989. These provide for imprisonment or fine or both if the offender is found guilty. This will be followed by disciplinary action under provisions of the Public Sector Management Act 1994.

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