Rescinded - Directive on Acquisition Cards

6.1.1 Identifying a departmental acquisition card coordinator;

6.1.2 Ensuring that responsibilities of the departmental acquisition card coordinator, managers and cardholders are communicated;

6.1.3 Providing documentation to and training for cardholders;

6.1.4 Ensuring that payment terms as specified in the contracts with card issuers are communicated;

6.1.5 Establishing the types of items that may be purchased, the dollar limits of purchases, and any limitation on certain types of purchases, notwithstanding acquisition card issuer limitations on purchases;

6.1.6 Where acquisition cards are used for capital asset purchases, ensuring such transactions are properly recorded. Note that TBAS 3.1 applies for determining threshold levels;

6.1.7 Ensuring that the following applications and restrictions for acquisition cards are specified and communicated, notwithstanding card issuer limitations on purchases:

• Cards are to be used solely for authorized government business-related purchases of goods, services and pre-approved hospitality expenditures;
• Cards are not to be used for the following:
  • most operating and maintenance expenses of fleet vehicles but excluding vehicle licence fees, routine procurement of vehicle supplies for the sole purpose of accumulating an inventory of items such as batteries, tires, oil, filters, spare parts, etc., or when a fleet credit card is not accepted by a supplier;
  • travel status-related expenses;
  • obtaining cash advances. Charge card advance cheques are not to be requested or, if received, are not to be used; and
  • interdepartmental transactions (except for transactions with CORCAN, a special operating agency of Correctional Service of Canada).

6.1.8 Ensuring that payment to the acquisition card companies is made by the due date. Payments made in advance of the standard due date are encouraged in order to maximize early payment rebates received from the charge card issuer. Note that the Directive on Payment Requisitioning and Cheque Control applies;

Vessel Cards

6.1.9 Approving the circumstances when an acquisition card may be issued in the name of an organizational asset, such as a vessel (e.g. ship) and ensuring that all such requests go through the PWGSC/Banking Arrangements Directorate;

6.1.10 Ensuring economical, effective and secure use of acquisition cards issued in the name of an organizational asset by establishing separate controls and procedures and taking into account the unique risks associated with the organizational asset.

6.2.1 Authorizing the issuance of acquisition cards and ensuring that they are issued in the name of an individual or when issued in the name of an organizational asset, that the pre-approval of the chief financial officer was obtained;

6.2.2 Obtaining a written acknowledgement of responsibilities and obligations from the cardholder prior to issuing an acquisition card;

6.2.3 Ensuring that the use of acquisition cards is monitored; and

6.2.4 Managing the departmental acquisition card program.

6.3.1 Recommending which employees should be cardholders;

6.3.2 Recommending reasonable credit limits based on planned use and for reassessing the need on a periodic basis or when responsibilities change;

6.3.3 Ensuring that there is a sufficient unencumbered balance available before entering into acquisition card transactions. Note that subsection 32(2) of the Financial Administration Act and the Directive on Expenditure Initiation and Commitment Control apply;

6.3.4 Ensuring account verification is performed. Note that the Directive on Account Verification applies;

6.3.5 Certifying the cardholders' statements at least monthly. Note that section 34 of the Financial Administration Act applies; and

6.3.6 Ensuring the card is returned to the departmental acquisition card coordinator upon employee departure.

6.4.1 Ensuring that the person whose name appears on the card is the only one who uses it and that cards are used to make authorized official government purchases and payments within the limitations established pursuant to this directive and according to limits established in the departmental delegation of authority document;

6.4.2 Providing a written acknowledgement of responsibilities and obligations prior to receiving an acquisition card from the departmental acquisition card coordinator;

6.4.3 Ensuring that when the card is issued in the name of an organizational asset, the person who uses the card, for the purpose of acquiring goods or services on behalf of the asset, is authorized to use it;

6.4.4 Obtaining sufficient and appropriate authorization, before making purchases, from the incumbent who has expenditure initiation and transaction authority, if the cardholder does not have formal delegated expenditure initiation or transaction authority;

6.4.5 Ensuring that they do not exercise financial signing authority for the settlement of their own acquisition card statements under any circumstances. Note that sections 33 and 34 of the Financial Administration Act apply;

6.4.6 Ensuring that transactions are not split into two or more transactions in order to avoid limits set for purchases pursuant to section 6.1 of this directive;

6.4.7 Claiming provincial sales tax exemptions at the time the purchase. Note that the Policy on the Collection and Remittance of Provincial Sales Taxes (Application of Reciprocal Taxation Agreements and Comprehensive Integrated Tax Coordination Agreements) applies;

6.4.8 Ensuring that refunds or credits in relation to acquisition card purchases are requested using the same acquisition card used for the original transaction, and not by cash or cheque issue unless refunds or credits are not available from the supplier;

6.4.9 Providing evidence of approval of transactions and documentation to support the monthly or periodic acquisition card statement. Note that the Directive on Account Verification applies;

6.4.10 Safeguarding card information and ensuring that the card is kept in a secure location at all times as advised by the Departmental Security Officer. Note that the Policy on Government Security and related standards apply;

6.4.11 Confirming website security and obtaining assurance that the transaction is with the desired supplier prior to making purchases over the Internet;

6.4.12 Notifying the departmental acquisition card coordinator and card issuer immediately when a card is lost or stolen or when erroneous or fraudulent transactions are noted; and

6.4.13 Returning cards upon departure from the department or when requested to do so.

6.5.1 Chief financial officers are responsible for supporting their deputy head by overseeing the implementation and monitoring of this directive in their departments, bringing to the deputy head's attention any significant difficulties, gaps in performance or compliance issues and developing proposals to address them, and reporting significant performance or compliance issues to the Office of the Comptroller General.

6.5.2 The Comptroller General is responsible for monitoring departments' compliance with the requirements of this directive and conducting a review within five to eight years.