Acquisition Card Policy, Procedures & Guidelines - Annex B

Updated August 19, 2014

Acquisition Cards must only be used in accordance with established government and departmental policies, authorities and practices for the procurement of goods and services.

Guidelines when using the card:

• Keep a copy of all receipts and related documentation of all purchases on file for at least 1 year after submitting originals to accounts payable.
• Keep the card in a secure location and verify its presence on a regular basis. It must be kept in a locked area (such as a cabinet or drawer), at the office.
• Do not reveal the number unnecessarily on documents or in conversations.
• Deal with reputable firms when using the card. This means companies that have been established for some time and that are known to the Department.
• The funds centre manager must approve and provide written expenditure authorization (e-mail is OK), stating the types of purchases or payments that can be made using the card. This can be individually for each purchase, and/or a blanket authorization for a specific type of purchase during a certain time period and of a certain (maximum) amount. In any case, the authorization must be in writing and include the approximate dollar amount of the purchase.
• It is mandatory to use Standing Offers for the mandatory commodities established by Treasury Board policy. You must check the iService Catalogue to see if there is a Standing Offer for the goods or services you need. If there is a Standing Offer, iService will include the list of vendors, and you must deal with only the vendors identified, quoting the Standing Offer number to ensure that the Crown receives the pricing and benefits of the Standing Offer. Generally, Standing Offer vendors will accept the Acquisition Card, so you may use it. (If the iService pages do not indicate that there is a Standing Offer for the good or service, then you may complete your purchase using the Acquisition Card with the vendor of your choice.)
• The Acquisition Card cannot be used as a procurement tool in circumstances where contractual clauses or statements of work are required (e.g. security clearance, privacy, intellectual property). In those circumstances you must send a Purchase Requisition to the ESDC Procurement Team (in myEMS).
• Ensure that each purchase is within the transaction limit and that you will remain within the monthly limit.
• Ensure the item is an authorized government purchase (“operational requirement”) and not subject to any departmental-imposed restrictions.
• Consider the life-cycle costs of the items purchased including warranties, repairs, maintenance, etc.
• Choose environmentally friendly products whenever possible. As per life-cycle costs, this may save money in the end.
• Do not split contracts or transactions. It is not permitted by federal policies to break a single invoice, transaction or purchase into multiple transactions. For instance (hypothetical dollar figures), it is transaction splitting if you take a $10,000 purchase and try to pay $5,000 on the card one day and $5,000 again a few days later. The Chief Financial Officer Branch (CFOB) monitors Acquisition Cards for contract/transaction splitting.
• Where applicable, GST and HST and the Quebec Sales Tax (QST) will be paid on all goods and services purchased by cardholders. Other Provincial Sales Tax (exception: QST) will not be paid on such purchases.
• If the transaction is for a business meeting expense (hospitality), ensure you have obtained all required hospitality pre-approvals.
• Resolve any discrepancies directly with the supplier immediately, recording with whom you spoke, when, and what agreements were reached.
• Provide information on any controllable assets or attractive items that need to be recorded on the departmental inventory to the manager accountable for the organization's assets, as per the Standard for Managing and Tracking Assets.

Steps to follow to maximize security of the transactions over the internet:

1. You should only purchase goods and services over an internet connection that relies on security protections such as Secure Socket Layer (SSL). When SSL is activated, a locked padlock icon appears on your browser. SSL connections encrypt the information moving between your browser and the merchant's electronic commerce system, which ensures that your personal and credit card information is shielded from prying eyes.
2. When using a secure connection, the Web site address usually will have "https" in the address instead of the usual "http".
3. As mentioned above, it is important to know with whom you are dealing. Some key features such as an email address, postal address (not a P.O. Box) and telephone number will facilitate your communications with suppliers should you need to do so. You should also look for details such as information on how the company protects customer privacy, how well they disclose sales terms, the warranty of the products being purchased, the exchange and/or reimbursement policies, and how they handle customer complaints.
4. You should print and/or save the on-line order form for future reference.
5. If for any reason you have doubts or suspicions regarding the legitimacy of a specific web site during a transaction, you must abort and must immediately advise the Security, Investigations & Emergency Response Unit (Integrity Services Branch).