6423 - USE OF CREDIT CARDS

Grant County School

Bylaws & Policies

6423 - USE OF CREDIT CARDS
General

	A.	The Board of Education will establish by Board policy a credit card program as an alternative payment method when making small purchases of commodities and services, or for the payment of authorized travel expenses.
	B.	A credit card program can include purchasing cards, bank or vendor issued credit cards for the incidental purchase of commodities of a small dollar value, or corporate credit cards for the payment of authorized travel related expenses.
	C.	Bank or vendor issued credit cards are used in the same manner as a purchase card to pay for purchases made by the County. The cards can be issued in the name of the school system or to individual employees.
	D.	If a credit card is issued in the name of the school system, the school system must establish by Board policy the procedures to be followed for the control and safeguarding of the card to preclude the use of the card by unauthorized personnel or for unauthorized purposes, and to establish single transaction and monthly limits.

Purchasing Cards [if will not is chosen remove information under Purchasing Cards.]

	A.	The Board will establish by Board policy a purchasing card program for the purpose of authorizing the use of a purchasing card as an alternative payment method when making small purchases of commodities and services, other than travel. (WV Code 12-3-10a)
	B.	A purchasing card is a credit card that can be used as an alternative method of payment for small dollar transactions.
	C.	All purchasing policies must be followed, regardless of the method of payment, including the issuance of purchase orders.
	D.	Limits.

		1.	The purchasing card may be used to make payments for goods and designated services that do not exceed the single transaction limit of $500.00.
		2.	The school system establishes a maximum monthly transaction limit of $1,000.00 a maximum daily transaction of $500.00 and ten (10) monthly transactions for each individual cardholder.

Authorized Card Holders.

		1.	Purchasing cards may be issued only to the school system’s regular full-time employees. Cards cannot be issued to temporary or part-time employees, contract employees, volunteers, or students.
		2.	Each purchasing card must be issued in the name of an individual cardholder. Only the employee whose name appears on the front of the card is an authorized user of the card. Cards cannot be issued generically in the name of the school system or school.

Responsibilities.

		1.	The Chief School Business Official or designee is responsible for administering the purchasing card program for the school system. The responsibilities may be delegated to a purchasing card coordinator.
		2.	If the Board has authorized a purchasing card program in the individual schools, the school principal shall serve as the purchasing card coordinator for his/her school and is responsible for administering the purchasing card program at that school.
		3.	Responsibilities of the coordinators include, but are not limited to, the following:

			a.	monitor and oversee the purchasing card program to ensure that key controls are in place to prevent misuse
			b.	determine the employees who are eligible to obtain a card
			c.	ensure the proper completion of applications and cardholder agreements
			d.	reconcile master statements
			e.	ensure the prompt payment of the master statement
			f.	ensure that all cardholders follow all purchasing policies
			g.	maintain copies of all cardholder agreement forms
			h.	disseminate updated purchasing card information to cardholders
			i.	activate purchasing cards
			j.	ensure that cards are canceled and destroyed upon a cardholder’s termination or separation of employment
			k.	determine the following: credit limit, single transaction limit, number of daily transactions, and number of monthly transactions
			l.	be responsible for all charges appearing on the master statement

		4.	Each designated employee must complete and sign a purchasing card application provided by the school system in which the employee acknowledges the responsibilities associated with becoming a cardholder.
		5.	Prohibitions and Restrictions.

			a.	Cardholders are prohibited from delegating a purchase card to another individual. Card delegation is the practice of allowing an individual other than the cardholder whose name appears on the front of the card to have access to the card or card number to initiate or complete a purchase transaction.
			b.	Purchasing cards must be surrendered immediately upon termination or separation of employment. Upon surrender, the card is to be canceled and the card destroyed.
			c.	The purchasing card must be kept secure at all times. All cardholders must sign the back of their purchasing card upon receipt. Each individual cardholder is responsible for every charge that appears on his/her card. Purchasing cards should only be used on secured internet sites. A secured site has a closed lock at the bottom of the screen.
			d.	A purchasing card shall not be used to obtain cash advances or cash credits. Purchasing cards may not be used to pay a vendor requiring the payment of a surcharge.

Utilities.

			a.	The school system may obtain a separate purchasing card with transaction and credit limits exceeding those for individual cards to make payments for utilities.
			b.	In obtaining a utility card, all transactions other than the payment of utilities must be blocked.
			c.	A utility company may not charge a surcharge for the convenience of paying with the utilities purchasing card.

Receipts.

An itemized receipt must be obtained for each transaction charged on a purchasing card. The receipt must contain the following specific information and meet certain conditions:

				1)	receipts must be itemized and include a description of the items purchased, unit price, quantity, and total cost for each item. Use of generic terms such as "miscellaneous" or "various merchandise" is not acceptable.
				2)	Receipts must show no balance due or be marked "paid".
				3)	Receipts must be totaled.
				4)	Receipts must show that the payment was by credit card.
				5)	All receipts should be kept in chronological order by date of purchase.

Reconciliations and Reviews.

			a.	Each cardholder is responsible for reconciling his/her statement every month. The purchasing card coordinator is responsible for reconciling the master statement.
			b.	Individual and master statements must be examined carefully for billing errors, debits due to erroneous billings, or credits to correct a previously disputed item.
			c.	Upon completion of reconcilement, the cardholder must forward his/her documentation to the coordinator for review.
			d.	The coordinator is responsible for reconciling the master statement. This includes reviewing all transactions to ensure that they are legitimate and for official business, and that all required documentation is present.
			e.	For post-audit purposes, all documentation relating to the purchasing card program must be retained for two (2) years from the end of the fiscal year in which the transaction was completed.
			f.	Schools must provide copies of the master statement, receipts, and other documentation to the business office for review on a quarterly basis.

Unauthorized Use.

			a.	Employees using the purchasing card to knowingly pay for items intended for personal use are subject to disciplinary action up to and including termination and prosecution by the school system, and subject to civil action by the credit card company for personal liability.
			b.	Employees failing to properly follow purchasing policies, procedures, and State law associated with the purchasing card program are also subject to disciplinary action up to and including revocation or limitation of purchasing card privileges, a period of probation, or mandatory purchasing card training.
			c.	The school system establishes a maximum monthly transaction limit of $1,000.00 a maximum number of daily transactions of five (5) and a maximum number of monthly transactions of ten (10) for each card.
			d.	The school system may also establish by Board policy a credit card program for the individual schools in the county to use for travel expenses incurred by students on authorized student trips, including the accompanying adults having supervisory responsibilities of the students, such as coaches, music directors, team sponsors, and chaperones.
			e.	All purchasing policies must be followed, regardless of the method of payment, including the issuance of purchase orders.

Bank or Vendor Issued Credit Cards for the Purchase of Commodities.

	A.	Bank or vendor issued credit cards are used in the same manner as a purchase card to pay for the incidental purchases of commodities made by the school system. The most significant difference is that these credit cards, unlike purchasing cards, may be issued in the name of the District, not an individual employee. These cards should be used only on occasions when the users of the card need to make purchases on an infrequent basis.
	B.	These cards may be used when making small purchases of commodities or services, other than travel.
	C.	A bank issued credit card can generally be used at countless vendor locations without restriction. This is one reason why it is extremely important to maintain stringent controls over who has access to the card. Examples of a bank credit card include Visa and Mastercard.
	D.	A vendor issued credit card, on the other hand, can generally be used only for purchases from that particular vendor or related vendors, however, there normally are not any restricted as to the type of merchandise that can be purchased using the card. Therefore, stringent controls must also be maintained over who has access to the card. These can include cards issued by gasoline companies and general merchandise outlets.
	E.	The school system must establish by Board policy the procedures to be followed for the control and safeguarding of the card to preclude the use of the card by unauthorized personnel or for unauthorized purposes.

		1.	The policy must include adequate internal controls over the use of the card to ensure that accountability is maintained for all purchases made using the card and that the purchases can be assigned to particular individuals. A log whereby employees sign-out the card can be utilized. A sample form can be found in 6423 F1.
		2.	Procedures must also be established to reconcile the charges on the card to ensure that only authorized charges are made.
		3.	The school system will not allow bank and/or vendor credit cards for the individual schools in the county.
		4.	A monthly statement is issued to the school system, who is responsible for the payment.

Corporate Credit Card for the Payment of Travel Expenses.

	A.	The Board will obtain a corporate credit card for each employee to use in charging authorized travel related expenses. The cards must be issued in the name of the District and the individual cardholder.
	B.	The card is to be used only for authorized travel related expenses.
	C.	The school system can elect to have the monthly statement issued to each individual cardholder, who would be responsible for payment of the invoice amount, or issued to the school system for payment.
	D.	If the statement is issued to the school system, procedures must be established to ensure that only authorized travel expenses are being charged on the card and are being paid by the District.
	E.	Regardless of the method selected, all personnel are required to follow all travel authorization and reimbursement requirements and must submit a travel expense reimbursement request prior to the payment of the travel expenses by the school system, either by direct payment to the issuer of the card or by reimbursement to the employee, even if all expenses incurred for the travel were charged on the card. The purpose of this is for the school system to have on file a certification from the traveler that all travel related expenses appearing on the statement were for an authorized purpose.

The Board recognizes the value of an efficient method of payment and recordkeeping for certain expenses.

The Board, therefore, authorizes the use of school system credit cards.

The Superintendent shall develop administrative guidelines that specify those authorized to use credit cards, the types of expenses which can be paid by credit card, and their proper supervision and use.