Hampshire County Schools
Bylaws & Policies
 

6423 - USE OF CREDIT CARDS

General

The Board of Education recognizes the convenience and efficiency afforded by the use of credit cards as an alternative payment method when making small purchases of commodities and services, or for the payment of authorized travel expenses. Credit cards cannot be used to purchase land, buildings, vehicles, or equipment whose cost is above $5.000.00, the County's capital asset control level threshold.

Prohibitions and Restrictions
 

A.

Cardholders are prohibited from delegating a 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.

The actual card must be presented for all purchases. Cards and card numbers may not be photocopied and disseminated for making purchases. Card numbers must be kept secure at all times so that the numbers are not photocopied by unauthorized individuals.
   
 

C.

Cards must be surrendered immediately upon termination or separation of employment. Upon surrender, the card is to be canceled and the card destroyed.
   
 

D.

The card must be kept secure at all times. For cards issued in the name of designated employees, the cardholder must sign the back of the card upon receipt. Each individual cardholder is responsible for every charge that appears on his/her card. Cards should only be used on secured internet sites. A secured site has a closed lock at the bottom of the screen.
   
 

E.

A card shall not be used to obtain cash advances or cash credits. Cards may not be used to pay a vendor requiring the payment of a surcharge.

Receipts

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

A.

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.
   
 

B.

Receipts must show no balance due or be marked "paid."
   
 

C.

Receipts must be totaled.
   
 

D.

Receipts must show that the payment was by credit card.
   
 

E.

All receipts should be kept in chronological order by date of purchase.

Reconciliations and Reviews

Each cardholder is responsible for reconciling his/her statement every month. The credit card program coordinator is responsible for reconciling the master statement.
 

A.

Individual and master statements must be examined carefully for billing errors, debits due to erroneous billings, or credits to correct a previously disputed item.
   
 

B.

Upon completion of reconcilement, the cardholder must forward his/her documentation to the coordinator for review.
   
 

C.

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.
   
 

D.

For post-audit purposes, all documentation relating to the card program must be retained for two (2) years from the end of the fiscal year in which the transaction was completed.
   
 

E.

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 a card to knowingly pay for items intended for personal use are subject to disciplinary action up to and including termination and prosecution by the County Board of Education, 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 credit card program are also subject to disciplinary action up to and including a period of probation, or revocation or limitation of credit card privileges.

Vendor Issued Credit Cards
 

A.

Vendor issued credit cards will be issued in the name of the County Schools without an authorized employee's name printed on the card.
   
 

B.

In order to maintain accountability and control for cards issued in the name of the County Schools, the County shall maintain a log, Form 6423 F1, for each card and employees are required to sign-out the card each time the cads is being used.
   
 

C.

Employees who are authorized to use a vendor issued credit card must attend a training course specifically designed for cardholders, whereby all rules pertaining to card use are discussed in detail, including purchasing policies, ethics, and disciplinary action that could result if the card is misused.
   
 

D.

Employees who are authorized to use a vendor issued credit card must also sign a statement, Form 6423 F2, acknowledging that they have attended the training session and that they understand and are willing to assume the responsibilities that are associated with the card's use.
   
 

E.

All purchasing policies must be followed when making purchases using a vendor issued credit card, however purchase order are not required if the card is issued in the name of a designated employee.

Purchasing Cards
 

A.

Pursuant to the authority of W. Va. State Board of Education Policy 8220, the County Schools hereby established a purchasing card program for the purpose of authorizing the use of a purchasing card as an alternative payment method when making purchases of commodities and services.
   
 

B.

Authorized Card Holders
   
 

1.

Purchasing cards shall be issued only to the Board's regular, full-time employees; they shall not be issued to temporary or part-time employees, contract employees, volunteers, or students.
   
 

2.

Each card shall 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 County or school.
   
 

3.

Employees to whom purchase cards are issued must attend a training course specifically designed for cardholders, whereby all rules pertaining to card use are discussed in detail, including purchasing policies, ethics, and disciplinary action that could result if the card is misused.
   
 

4.

Employees to whom purchase cards are issued must also sign, Form 6423 F3, a statement acknowledging that they have attended the training and that they understand and are willing to assume the responsibilities that are associated with the card's use.
   
 

C.

Pursuant to this policy, purchasing cards shall be issued to individual schools in the county to be used for the purchase of instructional materials and supplies.
   
 

D.

Pursuant to this policy, purchasing cards shall be issued to 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 applicable purchasing policies must be followed for each transaction, regardless of the method of payment.
   
 

F.

Purchase orders are not required for purchases of commodities and services made through the use of the County's purchase card system, but all requirements specified in this section of the policy related to the purchase card program must be followed, including individual transaction limits, monthly transaction limits, and maximum number of transactions.
   
 

G.

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 $1,000.00, a daily limit of $1,000.00 and a maximum monthly limit of $10,000.00.
     
 

2.

The maximum number of daily transactions is limited to ten (10) and the maximum number of monthly transactions is limited to 200 for each individual cardholder.
   
 

H.

Responsibilities
   
 

1.

The Chief School Business Official or designee is responsible for administering the purchasing card program for the County.

   
 

2.

For purchasing cards issued for use 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 that locations and types of purchases that may be made with each card and work with the credit card company to limit the card to those purchases and vendors only
   
 

c.

determine the employees who are eligible to obtain a card
   
 

d.

ensure that proper completion of applications and cardholder agreements
   
 

e.

reconcile master statements
   
 

f.

ensure that prompt payment of the master statement
   
 

g.

ensure that all cardholders follow all purchasing policies
   
 

h.

maintain copies of all cardholder agreement forms
   
 

i.

disseminate updated purchasing card information to cardholders
   
 

j.

activate purchasing cards
   
 

k.

ensure that cards are canceled and destroyed upon a cardholder's termination or separation of employment
   
 

l.

determine the following: credit limit, single transaction limit, monthly transaction limit, number of daily transactions, and number of monthly transactions
   
 

m.

be responsible for all charges appearing on the master statement
     
 

4.

Utilities
   
 

a.

The County will obtain a separate purchasing card to make payments for utilities.
   
 

b.

This card shall not be valid for any transaction other than the payment of utilities.
   
 

c.

Transactions for the purchase of utilities will be limited to amounts not greater than $75,000.00.

West Virginia Board of Education Policy 8200

Revised 11/5/07
Revised 1/09