6423 - USE OF CREDIT CARDS

Licking Valley Local School District

Administrative Guidelines

6423 - USE OF CREDIT CARDS

The Board of Education recognizes the convenience and efficiency afforded by the use of District credit cards (see Form 6423 F1). Credit cards, however, shall not be used in order to circumvent the general purchasing procedures established by State law and Board policy. As such, employees are required to abide by the following guidelines when using a District credit card.

A.	All credit cards issued to and in the name of the Licking Valley Local School District shall be held and supervised by the Treasurer.

B.	Board member(s) and administrative staff may use credit cards only in connection with Board-approved or school-related activities and in accordance with established, pre-approved single purchase limits, monthly spending limits, funds availability, and the appropriation of a particular building or department budget, grant provision, or student activity purpose clause.

	Board member and administrative staff limits will be established by the Superintendent. Spending limits may be increased or decreased as necessary.

C.	Subject to the discretion of the Board and the approval of the Superintendent, credit cards may be used for eligible goods and services including:

	1.	transportation reservations and expenses;

	2.	conference registrations;

	3.	hotel reservation guarantees and expenses;

	4.	reasonable meal expenses (both in-town and out-of-town), including a maximum gratuity of twenty percent ( 20%), but excluding alcoholic beverages, since the purchase of such beverages clearly fails to serve a valid and proper public purpose.


D.	Credit cards shall not be used for personal purchases or expenditures not allowed under this guideline. In particular, credit cards shall not be used for expenses that are not incurred in connection with Board-approved or school-related activities, are not for the benefit of the District, and do not serve a valid and proper public purpose. Use of credit cards in an unauthorized or illegal manner may result in revocation of credit card privileges, disciplinary action and/or, where appropriate, may require the user to pay any and all inappropriate charges, including finance charges and interest assessed in connection with the purchase.

	Use of the District credit card for any cash withdrawal transaction is strictly prohibited.

E.	Employees requiring the use of District credit cards shall request (in writing) such cards from the Treasurer.

F.	The District is a nonprofit political subdivision of the State of Ohio. Tax exemption forms shall be utilized and are available at the Treasurer’s Office.

G.	Upon receipt of a District credit card, employees shall:

	1.	Inform merchants that the purchase is for "official School District business" and is not subject to State or local sales tax. However, if the merchant fails to waive the tax, the employee shall pay it. For large purchases where the merchant refuses to waive the tax, the employee shall present a tax exemption form.

	2.	Maintain credit cards in a secure fashion and prevent unauthorized charges to the account.

	3.	Maintain sufficient documentation of all purchases, including, but not limited to, charge receipts, original cash register slip or other detailed receipt, and invoices.


4.	Provide documentation of all purchases to the Accounts Payable Clerk in a timely manner to ensure prompt payment.

5.	Immediately notify his/her immediate supervisor and the Treasurer if the card is lost or stolen.

6.	Refrain from allowing anyone else to use the credit card or account number.

7.	Refrain from splitting the costs of an invoice or purchase in order to circumvent the credit card process and established, pre-approved single purchase limits, monthly spending limits, and/or funds availability.

8.	When using the card for over-the-counter purchases:

	a.	Identify the purchase needed and determine funds availability.

	b.	Determine if the purchase amount is within his/her pre-approved single purchase limit. If yes, proceed to the next step. If no, check with his/her supervisor for details on how to proceed.

	c.	In purchasing goods and/or services, employee(s) shall provide merchant with the credit card and inform the merchant that the purchase is for "official School District business" and is not subject to State or local sales tax. If merchant refuses to waive the sales tax, employee shall pay it.

	d.	Retain receipts, including cash register receipt and credit card charge slip.

	e.	Give receipt and supporting documentation to the Accounts Payable Clerk.


H.	When using the card for telephone orders:

	1.	Identify the purchase needed and determine funds availability.

	2.	Determine if the purchase amount is within his/her pre-approved single purchase limit. If yes, proceed to the next step. If no, check with his/her supervisor for details on how to proceed.

	3.	Contact the merchant and place the order.

	4.	In purchasing goods and/or services, employee(s) shall provide merchant with the credit card and inform the merchant that the purchase is for "official School District business" and is not subject to State or local sales tax. If merchant refuses to waive the sales tax, employee shall pay it.

	5.	Upon arrival of merchandise, employee shall inspect and verify order accuracy, quality, and price and retain shipping documents and receipts received with the merchandise.

	6.	Give all related documents to the Accounts Payable Clerk.

I.	When using the card for Internet orders:

	1.	In purchasing goods and/or services, employee(s) shall enter card number and expiration date. The employee(s) shall indicate that the purchase is tax exempt if the website does not automatically recognize that the purchase is tax exempt. Note: The employee(s) should verify whether the website s/he is accessing is secure before entering his/her credit card account number.


	2.	Provide all pertinent information to supplier, including the name of the Cardholder, shipping address, etc. Note: If downloading a purchased product from the Internet, employee shall print out the electronic confirmation and include it with the transaction documentation.

	3.	Upon arrival of merchandise, employee(s) shall inspect and verify order accuracy, quality, and price and retain shipping documentation received with merchandise.

	4.	Give all related documents to the Accounts Payable Clerk.

J.	After use, District credit cards are to be returned to the Treasurer along with appropriate receipt copies of all charges within 2 business days upon completion of any approved use.

	Employees, when possible, shall include an original cash register slip or other detailed receipt (i.e., a receipt from a restaurant itemizing all purchases made), in addition to the receipt copy of all charges. In addition, employees shall include, shipping documents and receipts received with the merchandise.

K.	Failure to return District credit cards and/or receipts within the above-referenced time period may result in the suspension of credit card privileges and/or charges being deemed unrelated or unsubstantiated.

	1.	Employees shall be responsible for any and all unrelated or unsubstantiated purchases and shall be required to make full reimbursement to the District within thirty (30) business days.

	2.	If an employee(s) reimburses the District for an unsupported purchase, it shall be documented in the monthly credit card reconciliation.


L.	The Treasurer will keep a record/activity log of all credit card uses and review and approve all purchases to verify that the expenses are incurred in connection with Board-approved or school-related activities, are for the benefit of the District, and serve a valid and proper public purpose prior to disbursing public funds for payment of such expenses.

	1.	Any and all reviews and approvals must be evidenced by the Treasurer’s initials and/or signature.

	2.	In addition to evidencing review and approval of the purchase, the Treasurer should immediately send all questionable items to the employee purchasing the item for explanation. These explanations shall be approved by the employee’s immediate supervisor and the Superintendent prior to the payment of such expenses. If an employee reimburses the District for a questionable purchase, it shall be documented in the monthly credit card reconciliation.

	3.	Upon review and approval, all appropriate documentation shall be forwarded to the Superintendent.

M.	Upon receipt of the appropriate documentation, credit card expenditures will be paid through the Treasurer’s Office.

N.	The Treasurer will monitor the credit card account(s) and reconcile all credit card accounts on a monthly basis.

O.	If the employee is terminated or resigns, then s/he must return the credit card and remain responsible for any inappropriate use.