CREDIT CARD USAGE
The purpose of this policy is to establish criteria on the use of credit cards issued on behalf of the school district.
II. GENERAL STATEMENT OF POLICY
A. Credit cards should only be used by authorized school officials and employees in accordance with Administrative Guidelines 712.1, Credit Card Usage and the Procurement Card Program Procedures Manual. Such cards shall not be used for purchasing goods for personal use or for non-district related matters.
B. Credit card purchases must comply with all statutes, rules, or district policy applicable to school district purchases. Unauthorized or inappropriate use may result in disciplinary action assessed based on the type of violation.
Legal References: Minn. Stat. § 123B.02, Subd. 23 (Credit Cards)
ADOPTED BY THE BOARD OF EDUCATION: February 17, 2009
712.1 Administrative Guidelines
CREDIT CARD USAGE
The purchasing card program is designed to assist the organization in reducing its reliance on requisitions, purchase orders, petty cash funds, employee advances, paper checks, and the use of personal funds for business purposes. The program should help increase your turn-around time in the fulfillment of orders, provide greater flexibility, and reduce paperwork. The Business Office is responsible for the implementation, maintenance, program compliance, auditing, processing payment, and issuance of the P-Card. Only employees of the organization are allowed to participate in the program. Each cardholder has the responsibility to review, reconcile, and submit their monthly account statement with the appropriate receipts and signatures for processing and payment by the due date.
District employees are authorized to use credit cards for approved expenditures which must comply with the school board policy, approved by the supervising administrator, and be considered reasonable to the local taxpayer. Please refer to the Procurement Card Program Procedures Manual for further information.
III. GENERAL INFORMATION
1. The P-Card is issued in each cardholder’s name and it will be assumed that any purchases made with the P-Card will have been made by them. The cardholder is responsible for the security of their card and any transactions made with the card.
2. The P-Card may be used in person, by mail, telephone, and on-line purchases.
3. The P-Card may be used at any merchant that accepts MasterCard.
4. The P-Card may be used for approved travel and related expenses. The cardholder must adhere to Travel Policy 411.
5. The P-Card is not to be used for personal purchases.
6. The cardholder will not be charged a fee for the card.
7. Inappropriate use of the P-Card will result in revocation of the card and in the event of gross misuse or fraud involving District funds, disciplinary actions may be taken.
8. The cardholder and their Principal/Department Supervisor are responsible for ensuring all receipts and statements are submitted to the Accounts Payable Clerk before the 7th of the following month of your statement. The Department budget is reduced by each transaction and reflected monthly on the finance system.
9. The cardholder’s credit rating is not affected by having a P-Card issued in their name.
B. Travel Expenses
A cardholder may use the P-Card for approved travel. Appropriate documentation must be attached to each account statement submitted to the Accounts Payable Clerk for payment. The cardholder must adhere to the guidelines and procedures of Travel Policy 411. All travel and entertainment must be for business purposes only and any personal use is strictly prohibited.
C. Periodic Audits
All cardholder accounts are subject to periodic audits to ensure compliance with the organization’s overall policies and the policies outlined in this manual. The
P-Card Administrator and the Business Office review daily, monthly, and annual transaction activity reports as deemed necessary to ensure adherence to the
P-Card policies. If an audit reveals a policy violation, the cardholder and their manager will be contacted and disciplinary action assessed based on the type of violation.
A. Allowable Purchases
2. Approved conference registrations
3. Approved travel
4. Repairs and maintenance
5. Field trip admissions
6. Allowable food for meetings
7. Classroom supplies
8. General office supplies
B. Unallowable Purchases
1. Minnesota sales tax on most purchases
2. Alcoholic beverages/tobacco
3. Lottery tickets
4. Gift cards/gift certificates
5. Personal purchases
Legal References: Minn. Stat. § 123B.02 Subd. 23 (Credit Cards)
Dated: February 17, 2009