BERKELEY COUNTY FILE: DM

Transcription

1 1 BERKELEY COUNTY FILE: DM CORPORATE PURCHASING CARD PROGRAM I. Authority Pursuant to the authority of West Virginia Board of Education Policy 8200, Berkeley County Board of Education establishes a policy for a Corporate 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. II. Rationale A. The Berkeley County Board of Education hereby establishes this policy for a corporate credit card program as an alternative payment method when making purchases of commodities and services, or for the payment of authorized travel expenses. B. Individual schools. 1. The Berkeley County Board of Education hereby establishes this policy for corporate credit card program for use by the individual schools in the county to be used for the purchase of instructional materials and supplies. 2. The Berkeley County Board of Education hereby establishes this policy for corporate 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. III. Issuance of Cards For cards issued in the name of designated employees, each designated employee must complete and sign an acknowledgement form provided by the Berkeley County Board of Education in which the employee acknowledges the responsibilities associated with becoming a cardholder. IV. Procedures Berkeley County Schools administration shall create procedures for the Corporate Card Program, and they shall be attached to this policy. V. 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, 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. Adopted: XX/XX/2019 Page 1 of 1

2 BERKELEY COUNTY FILE: DM-A GENERAL ADMINISTRATIVE PROCEDURES CORPORATE CARD PROGRAM I. Card Issuance: The Chief School Business Official or designee is responsible for administering the Corporate Card Program for the Board of Education. The responsibilities may be delegated to a Corporate Card Program Coordinator. If the Board has authorized a Corporate Card Program for individual schools, the school principal shall serve as the Corporate Card Coordinator for his/her school and is responsible for administering the Corporate Card Program for the school. Responsibilities of the Corporate Card Program Coordinator include, but are not limited to, the following: 1. Monitor and oversee the Corporate Card Program to ensure that key controls are in place to prevent misuse. 2. Determine the locations and types of purchases that may be made with each card and work with issuing bank to ensure appropriate controls reflect established restrictions. 3. Determine employees who are eligible to obtain a Corporate Card. 4. Ensure the proper completion of applications and cardholder agreements. 5. Reconcile master statements. 6. Ensure the prompt payment of the master statement. 7. Ensure that all cardholders follow all Corporate Card policies. 8. Coordinate with issuing bank in order to maintain copies of all cardholder agreement forms. 9. Disseminate updated Corporate Card information to cardholders. 10. In coordination with issuing bank, activate Corporate Cards. 11. Ensure cards are canceled and destroyed upon a cardholder s termination or separation of employment. 12. Determine the following: credit limit, single transaction limit, monthly transaction limit, number of daily transaction, and number of monthly transactions. 13. Be responsible for all charges appearing on the master statement. To obtain a Berkeley County Board of Education Corporate Card, employees must complete a cardholder application form and have it signed by the Berkeley County Board of Education Corporate Card Program Coordinator. Corporate Cards may be issued only to Board of Education regular, full-time employees; they cannot be issued to temporary or part-time employees, contract employees, volunteers, or students. The application form sets up their respective account and establishes corporate limits. Employees to whom Corporate Cards are issued must complete a training course specifically designed for cardholders, whereby all rules pertaining to card use are covered in detail, including purchasing policies, ethics, and disciplinary action that could result if the card is misused. Employees will be required to acknowledge they have completed the required training and that they understand and are willing to assume the responsibilities that are associated with the card s use. 1

3 II. Assignment of the Card: Each card must be issued in the name of an individual cardholder. Cards cannot be issued generically in the name of the Board or school. The issuance of department cards is not permitted. Each employee is responsible for all charges placed on their respective card. III. Card Usage: All applicable purchasing policies must be followed for each transaction, regardless of the method of payment. Corporate Cards can be used at any Board approved vendor. Cards may be used for in-store purchases as well as phone, online or mail orders. When using the Corporate Cards, a receipt/invoice must be retained for documentation of the purchase. Cardholders must ensure vendors are aware the Board is a tax exempt entity. If necessary, the Board will provide a ST101 Tax Exempt Form IV. Spending Limitations and Merchant Restrictions: Each Corporate Card may be used to effect payments for goods and designated services that do not exceed the single transaction limit set by the Board and administered by the Corporate Card Program Coordinator. The Board shall establish a maximum monthly limit, a maximum transaction limit, a maximum number of daily transactions and a maximum number of monthly transactions for each individual cardholder. Any change to established limits must be coordinated with and approved by the Corporate Card Program Coordinator. V. Examples of Authorized and Unauthorized Purchases: Authorized Purchases The Corporate Card program is an alternative payment method for purchases of commodities and services, and/or the payment of authorized travel expenses. The Board has authority to determine authorized purchases and whether to utilize the Corporate Card Program for larger ticket items. Authorized purchases against State Contracts (up to the single transaction limit amount) may be made from suppliers accepting the Corporate Card. The listing below is not an all-inclusive list. Items identified below are examples to assist the cardholder in determining appropriateness. All questions should be directed to the Program Coordinator. Some common uses of the Corporate Card Program may include: Office and class supplies and miscellaneous items Building, plumbing, electrical materials Automotive parts Books, newspapers and subscriptions (resource materials) Computer supplies, e.g., software, CD s, DVD s, flash keys, toner, etc. Hardware and tools Lab, field, photography and safety supplies 2

4 Short term equipment rentals Equipment repair, spare parts and welding repair Advertising expense (newspaper ads, other media) Work related membership dues/organizational fees Travel expenses specifically authorized by Board policy Unauthorized Purchases Items for personal use (including gas for personal vehicles) Employee meals Firearms Alcoholic beverages, Bars, Cocktail Lounges, etc. Cash Advances Salaries and wages Radioactive Materials The Board encourages cardholders to use local vendors when possible. As with any State purchase, the Corporate Card is not to be used for any product, service or with any vendor considered to be inappropriate for State or public funds. Failure to comply with the above guidelines for authorized purchases under the Berkeley County Board of Education Corporate Card Program may result in disciplinary action, cancellation of card privileges, and possible termination of employment. Utility Payments: The Board may obtain a separate Corporate Card with transaction and credit limits exceeding those for individual cards in order to effect utility payments. A utility company may not charge a surcharge for the convenience of paying with the Corporate Card. Travel Related Expenses: Corporate Cards may be issued to individual employees for authorized travel related expenses. The cards must be issued in the name of the Board and the individual employee (cardholder). Cards may be issued to only regular, full-time employees; they cannot be issued to temporary or part-time employees, contract employees, volunteers, or students. 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 Board, either by direct payment to issuing bank or by reimbursement to the employee, even if all expenses incurred for the travel were charged on the Corporate Card. This will ensure the Board will have on file a certification from the traveler that all travel related expenses appearing on the statement were for an authorized purpose. 3

5 VI. How to Use the Card: The Corporate Card Program provides an expedited alternative to the usual purchasing procedures when buying approved goods and merchandise. As noted previously the card cannot be used to purchase capital goods, certain specified items or services, unless specifically authorized by the Board or Chief School Business Official. In addition, each card is limited to a specified transaction amount. Under unique circumstances in which a card is the most efficient means of purchase, the Program Coordinator may authorize a temporary limit increase to affect the purchase. When using the Corporate Card each cardholder must: Verify that the purchase is appropriate and allowed under the Corporate Card guidelines. Inform the vendor that the purchase is on behalf of the Berkeley County Board of Education. This applies whether the transaction is via telephone, on-line, or in person. Inform the vendor that the Berkeley County Board of Education is a sales tax exempt organization. Provide the vendor a Corporate Card number and expiration date. Provide the vendor with their name, the department name, and a complete delivery address: Obtain a receipt, packing slip, and/or credit card sales slip from the vendor. In the rare event that a receipt is not available from the vendor, you must complete a Record of P-Card Activity Ensure the appropriate supervisor is aware of the purchase and that all Board and departmental rules and procedures regarding purchasing, ordering, processing, and record retention have been followed. Upon receipt of merchandise, it is the cardholder s responsibility to inspect the shipment. In cases of returns, the Cardholder is responsible for coordinating the return directly with the vendor and contacting their supervisor and/or Program Coordinator regarding any unresolved issues. VII. Reconciliation and Payment: Payment: Unlike personal credit cards, the Corporate Card Program is a Berkeley County Board of Education Liability. Accounts Payable and the Purchasing Department are responsible for paying the consolidated Program invoice(s) each month and charging the costs to the appropriate accounts. While individual cardholders are not responsible for the payment process, they are responsible to for ensuring charges are reconciled, approved, and coded to the proper account. Upon receiving their monthly statement notification, each cardholder will be required to review the information to ensure all transactions posted are legitimate transactions. Receipt Retention/Record Log: It is a requirement of the program that cardholders retain all receipts and/or packing slips for goods and merchandise purchased. For orders placed via phone, online or mail, cardholders must ensure that a receipt, detailing the merchandise, 4

6 price, freight, etc., be sent with the goods. If ordering online, electronic confirmations must be printed. As Corporate Card transactions are subject to routine audit, it is critical that all cardholders adhere to Board record retention procedures. Disputed or Fraudulent Charges: If there is a discrepancy between any purchase receipt and the statement, it is imperative the issue is addressed immediately. Depending upon the type of discrepancy, the cardholder should immediately contact either the vendor (supplier) or the Corporate Card Program Coordinator in order to resolve the disputed transaction. If the vendor disagrees that an adjustment is necessary, immediately contact the Corporate Card Program Coordinator. The Program Coordinator shall establish policies and procedures ensuring the dispute is immediately resolved. Issuing Bank will request complete details of the dispute in writing in order to research the item in question. These details should be reported on Board letterhead or on the issuing Bank Dispute Form provided earlier. This dispute form can be submitted electronically. Issuing Bank must receive any charge dispute within 60 days of the transaction date. While pending resolution, issuing Bank will credit the cardholder s account for the disputed amount. Any fraudulent charge, i.e., a charge not authorized, must be reported immediately to a supervisor or the Corporate Card Program Coordinator and issuing Bank. Prompt reporting of any such charge will prevent the Board from being held responsible. VIII. Account Maintenance: All cardholder changes, including spending limits, will be detailed on the appropriate issuing Bank Account Maintenance request and submitted to the Corporate Card Program Coordinator for approval. Lost or Stolen Cards: All cardholders are accountable for the security of their respective card and the propriety of all purchases made on the account. In the event a card is lost, stolen, or the card number has been compromised, immediately contact issuing Bank customer service. Immediately upon reporting to Customer Service, cardholders must also inform the Corporate Card Program Coordinator. It is extremely important to act promptly in the event of a lost, stolen, or compromised card to avoid Board liability for fraudulent transactions. Upon immediately notifying issuing Bank and the Program Coordinator, the card number will no longer be active. A new card will be issued within 48 hours of notice to issuing Bank and the Program Coordinator. Board policy requires that a new card be forwarded directly to the Program Coordinator for distribution to authorized cardholders. The Program Coordinator may direct issuing Bank to forward a card directly to a cardholder. Termination of Employment: Upon termination of employment, cardholders are required to: 1. Return Corporate Cards to the Program Coordinator or supervisor. 2. Reconcile all charges and turn in all receipts to your supervisor or Program Coordinator. 3. Sign an Account Maintenance Form, certifying there were no unauthorized purchases, and all expenses are legitimate Board expenses for the month. 5

7 4. Upon completion of the above steps, the Program Coordinator will cancel the card of a terminated employee. Transferring to a Different Department: Upon transferring to a different department, cardholders may be required to: 1. Complete a new Cardholder Application 2. Provide information as to new reconciler, approver, and local default index code. 3. Upon completion of the above steps, deliver new application to the Program Coordinator in order that information pertaining to employee is corrected in both the issuing Bank and Board accounting systems. MISUSE OF THE CORPORATE CARD The use of a Corporate Card is a privilege, not a right. Accordingly, disciplinary action will be taken for misuse of the card. Individuals using the Corporate Card to knowingly buy items intended for personal use will be subject to disciplinary action, up to and including termination of employment and prosecution. Individuals who fail to properly follow Corporate Card policies and procedures will be subject to disciplinary action, up to and including limitation or revocation of Corporate Card privileges, a period of probation, mandatory Corporate Card training, and, if warranted, termination of employment. If a first violation occurs, use of the Corporate Card will be suspended. Notification will be given to the cardholder and their immediate supervisor. The cardholder must have a face-to-face meeting with the Corporate Card Program Coordinator. The purpose of the meeting will be to discuss the violation, provide additional training, and identify specific corrective actions required by the cardholder. If the cardholder determines they no longer want to use the Corporate Card, the card is to be immediately surrendered to the Program Coordinator. If the infraction is deemed to be due to willful or fraudulent misuse, the Corporate Card will be terminated immediately and the cardholder s supervisor will be notified for appropriate action. If a second violation occurs, use of the Corporate Card will be terminated for not less than six months. Notification will be given to the cardholder and their immediate supervisor. After the determined waiting period, reinstatement may be considered upon receipt of a letter from the appropriate supervisor to the Corporate Card Program Coordinator, providing justification as to why the card should be reinstated. If a third violation occurs, the card will be immediately terminated and the cardholder will be prohibited from any further use during their employment by the Board. Notification will be given to the cardholder and their immediate supervisor. Updated: 1/1/2019 6