USE OF CREDIT CARDS

USE OF CREDIT CARDS

ag6423Adopted August 24, 2017Revised May 5, 2022

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.

  1. All credit cards issued to and in the name of the Niles City School District shall be held and supervised by the Treasurer and Superintendent.
  2. 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.
  3. The Treasurer shall be responsible for the initial issuance, reissuance, and cancellation of District credit cards and shall maintain all appropriate records and reports regarding the District's credit card account(s). Records and reports will be maintained and made available for review in accordance with this policy and State law.
     

    1. When the District applies for a credit card, the Treasurer will require that accurate and complete information is submitted to the issuing entity. Once the new card is received, the Treasurer will confirm that the District's name and any other required information appear accurately on the card and any other presentation instruments.

    2. Employees are required to immediately report lost or stolen credit cards or notice of a possible data breach involving a District credit card to their immediate supervisor and the Treasurer. The Treasurer will notify the entity that issued the credit card to request cancellation of the lost or stolen card as soon as is practicable and will initiate procedures to obtain a replacement card if necessary.

  4. Subject to the discretion of the Board and the approval of the Treasurer, 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;
    5. purchases from vendors who do not accept purchase orders or vouchers with prior approval;
    6. safety and security reasons in connection with a student field trip, competition, and/or other activity or event, if monies are budgeted and deposited with the Treasurer in advance;
    7. other purchases approved by the Treasurer on a case-by-case basis.
  5. Credit cards shall not be used for personal purchases or expenditures. 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. Additionally, any officer or employee of the District who knowingly misuses a credit card account is guilty of the criminal offense of misuse of credit cards. Violations will be reported to the appropriate law enforcement authorities and any applicable licensure board(s).

    Use of the District credit card for any cash withdrawal transaction is strictly prohibited.
  1. Employees requiring the use of Districtcredit cards shall request (in writing) such cards from the Treasurer.
  2. 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.
  3. 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. Use reasonable care when making purchases online, refrain from providing the credit card number to unknown online merchants, and do not auto-save credit card number for any online account.
    4. Maintain sufficient documentation of all purchases including, but not limited to, charge receipts, original cash register slip or other detailed receipts, and invoices.
    5. Provide documentation of all purchases in a timely manner to ensure prompt payment.
    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.
  4. When using the card for over-the-counter purchases:
     
    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. In purchasing goods and/or services, employee(s) shall provide the 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 the merchant refuses to waive the sales tax, the employee shall pay it.
    4. Give receipt and supporting documentation to the treasurer's office personnel.
  5. 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 the 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 the merchant refuses to waive the sales tax, an employee shall pay it.
    5. Provide merchant with card number and expiration date and any and all pertinent information, including the name of the Cardholder, shipping address, etc.
    6. Upon the arrival of merchandise, an employee shall inspect and verify order accuracy, quality, and price and retain shipping documents and receipts received with the merchandise.
    7. Give all related documents to the treasurer's office personnel.
  6. When using the card for Internet 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. Locate the merchant’s website and verify whether the website s/he is accessing is secure before entering the credit card account number and placing an order.
    4. In purchasing goods and/or services, employee(s) shall enter the 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.
    5. Provide all pertinent information to the supplier, including the name of the Cardholder, shipping address, etc. Note: If downloading a purchased product from the Internet, the employee shall print out the electronic confirmation and include it with the transaction documentation.
    6. Upon arrival of merchandise, employee(s) shall inspect and verify order accuracy, quality, and price and retain shipping documentation received with the merchandise. 
    7. Give all related documents to the treasurer's office personnel.
  7. After use, District credit cards are to be returned to the Treasurer's Office along with appropriate receipt copies of all charges within the same business day upon completion of any approved use.
  8. 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.
  9. Employees shall be responsible for any and all unrelated or unsubstantiated purchases and shall be required to make full reimbursement to the District within ten (10) business days.
  10. If an employee(s) reimburses the District for an unsupported purchase, it shall be documented in the monthly credit card reconciliation.
  11. Upon review and approval, all appropriate documentation shall be forwarded to the treasurer's office personnel.
     
  12. Upon receipt of the appropriate documentation, credit card expenditures will be paid through the Treasurer's Office.
  13. The Accounts Payable Agent will monitor the credit card account(s) and reconcile all credit card accounts on a monthly basis.

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