Glenbard Township High School District 87
Policy 4:055-R1
Operational Services
Administrative Procedure – Controls for the Use of District Credit and Procurement Cards
This procedure establishes requirements for the control and Use of Credit and Procurement Cards. The business office shall oversee the following controls:
Issue District credit and/or procurement cards to only authorized individuals.
1. Require prior authorization before issuing a card to any individual.
2. Have cardholders sign Cardholder’s Statement Affirming Familiarity with Requirements for
Using District Credit and/or Procurement Cards.
3. Instruct cardholders:
a. In the proper use of cards, and;
b. How to document purchases, including the need to: (a) present an itemized receipt
in addition to a credit or procurement card receipt for each item, (b) indicate the
date, purpose, and nature of the charge on the receipt, and (c) identify the names of
individuals for whom expenditures were incurred on the receipt.
Monitor that credit and/or procurement cards are being used for appropriate purchases.
1. Prohibit the use of District credit or procurement cards for personal expenses. Two
problems prevent personal use pending later reimbursement – there is no guarantee of
reimbursement and the practice is a de facto loan available only to certain employees.
2. Do not use cards that allow cash advances or cash back from purchases.
3. Establish reasonable credit limits for each purchase, transaction, and/or the balance total
on each card. Reduce the limits on existing cards if necessary. Require prior authorization
for purchases above these limits.
4. When a card is used for “emergency purposes,” require that the user clearly document the
emergency situation that justified the need.
5. Block certain types of vendors or purchases using Merchant Category Codes – these
categorize businesses by the products or services they provide. Request that the card
issuer prohibit charges from dry cleaners, health or beauty spas, liquor stores, race
tracks, casinos, churches, physicians, and other merchant categories the District will never
use.
6. Perform scheduled and random analyses of individual cardholders. This includes
examining the continued need for the card and the nature of purchases being made.
7. Perform scheduled and random analyses to determine whether District procedure is being
followed.
Safeguard District credit and procurement cards.
1. Keep all cards in a secure location.
2. Issue cards only for the time period that they are needed.
3. Issue cards in the names of specific individuals to help maintain accountability.
4. Prohibit a card’s use by anyone other than the individual to whom a card is issued.
5. Develop and follow procedures to cancel cards when lost or stolen and when individuals
leave employment.
6. Cancel existing cards that are not needed or accounted for.
7. Review and update master credit card lists annually.
Monitor credit and/or procurement card statements.
1. Review statements and watch for suspicious activity, such as, unusual destinations or
items, purchases from a vendor whose reputation has not been verified, or purchases that
would have been less expensive if another available payment method had been used.
2. Have billing statements broken down by individual user.
3. Have a reconciliation process and timetable. This includes:
a. Reconciling credit card statements to itemized receipts and invoices;
b. Examining the documentation supporting purchases to ensure charges are
authorized and reasonable;
c. Delegating approval, verification, and payment of bills to different individuals; and
d. Requiring someone other than the cardholder or an individual supervised by the
cardholder to review and approve transactions.
4. In exceptional circumstances when the Superintendent approved a charge that would
otherwise be disallowed, maintain a record documenting the Superintendent’s approval as
well as all other pertinent information about the charge.
5. Review all uses of a card via telephone, fax, and the Internet to ensure the Superintendent
or designee approved them.
6. Establish a way of recouping inappropriate charges.
7. Do not use automatic payment deductions to pay credit or procurement card bills.
8. Pay bills on time to avoid paying fees and late charges
9. Appropriately follow up on any discrepancies.
10. Verify that the items purchased were actually received.
11. Cardholders must understand that procurement cards are a means to pay for materials or
supplies. Budget must be available in departmental budgets before costs are incurred.
12. Account for any financial or material reward or rebate offered by the company or institution
issuing the District credit or procurement card and verify that it was used for the District's
benefit.
The following District employees will be issued District credit and/or procurement cards. Other District employees may use a District credit and/or procurement card after receiving specific authorization from the Superintendent or Superintendent designee.
Employment Position |
Authorized Use and Other Limitations |
Superintendent Associate/ Assistant Superintendents |
Actual and necessary expenses incurred in the performance of duties. Expenses related to professional development. |
Building Principals
|
Purchases of materials and supplies for his/her building for expediency and/or efficiency. Expenses related to professional development. |
Directors |
Actual and necessary expenses incurred in the performance of job duties. Purchases of supplies or equipment for expediency or efficiency sake, to support operations for district Expenses related to professional development. |
Designated Department Chairs Coaches Designated Operations and Maintenance Staff Members |
Purchases of materials and supplies for his or her area of focus for expediency and/or efficiency. Costs incurred for athletic teams for approved tournament trips/ IHSA tournament contests (Coaches). |
REVIEWED: September 8, 2008
ADOPTED: October 27, 2008
REVIEWED: July 13, 2009
REVISED: September 28, 2009
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