Credit Card Policy
SECTION I. PURPOSE:
The purpose of this policy is to establish guidelines and procedures
for the use of a credit card issued to the Lyme School District.
SECTION II. AUTHORITY:
This policy has been adopted by the Lyme School Board as it relates to
its management of the Lyme School District’s financial affairs and its
authority over expenditures.
SECTION III. DEFINITIONS:
A) “Board”: The Lyme School Board.
B) “Cardholder”: A person authorized pursuant to Section VI(1)
below to retain and use the District Credit Card in accordance with
C) “Credit Card Issuer”: The financial institution which issues
the District Credit Card.
D) “District”: The Lyme School District.
E) “District Credit Card”: The credit card account for the
District that can be used by the Cardholder within the credit and
transaction limits set forth in Section V below.
SECTION IV. OBJECTIVES:
The primary objective of this policy is to establish guidelines and
limitations for the authorized use of the District Credit Card for the
purpose of purchasing District goods and/or services as required.
It is not designed to circumvent the normal purchasing process where
approved vendors bill the District. The purpose of establishing a
District Credit Card for District purchases is as follows:
1. To facilitate a streamlined method of purchasing
certain items, thereby reducing paperwork and processing time;
2. To provide a method of purchasing items via the
internet, thereby taking advantage of more competitive pricing for
certain goods and services; and
3. To minimize the need for employees to utilize
their own personal funds to procure goods or services for the District.
SECTION V. SCOPE:
The Superintendent and District Treasurer shall be responsible for
overseeing the administration of the District Credit Card in accordance
with this policy. The District Credit Card will be established by the
District and employees are not authorized to open any additional credit
account on behalf of the District with any financial institution,
vendor, or other person or entity. The maximum credit limit for the
District Credit Card shall not exceed $1,000 and no single transaction
with the District Credit Card shall exceed $500 without prior
authorization from the Superintendent. Purchases shall not to be split
with the intent of circumventing such single transaction limit.
SECTION VI. CREDIT CARD USE:
1. The Superintendent, or a designee of the
Superintendent, shall be responsible to retain and use the District
Credit Card as the Cardholder. Neither the District Credit Card nor its
identifying information shall be provided to any other person except
for (i) the District’s Coordinator of Business Services, and (ii) a
vendor during an authorized transaction.
2. The District Credit Card
shall be used for District purchases only. Use of the District Credit
Card for personal purchases or expenses is prohibited, including but
not limited to the purchase of alcohol, entertainment, or other
personal expenses incurred with the intention of reimbursing the
3. The District Credit Card
shall be used only to purchase goods or services which are budgeted
and/or allowable in accordance with District policies.
4. All purchases made with the
District Credit Card shall be paid for within the grace period so that
no interest charges or penalties will accrue.
5. Any incentive program
benefits derived from use of the District Credit Card shall be the
property of the District. The Board may authorize the
Superintendent to determine the best use of such incentive program
6. Cash advances shall be
prohibited, including without limitation cash withdrawals involving
bank tellers, automated teller machines, travelers’ checks, and money
7. The District Credit Card
shall be embossed with the District name. The Cardholder shall be
responsible for the security of the District Credit Card and shall
immediately notify the Superintendent and District Treasurer if the
card is lost or stolen.
8. The Cardholder shall sign
the attached Cardholder Agreement as shown in Appendix A.
9. Each purchase with the
District Credit Card shall be accompanied by an original receipt and
submitted to the Coordinator of Business Services within two business
days of the purchase, so that charges may be accounted for when the
billing statement is received.
10. If a return or exchange is
required, the Cardholder shall verify that proper credit was received
from the vendor and submit the appropriate paperwork to accompany the
billing statement. In no case shall any person accept cash in exchange
for a returned item.
11. In case of a disputed
charge with a vendor, the District shall first contact the vendor for
resolution. If the vendor voluntarily corrects the problem, then the
Cardholder shall verify the correction on the next monthly billing
statement. If the District cannot reach an agreement with the vendor,
then the Cardholder shall initiate the Credit Card Issuer’s dispute
resolution process. The Superintendent shall maintain a log of such
disputed items to be presented to the School Board at the Board’s
12. Misuse of the District
Credit Card by any employee may result in disciplinary action against
the employee, up to and including termination of employment.
13. In accordance with the
District’s fraud prevention policy, any person who suspects fraud or
financial impropriety in the District shall report the suspicions
immediately to the Superintendent or designee, the Board Chair, or
local law enforcement. Neither the Board nor any District employee
shall unlawfully retaliate against a person who in good faith reports
perceived fraud or financial impropriety.
SECTION VII. WAIVERS:
The Board may vote to waive any portion of this policy for a specific
transaction if the Board deems it to be in the best interest of the
SECTION VIII. AMENDMENTS:
This policy may from time to time be amended by an affirmative vote of
the Board at a regularly scheduled Board meeting.
SECTION IX. EFFECTIVE DATE: December 18,
This policy shall be effective upon an affirmative vote of the Board.
LYME SCHOOL DISTRICT
CREDIT CARD POLICY
I have read and understand the Credit Card Policy for the
District. I understand that the District is liable to the Credit
Card Issuer for all charges made by me as the Cardholder.
I agree to accept responsibility for the protection and proper use of
the District Credit Card while it is in my possession. I understand
that I am responsible for submitting all receipts for processing in a
timely manner. I understand that I shall not use the District Credit
Card for personal use even if the intent is to reimburse the District.
I understand that any violations of this policy will result in
disciplinary action, including up to TERMINATION of my employment with
the District. If the District initiates legal proceedings to recover
amounts owed by me under this Agreement, I agree to pay all legal fees
incurred by the District in such proceedings.
I understand the District may terminate my rights to use the District
Credit Card at any time for any reason. I agree to return the
District Credit Card to the District immediately upon request or upon
termination of employment.
Cardholder Name (print)