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Policy Manual


Policy: DGB

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 this policy.

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 District.

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 benefits.

6.    Cash advances shall be prohibited, including without limitation cash withdrawals involving bank tellers, automated teller machines, travelers’ checks, and money orders.

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 request.

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 District.


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, 2014
This policy shall be effective upon an affirmative vote of the Board.

 

LYME SCHOOL DISTRICT

CREDIT CARD POLICY

APPENDIX A
Cardholder Agreement


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.



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Cardholder Name (print)


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Cardholder Signature


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Date