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 $2,000 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
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
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
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
REVISED: October 26, 2017.
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)