Procedures - Credit Card · 2018. 7. 30. · Credit Card Security The credit card should always be treated with at least the same level of care that one would treat their own personal

CreditCardProceduresManual

MARBLEFALLSINDEPENDENTSCHOOLDISTRICT

MFISD Credit Card Procedures Manual | 1

Credit Card Procedures Manual

Marble Falls Independent School District

The Board of Trustees and the administrators of M a r b l e F a l l s Independent School District are charged with the responsibility of supervising the financial affairs of the District. These procedures have been developed to help safeguard all funds and to ensure that the District’s financial activities are conducted with high standards and comply with federal and state laws and regulations.

In those regards, the Business Office of the District is charged with providing:

1. A centralized, standard accounting system in accordance with the prescribed regulations from TEA and local policies set by the Board of Trustees;

2. Control over revenues and the disbursement of funds as prescribed by law and Board policies;

3. Appropriate financial records and reports as required by regulations and policies; and 4. Safekeeping of district assets.

The purpose of this manual is to provide employees of the District with guidelines for the proper use of a District credit card which is referred to as the MFISD credit card. The district credit cards are issued through Citi Bank. All district employees are encouraged to become well acquainted with this manual and to utilize it as the official guide. Questions regarding these procedures should be directed to the Business Office.


BUSINESS OFFICE STAFF

Melissa Lafferty Executive Director of

Finance [email protected]

1102

David Hemond Accounting Supervisor [email protected]

1103

Jessica Saenz Accounts Payable Specialist

[email protected]

1105

Judy Linderman Financial Services Specialist [email protected]

1104

Janessa Tellez Payroll Specialist

[email protected]

1106


TABLE OF CONTENTS

Contents

OVERVIEW ...................................................................................................................... 4 PURPOSE /ACCEPTABLE USES .......................................................................................... 4 PURCHASING/PAYMENT GUIDELINES .............................................................................. 4 PURCHASING & DOCUMENTATION .................................................................................. 4 AUDIT/REVIEW .............................................................................................................. 4 CREDIT CARD SECURITY ................................................................................................. 5 CONTROLS .................................................................................................................... 5 LIMITS ......................................................................................................................... 5 MERCHANT CATEGORY CODES ..................................................................................... 5 ELIGIBILITY .................................................................................................................... 5 PROGRAM MANAGEMENT – DEPARTMENT CARDS ............................................................ 6 CANCELLATION/SUSPENSION PROCEDURE ...................................................................... 6 LOST OR STOLEN CARDS ................................................................................................ 6 CREDITS AND DISPUTED CHARGES ................................................................................ 6 CHANGES IN EMPLOYMENT STATUS................................................................................. 6 CONSEQUENCES FOR FAILURE TO COMPLY WITH PROGRAM GUIDELINES ......................... 6 MISUSE OF CARD ............................................................................................................ 6 DISCREPANCIES .............................................................................................................. 7 DISPUTED ITEMS ............................................................................................................. 7 PURCHASING ................................................................................................................ 8 TRAVEL ........................................................................................................................... 9 OUT OF STATE TRAVEL .................................................................................................. 9 LODGING ...................................................................................................................... 9 HOTEL PAYMENTS ........................................................................................................ 10 HOTEL CANCELLATIONS ............................................................................................... 10 FEDERAL FUNDS ........................................................................................................... 11 TRANSPORTATION ....................................................................................................... 11

AIRFARE ................................................................................................................. 11 BAGGAGE HANDLING ................................................................................................ 11

MEALS .......................................................................................................................... 12 STUDENT TRAVEL ......................................................................................................... 12

LODGING ................................................................................................................. 12 MEALS ...................................................................................................................... 13

BOARD OF TRUSTEES TRAVEL ....................................................................................... 13 NON-EMPLOYEE TRAVEL .............................................................................................. 13 RECEIPTS ........................................................................................................................ 14 FAQ’s .............................................................................................................................. 16


OVERVIEW

Purpose /Acceptable Uses The purpose of the credit card program is to establish an efficient, cost effective method of paying for select transactions. The credit card will mainly be used for pre-authorized credit expenditures and select other approved expenditures, such as on-line ordering when a purchase order cannot be used. It can be used with vendors who can provide itemized receipts that will accept MasterCard as a form of payment.

The MFISD credit card is not intended to avoid or bypass appropriate purchasing or payment procedures due to time constraints but to complement the existing processes available. It is to be used for MFISD business purchases only. The purchase of personal items is prohibited and in violation of Board Policy.

All card users should review this procedures manual and shall be required to sign a cardholder User Agreement.

Purchasing/Payment Guidelines The credit card is not intended to avoid or bypass appropriate purchasing or payment procedures as outlined in Board Policy CH Local and the MFISD Fiscal Manual. This program complements the existing processes available. The credit card is to be used for District business only. Personal purchases will be considered misappropriation of district funds, which constitutes a criminal offense and must be referred to the MFISD Executive Director of Finance.

Purchasing & Documentation All purchases must first be approved via a purchase order or an approved t r a v e l request form. Once the purchase or credit has been completed, it is each cardholder’s responsibility to review/submit transactions in Skyward. No photocopies or rubber stamps are allowed on any c r e d i t card documentation. The MFISD Business Office will retain all credit card documentation for 7 years.

Audit/Review Every M F ISD c r e d i t card purchase is subject to review and verification by Business Office personnel at any time.


Credit Card Security The credit card should always be treated with at least the same level of care that one would treat their own personal credit card. Keep your credit card in an accessible but secure location. Guard the c r e d i t card account number and PIN (if any) carefully. Making copies of the card or capturing the card number is strictly prohibited. Do not leave the card in your desk or in any other place that is easily accessible by others. No other personnel should have access to your card or PIN.

Controls

The credi t card program uses internal management controls to manage and audit the process to ensure that procedures are followed. Several controls are available to the District and may be implemented for each person that uses a credit card. These controls include establishing limited vendor access, specific dates for valid use, and credit limits.

Limits

Different limits may be set for each credit card, such as a single purchase dollar limit and spending limit per day or transaction. If you exceed your card’s spending limit, your transaction will be rejected when you attempt to make a purchase. The card user will be informed of any limits applicable to the card at the time of receipt of the card.

Merchant Category Codes

Varying by individual cardholder, certain types of supplier category codes will be prohibited and those vendors/suppliers will be blocked for all cardholders. These include but are not limited to liquor stores, convenience stores, bars, lounges, etc. Should you have a question concerning an establishment you wish to use, please contact the Business Office.

Eligibility

You must be a M F ISD employee or authorized person to participate at any level. The credit card is primarily designed for travel costs and department supervisors who purchase goods or services on behalf of the District. Eligible card users must complete the Cardholder User Agreement (Exhibit 1) and obtain the appropriate approvals for card use. Temporary and probationary employees will not be issued a card. Volunteers and students are not allowed to possess, use or handle the c r e d i t c ard at any time. Nor should cardholders allow the use of their card by anyone else.

NOTE: By accepting the credit card, the cardholder assumes responsibility for the credit card. The credit card is not transferrable and may not be used by anyone other than the employee to which the card is assigned.


Program Management – Department Cards Several credit cards are labeled by department or campus. These cards are blue in color, will have the department or campus name and the District name embossed on the card to distinguish it from other credit cards. All persons obtaining a MFISD credit card must first read and become familiar with this Credit Card Procedures Manual.

After signing the Cardholder User Agreement, the card will be issued to the department or campus requesting use of the card. The cards for travel will be issued to the campus/department named on the card. It will be the responsibility of the campus/department to safeguard the cards and use proper check-out procedures.

Cancellation/Suspension Procedure If a card is to be cancelled, the cardholder must contact the Executive Director of Finance with details.

Lost or Stolen Cards Report any lost or stolen card immediately. To report a lost or stolen card call Citi Bank at 1-800-248-4553. Tell the representative the call is regarding a lost/stolen card for Marble Falls ISD. Always obtain the name of the representative to whom you reported the lost or stolen card as well as the date and time you spoke with the representative.

The District is financially liable for the card in the event it is lost or stolen and is subsequently used. The card holder will be held liable for any purchases made before the card is reported lost or stolen. Once you have notified Citi Bank that your card is lost or stolen, the District is no longer liable for any purchases made with the card.

Credits and Disputed Charges In most cases credits and disputes will be resolved directly between the cardholder and the vendor. If the cardholder and the vendor cannot resolve an issue the cardholder should initiate a dispute by contacting Citi Bank at 1-800-248-4553.

Changes in Employment Status Any departing employees must immediately return any issued credit cards to the Campus or Business Office.


Consequences for Failure to Comply with Program Guidelines

Revocation of card privileges.

Improper use of the card(s) may result in disciplinary action, up to and including termination of employment.

Card user may be required to reimburse M F I S D for inappropriate, restricted, or prohibited purchases. Payroll deduction may apply.

Misuse of Card Anyone suspecting fraudulent use or misapplication of the card should report this immediately to the Business Office.

Discrepancies

Differences between authorized transactions and actual charges will be reviewed by the Business Office and appropriate correction/clarification requests made to cardholders via email.

The employee will have 3 days to respond to such inquiries. Unresolved issues may result in disciplinary actions.

Disputed Items If the Business Office audits the statement and determines some charges are disputable, such charges will immediately be investigated to determine if any abuse has occurred or if the charges are valid.


PURCHASING

In regards to the acquisition of goods and services, MFISD Board Policy CH (Local) states:

The Board shall assume responsibility for debts incurred in the name of the District so long as those debts are for purchases made in accordance with adopted Board policy and current administrative procedures. The Board shall not be responsible for debts incurred by persons or organizations not directly under Board control. Persons making unauthorized purchases shall assume full responsibility for all such debts.

All purchase commitments shall be made by the Superintendent or designee on a properly drawn and issued purchase order, in accordance with administrative procedures.

In the rare event that a Purchase Order cannot be used to facilitate procurement of an item, a MFISD Credit Card may be issued. To secure approval of the Credit Card, the following steps should be followed.

1. In Skyward, enter a requisition to the vendor the Credit Card will be used with for approval of the items being requested.

2. In the first line of the requisition, select Narrative and enter “Using Citi Card”. In the following line items, enter the items to be purchased.

3. Upon approval of the requisition, the employee will be issued a Credit Card to use in procuring the items.

4. The employee will also be given a Tax-Exempt form for the purchase. It is imperative that Credit Card users do not allow tax to be charged to the Credit Card.

5. Once the items are purchased, return the Credit Card to the Business Office along with a detailed receipt showing completion of the purchase.

6. The Credit Card must be returned with 24 hours of purchase (or next Business day).

7. The individual purchasing the items must “Receive” the items in Skyward to signify receipt of the items.


TRAVEL

Employees authorized to t r a v e l for business and educational purposes on behalf of the District shall be reimbursed for all usual and customary t r a ve l -related expenses made on behalf and in connection with district business according to district rates and state law. The processes established herein have been developed on the premise that employees will use good judgment and prudence in the expenditure of district funds when traveling. Travelers are expected to select the most economical and practical accommodations, arrangements and services in accordance with the needs of the trip. All travelers, as well as supervisors approving travel, are responsible for compliance with the provisions of the District’s travel policies. Requests for exceptions to these regulations must be made in writing prior to taking a trip and signed by the Superintendent of Schools or his designee.

Out-of-State-Travel

All out of state travel MUST be approved by the Superintendent prior to making any airline or hotel reservations. This approval is required for both employee and student out-of-state travel. Out-of-state travel for students must also be approved by the Board of Trustees.

When an employee becomes aware of the need to travel, the Request to Attend travel APPROVAL form is completed. This form is used to 1) receive approval for the travel prior to expenses being incurred and, 2) request a district credit card or check for any items that must be paid in advance such as registration fees and hotel costs.

Once the travel has occurred, the employee will submit the Travel REIMBURSEMENT request form to request reimbursement for expenses incurred during the travel (parking, mileage, meals, etc.) and account for any items related to the travel paid for with a district c r e d i t c ard. The c r e d i t c ard must be returned within 48 hours of travel (or next BUSINESS day).


Lodging MFISD will cover the cost of overnight trips at the hotel/facility listed as the host hotel(s) where the conference, seminar, etc.is being held or an alternate location when necessary. Rooms should be booked at the most economical rate available and without additional amenities. If a spouse attends with a MFISD employee, any additional room costs must be paid for by the employee. Additional charges such as movies and laundry will be at the employee’s expense.

Hotel Payments

Employee completes a Request to Attend travel form and secures approval for the trip.

Upon approval of the trip, the employee may make the reservation. At this point, the employee will need to use a Hotel card to secure the reservation.

Prior to the trip, the employee will be issued a Hotel card to be used for the actual payment of the hotel. At check-in the employee should present the hotel with the Hotel Card to be used for the lodging costs and a Hotel Tax Exemption Certificate.

For t r ave l in Texas, a Hotel Tax Exemption Certificate must accompany payment to the hotel to avoid paying Texas State sales tax. These certificates will be provided to the employee along with the issuance of the Hote l Card. When checking into the hotel, provide the desk clerk with the Hotel Tax Exemption Certificate. Some hotels require proof of employment such as a pay stub or an identification badge. The sales tax in states other than Texas will be reimbursed.

Upon check out, it is very important that the person traveling review the billing to ensure that state sales tax was not charged. The District will not provide reimbursement for Texas state sales tax. County and municipal hotel occupancy taxes will be reimbursed.

Hotel Cancellations

To avoid cancellation fees, the employee is responsible for notifying the hotel prior to the cancellation deadline. If the hotel is not notified by the required deadline, the employee may be required to pay any fees assessed by the hotel. If a trip is cancelled due to district actions, the employee will not be held responsible for the cancellation fees. A written explanation by


the employee’s direct supervisor will be required in such instances. In addition, employees who extend their hotel stay beyond what is reasonably required to carry out the purpose of the trip, or who take leave during the trip, will not be reimbursed for lodging expenses incurred during that period. Additional nights for personal reasons should not be charged on the MFISD Hotel card.

Transportation

Airfare

Airfare will be allowed when either 1) airfare is cheaper than the mileage reimbursement, or 2) when travel by automobile is not feasible. Employees traveling by commercial air carrier must t r a v e l in the most cost-effective manner and utilize the lowest possible coach fares. Airfare which exceeds the cost of the lower coach fare (first class, business class, etc.) will not be covered.

Once airfare for a trip has been approved, the employee will need to come to the Business Office to use a credit card to book the flight. C r e d i t cards will not be issued for the purpose of booking airfare. When airfare is approved and payment is made prior to the trip, the employee will be required to sign a Travel Advance Agreement stating that if the trip is canceled by the employee and the airfare is nonrefundable the employee will reimburse the District for the cost of the purchased airfare.

Baggage Handling

Employee is allowed one checked bag only; however, if the employee is a speaker at the conference they are attending and are required to take an extra bag with conference materials, etc, then they may be reimbursed for the additional bag. Employees will be required to provide a statement to be submitted with the Travel REIMBURSEMENT Request form justifying the need for additional bags. Original itemized receipts are required.


Meals Employees will be reimbursed for meals upon the submission of the Travel REIMBURSEMENT R e q u e s t form. Employee meals may NOT be charged to a c r e d i t c ard. Employees travel ing with a hote l card need to pay special attention to other charges that may be made to the card by the hotel. This includes room-service charges. Room service orders should NOT be charged to the card. The employee should verify the bill at check out and transfer any meal or incidental charges to a personal credit/debit card or pay by cash or check. Employees will be required to reimburse the District for any charges appearing on the hotel card statement for items other than the hotel stay.

Student Travel

Lodging

When traveling with students, a list of student names must accompany the Request to Attend Form.

The sponsor/coach will need to make the reservation and attach a copy of the hotel confirmation to the Request to Attend Form. The hotel confirmation should show the following information:

• check-in/check-out date • nightly room rate • number of nights

After approval of the trip a hotel card will be issued no later than the day before departure.

The sponsor/coach will complete a Request to Attend Form and secure approval for the trip.

Upon approval of the trip, the sponsor/coach may make the reservation. At this point, the sponsor/coach will need to use a hotel card to secure the reservation.

Prior to the trip, the sponsor/coach will be issued a hotel card to be used for the actual payment of the hotel. At check-in the sponsor/coach should present the hotel with the ho te l c ard to be used for the lodging costs and a Hotel Tax Exemption Certificate.


In Texas (only), a Hotel Tax Exemption Certificate must accompany payment to the hotel to avoid paying Texas State sales tax. These certificates can be obtained from the MFISD website or campus/department secretary. When checking into the hotel, provide the desk clerk with the Hotel Tax Exemption Certificate. Some hotels require proof of employment such as a pay stub or an identification badge. The sales tax in states other than Texas will be reimbursed.

Meals

When possible, the preferred method for advancing student meal money is the issuance of a Meal card. The per diem meal allowance for students is $7.00/meal/student. When student meals are authorized for student t rave l , the sponsor(s) meals will be advanced as well. Original itemized receipts for all student and sponsor meals are required and must be returned with the M e a l c ard upon return. Tips and gratuities are allowed up to 15% and will be charged to your meal account.

Board of Trustees Travel School board member travel on behalf of the district is governed by policies BBG (Legal) and BBG (Local). Board members shall be reimbursed for reasonable expenses incurred in carrying out Board business at the Board’s request and for reasonable expenses incurred while attending meetings and conventions as official representatives of the Board. Tips, gratuities and alcohol are not reimbursable expenses.

Members of the Board traveling on school business will be assigned a Hote l c ard for lodging expenses and must return the card and the itemized hotel receipt within 24 hours of return.

Non-employee Travel Marble Falls ISD will not reimburse travel expenses incurred by an employee’s spouse or an individual accompanying an employee on business unless the spouse/companion is a district employee and is also required to be in attendance. No expenses for non-employees may be charged to the Hotel card. Travel reimbursements by Marble Falls ISD to contractors/consultants are governed by the terms of the associated contracts/agreements.


RECEIPTS

Itemized receipts are required for all transactions regardless of fund or vendor. An “itemized” receipt requires all of the following pieces of information as shown below:

The number of items purchased with specific descriptions (i.e. “gen. mdse”, “misc.”,

or “tax exempt item” are not adequate descriptions) The price for each item purchased must be provided, along with subtotal, tax

exemption, and total. The vendor’s name must appear imprinted or stamped on all receipts. Adding machine tape with handwritten item descriptions is not an itemized receipt

and will NOT be accepted.

All receipts are to be scanned and attached to the credit card transaction in Skyward.

Receipts for credits back to the card are also required and must be itemized and signed by the cardholder.

Lost receipts are not an option. If a receipt is lost (whether for a purchase or credit), the cardholder must obtain a duplicate from the Vendor. If a receipt is not obtained, the cardholder MUST reimburse the district for any charges that will appear on the credit card.

Acceptable Meal Receipt NOT Acceptable Meal Receipt


Acceptable Itemized Hotel Receipt

NOT Acceptable Hotel Receipt


FREQUENTLY ASKED QUESTIONS

What do I do with the receipt? SAVE THEM!!! They are very important. Scanned receipts must be attached to each transaction in Skyward. Keep original receipts and all other documentation in a file.

Will my transactions be checked? Yes. Each transaction will undergo an electronic approval process. In addition, there may be audits performed to verify compliance. It is very important for you to maintain all records.

What if I lose a receipt? Try to scan and attach receipts as soon as possible to avoid misplacing them. If a receipt is lost, contact the vendor to get a duplicate copy as soon as you can. If a receipt is not obtained, the cardholder MUST reimburse the district for any charges that will appear on the credit card.

What if I have a dispute or an incorrect charge? If you identify a problem with a charge, try and resolve it directly with the vendor. If the vendor refuses to issue credit or resolve the problem, dispute the charge by calling Citi Bank at 800-248-4553.This must be done in a timely manner.


Documents

Procedures - Credit Card · 2018. 7. 30. · Credit Card Security The credit card should always be treated with at least the same level of care that one would treat their own personal