Business Office – Use of STC Credit Cards AA Round Up Wednesday June 25, 2008 Table of Contents STC Credit Card General Guidelines Fraudulent use of cards Lost or stolen cards Allowable/Non-allowable Business related expenditures STC credit cards HEB, Wal-Mart, Office Depot, Hobby Lobby Exxon General AP Guidelines for using STC credit cards 1. Not to be used for personal purposes. Must be business related (see explanation of Fraudulent Use – next slide) 2. Expense must be allowable (Alert Notice 2005-18) 3. Review credit card receipts for discrepancies or taxes charged prior to leaving vendor establishment 4. Turn in original credit card receipts to Accounts Payable with Financial Manager signature approval within 3 working days (keep copy for your records) 5. Keep secure and confidential 6. Do not transmit through campus mail. 7. Restrict access to appropriate and authorized personnel 8. Require all personnel involved in credit card handling to attend training at least annually. Fraudulent Use of the STC credit cards not allowed The term “fraudulent use” means the use of the credit card with a deliberately planned purpose and intent to deceive and gain a wrongful advantage for oneself or anyone else. The following actions will be taken: Removal of cardholder’s purchasing authority and card privileges Mandate employee reimbursement to the College Formal disciplinary action which may result in termination of employment Lost or stolen cards HEB Grocery, WalMart, Hobby Lobby and Office Depot Report the incident to Purchasing to prevent unauthorized usage Exxon Card Report the incident to the Business Office to prevent unauthorized usage Do not hesitate to contact Purchasing or the Business office-unauthorized usage of card might be charged to the department who last had the card, if the incident is not reported timely. Allowable/Non Allowable Business Related Expenditures A “business related expenditure” is generally accepted to mean an expenditure that is directly related to the operation of a functional area (i.e., instruction, student services, support services, etc.) in the fulfillment of its stated mission or objective as part of the College (i.e., program, department, administrative area, etc.). The term reasonable is defined to mean an amount that a prudent business person would expend to obtain that particular good or service on behalf of a public agency. This also infers that the good or service has been acquired under a competitive procurement process, when applicable. (see Alert Notice 2005-18) STC Credit cards Exxon (gas card) Gas cards are available for car rentals and for fuel and maintenance of STC owned vehicles only. The gas credit cards may not be used when travel is in a personal vehicle. In no case should the gas card be used to purchase food, snacks, souvenirs, etc. In the event that the cards are used for non-approved purchases, the driver of the vehicle is responsible for the cost of the purchase. Summary: STC credit cards payment process (HEB, Wal Mart, Office Depot, Hobby Lobby) Department Employee responsibility Review invoice before leaving vendor for accuracy and no sales taxes charged Turn in original invoice to AA as soon as they return from vendor Inform AA if purchase will be for larger amount than usual Financial Manager/Administrative Assistant responsibility Review open purchase orders, verify with department employees if they have any outstanding invoices to turn in Review vendor invoice for purchases that might be questioned by AP (invoices that have just item numbers, no description will be questioned) Ask FM to approve invoice within 3 business days of purchase date Turn in original approved invoice to AP within 3 business days of purchase Should there be discrepancies or items to be returned, please forward a copy of the invoice to AP with notes Please keep AP informed of all problem invoices, and any large purchases Summary: STC credit cards issuance process-car rental (Exxon – gas card) Department Employee responsibility Bring copy of car rental purchase order when requesting gas card Upon return from trip, Employee will bring completed Gas card log, original invoice and gas card back to Business office Business Office Employee responsibility Have sign out log filled out completely by department employee Will not hand out gas card without viewing a copy of the car rental purchase order, or verifying purchase order number Upon return – will take original invoice, make 2 copies, and give one copy to department employee with an IDT Financial Manager/Administrative Assistant responsibility Review car rental purchase orders and ask department employees for paperwork from Business Office Complete IDT, have Financial Manager approve and forward all paperwork to Business Office (General Accounting) within one week of car rental Review monthly gas card statement (forwarded by Business Office), reconcile transactions on gas card statement to your records, for accuracy and have Financial Manager approve purchases Return monthly approved gas card statement to Business office for filing in vendor statement before 10th day of the month following purchase Be aware that failure to submit the reconciled and approved gas card statement and IDT to the Business Office will result in automatic, temporary removal of credit card privileges. Summary: STC credit cards issuance processSTC Owned vehicle – card maintained at Business Office (Exxon – gas card) Department Employee responsibility Will inform Business Office employee whether needs card for gas only or oil change Maintain vehicle gas card log accuracy (if log located in vehicle) Will bring vehicle identification as well as odometer readings, gas card and original invoice to Business office as soon as fill up or services are complete Will take IDT form and copy of invoice to Administrative Assistant Financial Manager/Administrative Assistant Responsibility Complete IDT and have Financial Manager review transactions, match to invoices and approve within 3 business days of purchase Review monthly gas card statement, reconcile transactions with invoices and gas card log and have Financial Manager approve expenditures and return to the business office for the vendor file. Be aware that failure to submit the approved gas card statement and IDT will result in automatic, temporary removal of gas card privileges. Business Office employee responsibility Makes sure that department employee completes Gas card log (BO-7100) Makes 2 copies of original gas ticket and returns one copy to department employee along with IDT form AP will send copy of gas card statement monthly to departments who purchased gas or services for review and approval STC use of all credit cards Financial Manager responsibility: HEB, Wal Mart, Office Depot, Hobby Lobby – review all receipts to ensure that the charges incurred were authorized, appropriate, and legitimate expenses in accordance with College policy and procedures. Exxon – Gas Cards – On a monthly basis, the Business Office will forward copies of the credit card detail usage statements. It is the Financial Manager’s responsibility to ensure that the charges incurred were authorized, appropriate, and legitimate expenses in accordance with College policy and procedures.