AP Badge #03 Purchasing Cards and Credit Cards-AP Badge #3

AP Badge #3 - PowerPoint

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This document explains how Washington school districts can use purchasing cards, charge cards, credit cards, travel cards, and fuel cards for efficient, low-cost payment of small purchases. It distinguishes purchasing cards as charge cards that must be paid in full monthly, while credit cards allow borrowing and interest. The legal foundation includes RCW 43.09.2855 for credit cards and RCW 42.24.115 for travel charge cards, both requiring school board-adopted systems for distribution, authorization, spending limits, payment, and other operating rules.<br /><br />The document outlines benefits of purchasing cards for cardholders, vendors, and districts, such as faster purchasing, reduced paperwork, lower processing costs, better reporting, and possible bank rebates. It also highlights risks, including abuse, duplicate payments, and expenses that are not preapproved or encumbered.<br /><br />Strong internal controls and written procedures are emphasized. Districts should define allowable purchases, set spending limits, assign program administration, and require written agreements with card providers. Cards may be issued to individual employees, which is the preferred and safest option, or as generic cards checked out by authorized users. Individual cardholders should receive training and sign a Memorandum of Understanding or user agreement covering proper use, documentation, loss or theft, reimbursement for misuse, and consequences for violations.<br /><br />The document also details reconciliation and payment practices. All transactions must be supported by original, itemized receipts and reviewed by cardholders, managers, reconciler, and accounts payable. Accounts payable must verify business purpose, coding, sales tax/use tax, and delivery location, and then pay the card provider in full on time. Best practices include integrating bank software with district accounting systems, uploading transactions regularly, and promptly addressing exceptions.

Keywords

Washington school districts

purchasing cards

charge cards

credit cards

travel cards

fuel cards

internal controls

school board policy

reconciliation

itemized receipts