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

AP Badge #3 - PowerPoint

Pdf Summary

This WASBO Badge #3 curriculum explains how school districts can use purchasing cards and credit cards to streamline small-dollar purchasing, reduce accounts payable invoices, and cut manual processing. It outlines Washington legal authority: RCW 43.09.2855 permits districts to issue credit cards for official purchases, requiring the school board to adopt a system governing card distribution, authorization and control, credit limits, bill payment, and other administrative rules. RCW 42.24.115 authorizes travel charge cards for employee travel expenses (paid in full monthly).<br /><br />The document distinguishes card types commonly used in districts: procurement/purchasing cards (P-cards), credit cards, travel cards, and fuel cards. Purchasing cards are charge cards that must be paid in full each month and typically include monthly/transaction limits, merchant category restrictions, online approvals, and potential volume rebates. Credit cards allow borrowing and can accrue interest. Fuel cards are usually issued by gas companies for district vehicles.<br /><br />Benefits are described for cardholders (convenience, faster delivery, pricing, more vendors, less paperwork), vendors (faster payment, less paperwork, reduced nonpayment risk), and districts (simplified purchasing, lower processing costs, better purchasing data, decentralized buying, controlled limits/merchant categories, and rebates). Risks include duplicate payments, misuse, lack of preapproval, and lack of budget encumbrance.<br /><br />Strong governance is emphasized: board policy, written agreements with the bank, clear allowable purchase categories, spending-limit procedures (including written requests for increases), and careful card distribution. Best practice is issuing cards to named individuals with training and signed MOUs; generic/checkout cards require stricter custody, checkout forms, receipts, prompt return, and enforcement (including payroll deduction or repayment for unauthorized charges).<br /><br />Reconciliation and internal controls require itemized original receipts, manager approval, correct account coding, tax compliance, shipment verification, and exception handling. GFOA best practices recommend automated approval/reconciliation software, timely integration with district accounting systems, detailed uploads (preferably weekly), and paying the bank in full monthly per agreement terms (often via EFT).

Keywords

WASBO Badge #3

school district purchasing cards

P-cards procurement cards

Washington RCW 43.09.2855 credit cards

RCW 42.24.115 travel charge cards

accounts payable invoice reduction

small-dollar purchasing streamlining

card program governance and board policy

reconciliation internal controls receipts approvals

automated expense management and accounting integration