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

Video Transcription

Video Summary

The training explains how school districts use purchasing/charge cards and credit cards to streamline small-dollar purchases, reduce invoices, and lower transaction costs. It reviews Washington legal requirements (RCW) that allow districts to issue cards for official purchases and require board-adopted systems for distribution, authorization, controls, spending limits, and payment rules.<br /><br />It distinguishes card types: purchasing/procurement cards (a charge card paid in full monthly, with spending limits, merchant restrictions, approvals, and possible rebates), credit cards (allow carrying balances and create debt with interest), travel cards (for employee travel expenses), and fuel cards (typically issued by fuel companies). The presenter notes terminology is often used interchangeably, adding confusion.<br /><br />Key implementation guidance includes adopting written policies and procedures, defining allowable purchases, setting and documenting limit changes (preferably via written requests), and choosing whether to issue individual cards (best practice, lower risk) or generic “checkout” cards (higher risk, need custodians and strict tracking). Training and signed cardholder MOUs are required, including consequences and written authorization for payroll deductions for misuse.<br /><br />The reconciliation section emphasizes itemized receipts, timely approvals, frequent uploads (weekly preferred), tax compliance (use tax, excise exemptions), monitoring shipments to district locations, handling exceptions, and paying the bank in full even if documentation is missing.

Keywords

school district purchasing cards

charge card reconciliation

Washington RCW procurement requirements

board-adopted card controls

purchasing card policy and procedures

cardholder MOU and training

spending limits and merchant restrictions

receipt documentation and approvals

use tax compliance and exemptions