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

Video Transcription

Video Summary

The video explains how school districts can use purchasing cards, credit cards, travel cards, and fuel cards under Washington law (RCW 43.09.2855). It distinguishes between charge cards, which must be paid in full each month, and credit cards, which allow balances to carry and may charge interest. Purchasing cards are highlighted as a cost-effective way to reduce paperwork, speed purchasing, and simplify accounts payable.<br /><br />The instructor reviews legal and policy requirements, including the need for school board-adopted procedures covering card distribution, spending limits, authorized uses, payment methods, and controls. Best practices include written agreements, training, and clear approval processes.<br /><br />Two cardholder models are discussed: individual cards, which are the preferred best practice because they offer stronger security and accountability, and generic department cards, which carry higher risk and require strict checkout/check-in procedures. Memoranda of understanding are required for cardholders and should cover responsibilities, documentation, lost or stolen cards, reimbursements, and consequences for misuse.<br /><br />The video also covers reconciliation and payment. All transactions must be supported by itemized receipts, reviewed for proper coding, tax, and business purpose, then approved and uploaded in a timely manner. Accounts payable must pay the bank statement in full each month, even if documentation is incomplete.

Keywords

school district purchasing cards

Washington law RCW 43.09.2855

charge cards and credit cards

accounts payable

board-adopted procedures

cardholder agreements

purchase card reconciliation

itemized receipts

fraud prevention controls