Corporate Credit Cards (B3)
SUBJECT:
Corporate Credit Cards
PURPOSE:
Provide policy and procedure related to corporate credit cards held by the University.
POLICY:
Graceland will authorize a corporate credit card for employees in certain positions, mostly those that require frequent travel. The employee is expected to maintain certain standards in the use of the card in order to keep the privilege of having the card.
PROCEDURE:
The President and all direct reports will be issued corporate credit cards.
Vice Presidents will make recommendation to the Vice President for Business Services for any employee in their area who they feel needs to have a corporate card due to travel requirements.
The VPBS will either approve or deny the recommendation for a card. If approved, the VPBS will also establish the credit limit for that specific card.
The Administrative Assistant for the VPBS will contact the University’s financial institution to issue a card in the name of the employee, with the approved credit limit. S/he will notify the Accounts Payable Clerk and the Director of Accounting Services of any new card issued.
Each employee will sign a corporate credit card agreement, indicating their agreement to abide by specified standards in regard to the use of the card. The agreement will include the established credit limit on the card.
- The employee agrees to use the card only for travel purposes, and for purchases that cannot be made using the established Purchase Order process, such as on-line purchases, memberships, or some conference registrations. If a purchase order can be used, then the corporate card should not be used. (See related Policy B1, Travel Expense Guidelines)
- All detailed receipts must be kept and reconciled with the monthly credit card statement. Original detailed receipts must be attached to the credit card statement, and returned to Accounting Services prior to the deadline indicated by Accounting Services. The budget number(s) for the expenses must be written on the credit card statement by the employee or support person so charges can be appropriately recorded.
- Supervisors and those with budget authority must authorize the expenses on the statement. A VP signature will be required if the total bill is $1,000 or over. Signatures must be original and legible.
- Use of the card for personal purposes is strictly prohibited. In cases of violation, the University may initiate a payroll deduction for any personal usage.
- Employees must return their cards to the Administrative Assistant for the VPBS upon termination of employment.
Misuse of a corporate card for personal or unauthorized purchases, or failure to meet the deadline to return corporate card statements to Accounting Services, may result in cancellation of the card.
- The Accounts Payable Clerk will notify the employee, supervisor, and the Director of Accounting Services of any misuse of a card, or of any failure to meet the statement deadline.
- The Director of Accounting Services will track instances of abuse, and will notify the employee and the supervisor of action that will occur in case of a subsequent instance of abuse.
- Upon the second abuse of using the card for personal purposes, the Director of Accounting Services will notify the employee and supervisor and the Administrative Assistant for the VPBS to cancel the card immediately.
- Upon the third abuse of using the card for unauthorized purposes (purchases where a purchase order should have been used instead), the Director of Accounting Services will notify the employee, supervisor and the Administrative Assistant to the VPBS to cancel the card immediately.
- Upon the third abuse of missing the statement deadline to Accounting Services, the Director of Accounting Services will notify the employee, supervisor and the Administrative Assistant to the VPBS to cancel the card immediately.
- Upon reaching a new fiscal year, employees whose card was revoked due to making Graceland purchases that should have been made with a purchase order, may be issued a new card upon appeal to the VP of Business Services.
- Employees whose cards were revoked due to use for personal reasons or due to inability to meet the statement deadlines cannot receive a new card.
INDEX: Corporate Credit Cards Business 3 (B3) Approved by Executive Council June 8, 2004 See also: B1 Travel Expense Guidelines
