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Credit Card Use/Guidelines

This policy outlines the regulations, guidelines, internal controls, and responsibilities in the use of the Ellsworth Library credit card.

CREDIT CARD USE/GUIDELINES

 

Prepared for: Ellsworth Public Library

Prepared by: Janet Adix

Approved by: Board of Trustees

 

June, 2012

Reviewed: February 2013

 

 

Credit Card Use/Guidelines Policy

 

Policy Statement

The Ellsworth Public Library director will have use of a credit card to purchase needed materials and supplies. This will modernize and streamline facilitation of purchases.

Regulations

The Library Director shall have available upon approval of the Library Board, a credit card, to be used ONLY for goods or services for the official business of the library.

  1. Documentation detailing the goods and services purchased must be submitted before payment can be approved.
  2. The Director is responsible for the protection of the credit card and will immediately notify the financial institution issuing the card if the card is lost or stolen.
  3. If the card is used inappropriately by the Director, the Director will be responsible for any charges incurred, and will also be reviewed by the Library Board and subject to termination.
  4. The Library will use disciplinary measures consistent with current law for unauthorized use.
  5. Any items purchased from the use of the credit card will be the property of the Library.
  6. Only credit cards that have no annual or monthly fee will be used.
  7. The credit card shall be returned to the Ellsworth City Clerk BEFORE the Library Director leaves the job as Director of the Ellsworth Public Library.

Guidelines

 

A. CARD USE- A credit card will only be issued to the Library Director. It will be honored for Library business by any vendor or merchant who accepts

the card. The card has an authorized maximum spending limit of $1,000. Purchases made via the credit card must comply with the Library’s financial

policy and purchasing guidelines. This card in no way changes such policies. It merely provides a method for making certain payments.

Violations of the Library Credit Card Policies and Guidelines may result in revocation of use privileges and termination of employment. Anyone who

has inappropriately used the credit card will be required to reimburse the Library for all costs associated with such improper use.

B. TRANSACTION PROCEDURE- All credit card transactions can be performed in person, over the internet or phone, or through the mail. When the credit card is used, the Guidelines below shall be followed:

1. Tell the merchant that payment will be made with the Library’s credit card and that it is a non-taxable purchase.

2. Retain all receipts and credit card slips.

3. Follow Library Guidelines for approval and payment of the charges in advance of using the card.

C. TAX EXEMPTION- You must notify the vendor or merchant that your credit card transaction should be tax exempt if it is for goods or services purchased in the State of Iowa. A letter on Ellsworth Public Library letterhead should be presented to the vendor if it requests documentation for tax and audit purposes.

D. ITEMS THAT CAN BE PURCHASED WITH THE CREDIT CARD- The credit card may be used for any of the following expenses:

1. Library Materials, Equipment, Supplies, and Operating Expenses.

2. Continuing education class registration fees.

3. The credit card may not be used for personal or non-Library use.

E. CREDIT CARD SECURITY

1. Credit Card Account Number- The City Clerk will keep a permanent record of the card, the credit limit established, the date issued and the date returned.

2. Use by someone other than the cardholder-The only person entitled to use the credit card is the Director whose name appears on the face of the card.

3. Lost or Stolen Cards- If the credit card is lost or stolen, the City Clerk is to be immediately notified. The City Clerk will notify the issuing agency.

 

Internal Control Guidelines

 

A. BOOKKEEPER’S RESPONSIBILITIES

1. Upon receipt of the credit card statement, the City Clerk is responsible for reviewing the statement for accuracy. This will include reconciling original receipts to the statement transactions.

2. The City Clerk will prepare the statement for payment on the next available bill listing. If necessary, checks will be issued prior to approval of the warrant list to avoid finance charges. All charge slips must be given to the City Clerk and attached to the credit card bill when it arrives. The City Clerk will verify that the expenditure and the bill are accurate. The receipt should contain information certifying the appropriate use of the card.

3. The City Clerk will be responsible for coordinating the waiving and/or reversing of any and all annual fees and/or finance charges.

4. The City Clerk must retain the approved credit card statements and accompanying receipts on file for seven years.

B. LIBRARY DIRECTOR’S RESPONSIBILITIES- The Director is responsible for ensuring activity and account information is noted on the credit card statement for each line of entry. The Library director will sign the statement for approval of payment. The approval will attest to the appropriateness of the expenditures.

1. Will use the credit card in compliance with the Library’s Financial Policy and Purchasing Guidelines.

2. Retain all sales slips/register receipts. These receipts must be submitted to the City Clerk to reconcile against the monthly credit card statement. Library Guidelines for management approval and payment of charges must be followed.

3. Ensure that the credit card guidelines are met.

4. Report lost or stolen cards to the City Clerk immediately.