| MSUE Administrative Handbook: Financial |
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SECTION: FINANCIAL
SUBJECT: Credit Cards and Debit Cards
POLICY: Credit cards may be obtained for official business use. Debit card capability is prohibited.
APPLIES TO: MSU Extension off-campus offices.
PROVISIONS/RESTRICTIONS:
General
The credit card is a privilege
granted to offices. It
must be used in a responsible and appropriate manner. Periodic
audits of credit card statements and
monthly statement reconciliations will be conducted by Internal Audit. In addition, any suspected questionable
activity will be referred to Internal Audit for further
investigation.
The university will seek restitution for any inappropriate charges made
to the
card. Fraudulent or intentional misuses (including personal use
of the
card) will result in revocation of the card, possible criminal charges,
and/or
discipline up to and including termination.
PROCEDURES:
The CED or an individual
independent of the administrator (individual
responsible for reconciling credit card activity) should serve as the
custodian
of the credit cards and be responsible for safeguarding and controlling
credit card
use. The credit card will be locked
in
a secure location (a safe) by the custodian when not in use. Staff must consult with the custodian
prior
to using their credit cards and initiating an expense. When
the staff have consulted with the
custodian and have approval to use their card, a log must be signed by
the
staff in order to take possession of their card. When
the card is returned to the custodian,
both the staff and the custodian sign the log to indicate the card has
been
returned. This log should include the
date the card was signed out and the date it was signed back in.
At the discretion of the
CED, the office may establish spending limits
and identify routine spending actions that may be executed without
additional
approvals by the CED.
The credit card accounts
must be credited when goods and products are
returned to the vendor. We can not
accept cash or store credit reimbursement for returned items.
Staff must familiarize
themselves with reporting procedures for list or
stolen office credit cards. Cards must
be properly safeguarded against theft.
Documentation
The staff member using
their card will provide the original itemized
receipt or invoice, to the individual that is designated as the
administrator,
as documentation of expenditures within three (3) business days of the
purchase.
Staff not following the
above procedures will be personally responsible
for their purchases, and credit card privileges will be suspended.
Receipt of Statement
and Reconciliation
Each month the
administrator will receive the statements to open and reconcile
the charges. To reconcile, the
administrator will obtain the log from the custodian and reconcile the
statements
to the log and receipts submitted and evaluate the business purpose of
each
transaction. It is recommended that the
office use Quick Books or Quicken to account for and reconcile the
monthly
statement, although established accounting methods may be adequate as
deemed by
the CED. Subsequent to the
reconciliation and payment, the County Extension Director will review
the
account statement against the reconciliation method and signify
approval by
signature on the statement before filing.
The County Extension Directors have ultimate responsibility for
monitoring credit card use to ensure the card is only used for
legitimate
business purposes.
Credit Cards with Debit
Capability
Debit card acquisition for
extension use is prohibited. Due to
security and financial accountability
this is not an acceptable financial practice.
DATE: July 1, 2007