​​​​

1. Purpose

This policy establishes guidelines for the issuance, use, and management of corporate credit cards at Northern Lights Library System (NLLS). It ensures responsible usage, financial accountability, and compliance with organizational policies.

2. Corporate Credit Card Authorization & Limits

1. Authorization: Corporate credit cards may be issued to employees with approval from the Executive Director, Finance Officer, or Board Chairman.
2. Spending Limits:
   • Cumulative Credit Card Limit: $50,000
   • Fuel Credit Cards: $5,000 (for use with NLLS vehicles only)
3. Cardholder Responsibility: Employees issued an NLLS corporate credit card must sign the Appendix B Credit Card Policy Acknowledgment Form, confirming their agreement to comply with this policy.

3. Permitted & Prohibited Use

1. Permitted Use:
   • Corporate credit cards may only be used for business-related expenses, including:
     • Travel expenses (flights, hotels, transportation).
     • Conference registrations and approved training.
     • Office supplies and equipment.
     • Other pre-approved budgeted purchases.
2. Prohibited Use:
   • Personal purchases.
   • Cash advances.
   • Non-business-related expenses.

4. Receipt Submission & Documentation

1. Cardholders must submit receipts for all transactions within one (1) week of returning to work.
2. If a receipt is lost, a Missing Receipt Affidavit must be completed and submitted to the Finance Officer.
3. Failure to submit receipts within six (6) months will result in denial of reimbursement for employee-incurred expenses.

5. Handling Unauthorized or Personal Purchases

1. Personal Purchases: If an employee accidentally charges a personal expense to an NLLS corporate credit card, the charge:
   • Must be reported immediately to the Finance Officer.
   • Will be deducted from the employee’s next paycheck.
2. Unauthorized Non-Personal Purchases: Any purchase made outside of an employee’s job scope must be repaid via payroll deduction unless alternative repayment arrangements are approved by the Executive Director.
3. Policy Violations: Unauthorized card use may result in disciplinary action, up to and including termination.

6. Corporate Credit Card Cancellation

1. Employee Departure:
   • Upon an employee’s resignation, termination, or transfer to a non-cardholder role, the Finance Officer must:
     • Immediately cancel the corporate credit card.
     • Ensure the employee returns the card before their last working day.
   • Employees must not retain or use the card after departure.
2. Annual Review of Active Cardholders:
   • The Finance Officer will conduct a yearly review of active credit card users to determine if all issued cards are still required.

7. Management of Recurring Subscription Charges

1. All recurring corporate credit card subscriptions must be documented and linked to a responsible department.
2. The Finance Officer will conduct a quarterly review of all recurring charges to ensure:
   • Services are still required.
   • Charges are accurate and aligned with active business needs.
3. Any unnecessary or outdated subscriptions must be canceled immediately to prevent continued charges.

8. Annual Review of Credit Card Spending Limits

1. The Executive Director and Finance Officer will conduct an annual review of:
   • The cumulative credit card limit ($50,000) to ensure it meets organizational needs.
   • The fuel card limit ($5,000) for ongoing fleet operations.
   • Any departmental spending trends requiring limit adjustments.
2. Recommended changes to spending limits will be incorporated into the annual budget planning process.

9. Rewards and Loyalty Points

1. Corporate Credit Card Points: Any reward points earned through corporate card use remain NLLS property and will be accounted for in the annual budget.
2. Employee Loyalty Points: Employees using personal credit cards for business purchases that are reimbursed by NLLS may retain any loyalty points earned on their personal account.
3. Employees are responsible for any tax implications.

10. Compliance & Enforcement

1. Employees must adhere to all provisions of this policy.
2. Misuse or non-compliance may result in:
   • Revocation of corporate card privileges.
   • Disciplinary action, up to and including termination.