The post does not indicate whose credit card is under discussion. The use of
personal credit cards for company purchases is not a good idea and is
normally discouraged. If there is an institutional credit card, then I see
no problems with the process. Vendors who do not have accounts for the
institution, or who are not willing to set-up an account, are to be avoided.
Normally, vendors that work with institutions get a purchase orders. If you
were using you own card for purchasing the VD player you should have gone to
the store at which there is an account despite that fact that it was 10
miles out of your way. There are good reasons for the above policies: 1)
Working with known vendors, through established channels helps maintain
integrity of purchasing process; 2) Protects institution from possible
unauthorized purchases.; 3) Helps prevent possible fraud (for example, if
Walmart had a special a bonus gift for purchasing that DVD player and you
kept it, that would be fraud); 4) Helps prevent co-mingling of personal with
business functions. For example, if you decided to go to Walmart because you
needed to do some of your own shopping and then charged the institution
mileage, that also would be fraud; 5) Protects you from a possible
disallowance of your purchase for whatever reason.; 6) State and federal
money sometimes has all sorts of arcane prohibitions on purchases resulting
from embargoes etc., you may not be aware of a particular vendor's status in
relation to these requirements and buy from a disallowed company.
Please, don't misunderstand me, I am not saying, or implying, that you did
anything wrong. A good, auditor, however, will assume the possibility of
wrongdoing and recommend a course of action that will minimize risk of that.
The fact that you do not appear to have a purchasing policy (or it is not
strictly enforced) indicates to me that your supervisors should be in deeper
trouble than you. So, relax, take the probable tongue lashing on Wednesday
without becoming too defensive and "sin no more."
Good luck
nburlakoff
P.S. I have used my own credit card in some jobs and have reason to regret
those violations of good fiscal policy.
-----Original Message-----
From: Museum discussion list [mailto:[log in to unmask]]On Behalf
Of Sue Bodemer
Sent: Monday, February 23, 2004 4:27 PM
To: [log in to unmask]
Subject: use of credit card for purchases
Hi!
An auditing firm was just here and apparently did not like me (or other
managers) using my Amex card to purchase inventory or supplies for the shop
and/or museum. I have not been told anything directly, but I just received
a notice to attend a meeting "to discuss Am Ex charges and how to handle on
expense reports, in light of KPMG audit."
I want to be prepared before I go into the meeting. Do any of you use a
credit card for purchases -- either inventory or supplies? Some vendors I
deal with won't send me orders without a credit card. And sometimes, it's
just a matter of wanting the merchandise as soon as possible and not having
to wait for the accounting office to cut a check. (They only cut checks
once a month).
We have three plasma screens in our orientation gallery and I went to
Walmart to buy replacement dvd players so these screens aren't blank. Our
auditors thought I should have gone to Sam's Club because we have an
account. Walmart is 2 miles from my home (4 miles from work); Sam's Club is
14 miles from my home and 12 miles from work.
Can anyone give me advice before I go to this meeting? I believe it's
taking place on Wednesday.
thanks
Sue Bodemer
Operations Manager
Rockwell Museum of Western Art
111 Cedar St.
Corning, NY 14830
607-937-5386 (museum main number)
607-974-4162 (direct line)
607-974-4536 (fax)
[log in to unmask]
www.rockwellmuseum.org
=========================================================
Important Subscriber Information:
The Museum-L FAQ file is located at
http://www.finalchapter.com/museum-l-faq/ . You may obtain detailed
information about the listserv commands by sending a one line e-mail message
to [log in to unmask] . The body of the message should read "help"
(without the quotes).
If you decide to leave Museum-L, please send a one line e-mail message to
[log in to unmask] . The body of the message should read "Signoff
Museum-L" (without the quotes).
=========================================================
Important Subscriber Information:
The Museum-L FAQ file is located at http://www.finalchapter.com/museum-l-faq/ . You may obtain detailed information about the listserv commands by sending a one line e-mail message to [log in to unmask] . The body of the message should read "help" (without the quotes).
If you decide to leave Museum-L, please send a one line e-mail message to [log in to unmask] . The body of the message should read "Signoff Museum-L" (without the quotes).
|
