The financial integrity of a museum is as important as proper collections
management. The points made in a previous post are not designed for "the
best of all possible worlds" they are minimal standards of prudent fiscal
policy. Obviously emergencies and unusual situation arise, and few would
criticize non-policy responses in extreme cases, but it is also equally true
that one can find a creative ways to meet fiscal control needs in a variety
of unusual circumstances. For example, I have dealt with hundreds of ethnic
(including Native American) vendors and performers and have always paid them
with institutional checks. My work-around in these cases has been to carry
sufficient personal cash, which I would give to these folks in return for
them endorsing their check to me. This met fiscal control policies while
giving the vendor immediate cash. If situations regularly arise that cannot
fit the existing fiscal policy then the policy needs to be changed with the
advice of an accountant/auditor and formal approval of the Board/Financial
Committee. Adherence to good fiscal policy is even more important in a small
institution than in a larger one. In a small institution you cannot hide,
and the possibility of negative consequences is more likely to significantly
impact the museum. Staff who fail to follow prudent fiscal policy, no matter
the motivation, need to be reprimanded on the record to protect the
institution from charges of lack of due diligence. To do otherwise is a sign
of mismanagement-again, no matter the motivation.
nburlakoff
-----Original Message-----
From: Museum discussion list [mailto:[log in to unmask]]On Behalf
Of Janice Klein
Sent: Tuesday, February 24, 2004 2:29 PM
To: [log in to unmask]
Subject: Re: use of credit card for purchases
I think there may be a "in the best of all possible worlds" response and a
"in the real world" response. In some cases, it may be the prudent thing
to spend the extra time to use a vendor with whom the organization has an
account. For those of you blessed with a large staff please remember that
going the extra miles can mean taking more personal time for the trip or
leaving the museum with limited or no staff during working hours. It's
wonderful to have a company credit card but it is also sometimes necessary
to use your own, write personal checks or pay cash and get reimbursed (it
is, of course, assumed that receipts are provided). This happens most often
here when dealing with Native American artists who rely on immediate payment
for their living expenses.
In this case it seems some clarification is necessary from the accounting
office and a frank discussion of what is and is not possible given the size
of the staff and the museum's needs. I would hope that those in the meeting
acknowledge that this is an opportunity to do so, rather than place blame.
Good luck!
janice
Janice Klein
Director, Mitchell Museum of the American Indian, Kendall College
[log in to unmask]
www.mitchellmuseum.org
-----Original Message-----
From: Museum discussion list [mailto:[log in to unmask]]On
Behalf Of Nicholas Burlakoff
Sent: Tuesday, February 24, 2004 11:50 AM
To: [log in to unmask]
Subject: Re: use of credit card for purchases
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
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