FINANCIAL ACCOUNTING


FLEET CARD


POLICY

The Fleet Card is a University credit card that is used for departments that own vehicles and for Enterprise Rental Cars that are used for travel from Terre Huate, Indiana only. It is a Mastercard credit card that can be used for the purchase of fuel and repairs for the department-owned vehicles, and fuel only for Enterprise Rental Cars.

PROCEDURES

  1. DEPARTMENT FLEET CARDS
    1. Department Card Issuer. The department will designate a person to be the Fleet Card Issuer. The fleet cards are on a billing cycle from the 16th of one month through the 15th of the next month. The fleet card limits are $400 per transaction, $600 per cycle, and five transactions per day. If the card limits need to be changed, contact Ernie Kramer. The Department Card Issuer will have responsibilities as follows:

      1. Keep the fleet cards locked in a safe place at all times.

      2. Explain the policies and procedures to the person that is receiving the cards for use.

      3. Contact the Program Administrator when a fleet card is lost or stolen to ensure that the card has been cancelled.

      4. Have the person requesting a departmental vehicle fill out the Card User Agreement.

      5. Verify the information on the Card User Agreement and verify that the person has a valid driver's license.

      6. Explain the responsibilities to the person receiving the fleet card.

      7. Verify that the person receiving the fleet card has passed the defensive driving course offered by the University before they are allowed to drive a University vehicle.

      8. Obtain the fleet card from the person traveling after the trip has been completed.

      9. Collect all original receipts from the person that received the card upon his/her return.

      10. Print the expense report, reconcile it, and attach all original itemized receipts to the expense report. Sign and date the expense report, and have your supervisor review and sign and date the expense report. If there are missing receipts, instruct the person to whom the card was issued to contact the vendor to get a duplicate receipt for the University.

    2. Responsibilities of the person to whom the fleet card was issued

      1. The person that the card is issued to will have read and accepted the terms of the Card User Agreement.

      2. Report a lost or stolen card immediately. The procedures for this can be found in the glove box of the vehicle. Also, contact the Department Card Issuer.

      3. The fleet card is for purchases pertaining to the University vehicle only. The fleet card is NOT to be used for personal purchases.

      4. Obtain an original itemized receipt either from the pump or inside.

      5. If the fleet card is charging a grant, the principle investigator of the grant will have to approve the use of the index before the trip is started.

    3. Fleet Cards that are given to a person at the local Enterprise Rental Car agency

      1. The Fleet Cards given out when renting a car from the local Enterprise Rental Car agency are for fuel for the rental vehicle only. If there is a problem with the vehicle, you will contact the nearest Enterprise Rental Car agency so they can exchange the vehicle. You will not be paying for any repair or service expenses.

      2. When you are adding fuel to the rental vehicle, get an original itemized receipt. That receipt should be kept in the pouch until you turn in the rental vehicle at the local Enterprise Rental Car agency. At that time, the receipt is turned in with the keys.

      3. It is your responsibility to fill up the gas tank before you turn in the rental vehicle.

      4. It is your responsibility to notify the local Enterprise Rental Car agency when you have turned in the keys, if you have placed the keys in a drop box at Facilities Management building. If you do not telephone the local Enterprise Rental Car agency, the daily charges for the rental vehicle will continue until you have notified them.

  2. RECORDKEEPING AND AUDITING PROCEDURES
    1. Fleet Card Recordkeeping

      1. Billing Cycle – The billing cycle is from the 16th of one month to the 15th of the next month.

      2. Fleet Card Register – There is no register for Fleet Card recordkeeping, as all purchases that are made with the Fleet Card are vehicle-related.

      3. Fleet Card Payments – The Fleet Card payments to JPMorganChase will be made by the Office of the Controller. The departments using the Fleet Cards will not need to make payments.

      4. Sales Tax – Indiana State University is subject to sales taxes on fuels and lubricants. You will see these charges on your receipts, unless they are built into the unit price of the item purchased.

    2. Additional Fleet Card Recordkeeping Duties

      1. Fleet Card purchases for Grants – When a purchase of fuel or other automotive items is made, the principal investigator (PI) of a grant will need to approve of the use of the Fleet Card for charges on their grant before any charges should be made. The department needs to establish internal controls for the Fleet Card to ensure that only eligible charges are incurred using the card. These controls should be similar to the department’s requisition approvals process prior to a requisition being entered into Banner.

      2. Fleet Card Expense Report – The department’s Fleet Card Issuer will receive an email statement from the Fleet Card Auditor. This will need to be reconciled with the original itemized receipts. The department will assign a reviewer to review the transactions. The departmental reviewer will have to reconcile the Expense Report for accuracy and appropriateness of each transaction.

      3. Original Itemized Receipts – The person charging an item on the Fleet Card will have to obtain an original itemized receipt from the vendor. This will detail what is purchased, the quantity purchased, and the unit price of what is purchased. A credit card receipt will not be accepted, because it does not tell us what was purchased or the quantity or price of what was purchased.

      4. Fleet Card Recordkeeping – The Fleet Card Expense Report must be signed and reviewed by department personnel. The department will send the Fleet Card Expense Report and the original itemized receipts to the Office of the Controller, Fleet Card Auditor. There is a locked box in the lobby of the Office of the Controller into which the paper documents can be placed.

    3. Fleet Card Auditing Procedures

      1. The Fleet Card Auditing Procedures are established to verify that the Fleet Cards are being used appropriately by the Fleet Card Users, that the departments are maintaining the records, and that the Purchasing department and the Office of the Controller know about any problems or certain trends that can be addressed to assist the Fleet Card Users and the departments with future transaction processing. The Fleet Card Auditor will audit every department’s Fleet Cards monthly. The State Board of Accounts will select a number of department’s Fleet Cards to audit each year for appropriateness of transactions and record keeping procedures.

      2. The Fleet Card Auditor audit issues are described below:

        1. Inadequate documentation to support purchases

        2. Inappropriate purchases

        3. Purchase split to get around the maximum transaction amount.

        4. Fleet Card Expense Report and original itemized receipts must be received in the Office of the Controller by the 15th of the next month after the end of the Billing Cycle.

      3. Fleet Card Users and Departments may be subject to disciplinary action, including termination, for the following non-compliant situations:

        1. Use of the card for personal purchases.

        2. Not reporting a lost or stolen card timely.

        3. Other excessive violations of Fleet Card procedures.

      4. Repayment of Transactions

        1. Personal purchases will need to be repaid to the University within two weeks of the audit. A memo will be sent to the Fleet Card User and the department Fleet Card Issuer stating the transaction date, the amount of the transaction, and why it is inappropriate.

        2. If a Fleet Card transaction has no original itemized receipt, the Fleet Card User (person using the card at the time of transaction) will have to contact the vendor to get an original itemized receipt. If the Fleet Card User can’t get a duplicate itemized receipt, the Fleet Card User will have to fill out a missing receipt report and get all appropriate signatures. If the Fleet Card User has a problem obtaining all original itemized receipts, his privilege of having the Fleet Card will be reviewed for further action.

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