Credit Card, Loans, Bonds and Other Lines of Credit 031412

PINCKNEYVILLE COMMUNITY HOSPITAL POLICY AND PROCEDURE Title: CREDIT CARD, LOANS, BONDS AND Page: 1 of 2 OTHER LINES OF CREDIT Applies To: Category: Cash, Investments, Originator: Kara Jo Carson Donations Accounting Issuing Dept: Accounting Department Reference No.: ACC3100 Approved by: Originating Date: 03/14/2012 Effective Date: 04/08/15

Revised: ___April 8, 2015___ Kara Jo Carson, CFO/Compliance Officer Date (04/10/13 Not revised—new signing only) 04/08/15 ___April 8, 2015___ Thomas Hudgins, Administrator Date

PURPOSE:

To outline approval, usage and internal controls over corporate credit card, loans, bonds and other lines of credit opened by the Hospital, including any rewards programs offered through corporate credit card accounts.

POLICY:

1. Pinckneyville Community Hospital shall maintain corporate credit card accounts for means of processing payment for hospital operational expenses. Loans and other lines of credit, including bond issuance, may also be issued for operational purposes.

2. Approval by the full Board of Directors, based on recommendation from the Board Finance Committee, is required before opening new credit card accounts, loans, bonds or other lines of credit.

3. Corporate credit cards shall only be issued to the CFO, Administrative Office Coordinator and/or Administrator. Utilization of the corporate credit card account number shall be delegated for use by the Purchasing Agent and Accountant. All such use of corporate credit cards shall only be for payments towards hospital operational expenses. Actual cards and any documentation containing the full credit card number will be securely maintained.

4. Credit card statements and payment thereof are subject to the same internal controls over purchase authorization and check processing procedures. Said internal controls can be found in the “Internal Controls - Accounting and Payroll (ACC2010)” policy and “Invoice Approval and GL Expense Allocation Policy (ACC4030)” policy.

5. Copies of check registers and/or actual credit card statements shall be provided to the Board along with other check registers so as to review the payment detail. Copies of any such documentation shall exclude the full credit card number for security purposes. ACC3100 – Credit Card, Loans Bonds and other Lines of Credit 04-08-15 Page 2 of 2 6. The CFO shall maintain access to any rewards programs offered through corporate credit card accounts. Use of credit card rewards shall be solely for hospital operational purposes. Gift cards redeemed through a rewards program shall be maintained in the Administrator’s fireproof file cabinet. Records of issuance and utilization of credit card rewards shall also be maintained in that file for review and audit.

7. The Board of Directors delegates authority to the Administrator, Proxy Designee (as indicated on the Check Signature Proxy form) and Purchasing Agent to approve, for hospital operational purposes, new vendors that provide for lines of credit that enable invoice payment terms rather than payment up front upon purchase.