GRF credit card procedures explained

PRESIDENT'S COLUMN

by Janet Isom

GRF President

Today we will be looking behind the curtain at the inner workings of the GRF accounting process, especially as it pertains to posting credit card transactions into our General Ledger of Accounts.

GRF categorizes all credit card charges in our accounting software to the department that made and authorized the purchase. Occasionally an expense may be misclassified, not through ill intent or a desire to hide information. Sometimes an expense is entered into a category other than the obvious choice for other reasons.

With that in mind, let’s discuss the $3,643.94 worth of Lands End Squall jackets purchased on Dec. 17, 2023 for our Physical Property inspectors and Service Maintenance staff. This purchase was coded to the Administration Department and to the General Ledger Account for Gifts. To be clear, these jackets were not employee gifts, but rather necessities for those who work out in the elements.

The reason for classifying under the Gift category was due to having already spent the allocated funds in our uniform budget for the year, yet still having a need to properly outfit our employees. The existing all-weather gear was no longer suitable to keep those employees dry and warm, as they service an area over 532 acres including Trust property (amenities, roads, drains, roofs, sewers, etc.) and 6,608 apartments. These are not your basic fleece jackets. The quality of the jackets insured we would get 12-36 months of wear. They included a GRF monogram and the employee’s name, in order to easily identify personnel to any GRF Member.

The types of jobs performed by our Physical Property inspectors and Service Maintenance crews prohibit wearing a hanging ID card, due to safety concerns.

GRF established a Corporate Credit Card policy on Oct. 27, 2022. It specifically describes in detail our company policy on employee use of companyissued credit cards, including Guidelines, Permitted Use, Cardholder Responsibility, Prohibited Use, Reporting, Documentation, Audit and Review procedures, and Disciplinary Action. An acknowledgement form agreeing to comply by this internal employee use policy was signed by any employee issued a company credit card.

There is staff review (typically department heads) and approval of the initial purchase request submitted at the departmental level before a charge is made to a GRF credit card.

The next step occurs when the executive director reviews and uploads the credit card transactions into CoreData, so the Finance staff can then review and code the transactions into the General Ledger expense account categories. Once that is accomplished, the last step of the process being final approval of all purchases of goods and services by the GRF treasurer and GRF president. GRF adopted the policy 605600-3 Corporate Credit Card Procedure on Oct. 22, 2024. It specifically describes in detail our company policy on credit card procedures and protocol that have been in place for years. The procedure ensures that all credit card expenditures are properly managed, reviewed, and approved to maintain financial accountability. The newly established Finance Committee recommended to the Board that the existing procedures be documented into a written policy, for greater transparency.

Despite beliefs to the contrary, GRF does have policies and procedures that guide all of our financial transactions. Our yearly audits are performed by Clifton, Allen Larson, an outside auditing firm. More details to come.

Credit card purchases are reviewed by department staff, the executive director, Finance staff, the GRF treasurer and the GRF president.