Credit Card Usage Policy, 2008

Consensus: 9 Nov 2008

Objective

The purpose of the TVC credit cards is to assist those community members who regularly pay for TVC goods and services by making purchasing more convenient. In particular, it is to replace the practice of having these members pay out of their own pocket and be reimbursed. Instead, by using a TVC credit card, we help reduce the burden on members who have, in the past, incurred TVC expenses and were inconvenienced by the delays in reimbursement. We thus recognize that a few members typically incur a greatly disproportionate share of the TVC expenses because of their roles in the community.

Credit Card Use

The credit cards shall be used solely for TVC business-related expenses that have been approved according to the decision-making policy.

Whenever possible, we will ask vendors and service providers to establish accounts with TVC or to send their bills to the management company. If this is not feasible, the credit card can be used in lieu of paying for the item and seeking reimbursement. Appropriate charges on the TVC credit card include goods and services for community maintenance and repairs. Examples include, gardening and landscaping supplies, tools and maintenance equipment and materials, cleaning supplies, emergency services, magazine subscriptions, and memberships.

The credit cards may never be used for any personal purchases or expenses. Any charges incurred by the cardholder that are not documented and approved in accordance with this policy shall be reimbursed promptly by the cardholder. The cardholder will not withdraw cash from the account or use any PIN number or checks associated with the account.

He/she will immediately destroy any checks or PIN numbers received for the account. The card or card information may not be given to another member. If another member desires to charge a purchase, such charge is permissible only if the cardholder makes the purchase. Such purchases will be the cardholder’s responsibility.

If the credit card is lost or stolen, the cardholder must report it immediately to the credit card company, the treasurer, and the management company.

If a designated TVC cardholder does not comply with the credit card policy, the member is subject to immediate loss of access to the card. Cardholders are responsible for restitution of any personal or unauthorized use within one week of receipt of the credit card bill. TVC may seek repayment for such expenses as for any other homeowner debt to the association.

The management company shall pay the credit card bill in full each month by the due date, whether or not it has received the approval forms (unless directed to challenge an expense).

Charges Approval Process

All charges must be approved in writing by 1) the team budget point person or team point person and 2) the treasurer, or in his/her unavailability, another TVC board officer. However, approvals cannot be by the cardholder or a member of her/his household—if the cardholder or a member of her/his household holds one of these positions, the alternative person listed above must approve.

In addition, any charge that exceeds $1000 requires pre-approval in writing from the same two people (except in case of emergency, when the procedure for emergency decisions will apply). A charge is considered to be all the purchases from a single vendor within a 2-day period.

The credit card holder must provide itemized receipts or other written documents that include the transaction date, the itemized purchases, and the store/vendor for any goods or services purchased with the credit card and make notations, as needed, on the receipts to clarify the purpose of the purchase.

The cardholder and the team budget point person or team point person will review the monthly statement for accuracy within one week of its availability online or in hard copy, and submit it to the treasurer with the appropriate form, signatures, receipts, and, if necessary, written documentation of pre-approval. The treasurer will review, sign, provide these materials to the management company, and retain a copy for TVC records. [sic]

Procedures for Designating TVC Credit Cardholders

The Board will approve specific members for credit cardholder designations, based on recommendations by teams. No more than two TVC members will be the cardholders at any one time, and prior to any member becoming a cardholder, he or she must be formally approved by the Board and must accept the TVC Credit Cardholder Agreement” and the “Takoma Village Cohousing Credit Card Usage Policy.

The treasurer will distribute the “TVC Credit Cardholder Agreement” form and the “Takoma Village Cohousing Credit Card Usage Policy” to the designated TVC member, and will ensure the two forms are reviewed and signed before the card is distributed to the member. The original signed forms will be filed with the secretary with a copy to be provided to the treasurer.

TVC will obtain credit cards with the lowest costs. The credit limit will not exceed $2,000 for each card.

When the member holding a TVC credit card is no longer in a position that requires the use of the credit card or is moving out of TVC, the card is to be returned to the treasurer, and the card will be canceled.

A list of all approved cardholders will be maintained by the treasurer.

I have read and understand the above policy and procedures, and agree to abide by them.

____________________________________ __________________

Cardholder Signature …………………………………Date