20230511AVU to CP 3 Attachment A.pdf

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Corporate Credit Card Policy
Policy
It is Avista’s practice, under certain circumstances, to issue corporate credit cards to employees to pay for corporate material purchases, department expenses and/or business travel expenses. The Corporate Credit
Card Program (“Program”) is intended to streamline the purchasing and reconciliation processes in compliance with the Policy and applicable accounting practices.
This Policy outlines the purchasing and payment process, the types of purchases that can and cannot be made, records that must be maintained, reconciliation for each statement cycle, and other information relating to the use of a corporate credit card.
Assignment Criteria
Corporate credit cards may be assigned to employees based on the job requirements outlined below.
Approval by the cardholder’s direct supervisor, vice president and the Treasury Department is required.
Extended Remote Assignments or Significant Out of Pocket Expenses Credit cards may be issued to designated line crews for extended assignments and for use during an emergency as outlined by the Emergency Operating Plan (“EOP”).
Travel Arrangements Travel reservations can be booked by the employee or other designee. To support this effort, credit cards can be assigned to a department’s designated employee for centralized ticketing, hotel accommodations, rental car reservations, conference fees, etc.
Corporate Purchasing Transactions Cards may be assigned to Supply Chain staff and/or sponsors of corporate agreements (i.e. vehicle fuel,
licensing, tools, etc.). Additional cards may be assigned to employees responsible for high volume, low dollar material purchases typically transacted in the field. These card assignments are monitored by Treasury for compliance with corporate purchasing guidelines.
Departmental Transactions Cards may be assigned to a department’s designated employee for purchases approved by the department manager or next higher authority for business related expenses.
Prohibited Card Use
Corporate credit card use is prohibited as identified below:
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• Charges that are not reimbursable under the Travel & Expense Reimbursement Policy may not be
charged to a corporate credit card.

• Personal purchases including travel and meal expenses for the employee and the employee’s
spouses/children/friends or other expenses not pertaining to Company business. In the event a
personal expense is incurred, the cardholder is expected to: o Make arrangements with the vendor to split the charges so that any personal expenses are charged directly to the employee’s personal credit card, or o Contact their Manager and the Program Administrator immediately for instructions on how to reimburse the Company.
• Purchases for liquor stores, tobacco products, explosives, health and medical care, hazardous materials, and ATM transactions. General Use & Administration
• Lost or stolen credit cards MUST be reported to: o Wells Fargo directly by calling 1-800-932- 0036 (same as on the back of your card). This is a 24-hour Customer Service line for Wells Fargo Credit Cards.

o Jen Robinson at 509-495-8868 or, in her absence, contact Denise Burns at 509-495-4725. A replacement card will be processed by the Bank upon authorization from the Program
Administrator.
• Several corporate agreements have been secured to address everyday material, equipment, and service needs. A listing of all corporate agreements is available from Supply Chain Management.
• Cardholders should scrutinize potential purchases to determine if a price is fair and reasonable. Cardholders should consider expenditures made for Company purposes in the same manner a personal purchase would be considered.
• Purchases for miscellaneous business-related expenses require manager approval prior to making the
purchase.

• Receipts are required for all transactions $25.00 and above. Cardholders must attempt to obtain a
copy of the receipt from the vendor. If unable, the cardholder must submit. in writing. description of the
transaction to be uploaded to Wells Fargo CEO.

• All transactions must be clearly supported in terms of the business purpose. Specifically, all meals must
include documentation of the business purpose, date, place, and the names of the person(s) dining.
The reason for purchase must be clearly documented in the detailed explanation screen of the
reconciliation on the Wells Fargo Commercial Electronic Office (CEO) website.

• Each cardholder’s manager or the next higher authority with the appropriate authorized signature authority will review transactions and approve expenditures using the online approval process. Co-workers, subordinates, or managers in other departments are not authorized to approve an employee’s expenditures. Managers cannot approve card expenditures made on their behalf by an authorized cardholder. Managers are responsible and will be held accountable for card use or misuse by
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their employees.
• Random audits by the Program Administrator, Internal Audit and External Audit may be conducted on credit card transactions to ensure employees comply with this Policy.
• Any deviation from this Policy will require approval from the cardholder’s manager and the Program
Administrator. Department Cards for Travel

Department credit cards may be issued to departments that have frequent travelers. As a security measure, a designated employee’s name will be assigned to the card to protect that card and the back of the card must be signed by the person listed on that card. Information on Travel Services can be found on the Travel
website. Gift Cards
Gift cards may be purchased using a corporate credit card for the purpose of employee recognition or employee giveaways. Such purchases must be reported to Payroll as taxable income to the employee. An email must be sent to Payroll detailing the recipient’s name and the dollar amount of the gift card. Gift cards given to contractors are not subject to this procedure and do not need to be reported to Payroll. Small Dollar Material Purchases
Corporate credit cards may be used for miscellaneous small dollar material purchases. Refer to the Supply Chain Procedures for more information. The following rules apply for small dollar material purchases:

• Inventoried materials and tools should be obtained from Avista storerooms, if available, to ensure
compliance with engineering material standards and minimize supplemental expenditures.

• Employees are expected to honor corporate agreements with preferred suppliers when making purchases on behalf of Avista. A number of these agreements include local supplier branches located throughout the Company’s service territory. Contact Supply Chain Management for more information about preferred suppliers.
• Credit card material purchases are limited to $1,000. Purchases should not be split to circumvent this dollar limit. Contact Supply Chain Management for assistance with larger value purchases.
Reconciliation Procedures
The following monthly account reconciliation procedures are to be performed by all cardholders/reconcilers: • The statement period for the credit card is the fifth (5th) day of the month through the fourth (4th) day
of the following month (i.e., 4/5/22– 5/4/22).
• Cardholders must retain all original credit card transaction receipts for 90 days. An image of each receipt must be attached to the electronic statement on the Wells CEO website. Cardholders should attempt to obtain a copy of the receipt from the vendor. If unable, the cardholder must submit, in writing, a description of the transaction to be uploaded to Wells Fargo CEO.
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• Cardholders must complete their reconciliation online by logging into the Wells CEO website. Once in the system the appropriate accounting and description of purchases must be entered. When entering the accounting information into Wells CEO Website, it is important that the appropriate Project and Task accounts are utilized. Refer to the Regulatory Accounting Guidelines and Policies Manual to determine the correct accounts to use. When all detail has been entered, click the “Review Complete” button. This will automatically send an email to the approver, notifying them that the statement is ready for approval. Managers are responsible to ensure expenditures are appropriate.
• The Program Administrator has the authority to close any card for individuals who are continually late
in completing the monthly reconciliation on the Wells CEO website.

• In the event there are charges on the Cardholder’s statement that belong to the approver (i.e,.airfare, hotel etc.), the approver should: 1) approve the statement online and 2) obtain written approval for
those charges from the approver’s manager. Disputed or Fraudulent Charges A fraudulent charge is one that is not authorized by the cardholder. The cardholder/reconciler must immediately report fraudulent charges to Wells Fargo and the Program Administrator. Prompt reporting of fraudulent charges helps prevent the cardholder and Avista from being held responsible for such charges. If a charge on the cardholder’s statement does not agree with the receipts, first contact the vendor to resolve the error. The vendor will process a credit to the card if they agree with the error. If the vendor does not agree with the error, report the item to the Wells Fargo Fraud/Customer service group as a disputed charge.
Contact the Program Administrator for further instruction and assistance. Misuse of Corporate Credit Cards
Misuse of corporate credit cards may result in disciplinary action and closure of the credit card. Misuse can include the following:
• Failure to retain receipts for reconciliation purposes
• Multiple failures to submit credit card reconciliations on time
• Personal expenses on the card
• Unauthorized purchases The first violation will result in a warning to the cardholder and may result in notification of the employee’s direct supervisor. Depending on the extent of the misuse, the card may be withdrawn after only one violation. The second violation may result in closure of the credit card and the employee’s manager will be notified.
Misuse of the corporate credit card may result in disciplinary action up to and including termination of employment.
If the corporate credit card is closed due to misuse, a new card may not be reissued for up to two years. Reinstatement will require approval by the employees’ manager and Vice President with additional approval by the Treasury Department. Any violation thereafter may result in permanent closure of the card as well as disciplinary action as deemed necessary by the employee’s manager in consultation with Human Resources. Disciplinary action may be taken if any manager authorizes improper expenditures and/or requests improper usage of the card by an employee.
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Program Administrator Responsibilities The Program Administrator is responsible for the overall administration of the Program. The Program
Administrator’s responsibilities include, but are not limited to the following:
• Assigning new cards to individuals and departments after first making sure all necessary paperwork is completed, approved, and submitted including approval by the appropriate Vice President.
• Monitoring usage and expenditures on all cards on a regular basis. The Program Administrator will alert appropriate management of possible misuse of cards. However, the cardholder’s manager is
ultimately responsible to assure appropriate use of the corporate credit card by their employees.
• Maintenance of card limits as requested and approved by the cardholder’s manager. All limit increases will be reviewed by the Treasury Department. The Program Administrator may suggest a decrease in the monthly limit of specific cards if appropriate based on the approver’s signature limit.

• Closing/Cancellation of cards for terminated cardholders, employees that no longer require the use of
a corporate card, or due to misuse.
• Sending a monthly alert to cardholders/reconcilers and approvers when reconciliation reports and approvals are due to the Program Administrator.
• Providing training and assistance to new cardholders, reconcilers, and approvers, as needed. Questions & Contacts For questions regarding this Policy or any aspect of the Program, please contact: Jennifer Robinson Program Administrator [phone] OR Denise Burns Back Up Administrator [phone]
Revised: 08/15/2022

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