What are your policies and procedures around auditing?

What are your policies and procedures around auditing?

Red Card provides food purchasing and ordering services to athletic organizations that enables their athletes to use a mobile application to purchase approved food products from participating internal food services, restaurants, grocery stores, and other similar food vendors (“Locations”) as agreed upon by Red Card and the Organization. Red Card performs an additional monitoring service to provide reasonable assurance that the items purchased are compliant with the rules and regulations of the Organization. The audit policies below outline how Red Card will monitor for accuracy and compliance.

Accuracy of transaction charges

Red Card will review all transactions for accuracy by vouching the transaction amount to the receipt provided by the Location. Each Location signs a service agreement that certifies the requirements below.

·        Markups. The Location agrees not to mark-up the purchase price or place any surcharges on goods purchased by an athlete. Red Card will monitor for these markups but will not verify the amount charged is the same amount as present on the menu. When a potential markup is apparent on the receipt, Red Card will contact the Location to resolve the issue. If it is determined that the markup took place it will be adjusted off the transaction amount and the Organization will not be charged.

·        Discounts. The Location agrees not to provide a discount to a student athlete that is not available to the general student population or to the public. If a discount is present on a receipt it is assumed to be an approved discount unless otherwise identified. (“Athlete discount”, etc.)

·        Unreadable Receipts. An Unreadable Receipt occurs when the auditor cannot determine what was purchased or how much those items cost. In the case where a receipt is not auditable, Red Card will process payment for the transaction. Once a readable receipt is obtained, it will be audited and any adjustments to the transaction will be processed at that time.

·        Collecting the full amount charged from the athlete. If the athlete purchases items in excess of their remaining meal balance, the balance due should be collected from the athlete with another form of payment accepted by the Location. The athlete is responsible for paying the excess charges and shall not receive any portion of their meal without payment in full. Red Card does not verify that the additional amount was collected or how it was paid.

·        Transaction Processing. The Location agrees to process all receipts through the tablet. Red Card provides dashboard access and weekly reporting for the Location to ensure all transactions were recorded. If a Location submits a receipt to us after the time of the transaction Red Card will record the transaction up to the amount the athlete has available on that historical meal. If the athlete no longer has funds available on that meal, the transaction will be marked as Undercharged and will appear on the weekly athletic statement as a potential compliance concern.

Compliance with Athletics Regulations

Red Card will provide Services in accordance with the Athletics Regulations communicated by Organization.  The Organization is responsible for conveying relevant Athletics Regulations to Red Card in written format. If modifications are made to existing Regulations all future transactions will be reviewed for the new requirements, however, historical transactions will not be modified. Red Card’s audit team will review each transaction in accordance with the Regulations communicated. If no written communication is provided Red Card will audit for the following items:

·        Alcohol and/or alcoholic beverages

·        Tobacco and/or nicotine products

·        Highly caffeinated beverages, which shall include any energy drink with more than 100 mg of caffeine. Coffee and soda are permissible items.

·        Drugs, pharmaceuticals, dietary supplements, herbal medications, vitamins, and/or over the-counter medications 

·        Durable goods, which shall include any non-food or beverage item

·        Gift cards

·        Donations


Audit findings will be communicated to the Organization in the Transaction table of the Red Card dashboard. Filtering the Transaction Status will assist in narrowing down to specific findings by team and date. Each week an excel statement will detail all findings and will support the amount the Organization is responsible to pay. The various statuses are described below:

·        Reviewed: OK: It appears that the transaction was charged an accurate amount and all other compliance requirements were met

·        Unreadable Receipt: We were unable to audit the receipt in its entirety because we either couldn't determine what the athlete ate, or the accuracy of the amount charged. The Location also receives this report so they can upload a new receipt image to be reviewed.

·        Adjusted: The transaction is either adjusted for accuracy of amount or does not appear to meet the Regulatory requirements. There will be a corresponding transaction with the same transaction identification number that will describe the reason for adjustment and the amount adjusted. Red Card does not pay the Location for items that have been adjusted for noncompliance nor are they included in the invoice. We provide this detail to the Location to prevent future noncompliance. The athlete’s balance will reflect the adjusted balance if the meal is active.

·        Under Review: You may occasionally see this status. This means we are investigating something on the receipt with the Location


Red Card is committed to providing accurate and timely findings to the Organization and works closely with each Location to provide readable and compliant receipts.

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