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(a) Purchasing Card Policy.
(1) Purchases under $250.00. A purchase is the total on the receipt; not the price of each individual item bought. Purchases cannot be split to accommodate the $250.00 limit.
A. Purchaser gets verbal approval for purchase from department head and forwards purchasing information to cardholder.
B. Cardholder informs Finance Director, then places order with vendor and fills out monthly P-card report.
C. At month’s end the cardholder submits the P-card report to Accounting Clerk.
D. Department head signs and posts account number to receipt/confirmation and returns to Accounting Clerk who reconciles them to statement and P-card report.
E. Funds are encumbered and paid at the time the statement comes due.
(2) Purchases $250.00 to $5,000.00. A purchase is the total on the receipt; not the price of each individual item bought. Purchases cannot be split to accommodate the $250.00 to $5,000.00 limit.
A. Department head requisitions a purchase order and forwards purchasing information to cardholder. The body of the PO shows “P-card purchase” plus a description of item being purchased.
B. Finance Director approves the requisition and certifies available funds.
C. Mayor approves the requisition.
D. Copies of the PO are sent to Accounting Clerk.
E. Copy of the PO is forwarded to department head.
F. Cardholder informs Finance Director, then places order with vendor and fills out monthly P-card report.
G. Department head signs and posts account number to receipt/confirmation and returns to Accounting Clerk, who reconciles them to statement and P-card report.
H. Funds are encumbered prior to the purchase.
(b) Summary of Responsibilities.
A. Maintain card security to prevent unauthorized charges against account. Only the person whose name is printed on P-card can make purchases.
B. Obtain proper authorization before making purchases.
1. Under $250.00: Department Head/Finance Director verbal approval.
2. $250.00 to $5,000.00: purchase order approved.
C. When making purchases, identify yourself as a City of Avon Lake employee and give the tax exempt number embossed on the P-card.
D. Obtain a receipt at the point of purchase and verify it for accuracy. It is imperative to ensure the merchant does not charge State sales tax. Cardholder is responsible to get the vendor to remove sales tax applied in error.
E. Request confirmation number of purchases from vendor on telephone orders.
F. Print order page (receipt) when making Internet purchases.
G. Obtain supervisor's signature on purchases.
H. Maintain up-to-date P-card report.
(2) Department head.
A. Verbally approves under $250.00 purchases, countersigns receipts/confirmations and assigns account number.
B. Provide cardholder with all the necessary information to place order.
C. Forward receipts/confirmations to Accounting Clerk.
D. Requisitions a purchase order for purchases $250.00 and over and assigns PO number to receipts/confirmations on these purchases.
(3) Accounting Clerk.
A. Keep signed receipts/confirmations on file monthly.
B. Reconcile monthly statement with receipts/confirmations and P-card report.
C. Report any discrepancies to Finance Director immediately.
(4) Finance Director.
A. Daily administration of purchasing card program:
1. Set up and order purchasing for cardholders.
2. Give instructions and training as needed.
3. Recall purchasing cards and close accounts as needed.
4. Maintain account restrictions such as purchasing limits, vendor restrictions, etc.
B. Verbally approves under $250.00 purchases.
C. Approves the requisition and certifies available funds forward to Mayor for approval; process purchase orders.
D. Randomly audit P-card report for completeness.
E. Review all documentation receipts/confirmations and P-card report prior to payment.
F. Maintain year-to-date file of purchases and report to Audit Committee of Council on a quarterly basis.
G. Will be the card holder or appoint a designee in said position.
(5) Examples of proper purchasing card usage.
B. Auto repair and parts.
C. Stock replenishment.
F. Hotel lodging.
J. Travel and meal (approved).
K. Any properly approved purchase.
(6) Examples of unauthorized uses of Purchasing Card.
A. Cash advances.
1. Money orders.
2. Traveler’s checks.
2. Video rentals.
3. Bands, entertainment.
4. Golf courses.
5. Commercial sports.
6. Amusement parks.
7. Casino, betting, lottery.
D. Personal services.
1. Security brokers.
2. Insurance sales.
3. Child care/babysitting.
E. Fuel or gas at gas stations.
F. Any merchant, product or service normally considered being inappropriate by City standards.
Description of Goods/Services
Cardholder Department Manager
Note: Forward to Finance Director with monthly statement after Department Manager review.
(Ord. 20-08. Passed 2-11-08.)