(a) Purpose. The City of Bedford administration, recognizes the value of an efficient method of payment and recordkeeping for certain expenses. Therefore, the purpose of this policy is for the City of Bedford's Mayor, Administrative employees and the employees authorized at the discretion of the Finance Director and City Manager to comply with a credit card policy for proper public purpose expenditures and recordkeeping. The Finance Director and City Manager, along with City Council approval, authorizes the use of City credit cards in connection with City/Department related activities and that only those types of expenses that are for the benefit of the City and serve a proper public purpose shall be paid by credit card.
(b) What is Considered a Credit Card and What is Not Included in This Policy? HB 312 section 9.21(H) as used in this section:
(1) "Credit card account" means any bank-issued credit card account, store-issued credit card Account, financial institution-issued credit card account, financial depository- issued credit card Account, affinity credit card account, or any other card account allowing the holder to purchase goods Or services on credit or to transact with the account (SAM's Club credit card), and any debit or gift card account related to the receipt of grant moneys. "Credit card account" does not include a procurement card account, gasoline or telephone credit card account, or any other card account where merchant category codes are in place as a system of control for use of the card account.
(2) "Political subdivision" means any, body corporate and politic that is responsible for government activities in a geographic area smaller than that of the state. "Political subdivision" does not include a county.
(3) This credit card policy oversight, rules and regulations, encompass all purchasing though the opening of an Amazon Prime or similar purchasing program while utilizing a credit card payment.
(4) The possession or use of a debit card account except for law enforcement purposes is prohibited. This prohibition does not apply to debit card accounts related to the receipt of grant moneys.
(c) Oversight of all Credit Cards.
(1) The Finance Director shall maintain possession and administration of all credit cards and establish a system for cards to be signed out, returned, the rules, procedures and regulations, and the types of expenses that can be charged to the card (proper public purposes only). Any expense deemed a proper public purpose can be paid using a credit card, provided a purchase order is secured in advance of the purchase (this excludes travel expenses. See travel expense policy for these expenses).
(2) Any employee once deemed eligible and authorized to utilize a City credit card may do so only under the terms, procedures and conditions of this policy.
(3) The City Council by this section authorizes the Finance Director to review available credit accounts to determine which account type, account provider, and credit limit would best meets the needs for the City. The Finance Director and City Manager will determine how many accounts, and the number of credit cards to be issued to each department. The Finance Director and City Manager, will establish a process for issuance, reissuance and cancelation.
(4) The City of Bedford's name must appear on any credit card, associated with any city purchases.
(d) Rules and Regulations. Procedures.
(1) Credit cards are permitted for business materials, supplies, small dollar amount equipment expenses and travel expense costs, which fall under the Travel Policy. Business meals are allowed (see travel policy) for Economic Development purposes, luncheon meetings with Government Organizations, Administration and meetings with corporate leaders to enhance business prospects and increase employment within the City. When economic development meals are deemed necessary and charged, a to/from memo shall state who attended the luncheon, the proper public purpose of the meeting and shall address when and why the meeting was held, (the meeting must be approved by the City Manager and the Finance Director).
(2) No cash withdrawals are authorized utilizing a credit card. This includes any proper public purpose transactions.
(e) Compliance Officer.
(1) Recognizing the importance of segregation of duties, and oversight functions, HB 312 has required a compliance officer to be assigned for internal review of transactions outside of the Finance Department. This employee is to review the itemized receipts when any items charged by an employee are unsubstantiated or in violation of a proper public purpose. The compliance officer, upon discovery of a theft or any misuse of a credit card, may follow through with any reimbursement methods necessary to recover funds. The City will assign this compliance officer duty to the Police Department's Chief or Deputy Chief. These services will be utilized throughout the year and when any suspected loss occurs from purchases with credit cards, notification of misuse by any employee, or with review of any non-public purpose charges on a credit card.
(2) A compliance officer shall review quarterly the following:
• The number of cards and accounts issued,
• The number of active cards and accounts issued,
• The cards and accounts expiration dates and credit limits,
• Review of itemized receipts.
(f) Positions Authorized to Use Credit Cards. The employees included in Administration are the Mayor, Council members, City Manager, Law Director, Finance Director, all other Directors and Chief, Assistant Directors, Deputy Police Chief and Assistant Fire Chief. Other credit cards are authorized and assigned to employees as deemed necessary by the City Manager and Finance Director. (See Schedule A attached to original Ordinance 9676-19 - for detailed list of assigned/authorized cardholders, expiration dates, and credit card limits).
(g) Purchasing Procedures.
(1) Itemized (detailed) receipts along with any approved expense memo, must be returned to the Finance Department accounts payable clerk substantiating the exact amount charged to the card. Any meals charged shall not be the highest priced item on a menu. Meal costs are limited to a twenty percent (20%) gratuity (per the travel policy). No alcohol shall be charged and paid for on the City Credit Card. Every effort is to be made by employees to notify and provide vendors with an Ohio Sales Tax exempt form (available in finance), City of Columbus Hotel/Motel tax exempt form, City of Dublin Hotel/ Motel/tax exempt form etc.
If, and only if, the merchant refuses to waive the sales or hotel motel tax, the employee and the Finance Director are authorized to pay the costs.
(2) The administration employees or department directors for all other employee card holders shall authorize payment by signing the original detailed receipt and forward along with the approved memo to the Finance Department. Supplies purchased on the credit card need cardholder and director's signature only, no memo is required. The Finance Department must have this information in order to process payment; all information will be attached to credit card statement.
(3) An administration employee or other employee card holder is liable in person and upon any bond or criminal insurance policy has given to the City of Bedford, and is to reimburse the treasury for any amount he/she fails to provide itemized receipts and/or for any unauthorized use of a credit card as required by this credit card policy.
(4) An employee who loses or needs cancelation of their credit card, must see the Finance Director or Account payable clerk for cancellation immediately.
(5) Any employee who suspects the loss, theft, or possibility of unauthorized use of a card must notify the City Manager, Finance Director or compliance officer immediately.
(6) Non-conformance to the above policy will result in the loss of credit card privileges.
(7) Any employee who knowingly misuses a credit card for the purposes not authorized violates ORC section 2913.21.
(8) The fiscal officer or the fiscal officer's designee annually shall file a report with the legislative authority detailing all rewards received based on the use of the political subdivision credit card account.
(Ord. 9676-19. Passed 3-18-19.)