(a) Purpose. The purpose of this policy is to ensure that City issued credit cards and/or store-issued credit cards are closely monitored to provide for maximum security and to guard against misuse and/or losses for which the City may be held liable. This policy is meant to comply with the mandates of Sub HB 312 enacted by the 132nd General Assembly.
(b) General Information. This policy describes the procedures for appropriate credit card use. By signing the Credit Card Agreement form, the employee promises to comply with program rules and regulations. A credit card will be issued to an employee upon approval of the City Manager, with concurrence from the Director of Finance, and after the employee executes a signed Credit Card Agreement Form. Upon receipt of the card, the employee should immediately sign the back of the card and keep it in a secure place. Each employee should keep a current record of transactions and receipts to protect himself/herself and the City. These records are important internal control elements of the electronic purchasing process and essential to the success of the credit card program.
(c) Credit Card Accounts. The term “credit card account” shall mean any bank and/or financial institution-issued credit card account, and/or store-issued credit card account.
(d) General Guidelines.
A. City credit cards are to be used for legitimate City purposes. Examples of legitimate City purchases include travel, training, meals while attending training away from work, materials, supplies, Worker’s Compensation premiums, City of Dayton Water invoices, and online purchases when approved by the City Manager. The City issued cards are NOT for personal purchases, cash advances, alcohol or entertainment purchases, and any purchase or service that is not considered “official City business”, or any use of city funds considered “inappropriate”. Inappropriate use of credit card will be cause for disciplinary actions up to and including termination. All City credit cards shall be in the name of the “City of Brookville”, and cardholder’s name where possible.
B. Each person that is issued a credit card will be responsible for maintaining spending under its spending limit, within the monthly billing cycle.
C. Bank and/or financial institution-issued credit cards will be issued to the City Manager and Department Directors with a predetermined spending limit.
City Manager, VISA - $3,000
Director of Finance, VISA - $3,000, and MasterCard - $350,000
Director of Fire VISA - $1,500
Director of Police, VISA - $1,500
Director of Service, VISA - $1,500
D. Store-issued credit cards will be issued to city employees deemed necessary for the efficient operation of a City Department and approved by the City Manager and the Director of Finance. Store-issued credit cards will be kept in the possession and control of each Department Head, or designee. Each store-issued credit card will have a predetermined spending limit. Each department shall secure the cards in a safe place. Each Department Head, or designee must keep a master list of all employees who are permitted to use City store-issued credit cards, along with each employee’s title. A copy of the master list must be on file with the Compliance Officer and must remain current.
E. Any employee needing to use a card must go to the Department Head, or designee holding the card and sign the card in and out on this log. A list of the card names showing date, sign out time, sign in time, signature of person using the card, is to be kept by the Department Head, or designee. The Department Head, or designee must initial each entry on the log indicating approval of the card’s use and the purchase. A copy of this information is to be forwarded to the Compliance Officer monthly.
F. The City of Brookville is a tax-exempt government entity. Purchases shall be obtained without tax. Tax exemption forms may be obtained through the Finance Department. When traveling, hotel/motel charges, transportation charges and fuel charges will most likely be taxed since tax exemption applies only to sales within the State of Ohio. Hotel/Motel taxes, fuels taxes are not exempted. When using the credit card at a restaurant and/or motel, an itemized receipt is required to be submitted with a requisition.
(e) Policy Administration. The Director of Finance is responsible for administration of City credit cards to include but not limited to, selection of card provider, payment of credit card bills, managing issuance of cards and ensuring proper use. Credit card users shall obtain itemized receipts for each transaction and provide the same to the Director of finance daily, or as soon as reasonably possible. The purpose of the transaction shall be clearly indicated on the receipt and on the requisition.
(f) Procedure for a Damaged, Lost or Stolen Credit and/or Store issued Credit Card. It is the responsibility of the employee to immediately report a damaged, lost or stolen credit card to the Director of Finance.
Should a store-issued credit card be lost or stolen, it is the responsibility of the employee to immediately report a damaged, lost or stolen credit card to the Department Head, or designee, who in turn will contact the Compliance Officer.
(g) Discrepancies and Dispute Procedures. The employee that makes the purchase is responsible for following up with a vendor for any erroneous charges, disputed items, or returns. Disputed charges can result from failure to receive goods or services, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. The employee should contact the vendor first to resolve any outstanding issues. Most issues can be resolved in this way. The Director of Finance should receive a copy of the “Credit Card Dispute Form” to assist in resolving the discrepancy or dispute.
(h) Employee Transfer and Termination.
A. Should a cardholding employee discontinue employment with the City of Brookville, they will be responsible for returning their credit card to the Director of Finance, prior to any last pay and/or benefits being issued.
B. In the event a cardholding employee terminates without returning the credit card, the Director of Finance will immediately terminate card benefits with the financial institution. The Director of Finance shall document such action on a memo, that includes the signature of the City Manager. The original, signed memo will go in the employee’s personnel file.
(i) Requests for Store-Issued Credit Cards or Changes to Existing Cards.
A. All requests for store-issued credit cardholders will be on an official City memo and go only to the City Manager.
B. Any changes to existing store-issued credit cards will only be approved by the City Manager.
(j) Renewal of Existing Credit Cards. A renewal credit card will be sent automatically to the card holder prior to the expiration of the existing card. The old card will need to be returned to the Director of Finance, who will destroy the old cards.
(k) Compliance Officer. Brookville City Council authorizes the Director of Finance to appoint a Compliance Officer within the Finance Department. The Compliance Officer will ensure the detail and documentation is provided on all transactions. The Compliance Officer will review all credit card transactions and management reports to ensure that the cards are being used appropriately. The Compliance Officer will provide a detailed report on a quarterly basis to the Director of Finance who will then provide the report to City Council that provides the number of active cards and accounts issued, credit limits, expiration dates, and any other information required to be included in the report to City Council. The Director of Finance will also report annually to City Council all rewards received based on the use of the City’s credit card accounts.
(l) Monthly Reporting. The Director of Finance shall present to City Council credit card amount transaction detail from the previous month. City Council shall review the credit card account transaction detail and the presiding officer of City Council shall sign an attestation stating the City Council reviewed the credit card account transaction detail.
(Res. 19-02. Passed 1-15-19.)