(a) Purpose. The 132nd Ohio General Assembly enacted House Bill 312 (HB 312), which amends Ohio Revised Code sections 505.64, 511.234, 940.11, 940.12, 1545.072, 1711.131, 2913.21, 3313.291, and 3375.392 and enacts sections 9.21, 9.22, 717.13, 3313.311, 3314.52, 3326.52, 3328.52, and 6119.60 of the Revised Code, and mandates all political subdivisions to adopt a formal policy for credit card and debit card usage. This policy conforms to the written policy requirements of HB 312 to assist in the prevention of abuse and/or misuse of municipal owned credit card and debit cards.
(b) Authority. This policy is prescribed under the provisions of HB 312 and by ordinance of the Carlisle Council. The Finance Director, as the fiscal officer for the City of Carlisle, is responsible for the enactment and provisions of this policy.
(c) Definitions. This policy adheres to the definitions as outlined in the Ohio Auditor of State's Bulletin 2018-003 and HB 312.
(d) Model.
(1) The Municipality of Carlisle, Ohio hereby adopts the credit card policy known as the “Compliance Officer Model” as described by the Ohio Auditor of State's Office Bulletin 2018-003.
(2) The City Manager shall appoint a Compliance Officer who will monitor credit card usage and report quarterly to the City Manager and City Council. The Compliance Officer may not be a credit card user and may not authorize credit card use. The Compliance Officer may not be the Finance Director.
(e) Presentation Instrument. All municipal owned credit cards must have the municipal corporation's name appear on the card.
(f) Authorized Users.
(1) The following employees are authorized users of City credit cards and will have a card issued in their name along with the name of the municipality.
A. City Manager
B. Finance Director
C. Fire Chief
D. Police Chief
E. Service Director
(2) Employees not listed above may use a generic City credit card if the Finance Director grants them prior approval. The Finance Director is authorized to acquire one or more generic credit cards which have the municipality as a named user. The Finance Director reserves the right to deny any employee the use of a credit card.
(g) Unauthorized Users. If an unauthorized user uses a credit card, it is deemed misuse of a credit card account. Such misuse is punishable under the Penalty and Liability section of this policy.
(h) Length of Usage. Other than the authorized users, credit cards may not be out of the control of the Finance Director longer than a normal business day. Scenarios that call for longer usage, such as travel, emergencies, and/or extraordinary circumstances, maybe granted on a case-by-case scenario and must be pre-approved by both the Finance Director and Municipal Manager. Credit cards not returned in a reasonable time-usually a business day-can be deemed as misuse of a credit card.
(i) Authorized Uses.
(1) Credit cards may be used for authorized purchases. An authorized purchase is one that and has a purchase order issued and not in conflict with any other section of this policy.
(2) All purchases more than $500 (five hundred dollars) shall not be made using a blanket purchase order but must have an approved requisition specifically for the item being purchased.
(3) Spending limits established for each card:
A. Single transaction: $1,500, unless specifically authorized by the Finance Director and City Manager with a purchase order;
B. Card limit: $7,500;
(4) The splitting of purchases into separate transactions to avoid any of these requirements is strictly prohibited.
(5) Itemized receipts must be retained on all credit card transactions. Transaction without receipts and transactions with receipts that are not itemized are considered unauthorized. See "Receipt of Transaction" for more information.
(6) Certain uses that are strictly prohibited:
A. ATM/cash advances or any other cash-related activities;
B. Purchasing of automobiles;
C. Purchasing of alcohol, tobacco, or any other substance(s) that are commonly purchased at a pharmacy.
D. Purchasing any item for personal use or for the personal use of a co-worker, citizen, subordinate, or superior.
E. The Finance Director may also prohibit certain uses of credit cards.
(7) If a personal purchase is made with a credit card and/or credit card account, the user of that transaction shall reimburse the Municipality for that purchase immediately.
(8) If an unauthorized purchase is made but can be returned to the vendor for full refund, the user who made the transaction shall return the item and is not subject to reimbursing the Municipality.
(9) If an unauthorized use of a credit card is made, it is deemed misuse of a credit card. Such misuse is punishable under the Penalty and Liability section of this policy.
(j) Sales and Use Tax.
(1) Sales and/or use tax should not be paid on any credit card purchase. The Municipality of Carlisle is a municipal corporation and is exempt from state and local sales or use tax.
(2) If a purchase is made at a vendor that does not have the Municipality's federal tax ID number, a tax exemption certificate shall be obtained from the Finance Director prior to the purchase.
(3) If sales and/or use tax is made on a purchase with a credit card, the user of the credit card shall contact the vendor to seek reimbursement of the sales and/or use tax paid. If the sales and/or use tax cannot or will not be reimbursed by the vendor, the City Manager or Finance Director may require the user of the credit card to reimburse the City.
(k) Receipt of Transaction.
(1) All users who make transactions with a credit card must also retain an itemized receipt of all transactions of that purchase. Receipts that only list the total and/or do not list all of the items, and the cost of each, of that transaction are not valid. Transactions made without receipts are considered unauthorized.
(2) If an itemized receipt is lost and/or missing, the user of that transaction must attest on a form held by the Finance Director of all the items made during that transaction and certifying that all transactions were approved and lawful. This is to be used on an absolute limited basis.
(3) Transactions without an itemized receipt or an approved form, are considered misuse of a credit card and punishable in the Penalty and Liability section of this policy.
(4) The receipt shall be submitted to the Finance Director immediately with the credit card at the time of return.
(l) Credit Card Accounts.
(1) The Finance Director, and/or their designee, is responsible for the issuance, re-issuance, cancellation, and the process for reporting lost or stolen credit cards.
(2) If a user of a credit card loses a credit card, the user must report to the Finance Director immediately of the loss and complete a form held by the Finance Director. Once completed, the Finance Director will cancel the lost credit card and immediately reconcile all the transactions on that credit card statement to ensure authorized use. If an unauthorized use occurred, the use will be disputed.
(m) Disputed Transaction. If a transaction occurs that is disputed, the user of the credit card who was in custody of the credit card during the disputed transaction shall complete a form held by the Finance Director certifying that the use should be disputed. The Finance Director shall be responsible to contact the credit card company to dispute the charge.
(n) Monthly Statements and Balances.
(1) The Finance Director, and/or their designee, shall reconcile the monthly credit card statements to ensure all transactions are lawful and authorized.
(2) The monthly credit card statement shall be paid in a timely manner to avoid any interest and/or penalties. Under no circumstance shall a monthly balance intentionally remain from month to month to acquire interest on the transaction. The only circumstance a transaction shall remain on the statement from one month to another is if there is a dispute of that transaction. In this case, the dispute shall be made to the credit card company and be removed by the company if the transaction is incorrect.
(o) Credit Card Rewards. Any rewards and/or other fringe benefits received by the issuance and/or use of a credit card shall not be for personal use and if at all possible, not be granted on any credit card account. If rewards and/or other fringe benefits are unavoidable, the Finance Director shall, at least annually, compile a listing of all rewards and/or fringe benefits and present it to the City Council for review. Such review by the Municipal Council is to ensure no misuse of such rewards and/or fringe benefits for non-official business.
(p) Debit Cards. Debit cards are not permitted under law to be owned and/or used by the Municipality. The only exception to this is in the case of law enforcement use and/or the receipt of grant moneys.
(q) Penalty and Liability.
(1) An officer or employee of the political subdivision or a public servant as defined under Ohio R.C. Section 2921.01 who knowingly misuses a credit card account held by the legislative authority violates Ohio R.C. Section 2913.21, which is a misdemeanor of the first degree.
(2) An officer or employee is liable in person and upon any official bond the officer or employee has given to the political subdivision to reimburse the treasury for the amount for which any authorized use.
(r) Considerations. If any part of this policy or the usage of municipal owned credit cards and debit cards is unclear or omitted, consult with the Finance Director, as the custodian and administrator of this policy, for a final determination.
(Ord. 1-19. Passed 1-8-19; Ord. 24-23. Passed 10-10-23.)