147.05 CREDIT CARD POLICY.
   (a)   Purpose.  
      (1)   This policy establishes an orderly process for the authorization, handling and use of the Village of Carrollton credit card (purchasing card). This policy is applicable to all Village elected and appointed offices and departments. It applies to all purchases and purchase-related documents prepared or processed by the Village departments regardless of the source of funds. The responsibilities, authorities and contracts set forth in this policy and related policies and procedures must be adhered to by all Village of Carrollton elected and appointed officials as well as all departments. The primary purpose of the credit card (purchasing card) system is for those vendors that desire immediate payment without issuing a business charge account or for seldom used vendors.
      (2)   These procedures apply to the Village of Carrollton credit cards only. The Mayor and/or Clerk-Treasurer may grant exemptions and/or exceptions.
   (b)   Policy Statement. To promote operational efficiency and to simplify our internal ordering process for purchase of goods and services, the Village of Carrollton has opted to use a credit card (purchasing card). The credit card has been established to provide a convenient, efficient means to purchase commodities and services from vendors. The credit card is intended only for Village business transactions. This program is designed to delegate authority and responsibility to purchase items directly for the departments; however a requisition and purchase order to the Banking Company issuing the credit card is still required. Each department is responsible for managing its cardholder accounts in a manner that conforms to this policy and guidelines established by the Village of Carrollton. A number of unique controls have been developed for the credit card purchasing program that does not exist in a traditional credit card environment. These controls ensure that the cards can be used only for specific monthly dollar limits. In addition, each cardholder is required to certify all purchases before the bill is submitted for payment.
   (c)   Definitions.
      (1)   Approving Official - Elected/appointed official or department superintendent responsible for certifying credit card charges for official Village business.
      (2)   Cardholder - Elected/appointed officials or employees of the Village of Carrollton who is issued a card and who has authority to use it for Village business.
      (3)   Eligible Goods - All commodities and capital items that cost less than $2000.00 and sufficient funds have been appropriated except:
            Worker compensation purchases
      (4)   Credit Card (Purchasing Card) - a credit card issued for official Village business.
      (5)   Workers Compensation Purchase - Any medical service, treatment or equipment related to an on-the-job injury.
   (d)   Procedures.  
      (1)   The Card.
         A.   The purchasing card is a credit card, similar to a personal credit card, which authorizes a cardholder to buy eligible goods and services. The card is specifically designed showing the name of the Village of Carrollton Business Card on it to avoid being mistaken for a personal credit card. The card is subject to existing Village purchasing policies.
         B.   The purchasing card (credit card) may be used for making Village purchases of $2,000 or less. The master credit card will have a higher limit and will be issued in the name of the Clerk-Treasurer. Higher purchases may only be made upon authorization of the Clerk-Treasurer and/or the Mayor after determining there are sufficient funds appropriated to cover said higher purchases. The objectives in using the purchase card are to expedite procurement and reduce purchasing and related payment paperwork by reducing the number of purchase order transactions for eligible purchases and in use for traveling purposes. Under no circumstances is the purchasing card to be used for personal purchases.
      (2)   How to obtain the card. The master credit card will be issued to the Clerk- Treasurer with a limit to be established by the issuing banking institution. Additional cards will be issued having a credit limit of $2,000.00 to the Village Administrator and those employees designated by their superintendents, which will be at least one employee or superintendent per department. All credit card account numbers will be on file in the office of the Clerk-Treasurer, who will have the authority to close the account upon termination of the cardholder.
      (3)   Cardholder. The cardholder is the individual to whom the card is issued. The purchase card bears the cardholder’s name and may only be used by the cardholder. No other person is authorized to use the card. Cardholders may purchase eligible goods and services within their authority, as required by the Village, subject to funds availability. The cardholder is responsible for all purchases made with the card. All purchases that will be paid using the card must comply with the Village of Carrollton’s purchasing resolutions, policies and department policies.
      (4)   How to use the purchase card. The same basic procedures are followed for mail and phone order purchases; although the supplier may request additional information such as the cardholder’s shipping address.
         A.   Over-the-Counter Purchases. Although the process may vary slightly, the following steps give a general overview of how the purchase card works. A cardholder using the purchase card should:
            1.   Identify the purchase needed and determine funds availability.
            2.   Determine if the purchase is within their pre-approved purchase limit. If yes, proceed to the next step. If no, check, with their supervisor or the chief financial officer on how to proceed.
            3.   Purchase goods/services. Provide merchant with the purchase card. Inform the merchant that the purchase is for “official Village business” and is not subject to state or local sales tax. Provide a sales tax certificate of exemption is required by merchant.
            4.   Submit a completed requisition dated the same day as the purchase and submit to accounting office for purchase order as soon as possible. Emergency purchases should be indicated on the requisition as a “Then and Now” purchase.
            5.   Forward receipt of the accounting office.
         B.   Telephone orders. An employee using the purchase card to order by telephone should:
            1.   Identify the purchase needed and determine funds availability.
            2.   Determine if the purchase amount is within the pre-approved purchase limit. If yes, proceed to the next step. If no, check with their supervisor or the chief financial officer for details on how to proceed.
            3.   Contact the merchant and place the order.
            4.   Purchase goods/services. Inform the merchant that the purchase if for “official Village business” and is not subject to state or local sales tax. Provide merchant with the card number and expiration date.
            5.   Relay all pertinent information to supplier, (e.g. Cardholder’s name, shipping address, etc.)
            6.   Submit a completed requisition to accounting office on the same date or as soon as possible with the amount of purchases.
            7.   Inspect and verify order accuracy, quality, and price when merchandise arrives.
            8.   Retain shipping documents and receipts received with the merchandise.
            9.   Submit billing documents to the accounting office.
         C.   Internet Orders.
            1.   Identify the purchase needed and determine funds availability.
            2.   Determine if the purchase amount is within the pre-approved purchase limit. If yes, proceed to the next step. If no, check with their supervisor or the chief financial officer for details on how to proceed.
            3.   Locate the merchant’s web site and place the order.
            4.   Purchase goods/services. Enter card number and expiration date. Some web sites will recognize that the purchase is tax exempt. If not, indicate that the purchase is tax exempt. Note that the cardholder should check to see if the web site they are accessing is secure before entering their purchase card account number. Check the Internet browser software and any information posted on the web site being accessed for more information regarding the level of security provided.
            5.   Relay all pertinent information to supplier (e.g. Cardholder name, shipping date, etc.) Note: If downloading a purchased product from the Internet, print out the electronic confirmation and include it with the transaction documentation.
            6.   Submit a completed requisition to the accounting office on the same date or as soon as possible with the amount of purchase and identify fund being charged.
            7.   Inspect and verify order accuracy, quality and price when merchandise arrives.
            8.   Retain shipping documents received with merchandise.
            9.   Submit billing documents to the accounting office.
      (5)   Tax Exemption. Charges for most purchased items or services that are billed directly to the Village of Carrollton are exempt from sales tax. For large purchases where the merchant refuses to waive the tax, the cardholder can present a state tax exemption form. Contact the accounts payable office for a copy of the tax exemption.
      (6)   Cardholder Responsibilities.
         A.   Purchasing resolutions, policies and procedures place upon the cardholder direct responsibility for the proper and lawful execution of purchasing actions. No employee of the Village of Carrollton has authority to issue instruction or approve a procedure that is in direct violation with the law or Village’s resolutions, policies or procedures. Any act exceeding that individual’s authority is no longer an act of the Village but becomes a personal responsibility. This may include personal financial responsibility for the purchase and consideration of disciplinary action up to and including removal from position and possible criminal prosecution.
         B.   All employees must maintain the highest standard of conduct. Any conflict of interest or appearance thereof between Village responsibilities and personal lives must be avoided.
         C.   Cardholder responsibilities are to:
            1.   Make eligible purchases within authorized spending limits and funds availability. Use the card only for purchasing items in accordance with Village policies.
            2.   The cardholder must first inform the merchant that the purchase is for “official Village business” and is not subject to state or local sales tax. For large purchases where the merchant refused to waive the tax, the cardholder can present a state tax exemption form. Cardholders can get a copy of the form from the accounting office.
            3.   Maintain purchase cards in a secure fashion and prevent unauthorized charges to the account.
            4.   Maintain adequate documentation of all purchases. This responsibility includes documentation of funds availability, receipts, packing lists, invoices, etc.
            5.   Give purchase documentation to the accounting office in a timely manner to ensure prompt payment.
            6.   Notify the Department Superintendent or the Clerk- Treasurer immediately if the card is lost or stolen.
      (7)   Card security. The cardholder is responsible for safeguarding the purchase card at all times. The cardholder should never allow anyone else to use the card or account number and should never use the card to procure personal items.
      (8)   Lots/stolen cards. When a purchase card is lost or stolen, the cardholder should contact the Department Superintendent or the Clerk-Treasurer to report the lost/stolen card. Contact should be immediate so that the highest level of detail regarding account activity leading up to the lost/stolen date can be provided.
      (9)   Separation of cardholder. Prior to separation from the cardholder’s department or assignment to another function that does not require cardholder authority, the cardholder will surrender the card to the Clerk- Treasurer who will destroy it and notify the banking company forthwith. The cardholder will review with the Department Superintendent the status of any unreconciled, questionable, partially approved, unresolved, and disputed transactions, and identify any supplies and/or services which have been ordered but not yet received, so appropriate action can be taken to complete these activities.
      (10)   Purchase card changes. There may be occasions when the information about the cardholder in the bank’s master file must be changed (e.g., address change, etc.) the Clerk-Treasurer or his/her staff will make the appropriate change.
      (11)   Card misuse/fraud. Misuse of the purchase card will require the purchase card to be withdrawn from the cardholder. Disciplinary actions may be taken against the cardholder. The cardholder may be liable for payment of the purchase.
      (12)   Competition. Purchases within the dollar threshold can be awarded without soliciting competitive price quotations if the price is reasonable. Such purchases must be distributed equitably among qualified suppliers. When practicable, a quotation should be solicited from other then the previous supplier prior to placing a repeat order. The administrative cost of verifying the reasonableness of the price of purchases not in excess of $2,000 may more than offset potential savings in detecting instances of over pricing. Therefore, actions to verify the reasonableness of the price need to be taken only when:
         A.   Information indicates that the price may not be reasonable (e.g. comparison to previous price paid, personal knowledge of the item involved, comparison to similar items).
         B.   Purchasing a supply or service for which no comparable pricing information is readily available (e.g., an item that is not the same or similar to other items recently purchased).
   (e)   Acknowledgment. As an employee of the Village of Carrollton, I have read and understand the Village of Carrollton’s Policy on credit cards (purchasing cards). Further, that I am aware that any violation of this policy may subject me to disciplinary action, up to and including discharge from employment and possible criminal prosecution.
 
                                                                                                  
Name                  Supervisor/Superintendent
                                                                                                   
Signature of Employee         Date
(Ord. 2005-9. Passed 7-11-05; Ord. 2008-22. Passed 5-12-08.)