(a) Policy. Village issued credit cards may be used by employees for the purpose of purchasing or making payments for Village services and fees are required for conducting effective business operations. All village employees are responsible for protecting cardholder data from a security compromise.
(b) Purpose. This policy is adopted in accordance with Ohio Revised Code Section 717.31 which requires that all municipalities have a written policy when authorizing the use of credit cards to purchase goods and services for the official business of the municipality.
(c) General.
(1) Management of Credit Cards. The Village Finance Director shall be responsible for the issuance, accounting, monitoring, retrieval, oversite and compliance with this policy and its related procedures.
(2) Card Use. Credit cards shall be used only by a designated official or employee of the Village for the purchase of goods and/or services that are meant directly for the business of the Village of Chagrin Falls, and in accordance with other local policies, when the standard checks payable procedure cannot be utilized (i.e., fuel purchases, travel related expenses, conference registration fees, electronic purchases, etc.). The credit card shall not be used for personal uses, cash advances, or other merchant category exclusions (i.e., tobacco products, liquor, etc.).
(3) Issuance of Credit Cards.
A. Credit cards issued in the name of the Village Finance Director, must be checked out by an official or employee from the Finance Director or designee and are to be returned with the required documentation in the time provided for transaction procedures defined in subsection (c)(5) hereof.
B. Credit cards issued in the name of an official or employee on behalf of the Village must be approved by the Finance Director and the Chief Administrative Officer. Required documentation must be submitted in the time provided for transaction procedures as defined in subsection (c)(5) hereof. Any such credit card shall be returned upon the termination of their services with the Village of Chagrin Falls.
C. Credit card reissuance and cancellation must first be approved by the Village Finance Director. The Village Finance Director shall retain general possession and control of each credit card account and presentation instruments related to the account including cards, and checks. The Finance Director may issue cards directly to an employee.
D. The maximum credit limit for each credit card account shall not exceed thirty-five thousand dollars ($35,000).
(4) Tax Exemption. Notify each vendor or merchant that the credit card transaction is exempt from all local and state sales tax or federal excise taxes for goods and services purchased in the State of Ohio.
(5) Transaction Procedure. The use of credit cards for Village business shall be honored by any vendor or merchant who accepts said credit card. Credit card transactions may be performed in person, over the phone, through the mail, or over a secure internet connection. Any official or employee using credit cards issued by the Village shall submit a purchase requisition, along with documentation detailing the goods or services purchased, the cost of the goods or services, the date of the purchase, and the official business for which the goods or services were purchased.
When using a Village credit card, authorized officials or employees are required to follow the below listed procedures in addition to procedures for management approval and payment of the charge(s):
A. If the transaction is in person, present the credit card to the vendor or merchant and advise that the purchase is with a municipal credit card. If the transaction is via a telephone order, mail order, or secure internet order, the vendor or merchant must be provided with the credit card account number as well as the expiration date.
B. All receipts, credit card slips, and all other transactional evidence, including sufficient description of the goods or services purchased to support all charges made, shall be retained and provided to the Finance Director or designee according to the following schedule:
1. No later than one (1) business day after the purchase date, or within one (1) business day of return from travel status, whichever is later;
2. Proof of purchase via secure internet or telephone by copy of purchase confirmation page from vendor's website or a signed copy of item ordered from (i.e. catalog page, brochure, flier, etc.).
Any official or employee issued a credit card is personally responsible for immediately reimbursing the Village for any unauthorized purchases or for failure to submit sufficient documentation of purchases. Such wrongful use is subject to applicable laws and terms as outlined in Section H, titled Penalty for Wrongful Use.
If a cardholder experiences denials when using a credit card, they will contact the Village Finance Director or designee with the date, vendor or merchant's name, dollar amount, and approximate time of the attempted purchase. The Village Finance Director or designee shall investigate the denial.
(6) Credit Card Security. Any official or employee issued a credit card is responsible for its protection and custody. The credit card should always be treated with a level of care that will secure the card and the account number.
A. Keep the card in an accessible but secure location.
B. Guard the credit card account number carefully, do not write or post the number other than where required for completing transactions.
C. If the credit card is lost or stolen, immediately notify the Finance Director, and if possible, the issuing credit card company.
D. The credit card will not impact the user's personal credit. The Village issued credit card is a corporate liability card, not a personal card.
(7) Procedures for Credit Card Payment. The Village Chief Administrative Officer or the Finance Director shall review and approve all credit card statements/invoices received for payment prior to submission to accounts payable for final payment. The balance including interest due on any credit card account shall always be paid in full by the due date listed on the invoice or in a timely manner as to avoid any unnecessary finance charges.
(8) Penalty for Wrongful Use. Any official or employee of the Village of Chagrin Falls who violates the provisions of this policy shall be liable for any Village funds paid contrary to this policy and may be subject to civil and/or criminal action. Those responsible for violating this policy shall also be subject to disciplinary actions provided for by the Village policies and applicable laws, up to and including dismissal. Any Village official or employee who fails to follow the policies set forth herein, or who uses a credit card account for personal benefit, shall be deemed a misuse of a credit card account and shall subject such official or employee to the civil, criminal, and disciplinary action set forth in this policy.
(d) Compliance in Accounting.
(1) As required by the Ohio Revised Code, at least quarterly, The Village Finance Director and Village Council shall, at least quarterly, review the number of cards and accounts issued, the number of active cards and accounts issued, the cards and accounts expiration dates, and the cards and accounts credit limits.
(2) Annually, the Village Finance Director shall file a report with Village Council detailing all credit card rewards received based on the use of the Village's credit card accounts.
(e) Sunset Provision. Review of this policy will be conducted on an annual basis by the Director of Finance, or as changes necessitate more frequent review. This Credit Card Account Policy will be reviewed annually with all employees who participate in credit card purchasing functions. (Ord. 2023-47. Passed 8-28-23.)