(A) Purpose. The purpose of this policy is to ensure that city-issued credit cards and purchasing cards (i.e., Home Depot, Mastercard, Visa, etc.) are closely monitored to provide for maximum security and to guard against misuse and/or losses of public funds for which the city may be held liable. This policy is meant to comply with the mandates of 2018 H.B. 312, Section 1, enacted by the 132nd General Assembly and made applicable to the city as codified by R.C. § 717.31. All city-issued credit cards are to be used solely for the purpose of conducting city business and are not to be used in any event for personal expenses.
(B) General provisions.
(1) Officers or positions authorized to use credit card accounts.
(a) The Auditor's office shall maintain control of city credit card account, purchasing card accounts, and presentation instruments related to the cards and checks.
(b) City credit cards may be issued to the Safety-Service Director, the Public Works Superintendent, the Fire Chief, and the Police Chief. Other employees may be issued cards upon the request of the employee's respective department director and with the approval of the Safety-Service Director and the Auditor.
(c) The cardholders authorized pursuant to this paragraph are liable in-person and upon an official bond the employee has given for misuse of city credit or purchasing cards, including employee's failure to provide an itemized receipt in accordance with this policy.
(2) Types of expenses for which city cards may be used. City credit cards are to be used for legitimate city purposes. Examples of purchases that constitute legitimate city purposes are as follows:
(a) Travel. Credit cards may be used by the above-assigned individuals for official business-related expenditures for hotel, parking, gas, meals, and other travel-related expenses, as authorized and pre-approved by the Safety-Service Director.
(b) Purchases. Credit cards may be used for ordering supplies, including online purchases, when pre-approved by the Safety-Service Director.
(c) Personal use of credit cards is strictly prohibited. Credit cards shall not be used for cash advances, personal purposes or expenses, or any non-city purpose.
(d) City's purchasing procedures apply to all purchases. City credit cards shall not be used to circumvent the general purchasing procedures required by Ohio law and the policies of the city. Therefore, with the exception of gasoline credit cards, and unless otherwise approved by Council, all purchases made with a city credit card shall be preceded by an approved purchase order.
(3) Acquisition, use, and management of cards. The Safety-Service Director shall be responsible for the acquisition, use, and management of all new and existing city credit card accounts and associated presentation instruments, including cards and checks. The city's name shall appear on each presentation instrument related to the account cards and checks. No debit cards shall be issued to the city.
(4) Procedure for submitting receipts for credit card purchases.
(a) Itemized receipts. Employees must always obtain an itemized receipt for each transaction. If a cash register tape does not have descriptions, the employee should write the description on the tape. Any transaction without a properly substantiated receipt is subject to reimbursement of the city by the employee.
(b) Review of receipts. The employee must first submit the receipts to the Safety-Service Director for review before submission to the Auditor's office for payment.
(5) Procedure for card issuance or re-issuance, card cancellation, and lost or stolen cards.
(a) Issuance of card. Upon being issued a credit card or purchasing card, the employee shall sign an acknowledgment of this policy. See Attachment "A" to Res. 19-01.
(b) Re-issuance of card. When replacement cards are issued, the employee shall return the old card to the Safety-Service Director for destruction.
(c) Cancellation of card. When a credit card is cancelled, the employee shall return the old card to the Auditor's office for destruction.
(d) Lost or stolen card. The employee shall immediately notify the Safety-Service Director and Auditor's office upon discovery of a lost or stolen credit card.
(6) Credit card or purchasing card limits. The city has several credit cards issued to city officials, employees, and departments. Individual limits for each credit card are set based upon the nature and frequency of use. Maximum credit limit amounts shall not exceed $20,000. As of the date of this policy, the city has the following cards:
Card | Current Credit Limit |
Sam's Club Mastercard | $17,500 |
Lowe's Store Card | $5,000 |
Home Depot Store Card | $5,000 |
(7) Misuse of credit card. Any use of city credit cards for personal purchases is strictly prohibited and unauthorized. Such use may result in the employee losing all privileges to use city credit cards, cancellation of the credit card, reimbursement paid to the city, disciplinary action, and/or criminal prosecution. All actions or omissions by an employee resulting in a failure to comply with any provision of this policy, including failing to immediately report a lost or stolen card, shall qualify as misuse of a city credit card account and will be subject to appropriate action.
(8) Appointment of Compliance Officer and Compliance Officer's duties. The Mayor is authorized and directed to appoint a Compliance Officer to comply with the statutory requirements for the quarterly review of the city's credit cards pursuant to R.C. § 717.31(C)(1). The employee serving as the Compliance Officer may not be the Auditor, may not use a city credit card account, and may not authorize any other city employee to use a city credit card account.
(a) Compliance Officer appointment. The Mayor selects and appoints the City Treasurer as the Compliance Officer.
(b) Compliance Officer's reports. The Compliance Officer shall conduct a quarterly review of the city's credit cards and purchasing cards. The Compliance Officer shall file with City Council quarterly reports at City Council's first meetings in January, April, July, and October. Said reports shall include the number of active cards issued, the cards' and accounts' expiration dates, and the cards' and accounts' credit limits.
(9) Auditor's report of rewards. The Auditor shall file an annual report with City Council which details all rewards received based on the city's use of any city credit card or purchasing card accounts. The Auditor shall file said report at the first City Council meeting in January each year.
(Res. 19-01, passed 1-15-19)