(a) Purpose. To establish a policy for the approved use of city owned credit cards to:
(1) Allow City employees an efficient means of payment for approved expenditures.
(2) Improve managerial reporting related to credit card purchase.
(3) Improve efficiency and reduce costs of payable processing.
(4) Comply with HB 312 statute requirements
(b) Policy.
(1) A credit card account means any bank issued credit card account, store issued credit card account, financial institution issued credit card account, financial depository-issued credit card account, or any other card or credit account allowing the holder to purchase goods or services on credit or to transact with the account, and any debit or gift card account related to the receipt of grant monies.
(2) City credit cards will be issued to elected officials, department directors, department sign-out cards, and designated staff, after acquiring the approval of the appointing authority.
(3) The City of Circleville's name and the assigned user's name or sign-out card designation will appear on each credit card.
(4) Credit cards will only be used for governmental purposes. Personal purchases of any type are strictly prohibited. The Ohio Revised Code (ORC) states, "An officer, employee or public servant defined under ORC 2921.01 who knowingly misuses a credit card account violates ORC 2913.21, which is a misdemeanor of the first degree.
(5) The use of a credit card account for expenses beyond those authorized by the legislative authority constitutes misuse of a credit card account. The ORC states, "An officer, employee or public servant defined under ORC 2921.01 who knowingly misuses a credit card account violates ORC 2913.21, which is a misdemeanor of the first degree.
(6) 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 the officer or employee does not provide itemized receipts in accordance with the credit card policy.
(7) Credit card rewards are assets of the City and are under the control of the legislative authority. All credit card awards must be surrendered to the Auditor's Office for proper expenditure control oversight. Any personal use of credit card awards is a violation of ORC 2913.21.
(8) The following are examples of allowable and prohibited expenditures:
Allowable Expenditures | Prohibited Expenditures |
Supplies: Maintenance Office Computer | No Cash Advances Money Order Travelers Checks |
Auto Repair | Alcoholic beverages/tobacco products |
Fuel | No food purchases at gas stations |
Stock replenishment | No Entertainment/Recreation |
Subscriptions/Memberships | Capital equipment and/or upgrades |
Registrations/Training | Construction, renovation/installation |
Hotel lodging (approved) | Controlled substances |
Printing | Items or services on term contracts (unless specifically required by vendor and prior approval) |
Photography | Maintenance agreements (unless specifically required by vendor and prior approval) |
Postage and Shipping | Personal items or loan |
Travel and Meal (approved) | |
Any properly approved purchase | Purchases involving trade-in of governmental property |
Telephones, related equipment, or services (requires prior authorization of appointing authority and Auditor's Office) | Rentals (other than short-term auto) |
Service, membership, and maintenance agreements that require credit card payment options only (requires prior authorization of appointing authority and Auditor's Office) | Any other item deemed inconsistent with AOS Bulletin 2003-005 expenditure of public funds for a proper public purpose are strictly prohibited. |
(9) Cardholders are required to sign an agreement indicating they accept the terms. Individuals who do not adhere to these policies and procedures risk revocation of their credit card privileges and/or disciplinary action pursuant to the City of Circleville's employee handbook Section 2-11.
(c) Procedure.
(1) Credit cards may be requested for prospective cardholders by written request (Cardholder Agreement) to the Chief and/or the Department Director for authorization by the appointing authority.
(2) Detailed receipts must be retained, initialed, and attached to the credit card statements. In the case of meals, each receipt must include the names of all persons involved in the purchase, and a brief description of the governmental purpose of the transaction, in accordance with the Internal Revenue Service regulations.
(3) The monthly statement, with attached detailed receipts, must be submitted to the Auditor's Office within ten days of receipt of the statement or no later than the 20th of the month to enable timely payment of amounts due.
(4) All monthly statements submitted for payment must include the initials of the cardholder on the receipts and the signature and the date of the department head authorizing payment for monthly statement.
(5) All monthly statements submitted for payment must have the appropriate account number(s) and the associated amounts clearly written on the statement. Multiple purchases charged to the same account number must be subtotaled. Cards may be designated to have all expenses charged to a specific account number(s), with exceptions noted on the monthly statement.
(6) Employees should immediately report lost or stolen cards to their respective department director. Immediately after receiving notification of a lost or stolen card, the department director will inform the Auditor's Office. The Auditor's Office will contact the bank and inform them of the matter.
(7) Upon termination, the employee must return the credit card to the department director. The card is to be immediately sent to the Auditor's Office by the department director. The Auditor's Office will re-issue the card according to the credit card policy. If the card is not to be re-issued the Auditor's Office will destroy the card and send a letter to the bank requesting that the credit card be canceled.
(8) Cardholders must make every effort to ensure that purchases do not include sales tax. Tax exempt certificates are available through the Auditor's Office. The City will not reimburse or pay sales tax. Sales tax charges will be the responsibility of the purchaser.
(d) Guidelines for Credit Cards.
Approved Cardholders and limits | |
Position | Card Limits |
Tier I Cardholder | |
Departmental Sign-Out Cards | <$2,000 |
Tier II Cardholder | |
Police Chief | <$3,000 |
Fire Chief | <$3,000 |
Chief Probation Officer | <$3,000 |
Tier III Cardholder | |
Director of Public Safety | >$1000.01 |
Director of Public Service | >$1000.01 |
Director of Public Utilities | >$1000.01 |
Director of Cable TV | >$1000.01 |
Clerk of Courts | >$1000.01 |
Director of Parks and Recreation | >$1000.01 |
Human Resources Director | >$1000.01 |
Appointing Authority | >$1000.01 |
(e) Summary of Cardholder Duties.
(1) The employee will obtain proper authorization before making purchases from department head or appointing authority.
(2) Obtain credit card from Auditor's Office. Sign out the card detailing the date, purpose of the expenditures, and timeframe credit card required. All credit cards should be returned to the Auditor's Office within 24 hours unless prior approval is granted.
(3) Maintain card security to prevent unauthorized charges against account
(4) When making a purchase, identify yourself as a City employee and tell cashier the City of Circleville is a tax-exempt entity.
(5) Obtain a detailed receipt at the point of purchase and verify for accuracy. It is important to insure the merchant does not charge state sales tax (cardholder is responsible to get vendor to remove sales tax applied in error).
(6) Request confirmation number of purchase from vendor on telephone orders.
(7) Print order page (receipt) detailing purchases when making internet purchases.
(8) It is strictly forbidden to save credit card numbers to an online vendor account.
(9) Submit all detailed receipts, packing slips, and other order information to the designated employee for voucher completion.
(10) The designated employee will keep receipts until the statement is printed (cardholder is responsible for obtaining duplicates of any lost receipts).
NOTE: Non-itemized receipts will not be accepted. Obtaining a duplicate or itemized receipt is the purchaser's responsibility. Failure to produce an itemized receipt will make the purchase the responsibility of the purchaser.
(11) The designated employee will review and verify charges as they appear on the monthly statement. If an error is located, take steps to correct immediately.
(12) The designated employee will complete a voucher by listing each purchase order number and account number for every item on the statement. All purchase receipts must be listed individually on the voucher with a sub-total for a particular purchase order and account line. The voucher is then totaled with a grand total for all purchases. All vouchers must be balanced with the statement and receipts.
(13) The designated employee will attach statement, receipts, and purchase order to back of voucher. Receipts should be in the order as they appear on statement. The voucher should be signed and remitted to the Auditor's Office in a timely manner.
(14) Contact credit card company, department director, and the Auditor's Office in the event of a lost or stolen card.
(15) Notify credit card company and the Auditor's Office of any billing discrepancies that cannot be resolved with the vendor (cardholder must submit dispute in writing). A copy of the letter of dispute is sent to the Auditor's Office.
(16) Credit cards must be returned to the Auditor's Office immediately upon completion of a purpose.
(f) Summary of Auditor's Office Responsibilities.
(1) Daily administration of credit card program
A. Set-up and order credit card accounts for new cardholders
B. Give instructions and training as needed
C. Recall credit cards and close accounts as needed
D. Maintain account restrictions such as purchasing limits, vendor restrictions, purchase order procedures, etc.
E. Maintain credit card files with bank agreement, cardholder agreement, correspondence, etc.
(2) Review and certify funds on purchase orders for credit card expenditures.
(3) Confirm certification and encumbrance balances for credit card purchases.
(4) Audit all department vouchers and cardholder statements to verify receipts and approvals are attached.
(5) Post voucher payment requests to the financial management system.
(6) Contact Treasurer to initiate the countersignature requirements for the disbursement of funds by either ACH or check.
(7) Maintain a paper and an electronic history of voucher with account detail, statements, receipts, pre-approval forms, signatures, and purchase orders.
(8) The City Auditor will present monthly to the legislative authority a credit card transaction detail report for the previous month.
(9) On an annual basis the City Auditor will file a report with the legislative authority detailing all rewards received based on the use of the City's credit card account.
(Ord. 11-63-19. Passed 11-19-19.)