(A) Generally. The town has adopted this credit card and procurement card policy to control, regulate, and effectively evaluate the use of town-issued credit cards and procurement cards for the purchasing of items necessary and beneficial to further the town’s business. It is the intent of this policy to comply with the minimum standards set forth in the State Board of Accounts’ Uniform Compliance Guidelines. Should any provision of this policy conflict with those guidelines, the State Board of Accounts’ Uniform Compliance Guidelines are controlling and are deemed to be the policy of the town as expressly written.
(B) Use of cards. Town-issued credit cards and procurement cards (“PCards”) are only for business-related purchases by town employees. Departmental credit cards and PCards may be used only for lawful charges of expenses related to and necessary for the effective operation of that department. Such uses include, but are not limited to:
(1) Purchasing supplies and equipment for the use and benefit of the department;
(2) Travel and lodging expenses of department personnel while traveling on approved municipal business;
(3) Meal expenses of departmental personnel while traveling on approved municipal business, provided that any such expense does not exceed any authorized per diem for meals. Reasonable tips or gratuities are allowed as meal expenses if service is provided as part of the meal;
(4) Approved training and education costs for departmental personnel; and
(5) Any other use required for the efficient operation of the department, provided that the use has been approved by the Clerk-Treasurer.
(C) Prohibited use. Town-issued credit cards and PCards may not be used for the following:
(1) Personal use;
(2) Purchasing alcohol;
(3) Any illegal purpose; or
(4) To bypass the town’s accounting system or purchasing policies.
(D) General procedures.
(1) The Clerk-Treasurer shall be responsible for keeping, maintaining, and securing any credit card or PCard until it is necessary and proper to distribute a town-issued credit card or PCard for an authorized purpose mentioned above. The Clerk-Treasurer shall be responsible for maintaining a list of cards issued, and will be responsible for maintaining credit limits and allowed merchant categories.
(2) The town employee desiring to use a town-issued credit card or PCard must fill out a requisition form and obtain proper approval by the Clerk-Treasurer before making any purchase.
(3) Immediately after making an authorized purchase, the town employee must return the credit card or PCard to the Clerk-Treasurer.
(4) As soon as possible, but no more than 7 days after use, the town employee using the credit card or PCard shall deliver to the Clerk-Treasurer the following documents:
(a) A completed requisition form signed by the purchaser and the Clerk-Treasurer;
(b) Original receipts and/or invoices for the charges; and
(c) Any other documentation required by the town that supports the claim.
(5) If the employee loses the original receipt and/or invoice, the employee shall provide a duplicate receipt and/or invoice or an affidavit of lost receipt.
(E) Internal review of claims procedure.
(1) The Clerk-Treasurer must maintain an accounting system or log that contains at least the following:
(a) The name of the town employee who requested the credit card or PCard;
(b) The position of the town employee who requested the credit card or PCard;
(c) The estimated amount of the purchase;
(d) The fund and account numbers to be charged;
(e) The date the card was issued;
(f) The date the card was returned; and
(g) All sufficient documentation necessary to assure accuracy and compliance with this policy.
(2) The town shall designate an officer other than the Clerk-Treasurer to review the transactions listed on the credit card or PCard statement in order to ensure there is sufficient documentation and inclusion in the claim to the legislative body. This designated official must ensure the card statements and accounting system or log provide accurate, relevant, and timely information. The designated official must authorize their review by initialing or signing the necessary documentation.
(3) All claims must be approved by the Town Board of Public Works and Safety.
(F) Misuse.
(1) Any misuse of a town-issued credit card or PCard may result in disciplinary action, up to and including termination. A town employee may be personally liable for reimbursement of charges that do not meet the requirements of this policy.
(2) Any interest, late charges, or other fees resulting from the tardy submission of proper documentation by any officer or employee shall be the personal responsibility of that officer or employee to pay.
(3) All credit cards and PCards must be kept in a secure location. Any loss or theft must be reported immediately to the card-issuing bank and the Clerk-Treasurer.
(4) Upon termination of employment, the employee must immediately surrender the card to the Clerk-Treasurer.
(G) Town employee training; best practices.
(1) The Clerk-Treasurer and designated person assigned to review the necessary credit card and PCard statements is responsible for the training and education of employees on the proper use of town-issued credit cards and PCards and the requirements of this policy.
(2) The Clerk-Treasurer and the designated person assigned to review the necessary credit card and PCard statements must evaluate and adjust these internal controls and policies on a regular basis for personnel changes, newly elected officials, financial fluctuations, and the like, to ensure the town is complying with the internal control standards as set forth by the State Board of Accounts.
(Ord. 7-2018, passed 4-17-2018)
Cross-reference:
Internal control standards, see § 33.04
Travel expenditures, see § 33.02