(a) Purpose. The purpose of this policy is to ensure that credit cards and/or purchase cards issued to the City of Elyria ("the City") are closely monitored to provide for maximum security and to guard against misuse and/or losses for which the City may be held liable. This policy is intended to cover all credit cards or purchase cards that are currently issued to the City and any other credit or purchase card accounts that the City may open in the future. This policy is meant to comply with the mandates of Sub HB 312 enacted by the 132nd General Assembly. City use includes situations where a purchase order is not accepted by the provider for needed services, supplies and/or materials, or are purchased from a provider who issues a purchase card to be used in conjunction with a purchase order. There may also be instances where discounts and/or rebates that are deemed to be advantageous to the City are associated with this type of payment. The City-held credit/purchasing cards (sometimes referred to as "cards(s)") are NOT for personal use, and will not be permitted to be carried by personnel on a regular basis for any reason. All City credit/purchasing cards shall be in the name of the "City of Elyria, Ohio" and card holder's name where possible.
(b) Scope.
(1) As used in this policy and procedures "credit/purchase card account(s)" means any bank issued credit/purchase card account, store-issued credit card account or any other card account allowing the holder to purchase goods or services on credit or to transact with the accounts. "Credit card account(s)" does not include a procurement card account, gasoline or telephone credit card account, or any other card account where merchant category codes are in place as a system of control for the use of the card account.
(2) This policy strictly prohibits the use of debit card accounts for any purpose other than law enforcement purposes and debit accounts related to the receipt of grant money.
(c) Officers and Positions Authorized to Use Credit/Purchase Card Accounts.
(1) The Finance Director shall maintain control of all City credit/purchase card accounts and presentation instruments related to the cards and checks. The list of all authorized card users is as follows:
A. Mayor;
B. Finance Director;
C. Assistant Finance Director;
D. Law Director;
E. Council President;
F. Municipal court judges;
G. Clerk of Courts;
H. Department heads (as approved by the Safety Service Director); and
I. One designee by each department head.
(2) All authorized card users listed above must sign a form (employee acknowledgment form) that acknowledges that they have read and understand the credit/purchase card policy and procedures and will abide by its mandates.
(3) When an authorized card user needs to use a card, he or she will have to sign a form (use of credit/purchasing card form) in the Finance Director's office to check a card out and then sign the same form when checking the card back in.
(4) The Finance Director is authorized to revoke the use of any card if the authorized user does not follow the rules and mandates as established in this policy.
(d) Types of Expenses.
(1) Prohibited expenses: The following purchases are strictly prohibited:
A. Alcoholic beverages;
B. Personal purchases;
C. Cash advances;
D. Items or services on term contracts unless approved by the Finance Director;
E. Maintenance agreements unless approved by the Finance Director;
F. Individual meals; and
G. Purchases not related to the business of the City.
(2) Allowed expenses:
A. Travel/training. Expenditures related to travel and training such as registration, accommodations, parking and airline tickets.
B. Supplies/services. If not available through a purchase order or in emergency situations. Food for group events or for emergency situations.
(3) Parking charges. Parking charges will only be covered with a receipt stating the charge. The date on the parking receipt must match the approved travel date.
(e) Procedure for Acquisition, Use and Management of Credit of a Credit Card Account.
(1) Acquisition of an account. The procedure for establishing a credit card account or store-issue credit card account is as follows:
A. Only a department head or elected official may request to open a credit card account or a store-issued credit card account.
1. Department head. Submit request to Safety Service Director. Safety Service Director approves and send to Finance Director for approval.
2. Elected official. Submit request to Finance Director for approval.
B. The Finance Director is responsible for processing the application, including signing the application and assigning the credit limit.
C. The name of the City of Elyria must appear on each presentation instrument related to the account including all cards and checks.
(2) Use and management of an account.
A. Before any purchases are made, the department head, or their designee, should verify that a purchase order has been approved for the related expenses. If the card will be used for travel and registration, a travel/training expense form must be approved.
B. Employees should make every effort to ensure that purchases do not include sales tax. Tax-exempt certificates are available through the Finance Director's office. Sales tax may be paid for minimal expenditures from one-time vendors who refuse the exemption, but sales tax should not be paid where the purchases are for more substantial expenditures. The official and/or employee may be personally liable for payment of sales tax. Exceptions will be made for online vendors who do not recognize our tax-exempt status.
C. Officers and employees are responsible for all charges made to the card. Detailed itemized receipts for each charge on the account must be retained and attached to the voucher for payment. A printed copy of the completed online purchase must be provided for all online purchases.
D. Detailed receipts must be retained and promptly given to the employee's department head, or their designee. Failure to provide receipts will result in the employee's responsibility for the charges.
E. Monthly statements will be sent to the Finance Director's office.
1. Receipts should be sent to the Finance Director's office with the corresponding purchase order so bills can be paid in a timely fashion so late fees/charges are not incurred.
2. After receiving the receipts, the Finance Director or designee will match them with the detailed charges on the corresponding monthly statement and processed for payment.
3. Any items that do not have a receipt may become the personal responsibility of the card user.
F. Card statements shall be reviewed monthly by the Finance Director's office for unauthorized charges and other discrepancies.
(3) The Finance Director, on a quarterly basis, shall report the following information to City Council.
A. Lost or stolen cards;
B. Cards and accounts issued during the quarter;
C. Number of active cards and accounts;
D. Expiration dates of all cards;
E. Credit limits for all cards; and
F. Incentives/rewards.
(f) Procedure for Credit Card Issuance, Reissuance and Cancellation. If a card is determined to be unnecessary/unneeded the following steps must be taken:
(1) The Finance Director's office will contact the issuing bank or store and request that the card be canceled.
(2) Once the card has been canceled, it should be destroyed.
(3) The Finance Director will inform all authorized users of the cancellation.
(4) The Finance Director will report the canceled card to City Council on the quarterly report.
(g) Reissuance. Lost or stolen cards will be reviewed for reissuance on the circumstances.
(h) Reporting Lost or Stolen Cards. Lost or stolen cards must be reported immediately to the Finance Director's office. Once reported, the Finance Director or designee will call the bank or store.
(i) Maximum Credit Limit. Credit card limits should not exceed five thousand dollars ($5,000).
(j) Incentive Programs/Rewards. Any incentives/rewards derived by the use of the City's credit card(s) will be the property of the City. All incentive/rewards must be reported to City Council quarterly.
(Ord. 2019-14. Passed 2-4-19.)