(a) The Village of Fairport Harbor (the "Village") may provide a Village credit card to authorized employees (Authorized User) in order to facilitate certain transactions by the Authorized User on behalf of the Village. The Authorized User shall strictly comply with all provisions set forth in this policy.
(b) "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, affinity credit card account, or any other card 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 moneys. "Credit card account" 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 use of the card account.
(c) Authorized Users and Maximum Credit Purchase Limits Per Account.
(1) The Mayor is an authorized credit card account user, with a maximum per credit card purchase of $2,500.
(2) The Village Administrator is an authorized credit card account user, with a maximum per credit card purchase of $2,500.
(3) The Village Fiscal Officer or designee(s) is an authorized credit card account user, with a maximum per credit card purchase of $2,500.
(4) The Village Directors of the Service Department and Water Department, or their designee(s) are authorized credit card account users, with a maximum per credit card purchase of $2,500.
(5) The Police Chief and Fire Chief, or their designee (s) are authorized credit card account users, with a maximum per credit card purchase of $2,500.
(d) Maximum Credit Limit. The maximum limit on each credit card issued to the Village (five total) will be $5,000 for a total potential liability of $25,000. Charges per card are subject to limitations listed above.
(e) Types of Expenses Authorized.
(1) Credit card account purchases must be for proper public purposes. Expenditures must be for authorized Village work related expenses that benefit the Village. Examples of appropriate expenditures are:
A. Tools to complete Village tasks and owned by the Village, including online purchases
B. Materials and/or supplies that are necessary for completion of a Village project or task, including online purchases
C. Travel expenses (i.e. lodging, transportation, registration fees, etc.), including online purchases
D. Expenses related to motor vehicle repair and maintenance in those instances where the lowest best vendor will not accept a Village purchase order, including online purchases.
(2) Credit Card accounts cannot be used for the following expenses:
A. Personal expense, including but not limited to entertainment, personal goods or personal services. Any purchase/use for personal benefit rather than the benefit of the Village is an unauthorized use and misuse of a credit card.
B. Alcohol.
C. Cash Withdrawals - No officer or employee of the Village shall make a cash withdrawal (to include additional cash with purchase).
D. Refunds - No officer or employee of the Village shall accept a cash refund. Any refund or credit for returned materials, goods, or services must be entered by the Vendor against the Credit Card for the Village.
E. Gift Cards - Cannot be purchased with the exception of gift cards purchased by the Mayor or Village Administrator for the purpose of employee recognition. The Fiscal Officer shall separately track said purchase exceptions.
(3) No late charges or finance charges shall be allowed unless authorized by Council.
(f) Procedure for Management of Credit Card Accounts.
(1) The Fiscal Officer is responsible for administration of Village Credit Card Accounts to include, but not limited to, selection of card provider, payment of credit card bills, managing issuance, cancellation of accounts and ensuring proper use.
(2) The Fiscal Officer shall retain general possession and control of all credit card accounts and presentation instruments (credit cards) related to the accounts.
(3) Village credit cards retained by the Fiscal Officer shall be safeguarded when not in use.
(4) The Fiscal Officer shall establish a system to sign out credit cards to authorized users.
(5) The Fiscal Officer shall maintain a list of all authorized users. In those cases where designees are in place and need to be added or removed from the list of authorized users, Department heads shall notify the Fiscal Officer in writing of these changes.
(6) The Fiscal Officer may/shall develop additional internal accounting controls for management and use of credit card accounts.
(g) Procedure for Credit Card Use and Sign out System.
(1) The Name "Village of Fairport Harbor" shall appear on each "presentation instrument" (credit card) related to any credit card account
(2) Authorized users will sign a written acknowledgement indicating they have received a copy of the policy, understand the intent of the guidelines and agree to adhere to those policies. The Fiscal officer will retain a signed copy of the acknowledgment.
(3) Authorized Users will sign out a credit card in each instance of use, listing their name, date, Vendor, and reason for purchase. The credit card will be returned within twenty-four hours unless being used for travel. On those occasions where the card is required on a Friday, the card shall be returned before the close of that workday.
(4) Credit Card use will still require the normal appropriation and encumbrance system to be followed. All purchases via credit card must assure that all purchases have sufficient funds appropriated and encumbered to cover the purchase. Purchase orders must be obtained prior to making the purchase.
(5) Itemized Receipts.
A. For every transaction/use of a credit card, the Authorized User must submit an itemized receipt to the Fiscal Officer or their designee as soon as practical, but in no event later than the return of the credit card
B. The itemized receipt shall be identified to the Fiscal Officer or their designee as to purchase order and or project, whether in writing on the receipt or attached to a copy of the purchase order.
C. For all travel related expenses, purchases must comply with itemized receipt procedures and turned in to the Fiscal Officer no later than four days after the business related travel is complete.
D. Credit Card statements will not suffice for an itemized receipt.
E. Missing documentation (itemized receipts) may result in the User being held responsible for the purchase expense.
(h) Personal Liability. The officer or employee is liable in person and upon any official bond the officer or employee has given to the Village to reimburse the treasury of the Village the amount for which the officer or employee does not provide itemized receipts in accordance with this policy.
(i) Actions or Omissions that Qualify as Misuse of a Credit Card Account.
(1) Use of the card for cash advances, personal purchases (which may include, but are not necessarily limited to, gratuities and excess daily meal allowance, gasoline for a personal vehicle, and alcoholic beverages), and/or purchases on behalf of someone other than the Village are absolutely prohibited.
(2) Permitting anyone other than the Authorized User who signed out the card to use it for any purpose.
(3) Failure to use the card in accordance with the control limits established for it.
Notice:
The use of a credit card account for expenses beyond those authorized by the Village Council constitutes misuse of a credit card account. Any officer or employee who knowingly misuses a Village credit card account violates 2913.21 of the Revised Code.
(j) Procedure for Problems Related to the Account Including Cards and Checks.
(1) The situation may arise where there is a problem with a purchased item or service. Examples include broken merchandise, the billed amount does not match the quote, the billed amount includes sales tax, the statement contains a charge not recognized by the Authorized User, or the statement contains duplicate charges from a vendor. In these instances, the Authorized User should try to resolve the dispute with the supplier or merchant. If the purchased item needs to be returned for any reason, send the item back to the supplier and request a credit to the account card. The Authorized User should notify the Fiscal Officer so subsequent statements can be monitored for the credit. The Village cannot accept cash or a rain check instead of a vendor credit. If the dispute cannot be resolved, the Authorized User should contact the Fiscal Officer.
(k) Procedure for Credit Card Cancellation and the Process for Reporting Lost or Stolen Credit Cards.
(1) The Authorized User shall report a lost or stolen credit card immediately to the card issuer and the Fiscal Officer. Further use of the card will be blocked. Prompt action will reduce the liability for fraudulent charges. The Authorized User must confirm the phone call by written notification to the card issuer via mail or fax, with copies promptly given to the Fiscal Officer. The date and time of the phone report of the lost or stolen card shall be included in the written notification. The Village will initiate issuance of a replacement card.
(l) Membership Cards.
(1) The Village may maintain a membership to Sam's Club or other similar memberships in an effort to save costs on supplies for the Village.
(2) Council shall designate the officers/employees who are entitled to usage of these memberships and shall determine how many membership cards are issued to those individuals.
(3) All purchases made using these memberships for Village business shall be tax exempt from Ohio sales tax. Employees are responsible for informing vendors of the sales tax exemption. If requested by a vendor, a State of Ohio sales tax exemption certificate is available from the Auditor's office.
(m) Council's Periodic Review and Annual Report.
(1) The Village Council shall review quarterly 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 limit.
(2) The Fiscal Officer quarterly shall file a report with the Village Council detailing all rewards received based on the use of the Village's credit card account(s).
(Ord. 2019-063. Passed 8-20-19.)