(a) Purpose. The Ohio Revised Code Section 717.31 authorizes a municipality to hold a credit card, mandates the adoption of a policy for the use of credit cards, and outlines the provisions required of such a policy. This policy is enacted to govern the use of any credit card and charge accounts by any and all people authorized by the Galion City Auditor or their designee to use a credit card or charge account.
(b) Definitions.
(1) “Authorized User” means an official, employee, or appointee of the City of Galion that has received authorization to use a credit card account held by the City of Galion.
(2) “Council” means the elected City Council of the City of Galion, located in Crawford County, Ohio.
(3) “Credit Card Account” or “Account” means any bank issued credit card account, store issued credit card or account, or other card or charge account allowing the holder to purchases goods or services on credit.
(4) “Credit Card” means a card related to a Credit Card Account held by City of Galion.
(5) “Charge Account” means a vendor that allows a line of credit for the city to charge goods or services.
(6) “Auditor” means the elected City Auditor for the City of Galion.
(7) “Designee” means Auditor employee that is designated, appointed or chosen.
(8) “City” means the City of Galion, located in Crawford County, Ohio.
(9) “Policy” or “Credit Card and Charge Account Policy” means this policy and all exhibits, amendments, and supplements.
(c) Compliance of Credit Card Account.
(1) Compliance. The Auditor of the City shall maintain control and oversee all City Credit Cards or Charge Accounts and presentation instruments related to the cards and accounts.
The Auditor or their designee is responsible for the administration of the City Credit Cards to include, but not limited to the selection of the card provider, the payment of Credit Card bills from submitted pay requests, and managing the issuance of the Cards. Each department or cardholder is responsible for ensuring the proper use and pay requests of their purchases. It is the responsibility of each cardholder to store cards in a secured, locked location when cards are not in use.
The Auditor shall provide a report to Council each month of Credit Card Account transaction detail from the previous month. Council shall review this transaction detail and the Council President shall sign an attestation stating that the Council has reviewed this information.
The Auditor shall maintain the number of cards and accounts issued, the number of active cards and accounts issued, the cards’ and accounts’ expiration dates, the cards’ and accounts’ credit limits, and authorized card users.
The Auditor shall provide an annual report to Council detailing all rewards received based on the use of the municipal Credit Card accounts.
(2) The maximum limit for the use of a Credit Card or Charge Account will be determined by the Auditor or their designee.
(3) The Auditor or their designee shall issue cards and determine how the city/holder will be listed on each card.
(4) Council shall appoint a Compliance Officer, who shall not be the Treasurer or Fiscal Officer of the City. Together with Council, the officer must review at least 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 limits.
(d) Use of a Credit Card or Charge Account.
(1) Authorized Users. Authorized Users for the City Credit Card or Charge Account are determined by department heads or card holders and approved by the Auditor or their designee. The addition or elimination of any employee for the use of the City Credit Card or Charge Account will be reported to the Auditor or their designee as soon as possible.
(2) Authorized Expenses. The Auditor or their designee may expressly limit the terms of use of a Credit Card or Charge Account with each Authorized User at any time. Any Credit Card or Charge Account may only be used for purchases of work-related goods and services incurred on the behalf of the City. This is not a tool to pay regular bills or where other city charge accounts exists. For example, it is not for utility bills unless authorized by Auditor or designee under special circumstances. It is not for payment to Lowe’s or HR Wolf Hardware. If you are unsure of an authorized expense, contact the Auditor’s office prior to purchase.
Examples of expenses for which a Credit Card may be used;
A. Travel: Credit Cards may be used by assigned individuals for official businessrelated expenditures for hotel, parking, ferry, taxi, meals, airline tickets, emergency City vehicle repairs and other travel-related expenses as authorized by the Auditor. Travel expenditures shall not exceed those outlined in the City’s travel policy.
B. Purchases: Credit Cards may be used for ordering supplies, including online purchases when pre-approved by the Auditor or the Auditor’s designee.
Credit Card SHALL NOT be used for cash advances, the purchase of alcohol, personal purposes or personal expenses and shall only be used to transact City business.
(3) Itemized receipts. Credit Card users shall obtain itemized receipts for each transaction and provide a signed copy of same to the head of their department as soon as the purchase is made or upon completion of travel. The purpose of the transaction shall be clearly indicated on the receipt and user shall sign the receipt acknowledging the purchase was for city purposes as noted in Exhibit C.
(4) Lost or stolen cards. The authorized Credit Card user shall immediately report the loss, theft, or possible unauthorized use of the card to the Auditor or designee. The Auditor or authorized designee shall immediately notify the issuer of the card to place a hold on the account.
(5) Issuance of card(s). Any card user shall sign the acknowledgment of the Credit Card or Charge Account policy before use of the City Credit Card or Charge Account.
If Card is given to authorized user for travel, the Card shall be returned to the head of their department, the Auditor or their designee by the next business day.
(6) Rewards. Credit Card rewards are assets of the City and are under the control of the legislative authority. All Credit Card rewards must be surrendered to the Auditor’s office for proper expenditure control oversight. Any personal use of the Credit Card rewards is a violation of this policy and a possible violation of Ohio R.C. 2913.21.
(e) Penalties. The use of a City Credit Card or Charge Account for expenses beyond those authorized by this Policy and legislative authority, or any failure to comply with these policies constitutes misuse of a Credit Card or Charge Account. An employee who knowingly misuses a Credit Card or Charge Account held by the legislative authority violates section 2913.21 of the Ohio Revised Code, which is a misdemeanor of the first degree and is subject to discipline, which could include demotion, termination and possible criminal charges.
(Ord. 2021-27. Passed 3-23-21.)