The City of Geneva (the "City") may provide a City credit card to the certain employees (the "cardholder") in order to facilitate certain transactions by the cardholder on behalf of the City. The cardholder shall strictly comply with all provisions set forth in this policy. "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.
(a) Authorized Users and Control of the Credit Card Account. The City Manager and Finance Director may determine whether any full-time or part-time employee in the City may use a City credit card. The Finance Director shall act as the administrator of the credit card policy and is responsible for generally overseeing compliance with the City Credit Card Policy. Any incentive program benefits derived by the use of City credit cards will be the property of the City. The Finance Director will determine the use of such incentive program benefits.
(b) Types of Expenses Authorized.
(1) The cardholder will use the card only for purchases which the cardholder is authorized to make on behalf of the City pursuant to the City's purchasing policies and budgets, and shall be made only in accordance with the express scope of their official duties and/or that of their department. Generally, these will be for travel and meeting expenses and for departmental purchases where the lowest and best vendor will not accept a City purchase order.
(2) Credit cards shall be permitted to be utilized both in person as well as for the purchase of goods over the internet, telephone, or fax. These purchases must be evidenced by an order confirmation along with either the original packing slip that accompanied the purchased goods or an itemized receipt. When using the internet, the user must make sure the website where the credit card information is being placed is secure and that all account numbers are encrypted while being passed electronically.
(c) Procedure for the Acquisition. Use, and Management of Credit Card Accounts and Presentation Instruments Related to the Account Including Cards and Checks.
(1) The Finance Director is responsible for the administration of City credit card accounts, to include, but not limited to, selection of card provider, payment of credit card bills, managing issuance of cards, and ensuring proper use.
(2) The City’s name shall appear on each presentation instrument related to the account including cards and checks.
(d) Procedure for Submitting Itemized Receipts to Finance Director.
(1) The card user will submit complete documentation for all purchases to the Finance Director within five business days of the purchase. Complete documentation will include the original invoice (if for other than a meal), the purchasing card charge slip, and a departmentally approved purchase form or purchase order number. All receipts must be approved and signed by the department head.
(2) The card user is personally responsible to reimburse the City for any charges with the card user's purchasing card that are not fully and timely documented to the Finance Director or which ultimately are not approved as appropriate and authorized City transactions, including any interest or fees that may consequently be assessed by the card issuer with respect to those charges. The City may recover any such charges from the cardholder by payroll deductions that are not in excess of the Consumer Protection Act, 15 U.S.C. 1673(a).
(3) No fees or interest charged by a card company because of late payments due to untimely submission of records to the Finance Director will be paid from City funds, unless authorized by the City Council. Unauthorized payment of fees will be the responsibility of the employee who utilized the card, who will be personally responsible for those fees if they appear on the billing for their department.
(4) If for any reason, documentation for a transaction is not available from vendor or is misplaced by the cardholder, the cardholder must complete a "Missing Receipt Affidavit" form. This form must accurately provide the item description, vendor name, and the reason for missing documentation. The Finance Director shall have the authority to determine whether the Missing Receipt Affidavit complies with this policy, whether the City will cover the expense, or whether the card user will be held personally responsible to reimburse the City for the undocumented charge(s) pursuant to division (d)(2) of this section.
(5) Lack of proper documentation or authorizations may result in loss of credit card privileges.
(6) 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 employee, or the statement contains duplicate charges from a vendor. In these instances, the employee 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 employee should notify the Finance Director for verification that the credit appears on a subsequent statement. The City cannot accept cash or a rain check instead of a vendor credit. If the dispute cannot be resolved, the individual should contact the Finance Director.
(e) Procedure for Credit Card Issuance, Reporting Lost or Stolen Cards, Cancellation.
(1) The Finance Director shall implement a system to issue credit cards to authorized users. The Finance Director is responsible for the physical custody of the cards and for maintaining confidentiality of all information relating to the cards such as the account numbers and expiration dates. Cards are not to be loaned to anyone or used by anyone other than the person designated to do so. The card user will sign a written acknowledgment indicating that the card user understands the intent of the program and agrees to adhere to the policy and guidelines established by the City. The Finance Director will retain the signed acknowledgment and maintain a current record of all card users.
(2) Whenever any authorized card user suspects the loss, theft, or possibility of an unauthorized or unlawful misuse of a card, the employee shall notify the Finance Director immediately, and subsequently make a report in writing. The Finance Director shall immediately notify cardholder services to place a hold on the relevant card number and/or account.
(3) The Finance Director shall be responsible for administration of City credit card accounts, including the cancellation of any credit card accounts or cards.
(f) Maximum Credit Limits.
(1) Finance Director: Five thousand dollars ($5,000) per purchase, unless otherwise duly authorized with the signature of the City Manager on the corresponding purchase order.
(2) City Manager: Two thousand five hundred dollars ($2,500) per purchase, unless purchase order contains the original signature of the Finance Director. Both the City Manager's signature and the Finance Director's signature are required on all purchase orders for credit card purchases over two thousand five hundred dollars ($2,500).
(3) Fire Chief, Police Chief, Streets Superintendent, Tax Administrator, Wastewater Superintendent, Waterworks Superintendent: Two thousand five hundred dollars ($2,500) per purchase, unless otherwise duly authorized with the signature of the City Manager on the corresponding purchase order.
(4) All other employees: One thousand dollars ($1,000) per purchase, unless otherwise duly authorized with the signatures of 'both the department head and City Manager on the purchase order.
(g) 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, excess daily meal allowance, gasoline for a personal vehicle, lottery/gambling, entertainment, tobacco, and alcoholic beverages), international purchases, illegal purchases, and/or purchases on behalf of someone other than the City are absolutely prohibited.
(2) Permitting another to use for any purpose(s) the City credit card account.
(3) Failure to use the card in accordance with the control limits established for it.
(h) Penalties for Misuse of a Credit Card.
(1) The use of a credit card account for expenses beyond those authorized by the City Council constitutes misuse of a credit card account. Any officer or employee who knowingly misuses a City credit card account violates R.C. § 2913.21, as well as any other applicable criminal penalty. The Finance Director, City Manager or any other employee who obtains knowledge of misuse of a credit card shall report said use to the City Solicitor to review for criminal charges. The City Solicitor shall have the authority to determine whether criminal charges will be filed and whether the employee may enter into a pretrial diversion program.
(2) Misuse of a credit card account shall constitute a Group III offense and shall subject an officer or employee of the City to disciplinary action, upon which a first offense may result in termination.
(i) Membership Cards.
(1) The City may maintain a membership to Sam's Club or other similar memberships in an effort to save costs on supplies for the City.
(2) The City Manager 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 City 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.
(j) Council's Periodic Review and Annual Report.
(1) During the Finance Director's periodic presentations at Council meetings, the Finance Director shall issue a statement to Council regarding 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.
(2) The Finance Director annually shall file a report with the City Council detailing all rewards received based on the use of the City's credit card account(s).
(k) Signed Acknowledgment. All authorized users of the City credit card shall sign an acknowledgment of this Credit Card Policy before using a City credit card.
(Res. 3439. Passed 1-28-19.)