(a) Purpose. The purpose of this policy is to insure that all use of credit cards by city employees is in compliance with the requirements established by Ohio Revised Code Section 717.31 (A), and to insure that all purchases made by their use are for proper public purposes.
(b) Definitions.
(1) “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.
(2) "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.
(3) "Presentation Instruments" are also known as or include credit cards.
(c) Officers or Employees Authorized to Use a Credit Card Account. Credit Cards may be used by the following:
(1) The City Manager or the City Manager's designee
(2) The Director of Finance or the Director of Finance's designee
(3) The Public Works Director of the Public Works Director's designee.
(4) The Police Chief of the Police Chiefs designee.
(5) The Fire Chief or the Fire Chiefs designee.
(6) The Clerk of Council or the Clerk of Council's designee.
(7) The Director for the Senior Center or his/her designee.
(d) Types of Expenses for Which a Credit Card Account May be Used.
(1) Credit Card Account purchases MUST be for proper public purposes. Expenditures must be for authorized City work-related expenses that benefit the City. Examples of appropriate expenditures are:
A. Tools to complete City tasks and owned by the City, including online purchases.
B. Materials and/or supplies that are necessary for completion of a City project, including online purchases.
C. Travel expenses (i.e. lodging, transportation, seminar fees, etc.), including online purchases.
D. Motor vehicle repair and maintenance expenses for City owned vehicles or equipment with prior authorization.
(2) Credit Card Accounts CANNOT be used for the following expenses:
A. Personal expenses, including, but not limited to entertainment, personal goods, personal services. Any purchase/use for personal benefit rather than the benefit of the City (proper public purpose) is an unauthorized use and misuse of a credit card.
B. Alcohol.
C. Cash Withdrawals - No officer or employee of the City shall make a cash withdrawal (to include additional cash with purchase).
D. Refunds - No officer or employee of the City shall accept a cash refund. ANY refund of credit for returned materials (goods) must be entered by the vendor against the "credit card" for the City.
E. Gift Cards not associated with a City function.
(3) No late charges or finance charges shall be allowed as an allowable expense unless authorized by City Council.
(e) Procedure for Acquisition, Use and Management of the Credit Card Accounts.
(1) The Director of Finance is responsible for 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 ensuing proper use.
(2) Documentation will be kept/filed with the credit card account at the business, such as tax exempt forms.
(3) The Director of Finance shall not retain general possession and control of all credit card accounts, and presentation instruments related to the account.
(4) City credit cards retained by any authorized Officer or Employee shall be safeguarded when not in use.
(5) The Director of Finance may develop additional internal accounting controls for management and use of credit card accounts.
(6) Procedure for Reporting Lost or Stolen Credit Cards. Whenever any officer or employee who is authorized to use a credit card suspects the loss, theft, or possibility of an unauthorized or unlawful misuse of a credit card account of a credit card, the officer or employee shall notify the Director of Finance and City Manager immediately, and subsequently make a report in writing. The Director of Finance, in turn, shall immediately notify cardholder services to place a hold on the relevant credit card account.
(f) Procedure for Submitting Itemized Receipts to the Director of Finance of a Credit Card Account and Presentation Instruments Related to the Account Including Cards and Checks.
(1) The Presentation Instrument(s) related to any credit card account shall be limited to a credit card (s) - no other Presentation Instrument such as checks shall be obtained or used.
(2) Appropriation and encumbrance (Purchase Order) credit cards will still require the normal appropriation and encumbrance system to be followed. All purchases via credit cards must assure that any and all purchases have sufficient funds appropriated and encumbered to cove the purchase and/or daily/weekly/monthly maximum purchase limits. Additional controls and/or other purchasing procedures established by the Director of Finance may also be required to be followed. (Departments must have opened a purchase order prior to making purchases and have sufficient funds to cover purchases.)
(3) Approval from/by the Director of Finance, City Manager, and/or the Department Head for purchases with City credit cards mush be obtained prior to purchases.
(4) Debt incurred as a result of use of a credit card pursuant to this policy shall be paid from moneys appropriated to specific appropriation line items of the department for work-related expenses.
(5) Itemized Receipts
A. For every transaction/use of a credit card, the user/purchaser must submit an itemized receipt to the Director of Finance of designee as soon as practical.
B. The itemized receipt shall have the purchase order number written on it.
C. The itemized receipt shall have the purpose and/or "project" for which the purchase was made written on it.
D. For all travel related expenses, purchases mush also comply with the itemized receipt requirements set forth by the City.
E. A credit card statement will NOT suffice for itemized receipt.
F. Missing documentation (itemized receipts) may result in an employee being personally responsible for the purchase/expense, and/or may be considered misuse of a credit card.
(6) No Copies of a credit card shall ever be produced.
(7) Every effort shall be made to assure that a purchase with a credit card account is exempt from any and all taxes possible.
(g) Procedure for Credit Card Issuance, Credit Card Reissuance, Credit Card Cancellation and the Process for Reporting Lost or Stolen Credit Cards.
(1) Whenever any officer or employee who is authorized to use a credit card suspects the loss, theft, or possibility of an unauthorized or unlawful misuse of a credit card the officer or employee shall notify the Director of Finance and City Manager immediately, and subsequently make a report in writing. The Director of Finance, in turn, shall immediately notify cardholder services to place a hold on the relevant account.
(2) The Director of Finance is responsible for administration of City credit card accounts, including but not limited to cancellation of credit card accounts.
(h) Maximum Credit Limits for Credit Card Accounts. Credit cards will have credit limits to be determined by the Director of Finance with a maximum credit limit per card not to exceed two thousand five hundred dollars ($2,500.00).
(i) Misuse of a Credit Card. The use of a City credit card account for expenses beyond those authorized by this Policy, or any failure to comply with this Credit Card Policy and Procedures, constitutes misuse of a credit card account.
(1) Criminal Penalty. An officer or employee of the political subdivision or a public servant as defined under Section 2921.01 of the Revised Code who knowingly misuses a credit card account held by the City of Germantown violates Section 2913.21 of the Revised Code, as well as any other applicable criminal penalty.
(2) Disciplinary Action. Misuse of a credit card account may also subject an officer or employee of the City to disciplinary action.
(3) Liability. The officer or employee is liable in person and upon any official bond the officer or employee has given to the political subdivision to reimburse the treasury the amount for which the officer or employee does not provide itemized receipts in accordance with this policy and/or for any other unauthorized use of a "credit card" as established by this policy.
(j) Presentation Instruments for All Credit Card Accounts. The name of the "City of Germantown" shall appear on each Presentation Instrument related to any credit card account.
(k) Compliance Officer.
(1) Since the Director of Finance does not retain general possession and control of the credit card account and presentation instruments related to the account including cards and checks, the City Manager is to appoint a City employee to be the City's Compliance Officer.
(2) The Compliance Officer may not use a credit card account and may not authorize an officer or employee to use a credit card account.
(l) Quarterly Reports to City Council. The Compliance Officer and the City Council shall review the following at least quarterly.
(1) The number of credit cards and accounts issued;
(2) The number of active cards and accounts issued;
(3) The cards' accounts' expiration dates; and
(4) The cards' and accounts' credit limits.
(m) Annual Report of Rewards of Credit Card Accounts. The Director of Finance or their designee shall file a report with City Council detailing all rewards received based on the use of the political subdivision's credit card account on an annual basis.
(n) Subject to Audit. All purchases via credit cards are subject to audit by the City Manager and the City Manager's designee, the Director of Finance and/or the Auditor of State to verify compliance with this policy and/or State law. Auditing by the Director of Finance will be by periodic internal reviews of purchases via credit cards. Any non-compliance discovered by the City Director of Finance will be reported to the Auditor of State. Noncompliance may result in a finding by the Auditor of State.
(o) Improper Expenditure. If it is determined that there has been a credit card expenditure beyond the appropriated or authorized amount and/or in non-compliance with this policy, the Director of Finance and/or the Department Head shall immediately notify the City Manager and Department Head of such actions.
(p) Signed Acknowledgement. All Authorized users of City credit cards shall sign acknowledgment of this Credit Card Policy and Procedures before receiving a City credit card. (Ord. 19-06. Passed 2-19-19.)