(a) Credit cards are purchasing tools, which offer an alternative to the existing City of Marietta purchasing process. They provide an extremely efficient and effective method of purchasing and paying for goods and services.
(b) All City credit cards shall be issued in the name of the "City of Marietta" and may also include the name of the custodian. The authorized Cardholder that handles a credit card is responsible for the appropriate use of City funds. The credit card is the property of the City of Marietta and may be rescinded at any time. The credit card is only to be used for the types of purchase outlined in this policy.
(c) Each "Custodian" (as defined herein) shall keep a current record of transactions and receipts to protect himself/herself and the City. These records are important internal control elements of the electronic purchasing process and essential to the success of the credit card program.
(d) Authorized Cardholders under this policy are the Auditor (credit limit $5,000.00), Judge (credit limit $2,500.00), and Health Dept. Fiscal Clerk (credit limit $2,500.00). The credit card issued to the Auditor shall be for the use of all City departments for which individual cards have not been issued and shall be kept by the Auditor who shall serve as the "Custodian" (as defined herein) of that credit card.
(e) Procedure.
(1) Credit cards simplify the purchasing and disbursement process by facilitating point-of-demand procurement. Purchasing authority is delegated to the authorized Cardholder enabling him or her to place an order directly with the supplier.
When the supplier requests a purchase authorization, the Credit Card system validates the transaction against pre-set limits established by the City.
(2) All transactions are approved or declined (instantaneously) based on the following credit card authorization criteria:
A. Number of transactions allowed per day
B. Number of transactions allowed per month
C. Single purchase limit
D. Spending limit per month
E. Approved merchant commodity code
(3) The authorization process occurs through an electronic system that supports the credit card processing services under the City of Marietta agreement with the card provider. In addition, the Auditor, Judge and Fiscal Clerk will have the capability to view transactions daily and create reports to effectively monitor he use of the credit cards.
(f) Purchasing Guidelines.
(1) The credit card program will not circumvent the City's purchasing rules and procedures. The Credit cards will not be used in place of a Purchase Order. As such, regular purchase order policy and procedures must be followed for all credit card purchases.
(2) The card Custodian is responsible for the security of the card he/she is issued and for the purchases made with it. Consequences for card misuse are severe and penalties may include loss of job.
(3) The regulations for the usage of credit cards are as follows:
A. It is the responsibility of each Custodian to have control over all purchases made by each authorized employee using the credit card.
B. The authorized employee must submit all requests for credit card deletions, additions, or changes in writing to the Auditor, Judge or Fiscal Clerk.
C. The authorized employee using the credit card is the person that is responsible for tracking and reporting monthly purchases to the Auditor's Office.
(g) Restrictions on Credit Card Use.
(1) Credit cards cannot be used for the following: cash advances, traveler's checks, personal services, capital equipment (equipment purchases exceeding $5,000.00), purchases of alcoholic beverages, tobacco purchases, and any other purchase that is not for a public purpose of the City of Marietta.
(2) Credit cards cannot be used for the following transaction types listed below unless the Auditor bas specifically approved the inclusion as an approved merchant commodity code on a specific credit card: airline tickets, automobiles and vehicle rentals, registration fees for educational programs ( conferences, seminars, forums, and continuing education), and hotels.
(h) Placing an Order. When placing an order, the Cardholder should be able to provide the vendor the following credit card information:
(1) Identify himself/herself as a City of Marietta employee
(2) Indicate that the purchase will be made using a credit card
(3) Supply the provider card name
(4) Provide the individual card number
(5) Give the expiration date of the card
(6) Provide the complete delivery address
(7) Any other information necessary to make the purchase
(8) Never allow a vendor to maintain the credit card information for its files
(i) Order Verification Procedures.
(1) Upon receipt of an order, the documentation received from the vendor (typically a sales receipt or packing slip) shall be kept for later reconciliation. Each month the card Custodian will receive a statement from the card provider showing all purchases made. It is the responsibility of the card Custodian to verify each purchase.
(2) The card Custodian is responsible for ensuring receipt of goods and services. Items should be returned directly to the vendor by whichever means the vendor requires. The card Custodian is responsible for seeing that the proper credit is posted for any returned items.
(j) Proof of Purchase Documentation and Reconciliation.
(1) With the authority to purchase specific goods and services comes the responsibility to maintain adequate documentation at the source of the transaction. Whenever a packing slip or sales receipt is received by the authorized employee making the purchase, the sales receipt should be forwarded to the Custodian of the card as proof that the transaction occurred. The Custodian should retain this documentation until the monthly statement from the card provider is received. Any transaction without a properly substantiated receipt is subject to reimbursement of the City by the authorized employee that made the purchase.
(2) After receiving the statement from the card provider, the card Custodian will need to verify all purchases made. The original documentation along with the correlating purchase order will be sent by the authorized employee to the Auditor's Office for processing.
(3) All documentation must support the legitimate business purpose of all transaction made with the credit card. In addition to sales receipts and packing slips, the following are examples of supporting documentation: copies of order forms or applications, services reports when service is provided by a vendor, and cash register receipts.
(k) Discrepancies and Dispute Procedures.
(1) The authorized employee that makes the purchase is responsible for following up with a vendor for any erroneous charges, disputed items, or returns. Disputed charges can result from failure to receive goods or services, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. The authorized employee who made the purchase should contact the vendor first to resolve any outstanding issues.
(2) In the event that the authorized employee who made the purchase is unsuccessful with resolving disputes with the vendor, he/she will need to notify the card Custodian to obtain help in resolving the issue. The card Custodian will then need to contact the card provider to report the dispute. The card provider will decide what form the card Custodian will need to file in order to resolve the dispute. Any contact made with a vendor, as well as its response, should be attached to the bill, especially noting the date that the exchange of information occurred.
(3) Please Note: By law, vendors are not permitted to bill a credit card for purchases until the items have been shipped.
(l) Custodian Purchasing Log.
(1) The Auditor's Office, Judge and Fiscal Clerk shall use the "Purchasing Log" to record transactions and help reconcile to the monthly statement.
(2) The information to be included on the purchasing log is as follows: the transaction date, vendor, authorized employee signing out the credit card and date returned (same day).
(m) Payment. The City of Marietta is responsible for payment of authorized and appropriate credit card transactions. The credit card will not affect the Cardholder's personal credit in any way.
(n) Lost or Stolen Cards.
(1) In the event that the credit card is lost or stolen, it is the responsibility of the authorized employee to report the event to the card Custodian. It is then the responsibility of the card Custodian to report the card lost or stolen by phone directly to the card provider. It is important to report all lost or stolen cards immediately since the City of Marietta will be responsible for all transactions made until the card is reported lost or stolen.
(2) A Custodian's quick response will reduce the risk of fraud. A replacement card may be issued to the card Custodian within ten business days.
(o) Sales Tax. The City of Marietta is tax exempt. Authorized employees must tell in-state suppliers the City is exempt from Ohio sales tax. A copy of the City's Tax Exempt Certificate is available if the supplier needs to see it. When traveling outside of the State of Ohio, hotel charges, food charges and fuel charges will most likely be taxed since tax exemption applies only to sales within the State of Ohio.
(p) Canceling Credit Cards. In order to cancel a credit card, the Custodian will contact the credit card company.
(q) Renew Al of Existing Credit Cards. A renewal credit card will be sent automatically to the Custodians thirty (30) days prior to the expiration date of the existing card.
(r) Misusing Credit Cards.
(1) The credit card represents the City's trust in the authorized employee and his/her empowerment as a responsible employee of the City of Marietta to safeguard and protect its assets. Each authorized employee assumes the responsibility for the protection and proper use of the card.
(2) The following situations are considered misuse of the credit card:
A. Personal use- Purchases using the card for the benefit of the employee, e.g., clothing and food not authorized by the Custodian
B. Loaning out the card - Assignment, transfer, or loaning of an individual card to an unauthorized person or to a suspended or terminated employee
C. Administrative misuse - Lack of proper and timely reconciliation of individual card accounts and card use that is in direct violation of acquisition goals
(3) Misuse of the credit card shall be handled promptly and uniformly for all Custodians and authorized employees.
(4) The following are the actions that may be taken in the event of possible misuse: The credit card use may be suspended. The authorized employee will be contacted by the Auditor of any instance of noncompliance.
(5) Based upon the severity of misuse, disciplinary measures may include personnel action up to and including termination of employment and legal action in accordance with the terms and conditions of the Cardholder Agreement Form and the City of Marietta personnel policies. Additionally, if the misuse of a credit card was done knowingly, the City may pursue criminal prosecution.
(s) Conclusion. City credit cards must be used responsibly. Each authorized employee should be aware that improper use might result in disciplinary action, up to and including termination and criminal prosecution. The original receipts must be forwarded to the Auditor's Office.
(Ord. 229(18-19). Passed 6-20-19.)