(a) General Overview. The purpose of this policy is to ensure that City credit card accounts are closely monitored in order to provide for maximum security of City funds, and to safeguard against misuse and/or loss of public funds for which the City may be held liable. This policy is meant to comply with the mandates of 2018 H.B. 312, § 1, enacted by the 132nd General Assembly and made applicable to the City as codified by Ohio R.C. 717.31. All City-issued credit cards are to be used solely for the City business and are not to be used for personal expenses.
(b) Credit Card Account and Credit Card Defined. As used in this policy, "credit card account" or "credit card" 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.
(c) Objectives. The issuance of credit cards by the City and the use of such cards by its employees serve to accomplish the following objectives:
(1) To allow City personnel to utilize an efficient and alternative means of payment for approved expenses, especially expenses related to business travel or office supplies;
(2) To improve managerial reporting related to credit card purchases;
(3) To improve efficiency and reduce payable processing costs; and
(4) To improve internal controls regarding City-issued credit cards.
(d) Authorized Personnel.
(1) City credit cards may be issued to any of the following employees of the City: City Manager, Police Administrator, Fire Administrator, City Council members, Directors and Superintendents of each City department, and the Pool Manager.
(2) Other City employees may be issued credit cards upon written request of the employee's respective department Superintendent or Director and with the approval of the Finance Director. However, in no event will more than two (2) employees from the same department be issued credit cards.
(3) Before an authorized employee may receive a City credit card, he/she must complete the City's Cardholder Agreement Form, attached to Ordinance 2021-26 as Appendix A, and incorporated herein by reference as if set out in full, which will be filed and maintained in the employee's personnel file.
(e) Acquisition, Use and Management of Credit Card Accounts.
(1) The Finance Director shall be responsible for the acquisition, use, and management of all new and existing City credit card accounts and associated presentation instruments, including cards and checks.
(2) Any new credit card accounts to be opened in the City's name must be submitted by the Finance Director to City Council for prior approval.
(f) Credit Card Issuance, Use, and Management.
(1) Credit cards shall be requested for prospective cardholders by written request to the Finance Director. Cards will be issued in the name of the employee with the City's name also listed. Cardholders are responsible for maintaining physical control over the card they are issued.
(2) Consideration should be given to a prospective cardholder's frequency of usage (out of town travel, online purchases, etc.), as well as the average monthly spending requirements when determining if the prospective cardholder should be issued a card and his/her applicable credit limit.
(3) The Finance Director shall maintain a written list of all employees permitted to use City credit cards, along with a master list of all City credit cards (and the names that appear on each card, if applicable). The Finance Director shall maintain both lists and keep the lists on file and current.
(4) The Finance Director may refuse to authorize the use of a credit card. In the case of a refusal, the department Superintendent or Director of the employee who was refused authorization, if applicable, may request authorization from the City Manager.
(5) The Finance Director shall file an annual report with the legislative authority detailing all rewards received based on the City's use of credit card accounts.
(g) Authorized Bank Credit Card Use and Expenses. The City recognizes the efficiency and convenience afforded to the day-to-day operations of the City through the use of credit cards under the supervision of the applicable department Directors, Superintendents, and/or the Finance Director. However, credit cards shall not be used to circumvent the general purchasing procedures required by Ohio law and City policies. Therefore, except for the purchase of gasoline with a gasoline credit card and unless otherwise approved by Council, all purchases made with a City credit card shall be preceded by an approved purchase order. Authorized employees must:
(1) Verify that an approved purchase order has been created for the proposed transaction prior to using the credit card. If an approved purchase order does not currently exist, a reacquisition should be prepared and submitted to the Finance Department. The transaction must not be completed prior to receiving a purchase order number from the Finance Department;
(2) Limit use of credit cards exclusively for City business purposes. Personal purchases of any type are prohibited. The Finance Manager shall be notified immediately of any unintended personal purchases, and the responsible employee shall immediately reimburse the City for such charges;
(3) Make every effort to ensure that City credit card purchases do not include sales tax. Tax-exempt certificates are available through the Finance Department; and
(4) Immediately relinquish any rewards, rebates or awards earned through use of City-issued credit cards to the City.
(h) Authorized Gasoline Credit Card Use and Expenses.
(1) Gasoline credit cards are distributed to, and used by, applicable departments and are under the jurisdiction of each department Superintendent or Director.
(2) Gasoline credit cards shall only be used by City employees while conducting business on behalf of the City relating to the use of a City vehicle.
(3) Designated employees may be permitted to use a gasoline credit card for their personal vehicles. Any such usage shall require prior written approval by the Finance Director or City Manager. It is the responsibility of the employee to obtain such approval prior to use of the gasoline credit card for personal vehicles.
(4) The department Superintendent or Director is responsible for the security of and the monitoring of gasoline credit card usage under the general direction and control of the Finance Director. Repayment of any unsubstantiated or unrelated purchases will be the responsibility of such employee making the purchases and the employee's department Superintendent or Director, if applicable.
(5) Use of gasoline credit cards shall in all other respects adhere to all procedures and requirements described in this policy.
(i) Receipts.
(1) Detailed itemized receipts issued by email and/or electronic register along with the credit card receipts for all purchases with a City credit card must be retained and submitted to the Finance Department by the end of the next business day immediately following the employee's return to his/her normal work schedule.
(2) Failure to turn in receipts and appropriate documentation shall result in the charges being deemed unrelated or unsubstantiated. The employee and his/her department Superintendent or Director, if applicable, shall be responsible for any unrelated or unsubstantiated purchases.
(3) In the event the employee made reasonable efforts to obtain an itemized detailed receipt but was unsuccessful, the employee shall promptly complete and submit a "Lost Credit Card Receipt Form", attached to Ordinance 2021-26 as Appendix B, and incorporated herein by reference as if set out in full, to the Finance Director. Completion of this form does not relieve the employee from being responsible for repayment of any unrelated or unsubstantiated purchases.
(j) Returns.
(1) In the event an item or service purchased with a City credit card must be returned or exchanged for any reason, the purchasing employee is responsible for facilitating the return/exchange and requesting a credit to the account. All documentation regarding the return shall be submitted to the Finance Department by the end of the next business day immediately following the employee's return to his/her normal work schedule.
(2) Cardholders shall not receive cash back or in-store credits for any refunds or exchanges. Such amounts must be credited to the City credit card account. If a supplier mistakenly issues a refund check, the refund check must be immediately submitted to the Finance Department.
(k) Credit Card Reissuance and Cancellation.
(1) Reissuance of City credit cards to any authorized employee, other than an employee previously found to have violated this policy, shall be commenced under the same procedures and requirements described in this policy for the initial issuance of a City credit card.
(2) Failure to comply with this policy shall result in the employee having his/her City credit card cancelled. The Finance Director shall be responsible for requesting and facilitating any necessary City credit card account cancellation and must notify City Council of the same.
(3) Employees must surrender all City credit cards in their possession immediately upon separation of employment from the City or at any time when requested by the Finance Director.
(l) Reporting Lost or Stolen Credit Cards. In the event a cardholder suspects the loss, theft, damage to, or unauthorized use of a City credit card, the cardholder shall immediately notify the Finance Director. After that, the Finance Director shall immediately take necessary steps to notify the issuing credit card agency, merchant, or financial institution in order to cancel and replace the credit card. The City Manager shall be notified as soon as practicable.
(m) Maximum Credit Limits. The City has several credit cards issued to City employees and departments. The City's New Carlisle Federal Savings Bank credit card account has a combined credit limit of thirty thousand dollars ($30,000). Individual limits for each credit card are based upon the nature and frequency of use, but in no event shall an individual credit limit exceed fifteen thousand dollars ($15,000). Combined or individual credit limit amounts shall only be adjusted by the Finance Director upon prior approval by Council.
(n) Misuse of Credit Cards. Any use of City credit cards for personal purchases is strictly prohibited and unauthorized. Such use shall result in the cardholder losing all privileges to use City credit cards, cancellation of the credit card, the cardholder being required to reimburse the City, and disciplinary action and/or criminal prosecution.
(1) Cash advances on credit cards are not allowed under any circumstances.
(2) Employees are not permitted to lend their credit card to another employee to facilitate a transaction, online or otherwise. If another employee needs a credit card to complete a transaction, then the employee should have his/her Superintendent or Director, if applicable, submit a request.
(3) Any of the following purchases are strictly prohibited:
A. Alcoholic beverages or tobacco products;
B. Capital equipment and upgrades over five thousand ($5,000);
C. Construction, renovation/installation;
D. Controlled substances;
E. Items or services on term contracts (unless authorized by the Finance Director);
F. Maintenance agreements;
G. Personal items or loans;
H. Rentals (other than short-term automobiles); or
I. Any other items deemed inconsistent with City Policy or the Ohio Revised Code.
(4) All actions or omissions by a cardholder that fail to comply with any provision of this policy shall qualify as misuse of a City credit card account and will be subject to appropriate action.
(Ord. 09-58. 1-16-09; Ord. 2021-26. Passed 8-2-21.)