(A) In order to assist the village with the payment of work-related and/or emergency expenses, it is in the best interest to have certain credit cards available. Employees who are authorized to use village credit cards will be held responsible for its proper use. It is impossible to anticipate every situation encountered by a village employee or official. Therefore, these guidelines should be applied on a conservative basis, consistent with normal business standards, with good judgment exercised wherever the policy is silent.
(B) The following guidelines were established to assure the proper use of the village credit cards.
(1) A credit card held by the village shall be used only to pay the following work- related expenses:
(a) Eligible uses of credit card: food expenses, transportation expenses, gasoline/oil expenses (village vehicles), motor vehicle repair/maintenance expenses (village vehicles), telephone expenses, lodging expenses, internet service provider expenses, and emergency supplies and materials; and
(b) Ineligible use of credit card: personal purchases. Absolutely no personal use of the card is allowed. Personal purchases include: gratuities; gasoline for any personal vehicle; cash advances; and alcoholic beverages.
(2) All existing purchasing policies apply to purchases made on a credit card.
(3) No fees or interest charged by a card company because of late payments due to untimely submissions of payment shall be paid from village funds, unless authorized by the Village 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 his or her department.
(4) The Fiscal Officer is responsible to make sure that any charges incurred by employees are authorized village expenditures and that adequate funds are available within the village- approved budget.
(5) The debit incurred as a result of the use of a credit shall be paid from monies appropriated to the specific appropriation line items of the village.
(6) (a) For all credit card transactions, the employee or official using a village card shall submit to the Fiscal Officer, within three business days, documentation sufficient to satisfy Internal Revenue Service requirements for employee business expenses. This documentation will include the credit card slip (customer copy) along with a receipt or invoice from the vendor that documents the goods or services purchased, the cost of the goods or services and the date of the purchase.
(b) Each receipt will also indicate the official village business for which the expense was incurred. If an employee or official using a village card fails to submit proper documentation, they shall be responsible for payment and any interest incurred within 15 days.
(7) The individual authorized to make such purchases or returns will be liable for payment of any undocumented items presented on an invoice for payment. Individual liability is imposed for inappropriate use pursuant to the procedure established in R.C. §§ 301.27 and 301.29. If, within 30 days after issuance of a written notice to the amount shown on the written notice, the prosecuting attorney shall recover that amount from the cardholder by civil action in any court of appropriate jurisdiction.
(8) If the village suspects the loss, theft, or possibility of unauthorized use of the card, the officer/employee shall notify the Mayor and Village Council immediately in writing.
(9) The Fiscal Officer shall notify Council immediately if they determine there has been an improper credit card expenditure.
(10) The Fiscal Officer is responsible for the physical custody of the card, and for maintaining confidentiality of all information relating to the card such as the account number and expiration date. The card, or any document containing the card account number, should be kept in an accessible but secure location. The account number on the purchasing card should not be posted or left in a conspicuous place. The account number must not be faxed to vendors. That card is not to be loaned to anyone or used by anyone other than the person(s) designated to do so. Issuance and return of cards shall be recorded by type of card, name of user, and date. Once signed out the card holder will retain custody of the card for no more than five business days. The village will retain the signed acknowledgment and maintain current record of all cardholders.
(11) All expenditures made using the village credit card should be tax-exempt from state sales tax. Employees are responsible for informing vendors of the sales tax exemption. If requested by a vendor, a state sales tax exemption certificate is available from the Auditor’s office.
(12) The Fiscal Officer should retain a list of all employees authorized to use the card.
(13) 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 individuals, or the statement contains duplicate charges from a vendor. In these instances, the individual 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 individual should notify the Fiscal Officer so he or she can verify that the credit appears on a subsequent statement. The village cannot accept cash or a rain check instead of a vendor credit. If the dispute cannot be resolved, the individual should contact the Fiscal Officer.
(14) In the event that a credit card is lost or stolen, the individual holding the card must notify the Fiscal Officer immediately, who will notify card issuer immediately. Further use of the card will be blocked. Prompt action will reduce the liability for fraudulent charges. The Fiscal Officer must confirm the phone call by written notification to the card issuer via mail or fax. The date and time of the phone report of the lost or stolen card shall be included in the written notification. The village will initiate issuance of a replacement card.
(15) Cardholders who terminate their employment or whose job duties change and no longer include purchasing must surrender their credit card immediately. It shall be the responsibility of the Fiscal Officer to ensure all cancelled cards are collected from the employee prior to the employee leaving and destroyed.
(16) (a) The Village Council President shall act as Compliance Officer. Quarterly, he or she shall meet with the Fiscal Officer to review:
1. Card and account credit limits;
2. Number of cards issued;
3. Number of active cards and accounts issued;
4. Card and account expiration dates; and
5. Card transaction details.
(b) Once reviewed, the Compliance Officer will sign an attestation the review has taken place.
(Ord. 271, passed 12-11-2018)