133.05 CREDIT CARD POLICY.

   (a)   The City recognizes that the use of a credit card can facilitate City business and provide an efficient means of making purchases on the City's behalf. The City also recognizes the inherent risks associated with the use of credit cards. Therefore, the use of City credit cards is restricted to those situations where, by reason of time restraints or efficiency, the normal City vendor policy and practice is not practicable. All use of City credit cards is subject to the requirements and limitations of this Policy.

   (b)   Authorized Users of City Credit Cards. City Council authorizes each of the following positions, or such position's designee, to carry and use a City of Norwalk (the City) credit card:

      General Services Superintendent

      Parks & Recreation Superintendent

      Chief of Police

      Chief of Fire

      Director of Finance

      Water Department Superintendent

      Waste Water Department Superintendent

      Clerk of the Municipal Court

      Director of Safety/Service

      Mayor

      Director of Public Works

      Director of Law

   The name of the City together with the City's tax identification number shall appear on each City credit card.

   Each employee using a City credit card shall execute a written statement affirming that the employee has received a copy of this Policy, that the employee understands the Policy and the penalties for violating the Policy, and that the employee agrees to abide by and be bound by the terms of this Policy.

   (c)   Types of Allowable Credit Card Expenses. City credit cards shall only be used in connection with City-approved or City-related activities and only those types of expenses that are for the benefit of the City. All credit card expenses shall serve a valid and proper public purpose. This includes accounts that can be used to make purchases on credit even when no physical credit card exists. The term credit card expressly excludes any procurement card account, gas or telephone card account, or any other card account where merchant category codes are in place as a system of control for use of the account.

   The following type of expenses are prohibited:

      (1)    Personal expenses;

      (2)   Purchase of food unrelated to City business;

      (3)   Purchases of alcohol or tobacco;

      (4)    Entertainment;

      (5)    Cash advances and money transfers;

      (6)    Other purchases as directed by the Finance Director.

   (d)   Procedure for Submitting Itemized Receipts. The use of a credit card does not eliminate the need for compliance with the City's purchase order policies and procedures. Employees authorized to carry credit cards may use the card for any expense deemed a proper public purpose, provided a purchase order is in place in advance of the purchase. Itemized receipts must be returned to the Finance Director or Assistant Director of Finance substantiating the exact amount charged to the card. Gratuities in accordance with the USGSA guidelines are acceptable. Every effort should be made by employees to notify and provide vendors with an Ohio Sales Tax exempt form. If a merchant fails to waive the tax, the employee and Finance Director are authorized to pay it contingent upon the significance of the sales tax paid and department compliance history.

   (e)   Maximum Credit Limits.

      (1)   The Finance Director shall be responsible for reviewing available credit card accounts and to determine which account type, account provider, and credit limit best meets the needs of the City. The Finance Director will determine how many accounts, cards, and checks are to be issued and establish a process for card reissuance or cancellation. Debit cards are prohibited by law.

      (2)   The City shall establish the following credit limits:

Department	Credit Monthly Limit
General Services	$30,000
Parks and Recreation	$20,000
Police Department	$25,000
Fire Department	$25,000
Finance Department	$25,000
Water and Wastewater	$25,000
Municipal Court	$5,000
Safety Service	$5,000
Mayor	$5,000
Law Department	$5,000
Public Works	$5,000

      (3)   The Finance Director may adjust the above limits based on emergency or necessity. Limits shall be returned to their monthly limits immediately after the transaction is processed. Individual purchases on any credit card is limited to two thousand five hundred dollars ($2,500.00) per transaction unless a transaction in excess of such limit is authorized in advance by the Mayor or his/her designee.

   (f)   Procedure for Acquisition, Use, and Management of Credit Card Accounts and Card Themselves and the Procedure for Card Issuance, Reissuance, Cancellation, and Process for

Lost/Stolen.

      (1)   The Finance Director shall coordinate with appropriate financial institutions that issue credit cards to determine the best type of credit card accounts for the City, and also to determine which store credit card accounts the City will utilize.

      (2)   The Finance Director is responsible for working with the issuing financial institution to determine the dates when credit cards expire and the reissuance of replacement cards.

      (3)   The Finance Director is responsible for determining, when necessary, the need to cancel a credit card account.

      (4)   The Finance Director is responsible for notifying the issuing financial institution of a lost or stolen card. Employees using a credit card shall notify the Finance Director or Assistant Finance Director within one working day when they become aware that a card is lost or stolen.

   (g)   Actions that Qualify as Misuse by an Employee.  

      (1)   The following actions or omissions by an officer or employee handling or using a City credit card shall constitute misuse of the credit card:

         A.   Use of the credit card to make a purchase or transaction prohibited by this policy;

         B.   Use of the credit card for purchases other than for City business;

         C.   Permitting a person not authorized by this policy to handle or use the credit card or credit card account;

         D.   Use of the credit card or credit card account by any person not authorized to do so by this policy;

         E.   Failure to submit receipts following use of the credit card or credit card account within one working day;

         F.   Use of the credit card or credit card account without complying with the City's purchase order policy.

      (2)   Employees are liable in person and upon official bond for any unauthorized use of credit and any employee who suspects the loss, theft, or possibility of unauthorized use of a card must notify the Finance Director or Assistant Finance Director immediately.

      (3)   Inappropriate or illegal use of the card and/or failure to strictly adhere to the requirements set forth in the Finance Department's guidelines, including submitting detailed itemized receipts, may result in loss of credit card privileges, disciplinary action, up to and including termination, personal responsibility for any and all charges, including finance charges and interest assessed, and referral to law enforcement for prosecution. Employees shall be responsible to make full reimbursement to the City within thirty days for any charges that were not supported with detailed itemized receipts.

      (4)   Any employee of the City or other public servant as defined in Ohio R.C. 2921.01 who knowingly misuses a City credit card or credit card account may be criminally prosecuted under Ohio R.C. sections 2913.02, 2913.21, 2921.41 and 2921.42.

      (5)   In the event an itemized receipt was not secured to support the credit card expense, the employee shall complete the City of Norwalk Credit Card Lost Receipt Certification Form evidencing the credit card expense was for a proper public purpose. The expense shall only be processed after approvals from the employee, department head and Finance Director.

      (6)   A violation of this Policy shall constitute a Group 3 offense under the City's disciplinary policy which may result in termination of employment without prior disciplinary history. A violation of this Policy shall also result in the loss of privileges to use the City credit card.

   (h)   Compliance Officer and Review.

      (1)   The Assistant Finance Director shall be the designated Compliance Officer. The Compliance Officer shall not use a City credit card or credit card account and may not authorize any person to use a City credit card or credit card account. The Compliance Officer shall also be responsible for compiling a list of rewards received from credit card usage and such report shall be submitted to City Council annually.

      (2)   On a quarterly basis, the Compliance Officer shall review the number of City credit 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, and shall report the same to City Council. On a quarterly basis, Council shall review the information contained in the report of the Compliance officer.

         (Ord. 2019-006. Passed 2-5-19.)