The purpose of this policy is to ensure that the appropriate level of internal controls for city credit card accounts are maintained to provide for and to guard against misuse or losses for which the city may be held financially liable. This policy is intended to comply with the mandates set forth in Sub HB 312 enacted by The 132nd Ohio General Assembly or any successor legislation enacted for this purpose. The city's credit card accounts are not intended for personal use, and city-issued credit cards will not be permitted to be carried by city personnel on a regular basis for any reason. All city credit card accounts shall be issued in the name of a city department.
(a) This policy applies to all (i) payment cards, checks or other payment instruments associated with a credit account issued by a financial institution or a retailer, and (ii) payment cards related to the receipt of grant funds. All such cards and instruments are referred to herein as "credit cards".
(b) This policy does not apply to procurement cards (P-cards), or to gasoline account cards or, other payment cards that are capable of use only for the purchase of certain limited types of goods.
(c) The city will not obtain or maintain any debit cards.
(d) The Director of Finance will work with the appropriate financial institutions that issue credit cards to determine the best type of credit card accounts for the city, and also to determine which retail purpose credit card accounts the city will be permitted to utilize.
(1) The Director of Finance is responsible for working with the issuing financial institution to determine the dates when credit cards expire and the re-issuance of replacement cards.
(2) The Director of Finance is responsible for determining, when necessary, the need to cancel a credit card account and any adjustment to credit limits on the credit cards.
(3) The Director of Finance is responsible for notifying the issuing financial institution of a lost or stolen card.
(e) Credit cards will be established in the name of the City of Solon and the specific name of a city department with a maximum credit limit for the card program and for each card as set by the Director of Finance. No single credit card purchase shall exceed the credit card limit without prior written authorization from the Director of Finance. The credit limits on individual departmental cards shall be communicated to city departments and be included in the current version of the credit card policy manual as defined in section (p).
(f) Prior to initial receipt of a credit card, each departmental user must acknowledge the requirements for use by signing the credit card authorization and use procedures.
(g) The Mayor shall authorize the use of city credit cards for use in connection with approved or city related activities and only those types of expenses that are for the benefit of the city that serve a valid and proper public purpose shall be paid for by credit card. Credit cards will be used primarily for approved travel expenses, memberships, professional dues, and prepayment for goods or services when required by a vendor. Credit cards may be used only for expenditures that are within the applicable budget and established purchasing guidelines as defined in § 234.03 of the Solon Code.
(h) Regular purchasing procedures must be followed for all credit card purchases. Every credit card purchase must have a valid purchase order assigned to it before the purchase is permitted, The purchase order must contain the vendor and the purpose, account number and estimated amount.
(i) For each purchase made using a credit card, an itemized receipt indicating the amount paid, the vendor, and the goods/services purchased must be submitted to the Director of Finance promptly following the purchase.
(j) Use of a credit card for personal expenditures, for expenditures in excess of the applicable credit limit, or otherwise in violation of this policy constitutes a misuse of the credit card. Any city personnel engaging in misuse of a credit card will be responsible to reimburse the city for any unauthorized expenditures and may be subject to disciplinary action up to and including termination of employment.
(k) The Director of Finance will designate a Finance Department employee as Credit Card Compliance Officer to review all credit card accounts on an annual basis, including; the number of accounts and issued/active cards, account expiration dates and credit limits. The Director of Finance may not also serve as the Compliance Officer.
(l) The Compliance Officer may not authorize city personnel to use a credit card and may only use a credit card with the prior authorization of the Director of Finance.
(m) If a credit card is lost or stolen, or if city personnel become aware of unauthorized or fraudulent use of any of the city's credit card accounts, the same must be reported immediately to the Director of Finance and Compliance Officer.
(n) All monthly credit card statements, access to online credit card accounts, and other correspondence associated with the credit card accounts will be managed by the Director of Finance or the Compliance Officer or other designee. Payment of the monthly statements must be made in a timely fashion so that finance charges and late payment fees are not incurred.
(o) If the Compliance Officer is authorized to use a credit card, on a monthly basis, the Director of Finance (or the Director of Finance's designee, who may not be the Compliance Officer) will review the credit card statements for proper use and documentation prior to submission for payment by the city.
(p) The Director of Finance shall establish and may amend the policies and procedures which are deemed necessary to the operation of the credit card policy as defined herein. The establishment of policies and procedures will include the issuance of policy manual(s), process guidance, forms, reports, and the provision of information systems utilized in furtherance of an efficient and effective credit card policy. Such policies and procedures, and amendments thereto, shall be consistent with the City Charter and the Codified Ordinances.
(q) On an annual basis, the Director of Finance will submit a report to the Council Finance Committee that identifies the total credit card usage by department and total rebates received for use of the cards.
(Ord. 2024-73, passed 4-15-2024)