Policy:
Credit cards are issued at the discretion of the City of Somerton to City Council members and employees who are granted a formal delegation purchasing authority. Delegation of the City of Somerton purchasing authority governs the use of the credit card as a tool for purchasing materials and services for less than $2,500. The cardholder agrees to comply with all applicable city policies and procedures and this Cardholder agreement. When signed and accepted, this form acts to assign the formal delegation of purchase authority to a current city employee.
Compliance with Policy, Violations and Consequences:
Employee violations to this agreement or to any policy regarding the purchase of goods or services will be investigated and may result in either one or more of the following actions: written warning, revocation of credit card privileges, cancellation of delegation of purchasing authority, disciplinary action, and termination and/or criminal prosecution. Human error and extraordinary circumstances may be taken into consideration when investigating any violation to this agreement.
Employee violations to this agreement or to any policy regarding the purchase of goods or services will be investigated and may result in either one or more of the following actions: written warning, revocation of credit card privileges, cancellation of delegation of purchasing authority and/or termination as a city employee. Human error and extraordinary circumstances may be taken into consideration when investigating any violation to this agreement.
The Administrative Services Director has the authority to investigate and to determine whether a violation of procurement policy has occurred, and to recommend actions that may be taken because of such determinations. The City of Somerton will consider the facts and circumstances of each incident, and will take action as deemed appropriate.
Credit Card violations include but are not limited to:
• Purchase of items for personal use
• Purchase of items in violation of city policy
• Use of the credit card for cash advances
• Exceeding bank credit line limit
• Use of the credit card for purchase of more than $2,500 by splitting purchases into more than one transaction
• Failure to return the credit card when an employee is reassigned, terminated or upon request
• Failure to turn in packing slips, receipts or other backup documentation to the Accounts Payable Clerk within ten days of the request from Accounts Payable
Ownership and Cancellation of the Credit Card:
The credit card remains property of the Bank. It may not be transferred to, assigned to, or used by anyone other than the designated Cardholder. The Cardholder is accountable for the activity on the card. The bank or the city may suspend or cancel Cardholder privileges at any time for any reason. The Cardholder will surrender the credit card upon request to Administrative Services Director or any authorized agent of the Bank.
Spending Limits:
Each credit card has a pre-set limit of $2,500 (including shipping, handling and tax) that may not be exceeded under any circumstances.
Receipts:
It is the Cardholder's responsibility to obtain transaction receipts from the merchant each time the credit card is used. Individual transaction receipts are to be attached to periodic statements and submitted to Accounts Payable.
Disputed Items:
It is the Cardholder's responsibility to follow-up on any erroneous charges, returns or adjustments to ensure proper credit is given on subsequent statements.
Protecting the Credit Card:
The credit card is valuable property which requires proper treatment by the Cardholder to protect it from misuse by unauthorized parties.
Validation and Safekeeping:
Sign the credit card immediately upon receipt. The credit card should always be treated with the same care as personal credit cards, bankcards, cash and checks. Keep your card(s) in an accessible, but secure location. When using the credit card for internet purchases, cardholders should ensure that the site utilizes industry recognized encryption transmission tools.
When the expiration date is passed and/or after you have received a new credit card, cut the old credit card in half and dispose of it. Make sure the credit card is returned to you after each charge and verify that the returned credit card has your name on it.
Lost or Stolen Credit Cards:
If the credit card is lost or stolen, contact the Bank's 24-hour toll-free number immediately and the Administrative Services Director.
Signed This Date:
Please Print Title/Position
Signature
(Res. 2008-018, passed 4-15-2008)