(a) Purpose. This policy and procedures are intended to ensure that appropriate internal controls are established within each department procuring with credit card accounts so that they are used for authorized purposes only.
(b) Scope.
(1) As used in this policy and procedures “Credit card account(s)" means any bank issued credit card account, store-issued 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. “Credit Card Accounts(s)” does not include a procurement card account, gasoline or telephone credit card account, or any other card account where merchant category codes are in place as a system of control for the use of the card account.
(2) This policy strictly prohibits the use of debit card accounts for any purpose other than law enforcement purposes and debit accounts related to the receipt of grant money.
(c) Officers and Positions Authorized To Use a Credit Account.
• Mayor
• Director of Finance
• Department Heads (as approved by the City Administrator)
• Fire/Rescue Division (Chief)
• Municipal Court Judge
• Police Department (Chief, Lieutenant for the City of Tiffin)
(d) Types of Expenses.
(1) Prohibited Expenses: The following purchases are strictly prohibited:
• Alcoholic beverages
• Personal purchases
• Cash Advances
• Individual meals (not meeting related)
• Purchases not related to the business of the City
(2) Allowed Expenses:
A. Travel/Training. Expenditures related to travel and training such as registration accommodations, parking, and airline tickets.
B. Supplies. If not available through a purchase order or in emergency situations, food for group events or for emergency situations.
(3) Parking Charges. Parking charges will only be covered with a receipt stating the charge. The date on the parking receipt must match the approved travel dates on the Travel/Training form.
(e) Procedure for Acquisition, Use and Management of a Credit Card Account.
(1) Acquisition of an Account. The procedure for establishing a credit card account or a store-issued credit card account is as follows:
A. Only a Department Head or Elected Official may request to open a credit card account or a store-issued credit card account.
1. Department Head- Submit request to City Administrator. City Administrator approves and sends to Director of Finance for final approval.
2. Elected Official- Submit request to Director of Finance for approval.
B. The Director of Finance is responsible for processing the application, including signing the application and assigning the credit limit.
C. The legislatively appointed compliance officer may not authorize an officer or employee to establish a credit card account or a store-issued credit card account.
D. The name of the City must appear on each presentation instrument related to the account including all cards and checks.
E. The department head, or their designee, will report the new credit card account to the compliance officer.
(2) Use and Management of an Account.
A. Before any purchases are made, the department head, or their designee, should verify that a purchase order has been approved for the related expenses. If the card will be used for travel and registration, a Travel/Training expense form must be approved.
B. Employees should make every effort to ensure that purchase does not include taxes. Tax-exempt certificates are available through the Director of Finance office. Sales tax may be paid for minimal expenditures from one time vendors who refuse the exemption, but sales tax should not be paid where the purchases are for more substantial expenditures. The official and employee may be personally responsible for payment of sales tax. Exceptions will be made for online vendors who do not recognize our tax-exempt status.
C. Officers and employees are responsible for all charges made to the card. Detailed itemized receipts for each charge on the account must be retained and attached to the voucher. A printed copy of the completed online purchase must be provided for all online purchases.
D. Detailed receipts must be retained and promptly given to the employee's department head, or their designee. Failure to provide receipts will result in the employee's responsibility for charges.
E. Monthly statements will be sent to the main account holder/department.
1. Upon receipt of the statement the receipts will be matched to the detailed charges and vouchered per the Director of Finance's office vouchering procedure.
2. Any items that do not have a receipt will be the personal responsibility of the card user.
3. Bills will be vouchered and paid in a timely manner to not incur late charges/fees.
a. If late fees are incurred it is the responsibility of the department head, or their designee, to request the charges removed.
b. The payment of late fees on habitually tardy bills will become the responsibility of the department head, or their designee.
F. Card Statements are reviewed monthly by the Director of Finance office for unauthorized charges and other discrepancies.
(3) Credit cards are to be returned to the City immediately upon ending employment.
(4) Quarterly, all departments with credit card accounts must report the following information to the compliance officer and the legislative authority.
• Lost or stolen cards
• Cards and accounts Issued during the quarter
• Number of active cards and accounts
• Expiration dates of all cards
• Credit limits for all cards
• Incentives/Rewards
(f) Procedure for Credit Card Issuance, Reissuance and Cancellation.
(1) Employees are required to sign the "Credit Cardholder Agreement" (attachment A) prior to issuance of a credit card. This will be monitored by the department head or their designee.
(2) The Director of Finance is authorized to revoke the use of any credit card issued and immediately require the surrender of the credit card.
(3) Once a card is determined as unnecessary/unneeded the following steps must be taken:
A. The department head is required to inform the City Administrator and the Director of Finance of the unneeded card.
B. The Director of Finance needs to contact the issuing bank and request that the card be canceled.
C. Once the card is cancelled it should be destroyed.
D. The Director of Finance, or their designee, will report the cancelled card to the compliance officer and the legislative authority on their quarterly report.
(4) Reissuance. - Lost or stolen cards will be reviewed for reissuance based on circumstances.
(g) Reporting Lost or Stolen Card. Lost or stolen cards must be immediately reported to the department head or their designee. Once reported, the department head will notify the Director of Finance who, will call the bank or store and report the card as lost or stolen.
(h) Maximum Credit Limit. Credit card limits should not exceed $5,000 for the Mayor and $1,000 each for department heads with a City max of $25,000.00.
Credit card limits should not exceed $3,000.00 for the Police Department and Fire/Rescue Division.
(i) Incentive Programs/Rewards. Any incentives/rewards derived by the use of the City's credit. card will be property of the City. All incentive/rewards must be reported to the compliance officer quarterly.
(j) Periodic Review.
(1) Compliance Officer/Legislative Authority Reporting. The legislative authority shall appoint a compliance officer. The compliance officer may not use a credit card account and may not authorize an officer or employee to use a credit card account. The compliance officer and the legislative authority at least quarterly must review the number of 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.
(2) The Director of Finance must present monthly to the legislative authority credit card account transaction detail from previous month. The legislative authority must review the credit card account transaction detail and the presiding officer of the legislative authority must sign an attestation stating the legislative authority reviewed the credit card transaction detail.
(3) The Director of Finance, or a designee, annually must file a report with the legislative authority detailing all rewards received based on the use of the municipal corporations credit card account.
(k) State Auditor Reporting. Annually the Director of Finance office shall file a report with the Auditor of State detailing all rewards received by the City based on the use of a credit card account.
(Ord. 19-63. Passed 10-7-19; Ord. 23-35. Passed 5-15-23.)