(a) Purpose. The purpose of this policy it to ensure that City credit card accounts (such as American Express, Visa, Best Buy, Lowes) are closely monitored to provide for maximum security and to guard against misuse and/or losses for which the City may be held liable. This policy is meant to comply with the mandates of Sub HB 312 enacted by the 132nd General Assembly. The City's credit card accounts are NOT for personal use, and City-issued credit cards will not be permitted to be carried by personnel on a regular basis for any reason. All City credit card accounts shall be in the name of the "City of Vermilion, Ohio."
(b) "Credit Card Account" defined. The term "credit card account" shall mean any bank-issued credit card account, store-issued credit card account, financial institution-issued credit 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. It 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 use of the card account.
(c) General Guidelines.
(1) City credit cards are to be kept in the possession and control of the Fiscal Officer. The Fiscal Officer will secure the credit cards in a safe, or in a locked cash box in a secure drawer.
(2) The Fiscal Officer must keep a master list of all persons who are authorized to use City credit cards, along with each person's title, and a master list of cards (and the names that appear on each card, if applicable).
(3) A log of the card name showing date, sign out time, sign in time, signature of person using the card, and valid purchase order number is to be kept by the Fiscal Officer. The Fiscal Officer must initial each entry on the log indicating approval of the card's use and the purchase. Persons needing to use a Village credit card must go to the Fiscal Officer and sign the card in and out on this log.
(4) Regular purchase order policy and 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 legal. The purchase order must contain the vendor and provide descriptions, account numbers and estimated dollar amounts.
(5) City credit cards shall have a credit limit of Ten Thousand Dollars and No Cents ($10,000.00). No single credit card purchase shall exceed the credit card limit without prior written authorization from the Fiscal Officer. This will assure that sufficient appropriations exist to cover the anticipated charges.
(6) Once an itemized detailed invoice and/or receipt is received, it shall be submitted with a copy of the P.O. directly to the Fiscal Officer's office to complete the transaction and pay the invoice.
(d) Policy Administration.
(1) Management of credit card accounts.
A. The Fiscal Officer shall review, approve, and determine when a credit card account will be opened, reissued if a card is lost or stolen, suspended or closed, depending on the circumstances. All City credit card accounts shall be in the name of the "City of Vermilion, Ohio." City-issued credit cards may only be used by authorized City officials or employees (hereinafter "Cardholder" or "Cardholders") as set forth herein.
B. The Fiscal Officer shall periodically review credit card limits and, if necessary, at the Fiscal Officer's discretion, increase or decrease said card limits.
C. The Fiscal Officer or his/her designee shall be responsible for preparing and submitting all applications and other paperwork necessary to open and manage all credit card accounts (i.e., opening, closing, suspending, re-issuance of cards, etc.).
D. The Fiscal Officer may suspend any extension of credit for failure to follow this policy.
E. The City shall not have debit card accounts, except for law enforcement purposes or for the receipt of grant moneys.
(2) Retrieving cards from Cardholders. The Fiscal Officer must retrieve cards from Cardholders who leave the City, change departments, or move to a job in which they will no longer require a credit card account.
(3) Overseeing appropriate use of the card. The Fiscal Officer will:
A. Review all credit card transaction and management reports to ensure that the credit card accounts are being used appropriately.
B. Ensure all transactions are marked "Viewed" and "Approved" in the system prior to mapping into the General Ledger.
(4) Ensuring documentation requirements are met. The Fiscal Officer or his/her designee will:
A. Ensure necessary detail and documentation is provided on all transactions.
B. Ensure that itemized receipts and card statements are retained and kept in accordance with the City's Records Retention Schedule.
C. On an annual basis, report to Council all rewards received based on the use of the City's credit card accounts.
D. On a quarterly basis, report to Council 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.
(e) Authorized Cardholders. The following officials and employees are authorized to use a City-issued credit card:
(1) Mayor
(2) City Administrator, Police Chief, Fiscal Officer, and Service Director.
(3) City employees as deemed necessary for the efficient operation of a City department and approved in writing by the Department Head. Such written approval shall be provided to the Fiscal Officer who maintains a master list of all persons authorized to use City-issued credit cards.
(f) Rules and Procedures for Use.
(1) The card is for City business expenses only. It must not be used for personal purchases.
(2) The card is not transferable. It may be used by the Cardholder only.
(3) Itemized receipts must be obtained for all transactions and submitted to the Fiscal Officer's office for payment.
(4) Pyramiding - i.e., dividing one purchase into two or more, to stay within your transaction limit - is not allowed.
(5) Cardholders may not receive cash advances.
(6) Cardholders are responsible for resolving discrepancies and ensuring credits are received.
(7) Cardholders may not receive cash back or in-store credits for any refunds or exchanges. Such amounts must be credited to the credit card account. If a supplier mistakenly issues a refund check, it must be submitted to the Fiscal Officer's office within two (2) days of receipt by the Cardholder.
(8) Cardholders should not pay Ohio sales tax. The Cardholder must tell in-state suppliers the City is exempt from Ohio sales tax. A copy of the City's Tax-Exempt Certificate is available if the supplier needs to see it.
(9) If grant funds are being charged, Cardholders are responsible for seeing that all granting agency requirements are fulfilled.
(10) Cardholders may not make purchases that violate City policy restricting business transactions that may be perceived as a conflict of interest (purchases from a business in which you or a relative have a financial interest).
(g) Documentation Requirements. Cardholders should always obtain an itemized receipt for each transaction. If a cash register tape does not have descriptions, write them on the tape. Any transaction without a properly substantiated receipt is subject to reimbursement of the City by the Cardholder that made the purchase.
A receipt is defined as an invoice, cash register receipt, sales slip, or packing slip which contains an itemized list of goods purchased, with dollar amounts, and the name and location of the supplier. An employee of the supplier must sign handwritten receipts.
(1) Purchases Made in Person. Retain the itemized receipt in addition to the credit card copy to properly substantiate the purchase.
(2) Faxed or Mailed Purchases. Retain a copy of the order as faxed or mailed and the fax confirmation (if available) for your records.
(3) Internet Purchases. At least one of the following types of documentation is required:
A. Print out of the completed online order form;
B. Print out of the online order confirmation; or
C. Print out of the e-mail confirmation.
Documentation for each purchase made with a City-issued credit card shall be turned into the Fiscal Officer's office within five (5) days after the date of purchase.
(h) Preventing Fraud. The Cardholder should use basic security measures, as outlined below, to guard against fraud:
(1) DO Keep the card in a secure location; guard the card number carefully.
(2) DO Save receipts and statements in a secure area (they may contain your card number).
(3) DO Keep an eye on the card during the transaction and retrieve it as soon as possible.
(4) DO Always know where your card is. If you can't find the card, assume the worst: Notify the Fiscal Officer so that the account can be canceled.
(5) DO Be aware of what you are signing: Your signature can copy through to other slips deliberately placed underneath.
(6) DO Audit your monthly statement closely. Make sure all charges shown are legitimate charges.
(7) DO Visit reputable, familiar merchants whenever possible.
(8) DO Report possible fraud immediately.
(9) DO NOT Discard credit card slips in public areas or discard them whole. Thieves can acquire your card number from receipts, slips and statements.
(10) DO NOT Lend your card to anyone.
(11) DO NOT Give your card number to anyone over the phone unless you know you are dealing with a reputable vendor.
(i) Unauthorized Purchases. The City's credit card accounts may not be used to purchase the following items:
(1) Personal items
(2) Alcohol and entertainment
(3) Controlled substances requiring a DEA license
(4) Employee relocation and relocation-related expenses
(5) Purchases that involve signing an agreement, license, or contract (e.g., leases).
(6) Long term rentals (1 year or longer).
(7) Contracted or personal service providers - specific to unincorporated 1099 service providers (e.g., photographic studios, dry cleaners, physicians, medical labs, auto towing or repair, etc.).
(8) Weapons or ammunition
(9) Donations
(10) Fuel for a privately-owned vehicle or aircraft
(j) Lost or Stolen Cards/Fraudulent Activity. The Cardholder must immediately notify the Fiscal Officer or his/her designee if a card is damaged, lost, stolen or the subject of suspected fraudulent activity.
(k) Misuse of Cards.
(1) Cardholders are responsible for safeguarding the card. If misuse of the card is discovered, disciplinary action up to and including discharge from employment is possible. In the event of misuse of a City credit card account, the City may pursue legal prosecution.
(2) Improper costs associated with prohibited purchases will be collected by requesting the employee to voluntarily repay the City, by the employee voluntarily agreeing to a payroll deduction, or by any legal action available to the City.
(3) Upon the first notice of suspected credit card abuse, the Department Head or employee should immediately advise the Fiscal Officer. Any disciplinary proceedings regarding suspected credit card abuse shall be conducted as provided for in the City of Vermilion Employee Handbook.
(l) Cardholder Acknowledgment.
I have read the forgoing Credit Card Policy and acknowledge that I understand it and will abide by its mandates.
Signature Date Print Name: Title: |
(Ord. 2019-4. Passed 1-28-19.)