(a) Purpose. The Council of the City of Warren, Ohio, established a Credit Card account Policy per the Ohio Revised Code as amended by House Bill 312. This policy and procedures are intended to ensure that appropriate internal control are established within each department procuring with credit card accounts so that they are used for authorized purposes only.
(b) Scope. As used in this policy and procedures, “Credit card account(s)” means any bank issued credit card account, store-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. “Credit Card Account(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. 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) Custody and Control Model. The City of Warren shall operate this Policy under a custody and control model. The custody and control model is a system in which the fiscal officer maintains control over all credit cards of the entity and may use a system requiring the cards to be “signed out” by authorized, designated users. Entities utilizing the custody and control model should establish the following items in their policies:
(1) Who the authorized, designated users are.
(2) A reasonable length of time the card(s) is allowed to be out of the control of the fiscal officer for the transaction(s) to be completed, and
(3) The procedures that should be followed to submit itemized receipts, as well as any other entity specific requirements that would fit the needs of a political subdivisions.
(4) An officer or employee is liable in person and upon any official bond the officer or employee has given to the political subdivision to reimburse the treasury for the amount for which the officer or employee does not provide itemized receipts in accordance with the credit card policy.
(d) Officers and Positions Authorized to Use a Credit Account.
(1) Mayor.
(2) Director of Public Service and Safety.
(3) Auditor.
(c) Types of Expenses.
Prohibited Expenses: The following purchases are strictly prohibited:
(1) Alcoholic beverages.
(2) Personal purchases.
(3) Cash advances.
(4) Items or services on term contracts unless approved by the Auditor.
(5) Utility payments.
(6) Personal phone and wireless services.
(7) Maintenance agreements unless approved by the Auditor.
(8) Purchases not related to the business of the City of Warren.
Allowed Expenses:
(1) Travel/Training - Expenditures related to travel and training such as registration, accommodations, parking, meals, and airline tickets.
(2) Supplies - If not available through a purchase order or in emergency situations. Food for group events or for emergency situations.
(3) Other City related expenses that are not prohibited above.
Parking Charges:
(1) 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.
(f) Procedures for Acquisition, Use and Management of a Credit Card Account. The procedure for establishing a credit card account or a store-issued credit card account is as follows:
(1) Only the Mayor, Director of Public Service and Safety or the City Auditor may request to open a credit card account or a store issued credit card account.
(2) The Auditor is responsible for processing the application, including signing the application and assigning the credit limit.
(3) The name of the City of Warren must appear on each presentation instrument related to the account including all cards and checks.
USE AND MANAGEMENT OF AN ACCOUNT
(1) Before any purchases are made, the Auditor 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.
(2) Every effort should be made to ensure that purchases do not include sales tax. Tax-exempt certificates are available through the Auditor’s office. Sales tax may be paid for minimal expenses 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 may be personally responsible for payment of sales tax. Exceptions will be made for online vendors who do not recognize our tax-exempt status.
(3) The Mayor, Director of Public Service and Safety and the City Auditor 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.
(4) Detailed receipts must be retained. Failure to provide receipts will result in the employee’s responsibility for the charges.
(5) Monthly statements will be sent to the Finance Department, and Warren City Council upon written request.
A. Upon receipt of the statement the receipts will be matched to the detailed charges and vouchered per the Auditor’s office vouchering procedure.
B. Any items that do not have a receipt will be the personal responsibility of the card user.
C. Bills will be vouchered and paid in a timely manner to not incur late charges/fees.
(i) If late fees are incurred, it is the responsibility of the Auditor to request the charges removed.
(ii) The payment of late fees on habitually tardy bills will become the responsibility of the Auditor.
(6) Card statements are reviewed monthly by the Auditor’s office upon request for unauthorized charges and other discrepancies.
(g) Reissuance. Lost or stolen cards will be reviewed for reissuance based on circumstances.
(h) Reporting Loss or Stolen Card. Lost or stolen cards must be immediately reported to the Auditor. Once reported, the Auditor will call the bank or store, to report the card as lost or stolen.
(i) Maximum Card Limit. Credit card limits should not exceed $5,000.00.
(j) Incentive Programs/Reward. Any incentives/rewards derived by the use of the City’s credit card will be the property of the City of Warren, Ohio. All incentive/rewards must be reported to the Auditor quarterly.
(k) State Auditor Reporting. Annually the Auditor’s 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.
(The Auditor of State shall promulgate rules detailing the manner in which a City shall report to the Auditor of State rewards received by the City for the use of a credit card account.)
(Ord. 12938/2020. Passed 5-6-20.)