(A) Purpose. The purpose of this policy is to ensure that village credit card accounts are closely monitored in order to provide for maximum security of village funds and to safeguard against misuse and/or losses of public funds for which the village may be held liable. This policy is meant to comply with the mandates of 2018 H.B. 312, § 1, enacted by the 132nd General Assembly and made applicable to the village as codified by R.C. § 717.31. All village-issued credit cards are to be used solely for the purpose of conducting village business and are not to be used in any event for personal expenses.
(B) Authorized personnel.
(1) Only authorized personnel shall be permitted to use village credit cards. The Fiscal Officer shall retain general possession and control of all village credit card accounts and presentation instruments, including cards and checks, related to the accounts.
(2) Only the following village officials shall be issued and authorized to regularly hold and use village credit cards, as administered by the Fiscal Officer:
(a) Mayor;
(b) Village Administrator;
(c) EMS Chief;
(d) Fire Chief;
(e) Police Chief; and
(f) Fiscal Officer.
(3) Other village employees beyond the above listed officers may only use village credit cards by signing them out with the Fiscal Officer. All references to “authorized user(s)”, “employee(s)” and “cardholder(s)” in this policy refer to the aforementioned, authorized village officials and employees. Before receiving any village credit card, other than a fuel card as addressed below authorized employees must read this policy and complete an employee credit card account agreement attached to this policy as Exhibit “A” and incorporated herein by reference, which will be filed and maintained in the employee’s personnel file.
(C) Fuel cards. In addition to the credit cards procured and held by the village related to general departmental expenses, the village possesses credit card accounts specifically designated only for the expense of fuel for village-owned vehicles. These cards (hereafter, “fuel cards”) apply to all employees and volunteers in the EMS, Fire, Police and Streets Departments of the village. Fuel cards must be signed out with the Fiscal Officer. In addition, before receiving a village fuel card, authorized employees must also read this policy and complete the employee/volunteer fuel card account agreement attached to this policy as Exhibit “B” and incorporated herein by reference, which will be filed and maintained in the employee’s personnel file.
(D) Acquisition, use, and management of credit card accounts. The Fiscal Officer shall be responsible for the acquisition, use and management of all new and existing village credit card accounts and associated presentation instruments, including cards and checks. Any new and/or additional credit card accounts to be opened for conducting village business must be submitted by the Fiscal Officer to Council for approval.
(E) Credit card issuance, use and management.
(1) The Fiscal Officer will use a system to sign out credit cards to authorized users and should keep records of when an authorized user signs out and returns a credit card. Authorized village employees, other than those officials specifically listed in division (B) of this section must sign out the village credit card with the Fiscal Officer each time the credit card is placed in the user’s possession. An authorized user must return a credit card to the Fiscal Officer within a reasonable time after use. No credit card, including fuel cards, may remain signed out for a period longer than 72 hours.
(2) Employees are responsible for maintaining physical control over the card they are issued and must maintain reasonable care of the card while the card is in use. Inactive credit cards and/or credit cards that have not been utilized for any purchases within six months will be secured by the Fiscal Officer in a safe or locked cash box in a secure drawer. Credit cards and any other presentation instruments associated with a credit card account must be kept in a secure place under the care, general possession and control of the Village Fiscal Officer when not held by an official specifically listed in division (B) of this section or signed out by an authorized user.
(3) The Fiscal Officer shall maintain a written list of all officials and employees permitted to use village credit cards, along with a master list of all cards (and the names that appear on each card, if applicable). The Fiscal Officer shall maintain and keep current both lists.
(4) The Fiscal Officer has the right to refuse to authorize the use of a credit card. In the case of a refusal, the employee may request Council’s authorization.
(F) Authorized credit card use and expenses.
(1) The village recognizes the efficiency and convenience afforded the day-to-day operation of the village through the use of credit cards under the supervision of the Fiscal Officer. However, credit cards shall not be used to circumvent state law and the policies of the village. Therefore, prior to using a village credit card, other than a fuel card, an authorized user must get all purchases approved in advance through a purchase order. In the event of an emergency or when it is not possible to get advanced approval through a purchase order, an authorized user must notify the Fiscal Officer before making any purchase on a village credit card.
(2) Village credit cards may only be used by village employees and officials to purchase work-related goods and services incurred on behalf of the village. Such work-related goods and services include, but are not limited to, the following:
(a) Gasoline for village vehicles, with the requirement that fuel cards may only be used to purchase gasoline for village vehicles and for no other purpose provided in this section;
(b) Maintenance/repairs of village vehicles and equipment;
(c) Uniform purchases for village employees;
(d) Office supplies/materials as needed (in-store or online); and
(e) Registration/enrollment fees for village officer trainings.
(3) In addition to these requirements, authorized employees using village credit cards must:
(a) Limit use of village credit cards exclusively to purchases necessary for conducting village business;
(b) Immediately notify the Fiscal Officer of any unintended personal purchases made on a village credit card, and the employee shall immediately reimburse the village for such charges; and
(c) Make every effort to ensure that village credit card purchases do not include sales tax. Tax-exempt certificates are available upon request from the Fiscal Officer.
(4) No single credit card purchase shall exceed a spending limit of $2,000. Single purchases exceeding this limit must receive prior approval of Council.
(5) Any rewards, rebates or awards earned through use of the village credit card shall be immediately relinquished to the village.
(G) Receipts.
(1) Detailed itemized receipts, issued by email and/or electronic register, for all purchases on the village credit card must be retained, initialed or signed by the charging individual, and submitted to the Fiscal Officer by the end of the next business day, unless more time is allowed by the Fiscal Officer. Receipts for the purchase of gasoline for EMS, fire and/or police vehicles should be issued to the respective Chief of each department.
(2) Receipts should show the items or services purchased, date of purchase and the amount charged. Failure to submit receipts and appropriate documentation may result in the charges being deemed unsubstantiated or unauthorized purchases.
(3) In the event that an employee is unable to obtain a receipt after performing due care, or misplaces or loses a receipt, a written explanation must be completed and submitted to the Fiscal Officer for review. Such requests to waive the requirement for a receipt will be reviewed on a case-by-case basis and evaluated depending upon the item or services purchased.
(H) Returns.
(1) In the event that an item or service purchased with a village credit card must be returned or exchanged for any reason, the cardholder is responsible for facilitating the return/exchange and requesting a credit to the account. All documentation regarding the return shall be submitted to the Fiscal Officer for verification of the credit by the end of the next business day, unless more time is allowed by the Fiscal Officer.
(2) Cardholders may not receive cash back or in-store credits for any refunds or exchanges. Such amounts must be credited to the village credit card account. If a supplier mistakenly issues a refund check, the refund check must be immediately submitted to the Fiscal Officer.
(I) Credit card reissuance and cancellation. Reissuance of village credit cards to any authorized employee(s), other than an employee previously found to have violated this policy, shall recommence under the same procedures and requirements described in this policy. Failure to comply with this policy may result in the employee having his or her village credit card cancelled, and/or having all privileges and access related to village credit cards revoked. The Fiscal Officer shall be responsible for requesting and facilitating any necessary cancellation of a village credit card account and must notify Council of the same. Employees must surrender all village credit cards within their possession upon separation of employment from the village, or at any time when requested by the Fiscal Officer.
(J) Reporting lost or stolen credit cards. In the event that a cardholder suspects the loss, theft, damage to or unauthorized use of a village credit card, the cardholder shall immediately notify the Fiscal Officer. In turn, the Fiscal Officer shall immediately take the necessary steps to notify the issuing credit card agency, merchant or financial institution in order to cancel and replace the credit card. Council shall be notified as soon as practicable.
(K) Maximum credit limits. The credit limit on each credit card account held by the village shall be $2,000. Maximum credit limit amounts for village credit cards shall only be adjusted by the Fiscal Officer upon prior approval by Council.
(L) Misuse of credit cards.
(1) Any use of village credit cards for personal purchases is strictly prohibited and unauthorized. Such use may result in the employee losing all privileges to use village credit cards, reimbursement paid to the village, disciplinary action under applicable village policy, and criminal prosecution under R.C. § 2913.21.
(2) Cash advances on village credit cards are not allowed under any circumstances. Village credit cards are not transferable. Employees are not permitted to lend their village credit card to another employee or any other person to facilitate any transaction. Employees are not permitted to lend or share fuel card PINs with any other official, employee or individual.
(3) In addition, the following purchases on village credit cards are strictly prohibited:
(a) Alcoholic beverages or tobacco products;
(b) Gasoline for personal vehicles;
(c) Capital equipment and upgrades over $5,000;
(d) Controlled substances;
(e) Items or services on term contracts (excluding approved subscription services and unless otherwise authorized by the Fiscal Officer and Council);
(f) Maintenance agreements;
(g) Personal items or loans;
(h) Donations;
(i) Payments for any purchases linked to a PayPal® account or other online platforms and/or app-based services enabling users to pay, send money, and accept payments, including but not limited to Amazon Payments®, Google Wallet®, Intuit®, Payza®, Skrill®, Stripe®, Venmo® and/or WePay®;
(j) Rentals (other than short-term automobile rentals);
(k) Purchases on fuel cards for any item other than fuel/gasoline; and
(l) Any other items deemed inconsistent with village policy or the Ohio Revised Code.
(4) All actions or omissions by a village employee resulting in a failure to comply with any provision of this policy shall qualify as misuse of a village credit card account and will be subject to appropriate action.
(M) Reports by Fiscal Officer. The Fiscal Officer shall annually file a report with Council detailing all rewards received based on the use of the village credit card accounts. When requested, the Fiscal Officer shall present a credit card account transaction detail from the previous month to Council. Council shall review the credit card account transaction detail and the chairperson of Council shall sign an attestation stating Council reviewed the credit card account transaction detail.
(Ord. 909, passed 10-19-2020)