(a) Background. The City of Wickliffe has developed this policy to regulate the use of credit cards by City employees. A credit card issued to the City may also help minimize or eliminate the need for the use of personal funds reimbursed to employees by expense report. Other benefits may include an expanded list of merchants from whom purchases can be made, accelerated payment to the vendor, expedited delivery of goods, reduced paperwork, lower overall transaction processing costs per purchase, and the ability to set and control purchasing dollar limits.
(b) Authority. This policy which is subject to change and revision will among other things, set limits for spending, card activity and allowable expenditures. It establishes administrative controls that will be sufficient for prudent use of a City credit card. Finance Department internal accounting controls have been incorporated herein.
(c) General Information. A City credit is not intended to and will not be used to avoid or bypass the competitive bidding requirements of the City of Wickliffe, Charter, Article VII Section 7. Further a City credit card is not intended to avoid or bypass the appropriation of funds process, approval process or payment process and related internal controls. Rather, this policy complements the established and existing processes. Expenditures may not exceed budgeted appropriations under any circumstances.
Items and/or services purchased through the City credit card are only for the official use of the City. It is not and under no circumstances is to be used as an ATM (automated teller machine) card, a debit card, or for cash advances. The City credit card is not to be used for personal or non-City related purchases.
A “Cardholder” is a City employee who has been approved by the Mayor to pay for certain City-related expenses with a City credit card. The Cardholder is responsible for the security and physical custody of the card, and is accountable for all transactions made with the card. The Cardholder must maintain possession of the City credit card and provide access to an Authorized User to make a purchase. The Cardholder must comply with the record keeping requirements described in this policy (including retention of original receipts) for the protection of both the Cardholder and the City. The following individuals are considered Cardholders:
Director of Finance | Building Commissioner |
Police Chief | Recreation Director |
Fire Chief | Law Director |
Service Director | Economic Development Manager |
Assistant Service Director | Administrative Assistant - City Hall |
Admin. Assistant - Fire Dept. | Admin. Assistant - Police Dept. |
An “Authorized User” is a City employee other than the Cardholder who has actual, implied or apparent authority to use the City Credit card who may or may not have possession of the City credit card or account number and whose use results in a direct benefit for the City. IN NO CASE MAY A NON-CITY EMPLOYEE BE PERMITTED ACCESS TO OR MAKE A TRANSACTION WITH THE CITY CREDIT CARD.
The City credit card carries corporate (City), not individual liability; however, individual liability is imposed for inappropriate use.
The Cardholder’s personal credit history is not impacted in any way by the use of the City credit card and credit checks are not done on individual Cardholders. Billings for authorized purchases made within the limits of appropriated amounts will be paid using City funds.
(d) Polices and Procedures.
(1) Credit Card Issuer. The credit card issuer (Chase Bank) provides a City credit card issued with the City of Wickliffe and the Cardholder’s name embossed on the face of the credit card.
(2) Contact with Credit Card Issuer. This policy assigns the Director of Finance as the primary point of contact between the City and the credit card issuer. The Director of Finance will be responsible for selecting the credit card issuer; the ordering and distributing of cards and the certification of funds.
The Director of Finance will coordinate and troubleshoot problems encountered with card use or vendor authorization and follow up on lost or stolen cards.
Any changes or updates to a Cardholder’s name or spending limits may be initiated by the Director of Finance.
The Finance Department will be responsible for timely reconciliation of the billing statement. Cardholders, as well as other City employees, are responsible to report instances of fraudulent use of a card and/or where the City’s established procurement card policies and procedures are not being followed.
In addition, each Cardholder of a City credit card will be responsible for processing and resolving disputes with merchants; reviewing and reconciling card activity; and maintaining the Credit Card Purchasing Log.
(3) Credit and Transaction Limits. The credit limit of the City credit card is one hundred fifty thousand dollars ($150,000). (Amended Dec. 2022) There are no credit card transaction limits.
(4) Allowed and Prohibited Transaction. The Cardholder and/or Authorized User must obtain purchasing authority and certification of funds prior to any purchase. The City credit card may be appropriately used to purchase the following:
• Training materials (subscriptions, books, video tapes)
• Office supplies
• Computer supplies, software
• Building maintenance materials and supplies
• Authorized travel expenses (including meals and related taxes and gratuity)
• Fuel purchases (travel related or purchased for use in City vehicles)
[All travel-related expenses must be approved in advance through the submission of a travel request form.]
• Equipment purchases
• Accounts Payable (where applicable) (Amended Dec. 2022)
• Premiums (such as Ohio Bureau of Worker’s Compensation) (Amended Dec. 2022)
The City credit card may not be used to pay for the following:
• Cash Advances
• Any merchant, product, or service normally considered inappropriate by City standards
• State of Ohio Sales and/or use tax
• Payments for orders partially received
• Issuer-defined Illegal Transactions
• Issuer-defined Prohibited Transactions
• Alcoholic beverages, with the exception of alcoholic beverages purchased for resale at Green Ridge Golf Course
• Fuel for a personal vehicle
• Tobacco products
• Financial services including ATM/cash machine access
• Adult products and services
• Personal expenses
Automated teller machine (ATM), cash advances, and all other cash-related transactions are strictly prohibited. No late charges or finance charges shall be permitted as allowable expenses.
(5) Sales and Use Tax. Purchases made by the City are exempt from the State of Ohio (or other Ohio jurisdictions) sales tax, therefore those purchases made with the City credit card are tax-exempt.
The Cardholder or Authorized User must present a tax exemption certificate to the vendor and receive a credit for the unnecessary tax. Incurring State of Ohio sales and/or use tax is a prohibited use. The Cardholder and/or Authorized User will be subject to inappropriate use procedures where State of Ohio sales and/or use tax is charged inappropriately.
(6) Control of Account. The Director of Finance shall retain control of the credit card account and shall establish a system to sign out credit cards to Cardholders and Authorized Users. The Director of Finance and the Council of the City of Wickliffe shall at least quarterly review the number of cards and accounts issued, the cards' and accounts' expiration dates, and the cards' and accounts' credit limits. If applicable, the Director of Finance shall annually file a report with the Council of the City of Wickliffe detailing all rewards received based on the use of the credit card account. Any rebates earned through this account will be deposited into the General Fund. (Amended Dec. 2022)
(7) Cardholder Acknowledgment and Responsibilities. The Cardholder is responsible for the physical custody of the City credit card, and for maintaining confidentiality of all information relating to the City credit card, such as the account number and expiration date. Neither the City credit card nor the account number is not to be loaned to anyone or used by anyone except the Cardholder or Authorized User.
A Cardholder is responsible for any and all improper, fraudulent, or inappropriate use of the card. Use of a City credit card for any use other than an authorized or permitted use is a violation of law for purposes of Ohio Revised Code 2913.21 .
The Cardholder must acknowledge receipt of the City credit card to assure that the Cardholder understands the intent of the program and agrees to adhere to the policy and guidelines established herein. The Cardholder will be required to sign a written acknowledgment of receipt of the card and understanding of the applicable policies. The Director of Finance will retain the signed acknowledgment.
(8) Making Purchases; Record-keeping.
A. Purchase Orders. To ensure that expenditures do not exceed available appropriations, an encumbrance must be established for each City credit card purchase through a purchase order. The purchase order amount should be set based on the monetary and transaction limits established for the City credit card and projected spending.
B. Original Receipts. When making a purchase, the Cardholder must obtain and retain the original receipt. Every effort should be made to ensure that the receipt contains the vendor's name, date of purchase, itemized description of purchase, per unit price and extended price. A Cardholder will be held personally liable for missing receipts and may be required to reimburse the City for those billed purchases for which a receipt is not or cannot be produced.
C. Internet, Telephone and Fax Purchases. The City credit cards may be used to purchase goods over the internet, telephone, or fax. These purchases must be evidenced by a purchase order, written order confirmation along with either the original packing slip that accompanied the purchased goods or an itemized receipt.
When using the internet, the Cardholder or Authorized User must make sure the web site where the City credit card information is being placed is secure, and that all account numbers are encrypted while being passed electronically. A Cardholder can determine if the web site address is secure in two ways:
1. An Internet web site is secure when the address changes from http://www to https://www. The "s" stands for secure.
2. A symbol resembling a " lock" will appear at the bottom of the browser. The "lock" symbol signifies that the web site is secure and that all card numbers will be encrypted when passed.
Cardholders will be held responsible for all orders placed, even those with vendors that turn out not to be legitimate businesses.
The Cardholder should inform the vendor that the purchase will be paid through the City Credit card, and that the purchase is tax exempt. The Cardholder should also ensure the vendor will comply with the requirements of items C (above), and E and F (below).
D. Declined Attempts. The City credit card will be declined if one of the embedded limits described above is exceeded, if the card issuer has a security concern because of a spending pattern, or, sometimes if the "bill to" address does not match the "ship to" address. The Cardholder will notify the Director of Finance if a purchase is denied.
E. Agent, Acceptance or Service Fees. Some vendors charge an agent, acceptance or service fee in order to process a credit card charge. If the fee is disclosed prior to the transaction, the allowable dollar limit on the fee is five percent of the total bill, not to exceed twenty-five dollars ($25.00). If the fee is not disclosed up-front, the Cardholder or Authorized User must dispute the fee immediately, regardless of the fee amount. If the purchase is being made on State of Ohio state term contract (through the Ohio Cooperative Purchasing Program), the vendor is prohibited from charging additional fees for use of a credit card. The Safety Director and the Director of Finance should be notified immediately of this breach of contract.
F. Credit Card Purchasing Log. Each Cardholder must maintain a Credit Card Purchasing Log for each billing period during which a transaction is made. Maintenance of the Log is a means to monitor activity within the prescribed limits; a separate line is required for each purchase. The original receipt for each purchase must be attached to the log to expedite reconciliation with the billing statement. The Purchase Log and attached receipts and completed purchase orders must be turned in to the Finance Department monthly within the credit card billing cycle. The billing date of the City credit card is the 12th day of each month. The Safety Director or Director of Finance will review and sign the purchasing log prepared by each Cardholder monthly. Cardholders may not review and authorize their own purchases.
G. Monitoring Card Activity. Certain City employees, such as the Mayor, Safety Director, and the Director of Finance will have access to review and monitor card activity. This review can occur at any time.
(9) Account Reconciliation and Payment of Procurement Card Billing. The Cardholder is responsible for reviewing and approving the Credit Card Purchasing Log for the appropriateness of purchases. The approval must be evidenced by the Cardholder's signature. Once approved for payment, the Cardholder must submit the original purchasing log and supporting receipts to the Safety Director or Director of Finance for signature.
Each Cardholder must turn in to the Finance Department the Purchasing Log and detailed receipts within the credit card billing cycle. The billing date of the City credit card is the 12th day of each month. The Director of Finance will reconcile the Purchasing Log to the detailed receipts and the monthly billing statements from the issuer for accuracy and authorization. Payment will not be made until the Cardholder confirms receipt of the goods or services. Timely collection of purchase receipts and completion of the Purchasing Log is imperative to avoid interest charges.
There may be occasions when an item on the billing statement does not match the purchasing log entry and/or retained receipt. For instance, the amount may be incorrect. Under such circumstances the Cardholder must immediately investigate the inaccuracy to attempt reconciliation.
(10) Returns, Credits and Dispute Resolution. Sometimes, there is a problem with a purchased item or service. Examples include, but are not limited to: damaged merchandise, the billed amount does not match the quote, the billed amount includes sales tax, the statement contains a charge not recognized by the Cardholder, or the statement contains duplicate charges from a vendor. In these instances, the Cardholder must attempt try to resolve the dispute with the supplier or merchant. If the purchased item needs to be returned to the supplier for any reason, the Cardholder must secure and document a credit given to the City credit card account. The Director of Finance should be notified so they may verify that the credit appears on a subsequent statement. The Cardholder cannot accept cash or a rain check instead of a vendor credit to the City credit card.
If the dispute can not be resolved, the Cardholder should execute the purchase dispute procedures set forth by the City credit card issuer and notify the office of the Director of Finance so it may monitor the account statement.
(11) Late Fees or Finance Charges. No late fees or finance charges will be paid by the City.
(12) Lost or Stolen Cards. If the card is lost or stolen, the Cardholder must notify the card issuer and Director of Finance immediately. Upon receipt of the phone call, further use of the card will be blocked. Prompt action will reduce the liability for fraudulent charges. The Cardholder must confirm the phone call by written notification to the card issuer via mail or fax, (as may be required by the issuer's procedures) with copies to the Director of Finance. The Credit Card Purchasing Log should be used to document the date and time of the phone report of the lost or stolen card should be included in the written notification. The Director of Finance will initiate issuance of a replacement card.
(13) Suspension or Cancellation of Card. When and if necessary, the Mayor, Safety Director, Director of Finance or Cardholder will initiate suspension or cancellation of the card, and will notify the Director of Finance that such action has been taken. Cardholders who terminate their employment or whose job duties change and no longer include purchasing must surrender the card immediately. The Director of Finance will destroy canceled cards. Cardholders on extended leave or reassignment may have their card suspended. Any use of the card for personal purchases or for purchases made in violation of City policy will result in immediate card cancellation and possible disciplinary action. See below Penalties for Improper Use of Card.
(14) Penalties for Improper Use of Card. If it appears the Cardholder (or Authorized User) has used the City credit card beyond the appropriated or authorized amount or for an inappropriate or unlawful purpose, the Cardholder must immediately notify the Director of Finance. When the Mayor determines that the City should be reimbursed for City credit card expenditures beyond the appropriated or authorized amount as provided in this policy, the Director of Finance shall give written notice of the amount to be reimbursed by the Cardholder. If within thirty (30) days after issuance of this written notice, the City is not reimbursed for the full amount shown on the written notice, the Director of Finance will file a police report to initiate the appropriate investigation to recover that amount from the Cardholder.
The City credit card is to be used only by the Cardholder or Authorized User to pay for authorized, City related expenses. The Cardholder may not allow the City credit card to be in the possession of someone other than a City employee. The card may not be used to pay for personal transactions. Improper use of the card can be considered misappropriation of City funds. Misappropriation of City funds may result in disciplinary action up to and including termination of employment. Improper use of the City credit card can result in revoking the card. In addition, the Cardholder is personally liable for payment of improper purchases, and subject to criminal prosecution.
(Ord. 2019-12. Passed 1-28-19; 2020-56. Passed 11-9-20; Ord. 2022-65. Passed 12-12-22.)