Chapter 2.85
CREDIT CARD POLICY
Sections:
2.85.020 Background information.
2.85.040 Participants and responsibilities.
2.85.060 Reconciliation process.
2.85.010 Policy adopted.
The following policy shall govern the use of city credit cards to transact official city business that is otherwise budgeted or regulated by state law or the La Center Municipal Code. [Res. 2006-274, 2006.]
2.85.020 Background information.
The city of La Center’s policy has been established to provide a convenient, efficient means to purchase commodities from vendors and reduce costs associated with the purchasing process.
The program is designed to allow employees and city officials to purchase items needed for city business and is considered an enhancement to the purchasing process. The use of a city credit card is a privilege that has been granted to the employees and city officials. Certain responsibilities are associated with this privilege.
The finance director is responsible for the management of the program and to ensure that employees and city officials follow all state and city laws, rules, and policies relating to the credit card function. [Res. 2006-274 § I, 2006.]
2.85.030 Control.
(1) Employees shall sign a city credit card user agreement (see Attachment A) before the issuance or use of any city credit card.
(2) Each employee’s card will have a maximum that can be spent each month. This is determined by the department head. No single purchase may be made over $500.00 without the department head’s pre-approval.
ATTACHMENT A
CITY CREDIT CARD USER AGREEMENT
I, ____________, as an employee/City Official of the City of La Center, accept personal responsibility for the safeguard and proper use of City Credit Card # ___________, which has been assigned to me, in accordance with the terms outlined below.
I have read, understand and will comply with the City of La Center’s adopted Credit Card and Travel Policy.
I will not use the City Credit Card for any of the following purposes:
• Cash advances.
• Personal purchases.
• Any purpose not specifically authorized by the credit card or travel policy.
I will provide all necessary documentation to the Finance Department within the time specified:
• Credit card receipts no later than five (5) business days after the purchase date, or within two (2) business days of return from travel status.
• Delivery receipts no later than two (2) business days after the received date.
• Proof of Internet purchases with a copy of the purchase confirmation page from vendor’s website.
I understand that violation or misuse of the City Credit Card in accordance with this policy or the travel policy shall result in revocation of the card and/or other disciplinary action, including termination.
I understand that if interest or late fees are incurred as a result of my failure to submit necessary documentation in a timely manner that I will be personally responsible for payment of those fees, and costs of any such fees incurred as a result of my failure are hereby authorized to be withheld from my paycheck.
I understand that I will be personally liable for all unauthorized charges and other charges that are inconsistent with the City’s Credit Card and Travel Policy I incur to the City credit card. I hereby consent to the City deducting all such penalties/fees from my paycheck.
City Official/Employee Signature
______________________________
Date __________
Mayor Signature
______________________________
Date __________
[Res. 2006-274 § II, 2006.]
2.85.040 Participants and responsibilities.
(1) Cardholders are responsible for their city-issued credit cards.
(2) Cardholders must maintain their cards in a secure location. Each employee must know where their card is at all times to prevent misuse.
(3) Cardholders are responsible for reporting immediately any fraudulent use or misapplication of the card to the finance director so that appropriate steps can be taken when necessary.
(4) Cardholders are responsible for the delivery arrangements and receipt of the merchandise they have ordered and working with the vendor to correct any problems, exchanges or credits. Cash credits are not allowed; the employee must keep the credit receipt and original receipt for documentation.
(5) In the case of returns, cardholders are responsible for coordinating returns to the supplier.
(6) Cardholders are responsible for immediately reporting a lost or stolen credit card.
(7) Cardholders are responsible for ensuring that merchant documentation is complete for every transaction and for submitting to supervisor for approval.
(8) Accounts payable clerk will match merchant documentation to cardholder monthly statement.
(9) Cardholder’s supervisor is responsible for reviewing, approving and signing off on cardholder receipts, assuring that all purchases are made per department and city policies. [Res. 2006-274 § III, 2006.]
2.85.050 Ensure proper use.
(1) Uses.
(a) Travel. City credit cards may be used by city employees and officials when in travel status on official city business in accordance with the city’s travel policy.
(b) Purchases. City credit cards may be used by city employees for ordering supplies for city purposes.
(2) Restrictions.
(a) City credit cards shall not be used for cash advances or cash-type transactions (cash, cash in addition to purchase, cash in lieu of credit to account, traveler’s checks, money orders, gambling, ATM transaction, etc.).
(b) City credit cards shall not be used for personal purchases.
(c) City credit cards shall not be used by anyone other than the cardholder to make purchases. [Res. 2006-274 § IV, 2006.]
2.85.060 Reconciliation process.
Employees and city officials authorized to use city credit cards are responsible for providing all necessary documentation, required by the finance department to process payment, on a timely basis.
(1) Employees and city officials will submit city credit card receipts no later than five business days after the purchase date.
(2) Employees will submit delivery receipts no later than two business days after the date merchandise is received.
(3) Employees will document Internet purchases by printing out the purchase confirmation page from the vendor’s website.
(4) If interest or late fees are incurred as a result of an employee’s failure to submit necessary documentation in a timely manner, the employee will be responsible for payment of those card penalty fees, and payment shall be withheld from the employee’s pay. [Res. 2006-274 § V, 2006.]
2.85.070 Consequences.
Violation or misuse of the city credit card in accordance with this policy shall result in revocation of the card and/or other disciplinary action, including termination. Cardholders shall be personally responsible for any unauthorized expenditures and will be required to repay expenditures that are considered in violation of these policies. [Res. 2006-274 § VI, 2006.]