10-08-2002 Special Called Regular Meeting

Browse Search

• • Audit Committee Minutes -October 8, 2002 -Page 6 the usage of the card. They will attend the orientation, as well as reviewing the actual credit card policy procedure manual. The cardholder's signature verifying receipt of the orientation, and their signature verifying receipt of the credit card policy will be forwarded to their personnel file. Another signature will be required on the form for their personnel file, confirming understanding that the card is not for personal use. If back-up information for the card is not received on time, and a late fee charged, the cardholder will be responsible for that fee. If they do make a personal charge, and they do not have a receipt, they are responsible for the charge. The policy is written with very strict guidelines, attempting to cover all bases. However, if necessary and with the necessary approval, these could be relaxed. Committee Member James Warren questioned if the directive covers who issues the credit cards. Acting City Manager John Joems informed Mr. Warren that they used the recommendations as beginning points for developing a foundation. Mr. Warren asked if there are explicit directives for usage of the card. Mrs. Alexander stated that they need some clarification before they can go further with this policy. If it is to be used as a travel independent card, the policy will be written directed towards that. If it is to be used as a purchasing card, then we will need to incorporate all the purchasing policies and procedures into the credit card policy. What Finance needs to know is how you would like the card to be used, then they can go forward with the policy. However you determine the card's usage, everything will be included in the policy so there will be no questions of the usage. In addition, we will have a person on staff, the approval official, who will be responsible for answering questions regarding card usage. Mr. Joems commented, since the credit card program began in La Porte, there have been many advancements in the procurement card industry, and their use is more common. He feels the City needs to take advantage of this use for procurement. Many of the issues in La Porte, a smaller amount were for procurement and a larger amount were for travel and entertainment. A procurement card could be used with very strict conditions. There are many places that are issuing procurement cards to agencies. These are Mr. Joems' particular leanings at this time, without going deeper in to it. Mr. Warren commented on usage of procurement cards while he was in the military. If usage of procurement cards is permitted, and it does not fall within the normal purchasing procedures, you would still need to review the purchasing policy. If we have Purchasing, then by any means possible, this is what we need to use. In the event that we can't use Purchasing, there should be some type of avenue to show that this would not fall within the normal purchasing procedures. Purchasing should also be a part of this to, assure we do not circumvent the purchasing procedures, as an oversight. Basically if this cannot go through our normal purchasing procedures, purchasing should be certain that all is in order. Mrs. Alexander commented that the City has several methods in place to handle these purchases. She believes the City needs to go toward procurement card usage. At this point, we need to define the credit card policy, then deal with the procurement cards. Once we get procurement cards, this will phase out the credit cards. At this point, if we are going to use a City credit card, then we need to have the credit card policy, so there is absolutely no misunderstanding about it. It is going to be very difficult to muddle the two, because you will have all the purchasing policy procedures incorporated in this policy and there is concern that someone may not understand the way it is written, with the City ending up with a similar situation to what we just went through. This needs to be very clear.