10-08-2002 Special Called Regular Meeting

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Audit Committee Minutes -October 8, 2002 -Page 8 Mrs. Alexander assured Mr. Warren that upon resignation/termination of an employee with a credit card, their card will be returned to the City during their exit interview. The policy is being set-up so there is no room for error, with property control within the City. Committee Member Howard Ebow assumes that the Committee will speak with current cardholders to see if there is anything they may have missed. They are actually the ones with the cards, knowing the situations of times a purchase needs to be made or something of that nature. Mrs. Alexander feels there will be more of Mr. Joerns and Finance working together to clarify card usage, pending the Audit Committee's directive. She stressed that the policy will be reviewed with current credit card holders. When Mr. Joerns feels we have the fmal policy, the City will be very clear and very restrictive on use management, being connected with the other holders and looking at pass practices. We will also have to deal with the purchasing manual and practices related to that. We will start off with a more restrictive view, but clearly defined. If there is a need for emergency use of the card or an unforeseen condition, this will be defined. Councilmember Meismer asked that the Committee review the policy which does not allow somebody to create for themselves a loan, by the short term situation, where they use a credit card for some incidental purchase that was not a City expense. If the cardholder has the ability to purchase items as a non-tax environment, we need to confirm that their personal charges include their sales tax on that purchase, ensuring their purchase is "not" claimed tax exempt. The City has included this arena in the policy. For City purchases, the cardholder needs to use the tax exempt certificate. Finance attempted to include every subject they could think of, related to charge card usage, in the policy for the Committee's review. Committee Member Warren asked to review the recommendations on the Audit Report. Item 1 (the issuance of credit cards) -Mrs. Alexander explained the authority of issuing the American Express cards to designated employees would lie with the City Manager. The Audit Committee will determine which other City Officials will receive a credit card. Item 2 (governing credit card issuance and usage) -Mrs. Alexander feels there will be an issue with defining Item 2, a. (appropriate use of a credit card to purchase local meals for business purpose) -Finance will need some direction to include this in the policy, unless Mr. Joerns would give a directive. There was discussion on defining City business and more clarification on the cardholder's required explanation for their credit card charges. Mr. Warren questioned how much of the purchasing field is the credit card use. Mr. Joerns informed it is very little, possibly less than 1%. With the division of traveUentertainxnent and procurement, Mr. Joerns has the Purchasing Department reviewing usage of procurement cards and their availability. There is some usage of procurement cards within the City, less than 10 vendors. At the present time, these cards are used within the appropriate departments, i.e., Public Works, Parks and Recreation, etc. Item 3 (City manuals and policies) -the City, has manuals and policies which are being reviewed and revised to be consistent, with very clear, concise and strict guidelines which are to be followed. Item 4 (clear definition of expenditures not covered by auto allowance) -mileage will only be paid for when traveling outside of the City. Mr. Warren would like this to be clearly defined in the guidelines for all employees with a car allowance. Item 5 (clearly establish and document approved per diem rate) -Mrs. Alexander stated the per diem is clearly defined in the Travel Policy. The ordinance should be clarified if it is the same for City employees and Council. Nobody will be issued more than per diem rate. Adjustments are