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HomeMy WebLinkAboutO-2002-2578 . . ORDINANCE NO. 2002-~:J'1<l AN ORDINANCE ADOPT:ING A GENERAL CREDIT CARD POLICY AND DIRECTING THE CITY MANAGER TO ESTABLISH DETAILED POLICIES AND PROCEDURES, FINDING COMPLIANCE WITH THE OPEN IlEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. PURPOSE. The City Council of the City of La Porte adopts this Ordinance to establish policies and procedures for the use of credit cards issued to City of La Porte officers and employees. Section 2. GENERAL POLICY. City credit cards are to be used by city officers and employees solely in connection with the performance of their public duties. City credit cards shall not be used for purchases of goods and equipment required to be purchased through the City Purchasing Department. Credit cardholders are responsible for all charges made on their credit card. Only the credit cardholder or a City staff member duly authorized in writing, may sign the credit card receipt. Cardholders are responsible for ensuring cards are secured at all times. Cardholders are responsible for any fraudulent use or misapplication of the card. Section 3. POLICIES, PROCEDURES AND RECORD KEEPING. The City Manager is hereby directed to prepare detailed policies and procedures related to the administration, use and record keeping responsibilities. These policies shall be submitted to the City Council's Audit Committee for approval, and for annual review thereafter, or when changes are proposed. . e Section 4. RESTRICTIONS AND EXEMPTIONS. Cardholders may not use a City credit card for the following: 1. Cash refunds or advances. 2 . Any purchase of goods or services from a merchant type not considered prudent or of good judgment. 3. Any transaction amount greater than the cardholder's transaction limit. 4. Alcohol or liquor of any kind. Patronization of bars, drinking places and package liquor stores shall not be paid for with the credit card. S. Separate, sequential, and component purchases, or transactions made with intent to circumvent City purchasing policy. 6. Any other purchase specifically excluded in the City purchasing policy. Section s. SUMMARY. As a public entity, the city is expected to be able to demonstrate to the public that it has spent their tax dollars wisely. All City credit card holders are responsible for insuring purchases made with their credit card will withstand the scrutiny of the press, public and internal audits. Therefore, the cardholder must make sure he or she has adequate documentation, including a clear explanation of the City purpose of each purchase or transaction. All cardholders are responsible for reviewing and understanding the credit card Policy 2 . e and Procedures, and the Purchasing and Travel Policies of the city, appropriate to their position. section 6. OPEN MEETINGS LAW. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and sUbject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 7. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this qJI- day of D.ecemt1t{ I , 2002. By: ~ LA PORTE , ~;;ij;;~ Norman L. Malone Mayor ATTEST: ~ tlj(.fI/IL ar.ha A. Gillett City Secretary ~ A~~ .~ Knox W. Askins City Attorney 3 . e City of La Porte Interoffice Memorandum To: Mayor and Council From: John E. Joerns, Acting City Date: November 27, 2002 Subject: Draft Credit Card Policy Attached for your review is the Final Draft of the Credit Card Policy and Procedure Manual. It was reviewed and approved by the Audit Committee on November 21st. They had no substantial changes a nd requested that we forward it toe ach 0 f you for your consideration. Following your review, it will be placed on the next City Council Meeting Agenda as a Workshop item, followed by an ordinance adopting a credit card policy with reference to the Procedure Manual. Should you have any.questions, comments, and/or need additional information, please feel free to contact Cynthia at ext, 265, or myself at ext. 222. Thank you for your continued support and consideration. Adopted December 9, 2002 . City of La Porte, Texas CREDIT CARD POLICY AND PROCEDURE MANUAL e e CITY OF LA PORTE e CREDIT CARD POLICIES AND PROCEDURES I. DEFINITIONS City of La Porte Credit Card - A Visa, MasterCard, or other credit card that has the same properties as the aforementioned cards that has been appropriately obtained through the City's current Depository. The CLP Credit Card can be used only as established and designated by this policy. Bank Card Vendor - The issuing bank of the Credit card IS the City's current Depository or its designee, Program Administrator - Coordinates and administers all aspects of the credit card Program for the City. The Program Administrator is responsible for setting up new accounts and handling requests. The Program Administrator is the contact point on administrative issues with the City's depository and/or Credit Card Vendor regarding the City's Credit Card Program. The Program Administrator is the Director of Finance or his designee, Accounting Division - Responsible for review and timely payment of invoices. Approving Official - Individual who is responsible for the review and approval of Credit Card Statements. A minimum of two Approving Officials is required, one being the Director of Finance or his designee. The second Approving Official is the Department Director or his designee, The Finance Departments Approving Official will be responsible for auditing the City of La Porte Statement of Accounts for all cardholders, and preparing a Quarterly Report to the Audit Committee, Department Representative - Individual who receives the monthly Statement of Account for the credit card and is generally not the cardholder. It is the responsibility of the Department Representative to reconcile the statement to all receipts received from the cardholder, to insure that all receipts and charge slips are attached and that the charges are properly documented. The Department representative is responsible for ensuring that the Departments Approving Official receives and approves the Check Requisition in a timely manner, and that it is forwarded to Accounts Payable within 7 days from receipt for processing, The Department Representative is appointed by the Department Director and is generally a Secretary or Administrative Assistant. Cardholder - Any Individual who has received, and is responsible for, a City of La Porte credit card, Eligible cardholders are limited to Executive Level employees and elected officials as designated by City Council. I Authorizing OffiC.- Individual who is responsible for th_quest and authorization of a City Credit Card, and the determination of the cardholders credit limit. In most cases, the Authorizing Official will be the City Manager. When the card requested is for the City Manager, the Authorizing Official will be the Mayor, and approval by the City's Audit Committee is required. II. DUTIES, RESPONSIBILITIES & AUTHORITY A. Program Administration Administrator. The Program Administrator coordinates the City of La Porte Credit Card Program, Program Administrator serves as the contact point with the City's Depository Bank regarding any changes to Cardholder accounts. Administrator may recommend adjustments of individual Cardholder limits and may also recommend the suspension of the purchasing authority of any Cardholder based on abuse. Training. The Program Administrator is responsible for ensuring all cardholders are properly trained in the use of the credit card and that they have received and signed a copy of the Credit Card Policy, Any questions regarding appropriate use of the Credit Cards should be directed to the Program Administrator. Activity Review, The Program Administrator will regularly review all activity on City credit cards. Program Administrator has the authority to request information regarding any transaction or attempted transaction on a City credit card. B. Approving Officials: The Departmental Approving Official is charged with monitoring all aspects of individual credit cards for which they are responsible, and for ensuring that all transactions are properly documented. The Finance Department's Approving Official reviews all charges for propriety and approves all cardholder statements. Either Approving Official shall have the authority to recommend 1) changes to or 2) removal of a credit card, and is also an information source for all cardholders, This Official is responsible for ensuring that cardholder statements are re-routed to Accounts Payable in a timely manner. The Finance Departments Approving Official will be responsible for auditing the City of La Porte Statement of Accounts for all cardholders, and preparing a Quarterly Report to the Audit Committee, 2 C. Credit Cardh.er: e Charges. Cardholders are responsible for a II charges made 0 n their credit card, Only the credit cardholder may sign the credit card receipt. Credit Cards may not be loaned to other individuals for use, but may be used to reserve hotel rooms, rental cars, etc, for subordinate staff when required, Maintain cards in secured location. Cardholders are responsible for ensuring cards are secured at all times. Lost or Stolen Credit cards. Cardholders are responsible for immediately notifying the Program Administrator and their Approving Official if a card is lost or stolen, Fraudulent use or Misapplication of the card, Cardholders are responsible for immediately reporting any fraudulent use or misapplication of the credit card to the Program Administrator and their Department Approving Official. Charge dispute resolution. Cardholders are responsible for investigating and resolving any disputes and following the disputed charges procedures. Questionable Charges. Cardholders are responsible for ALL Charges made on their credit card. Questionable charges may be identified by either Approving Official and referred to the Program Administrator for resolution. Receipts/Charge Slips. Cardholders are responsible for ensuring that all receipts and charge slips are on the slip itself or form and retained in a secure location until matched with the statement. Changes in Employment Status. A cardholder is responsible for notifying their Department Approving Official and the Program Administrator regarding changes in their employment status (promotion, transfer, resignation, termination), If a cardholder's status with the City changes in such a manner that he/she is no longer an employee of the City, their credit card shall be turned in to the Department with notice of resignation. Cardholders are accountable and responsible for: -their Credit card, -following the established travel and entertainment procedures, -adherence to limits set for their card. D. Department Credit card Representative Cardholder Statements. The Department Representative will receive the monthly statement of account for their credit cards directly from the Bank Card Vendor. The Representative must reconcile the statement, attach receipts and charge s lips and forward to their Approving Official in a timely manner. The Department Representative is also responsible for ensuring that cardholder statements are forwarded to Accounts Payable in a timely manner. 3 E. Finance DepAent e Activity Review, The Finance Department can review all charges made on City Credit cards. Finance has the authority to investigate and request information regarding any purchases made on a City credit card, Cardholder Statements. The Cardholder or Department Representative receives all cardholder statements, reconciles for accuracy, and prepares a Check Requisition. All appropriate documentation is attached, and the packet is forwarded to Accounts Payable for processing, After receipt of an approved Check Requisition, Accounts Payable will route through the Finance Approving Official, process for payment, and remit to the appropriate Vendor. III. POLICIES A. Personal Use: The credit card is to be used for City business only, B. Travel Policy and Limits: All City travel policies and procedures shall be followed when using the credit card system, The total amount of credit card charges shall not exceed credit limits established for each Cardholder. The Authorizing Official will establish credit limits, C. Documentation: The signed credit card charge slip, a cash register receipt, or invoice is required for each charge. If the credit card is used for travel, copies of receipts related to particular trips will need to be attached to the Travel Expense Report for the respective trip. The Documentation of Credit Card Expenditure Form (DCCE) must be used, but can be utilized for multiple charges. D. Restrictions: Credit Cards SHALL NOT be used for (1) Personal Items and/or expenses not related to the City; (2) Purchases of goods and/or services; (3) Contract Items; (4) Capital Items; (5) Alcoholic Beverages; and/or (6) any other non-business related expense. E. Credit Card Retrieval. In the event a cardholder changes employment status (resignation, termination, promotion, transfer, etc.) with the City, cards should ultimately be returned to the Program Administrator (Director of Finance). "Credit Card" should be included on the Human Resources Checklist of items returned to them. In the event of a resignation, it will be Human Resources responsibility to cut the card in half (in the presence of the employee), and return the card to the Program Administrator, If it is a termination, the card should be cut up in the presence of the employee by the highest-ranking City Official involved in the termination meeting; who will then advise Human Resources that it has been retrieved, and forward it to the Program Administrator. F. Fraudulent use or Misapplication of the Credit Card. In the event a Cardholder has used the card fraudulently, either Approving Official shall immediately report the misuse to the Program Administrator and retrieve card. 4 e . IV. PROCEDURES A. Obtaining a Credit card Prospective Cardholder, All City Credit Card Requests require the approval of the Authorizing Official and the City's Audit Committee. The Credit Card Request and Authorization Form (CCRA) should be completed and submitted to the Authorizing Official (City Manager) for Approval and forwarding to the City's Audit Committee, After their review and approval, the form remains with the Program Administrator who is responsible for securing/obtaining/issuing the Credit Card, When the card is received, the cardholder must sign off on the CCRA Form and the Credit Card Policy, which is then forwarded to Human Resources for placement in the employee's Personnel File, No cardholder will receive the credit card until the credit card policy has been reviewed and signed. Authorizing Official. The Authorizing Official determines the amount of the cardholders credit limit and must verify, sign and forward the form to the Program Administrator for forwarding to the City's Audit Committee. After their review and approval, the form remains with the Program Administrator who is responsible for securing/obtaining/issuing the Credit Card, When the card is received, the cardholder must sign off on the CCRA Form and the Credit Card Policy, which is then forwarded to Human Resources for placement in the employee's Personnel File, No cardholder will receive the credit card until the credit card policy has been reviewed and signed. Program Administrator, After these forms are complete and approved, the Program Administrator will then forward the information to the Depository Bank for card processing, Receipt of Credit card. The Program Administrator will contact the Cardholder when their credit card arrives. The Cardholder will then have to make arrangements to come to the Program Administrator's office to sign the appropriate forms, receive orientation of and sign for receipt of a credit card policy manual, and pick up their credit card, B. Using the Card 1, Verify the charges and sign the charge slip, 2. You should receive a copy 0 f t he charge s lip, and possibly a cash register receipt. Keep them in a secure place because they will be needed as backup and documentation of your transaction. 3. In order to comply with all policies and procedures, the following information needs to be noted: . Explanations 0 f any purchases that m ay be perceived as being out of the ordinary, Cardholder may be contacted by Finance if they feel explanation is necessary. 5 e e . Any receipts for food items purchased at a restaurant or grocery store require a brief summary of the business purpose, name of business relationship and a list of those people in attendance. This includes all meal expenses not listed on a travel expense report that are related to training. This information should be recorded on the Documentation of Credit Card Expenditure (DCCE) Form, 4. General guidelines for use of credit cards for business meal purposes are: (1) Participants involving a City official(s) and an outside party, i.e. professional consultant, vendor, official form another city or professional association. Other attending city officials shall be of management level. ( 2) Participants involving the City Manager, a department head and/or other city officials and/or Mayor or City Councilperson, (3) Participants involving an established employee recognition program (i.e, employee of the quarter, manager of the year). 5. In the event of an emergency and the card has to be used to make a purchase, the cardholder should determine purchase needs and present their credit card to the vendor. Indicate to the vendor that this is a tax-exempt City purchase, Under these circumstances, the cardholder is responsible for coordinating returns with the vendor and ensuring that proper credit is made on their Credit card account. No cash refunds are allowed. C. Record-Keeping The Cardholder is responsible for retaining all charge slips and receipts or submitting them to their Credit Card Department Representative, Receipts need to be attached to the appropriate statement before submitting to Department Approving Official. If the charge is not recorded on the first statement after a purchase is made, retain the slips for the next statement. T he vendor should be contacted to secure a copy of a missing receipt. 6 If a receipt is .tted from the statement and either A_ing Official has not been alerted of the missing receipt, the cardholder will be notified, If the receipt is not received within 10 days, the Authorizing Official (City Manager) will be notified and the incident will be noted in the Quarterly Report to the Audit Committee, The cardholder also may be required to turn in their card for a 60-day probationary period. In order to retrieve the card after the probationary period, they will be required to receive credit card procedure training again. This is only after approval has been received from the Authorizing Official (City Manager) and/or Audit Committee to reissue the card. If any further violations occur, the card may be permanently cancelled. D. Cardholder Statement of Account and Payment Procedures The monthly Statements 0 fA ccount for all City credit cards will be received by Department Representative. Credit Card Statements are to be forwarded to Accounts Payable in a timely manner (within 7 days of receipt), signed and with all appropriate documentation, A notification will be sent to the cardholder and the Authorizing Official i" f a Check Requisition is not received by Accounts Payable within 10 days of receipt by the Department. If the statement is not received in Accounts Payable within 10 days of receipt the Authorizing Official will be notified, Repeated offenses may result in the cardholder being required to turn in their card for a 60-day period. In order to retrieve the card after the probationary period, they will be required to receive credit card training again, This is only after approval has been received from the Authorizing Official to reissue the card. If any further violations occur, the card may be permanently cancelled. Cardholder. Each Cardholder is responsible for maintaining receipts and reconciling statement when received or forwarding receipts to their Credit Card Department Representative. If credit card is used for travel, receipts will need to be duplicated and attached to Travel Expense Report and processed according to the Travel Policy. A minimum of two signatures is required on every statement. Be sure to attach only receipts for purchases listed on that particular statement. Credit Card Department Representative, When the Department Representative receives their statements, they will audit them by comparing all receipts to the itemized purchases listed on the statement. Clearly mark any disputed charges or lost receipts on your statement, and follow the procedures for disputed charges or for replacing lost receipt. In the absence of the Department Approving Official or designee, the Department Representative may sign statement as second required signature (see Signatures section). 7 Approving O.ials, Review all cardholder statemeAor propriety of purchases, proper general ledger account coding, cardholder signature, and attachment of all receipts and charge slips, Note any changes on the cardholder statement and sign each DCCE acknowledging approval of the transactions. If you discover an unauthorized purchase, you must contact the Program Administrator immediately. It is the Department Approving Official's responsibility to ensure that all Cardholder Statements comply with the procedures and policies and are turned in to Finance in a timely manner (within 7 days of receipt). Signatures. All Check Requisitions for credit card payments require a minimum of two signatures (e,g. cardholder and approving official or cardholder and credit card department representative), The Check Requisition will be returned to the department if appropriate signatures are not included, and processing/payment will be further delayed, The following steps will be taken if t he properly authorized check requisition is not received in a reasonable amount of time (within 7 days of receipt): the Department Approving Official and the Authorizing Official will be notified, T he cardholder m ay a Iso be required tot urn in their card for a 60-day period, In order to retrieve the card after the probationary period, they will be required to receive credit card training again, This is only after approval has been received from the City Manager to reissue the card. If any further violations occur, the card may be permanently cancelled, Finance Department. The Accounts Payable Section will review and process the City of La Porte's Statements for all Cardholders, Finance will audit all Cardholders' Statements for receipts, charge slips, proper general ledger account coding and proper signatures. Statements and receipts will be kept on file behind the Check as a part of the Accounts Payable packet. F. Disputed Charges A charge is considered disputable if one ofthe following conditions exist: a, A transaction appears on the statement that you did not authorize, b. There is a difference between the amount authorized and the amount billed, c. A transaction on the statement was billed on a previous statement. d. The transaction is authorized but you are disputing the transaction. e. A credit voucher for the transaction has been received but the account has not been credited. f, Account has been charged but the services have not been received, g. Account has been charged but the services have been cancelled. If after the cardholder audits the statement he/she determines some charges are disputable, he/she will immediately investigate these charges to determine if any abuse has occurred or if the charges are valid. Anyone suspecting fraudulent use or misapplication of the card should report this immediately to the Program Administrator for investigation and appropriate action. 8 Disputed chles Procedures: e 1. Clearly mark any questionable charges on the Cardholders Statement of Account. 2. The Cardholder should then attempt to resolve the dispute directly with the credit card vendor, 3, The Program Administrator should be contacted if the Cardholder or Credit Card Department Representative is unable to resolve the dispute. 4. After the dispute has been resolved, the Cardholder should verify that the appropriate charges have been removed and credited (or charged) to their credit card account. G. Questionable Charges. Cardholders are responsible for ALL Charges made on their credit card, Questionable charges will be identified by either Approving 0 fficial and referred to the Program Administrator for resolution, If necessary, the Program Administrator will review with the City Manager to determine propriety and receive approval. Questionable Charges not agreed upon by the Program Administrator and City Manager will be identified and noted as such on the Quarterly Report to the Audit Committee for fmal resolution, H. Lost or Stolen Cards The City is financially liable for a credit card in the event it is lost or stolen and is subsequently used. However, once you have notified the Bank Card Vendor that your card is lost or stolen, the City is no longer liable for any purchases made with the card. Lost or Stolen Card Procedures: In the event your card is lost or stolen, the Cardholder must IMMEDIATELY: 1. Call the Bank Card Vendor's Customer Service Line (Southwest Bank of Texas), where representatives are available 24 hours a day, Lost or stolen cards will be replaced by the Bank Card Vendor, Customer Service 1-800-558-3424 Tell the representative the call is regarding a City of La Porte credit card. Always obtain the name of the Bank Card Vendor representative to whom you reported the lost or stolen card. 2, Notify your Department Approving Official that your credit card has been stolen or lost. 3. Call the Program Administrator, Program Administrator will submit proper forms to ensure lost or stolen credit card is cancelled and new card is ordered. 9 It e H. Credit card Account Changes If changes are necessary to an existing credit card account, a Credit card Account Change form should be completed, the appropriate approvals obtained and a copy forwarded to the Program Administrator, The Program Administrator will contact the Cardholder if any additional information is needed. I. Closing a Credit card Account In the event t hat a n account must be closed, the Department Approving Official should notify the Program Administrator and Authorizing Official, and assist the Cardholder with the closing procedures detailed below. If the account must be closed immediately, e-mail the Program Administrator so they can verbally close the account with the Bank Card Vendor and then follow the procedures described below. Account Closing Procedures: 1. The Cardholder and the Approving Official must jointly complete the Credit Card Account Change form. 2. Cut the credit card in half and send it with the above form to. the Program Administrator, 10 . APPENDICES It I. Finance Form CCRA e Credit Card Request and Authorization Sample Completed Form CCRA Documentation of Credit Card Expenditures Sample Completed Form DCCE Credit Card Account Change Sample Completed Form CCAC FLOWCHART OF CREDIT CARD PROCESS IT, Finance Form DCCE ill, Finance Form CCAC 11 SAAE COMPLETED FORM ~RA City of La Porte, Texas CREDIT CARD REQUEST AND AUTHORIZATION Employee/Official Name: John Edward Doe Position/Title: Director of Public Information Authorized Limit: $2,500.00 Date of Request: November 1,2002 Cardholder Acknowledgement I hereby acknowledge receipt of the City of La Porte written Credit Card Policy, and certify that it has been reviewed with me. I understand that by accepting this card, I am aware that it is to be used ONLY for the purposes of official business for the City of La Porte and I accept full responsibility for its safekeeping, I further agree to abide by the City of La Porte Credit Card Policy and Procedures Manual, and understand that I may be personally liable for any unauthorized charges made by me and agree that any such charges may be deducted from my paycheck. Prospective CardllOlder Date Authorizing Officer (City Manager) Audit Committee Approval Department Approving Official Program Administrator Approval Date Request Processed Date Card Issued Finance FonnCCRA 11/01/02 12 Please tape Receipt Here SAAE COMPLETED FORM ~CE Documentation of Credit Card Expenditure WHAT WHEN WHERE WHO Name ofPerson(s) Present Amount and Explanation of Expenditure Date and Time Name of Vendor WHY Purpose of Expenditure Additional Information Note any specific details or explanation to further explain/justify expenditure. Be sure to attach documentation as necessitated. AO FAO Please tape Receipt Here Documentation of Credit Card Expenditure WHO WHAT WHEN WHERE WHY John Doe, Jerry Whoman Lunch $18.95 November 15,2002 1:30 p.m. Antonio's Pizza - La Porte Staff Appreciation Additional Information See attached Memo from Fire Department regarding staff heroic effort AO_ FA 0_ Finance FonnDCCE 13 AO = Approving Official F AO = Finance Approving Official SA~E COMPLETED FORM .AC City of La Porte, Texas CREDIT CARD ACCOUNT CHANGE Employee/Official Name: Position/Title: Authorized Limit: Date of Request: INDICATE TYPE OF CHANGE: NAME CHANGE FROM: TO: AUTHORIZED LIMIT FROM: TO: Authorizing Officer (City Manager) Department Approving Official Program Admillistrator Acknowledgemellt Finance Fonn CCRA 11/01102 14 Date Request Processed Date Card Issued e e City of La Porte, Texas CREDIT CARD REQUEST AND AUTHORIZATION Employee/Official Name: PositionlTitle: Authorized Limit: Date of Request: Cardholder Acknowledgement I hereby acknowledge receipt of the City of La Porte written Credit Card Policy, and certify that it has been reviewed with me, I understand that by accepting this card, I am aware that it is to be used ONLY for the purposes of official business for the City of La Porte and I accept full responsibility for its safekeeping, I further agree to abide by the City of La Porte Credit Card Policy and Procedures Manual, and understand that I may be personally liable for any unauthorized charges made by me and agree that any such charges may be deducted from my paycheck, Prospective Card/wider Date Authorizing Officer (City Manager) Department Approving Official Audit Committee Approval Program Administrator Approval Date Request Processed Date Card Issued Finance FonnCCRA 11101102 Please tape Receipt Here e e Documentation of Credit Card Expenditure WHO WHAT WHEN WHERE WHY Additional Information AO FAO Please tape Receipt Here Documentation of Credit Card Expenditure WHO WHAT WHEN WHERE WHY Additional Information AO_ FA 0_ Finance Fonn DCC!!: AO = Approving Omcial FAO = Finance Approving Omcid e e City of La Porte, Texas CREDIT CARD ACCOUNT CHANGE Employee/Official Name: Position/Title: Authorized Limit: Date of Request: INDICATE TYPE OF CHANGE: NAME CHANGE FROM. TO: AUTHORIZED LIMIT FROM: TO: Authorizing Officer (City Manager) Department Approving Official Finance FonnCCRA 11/01/02 Program Administrator Ackllowledgemellt Date Request Processed Date Card Issued - . '-rA f61-e I ORDINANCE NO. 2002-;}51 $? AN ORDINANCE ADOPTING CREDIT CARD POLICIES AND PROCEDURES; FlNDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: ,Section 1. PURPOSE. The City Council of the City of La Porte adopts this Ordinance to establish policies and procedures for the use of present and future Visa, American Express, and other bank credit cards issued to City of La Porte officers and employees. Section 2. GENERAL POLICY. The City Manager is responsible for designating the number of cards, dollar limitations, and determination of who is eligible to be issued a credit card. City credit cards are to be used by city officers and employees solely in connection with the performance of their public duties, Credit cards are to be used for City authorized and budgeted travel, lodging, and meals. Credit cards may be used for purchase of meals while traveling, and also for purchase of meals by a city official for the cardholder and business guests of the cardholder when conducting .City business, City credit cards shall not be used for purchases of goods and equipment required to be purchased through the City Purchasing Department. Credit cardholders are responsible for all charges made on their credit card. Only the credit cardholder or a City staff member duly authorized in writing, may sign the credit card receipt. Cardholders are responsible. for ensuring cards are secured at an times. Cardholders are responsible for immediately notifying the City Manager and the Bank if a card is lost or stolen. Cardholders are responsible for any fraudulent use or misapplication of the card. Section 3. RECORD KEEPING, Credit card users shall make a contemporaneous written record on the credit card receipt of the City business purpose of each transaction. fu the case of meals, the names of participants in addition to the card user shall be noted, as well as a general description of City business discussed. Card users shall file their receipts with the City Finance Department monthly. All transactions require a detailed bill, including a signed credit charge slip Revised: August 12, 2002 ,- e e and a cash register receipt. If a receipt is omitted, the Department Director or immediate supervisor will be notified, If a receipt is not received after notification, the cardholder will be required to turn in their card for a 60-day period, A one-time exception to the 60-day suspension is allowed for those cardholders who complete an affidavit, which explains the use of the card, If any further violations occur, the card will be permanently cancelled, Section 4. REIMBURSEMENT TO CITY, Credit card users shall itemize and reimburse to the City Finance Department monthly, credit card charges for items of a strictly personal nature, included on hotel bills, or otherwise, Credit card charges incurred for the convenience of a City officer or employee, such as group meals of City officials, which are properly chargeable to the City official's per diem advance under Councilor staff per diem policies, or properly chargeable to a City official's other reimbursement allowance, where applicable, shall be reimbursed by the City official receiving such benefit, to the City Finance Department. Section 5. REVIEW BY CITY FINANCE DEPARTMENT, City credit card charge slips along with detail billings shall be reviewed by the City Finance Department, and reconciled with monthly statements from the credit card company, Any questionable charges which cannot be resolved by the Director of Finance and the cardholder shall be reviewed by the Director of Finance with the City Manager. In the event the Director of Finance and the City Manager are unable to agree on the resolution of a questionable item, the matter shall be referred to the Chairman of the Audit Committee for final resolution, Section 6. RESTRICTIONS AND EXEMPTIONS. Cardholders may not use a City credit card for the following: I. Any purchases of items for personal use, which shall be reimbursed to the City by the card holder, as provided in Section 4 hereof, 2. Cash refunds or advances. 2 ;. e e i 3, Any purchase of goods or services from a merchant type not considered prudent or of good judgment. 4. Any transaction amount greater than the cardholder's transaction limit. 5, Alcohol or liquor of any kind. Patronization of bars, drinking places and package liquor stores shall not be paid for with the credit card. 6, Separate, sequential, and component purchases, or transactions made with intent to circumvent City purchasing policy, 7. Any other purchase specifically excluded in the City purchasing policy. Section 7. SUMMARy, As a public entity, the City is expected to be able to demonstrate to the public that it has spent their tax dollars wisely, All City credit card holders are responsible for insuring purchases made with their credit card will withstand the scrutiny of the press, public and internal audits. Therefore, the cardholder must make sure he or she has adequate documentation, including a clear explanation of the City purpose of each purchase or transaction. All cardholders should review and understand the Purchasing and Travel Policies of the City, appropriate to their position, Section 8. OPEN MEETlNGS LAW, The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 9. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. 3 ,f. .. "',. it e PASSED AND APPROVED, this 12 day of August, 2002, By: ATTEST: Martha A. Gillett City Secretary Knox W. Askins City Attorney CITY OF LA PORTE Norman L. Malone Mayor 4