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Resolution 2013-23 I I RESOLUTION NO . 2013 - ' I RESOLUTION APPROVING A CREDIT CARD POLICY WHEREAS , the City Council of the United City of Yorkville has considered and I I discussed the importance of adopting the United City of Yorkville Credit Card Policy, and i i NOW THEREFORE BE IT RESOLVED, by the Mayor and City Council of the United City of Yorkville, Kendall County, Illinois, as follows : Section 1. That the Credit Card Policy, attached hereto and made a part hereof by reference as Exhibit A, is hereby approved . Section 2. This Resolution shall be in full force and effect upon its passage and approval f as provided by law . f.. Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this day of b p c f m l-� �/' , A . D . 2013 . I CITY CLERK I I CARLO COLOSIMO KEN KOCH r JACKIE MILSCHEWSKI LARRY KOT CHRIS FUNKHOUSER JOEL FRIEDERS ROSE ANN SPEARS _ DIANE TEELING i Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this /oZ day of A .D . 2013 . I i AA j I MAY R Resolution No . 2013 - Q 3 Page 1 UNITED CITY OF YORKVILLE Credit Card Policy INTRODUCTION The City ' s Credit Card Program is intended to streamline and simplify purchasing and payment procedures by consolidating supplier invoices and eliminating form processing. The Credit Card Program is not intended to avoid or bypass appropriate procurement or payment procedures . Rather, the Program complements the existing processes available by enabling staff to make practical decisions in regards to obtaining products or services for which they are knowledgeable and allows department heads to improve management control and decision-making. I This policy provides information about the process, the types of purchases that can and cannot be made, records that must be maintained and reconciled for each cycle, and a variety of other program related information . The cardholder needs to remember that he/she is committing City funds each time the credit card is used . This is a responsibility that should not be taken lightly. The cardholder is the person responsible for all charges made to the card. Intentional misuse or fraudulent abuse may result in disciplinary action up to and including dismissal and recovery of all unauthorized City purchases . t This policy is applicable to all City departments who have selected employees to use City issued credit cards to purchase goods and services . The decision of when a credit card is issued, and to whom , will be decided by the Department Head . Individual employee credit limits will be set by the Department Head, with the consent of the Finance Director and City Administrator. Employees (i . e. Cardholders) are expected to read, understand and abide by this policy. This policy is designed to be a fluid document and may be modified from time to time to conform to changes in legislation, technology and actual practice. Although it may not answer every question related to purchasing practices, it does provide general guidelines for the use of City issued credit cards . Employees who require assistance in dealing with specific situations not covered by this policy should contact their Department Head, the Finance Director or City Administrator. The City Administrator shall be the final authority with regards to enforcement of any of the provisions of this policy. i GENERAL INFORMATION 1 . Credit Card Information The individual ' s name, credit card number, expiration date and the City ' s tax exempt number will be shown on the face of the credit card. The card has no impact on the employees (i. e., cardholder ' s) personal credit. Although the credit card lists an individual ' s name, the card is actually issued to the United City of Yorkville. i i i 2 . Cardholder Spending Limits i Each cardholder will have set maximum dollar amount for each single purchase (Single Purchase Li»ait), and a monthly limit (Monthly Purchase Limit) for all purchases made with the City credit card within a given cycle. Each time a cardholder makes a purchase with his or her credit card these limits will be checked by the issuer, resulting in the transaction being declined should the amount exceed either of the aforementioned limits . The cardholder' s single and monthly limits shall be determined by their Department Head . i 3 . Card Restrictions The following list covers purchases for which use of the City credit card is expressly prohibited : • Cash advances through bank tellers or automated teller machines (ATM ' s) . No personal identification numbers (PIN ' s) will be issued for any City credit card. i • Computers and computer related paraphernalia (e. g. , printers, monitors, etc. ) , unless approved in advance by the cardholder' s Department Head . • Any items for personal use, including but not limited to purchases of personal clothing or footwear. '- • Any capital or non-reoccurring purchases over $ 10 ,000 — unless previously approved by the City Council and authorized by the cardholder' s Department Head. Department specific regulations may allow further restrictions to this list. 4 . Cardholder Responsibilities for Purchases I A . The credit card is for City purchases only. Cardholders cannot use the credit cards for personal purchases with the intent of reimbursing the City at a later date. i B . The credit card that the cardholder receives has his or her name embossed on it and may be used only by that cardholder. No other person is authorized to use the card . C . An original receipt must support each purchase prior to processing the monthly statement. The cardholder is responsible for ensuring a receipt or adequate support for the items charged on the City ' s credit card. When online registration or purchases are made, printouts of the registration or purchase must be retained and attached to the monthly credit card statement. The lack of a receipt or adequate support may require the user to pay for the expense from personal funds . D . Each charge on the cardholder' s monthly credit card statement must be itemized and coded to the applicable budgeted line item . E . In the rare case where no receipt is obtained, the cardholder must initial the credit card statement next to the charge and write "No Receipt. " In addition, the cardholder ' s Department Head must review and approve these charges prior to being submitted to the Finance Department for processing. If it is determined by the cardholder ' s Department Head that there is inadequate support for the charge, the cardholder will be required to reimburse the City from personal funds . 5 . Cardholder Reconciliation Responsibilities A . A credit card statement will be provided to each City cardholder in order to verify the charges incurred during the current billing cycle. Verification of transactions on the statement is the responsibility of each cardholder. B . Cardholders are responsible for attaching all sales receipts for the transactions listed on their statement. i C . If a receipt cannot be obtained after a reasonable effort, the cardholder should write "No j Receipt" and initial the statement next to the item . This will be allowed on an exception basis only, as identified in section 4-E above. Continued failure to provide receipts will result in card privileges being revoked . D . The monthly credit card statement must be signed by the cardholder as proof of reconcilement and reviewed and approved by their respective Department Head prior to being sent to the Finance Department for processing. E . The cardholder is responsible to follow-up with vendors regarding any erroneous charges, disputed items, returns or refunds . Cash refunds are not allowed . F . Credit card statements must be submitted in a timely manner to avoid late charges . Failure to do so may result in the cancellation of the cardholder ' s City credit card : 6 . Reporting and Control Procedures The Finance Director will receive a master report from the credit card provider identifying all charges made by all authorized cardholders during the current billing cycle. This report will be reconciled against the submitted monthly statements of all individual cardholders to ensure that no discrepancies E exist. In addition, the Finance Department will review the monthly statements of each individual cardholder to ensure that all charges are properly coded and that sufficient support (i . e. a receipt) is provided for each charge prior to processing payment. The Finance Department shall report all credit card purchases on the list of bills presented to the City Council . I I 7 . Lost or Stolen Credit Cards Should any employee (cardholder) lose or have their credit card stolen, it is their responsibility to i immediately notify the credit card issuer, their Department Head and the Finance Department of the loss . The telephone number of the credit card issuer will be provided to the cardholder upon issuance. i i III 8 . Terminating Employee A. Credit cards are issued to individual employees . If an employee leaves the department, their card must be collected and destroyed. The Department Head (or their designee) will be responsible for collecting the card of the terminating employee and returning that card to the Finance Department for disposal . The Finance Department will contact the credit card issuer and have the terminating employee removed from the City' s account of authorized users . i B . Should a cardholder be transferred within the City to another department, it will be the responsibility of the new Department Head to determine if the cardholder should be issued a new credit card in their new position. C . In the event that the Department Head is not able to collect the credit card when employee leaves , the Department Head shall immediately notify the Finance Department to ensure the credit card is voided in a timely manner. The Finance Department will notify the card issuer to j void the credit card in order to prevent any unauthorized purchases , j r i i I I i i I i i