05-12-26 City Council Workshop Packet

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8 216348v2 Appendix A: Credit Cards The City has the authority to make purchases using credit cards under Minnesota Statute §471.382. The use of credit cards by staff for City business is not a method of creating debt, therefore all credit card balances shall be paid off on a monthly basis without delinquency fees or finance charges. Failure to avoid finance fees will require the discontinued use of the credit card. These guidelines are intended to protect the City and the employee. All employees entrusted with a credit card shall be responsible for complying with these directives. Authorized Employees The Finance Director is the Chief Financial Officer of the City in the eyes of the bank. So, the Finance Director is the only individual with the authority to assign, remove, or modify users and account balances for the City credit card program. Employees authorized to use a credit card must sign a Credit Card User Agreement, Attachment A.1, noting card policy, procedures for use, and card holder responsibility. To request a credit card, the Credit Card Request Form, Attachment A.2, must be completed and sent to the Finance Director. The Finance Director will maintain a listing of accounts, limits, and personnel authorized to purchase with the respective credit cards. Credit cards must be kept in a secure location when not in use. Only City employees are authorized to use City purchasing cards. Attachment A.3, Credit Card Purchase Request Form, must be filled out for each purchase made on a purchasing card. The only person entitled to use a purchasing card is the person whose name appears on the face of the card. If the situation arises that the cardholder must lend the purchasing card to another City employee, a form must be filled out for each transaction including signed approval by the cardholder and signed acknowledgement of purchasing policy by the employee who used the card. See Attachment A.3 for a copy of the Credit Card Purchase Request Form. Suppliers The credit card is a Visa Card product. Any supplier or merchant who accepts Visa Card can accept the credit card. Lost or Stolen Cards Cardholder employees must keep the credit card in a secure location. When in use the card must only be accessible to the cardholder. If the credit card is lost or stolen the cardholding employee must notify Customer Service immediately at the 24-hour telephone number (1-866-552-8855) and call the Finance Director. The card will be closed and monitored. A new card will be issued if necessary. Authorized Purchases Credit cards must not be used for expenditures that have not been authorized in the adopted budget. Since use of the credit card is restricted to purchases for the City, no non-city use is permitted and all purchases must be for a public purpose. State Statute provides that if officers and employees make purchases for the City that are not authorized by the City Council, they become personally liable for the amount of the purchase. State Statute provides that claims presented for payment must be in writing and itemized. Department heads will be responsible for ensuring receipts and invoices meet this requirement and provide them