Loading...
HomeMy WebLinkAbout2007-130 CCRMember Kay Lasman introduced the following resolution and moved its adoption: RESOLUTION NO. 2007-130 RESOLUTION APPROVING A CREDIT CARD USE POLICY WHEREAS, Minnesota State statutes allow cities to use credit cards for purchases in accordance with applicable regulations; and purchases; and WHEREAS, it is beneficial to the city to use credit card transactions for certain WHEREAS, the Minnesota State Auditor's Office recommends that public agencies have a comprehensive credit card policy; and WHEREAS, internal controls and procedures have been established for the appropriate use of credit cards. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, approves the Credit Card Use Policy. September 24. 2007 Date ATTEST:3~ 10 CA~Mkerk " Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Dan Ryan And upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Kay Tasman, Dan Ryan, and Mark Yelich; and the following voted against the same: Mary O'Connor; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2007-130 CREDIT CARD USE POLICY Proposed 09/19/2007 Authorized Account Holders The City will issue credit cards to the following positions: City Manager City Clerk City Manager's Designee 1 Staff authorized by the City's Purchasing Policy to purchase on behalf of the City may make charges to a City issued credit card by contacting one of the authorized account holders for account information. The Finance department will be responsible for establishing, updating, and closing all City issued credit card accounts. The selection of the provider of these accounts will be included in the scheduled bid process for banking services as established in the City Council Code of Policies. The credit limit on these accounts will be in accordance with the City's Purchasing policy, not to exceed that amount for which a department head has the authority to approve. Upon termination of employment with the City, the City issued credit card will be returned to the Finance Department on or before the employee's last day of employment. Use of Citv Issued Credit Cards Purchases using a City issued credit card authorized by this policy include those purchases that cannot readily be made through the City's normal vendor payment process, as outlined in the City's Purchasing Policy. These items include, but are not limited to: airline and hotel accommodations for authorized conferences and training, training and conference registrations made over the internet, purchases made over the internet for items that cannot be purchased by other means or for cost saving, rentals of equipment that require immediate payment (i.e., delivering and retrieving election equipment from voting places). City issued credit cards are to be used for authorized City purchases only. No personal use of the City issued credit card is allowed. No single purchase shall be made on a City issued credit card that exceeds the credit limit available on that card. Documentation for Purchases The billing statement from the credit card issuer does not contain sufficient information to document a purchase made. Appropriate documentation is required for all purchases to verify compliance with this policy and the City's Purchasing Policy. A copy of the invoice or receipt for payment must be included to verify the amount charged on the card. Receipts from vendors that only list the total charged are not considered sufficient documentation. The receipt must identify all products or services purchased, shipping charges, and sales tax. A printed confirmation of an internet purchase should be sufficient to comply with this requirement. If an invoice is not immediately available, the invoice must be forwarded to RESOLUTION NO. 2007-130 the Finance department when it becomes available and another form of documentation must accompany the original charge. *Note: use tax will be added to any item that would be subject to sales tax if purchased in Minnesota. Card users should ensure that the proper tax rate is used when a vendor collects sales tax for Minnesota, 65%. The City is not required to pay local sales tax, such as the Hennepin County Stadium sales tax of 0.15% or the Minneapolis Stadium sales tax of 0.5%. ('The zip code 55430 includes property in both Brooklyn Center and Minneapolis, so some vendors may charge the Minneapolis sales tax) However, the City is required to pay any special sales tax, such as a hospitality tax charged on hotel or dining within another City or County. The budget account to which the purchase should be charged must accompany all documentation included with each statement. Staff may contact the Finance Department with questions on the appropriate account codes. Any meals charged to a City issued credit card should include an explanation of those in attendance and the purpose of meeting held. In any instance where a product or service purchased with a City issued credit card is returned or canceled the transaction must be refunded to the credit card account. Review and Pavment of Citv Issued Credit Card Statements All credit card statements will be reviewed by the Finance Department for compliance with this policy. Additional documentation may be requested from a card user to ensure compliance with this policy and the City's Purchasing Policy. Payment of the outstanding balance of City issued credit cards will be made through the City's normal vendor payment process. Documentation shall be forwarded to the Finance department prior to the end of the month in which the current statement is received, to ensure prompt payment and to avoid finance charges. The Finance Department will periodically review the use of the City issued credit cards to determine if accounts can be established with vendors where repetitive purchases are made. If an account has been established with a vendor, all purchases should be made through that process, unless extenuating circumstances exist. Unauthorized Purchases/Noncompliance with Policv Personal use of the City issued credit card is prohibited. Each card holder will be responsible for ensuring that purchases made with their card comply with this policy and the City's Purchasing Policy. Purchases that do not comply with this policy, or that are not approved by the City Council, may become the personal responsibility of the card holder and/or purchaser. Not covered under this Dolicv This policy does not restrict the use of personal credit cards for purchases/payments eligible for reimbursement from the City in accordance with the City's Purchasing Policy.