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HomeMy WebLinkAbout2014-036 CCR Member Dan Ryan introduced the following resolution and moved its adoption: RESOLUTION NO. 2014-36 RESOLUTION APPROVING A REVISED CREDIT CARD USE POLICY WHEREAS, Minnesota statutes allow cities to use credit cards for purchases in accordance with applicable regulations; and WHEREAS, it is beneficial to the City to use credit cards for the transactions of certain purchases; and WHEREAS, the Minnesota State Auditor's Office recommends that public agencies have a comprehensive credit card policy; and WHEREAS, the credit card policy establishes the appropriate internal controls and procedures. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, approves the revised Credit Card Use Policy. 4 March 24, 2014 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Lin M y szkowski and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Carol Kieven, Kris Lawrence-Anderson, Lin M y szkowski, and Dan Ryan; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2014-36 CREDIT CARD USE POLICY Prepesed Adopted 09/19/2007 Revised 3/24/2014 Authorized Account Holders The City will issue credit cards to the following positions: City Manager City Clerk City Manager's Designee Chief of Police Public Works Director Community Activities Recreation & Services Director 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. Staff that are not authorized account holders as identified in this policy, shall not retain credit card information or make purchases using a City issued credit card without prior approval from an authorized account holder. The Finance department will be responsible for establishing, updating, and closing all City issued credit card accounts. The of the provideF of there aGGOURtS will be inGluded on the SGheduled bid The nredit limit on there CI IGvv aGGGunts will -he in a;r-,r-,P-.rdanGe with the City's PUFGhasing P010GY, RGt to eXGeed that amount fGF WhiGh a department he-ad- has the authority to approve The credit limit on these accounts will be established individually, based on an appropriate level of need not to exceed $5,000. The credit limit on these accounts will be in accordance with the City's Purchasing policy. 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 City 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 1"^d-e ever the internet purchases made over the internet for items that cannot be purchased by other means or for cost savings, and,purchases or 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 c:\documents and settings\sknutson\local settings\temporary internet files\content.outlook\52691 gwq\credit card use policy 09-19-07(revised 3-24-14).doc 1 RESOLUTION NO. 2014-36 confirmation of an internet purchase should May be sufficient to comply with this requirement. If an invoice is not immediately available, the invoice must be forwarded to 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, 47% 6.875%. For purchases that are exempt from sales tax the City is required to provide the vendor with a completed Minnesota Certificate of Exemption (ST3 Form). 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 incorrectly 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 Payment of City 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 typically be made through the City's normal vendor payment process however, the Finance Department reserves the right to pay the credit card bill outside the normal vendor payment process if necessary to avoid finance charges. Upon receiving the monthly credit card statement account holders should match credit card charges with supporting documentation to ensure all charges have been accounted for. The documentation shall be forwarded to the Finance department within 5 business days from when prior+she end of the month ;n whiGh 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 Policy 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 policy 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. cAdocuments and settings\sknutson\local settings\temporary internet files\content.outlook\52691 gwq\credit card use policy 09-19-07 (revised 3-24-14).doc 2 RESOLUTION NO. 2014-36 CREDIT CARD USE POLICY-ADDENDUM 3/24/2014 Additional Retail Credit Card Accounts In addition to the City credit card accounts the City has credit cards with the following vendors: Target Home Depot A list of cardholders is maintained by the Finance Department for these accounts. After a purchase is made the receipt/purchase order should be approved, coded and sent to the Finance Department to reconcile with the monthly bill. c:\documents and settings\sknutson\local settings\temporary internet files\content.outlook\52691 gwq\credit card use policy finance addendum.doc 1