HomeMy WebLinkAbout4B, Motion to Approve Credit/Charge Card Policy_. _ _ :
_ _ _. . ,
EN HILLS
Re uest for Council Action :
q
Prepared By:
Sue Iverson, Finance Director/Treasurer Counc�l Meetin�g Date: October 13, 2008
A motion to approve the City of Arden Hills Credit/Charge Card Policy.
Budgeted Amount: Actual Amount: Funding Source:
NA NA NA
Recommendation:
Staff recommends approving the attached policy to bring the City into compliance with
State statutes and to respond to an audit finding during the annual audit.
_.� ............................�...._.......................�.............�.�..................�._._..._.. ._� . �...
Supporting Documents:
1. Memo (10/9/08) from Sue Iverson, Finance Director/Treasurer.
2. City Credit/Charge Card Policy.
_ _ _ _ _ _
__._ .
_ _ _. _ _
_ _
_ _ _ _
� EN HILL
S
�
MEMORANDUM
DATE: October 9, 2008 �
TO: Honorable Mayor and City Council
Ronald Moorse, City Administrator
,�
FROM: Sue Iverson Finance Director/Treasure `�
�.
_ �
SUBJECT: Credit/Charge Card Policy
Background:
The City of Arden Hills have a number of credit/charge cards that employees use to purchase
supplies, such as Office Depot, Target, Home Depot, etc. While cities are allowed to use
credit/charge cards, they are required to have city council authorization. During our annual
audit, staff was unable to find any official council authorization for the use of credit or charge
cards; this resulted in an audit finding.
Discussio� o
Staff has prepared a credit/charge card policy which would satisfy the requirements by the Office
of the State Auditor (OSA) and our auditor. Since this is an operating policy, it does not need to
go through the Financial Planning and Analysis Committee.
Staff Recommendation:
Staff recommends approval of the attached City Credit/Charge Card Policy to bring Arden Hills
into compliance with state statutes.
_._ _ .. _ _
_
_ _
_ _ __ _ _ _
_. _._.. _. _. _ _
_. _.
_ _ _ _ _ _
_ _. _. _
_. _ _
_ _.
_ _ _
__ _...
_ _ _
_ _ _ _
_... __.
_ _.. _ _.
_ _. __ _ _
__. _.. _
„ ,.
�
���"""r�
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
FINANCIAL POLICIES-
CITY CREDIT/CHARGE CARD PULICY
Pu ose
The City of Arden Hills will provide credit/charge cards to each department to make
work related purchases and payment of goods and services when demonstrated
efficiencies are gained. Use of the card for personal purchases is strictly prohibited.
Organizations Affected
All employees who have a City credit/charge card issued to them are subj ect to this
policy. Employees on administrative leave may not make charges to the credit/charge
card and must return card to their immediate supervisor upon being put on administrative
leave.
Procedure
1) Application for Credit/Char e Card
i. A department may request a credit/charge card for selected employees when
there is a demonstrated efficiency to be gained. The request for a City
Credit/Charge card must be made to the appropriate Department Head with
approval by the City Administrator. Upon approval, request is then made to the
Finance Director by Department Head.
11. Employee must sign an agreement with the City of Arden Hills regarding use of
credit/charge card.
iii. Employee agrees to comply with terms and conditions of the Associated Card
Service Cardholder Agreement and this Policy.
2) Purchases
i. Any purchase on the credit/charge card = be work related and not for
personal use.
ii. Employee is responsible for providing a receipt for each transaction and
attaching such receipt to the appropriate credit/charge card bill.
111. Any single transaction in excess of $1,000 must have prior authorization for the
City Administrator or his/her designated representative.
iv. Credit limit on individual cards is $3,000. Exceptions may be granted to
appropriate personnel.
v. Credit/Charge card shall only be used by person whose name is on the card.
3 ) Pa,yment
ihe City of Arden Hilis Page 1 10/7/2008
1.
ii.
111.
4)
5)
6)
1.
11.
Payment of credit/charge card statements is to be made promptly to avoid finance
charges. Receipts shall be attached to payment. If there is no receipts, payment
would be made only after the City Administrator, or his/her designated
representative, has signed and approved of the expenditure.
Individual purchases shall be listed separately on pay authorizations and coded to
the proper account.
If a credit/charge card is due on a statement, such as for returned merchandise, it
is the employee's responsibility to assure such credit is recorded.
Lost or Stolen Card
1. If your credit/charge card is lost or stolen, immediately contact
Associated Card Services at the number on back side of credit card and
then notify the Finance Department.
Misuse of Credit/Char _�e Card
1. Employee may be disciplined up to and including discharge for misuse
of credit/charge card as stated in this policy, or as deemed appropriate by
the City Council.
Cancellation of Credit/Char e Card
Upon resignation, retirement, termination, adminis�rative leave, leave of absence,
or any other means of leaving employment of the City of Arden Hills, employee
must immediately surrender credit/charge card to immediate supervisor.
The City of Arden Hills reserves the right to cancel any credit/charge card at any
time for any reason.
Approval by the City Council the � Day of �, 2008.
Stanley D. Harpstead, Mayor
Ronald J. Moorse, City Administrator
Date
Date
The City of Arden Hills Page 2 10/7/2008