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CITY OF GEM LAKE, MINNESOTA PURCHASE CARD POLICY The City sets the foilowing policy far internal control of the City's purchasing card program. Failure to follow this policy will constitute: misuse of the purchasing card and may,subject the em Purchasing card privileges. and. may be.subjeet to liability for thee ployee in the loss of xpenditure and or disciplinary action. A. P ose: The purpose of this policy is to establish regulations for the use of 0typurchase cards in order to maintain a clear accounting for purchases .made with these cards. These guidelines will reduce the Potential Loss and misuse of cards. It will also provide employees with a.flexible and convenient method to make purchases for the city. B. Ob' ctives: Efficiencies in the Ciry's purchasing process are gained through the use of purchase cards. The following are situations where the use of purchase cards will allow for better productivity and savings: L Local vendors are. paid:on.a timelier basis. 2. May increase the .speed in obtaining materials. I Fewer checks are written. This aIIows for fewer lost checks reconciliation. I and reduced'titrie for bank 4• Eliminates the need for employees to use personal credit cards and seek reimbursement when making:on-line purchases and. registering for trainings. 5. Reduces the need to complete credit applications for vendors where few or low dollar Purchases are made. 6. Allows swift cancellation Of employee's ability to charge after employment termination, 7. Reduces costs by eliminating invoicing fees, 8. Reduces cost through cash rebate (rewards) program, 9. Purchases can be directly traced to cardholder. C. Policy. This policy is intended be consistent Statutes. The with the City's Purchasing Policy and Minnesota State Finance office may use his/her judgment and discretion while delegating and implementing this policy; The City's purchasing cards are not credit cards. The outstanding balance must be paid in full each month, No cash access (ATM) is allowed with the purchasing cards. The Finance Officer in consultation with the Clerk Treasurer will determine which employees 'wili be assigned cards and any restrictions that will pertain to individuals' cards. A purchasing card will be, issued to a specific employee in that employee's name and can be used by ONLY that employee, Before taking possession of the purchasing card, the employee must read and sign the credit card user agreement. A supervisor may request a credit card for an employee to the Finance Officer, The Finance Officer and Clerk Treasurer may use their discretion in approving said request. A purchase card shot)[d be used at anymerchant that accepts Visa except as "the City may otherwise. restrict or direct.