CC_Minutes_2004_0823 - Laserfiche WebLink

Home

City Council Regular Meeting - 08/23/04 Minutes - Page 13 interpretation of the internal controls available through use of purchasing cards; and opined that the Council needed to trust that staff was operating within their budget. City Manager Beets noted that the food purchases would be identified by staff, if specific lien items were identified; but opined that the purchases would have been for programs or events, and were not for staff, and further opined that if food wasn't provided for some programs and/or events, volunteer ranks would diminish. Councilmember Ihlan observed that, when asked to review expenditures that have already been expended, she concurred with Councilmember Kough regarding the difficulty in tracking expenses in certain categories. Councilmember Ihlan requested that Mr. Miller review the differences between credit cards and purchasing cards. Mr. Miller noted that the City had been advocating the use of City Purchasing Cards not credit cards - over the last ten years to take advantage of emerging purchasing technologies. Mr. Miller advised that the purchasing cards worked similar to an individual credit card, with a distinct advantage - better internal purchasing controls, that allowed the City to restrict applicable vendors, type of supply or material purchased, and a daily, weekly, and monthly accounting of those purchases; in addition to allowing quicker accounting of purchases in case there was any fraud evidenced. Mr. Miller noted that a purchasing card allowed far greater controls than a corporate credit card, and allowed the City to restrict purchases, based on the roles and responsibility level of employees doing the purchasing; and were used primarily for day-to-day supply purchases and allowed for spending limits. Mr. Miller opined that the City was saving literally thousands of dollars annually through reduced paper supply expenses (issuing checks, use of envelopes, postage, and staff time) and noted that many of the purchases were made via the Internet, which reduced staff travel time and mileage as well. Further discussion ensued regarding the City Council's policy on expenditures at volunteer events and whether adequate limits were in place.