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the account charged will nlany tiInes explain it, I think you need to plan for a future colunln which will better explain the purpose so as to be in compliance with a Class B statutory city requireInent as described in MN statute 471.382. CREDIT (PURCHASE) CARDS The attonley's letter states credit cards have been in use since 1997. I don't renlenlber ever seeing any detail on them until recently. And what detail you present is not adequate to nleet the requirements of 471.382. Again, you need to know the purpose of each credit card purchase before you can disburse the funds. It seeIns to Ine the best way to handle this is to Inake the departlnent head responsible for getting expense reports frOln his enlployees, with appropriate documentation (bills, etc.) attached, approved by hinl, and forwarded to you for audit and paYlnent. Until that is received, the credit card charges should be canied as a receivable froln the employee. A supplenlent to the check disburseInent register would detail out the charges by employee as you do now. The Councillnay wish to be more specific as to what they want in the way of additional information, and they have the right, by operation of this statute, to set up polices regulating credit card use. Mr. Kough may ask the Council to restrict their use: Section 471.382 permits a city council to authorize the use of credit card(s). Any credit (purchase) card charge made that is not later approved by the City Council beconles a personal liability for the amount of that purchase. Any purchase by credit card nlust otherwise comply with all statutes, nlles, or CITY POLICIES. The use of credit cards is therefore optional by choice of the Council, not nlanagenlent. Council may set any policies it chooses to control credit (purchase) card use. Any actions of prior city councils are subj ect to review and change by this city council. Credit cards are an efficient way to reduce the nUInber of checks that need to be prepared, but it should not affect the internal control and audit procedures. TO MEMBERS OF THE CITY COUNCIL: To get away froln the delema you are in to have to approve a disbursenlent register you do not have the time to thoroughly audit yourselves, Minnesota statutes (and good public policy) require you that you know and monitor the finance depmiment's procedures over the public's purse. Once satisfied, ifnot already done so, you need to designate the Finance Director as having your responsibility to audit disburseInents. Once you do that, the disbursement register would just be presented for Council infonnation only, you would not have to approve the disbursements, according to Subd. 8, MN SS 412.271. That statute also requires you to frequently monitor disburseInent procedures. I would suggest (1) Any change in policy or procedure be iInInediately reported to the Council, and (2) a complete semi annual report of cunent policies and 2