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HomeMy Public PortalAbout2013.063 (05-21-13)RESOLUTION NO 2013.063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING A REVISED ISSUANCE AND USE OF CITY CREDIT CARD POLICY WHEREAS, the City has an existing Issuance and Use of City Credit Cards Administration policy; and WHEREAS, the policy has not been revised since April 3, 2006; and WHEREAS, to strengthen internal controls over the use of city credit cards; reduce the risk of fraud; waste, and abuse; and reflect current practices (i.e. Council approved requirement to submit all a summary of all credit card transactions on a quarterly basis) staff was asked to review and revise the City's current credit card policy. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: Section 1. That the City Council approves the attached revised Issuance and Use of City Credit Cards and directs staff to implement said policy. Section 2. This Resolution shall become effective immediately upon its adoption. PASSED, APPROVED AND ADOPTED this 21St day of May, 2013. Salvador Alatorre, Mayor ATTEST: APPROVED AS TO FORM: C - -4;Z — red Galante, City Attorney APPROVED -kS TO CONTENT: Amanda Roberson,, Finance "�,�- Ms/:1s STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the 21 t day of May 2013, and passed by the following vote: AYES: COUNCIL MEMBERS SANTILLAN -BEAS, MORTON, RODRIGUEZ AND ALATORRE NOES: NONE ABSENT: COUNCIL MEMBER CASTRO ABSTAIN: NONE Maria Ouinonez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and forgoing is a full, true and correct copy of Resolution No. 2013.063 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 21 t day of May, 2013. Maria Quinone , City Clerk CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS I. PURPOSE To establish the City's policy and procedures for the use of City issued credit cards. There are two types of credit cards authorized for use: (i) Chevron Fuel /Gas Cards ( "Fuel /Gas Cards ") and (ii) US Bank Cal -Cards ( "Cal- Cards "). II. ISSUANCE OF CITY CREDIT CARDS There are currently 14 City credit cards in circulation, which include: Fuel /Gas Cards (11) • Recreation & Community Services Department (1) • Public Works Department (6) • Grounds (Landscape) Division (1) • Building Maintenance Division (1) • Street Maintenance Division (1) • Water Utility Division (2) • Electrical Maintenance • Utility Services • Capital Improvements Program (1) • City Clerk's Office (1) c Business License Division • Development Services Department (2) o Building Inspector o Code Enforcement Division • Public Relations (1) o Parking Enforcement Division Cal -Cards (3) • City Manager • Director of Human Resources and Risk Management • Accounting & Auditing Supervisor Additional, credit cards will not be issued, unless otherwise allowed under a subsequent City Council policy /directive. 1 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS In the event of a City Council policy /directive, each Cardholder /Card User must complete, sign, and submit the City of Lynwood — Credit Cardholder Use Agreement (see Attachment "B ") to the City Manager for review and approval. Once the form is approved by the City Manager, the new Cardholder /Card User must also.sign the Issuance and Use of City Credit Cards Policy Acknowledgement Form (see Attachment "A ") as evidence they have read and understand the policy. The City Manager has the right to place any credit card account on hold or cancel any credit card without warning, should the Cardholder /Card User fail to abide by the stated rules or for any other misuse of this privilege; or if the' credit card-.is deemed unnecessary. III. ALLOWABLE USES A. All City issued credit cards will only be used to conduct City business. Fuel /Gas Cards will only be used for the purchase of gasoline for City -owned vehicles operated for City business. Cal -Cards shall be issued to specific employees designated and approved by City Council for the purpose of doing City ,business, -in the most efficient manner. Cal -Cards are intended to improve access to supplies and materials needed to perform jobs, and improve the efficiency of processingpayments to suppliers. The use of Cal -Cards are not intended to replace the City's current Purchasing Policy (LMC Section 6 -3). Cal -Cards will be used to purchase goods for $1,500 or less, and should be used as the ,preferred option before petty cash. Consistent with the, City's 'Purchasing Policy (LMC Section 6 -3), any expenditure over $500 must be pre- approved by the City Manager via a signed purchase order. The City's Purchasing :Policy also states that open market purchases, shall whenever possible, be based on a least 3 bids and shall be awarded to the lowest bidder. All Cal -Cards have a $5,000 credit card limit. City issued Cal -Cards should only be used for-the following: • Small - Dollar Purchases • Conferences/Training /Seminars (i..e. .Registration,_ Transportation, Lodging, Meals) —Travel for all staff must be'pr'e- approved by;the City 2 050713 REVISION CITY OF;LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS Manager via a Meeting and exception of Elected Officials) • Job Posting Costs • Business - Related Meals (i.e. Interview Panels, Meetings Government Agencies) • Publications /Manuals Conference Expense Report (with the City Council /Commission Meetings, with Representatives from other It is important to note that some Cal -Card charges may be incurred for staff other than the Cardholder. This is most likely for pre- approved conferences /trainings /seminars and travel expenses. IV. PROHIBITED USES The Cardholder and Approving Official are required to be familiar with the following prohibited uses: • Cash Advances • Personal Transactions, including Meals and Travel Expenses for Spouses or Significant Others • Alcoholic Beverages • Professional /Contractual Services (i.e. Consultants) • Information Technology Equipment (i.e. Tablets /iPads and Related Accessories, Telecommunication Devices (i.e. Cellular Phones), Computers and Related Accessories) o This is to ensure proper receipt and tracking of high -value items susceptible to theft. • Purchase of Gasoline for Privately Owned or Leased Vehicles • Service /Labor o This is due to IRS 1099 reporting requirements • Splitting of Purchases to Circumvent $1,500 Limit V. RECEIPT OF GOODS In all cases, the Cardholder /Card User must obtain a receipt/invoice. The receipt/invoice must consist of the following: • Date of Purchase • Description of Goods Purchased 3 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS • Quantity Purchased • Price Per Item • Amount of Sales Tax and Total Amount • Shipping Charges, if Applicable For meals, the Cardholder /Card User must note the names of each person that was. present on the itemized receipt. For lodging expenses, the Cardholder /Card User must provide the complete hotel folio. For air travel, a complete flight itinerary including a copy of the boarding pass must be provided. Reservation confirmations will not be accepted in lieu of receipts or invoices: If the Cardholder/ Card User does not have a receipt, he or she must prepare a written memo, which should include all of the above - mentioned requirements for the receipt/invoice, including the purpose of the purchase. These°.memos will '. only be permitted for charges that are $25 or less. VI. DEFINITIONS Fuel /Gas Cards, 1. Card User: Cards are issued in the name of the City and the specific Division. Card Users are authorized to make purchases of gasoline for City- owned vehicles operated for City business and must-be familiar with the City's purchasing policies and procedures. 2. Approving. Official: The Approving Official is the employee who reviews the monthly Fuel /Gas statements to verify that purchases comply with the City's policy and include proper documentation prior to authorizing payment. The Approving Official must be familiar with the City's purchasing ,policies and procedures. Cal -Cards 1. Cardholder: The Cardholder is the employee whose name is -on. the bank card. The Cardholder is authorized to make purchases of -goods on behalf of the City of Lynwood and must be familiar with: the City's purchasing _policies and procedures. 4 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS 2. Approving Official: The Approving Official is the employee who reviews the monthly Cal -Card statements to verify that purchases comply with the City's policy and include proper documentation prior to authorizing payment. The Approving Official must be familiar with the City's purchasing policies and procedures. All Cardholders /Card Users are responsible for the administration and enforcement of this policy. The City Manager and Finance Director are in charge of implementing the internal controls necessary to enforce the policy Citywide. Cardholders (specific employee for Cal -Card and Department Director for Fuel /Gas Card) are ultimately responsible for his or her account. Late fees, over limit charges, interest charges, and such similar penalties will be the responsibility of the Cardholder, without reimbursement by the City. Department Directors will be held accountable for ensuring their staffs compliance with this policy. VII. PROCEDURES a. Cal -Cards (Refer to Attachment "C" for Cal -Card Checklist 1. Each month, each Cardholder will receive a billing statement that includes all monthly charges. In addition, the Finance & Administration Department will receive a monthly summarized billing statement that includes all charges for all Cardholders. 2. The Cardholder shall review and attest to the accuracy of each monthly charge to ensure that each purchase is (a) a valid City expense, and (b) supported by the original receipt. The Cardholder shall also indicate the purpose of each purchase. The Cardholder can only charge credit card purchases against accounts that they have authority over. 3. The approved statements and attachments must be forwarded to the Finance & Administration Department within 3 working days of receipt. 4. On a monthly basis, the Finance & Administration Department will summarize all Cal -Card transactions by Cardholder, which will include the date, description, general ledger account number(s), and purchase amount. On a quarterly basis, the Finance & Administration Department will submit a Staff Report that includes all Cal -Card transactions for review and approval by City Council. 5 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT`CARDS 5. If a billing error occurs, the Cardholder is responsible for contacting the vendor within 3 working days after the date of the- purchase or as soon as the error is discovered, on items disputed which appear as transactions on the statement. The Cardholder' "shall note• on the statement, indicating "questioned item ", and provide a "brief written explanation. If there is an issue the Cardholder cannot.resolve before the credit card statement is processed for payment; the Cardholder shall follow -up with US Bank and immediately notify the Finance & Administration Department. To avoid finance charges and late fees, the Finance & Administration Department will pay'all credit charges in full, including questioned items. The Cardholder is ultimately responsible for resolving the disputed charges and obtaining credit on the next monthly statement. 6. If a purchased item is returned, the Cardholder, is responsible for contacting the vendor and requesting a credit. The .Cardholder shall cross out the transaction on the, statement; and note the ':pending, credit'. 7. Lost or stolen cards must be reported to the Finance & Administration Department within 1 working day of discovery. 8. The Cardholder- shall surrender their ,Cal -.Card 'immediately upon retirement, termination, or upon the request of th'e:City Manager. 9. The Cardholder is responsible for the,security!of their Cal -Card and may not "lend" their card to any other person. b: Fuel /Gas Cards 1. Each Fuel /Gas Card User must complete °the Fuel /Gas Card Authorization form, which- must be signed by the employee's immediate supervisor and the Department Head ,(see Attachment «D„ Fuel /Gas cards shall be kept in a secure central location at each Department by the staff person designated by,the Department Head. 3. Each Department shall maintain a list containing the printed names and signatures of all personnel authorized to purchase gasoline with the Fuel /Gas Card with a copy forwarded' to the finance & Administration Department on a monthly basis. 4. All employees authorized to use the City's Fuel /Gas Card shall sign, and print their name on :the receipt; list the vehicle license, and their employee identification number. 6 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS 5. The Fuel /Gas Card and receipt shall be returned to the designated staff within each Department immediately after usage. 6. On a weekly basis, designated staff shall be required to reconcile the Fuel /Gas Card Log (See Attachment "E ") with the receipts collected prior to submitting the information to the Finance & Administration Department. The Fuel /Gas Card Log shall be provided to the Finance & Administration Department on a monthly basis by the 5`h of each month. 7. Lost or stolen cards must be reported to the Finance & Administration Department within one (1) working day of discovery. 8. Each Department shall record mileage on the Vehicle Mileage Log (See Attachment "F "). Mileage will be logged in on a weekly basis and shall be provided to the Finance & Administration Department,on a monthly basis by the 5th of each month. 9. Vehicles that require use over the weekend will be fueled each Thursday before the close of business. APPROVED BY THE CITY MANAGER Roger L. Haley, City Manager Date 7 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE'OF CITY CREDIT CARDS ATTACHMENT A RECEIPT AND ACKNOWLEDGEMENT OF CITY OF:LYNWOOD ISSUANCE AND USE OF CITY CREDIT CARD POLICY Through my signature below, I hereby acknowledge that I have-received a-copy of the Issuance and Use of City Credit Cards Policy, and have. read and understood the contents of the said policy. I acknowledge that a failure to adhere to the contents of this policy may be grounds for discipline, up to and including termination of.employment. Employee Signature: _ Printed Employee Name: Department: Date: 8 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS ATTACHMENT B CITY OF LYNWOOD - CREDIT CARDHOLDER USE AGREEMENT Employee Name: Department Credit Card Account No.: (TO BE COMPLETED BY THE FINANCE & ADMINISTRATION DEPARTMENT) The above named employee (Cardholder or Card User) has been issued or given access to a City credit card ( "Cal- Card" or "Fuel /Gas Card ". The Cardholder or Card User has been provided with a copy of the City's credit card policy, and hereby agrees to comply with all terms and conditions set forth therein, including but not limited to 1. Official Use Only. City credit cards are for official business use only. Charging personal expenses on the City cards is a misuse of City funds and a serious breach of the City's ethics policy. Doing so, even if the intent is to reimburse the City later, will result in disciplinary action, up to and including termination. Minor incidental expenses incurred as a component of a larger bill such as personal telephone calls on a hotel bill may be allowed if reimbursed at the time the credit card billing is submitted for payment. 2. Timely, Accurate, and Supported Credit Card Charges. Credit card payments will be processed in a timely manner. Original supporting documentation (i.e. receipts, invoices) will be submitted for all charges incurred. 3. Disputed Charges. The Cardholder or Card User will immediately notify the credit card company and the Finance & Administration Department of any disputed charges. 4. Lost or Stolen Cards. The Cardholder or Card User will immediately notify the credit card company and the Finance & Administration Department of a lost or stolen credit card. Failure to do so will make the Cardholder or Card User responsible for any fraudulent use of the lost or stolen credit card. 5. Surrender Upon Request or Separation. The credit card will be immediately surrendered upon retirement, termination or upon request of the City Manager. Use of the credit card for any purpose after its surrender is prohibited. City Manager Date Distribution: Original - Cardholder /Card User Personnel File Cardholder /Card User Date Copies — Finance Director and Cardholder /Card User RETURN OF CITY CARD UPON SEPARATION FROM CITY EMPLOYMENT I HEREBY SURRENDER the credit card issued to me by the City of Lynwood to the Finance & Administration Department. I declare that all outstanding charges on the credit card are for official City business. Cardholder Date Finance Director Date 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS, ATTACHMENT C CAL -CARD CHECKLIST For all monthly Cal -Card Statements, please ensure that you: ❑ Attach the original credit card statement. ❑ Attach an original invoice for every charge on the statement. Include a brief explanation for each charge on each original invoice. ❑ Include signature stamp on each original invoice, which should include the approval date, proper general ledger account number(s), and signature by the Department Head. ❑ Attach a printout.from the EDEN Financial. System confirming that the funds are available in the general ledgeraccount number(s) used for payment. For travel - related payments, include a Meeting and. Conference Expense Report approved by the City Manager. 10 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS ATTACHMENT 'D FUEL /GAS CARD AUTHORIZATION FORM DATE: CARD NAME: TIME: A.M.'/ P.M. CARD NO.. - VEHICLE LICENSE NO.: DEPT. & DIV. EMPLOYEE NAME: (PRINT) MILEAGE OUT: AUTHORIZED BY: (DIVISION SUPERVISORIMANAGER) (DEPARTMENT HEAD) 11 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS ATTACHMENT E FUEL /GAS CARD LOG DEPARTMENT: DIVISION SUPERVISOR/MANAGER SIGNATURE: DEPARTMENT HEAD SIGNATURE: MONTH AND YEAR: nployee Employee Vehicle Mileage Credit Date Time Time I Mileage Amount Receipt Name No. License I Out Card Checked Returned In Charged I Present 12 050713 REVISION CITY OF LYNWOOD ADMINISTRATIVE POLICY ISSUANCE AND USE OF CITY CREDIT CARDS ATTACHMENT F VEHICLE MILEAGE LOG DEPARTMENT: DIVISION SUPERVISOR /MANAGER SIGNATURE: DEPARTMENT HEAD SIGNATURE: MONTH AND YEAR: Odometer Date Employee Name Employee Vehicle Beginning- Ending Total Miles No. License No. Odometer Odometer 13 050713 REVISION