HomeMy Public PortalAboutClerk's Credit Card.pdfVillage of Key Biscayne Credit Card Policy
Authority:
Village Manager or designee.
Purpose:
The purpose if this policy is to provide users of Village issued credit cards with a flexible
and efficient way to make payments, such as travel arrangements and payments for
related expenses or emergency purchases. The Village's preferred payment method is
through vendor invoices and account payable checks since it allows for budget
compliance while ensuring the certain discounts and state sales tax exemption.
However, in cases where this is not feasible, select employees will be provided with a
Village credit card. While the employee is fully responsible for all charges on the card,
the credit line will not count against their personal credit rating. The Village's current
purchasing rules and procedures apply to credit card purchases, all purchases that
must be bid, quoted, or competitively sourced must be handled in the appropriate
manner. Splitting of purchases to avoid proper procurement procedures is a violation of
the Village's purchasing rules and credit card policy.
Eligibility:
Only Directors or other staff members specifically authorized by the Village Manager are
provided with Village credit cards.
Authorized Credit Card Use:
Use of Village credit cards is for Village of Key Biscayne purposes only, in conjunction
with the employee's job duties. A Village credit card cannot be used to obtain cash
advances, bank checks, traveler's checks, or electronic cash transfers for expenses
other than those incurred by the assigned employee named on the card. The credit
card must never be used for personal expenses or expenses not related to the Village
of Key Biscayne.
The Village will not regard the use of a Village credit card as personal use if it is used
for items, such as lodging and meals while on Village -approved business trips, if such
expenses are consistent with the Village's travel and expense reimbursement policy.
Misuses of the card will result in cancellation of the card and withdrawal of corporate
credit card privileges. If the card is used for an employee's personal expenses, the
Village will recover these monies from the employee cardholder. Cardholders will be
required to pay, from their salary or wages, if necessary, any amount incorrectly
claimed. Misuse of the card may also result in employee disciplinary action, including
termination, as well as criminal prosecution, if applicable.
Corporate credit card expenditures must be reconciled and submitted with original
receipts to the Accounting/Finance Department within 10 business days of the
statement date. The receipts will detail the purchase made with the credit card. The
charge slip alone will not be sufficient to document the purchase made with the credit
card. Each receipt will include a coding of the account(s) to be charged. Cardholders
who have not reconciled and submitted their monthly expenditure within this period will
be asked to reconcile and submit their monthly expenditure immediately. Continued or
repeated non-conformance to this policy will result in cancellation of the card and such
other actions as appropriate. If the card expenditures are not reconciled and submitted
within a month of the statement date or a plausible explanation has not been received
by Accounting/Finance Department, the employee's corporate credit card will be
cancelled.
Lost or stolen cards or suspected fraudulent charges must be reported immediately to
the Chief Financial Officer. Failure to do so may result in disciplinary action, including
termination, to the employee card holder.
Tax Exemption:
The Village of Key Biscayne is exempt from State of Florida sales tax, and generally
other State's sales tax levies too. A copy of the Village's sales tax exemption certificate
is available upon request from the Finance department. Card holders are always to
have a copy of this certificate with them when making a purchase on behalf of the
Village. All purchasers should provide this information to vendors at the time of
purchase and do what is feasible to ensure they are not paying state sales tax on
purchases. However, the Village may make allowance for small ticket transactions
when presenting the certificate is deemed to be more time consuming than the cost of
the employee's time to complete the transaction.
Card Number Security:
When a credit card is issued to an employee and that employee's name is placed upon
the issued credit card, then that person is solely responsible for all purchases on the
card and ensuring that their card number is not used by unauthorized personnel. As
such, the cardholder will NOT allow their card to be used by anyone other than
themselves. In addition, the credit card should not be stored in an online account that
anyone other than the cardholder has access to. If the card is lost or stolen, or the card
holder suspects a charge is fraudulent, then the cardholder must immediately notify the
Human Resources Department, so the card can be deactivated for further use and/or a
charge can be contested.
Approval:
All purchases with Village credit cards are to be expressly approved by the card holder
in agreement with the Village's procurement policy. It is the card holder's responsibility
to ensure that all purchasing rules and regulations have been followed and that there is
sufficient budget available to make the purchase.
Statements:
Credit cards statements are mailed directly to the Finance department. The Finance
department then scans the statements and emails it to the card holder and their
designee. The card holder must ensure that all receipts documenting each purchase
are sent back to finance, with account coding and with the card holders signature
approving the purchase.
Receipts:
The credit card holder is responsible for receiving, printing and retaining all receipts
related to credit card purchases. This includes receipts related to online purchases and
restaurant purchases. The cardholder shall label all receipts with a description of the
reason and basis of the expenditure to ensure proper coding for the Finance
department. All receipts must be submitted to the Finance department within one
week of the closing date of their statement. Original receipts should be provided to
the Finance department (with a copy retained by the card holder or their designee). If
time is of the essence, receipts can be scanned and emailed to the accounting
coordinator to meet the deadline. The original receipts can then be sent via inter -office
mail at a later date. If a receipt is accidentally lost, a written description of the items and
cost must be submitted by the respective principal. The Village is routinely audited on
credit cards purchases, and it is especially important that all purchases are properly
documented with the receipt.
Special Rules for Meals other than meals associated with approved travel: The card
holder will provide detailed documentation and support any time (other than when on
travel status) the Village pays for any meal. The employee must document the amount,
time, place, and business purpose of the expense and this documentation must be
submitted with your monthly credit card statement. Any employee who fails to submit
this documentation will be responsible for the repayment to the Village of any amounts
not fully documented.
Termination:
Upon termination of employment and prior to receiving a final paycheck, all cards must
be cancelled and returned to Human Resources or the Village Manager's office, along
with any other Village property.
Policy Violation:
Violations of any of the provisions of the Village's Credit Card Policy may result in
anything from a warning to a cancellation of the card to termination of employment,
depending on the severity of the violation. An employee may also be subject to any
taxes that may be required to be withheld. The employee specifically acknowledges
that:
• The Village credit card cannot be used for cash advances, personal or non -business -
related purchases or the purchase of alcohol.
• In the event of any violation by the employee of any of the provisions of this Village
Credit Card Policy, the employee agrees and consents to having the cost of personal or
non -business related purchase(s) considered and treated as an advance of future
wages payable to that employee, and will be recovered in full from the employee,
including but not limited to future paycheck(s); any balance remaining will be deducted
in full from subsequent paychecks until the wage advance is fully repaid. None of the
provisions of this Credit Card Policy nor any other agreements shall limit the Village's
remedies and/or ability to collect any monies due to it using any other means or assets
of the employee including writs of attachment, garnishments, and/or injunctions.
• If an employee uses a Village -issued credit card for any unauthorized transaction in
violation of this policy, the cost of such purchase(s) or transaction will be the fiscal
responsibility of that employee in addition to any disciplinary or legal action that may be
taken.
• In addition to financial responsibility and liability for wage deductions, any purchases
an employee makes with a business credit card in violation of this policy will result in
disciplinary action, up to and possibly including termination of employment, depending upon
the severity and repeat nature of the offense, at the discretion of the Village Manager.
All receipts must be submitted to the Finance department within one week of the
closing date of the statement
Assignment of Village Credit Card
Employee Name: Pe, e v 7.—). V'lew
Position:
Vi 11 CA,3 C., c14,1
I have been assigned a Village credit card and agree to abide by the Villages Credit Card
Policy.
I understand and agree that:
• I bear ultimate responsibility for the card.
• I will not use the corporate credit card to withdraw cash.
• I will not use the corporate credit card for personal expenses and will use it only
for official business on behalf of the Village.
• If I misuse the card (i.e., use it otherwise than in accordance with the instructions
given to me in this agreement or related policies) or otherwise fail to reconcile my
expenditures within the prescribed procedures and timeframe, I authorize the
company to recover the funds through payroll deductions for any amounts
incorrectly claimed or for reconciliations that are one month in arrears of the
statement date.
• If the corporate credit card is lost or stolen, I will report it immediately to the
Finance Department.
• If I resign from the company, I will return the card with a final reconciliation of all
expenditures prior to departure.
Signature of supervisor