HomeMy WebLinkAboutITEM VIII-B-4
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WASHINGTON
AGENDA BILL APPROVAL FORM
Agenda Subject: Date:
Resolution No~ 4002 March 27, 2006
Department: I Attachments: Budget Impact:
Finance Resolution No~ 4002 and Exhibit "A"
Administrative Recommendation:
City Council to adopt Resolution No~ 4002~
Background Summary:
Resolution No~ 4002 authorizes the Mayor to amend Administrative Policy and Procedure 100-12 entitled
"Use of City Credit Cards"~
N0403-2
M.7, F4.17.1
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
o Arts Commission COUNCIL COMMITTEES: o Building o M&O
o Airport t8I Finance o Cemetery o Mayor
o Hearing Examiner o Municipal Servo t8I Finance o Parks
o Human Services o Planning & CD o Fire o Planning
o Park Board OPublic Works o Legal o Police
o Planning Comm. o Other o Public Works o Human Resources
o Information Services
Action:
Committee Approval: DYes ONo
Council Approval: DYes ONo Call for Public Hearing _,----1_
Referred to Until _,----1_
Tabled Until -'-'-
Councilmember: Backus I Staff: Coleman
Meetin!:! Date: April 3, 2006 I Item Number: VIII.B.4
AUBURN * MOR.E THAN YOU IMAGINED
RESOLUTION NO.4 0 0 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING ADMINISTRATIVE
POLICY AND PROCEDURE 100-12 ENTITLED USE OF CITY
CREDIT CARDS
WHEREAS, the Auburn City Council at its regular meeting of July 1,
2002, approved Resolution No. 3480 which approved Administrative Policy and
Procedure 100-12 entitled 'Use of City Credit Cards'; and
WHEREAS, the Auburn City Council at its regular meeting of March 7,
2005, adopted Resolution No. 3833 which amended Resolution No. 3480; and
WHEREAS, it has been determined there is a need to allow card
distribution to select additional staff; to allow for internet purchases; and to
update section 5.6 'Disallowed Charges'.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Purpose. That the administrative policy and procedure for
Use of City Credit Cards, index number 100-12, a copy of which attached
hereto, marked as Exhibit "A" and incorporated herein by this reference, is
approved and the Mayor is authorized to implement the same.
Section 2. Implementation. The Mayor of the City of Auburn is hereby
authorized to implement such administrative procedures as may be necessary
to carry out the directions of this resolution.
Resolution No. 4002
March 10, 2006
Page 1 of 2
Section 3. Effective Date. This Resolution shall take effect and be in
full force upon passage and signatures hereon.
DATED and SIGNED THIS
DAY OF
,2006.
CITY OF AUBURN
PETER B. LEWIS
MAYOR
ATTEST:
Danielle E. Daskam,
City Clerk
Resolution No. 4002
March 10, 2006
Page20f2
ADMINISTRATIVE
POLICY AND PROCEDURE
SUBJECT:
USE OF CITY CREDIT CARDS
FINANCE
INDEX NUMBER:
EFFECTIVE DATE
W/1Jf;3/2/06
SUPERSEDES
11 !8/023/7/05
100-12
PAGE t OF 3 PREPARED BY: MAYOR'S APPROVAL
SHELLEY COLEMAN
1.0 PURPOSE:
1.1 To establish a policy and procedure related to the distribution, authorization, control, and use of
City credit cards.
1.2 To establish credit limits and payment of bills related to City credit cards.
2.0 DEPARTMENTS AFFECTED:
All departments/divisions.
3.0 REFERENCES:
RCW Chapter 43.09.2855
ACC 3.10.020
4.0 POLICY
The City of Auburn finds that the use of credit cards is a customary and economical business practice
to improve cash management, reduce costs, and increase efficiency.
5.0 PROCEDURE:
5.1 Setting up of Accounts
The Finance Director will be responsible for setting up each department's credit card account with an
appropriate banking facility.
Each credit card account will have a credit limit as determined by the Finance Director. In no case
shall the credit limit on each account exceed the expenditure limits as set forth in Auburn City Code
3.10.020.
5.2 Distribution of Credit Cards
Each Department Director and tho Mayor, incl\,lding the Council, Mavor. and desiQnated members of
the Mavor's staff will be issued a City credit card for his/her department. Credit cards will be limited to
VISA or Mastercard.
I Resolution No. 4002. Exhibit "A"
ADMINISTRATIVE
POLICY AND PROCEDURE
TITLE: INDEX NO:
USE OF CITY CREDIT CARDS 100-12
PAGE NO: 2 OF 3
5.3 Authorization and Control
Each Department Director will be responsible for the distribution and tracking of each credit card
issued to his/her department. Use of credit cards shall be limited to the following:
.:. Extraordinary and/or emergency type circumstances;
.:. Advance payment for budgeted and authorized training classes/seminars;
.:. Advance payment for budoeted and authorized purchases made via the internet:
.:. Budgeted, approved travel including costs associated with such travel (advance payment of
airline fares, lodging, registration fees, and tuition);
.:. Non-travel status meals (see receipt requirement in section 5.4);
.:. Travel status meals limited to the Per Diem rate (see requirements in section 5.4). See also
the Travel Authorization & Reimbursement for Business-Related Travel Expenses policy, No.
100-11.
5.4 Payment of Bills
Billing statements will be sent to each individual department. Each department will follow a system of
receipt collection as established by the finance department and the designated department secretary
will prepare a purchase order, with appropriate receipts attached, for the total amount of the current
statement. Payment of any disallowed charges will be processed as stated in section 5.6. As with
any City of Auburn purchase order, the Finance Director will review each purchase order for
appropriateness of purchase. All credit card receipts must be itemized or have an itemized receipt
accompanying them.
Meal receipts shall include a detail of food and beverages served. Meals purchased in travel status
will be limited to per diem amounts. If the per diem rate is exceeded, the employee must reimburse
the City when submitting the billing statement to the finance department. The department secretary is
responsible for ensuring reimbursement for excess meal charges is included when the billing
statement is forwarded to accounts payable for payment. See Travel Authorization & Reimbursement
for Business-Related Travel Expenses policy, No. 100-11, section 6.4.1.
Late fees on credit cards are unacceptable. When the statements are received they must be
processed immediately (within 48 hours) with supporting receipts on the next available claims run.
The City pays claims twice monthly.
5.5 Personal Charges
Personal charges to City credit cards are not allowed under any circumstance.
5.6 Disallowed Charges
Disallowed charges, or charges not properly identified, will be paid by the employee before the
charge card billing is due. Failure to do so will render the employee personally liable for the unpaid
amount, plus interest and/or any fees at the rate charged by the bank that issued the card.
Resolution No. 4002. Exhibit "A"
ADMINISTRATIVE
POLICY AND PROCEDURE
TITLE: INDEX NO:
USE OF CITY CREDIT CARDS 100-12
PAGE NO: 3 OF 3
The act of obtaining a City credit card does not indicate pre-approval of expenses.
The City of I\uburn '....ill not, and oannot, payEverv effort shall be made to process payments in a
timely manner to avoid interest and/or penalties penalty charaes on any credit card. Late foes will be
the rm:J)onsibility of the department director if oredit oard statements are not prooossed timely. If a
situation arises where an employee is responsible for charges, and the timing of the payment may
result in interest and/or late fees the Finance Director must be informed immediately. These charges
are considered liens against any amount owed by the City to the employee. All amounts in default
may be withheld by the City from funds owed to the employee. Any employee with a demonstrated
history of charge card defaults may be barred from using any City credit cards by the Mayor, Finance
Director or Department Director, as appropriate.
5.7 Annual Fees
Annual fees will be the responsibility of the department to which the credit cards are issued.
5.8 Credit Cards and Travel
Refer to the Policy and Procedure entitled 'Travel Authorization & Reimbursement for Business-
Related Travel Expenses', No. 100-11.
5.9 Cash Advances
Cash advances on all City credit cards are prohibited.
Resolution No. 4002. Exhibit "A"