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HomeMy WebLinkAbout4002 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. DATEDandSIGNEDTHIS 3~ DAYOFr ATTEST: ~0Jdt ~fltJJb^- Da ielle E. Daskam, City Clerk Resolution No. 4002 March 10,2006 Page 2 of 2 PETER B. LEWIS MAYOR ,2006. RN .~ ~.. ADMINISTRATIVE POLICY AND PROCEDURE SUBJECT: FINANCE USE OF CITY CREDIT CARDS INDEX NUMBER: EFFECTIVE DATE 3/7/053/2/06 SUPERSEDES 11/8/023/7/05 100-12 PAGE 1 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 M3yor, including 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. 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 budqeted 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.1 00-11, 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 Auburn will not, and c~mnot, payEverv effort shall be made to process payments in a timely manner to avoid interest and/or penalties penalty charqes on any credit card. Late fees will be tho responsibility of the department director if credit card st3tements are not processed 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"