Administrative Policy 4-4 Visa Purchasing Card Policy

 

SUBJECT: Visa Purchasing Card Policy

 

DATE: February 16, 2009

 

PURPOSE: To implement a policy for a purchasing card program and improve the convenience of making purchases for authorized emergency/unexpected items, online items, and out-of-town travel.

 

BACKGROUND: The City of Lawton currently makes several authorized purchases using credit cards issued to the City. Visa Purchasing Cards will take the place of the current credit cards and allow for a tailored program more specific for City use. This system allows the City more control on expenditures while saving the City money on fees and charges that traditional credit cards impede on a cardholder. The purchasing card program allows more cards issued without additional cost to the City than what was possible with traditional credit cards.

 

POLICY:

 

Overview

 

Visa Purchasing Cards are issued in lieu of credit cards. These Purchasing Cards are to be treated like credit cards and kept in a secure manner. To assure the effectiveness of the program, all cardholders must follow this policy and its procedures. Every reasonable effort must be made to ensure that funds are used responsibly and in a manner consistent with the City of Lawton purchasing and Payment Procedures found in Administrative Policy 4-2, Travel Policies found in Council Policy 1-1, and all applicable laws and ethical practices.

 

Failure to use the purchasing card in accordance with applicable policies and procedures may result in suspension of the card and appropriate disciplinary actions, up to and including, termination and/or criminal action. Some violations may include, but are not limited to:

 

*Making purchases of items for personal use.

*Making cash advances or receiving cash refunds for returned merchandise.

*Failing to return the Purchasing Card when cardholder is re-assigned, terminated, resigns, or upon request.

 

Purchasing Cards are the sole responsibility of the individual named on the card. The cardholder should recognize the importance of protecting the account number of the card. The cardholder should maintain possession of the Purchasing Card at all times.

 

In certain circumstances, it may be necessary to lend the card to another user. Remember that as the cardholder you are responsible for all charges on the card except in the case that the cardholders account number reported as a lost or stolen card. If it is determined that an additional car is beneficial for your department/division, a new user may be added as part of your group upon authorization of the Supervisor and Department Director, and the Program Administrator. Submit requests for additional users by forwarding the attached Exhibit #1 to the Purchasing Card Program Administrator.


 

Credit Limit

 

The Program Administrator will assign credit limits, number of transactions limit, and point of purchase limits based on needs of the cardholder. If a cardholder attempts to purchase over their limit or at an unauthorized point of purchase (e.g., jewelry store) the purchase will be blocked.

 

Credit Limits on cards may be changed either temporarily for a special purpose or permanently with approval from the Program Administrator. Submit requests for credit line changes by forwarding the attached Exhibit #5 to the Purchasing Card Program Administrator. For emergency on-the-spot changes please call 580-581-3328.

 

Purchasing Groups

 

The Visa Purchasing Card has restrictions based on the cardholders needs. Listed below are examples of some of the restrictions.

 

Group #1 Pump Fuel

Card may be used only at automated (pay-at-the-pump) fuel pumps

 

Group #2 Fuel Only

Card may be used only at automated fuel pumps and stores that sell fuel.

 

Group #3 Business

Card may be used only at hotels, car rentals, airlines, trains, bus lines, subways, restaurants, automated fuel pumps, gas stations, tollbooths, turnpikes, parking lots & garages and auto repair and services.

 

Group #4 Hotels

Card may be used only at hotels, motels and lodges.

 

Group #5 Auto Parts

Card may be used only at automotive parts and accessory stores.

 

Group #6 Auto Expense

Card may be used only at new & used car and truck dealers, fuel stations, automated fuel pumps, tire sales & repair stores, wrecking & salvage yards, auto body repair shops, carwashes and towing services.

 

Multiple groups may be assigned to a cardholder based on criteria that deems it necessary. Submit requests for changes by forwarding the attached Exhibit #5 to the Purchasing Card Program Administrator.

 

Sales Tax

 

Exercise caution when making purchase in the city limits of Lawton. Choose purchase points that honor the Sales Tax Exemption Status of the City of Lawton. If the vendor will not honor the Sales Tax Exemption Status then do not purchase from that vendor. The City sales tax exemption number is provided when the card is issued. All local sales tax applied to the cardholder’s statement will be the responsibility of the cardholder. The City of Lawton will not pay for sales tax incurred inside the Lawton city limits. Sales Tax outside the Lawton city limits should be avoided if possible. If it is not possible then the sales tax incurred outside of the Lawton city limits will be paid upon receipt of an authorized Purchase Order.

 

Cancelled Purchases

 

In no case should a purchaser accept cash, or a voucher, or a credit for future purchases. A return product or cancelled service must result in a credit applied directly to the Purchasing Card.

 

Disputed Charges

 

It is the cardholder’s responsibility to recognize erroneous charges, charges for goods and services that were never received or received defective, or a credit no processed correctly. Disputes over charges should be resolved promptly between the cardholder and the vendor. If a resolution is not reached, the cardholder must contact the issuer of the Purchasing Cards at 1-800-356-8085. Forward a completed Cardholder Statement of Disputed Item(s), Exhibit #4, to the Program Coordinator. Failure to dispute charges will result in a presumption that the charge is correct and will be deducted from the cardholders budgeted funds.

 

Lost/Stolen Cards

 

Report a lost or stolen card immediately to the following:

 

1-800-356-8085 Visa Lost or Stolen Card

580-581-3328 Program Coordinator

 

After contacting the above numbers, complete a Purchasing Card Lost/Stolen Report, Exhibit #3, and forward it to the Purchasing Card Program Coordinator.

 

Attached Exhibit #1 must be completed in order to request a replacement card.

 

Statements/Charges

 

All cardholders are able to access their detailed usage online. Cardholder must self-register the account once the card is received. Although the card can be used without registering online, it is valuable to do this so that monitoring all charges, payments, and balance in real-time is possible. The web site address is provided when the card is issued.

 

Requisition/Payment Process

 

Following Purchasing and Payment Procedures found in Administrative Policy 4-2 for all purchases made on the Purchasing Card.

 

Using the Purchasing Card is in no way a substitute for proper purchasing procedures

 

In all cases, a PO should be obtained prior to making a purchase on the purchasing card. It is understood that obtaining a PO prior to making a purchase with the Purchasing Card may not be feasible. If in the rare occasion this is not possible, obtain a requisition and PO as soon as it is. Waiting to obtain a Requisition and PO for purchases after the statement is received may result in a late payment, which, in turn may result in suspension of the Purchasing Card.

 

It is the responsibility of the cardholder to review for accuracy and reconcile monthly card activity statements. After reconciling the monthly statement receive PO(s) in the GEMS system and forward the statement and all receipts by the second Wednesday of every month to financial services for payment.

 

Failing to submit by the second Wednesday of every month all supportive documentation for charges and the statement to Financial Services may result in suspension of the card.

 

Cancellation of Purchasing Card

 

If an employee assigned a Purchasing Card has a change in status, is terminated or resigns, return the Purchasing Card to the immediate supervisor. A Purchasing Card Return Form, Exhibit 6, must be completed and forwarded with the card to the Purchasing Card Coordinator.

 

REFERENCES: Arvest Visa Purchasing Card Agreement, Administrative Policy 4-2, Council Policy 1-1

 

RESCISSION: No Rescissions, this is a new policy

 

RESPONSIBLE

DEPARTMENT: Finance Administration


 

____________________________________ ____February 16, 2009_______

Larry Mitchell Date

City Manager

REQUEST FOR PURCHASING CARD

EXHIBIT #1

 

TO: Purchasing Card Program Administrator

 

FROM: ______________________________________________________________________________

(Name) (Division/Department)

 

SUBJECT: Request for Purchasing Card

 

I request the following employee be issued a City of Lawton Purchasing Card for the purpose of making small-dollar purchased in the normal course of authorized City business.

 

Full Name of Employee (print):___________________________________________________________

 

Employee Signature:____________________________________________________________________

 

Employee Title:________________________________________________________________________

 

Please indicate the intended purpose of the Purchasing Card and any requirements or restrictions required. (This information is for reference only. Final limits and restrictions are at the discretion of the Purchasing Card Program Administrator.)

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

Types of Vendors:______________________________________________________________________

 

______________________________________________________________________

(i.e. office supplies, lumber)

Daily Transaction $ Limit:_______________________# of Transactions Daily Limit________________


 

REQUESTED BY: _________________________________________________________________

Signature of Supervisor

 

APPROVED BY: _________________________________________________________________

Signature of Department Director

 

APPROVED BY: _________________________________________________________________

Signature of Purchasing Card Program

Administrator

 

PURCHASING CARD CARDHOLDER AGREEMENT

EXHIBIT #2

 

I, ______________________________________ hereby agree to comply with the Purchasing Card policy and procedures and the following terms and condition regarding my use of the card. As a cardholder, I have read and understand the City of Lawton Purchasing Card Policy and Procedures.

 

1. I understand that I am being entrusted with a valuable too, the Purchasing Card. I will be making financial commitments on behalf of The City of Lawton. I will obtain the best value for the City by using the card wisely and with discretion.

 

2. I agree to use this card for official approved purchases only. I fully understand that misuse or abuse of the card will result in revocation of the card and appropriate disciplinary action which may include termination of my employment.

 

3. Policy violations include, but are not limited to:

 

Expenditures for personal purposes;

 

Cash advances or refunds for returned merchandise;

 

Failing to return the Purchasing Card when cardholder is re-assigned, terminated, resigns, or upon request;

 

4. I agree to return the card immediately upon request or upon termination of employment (including retirement and resignation). Should I be transferred, qualify for extended leave or undergo an organizational change which causes my duties to no longer necessitate the use of the card, I agree to return it immediately and arrange for issuance of a new card as may be appropriate.

 

5. If the card is lost or stolen, I agree to immediately notify Visa and the Purchasing Card Program Coordinator both verbally and in writing.

 

I understand and agree that my use of the purchasing card is subject to the following specific purposes or restrictions:

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

To be filled out by the Purchasing Coordinator.

 

_________________________ _____________ _______________________________________

Employee Signature Date Division/Department

 

________________________ _____________ __________________ ___________________

Department Director Date Purchasing Card Date

Program Administrator

 

Transaction Limit if Applicable:_____________________________Credit Limit:$__________________

To be filled out by the Purchasing Coordinator

 

Submit to Purchasing Card Program Administrator for Authorization

 

PURCHASING CARD LOT/STOLEN REPORT

EXHIBIT #3

 

To report a lost/stolen card dial 1-800-356-8085

 

TO: Purchasing Card Program Coordinator

 

FROM: ______________________________________________________________________________

(Division/Department)

 

Card Number:_________________________________________________________________________

 

Full Name of Employee (print):___________________________________________________________

 

Employee Signature:____________________________________________________________________

 

Employee Title:________________________________________________________________________

 

Date of Loss:__________________________________________________________________________

If you do not know the date it was lost then note the date you realized it was gone.

 

Date of Stolen:________________________________________________________________________

If you do not know the date it was lost then note the date you realized it was gone.

 

Details:______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

__________________________ __________

Supervisor Signature Date


 

__________________________ __________ _______________________________ ______

Department Director Date Purchasing Card Program Coordinator Date

 

CARD HOLDER STATEMENT OF DISPUTED ITEM(S)

EXHIBIT #4

 

RE:_________________________________________________________________________________

 

Cardholder Name:_______________________________________Card Number:___________________

 

Merchant Name:_________________________________________Disputed Amount:$______________

 

I dispute the charge(s) described herein as follows: {Check Appropriate Box(es)}

 

I certify that the charge listed above was not made by me nor were the goods or services represented by the above transaction received by me or by a person authorized by me.

I do not recognize the transaction as listed above. Please inform me of merchandise name and description of merchandise purchased.

Although I did engage in the above transaction, I dispute all or part of the charge in the amount of $______________

I have contacted the merchant and requested a credit adjustment that I did not receive or was not satisfactory.

I have been charged twice for the same transaction. Posting dates: __________ and _________.

A credit slip was listed as a sale on my statement.

The amount of the sales slip was increased from $____________ to $_____________. Enclosed is a copy of the credit memorandum.

Non-Acceptance

Other, please explain completely below

 

I am disputing the charge because:_________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

Designated Cardholder Signature:______________________________

 

Phone:____________________________________________________

 

Date:_____________________________________________________


 

___________________________________ __________________

Purchasing Card Program Coordinator Date

 

PURCHASING CARD CHANGE FORM

EXHIBIT #5

 

TO: Purchasing Card Program Administrator

 

FROM:______________________________________________________________________________

(Division/Department)

 

Card Number:_________________________________________________________________________

 

Full Name of Employee (print):___________________________________________________________

 

Employee Signature:____________________________________________________________________

 

List Change Requests: (e.g. higher credit limit, more categories)

 

Requests:_____________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

Reason:______________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

REQUESTED BY: _________________________________________________________________

Signature of Supervisor

 

APPROVED BY: _________________________________________________________________

Signature of Department Director

 

APPROVED BY: _________________________________________________________________

Signature of Purchasing Card Program Administrator


 

Date Changed:_________________________________________________________________________

 

PURCHASING CARD RETURN FORM

EXHIBIT #6

 

TO: Purchasing Card Program Coordinator

 

FROM:______________________________________________________________________________

(Division/Department)

 

Card Number:_________________________________________________________________________

 

Full Name of Employee (print):___________________________________________________________

 

Employee Signature:____________________________________________________________________

 

Employee Title:________________________________________________________________________

 

Date Card Returned:____________________________________________________________________

 

Returned To:__________________________________________________________________________

 

Signature:____________________________________________________________________________

 

Reason:______________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________



 

_______________________________________ __________________

Purchasing Card Program Coordinator Date