HomeMy WebLinkAboutAO 79 Use of City Credit Card 06162004 Superseded • CITY of PASCO
ADMINISTRATIVE ORDERS
Administrative Order No. 79
Administrative & Community Services Department
Initial Effective Date:
Subject: Use of City Credit Cards 4/07/00
Revised 6/16/04
Approved
I. PURPOSE: To establish a policy and procedure related to the authorization, control and use of
the credit cards issued to the City of Pasco.
II. DEPARTMENTS AFFECTED: All .
III. REFERENCES : RCW 42 .24. 115 and RCW 43 .09.2855 .
IV. POLICY: The City of Pasco finds that the use of credit cards is a customary and economical
• business practice to improve cash management, reduce costs, and increase efficiency.
V. PROCEDURE :
A. Setting Up Account: The Administrative Services Manager will be responsible for setting
up a credit card account with an appropriate banking facility, for each City department
with a credit limit of $5,000 per account, unless the City Manager specifically approves a
higher amount, not to exceed $10,000.
B. Distribution of Credit Card(s): The number of cards issued per account will be
determined by the City Manager, or his designee.
C. Authorization and Control: Department Managers have the responsibility to assure that
credit card use is authorized, appropriate and according to these procedures.
D. Local Vendor Preference: Given the local tax benefits generated by use of Pasco
vendors (ie, property tax, utility tax and sales tax), employees are encouraged to purchase
supplies from Pasco vendors whenever possible and reasonably economical. Employees
l discouraged from traveling out of Pasco to purchase supplies unless
the
are expressly g g P
increment of savings substantially exceeds the value of their time and vehicle travel.
Electronic purchase decisions should co nsider the shipping and any other ancillary charges.
Credit cards should not be used where purchase orders or an open charge account is
available, or can be reasonably established.
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City of Pasco
Administrative Order 79: 6/16104
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E. Receipt and Payment of Bills: All credit card billing statements will be received at
Accounts Payable. The Accounts Payable clerk will coordinate with the appropriate
department to assure that all purchases are appropriately documented and bills timely paid.
F. Purchases: A receipt must be obtained for all credit card purchases. In person
purchases must be accompanied by the original signed sales receipt/invoice; purchases
made by phone must have either a receipt mailed, emailed or faxed to the employee;
internet purchases must have a copy of the on-line receipt printed at the time of purchase or
have receipt emailed to employee.
The employee who made the purchase shall immediately complete a "Credit Card Purchase
Form" (specimen copy attached), attach the receipt and forward it to their department
secretary.
Accounts Payable will forward a copy of credit card billing statement to the department
secretary for reconciliation. The department secretary will collect all receipts and will
reconcile receipts to the billing statement. The department secretary will prepare a
Payment Authorization Form for all credit card purchases and send the Payment
Authorization Form, along with all "Credit Card Purchase Forms" and receipts, to
Accounts Payable for timely payment.
• G. Non-City Charges: Non-City related charges to city credit cards are prohibited. Any
employee who willfully makes non-city charges shall be subject to disciplinary action,
including the possibility of termination.
H. Cash Advances: All cash advances on city credit cards are prohibited.
I. Unauthorized Charges: Unauthorized charges, or charges not properly identified, shall
be paid by the employee. These charges are considered liens against any amount owed by
the city to the employee, and may be withheld by the city from funds owed to the
employee up to the amount of the disallowed charges and interest at the same rate as
charged by the company which issued the charge card (RCW 42.24. 115(3)).
J. Annual Fee: Annual credit card fees shall be paid by the respective department.
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