City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
That the City Council adopt a Resolution amending Council Policy Statement
Number 4209, entitled “Executive/Purchase Cards;” rescinding Council Policy
Number 4205, “Use of Credit Cards;” and rescinding Resolution No. 2002-R028.
BACKGROUND/DISCUSSION:
On January 23, 1995, City Council approved twenty-seven (27) City Council policies
with the passage of Resolution 95-R005. This Resolution included Council Policy
Number 4205, “Use of Credit Cards” (Attachment 1). On December 16, 1996,
Council Policy Number 4209, “Executive/Purchase Cards Policy,” (Attachment 2)
was established. It was later revised on March 25, 2002.
The Executive/Purchase Cards Policy is a stand alone Council Policy that did not
replace Council Policy 4205, “Use of Credit Cards”. At the time, the staff report
recommending adoption of the Executive/Purchase Cards Policy sought to improve
the efficiency and control of purchasing practices for low-priced items in lieu of the
administrative burden associated with using petty cash. Alternatively, the “Use of
Credit Cards” Policy was adopted to facilitate business travel, lodging, and meal
expenses.
The proposed policy combines the Credit Card Policy and Executive/Purchasing
Card Policy to form one consistent policy. For this reason, staff recommends that
the proposed Executive/Purchase (Credit) Card Policy replace the “Use of Credit
Cards” Policy. The remainder of this report refers only to the Executive/Purchase
(Credit) Card Policy.
Meeting Date: 11/7/05 Item Number: A-9
AGENDA ITEM: Consideration of Adoption of a Resolution Amending Council
Policy Number 4209, “Executive/Purchasing Cards;” Rescinding Council Policy
Number 4205, “Use of Credit Cards;” and Rescinding Resolution No. 2002-R028.
Contact Person/Dept.:
Nick Kimball, Management Analyst
Phone Number:
(310) 253-5682
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification:
Master Notification List (11/2/05)
Department Approval:
Jerry Fulwood 11/1/05
CAO Approval:
Jerry Fulwood 11/1/05
City Controller Approval:
N/ACity of Culver City, California
City Council Agenda Item Report
Currently, the City Treasurer’s Office, Purchasing Division and Approving Official,
such as a Department Head or Manager, review all Purchase Card expenses.
Prohibited purchases are listed in the current policy and card use is limited to
employees whose names appear on the Purchase Card.
The purpose of amending the Executive/Purchase Cards Policy is to create one
consistent policy, increase employee accountability for expenses, further delineate
responsibility for oversight of card expenses and issuance, and provide limited
exceptions of card use to meet departmental needs.
Development of Policy
In developing the proposed amendments to the policy, staff reviewed current policies
and procedures, evaluated past practice, and contacted other cities to obtain
information about similar policies.
Information regarding purchasing card programs was gathered via an email survey
using the Municipal Management Association of Southern California (MMASC) list
serve. Staff also conducted phone interviews with Beverly Hills, Santa Monica, and
West Hollywood and reviewed credit card policies mailed from other cities.
The proposed policy amendments were presented to the Budget Subcommittee on
four occasions between June 2004 and August 2005. At these meetings,
subcommittee members and a number of Department Heads reviewed the policy
and suggested revisions. Staff incorporated the input received from the
subcommittee members into the proposed policy.
Proposed Policy
The following amendments, suggested by the Budget Subcommittee and staff, have
been incorporated into the proposed Executive/Purchase (Credit) Cards Policy
(Attachment 3, Exhibit A):
1. Approving Official
a. Current Policy: The Approving Official is responsible for reviewing
charges to ensure that purchases are appropriate, comply with applicable
policies, and are properly documented.
b. Proposed Policy: Language is added to more explicitly define who may be
an Approving Official, including Department Heads or a manager or
supervisor that has been given authority by the Department Head. The
City Treasurer’s Office is responsible for reviewing Department Head and
CAO Executive/Purchase card purchases.City of Culver City, California
City Council Agenda Item Report
2. Executive/Purchasing Card Eligibility and Issuance
a. Current Policy: Requests for Executive/Purchasing cards must be
approved by the Responsible Official (i.e. CAO, Department Heads, City
Clerk and City Treasurer) on a case-by-case basis.
b. Proposed Policy: The administrative process is streamlined by
establishing a list of positions within each department that are eligible for
an Executive/Purchase card. The initial list was compiled by reviewing the
current list of employees that have an Executive/Purchasing Card and
soliciting feedback from Department Heads regarding which positions
require a Purchase card. Once the proposed eligibility list is approved,
amendments to the list must be approved by the Council. Additionally, it is
the responsibility of the department to notify the Purchasing Office if an
eligible position has been reclassified or has received a title change.
3. Use of Executive/Purchasing Card
a. Current Policy: There are a number of provisions that govern the
acceptable use of Executive/Purchasing cards, including restricting the
use of the card the employee whose name is embossed on the card.
b. Proposed Policy: To allow flexibility for departments with multiple shifts,
language is added to allow use of the card to an employee whose name is
not embossed on the card if the employee is given authorization by the
Department Head.
c. Current Policy: The policy outlines conditions for use, telephone order
and online purchase procedures, and documentation and payment
procedures.
d. Proposed Policy: The proposed policy amends the “Telephone Order
Procedures” section and replaces it with “Telecommunications Order
Procedures.” The definition is expanded to include any form of
telecommunications, including but not limited to, telephone, cell phone, or
facsimile orders. Online purchase procedures are outlined in a separate
section of both the current and proposed policy.
e. Proposed Policy: Due to the special nature of their job, language is added
to allow K-9 Police Officers to use Executive/Purchase cards for care of
animals and other necessary related items (e.g. dog food and vet care).
f. Current Policy: A single purchase limit of $500 is imposed on Purchase
cards purchases.
g. Proposed Policy: The single purchase limit on Purchase cards is
increased to $1,000. The original single purchase limit has not been
amended since the policy was originally adopted in 1996 and is insufficient
for many current uses. For example, many employees use Purchase
cards to cover travel expenses. Often times, employees must stay
multiple nights at a hotel, exceeding the $500 limit. Employees must often
make up the difference using personal funds to be reimbursed later.City of Culver City, California
City Council Agenda Item Report
4. Other Card Restrictions
a. Current Policy: A number of purchases are prohibited, including cash
advances, personal purchases, alcoholic beverages, and fixed or
controlled assets.
b. Proposed Policy: Language is added to clarify a fixed or controlled asset
(items costing $1,000 or more), which must be delivered to the City’s
warehouse for tagging and identification. Some flexibility is added by
permitting the purchase of fixed or controlled assets, but only with prior
approval or in emergency situations.
5. Terminating Employment
a. Current Policy: Upon termination of employment, Executive/Purchase
cards must be collected from the employee and destroyed. The City
Treasurer is responsible for notifying the financial institution and closing
the account.
b. Proposed Policy: Language is added to state that employees who leave
City service will not receive their final paycheck until their Executive/
Purchase card is returned. The final paycheck is released once the bank
has confirmed that there have been no additional charges on the card
since the date of termination.
6. Miscellaneous
a. Current Policy: The term “Bank”, defined as the contractor who will issue
the cards, supply billing reports, and other billing information as needed, is
used throughout the policy.
b. Proposed Policy: The term “Bank” has been replaced with “Financial
Institution,” with the same definition.
Additional format changes are made to increase the overall clarity and flow of the
policy.
Resolution Adoption Procedures
City Council Policy 1001, entitled “Adoption of Council Policy Statements,” allows
City Council to adopt policies as a means to establish policies not already covered
by ordinances, and to supplement or complement other resolutions or policies
already in existence. The policies adopted cannot conflict with any ordinance or
resolution of the City and require four affirmative votes of the City Council to become
effective. The Council may also direct the creation or modification of a policy.
The resolution drafted to amend the Executive/Purchase Cards Policy would rescind
previous resolutions affecting only this policy. Adopting this resolution would cancel City of Culver City, California
City Council Agenda Item Report
previous versions of the policy and enact the amended draft of the policy presented
for your consideration.
FISCAL ANALYSIS:
The proposed amendment to the Executive/Purchase Cards Policy increases the
single purchase limit for Purchase cards from $500 to $1,000. This increase reflects
the total overall increase in the cost of doing business since the original policy was
adopted. If a single purchase exceeds $500, employees are being reimbursed in
some other manner (e.g. petty cash, submitting a reimbursement request, etc.);
therefore, the proposed increase of the single purchase limit should not create any
additional financial burden to the City, rather the administrative process for
employees would be streamlined and employees would be reimbursed in a more
timely manner.
ATTACHMENTS:
1. Current Council Policy Number 4205, “Use of Credit Cards”
2. Current Council Policy Number 4209, “Executive/Purchasing (Credit) Cards”
3. Proposed Resolution Number 2005-R___
Exhibit A: Proposed “Executive/Purchasing (Credit) Cards” Policy
MOTION:
That the City Council:
1. Adopt the Resolution amending Council Policy Statement Number 4209,
entitled “Executive/Purchase Cards;” rescinding Council Policy Number 4205,
“Use of Credit Cards;” and rescinding Resolution No. 2002-R028.
OR
2. Discuss this item and provide further direction to staff.
(A 4/5ths affirmative vote is needed to adopt the resolution and enact the policy)
11/7/05
Consideration of Adoption of a Resolution Amending Council Policy
Number 4209, ' Executive/Purchasing Cards," Rescinding Council Policy
Number 4205, "Use of Credit Cards, and Rescinding Resolution No
2002-R028
MEETING DATE
AGENDA ITEM
ATTACHMENTS
Pages
1 Current Council Policy Number 4205, "Use of Credit Cards' 1 - 3
2 Current Council Policy Number 4209, "Executive/Purchasing Cards" Policy 4 - 20
3 Proposed Resolution Number 2005-R 21 - 43
Exhibit A Proposed ' Executive/Purchase (Credit) Card Policy'ATTACHMENT 1
CITY OF CULVER CITY
COUNCIL POLICY STATEMENT Policy Number 4205
General Subject Personnel Date Issued 1/23/95
Specific Subject Use of Credit Cards Effective Date 1/24/95
Resolution No 95-R005
PURPOSE
To establish policy regarding the issuance of credit cards to selected City staff, and to
establish policy regarding the authorized uses of credit cards
STATEMENT OF POLICY
The City may issue credit cards to certain employees to facilitate purchases relating to
City business travel, lodging, meals, and miscellaneous expenditures in lieu of petty cash
However, this policy shall not authorize purchases m violation of Culver City Municipal
Code Section 2-53, et seq (hereafter, "the Purchasing Ordinance")
All credit card expenditures are the personal responsibility of the employee to whom the
card was issued, until such expenses or purchases have been approved and accepted by
the City Clerk for payment with City funds, as detailed below
The employee to whom the card has been issued may authorize use of the card for
expenses incurred by subordinates, but he/she retains personal responsibility and
accountability for such expenses
PROCEDURES
The Chief Administrative Officer is authorized to establish a list, to be reviewed and
updated annually, of employees who may be authorized to receive credit cards The City
Treasurer will issue credit cards to those authorized employees who request issuance in
writing Acceptance of the credit card will be considered acceptance of the responsibility
and accountability for its use and payment of charges thereon
Authorized purchases may include|109| Travel Registration, lodging, transportation, meals and related expenses
pursuant to Council Policies regarding employee, Council or Commission
business travel and pursuant to approved Travel Authorization forms|109| Meals Expenses incurred for meals while attending meetings on
authorized City business or for the necessary entertainment of City businessguests (e g, lunches for examination raters 'from other agencies) Refer to
Council Policy regarding authorized meal expenditures|109| Miscellaneous purchases in lieu of petty cash Generally, supply items and
equipment which do not exceed $25 00 in total value However, with specific
approval of the Chief Administrative Officer, this may include emergency
purchases, or purchases of items otherwise planned and included in the City
budget which can be acquired at a significant savings to the City by use of the
credit card Appropnate purchasing documentation must be provided following
the emergency or expedited purchase to conform to the requirements of the
Purchasing Ordinance
Payment procedures for credit card expenses are reconciled according to the nature of the
expense For example, use of the Credit card for business travel expenses is partially
reconciled when the employee submits the Statement of Expenses form and copies of all
credit card receipts, along with other supporting documentation, upon return from the
authorized travel ( See Council policy regarding travel expenses)
When the monthly credit card bill is received it will be forwarded to the authorized user
The original credit card receipts must be retained and submitted to the City Clerk on a
requisition for payment, with a brief report noting the travel purpose previously
reconciled through the Statement of Expenses for travel The department should note the
appropriate account to which the charges will be assessed
If personal expenses were incurred and paid by City credit card, the employee must repay
the City He/she must submit a check to the City when he/she returns from the travel and
obtain a receipt from the City Treasurer's office That cash receipt should be submitted to
the City Clerk with the payment requisition for the monthly credit card expenses on
which the charge appears If the personal expense appears on a credit card receipt for
otherwise authonzed travel expenses (e g , movie charges on hotel bill), the difference
should be noted on the Statement of Expenses form submitted to Personnel as well
cc1p4205
page 2 of 3When the City credit card is used to pay for meeting or meal expenses on City business
or for purchases in lieu of petty cash, the employee must submit the receipt with a brief
report identifying the business purpose, date, the persons included in the expense, and/or
the item(s) purchased and the reason for the purchase This information should be
attached to the monthly credit card statement when submitted to the City Clerk
Upon receipt of the monthly credit card statement, receipts and documentation, the City
Clerk will examine all required supporting information If the documentation is
incomplete, it will be returned to the employee/cardholder for additional information
When complete, the City Accountant will review the statements and determine that the
expenses are authorized according to this and other Council policies He/she may
approve for payment, contact the employee for more information, or recommend the City
Clerk reject the payment for failure to comply with policy The Department Head or
responsible person will be notified of a pending decision to reject payment, and may
discuss that recommendation with the City Clerk and CAO
If payment is rejected, the responsible employee shall be notified and payment to the City
shall be required within ten (10) business days
cc1p4205
page 3 of 3ATTACHMENT 2
CITY OF CULVER CITY
COUNCIL POLICY STATEMENT
Policy Number 4209
General Subject Purchasing and Procurement
Date Issued 3/25/02
Specific Subject Executive/Purchasing (Credit) Cards
Effective Date 3/25/02
Resolution No 2002-R
PURPOSE
The purpose of this policy/procedure is to establish those guidelines under which City
programs shall control the use of Executive/Purchasing Cards that will be assigned to and
utilized by selected City employees to purchase goods and services, on behalf of the City
This policy/procedure is intended|109| To provide a convenient method of buying that reduces the need for
purchase orders|109| To ensure that the purchases made with the executive/purchasing card are
accomplished m accordance with the City's ordinances and procedures|109| To ensure appropnate internal controls are established,|109| To ensure that the City bears no legal liability from inappropnate use of
executive/purchasing cards
SCOPE
This policy/procedure will be applicable to those City Departments that have selected
employees to use executive/purchasing cards to purchase goods, services or for specific
expenditures incurred under the conditions approved by this policy
BACKGROUND
The City has used various methods to accomplish the purchase of goods and services To
promote vendor acceptance and operational efficiency, the Purchasing Division of the
City Treasurer's Office initiated the purchasing card program
Executive/purchasing cards differ from traditional credit cards in the unique controls
which have been developed for this program These controls ensure that the
executive/purchasing card can be used only for specific purposes and within specific|1010| ca24209
PRINTED ON RECYCLED PAPERdollar limits In addition, certification of all purchases is required by each cardholder, and
there must be verification by the Approving Official before payment is made
CARD TYPES
Executive Cards — The executive card, a credit card, is for the purpose of procuring goods
and services This card may have a higher single purchase limit and/or broader scope of
goods and services
Purchasing Cards — The purchasing card, a credit card, is issued to selected employees for
the purposes of purchasing goods and services
GENERAL INFORMATION|109| Bank
The bank is the executive/purchasing card contractor who will issue the cards,
supply billing reports, and other billing information as needed|109| The Executive/Purchasmg Card
The executive/purchasing card will have the individual's name, City's account
number and expiration date|109| Purchasing Division
Under the delegation of authority of the City Treasurer, the Purchasmg Division
will administer the purchasing card program and will be responsible for
determining the need for individual cards The Purchasing Division will also be
responsible for accumulating, reporting and coordinating all reports to the
Departments, Accounting Division, Chief Administrative Officer and City
Council|109| Cardholder
The cardholder is responsible for ensuring the executive/purchasing card is used
appropriately At a minimum, all purchases must be within all applicable policies
and procedures Improper or illegal use will result in termination and possibly
criminal prosecution All cardholders will be responsible for their
executive/purchasing card The cardholder is responsible for notifying the bank
and City should an executive/purchasing card become lost or stolen|109| Responsible Official
The Chief Administrative Officer, Department heads, department level staff, City
Clerk and City Treasurer are "Responsible Officials" The Responsible Official
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S.will approve each request for executive/purchasing cards The Responsible
Official may act as or appoint an Approving Official(s)|109| Approving Official
The Approving Official is responsible for reviewing the charges to ensure that the
purchases are appropriate, comply with all applicable policies and are properly
documented|109| Cardholder spending limits
a The delegation of authority that has been provided to each cardholder sets
the maximum dollar amount for each single purchase (single purchase limit), and
a total for all purchases made with an executive/purchasing card within a given
billing cycle (30-day limit) Each time a cardholder makes a purchase with his/her
executive/purchasing card, these limits will be checked, and the authorization
request will be declined should they be exceeded
The general limits are as follow
Executive Card
Single Purchase Limit — Not to exceed $5,000
30-day Limit — Not to exceed $20,000
Purchasing Card
Single Purchase Limit- Not to exceed $500
30-day Limit - Not to exceed $15,000
b The limits may be lowered at the request of the Responsible Official with
the concurrence of the Purchasing Officer
c Occasionally, a unique situation may require a purchase over a cardholder's
established limits When a cardholder makes such a request, it must be approved
by the City Treasurer with the concurrence of the Purchasing Officer The City
Treasurer will contact the Bank to temporarily increase the cardholder's spending
limit(s)|109| Use of the Executive/Purchasing Card
a The executive and purchasing cards are to be used for City purchases
ONLY It has a broad range of acceptance by retailers
b Cardholder Responsibility The executive/purchasing card that the
cardholder receives has his/her name embossed on it and may be used only by that
cardholder No other person is authorized to use the card
co,P4209
PRINTED ON RECYCLED PAPERConditions for use Use of the card must meet the following conditions
(1) Except for authorized use on City business travel for transportation,
accommodations and meals, the total single purchase to be paid for using the
card may be comprised of multiple items and cannot exceed the authonzed
single invoice limit Purchases will be denied if the authorization single
purchase limit is exceeded Payments for purchases are not to be split in
order to stay within the single purchase limit
(2) All items purchased over the counter to be paid for, using the card,
must be immediately available No back ordenng is allowed
(3) All items purchased by telephone order that will not be confirmed with
a written order and be paid for using the card must be delivered by the
merchant within the 30-day billing cycle The order should not be placed
without this assurance
(4) All items purchased during one (1) telephone transaction that will not
be confirmed by a written order must be delivered m a single delivery If an
item is not immediately available, no back ordering is allowed
d Telephone Order Procedures
(1) "Telephone Orders", as used in these instructions, means an agreement
that is made by telephone No written purchase order or contract is issued by
the City The supplies or services are provided by the vendor and payment is
made using the executive/purchasing card
(2) Oral procedures may be used to acquire supplies or services that can
be described in sufficient detail so that the parties to the agreement have a
clear understanding of what is being ordered
(3) When placing a telephone order to be paid using the
executive/purchasing card, cardholder will
(a) Confirm that the vendor agrees to charge the
executive/purchasing card when shipment is made so that receipt of
supplies may be certified on the monthly Statement of Account
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PRINTED ON RECYCLED PAPER(b) Instruct the vendor to include the following information on the
shipping document or packing slip This information will alert the
receiving clerk, that the supplies have been purchased with the
executive/purchasing card
Cardholder name and division
Street address, City and State
Cardholder Telephone Number
The term "Purchasing Card"
(4) A log should be used to document or record telephone
executive/purchasing card orders (see Attachment 3) The documentation
should be held until the monthly billing statement is received and then
attached to the statement when it is submitted to the Approving Official
e On Line Purchase Procedures
(1) "On Line Purchase", as used in these instructions, means a purchase
made over the World Wide Web No written purchase order or contract is
issued by the City The supplies or services are provided by the vendor and
payment is made using the executive/purchasing card
(2) Typically these purchases are made by filling out a form on line which
describe what is being ordered
(3) When placing an order on line to be paid using the
executive/purchasing card, cardholder will 1
(a) If possible, include the following information in the special
instructions section of the on line order form
Cardholder name and division
Street address, City and State
Cardholder Telephone Number
The term "Purchasing Card"
(b) Confirm that the vendor has accepted the charge to the
executive/purchasing card so that receipt of supplies may be certified
on the monthly Statement of Account
(c) Print out the on line invoice, if provided by the vendor If an on
line invoice is not available, print out the order confirmation or invoice
sent via e-mail by the vendor
%
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PRINTED ON RECYCLED PAPER(4) On line invoices and/or e-mail confirmations must be retained and be
submitted as attachments to the monthly billing statqinent when it is
submitted to the Approving Official
f Documentation, Reconciliation and Payment Procedures
(1) Documentation Any time a purchase is made that will be paid using
the card, whether it's done over the counter or by telephone, a document
must be retained as proof of purchase The documents will later be used to
verify the purchases shown on the cardholder's monthly statement
(a) When a purchase is made over the counter the cardholder is to
obtain a customer copy of the charge slip, which will become the
accountable document (make sure all carbons are destroyed)
(b) When making purchases by telephone, the cardholder is to
document the transaction on a log (see Attachment 3) and attach any
shipping documents associated with the order
(2) Missing Documentation If for some reason the cardholder does not
have documentation of the transaction to send with the statement, he/she
must attach an explanation that includes a description of the item, date of the
item, date of purchase, merchants name and reason why there is no
supporting documentation|10 9| Card Restrictions
The following list covers purchases for which executive/purchasing card use is
prohibited
• Cash advances through bank tellers or automated teller machines
• Purchase of personal items
• The purchase of alcoholic beverages
• Fixed or controlled assets
10 Payment and Invoice Procedures
a Purchases made by employees will be paid by Accounts Payable once the
cardholder certification and Approving Official verification has been completed,
and account coding assigned for each transaction
b The Bank will provide one (1) copy of the billing statement to the
cardholder and one (1) copy to the Purchasing Officer at the end of the billing
cycle The copy of the statement will be mailed to the individual cardholder This
is called a "Statement of Account" and will have a listing of all items processed in
the previous thirty (30) days
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c The "Statement of Account" requires the cardholder to review the statement
and to note any errors on the bill The cardholder attaches to the statement copies
of the receipt(s) (sales drafts) received at the time of purchase He/She signs the
statement certifying items purchased, assigns account numbers to each item and
forwards them to the Approving Official within three (3) working days after it is
received
d The Approving Official reviews statements from cardholders and verifies
approval of purchases The Approving Official signs the statement and forwards it
to Accounts Payable within one (1) working day
e The Bank will issue the "Statement" the same day each month It will be the
responsibility of the cardholder to provide the Approving Official with the
receipts for that month should they be on extended leave and not able to complete
the statement The Approving Official will complete the copy of the statement for
the absent employee and the statement will be forwarded to Accounts Payable
with the rest of the cardholder statements The original cardholder statement will
be signed by the employee at the time he/she returns
f The Approving Official will be responsible for receiving completed
statements from all cardholders assigned to them, reviewing the statement
resolving any or all questions on the purchases, signing the statements, and
forwarding complete cardholder statements with all attachments to Accounts
Payable within one (1) working day after receipt from the cardholders Should the
Approving Official not receive all of the statements, it will be their responsibility
to contact the cardholders and have the statement completed at once All
Statement of Accounts should be received by Accounts Payable at the same time
If, however, one or more statements are for some reason not received, the
remaining statements should not be held while that one or more is being verified
Note If a cardholder had no purchase activity on his/her executive/purchasing
card for a particular billing cycle, no Statement of Accounts will be generated for
that cardholder (unless adjustments for the previously billed transaction are
processed during that cycle)
11 Approval
Approval of the transactions that cardholders have made using the
executive/purchasing card will not be totally defined in this Council Policy
Approving Officials, because of their knowledge of the job responsibilities of
cardholders are required to look at each cardholder's purchases and at the
merchant who made the sale in order to determine if these items were for official
use, and if they were items allowed to be purchased in accordance with the
instructions provided If for any reason the Approving Official questions the
purchase(s), it is their responsibility to resolve the issue with the cardholder If
they cannot be satisfied that the purchase was necessary and for official use, thencup4209
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the cardholder must provide a credit voucher proving items had been returned for
credit of the purchase Resolution for improper use of the executive/purchasing
card will be the responsibility of the Approving Official, disciplinary action for
misuse will be the responsibility of the Responsible Official
12 Disputes
a If items purchased with the executive/purchasing card are found to be
defective or the repair or service faulty, the cardholder has the responsibility to
return item(s) to the merchant for replacement or to receive a credit for faulty or
defective service If the merchant refuses to replace or correct the faulty item,
then the purchase of the item will be considered to be in DISPUTE
b A disputed item should be noted on the cardholder's Statement of Account
In addition, a "cardholder's statement of questioned item(s)" (see Attachment 1)
must be completed by the cardholder with appropriate documentation attached, if
necessary This form shall be forwarded with the statement through the
Approving official to Accounts Payable for adjustment with the Bank Once the
Bank has been notified, Accounts Payable will notify the cardholder and
Approving Official of the action taken on the disputed item(s)
c It is essential that the time frames and documentation requirements
established by the Bank be followed to protect the cardholder's rights in dispute
Dispute policies and procedures by the Bank will be provided at the time the
executive/purchasing cards are issued to the cardholders
13 Request for Initial, Additional or Changes to Executive/Purchasing Cards
a All requests for new executive/purchasing cards will be made by submitting
a "Request for Executive/Purchasing Card" form (see Attachment 2) The form
will be processed through the Purchasing Division who will forward it to the City
Treasurer who in turn will submit the request to the Bank
b All requests for executive/purchasing cards must be approved by the
Responsible Official
c When the Purchasing Division receives the executive/purchasing card from
the Bank, it will require the cardholder to personally sign for their
executive/purchasing card The Purchasing Division will notify the appropriate
Approving Official and Accounts Payable of the issuance of an
executive/purchasing card to an employeeca,p4209
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14 Semiannual Inventory of Executive/Purchasing Cards
On a semiannual basis, the Purchasing Division will provide a list of
executive/purchasmg cards issued to employees for each Department The
Departments will conduct a physical inventory of executive/purchasing cards and
report the results to the Purchasing Division
15 Lost or Stolen Executive/Purchasing Cards
a Should any employee lose or have his/her executive/purchasing card stolen,
it is the responsibility of the cardholder to immediately notify the Bank and the
Purchasing Officer of the loss The telephone number of the Bank will be
provided when the executive/purchasing card is issued to the cardholder
b In addition to notifying the Bank, the cardholder must notify their
Responsible Official and Purchasing Officer WITHIN ONE WORKDAY after
the discovery of the loss or theft of the card The Responsible Official will be
required to submit a written report to the City Treasurer WITHIN 5
WORKDAYS that will include the complete information on the loss, the date the
loss was discovered, the location where the loss occurred, if known, the purchases
that the cardholder made prior to the loss, and any other information that may be
considered as needed
16 Terminating Employee
a Executive/purchasing cards are issued to individual employees If an
employee leaves the City, their card must be collected and destroyed The
Approving Official will be responsible for collecting the card and turning it over
to the Purchasing Officer who in turn will turn the card over to the City Treasurer
The City Treasurer will destroy the card and notify the Bank
b Should a cardholder be transferred within the City to another
department/division, the Responsible Official of the new department will
determine if the executive/purchasing card is still warranted If so, the cardholder
will be assigned to an Approving Official within the new department/division
c In the event the Approving Official is not -able to collect the
executive/purchasing card when the employee leaves the City, the Approving
Official will notify the City Treasurer immediately The City Treasurer will
contact the Bank and void the card The Approving Official will also notify the
Purchasing Officer and the employee to prevent any purchases after the employee
leavesATTACHMENT 1
CITY OF CULVER CITY
Cardholder Statement of Questioned (Disputed) Item
TO Accounts Payable
THRU (Approving Official)
FROM (Cardholder)
SUBJECT Questioned Item on Executive/Purchasing Card Statement
The following item(s) listed on Statement of Account is disputed
Date of Statement of Account
Item(s) Disputed
Reason Provide information as to why item(s) does not meet your
requirements Indicate actions requested of merchant, reasons
merchant refused to correct dispute, and any other information that is
available to assist the Purchasing Division to negotiate dispute
Action Requested Return item and obtain credit
Exchange for same item
Exchange for different model, brand, etc w/applicable
reduction/increase in cost (This action will require prior approval
from cardholder if cost increase is required )
Other Comments
Date (Cardholder's Signature)
ca,p4209
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CITY OF CULVER CITY
Request for Executive/Purchasing Card
DATE
TO Mark Ambrozich, City Treasurer
FROM
SUBJECT Request for Executive/Purchasing Card
Request the following employee be authorized for an Executive/Purchasing Card
Full Name- (PRINT)
Signature
Title
Phone Extension
Last four digits of Social Security Number Cardholder Conditions
Executive Card
Single Purchase Limit (not to exceed $5,000)
30-day Limit (not to exceed $20 000)
Purchasing Card
Single Purchase Limit (not to exceed $500)
30-day Limit (not to exceed $15,000)
Annual Fee of $35 00 (maximum amount)
Name of Responsible Official - (please print)
Signature of Responsible Official
P4
CCLP4209
PRINTED ON RECYCLED PAPERCITY OF CULVER CITY
EXECUTIVE/PURCHASING CARD
CARDHOLDER INSTRUCTIONS
1 PURPOSE To provide general instructions on the proper use of the City
Executive/Purchasing Card
2 BACKGROUND
a The City has used various methods to accomplish the purchase of goods and
services To promote vendor acceptance and operational efficiency, the
Purchasing Division initiated the City Executive/Purchasing Card program
b A number of unique controls have been developed for the Executive/Purchasing
Card program that do not exist in a traditional credit card environment These
controls ensure that the card can be used only for specific purchases and within
specific dollar limits In addition, certification of all purchases is required by each
cardholder, with verification performed by the Approving Official, within the
cardholder's department/division, before the bill is submitted to Accounts Payable
for payment
3 GENERAL INFORMATION
a The unique Executive/Purchasing Card that you receive has your name embossed
on it and the City of Culver City No member of your department/division/section,
your family, or anyone else may use this card It has been specially designed to
avoid confusing it with your personal credit cards In all other respects, this is
considered a regular credit card HOWEVER, THIS CREDIT CARD MUST
NOT BE USED FOR PERSONAL PURCHASES!
b It is MANDATORY that you attend training on the use of the cards
The City limit for executive card is $5,000 per single purchase and $20,000
within 30 days and for purchasing card is $500 per single purchase and $15,000
within 30 days (except as may be specifically authorized for some Management
officials)
d The Request for Executive/Purchasing Card is forwarded to the Purchasing
Division in order to obtain the Executive/Purchasing Card Each card will be
charged an annual fee of $35 00
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ICca,P4209
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When the Executive/Purchasing Card is received by the Purchasing Division, you
will be called to personally sign for the card
f Each time you use the Executive/Purchasing Card, the merchant may check via a
telecommunications system to verify your dollar limit of your single purchase and
monthly purchases limit You will receive a statement of your purchases on the
same date each month
g The Executive/Purchasing Card is a supplement to departmental purchase orders
As with the other purchasing methods, the following conditions must be met
when using the Executive/Purchasing Card
(1) Each single purchase may be comprised of multiple items, but the total
cannot exceed the single purchase dollar limit on your credit card
(2) The least expensive item that meets your basic needs should be sought
(3) Cardholders must follow their department's procedures to ensure that
sufficient funds are available prior to making purchase
h The Bank will not request any personal information from cardholders, nor should
any personal information be furrnshed to the Bank
Use of the Executive/Purchasing Card does not relieve the cardholder from
complying with City purchasing policies and procedures If you have questions
about procurement regulations, please contact the Purchasing Division
Use of the Executive/Purchasing Card is not intended to replace effective
procurement planning
k Purchases must not be split to circumvent purchasing regulations
1 If your Approving Official questions a purchase made with your
Executive/Purchasing Card, you must be able to explain the nature of the
purchase If you cannot substantiate that the purchase was necessary and for
official use, your department will address improper use of the
Executive/Purchasing Card and resulting disciplinary action will be handled
directly with your Responsible Official
Questions regarding your account or specific Executive/Purchasing Card
procedures should be directed to the Purchasing Division4 PROCEDURES
a You will be notified by the Purchasing Division when your Executive/Purchasing
Card is received You will be required to sign for the Executive/Purchasing Card
b Activate the card by removing CCRV (Credit Card Receipt Verification)
Instructions are on the back of the card
You may use your Executive/Purchasing Card at any merchant which accepts
credit cards for payment of purchases You may find that some of the suppliers,
especially wholesalers, do not currently accept credit cards
d Once you have selected your purchases, present them and your card to the
merchant
e The merchant will complete a sales draft, which includes the following
information
(1) Imprint of your card, including card number expiration date, and your name
(2) Date and amount of purchase
(3) Brief description of item(s) purchased
(4) Imprint of merchant name and identification
f As the sales draft is being completed, the merchant will obtain authorization for
the transaction via either a telephone call or direct telecommunication link to the
credit card authorization network The merchant will obtain an authorization
number (as long as the purchase is within the limits established for your card)
g The merchant will request that you sign the draft Before you do, venfy that the
dollar amount is correct and that sales tax has been included
h You will be provided one copy of the signed sales draft This copy should be kept
and venfied against your monthly Statement of Account, and attached to your
certified Statement of Account when forwarded to your Approving Official
The remaining copies the sales draft are used by the merchant, one copy to retain
for records, and one copy to deposit with their financial institution to receive
payment for the purchase amount
cup4209
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a If you are making a telephone order with your purchasing card, you must log all
orders on the Record of Telephone Executive/Purchasing Card Orders form
b When placing a telephone or mail order, you will be asked to provide your name,
card number, expiration date on the card and an address
Telephone back ordenng is not allowed
6 CARD RESTRICTIONS
The following list covers purchases for which Executive/Purchasing Cards use is
prohibited
- Cash advances through bank tellers or teller machines
- Purchase of personal items
- Purchase of alcoholic beverages
Department specific regulations, or City travel policy, may add further restrictions to
this list
7 PROCEDURES AFTER PURCHASE
a At the close of each billing cycle, you will receive a "Statement of Account" The
statement will itemize each transaction which was charged to your
Executive/Purchasing Card account Upon receipt of the Statement, complete
each of the actions listed below
(1) Review the Statement for accuracy
(2) Indicate the accounting code for each transaction on the Statement
(3) Attach copies of the sales receipts to the Statement
(4) Submit completed statement to the Approving Official within three (3) days
The Approving Official must submit the Statement to Accounts Payable
within one (1) day
b If you have returned an item purchased, attach the credit voucher to the Statement
on which the credit appears
If an item is found to be unacceptable, try to resolve the problem with the
merchant first It is the responsibility of the cardholder to make the first contact
with the vendor in order to resolve any problem If the merchant refuses to issue a
1%
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credit voucher, the form "Cardholder Statement of Questioned Item" must be
completed and forwarded to the Purchasing Division
d If you are charged for an item incorrectly, provide a complete explanation of the
error on the Statement Also, complete the form "Cardholder Statement of
Questioned Item" Your Approving Official will forward this form through the
Purchasing Division to the Bank for adjustments
Please note that there are specific time frames established in which reversals of
charges may be processed If conditions occur as noted in items C and D (above),
the "Cardholder Statement of Questioned Item" must be forwarded to Purchasing
Division as soon as possible to ensure compliance with these time frames
In addition to these time frames, Executive/Purchasing Card regulations often
require certain written documentation from you before a reversal can be
processed Information on the "Cardholder Statement of Questioned Items" form
will assist you in identifying the specific documentation that is required For
additional information regarding individual transaction reversal requirements,
please contact the Purchasing Division
If you have questions regarding the information on the "Cardholder Statement of
Questioned Item" form, or if you have any problems regarding the reversal of a
transaction, please contact the Purchasing Division staff at Extension 6450
f If you will not be available to sign your Statement of Account because of leave or
travel, forward all sales receipts and credit vouchers to your Approving Official
The Approving Official will forward a copy of your Statement of Account to the
Purchasing Division
8 LOST OR STOLEN CARDS
Immediately notify your Approving Official, City Treasurer, and the Bank If
appropriate, the Police Department should be notified depending on the situation, i e,
Robbery, Burglary, etc The following telephone number may be used for the credit
card issuer
24 HOURS - ANY DAY OF THE WEEK
1-800-305-7735
Provide the following information to your Approving Official and City Treasurer
your complete name, card number, and the date reported to the police, Bank was
notified, and any purchase(s) made on the day the card was lost or stolen A new card
will be reissued by the credit card issuer within five (5) business days from the time
that you reported the loss or theft A new account number will be assigned to your
new cardIt is important that you notify the Bank, your Approving Official and the Purchasing
Division of the loss or theft of a card immediately
9 CHANGES TO CARDHOLDER INFORMATION
a Changes to a cardholder's name, address or department/division, should be
immediately reported by memo to the Purchasing Division through your
Approving Official The Purchasing Division will request the card issuer to issue
a new credit card if needed
b If you move to another department/division within the same City, you should
check with your Approving Official before moving to see what changes may be
required
to
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RESOLUTION NO 2005-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, AMENDING CITY COUNCIL
POLICY STATEMENT NO 4209, ENTITLED
"EXECUTIVE/PURCHASING (CREDIT) CARDS,"
RESCINDING COUNCIL POLICY NO 4205, USE OF
CREDIT CARDS," AND RESCINDING RESOLUTION 2002-
R028
WHEREAS, the City of Culver City is a purchaser of goods and services, and
WHEREAS, it is necessary to establish guidelines and policy for
Executive/Purchasing Cards assigned to and utilized by City employees, and
WHEREAS, there is a need to adopt amendments to Council Policy
Statement No 4209, entitled, Executive/Purchasing (Credit) Cards, and
WHEREAS, amended Council Policy Number 4209 combines current Council
Policy Numbers 4205 and 4209 to form one consistent policy and Council Policy Number
4205 will no longer be necessary
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES RESOLVE as follows|109| City Council Policy Statement No 4209, entitled, "Executive/
Purchasing (Credit) Cards," which is attached as Exhibit 'A" to this resolution, is herby
adopted as amended|109| City Council Policy No 4205, 'Use of Credit Cards," is hereby
rescinded|109| Resolution No 2002-R028 is hereby rescinded
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28|109| This Resolution and Council Policy Statement No 4209 shall be
effective upon adoption
APPROVED and ADOPTED this day of 2005
ALBERT VERA, MAYOR
City of Culver City California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENIA, City Clerk
A05 00434
22
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CAROL A SCHWAB, City AttorneyEXHIBIT A
CITY OF CULVER CITY
COUNCIL POLICY STATEMENT
Policy Number 4209
General Subject Purchasing and Procurement
Date Issued 3/25/02
Specific Subject Executive/Purchasing (Credit) Cards
Effective Date 3/25/02
Date Revised / /05
Resolution No 2005-R
PURPOSE
To establish those guidelines under which City Departments shall control the use of
Executive/Purchasing cards that will be assigned to and utilized by selected City
employees to purchase goods and services, on behalf of the City
This policy is intended|109| To provide a convenient method of buying that reduces the need for
purchase orders|109| To ensure that the purchases made with the Executive/Purchasing card are
accomplished in accordance with the City's ordinances and procedures|109| To ensure appropnate internal controls are established|109| To ensure that the City bears no legal liability from mappropnate use of
Executive/Purchasing cards
STATEMENT OF POLICY
This policy will be applicable to those City Departments that have selected employees to
use Executive/Purchasing cards to purchase goods or services or for specific expenditures
incurred under the conditions approved by this policy
DEFINITIONS|109| Executive Cards
The Executive card, a credit card, is for the purpose of procunng goods and
services This card may have a higher single purchase limit and/or broader scope
of goods and services, than purchasing cards Executive cards will be eligible for
use for food purchases if the employee has obtained prior authorization from the
Executive/Purchase (Credit) Card Policy
Page 1 of 21
23Department Head or his/her designee The Executive card will have the
individual's name, City's account number and expiration date|109| Purchasing Cards
The Purchasing card, a credit card, is issued to selected employees for the
purposes of purchasing goods and services The Purchasing card will have a
lower single purchase and monthly purchase limit than Executive cards
Purchasing cards will be eligible for use for food purchases only if the employee
has obtained prior authorization from the Department Head or his/her designee
The Purchasing card will have the individual's name, City's account number and
expiration date|109| Financial Institution
The financial institution is the Executive/Purchasing card contractor who will
issue the cards, supply billing reports, and other billing information as needed|109| Responsible Official
The Chief Administrative Officer, Department Heads, City Clerk and City
Treasurer are "Responsible Officials "The Responsible Official will review and
approve the list of positions eligible to receive a Purchasing card|109| Approving Official
The Approving Official is responsible for reviewing the charges to ensure that the
purchases are appropriate, comply with all applicable policies and are properly
documented The Approving Official may be the Responsible Official or a
manager or supervisor that has been given the authonty by the Responsible
Official to act as the Approving Official The City Treasurer is responsible for
reviewing charges by Department Heads and the CAO
PROCEDURES |109| Purchasing Division
Under the delegation of authonty of the City Controller, the Purchasing Division
will be responsible for accumulating, reporting and coordinating all reports to the
Departments, Accounting Division, City Controller, Chief Admirustrative Officer
and City Council
VI
Executive/Purchase (Credit) Card Policy Page 2 of 212 Cardholder
The cardholder is responsible for ensuring the Executive/Purchasing card is used
appropnately At a minimum, all purchases must be within all applicable policies
and procedures Improper or illegal use may result in termination and possibly
criminal prosecution All cardholders will be responsible for their
Executive/Purchasing card The cardholder is responsible for immediately
notifying the City Treasurer should an Executive/Purchasing card become lost or
stolen|109| Executive/Purchasing Card Eligibility and Issuance
Department Heads are responsible for compiling a list of positions within their
department that are eligible to receive a Purchasing card The list of eligible
positions (Attachment 4) shall be forwarded to the Purchasing Office and City
Treasurer for use during the procurement process
If an approved position is reclassified or experiences a title change, it is the
responsibility of the department to forward an updated eligibility list to the
Purchasing Office
Before an eligible employee is issued an Executive/Purchasing card, they must
a Submit a completed "Request for Executive/Purchasing Card" form (see
Attachment 1) to the City Treasurer The City Treasurer will make sure that
the requesting position is on the department's "eligibility list' before
submitting the request to the financial institution
b Personally sign for their Executive/Purchasing card once the Purchasing
Office receives it from the financial institution The Purchasing Division
will notify the appropriate Approving Official and Accounts Payable of the
issuance of an Executive/Purchasing card to an employee|109| Use of the Executive/Purchasing Card
a The Executive/Purchasing cards are to be used for City purchases ONLY It
has a broad range of acceptance by retailers
b Cardholder Responsibility The Executive/Purchasing card that the
cardholder receives has his/her name embossed on it and may be used only
by that cardholder No other person is authorized to use the card unless in
circumstances previously authorized by the Department Head
Executive/Purchase (Credit) Card Policy
Page 3 of 21
25Conditions for use Use of the card must meet the following conditions
(1) Except for authorized use on City business travel for transportation,
accommodations and meals, the total single purchase to be paid for
using the card may be comprised of multiple items and cannot exceed
the authorized single invoice limit Purchases will be denied if the
authorization single purchase limit is exceeded Payments for
purchases are not to be split in order to stay within the single purchase
limit
(3) All items purchased during one (1) telecommunications transaction
that will not be confirmed by a written order must be delivered in a
single delivery
(4) Police Officers assigned to the City's K9 unit are assigned Purchase
Cards for purposes of maintenance and care of trained K9 animals
Authorized purchases for such officers include food, supplies,
veterinary care, and other necessary items
d Telecommunications Order Procedures
(1) "Telecommunications Orders," as used in this policy, means an
agreement that is made by any form of telecommunications, including
but not limited to telephone, cell phone, or facsimile No wntten
purchase order or contract is issued by the City The supplies or
services are provided by the vendor and payment is made using the
Executive/Purchasing card
(2) Oral procedures may be used to acquire supplies or services that can
be described in sufficient detail so that the parties to the agreement
have a clear understanding of what is being ordered
(3)
When placing a telecommunications order to be paid using the
Executive/Purchasing card cardholder or designee will
(a) Confirm that the vendor agrees to charge the Executive/Purchasing
card when shipment is made so that receipt of supplies may be
certified on the monthly Statement of Account
(b) Instruct the vendor to include the following information on the
shipping document or packing slip This information will alert the
receiving clerk that the supplies have been purchased with the
Executive/Purchasing card
Executive/Purchase (Credit) Card Policy Page 4 of 21Cardholder name and division
Street address, City and State
Cardholder Telephone Number
The term "Purchasing Card"
(4) A log should be used to document or record telecommunications
Executive/Purchasing card orders (see Attachment 3) The
documentation should be held until the monthly billing statement is
received and then attached to the statement when it is submitted to the
Approving Official
e Online Purchase Procedures
(1) "Online Purchase," as used in this policy means a purchase made
over the World Wide Web No written purchase order or contract is
issued by the City The supplies or services are provided by the
vendor and payment is made using the Executive/Purchasing card
(2) Typically these purchases are made by filling out a form on line
which describes what is being ordered
(3) When placing an order online to be paid using the
Executive/Purchasing card, cardholder or designee will
(a) If possible, include the following information in the special
instructions section of the online order form
Cardholder name and division
Street address, City and State
Cardholder Telephone Number
The term "Purchasing Card"
(b) Confirm that the vendor has accepted the charge to the
Executive/Purchasing card so that receipt of supplies may be
certified on the monthly Statement of Account
(c) Print out the online invoice, if provided by the vendor If an
online invoice is not available, print out the order
confirmation or invoice sent via e-mail by the vendor
(4) Online invoices and/or e-mail confirmations must be retained and be
submitted as attachments to the monthly billing statement when it is
submitted to the Approving Official
Executive/Purchase (Credit) Card Policy Page 5 of 21 2 "7f Documentation, Reconciliation and Payment Procedures
(1) Documentation Any time a purchase is made that will be paid using
the card whether done over the counter or by telecommunications, a
document must be retained as proof of purchase The documents will
later be used to verify the purchases shown on the cardholder's
monthly statement
(a) When a purchase is made over the counter the cardholder is to
obtain a customer copy of the charge slip, which will become the
accountable document (make sure all carbons are destroyed)
(b) When making purchases by telecommunications, the cardholder is
to document the transaction on a log (see Attachment 3) and attach
any shipping documents associated with the order
(2) Missing Documentation If, for some reason, the cardholder does not
have documentation of the transaction to send with the statement,
he/she must attach an explanation that includes a description of the
item, date of the item, date of purchase, merchant's name and reason
why there is no supporting documentation|109| Cardholder spending limits
a The delegation of authority that has been provided to each cardholder sets
the maximum dollar amount for each single purchase (single purchase
limit), and a total for all purchases made with an Executive/Purchasing card
within a given billing cycle (30-day limit) Each time a cardholder makes a
purchase with his/her Executive/Purchasing card, these limits will be
checked, and the authorization request will be declined should they be
exceeded
The general limits are as follows
(1) Executive Card
Single Purchase Limit — Not to exceed $5,000
30-day Limit — Not to exceed $20,000
(2) Purchasing Card
Single Purchase Limit- Not to exceed $1,000
30-day Limit - Not to exceed $15,000
b The limits may be lowered at the request of the Responsible Official with
the concurrence of the Purchasing Officer
Executive/Purchase (Credit) Card Policy Page 6 of 21Executive/Purchasing cards may only be used for food purchases if prior
authorization has been obtained from his/her designee
d Occasionally a unique situation may require a purchase over a cardholder's
established limits When a cardholder makes such a request, it must be
approved by the City Treasurer with the concurrence of the Purchasing
Officer The City Treasurer will contact the bank to temporarily increase the
cardholder's spending limit(s)|109| Other Card Restnctions
The following list covers purchases for which Executive/Purchasing card use is
prohibited
Cash advances through financial institution tellers or automated teller
machines
• Purchase of personal items
• The purchase of alcoholic beverages
• Fixed or controlled assets (items costing $1,000 or more), except as
otherwise approved by the City Treasurer or in an emergency situation
If an emergency purchase is necessary, the respective Department Head
is responsible for notifying the City Treasurer and Purchasing Officer
of any fixed or controlled asset purchases as soon as possible|109| Payment and Invoice Procedures
a Purchases made by employees will be paid by Accounts Payable once the
cardholder certification and Approving Official verification has been
completed, and account coding assigned for each transaction
b The financial institution will provide one (1) copy of the billing statement to
the cardholder and one (1) copy to the Purchasing Officer at the end of the
billing cycle The copy of the statement will be mailed to the individual
cardholder This is called a "Statement of Account" and will have a listing
of all items processed in the previous thirty (30) days
The "Statement of Account" requires the cardholder to review the statement
and to note any errors on the bill The cardholder attaches to the statement
copies of the receipt(s) (sales drafts) received at the time of purchase
He/she signs the statement certifying items purchased, assigns account
numbers to each item and forwards them to the Approving Official within
three (3) working days after it is received
d The Approving Official reviews statements from cardholders and verifies
approval of purchases The Approving Official signs the statement and
forwards it to Accounts Payable within one (1) working day
Executive/Purchase (Credit) Card Policy Page 7 of 21 2,qThe financial institution will issue the "Statement" the same day each
month It will be the responsibility of the cardholder to provide the
Approving Official with the receipts for that month should they be on
extended leave and not able to complete the statement The Approving
Official will complete the copy of the statement for the absent employee and
the statement will be forwarded to Accounts Payable with the rest of the
cardholder statements The original cardholder statement will be signed by
the employee at the time he/she returns
f The Approving Official will be responsible for receiving completed
statements from all cardholders assigned to them, reviewing the statement to
resolve any or all questions on the purchases, signing the statements, and
forwarding complete cardholder statements with all attachments to Accounts
Payable within one (1) working day after receipt from the cardholders
Should the Approving Official not receive all of the statements, it will be
their responsibility to contact the cardholders and have the statement
completed at once All Statement of Accounts should be received by
Accounts Payable at the same time If, however, one or more statements are
for some reason not received, the remaining statements should not be held
while that one or more is being verified
Note If a cardholder had no purchase activity on his/her Executive/
Purchasing card for a particular billing cycle, no Statement of Accounts will
be generated for that cardholder (unless adjustments for the previously
billed transaction are processed during that cycle)
a If items purchased with the Executive/Purchasing card are found to be
defective or the repair or service faulty, the cardholder has the responsibility
to return item(s) to the merchant for replacement or to receive a credit for
faulty or defective service If the merchant refuses to replace or correct the
faulty item, then the purchase of the item will be considered to be in
DISPUTE
b A disputed item should be noted on the cardholder's Statement of Account
In addition, a "cardholder's statement of questioned item(s)" (see
Attachment 2) must be completed by the cardholder with appropriate
documentation attached, if necessary This form shall be forwarded with the
statement through the Approving official to Accounts Payable for
adjustment with the financial institution Once the financial institution has
been notified, Accounts Payable will notify the cardholder and Approving
Official of the action taken on the disputed item(s)
It is essential that the time frames and documentation requirements
established by the financial institution be followed to protect the
cardholder's rights in dispute Dispute policies and procedures by the
36
Executive/Purchase (Credit) Card Policy Page 8 of 21financial institution will be provided at the time the Executive/Purchasing
cards are issued to the cardholders
10 Semiannual Inventory of Executive/Purchasing Cards
On a semiannual basis, the Purchasing Division will provide a list of
Executive/Purchasing cards issued to employees along with the list of eligible
positions for each Department The Departments will conduct a physical
inventory of Executive/Purchasing cards and report the results to the Purchasing
Division
11 Lost or Stolen Executive/Purchasing Cards
a Should any employee lose or have his/her Executive/Purchasing card stolen,
it is the responsibility of the cardholder to immediately notify the financial
institution, the City Treasurer, and the Purchasing Officer of the loss The
telephone number of the financial institution will be provided when the
Executive/Purchasing card is issued to the cardholder
b In addition to notifying the financial institution immediately, the cardholder
must notify their Responsible Official, City Treasurer and Purchasing
Officer WITHIN ONE WORKDAY after the discovery of the loss or theft
of the card The Responsible Official will be required to submit a written
report to the City Treasurer WITHIN 5 WORKDAYS that will include the
complete information on the loss, the date the loss was discovered, the
location where the loss occurred, if known, the purchases that the cardholder
made prior to the loss, and any other information that may be considered as
needed
12 Terminating Employee
a Executive/Purchasing cards are issued to individual employees If an
employee leaves the City, their card must be collected and destroyed No
final paycheck will be issued until the card is returned The Approving
Official will be responsible for collecting the card and turning it over to the
Purchasing Officer who in turn will turn the card over to the City Treasurer
The City Treasurer will destroy the card and notify the financial institution
and the Purchasing Officer
b Should a cardholder be transferred within the City to another
department/division, the Responsible Official of the new department will
determine if the Executive/Purchasing card is still warranted If so, the
Responsible Official should notify the Purchasing Officer so that a new card
with the appropriate Department name and employee job title may be
ordered
Executive/Purchase (Credit) Card Policy Page 9 of 21 31c In the event the Approving Official is not able to collect the
Executive/Purchasing card when the employee leaves the City, the
Approving Official will notify the City Treasurer immediately The City
Treasurer will contact the financial institution and void the card Once the
financial institution has confirmed there are no additional charges on the
card since the date of termination, the final paycheck can be released The
Approving Official will also notify the Purchasing Officer and the employee
to prevent any purchases after the employee leaves
3/-
Executive/Purchase (Credit) Card Policy Page 10 of 21ATTACHMENT 1
CITY OF CULVER CITY
Request for Executive/Purchasing Card
DATE
TO Department Head and City Treasurer
FROM
SUBJECT Request for Executive/Purchasing Card
Request the following employee be authorized for an Executive or Purchasing Card
(Circle one)
Full Name (PRINT)
Signature
Title
Phone Extension
Last four digits of Social Security Number
Cardholder Conditions*
Executive Card
Single Purchase Limit (not to exceed $5,000)
30-day Limit (not to exceed $20,000)
Purchasing Card
Single Purchase Limit (not to exceed $1,000)
30-day Limit (not to exceed $15,000)
Annual Fee of $20 00 (maximum amount)
*Executive/Purchasmg cards may only be used for food purchases if pnor authorization has been
obtained from his/her responsible official
Name of Responsible Official - @lease print) City Treasurer — Please Print
Signature of Responsible Official Signature of City Treasurer
Executive/Purchase (Credit) Card Policy Page 11 of 21 33ATTACHMENT 2
CITY OF CULVER CITY
Cardholder Statement of Questioned (Disputed) Item
TO Accounts Payable
THRU (Approving Official)
FROM (Cardholder)
SUBJECT Questioned Item on Executive/Purchasing Card Statement
The following item(s) listed on Statement of Account is disputed
Date of Statement of Account
Item(s) Disputed
Reason Provide information as to why item(s) does not meet your
requirements Indicate actions requested of merchant, reasons
merchant refused to correct dispute, and any other information that is
available to assist the Purchasing Division to negotiate dispute
Action Requested Return item and obtain credit
Exchange for same item
Exchange for different model, brand, etc w/applicable
reduction/increase in cost (This action will require prior approval
from cardholder if cost increase is required )
Other Comments
Date (Cardholder s Signature)
ski
Executive/Purchase (Credit) Card Policy Page 12 of 21ATTACHMENT 3
CITY OF CULVER CITY
Monthly Log of Executive/Purchasing Card Telecommunications Orders
MONTH and YEAR
CARDHOLDER INFORMATION
Full Name (PRINT)
Title
Phone Extension
Card Number
No
Purchase
Date
Itemized List of Purchase(s)
Cost for
Goods or
Services
(plus tax)
Shipping
Costs
(plus tax)
'
Total
Cost
(plus tax)|1010101010|Total Monthly Costs
Attach any shipping documents associated with the orders listed above
Submit form to Approving Official and attach Executive/Purchasing card monthly
statement
Page 13 of 21 37 Executive/Purchase (Credit) Card PolicyExecutive/Purchase (Credit) Card Policy Page 14 of 21
ATTACHMENT 4
Executive/Purchase Card Eligibility List by Department
Administration
CAO
CAO (Executive Card)
ACAO (Executive Card)
Intergovernmental Relations Officer
Executive Secretary
Budget & Finance
City Controller (Executive Card)
Purchasing
Purchasing Officer
Buyer
Warehouse Supervisor
Warehouse Worker
Warehouse Worker
Personnel
Personnel Director (Executive Card)
Deputy Personnel Director
Personnel Services Analyst
Risk Management
Safety Officer
Planning
Senior Planner
Associate Planner
Building & Safety
Building Official
Cultural Affairs
Events Supervisor
Public Art Coordinator
RDA
Redevelopment Administrator
Redevelopment Manager (2)
Information Technology
IT Director (Executive Card)
System Development Manager
Telecommunications Analyst
Technical Services Manager
Information Technology Analyst
Microcomputer Analyst (3)
GIS Coordinator
Web Master
City Attorney
City Attorney (Executive Card)
Outreach Coordinator
Graphics
Graphic Services Coordinator
City Clerk
Deputy City Clerk
City Treasurer
City Treasurer (Executive Card)
Deputy City Treasurer
Administrative Secretary
Transportation
Transportation Director (Executive Card)
Deputy Transportation Director
Senior Management Analyst
Transit Operations Manager
Transportation Admin Secretary
Community Development
Admin
Community Development Director
(Executive Card)
Associate Analyst
Equipment Maintenance
Equipment Maintenance Manager
Maintenance Supervisors (4)
Management Analyst — Maintenance
Facility EngineerPublic Works
Public Works Director (Executive Card)
Senior Management Analyst
Associate Analyst
Engineering
Engineering Services Manager
Maintenance Operations
Maintenance Operations Manager
Senior Management Analyst
Building/Electrical Maintenance
Pool Maintenance Technician
Maintenance Plumber
Facilities Lead Worker
Maintenance Carpenter
Building Engineer (2)
Facilities Maintenance Worker (3)
Maintenance Painter (2)
Parking Meter Technician
Traffic Signal Technician (2)
HVAC Maintenance Worker
Maintenance Electrician
Street Light Technician
Street, Tree & Sewer Maintenance
Street & Tree Maintenance Supervisor
Heavy Equipment Operator (3)
Street Maintenance Crewleader (2)
Traffic Painting Crewleader
Subdram Crewleader
Subdram Worker
Pest Control Technician
Street Tree Maintenance Worker
Sewage Lift Station Worker
Sanitation
Sanitation Manager
Environmental Coordinator
Staff Assistant
Sr Sanitation Supervisor
Crew Supervisor (2)
Heavy Truck Driver (5)
Fire Department
Fire Chief (Executive Card)
Assistant Fire Chief
EMS Coordinator
Fire Marshal
Battalion Chiefs (3)
Training Officer
Communications Supervisor
Associate Analyst
Police Department
Police Chief (Executive Card)
Assistant Police Chief
Police Captain (2)
Training Lieutenant
Scientific Services Lieutenant
Juvenile Lieutenant
LA IMPACT Officers
K9 Officers
Parks, Recreation & Community Service
PRCS Director (Executive Card)
Senior Management Analyst
Parks, Environmental Management
Parks Manager
Park Maintenance Supervisor
Park Maintenance Crewleader (4)
Facilities Maintenance Supervisor
Irrigation Maintenance Tech
Secretary
Recreation
VMC Manager
Recreation Manager
Recreation Coordinator (2)
Recreation Supervisor (2)
Senior Center
Sr & Social Services Manager
RSVP Director
Senior Center Supervisor (2)
Senior Nutrition Specialist
Senior Center Specialist
Disability Services Specialist
Executive/Purchase (Credit) Card Policy
Page 15 of 21 377CITY OF CULVER CITY
EXECUTIVE/PURCHASING CARD
CARDHOLDER INSTRUCTIONS
1 PURPOSE To provide general instructions on the proper use of the City
Executive/Purchasing card
2 BACKGROUND
a The City has used various methods to accomplish the purchase of goods and
services To promote vendor acceptance and operational efficiency, the
Purchasing Division initiated the City Executive/Purchasing card program
b A number of unique controls have been developed for the Executive/Purchasing
card program that do not exist in a traditional credit card environment These
controls ensure that the card can be used only for specific purchases and within
specific dollar limits In addition, certification of all purchases is required by each
cardholder, with verification performed by the Approving Official, within the
cardholder's department/division, before the bill is submitted to Accounts Payable
for payment
3 GENERAL INFORMATION
a The unique Executive/Purchasing card that you receive has your name embossed
on it and the City of Culver City No member of your department/division/section,
your family or anyone else may use this card unless in circumstances previously
authonzed by the Department Head and City Treasurer It has been specially
designed to avoid confusing it with your personal credit cards In all other
respects, this is considered a regular credit card HOWEVER, THIS CREDIT
CARD MUST NOT BE USED FOR PERSONAL PURCHASES'
b It is MANDATORY that you attend training on the use of the cards
The City limit for Executive cards is $5 000 per single purchase and $20,000
within 30 days and for Purchasing cards is $1,000 per single purchase and
$15,000 within 30 days (except as may be specifically authorized for some
Management officials)
d The Request for Executive/Purchasing card is forwarded to the Purchasing
Division in order to obtain the Executive/Purchasing card
When the Executive/Purchasing card is received by the Purchasing Division, you
will be called to personally sign for the card
311
Executive/Purchase (Credit) Card Policy Page 16 of 21f Each time you use the Executive/Purchasing card, the merchant may check via a
telecommunications system to verify your dollar limit of your single purchase and
monthly purchases limit You will receive a statement of your purchases on the
same date each month
g The Executive/Purchasing card is a supplement to departmental purchase orders
As with the other purchasing methods, the following conditions must be met
when using the Executive/Purchasing card
(1) Each single purchase may be comprised of multiple items, but the total
cannot exceed the single purchase dollar limit on your credit card
(2) The least expensive item that meets your basic needs should be sought
(3)
Cardholders must follow their department's procedures to ensure that
sufficient funds are available prior to making purchase
h The financial institution will not request any personal information from
cardholders, nor should any personal information be furnished to the financial
institution
Use of the Executive/Purchasing card does not relieve the cardholder from
complying with City purchasing policies and procedures If you have questions
about procurement regulations, please contact the Purchasing Division
Use of the Executive/Purchasing card is not intended to replace effective
procurement planning
k Purchases must not be split to circumvent purchasing regulations
1 If your Approving Official questions a purchase made with your
Executive/Purchasing card, you must be able to explain the nature of the
purchase If you cannot substantiate that the purchase was necessary and for
official use, your Department will address improper use of the
Executive/Purchasing card and resulting disciplinary action will be handled
directly with your Responsible Official
Questions regarding your account or specific Executive/Purchasing card
procedures should be directed to the Purchasing Division
Executive/Purchase (Credit) Card Policy Page 17 of 21 394 PROCEDURES
a You will be notified by the Purchasing Division when your Executive/Purchasing
card is received You will be required to sign for the Executive/Purchasing card
b Activate the card by removing CCRV (Credit Card Receipt Verification)
Instructions are on the back of the card
c You may use your Executive/Purchasing card at any merchant which accepts
credit cards for payment of purchases You may find that some of the suppliers,
especially wholesalers, do not currently accept credit cards
d Once you have selected your purchases, present them and your card to the
merchant
e The merchant will complete a sales draft, which includes the following
information
(1) Impnnt of your card, including card number expiration date, and your name
(2) Date and amount of purchase
(3) Bnef description of item(s) purchased
(4) Imprint of merchant name and identification
f As the sales draft is being completed, the merchant will obtain authonzation for
the transaction via either a telephone call or direct telecommunication link to the
credit card authorization network The merchant will obtain an authorization
number (as long as the purchase is within the limits established for your card)
g The merchant will request that you sign the draft Before you do, verify that the
dollar amount is correct and that sales tax has been included
h You will be provided one copy of the signed sales draft This copy should be kept
and verified against your monthly Statement of Account, and attached to your
certified Statement of Account when forwarded to your Approving Official
i The remaining copies of the sales draft are used by the merchant, one copy to
retain for records, and one copy to deposit with their financial institution to
receive payment for the purchase amount
q
o
Executive/Purchase (Credit) Card Policy Page 18 of 215 TELECOMMUNICATIONS ORDERING INSTRUCTION
a If you are making a telecommunications order with your purchasing card, you
must log all orders on the Record of Telecommunications Executive/Purchasing
Card Orders Form (Attachment 3)
b When placing a telecommunication or mail order, you will be asked to provide
your name, card number, expiration date on the card and an address
• Telecommunications back ordering is not allowed
6 CARD RESTRICTIONS
The following list covers purchases for which Executive/Purchasing cards use is
prohibited
• Cash advances through financial institution tellers or teller machines,
• Purchase of personal items,
• Purchase of alcoholic beverages,
• Fixed or controlled assets (items costing $1,000 or more) Executive cards are
permitted to purchase fixed or controlled assets For such items, Departments
must have the item delivered to the City's warehouse for proper tagging and
identification as a fixed or controlled asset
Department specific regulations, or City travel policy, may add further restrictions to
this list
7 PROCEDURES AFTER PURCHASE
a At the close of each billing cycle, you will receive a "Statement of Account" The
statement will itemize each transaction which was charged to your
Executive/Purchasing card account Upon receipt of the Statement, complete each
of the actions listed below
(1) Review the Statement for accuracy
(2) Indicate the accounting code for each transaction on the Statement
(3) Attach copies of the sales receipts to the Statement
(4) Submit completed statement to the Approving Official within three (3) days
Department Head and CAO Executive card statements are to be submitted to
the City Controller The Approving Official must submit the Statement to
Accounts Payable within one (1) day
Executive/Purchase (Credit) Card Policy Page 19 of 21 elb If you have returned an item purchased attach the credit voucher to the Statement
on which the credit appears
c If an item is found to be unacceptable, try to resolve the problem with the
merchant first It is the responsibility of the cardholder to make the first contact
with the vendor in order to resolve any problem If the merchant refuses to issue a
credit voucher, the form "Cardholder Statement of Questioned Item" (Attachment
2) must be completed and forwarded to the Purchasing Division
d If you are charged for an item incorrectly, provide a complete explanation of the
error on the Statement Also, complete the form "Cardholder Statement of
Questioned Item "Your Approving Official will forward this form through the
Purchasing Division to the financial institution for adjustments
e Please note that there are specific time frames established in which reversals of
charges may be processed If conditions occur as noted in items C and D (above),
the "Cardholder Statement of Questioned Item" must be forwarded to Purchasing
Division as soon as possible to ensure compliance with these time frames
In addition to these time frames, Executive/Purchasing card regulations often
require certain wntten documentation from you before a reversal can be
processed Information on the "Cardholder Statement of Questioned Items" form
(Attachment 2) will assist you in identifying the specific documentation that is
required For additional information regarding individual transaction reversal
requirements, please contact the Purchasing Division
If you have questions regarding the information on the "Cardholder Statement of
Questioned Item" form, or if you have any problems regarding the reversal of a
transaction, please contact the Purchasing Division staff at Extension 6450
f If you will not be available to sign your Statement of Account because of leave or
travel, forward all sales receipts and credit vouchers to your Approving Official
The Approving Official will forward a copy of your Statement of Account to the
Purchasing Division
8 LOST OR STOLEN CARDS
Immediately notify your Approving Official, City Treasurer, Purchasing Officer, and
the financial institution If appropnate, the Police Department should be notified
depending on the situation, i e, robbery, burglary, etc The following
telecommunications number may be used for the credit card issuer
24 HOURS - ANY DAY OF THE WEEK
1-800-305-7735
La
Executive/Purchase (Credit) Card Policy Page 20 of 21Provide the following information to your Approving Official and City Treasurer
your complete name, card number, and the date reported to the police, date the
financial institution was notified, and any purchase(s) made on the day the card was
lost or stolen A new card will be reissued by the credit card issuer within five (5)
business days from the time that you reported the loss or theft A new account number
will be assigned to your new card
It is important that you notify the financial institution, your Approving Official, the
City Treasurer, and the Purchasing Division of the loss or theft of a card immediately
9 CHANGES TO CARDHOLDER INFORMATION
a Changes to a cardholder's name, address or department/division, should be
immediately reported by memo to the Purchasing Division through your
Approving Official The Purchasing Division will request the card issuer to issue
a new credit card if needed
b If you move to another department/division within the same City, you should
check with your Approving Official before moving to see what changes may be
required
Executive/Purchase (Credit) Card Policy Page 21 of 21 q3