Legislation Details

File #: HIST-22030    Version: 1 Subject:
Type: Historical Status: Consent Agenda
In control: City Council Meeting Agenda
On agenda: 5/13/2013 Final action: 5/13/2013
Title: Adoption of a Resolution (1) Amending City Council Policy Statement No. 4209 Entitled “Purchasing Cards,” to Update the Guidelines and Controls for the Use of City Issued Purchasing Cards and (2) Rescinding Resolution No. 2007-R071.
Attachments: 1. Adoption of a Resolution (1) Amending City Council - C-6__13-05-13__CFO__CITY COUNCIL__Amend Purchasing Card Policy SR - FINAL.pdf, 2. Adoption of a Resolution (1) Amending City Council - C-6__13-05-13_CFO_CC_ATT_Amended Purchase Card Policy.pdf
City of Culver City, California Agenda Item Report Meeting Date: 5/13/2013 Item Number: C-6C CITY COUNCIL AGENDA ITEM: Adoption of a Resolution (1) Amending City Council Policy Statement No. 4209 Entitled “Purchasing Cards,” to Update the Guidelines and Controls for the Use of City Issued Purchasing Cards and (2) Rescinding Resolution No. 2007-R071. Contact Person/Dept.: Nick Kimball, Finance Department Phone Number: 310-253-6013 Fiscal Impact: Yes [] No [X] General Fund: Yes [X] No [] Public Hearing: [] Action Item: [] Attachments: [X] Commission Action Required: Yes [] No [X] Date: _______________ Public Notification: (Email) Agenda and Meetings – City Council (05/07/13) Department Approval: Jeff Muir (05/02/13) City Attorney Approval: Carol Schwab (by H. Baker) (05/07/13) Chief Financial Officer Approval: Jeff Muir (05/07/13) City Manager Approval: John M. Nachbar (05/07/13) RECOMMENDATION: Staff recommends the City Council adopt a resolution (1) amending City Council Policy Statement No. 4209 entitled “Purchasing Cards” to update the guidelines and controls for the use of City issued Purchasing Cards, and (2) rescinding Resolution 2007-R071. BACKGROUND: The City issues Purchasing Cards to responsible staff to reduce total transaction costs by streamlining the business process for certain types of purchases. Purchasing Cards differ from traditional credit cards in that there are a number of controls built-in to the purchasing card, including, but not limited to, restricting purchases by Merchant Category Code and setting single purchase and monthly credit limits per card. Various City Council policies regulating the issuance, use, and management of Purchasing Cards have been established and amended over the years. In 1995, the City Council adopted City Council Policy No. 4205 – Credit Card Usage. In 2002, City Council Policy No. 4205 was rescinded and combined with City Council Policy No. 4209 – Purchasing Cards, which was subsequently amended in 2007. DISCUSSION: In January 2012, the City began transitioning from the Bank of America program to the CAL-Card program. The CAL-Card program is available to all government City of Culver City, California Agenda Item Report agencies in California at no cost through a Master Services Agreement between the State Department of General Services and US Bank. The CAL-Card program has a number of advantages, including: • No annual card fee. • Accepted wherever Visa is accepted. • No minimum card count or spend requirements. • Rebates: Prompt Payment, Volume Sales, and Average Transaction Rebates that are calculated and paid quarterly. • A City staff member acts as Program Administrator to manage credit limits, run reports, manage card restrictions and issue new cards using US Bank Access Online, in real time, 24/7. • Cardholders get a unique username and password to Access Online to review their purchases and assign account codes (using the City’s account structure) for each purchase. • Online P-card statement approval by managers can be accommodated. • City’s name and seal/logo are embossed on each CAL-Card at no cost. With the transition to the CAL-Card program now complete, the policies and procedures in City Council Policy No. 4209 - Purchasing Cards need to be updated. The updated Policy maintains the same restrictions related to allowable and non- allowable purchases, single purchase and monthly credit limits, and keeps adequate oversight and controls in place. The revised Policy has a slightly different layout to improve the flow of the document and some of the procedures, particularly related to the submittal of Activity Statements, have been amended to reflect the online management capabilities of the CAL-Card program. FISCAL ANALYSIS: There is no cost associated with amending City Council Policy No. 4209 – Purchasing Cards. Since the inception of the CAL-Card program in January 2012 (with full citywide implementation completed in June 2012), the City has earned $3,170 in rebates. ATTACHMENTS: 1. Proposed Resolution (including revised Policy No. 4209) 2. Current City Council Policy No. 4209 MOTION: That the City Council: City of Culver City, California Agenda Item Report Adopt a resolution (1) amending City Council Policy Statement No. 4209 entitled “Purchasing Cards,” to update the guidelines and controls for the use of City issued Purchasing Cards and (2) rescinding Resolution 2007-R071. MEETING DATE: 5/13/13 AGENDA ITEM: Adoption of a Resolution Amending City Council Policy Statement No. 4209 Entitled “Purchasing Cards,” to Update the Guidelines and Controls for the Use of City Issued Purchasing Cards and Rescinding Resolution No. 2007-R071. ATTACHMENTS Pages 1. Proposed Resolution (including revised Policy No. 4209) 1 – 18 2. Current City Council Policy No. 4209 19 - 39 RESOLUTION NO. 2013-R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, ADOPTING COUNCIL POLICY STATEMENT NO. 4209 AS AMENDED TO MODIFY THE PROCEDURES RELATING TO PURCHASING CARDS AND RESCINDING RESOLUTION NO. 2007-R071. WHEREAS, at the City Council meeting of December 9, 1996, the City Council, by Resolution No. 96-R121, approved and adopted Council Policy Statement No. 4209 relating to Purchasing Cards; and WHEREAS, at the City Council meetings of March 25, 2002, November 7, 2005 and December 10, 2007, the City Council, by Resolution Nos. 2002- R028, 2005-R073 and 2007-R071, respectively, approved and adopted amendments to Council Policy Statement No. 4209 relating to Purchasing Cards; and WHEREAS, the City Council desires to modify the procedures related to Purchasing Cards as set forth in Council Policy Statement No. 4209. NOW, THEREFORE, the City Council of the City of Culver City, California, DOES HEREBY RESOLVE, as follows: SECTION 1. The City Council hereby amends City Council Policy Statement No. 4209, modifying the procedures related to Purchasing Cards, which amended policy is attached hereto as Exhibit "A" and incorporated herein by reference. SECTION 2. Resolution MI 2007-R071 is hereby rescinded. /I 25 26 III 27 II 28 I 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 -1 9 ATTEST: 10 11 MARTIN COLE 12 City Clerk A13-00240 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I SECTION 3. The effective date of the amended Council Policy Statement 2 No. 4209 is the date of adoption of this Resolution. 3 4 APPROVED and ADOPTED this day of , 2013. 5 6 7 JEFFREY COOPER, Mayor City of Culver City, California 8 -2- 1 | Page CITY OF CULVER CITY COUNCIL POLICY STATEMENT General Subject: Purchasing and Procurement Specific Subject: Purchasing Cards Policy Number 4209 Date Issued: 05/13/2013 Effective Date: 05/13/2013 Resolution No.: 2013-R___ PURPOSE: To provide general guidelines and procedures for the issuance and use of a City Purchasing Card. POLICY: The City of Culver City has established a Purchasing Card (PCard) program intended to reduce total transaction costs by streamlining business processes for certain types of purchases, and thereby increasing operational efficiency. A clear and well-defined PCard Policy facilitates the effective management of the PCard program, which provides the following benefits: ? Faster delivery of certain low value items resulting in fewer warrant requests, Purchase Orders and usage of petty cash. ? Oversight of purchases by Department Heads and Division Managers. ? Built in controls (e.g. the ability to control specific categories of purchases using Merchant Category Codes), as well as single transaction and monthly credit limits per Card. ? Purchasing staff can analyze monthly reports to identify repetitive purchases for possible consolidation into volume pricing agreements and/or contracts. ? Reduces the number of warrants and Purchase Orders that are generated, thereby reducing staff time and lowers transactional expenses. BACKGROUND: To promote operational efficiency, the Purchasing Division of the Finance Department oversees the City’s PCard program. The City participates in the CAL-Card program offered through a Master Services Agreement between the state Department of General Services and US Bank. 32 | Page A number of unique controls have been developed for the CAL-Card program that do not typically exist for traditional credit cards. These controls ensure that the card can be used only for specific purchases and within specific dollar limits. In addition, verification of all purchases is required by each cardholder, with approval performed by the appropriate Department Head or their designee (herein referred to as an Approving Official) before the statement is submitted to Accounting for review and posting to the General Ledger. The cardholder is responsible for all use of the card and for compliance with this policy. DEFINITIONS: AccessOnline – Online access to the City’s Purchasing Card program. Program Administrators can change limits, run reports, manage card restrictions and issue new cards. Each user gets a unique username and password to access their p-card activity to review purchases and assign account codes. Approving Official – The Approving Official is the Department Head or designee. The Approving Official is a critical checkpoint for internal control purposes. The Approving Official reviews the monthly Activity Statements and all purchases to verify they are necessary and for official City purposes only. Activity Statement – Monthly statement of transactions that identifies the transaction date, merchant name and location, transaction total, Org/Object code to charge the transaction to, and the business purpose for the transaction. Activity Statements are completed online through AccessOnline, printed, signed by the appropriate officials, and submitted to Accounting for review and posting to the General Ledger. CAL-Card – State-wide purchasing card program offered through a Master Services Agreement between the state Department of General Services and US Bank. Participation in this program offers controls unique to government agencies, such as the ability to place restrictions on purchases based on Merchant Category Codes. Cardholder – The City employee whose name is on the Purchasing Card. The cardholder is authorized to make purchases of commodities in accordance with this policy on behalf of their department. The cardholder should be familiar with city procurement policies and procedures. The cardholder reconciles his/her monthly Activity Statement and forwards it along with all receipts to the Approving Official. Purchasing Card - A City issued and controlled credit card administered by the City’s Purchasing Division. Purchasing Card Bank - The bank that issues the purchasing card. The current Purchasing Card Bank is US Bank. 43 | Page Purchasing Card Coordinator – A staff member assigned by each Department Head who is responsible for assuring that all approvals, documentation/ receipts and statements are consolidated and forwarded to Accounting by the due date each month. Statement of Activity – See Activity Statement. PROCEDURES: Initial Request for a PCard Requests for staff to participate in the PCard program shall be submitted by the Department Head to the City Manager or designee, by completing an Initial Application for CAL-Card Purchasing Card form (see Attachment 2). When completing the Application, the applicant will be classified as either an Executive User or a Departmental User. Executive Users will be limited to those positions classified as Executive Management and may include other users as approved by the City Manager. Executive Users will have the following limits: Executive Users (City Manager and Department Heads) ? Single Purchase Limit: Not to exceed $5,000 ? 30-day Limit: Not to exceed $20,000 All other Cardholders will be considered Departmental Users with the following limits: Departmental Users (City Staff other than City Manager and Department Heads) ? Single Purchase Limit: Not to exceed $500 ? 30-day Limit: Not to exceed $15,000 Both the Department Head and the City Manager or designee, must sign the Application. The approved Application will then be sent to the Purchasing Division Manager who will submit the request to the Bank. The Cardholder will receive a unique PCard with their name and the City seal embossed on it. Issuance of a PCard Once PCard will be received by the Purchasing Division Manager, it will be forwarded on to the appropriate Purchasing Card Coordinator (Coordinator). The Coordinator is responsible for ensuring that the Cardholder receives their PCard and the related materials. It is mandatory that Cardholders read this Policy and sign a City Purchasing Card Agreement (See Attachment 3) prior to using the card. The original signed Agreement shall be returned to the Purchasing Division Manager for final approval. The original Agreement will be placed in the employee’s personnel file and the Purchasing Division will retain a copy. It is recommended that the employee and/or department also keep a copy of the Agreement for his/her records. 54 | Page Activating and Using the PCard Before using the card, the Cardholder must activate the new card by following the instructions on the front of the card. The Cardholder should also register on AccessOnline so they can start using the functionality available through online access to their PCard account. Instructions for registering on AccessOnline are included as Attachment 4 to this Policy. The PCard is intended for low value purchases (generally under $500.00 for the total order including sales tax and shipping) that meet the requirements for approved purchases per the Allowable and Non-Allowable Chart (see Attachment 1). The PCard may also be used as a business expense/travel card for staff members who have a business need for travel (generally management staff). The card has been designed to avoid confusing it with personal credit cards and must not be used for personal purchases. The named cardholder is the only person allowed to use the card. The following conditions must be met when using the PCard: 1. Cardholders must ensure that there are sufficient funds in their budget prior to making any purchases. 2. Each single purchase may be comprised of multiple items, but the total, including tax and shipping, cannot exceed the single purchase dollar limit on the PCard; or exceed the cumulative maximum expenditure limit for the month. If either of these limits is exceeded, the transaction will be declined at the time of attempted purchase by the Bank. 3. Purchases must not be split to circumvent single purchase limit restrictions. Doing so may result in disciplinary action and/or loss of card use. 4. Cardholders must obtain a detailed, itemized receipt for all purchases, including sales tax where applicable. For all purchases, the itemized detail receipt is required, rather than the receipt showing only the total. 5. Sales tax must be paid for all taxable purchases. In the event that the receipt shows that tax was not charged, then the Cardholder should flag the line item on the Monthly Activity Statement, so the Accounting Division can charge your budget for the appropriate use tax and remit the use tax to the state, as required by law. 6. In addition to these general procedures, Cardholders must follow their respective department's procedures when making a purchase. Neither the Purchasing Division nor the Accounting Division will be responsible for monitoring compliance with individual department procedures. 65 | Page When placing a telephone, fax or mail order, the Cardholder shall: ? Provide the merchant with the name, card number and expiration date. ? Instruct the merchant where to deliver the item, if applicable. ? Request that a packing slip or receipt be sent with each order that includes the Cardholder name, line item price(s), tax and shipping costs, if applicable. ? Include receipt document with the Activity Statement for reconciliation purposes. When making a purchase in person, the Cardholder shall keep a copy of the sales receipt to submit with the Activity Statement. Before signing the sales receipt, verify that the dollar amount is correct and that sales tax has been included. If a sales receipt only shows a total amount without a specified sales tax, the employee will be required to tag the item because the City is legally required to pay sales and use tax. If sales tax is NOT paid as a part of the invoice, the Accounting Division will be required to remit the sales and use tax payment to the State Board of Equalization. This amount will be charged against your budget. Cardholders must comply with this policy when using the PCard, as well as City’s General Purchasing Policy (Administrative Policy 2011-AP001). The Purchasing Card is NOT to be used to circumvent the City’s Purchasing Policy. The Purchasing Division Manager should be contacted with any questions concerning purchasing-related policies and procedures. Budget or Accounting questions should be forwarded to those respective areas. Card Restrictions The PCard shall NOT be used for the following (See Attachment 1 for additional details): ? A purchase, including tax and shipping, which exceeds that Cardholder’s single purchase limit or monthly limit; ? The purchase of items available in the City's Central Stores Warehouse; ? The purchase of items that have been identified as requiring special approval (e.g. educational reimbursement expenses); ? Computer hardware (including tablets), software, and accessories , unless prior authorization has been received from the CIO and Purchasing Division Manager; ? Purchase of personal items; ? Purchase of services; ? Chemicals or other hazardous materials; ? Purchase of items for resale; ? On-line auction purchases (e.g., eBay, etc.); ? Cash advances through bank tellers or teller machines; 76 | Page ? Any product or service normally considered as an inappropriate use of City funds; ? Cash or Gift Cards; and ? Categories of certain goods and services as provided in Attachment 1, “Allowable and Non –Allowable Chart”. Emergency Purchases: In the event of an emergency where a purchase needs to be made that is either restricted or beyond the dollar limit set by this policy, the card holder must obtain approval from the City Manager or designee/or Department Head prior to making the purchase. The City Manager or designee/or Department Head will send a request to allow the purchase or temporarily increase the dollar limit for a particular card holder to the Purchasing Division Manager. Requesting a Temporary Credit Limit Increase A temporary credit increase may be granted by submitting a request via email to the Purchasing Division Manager. A temporary increase for a one-time purchase may be granted for any “Allowable” purchase. The Purchasing Division Manager reserves the right to reject a temporary credit increase request and require the submittal of a requisition when it is in the best interest of the City. Submittal of Activity Statements At the close of each billing cycle (typically the 25 th of each month, unless the 25 th falls on a weekend), each cardholder or designated Purchasing Card Coordinator will log on to AccessOnline to complete their Activity Statement and submit it to their Approving Official for review and approval (See Attachment 5 for more detail). If the Cardholder has purchased an item on or close to the date the billing cycle closes, the purchase may not be listed until the following billing cycle. The Cardholder must keep their receipt(s) until the close of the next billing cycle and submit the receipt with the Activity Statement that includes the charge. The Statement will itemize each transaction that was charged to the Cardholder's PCard account. Upon logging in to AccessOnline, the Cardholder is to follow the Purchasing Card: Online Account Management Procedures included as Attachment 5. If the Cardholder has returned an item to the merchant, the Cardholder is to include the credit voucher or credit receipt with the Activity Statement on which the credit appears. If the Cardholder does not have a receipt or packing slip for a purchase, they are to make reasonable efforts to obtain a duplicate copy from the vendor. If this is not possible, the cardholder must submit a signed memo directed to the Accounting Division, with a CC to the Purchasing Division Manager, identifying the purchase date, merchant name and location, amount charged, and the business use for the item 87 | Page purchased. The memo shall also explain why the receipt is not available with the signature of Cardholder indicating that Cardholder attests that the memo is a true statement and a signature by the Department Head or designee indicating approval of the purchase. If the Cardholder will not be available to sign the Activity Statement because of leave or travel, the Cardholder is to forward, in advance of due date, all signed and approved charge receipts and credit vouchers to the appropriate Department Head or designee. The Department Head or designee will approve, sign and forward the Activity Statement to the Accounting Division. If the cardholder is absent, the department is responsible for forwarding the approved monthly statement to the Accounting Division. Any discrepancies would be handled in the department when the employee returns, not later than the next Purchasing Card billing cycle. Disputed Transactions It is the Cardholder’s responsibility to try to resolve disputed items with the merchant. The Cardholder must also notify the Bank, the Purchasing Manager and the Accounting Division when an item is in dispute. To dispute a charge, the cardholder or Purchasing Card Coordinator must log on to AccessOnline, locate the charge in question through the Transaction Management module, select the checkbox to the left of the charge and click “Dispute.” This will start the process with the bank. The cardholder will most likely be required to complete a set of forms with the bank. These forms shall be filled out and returned as soon as possible. If the Cardholder has questions regarding the procedure for disputing a transaction through AccessOnline, the Purchasing Manager should be contacted for assistance. Cancellation of PCard Should the Cardholder terminate employment with the City, the Cardholder must submit a completed Activity Statement and Purchasing Card to the appropriate Department Head or designee. The Department Head or designee will be responsible for forwarding the PCard to the Purchasing Division Manager for card cancellation. The Human Resources Department will maintain a checklist for all items that need to be returned to the City and a supervisor shall collect all these items prior to the employee leaving the department or the City. If the employee fails to turn in the PCard and receipts, the final paycheck may be held until the issue is resolved to the City’s satisfaction. Lost or Stolen Cards If the card is lost or stolen, or if there are fraudulent charges, the Cardholder is responsible for immediately notifying the Purchasing Card Bank, his/her Department 98 | Page Head or designee and the Purchasing Division Manager. If appropriate, the Police Department should be notified, depending on the situation (e.g. robbery, burglary, etc.). The Cardholder is to provide the following information to the appropriate Department Head or designee and Purchasing Division Manager: complete name, card number, date reported to the bank, if (and when) the police were notified, and any purchases made on the day the card was lost or stolen. A new card will be issued by the Bank within fifteen (15) business days from the time the card was reported lost or stolen. A new account number will be assigned to the Cardholder’s new card. The Cardholder is responsible for any fraudulent and unresolved charges. Changes to Cardholder Information Changes to a Cardholder's name should be immediately reported by memo to the Purchasing Division Manager through the Department Head or designee. The Cardholder will turn in his/her obsolete card once a revised card is received and all required paperwork for the new card is signed, including Cardholder Purchasing Card Agreement. If a Cardholder transfers to another department within the City, the Cardholder must immediately return his/her card to the Purchasing Manager for cancellation. In the event that the new department requires the employee to be issued a Purchasing Card, the procedure for obtaining a new card must be followed. General Responsibilities Department: In addition to the responsibilities already assigned by this Policy, Department Heads, with the concurrence of the City Manager, are responsible for the number of PCard users in each department. The Purchasing Division will maintain a list of authorized PCard users. Each Department Head may assign one or more Purchasing Card Coordinator(s) to be responsible for assisting the Department Head by assuring that all statements, approvals and receipts are submitted to Accounting by the due date each month. Purchasing: In addition to the responsibilities already assigned by this Policy, PCard procedures shall be updated as needed by the Purchasing Division and the most recent procedures will be forwarded to the respective users along with training, as appropriate. Accounting: In addition to the responsibilities already assigned by this Policy, the Accounting Division is responsible for: 109 | Page ? Reviewing supporting documentation and requesting additional documentation, if needed, to demonstrate compliance with the PCard Guidelines. ? Notifying the appropriate Department Head and Purchasing Manager of possible violations of P-Card Guidelines as soon as is reasonably practicable (including but not limited to late submittals, missing or insufficient backup and documentation, any detected misuse of P-Card etc.). ? Making sure account numbers for each transaction on cardholder’s statement are completed and recorded in the City’s General Ledger in a timely manner. ? Working with P-Card users and Purchasing Manager to maintain a list of disputed items and ensuring that the City is appropriately credited upon resolution. ? Reviewing submittals and guidelines to ensure that proper treatment for sales and use tax is applied and all required reporting is met. ? Identifying, correcting, resolving and reporting issues pertaining to P-Card. ATTACHMENTS: Attachment 1 – Allowable and Non-Allowable Purchases Chart Attachment 2 – Initial Application for CALCard Purchasing Card Attachment 3 – Cardholder Purchasing Card Agreement Attachment 4 – AccessOnline Registration Letter Attachment 5 – Purchasing Card: Online Account Management Procedures 1110 | Page ATTACHMENT 1 CITY OF CULVER CITY ALLOWABLE AND NON-ALLOWABLE PURCHASES CHART PURCHASE TYPE DESCRIPTION BUSINESS MEALS Only City Council, City Manager, Assistant City Manager and Department Heads are authorized to use credit cards to purchase meals for official business meetings. All other staff may use credit cards for meals when on approved authorized travel. Also, complete and submit the Transaction Log (Attachment 5), indicating the names and affiliations for all members of the party whose meals are paid for using the Purchasing Card, and then state the business purpose for the expense. You must include an itemized receipt showing food and beverage items purchased, rather than the receipt showing only the total. Alcohol and personal entertainment are not authorized to be charged to a city credit card. ALLOWABLE * BUSINESS TRAVEL The Purchasing Card may be used for all travel related purchases including airline tickets, hotel accommodations, car rentals, business meals, etc. if it complies with this P-card Policy and the Travel Section of the City’s General Purchasing Procedures and Polices. EXCEPTION: The employee should use his or her own credit card for any personal expenses, such as personal phone calls, video rentals, etc. ALLOWABLE * GENERAL SUPPLIES General departmental supplies, including office supplies, fax/computer supplies, first aid supplies, and miscellaneous departmental expenses. ALLOWABLE INTERNET PURCHASES Use secure sites only. Do not send card number via email except internally. (No on-line auction purchases allowed such as eBay.) ALLOWABLE MAINTENANCE/REPAIRS SUPPLIES Maintenance and repair supplies, including maintenance tools and equipment. However, a record of all purchases will be kept in the cardholders Departmental personnel file. ALLOWABLE 1211 | Page PURCHASE TYPE DESCRIPTION SEMINARS, ETC. (USING DEPT. BUDGET) Seminars, training, books etc. that have been budgeted for within the department, and that are NOT funded through the City’s Education Reimbursement/Professional Development Program. ALLOWABLE CAPITAL EXPENDITURES NON- ALLOWABLE CHEMICALS and HAZARDOUS MATERIALS Any chemical purchase that required the City to keep on file a Material Safety Data Sheet (MSDS) should not be purchased with the Purchase Card. NON- ALLOWABLE CLUB DUES AND CONTRIBUTIONS NON- ALLOWABLE COMPUTER Hardware, peripherals, software, services and rentals except Information Technology designated personnel. NON- ALLOWABLE CONSULTANT FEES NON- ALLOWABLE CONTRACT SERVICES Any service contracts that require insurance and/or bonds (includes all Personal /Professional Contract Services). NON- ALLOWABLE EDUCATION REIMBURSEMENT AND PROFESSIONAL DEVELOPMENT The Purchasing Card may NOT be used to purchase goods or services when Education Reimbursement/Professional Development Program funds will be charged. A special form requiring your supervisor’s and the department director’s written approval is required. The approved form is submitted to Human Resources for processing. NON- ALLOWABLE ON-LINE AUCTIONS On-Line auction purchases are not allowed (such as eBay). NON- ALLOWABLE LEASES NON- ALLOWABLE 1312 | Page PURCHASE TYPE DESCRIPTION ON-SITE SERVICES Any Professional Service, maintenance or repairs performed on City property. NON- ALLOWABLE UNIFORMS Uniform rental and/or cleaning. Linen services. NON- ALLOWABLE UTILITIES Telephone*, power, gas, water NON- ALLOWABLE *Allowable with Department Director approval 14 Date: ______________ INITIAL APPLICATION FOR CALCARD PURCHASE CARD Applicant Name: ______________________________________ (Print name as it should appear on your card) Applicant’s Title: _______________________________________ Applicant’s Extension: ______________ Last four digits of Applicant’s Social Security Number: _________________ Applicant’s Culver City email: ________________________________________ Signature of Applicant: ________________________________________ Type of User (Circle one): Executive|1010| or Departmental JUSTIFICATION: Explain in detail why the applicant listed should be assigned a Purchasing Card and the benefit to the City. Department Head Approval: ________________________________________ (Signature of Department Head) City Manager Approval: ________________________________________ (Signature of City Manager or Designee) Return your completed form to Nick Kimball, Finance Department |1010| Executive Users will be limited to those positions classified as Executive Management and may include other users as approved by the City Manager. ATTACHMENT 2 FINANCE DEPARTMENT CITY OF CULVER CITY 9770 CULVER BOULEVARD, CULVER CITY, CALIFORNIA 90232-0507 (310) 253-6550 ? FAX (310) 253-5880 NICK KIMBALL Purchasing Division 15 2 ATTACHMENT 3 CITY OF CULVER CITY CARDHOLDER PURCHASING CARD AGREEMENT The City of Culver City (the “City”) is pleased to present you with this Purchasing Card. It represents the City’s trust in you and your empowerment as a responsible agent to safeguard and protect the City’s assets. I, Name Here , hereby acknowledge receipt of City CAL-Card Visa Purchasing Card, issued by US Bank, Card No. P Card Account Number . As a cardholder, I agree to comply with the terms and conditions of this Agreement and the Purchase Card procedures. I acknowledge receipt of this Agreement and a copy of the City’s Purchasing Procedures; and I confirm I have read and understand their terms and conditions. I agree to use this card only for City-validly approved purchases and agree not to use it for any other reason, including to charge personal purchases or any other personal purpose. I understand my use of this card will be audited and any discrepancies will be reported to proper authorities. I further understand improper use of this card can result in criminal and civil penalties and in disciplinary action, up to and including termination of employment. If I fail to use this card in any way other than as permitted, then I, hereby, authorize the City to deduct from any money otherwise due to me from the City, including wages an amount equal to the total amount, including any applicable interest, resulting from my unauthorized use. I also agree to allow the City to collect, by all legal or equitable means available, any and all amounts due as a result of my inappropriate use of this card, even if I am no longer employed by the City. I understand the City may terminate my right to use this card at any time with or without any cause, notice or warning. I agree to return the card to the City immediately upon the request of the City Manager or designee, or upon termination of my employment. Cardholder Signature: Date: Print name: Dept. Approval Signature: Date: Print name: Nick Kimball, Procurement & Financial Service Manager Phone: (310) 253- 6013 Original: Personnel File Copy: Purchasing Officer Copy: Employee Return card to Purchasing: Signature: Date: 16 2 ATTACHMENT 4 Re: Registering for Online Access for your New CalCard Dear Cardholder: In partnership with U.S. Bank, is excited to announce the deployment of AccessOnline throughout the City of Culver City. U.S. Bank AccessOnline is a new, exclusive web-based electronic program management tool that provides our company’s cardholders with quick access to their complete account information enabling individuals to view their account activity and billing statements online! In addition to making individual account management easier, AccessOnline also provides significant benefits to our entire organization. AccessOnline will aggregate all our purchasing information into one comprehensive database enabling our company to better manage purchasing activities and drive cost savings. When used in conjunction with our U.S. Bank Purchasing Card, AccessOnline helps our company better manage expenditures and achieve our overall profitability goals. By now I am sure that you are anxious to begin utilizing AccessOnline but first you need to get registered. AccessOnline self-registration empowers you to create your own User ID and Password and is easy to use. Just like the rest of the AccessOnline features, self-registration has been designed to be intuitive; however, to ensure a positive experience, here are a few helpful hints: ? Go to: https://access.usbank.com and click on the “Register Online” link ? When asked to enter your company short name, please use citycc ? ZIP/Postal Code must exactly match the FIVE DIGIT zip code that is on your billing statement (90232) –– or you will receive an error message ? Phone and Fax number format: No dashes, hyphens, parenthesis or spaces (i.e. 6121234567) ? User ID’s must be 7 to 12 characters in length and can be alpha and/or numeric. Please enter your user ID as FirstnameLastname (e.g. NickKimball) ? Passwords must be 8 to 20 characters in length, with at least one alpha and one numeric character ? User Verification is used to authenticate your account if you forget your User ID or Password, DO NOT CLICK “CONTINUE” until you are finished entering all cards you wish to register! If you need to register another card after clicking Continue, you must contact Nick Kimball at ext. 6013 or nick.kimball@culvercity.org for assistance ? When entering information in self-registration, if any of the entered information is not valid the system returns an error message. You have three attempts to correct the information. If all three attempts fail, the account with incorrect information will be locked out from self-registration. You will need to contact U.S. Bank Customer Service at 1-877-887-9260 to unlock your account Congratulations, you are now registered to enter AccessOnline. To maximize your online experience, I would like to encourage you to check out the system’s web-based training materials prior to utilizing AccessOnline. This highly intuitive web-based training experience will help you get the most out of this new tool. To access the U.S. Bank online training tools go to https://wbt.access.usbank.com. Welcome to AccessOnline! If you have any questions, please call me at 310-253-6013 or the U.S. Bank Customer Service Desk at 1-877-887-9260. Sincerely, Nick Kimball Program Administrator City of Culver City 17 2 ATTACHMENT 5 Reserved for: Purchase Card: Online Account Management Procedures Manual 18 CITY OF CULVER CITY COUNCIL POLICY STATEMENT General Subject: Purchasing and Procurement Specific Subject: Executive/Purchasing (Credit) Cards Policy Number 4205 Date Issued: 12/10/2007 Effective Date: 12/10/2007 Resolution No.: XXXXXXX PURPOSE: To provide general instructions on the required procedures for use of a City Purchasing Card. POLICY: The City of Culver City has adopted a Purchasing Card program. The intent of the program is to reduce total cost and centralize acquisitions for the City as well as streamline several business processes, and thereby increase operational efficiencies. PROGRAM BENEFITS: • Provides for faster delivery service of low value items to departments resulting in fewer warrant requests, blanket PO’s and usage of petty cash. • Allows oversight of purchases by Directors. • Provides for built in controls (can control specific categories of purchases), as well as single transaction and monthly dollar limits per Card. • Provides a tool for Purchasing staff to identify repetitive purchases for possible consolidation into new price agreements and contracts. • Reduction in labor and related expenses by reducing number of mailed warrants. BACKGROUND: To promote operational efficiency, the Purchasing Division of the Finance Department will oversee the City Purchasing Card program. A number of unique controls have been developed for the Purchasing Card program that does 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, verification of all purchases is required by each cardholder, with approval performed by the appropriate Department Director or designee before the statement is submitted to Accounting for review and posting to the General Ledger. The cardholder is responsible for all use of the card and for compliance with this policy. 19 20 GENERAL INFORMATION: A. Each Cardholder receives a unique Purchasing Card with both the Cardholder's name embossed on it and the “City of Culver City.” This card has been designed to avoid confusing it with personal credit cards and must not be used for personal purchases. The named cardholder is the only person allowed to use the card. B. It is mandatory that Cardholders attend training on the use of the card prior to P-card issuance and sign a City Purchasing Card Agreement (See Attachment 1). C. All Purchasing Cards will be restricted to certain categories of purchases, as well as single transaction and monthly dollar limits (see Exhibit A). D. All requests to participate in the Purchasing Card program shall be submitted by the Department’s Director to the City Manager or Designee, by completing a Request for Purchasing Card form (see Attachment 2). E. Each time the Cardholder uses the Purchasing Card, the merchant will check via the Purchase Card telecommunications network to verify the single purchase dollar limit and monthly purchase limit. When an approval code is received, it will appear on the sales receipt. The Cardholder will receive a statement of his/her purchases around the same date each month from the Purchasing Division. F. The following conditions must be met when using the Purchasing Card: 1. Cardholders must ensure that there are sufficient funds in their budgets prior to making any purchases. 2. Each single purchase may be comprised of multiple items, but the total, including tax and shipping, cannot exceed the single purchase dollar limit on the Purchasing Card; or exceed the cumulative maximum expenditure limit for the month. If either of these limits is exceeded, the transaction will be declined at the time of attempted purchase by the Bank. 3. Purchases must not be split to circumvent single purchase limit restrictions. Doing so may result in disciplinary action and/or loss of card use. 4. Cardholders must obtain a detailed, itemized receipt for all purchases, including sales tax where applicable. For all purchases, the itemized detail receipt is required, rather than the receipt showing only the total. 21 5. Sales tax must be paid for all purchases of tangible goods (not for services). In the event that the receipt shows that tax was not charged, then the Cardholder should flag the line item on the Monthly Purchasing Card Transaction Log, so that Accounting can charge your budget for the appropriate use tax and pay it at the appropriate time. 6. Cardholders must follow their department's procedures in addition to these general procedures prior to making a purchase. Neither the Purchasing Division nor the Accounting Division will be responsible for monitoring compliance with individual department procedures. G. Cardholders must comply with this policy when using the Purchasing Card, as well as City’s General Purchasing Policies. The Purchasing Card is NOT to be used to override the City’s Purchasing Policy. The Purchasing Officer should be contacted with any questions concerning purchasing-related policies and procedures. Budget or Accounting questions should be forwarded to those respective areas. H. Directors or designees are responsible for overseeing the Purchasing Card program in each department. The Purchasing Officer will maintain a list of authorized signatories (directors and/or designees), and will disseminate and updated list to the Accounting Division. I. Each Department Director should assign a Purchasing Card Coordinator who will be responsible to assist the Director by assuring that all statements, approvals and receipts are submitted to Accounting by the due date each month. J. Purchasing Card procedures shall be updated as needed by the Purchasing Division and the most recent procedures will be forwarded to the respective users along with training as appropriate. PRACTICES: Obtaining a Purchasing Card To obtain a Purchasing Card, the following procedures shall be followed: A. Send a completed “Request for Purchasing Card Form” (see Attachment 2) to the City Manager or designee. Both the Department Director and the City Manager or designee, must sign this form. B. The approved “Request for Purchase Card Form” will then be sent to the Purchasing Officer who will submit the credit card order to the Bank. C. Once the Purchasing Officer receives the new Purchasing Card, the employee will be contacted to arrange for mandatory training and issuance of the Purchase Card. Once trained, the employee must sign a Purchasing Card 22 Agreement in triplicate (see Attachment 1). The original signed agreement will be placed in the employee’s personnel file, the second copy will be retained by the Purchasing Officer in the central Purchasing Card file, the final copy will be given to the employee for his/her records and the card will be issued to the employee. D. The employee must activate the new card by following the instructions on the front of the card. Using the Purchasing Card The Purchasing Card is intended for low value purchases (generally under $500.00 for the total order including sales tax and shipping) that meet the requirements for approved purchases per the “Allowable and Non-Allowable Chart” (see Attachment 3). The Purchasing Card may also be used as a business expense/travel card for staff members who have a business need for travel (generally management staff). EMERGENCY PURCHASES: In the even of an emergency where a purchase needs to be made that is either restricted or beyond the dollar limits set by this policy, the card holder will obtain approval from the City Manager or designee/or Department Director prior to making the purchase. The City Manager or designee will send a request to allow the purchase or increase the dollar limit for a particular card holder to the Purchasing Officer. When placing a telephone, faxed or mailed order, the Cardholder should: • Provide name, card number and expiration date on the card. • Instruct merchant to deliver to 9770 Culver Blvd., Culver City, CA 90232. • Instruct merchant to enter “PC–(your Cardholder name), (your Division number)” in the Purchase Order number field. • (If the merchant’s Purchase Order number field is not large enough to accommodate all the required information, then instruct merchant to include your Division number in the body of the packing slip). • Request that a packing slip or receipt be sent with each order, to include the line item price(s), tax and shipping costs, if applicable. • Include receipt document with the Monthly Purchasing Card Transaction Log (reference Attachment 4) for reconciliation purposes. When a Cardholder is required to make a purchase in person from a merchant who accepts the Purchasing Card, the following procedures shall be followed: 23 • The merchant will complete a charge receipt which includes the following information: - Imprint of your card, including card number expiration date, and your name. - Date and amount of purchase. - Brief description of item(s) purchased. - Imprint of merchant name and identification. • As the charge receipt is being completed, the merchant will obtain authorization for the transaction via either a telephone 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 the card). • The merchant will request that the Cardholder sign the charge receipt. Before signing the charge receipt, verify that the dollar amount is correct and that sales tax has been included. *The Cardholder will be provided one copy of the signed charge receipt. • The remaining charge receipt copies are used by the merchant for records retention and to obtain payment from their financial institution. *Reminder: If a sales receipt only shows a total amount without a specified sales tax, the employee will be required to tag the item because the City is legally required to pay sales and use tax. If sales tax is NOT paid as a part of the invoice, Accounting will be required to remit the sales and use tax payment to the State Board of Equalization. This amount will be charged against your budget. Card Restrictions The Purchasing Card shall not be used for the following (failure to comply may result in card cancellation): Allowable and Not Allowable (See Attachment 3 for more details) • A purchase, including tax and shipping, which exceeds that Cardholder’s single purchase limit or monthly limit; • The purchase of items available in the City's central warehouse; • The purchase of items that have been identified as requiring special approval (e.g., educational expenses/professional development); • Computer hardware, peripherals, software and services; • Purchase of personal items; • Chemicals or other hazardous materials; • Purchase of items for resale; • On-line auction purchases (e.g., eBay, etc.); • Cash advances through bank tellers or teller machines; • Any product or service normally considered as an inappropriate use of City funds; 24 • Cash or Gift Cards; and • Categories of certain goods and services as provided in Attachment 3, “Allowable and Non –Allowable Chart”. Purchasing Card Payment At the close of each billing cycle, the Purchasing Officer will provide each Department’s Purchasing Card Coordinator or designee with a Statement of Account (Statement) for all of that Department’s Cardholders. After review, the Purchasing Card Coordinator or designee will distribute to each Cardholder his/her Statement for reconciliation. If the Cardholder has purchased an item on the date the billing cycle closes (typically mid- month), the purchase may not be listed on the statement but will show on the next month's statement. The Statement will itemize each transaction that was charged to the Cardholder's Purchasing Card account. Upon receipt of the Statement, the Cardholder is to complete each of the actions listed below: A. Verify all charges for accuracy. If there are any errors, see Disputed Transaction procedures below. B. Allocate each charge line item to the appropriate expense account, using the Monthly Purchasing Card Transaction Log (see Attachment 4). C. Make sure that all charged items on the Statement are listed on the Monthly Purchasing Card Transaction Log. D. Attach the Statement with original supporting documents to the Monthly Purchasing Card Transaction Log. Required supporting documents include: detailed and itemized sales receipts, packing slips, Restaurant and Food Purchase Forms (see Attachment 5), and any other explanatory material needed to demonstrate compliance with the City’s Purchasing Card Policy. E. Completed and Department approved Statements and Transaction Logs, along with all detail supporting documents, must be placed in a large Red envelope labeled “Purchasing Card transactions from Department Name”, and then submitted to Accounting within five business days from receipt of statement. Failure to comply with this requirement may result in loss of Cardholder’s privileges. F. The Accounting Division will be responsible to: • Review supporting documentation and backup for approvals and request additional documentation, if needed, to demonstrate compliance with the P- Card Guidelines. 25 • Notify Department Director and Purchasing Officer of P-Card user violations of Guidelines as soon as is reasonably practicable (including but not limited to late submittals, missing or insufficient backup and documentation, any detected misuse of P-Card etc.). • Make sure account numbers for each transaction on cardholder’s statement are completed and recorded in the City’s financial records in a timely manner. • Work with P-Card holders and Purchasing Officer to maintain list of disputed items and that the City is appropriately credited upon resolution. • Review submittals and guidelines to ensure that proper treatment for sales and use tax is applied. Also, that the City is in legal compliance and that all required reporting is met. • Identify, correct, resolve and report issues pertaining to P-Card. If the Cardholder has returned an item, the Cardholder is to include the credit voucher with the Statement on which the credit appears. If the Cardholder does not have a receipt or packing slip for a purchase, they are to make reasonable efforts to obtain a duplicate copy from the vendor. If this is not possible, include a signed memo with the Statement and the monthly Purchasing Card Transaction Log directed to Accounting explaining the circumstances, signed by the Cardholder, and signed as approved by the Director or designee and the City Manager or Designee. If the Cardholder will not be available to sign the Monthly Purchasing Card Transaction Log and Statement because of leave or travel, the Cardholder is to forward, in advance of due date, all signed and approved charge receipts and credit vouchers to the appropriate Director or designee (Purchasing Card Coordinator). The Director or designee will approve, sign and forward the Transaction Log and Statement to Accounting. If the cardholder is absent, the department is responsible for forwarding the approved monthly statement to Accounting. Any discrepancies would be handled in the department when the employee returns, not later than the next Purchasing Card billing cycle. Disputed Transactions It is the Cardholder’s responsibility to try to resolve disputed items with the merchant. The Cardholder must also notify the Bank, the Purchasing Officer and Accounting when an item is in dispute. The Bank will send a “Cardholder Statement of Disputed Item” form (see Attachment 6) to the Cardholder. This form must be completed and faxed to the Bank and Purchasing Officer as soon as possible, but no later than 30 days after the date of transaction. If the Cardholder has questions regarding the information on the Statement of Disputed Item form, or problems regarding the reversal of a transaction, the Purchasing Officer 26 should be contacted for assistance. Cancellation Should the Cardholder terminate employment with the City, the Cardholder must submit the completed Monthly Purchasing Card Transaction Log and Purchasing Card to the appropriate Director or designee. The Director or designee will be responsible for forwarding the Purchasing Card to the Purchasing Officer for card cancellation. Human Resources Department will maintain a checklist for all items that need to be returned to the City and supervisor shall collect all these items prior to the employee leaving the department or the City. If the employee fails to turn in the Purchase Card and receipts, the final paycheck will be held until the issue is resolved to the City’s satisfaction. Lost or Stolen Cards If the card is lost or stolen, or if there are fraudulent charges, the Cardholder is responsible for immediately notifying the Purchasing Card Bank, his/her Director or designee and the Purchasing Officer. If appropriate, the Police Department should be notified depending on the situation (e.g. robbery, burglary, etc.). The Cardholder is responsible for any fraudulent and unresolved charges. The Cardholder is to provide the following information to the appropriate Director or designee and Purchasing Officer: complete name, card number, date reported to the police, if the bank was notified, and any purchases made on the day the card was lost or stolen. A new card will be issued by the Purchasing Card Bank within fifteen (15) business days from the time the card was reported lost or stolen. A new account number will be assigned to the Cardholder’s new card. Changes to Cardholder Information Changes to a Cardholder's name should be immediately reported by memo to the Purchasing Officer through the Director or designee. The Cardholder will then turn in his/her obsolete card once the Purchasing Officer receives a revised card and sign all required new card paperwork, including Cardholder Purchasing Card Agreement. If a Cardholder transfers to another department within the City, the Cardholder must immediately return his/her card to the Purchasing Officer for cancellation. The Cardholder must forward all Purchasing Card receipts and the current Log to his/her supervisor for final reconciliation. In the event that the new department requires the employee to be issued a Purchasing Card, the procedure for obtaining a new card must be followed. 27 GLOSSARY: Approving Official – The Approving Official is the Department Director or designee. The Approving Official is a critical checkpoint for internal control purposes. The Approving Official reviews the monthly statements and all purchases to verify they are necessary and for official City purposes only. Cardholder – A City employee whose name is on the Purchase Card. The cardholder is authorized to make purchases of commodities on behalf of their department and should be familiar with city procurement policies and procedures. The cardholder reconciles his/her monthly bank statement and forwards it along with all receipts to the Approving Official. Cardholder Statement – The monthly statement of account received at the end of the billing cycle which lists transactions for that period. Purchasing Card - A City issued and controlled credit card administered by the City’s Purchasing Officer. Purchasing Card Coordinator – A staff member assigned by each Department Director who is responsible for assuring that all approvals, documentation/ receipts and statements are consolidated and forwarded to Accounting by the due date each month. PROCEDURAL GUIDELINES: Exhibit A – Purchasing Card Limits Attachment 1 – Cardholder Purchasing Card Agreement Attachment 2 – Request for Purchasing Card Form Attachment 3 – Allowable and Non-Allowable Chart Attachment 4 – Purchasing Card Statement Attachment 5 – Restaurant/Food Items Form Attachment 6 - Sample - Cardholder Statement of Disputed Item Form 28 EXHIBIT A PURCHASING CARD LIMITS Executive Card Holder (City Manager and Department Heads) • Single Purchase Limit: Not to exceed $5,000 • 30-day Limit: Not to exceed $20,000 Purchasing Card Holder (City Staff other than City Manager and Department Heads) • Single Purchase Limit: Not to exceed $500 • 30-day Limit: Not to exceed $15,000 29 30ATTACHMENT 1 CITY OF CULVER CITY CARDHOLDER PURCHASING CARD AGREEMENT The City of Culver City (the “City”) is pleased to present you with this Purchasing Card. It represents the City’s trust in you and your empowerment as a responsible agent to safeguard and protect the City’s assets. I, Name Here , hereby acknowledge receipt of City MasterCard Purchasing Card No. P Card Account Number . As a cardholder, I agree to comply with the terms and conditions of this Agreement and the Purchase Card procedures. I acknowledge receipt of this Agreement and a copy of the City’s Purchasing Procedures; and I confirm I have read and understand their terms and conditions. I agree to use this card only for City-validly approved purchases and agree not to use it for any other reason, including to charge personal purchases or any other personal purpose. I understand my use of this card will be audited and any discrepancies will be reported to proper authorities. I further understand improper use of this card can result in criminal and civil penalties and in disciplinary action, up to and including termination of employment. If I fail to use this card in any way other than as permitted, then I, hereby, authorize the City to deduct from any money otherwise due to me from the City, including wages an amount equal to the total amount, including any applicable interest, resulting from my unauthorized use. I also agree to allow the City to collect, by all legal or equitable means available, any and all amounts due as a result of my inappropriate use of this card, even if I am no longer employed by the City. I understand the City may terminate my right to use this card at any time with or without any cause, notice or warning. I agree to return the card to the City immediately upon the request of the City Manager or designee, or upon termination of my employment. Cardholder Signature: Date: Print name: Dept. Approval Signature: Date: Print name: Margarita Lee, Purchasing Officer Phone: (310) 253- 6552 Original: Personnel File Copy: Purchasing Officer Copy: Employee Return card to Purchasing: Signature: Date: 31 32 ATTACHMENT 2 CITY OF CULVER CITY REQUEST FOR PURCHASING CARD DATE: _______________________________ TO: Purchasing Officer FROM: _______________________________ SUBJECT: Request for Purchasing Card TYPE OF CARD: _______________________________ (Executive or Regular) I request the following employee to be authorized for a Purchasing Card. FULL NAME (print): _____________________________________________ TITLE: ___________________________________________________ EMPLOYEE ID NUMBER: _______________________________________ PHONE#: ___________________________________________________ DIRECTOR (print): ___________________________________________________ JUSTIFICATION FOR CARD (explain in detail why the name of the employee listed above should be assigned a Culver City Purchasing Card and the benefit to the City. The justification will warrant the issuance of a card.) ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Approved By: Department Director: __________________________________ City Manager or Designee: __________________________________ 33 ATTACHMENT 3 CITY OF CULVER CITY ALLOWABLE AND NON-ALLOWABLE CHART PURCHASE TYPE DESCRIPTION BUSINESS MEALS Only City Council, City Manager, Assistant City Manager and Department Heads are authorized to use credit cards to purchase meals for official business meetings. All other staff may use credit cards for meals when on approved authorized travel. Also, complete and submit the Transaction Log (Attachment 5), indicating the names and affiliations for all members of the party whose meals are paid for using the Purchasing Card, and then state the business purpose for the expense. You must include an itemized receipt showing food and beverage items purchased, rather than the receipt showing only the total. Alcohol and personal entertainment are not authorized to be charged to a city credit card. ALLOWABLE * BUSINESS TRAVEL The Purchasing Card may be used for all travel related purchases including airline tickets, hotel accommodations, car rentals, business meals, etc. if it complies with this P-card Policy and the Travel Section of the City’s General Purchasing Procedures and Polices. EXCEPTION: The employee should use his or her own credit card for any personal expenses, such as personal phone calls, video rentals, etc. ALLOWABLE * GENERAL SUPPLIES General departmental supplies, including office supplies, fax/computer supplies, first aid supplies, and miscellaneous departmental expenses. ALLOWABLE INTERNET PURCHASES Use secure sites only. Do not send card number via email except internally. (No on-line auction purchases allowed such as eBay.) ALLOWABLE MAINTENANCE/REPAIRS SUPPLIES Maintenance and repair supplies, including maintenance tools and equipment. However, a record of all purchases will be kept in the cardholders Departmental personnel file. ALLOWABLE 2 34 PURCHASE TYPE DESCRIPTION SEMINARS, ETC. (USING DEPT. BUDGET) Seminars, training, books etc. that have been budgeted for within the department, and that are NOT funded through the City’s Education Reimbursement/Professional Development Program. ALLOWABLE CAPITAL EXPENDITURES NON- ALLOWABLE CHEMICALS and HAZARDOUS MATERIALS Any chemical purchase that required the City to keep on file a Material Safety Data Sheet (MSDS) should not be purchased with the Purchase Card. NON- ALLOWABLE CLUB DUES AND CONTRIBUTIONS NON- ALLOWABLE COMPUTER Hardware, peripherals, software, services and rentals except Information Technology designated personnel. NON- ALLOWABLE CONSULTANT FEES NON- ALLOWABLE CONTRACT SERVICES Any service contracts that require insurance and/or bonds (includes all Personal /Professional Contract Services). NON- ALLOWABLE EDUCATION REIMBURSEMENT AND PROFESSIONAL DEVELOPMENT The Purchasing Card may NOT be used to purchase goods or services when Education Reimbursement/Professional Development Program funds will be charged. A special form requiring your supervisor’s and the department director’s written approval is required. The approved form is submitted to Human Resources for processing. NON- ALLOWABLE ON-LINE AUCTIONS On-Line auction purchases are not allowed (such as eBay). NON- ALLOWABLE LEASES NON- ALLOWABLE 2 35 PURCHASE TYPE DESCRIPTION ON-SITE SERVICES Any Professional Service, maintenance or repairs performed on City property. NON- ALLOWABLE UNIFORMS Uniform rental and/or cleaning. Linen services. NON- ALLOWABLE UTILITIES Telephone*, power, gas, water NON- ALLOWABLE *Allowable with Department Director approval 2 36 ATTACHMENT 4 Purchasing Card Statement @ 00/00/07 CARDHOLDER ACTIVITY Employee Name: PCard Number Cardholder Signature ________________________________ TOTAL ACTIVITY $ JDE Account Number Charge Credit Supplier Number Transactions Posting Date Sale Date 37 ATTACHMENT 5 Restaurant/Food Items Purchased with Purchasing Card Employee Name: __________________________ Transaction Date: ____________ Department: _____________________________ Transaction Amount: $ __________ Dept. Approval: ___________________________ Client Name Name of Business Explain purpose of meal: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 38 ATTACHMENT 6 SAMPLE ______________________________________________________________________ CITY OF CULVER CITY CARDHOLDER STATEMENT OF DISPUTED ITEM Com m ercial Card Statement of Disputed Item Instructions: Your company should first make good-faith efforts to settle a claim or dispute for purchases directly with the merchant. If assistance from Bank of America is required, please complete this form, and mail or fax with required enclosures within 60 days from the billing close date to: Bank of America- Commercial Card Services Operations P.O. Box 53142 Phoenix, AZ 85072-3142 Phone (800) 352-4027 Fax (888) 678-6046 Company Name: Account Number: Cardholder Name: This charge appeared on my statement: Billing close date: Transaction date: Reference Number: Merchant Name: Merchant Location: Posted Amount: Disputed Amount: ****Please check only ONE of the following**** Unauthorized Transaction I did not authorize, nor did I authorize anyone else to engage in this transaction. No goods or services represents by the above charge were received by me or anyone I authorized. The card was in my possession at the time of the transaction. Charge Amount Does Not Agree With Order Authorizing The Charge The amount entered on the sales slip was changed from $_______ to $_______. I have enclosed a copy of the unaltered sales slip. Merchandise or Services Not Received I have not received the merchandise or services represented by the above transaction. The expected date of delivery or services was _______. (On your business letterhead, please describe your attempt to resolve this matter with the merchant, the date(s) you contacted them and their response). Disputed Transaction I did engage in the above transaction, which I am now disputing. I have contacted the merchant, but I have been unable to return the merchandise and/or I have been unsuccessful in reaching an acceptable resolution with them. (On your business letterhead, please describe your attempt to resolve this matter with the merchant, the date(s) you contacted them and their response). Defective or Wrong Merchandise I returned the merchandise on (date) _______ because it was:(please choose one): __defective __wrong size __wrong color __wrong quantity Recurring Charges After Cancellation On _____ (date), I notified the above merchant to cancel our monthly/yearly agreement. Since then, my account has been charged ______ time(s). (Please enclose a copy of the merchant’s response to confirmation of your confirmation of your cancellation). Items Charged Already Paid by Other Means I already paid for the goods and/or services represented by the above charge by means other than my card. (W e must have a copy of the front and back of the canceled check, money order, cash receipt, credit card statement, or other documentation as proof of purchase/payment. On your business letterhead, please describe your attempt to resolve this matter with the merchant, the date(s) you contacted them and their response). Credit Appears as a Charge The enclosed Credit Voucher appeared as a charge on my card account. Credit From Merchant Not Received issued to me by the merchant shown above. Hotel Reservation Canceled I did make a reservation with the above hotel which I then canceled on ______ (date) at ______ (time). At that time, I asked for a cancellation number which is _________. (Please check one if applies): __I was not given a cancellation number __I was not told at the time that I made the reservation that my account would be charged for a "No Show" Double or Multiple Charges My account has been doubled charged. The first charge appeared on my ______ (date) billing. Cardholder's Name (Printed) Cardholder's Signature Date Phone Number 2 39