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ADMINISTRATIVEREGULATION

APPROVED BY:

Eddie Manfro, City Manager

CREDIT CARD (P-CARD) PROCEDURES PAGE 1 Effective Date:April 21, 2014

I. PURPOSE

The purpose of this Administrative Regulation is to set forth the conditions governing the administration and management of the City’s credit card program.

II. ADMINISTRATION

The City of Westminster has a purchasing system as created and governed by Municipal Code Chapter 3.44 et seq (Ordinance 2488) and the “Purchasing Administration” Administrative Regulation, as well as applicable State of California Public codes: Public Contract Code 22000 et seq, Government Code Section 54202.

The City of Westminster uses a variety of methods for the purchase of goods and the process and purchasing limits are described more fully in the “Purchasing Administration” Administrative Regulation as well as Municipal Code Chapter 3.44 et seq (Ordinance 2488).

The City of Westminster has entered into an agreement with Bank of America to provide a credit card program (“Bank of America P-Card”). The City’s credit card program is not intended to and will not be used to circumvent any existing State or City procurement procedures or policies. Indeed, the use of City credit cards must be closely managed, to ensure that the cards are being used properly and efficiently. This administrative regulation details the responsibilities of each cardholder, their supervisor and the P-Card administrator to help ensure a well-managed P-card program that adheres to all City of Westminster regulations and internal controls. A. Basic Guidelines/Responsibilities:

The Administrative Services Department is responsible for the administration of the P-Card program. The Administrative Services Director or designee will serve as the City of Westminster’s P-Card Program Administrator.

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1. The P-Card Program Administrator manages the administration of new accounts, reporting and payment processes.

2. The person whose name appears on the card is the “Cardholder,” and he/she is the only person authorized to buy merchandise or services for the City of Westminster with his/her card. The Cardholder must not, under any circumstances, permit his/her card to be used by another person. The security and correct use of the credit card is the responsibility of the Cardholder.

3. P-Cards shall only be issued to regular, full-time, non-probationary employees of the City Westminster.

4. All Cardholders are assigned to an Approving Official, who must be either a supervisor or a manager; one Approving Official may be responsible for several Cardholders.

5. All requests for issuance of a P-Card are initiated by a Department director who shall complete and sign the “Request, Authorization and Cardholder Acceptance” form. This form is then submitted to the Administrative Services Director to initiate P-Card issuance (Appendix A).

6. Before being issued a P-Card, each Cardholder must sign the “Request, Authorization and Cardholder Acceptance” form (Appendix A). This form includes a statement that each Cardholder understands and will comply with the procurement and contract statutes, laws, rules, accounting guidelines, regulations, policies and procedures of both the State and City of Westminster. Fraudulent use of the card will result in the employee’s termination. A copy of this form is provided to the employee as well as retained in their personnel file.

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7. Within one week of being issued a P-Card for the first time, the cardholder must complete the approved Bank of America “Works Program” online training. Failure to do so will result in suspension of credit card use privileges.

8. Single transaction and 30-day purchase limits will be placed on each cardholder’s P-Card as determined by the P-Card Program Administrator.

9. Failure to abide by all applicable rules, regulations, procedures and deadlines will result in suspension of cardholder privileges by the Program Administrator.

10.P-Cards must be surrendered by the cardholder immediately upon separation from City services. In addition, the Program Administrator – at his/her discretion – may suspend or revoke a Cardholder’s P-Card at the direction of the City Manager.

B. Purpose and Goals of the Credit Card Program:

To provide an alternative method for purchasing small dollar purchases To reduce the administrative burden of processing numerous individual invoices To expedite purchases of needed supplies/services and payments to suppliers To capture savings through bank rebates for early payments To promote overall operational efficiency in the purchasing and accounting

processes

III. USE OF P-CARD AND PROHIBITED USES

The Bank of America P-Card is to be used only for official City of Westminster business and only by the cardholder whose name is imprinted on the card. The cardholder cannot authorize anyone else to use his or her credit card.

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The credit card can be used for the purchase of approved supplies and certain services that cost less than $1,000, including tax, as long as the vendor accepts VISA credit cards and the purchase is within the employee’s approved single transaction and/or 30-day spending. This dollar limit is in line with the City’s purchasing policy allowing purchases under this dollar limit to be made without needing a requisition or purchase order.

Cardholder’s should be reminded that all purchases must conform with the City of Westminster’s purchasing policy as outlined in Administrative Regulations and authorized by Municipal Code 3.44 et seq (Ordinance 2488).

Certain products or services are excluded from the City of Westminster’s P-Card program.

Wire Transfer, Money Orders Financial Institutions: Manual Cash Advance Financial Institutions: Automatic Cash Advance Non-Financial Institutions: Foreign Currency, Money Order, Travelers Checks Timeshares Betting, Casino Gaming Chips, Off-Track Betting Political Organizations Religious Organizations Court Costs, Alimony, Child Support Fines Bail and Bond Payments Tax Payments Government Loan Payments Automated Referral Service

In addition to the general prohibitions placed on the P-Card program, employees are strictly prohibited from using the credit card to:

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Purchase personal items Purchase supplies for the benefit of another department Split purchases to circumvent purchasing dollar limits Purchase alcoholic beverages

At his/her discretion, the P-Card Administrator may add further prohibitions to the above list. Violation of the prohibited purchases clause will result in immediate suspension or revocation of the P-Card. Depending on the violation, additional action as permitted by the City’s personnel policies will be pursued as allowed. IV. ADMINISTRATION OF P-CARD PROGRAM

Each Cardholder is solely responsible for reconciling the charges on their P-Card each month in a timely manner. This responsibility includes utilizing the Bank of America web-based “Works Program” to enter the proper General Ledger Account Code for each purchase made. In addition, all necessary back-up must be included with the monthly report. This includes receipts, confirmations, and all other documentation to justify each monthly charge.

The back-up documentation must clearly indicate the purpose of the charge. If the receipt is unclear, the cardholder must write a description on the receipt. It is the responsibility of the cardholder to provide clear and accurate documentation to justify/explain each charge.

Failure by a Cardholder to submit accurate and timely reports will result in cardholder privileges being suspended by the Program Administrator. Repeated suspensions will result in revocation of the P-Card.

A. Reviewing Monthly Statements

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The Bank of America web-based “Works Program” produces a monthly report (“Cardholder Charge Report”) for each Cardholder. This report must be printed and reviewed by the cardholder to ensure the accuracy of each charge. Reports are available on the first business day of each month.

B. Allocating Charges: Process and Deadlines

The first business day of each month, the cardholder will be able to review their monthly Statement of Account on-line utilizing the Bank of America “Works Program.” The Statement of Account itemizes each transaction that was charged to the cardholder’s P-Card account the previous month.

Upon receipt of the Statement, the cardholder must, by the tenth (10 th) of each month:

Review the Statement of Account and verify the accuracy of all charges Access the “Works Program” and allocate each charge to the proper General

Ledger Account number (Department/Program and Account Codes) Attach all sales receipts and back-up documentation to the Statement of Account

(a detailed explanation of the purpose of the charge should be written on each receipt where the reason for the charge is not clear/obvious)

o For example: a receipt for lunch must show the reason for the meal and the number of City employees in attendance

o Receipts/back-up for charges related to conferences or training should clearly indicate what the training was for and/or the name of the conference

Complete – if necessary – the “Missing Receipts” form (Appendix B) and acquire the necessary supervisor signature (the cardholder should not delay processing the monthly statement because of any missing receipts)

Submit the Statement of Account and all receipts to the Administrative Services Department by the tenth (10 th ) of each month

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Failure to allocate charges by the tenth (10 th) of each month and submit the “Cardholder Charge Report” with all necessary receipts and back-up will result in suspension of P-Card privileges. Repeated failure to properly allocate charges and/or submit receipts and back-up documents will result in revocation of the P-Card.

C. Missing Receipts

It is understood and assumed that Cardholders will acquire and submit necessary back-up documentation for each credit card charge. However, there may be circumstances where a receipt for a certain purchase is missing.

A “Missing Receipt” form must be completed (Appendix B) and submitted with the monthly “Cardholder Charge Report.” Furthermore, the “Missing Receipt” form must be signed by the Cardholder and the Cardholder’s supervisor.

As with the timely allocation of charges and submission of back-up documentation, repeated failure to provide receipts will result in suspension and/or revocation of the P-Card.

D. Timing of Purchases

If the cardholder has purchased an item on or near the date the billing cycles closes, the purchase may be listed on the next month’s statement. If the cardholder has returned an item, the credit voucher should be included with the Statement of Account on which the credit appears.

If a cardholder did not have any purchase activity on the P-Card during a billing cycle, the Statement of Account will not be generated.

E. Cardholder Unable to Review/Approve by Deadline

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If the cardholder will not be available to review his/her Statement of Account because of leave or travel in time to meet the tenth (10 th) of the month deadline, the cardholder must forward all charge receipts and credit vouchers to the appropriate approving official in advance of his/her leave (i.e., their supervisor). In this case, the approving official will have to download the cardholder’s Statement of Account, code each transaction, sign and forward the cardholder’s Statement of Account and all receipts to the Administrative Services Division by the tenth (10th) of the month.

V. DEPARTURE OR TRANSFER OF CARDHOLDER

P-Cards are issued to individual employees. If an employee terminates employment with the City, his/her credit card must be returned to the Administrative Services Department as part of the separation process. The Program Coordinator will in turn notify Bank of America that the card will no longer be valid.

If an employee is transferred to another department, their card will be cancelled. It will be necessary for the Department Director of the employee’s new department to submit a “Request, Authorization and Cardholder Acceptance” form (Appendix A) requesting a new card for the employee. VI. DISPUTED CHARGES/SUSPECTED FRADULENT USE

It is the cardholder’s responsibility to resolve any questionable or disputed items which appear as transactions on the Statement of Account. If any item purchased with the credit card is found to be defective or unacceptable, the cardholder has the responsibility to return the item(s) to the merchant for replacement or for a credit. If the merchant refuses to replace the item or issue a credit voucher, the purchase of this item will be considered to be in dispute.

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The Bank of America P-Card program has security safeguards to prevent fraudulent use of the P-Card. However, the cardholder should treat the P-Card as they would their own credit cards and ensure the safeguarding of the card. Careful review of all charges is required in order to identify and help prevent fraudulent use of the P-Card.

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