HomeMy WebLinkAbout250-18Dc ry of
oQ O '`' POLICY & PROCEDURE
Subject: PURCHASING CARDS Index: FINANCE & INFORMATION
TECHNOLOGY
Number: 25 9-3,8 (210-10 Repe,led)
Effective Date Supersedes Page Staff Contact Approved
2/14/2012 6/1/2008 1 of 5 Iwen Wang
1.0 PURPOSE:
To establish policies and procedures regarding the use of Purchasing Cards to procure
goods or services for official City business purposes.
2.0 ORGANIZATIONS AFFECTED:
All departments and divisions
3.0 REFERENCES:
RCW 42.24.115 Municipal corporations and political subdivisions -- Charge cards for
officers' and employees'travel expenses
RCW 43.09.2855 Local governments — Use of credit cards
210-01 Travel Policy
210-02 Purchasing Bidding and Contracting Requirements
210-08 Food and Beverage Expenditures
210-10 Credit Card Use for Official Government Purchases is hereby repealed.
4.0 POLICY:
4.1 It is the policy of the City of Renton for authorized cardho ders to make
purchases using a City issued purchasing card ("Card" or "Cards") to provide
efficient, cost effective means to pay for goods and services purchased for
official City business purposes.
Authorized Cardholders are responsible for becoming knowledgeable about
proper use of the Card, authorized expenditures, and the documentation
requirements.
The Card is desi ned to be a cost effective alternative to the traditional invoice
pavment process; it does not affect requirements to complv with State or Local
procurement laws, re ulations. or policies.
The Card is not intended to reqlace effective procurement plannin which can
result in quantitv discounts, reduced number of trips and more efficient use of
Citv resources.
Purchasing Cards Policy#250-18
p.2
The FIT Administrator may establish additional rules and procedures from time
to time consistent with this Policy and provide the appropriate forms and
instructions. Exceptions to the rules may be made under declared emergencies
upon written directive of the Mayor, Chief Administrative Officer, designated
Emergency Management Official or their designee.
5.0 DEFINITIONS:
5.1 Approving Director. A City of Renton Administrator or designee, who has the
responsibility of designating cardholders, setting monthly credit and transaction
limits, and ensuring transactions are for official City businesses.
5.2 Authorized Employees. Regular full or part time status with the City. An
employee who has temporary status or is a volunteer will not be considered an
authorized employee for the purposes of this policy.
5.3 Authorized Cardholders. After receiving authorization from their Department
Administrator, an authorized employee will become an authorized cardholder
once they have filled out and signed the Purchasing Card application and Use
Agreement.
5.4 Purchasing Card. A credit card issued from the bank or procurement card
service provider of the City's choice. The City of Renton name along with the
authorized cardholders name will be embossed on the front of the card.
5.5 Purchasing Card Program Coordinator. Unless otherwise designated, the City's
Accounts Payable section shall be the Purchasing Card Program Coordinator(s)
Coordinator").
6.0 PROCEDURES:
6.1 Card Issuance:
After receiving authorization from a Department Administrator, an eligible
employee must complete and sign the City of Renton Purchasing Card
Application ("Application") and the City of Renton Purchasing Card Agreement
Agreement"). These forms must be reviewed and signed by the appropriate
Approving Director and forwarded to the Coordinator. The Approving Director
will propose monthly credit and transaction limits, subject to the FIT
Administrator's approval. These limits will be based on the Cardholder's
purchasing responsibilities as determined by the Approving Director in
consultation with FIT Administrator.
Upon Coordinator's receiving of the fully approved and executed application and
agreement, a Purchasing Card will be ordered in the name of the Authorized
Cardholder.
6.2 Purchasing Card Program Coordinator Responsibilities:
Maintain a current list of Authorized Cardholders at all times and have signed
applications and agreements on file for each Authorized Cardholder.
Review the use and payments of the Purchasing Card Program monthly and
report any abnormalities to the Authorizing Director and FIT Administrator.
Purchasing Cards Policy#250-18
p. 3
Ensure any changes to or termination of credit is promptly executed; collect the
Card back from Cardholder upon suspension/termination of Card privileges, or
upon employee separation.
6.3 Cardholder Responsibilities:
Be accountable and responsible for the charges made to the Card in his/her
name.
Use Purchasing Card for official City business and for authorized expenses only;
and comply with terms and conditions contained in the Card Application and
Agreement attached herein and incorporated as a part of this policy.
Obtain and retain original receipts, packing slips, and shipping documents for
each purchase made with the purchasing card.
Reconcile, or arrange for the reconciliation of, the purchasing card monthly
report/statement. Confirm that original receipts documenting all transactions
on the report are supportable as appropriate City expenditures are attached to
the report. Have the monthly report reviewed and approved according to
internal department policies and submitted to the Coordinator by the
appropriate due dates. Include appropriate additional documentation when
consistent with other City policies (i.e.,travel authorization forms).
Ensure proper follow-up on and resolve any reporting deficiencies and disputed
purchases.
Ensure all purchases comply with State, City, and departmental policies and
procedures including but not limited to those referenced herein.
The only person entitled to use the Card is the person whose name appears on
the face of the Card. Purchasing Cards should be treated with extreme care in
the same manner as a personal credit card. The Cardholder is responsible to
report any exceptions or lost or stolen card immediately to their supervisor and
the Coordinator.
6.4 Approving Director Responsibilities:
Ensure Card uses are for eligible City business expenses consistent with state,
City, and departmental policies.
Monitor the filing of monthly reports to assure they are filed correctly and on a
timely basis.
Administer the Purchasing Cards within their work unit, including assisting with
the application process, notification of lost cards or disputed (non-city) charges
and other routine tasks associated with the program.
Purchasing Cards Policy#250-18
p.4
D c'ty°f 1 ; City of Renton
0 LL.-
U'' Purchasing Card Agreement
I understand that the City of Renton has authorized my use of a Purchasing Card for approved City business related
expenses. In accepting this card, I agree to the following terms and conditions:
1. The card may only be used for payment of authorized and allowed expenses on behalf of the City of
Renton.
2. The card shall not be used to make cash advances or to obtain refunds.
3. The card shall not be used for personal use of any kind under any circumstances.
4. Except for under declared emergencies, the card may not be utilized where a procurement process is
required by the City's Purchasing Policy or State bidding,contracting requirements.
5. The card shall not be used to make any payments for items covered by a written contract/agreement
including but not limited to professional service agreements, public works contracts, and/or human
services contracts.
6. The card should not be utilized to purchase or lease of capital equipment(items that are$5000 or more in
value and has an expected life of more than 1 year)regardless the authorized purchasing limit.
7. The card should not be used to purchase office furniture unless approved by the Facilities Director.
8. The card should not be utilized to purchase technology equipment or software unless approved by the
Information Technology Director.
9. I understand that when using the Purchasing Card for travel and meal expenses that I am governed by the
City of Renton Travel(210-01)and Food& Beverage(210-08) policies.
10. I understand that my Purchasing Card limits are set forth on the Purchasing Card Application and can be
revised up or down at any time by the Approving Director or by the FIT Administrator.
11. Whenever a purchase is made, I will retain all receipts,packing slips and shipping documents.
12. I understand that it is my responsibility to reconcile, or arrange for reconciliation, my Purchasing Card
monthly statement. It is my responsibility to have the statement approved by my Director/Manager. The
Purchasing Card Coordinator in the Finance Department must receive the reconciliation, appropriate
approvals,and all receipts by the established due dates.
13. I understand that I will surrender the Purchasing Card to the Purchasing Card Coordinator or the City may
revoke the Purchasing Card,with or without cause, or if:
a. the Purchasing Card is used in a manner which is inconsistent with any City or Department Policies
and procedures and/or the requirements of this Agreement;or
b. I change responsibilities, scope of assignment, transfer to another department, resign, or otherwise
terminate City employment;or
c. the monthly reconciled Purchasing Card statement and receipts are not received by the Purchasing
Card Administrator by the established due dates;or
d. finance charges are incurred as a result of my negligence.
14. I understand that if my card is lost or stolen I must report it immediately to my Authorizing Director and
the Purchasing Card Coordinator.
15. I will be held personally and financially responsible for purchases not conforming to the applicable policies
or this agreement. I authorize such charges to be deducted from my pay check without limitation.
Signature: Date:
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Purchasing Cards Policy#250-18
p. 5
D c tyof
y;;= ,, City of Renton
Q,O, i:,Purchasing Card Application
Card Number: Name on Card:
Emplovee Information
Name(Last, First, MI):
Employee Department/Title:
Office phone: City e-mail:
Citv Information:
Department/Division:
Default G/L Account:
Transaction Limit: Monthly Credit Limit:
Cardholder Acknowledgement: By signing this Card application, I acknowledge I have read and agree to be bound
by the terms of the Purchasing Card Policies and the accompanying Agreement. I have also received or have
access to a copy of the city's Travel, Purchasing, and other policies related to spending City funds. I understand
that this card is to be used only for charges incurred in my official capacity for eligible City business expenses.
Applicant Name,Title Signature/Date
Approving Director Acknowledgement: By approving this Card application, I understand and agree to assume the
responsibilities as an Approving Director as outlined in the Purchasing Card Policies. I understand that this card is
to be used for official City business only, and all expenses must be consistent with City Polices.
Approving Director Name,Title Signature/Date
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