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HomeMy WebLinkAboutResolutions - 2001.05.24 - 26545County Board of Card Policy" in recommended by a purchasing card plus adjustments of a "Cardholder County Board of Oakland County MISCELLANEOUS RESOLUTION #01147 May 24, 2001 BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: MANAGEMENT AND BUDGET / PURCHASING DIVISION - REVISION TO THE PURCHASING CARD POLICY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS pursuant to M.R. #99168, the Oakland Commissioners approved the "Oakland County Purchasing accordance with Public Act 266 of 1995; and WHEREAS revisions to that policy have been Management and Budget to allow and monitor the use of for County travel (new sections 5.1.1, 5.1.2, 5.1.3, to sections 3.4 and 6.1) as well as allowing the use Agreement". NOW THEREFORE BE IT RESOLVED that the Oakland Commissioners approves of the revisions to the Purchasing Card Policy as outlined in Attachment A. BE IT FURTHER RESOLVED that the Department of Management and Budget notify the County Elected Officials, Department Directors, and Division Managers of the revised policy. Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution. FINANCE COMMITTEE FINANCE COMMITTEE: Motion carried on a roll call vote with Taub voting no and Melton absent. (-) 1 County of Oakland Purchasing Card Policies & Procedures - - 1.0 PURPOSE: To set forth the Policies and Procedures for the Oakland County Purchasing Card Program. 2.0 INTRODUCTION: Oakland County Purchasing Program has been established to provide a convenient means with which to make purchases and, at the same time, reduce the costs associated with initiating and paying for those purchases. The County Purchasing Division is responsible for managing the program and each division is responsible for managing its Cardholder accounts. Three areas of responsibility have been defined within each division to assist in this management effort: the Cardholder, Card Administrator, and Division Contact. It is important to understand that these three areas of responsibility do not necessarily equate to three separate individuals within the division. It is permissible for one individual to be assigned one or more of these responsibilities as defined in these Policies and Procedures. The ultimate decision as to how each of these responsibilities is assigned will be made within each division. 3.0 DEFINITIONS: 3.1 Purchasing Card: A charge card issued to an employee of Oakland County for the purpose of making authorized purchases on the County's behalf. The County will issue payment for charges made with the Purchasing Card. 3.2 Cardholder: The County Employee whose name appears on the Purchasing Card and is accountable for all charges made with that card. 3.3 Card Administrator: County employee(s) within each division responsible for verifying that all charged against the Cardholder's account are backed with support documentation and that the documentation is retained within the division. Card Administrators will allocate individual charges to the appropriate account numbers. Cardholders may be their own Card Administrator and a Card Administrator may oversee more than one Cardholder account depending on how the division elects to manage its accounts. A division may also have more than one Card Administrator. 3.4 Independent Review Committee: All transactions and card related activities may be subjected to review by an Independent Review Committee. The Committee will consist of members from Auditing, Treasurer, Fiscal Services and Purchasing. 05-02-01 revised 3.5 Division Contact: County employee within each division responsible for receiving and disseminating Purchasing Card information within their division and for relaying Purchasing Card information from their division to the Program Administrator. It is recommended that each division have only one Division Contact. 3.6 Program Administrator: County Purchasing Division employee responsible for administering the Purchasing Card Program for the County and acting as the main contact between the County and the Bank. 3.7 Transaction/Charge Limit: A dollar limitation of purchasing authority assigned to the Cardholder for each total charge made with the Purchasing Card. 3.8 Spending Limit: A dollar limitation of purchasing authority assigned to the Cardholder on the Cardholder Enrollment form for the total of all charges made during a specific time period. Maximum limits for all cardholders except the County travel card are as follows: A. Daily charges may not exceed $1,000.00. B. Monthly charges may not exceed $10,000. Divisions may establish lower limits on a per Cardholder basis. 3.9 Statement of Account: A listing of all transactions charged to the Cardholder's card account up to the end of the weekly billing cycle. An electronic statement will be provided to each division on a weekly basis. 3.10 Default Account: The County account number assigned to an individual Cardholder's Purchasing Card. Only one Default Account can be assigned to any one Purchasing Card and all charges made with the Purchasing Card will be posted into that Default Account unless those charges are reallocated (See Section 13.0). 3.11 Support Documentation: A merchant produced or non-County document that records the relevant details for each item purchased including quantities, amounts, a description of what was purchased, the total charge amount and the merchant's name and address (e.g. sales receipt, original invoice, packing slip, credit receipt, etc.). 4.0 CARDHOLDER ENROLLMENT: 4.1 A complete Cardholder Enrollment Form must be submitted for each prospective Cardholder. 05-02-01 revised 3 4.2 All prospective Cardholders must attend an orientation session and sign a Cardholder Agreement Form to be eligible to receive a Purchasing Card. (See Attachment B) 5.0 AUTHORIZED CARD USE: 5.1 A. Cardholders are authorized to use the Purchasing Card to purchase any merchandise required as a function of their duties at the County with the exception of the following: 1. Items for Personal Use 2. Items for Non-County Purposes 3. Cash Advances 4. Food and Beverages including Alcoholic Beverages 5. Entertainment 6. Recreation 7. Contracting 8. Gasoline (To be purchased with County Fleet Card) 9. Motorized Vehicles 10. Capital Equipment 11. Any purchases prohibited by County policy or not related to County business 5.1.1 Cardholders issued a Purchasing Card specifically for travel-related expenses are to follow the procedures and guidelines per the attached Oakland County Business Expense Reimbursement Regulations. Authorized cardholders may use the card for hotel accommodations, conference reservations, and airfare charges. Car rental expenses may be charged to the card for the purposes of extradition only. County travel regulations will govern the allowable limits for all travel expenses. 5.1.2 All county Travel Forms must be submitted properly by the cardholder to Fiscal Services within a maximum offifteen (15) working days for any and all travel expenses charged to the card. 5.1.3 Travel expenses charged by the Cardholder to the card that upon subsequent review are determined not allowable under the Travel Regulations, will be paid to Oakland County by the Cardholder upon submission of all required travel forms. 5.2 Only the Cardholder whose name is embossed on the Purchasing Card is authorized to use the card and is responsible for ensuring that all charges made with the card are in compliance with these Policies and Procedures. 05-02-01 revised 4 5.3 The total value of any one charge made with the Purchasing Card may not exceed the single transaction limit stipulated on the Cardholder's Enrollment Form. 6.0 UNAUTHORIZED AND/OR INAPPROPRIATE CARD USE: 6.1 The Purchasing Card must never be used to purchase items for personal use cr for non County purposes, as listed under section 5.1, even if the Cardholder intends to reimburse the County. 6.2 The Purchasing Card shall not be used to supersede Blanket Orders and other Purchase Orders currently in place. 6.3 VIOLATION OF THIS POLICY, INCLUDING UNAUTHORIZED PURCHASES BY A CARDHOLDER AS DEFINED IN SECTION 5.0, SHALL RESULT IN CARD CANCELLATION, DISCIPLINARY ACTION UP TO AND INCLUDING DISMISSAL FROM COUNTY EMPLOYMENT, AND CRIMINAL PROSECUTION. 7.0 MAKING A PURCHASE WITH THE PURCHASING CARD: 7.1 Confirm that the selected merchant accepts MasterCard. If not, choose another vendor or submit a requisition to Purchasing so that the purchase can be made via a Purchase Order. 7.2 When making purchases in person, the Cardholder must sign the charge receipt and retain the customer copy. The Cardholder should verify that either the charge receipt or sales receipt complies with the requirements for support documentation set forth in Section 3.0 (paragraph 3.11). 7.3 When making purchases via telephone, computer, mail order,. etc., Cardholders should give the merchant the account number embossed on their card and direct the merchant to include the following on the shipping label and/or packing slip: 1. Cardholder name and phone number 2. Division name 3. Complete delivery address, including building name and/or number 4. The words "MasterCard Purchase" Cardholders are encouraged to receive their own shipments; however, if someone will be receiving a shipment on the Cardholder's behalf, the Cardholder must notify them in advance. Regardless of who receives the shipment, the Cardholder is responsible for obtaining all documentation (packing slips, mail order form copies, etc.) related to the purchase and verifying that the documentation complies 05-02-01 revised 5 with the requirements for support documentation set forth in Section 3.0 (paragraph 3.11). 8.0 MERCHANDISE RETURNS AND EXCHANGES: 8.1 The Cardholder is responsible for contacting the merchant when merchandise purchased with the Purchasing Card is not acceptable (incorrect, damaged, defective, etc.) and arranging a return for credit or an exchange. 8.2 If Merchandise is returned for credit, the Cardholder is responsible for obtaining a credit receipt from the merchant and retaining that receipt with the documentation for that purchase. Receiving cash or checks to resolve a credit is prohibited. 8.3 If merchandise must be exchanged, the Cardholder is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation showing the proper resolution of the exchange is to be .retained with the support documentation for that purchase. 8.4 In the event of a return, exchange or other credit transaction, the Cardholder is responsible for notifying the Card Administrator of any dispute within seven (7) days. 9.0 RECORD RETENTION: 9.1 Cardholder Responsibility: The Cardholder is responsible for obtaining purchase • documentation from the merchant (sales receipt, packing slip, etc.) to support all purchases made with the Purchasing Card and verifying that documentation complies with the requirements for support documentation set forth in Section 3.0 (paragraph 3.11). Note: In addition to obtaining the documentation, it is recommended that the Cardholder also record the details of each purchase in a transaction log. 10.0 VERIFICATION OF CHARGES: 10.1 Cardholders are accountable for all charges made with their Purchasing Cards. The Cardholder or department designee, if applicable, is responsible for checking all transaction against the corresponding support documentation to verify their accuracy and propriety. This check should be done regularly using the County's on-line transaction review system and/or the Cardholder's printed Statement of Account. 05-02-01 revised 6 10.2 If a particular charge or. credit does not appear on-line or on the Statement of Account, it should be checked against future on-line transaction information and/or the next Statement of Account. If the charge or credit does not appear within 60 days after the original charge was made, the Cardholder must notify the Program Administrator. 10.3 If the Cardholder disputes a charge, the nature of the dispute and the final resolution must be documented. This documentation must be retained with the Statement of Account on which the disputed charge appears (See Section 11.0) 10.4 After all transactions have been checked, the Cardholder or their supervisor must sign the Statement of Account. The signed statement and all support documentation must be forwarded to the Card Administrator. 10.5 The Cardholder is responsible for notifying merchants that County purchases are not subject to sales tax. A statement regarding the County's tax liability will be provided to each Cardholder. 11.0 RESOLVING ERRORS, DISPUTES, RETURNS AND CREDITS: 11.1 Cardholder: There may be occasions where items on the statement do not correlate with receipts. The transaction may not have been made by the Cardholder, the amount may be incorrect or there is a quality issue. In the event of a disputed charge, the Cardholder must try to resolve the dispute directly with the merchant. If the merchant agrees that an error has been made, they will credit the account. The Cardholder or Card Administrator must verify the credit has occurred the following month. If the Cardholder is unable to resolve the issue, the Program Administrator must be notified. 11.2 Program Administrator: If the dispute cannot be resolved, the merchant must be notified in writing that the County is questioning the charge or is dissatisfied with the purchase. The dispute must also be submitted in writing to Comerica within 60 days of the date of the statement listing the disputed charge. The inquiry document submitted to the Comerica Customer Service Department should ask . that the charge be verified or the purchase removed from the account. until the dispute is resolved. 12.0 CARD ADMINISTRATOR VERIFICATION OF CARDHOLDER CHARGES: 12.1 The Card Administrator is responsible for reviewing all transactions on a weekly basis to verify that each transaction is supported by adequate documentation and meets all the criteria for authorized card use set forth in Section 5.0. In the event of questionable transactions, the Card Administrator must contact the Cardholder to obtain an explanation, supporting documentation and/or reimbursement. 05-02-01 revised 7 12.2 Discrepancies associated with a charge may result from: 1. Insufficient support documentation. 2. Not meeting one or more of the criteria for authorized card use set forth in Section 5.0. 3. The Cardholder disputing the charge (see Section 11.0). All discrepancies must be investigated and resolved. The disposition of each discrepancy must be documented and retained with the Support Documentation and/or Statement of Account. Cardholders are accountable for all discrepancies. Note: If a discrepancy cannot be resolved, the Program Administrator must be notified. Discrepancies resulting from unauthorized card usage, as outlined in Section 5.0, must also be reported to the Division Manager. 13.0 CHARGE ALLOCATION TO NON-DEFAULT ACCOUNTS: For any given transaction, the Card Administrator may reallocate the charge from the default account to several County accounts. If the reallocation option is not exercised by the last business day of the billing cycle, the total amount of the charge will be posted into the default account. Reallocation at this point will require a Journal Voucher. Note: Reallocation to Revenue or Salary accounts is not permitted. 14.0 PURCHASING CARD SECURITY: 14.1 It is the Cardholder's responsibility to safeguard the Purchasing Card and Purchasing Card account number at all times. 14.2 Cardholders must keep their Purchasing Cards in a secure location at all times. 14.3 Cardholders must no allow anyone else to use their Purchasing Cards and/or Purchasing Card account numbers. 14.4 Cardholders must not Write their Purchasing Card account numbers where they can be easily seen by others. 15.0 LOST, STOLEN OR DAMAGED PURCHASING CARD: 15.1 If a Purchasing Card is lost, stolen or damaged, the Cardholder must notify the Bank immediately at 1 -800-759-9610. Representatives are available 24 hours a day. 05-02-01 revised 8 15.2 Cardholders must notify the Program Administrator if their cards are lost, stolen or damaged within 24 hours after reporting the incident to the Bank. 15.3 After the above notification procedures have been completed, a new Purchasing Card will be issued to the Cardholder by the Program Administrator. 15.4 A Purchasing Card that is found after it has been reported lost or stolen must be destroyed by cutting it in half The same procedure applies if a card is damaged. Both card halves must be forwarded to the Program Administrator. 16.0 CARDHOLDER ACCOUNT MAINTENANCE: Whenever any information contained on a Cardholder's Enrollment Form changes, a revised Enrollment Form must be completed and signed by the department designee. The revised Cardholder Enrollment Form is then to be forwarded to the Program Administrator. 17.0 CARDHOLDER TRANSFER OR SEPARATION FROM THE COUNTY: Prior to transferring from the division or separating from the County, Cardholders must surrender their Purchasing Cards and corresponding support documentation to the Card Administrator. If the Cardholder is the Card Administrator, the Purchasing Card and support documentation must be surrendered to the Cardholder's immediate supervisor. In either case, the card must be canceled as per the instructions in Section 18.0. 18.0 PURCHASING CARD CANCELLATION: The Program Administrator must be notified immediately when a Purchasing Card is to be canceled. The card must be destroyed by cutting it in half Both card halves must be forwarded to the Program Administrator. 05-02-01 revised OAKLAND COUNTY Purchasing Card Program Cardholder Agreement I, (employee name) , as the Cardholder, agree to the following conditions regarding my use of the Oakland County Purchasing Card: 1. I understand that by using the Purchasing Card, I will be making financial commitments on behalf of Oakland County and that the County will be liable for all charges made with the Purchasing Card. 2. I will strive to obtain the best value for the County when purchasing merchandise and/or services with the Purchasing Card. 3. I agree to use the Purchasing Card only for authorized purchases and in an appropriate manner, as defined in the Purchasing Card Program Policies and Procedures. 4. I agree to reimburse Oakland County for any unauthorized purchases. 5. I understand that should I make an unauthorized purchase with the Purchasing Card or use the Purchasing Card in an inappropriate manner, I will be subject to disciplinary action including possible card cancellation, termination of employment at the County and criminal prosecution. 6. I understand that the County will monitor and audit my use of the Purchasing Card. 7. I agree to return the Purchasing Card to my supervisor at Oakland County as defined in the Purchasing Card Program Policies and Procedures, immediately upon the request of the Purchasing Card Program Administrator or upon my transfer to a different department or upon termination of my employment at Oakland County. 8. I have received a copy of the Oakland County Purchasing Card Program Policies and Procedures and will abide by all the requirements set forth in said document. 9. I agree to turn in documentation regarding purchases to my supervisor or department designee on a timely basis. 10. I understand the County, as a governmental agency, is exempt from sales tax. 11. I have received a copy of the Oakland County Business Expense Reimbursement Regulations and will abide by all the requirements set forth in the said document. My signature below indicates that I have read this agreement, understand it and agree to be bound by it and any subsequent amendments or addenda, for as long as I am a Purchasing Card holder at Oakland County. Employee Date cc. Contract Administrator Division Manager Personnel — Employee Records Unit (Revised 01-01-2001) MISCELLANEOUS RESOLUTION #99168 BY: Finance Committee, Sue Ann Douglas, Chairperson IN RE: MANAGEMENT AND BUDGET/PURCHASING DIVISION - AUTHORIZATION TO PURCHASE GOODS USING PURCHASING CARDS To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Purchasing Division is desirous to establish a purchasing card program for purchase of goods costing less than $500; and WHEREAS use of purchasing cards will improve departmental operating efficiency, emergency response time and reduce number of financial transactions processed and checks issued; and WHEREAS Act 266 of Public Acts of 1995 authorizes and regulates credit card transactions involving local units of governments by officers and employees; and WHEREAS Act 266 requires the County Board of Commissioners to adopt by resolution a written policy that provides the following: • Designation of an employee or officer to oversee compliance, • Restrictions on use of purchasing cards for official business, • Documentation detailing goods, cost, date, and purpose, on purchase, • Protection and custody of card, procedure for lost and stolen cards, • Termination of card if officer or employee is terminated, • System of internal accounting controls to monitor use, • Procedure for approval of purchasing card invoices before payment, • Balance including interest due be paid within 60 days of the initial statement date, • Disciplinary measures consistent with law for the unauthorized use of a purchasing card; and WHEREAS a policy has been developed for Oakland County in accordance with State law (see Attachment W); and WHEREAS various purchasing card systems have been reviewed by representatives of Purchasing, Fiscal Services and the Oakland County Treasurer's Office; and WHEREAS Comerica has been chosen as the Commercial Card Service provider. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the Oakland County Purchasing Card Policy per Attachment "A". BE IT FURTHER RESOLVED that all purchasing cards, credit cards and charge accounts in the name of Oakland County must be reviewed, processed and monitored by the Program Administrator as specified in the Purchasing Card Policy. BE IT FURTHER RESOLVED that the Board of Commissioners authorizes the Department of Management and Budget to enter into an agreement on behalf of Oakland County. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE THE FOREGOING RESOLUTION pr I HER L Brock - atte r son, County Executivp Date Resolution 401147 May 24, 2001 Moved by Douglas supported by Webster the resolution be adopted. AYES: Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Gregory, Law, McPherson, Millard, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Webster, Amos, Appel, Brian. (22) NAYS: Garfield, Taub. (2) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on May 24, 2001 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 24 daylt May, 2001.