HomeMy WebLinkAboutResolutions - 2004.09.09 - 27740MISCELLANEOUS RESOLUTION #04240 September 9, 2004
BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON
RE: DEPARTMENT OF MANAGEMENT AND BUDGET / PURCHASING DIVISION - REVISIONS TO P-CARD
POLICY
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS pursuant to Miscellaneous Resolution #99168 and revised in
Miscellaneous Resolution # 01147, the Oakland County Board of Commissioners approved
the "Oakland County Purchasing Card Policy" in accordance with Public Act 266 of
1995; and
WHEREAS revisions have been recommended by the Department of Management and
Budget, and the Auditing Division, to modify the current purchase limits (see
attachment A, section 3.7); and
WHEREAS revisions have been recommended by the Department of Management and
Budget, and the Auditing Division to allow P Card usage for the purchases of supplies
for Public Meetings (see attachment A, section 5); and
WHEREAS revisions have been recommended by the Department of Management and
Budget, and the Auditing Division to change the Cardholder Agreement (see attachment
B) to reflect the designation of the purchase limits placed upon each individual card
holder; and
WHEREAS revisions have been recommended by the Department of Management and
Budget, and the Auditing Division to permit further use of the P Card for authorized
County travel expenses (see attachment A, section 6).
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
approves of the revisions to the Oakland County Procurement Card Policy as outlined
in attachment A and Cardholder Agreement as outlined in Attachment B.
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 and effect the signing of the new Cardholder Agreement form by each card
holder.
Chairperson, on behalf of the Finance Committee, I move the adoption of the
foregoing resolution.
Finance Committee
011.6( ,4ca
FINANCE COMMITTEE:
Motion carried unanimously on a roll call vote.
Attachment A
Oakland County Procurement Card Policy
(changes in BOLD)
County of Oakland
Procurement Card Policies & Procedures
1.0 PURPOSE:
To set forth the Policies and Procedures for the Oakland County Procurement Card
Program.
2.0 INTRODUCTION:
Oakland County Procurement Program has been established to provide a convenient
means with which to make purchases and/or travel arrangements (registrations,
airfare, hotel, and parking) and, at the same time, reduce the costs associated with
initiating and paying tor those purchases. The County Purchasing Division is responsible
for managing the program and each division is responsible for managing its Cardholder
accounts. Two areas of responsibility have been defined within each division to assist in
this management effort: the Cardholder and the Card Administrator. It is important to
understand that these two areas of responsibility do not necessarily equate to two
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:
.Jn
3.1 Procurement Card: A charge card issued to an employee of Oakland County for
the purpose of making authorized purchases and/or travel arrangements on the
County's behalf. The County will issue payment for charges made with the
Procurement Card.
3.2 Cardholder: The County Employee- whose name appears on the Procurement
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 charges against the Cardholder's account are backed with
supporting documentation and that the documentation is retained within the
divisioritTard 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.
07-08-04 revised 3
2
3.5 Program Administrator: County Purchasing Division employee responsible for
administering the Procurement Card Program for the County and acting as the
main contact between the County and the Bank.
3.6 Transaction/Charge Limit: A dollar limitation of purchasing authority assigned to
the Cardholder for each total charge made with the Procurement Card.
3.7 Spending Limit: A dollar limitation of purchasing authority assigned to the
Cardholder for the total of all charges made during a specific time period.
A. Daily charges shall be adjusted to reflect the current Management
and Budget Voucher Limit for small purchases. The daily charge
maximum limit shall be twice the amount of the current Voucher
Limit.
B. Monthly charges may not exceed the cap as approved per cardholder
by Division Manager or Director.
C. Directors may request in writing to the Program Administrator to
increase the daily charge limit for designated emergency response
personnel within their Department/Division
Divisions may establish lower limits on a per Cardholder basis.
If cardholder is authorized to use Procurement Card to make travel
arrangements, limits may vary. (Contact the Program Administrator for
limits).
3.8 Default Account: The County account number assigned to an individual
Cardholder's Procurement Card. Only one default account can be assigned to any
one Procurement Card and all charges made with the Procurement Card will be
posted into that default account unless those charges are reallocated (See Section
3.9 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.).
(3.5 "Division Contact" and 3.9 "Statement of Account" have been eliminated)
4.0 CARDHOLDER ENROLLMENT:
4.1 A complete Cardholder Enrollment Form must be submitted for each prospective
Cardholder.
07-08-04 revised
escrinea in uamana uoun usmess xeguiations
3
4.2 All prospective Cardholders must attend an orientation session and sign a
Cardholder Agreement Form to be eligible to receive a Procurement Card. (See
Attachment B)
5.0 AUTHORIZED CARD USE: Non-Travel
5.1 A. Cardholders are authorized to use the Procurement Card to purchase any
merchandise required as a function of their duties at the County with th e
exception of the following:
1. Items for Personal Use
2. Items for Non-County Purposes
3. Alcoholic Beverages
4. Entertainment
5. Recreation
6. Contracting
7. Gasoline (To be purchased with County Fleet Card)
8. Motorized Vehicles
9. Capital Equipment
10. 1099 reportable items (See 5.5)
11. Any purchases prohibited by County policy or not related to
County business
..a
5.2 Food & beverage items may only be purchased for public/group meetings as
5.3 Only the Cardholder whose name is embossed on the Procurement 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.
5.4 The total value of any one charge made with the Procurement Card may not
exceed the single transaction limit set for each cardholder.
5.5 1099 reportable items are for amounts $600.00 and over which are reported
to the I.R.S. for tax purposes. Whether or not a purchase is determined to be
1099 reportable depends upon the object level 3 (line-item) it is charged
against. A few examples are professional services, clothing allowance, barber
services and special projects. (If you need further clarification, please
contact the Accounts Payable Unit of Fiscal Services for a complete list.)
07-08-04 revised
4
6.0 AUTHORIZED CARD USE: Travel
6.1 Cardholders issued a Procurement 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 conference registrations, airfare charges,
hotel accommodations, and parking.
6.2 Receipts for lodging must be supported by a copy of the itemized bill showing
per night charges and all other charges. A credit card receipt for the total
will not be accepted.
6.3 Car rental expenses and fuel charges related to the car rental may be
charged to the card for the purposes of extradition only or if absolutely
necessary for County business upon prior approval of travel.
6.4 County travel regulations will govern the allowable limits for all travel
expenses.
6.5 For travel purposes, supporting documentation should at attached to the
proper MB form as defined in Oakland County Business Expense
Reimbursement Regulations.
6.6 All County travel forms must be properly submitted by the cardholder to
Fiscal Services within fifteen (15) working days at the end of the travel or by
the 7th day of each month for any and all travel expenses charged to the card.
7.0 UNAUTHORIZED AND/OR INAPPROPRIATE CARD USE:
7.1 The Procurement Card must never be used to purchase items for personal use or
for non-County purposes, even if the Cardholder intends to reimburse the County.
7.2 The Procurement Card slall of be used to supersede Blanket Orders and other
Purchase Orders currently in 'place.
VIOLATION OF THIS POLICY, INCLUDING UN.AU7'HORIZED PURCHASES
BY A CARDHOLDER AS DEFINED IN SECTION 5.0 and 6.0, SHALL RESULT
IN CARD CANCELLATION, DISCIPLINARY ACTION UP TO AND
INCLUDING DISMISSAL FROM COUNTY EMPLOYMENT, AND CRIMINAL
PROSECUTION.
8.0 MAKING A PURCHASE WITH THE PROCUREMENT CARD:
8.1 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.
7.3
07-08-04 revised
to
5
8.2 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 supporting
documentation set forth in Section 3.0 (paragraph 3.9).
8.3 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 "Procurement Card"
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
with the requirements for support documentation set forth in Section 3.0
(paragraph 3.9).
9.0 MERCHANDISE RETURNS AND EXCHANGES:
9.1 The Cardholder is responsible for contacting the' merchant when merchandise
purchased with the Procurement Card is not acceptable (incorrect, damaged,
defective, etc.) and arrange a return for credit or an exchange.
9.2 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 purrbase--Resceiving cash or checks to resolve a credit is prohibited.
9.3 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.
9.4 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.
10.0 RECORD RETENTION:
07-08-04 revised
6
10.1 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 Procurement Card and verifying that documentation
complies with the requirements for support documentation set forth in Section 3.0
(paragraph 3.9).
Note: In addition to obtaining the documentation, it is recommended that the
Cardholder also record the details of each purchase in a transaction log.
11.0 VERIFICATION OF CHARGES:
11.1 Cardholders are accountable for all charges made with their Procurement Card.
The Cardholder or department designee, if applicable, is responsible for checking
all transactions 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
11.2 If a particular charge or credit does not appear on-line, it should be checked
against future on-line transaction information. If the charge or credit does not
appear within 60 days after the original charge was made, the Cardholder must
notify the Program Administrator.
11.3 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 on-
line transaction information on which the disputed charge appears (See Section
12.0)
11.4 After all transactions have been verified by the Cardholder, a signed on-line
transaction report, with supporting documentation should be forwarded to the
Card Administrator.
11.5 The Cardholder is responsible._, for_ notifyinz_trerchants that County purchases are
not subject to sales tax. A statement regarding the County's tax liability will be
provided to each Cardholder.
12.0 RESOLVING ERRORS, DISPUTES, RETURNS AND CREDITS:
12.1 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.
07-08-04 revised
12.2 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.
13.0 CARD ADMINISTRATOR VERIFICATION OF CARDHOLDER CHARGES:
13.1 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 and 6.0. In
the event of questionable transactions, the Card Administrator must contact the
Cardholder to obtain an explanation, supporting documentation and/or
reimbursement.
13.2 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 and 6.0.
3. The Cardholder disputing the charge (see Section 12.0).
All discrepancies must be investigated and resolved. The disposition of each
discrepancy must be documented and retained with the Support Documentation.
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 50 -anti 6.0,-must also be rcported to the Division Manager.
14.0 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.
15.0 PROCUREMENT CARD SECURITY:
15.1 It is the Cardholder's responsibility to safeguard the Procurement Card and
Procurement Card account number at all times.
07-08-04 revised
8
15.2 Cardholders must keep their Procurement Card in a secure location at all times.
15.3 Cardholders must not allow anyone else to use their Procurement Card and/or
Procurement Card account numbers.
15.4 Cardholders must not write their Procurement Card account numbers where
others can easily see them.
16.0 LOST, STOLEN OR DAMAGED PROCUREMENT CARD:
16.1 If a Procurement 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.
16.2 Cardholders must notify the Program Administrator if their cards are lost, stolen
or damaged within 24 hours after reporting the incident to the Bank.
15.1 After the above notification procedures have been completed, a new
Procurement card will be issued to the Cardholder by the Program
Administrator.
16.3 A Procurement 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
17.0 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 Pro_gram
Rnr• Administrator.
18.0 CARDHOLDER TRANSFER OR SEPARATION FROM THE COUNTY:
Prior to transferring from the division or separating from the County, Cardholders must
surrender their Procurement Cards and corresponding support documentation to the
Card Administrator. If the Cardholder is the Card Administrator, the Procurement 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
19.0.
19.0 PROCUREMENT CARD CANCELLATION:
07-08-04 revised
0
9
The Program Administrator must be notified immediately when a Procurement 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.
A: Procurement card Policies & Procedures.doc/cc
07-08-04 revised
11
A
Attachment B
Oakland County Procurement Card Employee Enrollment Form
(changes in BOLD)
OAKLAND COUNTY
Purchasing Card Program
Cardholder Agreement
1, (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. 1 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 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 termination of employment at the
County, criminal prosecution, and/or possible garnishment of wages, if necessary.
5. I understand that the County will monitor and audit my use of the Purchasing Card.
6. 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.
7. 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.
8. I agree to turn in documentation regarding purchases to my supervisor or department designee on a timely basis.
9. 1 understand the County, as a governmental agency, is exempt from sales tax.
10. 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.
11. I understand that if documentation is not submitted in the required time frame, I could be subject to disciplinary
action.
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 Name (Print) Employee ID Number
Employee Signature Date
Daily Limit $ Monthly Limit
Authorized for travel - Yes/No
1, (name) , authorize the above individual to utilize the Oakland County Purchasing Card
for purchases related to this department/division. I have discussed all terms and conditions of this Cardholder
Agreement with the above employee.
Department Manager (Print)
Department Manager Signature Date
Distribution: Cardholder
Division Manager
Program Administrator — Purchasing
Personnel — Employee Records Unit
(Revised 7-08-2004)
"WWI.
G. William Caddell, County Clerk
September 9, 2004 Resolution #04240
Moved by KowaII supported by Zack the resolutions on the Consent Agenda be adopted (with
accompanying reports being accepted).
AYES: Coulter, Crawford, Douglas, Gregory, Jamian, Knollenberg, KowaII, Law, Long, McMillin,
Middleton, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack,
Bullard. (22)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted (with
accompanying reports be accepted).
?/i7 /0L(
!
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is alrue
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on September
9th, 2004 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 9th day of September, 2004.