HomeMy WebLinkAboutResolutions - 2007.11.01 - 9301Miscellaneous Resolution #07251 November 1, 2007
BY: Finance Committee, Mike Rogers, Chairperson
Re: Management and Budget / Purchasing Division - Revisions to the
Purchasing Card Policy & Procedures
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 to clarify the wording, terminology, and internal
controls defined in the Purchasing Card Policies & Procedures (see
sections 2.0, 3.3, 3.9, 4.1, 5.1, 6.1, 6.5, 7.2, 7.3, 8.2. 8.3, 9.4,
10.2, 11.1, 11.2, 11.4, 11.5, 12.1, 12.2, 13.0, 13.1, 13.2, 14.0, 16.2,
17.0, and 18.0 in Attachment —A"); and
WHEREAS revisions have been recommended by the Department of
Management and Budget to emphasize the sales tax exemption that exists
on County P-Card purchases in the Purchasing Card Policies & Procedures
(see sections 3.9 and 8.2 in Attachment —A"); and
WHEREAS revisions have been recommended by the Department of
Management and Budget to delineate the responsibilities of the Card
Reconciler in the Purchasing Card Policies & Procedures (see section
10.2 in Attachment —A");
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners approves of the revisions to the Oakland County
Purchasing Card Policies & Procedures 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 Purchasing Card Policies & Procedures.
Chairperson, on behalf of the Finance Committee, I move the adoption of
the foregoing resolution.
Finance Cpmmittee
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
County of Oakland
Procurement Card Policies & Procedures
APPLICATION
Applies to all County employees and officials authorized to procure goods and services through the purchasing card
program outlined in the paragraphs below known as Attachment "A.-
PROCEDURE
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.
1.0 PURPOSE:
To set forth the Policies and Procedures for the Oakland County Procurement Card Program.
2.0 INTRODUCTION:
Oakland County Procurement Card 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 for 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 AtimiRktatof Reconciler. It is important to understand
that these two areas of responsibility do FVOt=1,1000g811415A equate to two separate individuals within the
division. It is not permissible for tzlise an individual to be assigned as a reconciler for their own card otte=oc
move=of-theee=Fespeftsittilit4os 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 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 A4444.iitig.pator Reconciler: 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 division. Card Aithilimig.rator=s Reconciler will allocate individual
charges to the appropriate account numbers. --- : - t• : - _ -- • - Card
AtImitirirstratrop Reconciler 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 itrtr
Cardholders may not be their own Card AtilltiltiStfa4Of Reconciler.
3.4 Independent Review Committee: All transactions and card related activities may be subjected to review by
an Independent Review Committee.
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 lirnit 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 their Procurement Card to make travel arrangements, then 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
14.0).
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.). County purchases are not subject to sales tax. (See Section 11.0, paragraph 1 1.5).
4 CARDHOLDER ENROLLMENT:
4.1 A complete Cardholder &wsa:1=Interu4 Agreement Form must be submitted for each prospective Cardholder.
4.2 All prospective Cardholders must attend an orientation session and sign a Cardholder Agreement Form to
be eligible to receive a Procurement Card.
Note: Cardholder Agreements can be requested through the Purchasing Division.
5 AUTHORIZED CARD USE: Non-Travel
5.1 Cardholders are authorized to use the Procurement 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. Alcoholic Beverages
4. Entertainment
5. Recreation
6. Contracting
7. Gasoline (To be purchased with County Fleet Card)
8. Motorized Vehicles
9. Capital Equipment
10. 4.099=repoiltabie=itents4See=575+ Professional Services
11. Any purchases prohibited by County policy or not related to County business
5.2 Food & beverage items may only be purchased for public/group meetings as described in Oakland
County Business Regulations
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.
4T..4
6 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 eitaehod 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 ithoti4d-at shall be 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 7 th day of each month for any and all travel expenses
charged to the card.
7 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 shall not be used to supersede PFlaillte4=Offters Purchasing contracts and/or other
Purchase Orders currently in place.
7.3 VIOLATION OF THIS POLICY, INCLUDING UNAUTHORIZED PURCHASES BY A CARDHOLDER AS
DEFINED IN SECTION 5.0, 6.0 and 67.0, SHALL RESULT IN CARD CANCELLATION, DISCIPLINARY
ACTION UP TO AND INCLUDING DISMISSAL FROM COUNTY EMPLOYMENT, AND CRIMINAL
PROSECUTION
8 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.
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). County purchases are
not subject to sales tax (See Section 11.0. paragraph 1 1.5).
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. Department / Division name
3. Complete delivery address, including building name and/or number
4. The words "Procurement Card 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 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 purchase. Receiving 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 Reconciler of any dispute within seven (7) days.
10.0 RECORD RETENTION:
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).
10.2 Card Reconciler Responsibility: The Card Reconciler is responsible for verifying that documentation
complies with the requirements for support documentation set forth in Section 3.0 (paragraph 3.9). The
Card Reconciler shall obtain manager signed approval of the monthly transaction report and retain the
monthly report along with the supporting documentation within their department/division.
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11.0 VERIFICATION OF CHARGES:
11.1 Cardholders are accountable for all charges made with their Procurement Card. The Gfir4604€143#.4M
depittstotesigtteerif-app4iitabl Card Reconciler 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 30 days after the original charge
was made, the Gemilteldef Card Reconciler 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 (monthly) have been verified by the Go:414E440f Card Reconciler. The department /
division a manager shall signed the €144-1410 monthly transaction report, with supporting documentation
attached and €1496 for=warrdock€4140=Gard4Afftiftititrate* retained in their department / division.
11.5 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.
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 AcitRitilistioteof Reconciler must verify the credit has occurred the following month. If the
Cardholder is unable to resolve the issue, the Program Administrator must be notified.
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 30 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 ArD4414:141,S=T-PEA=T414 RECONCILER VERIFICATION OF CARDHOLDER CHARGES:
13.1 The Card ilf€14m,inietrratof Reconciler 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. 6.0 and 67.0. In the event of questionable transactions, the Card
#4026444+64Ett@f Reconciler 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, 6.0 and 67.0.
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 5.0. 6.0 and 67.0, must also be reported to
the department / division Manager or Director.
14.0 CHARGE ALLOCATION TO NON-DEFAULT ACCOUNTS:
For any given transaction, the Card 4€1twistigtrator Reconciler 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 Jottma4 General Ledger 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.
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 and Card Reconciler if their cards are lost, stolen or
damaged within 24 hours after reporting the incident to the Bank.
16.3 After the above notification procedures have been completed, a new Procurement card will be issued to
the Cardholder by the Program Administrator.
16.4 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 14wo.1.1~44 Cardholder Agreement Form changes,
a revised Emotimem Cardholder Agreement Form must be completed and signed by the department
designee. The revised Cardholder Rttp$24.14,94m4 Agreement Form is then to be forwarded to the Program
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 A41414.imigttatof Reconciler,
Gar41.1401€1or—io.4410-Garckartiforifiziot-ratov In the absence of the Card Reconciler, 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:
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.
Resolution #07251 November 1, 2007
Moved by Potts supported by Greimel the resolutions (with fiscal notes attached) on the Consent Agenda,
be adopted (with accompanying reports being accepted).
AYES: Burns, Coleman, Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory,
Greimel, Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott,
Spector, Woodward, Zack, Bullard. (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda were adopted (with accompanying reports being accepted and appointments being confirmed).
I HEREBY APPROVE THE FOREGOING RESOLUTION
ACTING PURSUANT TO 1973 PA 139
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, 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 November 1, 2007,
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 1st day of November, 2007.
1, County Clerk