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HomeMy WebLinkAboutProcurementCardPolicy-Sept 2015Page 1 Administrative Policies and Procedures Title: Financial Policies Resolution No.: Section: Procurement Card Policy Date of Version: Sept. 2015 SECTION I - POLICIES A. All users will be informed of, agree to, and sign the written guidelines for procurement card use. These will be kept on file in the Purchasing Division. B. All users must be approved by a department director or higher. C. Procurement cards may be used for approved business transactions and travel expenses (airfare, lodging, class registration, car rental). D. Procurement cards may not be used for personal charges, related party purchases (from restricted vendors), cash advances, gasoline within Johnson County, or meals while traveling on City business (reimbursed through per diem). E. The City excludes certain vendors from access via procurement cards, such as jewelry stores, pharmacies, personal service companies, etc. F. All users will be personally liable for personal charges or unapproved transactions made on their procurement cards. G. Employees are responsible for purchase documentation, including adequate vendor receipts and any additional information to show the public purpose of the purchase. H. Procurement cards are subject to transaction, daily and monthly tiered limits set by the department director. If a tier must be exceeded, it must be approved by the department director and the Purchasing Division. I. Available Single Transaction/Daily/Monthly Dollar limits are as follows: i. $250 Single, $500 Daily, $1,000 Monthly ii. $500 Single, $1,000 Daily, $2,000 Monthly iii. $1,000 Single, $1,500 Daily, $2,000 Monthly iv. $1,500 Single, $2,500 Daily, $5,000 Monthly v. $5,000 Single, $10,000 Daily, $20,000 Monthly Page 2 J. Users are prohibited from splitting large purchases in multiple transactions to circumvent their transaction, daily or monthly limits. K. Users are responsible for any returns or transaction disputes. Contact the Purchasing Division for dispute forms. L. Users are responsible for ensuring that they are not charged sales tax for transactions or that they receive a credit if charged, due to the City of Iowa City’s “tax-exempt” status. M. Users are responsible for reporting lost or stolen procurement cards to the Purchasing Division. N. The user’s supervisor is responsible for collecting procurement cards from terminated employees, performing a final reconciliation for the card, and returning the card to the Purchasing Division. O. Procurement card users are responsible for performing a monthly reconciliation of their transactions. P. Use of another employee’s procurement card is prohibited. If an employee needs a procurement card to conduct business, they should discuss obtaining their own procurement card with their supervisor. Q. The procurement cards will be set to expire every two years and each authorized employee will receive a new procurement card upon expiration. R. Failure to comply with these policies and procedures could result in the suspension of the procurement card or permanent loss of the procurement card and could also result in disciplinary action up to and including termination. SECTION II - PROCEDURES A. Requests for new procurement cards must be filled out by the division head and signed by the division head, the department director, and the Purchasing Agent. B. The Purchasing Division will contact JPMorgan Chase to facilitate the issuance of the procurement cards. Upon receipt of the procurement card, the Purchasing Division will then make arrangements to deliver the new or reissued card to the employee. The Purchasing Division will obtain and file a written acknowledgment from each user that they have read and will adhere to the procurement card guidelines. C. For the issuance of procurement cards to new users, the Purchasing Division will schedule and provide training to the employee for Munis and for the procurement card guidelines and policies and procedures and to deliver their procurement card at that time. Page 3 D. The user must activate their new procurement card prior to use. E. The Senior Accounts Payable Clerk will download transactions from the credit card vendor, JPMorgan Chase, and load them into Munis. F. The user or designee must reconcile their monthly account statement to their receipts and documentation using the Munis financial system. G. Reconciliation Procedures: i. Statements are available by the 15th of every month. ii. Reconciliation is due on the 29th of the month or as directed by the Senior Accounts Payable Clerk. iii. Employees log into MUNIS, update account codes, scan receipts and describe the transaction in the description box. H. The procurement card user’s supervisor is responsible for approving procurement card reconciliations in Munis. When they have been approved, they are reviewed by the Senior Accounts Payable Clerk in the Accounting Division, who reviews the reconciliations for correctness and completeness. I. If a procurement card user fails to comply with these policies and procedures or to submit timely reconciliations, the Finance Department will provide written notification to the procurement card user and their supervisor. The Finance Department will determine whether or not the procurement card should be suspended or revoked; this determination will be made in consultation with the user’s supervisor. The procurement card user’s supervisor in conjunction with the Human Resource office, the City Manager’s office, and the City Attorney’s office will determine if disciplinary action is required. The employee may also be subject to disciplinary action up to and including termination. J. Lost or stolen procurement cards must be reported by the user to the Purchasing Division and the user’s supervisor immediately if during business hours. After hours or weekend losses must be reported directly to JPMorgan Chase, and then followed up with notification to their supervisor and the Purchasing Division. K. For internet returns, the employee is responsible for coordination with the vendor over securing credit and item return. Maintain return documentation and code the return to the same org and expense as the original purchase.