250-18
PURCHASING CARDS

POLICY & PROCEDURE

Subject: PURCHASING CARDS

Index: FINANCE & INFORMATION TECHNOLOGY

Number: 250-18 (210-10 Repealed)

Effective Date

2/14/2012

Supersedes

6/1/2008

Page

1 of 5

Staff Contact

Iwen Wang

Approved By

Denis Law

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210-10 Credit Card Use for Official Government Purchases is hereby repealed.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 cardholders 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 designed to be a cost effective alternative to the traditional invoice payment process; it does not affect requirements to comply with State or Local procurement laws, regulations, or policies.

The Card is not intended to replace effective procurement planning which can result in quantity discounts, reduced number of trips and more efficient use of City resources.

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.

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.

City of Renton

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:        

City of Renton

Purchasing Card Application

Card Number:        Name on Card:

Employee Information

Name (Last, First, MI):        

Employee Department/Title:        

Office phone:            City e-mail:    

City 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