PACE - Financial Policies - Purchase Card

PURCHASE CARD (P Card)

1. PURPOSE - To establish policies and procedures for the City of Camas purchase card program in order to improve the efficiency, flexibility and convenience related to purchasing goods and services. Purchase cards provide an alternative procurement method for purchases. The use of purchase cards are not a means to avoid or bypass purchasing policies. Rather, purchase cards are to be used within the same statutes, rules, policies, and procedures as purchases by any other means of payment.
2. SCOPE - All elected officials, employees and volunteers acting on behalf of the City of Camas. As used throughout this document, “employee” means all persons included in this “scope”. Reference RCW 43.09.285, RCW 9A.56.280 and WAC 236-48-250-3.
3. POLICY - It is the policy of the City of Camas to utilize purchase cards for transactions over-the-counter, via telephone, by mail, or over the internet. The use of purchase cards is to enable employees to quickly and efficiently purchase goods and services. Each cardholder is required to account for all transactions made using the purchase card. This includes maintaining original, detailed receipts (printed confirmations of internet transactions). The use of a City of Camas purchase card is a privilege and not a right. Misuse of the purchase card privilege may result in immediate disciplinary action up to and including termination. Cardholders who delay or otherwise do not follow procedures are subject to restrictions or card cancelation.

• Card Issuance

Only regular status employees of the City will be permitted to receive a purchase card (not temporary, seasonal, from a staffing agency, or on extended leave of absence). Exceptions may be made by the department head. An individual may only receive the card after completing and signing a Cardholder Agreement Form (see Appendix). The Purchase Card Program Administrator processes all requests for a purchase card. These requests must be submitted in writing (email, request form, etc.) from the requesting Department Director. Each card issued will have limits established by the approving director. These limits will be based on the cardholder’s purchasing responsibilities as determined by the approving manager. These limits also require the approval of the City Administrator or designee.

• Purchase Card Limits

The Purchase Card simplifies the purchasing and bill-paying process by facilitating point-of- demand procurement. Since purchasing authority is delegated to the ordering department, this enables the authorized Cardholder to place an order directly with the supplier. The Purchase Card program provides enhanced control for all transactions based on five specific authorization criteria:

The authorization process occurs through the Visa network that supports the Purchase Card processing services under the agreement between the City of Camas and Bank of America. When the Supplier requests a purchase authorization, the Visa system electronically validates the transaction against pre-set limits established by the City. If that limit becomes too low to accommodate the monthly requirements, the department head may contact Finance. Changes to individual cardholder dollar limits may be made on a temporary basis if determined to be necessary by the Department Director due to special circumstances.

Accounts Payable has the capability to view a large selection of daily reports to effectively monitor the use of Purchase Cards. This system will also identify opportunities to further maximize the City’s significant buying power through contract negotiations.

• PURCHASING GUIDELINES

​​​​​​​The Purchase Card program is designed to streamline smaller purchases that are made in person over-the-counter, via telephone, internet, in person, or by mail. It will not circumvent the City’s purchasing policies and procedures. The Purchase Card may be used at any vendor who accepts Visa.

• Alcoholic beverages
• Capital equipment
• Cash advances/Travelers checks/ATM withdrawals/Cash back in addition to purchase
• Cash Refunds – must be credited back to the Purchase Card.
• Cellular phone monthly charges
• Consulting services
• Capital or Fixed Assets
• Entertainment purchases (theater, movie, sporting event, etc.)
• Established contracts
• Gift Certificates (exceptions are made at the discretion of the department head)
• Items for Resale
• Personal items and services
• Reimbursable personal expenses such as gas for a personal vehicle while traveling on city business
• Split purchases
• Telecommunications services
• Temporary help
• College Tuition (registration fees for training classes/webinars is not considered tuition for purposes of this policy)

• ​​​​​​​​​​​​​​​​​​​​​​​​​​​​PAYMENT GUIDELINES AND  PROCESS

​​​​​​​​​​​​​​Proof of Purchase Documentation and Reconciliation:

The cardholder (or the proxy as defined by the department) must retain all receipts and reconcile their purchase card within the timelines set by the Finance Department. The cardholder may be financially responsible for unauthorized purchases and purchases not supported by receipts. The purchase card transactions must be reconciled, approved by the appropriate supervisor, and submitted to Finance along with all receipts. Finance charges incurred due to cardholder’s failure in submitting receipts in a timely manner will be the cardholder’s personal obligation and can be subject to payroll deductions. Individual departments will determine who the receipts should be submitted to as soon as possible after use of the card for proper processing.

Finance Accounts Payable will access the online Purchase Card system and will check documentation against the cardholder’s account to ensure all the goods and services that have been charged can be verified. Packing slips, if received, may be submitted to Finance.

Payment:

The City’s Purchase Card payment process is designed for:

• the cardholder to identify the correct amount.
• the department director or designee to review and approve the charges
• Finance to enter final accounting
• Accounts Payable to pay the statement and electronically post the charges to the general ledger.

The City of Camas is responsible for Purchase Card payment and liability. The Purchase Card will not affect the personal credit of the employee in any way.

• DISCREPANCIES AND DISPUTES

​​​​​​​When the City notified a cardholder that charges have been made under the employee’s card and that no receipts have been submitted, the employee may review the records to judge if the cards are erroneous or should be disputed. Working with the Finance department, the cardholder may dispute a charge that has been billed to the City. Disputed charges can result from failure to receive goods, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc.

If the cardholder is unable to reach an agreement with the vendor, contact the Finance Department. Explain that you intend to dispute a charge and follow up quickly with written information. Dispute forms must be submitted within 60 days of the statement date. Your next statement will be reduced by the amount of the disputed charge until the issue is resolved. In the event of an audit, you must prove that a dispute is in progress.

• LOST OR STOLEN CARDS

​​​​​​​​​​​​​​It is the responsibility of the cardholder to immediately report a lost or stolen Purchase Card. The City of Camas is liable for all transactions until the card is reported lost or stolen. A cardholder must report a lost or stolen Purchase Card by phone directly to Bank of America at the time of the occurrence. Employees will not be held liable for purchases made with a lost or

stolen card. The number for Bank of America for this purpose is 888-449-2273. Please notify the Finance office immediately as well. Verbal reports of lost or stolen Purchase Cards must be followed in writing to Finance. A replacement card will be sent within two days after written notification.

• CANCELATION OF A PURCHASE CARD

​​​​​​​​​​​​​​To cancel a purchase card, the cardholder or Director will be directed to cut the card in half and send it to Finance along with a written request to cancel the card.

• MISUSE OF A PURCHASE CARD

​​​​​​​The protection and proper use of the purchase card is the responsibility of the cardholder. The following situations are a few examples of “misuse” of the purchase card:

Personal Misuse:

• Purchases using the card for the sole benefit of the employee
• Assignment or transfer of an individual card to an unauthorized person
• Use of a purchase card by a retired, suspended, or terminated employee

Administrative Misuse:

• Lack of proper and timely reconciliation of individual cardholder account
• Card use in direct violation of acquisition goals (i.e. using the purchase card for commodities available through contract or preferred suppliers)

Any intentional misuse or violation of this purchase card program will be considered improper use of the card and may result in disciplinary action and possible card cancelation. Misuse of the card could result in personal liability for charges.

​​​​​​​In the event that the employee misuses the card inadvertently and charges items that are prohibited as personal use items, the employee will be required to remit back to the City or consent to the deduction of those amounts from wages.