CITY OF SAN PABLO
1000 Gateway Avenue ● San Pablo, CA 94806
Main: 510-215-3020 ● Fax: 510-215-3012
www.SanPabloCA.gov
Effective: January 10, 2023
INTRODUCTION
US Bank, through the State of California’s CAL- Card program, is the provider of the City of San Pablo’s (“City’s”) VISA procurement cards which are issued to designated City employees as authorized cardholders. I nvoicing the City is the primary and preferred method of conducting the City’s purchase transactions.
City credit cards may be used when expenses cannot be procured by a City Check and petty cash is not readily available, provided that the total dollar amount of a transaction, whether for a single item or for a group of items, inclusive of tax, remains within the allowable transaction limit as determined for each cardholder.
Credit Cards may not be used for expenses that require a Purchase Order as outlined in the City’s Purchasing Policy except for a general safety emergency.
PURPOSE
The purpose of this policy is to establish policies for the issuance, accounting, monitoring, retrievals and general oversight of credit card use for the City. It is the policy of the City to provide employees with credit cards as an alternative method of paying for certain types of goods and services required by the City. The credit card represents the City’s trust in a responsible employee to safeguard and protect the City’s assets.
Cardholders assume the responsibility of the protection and proper use of the City-issued card at all times.
This policy provides guidelines on requesting a card and the responsibilities associated with card use.
POLICY SUMMARY
1. The City will make credit cards available to designated staff to make purchases or payments to facilitate the operations of a City department when procurements cannot be procured by City check and petty cash is not readily available.
2. The Finance Department will issue credit cards to employees as requested by the employee’s Department Head and written approval by the City Manager.
CITY OF SAN PABLO
ADMINISTRATIVE POLICY AND PROCEDURE ON
CREDIT CARD USE
2 3. Purchases made with City -issued credit cards must be made in compliance with the City’s Purchasing Policy.
4. Employees will NOT use City-issued credit cards for personal expenses even if the intent is to reimburse the City later. Charging personal expenses on the credit card is a misuse of City funds and doing so may result in disciplinary action in accordance with the City’s adopted Personnel Rules.
5. The Finance Department will follow established Accounts Payable internal control procedures for approval, documentation, and payment of credit card charges.
6. Anyone issued a City of San Pablo credit card will be required to sign a Credit Card Holder Agreement whereby the cardholder agrees to abide by the credit card policies and procedures adopted by the City. The card holder is responsible for ensuring that all credit card charges are accurate and comply with policy guidelines.
7. All rewards earned from transactions made on City-issued credit cards will be the property of the City.
SCOPE
This policy applies to all City employees who possess a City-issued credit card, and may be revised from time-to-time with approval of the City Manager. If there is a conflict between the requirements of this policy or procedures implementing this policy, and the department’s policy, the more restrictive policy shall apply unless compliance with the more restrictive policy conflicts with applicable law.
RESPONSIBILITIES
1. Cardholder
a) Utilize the credit card in compliance with this policy and the City’s purchasing policy, and adhere to all related processes and procedures. The card holder is responsible for ensuring that all credit card charges are accurate and comply with all applicable policies.
b) Do NOT permit others to use the credit card, except when a specific duty has been previously delegated to another City employee in writing by a Department Director (e.g., to make City business travel and hotel arrangements).
c) M aintain the card in a secure location at all times.
d) Ensure the card is used only for legitimate City business purposes. Employees will not use City- issued credit cards for personal expenses even if the intent is to reimburse the City later.
Charging personal expenses on the credit card is a misuse of City funds and doing so may result in disciplinary action in accordance with the City’s adopted Personnel Rules.
e) Use credit card only for City purchases that are eligible for purchase by credit card under this policy. Credit card purchases should be used only when procurements cannot be procured by City check and petty cash is not readily available, and use of credit cards should not circumvent the Purchase Order process as outlined in the City’s Purchasing Policy except in cases of emergency. Examples of authorized and unauthorized uses:
3 f) R equest government discounts when available.
g) All rewards earned from transactions made on City-issued credit cards will be the property of the City.
h) Obtain transaction receipts.
i) Reconcile the receipts and packing slips to the monthly credit card statement within prescribed timelines.
j) Secure credits from suppliers when items are returned or billing errors are found and resolve disputes and any fraudulent charges on the monthly statement.
k) Notify US Bank, your Department Head, and Program Administrator promptly if the credit card is lost, stolen, or used fraudulently.
h) Return the card to the Department Head immediately upon separating from employment with the City or upon request.
2. Department Heads
a) Request new credit cards or adjustments to existing credit card purchasing limits to the City Manager. All requests for new credit cards and adjustments require written City Manager approval.
b) Ensure that City employees in their respective departments who make credit card purchases are aware of the City’s Credit Card Policy and Purchasing Policy.
c) Retrieve credit cards, receipts, packing slips, and the monthly statement s from any City employee with a credit card who is separating from employment with the City prior to the employee’s departure and return them to the Program Administrator.
d) May designate a Department Approving Official to process and submit credit card statements for payment on behalf of the credit card holder.
e) Review and approve all the transactions made by their department.
Examples of Authorized Credit Card Uses Examples of Unauthorized Credit Card Uses Conference, travel and training expenses Cash advances
Membership and subscriptions Professional services
Office and sundry supplies Standard merchant exclusions (e.g. liquor or tobacco products)
Copies, printing, and shipping Personal expenses
Publications, legal notices and filing fees
Meeting, program and event expenses
Small equipment purchases, and vehicle repairs
and maintenance
4 3. Finance Department
a) Administer the City’s credit card program. This includes issuing timely payments to the credit card company.
b) The Director of Finance will designate a Program Administrator responsible for administering this credit card policy.
c) Maintain a log of all authorized City-issued credit card issuers, credit limit adjustment requests, activations, and deactivations. Cardholders are encouraged to contact the Program Administrator whenever they have any questions.
d) The Finance Department will follow established Accounts Payable internal control procedures for approval, documentation, and payment of credit card charges.
e) The Finance Department will make periodic random audits of card use and charges for appropriateness, and compliance with this policy and the City’s purchasing policy.
f) The City Manager may suspend or cancel user privileges of a card.
g) Provide a bi -annual training on appropriate City -issued credit card usage and purchasing to all cardholders. Participation in bi -annual training is mandatory for all cardholders. Failure to attend bi-annual training may result in revocation of an authorized credit card issued to City employee by the City Manager.
PROCEDURES
1. Credit Card Issuance
a) Credit cards will be issued to the City Manager, Department Heads, and to other employees only upon request by a Department Head and approval by the City Manager. The cards will be issued in the name of the individual. Only one card will be issued in an individual’s name. Cards are non- transferable except when a specific duty has been previously delegated in writing to another City employee by a Department Director.
b) Unless otherwise approved by the City Manager in writing, the authorized credit limit for each credit card issued by the City shall not exceed $5,000, except that the City Manager shall have an authorized credit limit of $10,000. The City Manager may increase the credit card limits of other credit card holders on a case-by-case basis.
c) As a fra ud prevention measure, unless otherwise approved by the City Manager in writing on a case-by-case basis, all cardholders except the City Manager and Department Head cardholders will have both a single item/ daily purchase limit of $2,000.
d) The credit card, a copy of the Credit Card Policy, and a “Certification of Receipt of Credit Card” form will be provided to the new credit cardholder by the Program Administrator as designated by the Director of Finance. The employee must sign/date this form, which acknowledges that the employee has received a credit card and a copy of the policy. A copy of such acknowledgement shall be maintained in the City employee’s HR record for safekeeping.
e) Anyone issued a City credit card must sign a Credit Card Holder Agreement whereby the cardholder agrees to abide by the credit card policies and procedures adopted by the City. The
5 card holder is responsible for ensuring that all credit card charges are accurate and comply with policy guidelines. A copy of such acknowledgement shall be maintained in the City employee’s HR record for safekeeping
f) Requests for adjusted credit limits can be made by the Department Head by submitting the “Credit Card Limit Adjustment” form to the Program Administrator, authorizing an increase or decrease to the card. All such requests require written approval of the City Manager.
2. Credit Card Cancellation
The City reserves the right to cancel a credit card for any reason.
Credit cards shall be canceled for any of the following reasons:
a) The card is used for personal or unauthorized purposes (cash advances, non-qualified professional services or standard merchandise exclusions such as liquor or tobacco products);
b) The card is used to purchase any material or ser vice that violates policy, law, or regulation pertaining to the City;
c) The cardholder fails to provide the required receipts and supporting documentation; or
d) The cardholder does not adhere to all applicable City Administrative Orders, policies, and procedures.
e) The City determines that the credit card is no longer necessary for City operations.
3. Credit Card Lost or Stolen
a) Should a credit card be lost or stolen, or there are fraudulent charges on the card, the cardholder must promptly notify the US Bank by calling 1- 800-344-5696, the Department Head and Program Administrator. This prompt action is important as it will limit the City’s liability stemming from any misuse of the card.
4. Credit Card Statement Processing
a) It is the responsibility of every credit card user to obtain transaction receipts from the merchant each time the credit card is used, including telephone and internet charges.
b) Cardholders (or designated City employees) must reconcile the receipts to the statements for all purchases they make. For missing receipts or summary receipts (receipts without a list of itemized purchases), the Receipt Verification Form should also be completed and submitted to the Department Head for review and approval.
c) The cardholder should approve the statement by signing on the face page of the statement. The summary worksheet ( with descriptions and account codes ), original statement, and receipts providing documentation for each charge are then to be forwarded to the Department Head for review and verification of the accuracy and eligibility of the credit card charges. Upon approval of the charges, the Department Head must sign the original credit card statement. The statement worksheet, original statement, and receipts shall then be forwarded to the Finance Department by the 12
th of each month for review, processing and further auditing.
6 d) Late submission of statement worksheet, original worksheet, and receipts may result in deactivation of the credit card. If the credit card holder is unavailable to review the statements within the time period indicated, the cardholder should forward all paperwork, including receipts, to the Approving Official to process in the cardholder’s absence. The Approving Official will be responsible for processing statements for those on leave. The cardholder will still be required to sign the original statement upon return.
e) The credit card statement and receipts need to be “scan ready” (taped on all sides to avoid catching in the scanner to an 8.5”x11” sheet of paper) when submitted to the Finance Department . Failure to provide the required documentation for purchase verification may subject the cardholder to loss of credit card privileges and may cause the amount charged to be classified as a personal purchase by the card user if the charge cannot be satisfactorily explained or otherwise documented. The City shall keep statement data and proof of reconciliation, including receipts and packing slips, on file for a period of five years in compliance with the City’s record retention requirements.
AS AUTHORIZED:
______________________________ Date: January 10, 2023 Matt Rodriguez,
City Manager
7 CITY OF SAN PABLO
CREDIT CARD HOLDER AGREEMENT
The credit card is a corporate charge card that will not affect the card holder’s personal credit; however, it is the cardholder’s responsibility to ensure that the card is used in compliance with all applicable guidelines, policies, and procedures of the City of San Pablo (“City”).
I agree to use this card for only actual and necessary City business expenses in accordance with the City of San Pablo Administrative Policy on Credit Card Use and Purchasing Policies. I understand and acknowledge that I am responsible for the use of the credit card and that I may not be delegate anyone else to use the card except when a specific duty has been previously delegated to another City employee in writing by a Department Director.
I acknowledge that use of this card for any purpose other than City business purposes is prohibited and failure to comply with all applicable City policies may result in the permanent cancellation of the card, repayment of all expenses deemed personal and subject the cardholder to full cooperation in achieving resolution and restitution to the City, Disciplinary measures, may include termination.
I agree to surrender the card immediately upon retirement, separation from employment, or upon request of the City Manager, Finance Director or their designees. I understand that use of the card after privileges are withdrawn is prohibited.
If the card is lost , stolen or used fraudulently , I will promptly notify US Bank (at the number below) , my Department Head and the Program Administrator.
US Bank Contact City Contact
Card member Services Program Administrator
P. O. Box 6318 1000 Gateway Avenue
Fargo, ND 58125-6318 San Pablo, CA 94806
1-800-344-5696 510-215-3004
Unless otherwise approved the City Manager in writing, use of this card is to be limited to $________________ per month, and no single purchase may exceed $___________________.
Cardholder: City Manager Approval:
___________________________________ ________________________________ Name: Matt Rodriguez
Signature Signature
___________________________________ ________________________________
Date: ______________________________ Date: ___________________________
Department: _______________________________________________________________