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05-008_Purchasing Card Administrative Policy_2020FIN-5008 – Purchasing Cards Page 1 of 7 ADMINISTRATION Policy #: FIN-5008 – Purchasing Cards Approval Date: June 16, 2020 Approval Authority: SLT Effective Date: Next Scheduled Review Year: 2022 Department: Finance Last reviewed: August 21, 2017 Revision Date/s: Schedules: 1.0 Policy Statement To provide a policy and procedures for all employees with respect to Town provided purchasing cards (P-Cards). 2.0 Purpose The purpose of this Policy is to outline: a) Who may obtain a Town of Tillsonburg Purchasing Card (P-Card); b) The P-Card’s authorized uses; and c) Roles and responsibilities. 3.0 Scope This Policy applies to Town of Tillsonburg full-time employees and part-time employees where there is a minimum of 3 days or 24 hours worked per week. In this Policy these employees shall be referred to as “Employees.” 4.0 Definitions “Purchasing Card” or “P-Card”: A Town corporate credit card with a monthly credit limit as set by the Towns Purchasing Policy which can be used by designated employees: i. To purchase Town-related goods or services which are Eligible Purchases; or ii. For permitted business travel and meal expenses up to but not exceeding the per transaction limit set by the Town. FIN-5008 – Purchasing Cards Page 2 of 7 “Approver”: The department head or staff manager who is responsible for, among other things, ensuring the Cardholder’s purchases are Eligible Purchases and are charged to the correct cost centre. “Cardholder”: Town employee who has been issued a P-Card for Eligible Purchases. “Eligible Purchases”: Permitted transactions including but not limited to: i. Books / magazines; ii. Subscriptions; iii. Computer hardware and software; iv. Professional Membership dues; v. Consulting Services; vi. Professional Services; vii. Conference Registration fees; viii. Office supplies, cleaning material. ix. Business meal and entertainment; x. Food and beverages; xi. Hotels; xii. Airfare; xiii. Train tickets; xiv. Taxi; “Ineligible Purchases”: Non-permitted transactions including but not limited to: i. Personal purchases meaning any expense of a personal nature unrelated to Town business; ii. Duplicate reimbursements a) e.g. A meal when the Cardholder plans to use a per diem for meals on that date; b) e.g. Gas purchase when the Cardholder plans to use a mileage claim for that trip; iii. Goods and services covered by a Blanket or Systems Contract, without prior written consent by Finance Department iv. Hazardous materials; v. Donations; vi. Cash advances; or vii. Any other purchase other than Eligible Purchases. “Purchasing Card Administrator": Responsible for facilitation of the Purchasing Card program within the Finance Department. “Supplier Documentation”: Proof of purchase documentation from the supplier for each P- Card transaction, which includes, at a minimum: i. The date of the transaction; ii. The name of the supplier; iii. The dollar amount of the transaction; iv. Federal and Provincial taxes, if applicable; and v. Description of the item(s) purchased. FIN-5008 – Purchasing Cards Page 3 of 7 5.0 Procedure Employees who would like to obtain a P-Card must obtain written authorization from their manager/supervisor. Employees must read, sign, and adhere to the Cardholder Acceptance Letter (Appendix A). The P-Card is Town property. It cannot be transferred to, assigned to, or used by anyone other than the designated Cardholder. Each department will determine and advise the permitted uses, limits, and restrictions of P- Cards issued to their employees in accordance with the business needs of the department. The P-Card may be used by employees for Eligible Purchases, supported by original receipts. P- Card users must forward all original receipts to the Finance Department in accordance with this P-Card Policy. When a P-Card transaction is assigned to a departmental cost centre, each transaction must be approved by an Approver with the appropriate approval authority or their designate, as outlined in the Town’s Purchasing Policy. Under no circumstances should an employee, supervisor, manager or director approve their own purchases. It is the Cardholder’s and the Approver’s responsibility to ensure that the P-Card has been used for an Eligible Expense and is supported by an original receipt. The Town reserves the right to: i. Audit all P-Card expenditures at any time including after approval of P-Card expenditures to ensure that all P-Card Cardholders have complied with the P-Card Policy, the Purchasing Policy, all other applicable Town policies and procedures; ii. Require the Cardholder to reimburse personally the Town for any Ineligible Purchases, regardless of whether the Approver previously approved the transaction as an Eligible Purchase; iii. Assign reimbursement for Ineligible Purchases made by the Cardholder against payments otherwise due and owing to the Cardholder by the Town; and/or iv. Revoke the Cardholder’s P-Card and privileges at any time. 5.1 Statement Cycle The statement cycle period ends on the 27th of each month (or on the next business day). The balance on each card is reset to zero on the 28th day of each month (or next business day). Expectations i. Cardholders will be advised that their card activity statement is ready for reconciliation through the https://access.usbank.com, on or about the 28th day of the month. Cardholders do not have the option of reconciling daily. FIN-5008 – Purchasing Cards Page 4 of 7 ii. Cardholders have five (5) working days after the 27th of the month to allocate cost accounts. If they are absent, a delegated person should reconcile the cardholder’s statement or it should be completed prior to their absence. iii. Cardholders will print the reconciliation after account costing has been completed. iv. Cardholders will have their immediate supervisor sign off the statement and forward the original copy to Accounts Payable, with all receipts attached. v. Lost receipts must be requested from the supplier by the Cardholder. vi. The approved print out must be received by Accounts Payable no later than the 15th of each month, with all receipts attached as approved. 6.0 Roles and Responsibilities Responsibility of the Finance Department: The Finance Department shall: i. Review P-Card applications from Employees for eligibility and completeness; ii. Submit approved P-Card requests to provider; iii. Provide sessions so that Cardholders are trained and aware of applicable policies and procedures; iv. Maintain a permanent file of Cardholder applications and related information; v. Assist in the resolution of problems involving Cardholders, suppliers and/or the P-Card issuing company; vi. Delete original receipts after ninety (90) days; vii. Review monthly billing statements, reconciliations, compliance and exception reports, and management reports for unusual activity; viii. Notify the appropriate department head or manager of issues; ix. Undertake expense report compliance review programs; x. Keep P-Cards in a safe and secure place when not in use for an extended period of time; and xi. Send regular communication to Cardholders with outstanding P-Card transactions that their card transactions are to be cleared. a) If outstanding P-Card transactions are not cleared after fifteen (15) days, the P- Card may be suspended at the discretion of the Town; Responsibility of Treasurer: i. The Treasurer is responsible for the interpretation and administration of the P-Card Policy. Cardholder Responsibilities: Cardholders: i. Shall sign and adhere to the Cardholder Acceptance Letter (Appendix A); ii. Shall not permit anyone else to use the P-Card. No other Town staff, family member or any other individual is authorized to use the P-Card; FIN-5008 – Purchasing Cards Page 5 of 7 iii. Shall keep the P-Card in a secure place; iv. May use the P-Card for Eligible Purchases in person, telephone and online. Cardholders must apply the same high degree of care that they would use to protect their personal credit card security in making online or telephone Eligible Purchases using their P-Card; v. Shall immediately report a lost or stolen P-Card to both TD/US Bank and the Purchasing Card Administrator; vi. May use their P-Card for Eligible Purchases up to their daily P-Card limit (with a maximum monthly credit limit), or such lower amount as required by the Approver. This amount includes all taxes and shipping costs. These limits are set by the Purchase Card Administrator in accordance with the council approved Town Purchasing Policy. Exceptions will be considered and approved on a case by case basis by the Finance Department. vii. Shall exercise honesty, good faith, and common sense when using their P-Card. a) If the Cardholder has any doubt as to whether a proposed purchase is an Eligible Purchase, the Cardholder must take direction from Finance Department. b) If the P-Card is used inadvertently for an Ineligible Expense the Cardholder must contact the P-Card Administrator for direction. c) Cardholders must ensure that the cost of each Eligible Purchase is reasonable and make every reasonable effort to purchase the lowest cost good or service available to fulfill the business requirement should the item(s) or resource(s) not already be available within the Town’s possession. d) Cardholders shall not split transactions to circumvent the P-Card spending limits. viii. Shall review all P-Card transactions through Access Online on a timely bases (within 15 days or the first working day of the following month; whichever is sooner) of the P- Card transaction; ix. Shall obtain and retain original supplier documentation for all P-Card purchases made in person, by telephone, or online; x. Shall submit all original receipts to the Finance Department, failing which the Town may suspend the Cardholder’s P-Card privileges; xi. Shall complete and submit a Supplementary Receipt Form and include it with the monthly submission if the supplier documentation does not include the date of the transaction, the name of the supplier, the dollar amount of the transaction, and a description of the items purchased; xii. Shall not approve their own transactions under any circumstances; xiii. Shall advise the Purchasing Card Administrator of a change in Town position or department; and xiv. Shall return the P-Card to the Purchasing Card Administrator, Human Resources, or departmental supervisor if the Cardholder terminates or resigns from the Town. Approver’s Responsibilities Approvers shall: i. Review all Cardholder purchases to ensure they are required Eligible Purchases, in accordance with the approved departmental budget, and are charged to the correct cost centre; a. If a purchase is rejected by an approver (e.g. lacking description, incorrect allocation code, etc.) it is to be sent back to the cardholder for amendment and approval resubmission. FIN-5008 – Purchasing Cards Page 6 of 7 b. Should a purchase not qualify as essential in nature, discussion will be held with the Cardholder up to and including forfeiture of the purchasing card. ii. Not approve their own transactions under any circumstances; iii. Not request an employee to incur an expense on their behalf or an expense that includes them (e.g. meal at a restaurant); iv. Immediately report a lost or stolen P-Card to both TD/US Bank and the Purchasing Card Administrator; v. Inform the Purchasing Card Administrator of a change in a Cardholder’s department or position, long term disability, leave of absence, sabbatical, or depletion of budget/funds for themselves or any Cardholders reporting to the Approver; a) If the Cardholder leaves the Town before reviewing the outstanding P-Card transactions, the approver must assign a designate to who is responsible for submitting the original receipts (or supplemental receipt form) to the Finance Department. vi. Request the cancellation of P-Cards for Cardholders who cease to be employed by the Town or who otherwise become ineligible for a P-Card; and vii. Fully cooperate with all P-Card related inquiries, and compliance reviews. Responsibility of Director, Department Head or designate Director, Department Heads or designates are responsible for: i. Approving the issuance of P-Cards to Cardholders; ii. Authorizing transaction limits equal or less than the limits for single purchases and the monthly credit limit as set by the Town; iii. Authorizing Purchasing Card Profiles; and iv. Notifying the Finance Department Program Administrator or Treasurer regarding any policy and procedures exceptions when they become aware of them. 7.0 Information and Assistance Any Policy exceptions, when known by the Finance Department, will be brought to the attention of the Cardholder, the Approver, and the Director or CAO at the discretion of Finance Department. Questions and comments regarding the P-Card Policy are to be directed to the Purchasing Card Administrator. FIN-XX Purchasing Cards – APPENDIX A Agreement to Accept the U.S. Bank Canada Card Program The U.S. Bank Corporate/Purchasing Card program represents our company’s trust in you. You are empowered as a responsible agent to safeguard company assets. Your signature below is verification that you have read the employee handbook and agree to comply with it as well as the following responsibilities. It also acknowledges that you have received your PCard. 1. I understand the card is for company-approved purchases only and I agree not to charge personal purchases. 2. Improper use of this card can be considered misappropriation of company funds. This may result in disciplinary action up to and including termination of employment. 3. If the card is lost or stolen, I will immediately notify U.S. Bank by telephone. I will confirm the telephone call by mail or facsimile with a copy of the notification to the program administrator. 4. I agree to surrender the card immediately upon termination of employment, whether for retirement, voluntary or involuntary reasons. 5. The card is issued in my name. I will not allow any other person to use the card. I am considered responsible for any and all charges against the card. 6. All charges will be billed directly to and paid directly by the company. The bank cannot accept any monies from me directly; therefore any personal charges billed to the company could be considered misappropriation of company funds. 7. As the card is company property, I understand that I may be periodically required to comply with internal control procedures designed to protect company assets. This may include being asked to produce the card to validate its existence and account number. I may also be asked to produce receipts and statements to audit its use. 8. I will receive a Monthly Reconciliation Statement (MRS), which will report all activity during the statement period. Since I am responsible for all charges (but not for payment) on the card, I will resolve any discrepancies by either contacting the supplier or the bank. 9. The charges made against my card are automatically assigned to the cost center assigned to the card as specified by management. This code cannot be changed without management involvement. When changed, the new accounting code will not affect any charges made prior to the change but will affect future charges. 10. I understand the one card is not necessarily provided to all employees. Assignment is based on my need to purchase materials for the business and/or to provide for business travel. My card may be revoked based on change of assignment or location. I understand that the card is not an entitlement nor reflective of title or position. Employee Signature Employee Printed Name Date ©2005 U.S. Bancorp. All rights reserved. U.S. Bank is registered to the U.S. Bank National Association ND. All other trademarks are the property of their respective owners. CPS3132 (01/05)