[HISTORY: Adopted by the Board of Selectmen of the Town of Islesboro 2-7-2018. Amendments noted where applicable.]Attachment 1 - Agreement to Accept Town of Isleboro Credit Card
The purpose of this policy is to establish appropriate internal controls and administrative procedures to ensure that Town-issued credit cards are used by authorized persons and for authorized purposes only.
It is the policy of the Town of Islesboro to restrict the number of Town-issued credit cards and the number of authorized users as much as possible. The Town Manager will make all decisions regarding the issuance of individual cards and the establishment of any and all additional controls of their use. The issuance of a Town credit card to anyone must be approved in writing by the Town Manager. The limit on each card shall be $2,500 total.
The purpose of Town-issued credit cards is to permit the procurement of goods and services when the use of such credit cards will enhance productivity, reduce paperwork, improve internal controls and reduce the overall cost associated with such purchases. Town-issued credit cards may be used for the following purchases:
Equipment, supplies and materials required to conduct Town business.
Training expenses, including registration fees and lodging and travel related to such training.
Meals when connected to or made necessary by out of town or overnight travel, or when the meal is exclusively related to a Town business purpose. Charges for alcohol or entertainment are prohibited.
All purchases with Town-issued credit cards must serve a legitimate public purpose for the benefit of Town business and not be intended to confer a personal benefit on any individual or other entity.
Receipt of a Town-issued credit card is voluntary and may not be made a condition of employment. Employees may refuse to accept issuance of a Town credit card and may not be disciplined for such refusal.
If an employee accepts the issuance of a Town credit card, he or she must provide all information required by the financial institution issuing the card, including social security information, if required.
All purchases made with a Town-issued credit card must be pursuant to a purchase order approved by the Town Manager in advance of the purchase.
No person, other than the authorized user, shall use the card assigned to that authorized user. The authorized user may not grant permission to any other person to use or authorize purchases on the credit card.
All purchases must be documented by a receipt from the merchant, with the signature of the authorized user, if required. Receipts shall be forwarded to the Finance Department as soon as possible, but not later than seven days after the purchase is made.
It shall be the sole responsibility of the authorized user to determine if a purchase is permitted by this policy and within the specified limits of the credit card and the Town's budget.
The authorized user shall notify the merchant that the purchase is being made with a Town-issued credit card and that such purchase is tax-exempt.
The authorized user shall be responsible for managing any returns or exchanges of purchases made with the Town-issued credit card and to ensure that, if necessary, merchandise is returned within the allowable period and that proper credit is received for returned merchandise.
The authorized user shall take all measures necessary to ensure the security of the credit card and the card number. Authorized users shall not give their card or their card number to others to use on their behalf. If a Town-issued credit card is lost or stolen it shall be the authorized user's responsibility to report to the Finance Department immediately upon discovery that the credit card is missing.
Upon separation from employment, authorized users shall surrender their Town-issued credit card to the Finance Department on or before their last day of work and prior to issuance of final compensation to the authorized user.
The Finance Department will be responsible for reconciling the credit card statement to the receipts forwarded by authorized users for purchases made.
To the extent possible, all purchases made with Town-issued credit cards shall be paid for within the billing period so that no interest charges or penalties will accrue.
If receipts and other documentation are not submitted by the authorized user within the time frame stated above, the department for which the undocumented purchases have been made will be responsible for the interest and/or late charges on such purchases, if any.
Any incentive program benefits derived by the use of Town credit cards will be the property of the Town.
The Town shall conduct regular and random audits for both credit card activity and receipt retention, as well as monthly statement review by the Finance Department. The detailed activity of each credit card shall also be reviewed annually by the Town's independent auditing firm.
The use of a Town-issued credit card is a privilege that may be revoked at the discretion of the Town Manager if there is any instance of abuse, misuse or use of the credit card contrary to this policy. Frequent instances of missing receipts or other necessary documentation related to purchases made with the credit card may result in the authorized user's privileges being revoked. Lack of proper documentation, such as receipts, or authorizations for purchases may also result in the loss of credit card privileges.
Misuse of a Town-issued credit card by any employee, whether or not an authorized user, may result in disciplinary action against the employee, up to and including termination of employment.