[HISTORY: Adopted by the Board of Selectmen of the Town of
Islesboro 2-7-2018. Amendments
noted where applicable.]
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.
A.
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:
(1)
Equipment, supplies and materials required to conduct Town business.
(2)
Training expenses, including registration fees and lodging and travel
related to such training.
(3)
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.
B.
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.
A.
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.
B.
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.
D.
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.
E.
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.
F.
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.
G.
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.
H.
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.
I.
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.
J.
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.
K.
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.
A.
The Finance Department will be responsible for reconciling the credit
card statement to the receipts forwarded by authorized users for purchases
made.
B.
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.
C.
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.
D.
Any incentive program benefits derived by the use of Town credit
cards will be the property of the Town.
E.
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.