R500RESOLUTION NO. 500
A RESOLUTION ADOPTING AN AMENDED CITY OF KENNEDALE
PROCUREMENT CARD POLICY
WHEREAS, the City Council allows the City to utilize cooperative purchasing programs
with the approval of City Council; and.
WHEREAS, on January 24, 2003, the City Council adopted the document entitled,
"Procurement Card Program Policy," a guide to aid in establishing a more efficient, cost -
effective method of purchasing and paying for small dollar transactions, as well as high volume,
repetitive purchases, and
WHEREAS, the City Council has reviewed the Procurement Card Program Policy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS:
The City Council of the City of Kennedale, Texas hereby approves the Procurement Card
Program Policy dated October 17, 2016, attached hereto as "Exhibit A."
PASSED, ADOPTED AND APPROVED by the City Council of the City of Kennedale,
Texas, this the 17th day of October, 2016.
ATTEST:
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City Secretary, Leslie Galloway
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CITY OF KENNEDALE
PROCUREMENT CARD PROGRAM POLICY
ORIGINALLY ADOPTED BY CITY COUNCIL: JANUARY 24, 2003
PREFACE
The Procurement Card Program Policy aids in establishing a more efficient, cost - effective method of
purchasing and paying for small dollar transactions, as well as high volume, repetitive purchases. The
Procurement Card Program is as an alternative to the traditional purchasing process (departmental
purchase orders) for supplies, materials and travel. Furthermore, the Procurement Card can be used
with any supplier that accepts MasterCard as a form of payment.
If used to its potential, the Procurement Card Program will result in a significant reduction in the
volume of purchase orders and related documentation, including invoices and checks. In addition,
corresponding work processes associated with ordering and check writing will be eliminated.
It is our intent to bring forth this policy to Council for review at least annually. In order to demonstrate
that review, it will be custom practice for the governing board of a municipality to adopt a resolution
to make the review an official public record.
SUBSEQUENT REVIEW & ADOPTION
JUNE 10, 2010
NOVEMBER 17, 2011
OCTOBER 3, 2012
OCTOBER 1, 2013
OCTOBER 13, 2014
OCTOBER 19, 2015
OCTOBER 17, 2016
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I. PURPOSE
The Procurement Card Program (herein referred to as the "Program ") is intended to streamline
and simplify the Purchasing and Accounts Payable functions by eliminating waste and low value
activities. The Procurement Card (herein referred to as the "Card ") is a tool that reduces
transaction costs, facilitates timely acquisition of materials and supplies, automates data flow
for accounting purposes and offers flexible controls to help ensure proper usage.
The Program is designed as an alternative to a variety of processes including petty cash, check
requests and low dollar purchase orders. It is not intended to avoid or bypass appropriate
procurement of payment procedures. Rather, the Program complements the existing processes
available. The Card is a MasterCard credit card that is issued by JP Morgan Chase. Some
minimal record keeping is essential to ensure the successful use of the Card. This is not an
extraordinary requirement; standard payment policies require retention of receipts, etc.
This Procurement Card Program Policy provides information about the process, the types of
purchases that can and cannot be made, records that must be maintained and reconciled for
each cycle, and a variety of other program information.
Every time the Card is utilized, city funds are committed. Therefore, this is a responsibility that
should not be taken lightly. Each cardholder is responsible for all charges made to his /her
specific card, and any intentional misuse or fraudulent abuse may result in disciplinary action,
up to and including dismissal.
The Card has no impact on personal credit. Although the Card lists an individual's name, the
card is actually issued to the City of Kennedale.
II. DEFINITIONS
For the purpose of this policy the following definitions apply:
A. Program Administrator — Individual who has a direct relationship with the Bank and is the
City's point of control for the Program, monitors all usage of the card, and is the point of
contact for any cardholder questions or problems. All procurement card requests, issues
and cancellations must go through the Program Administrator. The Program
Administrator and his /her designated assistant are knowledgeable on all the procedures
in the Procurement Card Program Policy and are responsible for ensuring all cardholders
are properly trained in the use of the Card before it is issued. The Program Administrator
will also report to the City Manager any Cardholder infractions or potential infractions.
For the purposes of this program, the Director of Finance will serve as the Program
Administrator, with the Accounting Technician acting as the designated backup until
such time that the City Manager chooses to designate differently. The Director of
Finance is responsible for developing written guidelines on accounting, cash handling, and
other financial matters in relation to the Program.
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B. Approver — The Department Head or his /her designee is responsible for designating
cardholders and approvers. The Department Head shall designate which employees will
be issued a card, and with the guidance of the Finance Department, determine what
transaction and merchant limits shall apply to the Card's use. The Department Head
ensures that purchases are authorized and within City policies. Departments may
implement more stringent internal authorization procedures that its cardholders must
follow in order to make purchases with the Card. In addition, activity reports are available
for additional review by the Department Head if so requested.
C. Cardholder - Individual who has been issued the Card and who is authorized to make
purchases in accordance with these procedures.
D. Single Purchase /Transaction Limit - A dollar limitation of purchasing authority delegated
to a Cardholder, which represents the maximum amount that can be charged to the Card
for a single purchase or transaction. This dollar limit may vary from Cardholder to
Cardholder.
E. Cycle /Monthly Limit - A dollar amount limitation of purchasing authority delegated to a
Cardholder, which represents the maximum amount that can be charged to the Card
during a period of one calendar month. This dollar limit may vary from Cardholder to
Cardholder.
F. Vendor - A company from which a Cardholder is purchasing materials and /or equipment
or services under the provisions of this procedure. Also referred to as supplier, merchant,
etc.
III. PROCEDURES
A. Obtaining The Card - Only full /part -time employees of the City of Kennedale are eligible to
receive the Card. Contractors or temporary employees are not eligible, unless authorized
by the City Manager.
1) Department Head must request the Card via the Procurement Card Enrollment Form
(Appendix A).
2) If needed, the Department Head may consult with the Program Administrator to
determine appropriate transaction limits.
3) The Program Administrator will request the issue of the Card from JPMorgan Chase.
4) Upon receipt of the Card, the Program Administrator will conduct Cardholder
training, and upon completion, the Cardholder will sign the Procurement Cardholder
Acknowledgement Form (Appendix 8).
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5) The new cardholder will also be instructed as to where he /she can find the
Procurement Card Program Policy and Purchasing Policy for reference purposes.
B. Activating The Card - The Cardholder must call (800) 316 -6056 to activate the Card before
using it.
C. Authorized Use Of The Card - The Cardholder is responsible for the security of their Card,
and the transactions made against it. When a Cardholder receives his /her Card, only that
Cardholder is authorized to use that card. The Cardholder may make transactions on
behalf of others in their Department. However, the Cardholder is responsible for all use
of his /her Card. At no time should the Cardholder loan or let other individuals utilize
his /her card.
1) The Card is to be used in the conduct of the City's business only. The use of the Card
to acquire or purchase goods and services for other than official use of the City is
fraudulent use and may subject the employee to disciplinary action, up to and
including dismissal as specified in the City's Personnel Policy and /or criminal
prosecution.
2) The total value of a transaction shall not exceed a Cardholder's single purchase limit.
3) The Cardholder will retain vendor's receipts and /or records of telephone, Internet,
and /or mail orders and file for future reconciliation of the Card statement.
D. Unauthorized Use Of The Card - The credit card shall not be utilized for any of the
following:
1) Personal identification or purchases, to include the payment of spouse /family
expenses incurred while traveling. Only City business expenses are allowable, and
the Cardholder should pay personal expenses separately.
2) A purchase that exceeds the Cardholder's single and /or monthly purchase limits;
3) Cash refunds and advances;
a. When an item is returned, the vendor shall issue the Cardholder a credit,
which should appear on a subsequent statement. Under no circumstances
should the Cardholder accept cash in lieu of a credit to the credit card
account. However, should cash be received, a Cardholder must return it to
the City. Otherwise, the City is authorized to deduct any applicable charges
from the payroll of the employee if not otherwise reimbursed.
4) Any purchase of goods /services or at a merchant type not considered prudent or of
good judgment;
5) Fuel and /or maintenance purchases on any personal vehicles whether for city
purpose or not (city owned vehicles are authorized);
6) Alcohol or liquor of any kind;
7) Separate, sequential, and component purchases or any transaction made with the
intent to circumvent the City's Purchasing Policy or state law;
8) Any other purchase specifically excluded in the City's Purchasing Policy.
IV.
V.
E. Cardholder Revocation - The Card is subject to revocation at any time at the discretion of
the Department Head. The Program Administrator, if not the Director of Finance, may
also recommend to the Director of Finance and Department Head that the Card be
revoked upon indication of any violation of the Procurement Card Program Policy. When
a Card is revoked, changes are made on -line and take effect immediately. The Program
Administrator is further authorized to temporarily suspend use of the Card via electronic
methods if unauthorized use is discovered and such use poses a threat to internal
financial controls.
F. Cardholder Separation — Prior to separation from the City of Kennedale, the Cardholder
shall surrender the Card and all current credit card receipts and documentation to his /her
Approver. Upon receipt, the Approver will follow the steps outlined under Section VI:
Cardholder Statement Review & Payment Submission, and then forward the Card to the
Program Administrator to be destroyed.
CARDHOLDER LIMITS
As part of a Cardholder's application, the Department Head will identify which levels of
transaction and cycle spending limits best accommodates the department and City's business
requirements. Suggested levels for limits are outlined below; however, selection may vary
based on particular need or function.
Position
Line Staff
Supervisor
Dept. Head
City Manager
Single Transaction Limit
$500
$1000
$3,000
$3,000
Monthly Cycle Limit
$1,000
$2,500
$5,000
$25,000
CARDHOLDER PURCHASES
A. Sales Tax - As a tax - exempt government agency, the City of Kennedale does not pay sales
tax on applicable items. The City's sales tax identification number is provided on the face
of the Card, and Cardholders can request a copy of the City's tax exemption certificate
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from Accounts Payable should it be needed. Cardholders are responsible for ensuring that
the vendor does not include sales tax in the transaction, unless an item is subject to sales
tax. If tax is included in error, the Cardholder may be responsible for reimbursing the
tax amount to the City if it is not recovered from the vendor. Contact Accounts Payable
for questions in regards to which purchases are subject to tax.
B. Returns - Each Cardholder is responsible for coordinating returns with the vendor and
ensuring a proper credit slip is obtained. Credit shall be issued to the Cardholder
account. - Under no circumstances should the Cardholder accept cash in lieu of a credit
to the credit card account. However, should cash be received, a Cardholder must return
it to the City. Otherwise, the City is authorized to deduct any applicable charges from
the payroll of the employee if not otherwise reimbursed.
C. Point Of Sale Decline - Should a Cardholder be declined at the point of sale for any reason,
please contact either the JP Morgan Chase Bank Customer Service Center 24 hours a day,
7 days a week at (800) 316 -6056 or the Program Administrator. Every effort will be made
to determine why the transaction was declined.
D. Restricted Vendors - The Program may restrict certain types of vendors based on their
use. The restriction of vendors is accomplished by the Program Director upon the
Cardholder's application; therefore, if you present the Card for payment to any of these
"opted -out" vendors, the authorization request will be declined. Should an authorization
request be declined, please contact either the JP Morgan Chase Bank Customer Service
Center 24 hours a day, 7 days a week at (800) 316 -6056 or the Program Administrator.
Once it is determined that the authorization request was denied due to vendor type /use
restriction, the Program Administrator will work with the Cardholder to ascertain whether
or not the restriction should remain or be lifted.
E. Vendor Refusal Of Card - Vendors are to be encouraged to become involved in the
Program so that Cardholders can leverage their purchasing efforts most effectively.
Vendors may contact their local bank or financial institution to become credit card
capable. For those vendors that are unwilling to participate in the Program, alternative
sources should be found. Cardholders may also feel free to make contact with any
vendors he /she would like to begin accepting the Card.
F. Errors & Disputes - In the case of an error, first contact the vendor directly and try to
reach an agreement. Most disputes can be resolved in this manner. If you are unable to
reach an agreement with the vendor, complete a Procurement Card Transaction Dispute
Form and send it to JP Morgan Chase Bank. All disputes must be submitted in writing to JP
Morgan Chase Bank within sixty (60) days of the statement date via the following:
1) Fax (847) 931 -8861; or
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2) Mail to: JP Morgan Chase Commercial Card, Attention: Disputes Department, PO Box
2015, Elgin, Illinois 60121.
G. Lost Or Stolen Cards - If a card is lost or stolen, both JP Morgan Chase Bank's Customer
Service and the Program Administrator should be notified immediately. The Customer
Service Center is available 24 hours a day, 7 days a week and can be contacted at (800)
316 -6056. A Procurement Card Lost /Stolen Card Notification Form should also be
completed as soon as possible and submitted to the Program Administrator. A new card
shall be promptly issued to the Cardholder after the reported loss or theft. A card that is
subsequently found by the Cardholder after being reported lost shall be destroyed.
VI. CARDHOLDER STATEMENT REVIEW & PAYMENT SUBMISSION
Each Cardholder is responsible for the accurate review of his /her monthly statement, as well as
the timely submission to Accounts Payable with all appropriate signatures, supporting receipts
and documentation to pay his /her bill.
Monthly, each Cardholder will receive a statement(s) from Accounts Payable identifying each
transaction made against the Card during the prior billing cycle. While the cycle cut -off date
may vary, it generally occurs during the first week of every month (S th ) . The City of Kennedale
is required to pay JP Morgan Chase Bank in full each month no later than the 30 th calendar day
after statement close for all purchases made during the prior billing cycle. Therefore, please
pay specific attention to the request deadline stipulated by Accounts Payable upon initial
dissemination of the statement.
The statement (with attached receipts /documentation) must be reconciled against Cardholder
retained receipts /documentation, signed by the Cardholder as proof of reconcilement, and
then forwarded to the Department Head or his /her designee for approval.
Always obtain a receipt when using the Card. Furthermore, detailed receipts must be
presented for all meal reimbursements (i.e., credit card charge slip will not be considered
adequate documentation). Alcoholic beverage purchases are strictly prohibited from card
usage, and the purpose of the business meal, and the names of those in attendance must also
be indicated.
If the Cardholder misplaces or loses a receipt or is unable to provide adequate details
concerning a purchase, a Missing Or Lost Receipt Form must accompany the Cardholder's
request for payment. Recurring instances of misplaced or lost receipts may result in the
revocation of Cardholder privileges. Furthermore, the Cardholder will be responsible for
reimbursing the City of Kennedale for all applicable charges, and the City is authorized to
deduct any applicable charges from the payroll of the Cardholder if not otherwise
reimbursed.
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NOTE: During the month of September, purchases may be restricted to facilitate the Fiscal Year
end closing. It is imperative that careful planning is done to ensure that appropriate levels of
supplies are on hand to last until the beginning of the new Fiscal Year.
VII. CARDHOLDER RECORD KEEPING
A. Any Means - Whenever a credit card purchase is made, either over - the - counter or by
other means, documentation shall be obtained as proof of purchase. Such
documentation will be used to verify the purchases listed on the Cardholder's monthly
statement of account.
B. Over- the - Counter - When the purchase is made over - the - counter, the Cardholder shall
retain the invoice and "customer copy" of the charge receipt. The Cardholder is
responsible for checking that the vender lists the quantity and fully describes the item(s)
prior to the Cardholder signing the slip.
C. Internet - When the purchase is made over the Internet, the Cardholder shall print a copy
of the receipt and order confirmation before exiting the site.
D. Telephone - When a purchase is made over the telephone, the Cardholder shall have the
vendor fax them a copy of the receipt.
E. Mail - When the purchase is made by mail, the Cardholder shall retain all confirmations
and shipping documentation.
VIII. CARDHOLDER SECURITY
It is the Cardholder's responsibility to safeguard the Card and account number to the same
degree that a Cardholder safeguards his /her personal credit information. A violation of this
trust may result in that Cardholder having his /her card withdrawn and possible disciplinary
action.
If a card is lost or stolen, both JP Morgan Chase Bank's Customer Service and the Program
Administrator should be notified immediately. The Customer Service Center is available 24
hours a day, 7 days a week and can be contacted at (800) 316 -6056. A Procurement Card
Lost /Stolen Card Notification Form should also be completed as soon as possible and submitted
to the Program Administrator. A new card shall be promptly issued to the Cardholder after the
reported loss or theft. A card that is subsequently found by the Cardholder after being
reported lost shall be destroyed.
A Cardholder may have two (2) cards replaced due to loss. Any additional requests may result
in the revocation of Cardholder privileges. If a Cardholder is determined to be negligent in
regards to security, replacement cards will not be issued.
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IX. JP MORGAN CHASE
A. Payment - The Card is a corporate pay arrangement with JP Morgan Chase. Account
balances will be paid in full each month no later than the 30 calendar day after
statement close. The Program Administrator will receive a centralized statement
detailing all Cardholder activity. A copy of the centralized statement will be provided to
each applicable Cardholder to review, complete the appropriate form, obtain appropriate
signature(s) and return all attached receipts and documentation. Accounts Payable will
designate a pay request deadline to Cardholders upon initial dissemination of the
centralized statement in order to ensure payment will be made to JP Morgan Chase as
agreed. Cardholders should not receive a separate cardholder statement directly from JP
Morgan Chase. Should this occur, please disregard the statement and notify Accounts
Payable.
B. Audit — All cardholder activity is subject to audit by Corporate Audit, the Program
Administrator, his or her designee, Approvers, and any other appropriate City of
Kennedale personnel or outside audit firm. Audits help ensure adherence to the
Program's policies and procedures.
C. Customer Service —There are several methods or avenues available for assistance.
1) For Individual Cardholder The Program is serviced using a team approach with JP
Morgan Chase Bank's Customer Service Center, which can be reached at (800) 316-
6056. This center is available 24 hours a day, 7 days a week to assist the Cardholder
with general questions about the procurement card account. If a card is lost or stolen,
both Customer Service and the Program Administrator should be notified
immediately. A Procurement Card Lost /Stolen Notification Form should also be
completed as soon as possible and submitted to the Program Administrator.
2) For Program Administrator Only The Program Coordinator Service Team for the State
of Texas is a specialized group that provides service strictly to Program Administrators
and helps with day -to -day activities and updating of Merchant Account Code (MAC)
authorizations. This group can be contacted at (888) 508 -9758, (888) 297 -0785 fax, or
email ccs- public - sector @jpmchase.com. The Program Coordinators are available from
7:00 AM to 6:00 PM CST. When calling the Program Coordinators, please be prepared
to provide a Company Number, Agent Number and Security Identifier. Individual
Cardholders should not utilize this phone number.
3) For Program Administrator Only Client Application Support provides assistance with
the Smart Data On -Line software application. This group answers questions about
functionality, resets Program Administrator passwords and helps trouble shoot any
other application related issues. Client Application Support can be contacted at (877)
967 -1100, Option 2.
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X. ANNUAL REVIEW
The Director of Finance shall, at a minimum, submit proposed amendments of this policy to the
City Council annually.
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1. EMPLOYEE /CARDHOLDER INFORMATION
Name:
Social Security (Last 4 Only):
Department /Division:
Mother's Maiden Name:
Date of Birth:
Office Phone:
II. CARD LIMITS: MAXIMUM
PURCHASE LIMITS: Please note that these are "suggested" levels based
on position; however, selection may vary based on particular need or function.
Position
Single Transaction Limit Monthly Cycle Limit
Line Staff
$500 $1,000
Supervisor
$1000 $2,500
Dept Head
$3,000 $5,000
City Manager
$3,000 $25,000
Single Transaction Limit Requested:
Monthly Cycle Limit Requested:
Department Head Name:
Department Head Signature:
Date:
II. CARD ORDER & RECEIPT
Date Ordered: Who Ordered:
Date Received:
Cardholder's Name as it Appears on the Card:
Card Number:
Expiration Date:
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J
KENNEDALE
Ffndntl` OcpartmMt
CITY OF KENNEDALE
PROCUREMENT CARDHOLDER ACKNOWLEDGEMENT FORM
(Appendix B)
I understand that the general use of the City of Kennedale credit card for small purchases is a standard
procedure of the City.
1) 1 will be expected to use the credit card issued to me as directed by the provisions of the City's
Procurement Card Program Policy.
2) 1 will not permit another person to use the credit card issued to me. Any such purchases made
with my card will be considered to be made by me and my responsibility.
3) 1 will be responsible for the safe keeping of the credit card issued to me and if lost or stolen,
will report its loss immediately to both JP Morgan Chase Bank's Customer Service and the
Program Administrator (Finance Department).
4) 1 understand that my personal credit will not be affected by any use of the City of Kennedale's
credit card.
5) By accepting the Card, I recognize that I may be subject to periodic internal control reviews and
audits designed to protect the interests of the City, and I agree to comply with these reviews
and audits.
6) In the event of termination of employment whether for retirement, voluntary separation,
resignation or dismissal, I also agree to surrender and cease use of the Card. In addition, I must
surrender and cease use of the Card in the event of transfer or relocation.
7) 1 may also be asked to surrender the Card at any time deemed necessary by management.
8) The use of a City credit card to acquire or purchase goods and services for other than the
official use of the City is fraudulent use. An employee guilty of fraudulent use will be subject to
disciplinary action, up to and including dismissal.
9) 1 agree that any reimbursement owed the City may be deducted from my wages as outlined in
the City Procurement Card Program Policy.
By signing below, I acknowledge that I have read and agree to the terms and conditions of this
document, as well as the City of Kennedale's Procurement Card Program Policy.
Employee Name:
Employee Signature:
Date:
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)
KENNEDALE
Finance Dcpanment
CITY OF KENNEDALE
PROCUREMENT CARD LOST /STOLEN /FRAUD NOTIFICATION FORM
(Appendix C)
Cardholder's Name:
Card Number:
Card Was (Please Check One):
Lost
Stolen
Other (Describe):
Describe How Card Was Lost /Stolen:
Was Police Report Filed (Circle): Yes or No
If Yes: Department:
Report Number:
Credit Card Company Notified: Date:
Time:
Cardholder's Signature:
Finance Director's Signature:
Date:
Date:
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)
KENNEDALE
Finance Department
Cardholder's Name:
Cardholder's Signature:
Vendor Name:
Statement Date:
Transaction #:
Amount Disputed:
There is a difference in the amount I authorized, and the amount I was billed (a copy of your
charge must be attached).
I only transacted one charge and I was previously billed for it (date of previous charge
The above transaction is mine but I am disputing the transaction (please state your reasons
why in detail).
,I do not recognize the above transaction.
I have received a credit voucher for the above transaction, but it has not yet appeared on my
account (a copy of the credit voucher must be attached).
My account has been charged for the above transaction, but I have not received the
merchandise. The details of my attempt to resolve the dispute with the vendor and the
vendor's response are indicated below.
Attach the completed form to your monthly statement for review and approval by your Approving
Supervisor and Accounts Payable.
Date:
Transaction Date:
Posting Date:
CITY OF KENNEDALE
PROCUREMENT CARD TRANSACTION DISPUTE FORM
(Appendix D)
Card Number:
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