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HomeMy WebLinkAboutG07.0 Purchasing Charge Cards �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: PURCHASING CHARGE SECTION: G NUMBER: 7.0 CARDS PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 1 of 7 PURPOSE 7.1 The purpose of the City of Grapevine's Purchasing Card program is to establish a more efficient cost-effective method of purchasing and paying for small dollar transactions as well as high-volume, repetitive purchases. If used to its potential, the 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 are reduced. POLICY 7.2 The Purchasing Card is issued in your name. All purchases made with the Purchasing Card must be for your Division/Department only. City policy prohibits loaning your card to any other employee to make purchases. You are responsible for the security of the Purchasing Card and the transactions made with it. If you do not follow guidelines when using the Purchasing Card, you could receive corrective action, including termination. 7.3 You are authorized to use the Purchasing Card to purchase supplies and services up to the single transaction limit and up to the monthly total limit as established by your Department Director. 7.4 Along with the Site Administrator, you must reconcile the statement received from the Bank to ensure all charges are accurate. 7.5 The Purchasing Card is not for personal use. 7.6 The Purchasing Card must be returned to the Purchasing Division upon your transfer or termination. Your final payroll check will not be issued until the card is returned. 7.7 DUTIES AND RESPONSIBILITIES 7.7.1 Program Administrator The Program Administrator for the City of Grapevine is the �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: PURCHASING CHARGE SECTION: G NUMBER: 7.0 CARDS PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 2 of 7 purchasing representative designated by the Purchasing Agent. The Program Administrator handles questions, resolves problems and administers the program. 7.7.2 Site Administrator Each department has been assigned one or more Site Administrators. These administrators have been designated by your Department Director to administer the program at the department level. Site Administrators keep documentation for the Purchasing Card activities within your division, reconciles monthly statements between the cardholder and Finance and assigns account codes to transactions. Site Administrators are knowledgeable about the program and can help with Purchasing Card changes (i.e., credit limits, Purchasing Card information, etc.). If questions or problems arise about the program, cardholders should FIRST contact their Site Administrator, who will then answer the question, correct the problem or, if necessary, refer the questions or potential problems to the Program Administrator. 7.7.3 Cardholder Cardholders have been designated by your Department Director to utilize the Purchasing Card Program. You are responsible for following the guidelines provided by the City of Grapevine in regards to purchases, selection of vendors, security of card and (along with the Site Administrator) monthly reconciliation. 7.7.4 Department Directors Your Department Director is responsible for designating cardholders and approving monthly Purchasing Card statements of cardholders to ensure they are within company policy. The Director has also assigned cardholder spending limits and regulations. 7.8 JP Morgan Chase Bank Customer Service �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: PURCHASING CHARGE SECTION: G NUMBER: 7.0 CARDS PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 3 of 7 7.8.1 If a Purchasing Card is lost or stolen, immediately contact JP Morgan Chase Customer Service at 1-888-890-0669. After contacting the Bank, notify the Program Administrator. Prompt action can reduce your company's liability of fraudulent activity. 7.8.2 JP Morgan Chase Bank customer service should only be contacted directly if your have lost your card or it has been stolen. ALL OTHER CARD REQUESTS SHOULD BE FORWARDED TO YOUR SITE ADMINISTRATOR OR THE PURCHASING DIVISION. 7.9 PURCHASING CARD CONTROLS 7.9.1 Credit Limits Purchasing Cards limits may vary for each cardholder and will be established by the Program Administrator in conjunction with the Department Director. If you need to change your limits, discuss it with your Director for approval. 7.9.2 Transaction Limits Your Purchasing Card has a single transaction limit. This is the amount available on the Purchasing Card for a single purchase. The City of Grapevine is a tax-exempt municipality and as such is exempt from all tax allowed by law. Cardholders should not attempt to make a purchase greater than his/her approved amount. The Program Administrator is the only person authorized to handle changes to the transaction limit. PURCHASES SHOULD NOT BE SPLIT TO AVOID THE LIMIT. 7.9.3 Restricted Purchases The Purchasing Card program may be restricted for use with certain types of suppliers, merchants and commodity categories. If you present your Purchasing Card for payment to these vendors, the authorization request will be declined. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: PURCHASING CHARGE SECTION: G NUMBER: 7.0 CARDS PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 4 of 7 7.9.4 Sales and Use Tax TRANSACTIONS MADE BY THE CITY OF GRAPEVINE ARE TAX-EXEMPT. It is the cardholder's responsibility to notify the vendor of our tax-exempt status when making a purchase and to submit a TAX-EXEMPT FORM upon request by the vendor. 7.9.5 Security of the Purchasing Card The cardholder is responsible for the security of the card. This card should be treated with the same level of care as the cardholder would use with his/her own personal charge cards. Guard the Purchasing Card account number carefully. It should not be posted in a work area, or left in a conspicuous place. 7.10 GENERAL CARDHOLDER GUIDELINES Cardholders should promote and encourage positive interactions with suppliers. Honesty and courtesy are essential ingredients in all aspects of a buyer/supplier relationship. The City of Grapevine promotes the use of local Grapevine vendors where possible. All cardholders should follow these guidelines below when using the Purchasing Card: 7.10.1 Determine if the transaction is an acceptable use of the card, and if it is within the cardholder's spending limit. Justify and defend every purchase. 7.10.2 Identify the supplier and call, fax or visit the supplier to place your order. 7.10.3 If the order is by mail, specify cardholder name, company name, department name and shipping instructions. Also, specify the Purchasing Card number, expiration date and name as it appears �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: PURCHASING CHARGE SECTION: G NUMBER: 7.0 CARDS PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 5 of 7 on the card. 7.10.4 Inform the vendor that the City is tax-exempt. Forward a copy of the tax-exempt form if requested. 7.10.5 Confirm the pricing and freight. Make sure the combination of both does not exceed the single transaction limit 7.10.6 Request that a hard copy of the pricing and freight be faxed or emailed to the cardholder and/or included in the shipment of supplies. Instruct the vendor not to send a copy of the invoice to accounts payable in order to avoid duplicate payments. 7.10.7 Use your name for the Purchase Order number. 7.10.8 Request that the supplier indicate your name and the words "Purchasing Card" on all packing lists and box labels. This will enable the receiving department to facilitate delivery of your supplies. Shipments without this information may be refused and returned to the vendor. 7.11 Receiving Supplies and Services A copy of the charge slip, sales receipt or any other information related to the purchase MUST BE KEPT AND ATTACHED TO THE TRANSACTION LOG by the cardholder. The cardholder should instruct the vendor on each purchase to: 7.11.1 That the City Is TAX-EXEMPT. A tax-exempt form (which has been included with your packet) should be given to the vendor if requested. 7.11.2 If the purchase is made via mail or telephone, ask the vendor to include the receipt with the goods when shipping the product. 7.11.3 Do not send an invoice to accounts payable. This will prevent duplicate payments to the vendor. The sales receipt received by �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: PURCHASING CHARGE SECTION: G NUMBER: 7.0 CARDS PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 6 of 7 the cardholder at the point of the sale will be used to reconcile the monthly card statement. 7.12 Employee Liability Employees do not pay their own monthly statement. The program does not affect your credit rating in any way. If the card is accidently used to purchase non-City business goods and services you must notify your Site Administrator in writing. 7.13 Returns, Credits and Disputed Charges Should a problem arise with a purchased item, service or charges, every attempt should be made to first resolve the issue directly with the supplier. Review of future statements is vital to ensure the account is properly credited for returns, credits and disputed charges. The returned, credited or disputed item MUST BE NOTED ON THE PURCHASING CARD TRANSACTION LOG. 7.13.1 Returns. If a cardholder needs to return an item to a supplier, contact the supplier and obtain instructions for return. Note that some suppliers may charge a restocking or handling fee for returns. 7.13.2 Credits: If the supplier accepts an item as a return, a credit for this item should appear on the following month's statement. All credits should be verified in the transaction log. 7.13.3 Disputed Charges: If a cardholder finds a discrepancy on a monthly statement, the cardholder should contact the supplier and attempt to resolve the problem directly. If a cardholder cannot resolve a disputed item directly with the vendor, the cardholder must notify their Site Administrator for assistance. 7.17 PURCHASING CARD ACTIVATION CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: PURCHASING CHARGE SECTION. G NUMBER: 7.0 CARDS PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 7 of 7 The cardholder must call 1-866-602-8170 to activate the Purchasing Card before using it. You will need the card number and the last four digits of your social security number when prompted for access code to complete the activation. Upon receipt of the card, the cardholder should sign the back of the Purchasing Card and always keep the card in a secure place.