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23-1644 Adopting Purchasing Card PolicyRESOLUTION NO.23-1644 A RESOLUTION OF THE CITY OF LONGWOOD, FLORIDA, ADOPTING THE PURCHASING CARD POLICY OF THE CITY OF LONGWOOD; PROVIDING FOR SEVERABILITY; AND AN EFFECTIVE DATE WHEREAS, certain employees or officers of the City of Longwood, Florida, have the authority to purchase goods and services using Purchasing Cards as previously set forth in the City's Purchasing Policies and Procedures Manual; and WHEREAS, the City recognizes that the Purchasing Card is neither a substitute for public bidding nor the city's existing procurement program, and that the Purchasing Card Program is not implemented for the purpose of bid splitting and/or the avoidance of the statutorily mandated public bidding process; and WHEREAS, it is the desire of the City of Longwood to establish a separate Purchasing Card Policy governing the issuance and use of purchasing cards to continue reducing the economic burden on the resources of the city by increasing efficiency and responding to the exigencies of the day-to-day operations in accordance with the procurement process; and WHEREAS, by their use, such Purchasing Cards create a legal "and binding -debt obligation of the City of Longwood. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF- LONGWOOD, FLORIDA: SECTION 1. The policies and procedures governing the use of the City's Purchasing Cards, are attached hereto and incorporated herein as Exhibit "A." SECTION 2. The City Manager, Finance Director, and Purchasing Manager are hereby authorized to execute any and all documents necessary to secure the Purchasing Cards and establish the program as outlined in the attached policy and procedures for Purchasing Cards approved via this Resolution. Resolution No. 23-1644 Page 1 of 2 SECTION 3. As a condition precedent to receiving the Purchasing Card, each authorized employee must execute a Purchasing Cardholder Agreement. SECTION 4. SEVERABILITY: It is hereby declared to be the intention of the City Commission that the sections, paragraphs, sentences, clauses and phrases of this Resolution are severable, and if any phrase, clause, sentence, paragraph or section of this Resolution is declared unconstitutional by the valid judgment or decree of a court of competent jurisdiction, such unconstitutionality will not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this Resolution. SECTION 5. EFFECTIVE DATE: This Resolution shall take effect immediately upon final passage and adoption. PASSED AND ADOPTED THIS 6th DAY OF NOVEMBER 2023. City of Longw od, Florida l Tony B bilmayor Approved as to form and legality for the use and reliance of the City of Longwood, Florida, only. w� Daniel W. L YARf6rney Resolution No. 23-1644 Page 2 of 2 Exhibit "A" COMMISSION POLICY CITY OF LONGWOOD SUBJECT: PURCHASING CARD POLICY POLICY NUMBER EFFECTIVE DATE PAGE P-209 November 6, 2023 1 of 14 ADOPTED BY: Resolution No. 23-1644 AMENDED BY: DATED: November 6, 2023 REVISES POLICY: N/A PURPOSE: The purpose of City of Longwood Purchasing Card (P-card) Program is to establish policies for the use and control of purchasing cards that will be assigned to and utilized by designated City employees to purchase goods and services on behalf of the City of Longwood or when authorized per this policy. This policy is intended to accomplish the following: • To ensure that purchasing card purchases are conducted in accordance with the City's established ordinances, policies, and procedures; • To improve efficiency in processing relatively small dollar purchases from any vendor that accepts a purchasing card; • To provide a convenient method for making purchases of goods and services that fall at or below the small purchasing threshold; • To ensure appropriate internal controls are established within each department utilizing the purchasing cards so that the departments use the cards for authorized purposes only; • To ensure that the City incurs little or no legal liability from inappropriate use of purchasing cards by City employees; • To maintain integrity and control of the purchasing process; • To provide for disciplinary action if purchasing cards are misused; • To provide for safer and more modern payment mechanisms by minimizing the use of paper check processing and petty cash; • To provide for more accountability and controls through control features built into purchasing cards; and P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 2 of 14 • To provide minimum standards for the use of purchasing cards, thus authorizing other departments to establish additional controls beyond those suggested by this policy. DEFINITIONS Approving Official means the person who reviews and approves the cardholder's monthly statement of purchases. Bank means the organization that will maintain all accounts as required by the City contract. Cardholder means the City employee to whom a card is issued. The card bears the cardholder's name and may be used only by this individual for authorized City purchases. Monthly Cardholder Limit is a budgetary limit assigned by the Department Director and may be modified if necessary with the approval of the Director of Financial Services or Purchasing Manager. The Department Director shall coordinate with the Director of Financial Services or Purchasing Manager when determining a monthly limit, which limit should reflect spending history as well as budgetary trends. Personal Gain means that the employee or an employee's immediate family member (as defined in § 112.3148, Florida Statutes) personally benefits from the end result of a transaction regardless of whether such benefit is realized directly or indirectly by the employee or employee's immediate family via monetary payment, kickback, third party remuneration, gift, trade, or other valuable means. A transaction will also be deemed to inure to an employee's personal gain if such transaction is made with a business entity of which the employee or the employee's spouse or child is an officer, partner, director, proprietor, or owner of a material interest therein (i.e., more than a 5% ownership interest in such business entity). Purchasing Card Program Manager is the Purchasing Manager, who may also be referred to as the Program Manager, and is responsible for the implementation, administration, and management of the Purchasing Card Program. The Purchasing Manager shall also provide training for employees assigned purchasing cards and maintain and update departmental Policies and Procedures and forms as needed. Single Purchase Limit is a limitation on the purchasing authority delegated to the cardholder. Single purchase using the card may include multiple items. However, no single purchase may exceed the authorized single purchase limit established for each cardholder. Small Purchase means a purchase not to exceed $2,000 per transaction for goods and services. P-209 —Purchasing Card Policy Resolution No. 23-1644 Page 3 of 14 Statement of Account is a monthly listing of all payments authorized for purchase and credits made by the cardholder and billed by the merchant. Verbal purchase means a purchase where an order is placed or a purchase is made through verbal agreement, which is made in person, by telephone, or electronically by providing relevant card and account information to the merchant. POLICY: This policy is applicable to City employees who have been selected to use purchasing cards to purchase goods or services or make specific expenditures incurred under conditions approved by this policy. The decision as to when and to whom a purchasing card is issued will be the responsibility of the Department Director and requires the approval of the Purchasing Manager, Financial Services Director, and the City Manager. ISSUANCE OF PURCHASING CARDS 1. The purchasing card program is administered by the Purchasing Manager, who coordinates issuance, maintenance, and cancellation of such cards with the City's processor, the financial institution providing the cards. Purchasing cards must bear the City's logo and be issued in the name of an authorized individual. 2. The purchasing card will bear the City's name, the City's sales tax exemption number, the employee's name, card account number, and expiration date. The purchasing card provider will not be provided with any of the cardholder's personal information other than the cardholder's work address and work phone contact number. No credit records, social security numbers, or other personal information of the cardholder may be maintained by the purchasing card provider. 3. Purchasing cards are assigned a per transaction dollar limit of $2,000 with higher levels for certain operations as deemed appropriate. Monthly dollar limits are also established, typically $5,000 with higher levels as deemed appropriate. 4. Cards may be requested by completing the Purchasing Card Enrollment Form. Cards will be issued to new cardholders only after they have received appropriate instructions and have signed a Purchasing Card Agreement Form. Forms can be found on the City's share drive or in such other location as may be designated by the Purchasing Manager. 5. Purchasing cards may not be issued by the purchasing card provider in connection with any awards or points programs unless otherwise authorized by the Purchasing Manager. If awards or points programs are authorized by the Purchasing Manager, such awards or points may inure solely to the benefit of the City as an entity and not to any individual purchasing card holder. P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 4 of 14 PURCHASING CARD RESPONSIBILITIES: The following is a summary of the responsibilities of the individuals and areas involved in the purchasing card program. Department Director: • Requests purchasing cards for designated employees; • Sets departmental spending limits within established guidelines; • Designates representatives responsible for authorizing charges; • Collects cards from cardholders at the end of employment; • Evaluates the need to cancel or reissue cards when employees transfer; • Notifies the Purchasing Manager of terminated cards; • Complies with all purchasing card policies and procedures; Cardholder: • Holds and secures purchasing card; • Ensures availability of funds and proper account codes; • Orders/receives materials and services; • Rechecks each transaction to ensure that such transactions do not include sales tax or result in a back -order; • Collects and saves sales receipts. Maintains such receipts in a safe location; • Matches receipts with entries in monthly card statements; • Reviews monthly statements for validity of all transactions; • Processes all billing statements in a timely manner; • Identifies disputed charges; • Reviews monthly charges with supervisor; • Complies with all purchasing card policies and procedures; Department Representative: (As designated by Department Director) • Reviews monthly statement with cardholders; • Rechecks each transaction to ensure that such transactions do not include sales tax or result in a back -order; • Ensures availability of funds for proper account codes; • Verifies the appropriateness of account codes; (i.e., Department/Division/Function/Object Code) • Researches, reports, and follows up on disputed items; P-209 —Purchasing Card Policy Resolution No. 23-1644 Page 5 of 14 • Signs the monthly statement authorizing charges; • Processes all billing statements in a timely manner; • Forwards statements and supporting receipts to Accounts Payable; • Complies with all purchasing card policies and procedures. Finance Department —Accounting Coordinator • Monitors changes for proper account codes and fund availability; • Receives approved monthly statements from all card holders; • Receives consolidated statements from purchasing card issuer; • Confirms that all charges are authorized by department representatives; • Notifies departments when approved monthly statements are not received; • Reconciles monthly transactions and accounting data; • Processes and posts monthly entries to General Ledger; • Files, scans, and stores statements, receipts, etc. • Monitors missing documentation and notifies cardholder and the Purchasing Manager of same and notifies the Purchasing Manager and Finance Director of any violations or discrepancies. Purchasing Card Program Administrator: (Purchasing Manager) • Coordinates program policy issues; • Devises and implements training program for all cardholders; • Coordinates issuance and cancellation of cards; • Targets new cardholders and expanded uses of card; • Maintains and updates policies and cardholder guides/manuals/training; • Evaluates purchasing card feedback from suppliers and from departments; • Coordinates and maintain internal controls; • Assists in resolving billing disputes; • Participates in ongoing program reviews; • Pursues supplier discount opportunities; • Establishes and monitors benchmarking objectives; • Conducts semi - annual inventory of purchasing cards; PURCHASE LIMITATIONS/RESTRICTIONS: The purchasing card may be used to pay for small purchases of supplies or services using verbal solicitation procedures as long as the purchaser determines that the price is fair and reasonable. P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 6 of 14 2. Single limit purchases are applied by the cardholder and are based on established dollar thresholds. 3. Single purchases are made for efficiency purposes and may include multiple items. 4. Monthly cardholder limits are established by policy and are necessary in order for financial controls to be maintained. 5. Without exception, the purchasing card may be used only to pay for authorized City purchases, and may not be used for purchase of items or services inuring to the personal gain of the cardholder. 6. Under no circumstances may a purchasing card be used for cash advances. 7. The following types of purchases are available for purchasing card use within City of Longwood: a. Cardholders are authorized to use the purchasing card to make small purchases of goods and services up to $2,000 per transaction. Purchases will be denied if an attempt is made to exceed the authorized single purchase limit. b. Splitting transactions in order to exceed the $2,000 threshold is a violation of this policy. 8. The purchase card may be used for emergency purposes when it is determined by the City Manager to be in the best interest of the City. 9. Due to the nature of a transaction, the City Manager may approve one-time, unique, irregular, or abnormal purchases. Advanced approval from the City Manager is required for such purchases. 10. This policy is subject to the City's Procurement Policy. If a conflict arises between this policy and the Procurement Policy, the Procurement Policy will govern and control to the extent such conflict exists. 11. All items purchased over the counter using the card must be immediately available. Backordering of items or goods is prohibited. 12. All items purchased by telephone order that will not be confirmed with a written order and will be paid using the card must be delivered by the vendor within the 30-day billing cycle. The order may not be placed without this assurance. 13.Only the person entitled to use the purchasing card is the employee whose name appears on the card. Loaning or otherwise allowing others to use a purchasing card is prohibited. 14. All items purchased during one telephone transaction that will not be confirmed by a written order must be delivered in a single delivery. If an item is not immediately available, no back -ordering is allowed. 15. Unless written approval is provided in advance for emergency use by City Manager, the card may not be used for the following: a. Cash advances; b. Cash from any vendor; c. Gasoline or oil; P-209 —Purchasing Card Policy Resolution No. 23-1644 Page 7 of 14 d. Alcohol, tobacco, e-cigarettes, and related products; e. Gambling or entertainment f. Services that require IRS Form 1099; g. Equipment leases; h. Charges for telephone, cell phone, internet, cable, or utility services; i. Transactions that inure to the personal gain of a City employee; j. Payment of invoices for purchases more than 45 days old; k. Travel expenses related to food; 1. Employment of independent contractors and consultants; m. Capital equipment and expenditures related to capital projects; n. Inventoried assets or controllable inventory, this includes technology purchases such as tablets, computers, phones, and software. These purchases must be coordinated with the Director of Information Technology unless otherwise authorized by the Purchasing Manager. VIOLATIONS OF PURCHASING CARD POLICY: Personal Use: It is a direct violation of City Policies and Procedures to use the purchasing card for personal gain. Any abuse or misuse of the purchasing card or this procedure will result in the suspension or revocation of a purchasing card and preclusion of the violator's further participation in the purchasing card program. After appropriate inquiry and investigation, the Purchasing Manager will refer violations and discrepancies to the City Manager for disciplinary or other appropriate action. Use of a purchasing card for personal gain will require immediate reimbursement to the City of the funds expended therefore and will result in disciplinary action, which may include reprimand, or dismissal and termination depending upon the severity of the violation. Other Misuses: 1. It is the responsibility of the ordering department to ensure that all "extra" charges such as freight handling, set up, etc., are considered before a purchasing card transaction is made. A vendor's willingness to honor a purchasing card transaction exceeding $2,000 does not authorize departments to make such purchases. 2. Purchases from vendors that create conflicts of interest under applicable state or local laws or regulations, i. e.: purchases from companies owned by the city employee or their relatives, etc. 3. Multiple smaller purchasing card transactions made for the purpose of circumventing the $2,000 per transaction limit. 4. Any other purchasing card transactions that are prohibited as may be set forth in this policy. 5. Failure to produce proper documentation, receipts, invoices, monthly statements, etc., to the Finance Department for prompt payment. P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 8 of 14 6. Failure to report lost or stolen purchasing card as required by this policy. 7. Charging to purchasing card accounts when funds are not available. REBATES, DISCOUNTS, GIFT CARDS/CERTIFICATES AND OTHER INCENTIVES If any rebates, discounts, gift cards/certificates, or similar incentives ("benefits") received by a cardholder from merchants based on purchases made by the cardholder are provided to the cardholder, such benefits belong to the City of Longwood and must be remitted to the Department Director or Purchasing Manager for the official use of the City. Such benefits may not be used by the individual cardholder for personal gain or purposes unrelated to official City business, and any such use will be deemed fraud and result in appropriate disciplinary action up to and including termination of employment. DISCIPLINARY ACTION GUIDELINES: The Purchasing Card Program Administrator's responsibility: 1. Any incident of improper or unauthorized use of the card must be immediately reported to the City Manager and Finance Director. 2. The Purchasing Card Program Administrator may suspend or otherwise revoke cardholder privileges for improper or unauthorized use. 3. Failure to submit monthly statements, invoices, or other supporting documentation related to cardholder activity within the time periods specified may result in the following: • First Offense - suspension of cardholder privileges for a minimum of seven (7) days. • Second Offense - suspension of cardholder privileges for a minimum of thirty (30) days. • Third Offense - immediate termination of cardholder privileges and a written reprimand issued by the Purchasing Card Program Administrator, which must be maintained in the employee's personnel file. Depending upon the severity of the offenses, the cardholder may be terminated from employment with the City. 4. The Purchasing Card Program Administrator will notify the City Manager of any purchasing card policy violations and any disciplinary or other remedial action that was taken in response thereto. The City Manager's responsibility: 1. The City manager shall undertake appropriate disciplinary action based upon his/her consultation(s) with the individual cardholder, the cardholder's supervisor, and the Purchasing Card Program Administrator. Depending on the circumstances and the severity P-209 —Purchasing Card Policy Resolution No. 23-1644 Page 9 of 14 of the infraction, the City Manager may delegate this responsibility to the cardholder's Department Director. Misuse and Abuse of the Purchasing Card: 1. Misuse is the intentional or unintentional violation of purchasing card policies and procedures when such violation does not inure to the personal gain of the cardholder. Three or more misuses of a P-Card by a cardholder within a six month or audit review period will result in suspension and/or revocation of the cardholder's purchasing card privileges. If misuse occurs three or more times within a six month or audit review period, the Purchasing Manager shall send an email notification of such misuse to the offending cardholder and copy the Department Director, Finance Director, and City Manager regarding same. 2. Abuse is the intentional or unintentional violation of purchasing card policies and procedures for personal gain. Abuse violations are cause for immediate cancellation of the purchasing card. The Department Director is responsible for taking appropriate disciplinary action after consulting with City Manager and Human Resources Director. Such disciplinary action may result in penalties up to and including termination of the violator's employment. 3. Nothing herein will preclude the City from pursuing additional legal remedies or reporting potentially criminal behavior to appropriate law enforcement agencies when warranted. CHARGING AND PAYMENT OF INVOICES: General Information 1. When using the purchasing card, the department will make the purchase at the best possible price. 2. Because the purchasing card purchase is initiated at the department level, there is no automatic encumbrance of budget funds until the transaction is posted by the Finance Department. Therefore, it is the responsibility of the department to check and ensure that the account being charged has funds readily available for any purchasing card transactions at any given time. Documentation of Over the Counter Purchases 1. When a purchase is made with the purchasing card, the cardholder must obtain the customer's copy of the charge slip in addition to the detailed invoice/receipt. The charge P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 10 of 14 slip or related cash register slip/receipt must show in sufficient detail the type and number of items purchased with the unit cost. 2. The charge slip and detailed invoice/receipt will be retained by the cardholder or by the department representative in a secure location. All charge slips and invoices will be verified against the monthly bank statement and forwarded to Accounts Payable with the monthly statement. 3. The City is exempt from sales tax. The cardholder must ensure that the vendor is aware of this and that the sales tax is not added to the transaction. The Finance Department maintains the tax exemption certificate for the City and copies of such are available upon request to provide to vendors, if necessary. Telephone Orders 1. When placing a telephone order, the cardholder must confirm that the vendor will not charge the purchasing card transaction until the item is shipped. This will ensure that the receipt of the item occurs during the same billing cycle as the charge. Florida law prohibits payment to a vendor prior to receipt of goods or services except in specific and limited circumstances. 2. Inform the vendor that the City is tax exempt and will not pay tax. The tax exemption number is imprinted on each card. 3. If the item is not available, the purchasing card cannot be used for the transaction. 4. It is important to inform the vendor that no back orders are permitted. 5. A telephone log form will be used to document or record all telephone purchasing transactions. This form will be held at the department until forwarded with the monthly billing statement to the Finance Department. Merchandise Returns 1. The cardholder is responsible for managing any returns/exchanges and ensuring that proper credit is received for returned merchandise. 2. The cardholder must ensure any return credit is applied to the same account originally debited. 3. When returning items, the cardholder must contact the vendor and obtain instructions for return. 4. Cardholders returning items must review subsequent monthly statements to ensure that their accounts have been properly credited for the return (pending credit documentation is required when a cardholder submits his/her monthly statement). P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 11 of 14 Missing Documentation 1. If the cardholder does not have the original documentation of the transaction to forward with the monthly statement, the cardholder shall immediately obtain a copy thereof. If a copy cannot be obtained, the Cardholder must provide the Receipt Information Form stating the reason for missing receipt and provide a detailed description of the purchase. The form must be approved by the Department Director and Approving Official. 2. Continued incidents of missing documentation may result in the cancellation of the employee's purchasing card and privileges. Payment and Invoice Procedures 1. Each cardholder will be provided with a login ID and password to access individual monthly billing statements. In addition, one master consolidated statement for all cardholders will be generated. The statement of account will list all transactions processed during the previous 30-day billing cycle. If no purchases were made on the purchasing card during a billing cycle, no statement of account will be generated therefore unless adjustments for previously billed transactions have been processed during that cycle. 2. The cardholder must review the statement and note any errors or discrepancies. Purchasing card slips/receipts for all items listed on the statement must be attached to the statement. Account numbers for each item (or account numbers and total dollar amounts for groups of items) will be written on each receipt and to be attached to the statement. The statement will then be reviewed and signed by the department representative designated by the Department Director. By signing the statement, the designated department representative is certifying that all charges are appropriate, funds are available, and payment is authorized based on the attached receipts. Once the department representative has reviewed all statements for which they are responsible, the statements and forms will be forwarded to the Accounting Coordinator in the Finance Department. In addition, the cardholder must provide the purchasing card reconciliation form emailed by the Purchasing Manager listing account numbers and information of each transaction. 3. The Accounting Coordinator will ensure that the consolidated statement received is reconciled against the individual cardholder statements forwarded from the departments, and that all receipts and charges reconcile. Department Directors will be notified when individual statements are not received in the allotted time. Continued failure to meet the deadlines may result in the revocation of the purchasing card and attendant privileges at the discretion of the Purchasing Card Manager in accordance with these purchasing card procedures. P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 12 of 14 DISPUTES: 1. If items purchased with the purchasing card are defective, the cardholder must return the items(s) to the vendor for replacement or credit. If a service which is paid with a purchasing card is found to be unsatisfactory, the vendor must be notified and asked to correct the situation or to provide a credit. If the vendor refuses to replace or correct the faulty item or service, the purchase will be considered in dispute. 2. If a charge appears on a monthly statement in error or is incorrectly billed, the cardholder must first attempt to contact the vendor immediately. If the cardholder cannot obtain a credit from the vendor then the cardholder should complete the dispute form and follow the required procedures. The cardholder is initially responsible for handling the dispute. The department Director and/or his/her designee will review the actions taken and determine whether the dispute was handled properly. The Cardholder Statement of Disputed Item Form must be forwarded with the statement upon which the disputed charge appears and with the statement that includes the resolution (credits or price adjustments). 3. It is essential that the time frames and documentation requirements established by the purchasing card issuer be followed to protect the cardholder's rights in dispute. DISPUTE PROCEDURES: 1. A disputed item must be identified and explained on the cardholder's statement before the statement is forwarded to the Finance Department for payment. 2. The cardholder must contact the Merchant regarding the transaction and supply all necessary and relevant information to commence the resolution process. In addition, the cardholder must complete the Cardholder Statement Disputed Item Form, explaining the reason(s) for the dispute and remit the completed form with a copy of the statement to the Department Director and Purchasing Card Program Administrator. 3. If the dispute between the Merchant and the cardholder is satisfactorily resolved, the cardholder must write the details of the resolution on the bottom of the Dispute Form. The revised form must be forwarded to the Department Director and Purchasing Card Manager as soon as possible. 4. If a satisfactory agreement cannot be reached with the Merchant, the following steps will occur: a. Cardholder must forward the completed Dispute Form and a copy of the sales draft form to the card provider's representative (i.e., the bank representative). The card provider should then place the transaction into a dispute status. b. After the item has been registered as a dispute, the card provider will research the transaction and determine which party is liable. When the card provider determines liability for the transaction, the dispute will be settled online and its status will be reflected on the next monthly statement. P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 13 of 14 c. When an account is in dispute status, the disputed amount is still included in calculating the available money for authorization (monthly limit). At the time the item is placed in dispute, it is removed from all finance charges, late charges, over limit fees, past due amounts, and calculations. Finance charges, which accrue from the date of posting until the item is placed in dispute, must be handled according to City policy. Any cardholder statements generated while the account is in dispute will display the following message: YOUR ACCOUNT IS IN DISPUTE FOR $XXX.XX THIS AMOUNT HAS NOT BEEN INCLUDED IN THE FINANCE CHARGE OR PAYMENT CALCULATIONS. d. If the card provider determines that the cardholder is liable for the transaction, payment will be required by the City, and no further action is required. If the cardholder is not liable for the transaction, the dispute is settled in favor of the cardholder, and the charge back process may be initiated against the merchant or vendor. e. If there continues to be a problem with a particular merchant or vendor, the cardholder should notify the Purchasing Manager of such recurring problems. REVIEW OF PURCHASES BY DEPARTMENTS 1. Because of their knowledge of relevant job responsibilities and requirements, department representatives must review each purchasing card expenditure (item purchased, amount, and vendor) to ensure the goods or services purchased were necessary and acquired for official use. 2. When purchases are questionable or suspicious, the Department Director or designee will be responsible for resolving the issue with the cardholder. If the Department Director remains unsatisfied that the purchase was necessary and made for official use, the cardholder must provide a credit voucher proving the item(s) were returned for credit. 3. All misuse and abuse must be recorded on the "Purchasing Card Misuse/Abuse Notification Form" by the Department Director, and sent to the Purchasing Card Manager. The Purchasing Card Manager will document the misuse and abuse and send the document to the City Manager and Finance Director based on the severity of the abuse. 4. To assist the Department with the reviews, management reports will be available from the purchasing card company. Lost or Stolen Purchasing Cards 1. If any employee loses or has his/her purchasing card stolen, it is the responsibility of the cardholder to immediately notify the card issuer and the Purchasing Card Program Manager of the loss. The telephone number of the purchasing card issuer will be provided when the card is issued to the cardholder. P-209 — Purchasing Card Policy Resolution No. 23-1644 Page 14 of 14 2. In addition to notifying the card issuer, the cardholder must also notify their Approving Official and the Finance Director of the lost or stolen card WITHIN ONE WORKDAY after discovery of the loss or theft of the card. The Approving Official is required to make a written report to the Finance Director WITHIN 5 WORKDAYS, which includes the all relevant information regarding the loss, including the date on which the loss was discovered, the location where the loss occurred, if known, the purchases that the cardholder made prior to the loss, and any other information that is pertinent. If the card is returned, it must be remitted to the Purchasing Card Program Administrator for destruction. Terminating Employee 1. Purchasing Cards are issued to individual employees. If an employee leaves the City, his/her card must be collected and destroyed. The Approving Official will be responsible for collecting the card and forwarding it with a memorandum to the Purchasing Card Program Administrator explaining the reason for the cancellation. The Program Administrator will then destroy the card and notify the Bank that the purchasing card has been destroyed once the attestation is received from the Approval Official. 2. If a cardholder is transferred within the City to another department or position, it will be the new Approving Official who will determine whether the employee will be issued a new purchasing card in their new position. 3. If the Approving Official is unable to collect the purchasing card when the employee leaves, the Approving Official shall immediately notify the Purchasing Card Program Manager to ensure the purchasing card is voided to prevent any purchases following the employee's departure. REVIEW AND REVISION OF PURCHASING CARD POLICY Compliance with the provisions of this policy will be monitored and reviewed by the Purchasing Manager and Director of Financial Services Department. FORMS • Purchasing Card Cardholder Agreement • Purchasing Card Authorization Form • Missing Receipt Information • Cardholder Statement of Disputed Item • Purchasing Card Misuse -Abuse Notification Form EFFECTIVE DATE This policy shall become effective immediately upon adoption by City Commission. CITY OF LONGWOOD PURCHASING CARD CARDHOLDER AGREEMENT Please review the terms stated below and sign and date. You will receive copies for you and your Approving Official's records. Please note that this Cardholder Agreement also acts as your signature card and will be kept on file in the Purchasing Division of the Financial Services Department. I, , hereby acknowledge receipt of Bank of America credit card number (the "Card"), in good condition, with both the City's name and mine appearing on the Card. I have verified the information contained thereon and attest to its accuracy. I have received, read, and understand the City of Longwood Purchasing Card Policy. I agree to accept responsibility for the protection and proper use of the Card in accordance with the above -referenced policies and procedures. I understand that my use of the Card is subject to audit by the Financial Services Department, that my purchases with the Card are limited to the dollar amounts as set forth in the policies and procedures, and that the Card may not be used to purchase certain commodities as outlined in the policy. I further understand that I am authorized to purchase only for the Department or Division and that all purchases must be for official business on behalf of the City. If the Card is lost or stolen, I agree to immediately notify Bank of America at the number listed below, my Approving Official, and the Purchasing Card Program Administrator. I also agree to immediately dispute any unauthorized charges to the card with Bank of America at the number listed below and in writing by using the Cardholder Statement of Disputed Item Form, and notify my Approving Official. I understand that failure to immediately notify my Approving Official of the presence of unauthorized charges on my Statement of Account could make me responsible for charges resulting from fraudulent or improper use of the card. I further agree to notify the Purchasing Manager, Department of Financial Services at (407) 260-3480 as soon as possible of any unauthorized or suspicious activity detected in connection with the Card account. Bank Contact: Bank of America General Information and Lost or Stolen Card (24 hours): 1-888 449-2273 Fraud Number: 1-888-329-6262 Card Activation Number: 1-888-571-1000 Page 1 of 2 The improper or unauthorized use of the Card may result in any or all of the following: suspension or termination of the Card and all associated Cardholder privileges, deduction from pay any charges resulting from the improper or unauthorized use of the Card, and TERMINATION OF EMPLOYMENT with the City of Longwood, Florida. The appropriate disciplinary action for misuse of the Card will be imposed by my Department Director based on the recommendation of City Manager and Human Resources Director, which recommendation will be in accordance with City's Disciplinary Action Guidelines. I hereby authorize the City to (i) deduct from my wages or from any other amounts payable to me an amount equal to the total charges for improper or unauthorized purchases with the Card, even if I am no longer employed by the City, and (ii) review and audit my Card account history and use of the Card. If the City initiates legal proceedings to recover amounts owed by me under this Agreement, I agree to pay court costs, reasonable attorney's fees, and other expenses incurred by the City in such proceedings if the City is the prevailing party in such legal action. I understand that the City may suspend or terminate my privileges to use the Card at any time for any reason. I also agree to surrender the Card immediately upon retirement, termination of employment, termination of Cardholder privileges, or upon the request of the Approving Official, the Purchasing Card Program Administrator, or an authorized representative of Bank of America. I understand that use of the Card following termination or suspension of Cardholder privileges is prohibited, and that I will be liable and responsible for charges resulting from such use. Signature: Print Name: Program Administration Use Only Date: Department: Approval Date: Page 2 of 2 CITY OF LONGWOOD PURCHASING CARD (P-CARD) AUTHORIZATION FORM Employee Name: Department/Division: Timeframe: ❑Permanent ❑Tem ora P rY: Transaction Limit:_ $2,000 Monthly Spending Limit: $5,000 Justification for Request: I understand that I am being entrusted with a valuable fiscal implement, a Purchasing Card ("P-Card"). I will strive to obtain the best value for the City when making financial commitments on behalf of the City of Longwood using the P-Card. I understand that the City is liable to Bank of America for all charges made on my P-Card. I further understand that I may be personally liable for the misuse and/or abuse of funds involving my P-Card and P-Card account. I will follow the established policies and procedures set forth in the City of Longwood Purchasing Card Policy. Failure to do so may result in either revocation of card privileges or other disciplinary actions, including suspension or termination. Employee Signature Approved by: Reviewed by: Approved by: Department Director Purchasing Card Program Administrator Financial Services Director Date Date Date Date Approved by: City Manager Date CITY OF LONGWOOD PURCHASING CARD PROGRAM MISSING RECEIPT INFORMATION Date Paid: Amount Paid: Vendor Name: Vendor Address: Item Description: Item Location: Jiaiemeni oT reason Tor missinci rece I Cardholder Name Department Cardholder Certification Title certify that the receipt for the stated of transaction is not available or obtainable. The information set forth in this form is true and accurate, and the amount shown is legally due and was properly incurred on behalf of the City of Longwood for official City business purposes. Cardholder Signature Approving Official Signature Department Director Signature Date Date Date CITY OF LONGWOOD CARDHOLDER STATEMENT OF DISPUTED ITEM To: Procurement Card Program Administrator Thru: (Approving Official) From: (Cardholder) Subject: Disputed Item(s) on Procurement Card Statement The highlighted item(s) listed on the attached copy of my Statement of Account is/are disputed. In accordance with Purchasing Card Policy, I have attempted to resolve this transaction with the merchant; however, such attempts have been unsuccessful. Your assistance is now required in seeking satisfactory resolution through the card issuer. I have indicated below the reason for the dispute and the requested performance by the merchant/card issuer. I did not make nor authorize the above transaction. (Please indicate the whereabouts of your credit card.) There is a difference in the amount I authorized and the amount I was billed. (Copy of your charge must be enclosed.) I transacted for only one charge, and I was previously billed for this sales draft. Date of previous charge (Copy attached.) I authorized the foregoing transaction, but I am disputing the transaction for the following reasons. (Please state your reasons why in detail and the action(s) required by merchant and/or card issuer.) Page 1 of 2 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 enclosed.) My account has been charged for the above transaction, but I have not received this merchandise. The details of my attempt to resolve the dispute with the merchant and the merchant's response are indicated below: My account has been charged for the above transaction, but the merchandise has since been returned and no refund has been received. (Please enclose a copy of your postal receipt if item(s) was mailed.) Other Comments: Print Cardholder's Name Cardholder's Signature Page 2 of 2 CITY OF LONGWOOD PURCHASING CARD MISUSE/ABUSE NOTIFICATION FORM Instructions: Email this completed form to the Purchasing Card Program Administrator, to document purchasing card misuse and/or abuse. For additional information regarding allowable and non -allowable Purchasing Card transactions view the City's Purchasing Card Policy - Purchase Limitations/Restrictions, Violations of Purchasing Card and Rebates Discounts, Gift Cards sections. This document may be filled out by the Cardholder or Approving Official. Date of Notification: Type of Infraction (select one from the dropdown) seiectone Last 4-digits of P-card Number: Cardholder El F-1 F-1 F-1 (First and Last Name) The following transaction(s) occurred on the City's P-Card: Merchant 2 Date Amount Policy Infraction As outlined in the Purchasing Card Policy, this type of transaction is not permissible on the City Card. As a result, policy requires this letter of notification be issued. Should three misuse violations occur within a 12 month review period, your purchasing card privileges will be suspended. Abuse violations may result in immediate cancellation of your purchasing card. Per the Purchasing Cardholder Agreement, the Cardholder may be held personally liable for any funds misused with their card. Should you have any questions or concerns regarding this letter, the related transaction(s) listed, or if you are unsure if a purchase is allowed, contact the Purchasing Card Program Administrator at 407-260-3480. comments or r-urtner Action Kequired: By signing below, I acknowledge that I have been duly informed of the findings outlined above and understand the circumstances of this notification. Cardholder First & Last Name Cardholder Signature Department Head First & Last Name Department Head Signature Date Date