Okaloosa County BOCC — May 4, 2013 — Purchasing Manual-6 (post 3-19-13 meeting) — reading text

review shall be maintained in the Certification Binders. (e) The Purchasing Card Administrator shall notify the requesting department and the Finance Department upon issuance of any Purchasing Cards. 2. Lost or Stolen Purchasing Cards Cardholders must notify the Purchasing Card Administrator of any lost or stolen Purchasing Card (see Lost or Stolen Purchasing Card Reporting Form). 3. Termination or Transfer of Cardholder (a) If the cardholder is no longer employed by the County, the cardholder’s supervisor is responsible for returning the Purchasing Card to the Purchasing Department for cancellation. (b) If a department is unable to collect the Purchasing Card when an employee terminates, the Department Director must immediately notify the Purchasing Card Administrator. (c) If a cardholder transfers to a new department, the new Department Director will be responsible for determining if the cardholder will be allowed to remain a cardholder within the new department. If not, the new Department Director shall forward the Purchasing Card to the Purchasing Department for cancellation. 4. Purchasing Card Inventory The Purchasing Card Administrator shall spot check physical inventory of Purchasing Cards and maintain a list of Purchasing Cards issued to all county employees. B. Limitations on Use of Purchasing Cards 1. The Purchasing Card may only be used by the employee whose name is embossed on the card. No other person is authorized to use the Purchasing Card (in person or by phone). 2. The Purchasing Card is to be used for Okaloosa County authorized purchases only. The Purchasing Card shall not be used for any personal transaction. 3. Spending Limitations (a) The maximum limit/transaction for regular cardholders shall be $999.99 for a single purchase and $2,500 for select pre-approved cardholders. (b) Each cardholder will have a monthly dollar limit to be set by the Department Director, which shall not exceed $25,000.00. (Exception: Fleet Dept is limited at $50,000.00). Limit changes must be initiated and authorized by Department Directors through the Purchasing Card 29  Administrator. 4. Payment for purchases shall not be divided to circumvent the single purchase limit. 5. All items purchased over-the-counter must be immediately available. No back ordering is allowed. 6. Cash advances may not be obtained using the Purchasing Card. 7. The Purchasing Card Administrator shall block card use for certain types of goods and services. It shall be the cardholder’s responsibility to become familiar with these limits and restrictions. C. Procedures for Purchases 1. Tax Exempt Number Purchasing Card purchases are exempt from all state and local use tax. The County’s tax-exempt ID number is printed on the face of the Purchasing Card. This number shall be given to all vendors to avoid payment of state and local use tax. The use of the County’s tax-exempt ID number for personal use is strictly prohibited. Any employee who uses the County’s tax-exempt ID number for personal use shall receive disciplinary action which may include, immediate termination of employment. Additionally, F.S. 212.085 states that in addition to being liable for payment of the tax plus a mandatory penalty of 200 percent of the tax, such person shall be liable for fine and punishment as provided by law for a conviction of a felony of the third degree, as provided in s. 775.082, s. 775.083, or s. 775.084, F.S. 2. Over-the-Counter Purchases (a) The cardholder must obtain the customer copy of the charge slip and confirm that all carbons are destroyed. (b) The charge slip shall be retained by the cardholder and attached to the Purchasing Card Expenditure Report form which shall be submitted to the Department Card Administrator monthly. 3. Telephone Orders (a) When placing a telephone order, the cardholder must confirm that the vendor will charge the purchasing card only after shipment is made. (b) Telephone orders must be logged in on the Purchasing Card Expenditure Report at the time the order is placed. 4. The Purchasing Card Expenditure Report shall clearly document the public purpose of the expenditure. 5. Failure to comply with guidelines for filling out the Purchasing Card Expenditure Report will result in loss of Purchasing Card privileges. 6. By the 15th, or the first business day following the 15th should it fall on a weekend or holiday, the Department Coordinator shall forward all Purchasing Card 30  Expenditure Reports and completed “WORKS” Cardholder Approval report to the Finance Department for payment. 7. If invoices are submitted for payment without sufficient time to make a timely payment, the interest, if any, will be charged to the department’s budget. 8. Disputed Charges In the event there are disputed charges or a cardholder has any questions which the Purchasing Card Administrator cannot resolve, a Bank of America Visa Purchasing Dispute Form shall be completed and forwarded to the Purchasing Department immediately. 9. Returns In the event of returns, the cardholder must check the subsequent monthly statements to ensure credit has been received and attach documentation (credit slip) when processing the monthly detail for payment. If a credit slip was not obtained, attach other documentation explaining the return. 10. Review (a) Department Director designated card representatives (“Department Card Administrators”) shall review each individual expenditure report within their department and assign departmental account numbers for billing purposes utilizing the online Bank of America Works Payable System. (b) Department Card Administrators shall review Purchasing Card expenditures to ensure: (1) The goods and services obtained were necessary and appropriate; (2) The purpose for the expenditure is sufficiently documented; (3) The date the goods or services were received is sufficiently documented. (4) An itemized receipt/invoice is provided. (5) The Purchasing Card Expenditure Report is fully executed. (c) Purchasing Card Expenditure Reports of Department Directors shall be reviewed by the County Administrator prior to being forwarded to the Finance Department for approval of payment. The County Administrator’s Purchasing Card Expenditure Report shall be reviewed by the Chairman of the Board. The Board members’ Purchasing Card Expenditure Report shall be reviewed by the Clerk’s Finance Department. D. Disciplinary Action – See Section H for Suspension Guidelines 1. When purchases are found to be unauthorized, the cardholder must provide a credit slip proving the item(s) were returned for credit or the cardholder shall reimburse the County within thirty (30) days by submitting a personal check for the full amount of the purchase. Checks shall be sent to the Finance Department with an explanation and account number. Failure to reimburse the County within the above time period shall be authorization for deduction of the full amount of the purchase from compensation paid by the County. 31  2. Failure to comply with the policies and procedures herein may result in: (a) Revocation of Purchasing Cards from individual cardholders for a time period to be determined by the Purchasing Card Administrator. (b) Disciplinary action, up to and including termination of employment. E. Emergency Use In the event of an emergency, as defined by the Emergency Purchase section of this Manual, the Board may waive the Purchasing Card requirements. Under such circumstances, the following rules shall apply: 1. Approval must be received from the County Administrator. 2. The individual $999.99/$2,500.00 limit per item/purchase is temporarily lifted. 3. The cardholder shall be limited only by their pre-established monthly limit. F. Travel Purchasing Cards may be used for pre-approved travel expenses, which shall include: 1. Hotel/motel reservations and payments. 2. Flight reservations. 3. Flight travel payment. 4. Rental car use. Note: There is no transaction dollar limit on travel. However, all travel expenses/reservations must comply with the County Travel Policy and is are subject to review and disciplinary action. Purchasing Cards may not be used for meals. G. Tourist Development Department (TDD) TDD staff may use Purchasing Cards for purchases of goods and services that are authorized by Florida Statutes and by the Operations and Procedures Manual of the Tourist Development Department for the purpose of tourism promotion. All such purchases will be reviewed by the Department Card Administrator for compliance with all other Purchasing Card policy requirements. NOTE: All travel (to include the above) over $100.00 must be approved by the County Administrator or designee prior to making arrangements. All travel vouchers will be audited to confirm travel was approved prior to purchasing card transaction date. Failure to adhere to pre- approval requirements will result in suspension of card privileges. H. RESTRICTION OF USE (LIMITS OF SUSPENSION) GUIDELINES The following shall be used as a guideline for all cardholders to identify the types of violations and resulting penalties. In addition, disciplinary action may be taken in accordance with guidelines set forth in the Human Resources Policy manual. 32 Note: This is a guideline. Repeat violations by the same cardholder may result in greater restrictions and/or disciplinary action. The Purchasing Director shall have the authority to exempt from penalty, any situation where an employee can show they immediately corrected a mistake or has reasonable documentation proving a diligent effort is being made to correct a mistake made by the vendor or the employee. As used in this section, the term “suspension” shall mean suspension of Purchasing Card privileges. 1. FAILURE TO COMPLY WITH EXPENDITURE REPORT REQUIREMENTS (MISSING ITEMIZED DETAILED