HANNIBAL FREE PUBLIC LIBRARY

PURCHASE (Credit) CARD POLICY

Adopted by the Library Board of Trustees & Effective:  May 13, 2013

Purchase Card shall have the meaning of Credit Card for the purchase of goods or services regardless of name brand where the issuer (typically a bank) will submit a monthly statement and when payment is made timely there is no interest charged nor penalties assessed against the holder, City of Hannibal (City) and/or Hannibal Free Public Library. 

 Purchase Cards shall be approved by the Hannibal Free Public Library Board of Trustees.  City-issued Purchase Cards shall be issued through, controlled by, cancelled, closed or terminated by the Department of Accounts, Records and Payroll (City Clerk) and/or the Finance Department (under the City Manager).  Purchase Cards arranged directly by Hannibal Free Public Library shall be issued through, controlled by, cancelled, closed or terminated by the Library Director or Library Board President.

 Purchase Cards are to be used for purchases of approved items supported by approved budgets costing less than sealed bid limits as established by the Hannibal Free Public Library Board of Trustees Purchase Cards may be used for standard procurement of goods and services or for Blanket Purchases (procurements in which one vendor is chosen periodically via a fair competition among vendors of goods and services; for example, telephone service, conference fees and travel expenses, books, AV equipment, custodial and maintenance equipment, library and building supplies, etc.    

PURPOSE

Purchase Cards allow the Library Director and designated staff to purchase goods and services directly from vendors when those items are needed, but it is not expedient, practical, or desirable to have either a check or cash available when payment is demanded. When traveling to library-related conferences, Library Board members may use the Library’s Purchase Cards.  The individual purchaser may be held liable for the cost of unauthorized purchases in addition to any disciplinary action that may be taken.   

CANCELLATION, CLOSE, OR TERMINATION OF CREDIT

The City’s Finance Office may choose to close the accounts of any issuing City-arranged Credit Card company (all issued cards) based on business necessity not necessarily the cause of any given department (that is, for example, change in terms of credit offered, failure to post payments timely or other business related reasons.).  The Library Director has the same authority for arrangements made directly by the Library.

 The Library Director shall work with the City Clerk to ensure that sound business practices are followed.  For City-arranged Purchase Cards, the City Clerk shall issue written instructions to stop, close or cancel any given employee or employees cards based on sound business principal including but not limited to continued and repeated failure to submit receipts, failure to turn in statements and purchase orders timely, etc.  The City Clerk shall give a reason in the instructions unless such reason may need to be confidential due to personnel, privacy rights, legislation or possible litigation. The Library Director has the same authority for arrangements made directly by the Library. 

NUMBER OF CARDS FOR THE LIBRARY

The Library Director, Assistant Director, and IT Manager will be issued Procurement Cards in their own names.  An additional Procurement Card will be issued for other Library staff or the Library Board to use.  The Library’s Business Associate typically will hold the Library staff Procurement Card and issue it as necessary.  All employees or Library Board members issued a credit card must sign an acknowledgement form recognizing their responsibility to comply with the Library’s policy regarding credit cards.

CREDIT LIMIT

The Library Director’s Procurement Card shall have a credit limit of five thousand dollars ($5,000.00).  Other Library Procurement Cards shall have a credit limit established by the Library Director up to a  credit limit of one thousand dollars ($1,000.00).  The Library Director and the Business Associate shall have the authority to adjust credit lines on all Library Procurement Cards as necessary up to the maximum amount.  

USE

The use of any Library Procurement Card is restricted for acquisition of goods and services which are appropriate for the conduct of the Library’s business.

RESPONSIBILITY

 The Library Director is responsible for supervision of the use of Procurement Cards by employees.  The Library Director is responsible for overseeing charges to ensure they are authorized Library expenditures and adequate monies are available within the Library budget for the expenditures. 

1.      Personal Use Not Permitted  - No personal expenditures are allowed by employees using City credit cards, even if the intent is to repay the City at a future point in time.

2.      Expenditure for Alcohol Not Permitted – No expenditures for alcohol are permitted even when it is consumed with a meal when travelling on Library business and using the Procurement Card to pay for meal expenses.  Any expenditure for alcohol is the employee’s personal responsibility, for which the Library’s Procurement Card may not be used.

3.      Administration – Procurement Card Statements submitted to the Library’s Business Office for payment must include supporting documentation of purchases, such as receipts and invoice which clearly show what goods and services were purchased using the Procurement Card.  Supporting documentation must be submitted as soon as possible after the purchase is made.  The Library’s Voucher Stamp must be included with or on the supporting documentation.  The stamp’s vendor, amount, and account lines must be completed.  The date of submission and employee initials and/or signature must also be included.. 

 4.      Duty and Violation of Policy - It is the duty of the Library Director to control the use of credit to the purpose as outlined in this policy.  Those found to be in violation of the policy may be found to be fraudulent in duty and responsibility.  Violation of the policy may be cause for discipline up to immediate dismissal and reparation of funds found to have been spent for other than Library business and within the various ordinances of the City of Hannibal and policies of Hannibal Free Public Library..

USING THE CARD

 The card is an easy way to make small dollar purchases, internet purchases, travel expense purchases and new vendor purchases where the City and/or the Library has not yet established a credit limit with the vendor.  It does not avoid or change any of the normal guidelines for good purchasing practice in accordance with rules, regulations, policies and procedures of Hannibal Free Public Library   Use it just as one would a personal credit card, except that this card is exclusively for Library purchases.  All charges made will be paid by the City of Hannibal and charged to the specified Library account In the process of utilizing the card one should:

ü       Be certain your purchase has been authorized by the Library Director or Library Board President;

ü       Identify yourself as a Hannibal Free Public Library employee; 

ü       Ask about governmental discounts;

ü       Give the Library’s Missouri sales tax exempt number the City’s for Illinois).   Copies of the letters from each state may be obtained the Library’s Business Office.  If you are charged tax, contact merchant for credit;

ü       Give accurate and complete shipping instructions;

ü       Keep the paper record. Packing slips, cash register receipts, sales receipts, and/or any other proofs of purchase are the only paper record of the specific purchase. If you fail to keep records, your card may be revoked;

ü       If you lose the receipt, call the vendor for a copy (vendors are required to supply you with a receipt).

The IRS still requires that a signed W-9 be on file for any vendor who receives more than $599.99 in any calendar year from the City.

COMPLEX CONTRACTS AND MAJOR PURCHASES

 Do not use the Purchase Card for complex contracts including contracts for long term capital purchases (items with a large price and a useful life greater than 24 months, major equipment, professional services, consultants, independent contractors, research, feasibility studies, and any other area where the terms and conditions of an agreement are other than standard commercial terms and conditions.