Credit Card Policy

I.  INTRODUCTION

The Town of Fremont recognizes the need for a Town credit card to be used in emergency or pre-approved circumstances only.  As such, the Town has obtained a credit card in the name of the Town of Fremont, and the Chair of the Board of Selectmen.

II. PURPOSE

To establish those procedures under which the Board of Selectmen will control the use of the Town’s Credit Card assigned to the Board of Selectmen, and utilized by Town Department Heads for purchasing on an emergency basis when no other form of Town purchasing is available.  

These procedures are intended to ensure appropriate internal controls are established within each Department for the tracking of these emergent purchases, and that there is no unnecessary use of the credit card.

III.  POLICY

A Citizen’s Bank credit card will be issued in the name of the Town of Fremont and the Chair of the Board of Selectmen.  Said card will be secured at the Selectmen’s Office in the Fremont Town Hall.  Use of the credit card shall be with prior approval by the Board of Selectmen; or in the case of an emergent use, with approval of the Chair or another member, if the Chair is unavailable.  Said contact shall be documented with each use of the card.  In any use, the purchase shall be reviewed by the Board at their next regularly scheduled meeting.  

IV.  PROCEDURE

The Selectmen and Department Head (if applicable) shall review the monthly statement and transmittal form, submitted with receipts, prior to the end of the payment cycle.  Review procedures include the following:

•       Ensure that all purchases are an appropriate budgetary use of Town funds.

•       Confirm receipts and written explanations, where receipts are not available.

•       Review the attached receipts for completeness.  The receipts and written explanations must              provide detailed evidence of date, time, purchaser, and amount of purchase.

•       Sign any written explanations of "Lost Receipts".

•       Ensure that the credit card is not used to make personal purchases.

Contact the Town Administrator immediately if the Credit Card is lost or stolen.

Use of the Credit Card for personal purchases is strictly prohibited.

V.  DOCUMENTATION, RECONCILIATION, AND PAYMENT PROCEDURES

It is important to the success of the Credit Card Policy that Card users adhere to the following procedures.  Failure to keep adequate receipts or frequent abuse of these provisions may result in revocation of Credit Card user's privileges and other disciplinary action, including Termination of Employment.

All Authorized Users shall receive a copy of this Policy and shall sign and return the attached Administrative Regulation Agreement to Accept Town of Fremont Credit Card Privilege.

1.  Documentation - Any time a purchase is made using the Town Credit Card, the user is to obtain a customer copy of the charge slip, which will become the accountable document.  All carbons, if any, should be destroyed.  The invoice slips should be submitted to the Selectmen’s Office immediately, for comparison to the monthly statement to ensure timely payments.

2.  Missing Documentation - If the Credit Card user does not have a receipt or documentation to submit with the statement, a reconciliation statement that includes a description of the item, date of purchase, merchant's name, and an explanation for the missing support documents must be submitted. Frequent instances of missing documentation will cause a Credit Card user's privilege to be revoked.

3.  Payment & Invoice Procedures - Purchases made by employees will be paid by the Town once the Cardholder certification and approving official verification has been completed.  All Credit Card statements will be received by the Board of Selectmen’s Office for reconciliation; copies of statements will be provided at such time as the Statement is received by the billing office.  Any missing invoice or purchasing record will need to follow instructions on line 2 above (Missing Documentation).  It is the Card User's responsibility to submit the documentation in a timely manner.  If the documentation is not submitted in a timely manner; the Department who is using the Card will be responsible for interest or late charges added for that item purchased from their Department's expense lines.

VI.  APPROVAL

The designated approving official for each Department, will review each transaction on the statement.  At a minimum, the items, vendor and account number will be reviewed to determine if the purchase was made for Official Town Use and in accordance with these Policies and Procedures.

If for any reason the designated approving official questions the purchases, it is their responsibility to resolve the issue with the Credit Card user.  If it cannot be determined that the purchase was necessary, for Official Town Use, and in accordance with policies and procedures, the Department Head will notify the Board of Selectmen to determine what disciplinary action will be taken.

Any abuse of the Credit Card could result in termination of employment. 

VI.  AUDITS

Random audits will be conducted for Credit Card activity and receipt retention as well as statement review by the Office of the Board of Selectmen. The Town’s independent auditing firm also reviews the detailed activity annually.

VII.  AUTHORITY

This Policy is adopted by the Board of Selectmen in accordance with RSA 31:39.

VIII.  AMENDMENTS

This Policy may, from time to time, be amended by a majority vote of the Board of Selectmen at a regularly schedule Board meeting.  The Policy will be reviewed by the Board of Selectmen annually.

IX.  EFFECTIVE DATE

This Policy shall be effective upon a vote of the Board of Selectmen and shall replace any and all Credit Card Policy previously enacted by the Town.  It is noted that this policy is separate and distinct from the Town of Fremont Credit Card / Fuel Key Purchasing Policy.

Effective:  05 July 2012 as a first read

               19 July 2012 accepted as final

Adopted:  Board of Selectmen:  Annmarie Scribner, Chair

                                                Brett A Hunter

                                               Greta St Germain

Revised and readopted:  27 February 2014

        Board of Selectmen:  Brett A Hunter, Leon Holmes Sr, Gene Cordes

Updated:  “or pre-approved” added to first sentence  under Introduction

Reviewed and readopted:  19 February 2015

        Board of Selectmen:  Brett A Hunter, Leon Holmes Sr, Gene Cordes