CR 05-056 Credit Cards for Employees
CITY OF
m
1i0PKINS
April 26, 2005
City Council Report 2005-056
Approving the Use of Credit Cards by City Employees
Proposed Action
Staff recommends adoption of the following: Move to adopt Resolution No, 2005-042 approving the
issuance and use of credit cards by city employees.
Overview
Credit cards have been in use by Hopkins city employees for many years. This has been an
effective way to manage purchases and travel arrangements by employees conducting business
on behalf of the city. Through our annual audit process it has come to our attention that the city
council has not formally approved the use of credit cards by city employees as is required by
Minnesota Statutes 471.382.
To safegurad city assets, the Finance Director manages the issuance ofthe cards, determines an
appropriate credit limit, maintains control of cards issued and manages their status. In addition, a
master credit card bill is received and reviewed by the Finance Director prior to payment. All
charges are segregated by employee incurring the charge. Any charges in question are addressed
prior to payment of the credit card invoice. Employees incurring charges are resonsbile for
coding the purchase and delivering the charge slip to finance for attachment to the invoice.
Charges are not paid unless charge slips are on file.
Primary Issues to Consider
. Compliance with MN Statutes
Staff Recommendation
Staff recommends approval of Resolution 2005-042 approving the issuance and use of credit cards by city
employees.
Supportine: Information
. MN Statutes 471.382
. Resolution 2005-042
~~
Christine M. Harkess, CPA, CGFM
Finance Director
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2005-042
RESOLUTION APPROVING THE ISSUANCE AND USE
OF CREDIT CARDS BY CITY DEPARTMENTS
BE IT RESOLVED, the City Council of the City of Hopkins, Minnesota as follows:
1. That pursusnt to Minnesota Statutes 471.382 the City Council hereby authorizes the
use of credit cards by city employees to make purchases on behalf of the city,
2, That approval of the application for a business credit card for city employees dated
February 5, 2005 herby be ratified.
3, That the Director of Finance be authorized to obtain from our financial institution
credit cards for employees of the city as deemed necessary.
4. That the Director of Finance is also authorized to set credit limits for each card issued
to city employees as appropriate for their department based on travel and purchasing
needs and will develop a system of intemal controls to track the issuance and status of
the cards issued.
Adopted by the City Council of the City of Hopkins, Minnesota, this 3rd day of May, 2005,
Eugene], Maxwell, Mayor
ATTEST:
Terry Obennaier, City Clerk
Minnesota Statutes 2004, 471.382
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Minnesota Statutes 2004, 471.382
Copyright 2004 by the Office of Revisor of Statutes, State of Minnesota,
Minnesota Statutes 2004, Table of Chapters
Table of contents for Chapter 471
471.382 Credit cards.
A city councilor town board may authorize the use of a
credit card by any city or town officer or employee otherwise
authorized to make a purchase on behalf of the city or town. If
a city or town officer or employee makes or directs a purchase
by credit card that is not approved by the city councilor town
board, the officer or employee is personally liable for the
amount of the purchase. A purchase by credit card must
otherwise comply with all statutes, rules, or city or town
policy applicable to city or town purchases.
HIST: 2001 c 13 s 3
Please direct all comments concerning issues or legislation
to your House Member or State Senator.
For Legislative Staff or for directions to the Capitol, visit the Contact Us page,
General questions or comments,
http://www.revisor.leg.state.mn.us/bin/getpub.php?pubtype=ST AT_CHAP _ SEC&year=current&s.,. 4/26/2005