COUNCIL ADOPTS CREDIT CARD POLICY

There were no Council meetings this past week, so I have nothing “hot off the presses” to report.

Of note, however: several weeks ago Council finally adopted a formal policy regarding the use of credit cards.

You can read the whole policy yourself, as it’s posted on the city’s website: https://www.highlandhts.com/DocumentCenter/View/1061/3-2019-Establishing-a-Credit-Card-Account-Policy

I find it interesting that during disgraced former mayor Scott Coleman’s long rein the city apparently hadn’t adopted a formal policy regarding the use of credit cards …..just another reason why a forensic audit of the city’s book is a good idea right now.

I also found disconcerting this explanatory language in the Resolution….which implies that the motivating reason for enacting the new credit card policy was not common sense but because the State of Ohio mandated that Council do it. The resolution begins:

“Whereas House Bill 312 established internal control models for credit card usage by political subdivisions and requires the legislative authority of a political subdivision to adopt a policy regarding such useage….”

The policy gives City Finance Director Joe Filippo sole discretion to decide which credit cards the city should use and the appropriate credit limits for them.

Department supervisors are given authority to decide which of their city employees are issued/allowed to use city credit cards. They must also keep track of/supervise the cards’ use.

 The policy also requires issuance of purchase orders prior to payments being made using city credit cards. 

There was one apparent conflict in the policy that confused me. While the policy categorically states in the beginning that credit cards are to be used:

“…for only approved City related expenses. Personal purchases of any type are strictly prohibited. Cash advances are strictly prohibited.”

It later allows:

“Authorized employees…to use (a city) Gasoline credit card for their personal vehicle.”

The policy leaves it up to those employees to determine, for themselves, that they have the approval of a department supervisor “or City Administrator” to put city-paid gas in their cars.
The term “City Administrator” isn’t defined in the policy, so it’s unclear how broadly or narrowly that authorizing power has been bestowed.

For most of us credit cards are a necessary convenience. So, too, it may be for the city. But, as is often in life:

“Less can be more.”

We can only hope Filippo feels that way too, and that this policy doesn’t open the door to a proliferation of city-paid credit cards being issued. 

My concern is that the greater number of city credit cards being used, the more daunting the task of keeping track that this new policy is being fully and properly complied with.

Given the embezzlement allegations made against our disgraced former mayor, that’s not a concern to be lightly shrugged off.