New Government Credit Card Policies
Last August Governor John Kasich signed legislation requiring all forms of local government * to establish and implement internal control practices to safeguard against credit card abuse. This law is in response to the lack of policies regarding credit card use by public employees and officials.
The law requires all government entities that currently use credit cards to develop policies within three months of the its effective date, November 2, 2018, that will:
- Clearly identify officers and staff members who are authorized to use credit cards
- Define expenses for which credit cards may be used
- Establish procedures for issuing credit cards and reporting lost or stolen cards
- Determine actions or omissions that qualify as misuse
- Set maximum credit limits
- Institute procedures for collecting itemized receipts.
The name of the public entity must appear on all credit cards even if the employee name is listed.
This legislation also commands government entities not currently using credit cards to create a policy before beginning to use them. Public entities are prohibited from using debit cards, with one exception, if the debit card is necessary for law enforcement purposes.
If the public entity’s fiscal officer doesn’t retain possession and control of the credit card accounts, the legislative authority will appoint a compliance officer. The compliance officer cannot use a credit card account and cannot authorize an employee to use a credit card account. The fiscal officer may not be appointed as the compliance officer.
Finally, any public entity using credit cards is required to file an annual report with the Auditor of the State detailing any and all rewards received for credit card use. The rewards are the property of the entity, not the individual using the card.
At Ciuni & Panichi, we have been helping government and other public entities stay abreast and in compliance of regulations and laws for 45 years. We have experience working with a wide range of government and other public entities. We’ve developed the extensive expertise necessary to help protect the trust constitutes have in the entity and its reputation. To learn more, contact Stephanie Pogacnik, CPA, CFE, Ciuni & Panichi, Inc. Senior Accountant at 216-831-7171 or by email here.
*The law applies to: Township Trustees; Board of Park Commissioners of a Township Park District; Legislative Authority of Municipal Corporations; Board of Supervisors of Soil & Water Conservation Districts; Board of Park Commissioners; Board of Directors of a County Agricultural Society or an Independent Agricultural Society; Board of Education of any School District; Governing Authority of an Educational Service Center; Governing Authority of an Information Technology Center; Governing Authority of a Community School and Governing Authority of a STEM School; Governing Authority of a College‐Preparatory Boarding School; Board of Library Trustees; and Board of Trustees of a Regional Water & Sewer District.