2009-35•
RESOLUTION NO. 2009 - 35
A RESOLUTION ADOPTING A VILLAGE PURCHASING
CARD POLICY
WHEREAS, a responsibility exists to maintain stewardship over the financial resources that are used to
deliver government services, and;
WHEREAS, the adoption of a purchasing card program will create efficiencies in purchasing and reduce
the demand on manual checks and use of petty cash, and;
WHEREAS, the Village needs to ensure proper usage and administration of the program through the
adoption of a Purchasing Card Policy, and;
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS as follows:
1. The Village of Buffalo Grove does hereby adopt the Village of Buffalo Grove Purchasing Card Policy
and attached hereto as Exhibit "A ".
2. The Policy and related Program will become effective as of October 1, 2009.
AYES: 6 — Braiman, Glover, Berman, Trilling, Stone, Sussman
NAYES: 0 - None
ABSENT: 0 - None
PASSED: September 8, 2009 APPROVED: September 8. 2009
ATTEST: APPROVED:
Village Jerk Village President
The employee must sign the Cardholder Agreement for Authori .Zed Use of Purchase Card (attached) that documents
the employee's understanding of the policy and disciplinary measures that are available to the village if the
policy is breached. The card will display the individual's name for increased protection from the card issuer,
but the card issuing bank will not maintain individual cardholder credit records.
Purchase cards will be only be issued to those employees approved by the Village Manager as directed by the
CardholderAddition and Change Request Form (attached).
Each cardholder will be responsible for submitting a Record of Purchase Use Form (attached) that identifies the
purchase, including description and amount, management's coding of the expenditure, and a brief explanation
as to why this purchase could not be made through the accounts payable cycle. All receipts must be attached to
this form. The receipt must list the items purchased. A settlement receipt with just an amount due will not
suffice. If a receipt is not attached a written explanation must accompany the form. This shall be the exception
and not the rule. Any transaction that is questioned will be documented on a Cardholder Statement of Questioned
Transaction (attached).
Each purchase card will have restrictions based on monthly limit thresholds and will have Merchant Credit
Code restrictions to restrict purchases that are obviously not related to village corporate purchasing.
The following employees will receive a purchase card with the following monthly limits,
Village Manager $2,500.00
Deputy Village Manager
Fire Chief
Police Chief
Public Works Director
IT Director
EMA Coordinator
Director of Finance $1,500.00
Director of Engineering
Director of Golf
Director of Human Resources
Deputy Chief — Fire
Deputy Chief — Police
Deputy Building Commissioner
Public Works Superintendent
Golf Course Superintendent
Assistant Finance Director $1,000.00
Operation Manager — Utilities
Fleet Manager
Forestry Supervisor
Water & Sewer Supervisor
Village Planner
Department Cards $ 500.00
Staff is not proposing that the purchasing card be used in lieu of the purchase order system as that system
provides the most transparency and control in purchasing. Some communities attempt to use the purchase card
as a replacement to traditional purchasing in an attempt to generate cash -back rewards. I would recommend a
gradual approach to the use of purchase cards that will allow staff to evaluate the reporting and controls to
ensure policy compliance and if the program is successful (as I am confident it will be) staff can review a shift
in policy to incorporate traditional purchasing on purchase cards.
Staff is recommending a purchase card program offered through First Midwest Bank's Visa One Card. There
will be a nominal fee to start the program (less than $200) with no recurring fees. The bank will be provided
with our policy. As long as we adhere to our adopted policies the Village will not be liable for any fraudulent
activity given that the offending card holder is terminated as stipulated in the policy.
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