Purchasing Card (P-Card) Policy
1. PURPOSE
The purpose of this Purchasing Card (“P-Card”) Policy is to establish procedures and internal controls governing the use of purchasing cards for authorized Houston County expenditures.
Purchasing cards are intended to provide an efficient method for making approved County purchases while maintaining appropriate accountability, documentation, oversight, and protection of public funds.
The use of a County purchasing card is a privilege and not a right. All purchases must serve a legitimate public purpose and comply with applicable federal and state law, Alabama competitive bid requirements, County purchasing procedures, budgetary requirements, and this policy.
2. SCOPE
This policy applies to all Houston County elected officials, department heads, employees, and other authorized individuals who possess, use, approve, reconcile, supervise, or otherwise participate in transactions involving a County purchasing card.
Nothing in this policy shall supersede applicable Alabama law or the lawful authority and responsibilities of an elected official.
3. ADMINISTRATION
The Houston County Commission shall designate the County official or employee responsible for administering the P-Card program (“P-Card Administrator”).
The P-Card Administrator shall be responsible for:
- Maintaining records of cards issued by the County;
- Establishing approved card limits and restrictions;
- Coordinating issuance and cancellation of cards;
- Providing or coordinating cardholder training;
- Reviewing purchasing-card activity for compliance;
- Assisting departments with disputed or fraudulent transactions;
- Suspending cards when necessary to protect County funds; and
- Reporting suspected misuse or material policy violations to appropriate County officials.
4. CARD ISSUANCE AND AUTHORIZATION
No purchasing card shall be issued or used unless authorized in accordance with applicable law and County procedures.
Before receiving authority to use a purchasing card, an employee or official may be required to:
- Complete P-Card training;
- Review this policy;
- Sign a Purchasing Cardholder Agreement acknowledging responsibility for compliance;
- Acknowledge applicable transaction and monthly limits; and
- Agree to return the card immediately upon request, transfer, separation from employment, or termination of purchasing authority.
The County may establish different purchasing limits or merchant restrictions based upon the duties and purchasing needs of a department or cardholder.
5. PUBLIC PURPOSE REQUIREMENT
Every P-Card expenditure must be necessary and reasonable for the operation of Houston County government and must serve a lawful public purpose.
County purchasing cards shall never be used for personal purchases, even when the cardholder intends to reimburse the County.
County funds shall not be used to provide a private benefit except when specifically authorized by law and determined to serve a lawful public purpose.
6. AUTHORIZED PURCHASES
Subject to applicable purchasing requirements, available appropriations, card limits, and departmental approval, purchasing cards may be used for legitimate County expenses such as:
- Office and operating supplies;
- Approved equipment and materials;
- Maintenance and repair supplies;
- Approved registrations and training expenses;
- Authorized travel expenses when permitted by County travel procedures;
- Approved online purchases;
- Emergency purchases when otherwise authorized;
- Other legitimate County expenditures approved under County purchasing procedures.
Use of a P-Card does not eliminate requirements for competitive bidding, quotes, purchase orders, contracts, approvals, or other procurement procedures when those requirements otherwise apply.
A transaction shall not be divided or “split” into multiple purchases for the purpose of avoiding purchasing limits, competitive bidding requirements, approval thresholds, or card transaction limits.
7. PROHIBITED PURCHASES
Unless specifically authorized by law and County policy, purchasing cards shall not be used for:
- Personal purchases of any kind;
- Cash advances or cash withdrawals;
- Gift cards, prepaid cards, or cash equivalents;
- Alcoholic beverages;
- Entertainment or recreational expenses unrelated to an authorized County purpose;
- Personal meals or travel expenses;
- Purchases for family members, friends, private businesses, or other third parties;
- Purchases intended to provide personal gain to an employee or official;
- Purchases from a business when the transaction creates an unlawful conflict of interest;
- Items prohibited by federal, state, or local law;
- Purchases exceeding available budget appropriations or the cardholder's authority;
- Transactions structured to circumvent purchasing or bid requirements; or
- Any expenditure inconsistent with the public purpose of Houston County government.
8. CARD SECURITY
The cardholder is responsible for safeguarding the purchasing card and associated account information.
A cardholder shall not:
- Allow an unauthorized person to use the card;
- Provide card information to another person for an unauthorized purchase;
- Store card information in an unsecured location; or
- Use another employee's card without proper authorization.
Lost or stolen cards must be reported immediately to the card issuer and the P-Card Administrator.
Suspected fraudulent transactions must also be reported immediately.
9. RECEIPTS AND DOCUMENTATION
Every purchasing-card transaction must be supported by sufficient documentation to establish:
- Vendor;
- Date of purchase;
- Items or services purchased;
- Amount paid;
- County business purpose; and
- Any required approval.
An itemized receipt or invoice shall be provided for each transaction.
10. MONTHLY RECONCILIATION
Each cardholder and/or designated department representative shall review and reconcile purchasing-card transactions within the timeframe established by the County.
The reconciliation shall verify that:
- Each transaction is a legitimate County expenditure;
- Required receipts and supporting documents are present;
- Appropriate account codes are used;
- Credits and disputed transactions are properly recorded;
- Purchases comply with applicable purchasing requirements; and
- Required supervisory approvals have been obtained.
Supervisors shall not approve transactions without adequate review.
11. CARDHOLDER RESPONSIBILITY
A cardholder is personally responsible for complying with this policy.
Signing a receipt, transaction log, reconciliation, certification, or cardholder agreement constitutes the cardholder's representation that the purchase was made for an authorized County purpose and is accurately documented.
Employees shall cooperate fully with requests for records, audits, reviews, and investigations relating to purchasing-card transactions.
12. PERSONAL OR UNAUTHORIZED PURCHASES
Personal use of a County purchasing card is strictly prohibited.
An employee who accidentally uses a County purchasing card for a personal transaction shall immediately notify his or her supervisor and the P-Card Administrator and shall reimburse the County promptly in accordance with instructions from the County.
Prompt repayment does not automatically eliminate a policy violation.
Intentional personal use, concealment of a personal purchase, falsification of documentation, or repeated unauthorized use may constitute serious misconduct and may result in termination and referral to appropriate authorities.
13. DISPUTED AND FRAUDULENT TRANSACTIONS
Cardholders shall promptly review purchasing-card activity and report transactions they do not recognize.
The cardholder shall cooperate with the P-Card Administrator, financial institution, vendor, Accounting Department, or other appropriate authorities in resolving disputed or fraudulent transactions.
14. AUDIT AND MONITORING
All P-Card transactions are subject to review and audit.
The County may conduct periodic or unannounced reviews of:
- Transaction records;
- Receipts;
- Merchant activity;
- Purchasing patterns;
- Split transactions;
- Missing documentation;
- Weekend or unusual purchases;
- Credits and refunds; and
- Compliance with purchasing limits and procedures.
There shall be no expectation of privacy regarding transactions conducted using County purchasing cards.
15. DISCIPLINE FOR POLICY VIOLATIONS
Violation of this policy may result in disciplinary action, up to and including termination of employment, subject to the rules and regulations of the Houston County Personnel Board.
Discipline should take into consideration the nature and seriousness of the violation, whether the violation was intentional, the amount involved, prior violations, whether the employee promptly reported the issue, whether the County suffered a financial loss, and other relevant circumstances.
16. RESTITUTION
An employee or official may be required to reimburse Houston County for unauthorized, personal, unsupported, or otherwise improper expenditures to the extent permitted by law.
Reimbursement shall not prevent the County from imposing disciplinary action or referring the matter to appropriate authorities when warranted.
The County shall not make an unlawful deduction from an employee's wages. Any payroll deduction or other collection method shall comply with applicable law.
17. SUPERVISORY RESPONSIBILITY
Supervisors and department heads are responsible for maintaining reasonable oversight of purchasing-card activity within their departments.
Knowingly approving an improper transaction, directing an employee to make an improper purchase, failing to act upon known misuse, or assisting in concealing an improper transaction may constitute a separate violation of this policy and may result in disciplinary action.
18. SEPARATION OR TRANSFER
Upon termination, resignation, retirement, transfer, extended leave when appropriate, or loss of purchasing authority, the cardholder shall immediately surrender the purchasing card as directed by the County.
The P-Card Administrator shall ensure that the card is canceled or access is otherwise terminated when appropriate.
19. RECORD RETENTION
Purchasing-card statements, receipts, reconciliations, approvals, and supporting documentation shall be maintained in accordance with applicable Alabama records-retention requirements and Houston County procedures.
20. COMPLIANCE WITH LAW
This policy shall be interpreted and administered consistently with applicable provisions of the Code of Alabama, the Alabama Ethics Law, Alabama competitive bid and public works requirements when applicable, requirements of the Alabama Department of Examiners of Public Accounts, and other applicable federal, state, and local laws.
If a provision of this policy conflicts with applicable law, the applicable law shall control.
21. NO WAIVER OF OTHER POLICIES
Compliance with this policy does not excuse compliance with any other Houston County policy, including purchasing, travel, personnel, ethics, budget, accounting, and records-retention requirements.
A violation may constitute a violation of more than one County policy.
22. ACKNOWLEDGMENT
Each cardholder shall sign an acknowledgment substantially in the following form:
PURCHASING CARDHOLDER ACKNOWLEDGMENT
I acknowledge that I have received and reviewed the Houston County Commission Purchasing Card Policy. I understand that the purchasing card and associated account are County property and may only be used for authorized County purposes.
I understand that personal use is prohibited and that violations may result in suspension or revocation of purchasing privileges, restitution, disciplinary action up to and including termination of employment, and referral to appropriate authorities when warranted.
I agree to safeguard the purchasing card, maintain required documentation, promptly report lost or stolen cards and questionable transactions, and comply with all applicable County purchasing requirements.
Cardholder Name: __________________________________
Department: _______________________________________
Signature: _________________________________________
Date: _____________________________________________
Department Head/Supervisor: _________________________
Signature: _________________________________________
Date: _____________________________________________