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Posted by Maureen Halvey, Avon, February 23, 2010:   Would anyone be willing to share their experience with credit cards for town purchases; cautions, internal controls, warrant issues,etc.?  Any input would be well appreciated.  Thank you in advance!

Responses:

Maureen, the town of Stoneham has credit cards issued to the three selectpersons, and one each to the town clerk and treasurer.  All 5 are kept in the safe until they need to be used.  Given the size of the town the cards rarely leave the office since it is usually just the town clerk and treasurer making purchases.  With purchases under $500 we do not need selectpersons approval.  Our annual town warrant gives each budget line item a certain amount that can be spent so we have no issues during the year regarding credit card purchases unless we go over the approved amount.  Good luck.  (Midge Silveo, Stoneham)

We have two Visa cards, one for me to purchase for the Town and one for the Rescue Chief to purchase for Fire and Rescue (her husband is Fire Chief).  They are able to make independent decisions with regard to purchases within their approved budgets, but must submit receipts promptly to the bookkeeper, who then matches them with the credit card statements when they arrive.  The same is true for any purchases on my end.  We don't have a dollar limit per transaction, because the cards are used for major purchases frequently and often for online orders—e.g. Computer, fire and rescue supplies and equipment, course registrations, etc.  They do have a maximum $ limit, of course, and I am the administrator and can review the transactions online, request changes, and could put a hold on a card if it became necessary.  When the credit card statement is processed by the bookkeeper, the receipts are matched to the transactions on the statement and allocated to their proper account.  The Selectmen review the warrant with the itemized distribution and bills attached when the credit card bill is paid.  We've had no abuses, and I am set up to monitor both statements online.  In fact, while we have individual cards, we have it set up to receive only one statement with the purchases from both cards combined—we had problems with the credit card company applying the payments correctly when we sent one check for both bills even though the slips from both accounts were in the same envelope.  I also try to remember to download the online statement as soon as it is posted, because the turn-around time is so short after we get them in the mail, and we only do warrants 1x/wk.  It gives me several additional days and avoids late fees.  Personal charges are not allowed, for obvious reasons.  Giving the Rescue Chief a card has saved us cutting her frequent reimbursement checks through Accounts Payable, and we pay less sales tax that way, as well. (Kathy Hoey, Searsmont)

Town of Madison has cards with Walmart and Hannaford. We sign out the card to the individual employee who is making the purchase for their department and the card is returned each time. The sales slip is turned in with the PO log each week and matched to the monthly bill when it comes in. We have been billed interest as the timing of the warrants do not always meet the billing due date from the card company. We do not have a Visa or Mastercard. (Triss Smith, Madison)