Title
Approval of Great Lakes Water Authority Procurement Card Policy
Body
Agenda of: August 8, 2018
Item No.: 2018-868
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 25, 2018
RE: Approval of Great Lakes Water Authority Procurement Card Policy
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, The Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the Procurement Card Policy as presented; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Great Lakes Water Authority Procurement Card Program has been established to provide an efficient and cost-effective method of paying for business related goods and services. A procurement card (PCard) may be used with any merchant that accepts credit cards. This program is designed to serve as an alternative to the use of petty cash or instances where a purchase order, just-in-time procedures, or other formal procurement methods cannot be used. It is not intended to be a mechanism to avoid or by-pass the Great Lakes Water Authority (GLWA) Procurement Policy.
JUSTIFICATION
GLWA established its own PCard program with Comerica Bank at the time of the stand-up of GLWA on January 1, 2016. The program that was established was carried forward from the predecessor Detroit Water & Sewerage Depart (DWSD) PCard program. The program and policy have now been revised and updated to meet GLWA’s business requirements. The Chief Financial Officer/Treasurer has delegated authority to the Treasury Manager to be the Program Administrator and oversee compliance with this policy. The Program Administrator is responsible for managing the program including PCard issuance, reporting, and monitoring usage. All PCards issued to employees must be approved by an Area Chief. All transactions are reviewed for supporting documentation and monthly/quarterly reporting is provided to the Chief Financial Officer/Treasurer and Area Chiefs.
Local government units are required to adopt a credit card use policy in accordance with State of Michigan Public Act 266 of 1995, Credit Card Transactions to authorize and regulate use of a company sponsored credit card. The governing body of the local government unit must adopt by resolution this written policy. The GLWA Board is being asked to accept this policy to close an open item from the stand-up of the Authority.
The following documents are attached:
• Resolution for Procurement Card Policy & Procedures
• PCard Policy Comparison to Credit Card Transactions Act 266
• Procurement Card Policy
• Procurement Card Procedure
COMMITTEE REVIEW
This item was reviewed by the Audit Committee at its meeting on June 15, 2018. The Audit Committee unanimously recommended that the GLWA Board adopt the Procurement Card Policy.