ROGERS — City officials spend a considerable amount of money every month on items from gasoline to office supplies, and much of that spending is done with a credit card.
A review of credit card statements from June 2012 through June 2013 revealed few surprises. Fire Chief Tom Jenkins had an explanation for charges for a pair of pants at Jos. A. Banks and a Hawaiian shirt.
At A Glance
Rogers Credit Card Policy
The issuance of city credit cards must be approved by the mayor, finance director and Finance Committee. The usage of the city credit card should be limited to travel and training purposes, for approved purchases that cannot be obtained through normal purchasing channels or for emergency situations. Credit cards should not be used for Internet purchases.
Source: Staff Report
At A Glance
Sweet Tooth
The review of the credit card statements revealed just about every Rogers city department buys doughnuts, except the Police Department never charged a doughnut purchase. “That doesn’t mean they don’t eat doughnuts, they just don’t buy them on the credit card,” said Mayor Greg Hines, a former police officer.
Source: Staff Report
“I forgot to bring a pair of black pants to a convention,” Jenkins said. “I couldn’t find my credit card so I charged the pants on the city card and paid the city back when I returned.”
The Hawaiian shirt was a gift for a visiting fire chief who was a guest speaker at a conference in Rogers.
“The guy really likes Hawaiian shirts and wears them all the time, so we gave him one as a gift,” Jenkins said.
During the 12 months reviewed, credit card purchases totaled $88,962 an average of $7,413 a month. Charges peaked at $18,026 during April when more than one department sent people to conferences or to training. Only $1,479 was charged in September, according to the credit card statements.
Craig Noble, the city’s former water utility general manager, charged $15,165 on a credit card in eight months. Charges were made almost daily for food, and there were regular charges for gasoline and rental cars.
The utility operates independently of the city and has its own credit card. Utility commissioners have said there was no written policy for card use.
“We’ve had a credit card policy for several years,” Mayor Greg Hines said of city card use. “The policy outlines what purchases can be made and what the card can’t be used for.”
The policy is, however, outdated, Hines said.
“It doesn’t allow for Internet purchases. We do make Internet purchases, so we’re not following our own policy. We’re working on writing a new policy that better reflects the changes in technology, but it won’t be much different from the one we have now,” Hines said.
Casey Wilhelm, city finance director, agrees the policy needs to be rewritten.
“I’m working on a rewrite of the policy. I hope to have the policy in place later this year,” Wilhelm said.
“We have a good review system in place for credit card use. Only certain people have the cards. Every purchase is approved by a supervisor then reviewed by me or the staff. If we see anything that even looks funny we start asking questions. If it’s an unauthorized purchase we expect to be reimbursed immediately,” Wilhelm said.
The city put $200,000 into a credit card account this year. The payments are automatically withdrawn from that account, Wilhelm said.
The Police Department has a separate credit card. The card is used mostly for hotels and meals for officers attending training sessions, according to the credit card statements. The department charged $25,922 during the reviewed year, an average of $2,160 per month.
Rogers never pays any interest on the accounts because the bill is paid in full each month, according to the statements.
Surrounding cities also have credit card use policies.
“We have a very tight approval and review system,” said Paul Becker, Fayetteville finance director. Many purchases must be approved before the card is used and each charge is reviewed at least three times by different people.
“If there is going to be a charge above $2,500, I personally have to approve of the purchase. We usually use the card for office supplies and travel and keep a tight rein on how the card is used,” Becker said.
Springdale has a coding system in place, which controls card usage, said Wyman Morgan, administration and finance director.
“Our cards are coded so only certain items can be purchased. Some cards have more restrictions than others, and cards can’t be used to buy liquor or other prohibited items, the purchase will be kicked back as unauthorized. We use the cards mostly for gasoline and travel expenses,” Morgan said.
Bentonville shuns the use of credit cards for the most part, said Denise Land, finance director.
“We don’t use credit cards very much. We will use the city card to hold a hotel room, but not pay for the room. We figure the cost of the hotel room, travel and a per diem and give the cash to the person doing the travel. They can put the money in their account and use their own credit card,” Land said. “And, yes, I require them to bring back receipts for there expenses.”
Rogers also has three Fuelman accounts, and a Voyager account for gasoline and diesel purchases for the city fleet.
The Police Department buys about $20,000 in gasoline a month, according to the credit card statements. The Code Enforcement Department buys about $650 in gasoline a month while the Inspection Department purchases about $1,200 per month.
The Fire Department uses the Voyager account and buys about $10,000 in fuel a month, according to the billing statement.