ELWOOD — The Elwood Common Council has unanimously approved a manual that will let city employees use procurement cards (P-Cards) for goods and services.
Clerk-Treasurer Alison Roby said Monday that the cards are a necessity in a climate in which more businesses are unwilling to wait for payment.
“I have fought this and fought this. It’s so much work. But now there are so many vendors who only take credit cards,” she said. “Credit cards are very different than these. This is what cities and towns work with.”
The move comes on the heels of a recent decision to let the clerk-treasurer’s office establish a petty cash fund for small, immediate purchases.
Roby said she recently experienced some difficulty at a training in Michigan City and tried to pay for a hotel room with a paper check. Hotel officials insisted on putting a hold for the amount on her personal credit card until the check cleared several days later.
It’s unfair to employees to encumber their personal funds for city activities, she said.
“We were very fortunate that people paid for these things themselves” and got reimbursed later.
By using procurement cards, Roby said, the city also may receive rebates on certain purchases.
The city already has accounts at places, such as Dollar General, that will invoice purchases, Roby said.
The city also can expect to save money on goods and services by being able to shop around and making purchases on Amazon, where governments receive special pricing, Roby said.
“They said we will save in shipping costs.”
The city will continue to give some preference to local vendors but encourages them to set up accounts on Amazon to remain competitive.
The new P-Card manual includes a code of conduct that prohibits employees from accepting personal gifts from suppliers and from using an approved card for personal purchases.
“All purchases using the P-Card program must be properly documented for business purposes,” the manual said. “Any altered or forged documentation is strictly prohibited.”
The policy also prohibits use of the card for cash advances, wire transfers and money orders, plus maintenance contracts and alcohol.
Follow Rebecca R. Bibbs on Twitter at @RebeccaB_THB, or call 765-640-4883.
