Collection: Help Center

The City of Santa Monica Purchasing Card Program is administered through Wells Fargo Commercial Credit Card Services and the instrument used for this program is a VISA Purchasing Card. The purpose of the City Purchasing Card Program is to establish an efficient, cost-effective method of making payments for non-routine small dollar transactions which include supplies, materials, equipment, books, subscriptions, seminars, travel, etc, (excluding services), registration fees, and travel-related expenses. A credit card purchase will not replace the normal purchasing procedures, but will instead be used when it is not advantageous or cost effective to issue a purchase order. Purchasing Guidelines and City policies, procedures and applicable Administrative Instruction will apply where applicable. The Purchasing Card shall not be used for the purchase of services.

A credit card issued to an individual employee of the City of Santa Monica for the purpose of making authorized purchases on its behalf. The City is responsible for paying approved charges made with City-issued Purchasing Cards. The City also accepts liability for employees’ use of the cards.

All contact with Wells Fargo for Purchasing Card set up, maintenance and closure (except for reporting lost or stolen cards) will be handled by the Purchasing Card Manager, located in the City of Santa Monica Purchasing Section.

1. Complete the appropriate Purchasing Card application (individual or division) which is available on the intranet at: Finance/Procurement/P-Card

2. Submit it to your Division Manager and Department Director for completion and approval.
• Division Managers and Department Director are responsible for establishing monthly transaction limits and assigning Division Liaisons to the card and Cardholder as well as assigning the default account number for which transactions on the new card should be charged against.
• Department Director and Division Manager signature approvals delegate transaction authority of the Cardholder.

3. Send the approved application to the Purchasing Card Manager.

4. The new card request is submitted to Wells Fargo after review of the application by the Purchasing Card Manager.

5. The Purchasing Card is activated by the Purchasing Card Manager upon receipt of the Purchasing Card from Wells Fargo.

6. The newly activated card and Purchasing Cardholder Agreement are put interoffice to the assigned liaison.

7. The new cardholder must sign and return the Purchasing Cardholder Agreement to the Purchasing Card Manager. Failure to do so will result in temporary suspension of the card. This agreement indicates that the Cardholder understands the intent of the program and agrees to adhere to the established guidelines, policies and procedures.

The billing address associated with all Purchasing Cards is:
1717 4th Street, Ste. #250, Santa Monica, CA 90401 and MUST be used as the billing address for all transactions. Transactions made with the Purchasing Card using another billing address may be declined.

The City of Santa Monica credit limit for each Purchasing Card issued is set at $5,000 or less per transaction with a maximum card limit per month, as determined by the Division Manager and approved by the Department Director. The City, through the Purchasing Section, will adjust limits as determined by the Division Manager and approved by the Department Director.

All prohibited transactions and activities will be documented on the Purchasing Card Violation Notification form (Attachment 4) and certain activities may result in suspension or immediate revocation of the card. Purchases that circumvent the City’s Purchasing Guidelines the purchase limit, policies and procedures.
Prohibited card transactions include but are not limited to the items below:
1. Failing to provide the assigned Division Liaison with required itemized receipts
2. Failing to provide, when requested, information about any specific purchase
3. Routine purchases that should be paid against a blanket purchase order
4. Purchase of IT or telecommunication equipment or related items without ISD authorization
5. Purchase of printing services without prior approval by the Print Shop
6. Splitting a purchase to intentionally circumvent the limitations of the Purchasing Card
7. Using another Cardholder’s card to circumvent the purchase limit assigned to either the Cardholder and/or the Purchasing Card
8. Purchase of services
9. Purchase of alcoholic beverages or any substance or material that violates policies, laws etc.
10. Allowing the card or card number to be used by another individual
11. Personal or unauthorized purchases (non-city business and not reimbursed by employee)
12. Withdrawing cash, traveler checks, or money orders
13. Accepting cash in lieu of a credit against the Purchasing Card account
14. Card use/employee fraud

Should the monthly credit limit on the card need to be increased, please contact the Purchasing Card Manager.

• Two types of credit limit increases may be requested:
a. Temporary (until the end of the billing cycle, which is at the end of each month).

b. Permanent

The Finance Department will assign a Purchasing Card Manager who will be responsible for the overall operation of the Purchasing Card program. Responsibilities include but are not limited to:

A. Maintaining a master list of all Division Liaisons, Cards and Cardholders.

B. Serving as the primary liaison between the City of Santa Monica and Wells Fargo Commercial Credit Card Services.

C. Utilizing Wells Fargo Commercial Credit Card Services to update the City’s information.

D. Reviewing Department Director and Division Manager pre-approved applications for completeness of required information.

E. Designing all forms and other documents used for the Purchasing Card Program and obtaining appropriate approvals as necessary.

F. Submitting completed applications to Wells Fargo Commercial Credit Card Services to request new Purchasing Cards.

G. Activating new Purchasing Cards as required.

H. Assisting Cardholders, Division Liaisons, vendors and others when necessary.

I. Training Division Liaisons and Cardholders before releasing Purchasing Cards.

J. Ensuring that the Cardholder signs the Purchasing Cardholder Agreement (Attachment 3) which indicates that the City employee understands the intent of the program and agrees to adhere to the established guidelines, policies and procedures.

K. Handling disputed charges/discrepancies not resolved by Cardholder and/or Division Liaison.

L. Initiating change of default account numbers upon request of Division Liaisons as approved by their Division Manager.

M. Securing canceled Purchasing Cards and updating information with Wells Fargo Commercial Credit Card Services.

N. Ensuring that lost/stolen cards have been blocked by Wells Fargo Commercial Credit Card Services.

O. Assisting the Division Liaison and/or Cardholders with erroneous declines and emergency transactions.

P. Notifying Purchasing Agent and appropriate line of management of Cardholder violations or fraudulent card use.

Q. Assisting Cardholders with erroneous declines and emergency transactions.

R. Maintaining the following documents:

• Properly signed application forms.
• Written documentation of any changes to the information that was previously submitted on the original application (change of default account number, credit limit, etc.).
• Signed Purchasing Cardholder Agreement.
• Copies of forms submitted to Wells Fargo Commercial Credit Card Services.

The Finance Department will assign a Purchasing Card Administrator who will be responsible for the reconciliation of purchase card transactions and for submitting monthly transaction reports to Financial Reporting. Responsibilities include but are not limited to:

A. Assisting Cardholders, Division Liaisons, vendors and others when necessary.

B. Working with Wells Fargo Commercial Credit Card Services to resolve any erroneous charges to the City.

C. Distributing monthly reports to Divisions and notifying Division Liaisons of the deadline for approvals and default account code changes.

D. Reviewing all transactions to ensure that sales tax is properly accrued.

E. Reviewing usage of Purchasing Card data for appropriateness.

F. Processing electronic upload of monthly statements to Financial Reporting.

G. Preparing the monthly statement for payment and submitting it to Financial Reporting for ACH payment.

H. Reconciling the Wells Fargo Commercial Credit Card Services statement and the Wells Fargo electronic file with the transaction totals posted to the City’s accounting system.

I. Notifying Purchasing Agent and appropriate line of management of Cardholder violations or fraudulent card use.

J. Make periodic audits of card use and charges for appropriateness through the use of the online reporting system. Non-use of card by cardholders will also be monitored.

K. Maintaining the following documents:

• Statements issued by Wells Fargo Commercial Credit Card Services.
• Purchase Card Program Division Liaison Affirmation of monthly charges.
• Original receipts/documentation of Purchasing Card purchases.
• Written documentation of explanations for missing receipts, charges requiring additional information, etc.

The Cardholder must immediately report the lost/stolen card to Wells Fargo Bank Business Purchasing Service Center at 1.800.932.0036. Cardholder must also immediately notify the Division Liaison and Purchasing Card Manager. The Purchasing Card Manager will follow up with Wells Fargo to ensure that the account has been closed.