The Hollister City Council last night discussed overhauling the
city’s standing procedure for approving purchases on the
city-issued credit cards nearly every city employee has after
council members raised questions several months ago over whether
employee spending could be curtailed with better supervision.
Hollister – The Hollister City Council last night discussed overhauling the city’s standing procedure for approving purchases on the city-issued credit cards nearly every city employee has after council members raised questions several months ago over whether employee spending could be curtailed with better supervision.
Council members such as Robert Scattini and Mayor Pauline Valdivia say they want to see a system in place where only department heads would be issued Calcards – credit cards issued by a state-run bank that are traditionally used only for government agencies – and employees would have to get approval of purchases before being able to check the card out like a library book. Department heads would be required to make “fiscally prudent” decisions, as to whether or not to approve the purchases, according to City Finance Manager Robert Galvan. Essentially, this means they’d have to be more strict with approvals than they may have been in the past.
“I want accountability for every penny spent,” said Scattini. “If someone says they need to go out and get a screw driver for 20 cents, I want their supervisor to authorize it. I want to make sure we absolutely need that screwdriver now and not next year when we’re maybe not so much in the hole.”
Scattini said he hasn’t seen any huge numbers as far as potentially inappropriate spending in the three years since he’s been on the council, although he did remember seeing purchases made at Starbucks on Calcard statements.
The city’s current policy for issuance and use of Calcards allows department heads to give city credit cards to “virtually any employee” at the department head’s own discretion. The city currently has around 139 employees, and it’s safe to assume that most of them have Calcards, according to Galvan. The cards are used in lieu of petty cash in order to simplify and document employee spending, according to a city staff report. Most often, Calcards are used to purchase tools or other equipment for the Fire and Police Departments or the Public Works Department.
But some council members are worried the current system may be opening the door for spending to get out-of-hand.
“It’s all about control, and of course we have to be careful with every penny,” said Mayor Pauline Valdivia before last night’s meeting.
Under the existing Calcard system, department heads give Calcards to their employees, and then set a credit limit for each card. These limits start at around $2500 per department, Galvan said, although they can go much higher depending on the department. For example, Public Works Department employees might receive higher credit limits in case they need to spend money on supplies or labor after natural disasters or local emergencies.
After a department head approves a purchase and the expenditure is made, employees submit invoices and receipts that Galvan checks against the credit card bills at the end of the month.
The Free Lance has submitted a public records request for employee spending over the last six months.
The council had not discussed the Calcard system overhaul by press time last night.
Jessica Quandt covers politics for the Free Lance. Reach her at 831-637-5566 ext. 330 or at [email protected].
