County Gov Credit Card Reform Passed

You may have heard Ohio has opened the floodgates for credit cards to be used by government employees, well I’d like to set the record straight. The county government Credit Card Reform measures passed in the Ohio State Budget are good for local governments and even better for taxpayers.

There was a time when County business could be conducted without the use of credit cards.  Clearly, those days are gone.  Over the last 18 months an ad hoc committee was formed to address the evolving needs of the counties and their boards.  Representatives of the County Auditors, County Commissioners, Children’s Services, Jobs and Family Services, and Auditor of State worked out the provisions on credit cards which ultimately was passed in the budget.

Social services providers encounter issues that require immediate financial resolution.  These may include shelter, food, supplies and other basic needs.  In more routine situations, employees should not be expected to front the material costs of county business. In fact, the current way of employees using credit cards to be reimbursed later is more likely to lead to fraud, waste, and abuse than with this reform language. One example is that charges to personal credit cards must pay sales taxes, county cards do not.   

Credit cards now are just another form of payment, like checks.  Therefore, credit card purchases should be processed just like any voucher for the county. County Commissioners set the policy for credit cards and decide what department or person is issued one.  The purchase must be appropriated, budgeted and approved.  All purchases must be work-related and for a public purpose. Departments submit timely support for purchases, which is reviewed by the County Auditor’s office.  County Commissioners ultimately approve payment for submitted expenses which conform to all requirements.  This process is not unusual, many County Auditors process hundreds of vouchers each week.

The new reform language places clear restrictions on uses and abuses of credit cards. Adding clawbacks from employees who misuse the payments and more checks and balances by County Auditors to ensure compliance.  It is anticipated that credit card issuance will be the exception, only provided when a real need is demonstrated.  There will be controls on who receives them, and how they are used.

This reform is good policy, approved by many financial professionals, and will lead to better safeguards of the people’s tax dollars.

David Thomas

Ashtabula County Auditor

You can read the actual language here passed in HB 33, the Ohio Budget and signed by the Governor.