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Crescent City Harbor commissioners on Tuesday will discuss an item raised in the most recent Grand Jury report — staff use of Harbor District credit cards.

Commissioners will consider a new credit card policy that states, among other stipulations, their use is a privilege that commissioners can withdraw at any time “with or without cause.”

A formal response to the Grand Jury report is also on Tuesday’s agenda. The document is being reviewed by the Harbor District’s legal counsel, Assistant Harbormaster Mike Rademaker said.

The Harbor District has 90 days to respond, according to the Grand Jury report.

According to the Harbor District’s staff report, business credit cards with a spending limit of $7,000 have been issued to the harbormaster and to the assistant harbormaster.

The Harbor District’s office manager has received a business credit card with a $5,000 spending limit.

Most of the stipulations listed in the proposed policy are recommendations the Grand Jury outlined in its report, which was released July 22.

This includes requiring staff to keep the cards in a separate sleeve or location to avoid accidentally using the card for personal expenses — a concern that prompted the Grand Jury’s investigation, according to its report. Credit card numbers are also prohibited from being saved in online accounts.

If a personal expense does occur, the employee is responsible for reimbursing the Harbor District.

Under the proposed policy, receipts labeled with the description of the charge and “any additional information, which might be required” are required to be given to the office manager before the monthly credit card billing period closes.

A receipt for a business meal should list those who were present and the purpose of the meeting, while travel receipts should note the purpose of the trip, according to the proposed policy.

If a staff member uses a company credit card for a business-related purchase that’s not within their scope or authorization level, then they must bear the costs unless the purchase was “formally approved.”

The proposed policy also states that inappropriate charges to the company credit card could result in disciplinary action.

Under the proposed policy, staff who are issued company credit cards must sign an acknowledgement of the policy each year. They must also undergo training “during which these policies and procedures will be clearly explained.”

In its report, the Grand Jury stated that it received a formal complaint that there was at least one occasion of a Harbor District staff member using a company credit card for a personal expense in 2021.

To reimburse the Harbor District, they did not claim a travel reimbursement they were entitled to as a way to offset the expense. However, the Grand Jury could’t confirm complete reimbursement.

The Harbor District had drafted a credit card policy in November 2022, however the Board of Commissioners hadn’t discussed or approved it. The Grand Jury urged the Board to approve the credit card policy by Sept. 30, 2024.

The Crescent City Harbor District Board of Commissioners will meet at 2 p.m. Tuesday in the Harbor District Office, 101 Citizens Dock Road in Crescent City. Agenda packets and link to the Zoom meeting is available at www.ccharbor.com.

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