(A) Purchases from $.01 to $25. For purchases from $.01 to $25 the petty cash fund maintained in the City Clerk's office should be used whenever possible and in no event shall purchases be made on behalf of the city by city employees using their own funds and applying to the city for reimbursement. For all these purchases, the Petty Cash Transaction Report form, shall be used according to the following procedure:
(1) Part I of the form shall be filled out and signed by the department head.
(2) The form shall be presented to the City Clerk by the employee who will be making the purchase. The City Clerk shall issue sufficient cash to the employee to purchase the items described in Part I of the form. The City Clerk shall fill in the amount of cash issued to the employee on Part II of the form, and the employee shall sign Part II of the form. The City Clerk shall retain the original of the form and give the carbon copy to the employee.
(3) The employee shall proceed to make the purchase on behalf of the city and shall return to the City Clerk a receipt from the vendor for the items so purchased, together with any excess cash. The City Clerk shall fill out Part III of the form to balance the transaction. The City Clerk shall attach the vendor's receipt to the original of the form and file it by date. The carbon copy of the form shall be returned by the employee to the department head.
(4) For purchases of $.01 to $25 in cases of emergency the City Clerk shall establish charge accounts with various local stores. Each department head shall submit to the City Clerk a list of the stores from which it is anticipated emergency purchases may be made by the department. The City Clerk shall maintain a list of the stores at which the charge accounts are maintained. When emergency purchases are so made the department head shall initial the purchase receipt and forward it to the City Clerk who shall file it. The City Clerk is authorized to pay for all charges for which a properly initialed purchase receipt has been filed. Where it is impractical to use the petty cash fund, or the emergency small purchase procedure does not apply, purchases from $.01 to $25 shall be made in accordance with (B) below.
(B) Purchases from $25.01 to $5,000. Purchases from $25.01 to $5,000 require use of the Purchase Requisition form and the Purchase Order form according to the following procedure:
(1) Preparation of Purchase Requisition. The Purchase Requisition form should be prepared in triplicate by requesting department personnel completely describing the items, services, materials, or equipment required. The completed Purchase Requisition should then be forwarded to the appropriate department head for review. The department head should review the Purchase Requisition for justification, conformance to the budget, and proper preparation. If found satisfactory, the department head should sign the form, indicating his approval, and forward it for additional issuance authorization as necessary. After proper authorization, the department head should forward the original and copy one to the City Clerk and retain copy two.
(2) Issuance authorization.
(a) All Purchase Requisitions in amounts from $25.01 to $100 may be issued with the approval of the appropriate department head.
(b) All Purchase Requisitions in amounts from $100.01 to $500 applicable to budgeted items shall be issued with the approval of the department head. Each requisition shall be presented to the appropriate committee for review and information at the next regular meeting of the committee following the issuance of the Requisition. All Purchase Requisitions in amounts from $100.01 to $500 applicable to non-budgeted items shall be issued with the approval of the department head, the appropriate committee and the City Council. However, in the case of an emergency the requisition may be approved by the Mayor instead of the City Council.
(c) All Purchase Requisitions in amounts from $500.01 to $5,000 shall be issued with the approval of the department head, the appropriate committee, and the City Council.
(3) Selection of vendor. Vendors should be selected by informal solicitations (via telephone or by requesting written quotations), by contacting vendors who have previously supplied like items to the city, or by contacting those who are known to be capable of supplying these items, in order to, as far as practicable, obtain the best price for items to be purchased.
(4) Preparation of purchase order. The original and copy one of the completed and approved Purchase Requisition should be forwarded to the City Clerk. The City Clerk should review the Purchase Requisition and, if it is properly completed and authorized, the Clerk should prepare a purchase order. The completed purchase order should be distributed by the City Clerk as follows:
(a) The original should be sent to the vendor.
(b) Copy one should be retained by the City Clerk and, together with copy one of the Purchase Requisition, it should be filed in a pending file alphabetically by the name of the vendor.
(c) Copy two should be filed in numerical order by the City Clerk.
(d) Copy three should be returned to the requesting department for use as a receiving report.
(5) Receiving procedure.
(a) When material ordered is received, it should be counted and inspected by the appropriate department personnel who should record on the receiving copy of the purchase order the date and quantity received. The receiving copy of the purchase order should then be signed, dated, and forwarded to the City Clerk. The receiving copy of the purchase order should be forwarded to the City Clerk even if receipt does not complete the entire quantity ordered.
(b) The City Clerk will pull the alphabetical copy, copy one, of the purchase order, and match quantities received with quantities ordered. If no differences exist, the receiving copy should be attached to copy one of the purchase order. If the order is incomplete, the City Clerk will make a photocopy of the receiving copy, mark it "copy", cross out the items already received, and send the photocopy to the appropriate department for processing subsequent receipts that apply to that purchase order.
(6) Payment procedure.
(a) On receipt of the vendors invoice, the City Clerk will pull the voucher packet consisting of copy one of the purchase order, copy of the receiving report (copy three of the purchase order), and copy one of the Purchase Requisition from the alphabetical vendor file. The City Clerk shall match the invoice to the purchase order for description of goods and price, and to the receiving report for quantity of goods received. The City Clerk will then extend and foot the invoice for correctness, indicate this step on the face of the invoice and assign account distribution.
(b) The invoice and voucher packet should be forwarded to the proper department head for approval for payment. No invoice should be paid without written department head approval.
(c) Upon receipt of approval for payment by the department head, the City Clerk shall draw a check to pay the invoice. When the invoice is paid, it shall be cancelled on its face and all paid invoices shall then be filed, with voucher packet attached, alphabetically by the name of the vendor.
(Ord. 0-1-80, passed 1-22-80; Am. Ord. O-5-81, passed 1-27-81)