(a) Purchasing Procedures.
(1) Finance Department approval. The purchase of all materials, supplies, and services with a value under one thousand dollars ($1,000) shall not be made, nor the placement of any order without the prior approval of the department head. Purchases exceeding one thousand dollars ($1,000) shall not be placed for materials, supplies, and services without prior approval of the Department of Finance.
(2) Department heads responsibilities. It shall be the responsibility of the respective department head to:
A. Make determination of the need for all purchases.
B. Determine if the amount required for said purchase is available in the appropriate departmental budgeted line item prior to submitting a request for purchase order approval.
C. If such funds are insufficient in the amount required, the department shall request the Director of Finance to initiate a transfer of funds, or submit the issue to Council requesting an appropriation amendment or transfer from other available funds.
D. No purchase order shall be submitted to the Department of Finance unless and until sufficient funds are determined, by the respective department head.
(3) Purchase order specific purpose. All purchase orders shall be issued for specific purchases of materials, supplies, and services with a value of one thousand dollars ($1,000) or greater, and shall not be considered or used as an "OPEN PURCHASE" for additional items, material, supplies, and services.
(4) Vendors.
A. All vendors shall be notified of the provisions of this section requiring a fully executed and approved purchase order prior to the delivery or ordering of any material, supplies and services.
B. Vendors shall be given notice that any violation of the provisions of this section could result in the City's refusal to pay invoices, a delay in receiving payment or being excluded for future purchases by the City.
(5) Credit cards. The use of any City of Johnstown credit cards is permitted for the purchase of materials, supplies and services for purchases less than one thousand dollars ($1,000). All purchases one thousand dollars ($1,000) or greater shall be only through the issuance of a City of Johnstown purchase order.
(6) City employee responsibilities. Any City employee found to be in violation of this section and the requirements contained in Purchasing Policy Manual of the Department of Finance, and adopted by resolution of City Council and periodically updated as needed, may be subject to disciplinary actions for non-compliance with purchasing policies and Council adopted mandates, and subject to the penalties as provided in the City of Johnstown Administrative Code and the Codified Ordinances of the City of Johnstown.
(7) The Director of Finance shall submit the Purchasing Policy Manual to City Council on or before February 28, 2010, with all other provisions of this section effective January 1, 2010.
(b) Preaudit.
(1) All purchase orders, contracts or agreements by the City, including the Bureau of Sewage and Bureau of Parking, shall be submitted to the Director of Finance for a preaudit.
(2) "Preaudit" means that the Director shall monitor the purchasing process to make certain the amount of each purchase has been correctly encumbered in the financial accounting system, to make certain the encumbered amount and expenditure total combined do not exceed the budgeted amount for each account, and to halt purchases when the expenditures and encumbrances exceed budgetary appropriations.
(Ord. 4667. Passed 7-13-94; Ord. 5045. Passed 12-9-09; Ord. 5283. Passed 2-12-20.)