3-1-9: PROCESSING METHODS AND INTERNAL CONTROLS OVER MUNICIPAL PURCHASES AND CASH DISBURSEMENTS:
   A.   Payroll Disbursements:
      1.   For all employees and officers of the town of Jones City, a documented record shall be maintained in a personnel file of the authorized rate of pay or salary for each employee and officer.
      2.   For each pay period, a record of time worked shall be prepared in the form of time sheets or logs for each employee and officer to be paid. Such record of time worked shall be verified as to its accuracy in writing by the employee or officer and the town clerk.
      3.   Upon verification of the work record, a payroll register including the amount of gross pay, authorized deductions, and net pay shall be prepared by the town clerk.
      4.   The net payroll checks shall be prepared from the payroll register, along with checks for payment of related payroll taxes and other payroll benefits required by law or contract.
      5.   The payroll checks and the payroll register shall be presented to at least one other authorized check signer who shall compare the payroll checks to the payroll register and verify their accuracy. Upon verification, such other authorized check signer and the town clerk shall sign the checks and prepare them for distribution. The town clerk shall then record the checks in the appropriate cash disbursements journals.
      6.   The payroll register shall be provided to the governing body for informational purposes at the next regular meeting; however, governing body approval is not required prior to payment of payroll related costs if incurred and paid in accordance with the provisions above.
   B.   Purchases Of Goods And Services (Other Than Payroll And Payroll Related):
      1.   The following employees or officers have been designated as purchasing officers empowered to purchase or contract against budget appropriation accounts:
         a.   Town clerk.
         b.   Public works director.
         c.   Fire department administrator.
         d.   Mayor of the board of trustees.
         e.   Police chief.
      2.   The officer or employee receiving satisfactory delivery of merchandise or contract services shall acknowledge such fact by signing the invoice or delivery ticket. The invoice, along with delivery ticket if applicable, must then be verified by the authorized purchasing officer as to quantities, services, and prices. If correct, the invoice must then be signed by the authorized purchasing officer and coded with the fund(s) and budget line item(s) to be charged.
      3.   The town clerk shall review all invoices for proper signatures and appropriateness of fund(s) and budget line item(s) to be charged. Upon acceptance of the invoices, the town clerk shall prepare checks in payment of the invoices, and shall cancel each invoice as its check is prepared. Invoices shall be canceled by noting on the invoice the date paid, the check number used to pay the invoice, and the amount paid with the check.
      4.   The invoices and checks shall be presented to at least one other authorized check signer who shall compare the checks to the invoices and verify their accuracy. Upon verification, such other authorized check signer and the town clerk shall sign the checks and prepare them for distribution. The town clerk shall then record the checks in the appropriate cash disbursements journals and shall prepare a check register. The check register shall list in check number order the check date, check number, vendor, and check amount.
      5.   The check register shall be provided to the governing body for informational purposes at their next regular meeting; however, governing body approval is not required prior to payment of invoices if paid charges were incurred and paid in accordance with the provisions above.
      6.   For all purchases of goods and services (other than payroll and related) over two thousand five hundred dollars ($2,500.00), purchase orders or contracts shall be prepared and approved, in writing, by a designated purchasing officer prior to the time the purchase commitment is made.
      7.   For all purchases of goods and services over five thousand dollars ($5,000.00), purchase orders or contracts shall be prepared and approved by the governing body prior to the time the commitment is made, and such approval shall be recorded in the minutes of the governing body. Additionally, the town clerk shall immediately determine that there exists available unencumbered appropriation in the accounts to be charged, and such determination shall also be recorded in the minutes. Should appropriation not be available for the proposed purchase or commitment, the purchase or commitment shall not proceed until necessary budget amendments are authorized.
   C.   Interfund Transfers:
      1.   All transfers between funds shall only be made in accordance with governing body appropriations as reflected in the original or amended town budget.
      2.   Once lawfully appropriated, interfund transfer payments may be made by the town clerk without further governing body approval in the manner used for payment of purchases of goods and services.
   D.   Petty Cash:
      1.   As provided for in 11 Oklahoma Statutes section 17-102(D), the town may have petty cash accounts for use in making certain small payments for costs incurred in operating the town.
      2.   Each petty cash account established shall require governing body approval, including the imprest amount of the petty cash account. However, in no case should the imprest balance exceed one hundred dollars ($100.00).
      3.   The petty cash accounts shall be reimbursed by utilizing properly itemized invoices in the manner used for payment of purchases of goods and services. However, in no case shall an individual payment from petty cash exceed fifty dollars ($50.00).
   E.   Debt Service:
      1.   All long term indebtedness in the form of bonds, notes, or lease purchase obligations shall be incurred in the manner provided by law.
      2.   Once lawfully incurred, the town clerk shall make payments of principal and interest on the debt in accordance with the terms specified by the lender without further approval of the governing body.
      3.   The manner of payment shall be consistent with the manner used for payment of goods and services.
      4.   Current balances on outstanding debt shall be maintained by the town clerk in the appropriate journals.
   F.   Competitive Bidding:
      1.   The town of Jones City shall adhere to the provisions of 61 Oklahoma Statutes (1991), section 101 et seq., when determining when competitive bidding is required and the manner in which competitive bids will be obtained.
      2.   If this code provides for additional competitive bidding requirements, such additional requirements shall be met.
      3.   In addition to the requirements of subsection F1 of this section, public trusts created pursuant to 60 Oklahoma Statutes section 176, of which the town of Jones City is beneficiary, shall also follow the competitive bidding provisions of 60 Oklahoma Statutes section 176(H).
   G.   Financial Reporting:
      1.   The town clerk shall prepare written monthly financial reports which disclose at least all receipts and expenditures by fund in the same format as the approved budget and showing the variance from the budget.
      2.   The financial reports shall be placed on the agenda for acknowledgment by the governing body at each regular meeting.
   H.   Applicability To Public Trusts:
      1.   For all public trusts created pursuant to 60 Oklahoma Statutes sections 176 - 180, for which the town is beneficiary and for which the trust's board of trustees is comprised entirely of members of the town's board of trustees, all provisions of this section shall apply.
      2.   For the purposes of public trusts as defined above, "town clerk" shall mean trust secretary as defined by the trust indenture. (Ord. 02-03-2011, 2-3-2011)