(A) The purchasing method to be used is based on the dollar amount of the purchase. To determine the dollar amount, departments should aggregate the amount of annual reoccurring purchases to be made from the vendor or the aggregate of the contract amounts under an agreement including any extensions.
(B) Petty cash ($100 or less).
(1) Legal requirements. The petty cash fund maintained by the Finance Director/Treasurer is to be used for the purchase of incidentals and may be authorized by department heads.
(2) Village policy. Petty cash is to be used for non-repetitive items not exceeding $100.
(3) Procedures.
(a) Any cash removed from the fund must be replaced by a petty cash voucher accompanied by a receipt or invoice from the supplier of the item or service purchased.
(b) The receipt or invoice must detail the type and amount of the expenditure. The petty cash voucher must indicate the appropriate account number to which the purchase should be charged, and indicate the department head’s approval.
(c) Each department that has a petty cash fund must designate one person to have custody and responsibility for the fund. This responsibility includes balancing the fund periodically; requesting reimbursement of the fund; and ensuring the funds are at all times in a locked and safe location.
(d) To ensure accountability for each petty cash fund, the fund must be balanced periodically based on use. Therefore, the sum of all unused cash and petty cash vouchers should equal the total of the respective department’s petty cash total. If the actual balance is ever different from the amount that should be in the fund, the Finance Director/Treasurer should be contacted immediately.
(e) When requesting reimbursement of petty cash funds, the appropriate petty cash vouchers, along with supporting receipt, etc., must be submitted to the Finance Director/Treasurer’s Office. This should be done at regular intervals to avoid running the fund too low. No reimbursements will be made without the required supporting documentation.
(C) Purchases less than $1,000.
(1) Purchases may be made from any responsive vendor.
(2) Informal price quotes from three vendors is recommended.
(3) A purchase order is required for all purchases except those purchased with petty cash.
(4) Agreements (if applicable) need to be reviewed by the Village Attorney prior to purchase.
(5) Department head is authorized to approve purchase.
(D) Purchases from $1,000 to $25,000.
(1) Formal price quotes from three vendors is required or use of an approved cooperative purchasing organization or unit of government.
(2) Purchase order is required.
(3) Documentation of price quotes and vendor selection along with any signed agreement needs to be electronically attached to the purchase requisition in the system.
(4) Standard village contract or a mutually agreeable contract approved by the Village Attorney may be required at the Village Manager’s discretion.
(5) Department head is authorized to approve purchases up to $10,000 if budgeted. Purchases of over $10,000 or non-budgeted purchases need to be approved by the department head and Village Manager.
(6) Any sole source purchasing needs to be explained and approved by the Village Manager.
(E) Purchases over $25,001 to $50,000.
(1) Formal specifications and price quotes from three vendors is required or use of an approved cooperative purchasing organization or unit of government.
(2) Purchase order is required.
(3) Documentation of price quotes and vendor selection and signed contract needs to be electronically attached to the purchase requisition in the system.
(4) Standard village contract or a mutually agreeable contract approved by the Village Attorney must be used. Contract must be signed and approved by the Village Attorney and Village Manager.
(5) If this is a non-budgeted purchase or if the purchase will require a budget amendment, then the purchase must be approved by the Village Council.
(6) Any sole source purchasing needs to be explained and approved by the Village Manager.
(F) Purchases of $50,000 or greater.
(1) Formal competitive bidding is required as outlined in the Village Charter or use of an approved cooperative purchasing organization or unit of government.
(2) Purchase must be approved by the Village Council.
(3) Purchase order is required.
(4) Documentation of formal bids and vendor selection and signed contract needs to be electronically attached to the purchase requisition in the system.
(5) Standard village contract or a mutually agreeable contract approved by the Village Attorney must be used. Contract must be signed by the Village Attorney, Village Manager, and Village Clerk.
(Ord. 24.09, passed 6-26-23)