(A) Payroll disbursements.
(1) For all employees and officers of the city, a documented record shall be maintained in a personnel file of the authorized rate of pay or salary for each employee or officer.
(2) For each pay period, a documented record of time worked and leave taken shall be prepared, in the form of time sheets, cards or logs, for each employee and officer to be paid. For employees exempt from the overtime provisions of the Fair Labor Standards Act, being 29 U.S.C. §§ 201 et seq., the record may exclude time worked. Such record of time worked and leave taken shall be verified as to its accuracy in writing by the employee or officer, supervisor or department head, if applicable, and the Human Resource Director or designee.
(3) Upon verification of the work record, a payroll statement or register, including the amount of gross pay, authorized deductions and net pay shall be prepared and submitted to the City Manager for review and written approval.
(4) Upon approval of the payroll statement or register, the net payroll checks shall be prepared along with checks for payment of related payroll taxes and other payroll benefits required by law or contract.
(5) The check shall be presented to the City Treasurer along with the approved payroll statement or register. The Treasurer shall compare the checks to the payroll statement or register and verify their accuracy. Upon verification, two authorized signors shall sign the checks and prepare them for distribution. In addition, the Treasurer shall prepare or cause to be prepared a check register.
(6) No payroll related encumbrances are required to be recorded in the budgetary accounting records as long as the payroll costs are recorded as expenditures at the time they become due and payable. However, no payroll costs may be incurred or paid if they exceed the available appropriation for the accounts to be charged at the legal level of control.
(7) The City Treasurer shall record or cause to be recorded in the appropriate journals and ledgers the payroll costs incurred and/or paid for the pay period.
(8) A copy of the payroll statement, register or payroll check register may be provided to the City Council for information purposes; however, governing body approval is not required prior to the payment of payroll related costs if incurred and paid in accordance with the provisions above.
(B) Competitive bidding.
(1) The city shall adhere to the provisions of 61 O.S. §§ 101 et seq., when determining when competitive bidding is required and the manner in which competitive bids will be obtained.
(2) If other city ordinances, regulations or policy provide for additional competitive bidding requirements, such additional requirements shall also be met.
(3) In addition to the requirements of division (B)(1) above, public trusts created pursuant to 60 O.S. § 176, of which the city is beneficiary, shall also follow the competitive bidding provisions of 60 O.S. § 176(g).
(C) Purchases of goods, services and capital.
(1) The city designates the City Manager, each department head or the designee of the City Manager as purchasing officer(s) empowered to purchase or contract against budget appropriation accounts.
(2) For all purchases of goods, services or capital (all purchases or disbursements other than payroll and debt service related) up to $2,000, requisition forms, purchase orders or contract shall be prepared and approved, in writing, by a designated purchasing officer or department head or designee prior to the time the purchase commitment is made.
(3) For all purchases or contracts for goods, services, or capital over $50,000, City Council approval shall be obtained prior to the time the commitment is made, and such approval shall be recorded in its minutes. For all purchases or contracts for goods, services, or capital in amounts up to and including $50,000, the City Manager is authorized, without City Council approval, to purchase or contract against budget appropriation accounts.
(4) (a) For all purchases of goods, services or capital over $2,000, the approved requisition, purchase order or contract shall be forwarded to an officer or employee charged with keeping the appropriation and expenditure records (encumbering clerk) who shall determine that there exists available unencumbered appropriation in the accounts to be charged. Upon such determination, the encumbering clerk shall attest to that fact in writing. If appropriation is not available for the proposed purchase or commitment, the purchase or commitment shall not proceed until budget amendments are authorized to provide sufficient appropriation.
(b) Upon approval of the purchasing officer and encumbering clerk, an encumbrance shall be recorded in the appropriation and expenditure records in the amount or estimated amount of the commitment.
(c) These encumbering requirements shall not apply to the following type of purchases or commitments:
1. Payroll and personal services;
2. Utility and telephone services (governed by the state’s Corporation Commission);
3. Insurance (governed by contract);
4. Debt service; and
5. Any other obligation governed by contract.
(5) (a) After satisfactory delivery of the merchandise or completion of contract provisions, an invoice or claim form shall be obtained adequately documenting request for payment. The officer or employee receiving satisfactory delivery of merchandise or contract service shall acknowledge such fact by signing the invoice, claim form, delivery ticket or receiving advice.
(b) The invoice or claims form, along with the written acknowledgment of receipt, shall be forwarded to the officer or employee responsible for processing accounts payable, who shall review the invoice for accuracy and propriety, including comparison to the authorized requisition, purchase order or contract, if applicable.
(c) Upon completion of the accounts payable officer review, the invoices or claim forms (except those to be paid with federal or state moneys) along with the related supporting documentation shall be submitted to the Chief Executive Officer for consideration and approval of payment, along with an accompanying invoice or claims listing, which shall be provided in writing by the Chief Executive Officer.
(d) Upon completion of the accounts payable officer review, invoices to be paid with federal or state moneys shall be submitted along with related supporting documents to the Chief Executive Officer for approval, without further approval of the City Council, in order to allow the city to disburse federal and state funds within the time frame required by the granting agency.
(6) (a) Upon approval of the invoices or claims for payment, checks or other payment documents as authorized by state law (11 O.S. § 17-102) shall be prepared and submitted to the City Treasurer, along with a copy of the approved invoice or claims listing.
(b) The Treasurer shall compare checks or other payment documents to the invoice or claims listing and verify their accuracy. Upon verification, two authorized signors shall sign the checks or other documents and prepare them for distribution. In addition, the Treasurer shall prepare or cause to be prepared a check register.
(7) The City Treasurer shall record or cause to be recorded in the appropriate journals and ledgers the purchases and cash disbursements incurred and paid.
(8) A copy of the approved invoice or claims list and/or check register may be provided to the City Council for informational purposes; however, governing body approval is not required prior to the payment of the invoices or claims if incurred and paid in accordance with the provisions above.
(D) Debt service.
(1) All long-term indebtedness, in the form of bonds, notes or lease purchase obligations, shall only be incurred in the manner provided by law.
(2) Once lawfully incurred, payments of principal and interest on the bonds or notes and payments on the lease purchase obligations shall be paid in accordance with the terms as specified in the bond indenture, note agreement or lease purchase contract by the City Treasurer without further approval of the City Council.
(3) The manner of payment shall be consistent with the manner used for the payment of purchases of goods, services or capital as described above.
(4) The City Treasurer shall record or cause to be recorded in the appropriate journals and ledgers the debt service payments and maintain current records of the remaining amount of indebtedness.
(E) Interfund transfers.
(1) All transfers of resources between funds (both operating and residual equity transfers) shall only be made in accordance with governing body appropriations. Such appropriations shall be contained in the original or amended budget of the municipality.
(2) Once lawfully appropriated, interfund transfer payments may be made by the City Treasurer without further governing body approval. Such transfers, however, may not exceed the account lawfully appropriated.
(3) The manner of payment shall be consistent with the manner used for the payment of purchases of goods, services and capital as described above.
(4) The City Treasurer shall record or cause to be recorded in the appropriate journals and ledgers these interfund transfers.
(F) Petty cash.
(1) As provided for in 11 O.S. § 17-102(D), the city may have petty cash accounts for use in making certain small payments for costs incurred in operating the municipality.
(2) Each petty cash account established shall require governing body approval, including the amount of the petty cash maximum balance. However, in no case should the maximum balance exceed $1,000.
(3) The petty cash accounts shall be reimbursed by utilizing properly itemized invoices or petty cash voucher slips and by then processing the reimbursement in the manner used for payment of purchases of goods, services and capital as described in division (C) above.
(G) Financial reporting. The City Treasurer shall prepare a monthly budget status report in accordance with the detail of budgetary accounts in the annual fiscal year budgets. The report shall be placed on the agenda for City Council acknowledgment and approval at the first meeting following the close of the previous month.
(H) Applicability to public trusts.
(1) For all public trusts created pursuant to 60 O.S. § 176-180, for which the city is beneficiary and for which the trust’s governing body (Trustees) are comprised entirely of members of the City Council, the above noted requirements of divisions (A) through (G) above shall apply.
(2) For the purposes of the public trusts, as used above, the terms “governing body” shall mean Board of Trustees of the trust, “Chief Executive Officer” shall mean the General Manager as appointed by the Trustees, “City Treasurer” shall mean Trust Treasurer as appointed by the Trustees or required by the trust indenture.
(2002 Code, § 34.04) (Ord. 639, passed 3-16-2009; Ord. 884, passed 6-14-2021; Ord. 932, passed 2-27-2023)