A. Purchasing:
1. All purchases require that the appropriate funds are budgeted and sufficient funds are available at the time of purchase.
2. No employee or any person shall make purchases or commit village funds without authorization, except for the following:
a. Fuel purchases for village-owned vehicles and equipment.
b. Credit card purchases as authorized and pursuant to subsection B. of this section.
c. Emergency purchases under subsection A. 5. below.
3. All purchases that require a check drawn on village funds shall have an accompanying purchase order presented prior to the processing of the check.
a. The purchase order must contain the date of proposed purchase, items(s) being purchased, reason for purchase, price, budget account(s) to be charged, and signature of the authorizing individual.
b. Purchases made pursuant to subsection A.2.a. or subsection C. do not require a purchase order.
4. The following individuals have the authority to authorize and/or make purchases on behalf of the Village of Sherman, subject to the indicated limits and which are not to exceed budgeted amounts:
a. Village Administrator - $1,500
b. Police Chief - $1 ,000
c. Deputy Chief - $500
d. Public Works Director - $1,000
e. Sewer Deparånent Coordinator - $ 1,000
f. Village President:
(1) Contingency purchases - $10,000
(2) All other purchases - lower of $ 10,000 or the remaining annual line item budget
5. The Village Administrator is authorized to make emergency purchases of goods and services up to $5,000 with prior approval from Village President. The Village President is authorized to make emergency purchases of goods and services up to $25,000. An emergency exists when the delay of seeking quotes or Village Board approval in advance of any purchase or commitment of funds.
6. Expenditures greater than what the Village has budgeted within its various line items, or expenditures from the contingency budget in excess of $10,000, require Village Board approval in advance of any purchase or commitment of funds.
B. Credit Card Policy - Corporate Card:
1. All credit card purchases are subject to the requirements of the village's purchasing policy.
2. Cardholders cannot use the Village of Sherman corporate card for personal purchases or expenses.
3. Limits: The President and Treasurer set the limits on credit card accounts per authorized cardholder in accordance with A.4. above.
4. The card may not be transferred to, assigned to, or used by anyone other than the designated cardholder.
5. The Village of Sherman retains the right to cancel the cardholder's corporate credit card. Cards may be revoked for misuse or non-compliance with procedures.
6. Detailed receipts or invoices must be presented with accompanying purchase order prior to processing of payment.
7. Cardholders are responsible for forwarding all transactions/receipts to the Clerk or Treasurer, upon their request.
a. A copy of the monthly statement will be provided to the cardholder upon receipt of the monthly billing from the credit card company.
b. Upon receipt of the monthly credit card billing, each cardholder is responsible for completing purchase order for each transaction noted on the credit card statement and attaching all sales receipts, invoices, thereto.
c. The Village Purchase Order must be signed by the cardholder and forwarded to the Village Clerk to authorize payment of the charges.
d. The cardholder is responsible for follow-up with the vendor on any erroneous charges, disputed items, or returns.
8. The individuals authorized in subsection B.3. are considered authorized individuals for credit card use.
C. Credit Card - Gas Card Policy:
1. The village has negotiated a favorable rate with local gasoline provider for the purchase of gasoline for village vehicles. Employees are required to use the local vendor and their gas card for such purchases.
2. Employees that drive company vehicles on a regular basis will be issued a credit card for gas purchases with the local gasoline vendor.
a. Each card issued will be specific to the employee it is issued.
b. Employees must safeguard their card and not loan it out to coworkers or others.
3. Employees are not permitted to use the gas card for personal reasons or purchase items other than gasoline its intended use.
4. Process For Validating Purchases:
a. Upon purchase of gas by employees, the employee must obtain receipt from the vendor.
b. On the back of the receipt, the employee must note "license plate number of village vehicle" and "initial".
c. Employees should keep the receipts in a safe place as they will be turned in to their supervisor at their request.
d. Upon monthly statement by the vendor to the Village Administrative Office, the department supervisor will be notified to forward all receipts for a specific period (usually on a calendar month) and provide all receipts.
e. The Administrative Office will reconcile all receipts to the statement.
(1) If receipt is lost or there is a discrepancy, Administrative Office will notify the supervisor and the employee losing receipt will be required to submit a brief statement validating the transaction did take place and was for village purposes.
(2) Once reconciled, the Administrative Office will proceed to authorize payment to the Treasurer and file the statement, receipts and/or statements attached.
D. General Fiscal Policies:
1. All purchases must have an accompanying receipt or invoice prior to issuance of a check.
2. Village Board approval is not required prior to issuing payments for authorized purchases.
3. All planned expenditures above $10,000.00 must have two (2) accompanying quotes prior to selecting a vendor. The quotation selected is the one that provides the highest acceptable quality at the lowest price. The requirement is waived if the expenditure is on state-contract bid list, waived by the vote of the Village Board, or if deemed impractical by the Village President.
4. All contracts above $10,000.00 require Village Board approval unless stipulated otherwise herein.
5. All checks issued by the Village shall have two (2) authorized signatures recorded on its front surface before the check is valid. Electronic payroll and payroll tax payments shall be reviewed prior to being submitted by the Village Clerk or Village Treasurer.
6. The disbursement of funds pursuant to prior Board ordinances, resolutions or agreements are not subject to this policy, and do not require subsequent Board approval prior to being paid.
7. Transfers between funds for operating purposes by direction of the Village Treasurer are not subject to this policy.
8. A listing of all disbursements and transfers shall be presented for informational purposes to the Village Board.
9. In the event an expenditure was not authorized according to this procedure, the error shall be presented to the Village Board and their approval is required prior to payment.
E. Vendor Selection: The village may from time to time decide in the best interest of efficiency and cost to negotiate contract for services with a vendor as the single provider of said service for a specific period of time but no longer than one year. Examples include gas vendors, vehicle service centers, office supply vendors, telephone or cell phone service providers, janitorial supplies and services.
F. Conflict Of Interest:
1. No employee (including elected officials) will participate directly or indirectly in a procurement when the employee knows that employee or any member of the employee's immediate family has a financial interest in the procurement:
a. When a business or organization in which the employee, or any member of the employee's immediate family, has a financial interest pertaining to the procurement;
b. Or when any other person, business, or organization with whom the employee or any member of the employee's immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement.
2. The Village of Sherman can enter into a contact with a vendor which a Trustee has a conflict of interest as defined in F.1. above. In entering into any such contract, the Trustee must not vote on the contract and must disclose that there is a conflict of interest. (Ord. 2018-05, 5-15-2018)