(A) The purchasing of all supplies, equipment, and services will be a function of each department as directed by the Township Board.
(B) Purchases over $300 will require a purchase order with a number to be issued from the Clerk’s office and signed by the Supervisor and Clerk.
(C) Each department will adhere to the following procedure (purchases will be defined as a single item, service, or project, including labor).
(1) Purchases up to $2,500 will be at the discretion of each department to be fully carried out by each department, except for the purchase order (if expenditure is over $300) which must be requested from the Clerk’s office. It is recommended that departments seek at least two verbal bids for all items over $300.
(2) Purchases of $2,501 to $9,999 must be approved by the Township Board prior to purchase. If possible, three written bids should be attached to the request to purchase when filed with the Clerk’s office prior to placement on the Township Board agenda for Board action. If approved, the Clerk’s office will automatically issue a purchase order.
(3) Purchases over $10,000 must be approved by the Township Board prior to bidding. Specifications should be submitted to the Clerk’s office with the request to purchase for placement on the Board agenda. After approval, bid specifications will be made available through standard sources. Sealed bids will be considered by the Board with department recommendation.
(D) Invoices must be sent directly to the department for a signature of receipt by either the department head or other designated person prior to requesting payment from the Clerk’s office. All invoices over $300 should show a purchase order.
(E) Invoices required specific approval of the Township Board prior to payment and must be submitted in a timely fashion to the Township Clerk. The Clerk’s office may set deadlines for receipt.
(F) Reimbursements for goods and services purchased by individuals must be properly documented and requested on a form as designated by the Township Clerk’s office.
(G) All services and labor purchased from individuals require that either a business ID number or an individual Social Security number be on file with the Township Clerk before payment can be made.
(H) Any department may establish a petty cash account for up to $25 by making a request for payment to the Clerk’s office. Prior to reimbursement, all petty cash accounts must be justified with proper documentation.
(I) All purchases authorized by contract between either a vendor, business, organization, or individual and the Township Board, such contracts providing a specific payment schedule, will be exempt from submitted invoices and/or a request for payment. Purchase orders will not be used for contract of services.
(J) The following are exempt from the bidding procedure in this policy and generally will not require purchase orders:
(1) Salaries of township officials, township employees, year-round part-time employees, and persons appointed to commissions, committees, and boards;
(2) Monthly utility purchases;
(3) Gasoline purchases; and
(4) Services purchased on an annual basis, such as retainers, audit fees, insurances, membership fees, and employee benefits.
(K) The Township Clerk is responsible for notifying the Township Board when a proposed purchase exceeds a department budget or a proposed purchase includes unbudgeted expenditures over $2,500.
(L) Open purchase orders up to $1,000 can be authorized by a department head and will include time and monetary limitations when the purchase order is issued from the Clerk’s office.
(M) Emergency purchases of over $1,000 will be approved without prior Township Board approval only by two signatures from one of the following: Supervisor, Clerk, or Treasurer. Both Board members must agree the purchase is an emergency and could not have been planned in advance and can not wait for future Board approval. A purchase order must be used.
(N) The Township Board has the authority to take or make exception to this purchasing policy.
(Res. 2, passed 10-20-2005)