A.
Public purchasing is that area of government which seeks to provide
equipment, materials, supplies, and services at economical prices
by seeking competition and evaluating the lowest responsible bidder,
taking into account the needs and best interest of the government
agency.
B.
The Township's goal is to assure that this statement is complied
with and that all state laws regarding purchases by the Township are
enforced. To assist the Township's employees in the responsibilities
of purchasing, this policy has been developed as a guide to the Township's
purchasing procedures. Not all questions will be answered by this
policy. However, it is anticipated that this policy shall from time
to time be revised to address additional examples of purchasing as
well as address additional questions that may arise.
C.
The Township will not be bound by any purchase or contract made in
violation of this manual. Any employee who enters into a purchase
on behalf of the Township that is not consistent with this policy
may be held liable for any cost incurred and may be subject to disciplinary
action. No goods or services shall be purchased or contracted for
by any employee, department, board agency or office of the Township
except in accordance with the procedures set forth in this article.
No goods or services shall be acquired, or funds encumbered,
without issuance of a prenumbered purchase order issued by the Township.
In case of an emergency, as described herein, exception may be made
to this policy.
A.
B.
Quote comparison.
(1)
When the dollar amount is in excess of $2,625 and less than the mandatory
bid threshold as established by the State of New Jersey, then a quote
comparison form must be completed and submitted with the requisition
in accordance with the New Jersey Local Public Contracts Law.
(2)
The quote comparison shall be filled out completely, including three
quotes with complete vendor name and address. The name of the person
completing the comparison is to be included with the department head's
signature.
C.
Purchase order.
(1)
Once the requisition has been approved by the department head, it
is sent to the Finance Department for encumbrance against the specified
budget line item. Provided the funds are available, a purchase order
is issued with the signature of the Chief Finance Officer, or designee,
certifying that sufficient funds exist in the line item in accordance
with N.J.A.C. 5:30-14.5. The purchase order shall then be forwarded
to the Township Committee.
(2)
If sufficient funds are not available, the purchase order shall be
returned without signature to the department head with a note showing
the amount remaining in the line item. A copy of the rejection shall
be sent to the Township Committee.
(3)
The purchase order number is prenumbered and is held by the department
head. The number shall appear on all invoices related to the order.
(4)
No expenditures shall be made against a purchase order in excess
of 10% of the dollar amount stated on the order, or the total remaining
amount of the line item, whichever is less. In cases where the purchase
order is over the approved amount, the department head shall inform
the Chief Financial Officer or designee prior to the purchase. This
is to ensure sufficient funds are available. A change order must be
completed by the Committee person in charge of that department before
the additional expenditure is incurred.
D.
Voucher.
(1)
The purchase order also must be sent to the vendor. The vendor shall
affix their signature and the price of goods and services to the purchase
order verifying the sale and delivery of the listed items and attesting
to the proper billing.
(2)
The department head shall sign the order signifying proper receipt
of the goods and recommending payment of the invoice.
(3)
Upon verification of receipt, the purchase order is attached to a
copy of all receipts and signature of the department head is sent
to the Finance Director for final review.
E.
Voucher approval. The Township Committee shall review all purchase
order vouchers and bill list for final approval and authorization
to pay bills.
A.
Procedures for acquiring goods and services shall be guided by the
below-listed thresholds. The department heads shall ensure that this
guide is followed and completed prior to submission of a requisition.
B.
Purchase order requisitions are required for all goods and services
prior to actual receipt of same. All requisitions shall be approved
based on the following:
|
Purchases Between
(amount)
|
Special Action
|
Approval
| |
|---|---|---|---|
|
$1 to $100
|
Department Head
| ||
|
$101 to $2,625
|
Informal telephone quotes to obtain best price
|
Committee
| |
|
$2,625 to state threshold
|
Three formal quotes (written). Use quote form in accordance
with NJ Public Contracts Law.
|
Committee
| |
|
State threshold
|
In accordance with NJ Public Contracts Law, Formal Bid1
|
Committee
|
|
NOTE:
| ||
|---|---|---|
|
1
|
For purchases that require NJ Public Contracts Law, the Committee
shall authorize formal bids prior to advertising.
| |
C.
At all times, department heads should attempt to make purchases at
the lowest and best price taking into consideration time and delivery
costs.
D.
Telephone quotes may be obtained by telephone without written confirmation.
The quote form shall be used.
E.
"Formal quotes" means a quote of costs made in writing and summarized
on the quote form.
F.
"Minimum specifications" means a narrative or detailed description
of the purchase item(s) to ensure the clarity of the item to be purchased.
A.
Emergency purchases shall only be authorized when a situation requires
the immediate purchase or delivery of goods or services to meet an
immediate and actual danger to the public health, safety, or welfare.
B.
The department head requesting an emergency purchase shall make every
effort to contact the Mayor, if available to receive approval. If
the Mayor is unavailable, the department head shall contact the Committee
member in charge of the department in question. A written requisition
for the performance of the work, labor or acquisition of materials
shall be provided to the Chief Executive Officer describing the nature
of the emergency, the time it occurred and the need to make an emergency
purchase.
C.
The Chief Financial Officer or purchasing agent shall review the
nature of the emergency and expenditure. At that time, a purchase
order may be issued for the emergency purchase per standard procedures.
A.
Step 1. Department head reviews need of the item and budget.
B.
Step 2. Department head reviews threshold to determine level of approval
necessary.
C.
Step 3. If purchase is:
|
Up to $100
|
Go to Step 4.
| |
|
$1 to $2,625
|
Get telephone quotes.
| |
|
$2,625 to state threshold
|
Get written quotes from vendors and prep memo of need to Committee.
|
(1)
State threshold. Prepare formal specifications and advertising, then
prepare memo of need for Township Committee for approval. Once approved
by Committee, proceed to next step.
D.
Step 4. Prepare requisition.
E.
Step 5. Committee approval.
F.
Step 6. Purchase order issued.
G.
Step 7. Make purchase.
H.
Step 8. Submit invoice(s) once all items are received in good order.
I.
Step 9. Finance Department approval.
J.
Step 10. Committee authorizes payment of voucher.
K.
Failure to follow this procedure, except where allowed herein, may
result in disciplinary action up to and including dismissal.
A.
No department head shall make purchases from any vendor where he/she,
or an immediate family member, has a direct or indirect financial
or personal involvement, including employments that might reasonably
be expected to impair his/her objectivity or independence or judgment.
B.
Special exception may be granted by the Committee after it determines
that there is no conflict of interest and is in the best interest
of the Township. This may be in the form of a letter from the manager/owner
of the vendor stating that there is no direct or indirect interest
to the employee or the employee's immediate family.
A.
All offices are to count their own cash boxes at the end of the day.
In offices where there are two cash boxes, where receipts are entered
into the same recording system for that office, the cash and check
receipts should be counted by both parties.
B.
Should there be any shortages, after a complete recheck of the receipts,
it should be reported immediately to the CMFO, the auditor and the
governing body.
C.
Documentation of cashier difference should be made out in report
form. A copy should be given to the CMFO giving details of what happened
and what procedure was taken at the time of the shortage to find same.
(Forms can be obtained from the CMFO.)
D.
The CMFO and auditor are to be notified immediately. Notation should
be made in the cash book of the shortage and of the notification to
the CMFO, auditor and governing body.
A.
The Township shall reimburse employees for travel and out-of-pocket
expenses incurred as result of work on behalf of the Township. The
Township shall reimburse those expenses that are properly submitted
and documented according to this procedure and limits established
herein.
B.
All reimbursements must be submitted on the form provided by the
Chief Financial Officer. Receipts for all expenses sought must be
provided.
C.
Prior to when any travel/out-of-pocket expense is incurred, a requisition/purchase
order shall be submitted which estimates the amount of expenses to
be incurred as result of the trip. Once the employee returns, the
actual expenses shall be reconciled with the purchase order.
D.
Automobile expenses. Whenever an employee's own vehicle is required
to be used, he/she shall be reimbursed at a rate equal to the rate
set by the IRS for the current tax year. Any tolls shall be reimbursed,
with a receipt in addition to the per mile rate.
E.
Meals. Meals, including tip, shall be reimbursed at the following
maximums:
|
Breakfast
|
$5
| |
|
Lunch
|
$7.50
| |
|
Dinner
|
$10
|
F.
Accommodations. Hotels, taxi fare, including tip, airfare and parking
shall be reimbursed upon receipt. At all times, the most economical
arrangements should be made.
G.
Expenses not reimbursed:
(1)
Special "first class or business class" fares or accommodations;
(2)
Additional costs incurred as a result of a guest/spouse;
(3)
Expenses incurred as a result of not attending function provided;
(4)
Meals or accommodations (e.g., costs of a dinner when one is provided
at a conference);
(5)
Special costs incurred when using personal vehicle (e.g., cost of
towing or repairs if personal car breaks down);
(6)
Telephone calls not related to Township business;
(7)
Any alcoholic beverages.
