The intention of this Article is to ensure that reasonable assurance
can be given the public that the Town's assets are properly safeguarded
and conserved, and that the Town's elected and appointed officials
are dedicated to preventing and detecting errors and fraud.
(a)
In general. In this Article, the following words have the meanings
indicated.
(b)
INTERNAL CONTROL — An integral component of an organization's
management that provides reasonable assurance that the following objectives
are being achieved:
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Effectiveness and efficiency of operations,
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Reliability of financial reporting,
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Compliance with applicable laws and regulations, and
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Actions and activities that occur throughout an entity's operations
on an ongoing basis.
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(c)
DEPARTMENT HEADS — Managers responsible for the Town of Forest
Heights' Police Department, Public Works Department, and Office of
Administration (Town Clerk, Treasurer, Receptionist, and other administrative
personnel).
(d)
COUNCIL — The Town Council of Forest Heights.
(e)
COUNCIL CHAIR — The Mayor.
(f)
FINANCIAL OFFICER — The Town Treasurer.
[Amended 11-2-2009, effective 11-2-2009; 7-20-2011 by Em. Ord. No. 04-11]
(a)
Procurement. In addition to meeting all of the relevant Charter and
state law provision requirements, the procedures for the procurement
of services and goods (including related parts and equipment) and
the disposal of surplus property shall be as follows:
[Amended 7-18-2012 by Ord. No. 08-12]
(1)
Except for emergency certifications, all procurement requests shall
be precertified prior to purchase by the Mayor or Town Treasurer using
the financial form approved by the Council for this purpose (i.e.,
Check and Credit Card Requisition Form). The purpose of the certification
is to verify whether the funds have been appropriated in the budget,
that the line item contains adequate funds, and to ensure that the
purchase is to be made pursuant to a valid and approved contract.
Certification is the process whereby the Mayor or Treasurer officially
signifies that funding has been lawfully appropriated by budget and
the purchase has been properly approved by the Council or in the case
of small or emergency purchases, the Mayor. Certification is not synonymous
with approval of the specific purchase or procurement by the Council
or the Mayor.
[Amended 2-19-2014 by Em. Ord. No. 02-14]
(2)
The person who requests an expenditure of funds shall not be the
person certifying said expenditure.
[Amended 2-19-2014 by Em. Ord. No. 02-14]
(3)
All vendors, clearances and certifications shall be identified using
the financial form approved by the Council for this purpose.
(4)
Procurement of an item valued at $10,000 or more, which, in accordance
with the Charter, requires competitive bidding and a written contract,
shall be advertised in the Town newsletter, newspaper of general circulation
or on the Town website and, to the extent the procurement is expected
to exceed $25,000 in value, on the eMaryland Marketplace, the internet-based
procurement system managed by the Maryland Department of General Services.
As determined by the Mayor and Council at its discretion and as permitted
by the Charter, such procurement valued at $5,000 or more may require
the use of:
(I)
A request for proposal, in which the Town invites vendors to
submit proposals to supply services or goods;
(II)
An Invitation to Bid, in which vendors are invited to submit
proposals to supply goods or services with the understanding that
further contract negotiations may be forthcoming; and/or
(III)
Requests for qualifications, in which the Town requests vendors
to submit their qualifications to fulfill procurement needs.
(5)
Procurement of an item valued in excess of $1,000 but less than $10,000
shall require quotes, bids or proposals from three different vendors.
Items valued at $1,000 or less may be purchased without obtaining
multiple bids, quotes or proposals.
[Amended 2-19-2014 by Em. Ord. No. 02-14]
(I)
Small purchases. Except as otherwise stated hereinbelow for
emergency purchases, all purchases and contracts made under this subsection
less than $5,000 in consideration are hereby preapproved by the Council
and if previously appropriated in the budget may be made or entered
into solely by the Mayor without further Council approval.
[Amended 4-21-2021 by Ord. No. 01-21]
(II)
Emergency purchases. All emergency purchases and contracts made
under this subsection less than $10,000 in consideration are hereby
preapproved by the Council. The Mayor without prior specific consent
or further approval of the Council, but with the written consent of
at least two other Council members, may enter into contracts or make
purchases not exceeding $10,000 in value for emergency purposes in
order to protect the residents from imminent threat of harm or injury,
to protect the health, safety and welfare of the general public from
imminent harm, or to prevent the imminent permanent, and substantial
loss or damage to Town property.
(III)
When making emergency purchases under this subsection, the Mayor
may exempt said purchase of a good or service from the competitive
selection processes but shall provide a report at the next meeting
of the Council as to the reasonableness under the circumstances of
the sole-source procurement utilized by the Mayor and staff.
(IV)
The Mayor shall ensure that all purchases made pursuant to this
subsection are certified as stated in Subsection (a)(1) and (7) of
this section and shall report said purchases and contracts made on
a monthly basis to the Council.
(V)
Except as otherwise provided during a declared state of emergency
pursuant to state law or Town ordinance, the Council may suspend the
delegation of purchasing and contracting authority bestowed on the
Mayor by this subsection by simple resolution of the Council entered
into the journal or meeting minutes. The Council may further require
by simple resolution that the Council President, the Finance Committee
Chair or an appointed official shall co-sign all written contracts
or approve in writing all oral agreements authorized under this subsection.
(6)
Upon written findings entered into the journal, the Mayor and Council
may exempt the purchase of a good or service from competitive selection
processes when the purchase qualifies as a sole-source procurement
as a result of the following circumstances:
(I)
One vendor is the only one qualified or eligible or is quite
obviously the most qualified or eligible to provide the good or service;
(II)
The procurement is of such a specialized nature or related to
a specific geographic location that only a single source, by virtue
of experience, expertise, proximity, or ownership of intellectual
property rights, could most satisfactorily provide the good or service;
(III)
Applicable law requires, provides for, or permits use of a sole-source
procurement; or
(IV)
The federal government or other provider of funds for the goods
and services being purchased has imposed clear and specific restrictions.
(7)
As further defined in Subsection (a)(1) above, emergency procurement
certifications for goods or services less than $10,000 may be granted
after the fact but shall be documented as soon as possible, within
12 hours of the event listed on the financial form approved by the
Council for this purpose, but shall require the prior approval of
either the Mayor, the President of the Council, or in their absence,
the chair of the responsible Council Committee (e.g. Public Safety,
Administration, Public Works/Health and Sanitation or Finance) should
such committees be established by Ordinance and such Chairmanships
be duly appointed by resolution of the Mayor and Council.
[Amended 2-19-2014 by Em. Ord. No. 02-14]
(8)
Authority for disposal of surplus property. The personal property
of the Town shall be reviewed and inspected on a periodic basis to
determine if any such property is surplus, obsolete, or unsuitable
for a public purpose. A listing of any property determined to be surplus,
obsolete, or unsuitable shall be provided by the Mayor to the Council,
which shall authorize its disposal by resolution.
(9)
Method
of disposal. Once authorized, the Mayor may dispose of personal property
by trade in or exchange for other needed goods, or, after notice in
the Town newsletter or in a newspaper of general circulation in the
area, by a sealed bid process, or by public auction. If the value
of the property to be sold at one time is less than $1,500 as determined
by Council, then bids may be solicited by any or all of the following
methods: consignment, direct mail request to prospective buyers; by
telephone; by advertisement in a newspaper of general circulation,
by publication in the Town newsletter, the Town website, or on the
Town bulletin board, and/or on the public access channel. Sales of
surplus personal property shall be based, whenever possible, upon
at least three competitive bids, quotes or offers. In lieu of sale,
the Council may convey title to an item at no cost or by donation
to a governmental or non-profit organization.
(10)
Conditions of disposal. All items shall be offered "as is," "where-is"
with no warranty or other guarantee as to its condition or fitness
for use. All sales must be final. A purchaser or disappointed bidder
shall not have any recourse against the Town or any of its officers,
employees or agents. The Mayor may recycle or otherwise dispose of
property when the Mayor determines the value and condition of the
property does not warrant the cost of a sale. No official, employee
or volunteer, whether full-time, part-time, temporary, or unpaid,
or any member of the official’s, employee’s or volunteer’s
immediate family, or any person acting on said person’s behalf
may participate in public or private sales if the official, employee
or volunteer has had any role in declaring the item surplus, processing
the item or related paperwork, or offering it for sale.
(b)
Accurate posting. All financial transactions are to be timely posted
and accurate. The Financial Officer is responsible for assuring that
posting errors or adjustments are documented and supported by a description
indicating the need for such adjustments.
(c)
Cash management.
(1)
All bank account statements must be reconciled to the general ledger
monthly by the Financial Officer.
(2)
All inactive bank accounts are to be closed.
(3)
The Town receptionist will open the mail, make a control list of
all receipts using the financial form approved by the Council for
this purpose (i.e., Cash Receipts Form), and restrictively endorse
all items received as "for deposit only."
[Amended 2-19-2014 by Em. Ord. No. 02-14]
(4)
The cash receipts will then be given to the Financial Officer for
further processing and deposit to the bank daily.
(5)
Following all bank deposits, the Police Department Clerk will compare
the deposit slips to the control list using the financial form approved
by the Council for this purpose to ensure that all funds reflected
on the control list have been deposited.
(d)
Personal property taxes. The Financial Officer is responsible for
the timely billing of business personal property taxes. The Financial
Officer shall provide a monthly report to the President of the Council
of the filings sent out.
[Amended 2-19-2014 by Em. Ord. No. 02-14]
(e)
Cash disbursements. No checks shall be issued without adequate supporting
documentation, including the pre-certified requisition form and/or
invoice using the financial form approved by the Council for this
purpose.
(f)
Check and credit card control.
(1)
Blank checks and credit cards shall be secured in the Police Department's
property safe at all times.
(2)
The Check and Credit Card Pickup Form using the financial form approved
by the Council for this purpose shall be used to request checks or
credit cards from the Police Department.
(3)
Check and credit card requests from the Police Department shall be
pre-certified by the Financial Officer and by the Chair of the Finance
Committee or the Chair of the Council.
(4)
All credit cards and any unused checks shall be returned to the Police
Department's property safe daily.
(g)
Payroll. The Town Administrator shall review all payroll postings
biweekly as follows:
[Amended 1-3-2012 by Em. Ord. No. 01-12]
(1)
Compensatory
time is not budgeted nor is it authorized for payment, except by resolution
of Council. All compensatory time shall be agreed upon in writing
by the employer and employee.
(2)
Police
officers' regular work schedules shall be adjusted to accommodate
court dates to the maximum extent possible.
(3)
Overtime
requests must be approved in advance by the employee's supervisor
and the Town Administrator in consultation with the Financial Officer.
(4)
Reports
from outside payroll services shall be reviewed to ensure that they
are accurate and reflect correct hourly pay rates, that appropriate
taxes and other authorized withholdings are withheld, and that they
are consistent with budget appropriations.
(5)
Payroll
adjustments shall be made at the next pay period.
(h)
Once 75% of any appropriation is expended at any time before the
end of the fiscal year's third quarter, no further charges can be
made, and the Council must be notified immediately.
(i)
All records are to be saved for audit.
(a)
The Town Treasurer is hereby directed to prepare under the supervision
of the Mayor and to submit through the Mayor quarterly financial reports
to the Town Council in writing, due within 15 days of the first day
of January, April, July, and October. The reports shall provide estimates
of the revenues and expenses in the categories provided in the budget
resolution effective for the three months preceding the issuance of
the quarterly report and for the year-to-date, showing the variances
of those items to the budgeted amounts. Furthermore, the quarterly
report will include a statement of the estimated assets and liabilities
of the Town as of the last day of the quarter being reported.
(b)
Failure of the Mayor to submit a quarterly financial report to the
Council shall result in a fine, not to exceed $100 charged to the
Mayor as provided in Article 12 (Anti-Corruption Act).
(a)
Standards to be used for quarterly financial report preparation.
The intent of this report is to provide information on the status
of the Town's revenues, expenses and assets for current decision-making
purposes and estimates are acceptable where final data are not available.
Revenues and expenses categories should be reported consistent with
the current fiscal year's budget categories, and assets should include
total balances in both the general and special revenue (highway) funds
for the following items: checking, savings, certificate of deposit
and similar accounts, accounts receivable and accounts payable.
(b)
Publication of the quarterly financial report. The Quarterly Financial
Report, upon submission to the Council, shall be a publicly available
document open for inspection and copying at the Municipal Building
and a notice of its availability shall be inserted in the Town Newsletter,
or other newspaper of general circulation within 10 days of submission
to the Council. The report shall contain any disclaimers by the Treasurer
related to the estimates contained therein and other qualifying factors
related to the preparation of the report.
(c)
Other reports. This Article shall not prohibit the Treasurer from
preparing other financial reports as requested by the Mayor or the
Town Council.
[Added 9-6-2011 by Em. Ord. No. 15-11]
(a)
Consistent
with the Town Charter, the Town shall obtain a bond to insure the
faithful performance of duty by the Treasurer from a corporate surety
having a limit of insurance of not less than $50,000 and a deductible
amount not to exceed $1,000.
(b)
The Town
may obtain a bond to insure the faithful performance of duty by any
other officers or employees from a corporate surety having a limit
of insurance and a deductible amount established by the Town Council
by resolution or by an approved motion recorded in the journal.
[Added 10-10-2012 by Ord. No. 10-12]
(a)
There
is established a sub-fund or line item in the general fund of the
Town of Forest Heights to be known as the "Rainy Day Fund." The purpose
of this undesignated, unallocated or contingency general fund balance
is to alleviate significant unanticipated budget shortfalls and to
ensure the orderly provision of services to residents.
(b)
The Rainy
Day Fund shall be no less than 2% of the fiscal year 2014 budget or
$75,000, whichever amount is smaller, and each fiscal year thereafter
shall increase by a percentage equal to the percentage increase in
the Consumer Price Index for all urban consumers, Washington-Baltimore,
DC-MD-VA-WV (Nov. 1996 = 100) (CPI-U) from January of the second previous
fiscal year to January of the prior fiscal year.
(c)
The Rainy
Day Fund may be supported by a budget appropriation from any tax or
other revenue source not restricted by law, or also may be supported
by a transfer from other unexpended or decreased funds made available
by ordinance or formal resolution. The previous year’s balance
for the Fund shall become the beginning fund balance in the next annual
budget for this sub-fund.
(d)
Total
monies in the Rainy Day Fund shall not exceed 18% of the total general
fund revenues, as stated in the Town’s most recent independent
annual audit. To the extent that the Rainy Day Fund Balance exceeds
the target amount established pursuant to this section, the Council
shall draw upon the fund balance to appropriate monies for any lawful
governmental purpose. To the extent that the Rainy Day Fund balance
does not exceed the target amount established pursuant to this section,
the Council may draw upon the fund balance only to provide pay-as-you-go
financing for capital projects or for other one-time capital items,
provided that the Council enacts a resolution with at least five votes
of the full Council authorizing such appropriation.
