PURCHASING AND FISCAL POLICY

Purchasing and Fiscal Procedures

I.   Purpose/Objective

 The purchasing and fiscal policies guidelines are to assure that the Village of Lake Linden maintains lawful, prudent, and ethical methods to procure or dispose of supplies,       materials, equipment, contract services, and construction projects for the Village.

II.  Definitions

A. Designated person – Any employee or officer of the Village of Lake Linden authorized by the Village Council on accompanying Authorization to Commit Village Funds form within the limits proscribed on the form.

II.  Purchasing

      A.   All purchases require that the appropriate funds are budgeted and sufficient funds

             are available at the time of purchase.

      B.   No employee or any person shall make purchases or commit Village funds   

            without authorization.

      C.   All purchases that require a check drawn on Village funds shall have two signatures and those signatories shall be authorized by the Village Council.

      D.   All designated persons making purchases or presenting claims less than $20.00 are encouraged to seek reimbursement from the appropriate petty cash fund.

      E.   Designated persons are authorized to make purchases of goods and services up to $100.00 provided that those purchases do not exceed budgeted amounts pre-approved by the Village Council.

      F.   The Village Clerk shall be authorized to make/approve purchases of goods and services up to $250.00 when, in his/her judgment, the purchase is necessary to facilitate efficient office or maintenance functions and provided the funds do not exceed budgeted amounts pre-approved by the Village Council.

      G.   The Village Clerk, when the Village President or President Pro-Tem cannot, through diligent effort, be contacted and in the face of a situation deemed an emergency wherein expenditures are necessary to mitigate, alleviate or resolve the crisis at hand, shall have emergency authorization to commit up to $1,000 of Village funds toward that purpose. Enacting this authorization shall prompt an investigation and subsequent decision by the Village Council on the necessity of the expenditure.

       H.   Expenditures greater than those listed above and within a specific cost center of a  fund budget require the verbal approval of the Village President and/or the Finance Committee Chairperson.

      I.   Expenditures greater than those listed above that require transfers among cost

             centers of a fund budget must be approved by the Finance Committee in advance         

             of any purchase or commitment of funds.

      J.   Expenditures greater than what the Village has budgeted within its various fund

             budgets requires the Village Council approval in advance of any purchase or

             commitment of funds.

     K.   Progressive or repeated purchasing from the same vendor is reviewed for 

             processing at the anticipated annual amount purchased.

     L.   The Village Clerk shall report to Council the details of all purchases of goods

            and services or commitment of funds in excess of $2,000.00 that exceed the scope

            of the line items of the approved budget.

M. The Village Clerk may impose a spending freeze on all discretionary purchasing if instructed by Council. This spending freeze must be in writing to all designated persons.

III. Fiscal Policies

A. All purchases must have an accompanying receipt or invoice prior to issuing a

check.

B. All purchases above $500.00 must have an accompanying detailed receipt or  

invoice prior to issuing a check.

     C.   All planned expenditures must adhere to provisions contained in Ordinance Series 1000, Chapter 1100, Administration, with respect to bidding and acceptance procedures.

      D.   It is the intent of the Village to engage in the settlement of accounts payable on

the day following each monthly meeting of the Village Council. Recurring expenses such as utility payments, and other expenses outlined in the Village Prepaid Expense policy, can be settled upon receipt to the Village Treasurer.

     E.   Employee reimbursements, except those reimbursed from a petty cash fund, shall be paid as soon as practical for expenses incurred during pre-approved, Village-related errands or projects.

VI.  Performance Bonds

   A.   The Village shall have the authority to require a performance bond before

          entering a contract in an amount necessary to protect the interests of the Village.

VII. Co-operative Purchasing

   A.   The Village shall have the authority to join with other units of government in a co-

          operative purchasing plan when the best interest of the Village would be served.

VIII.     Legal and Professional Services

A. Only the Village President or the Village Clerk is authorized to incur legal or  professional service expenses that are not otherwise already contracted for execution and only when they fall within the proscribed limits set forth by the approved budget.

[Posted on the website of the Village of Lake Linden]