A.
Whereas, N.J.S.A. 40A:5-16 requires that the governing body of any local unit shall not pay out its monies unless:
(1)
The person claiming or receiving payment first presents a detailed bill of items or demand, specifying particularly how the bill or demand is made up (the "Invoice"), with the certification of the party claiming payment that the bill or demand is correct (the "Claimant Certification"); and
(2)
The payment carries a written or electronic certification of some officer or duly designated employee of the local unit having knowledge of the facts that the goods have been received by, or the services rendered to, the local unit, i.e. the certification of the user department; and
B.
Whereas, N.J.S.A. 40A:5-16(c) and N.J.A.C. 5:30-9A.6 give local units discretion to not require a Claimant Certification by enacting a standard policy by resolution or ordinance, as appropriate, for vendors or claimants who do not provide such Claimant Certification as part of their normal course of business; and
C.
Whereas, generally vendors do not provide such Claimant Certification as part of their normal course of business which has created unnecessary confusion and delay in processing claims for payment; and
D.
Whereas, the Claimant Certification cannot be waived for reimbursement of employee expenses or for services provided exclusively and entirely by an individual, as per N.J.S.A. 40A:5-16(c)(3), N.J.A.C. 5:30-9A.6(d) and Local Finance Notice 2018-13; and
E.
Whereas, the Township Chief Financial Officer ("CFO") has communicated internal accounting controls as follows and has determined same to be sufficient to avoid errors and fraud in the processing of claims for payment:
(1)
No goods or services should be procured without a valid purchase order containing the signature of the Township Qualified Purchasing Agent ("QPA");
(2)
Except for contract items approved by resolution of the Township Council, all procurement transactions must originate by way of a requisition in the Township's finance system;
(3)
In processing purchase orders from requisitions, Purchase Office staff review for:
(4)
Questions regarding requisitions are reviewed with user departments. As necessary, certain issues are escalated to review by the Township's QPA;
(5)
Requisitions that exceed $3,000 are forwarded to the Township's QPA for review before processing;
(6)
All transactions potentially in excess of $17,500 are reviewed and evaluated by the Township QPA for complaint with the Pay-to-Play law;
(7)
Requisitions that exceed 15% of the bid threshold (currently $6,600) require at least two quotes (three quotes are preferred). Quotes obtained by user departments are attached to the requisition (digital/scanned copy). Purchasing Office staff review all quotes when needed;
(8)
Properly completed requisitions are converted to purchase orders by the QPA or designated Purchasing Office staff;
(10)
The Township's separate department supervisory level employees are actively engaged in preparing and monitoring their annual budgets. Finance Office assistance is available for departments. Regular reviews are performed to assure that activity posted to the department's budget, such as purchase orders and cash payments, is valid, proper and duly authorized;
(11)
Claims for payment are submitted to the Accounts Payable office by each department. Invoices are reviewed to verify that work was performed as authorized and that prices are consistent with original proposals;
(12)
Invoices attached to the purchase order are submitted to the Accounts Payable office for payment. A responsible person with direct knowledge that the work was performed or goods were received signs the purchase order to authorize payment;
(13)
In processing purchase orders (and invoices) for payment, Accounts Payable office staff review for:
(a)
Certification by a responsible person attesting that services were performed or goods delivered;
(b)
No goods or services should be procured without a valid purchase order containing the signature of the Township's QPA;
(c)
Proper accounting treatment (proper budget account and proper budget year);
(d)
Compliance with any relevant Township policy; and
(e)
Reasonable business purpose; and
(14)
Questions regarding purchase orders/invoices are reviewed with user departments. As necessary certain issues are escalated to review by the Township Administrator, CFO, and/or QPA;
(15)
In preparing the annual Township budget, the Township Administrator and CFO review trends and query detail as considered necessary. All unusual items are researched.