[HISTORY: Adopted by the Mayor and Council of the Borough of Andover 5-12-1997
by Ord. No. 326.[1] Amendments noted where applicable.]
The purpose of this chapter is:
As used in this chapter, the following terms shall have the meanings
indicated:
A purchase order for goods or services to be delivered or provided
at periodic intervals in cases where more favorable terms can be obtained
by entering into such an arrangement with a given customer or vendor (individual
purchases not to exceed $1,000).
A person designated by the Borough Council who is responsible for
certain financial duties as directed by the Borough Council; also, an employee
designated by the Borough Council to handle payment of claims, issue purchase
orders and operate the encumbering system.
Invoices, bills or vouchers of other persons seeking payment for
materials supplied or services rendered to the Borough of Andover.
A purchase order originated subsequent to the selection or delivery
of goods and services in cases where a purchase order in advance could not
be obtained due to emergent need.
An employee of the Borough of Andover designated by the Borough Council
by resolution as being in charge of a department.
The charging of other expense appropriations and ordinances when
purchase orders are issued and the charging of salary appropriations at January
1 of each year.
A document authorizing a vendor or other person to furnish goods
or services to the Borough of Andover and setting forth details as to quantity,
type, condition, price and terms of sale, etc.
A written record, usually submitted by a vendor or transportation
company, itemizing materials or services furnished to the Borough of Andover
which, when signed and dated by a duly authorized employee of Borough of Andover,
constitutes evidence of the receipt of goods or services.
A.
There is hereby established a system of purchase orders.
Purchase orders shall be on forms determined and approved by the Chief Financial
Officer and shall have three copies using three-color paper. A purchase order
must state the department and line item of the budget to be charged. Two copies
shall be delivered to the vendor, one of which the vendor shall utilize as
his voucher. The vendor must submit this voucher with an attached invoice.
Copy three will be maintained in the Finance Office.
B.
Insofar as possible, it is intended that all orders for
the purchase of material, equipment or supplies or for the furnishing of labor
or services, other than professional, shall be placed only after a properly
prepared written purchase order has been originated by the Finance Officer.
In addition, where purchases of materials or services do not lend to the giving
of specific orders prior to delivery or where, due to the need of obtaining
the items or services quickly, it is not possible to issue the purchase order
in the normal manner, such purchases will be exempt from the requirements
for written purchase orders in advance. In such instances, confirming purchase
orders will be prepared subsequent to delivery. Copies of confirming purchase
orders are to be routed in the same manner as regular purchase orders. Within
24 hours, a statement must be submitted, in writing, to the Finance Officer.
C.
No purchase order will or shall be issued unless the
department head or his/her designee making the purchase shall verify that
the purchase is proper, has been authorized and the funds are available, unencumbered,
in the budget for such purpose and the amount to be paid is fair and reasonable.
A.
It shall be the duty of the Chief Financial Officer/Treasurer
to purchase or contract for the purchase of all supplies, materials, equipment,
various types of work and contractual services needed by any municipal department,
board or commission ("using agency") in accordance with state law and such
procedures, rules and regulations prescribed by the Chief Financial Officer
for the internal management and operation of the purchasing system and approved
by the Borough Council.
B.
Except as herein provided, it shall be unlawful for any
officer or employee to order or purchase any supplies or make any contract
other than through the Finance Department. Any contracts or purchases made
contrary to the established procedures shall not be approved and the municipality
will not be bound thereby.
C.
In addition to the authority and duties conferred above,
the Chief Financial Officer/Treasurer shall:
(1)
Under the Borough Council's direction, establish
and enforce rules and regulations setting forth procedures and forms to be
used in the purchase of all supplies and contractual services for any department.
(2)
Discourage collusive bidding and endeavor to obtain as
full and open competition as possible in all purchases.
(3)
Procure all allowable exemptions, discounts and price
reductions.
(4)
Make use of cooperative pricing agreements.
D.
Every department or using agency head shall file detailed
requisitions and estimates of his requirements for supplies and contractual
services in the time and manner prescribed by the Chief Financial Officer.
E.
The Chief Financial Officer/Treasurer shall examine such
requisitions and have the authority to revise them as to quantity, quality
or price after consultation with the head of the requesting using agency and
the Borough Council.
F.
Any purchase order or contract in which any municipal
officer or employee is financially interested, directly or indirectly, shall
be void.
G.
The Chief Financial Officer/Treasurer and every officer
and employee of the municipality and its agencies are expressly prohibited
from soliciting or accepting, directly or indirectly, from any person, company,
firm or corporation to which any purchase order or contract is or might be
awarded any rebate, gift, money or anything of value whatsoever, except where
given for the use and benefit of the municipality.
H.
The Chief Financial Officer/Treasurer shall review the
proposals, assisted as necessary by the using agency, and recommend appropriate
action to the Borough Council for all contracts in excess of the local bidding
threshold for that year.
I.
All purchases of supplies and contractual services of
less than the local bidding threshold shall be made in the open market, in
accordance with N.J.S.A. 40A:11-6.1, without newspaper advertisement or use
of formal sealed bids. The Borough Council shall prescribe the procedures
to be followed in making such purchases.
J.
No purchase may be authorized or obligation incurred
unless it first bears the signature of the Chief Financial Officer certifying
that sufficient appropriated funds are available and have been reserved to
pay in full the value of the purchase. Such classification shall be in the
form and manner prescribed by the Chief Financial Officer.
A.
It shall be the responsibility of the department head
to advise the Chief Financial Officer/Treasurer of any materials or services
required in sufficient time to be able to place orders in the most economical
and reasonable manner. Repetitive purchases of the same item at frequent intervals
should be covered by blanket purchase order.
B.
When materials or services have been received, the department
head shall forward the receiving report to the Chief Financial Officer/Treasurer
and shall indicate by signature and date that the materials or services have
been received in a satisfactory condition or manner. If goods or services
received are not satisfactory, the department head shall so advise the supplier
or transportation company and attempt to obtain replacement or satisfaction.
The department head shall also note the receiving report accordingly.
C.
All vouchers to be paid in any given month must be in
the office of the Finance Department one week prior to the last Tuesday of
the month.
A.
The Chief Financial Officer/Treasurer shall maintain
a file of open purchase orders and, upon receipt of claims from vendors and
associated receiving reports duly certified by an authorized employee of Borough
of Andover, shall determine whether the claims are correct by verifying totals,
checking extensions, computing discounts allowed, deleting sales tax and verifying
receipt of goods or services. Each correct claim, along with a properly certified
voucher from the vendor, the receiving report and other supporting documents,
should be signed by the Chief Financial Officer.
B.
After the receipt of a properly authorized voucher and
associated supporting documents, the Chief Financial Officer shall submit
all vouchers to be approved each month for payment by the Borough Council.
The Chief Financial Officer shall not submit for payment any vouchers for
which the funds have not been provided in the budget.
C.
The monthly itemized list of all vouchers shall be included
in the minutes of the Borough Council by resolution, and vouchers shall not
be paid until after the Borough Council approves this resolution.
A.
The resolution approving payment of vouchers submitted
by the Chief Financial Officer shall be submitted to the Council for its consideration
at the first public meeting of the month.
B.
In the event that any voucher is disapproved by the Borough
Council, it shall be marked disapproved, and the proper totals on the list
of vouchers and the resolution shall be changed accordingly. The resolution
must specify the reason for disapproval.
C.
All checks will be signed by the Mayor, the Borough Clerk/Administrator
and the Chief Financial Officer.
All vendors should be notified, in writing, that the borough will not
honor any purchase without a purchase order. Borough employees and officers
should be put on notice that they will be personally liable for any orders
placed without proper approvals.
A.
In order to meet the borough's financial obligations
in a timely manner between regular Council meetings pursuant to N.J.S.A. 40A:5-17
the Chief Financial Officer is hereby appointed the Certifying and Approval
Officer (CAO).
B.
The CAO shall be responsible to review all claims presented
to the borough to ascertain the existence of proper and sufficient appropriating
for payments to be made and to determine that there is legal authority for
the payment of the claim which shall include evidence of proper action of
an authorized person who has authority to order the goods or services and
the authority to incur the expense thereof. The CAO shall, prior to approval
of any and all claims presented to the borough ensure that all payment vouchers
carry a certification of some officer or duly designated employee of the borough
having knowledge of the facts that the goods have been received by the borough
or the services rendered to the borough.
C.
If the CAO deems a claim proper for approval, the CAO
shall approve payment by carrying said approval on the claim voucher and said
approved voucher shall be presented with the check paying the same to the
Mayor and the Borough Clerk for execution, which said check shall be countersigned
by the Chief Financial Officer.
D.
The approving authority of the CAO shall be limited to
a maximum total approval authority of $1,000 per month for all claims.
E.
At the next regular Council meeting all approved or disapproved
claims and pending claims shall be presented to the governing body for its
approval or disapproval.
A.
The Council may, by resolution, grant to chairpersons
of council committees spending authority to obligate the borough for goods
and services necessary to ensure the proper operation of the committees. The
chairperson of any such council committee must first ascertain from the Chief
Financial Officer, prior to authorizing or incurring said expenditure, that
a proper and sufficient appropriation exists for said expenditure. All claims
resulting from the exercise of the authority granted herein shall be processed
in accordance with the provisions of this chapter, and payment shall be subject
to the final approval of the Borough Council at its next regular meeting.
