Township of South Harrison, NJ Chapter 7 Claims Approval

[HISTORY: Adopted by the Township Committee of the Township of South Harrison as indicated in article histories. Amendments noted where applicable.]

GENERAL REFERENCES

Contracts — See Ch. 8.

Article I Claims

[Adopted 11-3-1976]

§ 7-1 Submission of voucher.

All financial claims against South Harrison Township shall be submitted on voucher form supplied by the Municipal Clerk. Any supporting data shall be attached directly to the voucher.

§ 7-2 Deadline for submission of voucher.

Vouchers shall be signed, dated and submitted no later than 10 days prior to the Township Committee meeting where they are to be considered. Vouchers shall be submitted to the Municipal Clerk or Chief Financial Officer.

§ 7-3 Endorsement by department heads.

Department heads shall endorse vouchers for approval after carefully inspecting the materials and services received. The absence of endorsement shall be considered rejection by the department head. Where there is no department head, the Chair of the appropriate subcommittee of the Township Committee shall be considered the department head for purposes of this article.

§ 7-4 Review of vouchers; approval for payment.

Vouchers shall be reviewed by the Township Finance Committee at least one week before the Township Committee meeting where they are to be considered. Voucher screening and endorsement shall be completed at this meeting. Three Finance Committee members' signatures are required for approval. However, the Township Committee may approve payment of a voucher despite rejection or failure by the Finance Committee to approve, but only by an affirmative vote by a majority of the full Township Committee.

§ 7-5 Consideration of vouchers monthly; vote.

The Township Committee, during its regular monthly meeting, shall consider each properly submitted and screened voucher. Approval or rejection shall be determined by majority vote.

§ 7-6 Issuance and signing of checks.

[Amended 10-10-2007 by Ord. No. 0-07-21; 10-12-2011 by Ord. No. 0-11-11]

Payments shall be made by check and charged against the appropriate Township account. Checks are to be signed by the Chief Financial Officer, Clerk and Mayor. The Township Chief Financial Officer is responsible for the disbursement and accounting mechanics.

§ 7-7 Appeal of rejected vouchers.

[Amended 12-27-2000 by Ord. No. 0-00-04]

Rejected vouchers may be appealed directly to department heads, Finance Committee and/or the Township Committee. A rejection appeal shall be submitted in writing within 30 days after rejection.

§ 7-8 Waiver of timing requirements.

Timing requirements described in §§ 7-2, 7-4 and 7-5 of this article can be altered or waived by Township Committee decision if warranted by unusual circumstances.

Article II Procedures

[Adopted 12-29-1997 by Ord. No. 0-13-97]

§ 7-9 Implementation of statutory requirements.

A. The State of New Jersey per N.J.S.A. 40A:5-17a requires an ordinance be adopted to cover the approval and payment of claims.

B. The State of New Jersey, Division of Local Government Services per Technical Accounting Directive No. 85-1 requires implementation and maintenance of an Encumbrance Accounting System.

C. This article sets forth the procedures to implement those requirements in the Township of South Harrison, County of Gloucester, State of New Jersey.

§ 7-10 Encumbrance system.

A. A South Harrison Township central purchasing system (CPS) is the basis for an efficient and controlled encumbrance/disbursement accounting system. In order to ensure the annual temporary and final budget expenditures do not exceed the amounts set forth in the line item detail of those documents, the cost or estimated cost of goods and/or services shall be determined before a Township obligation to purchase is made.

B. To encumber the budget is "to burden with obligations" the individual budget line item account with the cost or estimated cost of a purchase at the time an order of purchase is placed. This obligation shall reserve an amount equal to the cost or estimated cost of the purchase being made to reduce the account balance to ensure an adequate balance is available for future purchases/charges.

C. Procedure.

(1) Department head determines a need to purchase goods and/or services and obtains a cost or estimated cost.

(2) Department head shall determine that the purchase cost will not exceed his/her authority and the departments nonobligated budget balance.

(3) If the CPS is in operation the department head writes up a voucher/purchase order and submits to CPS and Finance Office for approval and purchase. Otherwise department head notifies Finance Office direct to ensure there is enough nonobligated budget balance to pay for the purchase.

(4) Finance Office shall encumber the department line item budget for the cost or the estimated cost of the purchase.

(5) If the purchase is approved the Finance Office, the CPS representative or department head makes the purchase.

(6) When the invoice for the purchase is received, authorized, approved and paid, the Finance Office shall liquidate the encumbrance and charge the appropriate budget for the expenditure.

§ 7-11 Central purchasing system.

A. The South Harrison Township Committee shall establish a central purchasing system (CPS) by resolution setting forth the following:

(1) Name of person or persons to issue purchase orders.

(2) Form and content of purchase order that is not otherwise set forth in this article.

(3) Once established by resolution, this Section 1 of the CPS shall remain from year to year unless amended by resolution of the Township Committee.

B. The Chief Finance Officer (CFO) or Municipal Finance Officer (MFO) shall be central to this CPS and must approve purchase orders before an obligation to purchase is made.

C. Some of the basic functions and responsibilities of a CPS in order to promote efficient purchasing are:

(1) The CPS shall strive to fulfill the Township/department requirements as dictated/directed by the Township Committee. Establish procedures/guidelines in writing for Township Committee approval by resolution.

(2) The CPS should work with the various Township professionals (Engineer, Solicitor, Construction Code Official, etc.), department heads and other resources to develop effective quality, quantity and cost controls through technical specifications and inspection.

(3) The CPS should attempt to anticipate, understand and be knowledgeable of various department needs by keeping close contact with key department people, outside sources and others.

(4) The CPS needs to continually foster and pursue procedures to encourage competition, the product quality and obtain a good competitive price.

(5) The CPS should consistently plan ahead for future needs of materials, supplies and services.

D. All purchases for good and/or services that exceed $2,625 that are not covered by a State of New Jersey purchase contract, County of Gloucester purchase agreement or other approved purchase agreement shall require at least three informal quotes before purchase is made. If competitive quotes cannot be obtained, then the person making the purchase must state the reason in writing. All quotes obtained or reasons shall be attached to the Township voucher/purchase order before it is presented to the CFO/MFO for Township Committee approval. Note: Splitting up of a purchase in order to avoid exceeding the $2,625 and formal bid requirements is not permitted.

[Amended 10-12-2011 by Ord. No. 0-11-11]

E. All purchases by departments are limited to an amount not to exceed the nonobligated balance in that department's line item budget.

F. Major purchases ($5,250 up to the mandated formal bid procedure amount) must have prior Township Committee approval unless it was contained in the department’s written annual budget request and approved by the Township Committee for insertion into the final adopted annual budget. (Note under Subsection D also applies here).

[Amended 10-12-2011 by Ord. No. 0-11-11]

(1) Until such time as a CPS is established and/or authority to make purchases is removed for certain Township department heads by the Township Committee, the head or acting head of the below-listed South Harrison Township departments may make purchases under the requirements set forth in this article.

(a) Municipal Clerk.

(b) Municipal Registrar.

(c) Municipal Finance Officer.

(d) Tax Assessor.

(e) Tax Collector.

(f) Municipal Court Administrator.

(g) *Planning/Zoning Board Secretary.

(h) *Environmental Commission Designated Secretary.

(i) Police Chief.

(j) Construction Code Official.

(k) *Emergency Management Coordinator.

(l) Road Supervisor.

(m) *Board of Health Secretary.

(n) Welfare Director.

(o) *Parks an Recreation Chair.

(p) *Various grant program chairs/directors appointed by Township Committee resolution.

(2) The Township Committee may authorize by resolution additional positions or changes to the above lists on an as-needed basis.

*Where an appointed standing committee exists, that committee shall indicate by majority vote of its members that the goods and/or services have been received and are approved for payment by a township officers certification signature of its Chair or Vice Chair on the township voucher/purchase order.

G. Vouchers/purchase orders shall contain the below certification statements for signature.

(1) Claimant certification and declaration:

I do solemnly declare and certify under the penalties of the law that the within bill is correct in all its particulars; that the articles have been furnished or services rendered as stated therein; that no bonus has been given or resolved by any person or persons within the knowledge of this claimant in connection with the above claim; that the amount therein stated is justly due and owing; and that the amount charged is a reasonable one.

	(Date)	(Signature)	(Official Position)

(2) Township officer's certification:

I, having knowledge of the facts, certify that the materials and supplies have been received or the services rendered; said certification being based on signed delivery slips or other reasonable procedures.

	(Signature)	(Title)

(3) Finance Office approval:

	I certify there is adequate nonobligated funds to cover this purchase.
	(Date)	(Signature)

(4) Invoices, delivery slips received and checked:

	(Date)	(Signature)

H. Vouchers/purchase orders formats shall (after CPS is established) shall be developed by the Municipal Clerk, Municipal Finance Officer and a representative of CPS with final approval by resolution of the Township Committee.

I. All contracts and written agreements must be approved by resolution of the Township Committee and signed by the South Harrison Township Mayor, Deputy Mayor, Municipal Clerk when required or other designated township appointed official(s).

J. Before approval of any contract or written agreement which involves payment of township funds, the CFO/MFO must certify the availability of nonobligated funds to pay for the costs covered by the contract or agreement. The contract or agreement shall not be approved if funds are not available. A copy of the signed approved resolution, contract and agreement shall be given to the CFO/MFO for information and financial planning.

K. Department heads have authority to make purchases charged against their department but cannot make purchase obligations that are chargeable against another department.

§ 7-12 Voucher payment procedure.

A. All demands for payment of goods and/or services must be presented on a township-approved voucher.

B. The voucher must contain an original claimants certification signature.

C. The voucher must either contain the detail of goods and/or services provided showing the price of each and the total payment requested or the voucher can reference an attached invoice which contains the required details and prices.

D. The Municipal Clerk's office shall receive all invoices for payment and ensure payment requests are placed on the approved township voucher and contain all the required details and signatures before handing off to the Finance Department for payment approval preparation. The Township Committee may amend this section and Section E by resolution to transfer this responsibility to another section or department.

E. Once Subsection D has been completed the appropriate department heads shall be notified to certify (township officer's certification) by signature that the goods and/or services have been received as ordered, and the voucher is correct for payments.

F. Completed vouchers shall be delivered to the Finance Department no later than five full days prior to the date of the regular Township Committee meeting. Vouchers received by the Municipal Clerk after this cutoff time frame will be held for the following months business unless there is a good cause (as determined by the MFO) to include in current month's bills.

G. The Finance Department shall review all vouchers to ensure they are correct, totaled, signed as required, contain no sales tax, extensions are correct and are not a duplicate payment request. The Finance Department shall place the appropriate department charge on each voucher, batch up all vouchers received from the same vendor, assign a voucher number (number of vouchers followed by the year -001-97 with number running continually for the entire year) for each batch and place the check number and date paid. MFO signature on the voucher indicates the voucher has been reviewed, checked and is ready for Township Committee approval.

H. All vouchers approved for payment by the Township Committee shall contain the signatures of a majority of the members of the Township Committee.

I. Payment for goods and/or services in advance shall be limited to special circumstances and be for an explained and reasonable exception such as an emergency, or a nonnegotiable purchase terms that requires an advance payment. This will be determined by the MFO.

J. Some vouchers may be approved after payment has been made under certain circumstances, as determined by the MFO, such as but not limited to the township payroll, late payment penalty, emergencies, payment timing and reimbursement payments such as escrow accounts.

K. After voucher payment is approved by the Township Committee, the Finance Department shall send checks out on a just-in-time basis (date payment is due) or within five days after approval, whichever is the latest payment due date.