[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.
[Adopted 11-3-1976]
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.
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.
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.
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.
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.
[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.
[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.
[Adopted 12-29-1997 by Ord. No. 0-13-97]
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.
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.
A.
The South Harrison Township Committee shall establish
a central purchasing system (CPS) by resolution setting forth the
following:
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.
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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.
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(Date)
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(Signature)
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(Official Position)
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(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.
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(Signature)
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(Title)
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(3)
Finance Office approval:
I certify there is adequate nonobligated funds
to cover this purchase.
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(Date)
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(Signature)
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(4)
Invoices, delivery slips received and checked:
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(Date)
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(Signature)
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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.
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.