2004_1018_Packet - Laserfiche WebLink

Home

� � � � - ' � Memo To: Mayor and City Council Neal Beets, City Manager f From: Chris Miller, Fina�ce Direc � Date: October 18,2004 Re: Discussion on the City's Purchasing Function Date: 10118/04 Item: 7. Purchasing & Disbursements Policies & Procedures Introduction During the past few months, the Council has expressed inquiries regarding the City's purchasing function and internal purchasing controls. The inquiries have generally focused on: 1) Whether the City's purchasing function complies with State Statute and local ordinance 2) Whether purchasing internal controls and audit procedures are sufficient 3) Whether the Council pre-approvedpurchasing amount limits are set appropriately 4) Whether the use af purchasing cards is appropriate Each of these concerns is addressed in detail below. Purchasing Compliance At the September 27, 2004 Council Meeting, the City Attorney provided an opinion as to whether the City's purchasing function complies with State Statute and local ordinance. A copy of the opinion is included in Attachment A. After reviewing the City's purchasing practices and procedures, the City Attorney concluded that the City's purchasing fumction complies with all applicable State Statutes and local ordinances. Purchasing Controls and Audit Procedures In a Statutory Plan B form of government, the City Manager is designated as the City's Purchasing Agent. As the Purchasing Agent, the City Manager has the authority to delegate the purchasing function to other employees. To maximize the effectiveness and efficiency of the City's purchasing function, the City Manager has chosen to delegate the purchasing function to the Department LeveL This de-centralized approach places the responsibility and accountability with those persons that a�re most knowledgeable about the purchases being made. In the City's current purchasing function, the following controls and audit procedures are in place: