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�`rw i� � r�� -:: .� Mr, Neal Beets September 20,2004 Page4of5 the purpose of the disbursementand fund out of which it will be made. There is no resolution or motion for a disbursementwhen there is a delegation of a city council's authorityto pay certain claims under section 412.271, subdivision 8. Therefore,when payment is made by a city administrative official to whom a city council has delegated certainpurchasin�a��h�rir�, that requirement of section 412.741 is of no affect unless there is an order for the �i�. 2f there is an order for a disbursement,then section 412.271 requiresthat the order state the purpose of the disbursementand the � out of which it is to be paid. The General Purchasing Policy adopted by the Roseville City Council does not require purchase orders for purchases less than $2,000 and does not require Council approval. Therefore,there is no �tatutory requirementthat there be a purpose stated or a fund designated for purchases less than $2,000. The City PurchasingPolicy does require a departmenthead, or designee, and the Finance Directorto sign a purchase order forpurchases $2,000 •$5,000. We understand that it is the City's practice, on purchase orders for purchases $2,000 -$5,000, to state a purpose for the expense and designate a� from which the payment will be made. This complies with the requirements of section 412.741. We believe that the City's purchasingprocedures, as stated above, comply with Minnesota Statute section 412.741 as well as section 412.241, The City states a purpose for disbursements and a fipnd fran which the claim is to be paid when a resolution, motion or order is required for a disbursement. 1�innesota Statute 471.'iR2 In part, the question raised about the City's compliance with State statutes relatingto the disbursement of funds stems from City employee use of purchasing cards. For that reason, we address section 471382 entitled"Credit cards." This statute allows a city to authorize an employee to use a credit card when making a purchase on behalf of the city. The employee is personally liable for purchases that are not approved by the city council. We understandthat the City Council first approved employee use of purchasing cards in 1997. In accordance with statute section 471382, the City has adopted a PurchasingCard User's Manual, which is enclosed. This manual specifiesthat all purchases must be for City related purposes, are subject to the review of the employee's supervisor, and that the department head is ultimately responsible for proper use. A City purchasing card cannot be used for any single purchase over $5,000 (the same limit adopted by the Council for City Manager purchasing authority and the limit of delegation of authority for payment without Council approval) and when the receipts from card purchases are forwarded to the Finance � To the extent this may seem illogical, it is imporfant to note that section412.741 was enacted ir► 1949 and section 412.271,subdivision 8 was enacted m 1993. The rules of statutory interpretationstate that when the provisions of two statubes are irreconcilable,fhe provisionadopted later m time prevails. Minn. Stat §645.26, subd. 4.