HABERSHAM COUNTY BOARD OF COMMISSIONERS EXECUTIVE SUMMARY

Transcription

1 HABERSHAM COUNTY BOARD OF COMMISSIONERS EXECUTIVE SUMMARY SUBJECT: Amendment to Purchasing Policies & Procedures DATE: August 28, 2017 (X) RECOMMENDATION ( ) POLICY DISCUSSION BUDGET IFORMATION: ( ) STATUS REPORT ANNUAL- ( ) OTHER CAPITAL- COMMISSION ACTION REQUESTED ON: September 18, 2017 PURPOSE: To recommend amendments to the Habersham County Purchasing Policies & Procedures for review and approval. BACKGROUND / HISTORY: The current purchasing policy in use, effective December 14, 2015, contains thresholds in four tiers. We are requesting these thresholds be updated to aid in the efficiency of processing purchase orders, and other functions related to purchasing. Numerous routine purchases exceed the Finance Director s current approval limit of $3,000; examples include weekly gas usage, road materials, IT supplies, and Fleet repairs. Currently, these routine purchases exceeding the Finance Directors approval limit must be processed by the Finance Director and then approved by the County Manager. It is recommended that the Finance Director s approval limit be increased to $7,500. Additionally, the transaction limits for purchasing cards Section 2 (1) g establishes check request forms be completed for any transaction of $150 or more. It is recommended that this be amended to match the thresholds established in Section 1 (3) of Habersham County s Purchasing Policies and Procedures. FACTS AND ISSUES: The Purchasing Policies & Procedures have been in effect since December 14, They expanded upon the previous purchasing policy and separate purchasing card (p-card) policy and combined them into a single comprehensive document. The updated Purchasing Policies & Procedures also satisfied the minimum requirements of House Bill 192. This recommendation proposes increasing the approval threshold limit for the Finance Director only. Department Directors will continue to have authority to approve purchases up to $1,000; the Finance Director approval limit will increase from $3,000 to $7,500; and the County Manager approval would be required for purchases between $7,501 and $20,000. The threshold for purchases requiring a bid would remain in effect for purchases over $20,000. This recommendation includes updating Section 2 (1) g to match thresholds established in Section 1 (3) for purchasing card purchases and eliminate the requirement of a check request for

2 purchasing card purchases exceeding $ There are sample updated forms attached to this document. OPTIONS: 1) Approve amendments to Habersham County Purchasing Policies & Procedures. 2) Deny amendments to Habersham County Purchasing Policies & Procedures. 3) Commission defined alternative. RECOMMENDED SAMPLE MOTION: I move to approve amendments to Chapter 2 Article 4 Division 2 of the Code of Ordinances of Habersham County, Georgia, to provide for amended Purchasing Policies and Procedures; and to repeal conflicting ordinances. DEPARTMENT: Prepared by: Director ADMINISTRATIVE COMMENTS: County Manager DATE:

3 A RESOLUTION TO AMEND CHAPTER 2, SUB SECTION FINANCE, OF THE HABERSHAM COUNTY CODE OF ORDINANCES. WHEREAS, on December 14, 2015, the Habersham County Board of Commissioners adopted amendments to Chapter 2, sub section Finance, of the Habersham County Code of Ordinances; and, WHEREAS, since 2015 the Habersham County Financial Polices & Procedures provide guidance for the procurement of goods and services in compliance with procurement provisions of Habersham County.; and, WHEREAS, the Habersham County Board of Commissioners desires to amend its Financial Policies & Procedures, NOW THEREFORE, BE IT RESOLVED by the Habersham County Board of Commissioners duly assembled this 18 th day of September 2017 that the Financial Policies & Procedures are amended by: Section 1: Authority, Responsibilities, Thresholds, & Form Requirements; 3) Thresholds (amendments attached) Section 2: Purchases by a Purchasing Card (1) Practices g. (amendments attached) Adopted this 18 th day of September 2017 Chairman Victor Anderson Attest: Lindsay Underwood, County Clerk

4 1) Thresholds $0-$1000 $1,001-$7,500 $7,501-$20,000 $20,000 or > Check Request Purchase Purchase Order *See Purchases Order Requiring a Bid Documents Required Signed Invoice or receipt Signed Invoice or receipt Signed Invoice or receipt W9, EVerify Form (if not previously submitted) W9, EVerify Form (if not previously submitted) W9, EVerify Form (if not previously submitted) Approvals Required Quote Requirement Packing Slips/Work Orders (if applicable) Department Director IT, Fleet, or Building Maintenance as necessary Packing Slips/Work Orders (if applicable) Department Director and Finance Director IT, Fleet, or Building Maintenance as necessary n/a Three (3) internet/ / written quotes Packing Slips/Work Orders (if applicable) Department Director and County Manager IT, Fleet, or Building Maintenance as necessary Three (3) written or ed quotes *See Purchases Requiring a Bid *See Purchases Requiring a Bid

5 Section 2: Purchases by a Purchasing Card The purchasing card (P-Card) is a credit card issued by SunTrust Bank. It is a fast and flexible purchasing tool that provides an extremely efficient and effective method of purchasing and paying for items within the following parameters: The purchasing card enables cardholders to purchase non-restricted commodities directly from suppliers. Approved purchases can be completed with suppliers over the phone, in person, or over the internet. The purchasing card will be issued in the employee s name with Habersham County clearly indicated on the card. The purchasing card program provides a cost-efficient method for purchasing goods and services. Built-in card features make the program easy to control and reduces processing costs at all levels by minimizing the number of invoices and checks. Responsibilities, thresholds, and requirements detailed in these policies and procedures apply to purchases by purchase card but may follow different practices and processes due to their electronic nature. Employees and/or Elected Officials issued purchasing cards will sign a purchasing cardholder agreement prior to being issued a purchasing card. Purchasing cards are requested by Department Directors through a purchasing card request form. The purchasing card request form establishes a line limit for the cardholder. The following Elected Officials are authorized to use a card: Clerk of Court Commissioners Coroner Magistrate Judge Sheriff Tax Commissioner 1) Practices a. All purchases must be for official Habersham County use only. b. Authorized users shall use care to ensure that others do not have access to the card account number, expiration date and security code. c. Training and traveling expenses follow guidelines established in the Habersham County Employee Handbook & Policy Guidelines and Section 6 of the Habersham County Purchasing Policies & Procedures.

6 d. Cardholders must sign all receipts as their names appear on the front of their purchasing cards. e. No cash is accepted in lieu of credit on the cardholder s purchasing card under any circumstance. f. Only those officials and employees with a signed and approved purchasing cardholder agreement on file are authorized to use a purchasing card. g. Transaction limits for purchasing cards are subject to the thresholds established in the Habersham County Financial Polices & Procedures section 1: C. Thresholds. Furthermore, purchasing cards have a specified transaction limits listed in separate Appendix I. h. Receipts are required for all card transactions; see Section 2: Purchases by Purchasing Card 2) Process (g). All receipts and other documentation of purchases are public records and subject to the requirements of O.C.G.A et seq. i. The Board of Commissioners designates a Finance Specialist within the Finance Department as the County purchasing card and credit card administrator. The responsibilities of the Card Administrator include: 1. Manage County issued purchasing cards and credit cards. 2. Serve as the main point of contact for all County purchasing card and credit card issues. 3. Serve as liaison to elected officials authorized to use a purchasing card or credit card and their staff, as well as to the issuer of the purchasing card or credit card. 4. Provide training on card policies and procedures to elected officials authorized to use a purchasing card and their staff. 5. Develop internal procedures to ensure timely payment of cards. 6. Assist authorized elected officials to dispute transactions when necessary. 7. Establish internal procedures to ensure compliance with this ordinance, County procurement ordinance and policies, County purchasing card and credit card user agreements, applicable agreements with the business organization, financial institution, or any duly authorized agent of such organization or institution, issuing card, and state law, specifically, O.C.G.A and Document internal controls, audits and other measures to prevent and detect misuse or abuse on the cards. 9. Audit and reconcile transactions monthly. 10. Maintain records for at least seven years or as otherwise required by the County s record retention policy. 2) Process

7 a. Electronic approval 1. The Department Director approves electronically. 2. If a purchase order is required based on threshold that Purchase Order number is entered into ESP by cardholder or Department Card Administrator. 3. The Cardholder or Department Card Administrator retains picking tickets or packing slips until monthly statement is ready for processing. 4. Each transaction will have a proper GL code, signed itemized receipt, and purchase order (if applicable) before submitting to Accounts Payable. b. Using Enterprise Spend Platform (ESP) to create a requisition 1. Sign on to ESP at 2. Enter user address, username, and password. 3. Click on Sign On 4. Click on Create New Requisition 5. Type in product or service being paid (i.e. office supplies) as Requisition Label. 6. Check the Date and Save. 7. Search or type in the general ledger (g/l) code.* 8. Type in the purchase order number.* 9. Type in the amount of the purchase.* 10. In the notes section, type in a detailed description as it would normally be written on a manual purchase order. List the quantity of items to be ordered, an item number, etc. 11. Click to Save. The requisition will automatically be submitted electronically for the Department Director s approval, and if necessary, to Accounts Payable based on the total purchase amount. * Click on the + to the left of the g/l code to split the amount. Select blank space as g/l code to delete any unnecessary split. c. Dispute a charge prior to receipt of monthly statement 1. The Cardholder or Department Card Administrator may dispute a transaction prior to receiving his/her mailed monthly statement by simply clicking the check box for Disputed in the Transaction Details Coding window from the Account Statement module. This will automatically notify SunTrust Bank and the charge will not appear on your mailed monthly statement. d. Dispute a charge after receipt of monthly statement 1. Cardholders or Department Card Administrators must verify each transaction on his/her mailed monthly statement. If a transaction is incorrect for whatever reason, the cardholder must notify Accounts Payable and SunTrust Bank within sixty (60) days after the billing cycle date. The cardholder must indicate charges in dispute on the front of the

8 coded statement for payment. Otherwise, it is understood that the Cardholder accepts the charges as correct. e. Printing card statement 1. Cardholder must verify all of the transactions on his/her purchasing card and include a general ledger code and purchase order number (if applicable). 2. Sign on to ESP at 3. Enter user address, username, and password 4. Click on Sign On 5. Click on Statement Manage 6. Select Print Statement from the Main Menu 7. Select time period for Statement (current statement will automatically appear first) f. Payment Procedures for Purchasing Card Statements Mailed purchasing card statements should be received after the 10 th of every month. Electronic statements will be available the 16 th of every month. Cardholders or Department Card Administrators must print the statements from ESP and submit it with the necessary documentation within five (5) days. g. Cardholders will submit all required receipts and check requests for purchase orders. Disciplinary action may be deemed necessary if cardholders do not submit required information. Furthermore, the Finance Department will audit and review purchases. 1. On the rare occasion that a receipt is lost, employees should document the purpose of the purchase, the goods/services that were purchased, the amount, the supplier or merchant information, quantity, unit price, then sign and obtain their supervisor s signature on a lost receipt form. Repeat failure to submit timely coded statements, receipts, summaries, and required check request forms or purchase orders to Accounts Payable may result in the following: a. First Offense: Suspension of Cardholder s privileges for a minimum of seven (7) days and an oral warning. b. Second Offense: Suspension of Cardholder s privileges for a minimum of thirty (30) days, a written reprimand to be maintained in the employee s County personnel file, and supervisor notification. c. Third Offense: Immediate termination of Cardholder s privileges, a written reprimand to be maintained in the employee s County personnel file, supervisor notification and other disciplinary action as described in the Habersham County Employee Handbook & Policy Guidelines. Furthermore, misdemeanor/felony prosecution may be

9 sought in instances of fraud see g. Disciplinary Action 3 for further detail. 2. Finance Department is responsible for auditing and reviewing purchases made with purchasing cards. Due to the volume of transactions and limited staff auditing will be randomized. The audit process will utilize a Purchasing Card Audit check list to confirm documentation is complete, charges are reasonable, sales tax is not paid, and other purchasing card practices are followed. 3. In accordance with O.C.G.A (C)(8) the following penalties (for public officials, both elected and nonelected as well as those in every department, agency, board, bureau, commission, authority or similar body of Habersham County) shall apply for those who misuse public funds via purchasing card (P-Card). a. If specifically limited and specifically authorized purposes are in writing, employees or elected officials using purchasing card for nonauthorized purposes are guilty of felony; b. Those found guilty shall be punished by a fine of not more than $5,000 or imprisonment for not less than one year or more than three years, or both; c. Violations do not have to occur in Georgia or in any particular city or county to be prosecuted; and d. During said prosecution, the crime shall be considered to have been committed in the county in which such public official holds office or in which a government employee is employed.

10 Requisition Form ($0-$1000) Purchase Order Request ($1,001-$20,000) Habersham County Check Request OR Purchase Order Form Date: AMOUNT: Name of Payee: Street Address: City, State, Zip Mailing Address (if different): City, State, Zip ITEM OR SERVICE DESCRIPTION QUANTITY GENERAL LEDGER ACCOUNT REASON FOR THE REQUEST: NAME OF PERSON REQUESTING FUNDS DEPARTMENT DIRECTOR APPROVAL (up to $1000) FINANCE DIRECTOR ($1,001-$7,500) BUILDING MAINTENANCE/FLEET/OR IT (AS NEEDED) COUNTY MANAGER ($7,501 to $20,000) PURCHASE ORDER NUMBER (TO BE COMPLETED BY ACCOUNTS PAYABLE DEPARTMENT) Be sure to attach any required quotes and/or documents as required by Habersham County Purchasing Policies & Procedures OTHER INSTRUCTIONS Date Required Mail to Hold for Pick up By OTHER

11 Purchasing Card Audit check list The following items should be reviewed during random audit of p-card transactions 1 Name of Cardholder 2 Department 3 Approving Supervisor 4 Date range being audited 5 Number of transactions being audited within period 6 Total dollar amount of transactions being audited $ 7 Are all corresponding receipts included? Yes or No If no, provide detail: 8 Is it evident that all purchases are for official Habersham County buisness? Yes or No 9 Are all necessary/approved requisitions or purchase orders ($1,001-$20,000)included? Yes or No If no, provide detail: 10 Is there evidence that the procurements were approved prior to the purchase? Yes or No If no, provide detail: 11 Is the purchase potentially inappropriate for government use? Yes or No If yes, provide detail: 12 Do any charges include sales tax? Yes or No If yes, is there evidence a credit or refund will be issued? Provide detail: Yes or No 13 If items were shipped is a shipping invoice present? Yes or No If no, provide detail: 14 If meals or lodging are included are they below the approved per diem rate? Yes or No If no, provide detail: Signature of person completing Date Signature of employee/elected offical if discrepencies were found Date Signature of supervisor Date