APPLICABLE POLICIES/PROCEDURES

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2 APPLICABLE POLICIES/PROCEDURES Purchasing Policy No. 242CP Purchasing Administrative Procedures Prompt Pay Policy No.501 Purchase Card Policy/Procedures No. 603 Florida Statutes Chapter 112 (Ethical Behavior) Internal Control Policy No. 630

3 ROLE OF THE CITY COMMISSION Per the City s Procurement Policy No The City Commission, as the overall governing body for the City of Tallahassee, shall: 1. Provide overall policy direction related to procurement activities 2. Render a final decision on award regarding any action for procurement of supplies or services presented by the City Manager

4 AUDIT FINDINGS & INTERNAL CONTROLS Internal controls have been implemented to provide reasonable assurance that only valid transactions are recognized, approved and processed. The following are some excerpts from various audit reports: Based on our testing of bid solicitation, we can provide assurances that bids involving MBE, Local Vendor, and Charitable Contribution incentives were awarded in accordance with City incentive program ordinances and policies. None of the bids we tested were awarded based on Volume of Work incentive points. City Vendor Incentive Programs Audit 2011 We found that general disbursements were (1) adequately supported and for authorized and reasonable purposes, (2) made in proper amounts, (3) properly recorded, and (4) made in compliance with established laws, rules, policies, procedures, and contractual terms and conditions. No reportable issues were identified relating to general disbursement items tested. Citywide Disbursement Audit 2009 Overall, we found that Procurement Services did an adequate job of overseeing the purchasing process of the City. We also noted no issues that would indicate the purchasing process is biased, unfair, or outside policy or procedure. Audit of the Purchasing Section of the Procurement Services Division 2007 No instances of fraud or activities for personal gain were noted. P-Card Audit 2008

5 ETHICS IN PROCUREMENT Purchasing employees must review and adhere to (documentation of evidence of review is required annually) the City s Ethics Policy, Section in addition to the following as stated in Section 1.4 of the City s Purchasing Manual: Code of Ethics for Public Officers and Employees - Florida Statutes Chapter 112 National Institute of Governmental Purchasing Code of Ethics

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7 PURCHASING LEVELS Levels Less Than $1,000 No Required Competition Approval Department Head or Designee Preferred Payment Method Purchase Card $1001-$25,000 3 Quotes Department Head or Designee Purchase Card More Than $25,000 Formal Quote/Bid/RFP Approval based on expenditure amount Purchase Order

8 PURCHASING APPROVAL THRESHOLDS Up to $25,000 Department Head or Designee Up to $125,000 Procurement Services Manager Up to $250,000 City Manager or Designee Note: Can approve all capital budget purchases/change orders up to the annual project amount appropriated by the City Commission Unlimited City Commission

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10 PURCHASING METHODS Method Procurement level Processed By Average Processing Time Informal Quotes Up to $25,000 Initiating Department 2 days Formal Quotes Up to 100,000 Purchasing 1 week Formal Bids More than $25,000 Purchasing 30 days Request for Proposals Competitive Negotiated Selection Non Competitive Purchases More than $25,000 Purchasing 2 4 Months Prior approval required based on market circumstances Various Department /Purchasing Department/ Purchasing 30 days 2 days

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12 PURCHASE CARDS Purchase cards (p-cards) are the preferred method of payment for goods and services under $25,000. P-cards can only be used to make authorized purchases on behalf of the City. Personal purchases are not permitted. Cards should not be shared among employees and limited to the individual whose name appears on the card. Every card includes a single transaction limit set by the department director. The maximum single transaction limit for departmental cardholders is $25,000. All purchases that exceed $1,000 shall be supported by a minimum of 3 phone or written quotes; evidence of contract or justification of approved exception to competition (i.e. sole source or emergency). Documentation that supports purchase card transactions must be retained for a minimum period of 5 years.

13 ACCOUNTS PAYABLE The City s Accounts Payable Program is responsible for processing the payment request types listed below, in accordance with the Florida Prompt Pay Act. Appropriate documentation must be provided to support all payment requests. Invoices resulting from a purchase order Check request Wire transfers ACH payments Construction Contract Payments Garnishments Rebates