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HomeMy WebLinkAboutPurchase Order Process COMPTROLLER John A. Cushman CENTRAL DATA PROCESSING John Sepenoski 53095 Main Road P.O. Box i179 Southold, New York i1971-0959 ACCOUNTING & FINANCE DEPT. Telephone (516) 765-4333 E-mail: accounting~southold.org CENTRAL DATA PROCESSING Telephone (516) 765-1891 E-maih dataprocessing~s0uthold.org Fax (516) 765-~.366 TOWN OF SOUTHOLD OFFICE OF THE SUPERVISOR To: Department Heads From: John Cushman Date: February 25, 1999 Re: Purchasing and billing After our discussion at today's Department Head meeting, we are implementing changes in the procedures for processing purchase orders and invoices as indicated below effective March 1, 1999: Purchase Order Process A properly executed purchase order is required for all purchases before goods or services are ordered. The following Purchase Order Process will help the Department to correct any error or deficiency before the Purchase Order is presented to the Supervisor for signature. 1. Procurement Policy: Department obtains pricing from qualified vendors in compliance with the procurement policy. 2. Department completes a Purchase Order that includes the date, the appropriation charged, where the goods should be shipped, the vendor name and address, a description of goods or services to be provided, the cost of the ggods or services and the Department Head's signature. Copies of anything required 15y the Procurement Policy or state law (e.g., price quotes, state or county contracts, Town Board resolutions) should be attached. 3. Department Head submits completed Purchase Order to Accounting. 4. Accounting reviews the Purchase Order for required information and documentation as noted in 2. above. If required information is missing, the Purchase Order will be returned to the originating Department with a notation attached. February 25, 1999 Page 2 5. Once Accounting determines that the Purchase Order includes the required information and documentation, Accounting posts the Purchase Order to "encumber' funds on the appropriation charged. This process provides a warning if funds are not available in the apprcpdation charged. If funds are not available in the appropriation charged, the Purchase Order will be returned to the originating Department. 6. If funds are available in the appropriation charged, Accounting forwards the "posted" Purchase Order to the Supervisor for signature. 7. Once signed bythe Supervisor, the Purchase Order is returned to the originating Department. 8. Department releases the order. Invoice Process All Tewn, invo'mes must be audited and approved by the Town Board before they can be paid. ~ Accounting processes several hundred invoices for the Town Board every two weeks. If you want an invoice paid at the next Town Board meeting, the deadline for invoice submission is three business days prior to that meeting. In general, invoices should be submitted on a regular daily basis for processing, as this allows Accounting staff sufficient time to review invoices for accuracy and posting to the Town's financial system. The following Invoice Process will allow us to streamline invoice processing for properly completed transactions. 1. Upon receipt of the goods or services, Department acknowledges receipt of the goods on a copy of the Purchase Order (usually the green copy). 2. Vendor submits invoice and Town voucher to the Department. The front side of the Town voucher is usually completed by the vendor, and should contain the following: vendor name, address, contact name and number, tax identification number, a description and cost of the goods or services delivered, and the vendor's signature certifying the claim. 3. Department reviews invoice and voucher to be sure it is in order, and if deemed to be so, attaches a copy of the Purchase Order and approves for payment by affixing the Department Head's signature in the appropriate section of the voucher. 4. Department completes the reverse side of the voucher to include the Vendor name, vendor number, invoice number, invoice date, amount claimed, Purchase Order number, a brief description of the goods or services and the account number to be charged. February 25, 1999 Page 3 5. Department submits invoice, voucher and appropriate Purchase Order copy to Accounting. 6. Accounting reviews invoice, Purchase Order and voucher for completeness and accuracy. Omission of required information, documentation or signatures will result in the invoice being returned with an appropriate notation. 7. Accounting enters the invoice into the financial system using information provided on the reverse side of the Town voucher. In doing so, the encumbrance is liquidated and an "Account Payable' is created. If funds are not available in the appropriation charged, the entire invoice will be returned to the originating DePaf ~ent. 8. If funds,are available in the appropriation charged, the invoice will be included on the warrant for Town Board approval. 9. Once approved'bY the Town Board, a check will be cut and mailed directly to the vendor, unless ether'wise required by the Department. Please feel free to contact us should you require any further information. i Documentation that the Town Board has authorized the payment of claims is provided through an abstract, warrant or order on which the audited claims have been listed. The warrant is drafted by Accounting and submitted to the Town Board to facilitate their audit of all claims. During the audit process, the Town Board ascertains that: The proposed payment is for a valid and legal purpose. The obligation was incurred by an authorized official. The goods or commodities for which payment is claimed were in fact received or, if for services, that they were actually rendered. The obligation does not exceed the available appropriation. The claim is in proper form; it is mathematically correct; it meets legal requirements; it does not include any charges for taxes from which the Town is exempt; it includes any discounts to which the Town is entitled; it does not include charges previously claimed and paid; and it is in agrerme, nt with the purchase order. / cc: Town Board¢ PurchaseOrder # ToWN OFASOUTHOLD r~ver~and.~,nd billing to: I oep rtment.'..'TD j3-' Account Address VENDOR Return this copy and Town of Southold ~oudher itemized and s~g.~ed for ITEM QUANTITY DESCRIPTION UNIT COST TOTAL THIS PURCHASE ORDER IS NOT VALID WITHOUT THE SIGNATURES OF THE DEPT. HEAD AND THE SUPERVISOR I CERTIFY THAT THERE ARE SUFFICIENT FUNDS AVAILABLE IN THE~PPROPRIATION CHARGED Dept. I~ '- I CERTIFY THIS TO BE A JUST AND TRUE PURCHASE ORDER SUpervisc~ DEPARTMENT'S CERTIFICATION OF GOODS OR SERVICES I certify that the goods or services were received by this Department and all exceptions duly noted. Signed Title Date PAY TO: Town of Southold, New York - Standard Voucher Payee Tax Identification Number Unit Amount Item Description of Materials / Services Quantity Price Number , i,oooluE IO, ,oo oo, oa I Payee Certification . . ',Die undersigned (r'laimanO (Acting on behalf of the above named claimant) does hereby certify that the foregoing clmm ts true and and that ~o t~x has been paid, except as therein stated, and that the balance therein ~tated is actually due aad owing. 7 - Department Certification · ' ' d · hereby certify that the materials above specified have been received by me n good condluOn w tl~ut subsOmt on, ,he services prope } performed and fha ;he auan!kies thereof have been verified with the exceptions or discrepancies noted, and payment is aoproved