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TOWN OF WAPPINGER
20 MIDDLEBUSH ROAD
P.O. BOX 324
WAPPINGERS FALLS. NY 12590-0324
914-297-2744
, 'WAP>::".
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IRENE M. PAINO
SUPERVISOR
September 21, 1989
TO:
ALL TOWN HALL EMPLOYEES
FROM:
IRENE M. PAINO, SUPERVISOR
RE:
PURCHASE ORDER PROCEDURES
GENERAL
1. with the exception of purchases made under blanket purchase
orders and/or confirming orders (those requiring immediate
action) only the person designated Comptroller may commit
the local government for a purchase.
2. The material, equipment, supplies and/or services to be
purchased shall be of the quality and in the quantity
required to serve the function in a satisfactory manner, as
determined by the requisitioner and the Comptroller.
3. It is the responsibility of the Comptroller to make alterna-
tive suggestions to the requisitioner if, in the judgment of
the Comptroller, the specifications would restrict
competition or otherwise preclude the most economical
purchase of the required items. In case of disagreement
as to the content of the specifications, the board, after
reviewing all available data, should make the final
determination.
PURCHASE ORDER
1. Each department head is responsible for compliance with
the purchasing procedures adopted.
2. Only purchase order forms provided by the Comptroller
shall be used.
3. The purchase order will be prepared by the ordering
department and signed by an authorized requisitioner.
4. All purchase orders will be approved by the Comptroller.
5. The fiscal officer will certify on each purchase order that
moneys are available and that the appropriation has been
encumbered.
6. The number of purchase orders will be kept to a minimum.
7 .
purchase orders shall be processed to conform with the
purchasing schedule established by the Comptroller,
whenever practical.
....;\,
- 2 -
INSTRUCTIONS FOR PREPARING PURCHASE ORDER ORDERS
The purchase order form has four carbonized sheets. In the
block on the upper left, type the name and complete address of the
supplier. All purchase orders must be coded in accordance with the
accounting system. In the column marked "quantity" indicate the
number of each item desired. In the column marked "description" give
as complete a description of the item as possible, including catalogue
number if available. Include unit price and extend total amount of
each item, and total the purchase order at the bottom. This is
necessary for accounting and budgetary procedures.
When the purchase order is prepared, forward the complete set
(four copies) to the fiscal officer. When approved by the
Comptroller, the following procedure will follow: White Copy (orig-
inal) will be mailed to the supplier; Yellow Copy will be retained
by the fiscal officer; pink Copv (receiving) will be returned to the
originating department. The Canary Copv will be retained in the
Comptroller's office.
IN NO EVENT ARE PURCHASE ORDERS TO BE MAILED DIRECT TO SUPPLIER
WITHOUT FIRST ROUTING THROUGH THE FISCAL OFFICER'S OFFICE.
When cancelling an order, attach a copy of correspondence with
the company to the pink Copy of the order and send to the
Comptroller's office.
When making a partial cancellation of an order, a copy of the
correspondence with the company will be sent to the Comptroller's
office.
INSUFFICIENT APPROPRIATIONS
In the event that an appropriation balance is insufficient, the
fiscal officer will return the purchase order to the originiating
department. It will be accompanied by a statement containing the
following information:
a. Amounts available for transfer, i.e., contingent account,
other unneeded appropriation balances or unappropriated
cash surplus.
b. Any unestimated revenues -- state, federal, insurance
recoveries, gifts not previously appropriated.
-3-
REQUESTS FOR TRANSFERS
The Comptroller's office will notify the department head of the
unavailability of funds. To request an increase in appropriations,
the department head will proceed as follows:
1. The request for transfer, or increase in appropriations,
will be in writing and directed to the Comptroller
(copy to fiscal officer).
2. An explanation as to why the purchase is necessary must be
included in the request.
3. The amount needed and the code involved must be indicated.
The fiscal officer's written recommendation for approval or
disapproval will be obtained.
After accumulation of all related information, the Comptroller
shall submit the request to the board for action. On approval, the
Comptroller shall notify the requisitioner who shall re-submit the
purchase request.
The fiscal officer shall make the appropriate adjustments to
records, encumber the amount of the purchase order and certify to the
availability of funds.
NOTICE TO VENDORS
Written notice will be given to each supplier explaining the
purchase format. Vendors deviating from the purchasing procedure
will be notified immediately and informed of the possible
consequences.
Consideration will be given to the inclusion of the following
statement in both procedure adopted and notice to vendors:
THE (name of local government) WILL NOT BE RESPONSIBLE FOR
PURCHASES MADE WITHOUT PRIOR AUTHORIZATION FROM THE COMPTROLLER
AND FISCAL OFFICER EXCEPT AS OTHERWISE STATED HEREIN.
- 4 -
BLANKET ORDERS
Blanket purchase orders or open end account may be issued
to various vendors for purchase of items considered to be of
immediate need or for the purpose of consolidated (bulk) purchases.
The reasons for the use of blanket purchase orders are twofold:
1. to eliminate the necessity for the issuance of separate
orders for groups of items which are purchased frequently
from the same vendor. An example of this would be automotive
supplies (such as spark plugs, battery cables, points, etc.)
used in a central garage.
2. to permit the department to purchase items of this nature on
an "as needed" basis when there is no provision to maintain
an inventory.
The vendor's billing cycle (usually monthly) will be considered
in determining the period of time covered by a blanket purchase order.
The amount of the blanket purchase order shall be determined by
the fiscal officer. It should be based on information available in
the records covering previous fiscal years and data obtained from
the department head involved.
The department will keep a record of the purchases made to
insure that they do not exceed the amount allowed by the blanket
purchase order.
When supplies are delivered or picked up, receipts, delivery
slips, or other documents transmitted by the vendor will be signed
by the individual receiving the supplies. The blanket purchase
order number will also be placed on the documents which will be
attached to the receiving copy of the purchase order and forwarded
to the purchasing agent at the end of the period for which the
blanket purchase order was issued. However, if the amount allowed
on the blanket purchase order is reached prior to this time, the
covering documents should be forwarded to the Comptroller and
a new blanket purchase order requested.
- 5 -
CONFIRMING ORDERS
A verbal order, subject to subsequent confirmation by a written
purchase order, may be given in cases where necessity for immediate
action exists. Naturally, such a deviation from "the norm" should
have a very limited use.
The individual placing such an order shall justify the need for
this action. Lack of proper planning should not be considered a
valid reason for this process.
A confirming order should be issued immediately after availabil-
ity of funds is determined and certified to. This order shall follow
the same procedures as other orders but shall have priority so that
the vendor will receive the order without delay. The order shall be
marked "confirmation".
The local government will notify all department heads and
employees that it will not be responsible for orders placed in this
manner unless a confirming order has been cleared through the
purchasing office. If a confirming order is disapproved, the
materials or supplies shall be returned, if possible. The governing
board, department head and vendor shall be notified immediately and
appropriate steps taken.
RECEIPT OF GOODS
The requisitioning department shall be given the receiving copy
of the purchase order.
When a delivery is made, the receiving employee must fill in the
information as to quantity which can only be obtained by counting or
weighing the goods delivered.
The completed and receipted receiving copy should immediately be
forwarded to the auditing officer who should compare it with the
vendor's claim. Any invoices and/or shipping reports received from
the vendor should also be transmitted to the auditing officer. If
this procedure is followed, the local government will have the
advantage of taking discounts offered for prompt payment. The
Comptroller should make every effort to persuade vendors to grant
discounts.
Failure of vendors to make promised deliveries should be reported
to the Comptroller for follow up - by telephone to local vendors -
by telephone and/or mail to out of town vendors.
- 6 -
AUDIT OF CLAIMS
1. A claim submitted to the appropriate officer or board for
audit for payment shall qualify when the following
conditions are met:
a. Itemization is in sufficient detail for audit (any
allowable discounts should be noted).
b. It is accompanied by the third (receiving) copy of the
purchase order signed by the receiving office. This
copy should state that the item has been received or the
services rendered.
c. All invoices or other supporting statements are attached.
d. There is proper certification or verification by the
claimant, if required by the governing board.
e. The claim is approved for payment by the official whose
action gave rise or origin to the claim.
If a claim is presented to the auditor for materials and supplies
for which no purchase order was issued, the matter should be brought
to the attention of the Comptroller so he/she will be aware of
deviations in order to take corrective action. The claim should not
be sent to the purchasing office for a useless purchase order a
purchase order after the fact is a complete waste of time and effort.
EXCEPTIONS TO PURCHASING SYSTEM
Thus far, we have discussed the procedures to be followed when
a purchase order is needed. We reflected on the need for cooperation
and control.
Control involves not only compliance with required purchasing
procedures, but also affects the paperwork necessary. "Overpapering"
can ruin the effectiveness of the system almost as quickly as
non-compliance.
There are certain expenditures for which the processing of a
purchase order is unnecessary. The following should be made without
purchase orders:
1. Contracts for personal services - any encumbering should
be on the basis of contracts.
- 7 -
2. Employee expenses such as conference expenses, mileage
and other reimburseable expenses in performance of day-
to-day duties.
3. Reimbursement of petty cash funds.
4. utility bills.
5. Service contracts for a fixed monthly or annual amount.
(May be encumbered on the basis of the contract.)
6. Interdepartmental charges - for instance, water department
billings to recreation; fire department billing for fire
alarm system.
7. Medical examinations.
8. Legal notices.
9. Claims for food for prisoners.
10. Postage meter costs.
PURCHASING CYCLE
1. Purchase order prepared and forwarded to fiscal officer.
2. Purchase order approved and encumbered. One copy of purchase
order retained as support of "Reserve for Encumbrances".
Remaining copies and original are returned to originating
department.
3. Purchase order released to vendor (original).
4. Goods delivered.
5. After information on receipt of goods (date received;
signature of receiving official who should be someone other
than person who made out requisition; quantity; discrepancies)
and departmental approval are completed, receiving copy is
transmitted to the auditor.
6. Claim and/or invoices sent to auditing body (or official).
7. Claim audited and abstract (listing) of claims prepared and
sent to the fiscal officer for payment.
8. Check prepared and transmitted to vendor and accounting records
adjusted.
PURCHASE ORDER LIMITS
Any item(s) over $49.99 must have a purchase order number
except Highway Department limit will be $499.99.
Exhibit #1 This is how a purchase order will look when it is turned into the
Comptrol lerls office for a P.O. #. Processing time frame P.O. IS turned in by
Monday 12 noon, will be returned to the department by Wednesday at 4 p.m.
Purchase Orders received after the 12 noon deadline will be processed in the
next cycle.
Exhibit #2 The white and ~ copies of the P.O. will be returned to the department
Send The white copy to the vendor. Keep the pink copy, this will be your receiving
slip.
Exhibit #3 Vendor will send the white copy back to us,with an invoice. White copy
must be signed by the vendor in the certification area. Originating dept. will receive
P.O. and invoice.
Exhibit #4 When originating dept. receives the proper paper work and pink copy of the
P.O. has been signed by the receiving person, submit white and pink copies and Invoice
to the comptrollers dept for processing.
Exhibit #5 This is a copy of an old invoice. Do not use after Sept 29,1989.
Use the new combination purchase order & voucher.
EXHIBIT #1
TOWN OF WAPPINGER, N.Y.
P.O. Box 324, Middlebush Road
Wappingers Falls, N.Y. 12590
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Older NI.
DO NOT WRITE IN THIS .oX
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FUND. A"'IO.IIATION · AMOUHT
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PURCHASE ORDER & VOUCHER
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9-26-89 2 tons of fai ry dust 500 DO 1000 00
DEPARTMENT HEADS APPROVAL \\lILL APPEAR HERE @
HIS APPROVAL IS FOR THE PURCHASE ORDER. TOTAL /'1000 00
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CLAIMANrS CERTIFICATION
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TITLE
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DATE
.... AUTHOai:ZIDO'F1CIAL
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AUDITING BOARD'
EXHIBIT #2
TOWN OF WAPPINGER, N.Y.
P.O. Box 324, Middlebush Road
Wappingers Falls. N.Y. 12590
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DO HOT WRITE IN THIS lOX
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XVZ CORP
CLAIMANT'S 1212 Never
NAME .
AND Some where
ADOlESS
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fUND - A"'IO"IIA TION . AMOUHT
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DEPARTMENT HEADS APPROVAL HILL APPEAR HERE, @ !
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THIS APPROVAL IS FOR THE PURCHASE ORDER. TOT~ -1/1000100
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CLAlMANrS CERTIFICATION
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DATE
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tllO Illu..i.;p.lity a.. ,". d.t" .t.ted ..... ,". cho.." ... cor-
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DATE
AUTHOllZEO OffICIAL
DATI
AUDITIHG BOARD
EXHIBIT *3
TOWN OF WAPPINGER. N.Y.
P.O. Box 324, Middlebush Road
Wappingers Falls, N.Y. 12590
"'oclo_
0Net Mo.
0001
DO NOT WRITE IN THIS lOX
CLAIMANT'S
NAME
AND
ADClfSS
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XYZ CORP
1212 Never
Some where
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FUND. ..."RO'RI...T10N . "'MOUNT
00-01-1315.40 1000 I 00
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TOTAL I 1000 bo
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R.t. No.
PURCHASE ORDER & VOUCHER
never 1 and Ave
over the Rainbow USA
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DI'" Quattty Delcri,tl.. of MlIteri.. tW ~,_ Ualt Pric. "'...OUllt II
9-26-89 2 tons of fa i ry dust 500 \00 I 1000 \00
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DEPARTMENT HEADS APPROVAL \HLL APPEAR HERE. @ --IV 1000 I 00
THIS APPROVAL IS FOR THE PURCHASE ORDER. TOTAL
CLAIMANTS CEITlFICATlON
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AP'ROVAL FOR PAYMENT
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D"'TE
...UTHORIZED OFFICIAL
DATI
AUDITING 10ARD
EXHIBIT fA
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TOWN OF \VAPPINGER. N.Y.
P.O. Box 324, Middlebush Road
Wappingers Falls. N.Y. 12590
"'....- 0001
0ftIer No.
DO NOT WRITE IN THIS lOX
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FUND. APPROPRIATION' AMOUNT
00-01-1315.40 1000 \ 00
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TOTAL I lnnn bo
Ablt,ect No. I
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PURCHASE ORDER & VOUCHER
CLAIMANT'S
NAME
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1212 Never
Some where
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never 1 and Ave
over the Rainbow USA
T.IMS......................................................................................................-................
D.... Qu.tlty Doocrilltl.. of .....ri... ... s...1_ U.lt Pric. A...ou.t I
9-26-89 2 tons of fa i ry dust 500 \00 1000 00
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DEPARTMENT HEADS APPROVAL \HLL APPEAR HERE t'1OOO1oo
THIS APPROVAL IS FOR THE PURCHASE ORDER. TOTAL
CLAIMANrS CElTlFICATION
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DATE
SIGNATURE
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TITLE
AP'ROVAL fOR PAYMENT
DE'ARTMENT A"ROVAL
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DATE AUTHORtIlD OFFICIAL
DATI
AUDITING BOUD
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TOWN OF WAPPINGER
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