04-10-2019 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 Expenditures, Purchasing, and Contracts Chapter 22 | Page 14 Handbook, City Administrative Staff. While smaller cities likely do not have one person solely responsible for purchasing, an administrative officer (the city’s clerk, deputy clerk, administrator, administrative assistant, or manager) often has the responsibility to make most purchases and take advantage of savings through bulk purchasing, systematic procedures, and effective expenditure controls. 2. Authority for purchasing Because only the council may approve actual purchases, a purchasing agent should obtain approval before taking any final action. Minn. Stat. § 412.691. In Plan B statutory cities, the manager has the authority to make purchases and negotiate contracts for amounts up to $20,000, unless the council sets a lower limit. Even in this case, the council must audit all bills for materials, supplies, and services. Minn. Stat. § 412.271, subd. 8. Statutory city councils may delegate their authority to pay certain claims to an administrative official if: Office of the State Auditor, Statement of Position: The Importance of Internal Controls, Feb. 2014. LMC information memo, Procedures for Paying City Claims. • The council has adopted a resolution specifying the types of claims to be paid in this manner and the specific administrative official to whom the council grants this authority. • The council establishes internal accounting and administrative control procedures that ensure the proper disbursement of public funds, including periodic review of the official’s actions by the council. • The authorized administrative official submits the list of expenditures for review at the next council meeting after payment. • The city prepares an annual audited financial statement attested to by an independent certified public accountant, public accountant, or the state auditor. 3. Use of credit cards Minn. Stat. § 471.382. A city council may authorize the use of a credit card by any city officer or employee otherwise authorized to make a purchase on behalf of the city. A purchase by credit card must comply with all statutes, rules, and city policies applicable to city purchases. If a city employee or officer makes or directs a purchase by credit card not approved by the council, the officer or employee is personally liable for the amount of the purchase. Minn. Stat. § 412.271, subd. 2. Minn. Stat. § 471.38. Claimants must provide the city with an itemized list in writing or in an electronic transaction records. Cities should work with city attorneys to determine if a credit card statement contains the detail necessary to satisfy these requirements.