Section 501. - Payment for salaries, purchases and claims against the City.
A. Payment. All payments for salaries, purchases and claims against the City may be made by proper warrant or check signed by the Mayor, countersigned by the Director of Finance, drawn upon the City Treasury and charged to the proper account; provided, however, that the Director of Finance may also direct payments from the municipal treasury by wire transfer, direct payroll deposit or other instrument or method of disbursement through the Federal Reserve System. No disbursement shall be made unless proper funds are available for the payment of same.
B. Internal control structure established. Warrants, checks or other instruments of disbursement from the municipal treasury shall be prepared and issued strictly in accordance with an internal control structure developed and maintained by the Director of Finance which, at a minimum, shall include the following requirements.
1. Segregation of duties and responsibilities.
a. Responsibilities for requisitioning, purchasing and receiving functions shall be segregated from those for invoice processing, accounts payable and general ledger functions.
b. Responsibilities for the purchasing function shall be segregated from those for requisitioning and receiving functions.
c. Responsibilities for invoice processing and accounts payable functions shall be segregated from those for the general ledger functions.
d. Responsibilities for the disbursement preparation and approval functions shall be segregated from those for the recording of cash disbursements and general ledger entries.
e. Responsibilities for entries in the cash disbursement records shall be segregated from those for general ledger entries.
2. Procedural controls - requisitioning.
a. Purchases of goods and services shall be initiated only by properly authorized requisitions bearing the approval of officials designated to authorize requisitions.
b. The person requesting the purchase shall indicate the particular appropriation to be charged on each purchase requisition.
c. Before issuance of a purchase order or contract, the Director of Finance or his designee shall verify that there are sufficient unobligated funds remaining under the designated appropriation to meet the proposed expenditure.
d. Competitive bidding procedures shall be utilized in accordance with state statutes, the Charter and Revised Ordinances of the City of Tulsa.
e. Policies regarding conflicts of interest and business practice shall be established and distributed.
f. The awarding of personal service or construction contracts shall be in accordance with predetermined selection criteria and shall require adequate documentation of the award process.
g. Changes to contracts or purchase orders shall be subjected to the same controls and approvals as the original agreement.
h. Receiving reports for all purchased goods shall be prepared and transmitted to the Purchasing and Accounting Divisions of the Finance Department.
3. Procedural controls - invoice processing.
a. Invoice processing procedures established by the Director of Finance shall provide for:
(1) Obtaining copies of purchase orders and receiving reports,
(2) Comparison of invoice quantities, prices and terms with those indicated on the purchase order,
(3) Comparison of invoice quantities with those indicated on the receiving reports, and
(4) Checking the accuracy of calculations.
b. Procedures shall be developed and maintained ensuring accurate account distribution of all entries resulting from invoice processing.
c. Changes to the electronic data processing master vendor file shall be made only by employees authorized by the Director of Finance to make such changes.
d. The Accounting Division of the Finance Department shall maintain a current list of those authorized to approve expenditures.
e. Procedures shall be developed and maintained for the submission and approval of reimbursements to employees for travel and other expenses.
f. Steps shall be taken to ensure a new supplier actually exists if an invoice is received from a supplier not previously dealt with.
g. Payments shall be made on the basis of original invoices which have been approved by the individual (or his designee) responsible for the appropriation to which the expenditure will be charged.
h. Differences in invoice and purchase order prices, terms, shipping arrangements or quantities shall be referred to the Purchasing Agent for review and approval.
4. Disbursements - procedural controls.
a. Both the Mayor and the Director of Finance shall be required to sign checks and warrants approved to be issued.
b. Banks will be promptly notified when a new signer is authorized or a previous signer leaves the employ of the City of Tulsa.
c. Signature plates, when not in use, shall be maintained in the custody of the City Controller.
d. Signature plates shall be used only under the signer's control and the signer or his designee shall record all machine readings to ensure that all signed checks and warrants are properly accounted for.
e. Signed checks and warrants shall be delivered directly to the mail room, to the individual designated for payment, or to an individual approved by the Director of Finance.
f. Procedures shall be established and maintained for control of and accounting for all checks and warrants with specific safeguards over unused and voided checks and warrants.
g. Responsibilities for preparation of checks and warrants shall be separated within the Finance Department from the distribution of checks and warrants.
(Ord. No. 17605)
