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HomeMy WebLinkAboutFIN 030-006 Spending Authority ProcedureCity Procedure Procedure Title: Spending Authority Procedure Procedure Number: FIN 030-006 Reference: / Date Originated: February 2010 Date Revised: /irf^c. / / 7 / 0 -�`` / Approval: Chie A%minist ative Officer Point of Contact: Manager, Accountiri Services Procedure Objective To provide procedures for the administration of spending limits throughout the City. Index 01 Definitions 02 General 03 Designated Spending Authority 04 Temporary Spending Authority Appendix 1 Spending Authority Control Sheet 01 Definitions 01.01 City — The Corporation of the City of Pickering 01.02 Director — the head of any City department or office 01.03 Designated Spending Authority (formerly referred to as Signing Authority) — spending authority given to specific City employees responsible for approving expenses incurred for the purchase of goods and services on behalf of the City 01.04 Spending Authority Form (formerly referred to as Signing Authority) - form to be completed when an employee is added 01.05 Treasurer — the Chief Financial Officer and Treasurer of the Corporation 02 General The Treasurer is responsible for,maintaining spending authorities for the provision of goods and services and the payment thereof. The Treasurer or designate has the authority to question any transactions, supporting documentation or authorization, including requesting further information or clarification. Directors shall, in a form to be provided by the Treasurer, maintain and keep a current schedule specifying the delegation of financial spending authority within their Department and the respective authority limits. The schedule shall be signed by the respective Director, the Treasurer and then by the Chief Administrative Officer. The original schedule with specimen signatures of the relevant staff of the department shall be forwarded to the Treasurer and maintained by the Manager, Accounting Services. The schedule will be reviewed and updated every two years unless otherwise required or deemed necessary. 03 Designated Spending Authority Spending authority is required for all City employees who have been given responsibility to approve source documents such as Cheque Requisitions, Purchase Requisitions and the purchase of goods, supplies, and services. Documents received without appropriate spending approval and supporting documentation will be returned to the originator so as to obtain proper authorization. Procedure Title: Spending Authority Procedure Page 2 of 4 Procedure Number: FIN 030-006 The Director is responsible for designating staff and approving spending authority limits for their departments. The Chief Administrative Officer must approve the spending authority for Directors. General guidelines for dollar limits are as follows: Section, Division or Department: Administrative Assistants Managers/Supervisors Director/Division Head Corporate Wide: Director, Corporate Services & Treasurer Chief Administrative Officer $500 $2,500 - $5,000 Unlimited all Accounts Unlimited all Accounts Unlimited all Accounts Any revisions, additions or deletions will be changed on the Spending Authority Control sheets and initialled and dated by the Director and reviewed by the Manager, Accounting Services. Approval of the CAO is no longer required for "housekeeping" changes, except within his own respective Department. The original sheets can be retrieved from the Administrative Assistant II in Corporate Services. Additions will be added to the original sheets and signed off by the Director, Treasurer and the CAO. Spending Authority officers may not approve source documents that result in a benefit or payment to themselves or on their behalf. Approval must be received from another designated officer, usually the next immediate Supervisor. Submissions by Directors shall be authorized by the Chief Administrative Officer; for those submitted by the CAO, Councillors and the Mayor shall be authorized by the City Clerk to ensure that the expenditure is appropriate. The Treasurer may, request confirmation of the employees who have been given spending authority and limits assigned. 04 Temporary Spending Authority For those employees on vacation or leave for a period of at least one month, temporary authorities will be temporarily granted permission to sign on an account, an email from the Director to the Manager, Accounting Services, copying the Administrative Assistant II, Corporate Services will be sufficient for temporary authorities. Appendix 1 Spending Authority Control Sheet Procedure Title: Spending Authority Procedure Page 3 of 4 Procedure Number: FIN 030-006 • a) C U) C U) .O 0 , .0U U) c C a) U) w 0 a 0 00 U Ct -a Ct a) N C U)°' o N L '- C) • Y — C) U Authorized — CAO Signature Authorized — Treasurer Signature Authorized — Director's Signature •