Farmville Fire Department

Administrative Policy #9Effective: April 1, 2018

Purchasing PolicyIssued by: Chief Dean Farmer

PURPOSE AND SCOPE

In order to remain responsible stewards of taxpayer funds, the Executive Committee of the Farmville Fire Department shall follow the below prescribed policy when entering into purchasing agreements with outside vendors. This policy shall apply to all purchases made on behalf of the Department.

SECTION IDEFINITIONS

Receipt – any confirmation of purchase, either electronic or physical, which records the date and place of purchase, purchase price, and itemized list of purchases

Purchase Order – official documentation of purchase, issued by the Treasurer of the Department, which contains a number unique to each purchase

Emergency Purchase – purchases made outside of normal procurement methods which are critical to the operation of the Department

SECTION IIGENERAL PURCHASES

2.1Purchase Approval Amounts. Single purchases totaling $500.00 or more shall require the prior approval of the Executive Committee

2.1.1Exception. Revolving purchases and contractual agreements shall not require monthly approval

2.2Payment Schedules. All purchases shall be made on net 30 or other billable schedules.

2.3Purchase Orders. All purchases made on behalf of the department shall require a purchase order from the Treasurer of the Department. The Treasurer shall provide a purchase order number which shall be documented on the purchase receipt.

2.4Receipts. All purchases made on behalf of the Department shall require a receipt. Receipts shall be collected no less than weekly by the Treasurer of the Department. Purchases not having receipts shall be reviewed monthly by the Executive Committee

2.5Subscriptions and Revolving Payments. The Department shall not enter into subscription services, contractual obligations, or revolving payments without the approval of the Executive Committee. Approval of these purchases shall only be required at the contract renewal date. All contracts, agreements, and associated paperwork shall be provided to the Treasurer.

2.6Delivery of Purchased Items. All purchased items shall be delivered to the Farmville Fire Department’s main station located at 1000 West Third Street in Farmville.

SECTION IIIEQUIPMENT REPLACEMENT, REPAIRS, AND PREVENTIVE MAINTENANCE

3.1Authorized Purchasers. The Property Sergeant shall be empowered to purchase equipment to replace lost, broken, or otherwise unserviceable equipment. Replacement equipment shall be of similar make, model, and cost. Replacement equipment which varies greatly in make, model, or cost shall require approval from the Executive Committee. Preventive maintenance and warranty work on small equipment not exceeding one hundred dollars ($100.00) shall not require the approval of the Executive Committee.

3.2Vehicle Repairs. In order to streamline operations and minimize equipment downtime, the Fire Chief shall be empowered to authorize certain vehicle maintenance expenditures without the approval of the Executive Committee. The Fire Chief or Treasurer shall make notice to the Executive Committee any maintenance related expenses not requiring prior approval. The Fire Chief may exercise discretional spending on the following:

a.Annual Commonwealth of Virginia vehicle inspections

b.Annual pump and ladder certification testing

c.Scheduled preventive maintenance and warranty work

d.Maintenance or repairs which would otherwise render the vehicle unsafe or out of service

e.Emergency work such as towing services and roadside assistance

f.Payment of insurance deductibles resulting from claims

SECTION IVCREDIT AND DEBIT CARDS

4.1Authorized Users. The Department shall issue a credit and/or debit card to the Treasurer and Fire Chief. Any member may be authorized to make card purchases with the approval of both the Fire Chief and the Treasurer. All purchasers shall abide by the cardholder agreement set forth by the issuing bank and this policy.

4.2Use. The Department shall retain a credit card for purchases which cannot be readily made on Net 30 terms

4.3Unauthorized Uses. No member of the Department shall use an issued purchase card for personal or private use. Charges not authorized by the Department shall become the responsibility of the purchaser. Unauthorized uses include, but are not limited to:

  1. cash withdrawals, cash advances, or wire transfers without prior approval of the Executive Committee
  2. cash back or other cash returns with purchase
  3. Card Loss. Lost, stolen, or destroyed purchase cards must be reported to the Treasurer within one business day. Upon notification of a lost or stolen card, the Treasurer shall immediately contact the lender to have the card cancelled. Any unauthorized charges occurring during this period shall be disputed in accordance with the cardholder agreement.

4.5Statement Reconciliation. The Department Treasurer shall review all credit, debit, and store card statements monthly. Discrepancies shall be reported to the Executive Committee at the monthly meeting.

SECTION VEMERGENCY PURCHASES

5.1Authorized Purchases. Emergency purchases shall apply to the purchase, procurement, or rental of equipment, vehicles, or professional services necessary to complete the mission of the Department. The Fire Chief or his designee shall be authorized to approve emergency purchases in such situations where lives or property are endangered, during increased call volumes or declarations of disaster, or when continuation of department services would be affected. Prior to authorizing an emergency purchase, a good faith effort must be made to convene an emergency meeting of the Executive Committee or contact as many members as possible.

5.2Review of Emergency Purchases. Members making emergency purchases shall notify the Treasurer of the department of such purchase and provide all receipts and supporting documentation no later than the next business day. The Executive Committee shall review all emergency purchases monthly.

SECTION VIREVIEW OF DEPARTMENT FUNDS

6.1Disclosure of Department Finances. The Treasurer shall provide a monthly report summarizing the financial activities of the Department. Members contesting the monthly report shall do so at the beginning of the Department’s monthly business meeting.

6.2Request for Detailed Review. Detailed financial information such as bank statements, credit card statements, contract agreements, and other paperwork is available for review by members of the Department. Requests to review detailed financial information shall be made in writing to the Chief and include specific reasoning for the request. This information may be viewed in the Treasurer’s office during normal business hours. No member shall remove, copy, or distribute the Department’s financial information without written permission from the Fire Chief.

SECTION VIIGRANTS AND MONETARY AWARDS

7.2Approval of Grants. Each grant application requiring matching funds and submitted on behalf of the Department shall be approved by the Executive Committee prior to submission.

7.3Approval Not Required. Purchase of goods or services specified in grant award packets shall not require the approval of the Executive Committee. All financial information including award amounts, receipts for purchased goods and services, and other documentation shall be provided to the Treasurer for accounting purposes.

SECTION VIIIREIMBURSEMENT OF FUNDS

8.1Eligible Purchase. Purchase of equipment, goods, and services by the use of out of pocket funds should be used only as a last resort. Members making purchases for the Department may be eligible for reimbursement with approval from the Executive Committee.

8.2Request for Reimbursement. Members requesting reimbursement shall submit all receipts and supporting documentation to the Treasurer prior to the monthly business meeting. Upon approval, the Treasurer shall issue the member a check for the amount requested. Checks shall only be made out to the member requesting reimbursement.

8.2.1Items eligible for reimbursement include, but are not limited to:

  1. costs associated with training which supports the mission of the department
  2. travel and lodging expenses approved by the Executive Committee
  3. business related meal costs shall be at the discretion of the Fire Chief and shall be limited to the following:
  4. single meal costs are not to exceed $50.00
  5. business meals shall be limited to one (1) per quarter
  6. meals shall be between the Fire Chief and outside vendors
  7. paid meals between members of the Department shall be prohibited