Operating Procedure
Title: USE OF AUTHORIZATIONS TO PAY (AP-1s)Number: 36-019
Effective Date: July 1,1998Page 1 of 2
Revised Date: August 1, 2009
A.POLICY
1.It is sometimes in the best interest of MTA MetroNorth Railroad (“MNR”) to make purchases of certain goods or services exempt from the procurement process and to pay via an AP-1 (authorization to pay) document.
2.The following list identifies, by category, those goods or services for which the use of an AP-1 form is acceptable to facilitate payment.
a.Utilities (e.g., electric, steam, gas, water, sewer, telephone)
b.Customer ticket refunds
c.Court-ordered garnishments
d.Tax payments (e.g., federal, state, local)
e. Union dues
f. Special, authorized contractual agreements (e.g., NJT, LaSalle Partners, long term auto rentals, real estate rentals)
g.Inter-company payments (MTA, LIRR, NYT)
h.Beneficiary benefits
I.Special employee awards
j.Insurance premiums
k.Legal transactions (e.g., court-ordered awards)
l.Medical claim payments
m.Expenses for special events approved by Vice Presidents or the President
n.Prompt payment disbursements
o.Violations (e.g., fines, tickets, special permits)
p.Demurrage
q.Uni-Rail ticket sales reimbursements
r.Promotional reimbursements
s.Non-recurring rentals, repairs or services required for critical or emergency situations approved by Vice- Presidents or the President
t.Individual services (e.g., certain police coverage in Connecticut)
u.Hotel accommodations in New York City for employees required to conduct company business beyond their normal tours of duty (per Operating Procedure 30-012: Special Hotel Accommodations)
3.The following list identifies, by category, unacceptable uses of an AP-1 for which the procurement process should be utilized.
a.Inventory purchases
b.Lease or rental agreements for equipment (e.g., non-emergency rolling stock, vehicles, generators)
c.Non-critical or recurring repairs or services
d.Catalogued tools and parts, bypassing contractual agreements with vendors with valid MNR Purchase
Orders
e.Contractual work or services
f.Continuation of expired or depleted purchase order contracts
g.Professional fees
4.Three other types of purchase methods can be used to procure goods and services.
a.When an emergency exists and the need for materials or services cannot wait for the normal processing cycle, an “EMER” indicator on the requisition alerts the procurement expeditor to produce an emergency purchase order and fax it to the vendor.
b.Blanket purchase orders, which are set up in advance, can be used to identify needed catalogue items. These parts or supplies can then be requisitioned through the procurement system.
c.Procurement Card (per Operating Procedure 30-003).
B.STEPS
1.The requesting department should refer to the list of acceptable AP-1s prior to using that form to make a commitment to purchase goods or services.
2.The requestor should complete the AP-1, following the instructions of the back of the form, attach the original copy of the vendor’s invoice and submit it for proper signature approval.
3.The Accounts Payable Department reviews the AP-1 for completeness, dollar amount approval limitations and authorized signatures and, if all is correct, makes the payment.
C.ADMINISTRATION
1.The Director, Procurement/Material Management is responsible for the interpretation of this policy.
2.Department heads are responsible for the administration of this policy within their respective areas.
3.The Chief Financial Officer and the Vice President, Finance & Information Systems must approve any changes to this policy.
This procedure sets forth only guidelines and does not constitute a contract, express or implied. MTA Metro-North expressly reserves the right to change or cancel this procedure at its sole discretion at any time.
Approved by:A. Bombace, Director, Procurement/Material Management, on/10/09
S. DiMichael, Chief Financial Officer, on/19/09
K. Porcelain, Vice President, Finance & Information Systems, on/19/09