010-2001 DM
CITY OF MIAMI BEACH ""'-
Office of the City Manager ~
Department Memorandum No. /0 -dOO I _
To:
From:
Executive Staff
DepartmenUDivision Directors
Jorge M. Gonzalez \ cVv~
City Manager (j U
Date: August 8, 2001
Subject: APPROVAL AUTHORITY FOR PROCESSING PURCHASE REQUISITIONS, SMALL
PURCHASE ORDERS, CHANGE ORDERS, AND DIRECT PAYMENTS
Consistent with my philosophy and effort to encourage greater empowerment in the work force and
to give you more opportunities to make important decisions, I have amended the City's policies
regarding approval authority for processing purchase requisitions, small purchase orders, change
orders. and direct payments.
Effective immediately, all Department and Division Heads reporting to Assistant City Managers
(ACMs), authority to approve purchase requisitions for one-time purchase orders, standing orders,
and direct payments is increased to $25,000. My designees or I must approve all purchases in excess
of $25,000. My designees are the ACMs and the Chief Financial Officer.
I remind you that with empowerment comes responsibility and accountability. It is the responsibility
of all Department and Division Heads to ensure that Purchase Requisitions, Purchase/Standing
Orders, Small Purchase Orders, Change Orders, and Direct Payments are properly reviewed and
approved.
The policy also requires that certain purchases (i.e. computer and communications hardware and
software, rolling stock items, electrical, plumbing, and modular furnishings) must be reviewed and
approved by IT, Fleet Management, or Property Management as appropriate.
Tbis is a proactive initiative that will move the decision-making function and authority to the closest
level within the organization, and allow for the acquisition of goods and services to be obtained in
a more expedient manner.
JMG:J~:GLf
Attachment: Approval Authority Policy
CITY OF MIAMI BEACH
Procurement Division
Policies and Procedures
APPROVAL AUTHORITY FOR PROCESSING PURCHASE REQUISITIONS, SMALL
PURCHASE ORDERS, CHANGE ORDERS, AND DIRECT PAYMENTS
POLICY:
It is the responsibility of all DepartmentsfDivisions to ensure that Purchase Requisitions,
Purchase/Standing Orders, Small Purchase Orders, Change Orders, and Direct Payments
are properly reviewed and approved.
APPROVAL AUTHORITY:
Documents Department! Budget Office CM or Designees.
Division Head
Purchase Up to $25,000 All Purchases Greater than Greater than $25,000
Requisitions for $1,000 & Capital Items.
one time POs and
SOs
Small Purchase Up to $1,000 for N/A N/A
Orders Non-recurring
Purchases
Direct Payments Up to $25,000 All travel and unbudgeted Greater than $25,000
items
-Designees would include ACMs and Chief Financial Officer.
Approval of a Purchase Requisition is not an authority to obtain the goods or services. The documents
that authorize the purchase of goods and services are standing and purchase orders. Under no
circumstances should purchase requisitions or the use of small purchase orders be split to circumvent
proper purchasing approval procedures listed herein.
· IT Approval: All purchase requests for computer and communicatia&i;~Ii'ArQ:\9Qlhjj& software
must be initially reviewed and approved by the Director of Information Technology or his/her designee.
· Fleet Management Approval: All purchase requests for rolling st~~lilf1Ui.(G.g, emergency
response vehicles, police vehicles, fire trucks, motorcycles, sedans, motor~~ !/Iid'dllJPavy duty
equipment) must be reviewed and approved by the Director of Fleet Management or his/her designee.
. Property Management Approval: All purchases of electrical, plumbing or HV AC services of
any kind, and any purchases of modular furnishing must be approved by the Director of Property
management or his designee.
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PROCEDURE:
A. Purchase Requisitions:
1. Purchase Requisitions up to $25,000 must be approved by the originating Department/Division
Director, and then routed to the Office of Management and Budget (OMB) for their review and
approval for Budget Codes only. If approved OMB will then forward the purchase requisition to
the Procurement Division for review, bidding, and issuance of a Purchase Order or Standing
Order as appropriate.
2. All Purchase Requisitions in excess of $25,000 must be approved by the originating
Department/Division Director or hislher designee and OMB (Budget Codes only), and then
routed to the City Manager or designee(s) for hislher review and approval. If approved, the City
Manager or designee will then forward the purchase requisition to the Procurement Division for
review, and issuance of a Bid, Request for Proposals (RFP), Request for Qualifications (RFQ), or
the preparation of a Commission Memorandum and/or Resolution relative to "piggybacking" or
Sole Source request in accordance with the Florida Statutes and City Code. (Unless specifically
exempted by the City Code, the final approval on all purchases for goods or services in excess of
$25,000 will be the City Commission.)
3. All purchase requests for computer and communications hardware and software must be initially
reviewed and approved by the Director of Information Technology or hislher designee and then
routed for appropriate approval as indicated above.
4. All direct payment requests for travel and unbudgeted items will require the review and approval
of OMB.
5. All purchase requests for rolling stock items (e.g. emergency response vehicles, police vehicles,
fire trucks, motorcycles, sedans, motorcraft, and heavy duty equipment) must be reviewed and
approved by the Director of Fleet Management or hislher designee.
6. All purchases of electrical, plumbing or HV AC services of any kind, and any purchases of
modular furnishing must be approved by the Director of Property Management or his designee.
B. Small Purchase Orders:
1. Small Purchase Order system authorizes divisions and departments to order goods directly from
vendors without creating a purchase requisition or waiting for a purchase or standing order to be
issued.
2. Sequentially numbered small purchase order forms are available from the Procurement Division
for purchases of items up to $1,000 to be made directly by departments. The appropriate
Department/Division Head or hislher designee may approve the purchase of items up to $1,000.
3. Refer to the policies and procedures on small purchase orders for use and prohibitions.
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C. Issuance of Purchase/Standing Order:
I. Upon receipt of a completed and approved Purchase Requisition, the Procurement Division 'Will
issue a Purchase Order or Standing Order for the purchase of goods and/or services.
D. Change Orders:
1. Change Orders of $50 or less require only a Department Director's signature on a Change Order
Request (attached to the invoice) to authorize the Finance Department to pay the difference. This
will expedite and simplify the payment process where there are small legitimate differences (i.e.
freight).
2. All Change Orders that increase the total purchase amount to $25,000 or under require the
Department Director or authorized designee approval. After approval, the change orders are
forwarded to OMB, and then to the Procurement Division for review and processing.
3. All Change Orders that increase the total purchase amount to greater than $25,000, require the
Department Director or authorized designee approval, OMB (Budget Codes Only), and the
approval of the City Manager or designee. After approval, the change orders are forwarded to the
Procurement Division for review and processing.
4. Unless exempted by the City Code, all Change Orders of $25,000 or more will continue to be
approved by the City Commission via Commission Memorandwns prior to final processing.
5. Information Technology, Property Management, and Fleet Management will generate
change orders for their respective areas.
E. Direct Payments:
AU requests for Direct Payments must comply with the City of Miami Beach Policies and Procedures for
requests for direct payments.
All Direct Payments under $1,000 after being approved (signed) by the Department Division Director or
authorized designee, are routed to the Finance Department, Accounts Payable Section, for review,
approval, and payment processing, except that Direct Payments for grant or confiscation funds, travel or
unbudgeted items are first approved by OMB. Direct Payments for payroll related deductions, transfers,
etc., utility deposit refunds, and Petty Cash reimbursements to the Central Cashier are prepared in and
retained by the Finance Department for processing.
AU Direct Payments of$I,OOO or more (except payroll-related deductions, transfers, etc.) are first routed
to OMB for review and approval. After approval, Direct Payments up to $25,000 are forwarded to the
Finance Department's Accounts Payable Section for review, approval and processing.
All Direct Payments greater than $25,000 are routed to the City Manager or designee for review and
approval. After approval, these Direct Payments are forwarded to the Finance Department's Accounts
Payable Section for review, approval and processing. Unless exempted in the City Code, the City
Commission must approve before payments are made.
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Unless specifically exempted by the City Code, the final approval on all purchases for goods or services
in excess of $25,000 will be the City Commission.
F. Unauthorized Purchases:
All unauthorized purchases (ordering and/or receiving of materials or services without the required prior
City authorizations) is a violation of Chapter 2 of the City Code. All such violations will be reported by
the Procurement Division in coordination with the Finance Department, to the Office of the City
Manager with a copy to the Internal Auditor. The City Manager may request for Internal Audit to
conduct a review of the unauthorized purchase.
Except for emergency purchases, it shall be unlawful for any city officer or other person to order the
purchase of any material or supplies or make any contract for municipal materials or supplies within the
purview of the City Code other than through the Procurement Division, and the City shall not be bound
by any purchase order or contract made contrary to the provisions in the City Code. Any purchase or
contract made contrary to the provisions of this policy may not be approved and the City shall not be
bound thereby. Except for purchases whereby the Direct Payment and the Small Purchase Order process
is applicable, no goods or services will be ordered by any city employee unless a valid (i.e. signed by the
Director of Procurement or hislher designee) Purchase Order or Standing Order has been issued.
REFERENCE DOCUMENT:
City of Miami Beach Code, Chapter 2, Administration
Ordinance No. 2001-3290
CONTACT:
Procurement Division
3'd Floor, City Hall
Miami Beach, FL 33139
305.673.7495
PREPARED BY:
~t!k
Procurement Director
DEPARTMENTfDIVISION: Procurement Division
APPROVED BY:
'7nat; o<..f A,ac/(:>tt ~ ,,-ri.c~
Mayra iaz Buttacavoli
Assistant City Manager
APPROVED BY:
~'
. ~O /~ ~
.,-- rge M. Gonzalez '6
City Manager
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