Purchasing Playbook - November 2021 by City of Southlake, Texas

THE

PURCHASING

PLAYBOOK CITY OF SOUTHLAKE FINANCE ADMINISTRATION

REVISED NOVEMBER 2021

TABLE CONTENTS OF

Introduction

Purchasing Policy

General Purchasing Information

Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Freight and Shipping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Recycled Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Vendor Life Cycle

Bidding Parameters

Purchases of $3,000 and less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

HUB Requirements - Purchases Between $3,000 and $50,000 . . . . . . . . . . . . . . 14

Purchases Between $3,000 and less than $25,000. . . . . . . . . . . . . . . . . . 14

Purchases of $25,000 to $50,000. . . . . . . . . . . . . . . . . . . . . . . . . . 14

Competitive Purchasing Requirements - Purchases of more than $50,000 . . . . . . . . . 15

Vendor Contract Covered by an Interlocal Agreement . . . . . . . . . . . . . . . . 15

Vendor Contract Covered by a Cooperative Purchasing Agreement . . . . . . . . . . 16

Formal Sealed Bid/Proposal Resulting in a City Contract . . . . . . . . . . . . . . . 16

Construction Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Emergency Purchase Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . 17

Professional Services Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Sole Source Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Other Exemptions as defined in State law . . . . . . . . . . . . . . . . . . . . . . 18

Contract Amendment

Change Orders

Receiving

Invoices .20

Accounts Payable Discrepancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Accounts Payable Invoice (API) . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Accounts Payable Discrepancy (APD) . . . . . . . . . . . . . . . . . . . . . . . 20

Insufficient Receiving . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Unit Price Variance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Quantity Variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Invoice Dispute Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Surplus Property

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Purchase Card Program 23

P-card Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

JP Morgan Chase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Issuance of P-card. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Spending Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Cardholder Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Lost or Stolen Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Disputed Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

P-card Statement Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

P-card Exception Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

P-card Statement Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Travel Policy

Travel Procedures 30

Requesting Travel Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Preparing for Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Returning from Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Requesting a Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reimbursing Expenses to the City. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

APPENDIX: Munis Instructions 33

Munis Common Search Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Vendor Search. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Purchase Order (PO) Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

General Ledger (GL) Account Search . . . . . . . . . . . . . . . . . . . . . . . . .

YTD Budget Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Requisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Purchase Order Change Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Receiving on a PO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Accounts Payable Discrepancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

P-card Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Central Budget Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

HUB Search Instructions 77 Vendor Life Cycle Flow Charts

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CITY OF SOUTHLAKE | P U R C H A S I N G P L A Y B O O K

PURCHASING POLICY City of Southlake

Purchasing Policy Policy: Source: Category: Effective Date: City Council Approval Date:

Purchasing Policy City Council Finance Administration September 15, 2020 September 15, 2020

Purpose The purpose of this Purchasing Policy is to ensure accountable, efficient, transparent, and ethical practices are used to acquire products and services. This policy is intended to promote the best interest of the citizens of the City and compliance with State purchasing statutes.

Applicability The Purchasing Policy applies to the purchasing activities of the City.

Responsibility and Authority Under the City of Southlake’s Charter 9.41, the Council may, by ordinance, confer upon the City Manager general authority to contract for expenditures without further approval of the Council for all budgeted items not exceeding limits set by the Council. All contracts for expenditures involving more than the set limits must be expressly approved in advance by the Council. All contracts or purchases involving more than the limits set, shall be let to the bidder whose submittal is among those most responsive to the needs of the City after there has been opportunity for competitive bidding as provided by law or ordinance; provided that the Council, or City Manager in such cases as he/she is authorized to contract for the City, shall have the right to reject any and all bids. With Ordinance No. 888, dated June 19, 2005, City Council conferred upon the City Manager general authority to contract for expenditures without further approval of the Council for all budgeted items not exceeding limits as specified in Texas Local Government Code 252.021(a) or its successor statute City Council must approve all other purchases, except when an emergency purchase exists, as defined by state law. Department Directors shall ensure their department’s adherence to this policy. Department Directors shall determine and assign the appropriate approvers within their department. Approvers are responsible for ensuring that departmental purchases adhere to this policy and all budgetary requirements.

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DEFINITIONS Competitive Sealed Bids A purchasing method by which a governmental entity will indicate specific requirements and specifications for its purchasing need and then posts a notice inviting potential suppliers to submit bids with their offered price. Each bidder gets the chance to submit a bid once without any modifications allowed. The government will typically select the bidder who offers the lowest price or best value to the entity.

Competitive Sealed Proposals A purchasing method by which a governmental entity may request proposals and pricing information based on the scope of work provided, rank the offerors, negotiate a contract, and then award the project to the contractor that offers the best value and most advantageous proposal.

Component Purchases Purchases of the component parts of an item that in normal purchasing practices would be purchased in one purchase.

Historically Underutilized Business (HUB) A corporation, sole proprietorship, partnership or a joint venture formed for the purpose of making a profit in which at least 51 percent ownership of the business is by a woman, minority and/or service-disabled veteran. The State of Texas must certify the business as a HUB to qualify.

Separate Purchases Purchases, made separately, of items that in normal purchasing practices would be purchased in one purchase.

Sequential Purchases Purchases made over a period, of items that in normal purchasing practices would be purchased in one purchase.

GENERAL Purchasing is a function of each department. The Purchasing Division shall provide guidance and assistance to departmental personnel regarding purchasing. The Purchasing Division shall monitor compliance with purchasing laws, City policies and procedures. All purchases shall be in accordance with the laws of the State of Texas, including, but not limited to, Chapters 252 and 271 of the Texas Local Government Code, and the City of Southlake Charter. All purchasing shall adhere to sound purchasing procedures to ensure that Southlake taxpayers receive the best value for City purchases.

BIDDING PARAMETERS Purchases Less Than the HUB Requirements The Texas Local Government Code 252.0215 or its successor statute sets the Historically Underutilized Business (HUB) requirements. No quotes are required but are recommended when possible. Only departmental level approval as determined by the Department Director is required.

Purchases Within the HUB Requirement Range These purchases require at least three informal written quotes/bids. At least two of the contacts solicited for quotations must be from vendors on the State’s current certified HUB list. If the listing fails to identify a HUB in the county in which the City is situated, the City is exempt from this requirement. The written quotes and the solicitations must be retained for auditing purposes. The Texas Local Government Code 252.0215 or its successor statute sets the Historically Underutilized Business (HUB) requirements. Departmental level, purchasing division, and when applicable, City Manager Office approvals are required.

Purchases Governed by the Competitive Purchasing Requirements The Texas Local Government Code 252 or its successor statute sets Competitive Purchasing requirements. The City may use either Competitive Sealed Bids or Competitive Sealed Proposals for expenditures or purchases subject to Competitive Purchasing requirements. Contracts required to be procured by Competitive Purchasing are awarded or rejected by the City Council.

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BIDDING PARAMETERS

Competitive Sealed Bidding The City will use the “best value” method to award contracts under the competitive sealed bid method. The City will indicate in the bid specifications that the contract may be awarded either to the lowest responsible bidder or to the bidder who provides goods and services at the best value to the City. The City will further indicate in the bid specifications that it reserves the right to reject any or all bids and reopen the bidding process if it is in the best interest of the City. In determining the “best value” for the City, the City may consider: • Purchase Price; • Reputation of the bidder and the bidder’s goods and services; • Quality of the bidder’s goods or services; • Extent to which the goods or services meet the City’s needs; • Bidder’s past relationship with the City; • Impact on the ability of the City to comply with laws and rules relating to contracting with historically underutilized businesses and nonprofit organizations employing persons with disabilities; • Total long-term cost to the City to acquire the bidder’s goods or services; and • Any relevant criteria specifically listed in the request for bids.

Competitive Sealed Proposals Requests for proposals must solicit quotations and must specify the relative importance of price and other evaluation factors. Discussions in accordance with the terms of a request for proposals may be conducted with offerors who submit proposals and who are determined to be reasonably qualified for the award of the contract. Offerors shall be treated fairly and equally with respect to any opportunity for discussion and revision of proposals. To obtain the best final offers, revisions may be permitted after submissions and before the award of the contract.

Exceptions to Competitive Purchasing Requirements Texas Local Government Code Section 252.022 or its successor statute outlines exemptions from the Competitive Purchasing Requirements, including during emergencies. With Ordinance No. 888, City Council conferred upon the City Manager authority to authorize emergency expenditures, as defined in State statute, without competitive bids / proposals. The City Manager shall present the emergency expenditures to City Council for ratification within 30 days.

Change Orders With Ordinance No. 888, City Council conferred upon the City Manager the authority to approve change orders to a contract for a decrease or increase up to the amount specified in Texas Local Government Code Section 252.048(c). City Council shall approve a decrease or increase greater than the amount specified in Texas Local Government Code Section 252.048(c). The original contract price may not be increased by more than 25 percent. The original contract price may not be decreased by more than 25 percent without the consent of the contractor.

CRIMINAL PENALTIES A City officer or employee commits an offense if the officer or employee intentionally or knowingly makes or authorizes separate, sequential, or component purchases to avoid the competitive bidding requirements of Texas Local Government Code Section 252.021 (Competitive Requirements for Purchases) or any other requirement of Chapter 252 of the Code.

SURPLUS PROPERTY The City shall dispose of a surplus property item with an estimated net auction value greater than $500 through a public auction or internet sale to the highest bidder. For heavily damaged or items with an estimated net auction value less than $500, the City may donate the item to a nonprofit organization, recycler, or dispose of the item. The cost of storage of these items and personnel time required to manage the auction items, including meeting the highest bidder is significantly more than the net proceeds and therefore, not cost effective.

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CITY OF SOUTHLAKE | P U R C H A S I N G P L A Y B O O K

GENERAL PURCHASING INFORMATION Departments shall make purchases using a Purchase Order (PO) or utilizing a Purchase Card (P-card). Departments, except for the Finance Department’s Purchasing Division (Finance), shall only purchase Capital Assets with a PO due to additional approval requirements. The Department shall make all purchases according to the City’s Purchasing Playbook regardless of the payment method used. The PO process begins with the Department Purchasing Liaison (PL) completing a requisition (see Appendix— Munis). Requisition approvals adhere to the following:

Who Approves

At What Level

Department Approvers as Determined by Director Purchasing Assistant Purchasing Manager Accounting Manager City Manager or Designee

All Requisitions $3,000 to $24,999 $25,000 and more Capital Assets (59XXXX and Project Funds) $5,000 and more

Sales Tax As a municipality, the City is exempt from paying sales taxes on all purchases. The only exception would be for travel related expenses. The City’s tax exemption certificate is available on the City’s external purchasing web page.

Freight and Shipping The preferred method for shipping items to the City is FOB (Free on Board) Destination, which makes the vendor responsible for the shipment until the City inspects and accepts it. The vendor selects the shipper and is responsible for the risk of transportation, including filing for losses or damages.

Recycled Materials Preference shall be given in purchasing of products made of recycled materials if the product meet applicable specifications as to quantity and quality and the average price of the product is not more than 10% greater than the price of comparable nonrecycled products. Preferences will be applied in accordance with state procurement statutes and rules.

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VENDOR LIFE CYCLE The City has a Vendor Life Cycle Management Process. The Vendor Life Cycle Management Process is defined as an end-to-end approach to managing vendors. It provides for a consistent and transparent framework to engage vendors from start to finish in order to ensure successful outcomes along the way and to mitigate potential risk to the City. In addition to reducing risk, the Vendor Life Cycle Management Process allows for the selection of the most qualified and best valued vendors while increasing accountability that allows the City to drive service excellence. The Vendor Life Cycle Management Process supports the City’s values of Integrity, Accountability, and Commitment to Excellence. The City’s Vendor Life Cycle Management Process consists of three main phases: Pre-Vendor, Active Vendor, and Post-Vendor. Each of these phases are critical to the successful management and oversight of City vendors during the procurement process, and each phase involves many stages.

Pre-Vendor Phase The Pre-Vendor Phase is the first phase and includes the most stages. The Pre-Vendor Phase is intentionally designed with the most steps in order to screen for the vendors that will be the best fit and value for the City prior to entering into a contract with the vendor. By performing extensive due diligence in the Pre-Vendor Phase, the City is able to reduce its risk exposure. The Pre-Vendor Phase flowchart (Appendix Vendor Life Cycle), starts with vendor identification and market research. It lays out the various paths by which a vendor may be selected in accordance with State laws and City policies. These include the bidding process, Local Government Code exemptions, and Cooperative Purchasing Agreements (CoOps) or Inter-Local Agreements (ILAs). As part of the process with contracts over $50,000, potential vendors are asked to complete and return a City Vendor Background Questionnaire, unless it is unreasonable or not possible to obtain. The questionnaire addresses areas of concern including company history, any prior bankruptcy, company structure and organization, and compliance with Federal and Department of Labor laws. This criteria is taken into consideration during the vendor selection process. This phase concludes with the contract award and vendor on-boarding process.

Active Vendor Phase The Active-Vendor Phase focuses on vendor performance and quality management. Through periodic inspections and deliberate oversight by departments, vendors are held accountable for satisfactory performance and quality workmanship. The Active-Vendor Phase flowchart (Appendix Vendor Life Cycle), outlines the sequential steps taken to ensure delivery of excellence. Periodic vendor reviews allow for departments to identify possible deficiencies early, and communicate them in writing to the vendor; thereby reducing the City’s risk and providing for a process to escalate any unresolved issues to the City Manager’s Office for resolution in a timely manner. The Active-Vendor Phase concludes with the vendor satisfactorily completing their contractual obligations. For those with multi-year contracts over $50,000, a City Vendor Background Questionnaire will be required annually as part of the renewal letter, unless it is unreasonable or not possible to obtain.

Post Vendor Phase Lastly, is the Post-Vendor Phase (Appendix Vendor Life Cycle) While many organizations may conclude the vendor life cycle with completion of the project or service delivery, the Post-Vendor Phase is crucial in assessing and documenting Vendor performance for future reference. At the center of the City’s Post-Vendor Phase is an electronic Vendor Performance Evaluation Business Process. The electronic workflow allows departments to submit a Vendor Performance Evaluation. This is a requirement for contract awards greater than $50,000, and is recommended, but optional, for those under $50,000. The Vendor Performance Evaluation is a great tool for information sharing as it is reviewed by the Department Director, Chief Financial Officer, City Manager’s Office, and Finance Purchasing Division before being saved into the City’s official records repository for future use.

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BIDDING PARAMETERS Purchases of $3,000 or Less If a purchase is $3,000 or less, no quotes are required, but are recommended when possible. The Department verifies that the purchase does not fall under component, separate, or sequential purchasing, as they are illegal. Please refer to the definitions in the Purchasing Policy. The PL may attach the following to the requisition: • Quotes, if applicable. • Other documentation that supports the purchase, if applicable.

HUB Requirements - Purchases Between $3,000 and $50,000 Under State law, before the City plans to make purchases between $3,000 and $50,000 with a vendor in a fiscal year, the City must meet the Historically Underutilized Business (HUB) purchasing requirements. These purchases require at least three informal written quotes/bids/proposals, depending on the estimated annual spend. The City shall contact at least two vendors from the State’s current certified HUB list (Appendix — HUB Search). If the listing fails to identify a HUB vendor in the counties in which the City is situated (Tarrant and Denton), the City is exempt from this requirement. If HUB vendors are unresponsive, the Department has met the HUB requirement by notifying them and giving them the opportunity to submit. The City retains all submitted quotes/bids/proposals and email correspondence with the HUB vendors for auditing purposes. Some exceptions to the HUB Purchasing Requirements include the following: • Vendor Contract covered by an Interlocal Agreement • Vendor Contract covered by a Cooperative Agreement • Formal competitive sealed bid/proposal resulting in a City contract • Professional Services Exemption • Sole Source Exemption • Emergency Purchase Exemption • Other Exemptions as defined in State Law If the purchase is procured under Competitive Purchasing Requirements, the HUB purchasing requirements are not applicable to the purchase. See the Competitive Purchasing Requirements – Purchases of more than $50,000 section of the Playbook for documentation requirements. City Council minutes are not required for estimated annual spends under $50,000.

Purchases Between $3,000 and less than $25,000 An annual estimated spend with a vendor of more than $3,000, but less than $25,000 requires at least three informal written quotes and is subject to HUB requirements. The Department is responsible for the selection of the vendor and completion of the Bid Tabulation form. The Department attaches the following to the requisition: • HUB search results • If HUBs exist, documentation that the Department contacted HUB vendors • All written quotes received • Completed Bid Tabulation form, including the reason why the Department selected the vendor • Other documentation that supports the purchase, if applicable

Purchases of $25,000 to $50,000 An annual estimated spend with a vendor of $25,000 to $50,000 requires written bids/proposals and is subject to HUB requirements. A committee evaluates the bids/proposals received and recommends the vendor award, based on predetermined criteria, to the Department Director for final approval. No committee is required if the bid is evaluated on lowest price only. The process consists of the following steps: 1. The Department creates and submits to Finance the specifications of the product/scope of services sought.

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BIDDING PARAMETERS 2. Finance reviews the product specifications/scope of service, creates the Request for Bid/Proposal draft, including the Best Value criteria, and returns the draft to the Department for review. 3. The Department and Finance work on revisions and determine how long to leave the Request for Bid/ Proposal open based on the complexity of the bid/proposal requirements. 4. Finance posts the final Request for Bid/Proposal on the City’s electronic bidding platform, Bonfire, which vendors access from the City’s website. Finance sends a notification of the Request for Bid/ Proposal to required HUB vendors. Bonfire automatically notifies applicable vendors registered on Bonfire. 5. The Department and Finance select the evaluation committee, consisting of a minimum of 3 people. Finance sets up and coordinates the evaluations in Bonfire, if applicable. 6. Finance determines if the submission followed the required elements stated in the Request for Bid/ Proposal. If a submission does not, Finance disqualifies the submission and the evaluation committee will not score it. 7. Assigned evaluators score the submissions based on pre-established Best Value criteria in the Request for Bid/Proposal. 8. Once scoring is completed, Finance presents the committee’s recommendation to the Department for final approval. 9. Once approved, Finance sends the signed contract to the vendor, provides the final signed contract to the City Secretary, and enters the contract into the Munis Contract program. 10. Finance files the HUB search results, documentation that the City contacted HUB vendors, Bid Tabulation form, all bids/proposals submitted and any other documentation in the bid folder. The Department shall attach the following to the requisition: • Vendor Contract • Other documentation that supports the purchase, if applicable

Competitive Purchasing Requirements - Purchases of more than $50,000 Under State law, before the City plans to make purchases of more than $50,000 with a vendor in a fiscal year, the City must meet the Competitive Purchasing Requirements. Under the City Charter (Chapter 9.43), the City Council approves/awards in advance all contracts for expenditures more than $50,000. The following are common ways to meet these requirements: • Vendor Contract covered by an Interlocal Agreement • Vendor Contract covered by a Cooperative Agreement • Formal sealed bid/proposal resulting in a City contract • Professional Services Exemption • Sole Source Exemption • Emergency Purchase Exemption • Other Exemptions as defined in State law

Vendor Contract Covered by an Interlocal Agreement If all the following requirements are met, the State’s competitive purchasing requirements are also met through a Vendor Contract covered by an Interlocal Agreement: • Another governmental entity has a contract with a vendor that was procured in compliance with the State’s competitive purchasing requirements for the service/product sought; • The City has an interlocal purchasing agreement with the other governmental entity; and • The vendor honors the same pricing and terms in the other governmental entity’s contract with the City. Verify that the City has a current Interlocal Agreement with the other governmental entity by checking the Interlocal/Cooperative Agreement Listing on the Finance intranet page. If the other governmental entity is not on the list, contact Finance to determine if the City can enter into an Interlocal Agreement with the other governmental entity. In the General Notes section of the requisition, the Department references that competitive purchasing requirements were met through the Interlocal Agreement with the name of the other governmental entity. The Department attaches the following to the requisition:

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BIDDING PARAMETERS • Signed Vendor Contract with other governmental entity • Vendor quote referencing that the prices and terms are based on the other governmental entity’s contract, including the contract number • Minutes from the City Council meeting approving the purchase • Other documentation that supports the purchase such as the City Council Memo, if applicable

Vendor Contract Covered by a Cooperative Purchasing Agreement If all the following requirements are met, the State’s competitive purchasing requirements are also met through a cooperative purchasing agreement: • The City has an agreement or membership with the cooperative purchasing organization; and • The cooperative purchasing organization has a contract with a vendor that was procured in compliance with the State’s competitive purchasing requirements for the service/product sought. Verify that the City has a current agreement with the cooperative purchasing organization by checking the Interlocal/Cooperative Agreement Listing on the Finance intranet page. If the organization is not on the list, please contact Finance to determine if the City can enter into an agreement. The Department attaches the following to the requisition: • Vendor quote with Cooperative Agreement number on it • Current cooperative contract summary page • If available, contract pricing schedule • Minutes from the City Council meeting approving the purchase • Other documentation that supports the purchase such as the City Council Memo, if applicable

Formal Sealed Bid/Proposal Resulting in a City Contract A formal sealed bid/proposal is required when the City plans to make purchases of more than $50,000 with a vendor in a fiscal year unless competitive purchasing requirements are met through an Interlocal or Cooperative Agreement or is exempt under State law. The process starts when the Department and Finance decide the best way to purchase the product/service is through a formal bid/proposal process. The timing of the process, including the final award by City Council, depends on the complexity of the service/product sought and the response rate of both the Department and Finance throughout the process. Departments should plan on the process taking 2 to 3 months, consisting of the following steps: 1. The Department creates and submits to Finance the specifications of the product/scope of services sought. 2. Finance reviews the product specifications/scope of service, creates the Request for Bid/Proposal draft, including the Best Value criteria, and returns the draft to the Department for review. 3. The Department and Finance work on revisions and determine how long to leave the Request for Bid/ Proposal open based on the complexity of the bid/proposal requirements. 4. The Department and Finance select the Bid/Proposal evaluation committee, consisting of a minimum of 3 people. Finance sets up and coordinates the evaluations in Bonfire, if applicable. 5. Finance posts the final Request for Bid/Proposal on the City’s electronic bidding platform, Bonfire, which vendors access from the City’s website. Bonfire automatically notifies applicable vendors registered on Bonfire. 6. Finance creates the required newspaper advertisement and sends it to the City Secretary for publication. 7. As part of competitive purchasing requirements, the City advertises a formal request for bid/proposal for a minimum of 14 days before the day of opening. The City usually posts the Request for Bid/ Proposal for a minimum of 21 days to allow vendors to ask questions and create quality submissions. Vendors shall direct all questions to Finance. If a Department is contacted directly by a vendor, the Department directs them to Finance. 8. Finance opens the bids on Bonfire and reads aloud the vendor name and bid amount for Request for Bids at the time and place published in the notice. Finance reads aloud only vendor names for Request for Proposals.

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BIDDING PARAMETERS 9. Finance determines if the submission follows the required elements stated in the Request for Bid/ Proposal. If a submission does not, Finance disqualifies the submission and the evaluation committee will not score it. 10. Finance releases the bids/proposals through the Bonfire system to the evaluators. 11. Assigned evaluators score the submissions based on pre-established Best Value criteria in the Request for Bid/Proposal. 12. Once scoring is completed, Finance, with the Department’s input, creates an award recommendation. Finance then creates the Contract Award Letter and the award packet, which is then given to the City Secretary for signatures. 13. The Department presents the recommendation to City Council for award approval. 14. Once approved by City Council, Finance or the Department notifies the awarded vendor and the Department coordinates contract implementation and compliance. The City Secretary stores the finalized contract on Laserfiche. 15. Finance enters the contract into the Munis Contract program. 16. Finance files the bid/proposal tabulation form, all bids/proposals submitted and any other documentation in the bid folder. Finance posts the bid/proposal tabulation and the contract award letter to the City’s external purchasing web page. The Department attaches the following to the requisition: • Signed current City contract/renewal • Vendor quote for the purchase, if applicable • Minutes from the City Council meeting approving the purchase • Other documentation that supports the purchase such as the City Council Memo, if applicable

Construction Projects Construction project bids/proposals are coordinated through Public Works Administration and follow a different process, that follows State purchasing laws for construction contracts. Architects and engineers create the documents with the Public Works Department and Public Works oversees the process. When requested, Finance posts the information to the City website and assists Public Works Administration.

Emergency Purchase Exemption Under State law, emergency purchases are exempt from competitive purchasing requirements when made for: • A public calamity that requires immediate action, including preserving City property; • Preserving or protecting the public health or safety of residents; or • Unforeseen damage to public machinery, equipment, or other property. When an emergency purchase occurs during normal business hours, the Department immediately notifies Finance to assist in locating and arranging the delivery of the product/services required. The Department creates a requisition as normal to authorize the payment for product/services but can proceed with the emergency purchase before the requisition is processed and approved. When an emergency purchase occurs outside of business hours, the authorized Department official may take necessary steps to procure required supplies, services, or equipment to relieve the emergency. If possible, the Department should only procure those products/services required during the evening, weekend, or holiday. On the next business day, the Department Director or designee certifies, in writing, that the emergency purchase was necessary because of one of the three reasons listed above. The Department also creates a requisition as normal to authorize the payment for product/services. If this exemption is applicable, the Department attaches the following to the requisition: • Emergency purchase memo explaining the circumstance requiring the purchase • If available, vendor quote • Other documentation that supports the purchase such as the City Council Memo, if applicable • Minutes from the City Council meeting approving the emergency purchase. Under Ordinance No. 888, the City Manager may approve emergency purchases, but the City Council must ratify the expenditure within 30 days. Departments may attach minutes to the PO after requisition approval and invoice payment.

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BIDDING PARAMETERS Professional Services Exemption Under State law, professional services are exempt from competitive purchasing requirements for purchases of personal, professional, or planning services. The Department adds a note to the requisition stating the purchase falls under the Professional Services Exemption and why. The City may use Request for Qualifications to solicit the services. If this exemption is applicable, the Department attaches the following to the requisition: • Vendor quote/contract • Minutes from the City Council meeting approving the contract • Other documentation that supports the purchase such as the City Council Memo, if applicable

Sole Source Exemption Under State law, a purchase of a service/product that is available from only one source due to patents, copyrights, secret processes, natural monopolies or captive replacement parts or components for equipment, is exempt from competitive purchasing requirements. If this exemption is applicable, the Department attaches the following to the requisition: • A signed and dated Sole Source letter from the vendor stating it is the only vendor which can provide the service/product to the City and why. The City must obtain this letter annually as circumstances may change and the service/product may no longer qualify under a Sole Source Exemption. There are a few circumstances where a letter can be non-expiring as determined by Finance. • A memo signed and dated by the Department Director and the City Manager authorizing the use of the Sole Source Exemption. The City must obtain this memo annually as circumstances may change and the service/product may no longer qualify under a Sole Source Exemption. There are a few circumstances where a memo can be non-expiring as determined by Finance. • Vendor quote • Minutes from the City Council meeting approving the contract • Other documentation that supports the purchase such as the City Council Memo, if applicable

Other Exemptions as Defined in State Law Under State law, there are other less common exemptions to the competitive purchasing requirements. If the Department is struggling to determine the best way to meet the competitive purchasing requirements, it should contact Finance to discuss. Finance shall consider if any less common exemptions may apply. If a less common exemption is applicable, Finance instructs the Department on how to document the exemption.

CONTRACT AMENDMENT Annual contracts are contracts which set pricing as well as terms and conditions for a set period, usually one year with up to 4 one-year annual renewals (total of 5 years). A contract amendment is required to add additional, similar items to a current annual contract. Under State law, contract amendments shall not increase the original contract amount by more than 25% without additional bidding processes or reduce the original contract by more than 25% without vendor approval. The Department works with the vendor to price additional items requested and provides it to Finance. Finance reviews proposed additions to determine if a contract amendment is appropriate or if the additional services/products are subject to separate bidding requirements. If a contract amendment is appropriate, Finance drafts the contract amendment for the Chief Financial Officer or designee to sign and then Finance sends it to the vendor for signature. Once the signed amendment is received back from the vendor, Finance delivers the amendment to the City Secretary and enters the amendment into the Munis Contract program. Then the Department may purchase the additional items under the amended contract.

CHANGE ORDERS Change Orders are used to make changes to a Purchase Order (PO) (see Appendix — Munis). Common changes include changing the dollar amount, quantity, or account codes, cancelling remaining amount, or correcting any portion of the PO. If an increase moves the total estimated annual vendor spend up to the next bid parameter limit, additional bid/proposal requirements may be required. Please contact Finance to determine if additional requirements apply.

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RECEIVING The Department inspects the product received for damage, defect, and whether the product received is the product ordered, and verifies the quantity received or the service provided is per agreement and any deliverables are received. If the service/product is damaged, defective, or not per specifications outlined, the Department works with the vendor to correct. The Department documents any issues with a vendor. If the Department has issues with the vendor which are not resolved promptly after contacting the vendor, the Department contacts Finance for assistance and begins the Invoice Dispute Process. After verifying the service/product received is correct, the Department enters the receiving information into Munis within 1 business day of verifying the service/product was received (see Appendix — Munis). Entering the receiving information into Munis authorizes Accounts Payable to pay the invoice for the quantity/dollar amount the Department received in Munis.

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INVOICES An invoice is an itemized statement of products and/or services provided by the vendor. Vendors shall submit invoices directly to Finance by emailing the invoice to accountspayable@ci.southlake.tx.us. If email is not available, invoices may be mailed directly to Finance. Vendors should not email and mail an invoice. The vendor may send a copy of the invoice to the Department.

Accounts Payable Discrepancies Before Accounts Payable (AP) can pay an invoice, there must be a 3-way match of the Purchase Order (PO), receiving records and vendor invoice. The PO authorizes the purchase, and the receiving records show the quantity/amount the City received from the PO, and if the invoice matches both the PO and the quantity/amount received by the Department, AP is automatically authorized to pay the invoice. If they do not match, an accounts payable workflow kicks off. The City uses the following Munis accounts payable workflows: • Accounts Payable Invoice (API) • Accounts Payable Discrepancy (APD)

Accounts Payable Invoice (API) When AP enters an invoice and there is no associated PO, Munis kicks off an API workflow. Munis determines the assigned approvers based on Org code (and sometimes the Object code), the dollar value of the invoice, and the Department Director’s assignment of Approvers. The Approvers approve or reject the payment of the invoice. These approvals authorize AP to pay the invoice. If the Department rejects the API, then the Department works with AP on resolving the issue, including the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook).

Accounts Payable Discrepancy (APD) When AP enters an invoice with the associated PO number and there is not a three-way match between the PO, receiving records and invoice, Munis kicks off an APD workflow. The three basic reasons are insufficient receiving on the PO, unit price variance, or quantity variance. Munis determines the assigned approvers based on the assigned purchasing department during the creation of the requisition and the Department Director’s assignment of Purchasing Liaison (PL) and Department Approvers for the APD workflow. The workflow first goes to the PL to either correct the outstanding variance and reject the discrepancy or approve the discrepancy as appropriate. If the PL approves the discrepancy, then it flows to the assigned Department Approver to approve or reject the discrepancy. If approved, it authorizes AP to pay the invoice with the discrepancy. (See Appendix - Munis section of the Playbook). The APD screen shows the quantity and unit price or the amount from both the PO and the invoice but does not give the quantity/amount received on the PO. Therefore, it may be helpful for the PL to also pull up the PO receiving records to understand the discrepancy (See Appendix - Munis section of the Playbook).

Insufficient Receiving Insufficient receiving means that the Department has not received enough quantity/amount on the PO to authorize the quantity/amount on the invoice. When the PL receives an APD for insufficient receiving, the PL reviews the attached invoice and checks with the appropriate Department personnel to determine if the Department received the product/services and how much. If the PL determines the Department received the product/services, the PL completes the receiving on PO process as normal, then notes the resolution on the APD under Notes and rejects the discrepancy. This returns it to AP. AP reactivates the discrepancy in Munis and if resolved, continues the accounts payable process to pay the invoice. If the discrepancy is not resolved, the APD returns to the PL. If the PL determines the Department has not received the product/service, the PL/Department starts the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook) and notes it on the APD under Notes and holds the APD for resolution. If the resolution is that the invoice was inappropriately sent to the City (should not have been invoiced or incorrectly invoiced and the vendor will send a new

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INVOICES invoice), the PL rejects the APD with the resolution noted under the Notes section. AP then deletes the invoice. If the resolution is that the vendor will provide the product/service, the PL notes that under Notes and the PL holds the APD until the product/service is received, then when the product/service is received, the PL receives on the PO, notes the resolution on the APD and selects Reject.

Unit Price Variance An APD for unit price variance occurs when Quantity was selected for Received by during the creation of the requisition and the unit price on the invoice is greater than on the PO or when Amount was selected for Received by during the creation of the requisition and the invoice amount is greater than the PO authorized. The unit price on the PO should come from a contract or quote, and therefore, should be accurate. The PL works with the appropriate Department personnel and Vendor to determine why there is a unit price variance. If it is determined that the Vendor billed using an incorrect unit price, the PL/Department starts the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook) and notes it on the APD under Notes and holds the APD for resolution. If the resolution is that the Vendor will send a corrected invoice, the PL rejects the APD with the resolution noted under the Notes section. AP then deletes the invoice. If the Department determines that the unit price on the PO is incorrect, PL either processes a PO Change Order to correct the unit price (recommended solution when there will be other invoices against the PO); or if this will be the only invoice processed against the PO, the PL may note under the Notes section the reason why there was a unit price variance, why the invoice unit price is correct, and approve the unit price variance. Be aware that the variance cannot put the annual spend with the vendor into a different bidding parameter without additional procedures. Discuss this with Finance if that could happen. If the PL approves the discrepancy, then it flows to the Department Approver to approve the discrepancy. If approved, it authorizes AP to pay the invoice with the discrepancy.

Quantity Variance An APD for quantity variance occurs when AP enters an invoice with the associated PO number and the quantity on the invoice is greater than the PO authorized. If the Department determines that it received more product/service than the PO authorized, the PL either processes a PO Change Order to correct the quantity or the PL may note under the Notes section that the Department received the invoiced quantity and is going to keep the product/service and approve the quantity variance. Be aware that the variance cannot put the annual spend with the vendor into a different bidding parameter without additional procedures. Discuss this with Finance if that could happen. If the PL approves the discrepancy, then it flows to the Department Approver to approve the discrepancy. If approved, it authorizes AP to pay the invoice with the discrepancy. If the Department determines that the quantity variance is incorrect or the Department is returning the additional products, the PL/Department starts the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook) and notes it on the APD under Notes and holds the APD for resolution. If the resolution is the Vendor will send a corrected invoice, the PL rejects the APD with the resolution noted under the Notes section. AP then deletes the invoice.

Invoice Dispute Process State law requires the City to pay for goods and services received within thirty (30) days after the later of the delivery of the product/services or the invoice date, otherwise the City is required to pay the vendor interest. Therefore, it is important for Departments to enter their quantity/amount received promptly. An invoice may need to be disputed for such reasons as product not received, product damaged, services not received, and invoice amount incorrect. Under State law, the City is required to notify the vendor of a disputed invoice. Therefore, a Department shall work with the vendor to resolve the issue but shall not wait more than 10 days after AP notifies the Department of an invoice discrepancy to complete and send an Invoice Dispute letter to the vendor (template for the letter may be found on the Finance intranet page). It is recommended that the Department email the letter to the vendor with a read receipt requested to verify the vendor has received the notification. The Department shall send AP a copy of the letter. The Department is responsible to follow up with the vendor timely. If the dispute is resolved in the vendor’s favor, the City owes interest on the unpaid balance after the 30 days. P U R C H A S I N G P L A Y B O O K | CITY OF SOUTHLAKE

SURPLUS PROPERTY The City disposes of a surplus property item with an estimated net auction value greater than $500 through a public auction or internet sale to the highest bidder. For heavily damaged or items with an estimated net auction value less than $500, the City may donate the item to a nonprofit organization, utilize a recycler, or dispose of the item. The storage for these items and the personnel time required to manage the auction items, including meeting the highest bidder, is significantly more than the net proceeds and therefore, not cost effective. Departments coordinates disposal of property through Finance. When a Department identifies an item for disposal, they complete the Auction Form with an uploaded picture of the item. The link to the auction form is on the Finance intranet page. Finance sends an email to all Department Purchasing Liaisons notifying them that an item slated for disposal is available if their department could use it. If another department determines they can use it, they email Finance. Finance coordinates the transfer of the item between departments and notes the transfer on the Auction Smartsheet. If no other department can use the item, Finance determines the estimated net auction value. If the estimated net auction value is less than $500, Finance determines if there is a nonprofit organization or recycler the City partners with that will take the item and coordinates the transfer of the item. If no City partner desires the item, Finance reaches out to other non-profit organizations in the area and coordinates the transfer. If the City is unable to locate a non-profit organization that desires the item, the City disposes of the item. Finance records how an item was disposed of on the Auction Smartsheet. If the estimated net auction value is greater than $500, Finance shall complete the required documentation to post the item to the auction site. During the auction process, the Department retains most items at their location. Vehicles and equipment are stored at the Public Works Operations facility. Payments for auctioned items are made directly to the auctioneer, which forwards the net proceeds with documentation of items sold to Finance. After the item sells, Finance coordinates the pickup with the Department and the buyer.

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PURCHASE CARD PROGRAM The purchase card (P-card) program allows a more efficient, cost-effective method of purchasing small dollar transactions as well as high volume, repetitive purchases, reducing processing costs. Cardholders can use their P-cards for City-related allowable purchases with any vendor that accepts MasterCard. The City directly pays all P-card balances monthly. The program does not affect a Cardholder’s credit rating in any way. Cardholders are responsible for reading and following the JP Morgan Chase Cardholder Agreement (provided with the P-card) and the City’s purchasing policies and procedures (Purchasing Playbook). A Cardholder’s misuse of a P-card is subject to corrective action as outlined in the employee handbook, up to and including termination.

P-card Administrator The P-card Administrator (PA) has a direct relationship with JP Morgan Chase, the P-card processing bank, and administrates the City’s P-card program. All P-card questions and issues go through the PA. The PA processes all approved new P-card applications, approved limit changes, canceled P-cards, etc. The PA audits reconciled P-card statements.

JP Morgan Chase The P-card program is serviced using a team approach with JP Morgan Chase Customer Service Center. This center is available 24 hours a day, 7 days a week at 1-800-316-6056 to assist Cardholders.

Issuance of P-card The PA distributes P-cards directly to Cardholders. When a new P-card is issued, JP Morgan Chase sends it to the PA for distribution to the Cardholder. The PA shall not release P-cards to Cardholders until each Cardholder has gone through P-card training and has signed the Cardholder agreement. Initial training includes: • Purchasing Playbook • JP Morgan Chase website, including how to navigate to applicable information and the customer service number • Steps to complete if a P-card is lost or stolen • Single transaction and monthly limit change process • Steps to dispute a charge with JP Morgan Chase • Munis P-card statement reconciliation process • Cardholder Purchasing Card Agreement between the Cardholder and the City, which affirms the Cardholder has read and understands the City’s P-card policies and procedures, including general purchasing policies and procedures. The Cardholder and the PA both sign the agreement at the end of the training session. • Self-assessment for the purchasing and P-card training test successfully The Cardholder calls the activation number provided with the card to activate the P-card before using it. Upon receipt of the card, the Cardholder signs the back of the P-card and always keeps it in a secure place.

Spending Limits The PA assigns, through JP Morgan Chase, each Cardholder a monthly spending limit and a single transaction spending limit set by the Director and approved by the Chief Financial Officer (CFO). JP Morgan Chase does not allow a purchase outside the limits set. The Cardholder or Purchasing Liaison (PL) may request a limit increase for single transactions or monthly spending limits through the Limit Change form, which is on the Finance intranet page. All limit changes require Department Director approval. Increases of $1,000 or more also require CFO approval.

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P-CARD PROGRAM

Cardholder Responsibilities Other than travel cards, the City issues P-cards in the Cardholder’s name. Only the Cardholder shall make purchases with his/her P-card. Cardholders are responsible for the security of their P-card and the transactions made with it.

Cardholders shall use P-cards for City business only. Cardholders shall not use P-cards for the following: • Personal expenses • Travel expenses related to a spouse • Alcoholic beverages or tobacco products • Capital assets or CIP projects • Travel upgrades. For air fare, employees are to choose the most economical way to travel. Travel upgrades for personal comfort, preference or convenience shall be at the traveler’s expense. • Fuel purchases for the use of personal vehicle. The use of a personal vehicle when traveling is reimbursed through mileage. Cardholders are responsible to obtain an itemized receipt/invoice for each transaction. If a Cardholder has a missing receipt, he/she works with the vendor to obtain a duplicate receipt/invoice, pays the City for the missing receipt, or completes a P-card Exception Request (see P-card Exception Process under the Purchase Card Program section of the Playbook). Upon request of the PA or Department Director or when City employment ceases, the Cardholder shall return the card to the PA immediately.

Lost or Stolen Cards If a P-card is lost or stolen, the Cardholder shall immediately contact JP Morgan Chase Customer Service. After contacting JP Morgan Chase, the Cardholder notifies the PA and Director. Prompt action can reduce the City’s liability for fraudulent activity.

Disputed Charges Should a problem arise with a purchased item, service or charge, the Cardholder attempts to first resolve the issue directly with the vendor. Review of future statements is vital to ensure the account is properly credited for returns, credits, and disputed charges. If a Cardholder is unable to resolve a disputed item directly with the vendor, the Cardholder calls JP Morgan Chase or goes through the website and officially disputes the charge. JP Morgan Chase places the charge in a “State of Dispute” and the account may be given a provisional credit until receipt of adequate documentation from the vendor. If the documentation appears to be in order, JP Morgan Chase re-posts the transaction to the account and considers the dispute closed. If the charge is suspected to be fraudulent, JP Morgan Chase immediately freezes the card, continues the provisional credit, and investigates the charge. JP Morgan Chase issues a new card to the Cardholder, if appropriate. If JP Morgan Chase determines the charge is legitimate, they post the charge to the new account. If JP Morgan Chase determines the charge is not legitimate, they make the provisional credit permanent. JP Morgan Chase will not honor or assist the City with a disputed charge that is not reported within 60 days and the City is responsible for the charge.

P-card Statement Reconciliation The Department Director or designee assigns who is responsible for the completion of the P-card reconciliation process. In some departments, the individual P-card Cardholder (PH) is responsible, while other departments have it consolidated to one Purchasing Liaison (PL). The Department Director also assigns the P-card Statement Approver. On a monthly basis, the PA downloads the P-card statement transactions for the entire City from the JP Morgan Chase website and uploads them to the Munis Purchase Card program by the 8th of each month. If a PH has at least one transaction in the uploaded file, Munis sends a notification that the P-card statement is available for reconciliation to the Munis notification user assigned in the Purchase Card program. The assigned PH/PL reconciles and releases the P-card statements to the Statement Approver no later than the 15th of the month (See Appendix - Munis). The Statement Approver is to approve/reject the statement by the 20th of the month. (See Appendix - Munis).

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P-CARD PROGRAM

P-card Exception Process All Cardholders are required to follow all policies and procedures in the Purchasing Playbook. When there is an exception, the Cardholder must resolve it, or obtain approval from both the Department Director and Assistant City Manager (ACM) through the P-card Exception Request form. To request an exception, the Cardholder/Purchase Liaison (PH/PL) must complete and submit the P-card Exception Request form through Laserfiche, which the link is on the Finance intranet page. Laserfiche sends it through a workflow to the Department Director. If the Department Director approves the exception, the Laserfiche workflow forwards the request to an ACM. If the ACM approves the exception, Laserfiche sends a copy of the approved P-card Exception Request form to the PH/PL, PA, and archives to Laserfiche. The PH/PL attaches the APPROVED form to the transaction in Munis. If the exception is denied by either the Department Director or the ACM, the Laserfiche workflow returns it to the PH/ PL with a reason why. The PL communicates the resolution and any action required to the PH. The PH/PL resolves the issue immediately and attaches any documentation to the transaction showing the resolution.

P-card Statement Audits After the Statement Approver approves the P-card statement, the Munis workflow sends a notification to the PA that the statement is ready for the PA’s review. The PA audits each statement for the following: • Receipt is readable, itemized, agrees to the statement amount, and has no sales tax, except for travel. • No Capital Asset, CIP, travel upgrades, or fuel for personal vehicle purchases. • No split transactions to bypass the single transaction limit or bidding requirements. • Documentation of how the bidding requirements were met, if applicable. • The vendor is correct. • The correct object code was selected (for example, office supplies are charged to office supplies, not uniforms). • The purchase follows all State purchasing laws and City purchasing policies and procedures. If the PA determines all transactions follow the City’s policies and procedures, the PA approves and converts the statement to invoices and Accounts Payable processes the invoices through the Accounts Payable program. If the PA determines there is an issue with a transaction, the PA rejects the statement with an explanation of outstanding issues, which returns the statement to the PH/PL to correct. Once the PH/PL corrects the outstanding issues, they release the statement again for approval. The Statement Approver reviews and approves the statement again. If all statement issues are corrected or there is an APPROVED P-card Exception Request form attached, the PA approves and converts the statement to invoices and Accounts Payable processes.

P U R C H A S I N G P L A Y B O O K | CITY OF SOUTHLAKE

TRAVEL POLICY City of Southlake

Travel Policy Policy: Source: Category: Effective Date: City Council Approval Date:

Travel Policy City Council Finance Administration September 15, 2020 September 15, 2020

Purpose The purpose of this Travel Policy is to establish a policy for the allowances of travel expenses related to overnight City business. Authorized travelers should neither gain nor lose personal funds as a result of Cityrelated business expenses incurred on behalf of the City of Southlake (City).

Applicability This policy applies to all City employees, volunteers, board appointees and City Council elected officials acting within an official City capacity (traveler). For prospective employees, any reasonable and necessary expenses incurred in accordance with this policy may be reimbursed with the approval of the City Manager or designee.

Responsibility and Authority In accordance with Section 2.05 of the Home Rule Charter of the City of Southlake, City Council elected officials are entitled to reimbursement for expenses in the performance of their specific duties when approved by City Council. Department Directors shall ensure their department’s adherence to this policy. Department Directors shall determine and assign the appropriate approvers within their department. Approvers are responsible for ensuring the travel is necessary for City business, authorization of the travel, ensuring budgetary requirements are met, and expenses adhere to this policy.

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DEFINITIONS Advance Funds provided to a traveler prior to travel, typically via Travel Card.

Fiduciary Responsibility The responsibility of every City representative to safeguard the public trust and the use of taxpayer dollars.

Itemized Receipt Receipts must include business name, date, items purchased, price of each item and total. Credit card receipts that do not list the items purchased is not an acceptable receipt.

Meals and Incidental Expenses (M&IE) Includes the allowable cost of meals and incidental expenses based upon the rate set by the US General Services Administration (GSA).

Privately-Owned Vehicle Vehicle not owned or leased by the City.

Purchase Card (P-card) City-issued bankcard to a specific person used for payment of authorized City Business expenses.

Travel Card A temporary purchase card only used for travel-related purchases.

Travel Expense Ordinary and necessary expenses for traveling away from home on City Business, including expenses for conferences, seminars, training courses and other business activities related to the administration of municipal government that includes an overnight stay.

GENERAL REQUIREMENTS A traveler has a fiduciary responsibility to safeguard the public trust and the use of taxpayer dollars when making travel arrangements. Under the Texas Public Information Act, all expenses, including travel expenses, are open to public inspection and must be able to sustain the test of public review. Therefore, travelers and approvers are expected to complete travel documentation while recognizing they are subject to public scrutiny and the use of public funds should be transparent. It is the traveler’s responsibility to read and comply with the provisions of this policy. Violations of the policy may result in disciplinary action up to and including dismissal for City employees, and as to all travelers, curtailment of travel advances and reimbursements. All travel expenses must be approved and adhere to this policy. The City Manager or designee must approve all exceptions to this policy. Travel outside the continental United States is considered an exception to this policy and therefore, requires prior approval by the City Manager or designee. Other applicable administrative practices and policies, including the reporting of injuries, accidents or illness, are in force during travel. While on travel, if clarification of, and/or assistance with, existing policies and procedures is needed, the traveler should contact their supervisor.

PURCHASE & TRAVEL CARDS If the traveler has been issued a Purchase Card (P-card), the traveler shall use it for all City business related expenses while on travel. If the traveler has not been issued a P-card, the department’s Purchasing Liaison (PL) shall issue a Travel Card. Use of the P-card or Travel Card shall comply with the Purchasing Policy and the Travel Policy. The traveler shall reimburse the City within five business days from the travel return date for any non-reimbursable expenses charged to a P-card, including any M&IE over the daily maximum GSA allowance. P U R C H A S I N G P L A Y B O O K | CITY OF SOUTHLAKE

TRANSPORTATION City Vehicle The City provides vehicles that are available for City-related travel. The use of a City vehicle is encouraged, if available. Gasoline, parking, tolls, and emergency repairs to City vehicles are allowable expenses by the City. When possible, the traveler shall obtain gasoline from City facilities.

Privately-Owned Vehicle (POV) The City shall reimburse the traveler for POV mileage at the current Internal Revenue Service mileage rate, for miles traveled on official City business, plus parking and toll fees with itemized receipts. If the traveler receives a car allowance and chooses to use a POV, mileage reimbursement is not permitted. If a POV is used, only one traveler per POV, may claim reimbursement for mileage.

Rental Vehicles Rental vehicles are an allowable expense, when necessary, on City business. When making travel arrangements, the traveler shall utilize the most economical manner, which may include the Texas State Travel contract. The traveler shall choose the most reasonable vehicle type available, based on the use of the vehicle. While traveling together, travelers shall share vehicles to minimize costs. The City shall not pay for the use of a rental vehicle to accommodate family members or non-business associates while on travel with the authorized traveler. The City’s auto insurance includes rental car coverage, therefore the City shall not reimburse for collision and comprehensive coverage from the rental car company. Certificates of Coverage can be obtained from Finance prior to travel. Parking and toll fees of a rental vehicle are allowable expenses while on City business with itemized receipts.

Public Transportation The City encourages the use of public transportation when it is the most economical option, including shuttle services, buses, taxicabs, ride share services, and ferries. The cost of public transportation is an allowable expense, including any applicable tips, with an itemized receipt.

Air Travel The traveler shall purchase the most economical available seat at the time of purchase, which may be through the Texas State Travel contract. If a traveler misses a flight due to unrelated City business, any expenses incurred shall be at the traveler’s expense. Business class for international air travel is an allowable expense for City Council elected officials while traveling to a Sister City and conducting City business. If an airline charges check baggage fees, the City shall allow for the cost of one piece of baggage, with an itemized receipt. The traveler is responsible for any additional baggage fees charged by the airline, including additional bag fees for over-weight or oversize baggage fees.

LODGING Commercial lodging is an allowable expense, when necessary, on City Business. When making travel arrangements, the traveler shall utilize the most economical manner, which may include the Texas State Travel contract. The City permits separate rooms for each authorized traveler. Hotel taxes during travel are an allowable expense. If reserved accommodations are no longer needed, it is the responsibility of the traveler to ensure the room is canceled in accordance with the cancelation policy of the lodging entity.

MEALS & INCIDENTAL EXPENSES (M&IE) The daily maximum allowable M&IE includes the cost of meals and incidental expenses calculated using the rates set and periodically updated by the US General Services Administration (GSA).

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NON-REIMBURSABLE EXPENSES For the City to pay for or reimburse, the travel expenses shall relate to City business. The following expenses, but not limited to, shall not be paid or reimbursed by the City: • Alcoholic beverages or tobacco products; • Passports; • Loss of funds or loss/damage to personal belongings; • Childcare, eldercare, or pet care; • Personal entertainment not related to the conference; • Parking or moving violation fines; • ATM or banking service fees; • Expenses of accompanying spouses, dependents or others; or • Expenses related to vacations or personal trips in conjunction with travel, which are not related to City Business.

THIRD-PARTY REIMBURSEMENTS At times, travelers may have expenses incurred as an officer, board member or presenter for a professional organization. The City shall pay allowable expenses. However, an effort to have the requesting organization reimburse a portion or all of the expenses incurred is encouraged. The Third-Party Organization shall reimburse the City directly. Until the refund is received, the City shall record the travel expenses against the requesting department’s operating budget.

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TRAVEL PROCEDURES Requesting Travel Authorization All travel requires prior authorization using the Travel Plan & Authorization (TPA) Form. Requests should be submitted within 10 business days from the travel start date. This allows time for required approvals, making travel accommodations, and issuing a travel card, if necessary. As an exception to the general process, Public Safety follows established Emergency Management procedures for expenses paid for emergency management operations. The Traveler completes and submits a TPA. The Laserfiche link to the form is available on the Finance intranet page. The TPA walks the Traveler through travel accommodations, so the Purchasing Liaison (PL) can estimate the cost of the trip and then make the reservations after approvals. The TPA routes to the PL after submitted by the Traveler. The PL completes the estimated travel expenses for the following based on the travel accommodations the Traveler requested: 1. Airline 2. Lodging 3. Rental Vehicle 4. Registration Fee 5. Mileage 6. Meals - Using rates set by the US General Services Administration, determine the Meals & Incidental rate a. Go to GSA.gov b. Select the Travel tab c. Select Per Diem Rates Look-up d. Select the State for travel e. Enter the Zip Code or City based on the TPA f. Select Find Rates g. Rates appear under Meals & Incidentals (M&IE) Breakdown - Use rate under M&IE Total column 7. Other Expenses 8. Other Transportation 9. Total Estimated Expenses – Auto calculates based on the amounts entered The PL determines if the Traveler requires a Travel Card and enters the information on the TPA under the Travel Card section. The PL determines the amount requested on the Travel Card based on the total estimated expenses minus expenses paid for in advance by the PL and mileage reimbursement. If the PL needs an additional Travel Card as the Department’s travel cards are all issued during the time of travel, the PL contacts the P-card Administrator (PA) to obtain an additional travel card. The PL submits the TPA after completing the Purchasing Liaison and Travel Card sections. The TPA then routes to Department Approver, which reviews and either approves or rejects the request. If the TPA is rejected, it is sent back to PL for correction or just as a notification that the travel request is denied. The PL can correct the TPA and resubmit it for approval. If the Department Approver denies the travel all together, the Traveler receives an email that the travel is rejected.

Preparing for Travel Once the TPA is approved by the Department Approver(s) and a Travel Card is requested, the Laserfiche workflow notifies the PA. The PA increases the monthly limit on the Travel Card through the JP Morgan Chase website based on the PL requested amount for the travel dates noted on the TPA. After completing this process, the PA selects Funds Added button. If travel is changed, extended or the limit needs to be increased, the Department Director or designee e-mails the PA to increase the monthly limit and/or extend the travel dates. The PA makes the requested changes through the JP Morgan Chase website.

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TRAVEL PROCEDURES The approved TPA routes back to the PL to make travel reservations. The Training Coordinator books Public Safety registrations for the training and certification programs. The PL, Training Coordinator, and the Traveler use a P-card or Travel Card for all travel related expenses, except for mileage reimbursement. The PL issues the Travel Card to the Traveler before the travel begins, if applicable. The Traveler ensures that legible, itemized receipts are obtained and saved for all expenses during travel. Receipts must detail out what was purchased. Credit card receipts with the total only are not acceptable and the Traveler shall reimburse the City for the purchase if the receipt is not legible, not itemized or missing.

Returning from Travel If the Traveler used a P-card for travel expenses, the traveler follows the P-card Statement process (see Purchase Card Program section of the Playbook). If the Traveler used a Travel Card for travel expenses, the Traveler turns in the Travel Card and all receipts to the PL within three business days from returning from the trip. The PL reviews the TPA to makes sure the traveler did not go over their allowed daily meal allowance. If the Traveler did, the PL needs to reach out to the traveler to coordinate reimbursement to the City. The PL follows the P-card Statement process (see Purchase Card Program section of the Playbook).

Requesting a Reimbursement The Traveler completes and submits a Reimbursement form within five business days from returning from the trip. The Laserfiche link to the form is available on the Finance intranet page. The Traveler attaches supporting documentation. Once the Traveler submits the Reimbursement form, the form flows to the PL. The PL reviews it for accuracy and correct documentation, verifies that there is an approved TPA and approves or rejects the request. If the form is rejected and requires changes, the Traveler will have to complete a new form. If the PL approves the form, it flows to Accounts Payable (AP), which reviews it for correct documentation of expenses requested. AP either selects Received or Rejected in Laserfiche. If the form is rejected and requires changes, the Traveler will have to complete a new form. If approved, AP enters the expenses into the Munis Accounts Payable program, which kicks-off an Accounts Payable Invoice (API) workflow. The workflow approvers are assigned by the Department Director. After all approvals are obtained, AP is authorized to pay the expenses. If Third-Party reimbursement is selected on the Reimbursement form, the form flows to General Billing, which creates and sends an invoice to the third-party organization. After completing the billing, General Billing selects Billed 3rd Party, which completes the Laserfiche process by saving the final form to Laserfiche.

Reimbursing Expenses to the City The Traveler reimburses the City within five business days from the travel return date for any non-reimbursable expenses, including any M&IE over the daily maximum GSA allowance or expenses without an itemized receipt. The Traveler returns owed funds to a Central Cashier located in Town Hall or DPS HQ. The Traveler also provides the general ledger account codes to the Cashier. The Cashier provides the Traveler a receipt. The Traveler/PL includes the receipt with the Travel Card or P-card transaction documentation.

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CITY OF SOUTHLAKE | P U R C H A S I N G P L A Y B O O K

APPENDIX - MUNIS MUNIS COMMON SEARCH TOOLS Ranges and/or logical search characters can be used in your search. The following is a list of characters and an example of their use. Not all these characters can be used in all fields. For example, you cannot use the wildcard character (*) in a date field. NOTE: MUNIS is case-sensitive so a name entered as John Doe in MUNIS would not be found if the user put JOHN DOE in the name field when doing a search.

SYMBOL *

DESCRIPTION

EXAMPLE OF USE

Wildcard. Use this with any combination of letters or numbers before or after the symbol.

Office* returns any names that begin with Office (Office Max, Office Depot)

Greater Than

>1/16/07 returns all dates greater than the specified date.

Greater Than or Equal To

>=1/16/07 returns the specified date and all dates greater than the date specified

Less Than

<$10,000.00 returns all amounts less than the amount specified.

Less Than or Equal To

<=1/16/07 returns the specified date and all dates less than or equal to the date specified

Not Equal To

<>135 or !=135 used in Dept/Loc returns all departments except 135

Range

500:599 returns all amounts including the beginning and ending amounts

Pipe symbol. Used as “and”

Finds the named data items, regardless of the range. For example, 1/1/06|1/10/06|1/31/06 returns only the three dates

<> or != : or .. |

*Office* returns any names that contain the word Office (Staples Office Supply, ION Office Equipment, Office Max)

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CITY OF SOUTHLAKE | P U R C H A S I N G P L A Y B O O K

APPENDIX - MUNIS Vendor Search A Department can look up vendors either through the Munis Vendor Inquiry program or Munis Vendor Central.

Vendor Inquiry Departments may access Munis Vendor Inquiry program through Financials>Purchasing>Purchase Order Inquiry and Reports>Vendor Inquiry or Departmental Functions>Vendor Inquiry. The following is the Main screen of Vendor Inquiry:

Departments may search for vendors using any of the following fields or combination of fields in Vendor Inquiry: • Vendor – Assigned number, which is used to record all vendor activities in the Munis system. • Alpha – Vendor alpha sort value, which has a maximum of 21 characters. • Status – Pre-defined by Munis. The following are vendor statuses in Munis: • Active – Indicates a current vendor that may use for either PO or P-card purchases. • Bidder – The City currently does not use. • Inactive – Provides a warning during invoice entry that the vendor is inactive but does not prevent the usage of the vendor. The City currently does not use. • One Time Pay – Indicates a vendor number used one time to pay multiple recipients. Vendors cannot be updated to this status; they must be created as One Time Pay vendors. These vendors may only be used by Accounts Payable and the P-card Program. • Stop – Prevents the use of this vendor during requisition and invoice entry. P-card only vendor status is Stop and can only be used in the Munis P-card Statement program. • Temporary - Signifies that this vendor is only to be used for a short period of time. The City only uses this status for Utility Billing refunds. • Self Service – Indicates a potential vendor has added its information using Vendor Self Service. The Purchasing Division reviews the vendor information for completeness, works with the vendor to obtain any missing information, and then changes the status to Active. • Entity – The City uses only “1”. • Type – Defined by the City. The following are current vendor types in Munis: • EDUC – Education Institution • EMPL – Employee Reimbursement

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APPENDIX - MUNIS VENDOR SEARCH • GOVT – Government Entity • MEMB – Membership Organization • NPRO – Non-Profit Vendor • PURC – Product Vendors • REFN – Refund to Customer • SERV – Service Vendor • Reason - The City creates the reason codes. The following are the current reason codes: • BNF – Benefits / Insurance • EMP – Employee Vendor • FINA – Banks / Payment Processing • GOVT – Government Entity • MEMB – Membership • PAYR – Payroll • PCAR – P-Card Only • REFU – Refund to Customer • SOFT – Software • UTIL – Utilities Entity • VSS – Vendor Self Service • YEC – Year End Close Adjustments • Company Name – up to 50 characters • DBA – Doing Business As name for the vendor • Address – Searches can be by street or P.O. Box, City, Zip Code, or Country • Email – Email address • www – Website address • FID – Federal Tax ID

Vendor Central Departments can access Munis Vendor Central program through Financials>Accounts Payable>Vendor Processing>Vendor Central. The following is the initial search screen:

A main difference between Vendor Inquiry and Vendor Central is you must use wildcards or enter the exact information to search for a vendor in the Vendor Inquiry program. While in the Vendor Central program, you can type in part of the information without wildcards and it brings up all vendors with matching information. Also, in Vendor Central, capitalization (CAPS) does not affect the search results. For example:

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APPENDIX - MUNIS VENDOR SEARCH

To change between the above tile view to the grid view below, select the icon circled above.

The Advance Search allows you to search by the following other fields. You can also save your searches.

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APPENDIX - MUNIS Purchase Order (PO) Serach A Department can search for a PO either through the Munis Purchase Order Inquiry program or Munis Purchase Order Central program.

Purchase Order Inquiry Departments may access Munis Purchase Order Inquiry program through Financials>Purchasing> Purchase Order Inquiry and Reports>Purchase Order Inquiry or Departmental Functions>Purchase Order Inquiry. To search for a PO or group of POs, complete the following steps: 1. Select Search from the menu bar. 2. Complete any of the following fields or combination of fields:

3. Select Accept from the menu bar. 4. If the search generates multiple POs, use the Browse function from the menu bar to view all POs, and select the PO you want by double clicking on it or use the arrows on the bottom ribbon to move between POs.

Purchase Order Central Departments can access Munis Vendor Central program through Financials>Purchasing> Purchase Order Inquiry and Reports>Purchase Order Central. The following is the initial search screen:

One of the main differences between Purchase Order Inquiry and Purchase Order Central is you must use wildcards or enter the exact information to search in the Purchase Order Inquiry program. While in the Purchase Order Central program, you can type in part of the information without wildcards and it will display POs with matching information. Also, in Purchase Order Central, capitalization (CAPS) does not affect the search results. Departments may find the advance search is a better tool than the initial search. The advance search searches by any of the following combinations of fields. You can also save your searches.

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APPENDIX - MUNIS PURCHASE ORDER (PO) SEARCH

To change between the above tile view to the grid view below, select the icon circled above.

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APPENDIX - MUNIS General Ledger (GL) Account Search Departments may look up GL account information either through the Munis Account Inquiry program or Munis Account Central program.

Account Inquiry Program Departments may access Account Inquiry through Financials>General Ledger Menu>Inquires and Reports> Account Inquiry. Departments may search desired general ledger information by: 1. Select Search from the menu bar. 2. Select an Org, Object, etc., or use Munis Common Search Tools. • Seach by 1 Org Code:

• Seach by 2 Org codes, 1 Obj code:

• Search by 1 Org, Range of Obj codes:

• Search by Budget Rollup Code:

3. Select Accept from the menu bar to start the search. 4. Select Browse from the menu bar to view the accounts in a list.

Customize the Browse Screen • Sort the list - select a column name to sort.

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APPENDIX - MUNIS GENERAL LEDGER (GL) ACCOUNT SEARCH • Select/de-select columns. • Right-click on any column name to open the menu. • Scroll through the list and check or uncheck columns as desired. Then close the box by clicking anywhere on the screen outside of the box.

• Rearrange the columns by selecting and holding the column that you want to move and drag it where you want it. • Change the split of the view on the screen - hover over the dividing line until you see the up and down arrow, then drag the dividing bar between the upper and lower parts of the screen down.

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APPENDIX - MUNIS GENERAL LEDGER (GL) ACCOUNT SEARCH Drilling Down to the Detail To view the details behind an account, select the yellow folder next to the amount you want to view.

Actuals (amount paid out) POs created, vendor not paid Reqs not yet converted to POs Available budget

Detail, Months, and Totals Functions

Detail - Select this to see data for a specific date range or other options.

Months - Select this to see data by month.

Totals - Select this to total all selected accounts from the search. Within this function you can then open a yellow folder and all transactions from all accounts are included in the detail.

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APPENDIX - MUNIS GENERAL LEDGER (GL) ACCOUNT SEARCH Source Codes

• API - Check or EFT payment. Double select on the line to get more detail. • GEN - Journal Entry. Highlight the line, then select Journal for more detail. • GNI - Another type of Journal Entry. Highlight the line, then select Journal for more detail. • POE - Purchase Order Encumbrance. Double select on line to get more detail. • POL - Purchase Order Liquidation. Highlight the line, then select Journal for more detail.

Account Central Departments can access Munis Account Central Program through Financials>General Ledger Menu>Inquires and Reports>Account Central. The following is the first search screen:

The Advanced Search allows you to search by the following fields. You can also save your searches.

The Search Results appear in tile or grid format. The following is the tile format:

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APPENDIX - MUNIS GENERAL LEDGER (GL) ACCOUNT SEARCH To change between the previous tile view to the grid view below, select the icon circled above.

Select the tile/description you would like to drill down further on. Once selected there are 5 tabs across the top (Account, Segments, Monthly Data, Budget Rollup, and Current Year vs. CFWD).

Account Tab Departments can see transaction information on the account tab. To see different Munis transactions, select the desired type of transactions (Original Budget, Transfers, Revised Budget, Actual, Encumbrances, Requisitions, Available Budget, or All). You can change the year to see prior years detail. You can also filter any column by typing in the box under the column title.

Segments The Segments tab shows the account’s segment groups.

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APPENDIX - MUNIS GENERAL LEDGER (GL) ACCOUNT SEARCH Monthly Data The Monthly Data tab shows the transactional information in a graph. To see different Munis transaction types, select the desired type of transactions (Actuals, Encumbrances, Budget Transfers, or Budget).

Budget Rollup The Budget Rollup tab shows the budget rollup code that the account is currently included in.

Current Year vs. CFWD The Current Year vs. CFWD tab lists the current year and carry forward (CFWD) amounts, if applicable.

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APPENDIX - MUNIS Year-to-Date (YTD) Budget Report Departments may create budget reports in summary or in detail through the Munis General Ledger YTD Budget Report program by accessing the program through Financials>General Ledger Menu>Inquires and Reports>YTD Budget Report. 1. Select Search from the menu bar. 2. Select an Org, Object etc., or use Munis Common Search Tools.

Search by one Org code:

Search by Org codes in a range:

3. Select Accept from the menu bar to initiate the search. 4. Select Report Options from the menu bar for report settings. 5. This is an example of report settings for a report with Totals only (no detail). You may work with the settings for different report looks. Selections only need to be made on the first tab called Print Options.

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APPENDIX - MUNIS YEAR-TO-DATE (YTD) BUDGET REPORT 6. This is an example of report setting for a report with detail. You may work with the settings for different report looks. Totals only is not checked, and the Additional Options tab must be updated.

Be sure to update the Print journal detail on this tab!

7. Select Accept to initiate the report. 8. Journal Entry Sort option – Select (3) Invoice, then OK.

9. Select Back from the menu bar. 10. Select PDF or Excel to generate the report:

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APPENDIX - MUNIS Requisitions Creating a Requisition Departments may access Munis Requisition Entry program through Financials>Purchasing>Purchase Order Processing>Requisition Entry or Departmental Functions>Requisition Entry and then complete the following steps to process a requisition: 1.

Select Add from the menu bar. The screen should look like the following:

2. Complete all applicable sections on the first screen.

Main Information Section Dept/Loc If you need to change the auto populated department, enter or select a different department. The auto populated department is based on the user’s assigned department in Munis. Users have access only to departments that the Munis Administrator has assigned. Fiscal year The fiscal year should auto populate. If the year is not correct, please contact the Purchasing Division before proceeding. Requisition number Auto populates to the next number for the department. The format of the requisition number is DDYYXXXX (DD = first 2 digits of the department numbers, YY = Budget Year, and XXXX= sequential number assigned by Munis starting with 0001). General Description Field Enter a brief description of the overall requisition. This description does not appear on the printed PO. It is for internal use. Entered Date Auto populates and should not be changed. Convert to Auto populates and should not be changed. PO expiration Do not enter. It will auto populate to the last day of the fiscal year when the requisition is processed.

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APPENDIX - MUNIS REQUISITIONS Received by Determines the method by which a purchase order created from the requisition is received. If Quantity is selected, the Department receives by quantity and the invoice can only be processed for the number of units received at the unit price on the requisition. If Amount is selected, the department receives by the dollar amount that the Department is authorizing Accounts Payable to pay. Departments cannot change this selection through a PO Change Order. General Notes These allow internal communication about the requisition. By selecting the checkbox Print on PO, the note will print on the PO at the bottom.

Vendor Information Section Vendor - Enter Vendor number (see Munis Instructions - Vendor Search). Munis auto populates the vendor information based on the individual vendor set-up. Verify the Remit address is correct for this purchase as some vendors have multiple remit addresses. Accounts Payable processes the payment based on the selected remit address from the requisition.

Shipping and Billing Section Verify that the Ship to address is correct for this purchase or select a different location.

Miscellaneous Section Type – Currently the City only uses two types. N – Normal - Purchase order for specific goods or services. (majority of requisitions) B – Blanket - A purchase order that is intended to be used over a long period of time. PO – Auto populates once the requisition is converted to a PO. 3. After completion of all sections on first screen, Select Accept. Second screen should look like: If Quantity was selected under Receive by:

If Amount was selected under Receive by:

4. Complete all applicable sections on the second screen. Description Detail description of the line item. This description prints on the PO.

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APPENDIX - MUNIS REQUISITIONS Notes These allow internal communication about the line. By selecting the checkbox “Print on PO”, the note will print on the PO at the bottom. Quantity If using Quantity under Receive by section on first page, enter the number of units being ordered. If Amount was selected under Receive by section on first page, it is greyed out with a quantity of 1. Unit Price Only when Quantity is selected under Receive by section on first page. The Department receives by quantity and Accounts Payable only processes the invoice for the number of units received at the unit price on the requisition. UOM Only when Quantity is selected under Receive by section on first page. It should default to Each, do not change. Amount Only when Amount is selected under Receive by section on first page. The Department receives by dollar amount that the Department is authorizing Accounts Payable to pay. Discount The City does not use. Freight Enter the amount of delivery. If this option is used and there is a partial receiving of products/services from the PO, Munis will recognize the freight proportionally to the percentage of the receiving to the overall PO. This may not be the best option in most situations. Credit The City does not use. Org, Object, Project Enter the general ledger account number. 5. Select Accept from the menu bar. 6. If the Department receives an Over Budget Message, the Department determines if a budget transfer is required and complete the budget transfer process before completing the requisition. 7. If the Department needs to add more lines to the requisition, select Add from the menu bar. 8. Repeat steps 4 through 7 until all lines have been added. 9. Select Back from the menu bar. 10. Attach applicable documents per the Bidding Parameter section of the Playbook by selecting the down arrow next to attach.Select Open TCM.

11. A Tyler Content Manager (TCM) window opens. Select the Plus sign “+” on the ribbon.

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APPENDIX - MUNIS REQUISITIONS 12. Select the Up Arrow on the ribbon.

13. Either drag the document to the Import Document box or Select Choose File and select desired file.

14. Select Import. 15. Select Save in the upper left corner. You must save after each document.

16. If additional documents need to be uploaded, repeat steps 14 through 18. 17. Close the TCM window. 18. Select Release from the menu bar to release the requisition into the approval workflow.

Approving a Requisition A requisition flows through a workflow process to obtain approvals. The workflow depends on the total value of the requisition, and the assigned Department approval levels as determined by the Director. Munis notifies an assigned Approver either through email and/or the dashboard, depending on the Munis user’s notification delivery selection, when a requisition is ready for his/her approval. The Approver is responsible to review the requisition for compliance with the City’s purchasing policies and procedures (Playbook), including attached documents, and appropriateness of the requisition. The Approver may access the requisition using one of the following ways: 1. From the Tyler Menu, select Departmental Functions> Workflow Assistant. 2. Directly from the Approval Tile. 3. From the Tyler Menu, select Departmental Functions> Requisition Approvals. If the Approver determines the requisition is complete and appropriate, the Approver selects Approve, adds optional comment if desired, and selects Accept. The requisition moves to the next Approver or if the last Approver, Munis sends the Purchasing Liaison (PL) a notification that the requisition is approved.

If the Approver determines the requisition is not complete or appropriate, the Approver selects Reject, adds required comment, and selects Accept. The requisition moves back to the originator for correction. Note: Using the Hold status will not stop the requisition from auto forwarding after the set number of days programmed in the workflow setup.

Handling a Rejected Requisition If a requisition is rejected by an Approver, the PL receives notification of the rejection. Complete the following steps to correct any issues: 1. Login into to Munis Requisition Program.

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APPENDIX - MUNIS REQUISITIONS 2. Select Search. 3. Enter Status as 1 (Rejected) and the fiscal year or the requisition number.

4. Select Accept. Note: To view the rejection comments the Approver entered in Munis, select Approvers on the bottom ribbon and it appears on the top of the next screen. Select back from the menu bar to return to the Requisition screen.

5. After selecting the applicable rejected requisition, select Activate from the menu bar to return the requisition to an Allocated status, which allows you to correct. 6. Status changes to Allocated. 7. Select Update from the menu bar on the screen requiring changes and make the required changes. 8. Once the PL addresses the required changes, select Release from the menu bar to release it into the workflow.

Converting a Requisition to a Purchase Order (PO) To convert an approved requisition to a PO, Departments access the Munis Requisition Conversion program through Financials>Purchasing>Purchase Order Processing>Requisition Conversion and then complete the following steps: 1. Select Search. 2. Enter the applicable search information.

3. Select Accept. The program lists all requisitions for the PL. 4. Select Select from the menu bar. 5. Select Approve under Code next to the requisition to convert.

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APPENDIX - MUNIS REQUISITIONS 6. 7. 8. 9.

To view the requisition, select View Requisition from the menu bar. Select Back from the menu bar. Select Accept from the menu bar. Select Process from the menu bar. The requisition disappears from the list.

Printing the PO To print the PO after the requistion conversion, Departments access the Print Purchase Orders program through Financials>Purchasing>Purchase Order Processing>Print Purchase Orders and then complete the following steps: 1. Select Export PO(s).

2. Select Define from the menu bar. 3. Select Print and change the Included PO Numbers to the desired PO.

4. Select Accept from the menu bar. 5. Select Select from the menu bar (number of records found appears on the bottom ribbon). 6. Select Ready Forms.

7. Select the down arrow and then select Process Purchase Order.

8. Select OK. Munis will send the originator of the requisition and Vendor, if the Vendor has requested email notifications, an email with the PO attached. P U R C H A S I N G P L A Y B O O K | CITY OF SOUTHLAKE

APPENDIX - MUNIS Purchase Order Change Orders Creating a Change Order Departments may access Munis Purchase Order Change Orders program through Financials> Purchasing>Purchase Order Processing>Purchase Order Change Orders and then complete the following steps to process a Purchase Order (PO) Change Order: 1. Select Search from the menu bar. 2. Enter the PO number that needs a change order. 3. Select Accept from the menu bar. 4. Select General Notes and add any applicable notes.

5. 6. 7. 8. 9. 10.

Select Add from the menu bar. Enter the reason for the change order and any other relative information. Select Accept from the menu bar. Select Back from the menu bar to move back to the PO Change Order screen. Select on the Line Items from the menu bar. To move between line items, use the arrows on the bottom ribbon.

Adding an Additional Line a. Select Add. b. Complete the following areas: i. Description (under Journal Information section) - the reason for the change order ii. Quantity iii. Description (under Item section) – line item description, which shows on printed PO iv. Unit Price v. UOM (Unit of Measurement) – Each vi. Requested by vii. Org, object, and project code c. Select Accept.

Modifying an Existing PO Line a. Navigate to the line to be modified. b. Select Update. c. Complete the following areas, if applicable: i. Description (under Journal Information section) - the reason for the change order ii. Quantity (under New section) iii. Unit Price (under New section) iv. Description (under Detail section) – line item description, which shows on printed PO v. Requested by (under Detail section) vi. Org, object, and project code d. Select Accept. e. Repeat steps until all lines that need to be modified are completed.

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APPENDIX - MUNIS PURCHASE ORDER CHANGE ORDER Creating a Change Order (Continued) 11. Select Back to move back to the PO Change Order screen from line items. 12. Select the down arrow next to Attach. 13. Select Open TCM.

14. A Tyler Content Manager (TCM) window opens. Select the Plus sign “+” on the ribbon.

15. Select the Up Arrow on the ribbon.

16. Either drag the document to the Import Document box or Select Choose File and select desired file.

17. Select Import. 18. Select Save in the upper left corner. You must save after each document.

19. If additional documents need to be uploaded, repeat steps 14 through 18. 20. Close the TCM window. 21. After all change order information has been entered, select Release. This releases the Change Order into the workflow process to the assigned Approvers.

Approving a Change Order PO Change Orders flow through a workflow process to obtain approval. The workflow depends on the total PO value after the Change Order, and the assigned Department approval levels as determined by the Director. Munis notifies the Approver either through email and/or the dashboard, depending on the Munis user’s notification delivery selection, when a PO Change Order is ready for the Approver. The Approver is responsible for reviewing the Change Order for compliance with the City’s purchasing policies and procedures (Playbook), including attached documents, and appropriateness of the Change Order. The Approver may access the Change Order using one of the following ways: a. From the Tyler Menu, select Departmental Functions>Workflow Assistant. b. Directly from the Approval Tile.

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APPENDIX - MUNIS PURCHASE ORDER CHANGE ORDER If the Approver determines the Change Order is complete and appropriate, the Approver selects Approve, adds optional comment if desired, and selects Accept. The Change Order moves to the next Approver or if the last Approver, Munis sends the Purchasing Liaison (PL) a notification that the Change Order is approved.

If the Approver determines that the Change Order is not complete or appropriate, the Approver selects Reject, adds required comment, and selects Accept. The Change Order moves back to the originator for correction.

Note: Using the Hold status does not stop the Change Order from auto forwarding after the set number of days that is determined in the workflow setup.

Handling a Rejected Change Order If a Change Order is rejected by a workflow approver, the PL receives notification of the rejection. Complete the following steps to correct any issues: 1. Login into to Munis Purchase Order Change Orders Program. 2. Select Search. 3. Check the box for Change Order and select Rejected under Status.

4. Select Accept. 5. After selecting the applicable rejected Change Order, select Reactivate from the menu bar to return the Change Order to Created status to make changes. 6. Select Yes to the following question.

7. Under Journal Description, enter the reason for Change Order.

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APPENDIX - MUNIS PURCHASE ORDER CHANGE ORDER 8. Select Accept. The Change Order Status will be at created status.

9. Select Update on the screen that changes need to occur and make the required changes. Note: To view the rejection comments from the Approver, select Approvers and then All POM Approvers on the workflow ribbon, the reason appears at the top of the next screen. Select Return on the ribbon to return to the Charge Order screen.

10. Once the required changes are complete, select Release to release it into the workflow.

Printing a Change Order Once the PO Change Order is approved, the PL prints the purchase order by going to the Print Purchase Orders program through Financials>Purchasing>Purchase Order Processing>Print Purchase Orders and completing the following steps: 1.

Select Export PO(s).

2. Select Define from the menu bar. 3. Select Reprint and change the Include PO Numbers to the desired PO.

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APPENDIX - MUNIS PURCHASE ORDER CHANGE ORDER 4. Select Accept from the menu bar. 5. Select “Select” from the menu bar (number of records found appears on the bottom ribbon). 6. Select Ready Forms from the menu bar.

7. Select the down arrow and then select Process Purchase Order.

8. Select OK. Munis sends the PL and the Vendor an email with the PO attached.

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APPENDIX - MUNIS PURCHASE ORDER CHANGE ORDER

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APPENDIX - MUNIS Receiving on PO’s Departments may access the Purchase Order Receiving program through Financials>Purchasing> Purchase Order Processing>Purchase Order Receiving and then complete the following steps to receive services/products on a PO: 1. Enter applicable PO number in the search box (See Munis Instructions – Purchase Order Search)

2. Click on the Purchase Order Number. “Received by” Types (Amount vs. Quantity) a. If 100% of the PO was received at the same time no matter the “Receive By” type, place checkmarks next to Full shipment and Close PO and if applicable, enter the Packing Slip number. b. If the “Received by” on the Requisition was Amount and receiving a partial amount of the total PO, enter the dollar amount for each line in the Amount Receiving column and if applicable, enter the Packing Slip number. If there are multiple lines and some of the lines were fully received, place checkmarks next to those lines and enter the dollar amount for lines that are partially received in the Amount Receiving column.

c. If the “Received by” on the Requisition was Quantity and receiving a partial amount of the total PO, enter the quantity received for each line in the Quantity Receiving column and if applicable, enter the Packing Slip number. If there are multiple lines and some of the lines were fully received, place checkmarks next to those lines and enter the quantity received for lines that are partially received in the Quantity Receiving column.

3. Place a checkmark on the Close PO when this is the last receiving and the Department wants the PO closed out.

4. Select Save.

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APPENDIX - MUNIS RECEIVING ON PO’S 5. Select Attachments to attach any applicable documents.

6. Select PO Receivable.

7. A Tyler Content Manager (TCM) window will open. Select the Plus sign “+”.

8. Select the Up Arrow on the toolbar.

9. Either drag document to Import Document box or select Choose File and select the desired file.

10. Select Import. 11. Select the Save icon in the upper left corner. You must save after each document.

12. If additional documents need to be uploaded, repeat steps 8 through 12. 13. Close the TCM window.

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APPENDIX - MUNIS Accounts Payable Discrepeancies When a Purchasing Liaison (PL) receives a notification from Munis that an APD is waiting for resolution, the PL researches and determines the appropriate resolution. Then complete the following steps to complete the APD: 1.

Select Update.

2. Tab through Assigned to and Department status (3 tabs). 3. Enter the resolution or if the Department is waiting on a resolution enter what the Department is waiting on under the Notes section. Note: Tab through any Program-Generated discrepancy lines.

4. If approving a Unit Price Variance or Quantity Variance, check the Override box.

5. Select Accept from the menu bar. 6. Select Approve or Reject at the bottom of the screen.

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APPENDIX - MUNIS P-Card Statement Reconciling a P-card Statement The assigned P-card Holder/Purchasing Liaison (PH/PL) reconciles and releases the P-card statements to the Statement Approver no later than the 15th of the month. Complete the following steps to reconcile a P-card Statement: 1. Log on to Munis. 2. Open the Purchase Card Statement program using one of the following ways: a. From the Tyler Menu, select Financials>Accounts Payable>Invoice Processing>Purchase Cards>Purchase Card Statements; b. Select Purchase Card Statements from your favorites if you have saved it to your favorites; or c. Directly from your Notification Tile (If you use this process, please skip down to step #7). 3. To search for a P-card Statement, select Search from the menu bar. 4. Under Status, Select New.

5. Select Accept from the menu bar. This brings up any P-card Statements assigned to you in the New status. 6. If you have multiple P-card Statements assigned to you, use the Browse function from the menu bar to view all statements in the New status, and select the desired statement by double clicking on it. 7. To view, code and upload the receipt for each transaction, do one of the following: a. Double-click on the transaction in the list under the Transactions section; or

b. Select Transactions from the menu bar.

8. On the Transactions screen, select Update from the menu bar. 9. Update the following, as applicable: a. Card Holder for Transaction – for most, you should not need to change this. The PL documents the traveler’s name for Travel Cards. b. Vendor – Auto-populates if the Federal Tax ID (FID) exists in the Vendor Database in Munis. If the FID does not exist in Munis, vendor 999993 appears with the name of the business from the JP Morgan import. Vendor 999993 is the default P-card one-time vendor. i. If the vendor name begins with “SQ*”, please leave the vendor as 999993. ii. It appears most refunds do not include the FID in the JP Morgan import and therefore, default to vendor 999993. Change it to the correct vendor number by searching through the menu or searching the vendor number in Vendor Inquiry or Vendor Central.

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APPENDIX - MUNIS P-CARD STATEMENT iii. If the vendor is a one-time registration or travel vendor, please leave the vendor as 999993. iv. For all other vendors that come through as 999993, the PH/PL shall contact the P-card Administrator to determine if a new vendor needs to be added to the system. If the PA determines and adds a new vendor, the PH/PL shall update the vendor number with the number provided by the PA. Note: Walmart and Sam’s Club use the same FID and therefore, auto populates with the Company Name of Walmart/Sams Club. c. Charge Description - Update field, using all CAPS, to accurately describe the purchase and reason for the purchase, if applicable. The field allows you to enter 100 characters, but only the first 50 characters flows into the AP invoice process, and only the first 30 characters appears in the comment section of the General Ledger Account Detail. The better the description, the easier to see what the purchase was for, which helps department personnel in researching issues and preparing for the next year’s budget. d. Commodity code – Leave blank. e. Contract – Leave blank. f. Invoice Number – If applicable, enter the invoice number exactly as it appears on the invoice, including leading zeros, dashes, periods, etc. g. Org.Obj.Project – Update to the applicable account number, as it defaults to 00122003-599999. Leave the column titled “A” with N. i. If the amount needs to be split between multiple accounts, you may use the percentage or amount column to allocate. ii. If you do not have access to the Org.Obj.Project you need to code the transaction to, please reach out to the P-card Administrator. iii. If the account coding is not changed, the PA rejects the entire P-card Statement and sends it back to the PH/PL for correction and it requires review and approval again by the assigned Statement Approver. h. Notes - Optional, but a good way to communicate to the Statement Approver and P-card Administrator any information to better understand the transaction. The folder turns orange when a note has been added. i. Select the Notes folder.

ii. Type the desired information. iii. Select Stamp Top or Stamp Bottom. iv. Select Save. v. Select Back to return to the transaction screen. 10. After updating the above fields, select Accept from the menu bar. 11. If you get a warning similar to the following, it means that the Org.Obj.Project field has not been updated or the Org.Obj.Project selected is in a budget rollup code that is over budget .

a. If the Org.Obj.Project was not updated, update to the correct Org.Obj.Project. b. If the Org.Obj.Project is correct but is over budget, a budget transfer needs to be processed. Work with the applicable person in the Department to process a budget transfer. After the budget transfer has been processed in Munis, update the Org.Obj.Project.

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APPENDIX - MUNIS

REQUISITIONS

P-CARD STATEMENT 12. Select the down arrow next to Attach from the ribbon and then select Open TCM to upload the detail receipt and any other supporting documents.

a. Receipt / Invoice i. Verify the receipt agrees to the amount charged on the P-card Statement. ii. Verify the receipt is readable, itemized (no total only receipts) and has no sales tax (only exception is for travel). iii. Verify no capital asset or CIP purchases on P-card, must use a P.O. iv. Verify no travel upgrades. For air fare, staff is to choose the most economical way to travel. Travel upgrades for personal comfort, preference or convenience shall be at the traveler’s expense. v. Verify no fuel purchases for the use of personal vehicle. The City reimburses the use of a personal vehicle through mileage. A Cardholder may use a P-card for fuel for a City vehicle. vi. Verify an itemized receipt for room service charges on a hotel bill is attached and the room charges and room service charges are coded correctly to lodging and meals. b. Additional documentation - If the purchase is over $3,000, verify that either the required documentation is attached or there is information under the Notes section documenting how the bidding requirements were met. Bidding requirements are the same when using a P-card as they are with a P.O. c. If applicable, verify an APPROVED P-card Exception Request form is attached for all exceptions to the City’s P-card / Playbook polices and procedures. See the P-card Exception Process under the Purchase Card Program section of the Playbook. 13. A Tyler Content Manager (TCM) window opens. Select the Plus sign “+” on the upper left corner.

14. Select the Up Arrow on the toolbar.

15. Either drag the document to the Import Document box or select Choose File and select desired file.

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APPENDIX - MUNIS P-CARD STATEMENT 16. Select Import. 17. Select the Save icon in the upper left corner. You must save after each document.

18. If additional documents need to be uploaded, repeat steps 13 through 17 for each document. 19. Close the TCM window. 20. Repeat Steps 8 through 19 for each transaction by using the arrows at the bottom of the screen to move between transactions on the transaction screen.

21. After all transactions are coded and receipts uploaded, select Back from the menu bar. 22. Select Release from the menu bar. This releases the Statement into the workflow process to the assigned Approver. You know the Statement was released into the workflow process when the status changes from New to Released. 23. If the following warning message appears, select Yes, if you have attached the required documentation to each transaction. This means you attached the support documents correctly to the transactions and not to the Statement .

Approving a P-card Statement The P-card Statement Approver is to complete the approval process by the 20th of each month. Complete the following steps to Approve or Reject the P-card Statement: 1. Log on to Munis. 2. Open the Purchase Card Statement program using one of the following ways: a. From the Tyler Menu, select Financials>Accounts Payable>Invoice Processing> Purchase Cards>Purchase Card Statements; b. Select Purchase Card Statements from your favorites if you have saved it to your favorite; or c. Directly from your Approval Tile (If you use this process, please skip down to step #7). 3. To search for a P-card Statement, select Search from the menu bar. 4. Under Status, select Released.

5. Select Accept from the menu bar. This brings up any P-card Statements assigned to you in the Released status, waiting for approval. 6. If you have multiple P-card Statements assigned to you, use the Browse function from the menu bar to view all statements in the Released status and select the desired statement by double clicking on it.

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APPENDIX - MUNIS P-CARD STATEMENT 7. To review each transaction, do one of the following: a. Double-click on the transaction in the list under the Transactions section; or

b. Select Transactions from the menu bar. 8. From the Transaction screen, review the following: a. Charge Description – Review for appropriate description, which should accurately describe the purchase and reason for the purchase, if applicable. The field allows 100 characters, but only the first 50 characters flows into the AP invoice process, and only the first 30 characters appears in the comment section of the General Ledger Account Detail. The better the description, the easier to see what the purchase was for, which helps department personnel in researching issues and preparing for the next year’s budget. b. Org.Obj.Project – Review for the appropriate account coding. c. Notes – Optional, but a good way for the PH/PL to communicate to the Statement Approver and P-card Administrator any information to better understand the transaction. The folder turns orange when a note has been added. If the folder is greyed out, there is no note.

9. If something is incorrect, the Approver may either reject the Statement, which sends it back to the PH/PL to correct, or if it is a minor change, the Approver has the ability to correct it by selecting the Update icon on the menu bar and making the required change. 10. Select the down arrow next to Attach from the menu bar and then select Open TCM to view the attached documents.

11. Review all documentation. When there are multiple document files, you can move between documents by selecting the documents on the left-hand side of the screen. a. Verify the transaction is appropriate and for an allowable purchase. b. Verify the receipt agrees to the amount charged on the P-card Statement. c. Verify the receipt is readable, itemized (no total only receipts) and has no sales tax (only exception is for travel). d. Verify there is sufficient documentation of how the bidding requirements were met, if applicable. e. Verify the purchase follows both State and City policies and procedures. f. If applicable, verify an APPROVED P-card Exception Request form is attached for all exceptions to the City’s P-card / Purchase Playbook procedures. See P-card Exception Process under the Purchase Card Program section of the Playbook. 12. After determining the appropriate documents are attached and agrees to the charges on the P-card Statement, you can close the TCM window and move back to the Transactions screen. 13. Repeat Steps 8 through 12 for each transaction by using the arrows at the bottom of the screen to move between transactions.

P U R C H A S I N G P L A Y B O O K | CITY OF SOUTHLAKE

APPENDIX - MUNIS

REQUISITIONS

P-CARD STATEMENT 14. After all transactions have been reviewed, select Back from the menu bar. 15. Select Approve from the ribbon at the bottom of the screen. This releases the statement into the workflow process for final review by the PA.

Processing a Rejected P-card Statement If at any time, an Approver determines the P-card Statement should be rejected and sent back to the PH/PL, the Approver selects the Reject button on the bottom of the Statement screen and adds the reason why. If more explanation is required than the Munis allows, the Approver should send an email to the PH/PL. 1.

If a statement is rejected by an Approver, the PH/PL receives notification of the rejection via email or desktop notification depending on Munis user’s notification selection. Complete the following steps to correct any issues: a. Login into to Munis P-card Statement Program (see Reconciling a P-card Statement under Munis Instructions - P-card Statement in the Playbook). b. From the Statement screen, search for Statements with the status of Rejected. c. After selecting the applicable rejected statement, select the Reactivate option on the menu bar to return the Statement to New status to make changes.

Note: To view the rejection comments the approver entered in Munis, click on Approvers on the bottom ribbon and it appears on the top of the next screen. Select Back on the menu bar to return to the Statement screen.

2. The following are possible ways to correct some common issues: a. Attach the missing, readable, or correct documentation. b. Work with the vendor to credit back the sales tax and attach documentation showing the vendor credited the P-card. c. Reimburse the City for sales tax paid, missing receipts, or upgrade travel purchased. Attach the receipt from the City cashier documenting the correction. d. Obtain and attach the APPROVED P-card Exception Request form. See the P-card Exception Process under the Purchase Card Program section of the Playbook. 3. Once the PH/PL corrects the outstanding issues, select Release. The Statement Approver reviews and approves it again. If all Statement issues are corrected, the PA approves and converts the Statement to invoices and Accounts Payable processes the invoices through the Accounts Payable program.

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APPENDIX - MUNIS

APPENDIX - CENTRAL BUDGET ENTRY Central Budget Entry 1.

In the Tyler Menu, type in Central Budget Entry in the search bar and select the link.

2. The Central Budget Entry screen will appear.

3. Filter your view to see the ORG you want to work with by selecting Advanced on the menu bar.

4. Search for the ORG by clicking on the magnifying glass or entering the ORG number directly. At this screen, you can also continue to filter as needed. When finished select OK.

5. Your screen should now show you just your selected ORG. Note: You also have some other options on this screen you can adjust before you start entering your budget. For instance, adjusting your account columns is a good idea so it mirrors what you are required to enter. For the current budget entry, you will want to see current budgeting year, the following five years, and the current year projected at minimum. To adjust this, go to Account Columns.

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APPENDIX - CENTRAL BUDGET ENTRY CENTRAL BUDGET ENTRY 6. To adjust Account Column, select Account Columns from the menu bar. A new screen will appear. Insert a check mark, in the box, next to each item you want to see on your main screen. Select ok when you are finished. Your screen will now show you future years, as well as the year you are budgeting for.

Note: If you click the arrow next to the projection. This will expand the top and show you your Target Number for this ORG. You cannot exceed your target number in Munis. If you are entering a line item that will push your total over the ceiling, it will kick it back and tell you in red that you cannot exceed your ceiling. This means you will need to lower your number somewhere else or lower the amount you are entering. At all times, you must stay at or below your target number. Note: For budget entering purposes, you will not enter anything starting with a 51**** object code EXCEPT Overtime and Contract Labor. Everything else starting with a 51**** is imported into your budget from HR based on your current, approved, employees. In addition, you WILL NOT enter any allowances (auto, cell, etc.). HR will generate these when they import salary projections.

Detail by Month for an Object Code that CURRENTLY HAS DETAIL Object codes that currently have detail will show the detail tree. You will also see that their budget dollars are greyed out for the upcoming budget year. The total will only get updated when you update each detailed line item for that object. Note: Object codes that do not currently have detail will show the plus sign. 1.

To modify object codes that currently have detail, click on the detail tree.

2. A new screen will appear that shows the current detail.

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APPENDIX - CENTRAL BUDGET ENTRY CENTRAL BUDGET ENTRY 3. To view or update current detail, select the stack in the far right corner. Note: This is also how you update the month the item will be budgeted in.

4. A new screen will appear.

5. On this screen, you can adjust the following at minimum: • Period: This is the month you are budgeting this item in. Keep in mind, this is the month you would spend the money for this item, or the month that the vendor invoices for this item and accounts payable sends payment. That might not be the same month that the PO is generated. (Note: Period 1 is October, Period 2 is November, etc.) • Quantity: How many of these are we budgeting for. • Unit Cost: This is the cost for one. • Amount: The amount will generate based on the quantity and unit cost. • Projected: This is what you are projecting the amount to be for the current fiscal year you are in. • Description: Detailed information about this budget item. • Justification: The why to support your budget for this line item. • Classification Note: There are other fields that you can fill in as well, but they are not required. These fields just provide more information to anyone, including you, when you go back and look at the detail about this item. 6. Enter all the information and then select save and close. Munis will take you back to the original screen for that object. 7. To add additional budget dollars and detail to this object code, select the Add Detail button from the menu bar. See the section Adding a Budget with Detail for an Object Code that Currently DOES NOT HAVE DETAIL.

8. Once you have completed adding detail for this object, select return. This will take you back to the previous screen.

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APPENDIX - CENTRAL BUDGET ENTRY CENTRAL BUDGET ENTRY

Detail by Month for an Object Code that currently DOES NOT HAVE DETAIL Object codes that do not have detail will show the plus sign. You will also see that their budget dollars are 0.00 or black text for the upcoming budget year. Note: All object codes that have a budget dollar must include detail. The budget detail is necessary because this is the only way to budget it in the correct month. 1.

To add detail to object codes that do not currently have detail, click on the plus sign.

Note: A new screen will appear that has no detail to begin with. 2. To begin, select add detail.

3. Select add detail under the Operating/Capital category.

4. On this screen, you can adjust the following at minimum: • Period: This is the month you are budgeting this item in. Keep in mind, this is the month you would spend the money for this item, or the month that the vendor invoices for this item and accounts payable sends payment. That might not be the same month that the PO is generated. (Note: Period 1 is October, Period 2 is November, etc.) • Quantity: How many of these are we budgeting for. • Unit Cost: This is the cost for one. • Amount: The amount will generate based on the quantity and unit cost. • Projected: This is what you are projecting the amount to be for the current fiscal year you are in. • Description: Detailed information about this budget item. • Justification: The why to support your budget for this line item. • Classification Note: There are other fields that you can fill in as well, but they are not required. These fields just provide more information to anyone, including you, when you go back and look at the detail about this item.

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APPENDIX - CENTRAL BUDGET ENTRY CENTRAL BUDGET ENTRY 5. Enter all the information and then select save and close. It will take you back to the original screen. You can now see the detail you just added. It has also added a detail tree to the object code that was not previously there.

6. Repeat these steps until you have added all the detail necessary for this object code. 7. When you have completed this object code, select Return on the menu bar.

Adding a Projected Totals for Future Years 1.

To add projected totals for future years, double click on the number under each year.

2. Enter the total for the year.

3. Once you enter the total, hit the tab button to go to the next year.

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APPENDIX - CENTRAL BUDGET ENTRY CENTRAL BUDGET ENTRY 4. Repeat the process until the remaining years are complete. Note: You will continue this process for each object code in the org. 5. Once you have completed your updates, select save changes at the bottom of the screen.

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CITY OF SOUTHLAKE | P U R C H A S I N G P L A Y B O O K

APPENDIX - HUB SEARCHAPPENDIX - MUNIS

REQUISITIONS

Historically Underutilized Business (HUB) Search As the City is in two different counties, the PL shall do 2 HUB searches, one for Tarrant County and one for Denton County. Complete the following steps to obtain the list of applicable HUBs for each county: 1. Go to the State Comptroller’s website, https://mycpa.cpa.state.tx.us/tpasscmblsearch 2. Select HUBs Only under the SEARCH FOR section.

3. Under the MULTIPLE VENDOR SEARCH section, enter commodity class code in the NIGP Class Code column and the item code under the Items column. (The commodity codes can be found by clicking on the NIGP CLASS CODE link or at https://mycpa.cpa.state.tx.us/ commbook. Select either the Class Code or Description link to drill down to the item codes under the selected class code. Choose the code which most closely matches your requirements.) Leave Highway District(s) blank.

4. Under the BUSINESS CATEGORY / VENDOR LOCATION SEARCH section, select Tarrant or Denton under County Location.

5. Under the SELECT FIELDS FOR OUTPUT section, select Click here for more options for a dropdown menu. Select the following: a. Vendor ID b. Company Name c. Contact Person d. Mailing Address e. City f. State g. Zip h. County i. Email j. Phone k. HUB Eligibility 6. Under the OUTPUT OPTIONS section, select Excel Spreadsheet from the dropdown menu for the Output as and Vendor Name for the Sort by.

7. Select SEARCH. (It creates an Excel Spreadsheet of vendors based on criteria selected.) 8. Copy the email addresses into an email and send the request for a quote/bid/proposal to all HUB vendors located in Tarrant and Denton counties. Add request read receipt on the email to document that is delivered.

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APPENDIX - VENDOR LIFE CYCLE Pre-Vendor Phase

Vendor Life Cycle Managem Spending $3k<x<$25k with Vendor?

Dept. requests 3 written quotes (HUB reqt)

Vendor completes City Background Questionnaire

In-House Bid Process

Start

Vendor Identification/ Market Research

Spending > $25,000 with Vendor?

Yes

Vendor(s) complete RFB/RFP

Vendor completes City Background Questionnaire

Vendor Evaluation/ Ranking

Vendor Short List Created

Professional Service?

Yes

Vendor(s) complete RFQ

Vendor completes City Background Questionnaire

Vendor Evaluation/ Ranking

Vendor Short List Created

Emergency or Sole Source?

Yes

Complete Emergency or Sole Source Memos

LGC Exemption ?

Co-Op or ILA?

Obtain Quote with Co-Op Number or ILA Docs

Vendor completes City Background Questionnaire

Obtain Vendor Evaluation/ Ranking Criteria

Risk Mitigation Steps

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APPENDIX - VENDOR LIFE CYCLE Pre-Vendor Phase

gement - Pre-Vendor Phase

rt List

Yes

rt List

teps

Is Vendor contract >$500k ?

VBC Report w/ Gradient Solutions

Vendor Final Selection

Vendor Awarded Purchase / Contract (Council, CMO or Dept)

Vendor OnBoarding

Vendor Becomes Active

Legend: Action

Result

REV 10/2021

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APPENDIX - VENDOR LIFE CYCLE Active Vendor Phase

Vendor Life Cycle Management

Yes

Department Receives on PO - Quantities Received / Service Completed Satisfactorily & Per Contract Specifications

Department Periodically Inspects & Documents Product / Service Meets Southlake Quality Standards

Is Vendor Performance or Product Satisfactory ?

Start

Vendor Performance / Quality Management

Department Notifies Vendor in Writing of Deficiencies

Yes

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APPENDIX - VENDOR LIFE CYCLE Active Vendor Phase

ment - Active Vendor Phase

Ye s

Periodic Vendor Review / Vendor Re-submits City Background Questionnaire to Purchasing as part of Contract Renewal Letter (RFB)

s Department Checks for Current: 1) Licenses 2) Insurance 3) Bonds (Min Annually)

Is Contract >$50,000?

Periodic Audit of MUNIS Active Vendor List - Maintain Accurate Records

No Department Conducts Periodic Vendor Review / Vendor Re-submits City Background Questionnaire to Department (Min Annually)

Vendor Obligations Completed

Risk Mitigation Steps

Vendor Corrects Deficiencies ?

Department Escalates Issues to CMO for Resolution

P U R C H A S I N G P L A Y B O O K | CITY OF SOUTHLAKE

APPENDIX - VENDOR LIFE CYCLE Post Vendor Phase

Vendor Life Cycle Management - Post Vendor Phase

Start

Vendor Performance Evaluation

Department Shall Complete a Post Vendor Evaluation Form (Required >$50k; Optional <$50k)

Department Obtains Maintenance Bonds if Applicable

Department Liquidates & Closes PO

Vendor Life Cycle Ends

Risk Mitigation Steps REV 10/2021

CITY OF SOUTHLAKE | P U R C H A S I N G P L A Y B O O K

P U R C H A S I N G P L A Y B O O K | CITY OF SOUTHLAKE

Purchasing Playbook - November 2021

Articles inside

HUB Search Instructions

Travel Procedures

Munis Instructions

Travel Policy

Receiving

Surplus Property

General Purchasing Information

Bidding Parameters

Purchase Card Program

Purchasing Policy

Invoices

Vendor Life Cycle