Procurement Methods

Procurement Methods

Petty Cash

Purpose: To reimburse an employee for small incidental purchases.

Appropriate use of the Petty Cash: Petty cash funds may be used for small incidental nonrecurring cash purchases that do not exceed $150.00. The use of petty cash should not be considered as a substitute for

regular procurement procedures. It is recommended that wherever possible a Village issued credit card/procurement card be used in the

place of petty cash.

Requests for reimbursement using petty cash must be accompanied by the Petty Cash Form (Appendix F).

These forms must be completed and then submitted to the Accounts Payable Clerk.

Advance Check Request

Purpose: To request a check for payment when an invoice is not issued.

Appropriate use of Advance Check Request for Payment: Occasionally, a check is needed when there is

no invoice. These occurrences include, but are not limited to:

1. An employee request for reimbursement for out of pocket expense.

2. Vendors requiring payment in advance.

3. Mail in catalog orders requiring pre-payment.

When the Advance Check Request form is used, a cash receipt, a written quote, or a copy of the catalog

order must be submitted as supporting documentation.

For a copy of the Advance Check Request form see Appendix G.

Purchase Orders

Purpose: To provide a legal document that places an obligation on both the Village and the vendor. When

properly endorsed by the Finance Department, the purchase order obligates the Village to purchase the

items listed at the prices stated. The vendor is obligated according to the terms and prices stated on the

purchase order to deliver the goods or services. The purchase order provides specifications for goods and

services ordered and shipping and billing information.

Appropriate Use of the Purchase Order: A purchase order shall be used for procurement of any item or service that requires a written order or any purchase of $250.01 or more. Purchase orders are not

required for prepaid orders.