I. PROCEDURE
• The operating expenditure approval is outlined in Appendix 1 and detailed below.
• Payment for all operating expenditures will be supported by invoices, packing slips or receiving documents as applicable and their required approvals.
• Goods/products expenditures
• Budgeted routine goods/product expenditures of $50,000 or less will require approval by the Division Director and Director of Finance.
• Budgeted routine goods/product expenditures of more than $50,000 will require approval by the General Manager and Director of Finance.
• Unbudgeted goods/products expenditures of $100,000 or less will require approval by the
General Manager and Director of Finance.
• Unbudgeted goods/products expenditures of more than $100,000 will be required to follow the bid process (Procedure 152.3), be recommended by the Finance and Audit Committee and approved by the Board of Directors.
• Service expenditures 

    All services require a Certificate of Insurance with the limits provided in Procedure 152.3 and
    a completed W-9.
    o  Budgeted services of more than $50,000 annually will require a contract, and will be
         required to follow the bid process (Procedure 152.3), and the contract terms and contractor
         approved by the Board of Directors.
    o  Unbudgeted services of $50,000 or less will require General Manager and Director of
         Finance approval.
    o  Unbudgeted services of more than $50,000 will be required to follow the bid process
         (Procedure 152.3), be recommended by the Finance and Audit Committee and approved
         by the Board of Directors.
    o  Management will review with the Finance and Audit Committee all contracts for
        professional services such as, but not limited to, the services of attorneys, accountants,
        engineers and architects. These professional services agreements may be awarded for up
        to a five (5) year term. Contract terms for all other types of service agreements cannot
        exceed three (3) years.
    o  Management will review with the Finance and Audit Committee all contracts for services
         greater than $50,000
    o  On multi-year service agreements, such as, but not limited to, garbage collection and ditch
        cleaning, the contract may include cost plus language for annual increases, due to
        inflationary costs rather than awarding the contract on a fixed fee basis for the entire
        contract term.


II. RESPONSIBILITIES
General Manager, Director of Finance and POA staff.

III. SCOPE
This procedure covers all operating expenditures.

IV. DEFINITIONS

V. RELATED POLICIES OR DOCUMENTS
Procedure 152.3
Appendix 1

QUESTIONS?