Page 118 - Pantego FY22 Operating Budget

2. All purchases over $1,000 must be approved by the Town Council. A memo
must be attached to the purchase order request.
3. When the Town Manager and Department Head approves and issues a
purchase order, it signifies that the proper approvals for expenditure
authorization have been obtained and that an appropriation is available to accept
the charge.

E. PROMPT PAYMENT. All invoices approved for payment shall be paid by the Finance
Department within thirty (30) calendar days of receipt. Procedures will be used to take
advantage of all purchase discounts where considered cost effective. However,
payments will also be reasonably delayed maximizing the Town’s investable cash,
where such delays do not violate the agreed upon payment terms.

F. EQUIPMENT FINANCING. Equipment is accounted for at the original acquisition cost,
which includes purchase price plus any costs incurred to place the equipment in service.
Equipment may be leased or financed when the unit purchase price is $30,000 or more
and the useful life is at least four years.

G. RISK MANAGEMENT. The Town will aggressively pursue every opportunity to provide
for the Public's and Town employees' safety and to manage its risks. The goal shall be
to minimize and/or prevent the financial impact to the Town due to claims or losses
through risk transfer and liability insurance.

H. INTERGOVERNMENTAL RELATIONS. When feasible, the Town will coordinate efforts
with other governmental agencies to achieve common policy objectives, share the cost
of providing government services on an equitable basis, support appropriate favorable
legislation at the state and federal levels, share facilities and develop joint programs to
improve service to its citizens.

VII. ASSET MANAGEMENT

A. INVESTMENTS. The Town shall invest the Town’s funds in accordance with the
provisions of the current Bank Depository Agreement and/or in any negotiable
instrument that the Council has authorized under the provisions of the Public Funds
Investment Act, and in accordance with the Town’s Investment Policy.

B. CASH MANAGEMENT. The Town's cash flow will be managed to maximize the cash
available to invest. Such cash management will entail the centralization of cash
collections, where feasible, including property tax payments, utility bills, municipal fines,
building and related permits and licenses, and other collection as appropriate. Cycle
billing will be used where appropriate.

C. FIXED ASSETS AND INVENTORY. These assets will be reasonably safeguarded and
properly accounted for, and prudently insured. A fixed asset of the Town shall be defined
as a purchased or otherwise acquired piece of equipment, vehicle, furniture, fixture,
capital improvement, addition to existing capital investments, land, buildings, or
infrastructure. The cost or value of any such acquisition must be $5,000 or more within
an expected useful life greater than two years. All departments with inventory are
required to conduct a physical inventory under their control on at least an annual basis.
Refer to the Town’s Fixed Assets and Inventory Procedures for more detail.

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