Cleveland County Finance & Purchasing Department

Policies

The intent of written policies is to help all County departments comply with financial regulations and recommendations. The purpose of written policies is to apply consistent principles throughout the County regarding compliance with all financial-related laws, regulations, rules, and other orders from federal, state, and local governments.

County Finance Guidance

Many financial requirements are set by the State of North Carolina in the interest of protecting the public interest. The County intends to comply with all related federal, state, and County requirements to conduct the County's financial business fairly, reasonably, and effectively. Ultimately, it is the responsibility of appropriate elected officials to ensure that the managers who report to them fulfill their responsibility for implementing and maintaining a sound and comprehensive framework of internal control. To verify compliance with all applicable rules and regulations, the County Finance & Purchasing Department follows a number of practices:

• to exercise prudence and integrity in the management of funds and in all financial transactions


• not knowingly sign, subscribe to, or permit the issuance of any statement or report which contains any misstatement or which omits any material fact


• to have a financial reporting system in place that is sufficient to provide reasonable assurance that management can prepare financial statements in conformity with generally accepted accounting principles (GAAP)


• to evaluate whether the County's financial reporting system can detect not only material fraud or abuse, but also any questionable accounting or auditing practices, that could jeopardize the integrity of financial reporting


• to encourage and facilitate the reporting of fraud or abuse and questionable accounting or auditing practices


• to encourage employees to report to the County Finance Director, County Manager, or County Commissioners instances of management override of controls


• to periodically evaluate relevant internal control procedures to verify that those procedures 1) are adequately designed to achieve their intended purpose, 2) have actually been implemented, and 3) continue to function as designed


• to determine what specific actions are necessary to remedy any disclosed weaknesses, in cooperation with appropriate departmental managers or designees, upon completion of any evaluation of internal control procedures

County Internal Audit Guidance

As a rule, a formal internal audit function is particularly valuable for those activities involving a high degree of risk (e.g., complex accounting systems, contracts with outside parties, a rapidly changing environment). The County Finance & Purchasing Department has an internal audit function performed by the Senior Finance Accountant and Finance Accountant. Amongst their many other responsibilities, the two employees assist management in monitoring the design and proper functioning of the comprehensive internal control policies and procedures. In this capacity, the two employees act as an additional level of control and help to improve the government’s overall control environment. The two employees also play a valuable role conducting special investigations and studies.

County Contracting Guidance

First, the County is not bound by a contract entered into by an individual who does not have authority to contract on its behalf. And, contracting procedures are designed to promote fairness and objectivity, to avoid violation of state conflict-of-interest laws, and to avoid the appearance of impropriety in contracting decisions under the following rules:

• Contracts that involve the expenditure of funds included in the budget must be "pre-audited" to ensure that they are being spent in accordance with a budget appropriation and that sufficient funds remain available in the appropriation to pay the obligation created by the contract.


• A public official or employee may not obtain a direct benefit from any contract in which he/she is involved.


• A public official or employee who could obtain a direct benefit from a contract may not influence or attempt to influence anyone else to enter into the contract.


• A public official or employee may not accept or solicit any gift, reward, or promise of reward in exchange for recommending, influencing, or attempting to influence the award of a contract.


• A contractor (recent, present, or near future) may not give any gift or favor to any public official who has responsibility for preparing, awarding, or overseeing contracts.


• A public official or employee may not use confidential information for personal gain, to acquire an economic benefit in anticipation of his/her own official action, or to help another person acquire an economic benefit from these actions.


• The County encourages use of minority contractors in major building construction or repair projects and requires prime contractors to make good-faith efforts to attain the County's established minority participation goal.

County Purchasing Guidance

The intent of purchasing guidance is to make vendor-county relations pleasant and professional. The County employs a Purchasing Specialist to aid this effort. The purpose of the Purchasing Specialist is to maintain continuity of services and supplies to the various county departments by providing assistance toward purchasing at the lowest cost consistent with the quality and quantity required.

The County strives to conduct all purchasing activities according to the North Carolina General Statutes, County policies, and recommendations of the School of Government. Certain rules follow (certain exceptions do apply):

• For all purchases over $200, a purchase order is required for all County departments.


• For all purchases over $500, County departments must obtain at least three quotes or bids.


• For all purchases over $30,000, the Purchasing Specialist helps coordinate activities to ensure compliance with rules and regulations.


• Informal bids for equipment, supplies, or material items less that $90,000 will remain confidential until awarded.


• Purchases of equipment, supplies, or material items that is valued at $90,000 and above are processed by the Purchasing Specialist through a formal bid process.


• Informal bids for construction/renovation/repair projects less that $500,000 may remain confidential until awarded.


• Purchases of construction/renovation/repair projects that is valued at $500,000 and above are processed by the Purchasing Specialist through a formal bid process.


• In the formal bid process, the County will issue written specifications, publish a legal advertisement for at least seven days, consider only sealed bids as eligible, and (in some situations) require a bid bond. Other requirements may be needed in certain circumstances.


• The County reserves the right to reject any and all bids.

Sales Call Guidance

All qualified vendors and sales representatives are invited to call between the hours of 9 a.m. to 4 p.m., Monday through Friday, except County holidays. Call in advance and make an appointment at a time convenient to the purchaser during normal business hours. State clearly when making the appointment that it is to be a sales call and give description of the product or service offered. And, have a brief presentation to explain the features of the product or service.

The Purchasing Specialist or other purchaser can be expected to:

• be available for appointments during normal business hours on reasonable notice


• be on time to meet the salesperson


• listen attentively to the presentation and try to determine whether the product or service will benefit the county


• have appropriate staff at the meeting or arrange a future meeting so that the product can be evaluated


• conduct all purchasing activities in such a manner as to develop and maintain good public, vendor, and internal relations


• encourage fair and open competition


• maintain integrity at all times, keep free from any personal obligations to vendors, and respect their confidence


• respect authority at all times and not use it for advantage or gain


• promote the goodwill of the County at all times

Contact Information

Telephone: (704) 484-4807

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last updated May 1, 2009