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1. PURPOSE STATEMENT
The purpose of this policy is to:
- promote a consistent understanding of the authority, roles, and responsibilities of those
with delegated purchasing authority in most situations;
- outline clear delegations of financial authority to enable effective financial management
for the municipality;
- ensure financial accountability in the management of financial resources entrusted to the
municipality;
- define the municipalities approach to procurement, pursuant to the provincial legislation
and regulations;
- clarify roles and responsibilities to ensure adequate financial oversight and operational
effectiveness.
2. DEFINITIONS
- "Act" means the New Brunswick Procurement Act, S.N.B, 2012, c.20;
- "Authorized purchaser or signing authority" means a municipal employee or
representative with delegated authority to make financial transactions on behalf of the
municipality, pursuant to this Policy;
- "Chief Administrative Officer" means the head of the municipal administration. The
individual is the only employee who reports directly to Council "CAO";
- "Clerk/Treasurer" means the employee appointed to oversee financial and accounting
procedures and serve as the municipal Clerk, pursuant to section 74(1) and 76(1) of the
Local Governance Act, SNB 2018, c.18.;
- "Construction" means, in the context of procurement, a construction, reconstruction,
demolition, repair or renovation of a building, structure, road or other civil engineering or
architectural work and includes site preparation, excavation, drilling, seismic
investigation, the supply of products and materials, the supply of equipment and
machinery if they are included as an incidental to the construction, and the installation
and repair of fixtures of a building, structure, road or other civil engineering or
POLICY
Department:
Administration
FINANCIAL MANAGEMENT &
PROCUREMENT POLICY
Effective Date: January 1, 2023
Last Reviewed Date: January 9, 2023
architectural work, but does not include professional consulting services related to the
construction contract unless they are included in the procurement;
- "Goods" means in relation to procurement, moveable property (including the costs of
installing operating, maintaining or manufacturing such moveable property) and includes
raw materials, equipment and other physical objects of every kind and description
whether in solid, liquid, gaseous or electronic form, unless they are procured as part of a
general construction contract;
- "Purchasing Card(s)" means any municipal and departmental credit card used for the
purposes of regular purchases.
- "Services" means, in the context of procurement, all services including but not limited to
printing, garbage collection, snow removal, janitorial services, studies, utilities,
consulting, professional services;
- "Unbudgeted expense" means expenditures that are not included in the budget and are
unplanned at the time of the budget being passed and approved by council.
3. PURCHASING THRESHOLDS
Purchasing thresholds outline the approval authority of budgeted expenditures. The following
applies to expenses projected in the operating or capital budget, as approved annually by
Council:
Total cost, excluding HST
Approving Authority
$1-$999
Employee
$1000-$9999
Department Head
$10,000-$29,999
Chief Administrative Officer
$30,000+
Council
Pursuant to the CAO-Council Policy, the Chief Administrative Officer is permitted to authorize
unbudgeted expenses of up to $5000. All unbudgeted expenses exceeding $5000 require
authorization from Council before purchase.
Authorization is required for the purchase of all goods, services, or construction. Before goods
are purchased, authorization must be provided by the appropriate authorized purchasing agent.
Upon receipt of goods, the invoice must be signed by the appropriate approvers prior to payment.
For all expenses over the $30,000 threshold, the motion of Council serves as the proper
authorization for the expense(s).
4. PURCHASING CARD(S)
- Approval thresholds outlined in this policy are also applicable to purchases made on
purchasing cards.
- All purchases of goods and services must be accompanied by an original receipt outlining
the product(s) purchased. Employees authorized for the purchase are required to sign the
original receipt and indicate the general ledger (GL) account for the charge to be
reconciled to and in the event that the receipt does not provide a description, note the
good that was purchased.
- In the event that the total amount, before taxes, exceeds the employees approval
threshold, signature is required from the appropriate signing authority pursuant to this
policy.
- Department Heads are responsible for ensuring their purchasing card receipts are
maintained and provided to the Treasurer by the end of each month to reconcile with the
appropriate monthly statement.
- Credit card statements, along with supporting approval documents, will be prepared by
the Treasurer and submitted to the CAO for approval on a monthly basis before
reconciliation occurs.
5. INVOICE AUTHORIZATION & PAYMENTS
- Department Heads are responsible for ensuring that goods and services are received prior
to authorizing payments.
- All Vendor invoices should be sent to [email protected] for payment. In the event
that an invoice is sent to an employee and/or Department Head, it should be forwarded to
[email protected] to ensure payment.
- Employees authorized to approve expenses are required to provide their signature on the
invoice to serve as approval that goods/services have been delivered and approved, and
must indicate the appropriate general ledger (GL) for the invoice to be charged to.
- Cheques and/or EFT reports, along with supporting approval documents, will be prepared
by the Treasurer and submitted to the CAO as required.
6. COMPETITIVE PROCUREMENT
Costs that exceed $3000 are subject to competitive procurement practices.
Department Heads, in consultation with the Chief Administrative Officer as required, are
responsible for determining the most appropriate method of procurement of goods, materials,
supplies, and equipment based on factors such as cost, quantity, availability, etc.
The following indicates the bid solicitation and award process, based on cost(s) excluding HST:
- Goods or services under $3000: can be charged to the corporate card(s), pursuant to the
appropriate approval authorities;
- Goods or services between $3000 and $10,000: telephone quotations or request for
quotes are to be sought with the basis of the award going to the lowest bidder;
- Goods or services between $15,001 and $29,999: bidding process to be determined by
Department Head in consultation with the Chief Administrative Officer as required. The
basis of the award will be pursuant to the Procurement Act;
- Goods or services between $30,000 and $121,199: bidding process to be determined by
the Chief Administrative Officer in consultation with the Department Heads. The basis of
the award will be pursuant to the Procurement Act and requires authorization of Council;
- Goods or services exceeding $121,200 or construction expenses exceeding $100,000:
open, public competitive bidding process required as stipulated in the Act and requires
authorization from Council.
While soliciting RFPs or using alternative procurement methods, a minimum of three (3)
Vendors should be solicited where sufficient competition is available. In no circumstances can
expenses be split or modified with the intent to avoid competitive procurement processes in this
Policy.
7. SUPPLIERS & VENDORS
The municipality aims to provide transparent and fair bidding opportunities for municipal
contracts and services, pursuant to the Act and this Policy. During the procurement process,
tenders serve to notify prospective suppliers of the municipality's intentions to buy and are
advertised on the New Brunswick Opportunities Network (NBON).
In the event of alternative methods of procurement, when official tenders are not required,
vendors can be solicited or invited to bid by the municipality, or submit expression of interest. If
a vendor(s) of a product would like to be added to a roster of prospective suppliers, they must
send an overview of their products and/or services [email protected]. This list is maintained
by Administration. Inclusion on this list does not guarantee services with the municipality as
contracts will be awarded pursuant to this Policy.
The municipality reserves the right to use a suppliers record of performance when evaluating the
potential for the provision of good and services for the municipality.
It is in the best interest of the municipality to secure professional services with vendor(s) on a
retainer basis and/or that enable long-term relationships with the municipality. The following are
services amongst those deemed to favor the municipality when long-term relationships are
maintained with vendors:
1. Legal services;
2. Insurance;
3. Banking and purchasing cards;
4. Auditing services;
5. Financial services;
6. Communications and public relations services (not campaign or project-specific);
7. Engineering services.
When vendor(s) are secured on retainer, the services should be put out for competitive proposals,
suggested every five (5) years.
No bidder or potential vendor shall contact any member of municipal administration, included
elected official(s), in attempt to influence the outcome of a contract award. Any attempt to
influence the procurement process may result in the disqualification of the bidder on the
project(s) that are deemed to have been influenced (or attempted to be influenced) by the
bidder(s).
8. METHODS OF PROCUREMENT
Tender
A tender is considered a competitive bid document with detailed specifications and drawings,
which is used to solicit pricing from Vendors and typically requires a performance surety.
Tenders are awarded to the lowest Bidder meeting the specifications.
As outlined in the New Brunswick Procurement Act, procurement of goods or services in excess
of the following amounts require public tenders:
Tender Type
Estimated Value
Minimum Advertising Time
Goods
$121,200 or more
Ten calendar days
Services
$121,200 or more
Ten calendar days
Construction
$100,000 or more
Ten calendar days
Tenders may also be issued for projects under the threshold, if a tender is deemed the most
appropriate method of procurement.
Request for Quotes (RFQ)
A request for quotation (RFQ) is when a quote from a supplier for the purchase of specific
products or services is requested. RFQs generally means the same thing as Call for bids and
Invitation for bid. The lowest bid that meets the specifications is awarded the contract.
Request for Proposals (RFP)
An RFP is an invitation where criteria other than just the price are used to evaluate responses and
where the award is made based on the highest compliant score. Proposals are the bids received in
response to RFPs. RFPs are generally used to purchase complex goods or services where the
method of completing a project is usually left up to the suppliers Under tendering law, a Request
for Proposals (RFP) is considered to be a tender.
Sole-Source
A sole-source contract award can occur when there is an inability to obtain competitive bids, as
only one (1) Vendor possesses the unique ability or capability to supply a particular good or
service.
1. The goods and services required are in short supply due to market conditions;
2. The goods and services are required without delay, such as repair(s) to protective services
equipment;
3. The goods and services are required in light of an emergency situation;
4. The nature of the assignment or service is confidential and requesting quotes could
jeopardize the confidentiality of the service;
5. The goods or services are required and/or being sought on a trial/pilot basis;
6. Following a competitive bidding process, no other bids were received or met the full
specifications;
7. The Vendor(s) possesses unique ability to supply a particular good or service.
With approval from the CAO, using the Sole Source Request Form (Appendix A), this method
can be used in the following circumstances:
1. Standardization of goods and services is required;
2. Compatibility with existing goods and services or facilities is a paramount consideration
(ie: a good/service is compatible with an existing software and securing another product
will require additional goods/services to be purchased);
3. The Vendor possesses unique or singularly available capability, experience, skills or
knowledge to meet the requirements;
4. In an effort to facilitate and encourage supporting local, the particular vendor is the only
vendor within the municipal limits or immediate area;
5. There is an inability to attain competitive bids, due to the aforementioned market
conditions.
Emergency Purchases
An emergency purchase can warrant a sole-source award in consultation with a Department
Head and when possible, in consultation with the CAO. An emergency means a present or
imminent event that requires the coordination of actions concerning persons or property to
protect the health, safety, and welfare of people or to limit damage to property or the
environment. Such events generally occur due to fire, flood, water breaks, equipment repairs that
could jeopardize level(s) of service, or unexpected infrastructure failure.
In light of repairs that are occasionally required to protective services equipment, such as fire
trucks, repairs that are required and are in the best interest of safety of personnel and residents,
are considered emergency purchases pursuant to this Policy.
In the event that an emergency purchase is required (including repairs to protective services
equipment that may exceed other Authorizations in this Policy), the CAO and Department Head
must report to Council at the next Council meeting upon the cessation of the emergency
circumstance to provide rationale AND note the purchase(s) in the presentation of the following
monthly statements.
Telephone Quotations
Telephone Price Quotations (and/or pricing comparisons with online vendors) may be utilized to
expedite procurement of low value goods or services or where an emergency exists. Pricing shall
be solicited and recorded from a minimum of three (3) Vendors where sufficient competition is
available. In order to ensure due diligence, recorded quotations through this method of
procurement must be approved by the Department Head.
9. SIGNING AUTHORITY
The following outlines the signing authority:
Item
First Signature
Second Signature
Cheques
Clerk/Treasurer
OR
Chief Administrative Officer
(only when required)
Mayor
OR
Deputy Mayor
(only when required/if
designated)
Council Policies/By-laws
Mayor
Clerk
Formal intergovernmental
agreements, service level
agreements, or reciprocal
agreements, contracts
pursuant to spending
authority limits
Clerk/Treasurer
OR
Designated individual under
Local Governance Act
Mayor
Operational Agreements
Chief Administrative Officer
Department Head
Grant funding applications,
grand funding agreements
Chief Administrative Officer
OR
Clerk/Treasurer
Mayor
(if formal motion of Council
is required)
Bank Account Authorization
Clerk/Treasurer
Mayor, through motion of
Council
10.
RESPONSIBILITY OF EMPLOYEES
- No employees are permitted to engage in any activity that may create, or appear to create,
a conflict of interest. Such activities may include: accepting gifts or favours, providing
preferential treatment to vendors, providing additional information or context during the
competitive bidding process to only select vendors, publicly endorsing vendors.
- No municipal employee can use their employment and/or position with the municipality
in the acquisition of goods and services for personal gain.
- Department Heads are responsible for ensuring that procurement within their service
areas are made in accordance to this Policy.
- The Chief Administrative Officer is responsible for ensuring that organizational
procurement practice are in accordance to the values of procurement and in alignment
with application legislation and regulations.
- All employees and representatives making purchases on behalf of the municipality are
required to ensure impartial, economical, cost-effective, fair/transparent, and lawful
purchases pursuant to provincial legislation, the municipal purchasing policies and
regulations in place, and in accordance to procurement and financial management best
practices.
Sole Source Justification Request
REQUESTER INFORMATION
Requester: Click or tap here to enter text.
Requester Name and Title: Click or tap here to enter text.
Requester Department: Click or tap here to enter text.
REQUESTED SOLE SOURCE SUPPLIER
Company Name: Click or tap here to enter text.
Contact Name: Click or tap here to enter text.
Address:Click or tap here to enter text.
Description of Product or Services: Click or tap here to enter text.
Estimated cost(s): Click or tap here to enter text.
Account Number: Click or tap here to enter text.
Please select the circumstances in which the sole source purchase is being requested:
This will standardize goods or services:
This particular goods/service is compatibility with existing goods and services or
facilities, which is a paramount consideration and could avoid additional cost or expenses
in order to ensure compatibility with existing processes.
The Vendor possesses unique or singularly available capability, experience, skills or
knowledge to meet the requirements of the product or service.
This product or service is only offered by a local vendor and will support the local
economy;
Competitive procurement is not possible due to market conditions outlined in the Policy.
Please provide additional information to justify the sole-source request, pursuant to the Financial
Authorization and Purchasing Policy:
Signature of Department Head (if purchasing requestor is
not Department Head)
Signature of Chief Administrative Officer (CAO)
DATE:
DATE: