345City of Anaheim Administrative Regulation
CHAPTER 3 - FINANCE
Subject: Commercial Payments/ A.R. 345
Accounts Payable Issue Date: Aug. 17, 1992
Revised: April 23, 1999
Sept.17, 2003
Page (1) of (3)
Purpose:
The purpose of this Administrative Regulation is to establish the method of paying for the
materials, supplies, equipment and services received by the City, and to insure that proper
authorization and payment procedures are in place.
Procedure:
All Payments (with the exception of those made with petty cash, see A.R.340, will be
authorized by one of the following options:
1. Purchase Order:
A purchase order is a formal order of the City for material, equipment and
services from a commercial organization or a governmental entity under a
cooperative purchasing program. A.R. 300 and the Purchasing Manual govern the
use of purchase orders. All materials, supplies and equipment, and certain services
procured by the City, except as noted in B and C below, will be authorized by the
purchase order method. Examples of the types of services that are covered by this
method are microfilm and microfiche services, custodial services, maintenance of
office, vehicle, and real property equipment (elevators, escalators, doors, etc.).
Before purchases can be processed for payment, the following documents are
required:
A. Purchasing Division issued purchase order;
B. Warehouse authenticated receiving document; and,
C. An original copy of the invoice from the vendor.
2. Request for Check: an internal City form to be used to request the payment or
prepayment of certain items. The following are typical (but not all inclusive) uses
of this option:
A. Subscriptions (including on-line subscriptions)
B. Lodging Reservations
C. Registration Fees
D. Seminar and training fees excluding in-house training in City facilities
E. Reimbursement of Petty Cash Funds (A.R. 340)
F. Purchase of books (other than library), films and other one time
publications of a technical nature that are not readily available in public
stores and are not available to be purchased at a competitive price through
the City's Purchasing system
City of Anaheim Administrative Regulation 345
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G. Payments to governmental agencies
H. Payments made from established trust funds and others where no invoice
may be involved
I. Obligations to tenants of the Stadium and Convention Center
J. Membership Dues
K. Payments for litigation services such as depositions, transcripts, court
documents and translation services.
Check Requests require the authorization of a Department Head or their designee.
3. Direct Payment: a payment made directly against an invoice as authorized by the
governing contract or agreement. Direct payments may not be made for material,
supplies, equipment or services except as herein specified. The method is
applicable to the following payment obligations of the City:
A. Procurement of utilities including electrical, water, gas, and phone
B. Consultant services including architect engineers, executive employment
services, specialized engineering and planning services, etc.
C. Insurance premiums and Risk Management services
D. Obligations to users and providers of services by the Stadium and
Convention Center
E. Law enforcement and fire investigation services
F. Library books and library specific supplies and equipment
G. Payment for food other than through the expense reimbursement method
(A.R. 335)
H. Advertising (not including design work or set-up services which require a
separate contract or agreement)
I. Other services not included in section 1 above
Direct payments require an account code on the invoice and the written approval of the
Department Head or his or her designee.
4. Any payment requirement that is not defined above must be referred to the
Purchasing Agent for determination of method of payment.
5. Department management will have the primary responsibility for seeing that
accounts payable documents are properly authorized. Approval must be in
signature form and legible before payment can be initiated as determined by
Finance personnel. Initials are not acceptable approval for an invoice. It is the
administering department's responsibility to ensure that direct payments fall
within the parameters authorized by the governing agreement. Sample signatures
of those designated to approve payable documents must be on file in the
Accounting Office. If an employee's authority to approve documents
City of Anaheim Administrative Regulation 345
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for payment is rescinded, the employee's Department is responsible
for notifying the Finance Department immediately.
6. Purchases made using a City issued purchasing card will be governed by the
Purchasing Card Program Policy and Instruction Manual.
Attachments: None