HomeMy WebLinkAboutResolution 23-66 Financial Policies Combined lfrResolution 23-66
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TOWN OF WESTLAKE
RESOLUTION NO. 23-66
A RESOLUTION OF THE TOWN COUNCIL OF WESTLAKE APPROVING THE TOWN
FINANCIAL POLICIES; AND TAKE APPROPRIATE ACTION.
BE IT RESOLVED BY THE TOWN COUNCIL OF WESTLAKE:
WHEREAS, the Town Council requested review of Financial Policies to be adopted
annually, and according to all applicable legal requirements; and
WHEREAS, the proposed policies includes an overall Financial Policy, Purchasing
Authority, Prohibited Activities Policy, Contract Authority Policy, and Procurement Card Policy;
and
WHEREAS, the Town Council finds that the passage of this Resolution is in the best
interest of the citizens of Westlake.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF WESTLAKE:
SECTION 1: That, all matters stated in the recitals hereinabove are found to be true and
correct and are incorporated herein by reference as if copied in their entirety.
SECTION 2: That the Town Council hereby adopts the Financial Policy as “Exhibit A”.
SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by
any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof
and the Council hereby determines that it would have adopted this Resolution without the invalid
provision.
SECTION 4: That this resolution shall become effective from and after its date of passage.
PASSED AND APPROVED ON THIS 9th DAY OF OCTOBER, 2023.
Sean Kilbride, President
ATTEST:
Resolution 23-66
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_____________________
Amy M. Piukana, Board Secretary
APPROVED AS TO FORM:
Stan Lowery, Town Attorney
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Contracts Authority
Outline
1. Overview & Purpose
2. Par�cipants
3. Authorized Contracts
4. Spending Thresholds
5. Administra�on of Contracts
Overview & Purpose
As part of the direc�ve to engage in procurement prac�ces that benefit the Town and Academy,
engaging in various contracts is necessary to obtain the best value of goods and services. Implicit
authority, which is the assump�on by a vendor that a Town/Academy representa�ve has an ability to
engage but whom is not specifically allowed by Town/Academy policies to do so, is not authorized for
any employee and is grounds for discipline, up to and including termina�on. In order to ensure vendors
ac�ng in good faith are compensated for goods or services provided, it is necessary to outline the
signatory authority granted to specific par�es for entering into, upda�ng terms, renewing, or cancelling
contracts.
Par�cipants
Council/Board – elected officials responsible for direc�ng staff to purchase goods and services to
facilitate the mission and ac�vi�es of the Town/Academy
Department Head – appointed director of a Town department or Academy func�on and any person
authorized to act on their behalf
Head of School – Employee with authority to direct procurement ac�vi�es on behalf of the Academy
Town Manager – Employee with authority to direct procurement ac�vi�es on behalf of the Town
Town Secretary – Employee tasked with the records collec�on and management of executed contracts
Authorized Contracts
Contracts, as discussed in this policy, are agreements to purchase goods or services. The Town/Academy
only considers writen and executed contracts, properly authorized, to be valid; verbal agreements are
not considered a binding contract and therefore are not allowed.
While all procurement, including contractual purchases, must adhere to the Town/Academy’s purchasing
policies, not all purchases require a contract to proceed; purchases allowed to be made without a
contract will be excluded from this policy.
As a public en�ty, the Town and Academy are allowed to enter into the following types of contracts:
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Direct purchase of goods or services contract: Standard contract in which a price has been directly
nego�ated with Westlake for a vendor to provide goods or services at a mutually agreed upon price and
schedule.
Not-to-exceed contract: Agreement between Westlake and a vendor to provide specific goods or services
but that the total price, final quan�ty or quality, or con�ngent needs are unknown at the �me of
agreement
Interlocal agreement (ILA): Council/Board-approved agreement between Westlake and another public
en�ty subject to the same procurement statutes to provide goods or services directly to Westlake.
Vendor Contract through ILA: Council/Board-approved agreement between Westlake and another public
en�ty subject to the same procurement statutes that allows Westlake to purchase goods or services at a
rate nego�ated by the other public en�ty. The vendor must agree to uphold the same terms nego�ated.
Coopera�ve purchasing agreements: Council/Board-approved agreement to par�cipate in an establish
forum which leverages purchasing power to nego�ate prices on behalf of its members
Engagement leters: Agreement between Westlake and a professional service provider, as defined by
statute, to provide a professional service
Purchase Order: Purchase orders are legally considered a contract between Westlake and a vendor for
the goods or services listed therein
Change Order: Formal amendment to an original contract or purchase order
Any other contract type must be presented to the Town Manager/Head of School and Director of
Finance for review prior to execu�on. The Town Manager/Head of School may authorize or prohibit a
contract type in the best interest of Westlake. This authoriza�on is specific to the contract type or format
only; all applicable financial policies must s�ll be followed.
Signatory Thresholds
Authorized signatories apply to all allowable contract types. It is the responsibility of the employee
administering the contract to adhere to the process. Contract signatory authority aligns with purchasing
threshold amounts listed in Purchasing Authority (07.11) and is a separate considera�on from budgetary
approval. The thresholds listed below are on the basis of total contract, including op�onal extensions.
Less than $3,000.00 –Department Heads/Principals have the authority to sign a contract for budgeted
goods or services for which their department is the administrator
$3,000.00 to $19,999.99 – Head of School/Town Manager has the authority to sign a contract for
budgeted goods or services
$20,000.00 - $49,999.99 – Head of School will be the signatory for Academy contracts, once the Board
has voted to approve the contract and delegated that authority; Town Manager will be the signatory for
Town contracts, once the Council has voted to approve the contract and delegated that authority
$50,000.00 and above – Council/Board approval will list the person authorized to execute the contract;
this is usually the Town Manager or Head of School
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Contracts for construc�on or construc�on-related ac�vi�es, such as project management, regardless of
amount, must be signed by the Town Manager, unless otherwise directed by the Council/Board.
Budget approval is not the same as contract signatory authority. If purchases are made via contract, the
above thresholds apply.
Administra�on of Contracts
Contract administra�on and maintenance are the responsibility of the contract administrator. This
includes Council/Board approval, as necessary. All contracts must be reviewed by the organiza�on
Atorney, Town Manager, Head of School, and Director of Finance, as appropriate, regardless of amount
or method. All executed contracts must be provided to the Town Secretary for official records.
New Contracts
Contract being entered to with original terms must adhere to all procurement methods and purchasing
thresholds.
Changing the Contract Terms
Should the need arise to change the terms of a contract during the contract period, the administrator
must work with the vendor to determine the best course of ac�on. Contracts or vendors may allow for
amendments, change orders, or appendices to revise the terms of the original contract. When that is not
possible, Westlake must adhere to the cancella�on terms in the contract and enter into a new contract.
New contracts may require administrators to start the procurement process from the beginning,
depending on the scope change included.
Cancelling Contracts
All contract cancella�ons must be reviewed with the Atorney. Westlake must include terms for
cancelling contracts in any executed contract. These can be nego�ated with the vendor, when applicable
and appropriate, but should allow for a no�ce period.
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Financial Policies
Outline
1. Policy Statement
2. Scope
3. Basis of Accoun�ng & Budge�ng
4. Annual Budget
5. Fund Balance Policies
6. Debt Service
7. Financial Repor�ng
8. Approval Process
Policy Statement
The Town of Westlake/Westlake Academy has a fiduciary responsibility to its ci�zens and stakeholders to
accurately account for the public funds it is tasked with managing. The financial policies are established
in order to provide guidance on the appropriate accoun�ng, planning, and use of all funds and to ensure
fiscal sustainability and stewardship.
These policies are reviewed and updated periodically by the Town Manager, Head of School, and Director
of Finance, in accordance with direc�on from the Town Council/Board of Trustees. This Financial Policy,
along with any other policies enac�ng or defining authority granted, will be presented to the
Council/Board for approval of any changes.
Scope
The Financial Policies within this policy apply to both the Town and the Academy. This policy includes the
basis of accoun�ng and budge�ng, annual budget responsibili�es, debt management, and financial
repor�ng. Policies and procedures rela�ng to the administra�ve func�ons in each of these areas are the
responsibility of staff for review and updates.
Basis of Accoun�ng & Budge�ng
Basis of Accoun�ng
The Governmental Accoun�ng Standards Board (GASB) is the accepted standard-se�ng body for
establishing governmental accoun�ng and financial repor�ng principles applicable to state and local
governments. The accoun�ng and repor�ng policies conform to these generally accepted accoun�ng
principles (GAAP). The Academy is addi�onally subject to Texas Educa�on Authority (TEA) accoun�ng
structure and financial repor�ng.
The Town and Academy are organized and operate on the basis of funds and account groups. Each fund
is a separate accoun�ng en�ty with a self-balancing set of accounts, which are segregated for the
purpose of execu�ng specified ac�vi�es, in accordance with regula�ons, restric�ons, and limita�ons.
Governmental fund types (General Fund, Debt Service, Special Revenue, Academy ) use the flow of
current financial resources focus of measurement and the modified accrual basis of accoun�ng, with
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revenues recorded when measurable and available, and expenditures budgeted in the period in which
the liability is incurred. Revenues are considered available when they are collectable within the current
period or soon enough therea�er to pay liabili�es of the current period. Expenditures are recognized
when the liability is incurred, if measurable.
Proprietary funds (U�lity Fund, Internal Service Funds) are accounted for using the economic resources
focus of measurement and the accrual basis of accoun�ng, with revenues recorded when earned and
expenses recorded when a liability is incurred.
Basis of Budge�ng
Both the Town and Academy prepare budgets in a manner consistent with generally accepted accoun�ng
principles (GAAP) for their funds. Revenues and expenditures are budgeted based on the expected flow
of funds. Revenues are budgeted in the period they are expected to be available. Expenditures are
budgeted when the service is expected to be provided. The basis of accoun�ng and budge�ng are
essen�ally the same.
Annual Budget
The Town and Academy are both required to prepare an annual opera�ng budget that must be approved
by the governing body prior to the beginning of its fiscal year. The budgets must define, on a fund and
func�on basis, the expected revenues and expenditures for the year. The budgets must include
presenta�on on the financial ac�vi�es for the most recently closed fiscal year, the current adopted and
revised/amended budgets, and the planned budget for the upcoming fiscal year. Addi�onally, debt
obliga�ons in aggregate and the principal and interest requirements reflec�ng the ou�low of funds for
the fiscal year must be included.
Both the Town and Academy are required to present a balanced budget, defined as an opera�ng fiscal
plan in which resources (current revenues plus available fund balance) are projected to equal or exceed
planned expenditures on both the fund and aggregate basis. Council/Board must approve the use of
fund balance when current revenues are not expected to be available or sufficient for expenditures in
the current period.
Council/Board approve the number of full-�me equivalent (FTE) posi�ons, along with associated dollars,
as part of the annual budget approval. Any changes to the FTE count and/or budget, including changes to
pay rate and structure, must be presented and approved by Council/Board at an open mee�ng. Staff is
not authorized to hire unbudgeted posi�ons.
Budgetary control for appropria�ons is at the department/func�on level for the General Funds and at
the fund level for all other funds.
Town
The Town of Westlake has a fiscal year beginning October 1 and ending September 30. The Council’s role
in development is to provide staff with strategic priori�es and expected service levels for the upcoming
fiscal year. Staff is responsible for developing the details of the spending plan and presen�ng to Council
for review and approval.
As a municipality with taxing authority, the Council is responsible for adop�ng an ad valorem tax rate.
The tax rate can only be approved in support of the annual opera�ng budget. Taxes are levied based on
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taxable values, as determined by the appropriate appraisal district. The adopted tax rate must be set in
two (2) por�ons: maintenance and opera�ons (M&O), which fund opera�ons in the General Fund; and
interest and sinking (I&S), which is set each year to ensure the principal and interest requirements for
the fiscal year are met.
Academy
Westlake Academy, beginning a�er fiscal year 2022-2023, operates with a July 1 to June 30 fiscal year.
The Board’s role in development is to provide staff with strategic priori�es and desired enrollment for
the upcoming fiscal year. Staff is responsible for developing the details of the spending plan and
presen�ng to the Board for review and approval.
The Academy does not have any taxing authority and is therefore exempt from statutes or processes
rela�ng to the adop�on of a tax rate and imposi�on of a tax levy.
The Academy does have addi�onal requirements from TEA in order to receive state funds. Procedures to
account for and report on those funds are considered administra�ve.
Budget Amendments
During the course of normal opera�ons, it may be necessary to make changes to the adopted budget.
This could occur when receipts or costs exceed or significantly fall short of the amounts budgeted. The
Council/Board delegates the authority to adjust the budgets, at the department/func�on or fund level in
accordance the budgetary control, to the Town Manager and Head of School for their respec�ve
budgets. Adjustments for purchases must adhere to the appropriate purchasing authority policy. Budget
adjustments may not increase or decrease the appropria�on amounts approved within the adopted
budget.
When addi�onal appropria�ons are required for revenues or expenditures above or significantly below
the amounts adopted in the budget, staff must prepare a proposal to amend the adopted budget and
Council/Board must approve the amendment. Budget amendments may be presented as a course of
administra�ve reconcilia�on for items previously approved by Council/Board.
Fund Balance Policies
Any use of fund balance must be approved by the Town Council/Board of Trustees.
General Fund – Town
The Town shall strive to maintain the General Fund unassigned minimum fund balance at, or in excess of,
180 days of opera�ons, as defined by the projected expenditures for the upcoming year.
Use of fund balance requires Council/Board approval.
General Fund – Academy
The Academy shall strive to maintain the General Fund unassigned minimum fund balance at, or in
excess of, 45 days of opera�ons, as defined by the projected expenditures for the upcoming year.
Special Revenue Funds
Fund balances within each special revenue fund are considered restricted for that purpose defined by
the fund. Due to applicable regula�ons, restric�ons, or limita�ons, it may be necessary to collect
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revenues and expend funds in different periods, as iden�fied needs dictate. Expenditures can only be
budgeted when current revenues plus fund balance allow.
Proprietary Funds
Retained earnings within the enterprise funds must be posi�ve and meet bond covenants and coverage
requirements, as applicable. Fund balance in enterprise funds contain contribu�ons, which are
considered non-spendable.
Retained earnings within internal services funds must be posi�ve and are considered restricted for the
purpose of the fund.
Debt Service Funds
Debt service funds operate on the current basis of budge�ng and do not have a fund balance
requirement. Due to the nature of debt obliga�ons, all debt is backed by the full faith and credit of the
Town.
Debt Service
The Town is an authorized issuer of debt obliga�ons, but the Academy is not. Debt may be issued by the
Town on behalf of the Academy in accordance with policy. Debt may be periodically issued for capital
improvements, including construc�on, acquisi�on, or improvements of long-term assets, or to refinance
exis�ng debt obliga�ons in a manner benefi�ng the Town. Debt may not be issued for the purpose of
financing current opera�ons, nor may any debt proceeds be u�lized for that purpose.
Debt financing includes general obliga�on bonds, cer�ficates of obliga�ons, revenue bonds, tax notes,
lease agreements, and other instruments permited under Texas law. The Town will consider the
expected life of the asset, expected cash flow to complete the project, and ongoing costs prior to issuing
debt. Instruments will be chosen on this basis and incorporate analysis of available cash, repayment
structure, and the exper�se of the Financial Advisor. All issuances must be approved by the
Council/Board.
Staff and the Financial Advisor shall monitor the municipal bond market for opportuni�es to obtain
interest savings by refunding outstanding debt. As a general rule, the present value savings of a
par�cular refunding should exceed 3.5% of the refunded maturi�es.
State statutes do not prescribe a legal debt limit. The Town Council/Board of Trustees may choose to
impose a limit, which would be voted upon and included in a future update of this policy.
The Town is required to conform to all covenants of its debt obliga�ons.
Financial Repor�ng
Financial statements for the Town and Academy shall include all ac�vi�es for the en�ty exercises
oversight responsibili�es, defined as the ability to significantly influence opera�ons, appoint
management, and fiscal interdependency.
Both the Town and Academy are required to prepare financial and investment reports to be presented to
the Council/Board quarterly. Quarterly reports will include comparisons of actual ac�vi�es against
budgets, narra�ve context, and the performance of investments for the quarter.
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Both the Town and Academy are required to prepare an annual comprehensive financial report (ACFR)
with the engaged audit firm for the prior fiscal year. Due to the difference in the fiscal years, the
Academy will complete their audit prior to the Town each year. The Town’s ACFR will include the
Westlake Academy as a major func�on.
Approval Process
This Financial Policy, along with the policies on Purchasing Authority, Prohibited/Restricted Ac�vi�es,
Contracts Authority, and Procurement Cards, will be presented and discussed with the Council/Board at
least annually as part of the budget process. Ini�al presenta�on and discussion may occur with the
Finance Commitee. Changes suggested will be incorporated and presented to the Council/Board at the
appropriate budget workshop. Final updated policies will be approved via resolu�on at the same
mee�ng as the annual opera�ng budget.
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Procurement Card Administration
Outline
1. Overview & Purpose
2. Par�cipants
3. Authoriza�on & Issuance
4. Limits
5. Responsibili�es
6. Authorized Purchases
7. Restric�ons/Prohibi�ons
Overview & Purpose
Procurement Cards (p-cards) are an authorized payment mechanism to facilitate rou�ne purchasing
ac�vi�es in lieu of the accounts payable process. The purpose of p-cards is to allow flexibility to carry out
necessary opera�ons in a more �me-efficient manner. Use of p-cards does not negate appropriate
planning for purchases. P-card use is subject to all purchasing thresholds and methods, in addi�on to the
guidance within this policy.
Par�cipants
Council/Board – elected officials responsible for direc�ng staff to purchase goods and services to
facilitate the mission and ac�vi�es of the Town/Academy
Employee – person tasked with the administra�on of ordering, receiving/implemen�ng, and issuing
authorized payments for goods and services
Vendor – business en�ty or individual that seeks to have or has a contract to provide goods or services to
the Town/Academy; could be a consultant, contractor, company, or individual provider
Authoriza�on & Issuance
The Town Manager and Head of School can authorize the issuance of a p-card to an employee within
their respec�ve organiza�on, based on the employee’s role and con�ngent upon the Director of
Finance’s verifica�on. Department Heads/Principals are able to request p-cards for themselves and staff.
Town Manager, Head of School, Director of Finance, and Department Heads/Principals all have the
authority to request a card be closed or denied to an employee in wri�ng.
Issuance for a new card requires a completed and signed form.
Limits
Similar to a personal credit card, p-cards are subject to credit limits. The Town/Academy has account
limits, which are separate from the card and transac�on limits below. Credit limits are based on the
actual spending needs of the cardholder, as defined by their job du�es.
Employee – Employees with a p-card will have a limit of $3,000.00 per month. Individual transac�ons are
limited to $2,999.99.
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Department Head/Principal – Department Heads and Principals may have occasion to make purchases
on behalf of a larger group and will therefore have a limit of $5,000.00 per month. Individual
transac�ons are limited to $2,999.99.
Town Manager/Head of School – The Town Manager and Head of School may have occasion to make
purchases for their organiza�ons and will therefore have a limit of $10,000.00 per month. Individual
transac�ons are limited to $2,999.99.
Travel Coordinator – Westlake Academy designates one administra�ve employee, usually an
Administra�ve Assistant, as the Travel Coordinator. That employee is responsible for the booking of
travel arrangements, like flights and hotels, which typically require a credit card. Due to the �ming of
travel, larger groups generally are booked together, therefore, the limit will be $10,000.00 per month.
Individual transac�ons are limited to $2,999.99.
Emergency Response – Emergency purchases may be necessary to facilitate the safety of life and
property within the Town limits, including disaster or medical responses and the maintenance of the
water and sewer system. To ensure con�nued opera�ons, the limit will be $10,000.00 per month with no
individual transac�on limit.
In instances when the standard limits are not adequate, the cardholder can request a temporary credit
limit. Temporary increases must have a documented business explana�on and cannot extend beyond 30
days.
Responsibili�es
The Finance department is responsible for the issuance, upda�ng, and general administra�on of p-card
use. Administra�on includes reconcilia�on, recording to the general ledger, payment of statement
balances, and training. Finance will offer annual training to all card holders. First �me recipients of cards
are required to par�cipate in training prior to the release of the card for use.
The cardholder is responsible for the custody, safety, and appropriate use of their card. Cards are not be
loaned to or used by anyone else.
The cardholder is responsible for turning in itemized receipts each month with an explana�on of the
business purpose and the budgetary account within the credit card portal. These updates must occur by
the 10th day each month for the statement covering the month immediately preceding.
The Town/Academy operates using a three strikes rule to ensure fiduciary responsibility, adequate
documenta�on, and proper oversight. The strikes are accumulated over a rolling 12-month period,
beginning with the first instance. Any misuse or failure to adhere to p-card policy can result in a strike;
this includes failure to turn in itemized receipts, making purchases not authorized by policy, and not
reconciling statements.
Instance one will result in an email no�fying the card holder of the issue, with their supervisor copied. A
response is required to explain and document the occurrence. The card holder will be offered op�onal
training.
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Instance two will result in an email no�fying the card holder of the issue, with their supervisor copied.
The limit will be reduced to $0.00 un�l the card holder completes mandatory training to review the
policy and process.
Instance three will result in a formal write-up and the p-card will be turned into Finance for a period of
up to one-year.
In the case of abuse or fraud, the cardholder will be required to immediately surrender their card and
will be disciplined, including and up to termina�on. Fraud will be reported to the appropriate
authori�es.
Authorized Purchases
P-cards are a tool u�lized by the Town/Academy for ease of execu�ng opera�ons. The preferred uses for
p-cards include:
Tangible items under $3,000.00. Purchases of $3,000.00 or more must adhere to other purchasing rules,
which are beter monitored outside of the p-card process.
Travel expenses including hotels, flights, meals, and individual registra�ons. Meals would not be allowed
when the traveling employee requests per diem. Registra�on for groups of atendees should go through
the accounts payable process. Rental cars are invoiced directly by Enterprise Rental Cars.
Catering or food services for events or mee�ngs. These orders must be pre-approved and budgeted.
Restric�ons/Prohibi�ons
Certain purchases are not authorized via p-card. In addi�on to the merchant code restric�ons setup by
the p-card issuer, PNC, the Town/Academy recognizes its responsibility to safeguard its financial assets
and reduce the opportunity for misuse or fraud.
Purchase of goods or services that cannot be received within the statement period are not allowed.
The purchase of alcohol is not permited on a p-card, unless expressly authorized for resale at special
events.
Purchase of goods or services for one’s direct benefit are not allowed.
Purchases made to circumvent purchasing laws or policy are not allowed.
Purchases made from any employee, official, or a party related to them are not allowed.
Automa�cally recurring charges must be preapproved, budgeted, and must adhere to all applicable
purchasing thresholds.
Purchases rela�ng to an outside grant are generally not allowed via p-card. Grants require significant
documenta�on and proper oversight and therefore should go through the regular requisi�on-purchase
order-invoice process.
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Prohibited or Restricted Activities
Outline
1. Overview & Purpose
2. Par�cipants
3. Prohibited Purchasing Ac�vi�es
4. Restricted Purchasing Ac�vi�es
5. Approval & Update Process
Overview & Purpose
As a General Law municipality within the State of Texas, the Town of Westlake and its component units
are subject to compliance with Local Government Code procurement laws and Texas Educa�on Code for
Academy purchasing. In addi�on to the restric�ons established therein, addi�onal prohibi�ons or
restric�ons ins�tuted by Council/Board are necessary to safeguard public funds and trust.
Par�cipants
Council/Board – elected officials responsible for direc�ng staff to purchase goods and services to
facilitate the mission and ac�vi�es of the Town/Academy
Employee – person tasked with the administra�on of ordering, receiving/implemen�ng, and issuing
authorized payments for goods and services
Vendor – business en�ty or individual that seeks to have or has a contract to provide goods or services to
the Town/Academy; could be a consultant, contractor, company, or individual provider
Prohibited Purchasing Ac�vi�es
Due to the Town’s responsibility of managing public funds, several ac�ons are prohibited by law, policy,
or ethics. Prohibited ac�vi�es include:
• Purchasing goods or services for personal benefit.
• Purchasing goods or services under the guise of sole source, but which the LGC and legal opinion
do not expressly agree on the classifica�on.
• Separate, sequen�al, or component purchases that avoid compe��ve bidding requirements,
deviate from purchasing authority limits, or circumvent budgetary controls, even if
uninten�onal.
• Purchasing goods or services from a vendor or company that provides any kind of favor or item
of value that might influence or appear to influence the purchasing decision.
• Disclosing confiden�al or proprietary informa�on from solicita�ons to another party or using the
informa�on for personal gain.
• Verbally or in wri�ng authorizing the purchase of goods or services that you do not have the
express authority to authorize. This includes signing contracts for budgeted items.
In addi�on to the ac�vi�es above, any purchases viola�ng applicable federal or state law or the Town’s
purchasing policies are expressly prohibited.
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Restricted Purchasing Ac�vi�es
Restricted purchasing ac�vi�es include those that are usually prohibited but may have rare instances in
which authoriza�on could be granted. Among the known restricted ac�vi�es are:
• Purchasing alcohol. For special events in which resale of alcohol is an authorized ac�vity, the
purchase of alcohol may be allowed. Express permission must be granted by the Town Council to
include alcohol sales at the event.
• Unbudgeted or unfunded purchases are generally not allowed. In the case of emergency
purchases, as defined by LGC and the Purchasing Authority Policy (Policy 07.11), excep�ons may
be made to ensure the safety of life or property. Other unbudgeted or unfunded purchases
should be handled using the process outlined in Purchasing Authority (Policy 07.11).
• Purchasing goods or services from a vendor or company from which an elected official or
employee has a personal stake in without disclosing the conflict of interest and recusing oneself
from all purchasing ac�vi�es related to the vendor or company.
Should a purchasing scenario arise that is not expressly allowed through statute or policy, consulta�on
with the Town Manager, Head of School, and Director of Finance are required prior to engaging a vendor.
Any purchases must s�ll adhere to all other policies and thresholds, including Council/Board approval, as
appropriate.
Approval & Update Process
The Town Manager and Head of School, in coordina�on with the Director of Finance, are responsible for
monitoring applicable statute and regula�ons and revising the procurement policies, at least annually.
They have the authority to further prohibit or restrict the ac�vi�es listed here in the course of the du�es
to ensure the responsible expenditure of public funds. Any permanent changes will be included in the
policy, which will be updated as needed and presented to the Council/Board. Addi�onally, the
Council/Board has the authority to prohibit or restrict the authorized ac�vi�es of the Town Manager and
Head of School.
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Purchasing Authority
Outline
1. Overview & Purpose
2. Par�cipants
3. Authorized Spending
4. Spending Thresholds
5. Approval & Update Process
Overview & Purpose
As a General Law municipality within the State of Texas, the Town of Westlake and its component units
are subject to compliance with Local Government Code procurement laws and applicable Texas
Educa�on Code. In lieu of a voter-approved Town Charter and within compliance of the Academy
Charter, the Council/Board has determined that enac�ng addi�onal layers of purchasing authority for
staff is necessary to maintain good budgetary controls and financial stewardship for public funds.
Par�cipants
Council/Board – elected officials responsible for direc�ng staff to purchase goods and services to
facilitate the mission and ac�vi�es of the Town/Academy
Department Head – appointed director of a Town department or Academy func�on and any person
authorized to act on their behalf
Employee – person tasked with the administra�on of ordering, receiving/implemen�ng, and issuing
authorized payments for goods and services
Head of School – Employee with authority to direct procurement ac�vi�es on behalf of the Academy
Town Manager – Employee with authority to direct procurement ac�vi�es on behalf of the Town
Authorized Spending
To be considered “authorized spending,” the purchase must have been budgeted in the same fiscal year
as the order is placed, the price must be within 5% of the budgeted cost, and all due diligence to meet
applicable laws and procedures must be met.
In instances where the purchase is not budgeted or the amount budgeted is not sufficient, Department
Heads or above (depending on the dollar value and business purpose as outlined below) must authorize
the purchase.
Spending Thresholds
Authorized spending thresholds apply to all allowable purchasing and payment methods. It is the
responsibility of the employee making the purchase to adhere to the correct method.
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Budgeted Purchases
Less than $3,000.00 – Employees designated by their Department Heads/Principals have the authority to
approve purchases or spend up to $3,000.00 in a single purchase
$3,000.00 to $19,999.99 – Head of School has the authority to approve purchases for Westlake Academy
per WA Resolu�on 23-14, approved 6/22/2023; Town Manager has the authority to approve purchases
for the Town of Westlake per Resolu�on.
$20,000.00 and above – Head of School/Town Manager must obtain approval by the Council/Board
during an open mee�ng
Unbudgeted Purchases
Less than $3,000.00 – Department Heads/Principals have the authority to approve purchases in support
of their department or school’s mission if there is capacity to reduce expenditures in an equal amount
exists within the same opera�ng budget; these adjustments to the spending plan will be reported to the
Council/Board within the next quarterly financial report.
$3,000.00 - $19,999.99 – Head of School/Town Manager has the authority to approve purchases in
support of their organiza�on’s mission if there is capacity to reduce expenditures in an equal amount
within the same opera�ng budget; Council/Board must be no�fied, as soon as prac�cable, in wri�ng of
the purchase and corresponding expenditure reduc�on, with a detailed explana�on and presenta�on of
off-se�ng balances at the next posted open mee�ng.
$20,000.00 and above – Head of School/Town Manager must request approval from the Council/Board
in an open mee�ng; the request must include details on the corresponding reduc�on in expenditures or
the purchase must qualify for use of fund balance per policy
When considering off-se�ng balances to facilitate an unbudgeted purchase, staff will look for poten�al
cuts first in the account. If funds are not available in the account, staff will consider the
department ’s/func�on’s non-personnel budget for cuts. If funds are s�ll not available, the department
will coordinate with the Town Manager/Head of School and the Director of Finance for poten�al cuts in a
different department/func�on. If funds are s�ll not available, staff will need to prepare a budget
amendment for Council/Board approval that outlines the purchase and why it qualifies for the use of
fund balance.
Emergency Purchases
Emergency purchases – Emergency purchases are by defini�on unbudgeted and generally require funds
prior to budget approval by Council/Board. Emergency purchases are hereby defined as follows, based
on Sec. 252.022 General Exemp�ons:
(1) a procurement made because of a public calamity that requires the immediate appropria�on of
money to relieve the necessity of the municipality's residents or to preserve the property of the
municipality; and
(2) a procurement necessary to preserve or protect the public health or safety of the municipality's
residents; and
Revised 10/2023 Page 3 of 3
(3) a procurement necessary because of unforeseen damage to public machinery, equipment, or
other property which requires urgent repair or replacement to maintain cri�cal opera�ons.
Staff will present emergency purchases for ra�fica�on at the next regularly scheduled Council/Board
mee�ng. When emergency purchases cannot be absorbed within exis�ng budgets, these purchases will
be included in a budget amendment.
Approval & Update Process
The Town Council/Board of Trustees has the authority to change the authority thresholds under
$50,000.00, as they determine to be in the best interest of the Town/Academy. These thresholds shall be
reviewed annually as part of the approval of the Procurement Manual. The Finance Subcommitee will
meet to review the details of the updates or advise of any changes prior to the Council/Board receiving
the informa�on in the form of a report. Once the report has been presented sa�sfactorily, the
Council/Board will vote to approve the Procurement Manual in whole.
Council/Board reserves the right to make changes outside the annual review and approval process. It is
expected that revisions may need to occur due to staff turnover or legisla�ve changes.