Brunswick County Board of Commissioners ACTION AGENDA ITEM December 18, 2017

Action Item # VII. - 1.

Revisions to our Contract and Purchasing policy are required for the following recent changes:

• Federal Uniform Guidance - to implement the procurement standards in 2 CFR 200.317 through 200.326 that changes the "Simplified Acquisition Threshold” to $150,000 instead of $500,000 or more for the Federally funded construction or repair work requiring formal bids.
• In order for electronic transactions to qualify for an exemption from the pre-audit requirements in G.S. 159-28(d1), the disbursement must be in compliance with the rules adopted by the Local Government Commission as detailed below:

1. The amount claimed is payable
2. There is a budget, project, or grant ordinance appropriation authorizing the expenditure
3.  The monies remain within the appropriation to cover the amount that is due during the current fiscal year if accounted for in the  budget ordinance, or to cover the entire amount if accounted for in a project or grant ordinance
4.  The unit has sufficient cash to cover the payment

• Pre-Audit Certification requirements:Section 6 of S.L. 2015-246 (HB 44)

1. Except as otherwise provided by law, no obligation may be incurred by the County unless the budget resolution includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year.

2. If an obligation is reduced to a written contract or written agreement requiring the payment of money, or is evidenced by a written purchase order for supplies and materials, the written contract, agreement, or purchase order shall include on its face a certificate stating that the instrument has been pre-audited to assure compliance with that law.  The finance officer or any employee authorized by the Finance Officer shall sign the certificate, which will take substantially the following form:

“This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act.

___________________________________

(Date)

___________________________________

(Signature of Finance Officer)

1. No pre-audit certificate is required for (1) an obligation, or a document related to the obligation, that has been approved by the Local Government Commission; (2) payroll expenditures, including employee benefits; or (3) electronic payments, as specified in rules adopted by the Local Government Commission.

2. An obligation incurred in violation of the requirements of state law as specified in this policy is invalid and may not be enforced.  The Finance officer shall establish procedures in accordance with any rules adopted by the Local Government Commission to assure compliance with statutory requirements and this policy.