fiscal officers training manual - New York State Conference of Local ...

Business Process: (what is it?)FISCAL OFFICER TRAINING MANUALEQUIPMENT PURCHASES APPROVAL PROCESSOASAS FIELD OFFICEAn agency that receives State Aid from the OASAS is expected to adhere to the “prudent buyer concept” when makingpurchases, whereby the purchase or rental of property, materials, supplies or services and the like, may not exceed thecost that a prudent person would pay in the open market to obtain these items under the circumstances prevailing at thattime. Local Designated Agencies (LDA’s), Local Governmental Units (LGU’s) and direct contract providers will no longerbe required to secure OASAS approval for equipment purchases of $5,000 or less if such equipment is included in theapproved budget. Comparably, LDA’s/LGU’s are no longer required by OASAS to grant prior approval for such equipmentacquisitions. LDAs/LGUs retain the right to impose more stringent requirements for such equipment, should they deem itnecessary to fulfill their mandate.Brief Description of Process: (how does it work?)The State has set the following requirements for purchases. These minimum State requirements may be supplemented bythe additional requirements of a Local Government Unit (LGU).o If the total purchase is for an amount less than $5,000, the local provider will select a reliable vendor at areasonable price.o If the total purchase is for an amount of more than $5,000 but less than $25,000, the local provider shall obtain atleast three telephone quotes and select the lowest bidder.o If the total purchase is for an amount in excess of $25,000, the local provider shall make a good faith effort toobtain at least five written bids, and shall enter into a written contract with the successful bidder.A written record (i.e., documentation) of the procurement, including bids and quotes, shall be maintained and madeavailable for review upon request by appropriate oversight agencies. LGU's and subcontract agencies will not be required,in all cases, to select the lowest quote or bid if it is determined that there is a good commercial reason not to do so. In theevent that the lowest bid or quote is not selected, the local provider shall maintain written justification and/or evidence ofthis decision.*As an alternative to competitive bidding, or as an additional bid or quote, mental health provider agencies can use prenegotiatedState contracts identified on the NYS Office of General Services (OGS) website.Equipment purchases greater than $5,000 requires prior Field Office approval to ensure that the required bidding processwas followed and that the purchase can be programmatically justified/is appropriate. Requests to purchase equipment atthe end of the year due to unexpended balances are not acceptable justification of programmatic need.Frequency:All requests relating to the current local fiscal year must be received by December 1 from Upstate and Long Islandcounties, and by June 1 from the New York City Department of Health and Mental Hygiene (NYCDH&MH).Instructions:Formerly, many equipment purchases required OASAS prior approval even though included in an approved contract orbudget justification form. This has proven to be redundant, time consuming and has resulted in excessive paperwork.Revised ProceduresLDAs, LGUs and direct contract providers will no longer be required to secure OASAS approval for equipment purchasesof $5,000 or less if such equipment is included in the approved budget. Comparably, LDAs/LGUs are no longer required