Hubbard broke its own rules

HUBBARD — Findings from a state audit and an order from city council will change the way some purchases are made in the city.

City council sent Auditor Michael Villano a letter earlier this month stating that no more checks are to be issued before a purchase order has been submitted.

Law Director Jeffrey Adler also issued a letter stating that the city’s purchasing procedure policy must be strictly followed for all nonpayroll disbursements.

Villano said the city has a purchasing policy stating that all purchases require a purchase order. But some purchases had been made in the past without following that procedure.

Villano said the letters from council and the law director followed a recommendation from the state auditor’s office that the city stick to its policy.

The state auditor’s office randomly selected 25 purchase vouchers and determined that nine of the 25 had been paid without a proper purchase order. All purchase orders must be signed by the department head and service director, council’s letter states — quoting the state auditor’s recommendation.

“Before anyone orders anything they are supposed to get a purchase order. The thing here is, people would order things and get a purchase order afterward. There is nothing wrong with that, but it does go against our policy,” Villano said.

Villano said most of the purchases made without a purchase order were small. The larger problem, he said, became apparent when six houses were demolished in the city without a purchase order beforehand.

Councilman Patton Gilliland said money for the demolitions was taken out of the city’s capital improvement fund — something that he says should not have been done. He said the funds used for demolition, about $25,000, should now be taken out of the general fund and returned to the capital improvement fund.

Gilliland said requiring a purchase order before work is done will help ensure each department lives within its budget, because the auditor can make sure there's enough money in the budget before any work or orders are completed.

Villano said he has made it known that a purchase order is needed before ordering or authorizing work, but work authorized by a person of authority in the city will eventually have to be paid — with or without a purchase order.

He said he can refuse to pay for work when there is no purchase order, but the city would likely then be sued and forced to pay for the work and,   possibly, legal fees later.

“I look at the whole situation as a Catch-22. You can argue it both ways, but in the end you will have to pay it,” he said.