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Proposal for Greater Fiscal Oversight (aka "Transparency with Teeth” ordinance) By Councilman Rashid Burney October 4 2010 Background In the last few years, the City of Plainfield has not seen the desired stability in the leadership of the accounting and finance department. These coupled with two large known expenditures that were not authorized by the City Council, and at least one additional set of expenditures that is still under review, has given rise to concerns and questions about the viability of our fiscal controls. Itis the responsibility of the City Council to exert greater oversight and require complete compliance with local and state fiscal codes. Objective of Proposed Ordinance The Council desires 100% compliance with state and local codes on fiscal matters. To do that, we need systemic transparency, and oversight at the right place and at the right time. The objective is to not only to see expenditures of the city, but also intercede in the extreme situations where necessary to prevent unauthorized contracts and/or purchase orders from being fulfilled and an obligation. At the same time, the ordinance does not look to change the daily efficiencies and operations of city government. Mechanisms of Ordinances > Administration to provide Council with a list of all contracts signed on a bi-weekly basis. ‘Administration to provide Council with a list of all Purchase Orders issued on a bi-weekly basis. Report of all purchases made outside of central purchasing Reports are to be emailed to the Council on the Sth and 20th day of every month Reports shall contain date of execution, description of goods/services, vendor's name and amount of contract/purchase order vv vv Benefits of Ordinance 1 Provide systemic transparency on 100% of purchase orders 2, Provide systemic transparency on proposed expenditures 3, Provide oversight at the right end of the process - before services are rendered 4. Allows interventions prior to obligations being incurred 5, Costs of such oversight are limited - simply reports generated 6. Does not impact the daily and routine efficiency and of the work flow Limitations of Ordinance 1. Relies on Council active oversight 2. Relies on administration's inclusiveness 3, Urgent expenditures may be encumbered prior to Council receipt