Palestine Budget Buster !

by Palestine Native Son, Jack Coleman

 

Purchase of $80,166.73 dump truck with a lapsed purchase order?

Public Works Director obtained a Purchase Order in March, 2018 for a 2019 dump truck chassis to be delivered upon availability.  It appears the Purchase Order was not entered as an encumbrance against the 2017-2018 budget. The invoice date on the dump chassis is 10/02/2018. The Purchase Order had lapsed at the close of the fiscal year on September. The consequence of not placing the encumbrance on the 2017-2018 budget was the City Manager failing to include the $80,166.73 as a budgetary item for budget planning and subsequent adoption of the 2018-2019 budget by the City Council.  A check issued for the purchase against a line item with no 2018-2019 budget resulted in a budget bust of $80,166.73 within the first month of the fiscal year.

 

Timeline commentary with links to referenced documents:

11/13/2018

Agenda item to approve checks, including check number 189515 payable to Southwest International Trucks, Inc., accompanied by several documents supporting the prior approval of the transaction. Two of the documents supporting the approval of the check appear to contain differences from those supporting the City Council purchase order authorization agenda item in the 04/09/2018 agenda packet.

 

10/08/2018

City of Palestine check number 189515 issued to Southwest International Trucks, Inc. in the amount of $80,166.73. The stub description is I.D. t30432  PO# 18-03838  2019 INT 7300 Dump Chassi    The check was issued against a budget account with a zero budget balance.  A scanned copy of the check stub may be viewed in the 11/13/2018 City Council Agenda supporting documents on page 66 of the electronic City Council agenda packet found on the City of Palestine website.

10/08/2018

City Manager approval on Payment Authorization stamped on Southwest International Trucks Unit Invoice T30432

10/08/2018

Circled notation on PO Number 18-03838 “Just got in 10-8-2018”  No initials or other identifier for person making the notation.  A scanned copy of the purchase order with notation may be viewed in the 11/13/2018 City Council Agenda supporting documents on page 68 of the electronic City Council agenda packet found on the City of Palestine website.  There appear to be differences in the signature blocks between the purchase order copy in the 11/13/2018 and the purchase order copy contained in the City Council agenda packet for the 04/09/2018 meeting which sought approval of the purchase. See photograph comparing the authorizing signatures below.

10/05/2018

Department Director approval on Payment Authorization stamped on Southwest International Trucks Unit Invoice T30432

 

10/02/2018

Southwest International Trucks Unit Invoice for 1 Model 7300 INTL 2019 Stock Number 615066 for $80,166.73. The invoice is not original. It is identified as Reprint Number 1. Salesman TC   Purchase Order No. 18-03838   Invoice Date 10/02/2018   Invoice Time 14:50:35   Invoice Number T30432.  The City of Palestine Payment Authorization stamp appearing on the invoice contains the following information: PO# 18-03838   Acct# 540-5-110-8041  $80,166.73  Describe:  2019 Chassis   DPT DIR: TP? (unidentifiable mark)  10/5/2018   FINC DIR: blank   CTY MNR: M (unidentifiable mark)  10/08/2018     A scanned copy of the invoice may be viewed in the 11/13/2018 City Council Agenda supporting documents on page 67 of the electronic City Council agenda packet found on the City of Palestine website.

10-01-2018

10-01-2018 10:34 AM print date of City of Palestine Budget Planning Report As Of September 30th, 2018. These reports are included in the 2018-2019 Adopted Budget for the City of Palestine, Texas.  The budget amount showing for 540-5-110-8041  Water Fund Vehicles is zero. The 540-Equipment Replacement budget may be found in the budget document on page 177 of the City of Palestine 2018-2019 Budget. The budget book is available in electronic format at the City of Palestine website’s transparency tab (see link below).

 

09/30/2018

End of fiscal year.  All purchase orders except capital projects lapse. See City of Palestine Adopted Budget 2018-2019 page 266; “Encumbrances (Purchase Orders) lapse at year’s end unless the associated budget is re-appropriated by Council in the following year.”  No appropriation, or re-appropriation, was budgeted for account 540-5-111-8041 in the City Council Adopted Budget for the 2018-2019 fiscal year.

 

09/24/2018

2018-2019 Budget adopted by City Council.  No 2018-2019 budget for dump truck chassis in Vehicle Replacement Fund line item 540-5-111-8041. Line item is adopted with a zero budget amount.

 

08/02/2018

Public Works Director appears before City Council in workshop session to review department proposed budget. There was no comment regarding acquisition of the dump truck.

 

04/04/2018

Preparation Date City Council City of Palestine, Texas Agenda Action Form prepared by Felipe Garcia.  Exhibits: Purchase Order Request and supporting/quote documents, photographs of an old truck.  The supporting documents and photographs may be viewed in the 04/09/2018 City Council on pages 78-94 of the electronic City Council agenda packet found on the City of Palestine website.

 

03/22/2018

Purchase order 18-03838 issued to Southwest International Trucks, Inc. for a 2019 International Dump Truck Chassis to be charged against the City of Palestine account number 340-5-110-8041.  This Purchase Order lapsed on 09/30/2018, the end of the fiscal year because the purchase contract was not fulfilled until 10/02/2018, the date of the truck invoiced by Southwest International.

 

There appear to be differences in the appearance of the signature blocks between the purchase order copy in the 11/13/2018 and the purchase order copy contained in the City Council agenda packet for the 04/09/2018 meeting seeking approval of the purchase. See photograph comparing the authorizing signatures below.

 

03/21/2018

City of Palestine Purchase Order Requisition Form dated 03/21/2018 requested by C.R. – Fleet Maintenance. Order to be placed by requester. Exempt from Bidding marked Interlocal Agreement   Southwest International Trucks   2401 E Pinoeer (sic) Pkwy   Arlington, Texas 76010   817-861-7084   817-664-2900   Champion NO BID   Account Number blank   2019 International 7300 Dump Truck Chassis   1   $80,166.73   Department Head Signature: appears Tim Perry (illegible) Undated

A scanned copy of the Purchase Order Requisition may be viewed in the 04/09/2018 City Council Agenda supporting documents on page 86 of the electronic City Council agenda packet found on the City of Palestine website.   There are differences between the purchase order requisition contained in the 04/09/2018 agenda and the 11/13/2018 agenda; handwritten account number 540-5-111-8041, different approving signatures, and signature date appearing on one copy but not the other.

 

03/16/2018

Quote WTTLLC00008461 obtained specifying Dump Body for billing and delivery to Southwest International Trucks, Inc.  Quoted price to Southwest was $13,815.00 and is included in the total cost of the dump truck. The supporting documents and photographs may be viewed in the 04/09/2018 City Council on pages 78-94 of the electronic City Council agenda packet found on the City of Palestine website.

 

03/14/2018

Specification sheet Proposal Number 6675-01 presented by Southwest INTL TRKS INC to C.R. Nicholson for a 2017 7300 SBA 4×2 (SA615) Construction Dump.  The supporting documents and photographs may be viewed in the 04/09/2018 City Council on pages 78-94 of the electronic City Council agenda packet found on the City of Palestine website.

 

Links to public record source documents:

 

11/13/2018 City Council Agenda:

http://www.cityofpalestinetx.com/users/0020/Agenda%202018/a2018-11-13_Council.pdf

 

04/09/2018 City Council Agenda

http://www.cityofpalestinetx.com/users/0020/Agenda%202018/a2018-04-09_CityCouncil.pdf

 

 

City of Palestine Adopted Budget

http://www.cityofpalestinetx.com/users/0025/docs/2018-19AdoptedBudgetBook.pdf