1. Borough of Plum Purchase Authorization Process If the purchase is greater than $1,000 and less than or equal to $9,999, it requires three verbal quotes. Departmental Need for Goods or Services Purchase Requires Three Verbal Quotes Borough Department identifies need for the purchase of a good or service. Is The Purchase > $1,000 and < or = $9,999 No Yes Verbal quotes require documentation and must be attached to the purchase order. Is The Purchase < $250 If the purchase exceeds $250 it requires prior approval of the Borough Manager or Assistant Borough Manager, with the Finance Director serving as a back-up in their absence. Yes Purchase Requires Three Written Quotes Purchase Requires Sealed Bids No Is the purchase approved by the Borough Manager, Assistant Borough Manager or Finance Director. A Is The Purchase > $9,999 And < or = $18,500 Yes Is The Purchase > $18,500 A A No Management Approval Process Terminated Yes If the purchase is greater than $9,999 and less than or equal to $18,500, it requires three written quotes. Written quotes are required to be attached to the purchase order. If the purchase is greater than $18,500 it must adhere to solicitation of bids required by Borough Code. Is The Purchase > $250 Yes Purchase Item with Director Approval No For all items purchased that are less than $250, all that is required is Director approval and a completed purchase approval slip. Amended 12/10/13

2. Plum Borough Purchase Authorization Process Originator will be notified through Edmunds Financial if the request exceeds available budget. Request for purchase which created a budget exception is approved or denied. Go To Page Three Finance Director verifies type of budget exception. This exception is at the budget line level and can be approved by the Finance Director. Is there Available Budget No Yes Purchased Approved No Purchase Denied End of Process Submit Budget Exception Approval Form To Finance Director Originator forwards Budget Exception Approval form to Finance Director. Type Of Budget Exception Is This An Emergency Purchase Department head determines if the purchase is emergency in nature. Create Purchase Approval Slip Purchase Approval Slip is created, verbally approved, and signed by Department Head. Yes No Sub Account Budget Exception Control Account Budget Exception This exception is at the overall Department level and can only be approved by the Borough Manager. Yes Create Purchase Requisition Department creates requisition for purchase completely detailing items to be purchased. A Amended 12/10/13

3. Plum Borough Purchase Authorization Process Department Head is required to approve or deny purchase of goods or services. Go To Page Four Continued From Page Two No Yes Department Head Approval No Purchase Denied End of Process The Purchase is denied by Department Head. Requisition First Approval The Purchase is reviewed for correctness and approved by the Associate Accountant. Is Requisition Coded Properly Requisition Coding Corrected Requisition Second Approval Yes Department Head is notified and corrects requisition coding. The purchase requisition is approved by the Associate Accountant. The purchase requisition is approved by the Department Head. Amended 12/10/13

4. Plum Borough Purchase Authorization Process Finance Director creates purchase orders on a daily basis. Go To Page Five Continued From Page Three Requisition for purchase are approved by Finance Director on a daily basis. Requisition Approval By Finance Director Requisition Coding Corrected No Yes No Is Requisition Approved By Finance Director On a daily basis, the purchase requisitions are reviewed by the Finance Director for correctness and completeness. Requisition for purchase is corrected by department and moves to third approval stage. Purchase Orders Are Created By Finance Director Purchase Orders Are Forwarded To Borough Manager Finance Director forwards the newly created purchase orders to the Borough Manager or Assistant Manager, with the Finance Director serving as a back-up in their absence. Amended 12/10/13 Is Purchase Order > $350 B

5. Plum Borough Purchase Authorization Process Go To Page Six Continued From Page Four Purchase orders are signed by Director. Purchase Orders Are Forwarded To Appropriate Director Yes No Purchase Denied End of Process The Borough Manager or Assistant Manager approve all purchase orders, with the Finance Director serving as a back-up in their absence. The Purchase is denied by Borough Manager or Assistant Manager, with the Finance Director serving as the back-up in their absence. Borough Manager Approval Purchase Orders Are Signed By Director Authorization To Place The Order Amended 12/12/11 B Purchase orders are forwarded to Department Director for approval to purchase. At this point, the Borough has approved purchase orders and can proceed with purchases. Process Terminated

6. Plum Borough Purchase Authorization Process The Receptionist forwards original approved purchase orders to originating department. Continued From Page Five Approved Purchase Orders Are forwarded To Secretary Borough Manager Approves Purchase Orders At this point, the Borough has approved purchase orders and can proceed with purchases. The Borough Manager or Assistant Manager approve the purchase orders, with the Finance Director serving as a back-up in their absence. The Borough Manager forwards approved purchase orders to the Receptionist. Purchase Orders Are Forwarded To Department Head Authorization To Place A Purchase Process Terminated Amended 12/10/13