The city's internal auditor has recommended several changes aimed at preventing abuses of the purchasing system.
City Manager Ken Nipper, in a memo dated Feb. 12 to new purchasing director Terry Guibert, ordered immediate implementation of Francis T. Casey's recommendations.
Former purchasing director John Kneece resigned Oct. 17 following disclosure he had withheld more than $13,000 in cash proceeds from the sale of city scrap metal from April 1982 to September 1985.
Casey was hired shortly after the Kneece incident. In an eight-page report dated Jan. 31, Casey outlined several proposals to tighten city purchasing activities.
The recommendations include assigning responsibility for disposal of inventory to non-related purchasing personnel. Written approval from the city manager would be required.
Prenumbered sale forms should be used, the report said. Payment should be by check to "The City of Lake Worth."
Validated or prenumbered receipts would be issued to the firm or person buying, and original documents forwarded to the finance department, under the plan.
Casey said warehouse perpetual inventory" records were inadequate. He recommended that the finance department be responsible for maintaining perpetual inventory records.
While previously the same person could requisition, order, receive, store or dispose of inventory, Casey proposed dividing those responsibilities among several people.
Casey also recommended that the City Commission be required to approve all purchases. Previously, approval was needed only for purchases exceeding $5,000.
The report also said all special check requests should be granted only for amounts of less than $50. Also, purchase orders must now be issued before any merchandise is received, except on emergency purchases, which must be cleared by the city manager and purchasing director.