Local government purchasing is complex. For illustrative purposes, the county process is outlined here.
A requisition needs to be written by the office requesting the purchase to give the specifications of the item to be purchased, cost estimate, suggested vendor and line item from which the expenditure should be made. The requisition is then forwarded to the commissioners' office, where a purchase order is written. The purchase order is sent to the auditor, who reviews it to see if the requested item is appropriate for the listed line item and to see if there is sufficient unencumbered money available. If both these tests are passed, the purchase order is sent back to the commissioners' office. If they approve the purchase, a copy of the purchase order is sent to the vendor, who ships the merchandise and sends an invoice to the buyer.
After the merchandise is received, the buyer checks it to assure that it is in good condition and meets specifications. If so, the invoice is approved and sent to the auditor's office. The auditor prepares a voucher, with a certificate attached stating that there are sufficient unencumbered funds to pay the bill. The voucher then must be signed by the county commissioners. The auditor prepares a warrant for payment to the vendor. The warrant has the same effect for the vendor as a check. The vendor can deposit or cash the warrant. It is processed through the banking system to the county's official bank. The bank files the warrant with the county treasurer, who redeems the warrant by issuing a check on the account of the county. The treasurer must be certain that there is sufficient money in the fund to cover the check.
Other more complex procedures apply for construction projects such as roads and bridges, buildings and water and sewer facilities.
County purchasing is purposefully complex so that taxpayer money may be protected. The built-in checks and balances assure that several different offices must approve each purchase. Townships and municipalities follow similar procedures. ORC 5705.41 outlines the basic expenditure process. For information on more complex purchases, codes regarding bidding, bond, etc., procedures must be consulted.