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HomeMy WebLinkAboutAGENDA REPORT 2018 0620 CCSA REG ITEM 10FCITY OF MOORPARK, CALIFORNIA City Council Meeting of June 20, 2018 ACTION Approved staff recommendation BY M. Benson F. Consider Revised City Council Policy 5.3: Authorization for the Issuance and Countersigning of Warrants Pursuant to Chapter 3.12 of the Moorpark Municipal Code and Wire Transfer Authority Policy. Staff Recommendation: Approve revised City Council Policy 5.3 and direct staff to incorporate revised Policy 5.3 into the next comprehensive update of the City Council Policies Resolution Item: 10.F. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Ron Ahlers, Finance Director DATE: 6/20/18 Regular Meeting SUBJECT: Consider Revised City Council Policy 5.3: Authorization for the Issuance and Countersigning of Warrants Pursuant to Chapter 3.12 of the Moorpark Municipal Code and Wire Transfer Authority Policy SUMMARY Staff has reviewed City Council Policy 5.3, “Authorization for the Issuance and Countersigning of Warrants Pursuant to Chapter 3.12 of the Moorpark Municipal Code and Wire Transfer Authority” (Policy 5.3) and requests the Council approve updating this policy to allow for the City’s use of the City’s new financial software for check signing and improve efficiencies within the check signing process. BACKGROUND Currently, ALL City checks are signed manually by two individuals. The Mayor or Mayor Pro Tem and the City Manager sign all checks greater than $5,000. The City Manager and City Treasurer sign all checks less than $5,000. In the absence of the City Manager, the Assistant City Manager is authorized to sign checks less than $2,500. If the City Manager is not available to sign checks there is a delay in mailing the checks until the City Manager can manually sign. In the near future, the City will be able to convert from manually signed checks to computer signed checks using the City’s new financial software, Tyler InCode X. The computer signed checks are proposed to use two “facsimile signatures”; the Mayor and the City Manager. Per California Government Code sections 5500-5506, in order to use a “facsimile signature”, the City will file manual signatures with the Secretary of State. Prior to printing the checks, it is proposed that the Finance Director and the City Manager will authorize the signing of the checks by either: (1) manual signatures on the check register or (2) on-line approval within Tyler InCode. The Assistant City Manager will be allowed to authorize the signing of checks in the absence of the City Manager. The Deputy Finance Director will be authorized to sign checks in the absence of the Finance Director. All other reviews and controls remain the same. This updated procedure improves internal control by limiting the number of times the checks are transferred between city staff prior to the checks being mailed. Electronic signatures Item: 10.F. 880 Honorable City Council 6/20/2018 Regular Meeting Page 2 will enable checks to be signed in a quicker manner, enhancing organizational efficiency, and checks will be touched by less people; thus increasing the control in the check run process. In addition, the policy update eliminates the Mayor or Mayor Pro Tem from the review process prior to the checks being mailed and replaces that oversight role with other internal controls as described in this report and in the proposed policy. The updated Policy 5.3 removes the $5,000 dollar amount limitations for signing checks. All checks shall have the facsimile signatures of the Mayor and the City Manager, regardless of dollar amount. The revised Policy 5.3 prohibits: handwritten checks, signing blank checks, signing checks made out to “CASH” and manually signed checks. These prohibitions improve internal control since the only checks that are authorized are generated by the financial software which requires: vendor name, address, dollar amount, authorized budget and a valid date. The only two facsimile signatures appearing on the checks shall be the Mayor and the City Manager. The Mayor pro tem, Assistant City Manager and City Treasurer signatures will not appear on the checks. Wire Transfer (WT), Electronic Fund Transfer (EFT) and Automated Clearing House (ACH) The policy increases the WT, EFT and ACH dollar limit from $5 million to $7 million for investment purposes. In reviewing the policy staff is recommending changes to the Investment limits which are contained in the policy. In order to provide greater flexibility when the city receives large amounts of cash at one time (for example during December and May the city usually receives $4-5 million in property taxes). The cash is invested in the Ventura County Pool (VC Pool) or in the Local Agency Investment Fund (LAIF) operated by the State Treasurer. Property tax revenues have increased recently and the need to move additional cash to VC Pool or LAIF is warranted. The revisions to Policy 5.3 are shown using legislative format in the attachment. FISCAL IMPACT None. STAFF RECOMMENDATION Approve revised City Council Policy 5.3, Authorization for the Issuance and Countersigning of Warrants Pursuant to Chapter 3.12 of the Moorpark Municipal Code and Wire Transfer Authority, and direct staff to incorporate revised Policy 5.3 into the next comprehensive update of the City Council Policies Resolution. Attachment: City Council Policy 5.3, Authorization for the Issuance and Countersigning of Warrants Pursuant to Chapter 3.12 of the Moorpark Municipal Code and Wire Transfer Authority 881 Policy 5.3: Authorization for the Issuance and Countersigning of Warrants Pursuant to Chapter 3.12 of the Moorpark Municipal Code and Wire Transfer Authority All check stock shall be kept in a locked and secure location with restricted access. Finance department staff shall treat all check stock as if it were cash. A log of all checks issued for printing shall be kept in a locked and secure location. The log shall contain: date of issue, check numbers issued and the initials of the Finance department staff who were issued the check stock. Demand warrants shall be issued for payment of capital and operational expenses related to the purchase of goods, services, materials, supplies or equipment., and pPayroll warrants shall be issued to compensate employees for services rendered orand to pay for: taxes, benefits, insurance orand other related personnel costs. Prior to issuance of any warrants, a check register shall be approved, using (1) a manual signature or (2) an approval process within the financial software. The check register shall be approved by two employees: the City Manager (or Assistant City Manager in the absence of the City Manager) and the Finance Director (or Deputy Finance Director, in the absence of the Finance Director). Demand and payroll warrants are hereby authorized to be computer signed with the facsimile signature of Citythe City Manager’s computer signature and computer countersigned with the facsimile signature of the Mayor. All checks shall be generated through the financial software system. If the City Manager is to receive a check, then the Assistant City Manager shall approve the check register. If the Finance Director is to receive a check, then the Deputy Finance Director shall approve the check register. by the Mayor’s or Finance Director’s computer signature, subject to a check register approval signature by both signatories. This policy strictly prohibits the use of hand-drawn checks. This policy strictly prohibits the signing of blank checks. This policy strictly prohibits checks written out to “CASH”. This policy strictly prohibits the manual signing of checks. The City Manager is hereby designated to countersign warrants signed by the Mayor or Mayor Pro Tempore in the absence of the City Treasurer. Any payroll warrant that is manually signed shall be signed by the City Manager, Mayor, or Mayor Pro Tempore, and countersigned by the City Treasurer, City Manager, Assistant or Deputy City Manager, or City Treasurer designee; however, the City Manager may not countersign his own signature. Any demand warrant that is manually signed shall be signed by the Mayor or Mayor Pro Tempore and shall be countersigned by the City Treasurer, City Manager, Assistant or Deputy City Manager, or City Treasurer designee, except demand warrants less than or equal to $5,000.00 may be signed by the City Manager and countersigned by the City Treasurer, Assistant City Manager, or City Treasurer designee. In the absence of the City Manager, the City Manager may authorize the City Treasurer to sign and the 882 Exhibit A Assistant or Deputy City Manager to countersign demand warrants less than or equal to $2,500.00. Wire transfers (WT), Electronic Fund Transfer (EFT) and Automated Clearing House (ACH) transactions are needed for various financial transactions of the City involving expenditures and investments. W T, EFTire transfer and ACH expenditure requests for which there is a City Council approved budget appropriation require two signatures, and mayshall be signed by the City Manager (or the Assistant City Manager in the absence of the City Manager) and either the Finance Director (or Deputy Finance Director in the absence of the Finance Director). WT,ire transfer EFT and ACH expenditure requests that do not have an approved budget appropriation, regardless of the amount, must be approved by the City Council. W T, EFTire transfer and ACH requests for investment transactions are limited to $75 million per day and require two signatures: the City Manager (or the Assistant City Manager in the absence of the City Manager) and either the Finance Director (or Deputy Finance Director in the absence of the Finance Director). This policy applies to the City of Moorpark (City), Successor Agency to the Redevelopment Agency of the City of Moorpark (SARA) and Moorpark Watershed, Parks, Recreation and Conservation Authority (MWPRCA). 883