The URL can be used to link to this page

Home My WebLink About4.09 Revise Accounting Procedures, ~ ~ ~3~~ _~ zc~ CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 8, 1986 SUBJECT: EXHIBITS ATTACHED: RECOMMENDATION: FINANCIAL STATEMENT: Revisions to Accounting Procedures Revised Accounting Procedures Section III, A, B, and Section VIII; Cash Register Reconciliation Form Approve Revision to Accounting Procedures None DESCRIPTION: The Finance Director has reviewed the City's procedures for documenting and processing the receipt of cash and negotiable items (checks, drafts, money orders, etc.). As a result of this review, Staff is recommending that certain accounting procedures be modified. These modifications were reviewed by the City's auditor and comply in substance to recommendations noted in the auditior's Management Letter to the City. The revisions will supercede current procedures enumerated in Section III, Paragraph A and B and C. The new procedures are numbered Section III, Paragraph A and B. The paragraph concerning "Billing for Services" previously enumberated as Section III, D will now become Section III, C. It should be noted that the procedures identify that two cash registers will be obtained. One will be located at the Shannon Recreation Center and the other at the Development Services counter (Planning, Engineering, and Building Departments counter). From time-to-time, it may become necessary for the Finance Director to submit new and/or revised accounting procedures. It is recommended that all such future changes be proposed by the Finance Director and approved by the City Manager, as opposed to Council approval. This would be a less cumbersome way of making necessary changes as the City's organization changes and would be consistent with the practice in many other cities. The City Council's review of accounting procedures should occur as part of the annual financial audit. It is Staff's recommendation that the City Council adopt the proposed revisions to the City's accounting procedures. ----------------------------------------------------------------- COPIES TO: ITEM N0. ~ ~ ~ SECTION III A. Receipting process at City offices: ~ , 1. There shall be three locations in the Municipal Corporation for receiving negotiable items (checks, drafts, money orders, certificates of deposit, ets.) from the general public. One of the locations shall be at the Shannon Recreation Center, which will primarily be responsible for receiving recreation fees and money from the "Bag it" program. The second shall be located at the Development Services counter on the first floor of City Hall, which will primarily be responsible for receiving Building, Planning, and Engineering fees and deposits plus money for the sales of police reports and "bag it" trash bags. The third is located at the desk of the City Manager's secretary, where direct deposits, interest checks, and subvention revenues, and grant funds will be received. a. A City employee shall be designated as the primary Staff person in each of three locations to be responsible for the receipting process. An alternate employee at each site shall also be identified to fulfill the duties of receipting in the absence of the primary Staff person. b. The City shall place a cash register at the first and second site locations. The money in these cash registers shall not be used for the sole purpose of making change, whether for the general public or City employees. 2. The procedures for receipting checks and cash received at the first and second location is outlined below. a. Any payments received in the mail for the recreation, building, engineering, or planning department shall: 1.) be opened, and a counter receipt prepared showing the name of the individual or company making payment, the date received, purpose of payment and indication whether payment was made by cash or check, and ~~a~J-~ mer~~ ~ ~ ~ 2.) this money shall be totalled and posted into the cash register at a predesignated time each day consistant with the time that the mail is delivered. b. All money received over the counter shall be processed in the following manner: l.) a counter receipt shall be prepared immediately as identified in A(2)(a)(1) above, and 2.) each individual transaction shall be posted into the cash register at the time of receipting, and 3.) each transaction entered into the cash register shall be posted so as to show the amount of the charge/fee, the total amount received and the amount of the change due. c. Each cash register shall be cleared at a predesignated time each working day and the cash in the register drawer shall be reconciled each working day so as to show: the total money in the register drawer less: the amount on the secured register tape the amount of the change fund in drawer at the beginning of the day Any difference shall be brought to the attention of the Finance Director or his designated representative (OHDR) for proper disposition. By signing the Daily Cash Register Reconciliation form, the Finance Director (OHDR) signifies that all the money received, receipts prepared, and secured register tape balances. d. After the daily cash receipts are reconciled, the negotiable items and pertinent forms shall be deposited with the City Manager's secretary or her designated representative (OHDR} no less than once a day. A control receipt shall be prepared for each daily register deposit submitted. ~ ~ e. The cash drawer in each cash register shall be removed from the register at the close of each business day and sha-11 be locked in a safe and secured place. f. Each designated Staff person shall be responsible for maintaining in chronological order a file of the Daily Reconciliation forms with the register tapes attached. 3. Negotiable items received which do not specifically pertain to the Building, Planning, Engineering, or Recreation Departments, and all direct deposits shall be receipted by preparing a control receipt at the third location - by the City Manager's secretary. 4. All checks, drafts, money orders received by any of the three receipting locations shall be embossed with the City's "for deposit only" stamp. 5. No third party checks shall be accepted for payment of City fees/charges/deposits, etc. 6. All receipts shall be issued in numeric sequence. B. Deposits - The deposit of City funds into the municipal corporation's bank shall be accomplished not less than 3 times each week. The City Manager's secretary shall complete the deposits. l. The receipts shall be reviewed by the Finance Director to assure that the description is adequate and properly defines the account into which the amount is posted. 2. On a periodic basis no less than once a month, the receipts are processed through the computer system. 3. The receipts are then filed in appropriate order so as to be accessable when needed. VIII. Revision to Accounting Procedures All proposed revisions to accounting procedures shall be prepared in writing by the Finance Director. Proposed revisions shall be reviewed and approved by the City Manager. Once approval has been given, the date of approval shall be incorporated on the revised page(s). The Administrative Services/Finance Department shall prepare and distribute revised pages to all Departments for insertion in their Accounting Procedures Manual. . r ~ ~ DAILY CASH REGISTER RECONCILIATION FORM Date: COUNT OF CASH Bills $100 x $50 x $20 x $10 x $5 x ~2 X $1 x COUNT OF CHECKS Total Cash $ l $ 7. $ 13. $ . 2. $ 8. $ 14. $ 3 $ 9. $ 15. $ . 4 $ 10. $ 16. $ . 5. $ 11. $ l~• $ 6. $ 12. $ 18. $ Less Change Amount ( ) A. Net Proceeds to City $_________ B. Amount posted on Cash Register Tape $_________ (Attached Cash Register Tape) Difference between item A& B = $_________ Total Checks $ Total Cash & Checks Secretary/Cashier Finance Director ,~7-~-~tfm~nT ~