HomeMy WebLinkAboutItem 4.09 Reorg of Finance Function CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: April 28, 1986
SUBJECT City Manager ' s Report - Accounting Procedures Review
and Reorganization of Finance Function
EXHIBITS ATTACHED 1 ) Revised Accounting Procedures
2 ) Letter from Financial Consultant dated April 7,
1986
3 ) Resolution revising signatories on City ' s bank
account
4 ) Resolution amending Personnel Classification Plan
5 ) Resolution amending Salary & Benefit Plan
RECOMMENDATION 1 ) Approve Accounting Procedures as amended
2 ) Adopt Resolution revising signatories to City bank
G account
3 ) Adopt Resolution amending Personnel Classification
Plan
4 ) Adopt Resolution amending Salary & Benefit Plan
FINANCIAL STATEMENT: It is anticipated that the net cost to the City during
Fiscal Year 1986-87 to add an Administrative
Services/Finance Director would be $44 , 200 .
DESCRIPTION In accordance with the City Council ' s adopted * 1986
Goals & Objectives Plan, Staff has undertaken a review of the City ' s
Accounting Procedures as well as developed recommendations for the
reorganization of the Finance function.
Accounting Procedures Reviewed
To date, it has been the practice of the City to utilize an accounting
service to process the detailed accounting records by use of a computer,
post the general ledger and prepare a monthly financial report for the City.
Continued growth in the City ' s accounting records has resulted in delays in
the availability of records while en route to and from the computer service .
Many times when accounting records were needed, they were not available .
The revised Accounting Procedures (see attached) will 1) facilitate a more
current processing schedule for preparing monthly and annual budget and
accounting reports ; 2 ) provide more flexibility in preparing special
financial data reports ; 3 ) increase accuracy in budget records ; and 4 ) shift
routine processing detail from the - City Manager and the Assistant to the
City Manager to make more time available for high priority projects .
During 1985-86 , a Finance Technician position was added to the City Staff .
The Accounting Procedures have been revised to reflect the redistribution of
various accounting assignments to the Finance Technician position .
During the Accounting Procedure review, the City ' s Financial Consultant, Mr.
Charlie Bird, suggested a change in the procedure for handling budget
adjustments . Presently, the City Manager may make a budget adjustment
within a department ' s budget not to exceed $2 , 500 . All budget adjustments
exceeding $2, 500 within a department and all budget adjustments between
departmental budgets must be authorized by the City Council .
Mr . Bird has suggested that the $2 , 500 limit be removed with the City
Manager being given authority to make any adjustment within a department ' s
budget provided that the total budget for the department is not exceeded.
All inter-department budget transfers would still be approved by the City
Council prior to the adjustment being made. In a letter dated April 7 ,
1986, Mr . Bird has outlined his recommendation in more detail .
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COPIES TO:
ITEM NO. �
AGENDA STATEMENT: City Manager ' s Report - Accounting Procedures Review and
Reorganization of Finance Function
Page 2 -.
It has also become apparent that it would be prudent to add an additional
signatory to the City' s bank account. Presently, the Mayor and the City
Clerk are authorized to sign all non-payroll checks , with the City Clerk
being authorized to sign payroll checks . Occasionally, the Mayor or City
Clerk may be unavailable to sign non-payroll checks and thus , delay the
processing of- the City ' s bills . It is therefore recommended that the City
Council adopt a Resolution which would add the Vice Mayor to the bank
signature cards and authorize the Vice Mayor to sign non-payroll checks in
the absence of the Mayor or City Clerk.
Finance Function Reorganization
Since incorporation, the City has continually modified its method of
handling financial administration to meet -the increased accounting volume
and special needs of the City. With the adoption of the 1985-86 Budget, the
City Council authorized the hiring of a Finance Technician position to
handle the routine processing of accounting transactions which had
previously been performed by members of the City Manager ' s Staff . The
Council also authorized the retention of a Financial Consultant to provide a
higher level of financial expertise to the City on a part-time basis .
During Fiscal Year 1985-86, the Financial Consultant has worked on the
average of approximately 1 1/2 ' days per week. Although the Financial
Consultant has done an excellent job on those special projects assigned, it
has become apparent that additional continuity is needed in managing the
finance function on an ongoing basis . Due to the large number of special
projects presently being undertaken by the City Manager and his Staff, as
well as the high level of financial expertise that is needed to manage the
finance functions for the City, it is recommended that the City Council
consider the addition of an Administrative Services/Finance Director
position to the City Staff . As indicated in the attached job description,
the Administrative Services/Finance Director would be a Department Head who
would have responsibility for the administration of finance, building
management, development and supervision of data processing, and the treasury
function which is presently assigned to the City Manager. In addition, this
position would also have available time to undertake some of the projects
which have been assigned to the City Manager ' s Office by the City Council .
The City has presently a $4 . 5 million Operating Budget and $14 million
Capital Improvement Budget . Included within this budget are 3 assessment
districts and a civic center construction fund. The magnitude of the City' s
budget, as well as the complexity of the financing instruments that the City
is presently using and anticipates utilizing in the future, necessitate the
addition of a full-time individual who has the credentials necessary to
perform these responsibilities .
It is proposed that the Council authorize the City Manager to commence the
recruitment but not fill the position until Fiscal Year 1986-87 .
It is Staff ' s recommendation that the City Council approve the revised City
of Dublin Accounting Procedures , adopt a resolution revising the signatories
on the City bank account, adopt a resolution establishing the position of
Administrative Services/Finance Director, adopt a resolution amending the
salary & benefit plan, and authorize the City Manager to commence the
recruitment for the Administrative Services/Finance Director.
CITY OF DUBLIN
ACCOUNTING PROCEDURE
In order to more efficiently administer the financial operations of the
City, the following set of Accounting Procedures has been prepared. These
Accounting Procedures describe those methods and accounting systems which
are presently used in the handling of the City' s financial transactions .
These procedures will provide for greater internal control of the
accounting function and also provide for a smooth transition when there are
changes in personnel . These procedures cover the following areas .
I . Purchasing
A. Purchase Orders
B. Petty Cash - Administration
C . Petty Cash - Recreation
D. Petty Cash - Police Investigation
E. Petty Cash - Insurance Liability
II . Accounts Payable
III . Accounts Receivable
A. Receipt of .Funds at City Offices
B. Deposits
C. Receipt of Funds at Recreation Department
D. Billing for Services
IV. Payroll
V. Investments
VI . Accounting Records - Preparation & Posting
A. Cash Receipts
B. Cash Disbursements
C . Payroll
D . Deposit Accounts
E . Journal Vouchers
F. Changes to Chart of Accounts
G. Budget Change
H. Monthly Financial Report
I . Internal Service
VII . Bank Reconciliation
Any questions regarding these procedures should be directed to the
Assistant to the City Manager, the City Manager, or the Finance Technician.
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Accounting Procedures
I . PURCHASING
A. Purchase Orders
A purchase order shall be utilized whenever the cost of the item
purchased is more than $200 . 00 or whenever required by the
vendor.
1 . The Department requesting any item shall complete a Purchase
Order Request Form. The form shall include the signature of
the Department Head.
a. Provided that the cost of the item is between $200 and
$5, 000, the informal bid process may be used. ( 3
quotations ) .
b . The Purchase Order Request Form shall indicate the cost
of identical merchandise from three separate vendors .
C . The form shall identify the vendor ' s name, address,
phone number and contact person.
d. If the purchase order is being requested pursuant to a
waiver of the informal bid process (as provided for in
the purchasing ordinance ) , sufficient written
explanation shall be attached to the request.
e . The request shall be reviewed by the Finance Technician
to determine that funds are available for the purchase.
f . If the request is in order, the Finance Technician will
designate the proper account number on the request form
to which the item will be charged and prepare the
Purchase Order .
g. The completed purchase order should then be returned to
the City Manager ' s Office for the approval signature .
The City Manager must sign all purchase orders for more
than $1 , 000 . The Assistant to the City Manager may
sign purchase orders for less than $1, 000 .
2 . For purchases with a value of more than $5, 000, pursuant to
the Purchasing Ordinance, the formal bid process must be
followed. At the completion of the formal bid process , a
purchase order will be issued to the successful bidder,
provided that a written agreement or other form of
authorization is not completed.
3 . Once completed, the original and pink copy shall be directed
to the department, and the yellow will be retained by the
Finance Technician. The department shall mail the original
copy to the vendor and use the pink copy to record the date
of receipt . The pink copy is then returned to the City
Manager ' s Office . If the goods received are a fixed asset
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Accounting Procedures
item, the information is updated into the fixed asset
inventory. The payment for these items are then processed
as a payable.
B. Petty Cash - Administration
The petty cash fund may be used for incidental purchases of less
than $25 . 00 . Amounts greater than this shall only be released in
emergency situations . These purchases shall be related to City
operations as authorized by the current budget. The goods and
services shall be from a vendor which does not maintain an open
account with the City.
1 . The Deputy City Clerk shall serve as custodian of the petty
cash fund.
a. The fund shall not contain more than $200 . 00 .
b. The Deputy City Clerk may request a warrant issued
payable in his/her name to replenish petty cash funds .
2 . Requests for petty cash shall be completed on a petty cash
request form:
a. The petty cash form shall include : the name of the
person making the request, an itemization of the
purchase, and -cost of each item. A receipt for the
purchase shall be attached.
b . The petty cash request form shall also have the
signature of the Department Head.
C . Approval shall also be given by the Administrative
Assistant to the City Manager, or City Manager. The
proper account number shall be placed by the Finance
Technician on the request form.
d. Provided all approvals are complete, the custodian of
the fund may release the payment to the individual
requesting the payment . The form shall be marked paid
once the funds are released.
e . An advance may be issued to an employee, provided the
transaction will be completed on that day. The request
must be made as described in item (a) above . Once the
transaction is complete, the request form with receipts
must be returned to the Deputy City Clerk.
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Accounting Procedures
C . The request to replenish funds shall contain
documentation of expenditures from the fund. The
replenishment warrant shall not exceed the amount of
the expenditures . The replenishment shall be requested
and processed pursuant to the Accounts Payable Section
of this policy. The warrant plus the remaining cash in
the fund shall equal $200 .
C. Petty Cash - Recreation
The petty cash fund may be used for incidental purchases of less
than $25 . 00 . Amounts greater than this shall only be released in
emergency situations . These purchases shall be related to City
operations as authorized by the current budget. The goods and
services shall be from a vendor which does not maintain an open
account with the City .
1 . The Recreation Director shall serve as custodian of the
petty cash fund.
a. The fund shall not contain more than $200 . 00 .
b . The Recreation Director may request a warrant issued
payable in his/her name to replenish petty cash funds .
2 . Requests for petty cash shall .be completed on a petty cash
request form.
a. The petty cash form shall include : the name of the
person making the request, an itemization of the
purchase, and cost of each item. A receipt for the
purchase shall be attached.
b. The petty cash request form shall also have the
signature of the Department Head, if applicable.
C . Approval shall be given by the Recreation Director .
d. Provided all approvals are complete, the custodian of
the fund may release the payment to the individual
requesting the payment . The form shall be marked paid
once the funds are released.
e . An advance may be issued to an employee, provided the
transaction will be completed on that day. The request
must be made as described in item (a) above . Once the
transaction is complete, the request form with receipts
must be returned to the Recreation Director.
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Accounting Procedures
C . The request to replenish funds shall contain
documentation of expenditures from the fund. The
replenishment warrant shall not exceed the amount of
the expenditures . The replenishment shall be requested
and processed pursuant to the Accounts Payable Section
of this policy. The warrant plus the remaining cash in
the fund shall equal $200 .
D . Police Investigation Account
The Police Investigation account shall contain not more than
$5, 000 and will be primarily used in the investigation of
drug/narcotic investigations , however, funds may be used for
other types of investigations such as : gambling, prostitution,
crimes of moral turpitude and in certain cases , other criminal
investigations .
1 . The Police Chief shall serve as custodian of the
Investigation Account .
2 . Requests for cash shall be recorded on a standard request
form.
a. Either Police Chief or City Manager can withdraw funds
from account .
b . Any expenditure of funds by police personnel requires
the approval of the Police Chief . .
C . Police Chief records and issues funds to investigator
who signs a receipt indicating amount received, date of
transaction and usage .
d. Investigator who receives funds keeps a log indicating
how funds were spent . Information includes case
number, date and reason for expenditure .
e . Police Chief reviews investigator ' s log.
f . City Manager reviews Police Chief ' s and investigator ' s
records and logs .
g. Request for reimbursements will be submitted to the
Finance Technician who shall replenish the account,
reimbursement not to exceed the Council approved
budget .
E . Liability Insurance Account
The establishment of this account and its operation shall be
designated by City Council Resolution. The purpose of this
account is to have a ready supply of cash available for the
settlement of liability claims which are less than $5, 000 (Five
Thousand Dollars ) .
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Accounting Procedures
1 . The Account shall be used by authorized representatives of
the firm selected by the City Council to provide liability
claims administration services . The payment of any claims
shall be based on a review of the facts and any
recommendation made by the claims adjuster.
2 . The firm selected to do claims administration shall have the
authority to pay any claims less than $1, 000 . The City
Manager shall have the ability to authorize payment of
claims by the administrator over $1, 000 and which do not
exceed $5, 000 .
3 . The claims. administration firm shall provide documentation
of all claims paid. The Finance Technician shall reconcile
the monthly bank statement with disbursement data provided
by the claims administration firm. If the checking account
is interest bearing, the Finance Technician shall make
arrangements to recognize earned interest as a General Fund
revenue. This should be completed not less than once each
calendar quarter.
4 . The payment of claims must be expensed when the funds are
replenished. The Insurance Department Budget contains an
account to be used for the payment of liability claims or
judgements . Upon notice provided by the claims
administration firm, or when during statement reconciliation
it is noted that the balance is less than $1 , 000 , the
Finance Technician shall process a claim to replenish this
account . The amount of funds replenished during a Fiscal
Year shall not exceed the authorized budget for claims
expense .
II . ACCOUNTS PAYABLE
Accounts Payable refers to claims and demands presented to the City
for goods and services already received by the City .
A. The City must receive an invoice stating a description of the
goods/services and the cost .
B. A City Warrant Request may be completed if the payment does not
have a formal invoice (i .e. refund, return of deposit, etc . ) .
The warrant request shall include the name of the claimant,
amount of the claim, and supporting documents describing the
services/goods received.
C . Warrants will not be issued for goods which have not been
received (with the exception of services which require payment in
advance ) .
D . The time frame for processing of warrants shall be established
by the City Manager. Unless established otherwise, the following
guideline will prevail :.
Page 6
Accounting Procedures
1 . Warrants will be processed for approval at a regular City
Council meeting.
2 . All requests for payment must be received by the City
Manager ' s Office by the Wednesday prior to the City Council
meeting to be included for payment on the Warrant Register.
3 . Following City Council approval , checks shall be issued
within four business days, unless other circumstances
necessitate additional time .
E . The request for payment must be coded by the City Manager' s
Office prior to placement on the warrant register . The coding is
completed by the -Finance Technician and reviewed by the Assistant
to the City Manager, and includes the account number to be
charged. The Assistant to the City Manager shall initial the
approval of the payment prior to placement on the warrant
register.
F. Following approval by the City Council , the Deputy City Clerk (or
other employee as designated by the City Manager) , shall prepare
the checks for payment.
1 . The checks are then signed by the Mayor and City Clerk, or
the Vice Mayor, if either the Mayor or City Clerk are not
available .
2 . Pursuant to instructions given by the City Manager, the
checks are then released.
G. The checks are entered into the Cash Disbursements Journal
through the use of a "one-write system" . This allows the check
number, date, payee, and amount to be recorded as the checks are
written. The Cash Disbursements Journal serves as a record of
all disbursements made . (See IV. B. of these Accounting
Procedures Cash Disbursement Journal )
H. If a payment must be made and (1 ) it is necessary to avoid
delinquency, or ( 2 ) it is being made pursuant to a contract
previously authorized by the City Council , the check may be
pre-issued. On the warrant register, a pre-issued check shall be
denoted as such. Approval of a pre-issued request shall be at
the discretion of the City Manager and signators on the check.
Page 7
Accounting Procedures
III . ACCOUNTS RECEIVABLE
Receivables are funds received by the City for goods , services ,
permits, deposits, etc .
A. Receipt of funds at City Offices
When funds are received at City Offices, the following procedure
shall be followed:
1 . A receipt form should be completed identifying the
individual submitting the payment and its purpose .
2 . The cash or check should then be taken to the Deputy City
Clerk who will generate a receipt . The receipt shall
identify the name of the individual or company making the
payment, the date received, the purpose of the payment, the
initials of the person recording the receipt of funds , and
whether the payment is in the form of cash or a check. With
the use of the "one-write system" , this information is
automatically duplicated onto sheets which become the
Receipt Journal .
3 . . If payment is in the form of a check, the check should be
stamped for deposit into the City ' s General Checking
Account.
4 . The original receipt shall be returned to the payee and the
copy will be retained for entry into the City ' s accounting
system.
5 . If a deposit is being made electronically from an outside
source into the City ' s account, a receipt shall be generated
by the Deputy City Clerk on the day in which the funds are
deposited in the City' s bank account .
B. Deposits
The deposit of City funds into a banking institution shall be
completed in a timely manner . The Deputy City Clerk shall
complete the deposit on a periodic basis . Receipts shall not be
held for more than two ( 2 ) business days prior to their deposit.
1 . The deposits are then reviewed by the City Manager and the
amount deposited is recorded in order to appropriately track
cash flow. The Finance Technician shall make certain that
receipts are issued in sequence .
2 . The receipts are reviewed by the Administrative Assistant to
the City Manager to assure that the description is adequate
to identify the proper revenue or deposit account .
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Accounting Procedures
3 . On a monthly basis, the receipts are provided to the City ' s
Computer Manager for posting in the City' s detail accounting
ledger .
4 . The receipts are then filed by revenue type and maintained
with other financial records .
C . Receipt of Funds at Recreation Department
Funds collected by the Recreation" Department at their remote
location shall be recorded as follows :
1 . A sequentially numbered recreation receipt. shall be issued
by the person receiving any funds collected. The Recreation
Department shall maintain all unused class receipts or
voided receipts on file for a period of eighteen (18 ) months
or until the City ' s annual audit is complete for the fiscal
year in which the class was offered.
2 . A recap sheet of monies collected shall have receipts
attached and identify the source of the payment and its
purpose . This shall be completed by the Recreation
Secretary .
3 . Checks received for payment shall be stamped for deposit
only into the City ' s General Fund.
4 . When the funds received are for Recreation Programs, the
Recreation Secretary shall complete a deposit ticket . This
deposit ticket shall list checks by bank number and cash,
and shall represent a deposit into the City ' s General Fund.
This process will allow the Deputy City Clerk to make a
single entry into the Cash Receipts Journal for several
recreation transactions related to recreation programs .
5 . The Finance Technician will periodically sample Recreation
Dept receipt files for accuracy .
6 . The funds should then be transmitted to the Deputy City
Clerk, who will record them and process them pursuant to
Section B above .
D . Billing for Services
On occasion it shall be necessary for the City to invoice
individuals and companies for services rendered by the City; or
for damage to City property . In cases where a permit fee or
deposit is required, the payment shall be made prior to the
issuance of said permit or other City action. The ability to
invoice shall not apply to these cases .
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Accounting Procedures
1 . When an individual or company owes the City of Dublin for
services rendered, an invoice shall be generated from the
City Manager ' s Office by the Finance Technician.
2 . Each invoice shall be sequentially numbered and contain the
name , address , amount due to City, and goods or services for
which the individual is being billed.
3 . A request to invoice an individual or company shall be
completed on a form designated by the City Manager .
4 . Invoices shall be signed by the Administrative Assistant to
the City Manager or the City Manager .
5 . If payment on an invoice is not received after 30 days , a
delinquent notice shall be mailed requesting immediate
payment. The notice shall be generated by the City
Manager ' s Office :by the Finance Technician .
6 . When payment is received, a copy of the invoice shall be
attached to the receipt and it is then processed.
IV. PAYROLL
A. Pay rates shall be within the parameters approved by the City
Council .
B. A .Personnel Action Form shall be completed when an employee is
hired, or receives a change in pay rate . The form shall include
the following :
1 . Name of Employee
2 . Job Classification
3 . Salary Rate
4 . Effective Date of Personnel Action
5 . The signature of the Department Head
6 . The signature of the City Manager
C . All Personnel Action Forms shall not be approved until signed by
the City Manager. In the case of a new employee, the form shall
have all authorizing signatures prior to the time that the
individual begins work.
D . Once a Personnel Action Form is completed, including all
signatures , one copy is returned to the employee, one copy is
filed with the payroll summary, to be routed to the Computer
Manager for processing, returned to the Deputy City Clerk for
check preparation, and the Finance Technician for the retirement
and disability reports . The original is maintained in the
employee ' s personnel file.
E . Pay dates shall be as established by the City Council through
resolution. The pay dates are presently on a bi-weekly basis .
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Accounting Procedures
F. At the close of a pay period, time cards shall be- submitted to
the City Manager ' s Office. The time card shall contain the
employee ' s signature and the Department Head' s signature. It
shall denote the number of hours worked each day.
G. The number of hours worked including overtime, when applicable,
shall be transmitted to the Computer Manager for processing.
Also, any personnel actions forms initiating a change or changes
in withholding status shall be transmitted.
H. The Computer Manager shall generate a payroll summary which
indicates :
1 . Employee Name
2 . Payroll Period
3 . Regular Earnings
4 . Overtime Earnings
5 . Vacation Pay
6 . Total Pay
7 . Deductions - Federal Tax, State Tax, PERS, and any other
authorized deductions
8 . Net Pay
This report shall be provided to the Deputy City Clerk in
sufficient time to comply with the pay period designated by the
City Council .
I . Based on the .Summary Report, the Deputy City Clerk shall produce
the payroll checks in the amount denoted as net pay . The checks
are written on a "one-write system" which will automatically
record payment information on a sheet to be utilized as a Payroll
Journal . This will designate the check number, amount of
payment, date of payment, and employee name .
J. All payroll checks must then be signed by the City Manager .
K. The payroll amounts paid are included on the warrant register at
the first City Council meeting following their issuance .
L . The Computer Manager shall prepare all payroll reports required
by law for state and federal income tax purposes and route them
to the Deputy City Clerk.
M. It is the responsibility of the Deputy City Clerk to file all
reports and payments required by law for state and federal income
tax purposes . This shall include the filing of quarterly reports
regarding tax deposits and the filing of W-2 reports at the end
of each calendar year .
N. It is the responsibility of the Finance Technician to file
reports along with the appropriate payments approved by the City
Council to the Public Employees ' Retirement System.
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Accounting Procedures
V. INVESTMENTS
The City Manager, who also acts as the City ' s Chief Fiscal Officer and
Treasurer, has the responsibility for investing cash on hand. This shall
be conducted in a responsible manner which will not only provide sufficient
cash to pay for on-going City operations and authorized expenditures, but
also maximize the City ' s return on investments .
A. The City Manager shall invest funds in instruments having
different dates of maturity to assure that as funds are needed,
they are accessible without penalty .
B. The funds shall. b_e placed in the State of California Local Agency
Investment Funds or in instruments placed with a financial
institution. Those funds placed with financial institutions
shall be placed in instruments permitted by state law. The City
Manager shall arrange : for the wire transfer of funds from the
City ' s banking institution to the appropriate investment
institution .
C . On behalf of the City Manager, the Finance Technician shall
maintain an investment log noting the following :
1 . Name and address of institution
2 . Amount of funds on deposit
3 . Account number
4 . Date deposit was initiated
5 . Maturity date
6 . Percentage of interest earned
D . For those investments where the City receives a negotiable
certificate, that certificate shall be kept under lock and key.
E . The interest received on all investments is recorded in the Cash
Receipts Journal and posted to the General Ledger accordingly .
F. Following the close of the fiscal year, the Finance Technician
shall complete an analysis to spread the annual interest earned
over the different fund types . Each fund shall be credited with
a proportionate amount of the interest earnings based on the
average months balance formula.
G. In accordance with state law, the City Manager shall prepare and
submit to the City Council, the investment policy on an annual
basis . The City Manager also shall prepare an investment report
and submit that report to the City Council monthly .
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Accounting Procedures
#1 .' FINANCE �TECHNICIAN
CITY OF DUBLIN #2. .ASST.. CITY MGR.
ACCOUNTING RECORDS #3.`DEPUTY '.CITY CLERK
#4* -COMPUTER MGR.
#5. CITY MANAGER
16. OTHER .
#1 #2 #3 #4 #5 #
VI . ACCOUNTING RECORDS -. PREPARATION & POSTING
A.. Cash Receipts Records
1. To be posted daily as money is received.
2. Assign revenue account and total by page and accumulative
3. If a single payment consists of amounts to be applied to more
than one account, the notation shall indicate amount and the
account number.
4. Verify accuracy of revenue accounts, sample basis.
5. Generally routed to Computer Manager on a scheduled day. before
City Council meetings.
6. ' The Computer Manager shall record on a computer file, the
receipt number, date received, revenue account and amount.to be
applied to the account.
a. The City will prepare a schedule for routing work to and
from the computer manager.
b. The computer file shall be designed in a manner which
will allow retrieval of the information in receipt number
sequence, and grouping of those receipts coded to the same
account.
C. At the end of each month the grand total of cash receipts
for the month, as generated by the computer output, must
equal the total of all of the individual journal page .
subtotals. This check should be verified by the Computer
Manager.
d. There shall not be handwritten entries on the computer
output.
e. At the end of each month the Computer Manager shall generate
a report indicating a listing of all receipts in order of
receipt number, specifying the date, amount and account
number. Also, the report shall contain a summary by account
number. The report shall identify subtotals representing
the amount to be posted to each revenue account.
7. Return monthly computer report to Finance Technician.
a. The subtotals shall be posted to the General Ledger by the
Finance Technician.
r
Paae 13
#1. FINANCE TECHNICIAN
CITY OF DUBLIN #2• ASST. CITY MGR.
ACCOUNTING RECORDS #3. DEPUTY CITY CLERK
.,#4. COMPUTER MGR.
#5. CITY MANAGER
#6. -OTHER
#1 #2 #3 #4 #5
b.,: The Finance-Technician shall_.stamp an entry noting that the
amount has been -posted to the General Ledger. This notation
shall be made next to the number on the computer report.
C. The monthly computer reports shall be kept in a hard backed
binder and shall be kept in.a secured place in-the City
Manager's office..
B. Cash Disbursements Journal
1. Invoices and accompanying documents will be prepared for payment
twice a month. Procedures to process payment are as follows:
a. All invoices will be directed to the Finance Technician.
b. The invoice will be coded by Finance with a claim form
attached.
C. The invoice with a claim form will than be directed to the
Department Head for approval.
d. The claim is than returned to Finance. This must be done
prior to 12 noon on the Tuesday prior to the City Council
meeting for inclusion on the Register of Demand-.
e. All claims must be approved by the City Manager's office
before placed on the Register of Demand.
f. Department Heads should review the invoice and make any
corrections prior to signing the claim form. If necessary
provide a brief explanation of modifications.
2. Prepare Register of Demands.
3. Approve Register of Demands.
4. Prepare checks, route for signatures, mail.
5. Route copy of checks to Computer Manager to create a computer .
file. A schedule of routing to and from Computer Manager will be
prepared by the City.
6. The computer file shall contain the name of payee, check number,
date paid, amount paid and expenditure account to be charged. If
a payment is charged to more than one account, the listing shall
identify the information for each portion of the check on a
separate line.
-14-
#1 . FINANCE TECHNICIAN
CITY OF DUBLIN #2. ASST. . CITY MGR. .
ACCOUNTING RECORDS #3. DEPUTY CITY CLERK
#4. COMPUTER MGR.
#5. CITY MANAGER
#6. OTHER .
#1 #2 #3 #4 #5 # (G
s nali- m aesignect in a manner wnicn wi a ow
retrieval of the information in check order sequence .and a
grouping of all information related to payments charged to the.
. same account.
8. The Computer Manager .shall generate a report displaying the
information as described in number (7) above. The report shall
identify a subtotal of the amount of charges to each account
number. At the end of each month an accumulative total for the
month will be prepared.
9. Computer reports will- be returned to the Finance Technician.
10. The subtotal of charges to each account shall be posted to the
General Ledger by the Finance Technician.
a. The Finance Technician shall stamp an entry on the
computer report noting the amount has been .posted to the
General Ledger and his/her initials_ next to the stamped
notation.
b. The monthly computer reports identifying disbursements shall
be kept in a hard backed binder and shall be kept in a
secure place in the City Manager's Office.
C. Payroll
On a monthly basis, the Computer Manager shall provide a surmk ry of
payroll activity by account number and type of payment (i.e., full
time salaries, part time salaries, overtime, etc. )
1. The sunmkary. shall correspond to the subtotals contained in the
semimonthly payroll reports, which provide the information for
generating individual paychecks. .
2. The monthly summary shall designate the expenditure account which
will be charged.
3. The amount to be posted to the General Ledger for the month shall
be noted on the computer summary and routed to the Finance
Technician.
4. The Finance Technician will post the payroll to the General
Ledger.
a. The Finance Technician shall stamp a notation next to the.
entry when it is posted to the General Ledger.
b. The Finance Technician shall initial this notation when it
is made.
-15-
#1.. FINANCE TECHNICIAN
#2. ASST. CITY MGR. _
CITY OF DUBLIN
#3. DEPUTY CITY CLERK
ACCOUNTING RECORDS
#4. COMPUTER MGR.
-#5. CITY MANAGER
#6:' OTHER .
#1 #2 #3 #4 _#5
C. The summary reports used to post to the General Ledger shall
be kept in a hard backed binder in a secure place in the
City Manager.'s office.
D. Deposits for Service Accounts
In accordance with the City's adopted fee for service schedules, the
City will,.-from time to time, collect fees for services rendered.
These fees are considered as deposits; therefore, it is necessary to
track relevant expenses incurred by the City against such deposit.
The City Manager's office will reconcile these deposits in such a way
that the individual submitting the deposit is provided notification
regarding the status of the deposit, once all services related to the
deposit have been completed. The following procedures will be used
for the purpose of informally identifying projects that involve the
deposits received by the City from which payments will be made.
Operating departments: Planning and Engineering
Forms: Planning form #83-022, various receipt forms, and
Completion Notice.
1. When a new project requiring a deposit from others is
identified, it will be described in brief by the Planning
department on form .#83-022 (exhibit attached) .
2. Department will phone/see Finance who will assign an accounting
control number (32000 sequence) which will be used as reference
. in all future project transactions.
3. The Finance Technician will maintain a log of all control
numbers assigned. A copy of form #83-022 with control number '
will be routed to the City Engineer and Finance Technician. (The
control number and project description must be used on all time
sheets and invoices to appropriately identify engineering V
charges) .
4. Planning will also record the accounting control number in their
-P.A. log.
5. A receipt will be prepared to record deposits received and the
original of form #83-022 will be attached. M—LL
6. Finance will set up a control page in the subledgers using the
description from form #83-022.
7. It is important that the Finance control number be used on all
various forms of original entry (i.e., time sheets, invoices,
engineering charges) so that the costs will be recorded in the
subledgers.
-16-
. � r
#1. FINANCE TECHNICIAN
CITY OF DUBLIN #2. ASST. CITY MGR.
ACCOUNTING RECORDS #3. DEPUTY CITY CLERK
#4. COMPUTER MGR.
#5. CITY MANAGER
#6. OTHER
#1 1#2 #3 #4 #S #
inance w1ii apply aii ind-irect costs and post costs to ri.va e
Development subledgers monthly.
9. -The Finance Technician will once a year calculate indirect cost
percentages used in item #8.
10. When deposits have been disbursed to a level of 90%, Finance will
notify operating departments so that a new deposit estimate can
be made if necessary, Finance will bill the depositor.
11. If an account is over expended, Finance will follow same
procedures as #10 above.-
12. When project is completed the operating department(s) will notify
Finance with a project completion notice.
13. When all project costs have been recorded, Finance will notify
the depositor by letter so that a refund can be made.
E. Journal Vouchers
Journal Vouchers are necessary to make changes in the City's General
Ledger when the transfer of monies between funds or accounts is
required.
The City Manager's Office shall designate forms to be utilized for the
preparation of Journal Vouchers.
1. The form shall designate a description of the change and the
account numbers affected. Also, a debit and credit column shall
be included to reflect the adjusting entries.
2. All Journal Vouchers shall be maintained in a hard backed binder
in a secure place designated by the City Manager.
3. Each Journal Voucher shall be sequentially numbered with the
first four numbers identifying the fiscal year.
4. The form shall contain adequate space for a written justifi-
cation of the change to be entered.
5. All Journal Vouchers must be authorized by the City Manager or
Assistant to the City Manager and the form shall be initialed in
the appropriate place.
A
6. All Journal Vouchers will be routed to the Finance Technician for
numbering and routing to the Computer Manager twice a month with
the Cash Disbursement Journal to be posted to the computer record
7. The Computer Manager shall generate a report once a month
listing all journal entries in detail, specifying the date, JV #,
amount and Account #.
-17-
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#1. FINANCE TECHNICIAN
CITY OF DUBLIN #2. ASST. :CITY MGR. _
.ACCOUNTING RECORDS #3. .DEPUTY CITY CLERK
#4. COMPUTER MGR.
#5. CITY MANAGER
#6.-OTHER
#1 #2 #3 #4 #5
8. Journal Vouchers shall be returned to the Finance Technician.
9. The Finance Technician will post entries from the Journal
Voucher in the General Ledger. The Finance Technician shall
initial the Journal Voucher form and file the forms in the City
Manager's office.
F. Changes to Chart of Accounts
All additions and deletions made to-the Charts of Funds, Revenue,
Expenditures shall be reported
1. By memo and routed to all Finance personnel.
G. Budget Change
Budget changes provide a method for amending the City's annual
budget which has been adopted by the City Council. Budget
changes may provide for an additional appropriation of funds to a
budget account or a transfer within or between budget accounts in
the manner identified below.
1. Budget changes shall .be made on a form designated by the City
Manager. The forms shall be sequentially numbered.
2. The City Manager is authorized to transfer between detail
budget accounts within a department activity according to
operational need. Transfers may not generate an amount that
exceeds the department activity total approved by the City
Council.
-F
3. All other budget changes shall be authorized by the City
Council through a majority vote.
4. The Budget Change Form shall contain written justification for
the change. '
5. If the change is made under the authority granted to the City
Manager, his/her approval shall be initialed on the form. If the
change is authorized by the City Council, the Mayor shall initial
the form.
6. After the change has been duly approved, the Computer Manager
shall make the appropriate posting to the accounting records, and
shall input the change to the next monthly financial report. The
Budget Change Form should then be stamped and initialed by the
Computer Manager to denote the posting.
7. The Budget Change Forms shall be maintained in a secure place
designated by the City Manager.
-18-
k
C_-, t:>..:ii�
#1. FINANCE TECHNICIAN
CITY OF DUBLIN #2. ASST. CITY MGR.
ACCOUNTING RECORDS #3. DEPUTY CITY CLERK
#4. COMPUTER MGR.
_ #5. CITY MANAGER
#6. OTHER
#1 #2. #3 #4 #5 #6
H. Monthly Financial Reports
Once the Payroll, Cash Disbursement, Cash Receipt, Journals
have been posted to the General Ledger, the Computer Manager
shall generate a Financial Report.
1. This report shall include a statement of revenues and expendi-
tures by fund and account- types and a balance sheet for all
funds.
2. The report shall be prepared in a format specified by the City
Manager.
3. The report shall be reviewed: by the City Manager's office and
placed on the consent calendar for City Council approval at a
,regular City Council meeting
I. Internal Service Fund - Operations and Equipment Replacement
An Internal Service Fund is established to account for the
operation and replacement of motorized equipment and major office
equipment (word processors, copy machines and computers) . Two
major purposes of this fund are:
1. To reflect more accurately the annual cost of major capital
equipment by allocating costs of equipment by use of monthly
service charges.
2. To avoid a major money outlay when large equipment is replaced by
establishing replacement reserves.
Procedure:
1. The Finance Technician will prepare a journal charging user
departments monthly or annual rental rates established on
the rental rate chart.
2. Monthly rental usage will be developed as follows:
a. Police vehicles - monthly mileage reports submitted by
the Police Department.
b. All other equipment usage percentages will be
developed by the Finance Technician based on accounting
and equipment time us age records.
3. Equipment cost and income records will be maintained by the
Finance Technician on each piece of equipment, in detail,
including:
-19-
e
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#1. FINANCE TECHNICIAN
CITY OF DUBLIN #2. ASST. CITY MGR.
ACCOUNTING RECORDS #3. DEPUTY CITY CLERK
#4. COMPUTER MGR.
#S. CITY MANAGER
#6. OTHER
#1 #2 #3 #4 #S #6
a. Depreciation
b. Replacement Increment
c. Operating cost
d. Total cost
e. Total income
4. The Finance Technician will annually establish a cash
reserve for:
a. Depreciation
b. Replacement increment
5. The Finance Technician will .annually review actual costs -for
the previous calendar year for the purpose of adjusting the
rental rate chart.
VII. BANK RECONCILIATION
The City presently maintains four bank accounts. The accounts are used for:
. 1. General Checking
2. Payroll
3. Police Investigation
4. Insurance Liability
These bank accounts shall be reconciled as statements are received. The
Finance Technician shall complete the reconciliation on the bank statement.
A. The reconciliation shall identify the following components:
1. Deposits made following the preparation of the statement
2. Outstanding checks
3. Balance as noted on the statement
4. Adjusted balance - (Accounting for "1" through "4" above)
B. After the reconciliation has been prepared, the City Manager
shall review the information.
t
-20- i
t
i
CHARLES V. 'BIRD
FINANCIAL MANAGEMENT SERVICES
3308 Kings Point Drive
Modesto, CA 95355 .
(209) 529-1307
April 7, 1986
Mr. Richard Ambrose
City Manager
City of Dublin
Dublin, CA
SUBJECT: Authority to adjust budget appropriations
between detail budget accounts within
department activity
The current procedures relating to budget preparation, adoption, and re-
vision are substantially standard for California cities. There are trends
that have become evident during recent years which you may want to consid-
er relating to appropriation transfers.
The present budget process involves preparing operating budget estimates
starting as early as March and April, in some cases as much as 15 Tanths
before budget expenditures will occur. Because of the many variations in
operating conditions that may occur during an operating year, it is dif-
ficult to predict without exception specific amounts in each detailed
budget item. Our fluctuating economy, varying weather conditions, petro-
lem price changes, even insect.infestations are just som° of the factors
that can effect the cost of work performed or vary the schedule of when
work will be completed.
Presently, procedures have been established which authorize the City Manager
to transfer up to $2,500.00 between budget line items within a departmnt
activity. Adjustments greater than that amount must be authorized by the
City Council.
There has been a definite trend to authorize the City Manager to make budget
adjustments as needed between detail accounts within a department, as long
as the accumulative total does not exceed the total departmental budget auth-
orized by the City Council. The departmental total can only be changed by
Council action. I recommend that the procedures be changed to give the Mana-
ger authority to transfer appropriated amounts between detail budget accounts
within a department.
The advantages of this recomTEndation are to: 1) allow the staff greater
flexibility in proceeding with projects as soon as working conditions change,
. Richard Anbrose
April 7, 1986
page Two
2) reduce the almunt
for a scheduled Council ��and/ 3) speed UIP the
rather than waiting of the year. Because of
f routine budget detail fit report at the close year that exceed the
° lete the a riate fiscal ye
ability to COQ d to the ap rI to make a special re'
t are accrue in the past, necessary previous fiscal
accounts that t it has been, is for the
$2,500.00 lim? sting budget adjustmen
port, to the Council r�'�
year. Council would retain sufficient
ded prpCedure chariger the rro is could not be
Under this recom� tat budgeted the de-
because total depa�o cil. Adjus�nts within
budget control► a royal of the recorded on established
exceeded without thee City Manager would
partment processed by
forms subject to review and audit.
Sincerely, �
A:1���-��i� �
Charles V. Bird
CVB:ks
RESOLUTION NO. - 86
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
_ PROVIDING FOR AUTHORIZED SIGNATURES
ON WARRANTS AND CHECKS
WHEREAS, on March 15, 1982 , the City Council adopted
Resolution No. 14-82 which designated the Mayor and the .City Clerk
as the signatories on all checks drawn upon the City' s bank,
except payroll checks which the City Clerk is authorized to sign;
and
WHEREAS, it has been determined that occasionally one of
the signators may not be available to sign checks, and therefore,
it would benefit the financial administration of the City to
designate an additional signatory to sign checks in the absence of
either the Mayor or the City Clerk.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Dublin hereby designates the Vice Mayor as an
additional signator to sign checks drawn upon the City ' s bank,
with the exception of payroll checks, in the absence of the Mayor
or the City Clerk.
PASSED, APPROVED AND ADOPTED this 28th day of April ,
1986 .
AYES : '
NOES :
ABSENT:
Mayor
ATTEST:
City Clerk
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RESOLUTION NO. - 86
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AMENDING THE CLASSIFICATION PLAN
WHEREAS, in accordance with the Personnel System Rules ,
the City Council adopted Resolution No. 30-84 and subsequent
amendments which comprise the Classification Plan; and
WHEREAS, the growth of the City ' s internal staff and
individual responsibilities has necessitated a reorganization of
the Finance Department .
NOW, THEREFORE, BE IT RESOLVED that Resolution No. 30-84
and subsequent amendments shall be further amended to include the
following classification and attached job description (Exhibit A) .
BE IT FURTHER RESOLVED that this document shall become a
part of the official classification. plan for the City of Dublin :
Administrative Services/Finance Director Exhibit A
PASSED, APPROVED AND ADOPTED this 28th day of April,
1986 .
AYES :
NOES :
ABSENT:
Mayor
ATTEST:
City Clerk
ADMINISTRATIVE SERVICES/FINANCE DIRECTOR
DEFINITION
The Administrative Services/Finance Director is a Department Head
who is under the administrative direction of the City Manager.
This position is responsible for supervising the activities of
the Administrative Services Department, including but not limited
to financial administration, building management and data
processing. The Administrative Services/Finance Director also
performs the responsibilities as City Treasurer and handles other
special projects assigned by the City Manager.
EXAMPLE OF DUTIES
Supervises all financial activities including: general
accounting, taxes and licenses, purchasing, budget and capital
improvement administration, treasury and cash management; assist
the City Manager in the preparation of the budget and capital
improvement program; manages building and equipment activities ;
assists in the development of a data processing system and
supervises data processing activities on an ongoing basis ;
interface and provide support to other departments on an as-
needed basis ; supervise, train and evaluate departmental
employees ; interface with vendors, officials from other
government agencies, the independent auditor, municipal officials
and local citizens ; perform other related duties as required.
QUALIFICATIONS
Education and Experience
A . Bachelor ' s Degree from an accredited college or university
majoring in Business , Finance, Accounting or a related field. A
graduate degree is desirable.
A minimum of five ( 5 ) years of full-time increasingly responsible
experience in municipal finance, which preferably includes three
(3 ) years of management level experience .
Knowledge and Abilities
Ability to plan, organize and direct the affairs of the
department; a thorough understanding of generally accepted
accounting principles as they apply to the public sector; a
thorough understanding of utilizing and administering financing
techniques, including but not limited to, assessment districts ,
certificates of participation, bonds , leasing, etc . ; ability to
analyze financial and other data, and to prepare clear and
accurate financial or narrative reports ; thorough knowledge of
the principles and practices of supervision; ability to read and
interpret laws and ordinances; ability to deal effectively with
people in coordinating activities and resolving problems ; and a
solid understanding of data processing systems .
Licenses
Requires a valid California Class III driver ' s license to be
secured prior to employment and maintained current as a condition
of employment.
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RESOLUTION NO. - 86
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********************
AMENDING THE
SALARY & BENEFIT PLAN
WHEREAS, in accordance with the Personnel System Rules,
the City Council adopted Resolution No. 99-85 Establishing a
Salary and Benefit Plan; and
WHEREAS, the reorganization of the Finance Department
resulted in an additional classification; and
WHEREAS, the Personnel System Rules require the City
Council to establish salary ranges for all City of Dublin
employees .
NOW, THEREFORE, BE IT RESOLVED that Article I : Section A
of Resolution No. 99-85 relating to salary provisions of full-time
employees shall be amended to include the following pay range for
the specified classification:
Monthly Monthly
Minimum Maximum
Administrative Services/Finance Director * $3 , 125 $3, 925
* Denotes Department Head Designation
PASSED, APPROVED AND ADOPTED this 28th day of April,
1986 .
AYES :
NOES :
ABSENT:
Mayor
ATTEST:
City Clerk