HomeMy WebLinkAboutItem 4.03 Banking Services Auth Sign (2)
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CITY CLERK
File # DBJ[2J[Q-[L][Q]
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AGENDA STATEMENT
CITY COUNClL MEETING DATE: (May 18,1999)
SUBJECT:
Authorized Signatures For Banking Services
rIv Report Prepared by Paul Rankin, Assistant City Manager
ATTACHMENTS:
1.
Resolution 4-88 Authorizing the Use Of A Facsimile Signature For
The Mayor's Signature On Instnunents Of Payment
2.
Proposed Resolution - Adopting A Listing of Officials and
Procedures For Payments Requiring A Signature
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RECOMMENDATION:' .fJ\J
Adopt the proposed resolution.
FINANCIAL STATEMENT:
None
DESCRIPTION: In 1988, the City Council adopted a resolution which authorized the use of a
facsimile signature and designated City Officials authorized to execute checks on behalf ofthe
City.(Attachment 1) With the upcoming temporary vacancy in the position serving as the City Treasurer,
it is appropriate to adopt an amended resolution. Although temporary Contract Personnel will be
providing interim personnel services it is not desirable to add a contractor to the Bank signature cards.
. Staff also propose minor modifications to update the resolution to reflect the current practice.
The current process requires two signatures on all accounts payable checks issued by the City. One
signature is the facsimile signature of the Mayor and the second signature is a manual signature. As a
matter of practice the manual signature has typically been the City Treasurer (Assistant City Manager /
Administrative Services Director). The Deputy City Treasurer (City Manager) is also a designated signer
on the account and has signed checks in the absence of the City Treasurer. The resolution also authorizes
the Vice Mayor to serve as the second signer. The current process for all payroll checks is to include a
single signature of either the City Treasurer or the Deputy City Treasurer.
In order to address the staff vacancy and to address future situations where due to absences the City
Treasurer and Deputy City Treasurer are not available, Staff recommend that an amended resolution be
adopted adding to Section 1 the position of City Clerk as an authorized signature. The change proposed in
Attachment 2 will allow the City to maintain internal controls.
The Finance Manager position, which is not a signer on the account, maintains responsibility for
reviewing the preparation of all checks as well as reviewing the payment of all checks by the Bank. In
recent years the Finance Department has obtained special services from the City's financial institution
which allows for the review of checks submitted before they are paid. This service provides an additional
layer of internal control. Staff believes that the system will both maintain adequate checks and balances
and provide for efficient operations. This change will provide flexibility and distribute the responsibility
.to lessen the impact of the upcoming vacancy.
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ITEM NO.
4.1
COPIES TO:
As a practical matter since the Facsimile Signature has been implemented, the City has not requir~d the \
use of the Vice Mayor signature. Although the current Resolution contains the Vice Mayor as an account
signer, this dates back to when all signatures were manual and one elected official plus one City Staff
member would sign all checks. At that time, due to vacations and other absences it was necessary to have
a second elected official listed among the authorized signers. Based upon current practice the proposed
resolution (Attachment 2) no longer makes reference to the Vice Mayor in Section 1.
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Staff would recommend that the City Council adopt the proposed resolution (Attachment 2) authorizing
these changes.
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RESOLUTION NO. 4 - 88
^ RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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..... AUTHORI ZING THE USE OF A FACSIMILE SIGNATURE
FOR THE MAYOR'S SIGNATURE ON
INSTRUMENTS OF PAYMENT UPON THE TREASURER OF THE CITY OF DUBLIN
WHEREAS, on November 24, 1986, the City Council adopted
Resolution No. 136-86, which provided authorization for the
signatures on instruments of payment; and
WHEREAS, the City Council is desirous of changing this
procedure for the sake of operational efficiency due to the
increased number of financial transactions and to continue to
maintain good principles of internal control.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Dublin does hereby adopt the following procedures for
authorization signatures on instruments of payment:
Section 1. Facsimile si natures of
Payment. Except as prov~ e ~n Sect~on 2, a ~nstruments of
payment, as defined in Government Code Section SSOO(b), of the
City of Dublin may be signed by the facsimile signature of the
Mayor, provided that there shall also be appended one manual
signature from either: Vice Mayor, Deputy City Treasurer or City
Treasurer.
Section 2. Signature on Payroll Checks. All payroll
checks drawn upon the Treasurer of the C~ty of Dublin shall be
signed by one manual signature from either the Deputy City
Treasurer or City Treasurer.
Section 3.
The Hayor
Section 4. Security of the Ha or's Facsimile
Stamp. The facs~m~le S~gnature 0 the Mayor sha only
for those instruments of payment that are identified in this
Resolution. The facsimile stamp of the Hayor's signature shall be
secured in the vault of the City Clerk when not in use. The
Finance Department shall maintain a log in which the date, check
number, payee, and amount of the check is documented for each
instrument of payment upon which the facsimile is used for
endorsement.
Section 5. The City Manager is hereby directed to
revise the City's Accounting Procedures in accordance with this
Resolution. Said procedures will become effective on the date
that the Mayor's facsimile signature is received.
PASSED, APPROVED AND ADOPTED this 11th day of January,
1988.
AYES:
Councilmembers Hegarty, Snyder, Vonheeder and
Mayor Jeffery
NOES:
Councilmember Moffatt
ABSENT:
None
~rJo~
ATTEST' ~
~,-iLC..
C~ty'C rk
ATTACHMENT 1
RESOLUTION NO. - 99
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
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RESCINDING RESOLUTION NO. 4-88
AND ADOPTING A LISTING OF CITY OFFICIALS AND PROCEDURES
FOR THE PROCESSING OF CITY PAYMENTS REQUIRING A SIGNATURE
WHEREAS, on January 11, 1988 the City Council adopted Resolution No. 4-88 which identified
the signature process to be used for City payments; and
WHEREAS, with the growth offinancial transactions handled by the City it is appropriate to
consider amendments to the procedures currently used; and
WHEREAS, financial institutions have implemented new systems which improve the agency ability
to monitor payments made against City accounts; and
WHEREAS, changes in the can be accommodated while still maintaining adequate internal
controls.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby rescind Resolution
No. 4-88.
BE IT FURTHER RESOLVED that the City Council does hereby adopt the following procedures .
for authorization signatures on instruments of payment which require such signatures:
Section 1. Facsimile Signatures on Instruments of Payment
Except as provided for in Section 2 below, all instruments of payment as defined in Government Code
Section 5500 (b) issued by the City of Dublin and requiring a signature, may be signed by the facsimile
signature of the Mayor. Provided that on such payments there shall also be appended one manual signature
from the: City Treasurer, or Deputy City Treasurer, or City Clerk.
Section 2. Signature on Payroll Checks
All payroll checks drawn upon a City of Dublin account shall be signed by one manual signature from the
City Treasurer, or Deputy Treasurer, or City Clerk.
Section 3. State Certification of Facsimile Signature
In accordance with the requirements of Section 5501 of the Government Code a manual signature shall be
filed with the Secretary of State.
Section 4. Implementation Of Procedures Necessary For Internal Control
The facsimile signature shall be used for those instruments of payment identified in this resolution. The
City Treasurer shall prepare and implement written procedures which provide internal control and to the
extent possible a segregation of duties. The facsimile signature shall be secured by a City employee who is
not regularly a City Official designated as one of the manual signatures. Records shall be maintained .
identifying checks issued with the facsimile signature, including the date of issuance, amount of payment,
payee, and the check number.
ATTACHMENT 2
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PASSED, APPROVED AND ADOPTED this 18th day of May, 1999.
AYES:
NOES:
ABSENT:
ABSTAIN:
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Mayor
ATTEST:
City Clerk
K2/G/5-1S.99/reso-signcks
ATTACHMENT 2