HomeMy Public PortalAbout2012.009 (01-03-12)RESOLUTION NO. 2012.009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING
RESOLUTION NO. 2010.228 ADOPTING A CHECK SIGNING POLICY FOR THE
CITY OF LYNWOOD AND ITS RELATED AGENCIES
WHEREAS, on October 19, 2010, the City of Lynwood adopted Resolution No.
2010.228 establishing a City -wide policy describing the specific procedures for the
issuance of payments from the accounts of the City or Lynwood Redevelopment
Agency; and
WHEREAS, the City Council's goal is to establish clear criteria for payments to
be approved by the designated City and Agency officials, while assuring adequate
safeguards are in place to guard against fraud, mistake or misappropriation of funds;
and
WHEREAS, the City Council has evaluated the effectiveness of the adopted
Check Signing Policy and wishes to add additional safeguards, while providing an
efficient and clear process for the approval of checks; and
WHEREAS, the City Council wishes to adopt the Amended and Restated Check
Signing Policy attached hereto as Attachment No. 1 as the procedure applicable to the
approval of checks from the City and its related agencies and that such Check Signing
Policy shall amend Resolution 2010.228 and supersede any other policy addressing the
method for the approval or signing of checks, whether adopted by the City or any of its
departments; and
WHEREAS, the City Council hereby finds that the attached Amended and
Restated Check Signing Policy is consistent with the provisions of State Law.
NOW, THEREFORE, BE IT RESOLVED, THAT THE CITY COUNCIL OF THE
CITY OF LYNWOOD HEREBY FINDS, ORDERS AND RESOLVES AS FOLLOWS:
Section 1. That the City Council hereby adopts the policy attached hereto as
Attachment No. 1, and incorporated herein by this reference, as if fully set forth, entitled
the "Amended and Restated City of Lynwood Check Signing Policy."
Section 2. This Resolution supersedes all prior resolutions or other Council or
individual City Department actions or policies related to the approval and signing of
checks from the City and its related agencies.
Section 3. This policy will take effect immediately upon adoption.
Section 4. The City Clerk shall certify to the passage and adoption of this
Resolution.
PASSED, APPROVED and ADOPTED this 3rd day of January, 2012.
ATTEST:
Maria Quinonez, City Clerk
APPROVED AS TO FORM:
Fred Galante, City Attorney
Jim Morton, lQiayor
APPROVED AS TO CONTENT:
/ la
'�� gle City Manage
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 3rd day of January, 2012.
AYES: COUNCIL MEMBERS CASTRO, RODRIGUEZ, SANTILLAWBEAS,
ALATORRE AND MORTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Maria Quinonez, City Clerk
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood, and the
Council of said City, do hereby certify that the above foregoing is a full
copy of Resolution No. 2012.009 on file in my office and that said
adopted on the date and by the vote therein stated. Dated this 3`
2012.
o r'
Maria Quinonez, Citly Clerk
Clerk of the City
true and correct
Resolution was
day of January,
Attachment No. 1
CITY OF LYNWOOD
AMENDED AND RESTATED CHECK SIGNING POLICY
PURPOSE:
The purpose of this policy is to establish guidelines and procedures applicable to the
City, its City Departments and related agencies for the approval and execution of
checks for payment of funds from the City or its related agencies.
POLICY PROCEDURES:
The issuance of checks by the City or its related agencies shall be approved and signed
authorized pursuant to the following procedures:
1. Authorization
a. Required Signatures All instruments of payment of the City and its
component units must have two signatures, with at least one of the
signatures being handwritten (manual). Any two of the following
officials of the City are designated by title to sign instruments of
payment with a handwritten (manual) signature or a facsimile signature
(provided that at least one signature is handwritten).
i. City Treasurer
ii. Deputy City Treasurer
iii. Mayor
iv. City Manager
The Treasurer's Office shall provide all authorized signatures to all
applicable banking institutions within 48 hours (excluding non - working
days) of its receipt of any updates to the authorized signatures.
b. Expenditure Authorization All expenditures to be paid shall be
authorized in accordance with the provisions of the Lynwood Municipal
Code. (See L.M.C. section 6 -3.7.) The department initiating the
request shall be responsible for obtaining the required authorization for
any expenditure that is the subject of a check request.
c. Required Authorization and Documentation All requests for payment
shall be submitted to the Finance Department by either (1) using the
Check Request Form attached hereto as Exhibit A and supported by
appropriate documentation, or (2) affixing the Approval Stamp, the
form of which shall be conform to the stamp shown below, upon each
original invoice (or if an original is unavailable, a copy marked by the
vendor as a replacement original) or purchase order from a vendor,
receipts, travel /media reimbursement form, or other applicable
documentation confirming the requisition or expenditure of
reimbursable costs. Each department submitting a check request is
responsible for verification of invoices for payment, including, but not
limited to comparing quantities billed on the invoice with quantities
listed on a purchase order, contract or other applicable document as
well as quantities actually delivered; comparing prices, discounts and
terms with those specified on the purchase order, contract or other
applicable document; and verifying clerical accuracy of the invoice.
Form of Approval Stamp
Date: ______ PO
Account #
Payment Amount,
AuthoriztA Signer
Name, Title. Department
d. Persons Authorized to Request Checks Any check request and
documentation required by Section 1.c above shall be submitted by the
applicable department head or, in his /her absence, the designee
specifically authorized by the department head. Such authorized
person must sign and print his /her name in the appropriate location on
the Approval Stamp or Check Request Form, verifying that the service
or goods at issue have been received, as set forth in Section 1.c
above. The department head shall be responsible for updating his /her
authorized designee with the Finance Department on forms approved
and maintained by the Finance Department, with a copy provided to
the Treasurer's Office.
e. Time to Correct Check Request Errors The department head or
designee shall correct any error or deficiency identified by the Finance
Department or Treasurer's Office within 48 hours (excluding non-
working days), unless the Finance Department or Treasurer's Office's
request is not supported by the requirements of this Policy, in which
case, the City Treasurer shall take the item to the City Manager and
the City Manager shall contact the department head or designee to
correct any error or deficiency. If the matter is not resolved within 48
hours (excluding non - working days), the City Treasurer's Office shall
place the matter on the next City Council agenda for consideration.
2. Finance Department Duties
a. Verification of Check Request The Finance Department shall be
solely responsible for ensuring that: (1) the Approval Stamp is affixed,
with the department head or designee's signature, to the applicable
supporting documentation or that the Check Request Form is properly
filled out and sufficient supporting documentation provided, and (2) and
that the amount requested has been appropriated in the relevant
budget. Upon confirmation of these requirements, the Finance
Department shall initial the Approval Stamp or Check Request Form at
the appropriate place and issue the appropriate check for execution by
the Treasurer's Department per Section 3 below.
b. Addressinq Problems with Check Request If the submittal for a check
request has missing or what appears to be incorrect information, the
Finance Department personnel shall use their judgment in handling the
problem in accordance with the following:
i. If there is a minor problem, such as an incomplete or misspelled
name and address, invoice number, purchase order number or
account number discrepancy, they may communicate same to
the initiating department to expedite resolution of the problem.
ii. If the required approvals have not been obtained, the check
request submittal should be returned to the initiating department
with an explanation of the problem and proposed corrective
action.
iii. If budgeted funds are unavailable and the request for budget
appropriation has not been completed, the Finance
Department's response will be based on the approvals required
for the particular expenditure in accordance with Section 1.b
above and the Lynwood Municipal Code.
The Finance Department personnel will attempt to resolve the
problems in a timely manner so that the payment request is not
delayed and /or late penalty or interest fees do not accrue for late
payment.
3. Treasurer's Office Duties
a. Disbursement of Monies Provided the check request is in compliance
with the above requirements, the Treasurer's Office shall sign the
check and disburse monies accordingly and deliver such signed check
to the Finance Department for delivery to the payee. The Treasurer
may withhold signing a check for the same reasons and pursuant to
the same procedures set forth under Section 5 below.
b. Time to Approve Checks All checks shall be rejected or approved by
the Treasurer's Office within 48 hours (excluding non - working days) of
its completed receipt of the check request submittal. Notwithstanding
the foregoing, should the City Manager determine that withholding a
check for the 48 hour period would present a detriment to the City or its
related agencies, the City Manager, in his or her sole discretion, may
place the matter on the next City Council agenda for consideration.
c. Cash Reconciliation Pursuant to Government Code section 41004,
the Treasurer, working in conjunction with the Finance Department,
shall, by the 10 of each month, submit to the city clerk a written report
and accounting of all receipts, disbursements, and fund balances. The
Treasurer shall further file a copy of such report with the City Council.
4. Special Payment/Verification Procedures
a. Invoices from Law Firms Each billing entry describing legal services
performed must be verified and initialed by the responsible
department, stamped with the Approval Stamp for each separate
invoice and signed according to this Policy.
b. Payroll Direct deposit payroll shall be processed by the Finance
Department. Handwritten paychecks shall require the signature of two
City officials per Section 1.a. The payroll specialist shall provide to the
Treasurer's Office the direct deposit report to ensure the payroll
account is funded to meet payroll. The Treasurer's Office, with the
approval of the City Manager, shall have the authority to audit a payroll
check to an employee on the payroll roster for which the Treasurer's
Office does not have verification of the employee's status as a bona
fide employee of the City. This provision shall not authorize the
duplication of any portion of the employee's personnel file or any
document that reveals the employee' personal information or invade
his /her privacy
c. Prepay Checks In the circumstances where a check cannot wait until
the next warrant run, the initiating department shall provide a detailed
explanation and justification of why the payment cannot wait until the
next warrant run process in order to protect the interests of the City or
related agencies. If such request is approved by the City Manager, the
check shall be issued in accordance with the requirements of Section
3.b above, provided the item appears on the warrant run for the next
available Council meeting.
5. Inappropriate Check Requests and Stop Payments
a. Inappropriate Check Requests Should the City Manager or Treasurer
have a reasonable belief that a check request was issued based on
mistake, fraud or other criminal basis, such officer may direct that the
request or check be held for a period not to exceed 48 hours from
receipt of the request for check approval. During such 48 hour period,
if the officer initiating the hold fails to present written documentation to
the satisfaction of the City Manager, then the hold shall be removed
and the check shall be processed pursuant to this Policy.
b. Stop Payment. Should the City Manager or Treasurer have a
reasonable belief that a check was issued based on mistake, fraud or
other criminal basis, such officers may request that the bank place a
stop payment on the check. All stop payment requests require the
approval of the City Manager or Treasurer. The Treasurer's office
shall immediately enter stop payments into the banking institution's
online cash management system. Any stop payment made without
reasonable justification shall be considered a violation of this Policy
and reported to the City Council on its next agenda.
6. Access to Financial Reports. The Treasurer shall have the right to view,
but not duplicate any portion of, the City's financial records database for
the sole purpose of verifying the appropriateness of any check request.