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HomeMy Public PortalAboutCash Management Policy (adopted 09/20/16; updated 01/28/20) Page 1 of 2 City of Riverdale, Iowa Cash Management Policies Adopted by the City Council on September 20, 2016 Updated by the City Council on January 28, 2020 1.0 CASH MANAGEMENT POLICY 1.0 Introduction The Council of the City of Riverdale “Council” is the trustee of the public revenues which it collects, and it therefore has an obligation to the community to ensure that the City of Riverdale, Iowa’s “City’s” cash resources are managed effectively, efficiently, and as economically as possible. This policy represents principles and practices that follow generally accepted accounting principles which should be used to help the City maintain financial stability. The support of and commitment to the City’s credit control policy, by the Council and City’s Officials, is an integral part of proper cash management, and by approving this policy the Council pledges itself to such support and commitment. 1.1 Compliance with City Policy & Procedures All City Employees are responsible for complying with the policies and procedures outlined in this document. The Mayor and Treasurer are available for consultation and review of departmental procedures. Supervisors are responsible for training designated employees in fund handling policies and procedures. Historical practices shall not constitute justification for deviation from the policies and procedures set forth in this document. The material contained in this document supersedes any previous policies and procedures regarding the handling of cash. The Council reserves the right to make interpretations and exceptions to the policies contained in this document. 2.0 CASH COLLECTION AND DEPOSIT 2.1 Purpose This section of the document defines and outlines City policy with respect to the handling, receiving, transporting, and depositing of cash. The term cash includes currency, checks, and money orders. (Credit cards and debit cards are not accepted at this time) City funds are monies received from contracts and grants, (delivery of) revenues from city services, state and federal appropriations, gifts and all other sources of revenue or expense reimbursements, whether restricted or unrestricted as to purpose or use. All checks made payable to the City of Riverdale are considered City funds. Page 2 of 3 The collection and control of cash at the City are very important functions. Changes in the City’s cash handling policies and procedures may be made from time to time and will be communicated in writing and approved by Council. 2.2 Cash Collection All monies due to the City must be collected as soon as possible, either on or immediately after due date, and deposited as per Guidelines for Frequency of Deposits listed in 3.03. Payments made in currency may be made at City Hall in the exact amount due or the overage will be given as change from the City’s cash drawer. If a Refund is necessary, it will only be made with regular scheduled warrants (1st and 3rd Tuesdays of each month). Any delinquent amounts should be pursued vigorously in any legal manner to include: • Utility shut offs as provided by ordinance and state law • Certification to taxes through the Scott County Treasurer The respective responsibilities of the Treasurer and other employees are defined in this document. All receipts should be handled by the City Clerk’s office. Documentation for all deposit procedures is included within this policy. Deposits are to be taken directly to the bank in a deposit bag that has been provided to the City Treasurer. 2.3 Segregation of Duties There must be a separation of duties between the person receiving cash and the person responsible for maintaining the accounting records (e.g., General Ledger (from which Budget Statements are printed), utility billing, Accounts Receivable). Cash receipt activity should be reconciled to the Budget Statements monthly. The reconcilement should be reviewed by someone independent of the cash handling or recording functions with each person initialing each document. The following responsibilities should be distributed among personnel so one person is not responsible for all aspects: Opening mail (should be stamped received with date and initials) Endorsing checks (should be stamped with For Deposit Only Riverdale account number) Preparing deposits (should be initialed by 2 staff) Reconciling to budget statement (should be initialed by 3 staff) Billing and collection duties distributed among personnel Page 3 of 4 2.4 Safekeeping of Funds All forms of Cash (currency, checks, and money orders) should be physically protected through the use of City safe, locked cash drawers, locked metal boxes, etc. All checks are to be endorsed immediately upon receipt. Receipts are to be kept in a secure location restricted to authorized personnel until deposited at the bank. It is the responsibility of each office employee to make whatever provisions are necessary to properly safeguard the cash receipts. Amounts under $200 should be maintained in the safe, locked file cabinet, locked cash box kept in file room. Cash should not be retained in desk drawers or standard file cabinets since they are easily accessed with minimal forcing or readily available keys. 2.5 Transfer of accountability Transfer of accountability must be recorded, (initials, date, and amount). The deposit should be initialed and reviewed by a 2nd person other than the person preparing and transporting the deposit. All transfer logs should be retained for the current fiscal year plus 5 fiscal years. All documents should be maintained in such a manner as to provide suitable audit trail for all transactions. • Cash box readings are to be recorded at the end of each day the office is open on the cash reports and reconciled to deposits. • All currency receipts and invoices will be pre-numbered and accounted for to ensure all sales are billed and recorded. • Accounts receivables reconciled to General Ledger monthly. 2.6 Employee Reimbursements Employee receipts should be properly classified as employee reimbursements. All employee receipts should be processed as soon as possible. 3.0 Depositing Cash To The Bank 3.01 Purpose This section of the document summarizes the proper procedures for depositing funds to the bank. 3.02 Requirements for Deposits Deposits are to be made in a timely manner (see chart below) to insure proper posting of accounts and to insure the safety of City employees and citizens. Bank deposits should be made weekly and/or in compliance with Cash Handling Policies & Procedures guidelines. Page 4 of 5 Cash deposits taken to the bank should not conform to any regular time or day of the week schedule. Such deposits should be irregular, subject to change. 3.03 Guidelines for Frequency of Deposits Cumulative Receipts Minimum Frequency of Deposit Delivery to the Bank Up to $200 Within 5 business days $200 or more Within 2 business days If a large portion of cumulative receipts on-hand is comprised of currency, deposits should be made more frequently than outlined above. 3.04 Where to Make Deposits Deposits are to be made at the City’s bank that is established by Resolution. 3.05 Control of Municipal Bank Accounts The Treasurer of the City must administer all of the City’s bank accounts and is accountable to the City Council for the City’s bank accounts and must enforce compliance with City purchasing policies. 3.06 How to Transport Deposits • Care in transporting funds to the bank must always be a high priority. • The deposit should go directly from the office to the bank with no other stops made before the deposit. (example: no stopping at post office, gas station etc. before the bank) • Deposits containing currency may never be sent by mail. 4.0 RECEIPT AND COLLECTION OF CASH 4.01 Purpose This section of the document summarizes the proper procedures to collect currency, checks, and money orders.4.02 Methods to Record Cash Receipts Incoming checks and currency must be recorded in Summit Accounting Software for each transaction. Cash collected should be balanced each business day and recorded. At day's end or as expeditiously as possible, the whole deposit is to be transported to the bank and posted to the General Ledger (City Budget Statements) according to frequency table. The maintenance of a numerical file of all receipts is the responsibility of the City Treasurer. Receipts are pre- numbered and printed in duplicate batch format. Receipts should be delivered in sealed boxes or bound within a book. Since all pre-numbered receipts must be accounted for, all original copies of voided receipts should be Page 5 of 6 stapled together and must be retained. Copies of transaction receipts are to be retained and attached to the copy of the CASH RECEIPT TICKET (CRT). Records of the inclusive receipt and total amount for which the receipts were written should be kept. Deposits to the bank should also reflect the inclusive receipt and the total amount collected. Proceeds should be kept in a locked metal box or cash drawer at all times. Accountability over transaction proceeds should be assigned to a specific individual or individuals so there is a means of establishing accountability. 4.03 Form to be Used Currency deposits should be recorded using the paper Cash Receipt Ticket (CRT). The form is used to record, communicate, and document receipts in preparation of the bank deposit. 4.04 Money Deposited Intact Money should be deposited promptly and intact to the Bank. Cashing personal checks from City deposits, borrowing cash for personal use, lapping receipts to cover shortages in cash receipts, withholding checks for deposit in order to float checks, commingling of personal and City funds, and modification of cash records are all serious offenses and may result in immediate discharge from employment and/or prosecution. 4.05 Utilizing a Cash box or Cash Drawer The City will utilize a cash drawer that has starting cash in the amount of $200. Management should ensure that employees use a balancing worksheet and the cash balancing procedure. The Cash box or Cash Drawer must have • Duplicate pre-numbered receipts to record all transactions. • A cashier must not have the ability to void a transaction without a supervisor’s approval. • Supervisors should perform and record periodic, unannounced, cash reconciliations of the cash register. 4.06 Procedures for Cash Box or Cash Drawer Receipts • All receipts should be recorded through the pre-numbered receipt book or accompanied utility stub. This provides: (1) a record of the amount of funds received (2) a printed receipt to be given to the customer or a visible record of the amount registered for the customer's examination (3) a safe place for holding un-deposited receipts • The cash drawer or cash box should never be left open unless a transaction is being processed. • All drawer or box totals should be balanced at the end of the day. Page 6 of 7 • Accountability over proceeds should be assigned to specific individuals, which means that only one employee may operate out of the same cash drawer at a time and should be assigned his/her own cash drawer or box. Funds should not be commingled between cash drawers. • The cash drawer and/or cash box should be closed out and total cash receipts should be reconciled on a daily basis. • Overages and shortages should be fully reported and explained to the Mayor as soon as possible. Corrective action should be taken when occurrence is more than 3 times. • All corrections should be explained in writing. The journal tape should be marked to indicate the action taken. Management should review and approve all corrections. 4.07 Procedure for Check Acceptance Checks to the City are to be written payable to "The City of Riverdale." • All checks must be drawn on a local United States bank or credit union in U.S. Dollars. • No foreign checks will be accepted. • Look for any messages pre-printed on the check; i.e., “not valid after 90 days” “not valid over $500.00”, etc. • Check the date. No stale date (older than 90 days). No postdate (dated in the future). • Written amount and numerical amount must be the same. • Check must be signed. • Restrictively endorse immediately with the City’s bank deposit stamp. Payment by Check in Person • Checks should have the customer information pre-printed on the face of the check. • Starter/blank checks may not be accepted without approval by an authorized supervisor. Proper identification (Driver's License) must be presented and name, address and phone number will be noted on the face of the check before being approved by a supervisor. Social Security Number should also be obtained. • The payor’s telephone number(s) should be written on the face of the check. • The individual receiving the funds is to initial the face of the check as evidence of personal responsibility for complying with all information and identification requirements. 4.08 Limitations on Acceptance of Payments by Check City employees are not authorized to return currency to the payor in the event that the check exceeds the amount due but may issue a credit on the account for the difference. Page 7 of 8 All checks received must be deposited with the exception of currency or checks received, as a refundable deposit for community room rental. Those funds may be held in the cash drawer in lieu of depositing the funds and returned to the renter after room has been checked for damages. 4.09 Endorsement of Checks The Federal Reserve has established a regulation to standardize check endorsements. All depositors’ endorsements are limited to the top 1.5 inches on the backside of the check, at the trailing edge of the check. This is where endorsements are normally placed. If you look at the face of the check, the endorsement area is directly behind where "Pay to the Order of" is printed. Any marks below the 1.5 inches on the check may obscure the bank routing number, cause delays in returning checks, and forfeit the City’s right to recovery. The purpose of this regulation is to speed collection and returns. Failure to follow the above instructions may result in charges to the City. An adding machine or calculator tape must accompany deposits containing three or more checks. The tape should have a zero total at the top and be totaled at the bottom. All checks should be restrictively endorsed to the City of Riverdale immediately upon receipt. This protects the check if lost or stolen. The endorsement must include the following: For Deposit Only City of Riverdale (bank account number) 4.10 Returned Check Procedures (see also, Resolution 2014-5 A Resolution Establishing A Fees And Procedure Policy For Payments Received) Any checks returned by the banks as uncollected are sent to the Clerk’s Office. Examples of returned checks include; non-sufficient funds (NSF), account closed, payor's signature missing, refer to maker and postdated or stale dated checks. The Treasurer prepares a deposit adjustment, debiting the originating fund's account for the amount of the check and at the same time assessing a service fee (currently $25.00). It is the Treasurers responsibility to notify the check writer and use due diligence to collect the amount of the check and the service charge from the payor. Generally, restitution should be in the form of currency, money order, cashier’s check or certified check. All charge-backs are made to the fund where check was originally deposited and Revenue Source. When restitution is obtained, the Treasurer should prepare a CASH RECEIPT TICKET (CRT) crediting the same account that was debited by the City. If after proper due diligence is performed, collection problems exist, the Mayor or Council may be consulted regarding returned items which remain uncollected after 90 days from the date of debit. Page 8 of 9 5.0 Forms and Procedures to Balance, Record & Deposit Cash Receipts Following are various forms and procedures to assist in balancing cash drawers, accounting for voids, and deposit of funds for same. Copies of all these reports should be kept as well as any generated by the cash drawer with a copy of the CASH RECEIPT TICKET (CRT). These records should be kept intact and retained for seven (7) years. • Void Transaction – Documentation of Voids prepared during business or afterward during balancing • Payment Processing Log is done through Summit Accounting Software, printed, and placed in a binder with receipts then scanned into LaserFiche software. • CASH DEPOSIT RECEIPT TICKET (CRT) – A receipt from the bank used to represent and record your bank deposit to the General Ledger (from which your Budget Statements are printed) 5.01 Cash Receipt Ticket (CRT) The CRT is used to communicate deposit information to the General Ledger. After the correctly prepared bank deposit is deposited at the bank, it will match the Summit Software and post to the General Ledger. • Specify the media/tender types in the Media lines on the CRT. • Enter the deposit reference number for each cash, check, and ACH line item. • When you transport your bank deposit, you will receive a receipt for the deposit bag. 5.02 Preparing a Bank Deposit • The person making the bank deposit should have a second person review and initial the deposit before and after returning from the bank. • Use a printing calculator. • Enter date on bank deposit slip. • Count the currency, listing totals by denomination on calculator. Place a rubber band around the tape and bills. List the amount on the bank deposit slip. • Count all coins and place in small envelope and list on the bank deposit slip. • Run a calculator tape on all checks. Place rubber band or paper clip around checks. List the total on the first line for checks. • Run a calculator tape of all totals and enter total on bottom line and again where it indicates “please enter total”. Page 9 of 10 • Enter total number of checks where indicated, “total items.” • The bank deposit slip is a two-part form. The original will go in the bank deposit bag with the currency, coin, and checks. The duplicate is retained and initialed with the original balancing tapes run by the person balancing the day's work. 5.03 Other Forms Any non-standard form for the deposit of cash receipts must be reviewed and approved by the Mayor, Mayor Pro Tem, or City Manager. 5.04 Correction of Errors If any error, as to account number or distribution, is found after a CRT has been committed and processed, the Treasurer must hand write an explanation on the corrected document and have a 2nd staff person initial the completed Correction. 5.05 Reporting Over & Short A daily accounting of cash received from services or deposits will be balanced against the total amount. Any amount that is over or short is to be reported on the same day and reflected on the CRT, as well as on the balancing worksheet. Corrective action should be taken if established dollar limits and frequency of overages and/or shortages are exceeded. 6.0 CASH RECEIPT RECONCILIATION 6.01 Purpose This section of the document explains procedures to ensure that all funds are properly deposited and recorded by reconciling CRTs and bank deposits to the General Ledger statements. 6.02 Procedures to Reconcile Accounts Verify Match and Post Status using CRT The Treasurer or Mayor may retrieve committed CRTs online to verify matching and posting status of individual deposits and the overall CRT. Only CRTs with a Posting Status of “Posted” on the CRT will appear on budget statements. 6.03 Using Committed Copies The amount posted in the General Ledger (from which Budget Statements are produced) should be compared to the entry committed in the CASH RECEIPT TICKET (CRT). Changes made by Correction Journals or bank adjustments will not be reflected on the original CRTs, they will be shown as separate line items on budget statements. Page 10 of 11 6.04 Using Budget Statements On a monthly basis, both the Treasurer and Mayor may receive monthly budget statements. Total deposits and account balances should be verified against totals in the departmental records. An analysis of outstanding deposits should be made and checked for further disposition. It is very important to establish revenue budgets to provide a basis for variance analysis on a monthly basis. An important management tool is the reconciliation of budget to actual activity. 6.05 How and Where to Report Discrepancies If a deposit line is not found or a discrepancy is found on budget statements or in the General Ledger contact the Treasurer for clarification. 6.06 Monthly Reconciliation of Statements Statements should be reconciled each month and initialed by at least 3 staff, the Mayor or Council members 7.0 GIFTS 7.01 Purpose This section of the document outlines and defines procedures for handling charitable gifts to the City. 7.02 Introduction Charitable Gift checks or currency may be designated by the donor to a specific fund. The Treasurer should ensure proper receipting and acknowledgement of donation on City letterhead. Without an official receipt, the donor may not be able to take an IRS tax deduction for the gift amount. Gifts-In-Kind: Non-monetary gifts such as paintings, equipment, real estate, etc., should be given a receipt recording the item received and suggested value. Valuation of the gift is necessary for proper recording and receipting. Items valued over $5,000.00 must have an independent appraisal. 8.0 PETTY CASH FUNDS 8.01 Purpose This section of the document defines and outlines City policy with respect to the maintenance of petty cash funds in the event the City decides that a petty cash fund is necessary. 8.02 Introduction A petty cash fund is a small amount of currency issued and held to cover payments of day-to-day miscellaneous purchases and postage charges. The petty cash fund is not to be used to circumvent City procedures and record keeping in regards to purchases and payments. Page 11 of 12 8.03 Establishing or Increasing a Petty Cash Fund • To open or increase a petty cash fund, a Resolution Establishing a Petty Cash Fund must be approved by the City Council • A custodian for the fund will be assigned and is the party responsible for safekeeping, disbursing, and balancing the fund. • Determine the fund amount by estimating expenditures for a two-week period. 8.04 Custodian Responsibilities • The custodian of the fund is fully responsible for the safekeeping of the fund and for its proper usage. The custodian must exercise caution in the administration and protection of the fund in his/her possession. • Access to the fund should be limited to the petty cash custodian. • The fund should be locked in an office safe, file safe, or reinforced lockable file or desk that secures all drawers at all times and the key should be kept in the custodian's possession. At no time should the funds be left in unlocked desk drawers or cabinets. Funds should not be retained in desk drawers or standard file cabinets since they are easily accessed with minimal forcing or readily available keys. • Petty cash funds must not be commingled with any other funds or used for any purposes other than those listed in this policy document. • Any discrepancies in the fund are the responsibility of the custodian and management. • It is the responsibility of the custodian to follow current policies and procedures in maintaining the petty cash fund. 8.05 Procedure to Change Custodian If it is necessary to transfer the fund to a new custodian during vacations or leave, the fund should be counted and reconciled by the current custodian and then turned over to the new holder. The new custodian should acknowledge receipt of the fund by signing a form documenting the transfer of funds and the accompanying responsibility. The form below may be copied or printed from this document and used for this purpose. Completed form should be sent to the Treasurer. 8.06 Fund Restrictions • Petty cash funds are to be maintained on an imprest basis, which means the amount of the fund remains constant. Currency and coin plus petty cash receipts in the fund should always equal the authorized amount of the fund. • This fund belongs to the City and should be kept on City property at all times. As such, the fund can be subject to surprise count by the Supervisor, the Mayor, and the City’s external auditors during normal business hours. Page 12 of 13 • Supervisors should periodically perform surprise counts on a regular basis. • No money may be loaned or borrowed from the fund for personal use. • The fund may not be used to cash personal checks. • Mishandling of funds may result in dismissal and/or prosecution of involved employees and/or relinquishment of the fund • The fund may not be used to make change. 8.07 Petty Cash Fund Disbursements • Petty cash disbursements may be made for: • Emergency • Freight • CODs • Postage due purchases • Food purchases under $50 with proper documentation provided, including business purpose of the event. Note that tax may not be reimbursed for purchases of food and incidentals from local vendors or grocers • Employee gifts should never be purchased with these funds • A receipt or invoice should be obtained for each expenditure. Vendor receipts should show the date, amount and description of purchases • No amount should be reimbursed without a receipt • The employee seeking reimbursement should: Fill out a Petty Cash - Pay-Out Form, Include the explanation of purchase, Sign and date, Attach the detailed receipt or invoice for the purchase with scotch tape on all four sides of receipt. The designated supervisor must also sign/approve the reimbursement form. A proxy signature will not be accepted • Presentation of the approved PC form to the fund's custodian will result in reimbursement. • The custodian should make payouts directly to the individual requesting the reimbursement with the PC form. No payouts should be made to employees for delivery of currency to another party. 8.08 Petty Cash Fund Replenishments • Petty Cash funds should be replenished on a regular basis. Receipts and Petty Cash - Pay-Out Forms should be reconciled and reimbursed on a monthly basis. • Reimbursements should not be made for receipts presented which are older than 30 days. • To replenish a fund, currency reimbursements may be obtained from the Treasurer. PC forms with supporting documentation should clearly indicate the amount claimed. Adding machine tape documenting the total should be attached to the DPR claiming reimbursement Page 13 of 14 • To reimburse a fund for stolen currency and/or paid bills and invoices, a memorandum should be requested from the Sheriff acknowledging that the theft has been reported and investigated by them including the incident number and the exact dollar amount 8.09 Overages and Shortages Overages in the fund must be deposited with the Treasurer; Shortages must be fully documented in writing. 8.10 Theft or Loss of Funds • Shortages in the fund must be reimbursed. The reimbursement of the shortage should bring the account back into balance. • Funds lost due to circumstances beyond the control of the custodian must be repaid from the available operating funds. • If burglary or theft is suspected, the Sheriff should be notified immediately after discovery. 8.11 To Close or Decrease a Fund If the petty cash fund is no longer needed for the purpose intended or if the amount of funds on hand is too much, it is the custodian's responsibility to close or decrease the fund. 8.12 To Close a Fund The custodian should count the Fund and then deposit using the (CASH RECEIPT TICKET (CRT)) form into the General Fund. Also, be sure receipt contains the name of the custodian to be relieved of responsibility. A copy of the committed CASH RECEIPT TICKET (CRT) should be sent to the Treasurer. 8.13 To Decrease a Fund Use the same procedure detailed above. The CASH RECEIPT TICKET (CRT) form description should contain the fund total, the amount of reduction, and the fund custodian's name. A copy of the committed CRT should be sent to the Treasurer. 9.0 CHANGE FUNDS The City of Riverdale has determined that a change fund is not necessary due to Resolution 2016-21. The City will not make change. Payments will be received in exact change or the remaining balance credited to customers account. Anyone paying in cash that does not have an active account can request a refund with regular warrants. Page 14 of 15 10.0 Revenue Management Policies 10.01 Purpose This section of the document defines and outlines City policy with respect to revenue management including payments to creditors and cash flow estimates. The term revenue includes all monies received by the City including but not limited to user fees, licenses, utility receipts, rental fees, donations, grant receipts and monies received by State, Federal and County government. The Treasurer of the City is responsible for the management of the revenue of the City. The Treasurer must, among other things, take all reasonable steps to ensure that all money received is promptly deposited in accordance with the requirements of this policy into the City’s primary and other bank accounts. The Treasurer must also ensure that all revenue received by the City, including revenue received by any collecting agent on its behalf, is reconciled on at least a monthly basis. The Treasurer must take all reasonable steps to ensure that any funds collected by the City on behalf of another governmental agency are transferred to that agency as prescribed by the agreement or grant contract but at least on a quarterly basis, and that such funds are not used for purposes of the City. Revenue sources should be properly classified by revenue fund on the receipt. 10.02 Payments to Creditors The Treasurer shall ensure that all bids and quotations invited by and contracts entered into by the City stipulate payment terms favorable to the City, for example, payment should fall due no sooner than at the conclusion of the month following the month in which a particular service is rendered to or goods are received by the City and approved by the Council. This rule shall be departed from only where there are financial incentives for the City to effect earlier payment, and preauthorized by resolution of the Council, such as payroll, or payroll taxes. Any early payment shall be approved by the Council at the next Council meeting. Notwithstanding the foregoing policy directives, Treasurer shall make full use of any extended terms of payment offered by suppliers and not settle any accounts earlier than such extended due date, except if the Clerk/Treasurer determines that there are financial incentives for the City to do so. Special payments to creditors shall only be made with the express prior approval of the City Council, who shall be satisfied that there are compelling reasons for making such payments prior to the normal monthly processing. 10.03 Cash Flow Estimates The Treasurer shall prepare an annual estimate of the City’s cash flows divided into calendar months. The estimate shall indicate when and for what periods and amounts idol revenues may be invested, when and for what amounts investments will have to be liquidated, and when –if applicable- either long-term or short-term debt must be incurred. Page 15 of 16 10.04 User Fees The City will establish all user charges and fees at levels sufficient to cover the full cost (operating, direct and indirect) of providing proprietary services. Rate adjustments will be done by ordinance if state or locally legislated, or by resolution if not legislated by state or local code. 10.05 Licenses, fees, and charges The City will review licenses, fees and charges periodically to determine if the revenues support the cost of providing the service. Adjustments will be made in the same manner as the enabling legislation. 10.06 Grants and Special Purpose Revenues One-time or special purpose revenues such as grants will be programmed for capital projects or other expenditures specific to the revenue’s purpose (special revenue funds). These revenues will not be used to subsidize reoccurring expenses such as personnel, operating or maintenance costs. 10.07 Guidelines in the Event of a Robbery The following guidelines are provided to help ensure staff safety and minimize loss to the City. Unnecessary risks should never be taken. • Cooperate with robber. Avoid any confrontation and facilitate a rapid departure. • Stay as calm as possible. Take no risks. Try not to panic or show any signs of anger or confusion. • Make a mental note of any descriptive features or distinguishing marks on the robber, such as his/her clothing, hair color, eye color, scars, tattoos, etc. Touch nothing in areas where robbers were and note specific objects touched by robbers. • If it is safe to observe, the direction the robber took should be determined. If possible, observe color and make of vehicle leaving the scene. • Trip security alarm as soon as it is safe. • 911 should be called as soon as it is safe. • The robbery should not be discussed with anyone until the police or sheriff arrives. • The victim should, above all else, remain calm and try to remember the details. Write them down. A form is provided below to aid in recalling details. 10.08 City Check Management City Checks should be pre-numbered and printed in batch format. To prevent the removing of checks, checks should be delivered in sealed boxes and stored in the City safe where strict control is exercised over the numerical sequence of checks on the expenditure system (a check register). Page 16 of 16 Two signatures are required on all City checks to be valid. The incumbents of the following positions are authorized to sign paper checks on behalf of Council: (One signature from each of the following) A-Signature: Clerk, Treasurer or Assistant Clerk B-Signature: Mayor, or Mayor Pro tem • Blank checks should never be signed in advance. • All invoices and other documentation should accompany the paper checks for payment so verifications of amount and appropriateness of purchase can be done. 11.0 Cash Reserve Policy 11.01 Purpose The purpose of a Cash Reserve Policy is to ensure sufficient cash flow throughout the fiscal year. 11.02 Operating Cash Balances • All general obligation debt will be paid from the Debt Service Fund. All enterprise revenues pledged to abate general obligation issues will be a budgeted transfer to the Debt Service Fund. • The City will establish a contingency line-item in the annual General Fund operating budget to provide for unanticipated expenditures or to meet unexpected small increases in services. • Reserves will be maintained in the Maintenance Fund for planned budgeted expenses that will be budgeted over multiple years. • Reserves will be maintained for equipment replacement and for unexpected major repairs in the following areas: parking, water, wastewater, stormwater, Fire Department, Fire Trucks, roads, and land acquisition. 12.0 Review of Policy This Cash management policy will be reviewed every 5 years or earlier if so desired by the Council. Any changes to the policy must be adopted by Council and be consistent with the Code of Iowa. 13.0 Effective Date The effective date of this policy shall be upon passage by Resolution 2016-20 on this 20th day of September 2016. The effective date of this update shall be upon passage by Resolution 2020-07 on this 28th day of January 2020.