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HomeMy Public PortalAbout2010.228 (10-19-10) RESOLUTION NO. 2010.228 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ESTABLISHING A CHECK SIGNING POLICY ADDRESSING THE PROCEDURES FOR APPROVING AND ISSUING PAYMENTS BY THE CITY OF LYNWOOD AND ITS RELATED AGENCIES WHEREAS, on December 20, 2005, the City of Lynwood adopted Resolution No. 2005.204 designating certain officials of the City to sign instruments of payment with handwritten or facsimile signature pursuant to Subsection 2-23.1 of the Lynwood Municipal Code; and WHEREAS, the City Council wishes to supplement Resolution 2005.204 by 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 goals in establishing clear criteria for payments to be approved by the designated City and Agency officials, which policy maintains adequate safeguards against fraud, mistake or misappropriation of funds; and WHEREAS, the City Council has reviewed the proposed Check Signing Policy attached to this Resolution as Attachment No. 1 and finds that it adequately implements the goals of the Council in an efficient and clear manner; and WHEREAS, each City Council wishes to adopt the attached Check Signing Policy as the procedure applicable to the approval of checks from the City and its related agencies and that such Check Signing Policy shall supplement Resolution 2005.204 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, including but not limited to the January 15, 2008 Check Signing Policy & Procedures unilaterally adopted by the City Treasurer's Office; and WHEREAS, the City Council hereby finds that the attached 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 "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 19 day of October, 2010. _. � ; . � , .�. ��f�G ' :��' � ` v ���-'� __ . Maria T. Santillan Mayor ATTEST: � Mana Quinonez, City Clerk APPROVED AS TO FORM: APPROVED AS TO CONTENT: 4 � � Fred Galante, City Attorney Roger L. aley, ' y Manager 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 19 day of October, 2010. AYES: COUNCIL MEMBERS MORTON, RODRIGUEZ, CASTRO AND SANTILLAN NOES: COUNCIL MEMBER FLORES 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 Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2010.228 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 19 day of October, 2010. � � Maria Quinonez, City Clerk Attachment No. 1 CITY OF LYNWOOD 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 Siqnatures: This policy does not amend Resolution 2005.204, which provides that 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 officers of the City are designated by title under Resolution No. 2005.204 to sign instruments of payment with a handwritten (manual) signature or a facsimile signature (provided that least one signature is handwritten). i. City Treasurer ii. Deputy City Treasurer iii. Mayor iv. City Manager v. Assistant City Manager — Finance 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. Should the Treasurer fail to comply, then the City Manager is authorized to provide the banking institutions with updates and, further, the City Manager is authorized to direct banking institutions to accept the City's 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: Finance & Administration Date: PO. # Account # Payment Amount. Authorized Signer: 4tubec•t S Torrez, Asst. City ManagerlFinance Ilir. 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 The City Manager's decision shall be final and either a check issued or the check request corrected per such decision within 48 hours (excluding non-working days) of such decision. 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. Addressing 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 obfained, 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 DepartmenYs 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. Upon verification that the requirements of this policy are met, the duty to issue the monies on demand is mandatory and not a discretionary function of the Treasurer's Office. The Treasurer's Office shall have no authority to hold a check request beyond the time provided in Section 3.b below, stop payment on a check (except as provided in Section 5 below) or to personally verify that the goods or services have been received. 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 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 process a check prior to the elapsing of the 48 hour period. In such case, the City Manager, simultaneously with the processing of the check request, shall also provide a written explanation to the Finance Department and Treasurer explaining the reason(s} why the check could not be withheld for 48 hours. Such check shall still require the authorized signature of 2 officers in accordance with Section 1.a above. c. Cash Reconciliation. Pursuant to Government Code section 41004, the Treasurer 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 and the City Manager. 4. Speciat PavmentNerification 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. 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, Treasurer or Assistant City Manager — Finance 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, Treasurer or Assistant City Manager — Finance 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 concurrence of two of the three named officials (City Manager, Assistant City Manager-Finance, Treasurer) with a facsimile signed by the finro officers provided immediately to the appropriate financial institution. 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.