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.
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Maria T. Santillan Mayor
ATTEST:
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Mana Quinonez, City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
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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
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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.
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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.