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HomeMy WebLinkAbout1999-06-21-Ordinance 2300_Financial Accounting ProceduresORDINANCE NO.2300 AN ORDINANCE SETTING RESPONSIBILITIES FOR CITY OFFICERS AND THE FINANCES AND RECORDS OF THE CITY Section 1.Purpose.The purpose of this ordinance is to create procedures for financial accounting,to regulate the retention and destruction of records,and to regulate purchases. Section 2.This ordinance shall provide for the deletion of Section 111 and placing in lieu thereofthe following: §111.1.Purpose.The purpose of this ordinance is to create procedures for fmancial accounting,to regulate the retention and destruction of records,and to regulate purchases. §111.2.Fees.All fees collected for any purpose by any municipal officer shall be deposited with the city treasury through the office of the fmance officer.If any said fees are due to an officer,they shall be paid to him by warrant/check drawn by the finance officer upon the filing of adequate reports relating thereto as required by law, ordinance or council directive. §111.3.Records,Retention.The clerk shall,upon order of the council, destroy all records and papers other than the minutes of the council proceedings, ordinances and instruments having to do with real estate or bond issues,when such records are more than ten (10)years old,in accordance with law.Time-keeping records may be destroyed after two (2)years,and election records as provided by state law.The clerk shall prepare a resolution for council action each year listing the records to be destroyed. §111.4.Petty Cash Fund.TIle fmance officer shall be custodian of a petty cash fund not to exceed $200.00 for the payment of small claims for minor purchases,collect-on-delivery transportation charges,and small fees customarily paid at the time of rendering a service for which payments the clerk shall obtain some form of receipt or bill acknowledged as paid by the vendor or his agent.At such time as the petty cash fund is approaching depletion the finance officer shall draw a warrant/check for replenishment in the amount of the accumulated expenditures and said warrant and supporting detail shall be submitted to the council as a claim in the usual marmer for claims and charged to the proper funds and accounts.It shall not be used for salary payments or other personal services or personal expenses.[July 11,1994 -2183] §111.5.Purchasing Quotations.All purchase over ($500.00)shall be made after securing quotations.Quotations shall be sought from at least two (2),and if possible,three (3)vendors.If an item is a proprietary product this provision shall be waived,but every effort shall be made to avoid specifications with proprietary items exclusively.Once a quotation is taken on an item,unless in a fluid market,no new quotations need to be sought for re-orders unless more than one year has elapsed since the last quotations were received from the several possible vendors.Major supply contracts,such as for gasoline,fuel oil,etc.,shall be reviewed annually.Department heads shall be guided by this regulation on requisitions submitted with quotations.I §111.6.Bidding-Major Contracts.Contracts for consulting services,for such services as water main,sewer and sanitary work,street and utility construction by contract and large equipment shall be placed before the council if amounting to $5,000 or more,except for emergencies endangering the public heath or safety.Major items involving a departure from budgetary provisions,or items not otherwise authorized by council,shall likewise be put before council for policy decision and letting where required. §Ill.7.Purchasing-Orders.All purchases of services supplies and equipment shall be made only after issuance of a purchase order,and no invoice shall be accepted unless authorized by such an order.Purchases not exceeding two thousand dollars ($2,000.00)may be made by the Administrator/Clerk or those officials authorized by the Administrator/Clerk,but only on issuance of a spot purchase order in writing signed by the authorized officer.A copy of such spot purchase order must be delivered to the finance officer within twenty-four (24)hours,weekends and holidays excepted. All other purchase shall be valid only if a purchase order has been given in writing and signed by the Administrator/clerk.Purchases from petty cash and continuing purchases from vendors awarded extended contracts by bid award shall be excepted. [May 4,1992 -2154]1 §111.8.Authorizations to Expend.The finance officer shall determine whether a purchase order may be issued by checking the availability of an appropriation sufficient to pay for such a purchase,and whether the purchase,if a major item,has been authorized by the budget or other council approval.The finance officer shall draw a warrant/check only upon an invoice received or progress billing for public improvement, supported by a purchase order and a signed receipt indicating the materials have been delivered of the quality,and in the quantities indicated,or the services have been performed satisfactorily to the extent billed,and only if an appropriation is available.No purchase shall be authorized unless there is an appropriation available or the council amends the appropriations,or transfer of appropriation is made in accordance with power delegated by council and within the limits set by law and the council. §1I1.9.Accounting.The finance officer shall set up and maintain books of original entry to provide a chronological record of cash received and disbursed through all receipts given and warrant/checks written,which receipts and wan-ant/checks shall be prenumbered,in accordance with modern,accepted methods,and the requirements of the state.The finance officer shall keep a general ledger controlling all cash transactions, budgetary accounts and recording fund balances. §111.1 O.Budget Accounts.The finance officer shall set up such individual accounts to record receipts by source and expenditures by purpose as will provide J adequate information and control for budgetary purposes as planned and approved by council.Each individual account shall be maintained within its proper funds as required by council order or state law and shall be so kept that receipts can be immediately and directly compared with specific estimates and expenditures can be related to the appropriation which authorized it.No expenditure shall be posted except to the appropriation for the function and purpose for which the expense was incurred. §111.11 Contingency Accounts.Whenever the council shall have budgeted for a contingency account the fmance officer shall set it up in the accounting records but said officer shall not charge any claim to a contingency account.Said contingency accounts may be drawn upon only by council resolution directing a transfer to a specific purpose account within its proper funds and then only upon compelling evidence of an unexpected and unforeseeable need or emergency. Section 3.Repealer.All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Section 4.Severability Clause.If any section,provision or part of this ordinance shall be adjudged invalid or unconstitutional,such adjudication shall not affect the validity of the ordinance as a whole or any section,provision,or part thereof not adjudged invalid or unconstitutional. Section 5.Effective Date.This ordinance shall be in effect upon its final passage,approval and publication as provided by law. Passed by the Council this 21st day of June,1999,and approved this 21st day of June,1999.~~ rYonald L.Bailey,Jr.,Mayor Attest: Mark J.Arent n,City Administrator/Clerk June 7,1999 -Ordinance Setting Responsibilities for City Officers and the Finances and Records of the City.Motion by Councilman Peard,seconded by Councilman Berger,to have the City Clerk read the ordinance for the first time in title only.The Mayor asked for a roll call vote:Ayes:Peard,Berger,Gruber and Lyon.Nays:None. Motion carried 4 to O. June 21,1999 -Ordinance Setting Responsibilities for City Officers and the Finances and Records of the City.Motion by Councilwoman Heath,seconded by Councihnan Lyon,to have the Ordinance setting responsibilities for City Officers and the Finances and Records of the City read for the second time in title only.The Mayor asked for a roll call vote:Ayes:Heath,Lyon,Peard,Berger,and Gruber.Nays:None.Motion carried 5 to O.)June 21,1999 -Ordinance Setting Responsibilities for City Officers and the Finances and Records of the City.Motion by Councilwoman Heath,seconded by Councilman Berger,to waive 3'd reading.The Mayor asked for a roll call vote:Ayes: Heath,Berger,Gruber,Lyon,and Peard.Nays:None.Motion carried 5 to O. June 21,1999 -Ordinance No.2300 Setting Responsibilities for City Officers and the Finances and Records of the City.Motion by Councilman Gruber,seconded by Councilwoman Heath,to place the ordinance on final passage.The Mayor asked for a roll call vote:Ayes:Gruber,Heath,Berger,Lyon,and Peard.Nays:None.Motion carried 5 to O.