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.