Isleton Municipal Code Ch. 3.04 Fiscal Administration

The purpose of this section is to provide guidance to and procedures to be followed by the officers and employees of the city relating to the collection, deposit, investment and expenditure of funds paid to or received by the city which are subject to deposit, investment and expenditure by the city under provisions of the California Government Code which govern such matters. This provision is intended to complement said provisions of the California Government Code and is not intended to conflict with those provisions.

(Ord. No. 359)

The finance director of the city shall have primary responsibility for the collection of all funds paid to or received by the city from any source except in those instances in which by statute, by ordinance or by contract the responsibility for the collection of specific funds has been or will be vested in another officer or employee of the city.

(Ord. No. 359)

All funds paid to or received by the city consist of the following:

A. All funds which by reason of statutes, ordinances or by the directions of the payer of said funds come into the hands or custody of the city treasurer for deposit with a legal depository selected by the city treasurer in accordance with requirements of section 53635 of the California Government Code (herein "the treasurer's funds").

B. All funds paid to or received by the city the deposit of which by the city is governed by contract approved by the city council or by statute (herein "the restricted funds").

C. All funds paid to or received by the city which are not treasurer's funds and which are not restricted funds but may be subject to the deposit with a legal depository selected in accordance with requirements of section 53679 of the California Government Code (herein "the unrestricted funds").

(Ord. No. 359)

All city funds collected by the finance director, or the officer of the city charged by law or ordinance with the responsibility for collecting same, shall be delivered or deposited as follows:

A. The treasurer's funds and the unrestricted funds shall be delivered to the city Treasurer for deposit. At the option of the officer of the city collecting the treasurer's funds and the unrestricted funds, instead of physically delivering said funds to the city treasurer for deposit by him or her, said funds may be deposited in an account established by the city treasurer for such deposits. Each such account shall be established by the city treasurer as an interest-bearing account in a legal depository selected by the city treasurer for the deposit of such funds. Officers and employees of the city making deposits in such account shall advise the city treasurer of both the making of each such deposit and the fund of the city to which the deposit shall be credited.

B. The restricted funds shall be deposited in accordance with the provisions of the contract approved by the city council or in accordance with any applicable statute or regulation, which governs the deposit of such funds, whichever is applicable.

C. The city council, the city treasurer and the finance director may agree to jointly use the services of a single depository for the deposit of treasurer's funds and restricted funds.

(Ord. No. 359)

City funds which have been deposited as provided in section 3.04.040 may be invested in accordance with the requirements of law and any investment policy statement or statement approved by the city council as follows:

A. The restricted funds shall be invested in accordance with the provisions of the contract approved by the city council or in accordance with any applicable statute or regulation, which governs the investment of such funds. Unless said contract, statute, or regulation requires the city treasurer or the finance director to invest such funds, the city council shall be responsible for the investment of such funds.

B. The treasurer's funds in a legal depositary are subject to investment by the city council under the provisions of section 53601 of the California Government Code to the extent that such funds constitute money in a sinking fund or are determined by the city council to be surplus money not required for the immediate needs of the city. The city council may, by resolution, establish criteria to be used in determining which deposited funds are subject to investment by the city as moneys in a sinking fund or as surplus money not required for the immediate needs of the city. The city treasurer shall not be authorized to invest said deposited funds unless the city council, by resolution, has delegated its authority to invest such funds to the city treasurer in accordance with the requirements of section 53607 of the California Government Code.

C. The unrestricted funds in a legal depositary are subject to investment by the city council under the provisions of section 53601 of the California Government Code to the extent that such funds constitute money in a sinking fund or are determined by the city council to be surplus money not required for the immediate needs of the city. The city council may, by resolution, establish criteria to be used in determining which deposited funds are subject to investment by the city as moneys in a sinking fund or as surplus money not required for the immediate needs of the city. The city treasurer shall have no authority to invest said deposited funds unless the city council has delegated its authority to invest such funds to the city treasurer in accordance with the requirements of section 53607 of the California Government Code. In addition, the finance director shall have no discretionary authority to invest such deposited funds for the city, but the city council may, by resolution, direct the finance director, acting as an agent of the city council, to make investments previously authorized or approved by the city council.

(Ord. No. 359)

The city treasurer and the finance director may, by prior agreement, jointly prepare and submit to the city council the quarterly reports on deposited and invested funds of the city that are required by subsection (b) of section 53646 of the California Government Code. In the absence of such agreement, the city treasurer shall prepare such a report on the treasurer's funds, if any, which have deposited and invested under his or her discretion and the finance director shall prepare a report on the city funds, if any, which have been deposited by him or her and invested by the city council. Those reports shall be submitted to the city council no later than four weeks following the end of the each fiscal quarter.

In addition, if the city council has delegated its investment authority to the treasurer as provided in section 53607 of the California Government Code, the treasurer and finance director may, by prior agreement, jointly prepare monthly written reports to the city council of all investment transaction during the prior month undertaken by the treasurer. Said report shall also include a description of all such investments subject to the control of the treasurer as of the close of business of the prior month, including the value of such investments as of said date. Said written reports shall be delivered to the city council no later than 20 days following the end of the month covered by the report. In the absence of such agreement between the city treasurer and finance director, the city treasurer shall prepare and submit such a report to the city council.

(Ord. No. 359)

The city council, by resolution, shall establish an investment oversight committee to advise the city council and the city treasurer, or both, on investment matters. The city treasurer, the finance director, and the city clerk shall be members of such committee together with two members of the city council appointed by the mayor.

(Ord. No. 359)

The finance director shall have the primary responsibility to provide accounts and internal auditing services in reference to all funds of the city, which have been deposited or invested pursuant to this chapter.

(Ord. No. 359)

All claims against the funds of the city, including payroll checks, shall be audited by the finance director. Payroll checks may be approved by the finance director if they conform to a budget approved by ordinance or resolution of the city council and funds are available in the city treasury for payment of said claims.

All other claims shall also be audited by the city council prior to payment, or may, with the prior consent of the council, be presented to the city council by the finance director for review following payment and may thereafter be ratified and approved by the city council in connection with the city council's acceptance and approval of an audited comprehensive annual financial report for the city.

(Ord. No. 359)

The finance director, may, with the prior approval of the city council and at the direction of the city council, provide for the periodic audit of the accounting records of the city pertaining to such deposits and investments by independent auditors retained for that purpose. It is the intent of the city council that annual audits on the accounting records of the city shall be performed not later than six months following the close of each fiscal year of the city.

(Ord. No. 359)

The finance director may prescribe written procedures to be followed by all officers and employees of the city who collect or receive funds payable to the city to ensure the safekeeping and deposit of said funds by appropriate officers of the city in accordance with the laws of the state and the applicable ordinances and resolutions of the city. Officers and employees of the city who collect or receive said funds payable to the city shall comply with said written procedures and shall make the deposits of said funds at the intervals and in the manner provided for in said written procedures. The accounts of officers or employees making deposits in the city treasury shall be settled as provided in said written procedures, but not less frequently than on the first Monday of each month.

All such written procedures shall include references to the procedures required by this chapter and shall be subject to the prior approval of the city council before they become effective; provided, however, that the finance director may issue emergency procedures which take effect immediately if such procedures are needed to provide immediate protection to the funds of the city. Immediately upon doing so the emergency procedures shall be presented to the city council by the finance director for confirmation by the city council not later than 20 days after they have been issued by the finance director.

(Ord. No. 359)

A. When funds are available for the payment of audited claims, the approval of said claims by the finance director, when the finance director is authorized to do so in section 3.04.090 above, or by city council in all other cases, shall, without issuance of a warrant, be authority to the legal depository holding the funds in the city treasury, to pay the audited claims by check. Registers and transfers maintained by the finance director pertaining to said checks shall contain substantially the same information as required by law or ordinance to be maintained in connection with the use of warrants for payment of claims. All funds held in the city treasury shall be subject to being drawn upon by check in accordance with such limitations upon the use of said checks as may be reasonably imposed by the legal depository hold said funds or may be required by law or ordinance.

B. All checks drawn upon funds in the city treasury shall bear two signatures and shall be signed by

1. Either the mayor or the vice-mayor, and

2. Either the city clerk or the city manager.

(Ord. No. 359)