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HomeMy WebLinkAboutR97-022 adopting financial management policiesCommissioner moved adoption
of the following Resolution:
BOARD OF COUNTY COMMISSIONERS
COUNTY OF EAGLE, STATE OF COLORADO
RESOLUTION NO. 9'J-
RESOLUTION ADOPTING
THE
FINANCIAL MANAGEMENT POLICIES
WHEREAS, the Board of County Commissioners (hereinafter
"Board) is empowered by Section 30 -11 -107, et. sea., C.R.S., to
make such orders concerning the County financial matters, budgetary
and otherwise; and
WHEREAS, on June 3, 1996, by Eagle County Resolution No. 96 -66
the Board adopted and approved Financial Management Policies, to
guide financial matters concerning the County, and repealed the
provisions of all previous Financial Management Policies and any
amendments thereto, all as set forth therein; and
WHEREAS, the Eagle County Finance Director has made further
certain revisions to the Financial Management Policies; and
WHEREAS, the Board desires to adopt the revised Financial
Management Policies, as revised, a copy of which is set forth in
Exhibit "A ", attached hereto and incorporated herein by this
reference, to replace the existing Financial Management Policies.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO:
THAT, the Financial Management Policies, a copy of which is
attached hereto as Exhibit "A ", be and is hereby adopted as of the
date of this Resolution.
�Y
t
THAT, the previous Financial Management Policies adopted by
Resolution No. 96 -66 be and is hereby repealed.
THAT, this resolution is necessary for the public health,
safety and welfare of the citizens of Eagle County.
MOVED, READ AND ADOPTED by the Board of County Commissioners
of the County of Eagle, State of Colorado, at its regular meeting
held the day of March, 1997.
COUNTY OF EAGLE, STATE OF
COLORADO, By and Through Its
BOARD OF COUNTY COMMISSIONERS
BY:
Johnnette Phillips, C airman
r
George V. Gates, Commissioner
Commissioner \-1hn,)�� seconded adoption of the
foregoing resolution. The roll having been called, the.vote was as
follows:
Commissioner Phillips
Commissioner Johnson
Commissioner Gates
This Resolution passed by /!a/ n / vote of the Board of
County Commissioners of the County of Eagle, State of Colorado.
mta \r \revise97.fmp
86 -60
t
EAGLE COUNTY GOVERNMENT
Financial
Management
Policies
Prepared By Finance Director
For Board of County Commissioners
Adoption History:
Original Resolution: 93 -103 08/30193
Amendment Resolutions: 95-6 01/09/95
95 -83 07/31/95
96-66 06/03/96
EXHIBIT
=tea
I
EAGLE COUNTY GOVERNMENT
Financial Management Policies
Table of Contents
Section Page
I Introduction
A. Preface 1
B. Ethics 1
II Organization & Responsibilities
A. Organizational Basis 2
B. Board of County Commissioners 2
C. County Administrator 2
D. Finance Director 3
III Budget
A. Budget Preparation 4
B. Budget Administration 5
IV Accounting Practices
A. Accounting Basis
7
B. Fund Accounting
7
C. Year -end Closings
8
D. Reporting
9
E. Controls /Audits
9
F. Special Functions
10
V Expenditure Management
A. Policy
12
B. Delegation of Authority
12
C. Payments to Vendors
12
D. Payroll
12
E. Purchasing
13
F. Credit Cards
15
G. Telephone Calling Cards
15
H. Cash Advances
15
1. Refunds
15
J. Petty Cash
15
K. Posting Corrections
16
VI Revenue Management
A. Policy 17
B. Collection Functions 17
C. Sources & Distribution 17
VII Insurance & Risk Management 18
1
EAGLE COUNTY GOVERNMENT
Financial Management Policies
Table of Contents
Section
VIII Personnel Administration
A. Policy
B. Employee Management
C. Benefit Programs
D. Compensation Programs
E. Training Programs
F. Retention /Recruitment Programs
IX Banking /Investment Management
A. Policy
B. Debt Reserves
C. Banks & Dealers.
D. Investment Practices
X Debt Management
XI Fixed Asset Management
A. Capitalization Policy
B. Care of Assets .
C. Disposal of Assets
D. Commodities
XII Contract Requirements
XIII Treasurer's Management Policy
A.
Location of Cash
B.
Daily Transactions
C.
Balancing Procedures
D.
Daily Deposits
E.
Refunds
F.
Non - Sufficient Funds Policy
G.
Investment Transactions
H.
Redemption Policy
I.
Treasurer's Checks
MM
19
19
19
19
19
20
21
21
21
22
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27
27
27
27
29
29
30
31
31
32
32
33
34
EAGLE COUNTY GOVERNMENT
Financial Management Policies
I. INTRODUCTION
A. Preface
The purpose of this manual is to formalize the Board of County Commissioners policy
direction regarding financial management in order to facilitate communications
between and amongst the various elected and appointed officials.
B. Ethics
The Board of County Commissioners is committed to the highest standards of conduct
in the performance of their public duties. Since individual and collective adherence
to high ethical standards by public officials is central to the maintenance of public
trust and confidence in government, the Board expects all elected officials, appointed
officials, and employees to apply the following principals when conducting County
business.
o Promote decisions which benefit the public interest.
o Actively promote public confidence in Eagle County Government.
o Faithfully comply with all laws, regulations, and policies applicable to the County
and impartially apply them to everyone.
o Effectively manage all funds and assets of the County.
o Maintain a respectful attitude toward members of the public, employees, other
public officials, colleagues, and associates.
o Cooperate effectively with other governmental agencies, political subdivisions,
and all other organizations in order to further the public interest of the County.
o Engage only in outside interests which are compatible with the impartial and
objective performance of public duties; any activities which may not be
compatible regarding a specific duty or issue should be disclosed immediately.
o Never influence or attempt to influence other officials or employees to act
improperly.
Refer to the "Eagle County Employee HandbooK' for a more detailed discussion of standards
of conduct and conflicts of interest.
a
i
EAGLE COUNTY GOVERNMENT
Financial Management Policies
II. ORGANIZATION & RESPONSIBILITIES
A. Organizational Basis
Legally, the County is an extension of State government. The State legislature
promulgates a significant number of statutes and the executive branch imposes
regulations affecting County government. Many of these statutes and regulations
either specifically establish county policy or limit the Commissioners' flexibility in
establishing county policy.
B. Board of County Commissioners
The Board of County Commissioners establishes the financial policies of the County.
The Board reviews and revises County management policies at least annually.
The Board of County Commissioners believes that all County officials will derive
significant benefits from adherence to these Financial Policies. The Board believes
that this financial policy manual is consistent with the requirements of the "Local Gov-
ernment Budget & Accounting Laws" (part 1,5,6 article 1 of title 229, C.R.S.)
The Board authorizes the County Administrator to take any and all necessary dis-
ciplinary actions to assure compliance with these policies by Department Heads. The
Board requires that the County Administrator inform the Board regarding noncompli
ance with these policies by Elected Officials.
C. County Administrator
The County Administrator serves at the pleasure of the Board of County Commission-
ers. The County Administrator is generally responsible for providing administrative
support to the Board, and for providing direction and interpretation of Board policies
to the County Departments /Offices.
The County Administrator is directed by the Board of County Commissioners to over-
see the execution of the Financial Policies established by the Board. Additionally, the
County Administrator is designated as the official "Budget Officer" by the Board of
County Commissioners.
2
EAGLE COUNTY GOVERNMENT
Financial Management Policies
D. Finance Director
The Finance Director, appointed by the County Administrator, is responsible for pro-
viding administrative and operational support, control and direction for the manage
ment of the County's finances.
The Finance Director, as directed by the County Administrator, will develop all ap-
propriate procedures and practices necessary to implement the Financial Policies
established by the Board of County Commissioners. In establishing procedures and
practices, the Finance Director must comply with Generally Accepted Accounting
Principles, direction from the external auditor, direction from the State Auditor, direct-
ion from the State Department of Local Affairs, various cognizant agencies, and all
relevant State statutes.
3
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
A. Budget Preparation
Philosophy
The Board of County Commissioners' short and long term goals are the cornerstone
of the budget. The budget is a financial plan which attempts to diversify revenues and
minimize expenditures consistent with maintaining routine services and capital invest-
ments. Tools used include Detail Budget Proposals, Long Range Financial Projections
and the Capital Improvements Plan. The budget will be prepared using the modified
accrual basis of accounting.
The Finance Department will be responsible for preparing annually and issuing tc
Department Heads and Elected Officials a budget preparation guide which shall
include specific Board policy and detail procedures for preparing each year's budget.
Balancing Guidelines
Each fund is balanced separately. Subsidies (transfers) between funds require Board
approval. Unless specifically authorized by the Board, expenditures will be equal to
or less than the revenues for each fund. Long Range Financial Projections are pre-
pared for major funds to assure that impacts of the proposed budget are fiscally sound
in future years.
Contingency Reserves
The County has a separate Contingency Fund which can only be used for unforeseen
"emergencies ". Individual departments /offices will not budget contingency funds.
Each year's budget will contain contingency funds as deemed appropriate by the
Board.
Additionally, the Emergency Reserve Fund required under the TABOR Amendment
will be funded as required in the amendment. However, due to the severe restrictions
on the use of those funds, it is highly unlikely that any spending will occur from this
Fund.
Fund Balances
Each fund will maintain sufficient unappropriated funds to assure adequate cash for
working capital, bond ratings, and catastrophe reserves.
4
EAGLE COUNTY GOVERNMENT
Financial Management Policies
B. Budget Administration
Philosophy
Once the Board of County Commissioners adopts the proposed budget, the Finance
Director enters the budget (now a financial plan) into the automated accounting
system. The accounting system then becomes the major tool for monitoring financial
status. Throughout the year, Department Heads and Elected Officials regularly review
results by comparing actual expenditures and revenues to the budget. Whenever
expenditures or revenues differ from the budget, the Department Head or Elected
Official prepares and presents corrective action plans to the Finance Director for
consolidation and presentation to the Board for approval. This continuous monitoring
and correction of the financial plan assures flexible and responsive provision of ser-
vices.
Definition
An appropriation is the authority to spend funds as determined by the Board in the
budget appropriation resolution. A supplemental appropriation is the authority to
spend funds in addition to those authorized in the budget appropriation resolution; the
additional spending must be formally approved by the Board using a supplemental
appropriation resolution.
The TABOR Amendment sets specific revenue and spending limits for each budget
year. The Board can exceed those limits since there has been specific voter approval
at the November, 1995, election.
Responsibilities
Department Heads and Elected Officials are responsible for managing their expend-
itures (at the "line item" level) within the appropriation authorized. If a Department
Head or Elected Official determines a need for additional appropriation or to rearrange
appropriations between line items, that Department Head or Elected Official should
document and forward the request to the Finance Director immediately. The Finance
Director will normally process "Appropriation Change Requests" from January thru July
each year. During August thru December, any desired changes need to be handled
in the "revised budget' portion of the budget preparation process. Anyappropriation
change request which creates an interagency, interfund, or supplemental type of
request must be published in the newspaper and formally accepted by resolution of
the Board at a public hearing; due to this administrative process the Finance Director
will hold and process these types of requests on a periodic basis (typically, March,
July, and December).
5
EAGLE COUNTY GOVERNMENT
Financial Management Policies
The Finance Director is responsible for assisting Department Heads and Elected
Officials in the preparation of appropriation change requests and in the presentation
of those request to the County Administrator and Board. Also, the Finance Director
will initiate a "Carry Forward Supplemental' process at the beginning of each fiscal
year. "Carry Forwards" are usually restricted to Major or Operating Capital projects;
carry forwards for routine operating expenses may be requested but require very
strong justification and extenuating circumstances.
The County Administrator, as County Budget Officer, is responsible for reviewing all
appropriation requests. By statute, the Board of County Commissioners has respon-
sibility and authority for the final approval of all appropriations.
EAGLE COUNTY GOVERNMENT
Financial Management Policies
IV. ACCOUNTING PRACTICES
A. Accounting Basis
The County will maintain adequate systems for collecting, controlling, recording, and
reporting both revenues and expenses using the modified accrual basis of generally
accepted accounting principles and providing full compliance with both State and Fed-
eral laws and regulations.
B. Fund Accounting
The County uses Fund accounting to segregate monies based on designated use.
Fund accounting provides the capability to manage and control the expenditure of
designated revenues. These brief definitions should help readers better understand
Fund accounting.
General Fund
The general fund is a single fund and is used to support all general government oper-
ations. It supports all administrative functions, the Assessor, Clerk, Treasurer, Com-
munity Development, Engineering, Sheriff, etc. Revenues to this fund are generated
by property taxes, sales taxes, fees, and intergovernmental revenue.
Special Revenue Funds
This class of fund is used to account for specific revenue sources which are restricted
to expenditures for specific purposes. The County currently has sixteen funds of this
type; Road & Bridge Fund, Social Services Fund, Wrap Fund, Retirement Fund,
Insurance Reserve Fund, Offsite Road Improvement Fund, Capital Improvements
Fund, Transportation Funds (4), Airport Fund, Airport PFC Fund, Conservation Trust
Fund, Contingency Reserve Fund, and Emergency Reserve Fund (TABOR Amend-
ment). These funds support very specific functions as indicated by the fund title.
Revenues to these funds are generated in varying degrees by property taxes, sales
taxes, fees, and intergovernmental revenue.
Debt Service Funds
This class of funds is used to account for those monies which are being accumulated
for long term principal and interest debt payments. The County currently has three
debt service funds; Eagle County Building GO Bond, Justice Center Revenue Bond,
and Local Improvement District Debt Service.
Capital Projects Funds
This class of funds accounts for the acquisition or construction of major infrastructure,
facilities, and equipment.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
Enterprise Funds
This class of funds is used to account for functions which operate in a manner similar
to a private business. The County currently has one enterprise fund; the Landfill Fund.
Trust & Agency Funds
This class of funds is used to account for assets held by the County in a trustee ca-
pacity or as an agent for individuals, private organizations, other governments, and /or
other Funds; these funds may be expendable and non - expendable. The County cur-
rently has no Trust Funds and one Agency Fund, the E911 fund. There is no
requirement to budget trust and agency funds. The Treasurer's Office also maintains
a separate, special Collateral Fund as an Agency Fund.
Internal Service Funds
This class of funds is used to account for resources used by centralized internal
service functions. Currently, the County has two Internal Service Funds; the Motor
Pool Fund and the Health Insurance Fund. These funds support very specific funct-
ions as indicated by the fund title. Revenues are generated totally by charging other
Funds for services provided.
C. Year -end Closings
Each year the Finance Department shall establish "cut -offs" for processing purchases
in order to facilitate timely "closings ". The Finance Department is responsible for
preparing three closing reports each year; cash basis, budget basis, and final audited.
The "cash basis" closing report is the least "accurate" of the 3 closing reports; it simply
reflects the status as of December 31 st with no adjustments. In most cases, revenues
reflect receipts thru 12/31 and expenditures reflect items vouchered thru 12/25.
Although this report can not be used to make overall judgements regarding ending
position or budget performance, it is useful since it can provide preliminary indication
of problems.
The "budget basis" closing report is probably the most useful for "lay" individuals and
will be produced around the end of March or the beginning of April. This report reflects
revenue receipts thru 12/31, expenditures vouchered thru 12/31, and adjustments
(accruals) as included in the budget. This report can be used to make overall judge-
ments regarding ending position or budget performance.
The "Final audited" closing report is the most technical report and is produced after the
auditor's have completed their official audit of the County's financial report. This report
reflects all prior year activity including the "accounting" accruals. This report can
be used to make overall judgements regarding ending position but can not be used
very easily to evaluate budget performance.
E
EAGLE COUNTY GOVERNMENT
Financial Management Policies
D. Reporting
The Finance Department will produce and distribute monthly activity reports of both
expenses and revenues to each department/office. Each Department Head and
Elected Official is responsible for quality assurance review of these reports.
The Finance Department will produce summary and exception reports for the County
Administrator and Board of County Commissioners.
Each Department Head and Elected Official is responsible for providing regular status
reports to the County Administrator. Also, each Department Head or Elected Official
responsible for major projects may be required to provide project status reports to the
Board of County Commissioners.
E. Controls /Audits
The County Administrator will be responsible for producing and distributing both the
Annual Financial Statements and the associated Audit Management Letters. The
Board Of Commissioners will coordinate with Department Heads and Elected Officials
to correct any deficiencies noted by the external auditors.
The Finance Department will also establish appropriate internal controls for all County
financial transactions. Special internal audits will be performed by the Finance
Department on a regular basis; these will include audits for adequate "back -up" docu-
ments, cash drawer balances, proper account coding (for both expenses and rev-
enues), receivables audits, payable audits, fixed asset audits, etc.
In addition to internal controls, the County uses the following three methods for ex-
ternal review of records, practices, and policies.
o The Board of County Commissioners employs a Certified Public Accounting firm
to audit the accounting process on an annual basis. The Board of County
Commissioners requires that the external auditor be changed every four years
using a bid process every four years (starting with 1995 audit); the Finance
Department will assist in preparing materials for the selection of the external
auditor only as directed by the County Administrator or Board of County Com-
missioners.
o The County submits audited Financial Statements to the State Auditor's Office
for review and comment.
o The County submits the Official Budget Book to the State Department of Local
Affairs for review and comment.
EAGLE COUNTY GOVERNMENT
Financial Management Policies
F. Special Functions
Interfund or interdepartmental charges will normally be processed by voucher.
Charges between departments /offices within a fund will generally NOT be done unless
there is a compelling financial reason. Such reasons shall include the need to allocate
expenses for grant reimbursements, State program reimbursements, or any other need
related to the collection of revenues.
Charges between funds will generally be done unless there is a compelling financial
reason not to.
o Motor Pool
Charges from the Motor Pool will be processed monthly using a voucher. A
detail usage report will be provided to each departmentloffice throughout the
year. The Motor Pool is responsible for preparing rates based on projections
of equipment replacement and equipment maintenance costs. Each department
using equipment from the Motor Pool must budget for the expense as either light
vehicle expense or the heavy equipment expense.
o Road & Bridge
Charges for services provided by Road & Bridge to other funds, primarily
Airport and Buildings & Grounds will be treated as contract services. Road &
Bridge, as service provider, should budget these revenues and the service
receivers should budget the expense as contract services.
o Central Copy Machines
Copy machines are supported centrally from the General Fund. Use of copy
machines by non - General Fund departments will be charged to those funds.
Currently, the Social Services fund is an example of these charges. In addition,
certain General Fund programs will be charged since their grant reimburse-
ments are designed to cover these costs.
o Mail Room
Central postage is supported from the General Fund. Postage provided for non -
General Fund departments will be charged to those funds. Currently, the Social
Services fund is an example of these charges. In addition, certain General
Fund programs will be charged since their grants and reimbursements are
designed to cover these costs.
i(f]
l f
EAGLE COUNTY GOVERNMENT
Financial Management Policies
o Central Stores
Standard office supplies are supported by the Central Stores operation in the
General Fund. Office supplies provided to non - General Fund departments will
be charged to those funds. In addition, certain General Fund programs will be
charged since their grants and reimbursements are designed to cover these
costs. The Finance Department shall establish adequate operating policy and
procedures necessary to effectively run the Central Stores function.
o Equipment Center
The Equipment Center is funded in the General Fund and is designed to pro-
vide "special purpose" equipment to all departments on a limited basis. In-
dividual departments /offices will not be charged for these services. The Fin-
ance Department shall establish adequate operating policy and procedures
necessary to effectively run the Equipment Center.
o Computer Repairs & Maintenance
The Information Systems department will budget funds to provide a "spare
parts" inventory for both central computers and professional computers, and to
cover repair & maintenance costs for all General Fund departments /offices.
While the "spare parts" inventory will be made available to all other Funds on
a 'loaner" basis, other Funds should budget for their repair & maintenance
costs.
o Computer Supplies
Diskettes and printer ribbons will be funded in the Central Stores budget and
will be handled like office supplies. "Stock" computer paper will be funded in
the Information Systems budget for General Fund. Stock computer paper
provided to non - General Fund departments will be charged to those funds.
o Professional Computer Software
General purpose computer software will be budgeted in the Information Systems
department (General Fund). Professional computer software provided for non -
General Fund departments will be charged to those funds. In addition, certain
General Fund programs will be charged since their grant reimbursements are
designed to cover these costs. Information Systems will provide cost estimates
and coordinate purchasing.
o Professional Computer Hardware
The Information Systems department will coordinate the purchase of all pro-
fessional computer equipment. Information Systems will provide cost estimates
and coordinate purchasing. Purchasing will be performed on a item /unit basis
via a telephone solicitation process.
11
Y
EAGLE COUNTY GOVERNMENT
Financial Management Policies
V. EXPENDITURE MANAGEMENT
A. Policy
The County will maintain an aggressive policy of expenditure management. Depart-
ment Heads and Elected Officials must monitor actual expenditures versus budget
appropriation for each requested payment and are responsible for assuring that spend-
ing does not exceed budget authorization.
B. Delegation of Authority
Each Department Head or Elected Official may delegate authority to staff for the
approval of financial transactions; however, such delegation does not relieve the
Department Head or Elected Official of responsibility for financial management. As
part of the internal control system, the Finance Department shall maintain a signature
authorization procedure for the following financial transactions -- Petty Cash, Payroll
Time sheets, Purchase Requisitions /Orders, Vouchers, Appropriation Changes, and
Expenditure Corrections.
C. Payments to Vendors
All payments to vendors for services or goods will be made using the central account-
ing system. Receiving documents or vouchers will be presented by the initiating
departmentloffice to the Finance Department for payment. The Finance Department
will return any request for payment which does not have adequate supporting docu-
ments, causes the budgeted "line item" to go "over" budget, does not have adequate
authorization, is not classified correctly, or does not meet any other internal control
standards.
The Finance Department will provide a "hand check" process for emergency spending.
All requested "hand checks" must be approved by the County Administrator. The
Finance Director will record and report "handcheck" activity to the County Administra-
tor at least quarterly for remedial management action.
The County Administrator will review and publish payments to vendors as required by
statute and as authorized by the Board as part of their regular "consent" agenda.
D. Payroll
The payroll function will be split between Human Resources and Accounting.
Human Resources shall be responsible for maintaining all employee information,
including benefit programs /options and wage rates.
12
EAGLE COUNTY GOVERNMENT
Financial Management Policies
Accounting shall be responsible for verification of submitted time sheets and the actual
processing of the payroll, including Federal and State tax filings. All departments/
offices shall submit individual employee time records signed by the employee and the
appropriate department/office official.
The County Administrator will review and publish payroll data as required by statute
and as authorized by the Board as part of their regular "consent" agenda.
E. Purchasing
Purchasing Aut ority
There is no central purchasing function at the County. The following departments
provide purchasing services:
MOTOR POOL is responsible for the purchase of all vehicles and heavy equipment
(excluding the Airport equipment).
BUILDINGS & GROUNDS is responsible for the purchase of all furniture and fixtures
for County facilities, for managing all capital projects related to buildings and
grounds (excluding the Airport), and for managing both property and casualty
insurance programs.
The AIRPORT is responsible for purchasing its own equipment and facilities.
The HUMAN RESOURCES Department is responsible for purchasing all employee
benefit programs.
The FINANCE Department provides purchasing of office /operating supplies, and
copiers.
The INFORMATION SYSTEMS Department coordinates purchasing of computer
equipment.
Individual departments /offices perform their own purchasing activities for all other
types of goods and services.
Bids & Quotations
Any capital item costing more than $10,000 must be formally bid; items costing less
than $10,000 should be at least price compared.
Any operating item costing more than $5,000 must be formally bid; items costing less
than $5,000 should be at least price compared.
Unless a particular form of bid is required by statute, grant requirements, contracts,
etc., the Board authorizes any of the following forms of "bid" processes; Sealed Bid,
Request For Proposal (RFP), Request For Information (RFI), Request For Quotation
(RFQ), Request For Negotiations (RFN), Sole Source, and State Bid. The Finance
Department shall be responsible for developing procedures regarding the appropriate
use of each authorized form.
13
EAGLE COUNTY GOVERNMEN f'
Financial Management Policies
The evaluation criteria for all bids/quotations shall include at least the following factors;
price (cost), adherence to specifications, availability /delivery, support, reliabilty/
capability of vendor. Additionally, when there is no material difference between bids/
quotation, local vendors shall be given preference.
Note: bid requirements may be bypassed due to emergencies; the Finance Director
will review and approve /deny all such requests.
The Department Head or Elected Official responsible for any bid process will prepare
a formal recommendation for the award requesting authorization from the Board
(normally, as part of their regular "consent" agenda).
Purchase Approvals
All purchases must be based on budgeted appropriations. All departments /offices are
required to use the purchase requisition /order procedures in the following situations.
Vendor requires an order form or other written order.
o Vendor requires confirmation of an order.
o All purchases of capital items; capital items are assets where the County gains
full title, cost is greater than $500, and life expectancy is greater than one year.
Items between $500 and $10,000 will be reviewed /authorized by the Finance
Director; items greater than $10,000 will be reviewed and authorized by the
County Administrator.
o Purchases of operating items where the cost exceeds $5,000. Items between
$5,000 and $10,000 will be reviewed and authorized by the Finance Director;
items greater than $10,000 will be reviewed and authorized by the County
Administrator.
NOTE: Authorizations required for Finance Department transactions will be completed
by the County Administrator.
Receiving & Inspection
All County supplies, materials, and equipment are to be shipped to and received at a
County facility. Items purchased with County funds shall not be directed (shipped) to
any employee's or official's personal residence or business.
14
EAGLE COUNTY GOVERNMENT
Financial Management Policies
The receiving department/office shall inspect all goods in a timely manner to assure
that they are in conformance with the order. Any goods not in compliance with the
order (such as damaged goods, unacceptable quality, incorrect quantity, missing parts,
etc.) shall be returned or resolved with the vendor immediately.
F. Credit Cards
The County Administrator's Office shall be responsible for the control and management
of County Credit Cards. Credit cards will be provided to Department Heads, Elected
Officials, and other authorized staff. Each credit card issued will have a spending limit
of $1,000. Credit cards will only be used for expenses directly resulting from the
conduct of official County business; any personal use will result in repossession of the
card and appropriate disciplinary action by the County Administrator.
G. Telephone Calling Cards
The Buildings & Grounds Department shall be responsible for the control and manage-
ment of County Telephone Calling Cards. Telephone Calling Cards will be provided
to Department Heads, Elected Officials, and other authorized staff. Telephone Calling
Cards will only be used for expenses directly resulting from the conduct of official
County business; any personal use will result in repossession of the card and appro-
priate disciplinary action by the County Administrator.
H. Cash Advances
Cash advances will only be provided for expenses directly related to the conduct of
official County business.
I. Refunds
Normally, refunds will be processed by warrant against the revenue account where the
funds were originally deposited. Final determination shall be made by the Finance
Department.
J. Petty Cash
The Finance Department will authorize "cash drawers" for County departments /offices
as required and in sufficient amounts to conduct public business. It is the responsibil-
ity of each Department Head or Elected Official authorized a 'bash drawer" to balance
cash regularly and retain sufficient documentation to fully explain the basis and nature
of each transaction.
The Finance Department will maintain a "petty cash" check system to provide for
emergency spending needs of less than $1,000 (regular "hand checks" will be used
for larger dollar amounts) as directed by the Finance Director. 'Petty cash" checks will
be charged to the requesting department/office. The "petty cash" check system activity
will be reported to the County Administrator at least quarterly for remedial management
action.
15
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
K. Posting Corrections
Due to the volume of transactions processed by the County, data preparation and /or
entry errors may occur and result in the misposting of an expense. Each Department
Head or Elected Official is responsible for review and identification of such errors
within his/her area of responsibility. The Finance Department is responsible for valid-
ating and coordinating the correction of all such errors. The Finance Department shall
establish procedures as deemed necessary to effectively perform such corrections.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
VI. REVENUE MANAGEMENT
A. Policy
The County will follow a policy of prompt and efficient collection of taxes, fees, and
other revenues. The Finance Department and the Treasurer's Office will coordinate
in the development of adequate deposit procedures for County Departments.
B. Collection Functions
The Finance Department and Treasurer's Office shall coordinate collection functions
which shall include, but not be limited to, use of collection agencies, short check fees,
late payment charges, interest charges, etc.
C. Sources & Distribution
The Finance Department shall be responsible for analyzing the elasticity /diversity of
the revenue stream and for determination of distribution to Funds.
D. Grant Revenue
Each department shall be responsible for preparation of grant proposals and for
complying all grant management & reporting requirements. Each department shall
also be responsible for providing all necessary grant information to the County's
external auditor.
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EA °GLE COUNTY GOVERNMENT'
Financial Management Policies
VII. INSURANCE & RISK MANAGEMENT
The County Administrator has split the insurance /risk management functions as follows:
Property & Casualty Insurance Buildings & Grounds
Worker's Compensation Insurance Human Resources
The Buildings & Grounds Department will fulfill the following responsibilities for Property &
Casualty Insurance.
o Develop and maintain the operating policies and procedures.
o Maintain adequate systems for preventing, controlling, recording, and reporting all
insurance matters.
o Process and review all claims.
o Provide appropriate loss control and safety programs.
o Review the insurance /risk management programs at least annually.
o Evaluate and bid insurance services at least every five years.
The Human Resources Department will fulfill the following responsibilities for Worker's
Compensation insurance.
o Develop and maintain the operating policies and procedures.
o Maintain adequate systems for preventing, controlling, recording, and reporting all
insurance matters.
o Process and review all claims.
o Provide appropriate loss control and safety programs.
o Review the insurance /risk management programs at least annually.
o Evaluate and bid insurance services at least every five years.
The County Attorney's Office may be delegated claims management responsibility for major
liability insurance claims, property losses, or claims involving death or serious bodily injury.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
VIII. PERSONNEL ADMINISTRATION
A. Policy
The Human Resources Department will maintain adequate systems for controlling,
recording, and reporting information related to employee management.
B. Employment Policies & Procedures
Employment policies and procedures shall be developed, implemented, and coor-
dinated by the Human Resources Department. The "Eagle County Employee Hand-
book" shall include the policies and procedures for the administration of the wage and
benefit systems. The handbook shall also contain conditions of employment to include
provisions related to appointment, promotion, transfer, disciplinary actions, layoff, and
dismissal.
C. Benefit Programs
Employee benefit programs, such as health insurance, life insurance, retirement, long
term disability, etc., shall be administered by the Human Resources Department. The
Human Resources Director shall review and submit recommendations regarding the
employee benefit programs in conjunction with the annual budget preparation process.
D. Compensation Programs
The Human Resources Department is responsible for the management and admin-
istration of the compensation (wages) program, including market competitiveness and
the merit (performance) system. Market studies shall be performed annually by the
Human Resources Department; complete evaluation of the effect of Market changes
on the classification system will be done at least every five years. Annually, as part
of the budget preparation process, the Human Resources Department shall coordinate
with the Finance Department for the development and use "wage and benefit project-
ion systems" to facilitate the accuracy of personal services budgets. Additionally,
wage and benefit turnover salvage reports shall be prepared and submitted to the
County Administrator on a monthly basis. Complete merit system performance reports
shall be prepared and submitted to the County Administrator on a quarterly basis.
E. Training Programs
Annually, the Human Resources Department will develop and coordinate County wide
training programs based on budgeted funding and specific needs analysis of training
requirements. Reports regarding implementation /effectiveness of training programs
will be prepared and submitted to the County Administrator at least quarterly.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
F. Retention /Recruitment Programs
Retention programs require the analysis of the causes and factors resulting in em-
ployee turnover. The Human Resources department shall develop and maintain
adequate recruitment/selection procedures and strategies to assure the availability of
competent candidates. Reports regarding implementation /effectiveness of retention/
recruitment programs will be prepared and submitted to the County Administrator at
least quarterly.
01411
EAGLE COUNTY GOVERNMEN T3
Financial Management Policies
IX. BANKING /INVESTMENT MANAGEMENT
A. Policy
The Treasurer's Office will maintain adequate systems for controlling, recording, and
reporting all banking and investment programs. The Treasurer, by delegation of the
Board pursuant to C.R.S. 30 -10- 708(1), is responsible for all investment decisions,
activities, and procedures. Nothing herein shall relieve the Treasurer from the
obligations and duties of the Treasurer's Office under C.R.S. 30 -19 -701 et seq..
These programs will be reviewed at least annually.
B. Debt Reserves
Debt reserves are established either by the Board for specific purposes or to protect
bondholders from payment defaults. Adequate debt reserves are essential for main-
taining bond ratings and marketability. The amount of each bond reserve is estab
lished by bond ordinance for each bond issuance.
C. Banks & Dealers
Banking agreements (for warrant processing) will be evaluated at least every three
years. Depositories shall be selected through the Treasurer's procurement process.
In selecting depositories, the Treasurer shall consider institutional creditworthiness
and their ability to collateralize such deposits. Investment dealers must provide ad-
equate proof of creditworthiness and their ability to collateralize such transactions. A
capitalization analysis may be used to assist the Treasurer in determining the financial
ability of any institution or dealer to conduct public business.
Eligible Depositories
The following institutions are designated as eligible depositories for any and all County
funds:
o All state and national banks having their principle offices in Colorado which are
insured by the Federal Deposit Insurance Corporation (FDIC), or its successor,
and which meet all federal and state statutory requirements regarding County
deposits as legal depositories for the County of Eagle, State of Colorado, in
accordance with C.R.S. 24 -75 -603 and 30 -10 -708, as amended.
o All state and federally chartered savings and loan associations having their
principle offices in Colorado which are insured by the Federal Savings & Loan
Insurance Corporation (FSLIC), or its successor, and which meet all federal and
state statutory requirements regarding County deposits as legal depositories
for the County of Eagle, State of Colorado, in accordance with C.R.S. 24- 75-603
and 30 -10 -708, as amended.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
Eligible Securities Brokers /Dealers
The following are designated as eligible brokers /dealers for governmental securities
transactions allowed under law:
o Securities dealers and banks which are designated as reporting dealers by the
Federal Reserve Bank of New York (primary dealers).
o National and state banks which have their principle offices in Colorado.
o All financial institutions and broker /dealers who desire to become qualified
bidders for investment transactions must supply the following as appropriate:
1. Proof of National Association of Securities Dealers (NASD) certification.
2. Proof of State registration.
3. Completed Broker /dealer questionnaire.
4. All qualified bidders must acknowledge in writing, receipt and understanding
of the Eagle County Investment Policy.
D. Investment Practices
The first priority for use of excess funds shall be to maintain adequate reserves
in highly liquid form. When evaluating the best use of excess funds generated
by cash flow or fund balance, both investment opportunities and debt retirement
will be considered.
Internal Controls
The Treasurer has created written internal control procedures, which must be reviewed
annually by the independent auditor. These controls shall be designed to prevent loss
of public funds due to fraud, employee error, misrepresentation by third parties, unan-
ticipated market changes, or imprudent actions by County employees.
Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal
business activity that could conflict with the proper execution of the investment pro-
grams or which could impair their ability to make impartial investment decisions.
Officers and employees involved in the investment process shall disclose to the Board
any material financial interest in financial institutions that conduct business with the
County and they shall further disclose any large personal financial /investment pos-
itions which could be related to the performance of the County's portfolio. Additionally,
they will subordinate their personal investment actions to those of the County, par-
ticularly with regard to timing of purchases and sales.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
Delegation of Authority
The Treasurer may designate an investment officer to be responsible for the invest-
ment decisions /activities on a day to day basis. Any such delegation requires that the
investment officer shall comply fully with these policies and any procedures as desig-
nated by the Treasurer.
Decision Making Criteria
The investment portfolio shall be managed in a manner to attain a market rate of
return throughout budgetary and economic cycles while preserving and protecting
capital in the overall portfolio. In order of their priority, the three criteria used to judge
the viability of any investment are (1) safety, (2) liquidity (duration of use), and (3) yield
(rate of return).
Liquidity Strategies
Assets shall be invested in instruments whose weighted maturity average ensures
reasonable liquidity.
The County shall diversify its portfolio. Cash and investments shall be diversified by
maturity, issuer, and class of securities.
Risk Strategies
The County recognizes that investment risks can result from issuer defaults, market
price changes, and various technical complications. No individual transaction shall
be undertaken which jeopardizes the portfolio's total capital position. If default by a
specific issuer occurs or if other negative factors occur, the Treasurer shall review,
and, if appropriate, proceed to liquidate securities of comparable credit risk.
To protect against potential fraud and embezzlement, County assets shall be secured
through third -party custody and safekeeping procedures. Bearer instruments shall be
held only through third -party institutions. Investment officials shall be bonded to
protect the public against possible embezzlement and malfeasance. Collateralized
securities such as repurchase agreements shall be purchased using the delivery vs
payment procedure.
Eligible Instruments
The following are the eligible investments for County excess funds:
o Treasury Bills, Notes, and Bonds issued by the United States Government with
a maximum maturity of five years in accordance with C.R.S. 24- 75- 601.1.
o Written repurchase agreements, collateralized by U.S. Treasury obligations with
a maximum maturity of one year, made in compliance with C.R.S. 24-75 -
601.1(1)(j) and other applicable law.
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EAGLE COUNTY GOVERNMENT`
Financial Management Policies
o Any money market fund that meets the criteria set forth in C.R.S. 24-75 -
601.1(1)(k), and in addition, the investments of the money market fund must
consist solely of U.S. Treasury obligations as noted above.
o Time certificates of deposits or interest bearing accounts in any eligible bank
or institution as defined in section C.
o Commercial paper, as defined herein, that at the time of purchase, is rated in
its highest rating category by one or more nationally recognized organizations
which regularly rate such obligations, in accordance with C.R.S. 24 -75 -601.1
o The County Treasurer may invest any excess County funds, pursuant to a
resolution duly adopted by the Board in accordance with C.R.S. 24 -75 -701 et
seq., in a local government investment pool trust. Any such participation in a
local government pool trust shall follow all procedures and restrictions in C.R.S.
24 -75 -701 et seq., and any additional procedures and restrictions provided as
follows:
Any local government investment pool trust created pursuant to C.R.S.
24 -75 -701 et seq., must be approved by the Board, in writing, before the
Treasurer may invest County excess funds in such a trust. Additionally,
the Treasurer may not invest any County excess funds in an approved
local government investment pool trust unless such a trust places dis-
cretion as to administration, investment, and transfer of funds in separate
individuals.
o Securities Issued by U.S. Government agencies pursuant to C.R.S. 24 -75 -601.1
(a) which have a maximum maturity of five years or less and only those agency
securities sold on a discount basis or with fixed coupon payments are eligible
and no securities with floating interest rates should be purchased.
o Municipal bonds with a maximum maturity of five years and which carry the
highest rating from at least one of the nationally recognized rating agencies.
o Other investments as the Board may authorize in writing.
Reporting
The Treasurer shall prepare and submit to the Board of County Commissioners an
investment report on a quarterly basis and annually.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
Definitions
CERTIFICATE OF DEPOSIT means a receipt from a commercial bank or a savings
institution that promises to repay principal plus interest on which are left on deposit for
a particular period of time.
COMMERCIAL PAPER means short term, unsecured promissory notes.
COUNTY FUNDS means any and all funds and monies of whatever kind, that come
into the Treasurer's possession by virtue of the office and in his /her name as such
Treasurer, that she is authorized to deposit pursuant to C.R.S. 30 -10 -708 and 11-47-
101 et seq., as amended.
COUNTY EXCESS FUNDS means any funds in the County treasury, under the control
of the County Treasurer, that are not immediately required to be disbursed.
REPURCHASE AGREEMENTS means short-term investments involving sales of
securities subject to repurchase for which maturities range from 1 to 90 days, and the
minimum investment is $100,000.
TREASURY BILLS, NOTES AND BONDS means obligations of the U.S. Treasury
which are sold at a discount and repaid at face value upon maturity.
U.S. AGENCY SECURITIES means agency securities issued by the U.S. Government
sponsored corporations such as the Farm Credit System and the Federal National
Mortgage Association.
MUNICIPAL BONDS means any security that is a general obligation of any State of
the United States, the District of Columbia, or any territorial possession of the United
States or of any political subdivision, institution, department, agency, instrumentality,
or authority of any of such governmental entities.
041
EAGLE COUNTY GOVERNMEN I'j
Financial Management Policies
X. DEBT MANAGEMENT
The Finance Department will maintain adequate systems for controlling, recording, and
reporting necessary to properly manage all debt; this includes both County originated debt
and Local Improvement District originated debt. Debt management shall include bonded
debt, lease purchases, certificates of participation, and any other forms of debt. These
programs will be reviewed at least annually.
The Board directs that the use of debt be limited to major capital projects, generally greater
than $1,000,000 in cost. The Board also directs the Finance Director to evaluate all requests
to incur debt and to make recommendation regarding the effects of approval on the County's
overall financial position.
The Finance Director shall maintain communications with financial consultants, underwriters,
bond rating agencies, paying agents, etc, regarding the County's debt structure.
Ordinarily, the County incurs debt in one of three forms:
o GENERAL OBLIGATION BONDS
General obligation bonds represent a commitment to fund debt service payments from
property taxes, and as such, require voter approval in addition to Board approval.
o REVENUE BONDS
Revenue bonds represent a commitment to fund debt service payments from a specific
non property tax revenue source (such as sales tax) and require voter approval in
addition to Board approval.
o LEASE /PURCHASE AGREEMENTS
Lease /purchase agreements represent a general commitment to fund payments from
County revenues. Lease /purchase agreements require voter approval under the
TABOR Amendment, unless appropriate "funding out" terms are included.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
XI. FIXED ASSET MANAGEMENT
A. Capitalization Policy
All assets acquired and owned by the County having a value of $500 or more and a
life expectancy of greater than one year shall be considered a fixed asset by the
Finance Department.
B. Care of Assets
Department Heads and Elected Officials are responsible for the care of all County
assets in their department/office. Annually, the Finance department will request that
each Department Head and Elected Official take a physical inventory of all fixed assets
within their department as identified in the County financial records; the Finance
Department will "audit" the asset inventories of selected departments /offices.
The Motor Pool will develop and maintain operating policies and procedures to ensure
adequate care of all vehicles and heavy equipment.
C. Disposal of Assets
Surplus items which are not included as fixed assets shall be forwarded to the Build-
ings & Grounds Department for disposal. The Buildings & Grounds Department may
advertise and sell these items informally.
Surplus items which are included as fixed assets shall be forwarded to the Buildings
& Grounds Department for disposal. The Buildings & Grounds Department must use
the formal process statutorily required for the disposal of fixed assets. Each Depart-
ment Head or Elected Official releasing surplus fixed assets must notify the Finance
Department of asset numbers of the affected items.
Prior to advertising the sale of any assets, the Buildings & Grounds Department shall
circulate a list of the items to each Department Head and Elected Official. Any De-
partment Head or Elected Official having a use for any such items may obtain them by
requesting an asset transfer.
D. Commodities
Certain commodities, such as gasoline and gravel, will not be expensed when pur-
chased but will be treated as assets. These commodities will be expensed when
actually consumed. The Finance Department shall be responsible for determining
which commodities are treated in this manner.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
XII. CONTRACT REQUIREMENTS
All purchases must be based on budgeted appropriations. All departments /offices are
required to use written agreements (contracts) in the following situations.
o Intergovernmental arrangements.
o Property leases.
o Grants
o Purchases of personnel services.
o Vendor requires written contract.
o All purchases of capital items; capital items are assets where the County gains full title,
cost is greater than $500, and life expectancy is greater than one year.
o Purchases of operating items where the cost exceeds $5,000.
If there is any doubt regarding the need for a formal agreement (contract), contact the
Attorney's Office for guidance and direction.
The Attorney's Office will provide guidance regarding the "terms and conditions" required for
agreements (contracts). When purchases of services or non - standard commodities are
made, performance based contracting will be required. Performance based contracting
means that the contract will associate payment(s) to specific tangible performance by the
vendor; typically, there will be a schedule of specific results (tangible products) that will be
paid for when the County accepts those results as complete and adequate. Some examples
of vendor contracts which do not provide for performance based contracting are as follows:
o Software vendors often want 80% to 100% of the contract price at signing of the
agreement or delivery of the program tape /diskette.
o Vendors providing labor intense services, such as the conversion of filing systems,
microfiche projects, etc. often want to charge by the hour for labor rather than when
some part of the project is complete.
The Department Head or Elected Official responsible for any contract award will coordinate
with the Attorney's Office to finalize the terms and conditions of the contract prior to
requesting authorization from the Board (normally, as part of their regular "consent" agenda).
Additionally, each Department Head or Elected Official is responsible for providing the
Attorney's Office with completed copies of each contract signed.
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EAGLE COUNTY GOVERNMEN`'
Financial Management Policies
XIII. TREASURER'S MANAGEMENT POLICY
A. Location of Cash
During business hours, all processed currency is kept in a cash register located in a
far end of the Treasurer /Public Trustee office, which is not accessible to either the
public or employees from other departments within the building. This cash register is,
however, in clear view of 78% of the staff. Currency is arranged by denomination, with
all bills facing the same direction.
During business hours, processed checks are kept in a separate bin beside the cash
register, and are placed facing the same direction.
When the office is closed, all currency and checks, both processed and un-
processed, are kept in a locked vault in a common work file. No one should keep
any cash or checks in their own work file.
B. Daily Transactions
OVER THE COUNTER TAX TRANSACTIONS - Taxpayers bringing cash or checks
for payment remain as witness while the employee verifies, separately, the totals of
both cash and checks to be receipted. Upon producing a paper tape equal to the tax
amount to be credited, a receipt is automatically and immediately written for all cash
payments or combination payments received. A receipt for check only payments is
written upon request by the taxpayer. Tax payments received before daily balancing
procedures have begun, approximately 3:00 p.m., are credited to the proper schedule
number immediately, via computer, and cash and /or checks are placed in /at the cash
register. Cash payments are entered each day. Tax payments received after daily
balancing has begun, are held in a separate file beside the cash register, with all cash
kept in a sealed envelope with appropriate backup. These "late" transactions are kept
in the vault and processed on the next business day.
OVER THE COUNTER MISCELLANEOUS TRANSACTIONS - (Miscellaneous
transactions include miscellaneous receipts, tax certificates, mobile home authentica
tions, etc.) Customers, both general public and employees from other departments,
bringing cash or checks for deposit remain as witnesses while our employee verifies,
separately, the totals of both cash and checks to be receipted. Upon producing a
paper tape equal to the amount to be credited, a receipt is automatically and
immediately written for all cash payments, combination, or check only payments
received. Payments for miscellaneous receipts, individual tax certificates and
authentications received before balancing procedures have begun, approximately 3:00
p.m., are credited to the proper miscellaneous account immediately, via computer, and
cash and /or checks are placed in /at the cash register.
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EAGLE COUNTY GOVERNMEN "I`
Financial Management Policies
MAIL TRANSACTIONS - One employee opens mail received on a daily basis. All mail
is date stamped. Payments received are sorted into tax payments, tax certificate
orders, authentication orders and other miscellaneous receipts. Payments are then
distributed to specific employees for processing. Depending on what time mail is
distributed and how many payments are received, the mail payments may either be
processed immediately or stored in the vault in a common work file to be processed
on the next business day.
C. Balancing Procedures
TAX PAYMENTS - are input, via computer and credited to schedule numbers. An
individual balancing report is generated by the input employee upon completion of
input, listing all cash /checks received by name and number, and schedule numbers
credited. The employee adds all cash /checks and upon producing a tape equalling
the total reported tax payments, attaches his /her total tape to the individual balancing
report. (Cash being deposited is verified by another staff member before being placed
in the cash register.) Individual reports are all placed in a common work file near the
register. Cash /checks are then stored as indicated above.
GENERAL DEPARTMENT BALANCING - is done on a daily basis as follows:
The cash in the cash register is counted twice a day; once in the morning and once
in the afternoon. Amounts are recorded on a balancing log with coins and bills listed
separately along with date, time and initials. The employee who counts the cash in
the morning is not the same employee who counts the cash in the afternoon and is not
the same person who will perform the daily balancing. These logs are included in the
daily balancing work.
At approximately 3:00 p.m. the actual cash in the cash register is counted and listed
on a cash slip and posted to a computerized "cash book" ledger by denomination. The
employee who counts this cash is not the same employee who is balancing the reports
at the end of the day. This employee balances the monthly bank reconciliation.
Checks are added and a calculator tape is produced listing each check, as well as
posting each check by number and amount to the 'bash book" ledger. The employee
who adds these checks daily is normally the same one who counts the cash in the
morning, but is not the same employee who balances the daily work at the end of the
day.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
A second employee (who does not count the cash or add checks) then completes the
following procedures to balance the department:
Miscellaneous receipts are added and a balancing tape is produced. A
miscellaneous receipt report, listing each receipt by transaction number,
accounts credited and amounts, is generated and balanced to tape. The
miscellaneous receipt total is separated into subtotals (suspense, escrow, etc.)
which are posted to the "cash book" ledger.
Cash, which is listed separately from checks on the miscellaneous receipts, is
added separately and this total is balanced to actual cash count listed on the
cash slip and posted to the "cash book" ledger.
When revenues (cash and checks) equal monies receipted for tax and
miscellaneous receipts, we have "BALANCED" that day.
D. Daily Deposits
Deposits are prepared by a third employee who has not performed a balancing pro-
cedures for that day. Deposits are taken to the bank on a daily basis by an employee
who does not count the cash or add checks. A cash balance of $400 is maintained in
the cash register. All other cash, together with checks from the prior day's business,
are totaled on a bank deposit slip, verified to previous day's "cash book" totals and
delivered to the bank for deposit.
E. Refunds
Any and all refunds are provided in check form only. If a payment is brought in for
receipting purposes and is more than the amount needed, a check will be produced
for the refund amount after the monies have been receipted. The Treasurer's office
does not exchange cash for any purposes other than making change for customers for
monies needed to be disbursed within the County. If change is made, one employee
will get the change and a second employee will count the change before giving it to
the customer.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
F. Non - Sufficient Funds Policy
Upon receipt of a non - sufficient check:
If the NSF check is drawn on a local bank, the Treasurer's office will call the
bank and ask if funds are available. If funds are available, the Treasurer's
office redeposits the NSF check in that day's business. If funds are unavailable,
the Treasurer's office calls the remitter requesting immediate payment and the
redeposit will be made. A NFS check will be held no longer than 5 business
days before redepositing.
Non - Sufficient funds received a second time:
When a NSF check is returned to the Treasurer's office a second time, a $20
bad check fee is added to collection amount. At that time, the originating
County department is notified through interoffice mail with a copy of the check
to be collected. When the collection is made by the responsible County
department, Treasurer's office redeposits cash or certified funds. If collection
is not made, the check is taken off the revenues for that department. The check
and miscellaneous receipt, deducting the amount out of revenues, is forwarded
to the originating department. It is up to the originating department to proceed
with collection of the bad debt which now includes the $20.00 bad check fee.
Collection or reversal of revenues must occur within 3 weeks.
G. Investment Transactions
The Treasurer and Department Deputy Treasurer will perform all investment trans-
actions. Wire transfers will be structured so that all monies transferred from accounts
belonging to Eagle County Treasurer will be transferred ONLY into accounts of Eagle
County Treasurer.
Daily cash deposits will be made at Mountain Bank, Eagle every afternoon. As needed
monies will be transferred out of Mountain Bank operating account or transferred in
depending on cash flow need.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
A list of approved financial institutions are:
Banks:
Alpine Banks of Colorado
Mountain Banks
Weststar Banks
Norwest Banks
First Bank of Avon
Cache Bank of Greeley
Independent Bank of Kersey
Colorado National Bank
Pool Funds:
Colorado Diversified Trust (CDT)
Colotrust
Colorado Surplus And Asset Fund (CSAFE)
Brokers /Dealers:
Merrill Lynch - Angie Leach, Broker
Norwest - Bill Knorr, Broker
Gill & Associates - Tom Cladis (CD Broker)
H. Redemption Policy
All redemption monies are to be paid with cash or certified funds and must be received
in the Treasurer's office by the last business day of the month (per Colorado Revised
Statute #39 -12 -103). In such case that the redeemer does not wish to remit cash or
certified funds, a personal check will be accepted only if receipted by the Treasurer's
office in time (10 working days) for the check to be collected by the end of the month,
or the redeemer may remit an additional months interest on to the redemption amount
of the personal check.
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EAGLE COUNTY GOVERNMENT
Financial Management Policies
I. Treasurer's Checks
Treasurer's checks should be issued for the following:
1. Tax overpayments
2. Redemption payments
3. Clerk & Recorder Refunds
4. Food Service License payments to the State of Colorado
5. Clerk & Recorder payments to the State of Colorado
6. Payroll Deposits to Bellco & Alpine Bank
7. Payment of Range Improvement Funds
8. Payment of School Land Dedication Funds
9. Collateral refund requests received from County Attorney's Office & payment
requests received from Community Development
10. Investment monies transferred from Mountain Bank
11. Refunds for other departments as needed upon request
Note: Treasurer's checks should not be used for transactions against County Funds
where the transaction can be processed using the processes provided by the
Finance Department.
34