HomeMy WebLinkAboutR96-066 financial management policies
Commissioner ~ ~ moved adoption
of the following esolution:
BOARD OF COUNTY COMMISSIONERS
COUNTY OF EAGLE, STATE OF COLORADO
RESOLUTION NO. 96 - (.~,
RESOLUTION ADOPTING
THE
FINANCIAL MANAGEMENT POLICIES
WHEREAS, the Board of County Commissioners (hereinafter
"Board) is empowered by Section 30-11-107, ~. sea., C.R.S., to
make such orders concerning the County financial matters, budgetary
and otherwise; and
WHEREAS, on August 30, 1993, by Eagle County Resolution No.
93-103 the Board adopted and approved Financial Management
Policies, to guide financial matters concerning the County, all as
set forth therein; and
WHEREAS, on January 9, 1995, by Eagle County Resolution No.
95-6 the Board revised the Financial Management Policies, all as
set forth therein; and
WHEREAS, on July 31, 1995, by Eagle County Resolution No. 95-
83 the Board revised the Financial Management Policies to reflect
the approved changes to computer purchasing practices of the
County, all as set forth therein; and
WHEREAS, the Eagle County Finance Director has made further
certain revisions to the Financial Management Policies to reference
the creation of the office of the County Administrator, to update
the list of Funds, and to correct Section VII, "Insurance and Risk
Management", which now provides that the Human Resources Department
will perform certain duties regarding Worker's Compensation
Insurance; 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.
THAT, the previous Financial Management Policies adopted by
Resolution No. 93-103, amended by Resolutions No. 95-06~and No. 95=
.83, be and is hereby repealed.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 June, 1996.
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ATTEST : ~ '~ ; ~~
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Clerk to the Board of
County Commissioners
COUNTY OF EAGLE, STATE OF
COLORADO, By and Through Its
BOARD OF COUNTY COMMISSIONERS
By: ,
Georg A. Gates, Chairman
1
~ Johnnette Phillips, Commiss oner
i
Commissioner ~~- seconded adoption of the
foregoing resolution. The roll having been called, the vote was as
follows:
Commissioner Gates ~ ~~
Commissioner Phillips
Commissioner Johnson
This Resolution passed by f~/I°~,/A/1~~j~ vote of the Board of
County Commissioners of the County of Eagle, State of Colorado.
mta\r\revise3.fmp
86-60
EAGLE COIINTY GOVERNMENT
F1nallClal
Management
Policies
Prepared By Finance Director
For Board of County Commissioners ,
Adoption History:
Original Resolution: 93-103 08/30/93
Amendment Resolutions: 95-6 01/09/95
E~CHtBiT
EAGLE COUNTY GOV T
F~cnanciol Manage~ne~t 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 Vendor- 12
D . Payroll 12
E. Purchasing . ~ 13
F. Credit Cards 15
G. Telephone Calling Cards 15
H. Cash Advances 15
I. Refunds ~. 15
J . Petty Cash 15
R. Posting Corrections 16
VI Revenue Management
A. Policy 17
B. Collection Functions .'. 17
C. Sources & Distribution ~. 17
VII Insurance & Risk Management ... 18
VIII Personnel Administration
A. Policy ~ . 19
B. Employee Management 19
C . Benefit Programs 19
D. Compensation Programs 19
E. Training Programs 19
F. Retention/Recruitment Programs 20
EAGLE COUNTY GO
Financial Management Pokcies
Table of Contents
Section Page
IX Banking/Investment Management
A. Policy 21
B. Debt Reserves 21
C.. Banks & Dealers 21
D. Investment Practices ~. .~ 22
X Debt Management 2 6
XI Fixed Asset Management
A. capitalization Policy 27
B. Care of Assets 27
C. Disposal of Assets 27
D. Commodities 27
XII Contract Requirements 28
EAGLE COUNTY GOVERN]IV~NT
Financial Management ~ Policies
I . I~ITRODIICTI01~
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.
1
EAGLE COUNTY GO T
Financial Ma~ragement Policies
II. ORGAHISl1TIOlt i jtE8POg8IBILITIEB
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 goverrunent.
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 offi-
cials 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 "Lgoal Government
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 disciplinary actions to assure compliance with these
policies by Department Heads. The Board requires that the County
Administrator inform the Board regarding noncompliance with these
policies by Elected Officials.
C. County Administrator
The County Administrator serves at the pleasure of the Board of
County Commissioners. 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 oversee 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 GO
Financiol Ma~acgeme~t Policies
D. Finance Director
The Finance Director, appointed by the County Administrator, is
responsible for providing administrative and operational support,
control and direction for the management of the Countyrs finances.
The Finance Director, as directed by the County Administrator, will
develop all appropriate 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, direction from the State Department of Local Af-
fairs, various cognizant agencies, and all relevant State statutes.
3
EAGLE COUNTY GO NT
Financial Management Policies
III. BIIDGBT
A. Budget Preparation
PhilosQphv
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 ac-
counting.
The Finance Department will be responsible for preparing annually
and issuing to 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 prepared 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
adequate cash for working capital,
reserves.
unappropriated funds to assure
bond ratings, and catastrophe
4
EAGLE COUNTY GOVERNMENT
Financial Management Policies
B. Budget Administration
Philoso~hv
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 services.
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 expenditures (at the "line item" level) within the ap-
propriation 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" poition of the budget preparation process.
Any appropriation 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 adminstrative process the Finance
Director will hold and process these types of requests on a
periodic basis (typically, March, July, and December).
5
EAGLE COUNTY GOVE
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 responsibility and authority for the final
approval of all appropriations.
6
EAGLE COUNTY GOVE
Financwl Management Policies
IV . ACCOD~1'1'I~TG PRACTICLB
A. Accounting Basis -
The County will maintain adequate systems for collecting, control-
ling, recording, and repprtinq both revenues and expenses using the
modified accrual basis of generally accepted accounting principles
and providing full compliance with both State and Federal 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 gen-
eral government operations. It supports all administrative func-
tions, the Assessor, Clerk, Treasurer, Community Development, En-
gineering, 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 fifteen funds of this type; Road & Bridge
Fund, Social Services Fund, Retirement Fund, Insurance Reserve
Fund, Offsite Road Improvement Fund, Capital Improvements Fund,
Transportation Funds (4), Airport Fund, Airport PFC Fund, Conserva-
tion Trust Fund, Contingency Reserve Fund, and Emergency Reserve
Fund (TABOR Amendment). 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 pay-
ments. The County currently has three debt service funds; Eagle
County Building GO Bond, Justice-Center Revenue Bond, and Local
Improvement District Debt Service.
Capital Proiects Funds
This class of funds accounts for the acquisition or construction of
major infrastructure, facilities, and equipment.
Enterflrise 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.
7
EAGLE COUNTY GO
Financial Management Policies
• Trust & Agency Funds
This class of funds is used to account for assets held by the
County in a trustee capacity or as an agent for individuals, pri-
vate organizations, other governments, and/or other Funds; these
funds may be expendable and non-expendable. The County currently
has one Trust Fund, the Landfill Trust, and one Agency.Fund, the
E911 fund. There is no requirement to budget trust~~and agency
funds. The Treasurer's Office also maintains a special Collateral
Fund as a Trust & Agency Fund on her "books" only.
Internal Service Funds
This class of funds is used to account for resources used by cen-
tralized 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 functions as
indicated by the fund title. Revenues are gener-ated 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 31st
with no adjustments. In most cases, revenues reflect receipts thru
12 / 31 and expenditures ref 1-ect items vouchered thru 12 / 15 . 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 (accru-
als) as included in the budget. This report can be used to make
overall judgements 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 offical 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.
8
EAGLE COUNTY GO
Financial Managernent 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 pro-
viding 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. ControlsjAudits .
The County Administrator will be responsible for producing and
distributing both the Annual Financial Statements and the associ-
ated 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" documents,
cash drawer balances, proper account coding (for both expenses and
revenues), receivables audits, payable audits, fixed asset audits,
etc.
In addition to internal controls, the County uses the following
three methods for external review of records, practices, and pol-
icies.
o The Board of County Commissioners employs a Certified Pub-
lic 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 us-
ing a bid process every four years (starting with 1995 au-
dit); the Finance Department will assist in preparing ma-
terials for the selection of the external auditor only as
directed by the County Administrator or Board of County
Commissioners.
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.
9
EAGLE COUNTY GO
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 incl"ude the need to allocate expenses for grant re-
imbursements, State program reimbursements, or any other need re-
lated 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
department/office 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 re-
ceivers 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 Gener-
al Fund programs will be charged since their grant reim-
bursements 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 ex-
ample of these charges. In addition, certain General Fund
programs will be charged since their grants and reimburse-
ments are designed to cover these costs.
10
EAGLE COUNTY GOVERNMENT
Financial Management Policies
o Central StoreB
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 estab~.ish ade-
quate operating policy and procedures necessary to effec-
tively run the Central Stores function.
o Equipment Center
The Equipment Center is funded in the General Fund and is
designed to provide "special purpose" equipment to all de-
partments on a limited basis. Individual departments/of-
fices will not be charged for these services. The Finance
Department shall establish adequate operating policy and
procedures necessary to effectively run the Equipment Cen-
ter.
o Computer Repairs & Maintenance
The Data Processing 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 Data Processing
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
Data Processing department (General Fund). Professional
computer software provided for non-General Fund departments
will be charged to those funds. In addition, certain Gen-
eral Fund programs will be charged since their grant reim-
bursements are designed to cover these costs. Data Process-
ing will provide cost estimates and coordinate purchasing.
o Professional Computer Hardware
The Data Processing department will coordinate the purchase
of all professional computer equipment. Data Processing
will provide cost estimates and coordinate purchasing. Pur-
chasing will be performed on a item/unit basis via a tele-
phone solicitation process.
11
EAGLE COUNTY GOVERNIV~NT
Financiol Management Policies
v. ~spEnn=T~a ~-aa~a~'r
A. Policy
The County will maintain anaggressive policy of expenditure
management. Department Heads and Elected Officials must monitor
actual .expenditures versus budget appropriation for each requested
payment and are responsible for assuring that spending 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 Timesheets, Purchase Requisi-
tions/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 accounting system. Receiving documents or vouchers
will be presented by the initiating department/office to the
Finance Department for payment. The Finance Department will return
any request for payment which does not have adequate supporting
documents, 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 "handcheck" process for
emergency spending. All requested "handchecks" must be approved by
the County Administrator. The Finance Director will record and
report "handcheck" activity to the County Administrator at least
quarterly for remedial management action.
The County Admiinist~ator .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 GO
F~Cnancial Ma~»agement 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 past of their
regular "consent" agenda.
E. Purchasing
Purchasing Authority
There is no central purchasing function at the County. The fol-
lowing 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 furni-
ture and fixtures for County facilities, for managing all
•capital projects related-to buildings and grounds (excluding
the Airport), and for managing property and casualty insur-
ance 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, copiers, and computer equipment.
Individual departments/offices perform their own purchasing ac-
tivities for all other types.af 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 re-
quirements, contracts, etc., the Board authorizes any of the fol-
lowing forms of "bid" processes; Sealed Bid, Request For Proposal
(RFP), Request For Information (RFI), Request For Quotation (RFQ),
Request For Negotiations (RFNj, 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 GO NT
Financial Management Policies
The evaluation criteria for all bids/quotations shall include at
least the following factors; price (cost), adherence to specifi-
cations, availability/delivery, support, reliability/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 p=spare a formal recommendation for the award re-
questing authorization from the Board (normally, as part of their
regular "consent" agenda).
Purchase Approvals
All purchases must be based on budgeted appropriations. All de-
partments/offices are required to use the purchase requisiton/order
procedures in the following situations.
o 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 and 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' of-
ficial's personal residence or business.
14
EAGLE COUNTY GOVE
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 managment of County Credit Cards. Credit cards will be
provided to Department Heads, Elected Officials, and other au-
thorized 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 managment 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 appropriate 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 determi-
nation 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 responsibility of each De-
partment Head or Elected Official authorized a "cash 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
"handchecks" will be used for larger dollar amounts) as approved 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
c
EAGLE COUNTY GOVE
Financial Management Policies
R. 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 validating and coordinating the correction of all
such errors.. The Finance Department shall establish procedures as
deemed necessary to effectively perform such corrections.
16
EAGLE COUNTY GO
Finw:cial Management Policies
vi . Rsvsrros nA~aS~rr
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 Treasurers 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.
17
EAGLE COUNTY GOV'~'sRNMENT
Firutncial Management Policies
VII. =asvR~ca ~ a=sE
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 responsi-
bilities for Property ~ Casualty Znsuranos.
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 responsi-
bilities for Worker's Compensat3on-Insru~ance.
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 re-
sponsibility for major liability insurance claims, property losses, or
claims involving death. or serious bodily injury.
18
EAGLE COUNTY GO
Financial Management Policies
VIII. PBRBOI~NEL ADMI~TIBT~t]-TIOM
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 coordinated by the Human Resources Department. The "Eagle
County Employee Handbook" 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, disciplin-
ary actions, layoff, and dismissal. •
C. Benefit Programs
Employee benefit programs, such as health insurance, life insur-
ance, 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 administration 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 bepartment shall coordinate with the Finance Department
for the development and use "wage and benefit projection systems"
to facilitate the accuracy of personal services budgets. Addition-
ally, 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 coordi-
nate 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.
19
EAGLE COUNTY GO
Financial Management Policies
F. Retention/Recruitment Programs •
Retention•programs require the analysis of the causes and factors
resulting in employee turnover. The Human Resources department
shall. develop and maintain adequate recruitment/selec- tion
procedures and strategies to assure the availability of competent
candidates. Reports regarding implementation/effective- Hess of
retention/recruitment programs will be prepared and submitted to
the~County Administrator at least quarterly.
20
EAGLE COUNTY GO
Ffcnanciol' Management Policies
ix. sA~=xa/irivss
A. Policy
The Treasurer's Office will maintain adequate systems for control-
ling, 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 maintaining bond ratings and
marketability. The amount of each bond reserve is established 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 adequate 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.
Elicible Depositories
The following institutions are designated as eligible depos-
itories for any and all County funds:
o All state and national banks having their principle of-
fices 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 Ea-
gle, 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 asso-
ciations having their principle offices in Colorado which
are insured by the Federal Savings & Loan Insurance Corpora-
tion (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 Col-
orado, in accordance with C.R.S. 24-75-603 and 30-10-708, as
amended.
21
EAGLE COUNTY GOVERN]'~VIENT
Financial Management Policies
Eligible
The following are desig
governmental securities
o Securities dealers
porting dealers by
(primary dealers).
Securities Brokers/Dealers
Hated as eligible brokers/dealers for
transactions allowed under law:
and banks which are designated as re-
the Federal Reserve Bank of New York
o National and state banks which have their principle of-
fices in Colorado.
D. Investment Practices
The first priority for us• o! escess funds shall be to maintain
adequate reserves in highly liquid form. 11hen evaluating the bast
use of azcess lunds~generated by sash flow or land balance, both
investment opportunities and debt retirement will be considered.
Internal Controls
The Treasurer has created written internal contrpl 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,
unanticipated 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 program 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 positions
which could be related to the performance of the County's portfo-
lio. Additionally, they will subordinate their personal investment
actions to those of the County, particularly with regard to timing
of purchases and sales.
eleaation of Authorit
The Treasurer may designate an investment officer to be responsible
for the investment 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 designated by the
Treasurer.
22
EAGLE COUNTY GOVE
Financial Management Policies
Decision Making Criteria
o The investment portfolio shall be managed in a manner to
attain a market rate of return throughout budgetary and eco-
nomic 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
o Assets shall be invested in instruments whose weighted
maturity average ensures reasonable liquidity.
o The County shall diversify its portfolio. Cash and invest-
ments shall be diversified by maturity, issuer, and class of
securities.
Risk Strategies
o 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 portfolios total capital position. If
default by a specific issuer occurs or if other negative
factors occur, the Treasurer shall review, and, if apropriate,
proceed to liquidate securities of comparable credit risk.
o 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. Collaterlized 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.
23
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(i)(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 accor-
dance 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 re-
strictions in C.R.S. 24-75-701 et seq., and artyadditional
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 discretion as to administration,
investment, and transfer of funds in separate individu-
als.
o Other investments as the Board may authorize in writing.
- Reoortinc
The Treasurer shall prepare and submit to the Board an investment
report on a quarterly basis and annually.
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 depost for a particular period
of time.
COMMERCIAL PAPER means short term, unsecured promissory notes.
24
EAGLE COUNTY GOVER1vMENT
Financial Management Policies
COUNTY FWiDB means any and all funds and monies of whatever kind,
that come into the Treasurers possession by virtue of her
office and in her name as such Treasurer, that she is
authorized to deposit pursuant to C.R.S: 30-10-708 and
i1-47-101 et seq., ,as amended.
COIIId'1'Y "EBCE88 FIINDS means any funds in the County treasury, under
the control of the County Treasurer, that are not immediately
required to be disbursed.
REPORCHASE ]1GREffi+I8NT8 means short-term investments involving
sales of securities subject to repurchase for which maturi-
ties range from 1 to 90 days, and the minimum investment is
$100,000.
TREABIIRY BILLS, ~IOTEB ]1~iD BO~iDB means " obligations of the U. S".
" Treasury which are sold at a discount and repaid at face value
upon maturity.
P~-~
EAGLE COUNTY GO N't
~'cnancial Management Policies
X . DEBT MANAaEMEI~I'1'
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 ser-
vice payments from property taxes, and as such, require voter ap-
proval 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 LEASEJPURCHASE AGREEMENTS ~ .
Lease/purchase agreements represent a general commitment to fund
payments from County revenues. Lease/purchase agreements may also
require voter approval under the TABOR Amendment.
26
EAGLE COUNTY GOVERNMENT
Financial Management Policies
XI. FI7CED ASSET MAH~iQEMffi~1T
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 equip-
ment.
C. Disposal of Assets
Surplus items which are not included as fixed assets shall be
forwarded to the Buildings & 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 Department 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 Department 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 purchased 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.
27
EAGLE COUNTY GO T
Financial Management Policies
XII. COl~1TRACT RBQIIIREI~El~1'1'8
All purchases must be based on budgeted appropriations. All depart-
ments/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 $5,000. '
If there is any doubt regarding the need for a formal agreement
(contract), contact the Attorneys Office for guidance and direction.
The Attorneys Office will provide guidance regarding the "terms and
conditions" required for agreements (contracts). When purchases of
services or non-standard commodities are made, performance based
contracting will be required. Performance based contracting means that
the contract will associate payment(s) to specific tangible performance
by the vendor; typically, there will be a schedule of specific results
(tangible products) that will be paid for when the County accepts those
results as complete and adequate. Some examples of vendor contracts
which do not provide for performance based contracting are as follows:
o Software vendors often want 80$ 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.
28