HomeMy WebLinkAboutR10-102 Financial Management Policies Commissioner / moved adoption
of the following R tion:
BOARD OF COUNTY COMMISSIONERS
COUNTY OF EAGLE, STATE OF COLORADO
RESOLUTION NO. 2010 - /o 2
RESOLUTION ADOPTING
THE
FINANCIAL MANAGEMENT POLICIES
WHEREAS, the Board of County Commissioners of the County of Eagle, State of
Colorado (hereinafter "the Board "), is empowered by Section 30 -11 -107 et. sec., C.R.S., to make
such orders concerning the County's financial matters, budgetary and otherwise;
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;
WHEREAS, on August 30, 1993, by Eagle County resolution No.93 -103 the Board
revised the Financial Management Policies, all as set forth therein;
WHEREAS, on January 9, 1995, by Eagle County Resolution No. 95 -6 the Board
revised the Financial Management Policies to reflect the approved changes to computer
purchasing practices of the County, all as set forth therein;
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;
WHEREAS, on June 3, 1996, by Eagle County Resolution No. 96 -66 the Board revised
the Financial Management Policies to reflect the approved changes to computer purchasing
practices of the County, all as set forth therein;
WHEREAS, the County has made subsequent policy revisions that were not
memorialized through a resolution.
WHEREAS, the Eagle County Finance Director has made further certain revisions to the
Financial Management Policies to reference new commercial regulations, reflect the Board of
County Commissioners' budget philosophies, and to reduce costs;
WHEREAS, the Finance Director would like to now memorialize the current policies
through this resolution; and
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WHEREAS, the Board desires to adopt the revised Financial Management Policies, 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 the Board be and is
hereby repealed as of the date of this Resolution.
THAT, the Board hereby finds, determines and declares that this Resolution is necessary
for the public health, safety and welfare of the residents of the County of Eagle, State of
Colorado.
MOVED, READ AND ADOPTED by the Board of County Commissioners of the
County of Eagle, State of Colorado, at its regular meeting held the th day of August, 2010.
COUNTY OF EAGLE, STATE OF
COLORADO, By and Through Its
ATTEST: BOARD OF COUNTY COMMISSIONERS
tit
s _Li .. LA* _
Clerk to the Bo rd of , ` Sara J. Fishe t ' •mmissioner
County Commissioner , . �� , 1
on tavney, o •
Peter F. Runyon, Commissione
Commissioner ��% seconded adoption of the foregoing resolution. The roll
having been called, the vote s as as follows:
Commissioner Fisher
Commissioner Stavney
Commissioner Runyon A
This Resolution passed by v vote of the Board of County Commissioners of
the County of Eagle, State of Colorado.
G:\NRW\resolutions \financial management policies.DOC
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EAGLE COUNTY
EAGLE COUNTY GOVERNMENT
Financial
Management
Policies
Prepared By Finance Department
For Board of County Commissioners
Page 1 1
Table of Contents
I. INTRODUCTION 4
A. Preface 4
B. Ethics and Principles 4
II. ORGANIZATION & RESPONSIBILITIES 5
A. Organizational Basis 5
B. Board of County Commissioners 5
C. County Manager 5
D. Finance Director 5
E. Department Directors 6
III. BUDGET 7
A. Budget Preparation 7
B. Budget Administration 11
IV. ACCOUNTING PRACTICES 13
A. Accounting Basis 13
B. Financial Statements 13
C. Year -end Closings 15
D. Departmental Reporting 15
E. Controls /Audits 15
F. Special Functions 17
V. EXPENDITURE MANAGEMENT 19
A. Policy 19
B. Delegation of Authority 19
C. Payments to Vendors 19
D. Payroll 19
E. Purchasing 20
F. Credit Cards 21
G. Cash Advances 21
H. Refunds 21
Petty Cash 22
J. Posting Corrections 22
VI. REVENUE MANAGEMENT 23
A. Policy 23
B. Collection Functions 23
C. Sources and Distribution 23
D. Grant Revenue 23
VII. INSURANCE & RISK MANAGEMENT 24
A. Policy 24
B. Division of Responsibility 24
VIII. PERSONNEL ADMINISTRATION 25
A. Policy 25
B. Employment Policies and Procedures 25
C. Benefit Programs 25
D. Compensation Programs 25
E. Training Programs 25
F. Retention /Recruitment Programs 25
G. Offer Letters and Termination Agreements 26
IX. DEBT MANAGEMENT 27
A. Policy 27
B. Structure 27
X. FIXED ASSET MANAGEMENT 28
A. Capitalization Policy 28
B. Care of Assets 28
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C. Disposal of Assets 28
D. Commodities 28
XI. CONTRACT REQUIREMENTS 29
A. Policy 29
B. Terms and Conditions 29
XII. CODE OF PROFESSIONAL ETHICS 30
A. Policy 30
B. Government Finance Officers Association "Code of Professional Ethics" 30
XIII. POLICY REVISIONS 31
Page 1 3
I. INTRODUCTION
A. Preface
The Financial Management Policies for Eagle County serve multiple purposes,
including, but not limited to, the following: 1) to formalize the Board of County
Commissioner's policy direction regarding financial management 2) to help ensure that the
County continues to be "exemplary stewards of the public trust" 3) to maintain and enhance
the sound fiscal condition of the County 4) to facilitate communications and expectations
between Commissioners, various Elected and Appointed Officials, County staff and
constituents 5) to document the organization's responsibilities for safeguarding assets,
verifying the accuracy of financial data, promoting operational efficiency and ensuring
adherence to prescribed policies and compliance with federal and state regulations 6) to
ensure that appropriate reviews, monitoring and approvals take place, and 7) to set a tone
within the organization for ethical conduct and integrity. A review of the Policies shall be
conducted on an annual basis in conjunction with the preparation of the budget. As
circumstances change, it is anticipated that existing financial policy statements will need to
be modified.
B. Ethics and Principles
The Board of County Commissioners (referred to also as BoCC and the Board) is
committed to the highest standards of conduct in the performance of its public duties.
Individual and collective adherence to high ethical standards by Public Officials is central to
the maintenance of public trust and confidence in government. The BoCC expects all
Elected Officials, Appointed Officials, and staff to apply the following principles while
adhering to the financial policies:
o Promote decisions with the public's interest in mind.
o Actively promote public confidence in Eagle County Government.
o Faithfully comply with all laws, regulations, and policies applicable to the County.
o Effectively manage all funds and County assets that are your responsibility.
o Maintain a respectful attitude toward the public, employees, Elected 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.
Refer to the "Eagle County Employee Handbook" for a more detailed discussion of
standards of conduct and conflicts of interest.
Page I 4
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 BoCC's flexibility in establishing County
policy.
B. Board of County Commissioners
As set forth in the Policy Governance Statement, the County Manager, in conjunction
with the Board of County Commissioners, establishes all policies including the financial
policies of the County. These are reviewed and revised as needed.
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 Government
Budget and Accounting Laws" (part 1, 5, 6 article 1 of title 229, C.R.S.)
The BoCC authorizes the County Manager to take any and all necessary disciplinary
actions to assure compliance with these policies by Directors. The Board requires the
County Manager to inform the Board regarding noncompliance with these policies by
Elected or Appointed Officials.
C. County Manager
The County Manager serves at the pleasure of the Board of County Commissioners.
The County Manager is generally responsible for providing administrative support to the
Board of County Commissioners and for providing direction and interpretation of Board
policies to the County departments /offices.
The County Manager is directed by the Board of County Commissioners to oversee the
execution of the financial policies established by the Board. Additionally, the County
Manager is designated as the official "Budget Officer" by the Board of County
Commissioners. Details of all of the duties of the County Manager are described in a
separate Policy Governance Statement that is available on the County website
D. Finance Director
The Finance Director, appointed by the County Manager, is responsible for providing
administrative and operational support, control and direction for the management of the
County's finances.
The Finance Director 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, Government Accounting Standards Board
pronouncements, direction from the external auditor, direction from the State Auditor,
direction from the State Department of Local Affairs, other various pertinent agencies and all
relevant State and Federal statutes.
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E. Department Directors
Department Directors, elected or appointed by the County Manager, are responsible for
complying with all financial policies as described in the policy manual. Department Directors
are also responsible for holding their respective staff accountable for compliance with the
Financial Policies.
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III. BUDGET
A. Budget Preparation
Budget Development Purpose Statement
The budget is to be developed with the participation of all departments and with their
commitment to meet the needs and expectations of citizens, as aligned with the
commissioners, while maintaining efficiency and effectiveness.
Relationship to Goals and Obiectives
The County's annual strategic planning document identifies many of the goals and
objectives that are considered in the development of the budget. Implementation of this
vision directly supports the purpose statement of our organization, which is "To Enhance
the Quality of People's Lives ".
Budget 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 investments.
Tools used include detail budget proposals, long range financial projections and the Capital
Improvements Plan. The Finance Department will be responsible for preparing annually and
issuing to Directors and Elected Officials a budget preparation guide which shall include
specific Board policy and detail procedures for preparing each year's budget.
Budget Policy
The policies and procedures for the budget comply with Local Government Budget Law
of Colorado as outlined in Colorado Revised Statutes (C.R.S.) Title 29: Article 1, Budget and
Services: Part I, and for the preparation, consideration, adoption, execution and audit of
Eagle County's annual budget. The Budget Policies apply to all departments of Eagle
County. Annually, the Eagle County Board of County Commissioners (BoCC) has the
authority and responsibility to adopt and oversee implementation of a budget approving the
use of public funds for the operation of all County departments. Eagle County's fiscal year
runs from January first through December thirty- first.
Pursuant to C.R.S. Title 29: Article1 the County Manager is the designated Budget
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Officer for the BoCC. The County Manager or his designee shall present a recommended
budget and mill levy for BoCC consideration and approval no later than December 15th of
each year. The budget is presented after working with all Elected Officials, constitutional
officers, and department directors on behalf of the BoCC to prepare the recommended
budget.
Balancing Guidelines
Each fund is balanced separately. Subsidies (transfers) between Funds require BoCC
approval. Unless specifically authorized by the BoCC, 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.
Page 1 7
Strategic Plan Alignment
Every year the BoCC adopts and or renews the County -wide strategic plan. The
strategic plan outlines the goals and objectives for the County for the budget year. The
recommended budget shall, to the extent possible and based on available resources, be
consistent with the goals and objectives of the BoCC adopted strategic plan.
Contingency Reserves
The recommended budget will contain contingency funds for unexpected operational
demands and an emergency reserve as required by Article X, Section 20 of the Colorado
Constitution Amendment One. Individual departments /offices will not budget departmental
contingency funds. Each year's budget will contain contingency funds as deemed
appropriate by the Board of County Commissioners.
o Annual Budget Contingency — The recommended budget shall include a line item in
the General Fund for unforeseen operating expenditures. The BoCC must authorize
any subsequent use of these funds from the General Fund Contingency line item.
The budget will be transferred to the appropriate department upon approval, thereby
increasing the appropriation level of the department. The expenditure will be
charged to the account where the appropriation was transferred.
o Tabor Emergency Reserve - Additionally, the Emergency Reserve Fund required
under the TABOR Amendment shall include an Emergency Reserve of 3% of fiscal
year spending excluding debt service, 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. These funds may only be used in the case of a
"declared emergency" and under Amendment 1, enacted in November, 1992;
emergencies must be officially declared and refunded to the Emergency Reserve
Fund within 180 days after the emergency ends.
Fund Balances
Each fund will maintain sufficient unappropriated funds to assure adequate cash for
working capital, bond ratings, and catastrophe reserves. A reserve is to be maintained for
each non - capital fund at a level of annually designated by the Board and as a percentage of
the annual operating appropriation total of that fund. This reserve may be used at the
BoCC's discretion during times of difficult economic conditions and /or for emergencies as
recognized by the BoCC. If the reserve for any of these funds drops below the designated
level, a plan for re- establishing the reserve will be developed and approved by the BoCC.
Capital Improvement Fund Budget and Three Year Capital Plan
The recommended budget shall include a capital budget and a (3) year capital plan with
a balanced financial base for renewal, replacement and new projects. The recommended
capital budget and capital plan shall be adequate to maintain capital assets at a level
sufficient to protect infrastructure and minimize future maintenance and replacement costs.
The CIP will be reviewed and updated annually by a committee appointed by the County
Manager and the Director of Public Works. The CIP committee will make recommendations
to the BoCC for their consideration. CIP projects are funded by sales tax revenue dedicated
for capital, and other revenues as deemed appropriate by the BoCC and consistent with
State law. The adopted CIP plan authorizes expenditures for each specific project.
Additions, deletions or cost changes of projects in the adopted CIP require County Manager
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and Public Works Manager approval. The CIP plan will identify ongoing operating
requirements associated with each capital project. If a capital request is approved in the
budget process, the operating budget will reside in the appropriate department assigned to
oversee the project, i.e., facilities for buildings, fixtures, furniture, IT for technology solutions,
fleet for vehicle replacement, etc. Capital project budgets should include all costs and
expenditures associated with the completion of the project.
Position Control
The recommended budget shall include a total number of recommended permanent
full -time equivalent positions (FTE's) by classification for each department. Grant - related
positions which do not require County matching dollars also need to be approved by the
BoCC.
Performance Pay, Market Adjustments and Benefits
The recommended budget shall include, to the extent possible and based on available
resources, an annual pay adjustment for employee performance pay, market adjustments
and /or benefit adjustments. Performance pay is based on an assessment of actual
employee performance pursuant to the Eagle County Personnel Manual. Market
adjustments are pursued so that the County can maintain the 75th percentile in a
comparison of pay with public and private employers. For the purposes of that
comparison, the midpoint of pay ranges are compared using a market survey conducted
by the Human Resources Department and Eagle County compensation team.
Revenues and Resources
The recommended budget shall include revenue and resource estimates that balance
with proposed appropriations.
Property tax rates and distributions are estimated and allotted pursuant to Article X,
Section 20 of the Colorado Constitution Amendment One. The allocation of property tax to
separate County Funds is based upon statutory requirements and /or revenue required to
meet program needs. The mill levy rate may be adjusted by fund depending on assessed
values and program need and upon approval by the BoCC.
o Sales Tax Revenues are estimated on an aggregate basis for 2 years beyond the
current budget year. Sales taxes shall be estimated using a combination of
projections for sectors of the economy that produce sales tax and an analysis of
past sales tax performance and current economic factors.
o Grants, Fees and Other Revenue estimates are determined by individual
departments with assistance from the Finance Department. Departments are
responsible for meeting those budgets. Block grants and categorical grants will be
tracked in separate cost centers.
o Beginning Fund Balance and Resources for each County fund are estimated by the
Finance Department based on projected actual expenditures and revenues for the
current fiscal year.
o Upon BoCC approval, the General Fund will recover the costs of providing indirect
services to County Proprietary and Special Revenue Funds. The recommended
budget shall use the most current "full- cost" allocation plan to estimate the value of
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those indirect services. The BoCC then sets inclusionary policies that may decrease
the allocable costs charged to those Funds receiving indirect cost benefits from the
County.
Legislative Consideration and Adoption
The BoCC approves the budgeted level of expenditures for each fund; the budgets of
all Elected Officials reside in the General Fund, but are adopted at the department level
within the fund. At any point prior to adoption, the BoCC may revise the recommended
budget pursuant to available resources and the requirements of state law. Elected
Officials and Department Directors shall have an opportunity to appeal the recommended
budget to the County Manager and then to the BoCC prior to budget adoption.
Budget Configuration — The County budget is adopted on a basis consistent with
Generally Accepted Accounting Principles as applicable to governments. County
Governmental Funds reflect the modified accrual basis of accounting in which revenues
are budgeted when they become measurable and available, and expenditures are charged
against the budget when the economic event occurs. County Proprietary Funds reflect the
accrual basis of accounting in which revenues are recognized when they are earned and
measurable and expenses are recorded when they are incurred. Once appropriations are
approved by the BoCC no spending agency may expend, or contract to expend, any funds
in excess of the amount appropriated in the appropriation resolution. All unencumbered
and unspent appropriations lapse at year end.
Budget Position Control — The BoCC approves the total number of permanent full -
time equivalents (FTE's) in the adopted budget. Departments must obtain BoCC approval
for additional staffing levels above the adopted FTE count. The County Manger, as
designated Budget Officer, may authorize position classification realignments between
and /or within departments.
Budget Control and Execution
level f t control is at the department level. No department may expend,
The of budgetary co of p p y p ,
or contract to expend, any money in excess of the amount appropriated in the
appropriation resolution. No fund may carry a negative fund balance according to Statute.
Administratively, operating budgets are controlled at the department level with
departments having the authority to transfer appropriations within certain classifications
within a department without further BoCC approval. Those certain classifications are fixed
in the annual budget guidelines as approved by the BoCC and may be expanded to line
item control. Additions, deletions or transfers of budget between projects within the
approved capital fund budget must be approved by the County Manager. Increases in
capital plan appropriations must be approved by the BoCC.
Supplemental Appropriations — Supplemental appropriations may be submitted for
review and approval by the BoCC. Supplemental appropriations are appropriate when
certain types of unanticipated revenue are secured. For example, the unanticipated
revenue that must be offset by expenditure, i.e. a grant, would be considered for a
supplemental appropriation. However, an increase in general revenue sources, i.e.,
property taxes, sales taxes, etc., is considered revenue available for County -wide
appropriations and therefore not eligible for supplemental appropriations.
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Supplemental appropriations may also be submitted for review and approval by the
BoCC when additional appropriations are required to meet unanticipated needs, even
though specific revenues have not been secured. In these cases, budget adjustments are
made by appropriating from the General Fund Contingency line item or the un-
appropriated fund balance. Budget adjustments appropriating from the un- appropriated
fund balance should only be used when there are inadequate General Fund Contingency
line item funds available and it has been reasonably determined that the requesting
department cannot accommodate the request within its current appropriations.
Budgetary Transfers — Transfers of budget between spending agencies must be
approved by the BoCC. A transfer can move budgeted and appropriated amounts from
one or more spending agencies in one fund to one or more spending agencies in another
fund. It can also consist of the transfer of budgeted and appropriated amounts between
spending agencies within one fund.
Budgetary Basis of Accounting — Budgets are adopted on a basis consistent with
Generally Accepted Accounting Principles (GAAP). Government Accounting Standards
Board (GASB) pronouncements are GAAP for government. County Governmental Funds
reflect the modified accrual basis of accounting, which recognizes increases and
decreases in financial resources only to the extent that they reflect near -term inflows and
outflows of cash. That is: revenues are budgeted when they become measurable and
available and expenditures are charged against the budget when the economic event
occurs.
Budget Audit and Evaluation
A budgetary control system is maintained to ensure adherence to the budget. Periodic
financial reports are submitted to the BoCC and department directors detailing the
progress toward compliance. These reports, at a minimum, compare the current budget
and the year -to -date revenues and expenditures by department.
Performance Measures — Measures that assess the County's responsibility to provide
services that are effective and efficient will be developed and reported annually to assist
the public in assessing the results of operations for Eagle County.
B. Budget Administration
Budget Control Purpose Statement
The purpose of budget control for Eagle County is to ensure that the budget is
sustainable and transparent and that departments are accountable to their goals and
objectives in an appropriate manner, have the discipline to stay within budget, and are
allowed the flexibility to deploy the appropriate resources to meet changing environments
and client and /or commissioner needs.
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 Directors and Elected Officials regularly review results by
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comparing actual expenditures and revenues to the budget. Whenever expenditures or
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revenues differ from the budget causing a net negative variance, the Department Director or
Elected Official prepares and presents corrective action plans to the County Manager and
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 service.
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
Directors and Elected Officials are responsible for managing their expenditures (at the
"classification" level as defined by the BoCC annually) within the appropriation authorized. If
a Department Director or Elected Official determines a need for additional appropriation or to
rearrange appropriations between "classifications ", that Director or Elected Official should
document and forward the request to the Finance Director immediately. Any appropriation
change request which creates an interagency, inter -fund, or supplemental type of request
must be published in the newspaper and formally accepted by resolution of the BoCC 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, February, April, June, September and
December).
The Finance Director is responsible for assisting Directors and Elected Officials in the
preparation of appropriation change requests, consolidating the requests and in the
presentation of those requests to the County Manager and the BoCC. Also, the Finance
Director will initiate a "Carry Forward Supplemental" process at the beginning of each fiscal
year which will be included in the first supplemental, usually in February. "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 Manager, as County Budget Officer, is responsible for reviewing all
appropriation requests. By statute, the BoCC has responsibility and authority for the final
approval of all appropriations.
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IV. ACCOUNTING PRACTICES
A. Accounting Basis
The County will maintain adequate systems for collecting, controlling, recording, and
reporting both revenues and expenditures using generally accepted accounting principles
(GAAP) as appropriate to government and providing full compliance with both State and
Federal laws and regulations.
B. Financial Statements
The County's basic financial statements comprise three components:
1. Government -wide Financial Statements,
2. Fund Financial Statements and
3. Notes to the Financial Statements
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -wide Financial Statements
The Government -wide Financial Statements are designed to provide readers with a
broad overview of Eagle County's finances, in a manner similar to private - sector business.
The Statement of Net Assets presents information on all of the County's assets and
liabilities, with the difference between the two reported as net assets. Over time, increases
or decreases in net assets may serve as a useful indicator of whether the financial position
of Eagle County is improving or deteriorating.
The Statement of Activities presents information showing how the government's net
assets changed during the most recent fiscal year. All changes in net assets are reported
as soon as the underlying event giving rise to the change occurs, regardless of the timing of
the related cash flows. This is the accrual basis of accounting
Both of the Government -wide Financial Statements distinguish functions of Eagle
County that are principally supported by taxes and intergovernmental revenues
(governmental activities) from other functions that are intended to recover all or a significant
portion of their costs through user fees and charges (business -type activities). The
governmental activities of the County include general government, public safety, highways
and streets, economic development, transportation, affordable housing and culture and
recreation.
The Government -wide Financial Statements include not only Eagle County itself, but
also the following legally separate entities: Eagle County Air Terminal Corporation, Eagle
Lease Financing Corporation, Eagle County Justice Center Financing Corporation and the
following discretely presented component units; Eagle County Emergency Telephone
Service Authority (E -911), Lake Creek Affordable Housing Corporation, Eagle Riverview
Affordable Housing Corporation and Golden Eagle Elderly Housing Corporation (which
includes Seniors on Broadway) for which Eagle County is financially accountable. Financial
information for the discretely presented component units is reported separately from the
financial information presented for the primary government itself.
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Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources
which have been segregated for specific activities or objectives. Eagle County uses fund
accounting to ensure and demonstrate compliance with finance - related legal requirements.
All of the funds of Eagle County can be divided into three categories: Governmental Funds,
Proprietary Funds, and Fiduciary Funds.
Governmental Funds
Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the Government -wide Financial Statements. However, unlike the
Government -wide Financial Statements, Governmental Fund Financial Statements focus on
near -term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Governmental Funds are reported using
the modified accrual basis of accounting. Revenues are only recognized when they are both
measurable and available and received within 60 days. Expenditures are recorded when
the liability is incurred with the exception of debt service expenditures, which are
expenditures related to compensated absences and claims and judgments, which are
recorded only when due.
Eagle County recognizes four types of Governmental Funds; the General Fund,
Special Revenue Funds, Debt Service Funds and Capital Projects Funds. The six major
Governmental Funds within Eagle County Government are the General Fund, the Road and
Bridge Fund, the Eagle Valley Transportation Fund, the Justice Center Financing Authority
Fund, the Airport Fund and the Open Space Fund.
Because the focus of Governmental Funds is narrower than that of the Government-
wide Financial Statements, it is useful to compare the information presented for
Governmental Funds with similar information presented for governmental activities in the
Government -wide Financial Statements. By doing so, readers may better understand the
long -term impact of the government's near -term financing decisions. Both the
Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balances provide reconciliation to facilitate this
comparison between Governmental Funds and Governmental Activities.
Proprietary Funds
Eagle County maintains two different types of Proprietary Funds: Enterprise Funds and
Internal Service Funds. Enterprise Funds are used to report the same functions presented
as business -type activities in the Government -wide Financial Statements. Business -type
activities rely significantly on fees and charges for support. Eagle County Government uses
Enterprise Funds to account for its Sanitary Landfill Fund and Eagle County Airport Terminal
Fund. Internal Service Funds are an accounting method used to accumulate and allocate
costs internally among Eagle County Government's various functions. Eagle County
Government uses Internal Service Funds to account for its fleet of vehicles, casualty
insurance premiums, and for its health insurance plan. Because these services
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predominantly benefit government rather than business -type functions, they have been
included within governmental activities in the Government -wide Financial Statements.
Fiduciary Funds
Fiduciary Funds, also referred to as Agency Funds are used to account for resources
held for the benefit of parties outside the government. Fiduciary Funds are not reflected in
the Government -wide Financial Statement because the resources of those funds are not
available to support Eagle County's own programs.
C. Year -end Closings
Each year the Finance Department shall establish "cut -offs" for processing purchases
and receipts in order to facilitate timely "closings ". The Finance Department is responsible
for preparing two closing reports each year; budget basis and final audited.
Budget Basis
The "budget basis" closing report is probably the most useful for "lay" individuals and
will be produced around the end of March of the beginning of April. This report reflects
revenue receipts through December 31, expenditures invoiced through December 31, and
adjustments (accruals) as included in the budget. This report can be used to make overall
judgments regarding ending position or budget performance.
Final Audit
The "final audited" closing report is the most technical report and is produced after the
auditors 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 judgments regarding ending position but cannot be used very easily to
evaluate budget performance.
D. Departmental Reporting
The finance accounting software, New World Systems, produces activity reports of both
expenses and revenues on demand for each department/office. The Budget Performance
report compares actual month and year -to -date results to both the budget and revised
amended budget. Each Manager, Director and Elected Official is responsible for quality
assurance and monthly review of these reports.
The Finance Department will produce summary and exception reports for the County
Manager and Board of County Commissioners.
Each Department Director and Elected Official is responsible for providing regular
status reports to the County Manager. Also, each Department Director and Elected Official
is responsible for major projects and may be required to provide project status reports to the
Board of County Commissioners. Finance will support these efforts to the extent possible,
given adequate notice.
E. Controls /Audits
The Finance Director will be responsible for producing and distributing both the Annual
Financial Statements and the associated Audit Management Letters. The Board of County
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Commissioners coordinate with Directors and Elected Officials to correct any deficiencies
noted by the external auditors.
The Finance Department is responsible for establishing appropriate internal controls for
all County assets and financial transactions. Special internal audits will be performed by the
Finance Department on a regular basis. These internal audits will include audits for
adequate "back -up" documents, cash drawer balances, proper account coding (for both
expenses and revenues), receivable audits, payable audits, fixed asset audits, etc.
The Finance Department establishes appropriate internal controls based on the
following five standards and as explained in further detail below:
1. Control Environment
2. Risk Assessment
3. Control Activities
4. Information and Communications
5. Monitoring
Control Environment
Management and employees establish and maintain an environment throughout the
organization that sets a positive and supportive attitude toward internal control and
conscientious management.
Risk Assessment
Internal control shall provide for an assessment of the risks the agency faces from both
external and internal sources.
Control Activities
Internal control activities help ensure that management's directives are carried out. The
control activities should be effective and efficient in accomplishing the agency's control
objectives.
Information and Communications
Information is recorded and communicated to management and others within the entity
as needed, in a form and within a time frame that enables them to carry out their internal'
control and other responsibilities.
Monitoring
Internal control monitoring shall assess the quality of performance over time and ensure
that the findings of audits and other reviews are promptly resolved.
In addition to internal controls, the County uses the following three methods for external
review of records, practices, and policies:
1. The Board of County Commissioners employs a Certified Public Accounting firm to
audit the accounting processes on an annual basis. The Finance Department will
assist in preparing materials for the selection of the external auditor as directed by
the County Manager or BoCC.
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2. The County submits audited financial statements and the CAFR to the State
Auditor's Office and the Government Finance Officers' Association for review and
comment.
3. The County submits the Official Budget Book to the State Department of Local
Affairs for review and comment
F. Special Functions
Inter -fund or interdepartmental charges will normally be processed by journals and /or
warrants. 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 always be done unless there is a compelling
financial reason not to.
Administrative Fees
Charges to the Landfill Fund and certain Special Revenue and Enterprise Funds for
administrative costs are calculated using a Full Cost Allocation Plan. Revisions to the Full
Cost Allocation Plan are considered by the BoCC on an annual basis during the budget
process. Administrative Fees are charged to the funds on a monthly basis using a journal
entry.
Motor Pool
Motor Pool short term rental fees, maintenance and fuel of assigned vehicles are
invoiced directly from Motor Pool to the user department. The short-term rental fee is based
on mileage or a minimum set fee as determined by Motor Pool. In addition to applicable
maintenance and fuel charges, assigned vehicles are assessed a replacement reserve fee.
The replacement reserve fee is based on the price of the vehicle less salvage value divided
by the life expectancy as determined by Motor Pool. The assigned vehicle replacement
reserve fees are processed by the Finance Department using a journal entry based on
information sent by Motor Pool. For specifics on rental fees and replacement fees,
reference Fleet Services Motor Pool Rental Policy and Equipment and Fleet Management
Replacement Policy.
Road and Bridge
Charges for services provided by Road and Bridge to other funds, primarily Airport,
Landfill, Capital Improvement and General Fund will be treated as contract services. Road
and Bridge, as a service provider, budgets these revenues and the service receivers budget
the expense as contract services.
Postage
Central postage is absorbed by the General Fund. Postage provided for non - General
Fund departments will be charged to those departments /funds. Currently, the Social
Services Fund is an example of these charges. In addition, certain General Fund programs
are charged because their grants and reimbursements are designed to cover these costs.
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Central Stores
Departments are responsible for ordering their own supplies through the County
approved vendor. Annually, the Finance Department initiates a bid - process where potential
suppliers are invited to bid on supply pricing and the Commissioners approve the selection
of the vendor based on presented criteria from the Finance Department. Coffee for General
Fund Departments is absorbed in the Purchasing Department (146). Non - General Fund
Departments charge coffee to the Administrative Department of their respective funds and
may or may not purchase coffee independently.
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V. EXPENDITURE MANAGEMENT
A. Policy
The County will maintain an aggressive policy of expenditure management. Directors
and Elected Officials must monitor actual expenditures versus budget appropriations for
each requested payment and are responsible for assuring that spending does not exceed
budget authorization.
B. Delegation of Authority
Each Director or Elected Official may delegate authority to staff for the approval of
financial transactions; however, such delegation does not relieve the Director 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 Electronic Time sheets, Purchase Orders,
Invoices, Appropriation Changes, and Expenditure Corrections.
C. Payments to Vendors
Invoices will be entered and approved by the initiating department/office and presented
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 classification" to go "over" budget, does not have adequate authorization, is not
classified correctly, or does not meet any other internal control standard. It is the receiving
Department's Director's responsibility to ensure that all purchases are for legitimate County
business and that expenses conform to the approved budget purpose. All invoices require a
second level of approval at the department level by either the Department Director or an
appointee.
The Finance Department will provide a "hand check" process for emergency spending.
All requested "hand checks" must be approved by the Finance Director, Deputy Finance
Director or an appointee of the Finance Director. The Finance Director will record and report
excess "hand check" activity to the County Manager at least quarterly for remedial
management action.
The Finance Director will review and publish payments to vendors monthly, as required
by statute, in the Eagle Enterprise. All expenditures are authorized weekly by the Board as
part of their regular "consent" agenda. The Board's approval is subject to review by the
Finance Director.
D. Payroll
The payroll function is split between Human Resources and Finance Departments as
explained below.
Human Resources shall be responsible for maintaining all employee information,
including benefit programs /options and wage rates. Finance is responsible for verification of
submitted electronic time sheets and the actual processing of the payroll, including Federal
and State tax filings. All departments /offices must submit individual employee time records
through the EZLaborManager system.
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The Finance Director reviews and publishes payroll data as required by Statute and as
authorized by the BoCC as part of its regular "consent" agenda.
E. Purchasing
Purchasing Authority
There is no central purchasing function at the County. The following is a list of
departments responsible for different functions of purchasing pertaining to the County.
o Motor pool is responsible for the purchase of all vehicles and heavy equipment
(excluding the Airport equipment).
o Facilities 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.
o Airport is responsible for purchasing its own equipment and maintaining its facilities.
o Human Resources is responsible for purchasing all employee benefit programs.
o Finance is responsible for the bidding of paper, coffee and office supplies.
o Information Technology coordinates purchasing computer software and equipment.
Individual departments /offices perform their own purchasing activities for all other
goods and services not explicitly mentioned in the above list.
Bids and Quotations
Any capital item costing more than $20,000 must be formally bid; items costing Tess
than $20,000 should have at least one comparison as supporting documentation.
Any operating item costing more than $20,000 must be formally bid; items costing less
than $20,000 should at least be price- compared.
Unless a particular form of bid is required by statute, grant requirements, contracts,
etc., the BoCC authorizes any of the following forms of "bid" process:
o Sealed Bid
o Request for Proposal (RFP)
o Request for Information (RFI)
o Request for Quotation (RFQ)
o Request for Negotiations (RFN)
o Sole Source
o State Bid
The Facilities Department is responsible for developing procedures regarding the
appropriate use of each authorized process. Further, the evaluation criterion for all bids
and quotations includes at least the following factors:
o Price /costs,
o Adherence to specifications
o Availability /delivery,
o Support, and
o Reliability /capability of vendor.
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Additionally, when there is no material difference between bids /quotations, local vendors
shall be given preference.
Note: Bid requirements may be bypassed due to emergencies; the County Manager
and Finance Director must review and approve /deny all such requests in advance.
The Department Director or Elected Official responsible for any bid process will prepare
a formal recommendation for the award requesting authorization from the BoCC, normally
as part of its 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:
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 cost is
greater than $10,000, and life expectancy is greater than one year including capital
leases.
o Purchases of operating items where the cost exceeds $10,000
Receiving and Inspection
All County supplies, materials, and equipment are to be shipped to and received at a
County facility. Items purchased with County funds are not to be shipped to any employee's
or Official's personal residence or business.
The receiving department/office inspects all goods in a timely manner to assure goods
are in conformance with the order. Any goods not in compliance with the order (such as
damaged goods, goods of unacceptable quality, incorrect quantity, missing parts, etc.) are
returned or resolved with the vendor immediately by the receiving department.
F. Credit Cards
The Eagle County Purchasing Policies have been separately approved by the Board of
County Commissioners and are available on the Eagle County intranet, EcoNet.
G. Cash Advances
Cash advances will only be provided for expenses directly related to the conduct of
official County business. The Department Director and the Finance Director must approve all
cash advances. Within 30 days of receiving a cash advance, the recipient is responsible for
providing supporting documentation for the resulting expenditure and /or returning unused
cash.
H. Refunds
Refunds will be deposited as an ROE (Refund of Expenditure) against the account
number used in the initial purchase. Departments should provide the warrant from the
vendor and the appropriate information to the Finance Department. The Finance
Department designee will enter the information into Revenue Collections and bring both the
Revenue Collection form and the warrant to Treasury for deposit.
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I. Petty Cash
The Finance Department will authorize "cash drawers" (from here on referred to as
petty cash) for County departments /offices as required and in sufficient amounts to conduct
public business. It is the responsibility of each Department Director 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 Tess 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. See Petty Cash Policies and Procedures PO2E
for more details and procedures.
J. Posting Corrections
Due to the volume of transactions processed by the County, data preparation and /or
entry errors may occur and result in the incorrect posting of an expense. Each Department
Director or Elected Official is responsible for review and identification of such errors within
the department and area of responsibility. The Finance Department is responsible for
validating, coordinating and posting the correction of such errors. The Finance Department
establishes procedures as deemed necessary to effectively perform such corrections and
maintains a record of corrections by year and journal.
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•
VI. REVENUE MANAGEMENT
A. Policy
The County follows a policy of prompt and efficient collection of taxes, fees, and other
revenues. The Finance Department and the Treasurer's Office coordinate in the
development of adequate deposit procedures for County Departments.
B. Collection Functions
The Finance Department and Treasurer's Office coordinate collection functions,
including but not limited to:
o Use of collection agencies
o Short check fees
o Late payment charges
o Interest charges
C. Sources and Distribution
The Finance Department is responsible for analyzing the elasticity /diversity of the
revenue stream and for determination of cash distribution or transfers to and from Funds.
D. Grant Revenue
Each department shall be responsible for preparation of grant proposals and for
complying with all grant management and reporting requirements. Each department is also
responsible for providing all necessary grant information to the County's Deputy Finance
Director immediately upon receipt of the grant award and during the course of the audit to
the external auditor.
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VII. INSURANCE & RISK MANAGEMENT
A. Policy
The County Manager has split the insurance /risk management functions as follows:
Property and Casualty Insurance -> Facilities
Worker's Compensation Insurance - Human Resources
B. Division of Responsibility
The Facilities Department is responsible for Property and Casualty Insurance and
performs the following related functions:
o Develops and maintains the operating policies and procedures.
o Maintains adequate systems for preventing, controlling, and reporting
q X p g, 9, 9. p 9
all insurance matters.
o Processes and reviews all claims.
o Provides appropriate loss control and safety programs.
o Reviews the insurance /risk management programs at least annually.
o Evaluates and bids insurance services at least every five years.
The Human Resources Department is responsible for Worker's Compensation
Insurance and performs the following related functions:
o Develops and maintains the operating policies and procedures.
o Maintains adequate systems for preventing, controlling, recording, and reporting
all insurance matters.
o Processes and reviews all claims.
o Provides appropriate loss control and safety program
o Reviews the insurance /risk management program at least annually.
o Evaluates and bids 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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VIII. PERSONNEL ADMINISTRATION
A. Policy
The Human Resources Department maintains adequate systems for controlling,
recording, and reporting information related to employee recruiting and management.
B. Employment Policies and Procedures
Employment policies and procedures are developed, implemented, and coordinated by
the Human Resources Department. The "Eagle County Employee Handbook" includes 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. The Employee
Handbook shall be available for all employees in the Human Resources Department and on
the Eagle County intranet, EcoNet.
C. Benefit Programs
Employee benefit programs, such as health insurance, life insurance, retirement, long
term disability, etc., are administered by the Human Resources Department. The Human
Resources Director reviews and submits recommendations regarding the employee benefit
programs in conjunction with the annual budget preparation process. All employee benefit
programs must be approved by the Board of County Commissioners.
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 are performed annually by the Human
Resources Department; complete evaluation of the effect of market changes on the
classification system are 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 of "wage and benefit projection systems" to
facilitate the accuracy of budgeting and tracking personnel costs. All additional FTEs must
be approved by the Board as part of the budget process. Increases of individual wages and
increases of FTEs during the budget year must also be approved by the Finance Director,
the County Manager and the Board in advance of any increases granted. Additionally, wage
and benefit and turnover reports are prepared and submitted to the County Manager as
requested. Complete merit system performance reports shall be prepared and submitted to
the County Manager on a quarterly basis.
E. Training Programs
Annually, the Human Resources Department develops and coordinates County wide
training programs based on budgeted funding and specific needs analysis of training
requirements. Reports regarding implementation /effectiveness /cost/benefit of training
programs are prepared and submitted to the County Manager at least quarterly.
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/selection procedures and strategies to assure the availability of
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competent candidates. Reports regarding implementation /effectiveness of retention/
recruitment programs are prepared and submitted to the County Manager at least quarterly.
G. Offer Letters and Termination Agreements
All non - standard offer letters and all termination agreements shall be approved by the
County Attorney prior to being discussed or executed.
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IX. DEBT MANAGEMENT
A. Policy
The Finance Department maintains adequate systems for controlling, recording, and
reporting to properly manage all debt; this includes both County originated debt and Local
Improvement District originated debt. Debt management includes bonded debt, lease
purchases, certificates of participation, and any other forms of debt. These programs are
reviewed at least annually.
B. Structure
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 recommendations 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 four forms:
1. General Obligation Bonds
2. Revenue Bonds
3. Certificates of Participation
4. Lease /purchase Agreements
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 review.
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.
Certificates of Participation
Certificates of Participation represent a commitment by the County to fund a non -
binding lease with an outside authority. The lease payments are made from unrestricted
funds.
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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X. FIXED ASSET MANAGEMENT
A. Capitalization Policy
All assets acquired and owned by the County having a value of $10,000 or more and a
life expectancy of greater than one year as well as capital leases are considered a fixed
asset by the Finance Department.
B. Care of Assets
Department Directors 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 Director and Elected Official take a physical inventory of all assets including
fixed assets within their department as identified in the County financial records; the Finance
Department "audits" the asset inventories of selected departments /offices.
The Motor Pool develops and maintains 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 Facilities
Department for disposal. The Facilities Department must advertise and then sell these items
formally.
Surplus items which are included as fixed assets shall be forwarded to the Facilities
Department for disposal. The Facilities Department must use the formal process statutorily
required for the disposal of fixed assets. Each Department Director or Elected Official
releasing surplus fixed assets must notify the Finance Department of asset numbers of the
affected items by completing an asset disposal form.
Prior to advertising the sale of any assets, the Facilities Department shall circulate a list
of the items to each Department Director and Elected Official. Any Department Director 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 motor parts, are expensed when
purchased. Any amount of the purchased commodity that is not consumed at year end will
be treated as an asset (inventory) in the annual financial reports. The Finance Department
is responsible for determining which commodities are treated in this manner.
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XI. CONTRACT REQUIREMENTS
A. Policy
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 cost is
greater than $10,000, and life expectancy is greater than one year including
capital leases.
o Purchases of operating items where the cost exceeds $20,000.
If there is any doubt regarding the need for a formal agreement (contract), contact the
Attorney's Office for guidance and direction.
B. Terms and Conditions
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 -100% of the contract price at the signing of the
agreement or delivery of the program product.
o Vendors providing labor intense services often want to charge by the hour for
labor rather than when some part of the project is complete.
The Department Director 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 Director or Elected Official is responsible for
providing the Attorney's Office with completed copies of each contract signed.
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XII. CODE OF PROFESSIONAL ETHICS
A. Policy
The Finance Department uses the Government Finance Officers Association "Code of
Professional Ethics" for guidance in ethical matters. Specifically, the following sections are
readily applicable to the Department's ethical operations:
o Professional Integrity- Information
o Professional Integrity- Relationships
o Conflict of Interest
B. Government Finance Officers Association "Code of Professional Ethics"
IV. Professional Integrity- Information
Government finance officers shall demonstrate professional integrity in the issuance
and management of information.
o They shall not knowingly sign, subscribe to, or permit the issuance of any
statement or report which contains any misstatement or which omits material
fact.
o They shall prepare and present statements and financial information pursuant to
applicable practices and guidelines.
o They shall respect and protect privileged information to which they have access
by virtue of their office.
o They shall be sensitive and responsive to inquiries from the public and the
media, within the framework of state or local government policy.
V. Professional Integrity- Relationships
Government finance officers shall act with honor, integrity and virtue in all professional
relationships.
o They shall exhibit loyalty and trust in the affairs and interests of the government
they serve, within the confines of this Code of Ethics.
o They shall not knowingly be a party to or condone any illegal or improper activity.
o They shall respect the rights, responsibilities and integrity of their colleagues and
other Public Officials with whom they work and associate.
o They shall manage all matters of personnel within the scope of their authority so
that fairness and impartiality govern their decisions.
o They shall promote equal employment opportunities, and in doing so, oppose
any discrimination, harassment, or other unfair practices.
VI. Conflict of Interest
Government finance officers shall actively avoid the appearance of or the fact of conflicting
interests.
o They shall discharge their duties without favor and shall refrain from engaging in
any outside matters of financial or personal interest incompatible with the
impartial and objective performance of their duties.
o They shall not, directly or indirectly, seek or accept personal gain which would
influence, or appear to influence, the conduct of their official duties.
o They shall not use public property or resources for personal or political gain.
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XIII. POLICY REVISIONS
This Financial Policies Manual shall be reviewed by the Finance Director, the County
Manager and the Board in January of each year and may be amended as conditions
warrant. Mid -year amendments to this Policy may be updated by the Finance Director as
necessary, with approval from the County Manager and the Board.
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