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Audit Presentation Option 2 CITY OF MERIDIAN ORDINANCE NO. BY THE CITY COUNCIL: BIRD, BORTON, ROUNTREE, WARDLE AN ORDINANCE AMENDING TITLE 1, CHAPTER 9, SECTION 3 OF THE MERIDIAN CITY CODE REGARDING THE PRESENTATION OF THE ANNUAL AUDIT; AND PROVIDING FOR A SUMMARY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO: Section 1. hereby amended. That Title 1, Chapter 9, Section 3 of the Meridian City Code is 1-9-3: FISCAL POLICY; BUDGET: A. Budget Policy: 1. The purpose of the budget is to help the public understand the costs of services and how they relate to the services provided by the City. This budget shall also serve the purpose of advising the City Council and Mayor about the finances of the City and assist the City Council in determining what they desire to do for the City and in setting its goals. The City Treasurer shall meet the provisions of Idaho Code section 50-208, and shall be custodian of the monies belonging to the City, shall be responsible for all accounting and investing of the City's funds, and shall prepare and present to the City Council monthly statements and tentative annual budgets in accordance with this Section. The annual budget shall show expenditures and revenues as required in Idaho Code section 50-1002. 2. The City Treasurer shall keep a separate account of each fund or appropriation, and the debits and credits belonging thereto; he or she shall give a receipt to every person and state on what account it was paid, shall file copies of such receipts with his or her monthly statement, shall at the end of each month and every month, and as often as may be required, render an account to the City Council under oath, showing the status of the Treasury at the date of such accounting and the balance of money in the Treasury; he or she shall accompany such accounts with a statement of all receipts and disbursements, together with all warrants redeemed and paid by him or her, which said warrants, with any and all vouchers held by him or her, shall be filed with said account in the Clerk's office. AMENDMENT OF THE PRESENTATION OF CITY'S ANNUAL AUDIT Page 1 of 4 B. Fiscal Year: The fiscal year for the City shall begin on October 1 as set out in Idaho Code section 50-1001. C. Monthly Budget: 1. The monthly budget shall set out the status of revenues and expenditures. The monthly budget shall contain figures of expenditures indicating the total funds budgeted for the year and amounts spent through the date of the monthly budget statement and the amount of revenue collected. The monthly budget shall show the balance of all general accounts, special accounts, enterprise funds, and any other dedicated accounts or funds as established by the City Council. This budget shall be broken down into, and by, departments in sufficient detail to allow the City Council to be able to determine where the funds are being expended, i.e., salaries, equipment, services, etc. 2. This monthly budget statement shall be submitted to the City Council prior to their second monthly meeting, as set out in Idaho Code section 50-208 and shall show the balance, including interest, of all general accounts, special accounts, water and sewer enterprise accounts, and all other dedicated funds as established by the City Council. D. Annual Budget: 1. At least sixty (60) days before the annual appropriation ordinance is due, the City Treasurer/City Clerk shall submit a tentative annual budget to assist the City Council in budget preparation. This tentative annual budget shall contain such expenditures as dictated to the Treasurer by a majority vote of the City Council. If there are no projections provided, the Treasurer shall make projections based on established City policy. The tentative annual budget shall be for the coming fiscal year. The City Council shall begin budget workshops ninety (90) days prior to when the appropriation ordinance is due and shall hold such necessary workshops until the Treasurer is provided with the budget projections or until sixty (60) days prior to the appropriation ordinance due date at which time the Treasurer shall submit such projections as set out in this Section. The tentative budget shall show the following items: a. Anticipated expenditures, with at least as much detail as set out in the tax levy ordinance and the appropriation ordinance. b. Anticipated revenues to be allocated to each department, including fees, taxes, charges, income from utilities and any other source of income. c. Depreciation costs for enterprise assets. d. Such other detail that is requested by a majority vote of the City Council. AMENDMENT OF THE PRESENTATION OF CITY'S ANNUAL AUDIT Page 2 of 4 2. The tentative budget as prepared by the City Treasurer shall be advisory and not binding on the City Council. Only upon passage of an appropriation ordinance shall such budget become binding. The expenditures in the budget shall not exceed revenues unless otherwise provided as set forth in the Idaho Code section 50-1006. 3. October 20 shall be the cut-off date for late submittal of bills that will be paid by the City in the previous fiscal year and purchases by the City shall be made prior to that date. Contracts may require that bills be paid and purchases made in the following fiscal year and those matters shall be handled as carryover items shown in the budget for the next year. 4. Idaho Code section 50-1 005A states that cities may accumulate fund balances at the end of a fiscal year and carry over such fund balances into the ensuing fiscal year sufficient to achieve or maintain City operations on a cash basis. A fund balance is the excess of the assets of a fund over its liabilities and reserves. Balances that are carried over shall go into the appropriate fund, but may be used to fund the City Department that had the fund carryover from the previous fiscal year. E. Audits: 1. It shall be the duty ofthe City Council to have a complete and thorough audit of the financial statements ofthe City as set out in Idaho Code sections 67-450B and 50- 1010. The expenses required to obtain such an audit shall be included in the City annual budget. The City Treasurer shall submit the necessary financial statements to the auditor no later than December 1 following the end of the fiscal year. The City Council, by a majority vote, shall appoint a qualified certified public accounting (CPA) firm to conduct such an audit. The CPA firm shall be hired for a time period not to exceed two (2) years at which time the City Council shall either renew such period or hire another qualified CPA firm. Such audit shall be submitted to the City Council no later than January 5 followi1'lg the end of the 2nd quarter of the fiscal year. 2. The City Council shall retain the right to order the Treasurer or a qualified CPA firm to conduct internal audits as frequently and as necessary as may be needed. F. Performance Audit: As the City Council deems necessary, the City Council shall appoint a certified CPA firm or consulting firm to conduct a performance audit for all specified departments. This performance audit shall be as extensive and detailed as the City Council deems necessary. Section 2. That all ordinances, resolutions, orders, or parts thereof or in conflict with this ordinance are hereby voided. Section 3. That pursuant to the affirmative vote of one-half (112) plus one (1) of the Members of the full Council, the rule requiring two (2) separate readings by title AMENDMENT OF THE PRESENTATION OF CITY'S ANNUAL AUDIT Page 3 of 4 and one (1) reading in full be, and the same is hereby, dispensed with, and accordingly, this Ordinance shall be in full force and effect after its passage, approval and publication. PASSED by the City Council of the City of Meridian, Idaho, this day of , 2006. of APPROVED by the Mayor of the City of Meridian, Idaho, this day , 2006. APPROVED: MAYOR ATTEST: CITY CLERK AMENDMENT OF THE PRESENTATION OF CITY'S ANNUAL AUDIT Page 4 of 4 NOTICE AND PUBLISHED SUMMARY OF ORDINANCE PURSUANT TO I.C. ~ 50-901(A) CITY OF MERIDIAN ORDINANCE NO. 06- PROVIDING FOR AN AMENDMENT OF THE PRESENTATION OF THE CITY'S ANNUAL AUDIT An Ordinance ofthe City of Meridian amending Title 1, Chapter 9, Section 3 of the Meridian City Code. A full text of this ordinance is available for inspection at City Hall, City of Meridian, 33 East Idaho, Meridian, Idaho. This ordinance shall become effective upon the passage and publication. Mayor and City Council of the City of Meridian By: William G. Berg, Jr., City Clerk First Reading: Adopted after first reading by suspension of the Rule as allowed pursuant to Idaho Code 50-902: YES NO Second Reading: Third Reading: STATEMENT OF MERIDIAN CITY ATTORNEY AS TO ADEQUACY OF SUMMARY OF ORDINANCE NO. 06- The undersigned, William L.M. Nary, City Attorney of the City of Meridian, Idaho, hereby certifies that he is the legal advisor of the City and has reviewed a copy of the attached Ordinance No. 06- of the City of Meridian, Idaho, and has found the same to be true and complete and provides adequate notice to the public pursuant to Idaho Code ~ 50-901A (3). DATED this day of , 2006. William. L.M. Nary, City Attorney AMENDMENT OF THE PRESENTATION OF CITY'S ANNUAL AUDIT Page 1 of 1