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HomeMy WebLinkAbout03-399 Cash Receipt Policy RESOLUTION NO. 0$ - .J99 BY: ;::ø¡I£; /hi-L A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN TO PROVIDE FOR FINDINGS AND TO ESTABLISH A CASH RECEIPTS PROCEDURE POLICY FOR THE FINANCE DEPARTMENT FOR THE CITY OF MERIDIAN; PROVIDING FOR THE FOLLOWING: PURPOSE, DEFINITIONS, DEPARTMENT GUIDELINES, MUNICIPAL UTILITY BILLING DEPARTMENTS DUTIES AND RESPONSIBILITIES, BUILDING DEPARTMENT DUTIES AND RESPONSIBILITIES, PLANNING AND ZONING DEPARTMENT DUTIES AND RESPONSIBILITIES, CITY CLERK DUTIES AND RESPONSIBIILES, PARK AND RECREATION DEPARTMENT DUTIES AND RESPONSIBILITIES, POLICE DEPARTMENT DUTIES AND RESPONSIBILITIES, AND ACCOUNTING DEPARTMENT DUTIES AND RESPONSIBILITIES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Mayor and Council have the authority [pursuant to lC. § 50- 302] to establish resolutions not inconsistent with the laws ofthe state ofIdaho as may be expedient, in addition to the special powers therein granted, to maintain the peace, good government and welfare of the corporation and its trade, commerce and industry; and WHEREAS, the Mayor and Council have deemed it expedient and in the best interests of the City of Meridian to establish a Cash Receipts Procedure Policy for the Finance Department for the City of Meridian so that there will be a guideline for all money collected anywhere by the City of Meridian on how to handle and account for such monies and that such policy would be based on the principals of good control and in accordance with generally accepted accounting standards. WHEREAS, the Cash Receipts Procedure Policy shall incorporate definitions on Internal Control, Cash Receipts, Generally Accepted Accounting Standards, and Governmental Accounting Standards Board, and there shall be basic guidelines for all departments to follow when handling monies received. RESOLUTION FOR CASH RECEIPTS PROCEDURE POLICY FOR FINANCE DEPARTMENT FOR THE CITY OF MERIDIAN WHEREAS, the Cash Receipts Procedure Policy shall instruct the Municipal Utility Billing Department (MUBS) on billing and collection ofthe monthly sewer and water and miscellaneous billings, and especially in the areas of counter receipts, mail receipts, daily reconciliation, bank deposits, accounting system, and billing adjustments. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Building and/or Public Works Department on the collection oflicense sales, review fees, impact fees, water and sewer assessment and building permit fees, and additionally pertaining to permits and assessments, miscellaneous receipts, accounting system, and month-end reconciliation. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Planning and Zoning Department on service fee charges and collections of fees for a variety of permits and services, including but not limited to rezones, conditional use permits, variances, comprehensive plan amendments, plat reviews, and staff reviews and inspections. Additionally, the policy shall instruct the department on the necessary steps to follow after commitment has been made to perform a service, which includes an accounting system. WHEREAS, the Cash Receipts Procedure Policy shall instruct the City Clerk Department on the procedure pertaining to the collection of miscellaneous receipts, as well as the accounting system. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Parks and Recreation Department on the procedure pertaining to its department's collection offees for City recreation classes and for reserving park space when payments are made with cash, check, money order or credit card. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Police Department pertaining to the collection of fees for parking fines, VIN inspections, false alarms, school resource officers, room rentals, copies of reports, dog tags, and impound fees and what steps are to be followed in processing the monies received. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Accounting Department on each receipt for billed invoices and the procedure the department shall follow. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO as follows: SECTION 1. Pursuant to Idaho Code §50-301 et seq., the Mayor and City Council hereby adopt the City of Meridian Cash Receipts Procedure Policy for the Finance Department for the City of Meridian, a copy of which is attached hereto and by this reference incorporated herein. A copy of this Resolution and the attached City of Meridian Cash Receipts Procedure Policy shall be held on file in the office of the City Clerk. RESOLUTION FOR CASH RECEIPTS PROCEDURE POLICY FOR FINANCE DEPARTMENT FOR THE CITY OF MERIDIAN 2 ;ìECTION 2: EFFECTIVE DATE. This Resolution shall be in full force and effect on ¡:::¿b;ú~":"j ¡fj-l!:: ,2003. fj'/. PASSED BY THE COUNCIL OF THE CITY OF MERIDIAN, IDAHO, this I - day of h6rf-t ~ YfIJ ,2003. - ./ APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, IDAHO, this / f}1!: day of ¡=-¿6 ;-KAy", , 2003. - ../ fik -ri) ~; Robert D. Corrie ATTEST: RESOLUTION FOR CASH RECEIPTS PROCEDURE POLICY FOR FINANCE DEPARTMENT FOR THE CITY OF MERIDIAN CITY OF MERIDIAN CASH RECEIPTS PROCEDURE FINANCE DEP AR TMENT ¡:¿6rut:tY"IIB'¡ ¡ultJ 3 (/ , ¡¿(!JoIJ/~ ;tIC3- 399 Adopted Purpose All money collected anywhere by the City of Meridian should be handled and accounted for using procedures that are based on the principals of good controls and in accordance with generally accepted accounting standards. Definitions Internal Control: Measures employed for the purpose of safeguarding resources against waste, fraud, and inefficiency: promoting accuracy and reliability in accounting and operating data: encouraging and measuring compliance with policy and judging the efficiency of operations. Cash internal controls provide assurance that: . All cash that should have been received was in fact received and recorded promptly and accurately. . Cash disbursements have been made only for authorized business purposes and have been recorded promptly and accurately. . Cash on hand and in the bank is accurately stated and subject to appropriate safeguards. Cash Receipts: Receipt of coin, currency, checks, warrants, money orders, cashier checks, or EFT wire transfers. Generally Accepted Accounting Standards: Conventions, rules, and procedures necessary to describe accepted accounting practice at a particular time. The objective is to record and report financial data to accurately reflect an organizations financial condition. Governmental Accounting Standards Board: The authoritative board that issues generally accepted accounting principals for state and local governments. 1. Basic Guidelines for All Departments A. Every walk-in customer who delivers cash or checks must be given a receipt. B. Accounting will distribute receipt books. Receipt books will be pre- numbered and three part. When customers pay in person, one part will always be given to the customer, one part retained with the cash, and one part retained in the receipt book. The Treasurer will record starting numbers of assigned receipt books. The Treasurer will test receipt books to see that all receipt numbers are accounted for. C. The physical custody of cash must be separate ftom the entry or recording of cash in the accounting or billing system. D. Daily cash receipts must be reconciled to daily account postings. E. All bank statements must be reconciled monthly. F. The Finance Director will review and sign off on all monthly cash reconciliation's, G. Cash deposits should be made daily and must be made no less ftequently than weekly. H. When a receipt is voided, one part is retained in the receipt book, and the other two parts are to be sent to accounting with the daily deposit. 1. Every cash receipt location will post a sign that says "Remember to ask for a cash receipt!" 1. No employee checks will be cashed. No checks are to be written to the City that requires cash back. II. Municipal Utility Billing Department The Municipal Utility Billing Department (MUBS) bills and collects monthly sewer and water sales, and miscellaneous billings. MUBS billing system is CASELLE. This system does not electronically interface with the accounting system; entries into the accounting system are entered manually. A. Counter Receipts i. Any MUBS employee can take counter receipts. The employee enters the receipt in the Billing system and generates a two-part computer receipt. One copy is given to the customer the other copy is retained. ii. Cash and/or checks may be put into the drop box. The receipt is the statement. Leaving currency and coins in the drop box is discouraged. 2 iii. At the end of the day the counter and drop box checks are added to the mail receipts to make up the daily deposit. B. Mail Receipts i. Opening mail is assigned to the Customer Service Representative position, but in their absence might be opened by any MUBS staff person. ii. The Customer Service Representative opens the mail, writes the account number on the check, and stacks the check and receipts together. The Customer Service Representative runs two tapes on each stack of checks, verifying that the totals equal, initials and dates the tapes. iii. The checks, tapes, and receipts are given to the Data Entry Operator to enter. The Data Entry Operator enters the receipts into the Utility Billing System and compares the computer total to the check total. Once the computer total equals the tape total the Data Entry Operator initials the tape "entered by" and the date. Once both totals agree the checks, tapes, receipts, and computer generated receipt report are returned to the Customer Service Representative who scans the checks and receipts. vi. The Customer Service Representative posts and updates the day's receipts in the Utility Billing System. The Cash Receipting module updates into the Utility Billing module. vii. The Customer Service Representative locks the day's cash and receipts in the fireproof safe. C. Daily Reconciliation i. At the end of the day the Customer Service Representative opens and balances the cash drawer. This person does not do any data entry. ii. The Billing Manager or Billing Administrator compiles the day's checks and cash and prepares the bank deposit. The cash is generally deposited the day after receipt. The Billing Manager or the Billing Administrator verifies that the check and cash deposit agrees to the Billing System cash report. They make sure that the cash total on the deposit equals the systems cash total and the check total on the deposit equals the systems check total. 3 D. Bank Deposit i. Once the cash and checks are reconciled to the system the money, the calculator tapes, and the reconciliation are given to the Payroll Accounting Specialist. The Payroll Specialist takes the deposit to the bank. E. Accounting System i. The deposit slip, the manual reconciliation fonn, and the system cash/checks report go to the accounting department Accounts Payable Specialist. The Accounts Payable Specialist enters the cash receipt into the accounting system, verifying the Caselle posting to the cash deposited. F. Billing Adjustments i. Accounts can be adjusted for errors (payments entered in wrong account) or written off (bankruptcy, not sufficient fund checks, bad debt). ii. If an adjustment is required an adjustment fonn is completed and given to the Billing Manager or Billing Supervisor. iii. The Billing Manager must approve all adjustments. The Finance Director must approve write-offs or adjustments of $500 or more. iv. Once the adjustment has been approved the Billing Administrator or Billing Manager in the Billing System will enter the transaction. Only the Billing Administrator or Manager has the security needed to enter adjustments. v. The adjustment will be forwarded to accounting for entry into the accounting system. No adjustment will be made unless the appropriate signatures are on the fonn. III. Building Department The Building Department collects license sales, Public Works review fees; impact fees, water and sewer assessments and building permit fees. Building permits are calculated and invoices generated on the PTWin system. Sales are point-to-point, no receivable generated. This system does not interface with the accounting system, entered into the accounting system manually. The Building Department maintains a cash drawer of $200. 4 A. Permits and Assessments - Building Department/Public Works i. When assessments and building permits are sold the permit system generates an invoice. One copy is retained in the building department and the other copy is given to the customer. ii. At the end of the day the permit system generates a report with the number of permits and assessments sold the dollar amount and a total. iii. The Building Department runs a tape on the day's receipts, stamps and dates the tape, reconciles it to the daily permit report and forwards the money, the tape, and the report to the accounting department. iv. The cash drawer is balanced daily. v. The building department will maintain all copies of the building permits. Exception - Accounting must get copies of any permits that will require the City to payout money i.e., Commercial, Park Impact (Bear Creek), and Latecomers B. Misc Receipts - Building Department/Public Works i. Non-building permits misc receipts will be included in the building department's daily deposit. ii. The building department will issue a three-part receipt, retaining one copy, giving the customer a copy, and forwarding the third copy with the money sent to the accounting department. C. Accounting System i. The accounting department Treasurer will summarize the building department's receipts on an Excel spreadsheet and verify the tape. ii. The money will be given to the accounting department Payroll Specialist who will make the daily deposit. iii. The deposit slip is returned to the Accounts Payable Specialist who enters the deposit in the accounting system with the date of the deposit and files the documents. D. Month-end Reconciliation i. At the end of the month the Accounts Payable Specialist sends the Building Department Supervisor the general ledger reports with the amounts posted to their various revenue accounts. 5 ii. The Building Department Supervisor reconciles the PTWin building permit system to the General Ledger. III. Planning and Zoning Department Service Fees - P & Z charges and collects fees for a variety of permits and services including but not limited to rezones, conditional use permits, variances, comprehensive plan amendments, plat reviews, staffs reviews and inspections. A. Once a Planner has committed to perform a particular service a Planning and Zoning/Public Works Fees worksheet is completed by the Department Specialist. This is an Excel spreadsheet that calculates the total fee. B. The Department Specialist collects the customer's fee and writes a receipt from the pre-numbered receipt book, one copy goes to the customer, one part goes with the cash, and the third copy remains in the receipt book. C. On a daily basis the P/Z Department Specialist will add the worksheets and the cash and make sure they agree. D. On a daily basis the cash, copy of the Excel worksheet, and the receipts are given to the Building Department to be delivered to the accounting department for deposit and entry into the accounting system. E. Accounting System i. The accounting Treasurer will verify that the checks and cash equal the receipts and check for any applicable sales tax. ii. The money will be given to the Payroll Specialist who will make the daily deposit. iii. The deposit slip is returned to the Accounts Payable Specialist who enters the deposit in the accounting system with the date of the deposit and files the documents. v. City Clerk Department The City Clerk's Department receives miscellaneous receipts for items such as beer, wine and liquor licenses, liquor catering permits, permits for vendors, peddlers and solicitors, fireworks permits, massage licenses, background checks, copies and various deposits for bonding of fences, landscaping etc. 6 A. Collection of Miscellaneous Receipts i. The City Clerk Office Staff receipts the money using a pre-numbered three-copy receipt book. The customer receives a receipt, one copy is maintained in the receipt book and the original goes to accounting with the cash. ii. On a daily basis the receipts and cash go to the accounting department for deposit and entry into the accounting system. B. Accounting System i. The accounting Treasurer will verify that the checks and cash equal the receipts and check for applicable sales tax. ii. The money will be given to the accounting department Payroll Specialist who will make the daily deposit. iii. The deposit slip is returned to the Accounts Payable Specialist who enters the deposit in the accounting system with the date of the deposit and then files the documents. VI. Parks and Recreation Department The Parks and Recreation Department collects fees for City recreation classes and for reserving park space. Payments are made with cash, check, money order, or credit card. A. When customers walk in and pay over the counter they receive a receipt, one part will be forwarded to accounting, the third copy will be retained the receipt book. B. The fees are entered into the Parks Recreation Department software. On a daily basis the summary sheet and the cash/checks are delivered to the accounting department. The accounting department makes the bank deposit and enters the cash and sales into the accounting system. The same separation of duties discussed above between the accounting Payroll and Accounts Payable Specialists is applicable. C. Mail receipts - Class registration and park reservations may be sent in by mail. The Parks Department Specialist enters them into the Parks Recreation 7 Department software and forwards to the accounting department for deposit and entry into the accounting system. D. Credit Card Sales - registration and park reservations can be paid for with credit cards in person or over the phone. Walk-in customers receive one copy; the other copy is forwarded to accounting. Accounting posts as a cash receipt net of the merchant fee. VII. Police Department The Police Department collects fees for parking fines, VIN inspections, false alarms, school resource officers, room rentals, copies of reports, dog tags, and impounds fees. A. Three part receipts are written for walk-in customers, one copy goes to the customer, one part will be forwarded to the accounting department, and the third copy will be retained in the receipt book. B. Fees sales are entered daily into an Excel spreadsheet. The summary sheet and the cash are delivered to the accounting department who prepare the deposit, and enter into the accounting system. C. Several software systems exist for different types of fees: 1. Parking Tickets - Entered into the Spillman Law Enforcement Data Base. 2. Dog Tags - Entered into the Petware data tracking system. 3. False Alarm Fees - Entered in a stand-alone data base system. VIII. Accounting Department - Receipt for Billed Invoice A. Any service provided by the City that is not paid at the time of service must be invoiced. Departments may prepare their own invoices but must send them to accounting to be entered into the accounting system and reported as account receivable. Accounting will mail invoices to the customer. B. Invoices should be sent to accounting electronically. Accounting will ensure that the customer is directed to send the cash to City Hall, the return address is correct, dollar amounts are calculated correctly, and the invoice is numbered. 8 C. Examples of services billed through the accounting department include latecomer's agreements, sewer and water assessments, dog licenses, overtime inspections, and septic dumping. D. When payment comes to the accounting office the Accounts Payable Specialist will write a two-part receipt. The original goes with the check to the Payroll Specialist who prepares the bank deposit; the yellow copy is attached to the invoice and filed. E. The Payroll Specialist makes the deposit, and returns the deposit slip to the Accounts Payable Specialist who enters the payments in the accounting system. F. Reconciliation 1. Bank Statements - payroll, money market, and checking account. The Treasurer is responsible for balancing monthly bank statements. After completion of the reconciliation the Accountant will enter the interest and any adjustments. Adjustments include: NSF: Accountant will post into the suspense account #14100, make a copy and give to appropriate department Municipal Billings- posts the NSF check back into their accounts receivable system CASELLE as a billing adjustment Building Department- puts hold on the building certificate of occupancy until payment for the returned check is received. EFT payments Interest Earnings Bank Fees The Finance Director must review and sign off on the cash reconciliation's. ii. 111. G. The Finance Director reviews cash and investment accounts on a monthly basis. 9 CERTIFICATE OF CLERK OF THE CITY OF MERIDIAN I, the undersigned, do hereby certify: 1. That I am the duly appointed and elected Clerk of the City of Meridian, a duly incorporated City operating under the laws of the State of Idaho, with its principal office at 33 East Idaho, Meridian, Idaho. 2. That as the City Clerk of this City, I am the custodian of its records and minutes and do hereby certify that on the / ß'I:! day of ,F.IórlA4YI1 , 2003, the following action has been taken and authorized. J A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN TO PROVIDE FOR FINDINGS AND TO ESTABLISH A CASH RECEIPTS PROCEDURE POLICY FOR THE FINANCE DEPARTMENT FOR THE CITY OF MERIDIAN; PROVIDING FOR THE FOLLOWING: PURPOSE, DEFINITIONS, DEPARTMENT GUIDELINES, MUNICIPAL UTILITY BILLING DEPARTMENTS DUTIES AND RESPONSIBILITIES, BUILDING DEPARTMENT DUTIES AND RESPONSIBILITIES, PLANNING AND ZONING DEPARTMENT DUTIES AND RESPONSIBILITIES, CITY CLERK DUTIES AND RESPONSIBIILES, PARK AND RECREATION DEPARTMENT DUTIES AND RESPONSIBILITIES, POLICE DEPARTMENT DUTIES AND RESPONSIBILITIES, AND ACCOUNTING DEPARTMENT DUTIES AND RESPONSIBILITIES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Mayor and Council have the authority [pursuant to I.C. § 50- 302] to establish resolutions not inconsistent with the laws of the state of Idaho as may be expedient, in addition to the special powers therein granted, to maintain the peace, good government and welfare ofthe corporation and its trade, commerce and industry; and WHEREAS, the Mayor and Council have deemed it expedient and in the best interests of the City of Meridian to establish a Cash Receipts Procedure Policy for the Finance Department for the City of Meridian so that there will be a guideline for all money collected anywhere by the City of Meridian on how to handle and account for such monies and that such policy would be based on the principals of good control and in accordance with generally accepted accounting standards. WHEREAS, the Cash Receipts Procedure Policy shall incorporate definitions on Internal Control, Cash Receipts, Generally Accepted Accounting Standards, and Governmental Accounting Standards Board, and there shall be basic guidelines for all departments to follow when handling monies received. CERTIFICATE OF CLERK PAGE 1 OF 3 WHEREAS, the Cash Receipts Procedure Policy shall instruct the Municipal Utility Billing Department (MUBS) on billing and collection of the monthly sewer and water and miscellaneous billings, and especially in the areas of counter receipts, mail receipts, daily reconciliation, bank deposits, accounting system, and billing adjustments. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Building and/or Public Works Department on the collection oflicense sales, review fees, impact fees, water and sewer assessment and building permit fees, and additionally pertaining to permits and assessments, miscellaneous receipts, accounting system, and month-end reconciliation. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Planning and Zoning Department on service fee charges and collections offees for a variety of permits and services, including but not limited to rezones, conditional use permits, variances, comprehensive plan amendments, plat reviews, and staff reviews and inspections. Additionally, the policy shall instruct the department on the necessary steps to follow after commitment has been made to perform a service, which includes an accounting system. WHEREAS, the Cash Receipts Procedure Policy shall instruct the City Clerk Department on the procedure pertaining to the collection of miscellaneous receipts, as well as the accounting system. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Parks and Recreation Department on the procedure pertaining to its department's collection offees for City recreation classes and for reserving park space when payments are made with cash, check, money order or credit card. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Police Department pertaining to the collection of fees for parking fines, VIN inspections, false alarms, school resource officers, room rentals, copies of reports, dog tags, and impound fees and what steps are to be followed in processing the monies received. WHEREAS, the Cash Receipts Procedure Policy shall instruct the Accounting Department on each receipt for billed invoices and the procedure the department shall follow. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO as follows: SECTION 1. Pursuant to Idaho Code §50-301 et seq., the Mayor and City Council hereby adopt the City of Meridian Cash Receipts Procedure Policy for the Finance Department for the City of Meridian, a copy of which is attached hereto and by this reference incorporated herein. A copy of this Resolution and the attached City of Meridian Cash Receipts Procedure Policy shall be held on file in the office of the City Clerk. CERTIFICATE OF CLERK PAGE 2 OF 3 SECTION 2: EFFECTIVE DATE. This Resolution shall be in full force and effect on F.eh",I/.ý-/.f Iß-tA; ,2003. v STATE OF IDAHO, : ss: County of Ada. ) On this i~,J .... day of ~~ ' 2003, before me, 2h(}Mý¡(ki:h-- -' a Notary Pubhc, appeared WILLIAM G. BERG. JR., known or identified to me, respectively, to be the City Clerk of the City of Meridian, Idaho, that executed the said instrument, and acknowledged to me that he executed the same on behalf of the City of Meridian. SEAL) _.~N~4i;. ..~f~Ó T AJ?;:,~. :"'/ ... \ ~ . I , . . I ' . . \ ' . '.\ /: '. 'p)?,~1ç.~~... ...17}¡õi1P~. .'n." J h all ¡YJ Srvù -fh- Notary Public for Idaho . '. I f ¡ . Residence: AdAJ.A~' Ja¿¡:.¡,u; Commission Expires: 1/1- It-o~ Z:\Work\M\Meridian\Meridian 1 5360MIResolutions City H.lI\2003\CERT ofCLK Cash Receipts Procedure 02 06 03.doc CERTIFICATE OF CLERK PAGE 3 OF 3 CITY OF MERIDIAN CASH RECEIPTS PROCEDURE FINANCE DEP AR TMENT Adopted ¡::¿6rú~ri /8) Zpo3 /(efo!tr.,ÙUh # t? 3 - Jtftt Purpose All money collected anywhere by the City of Meridian should be handled and accounted for using procedures that are based on the principals of good controls and in accordance with generally accepted accounting standards. Definitions Internal Control: Measures employed for the purpose of safeguarding resources against waste, fraud, and inefficiency: promoting accuracy and reliability in accounting and operating data: encouraging and measuring compliance with policy and judging the efficiency of operations. Cash internal controls provide assurance that: . All cash that should have been received was in fact received and recorded promptly and accurately. . Cash disbursements have been made only for authorized business purposes and have been recorded promptly and accurately. . Cash on hand and in the bank is accurately stated and subject to appropriate safeguards. Cash Receipts: Receipt of coin, currency, checks, warrants, money orders, cashier checks, or EFT wire transfers. Generally Accepted Accounting Standards: Conventions, rules, and procedures necessary to describe accepted accounting practice at a particular time. The objective is to record and report financial data to accurately reflect an organizations financial condition. Governmental Accounting Standards Board: The authoritative board that issues generally accepted accounting principals for state and local governments. 1. Basic Guidelines for All Departments A. Every walk-in customer who delivers cash or checks must be given a receipt. B. Accounting will distribute receipt books. Receipt books will be pre- numbered and three part. When customers pay in person, one part will always be given to the customer, one part retained with the cash, and one part retained in the receipt book. The Treasurer will record starting numbers of assigned receipt books. The Treasurer will test receipt books to see that all receipt numbers are accounted for. C. The physical custody of cash must be separate from the entry or recording of cash in the accounting or billing system. D. Daily cash receipts must be reconciled to daily account postings. E. All bank statements must be reconciled monthly, F. The Finance Director will review and sign off on all monthly cash reconciliation's. G. Cash deposits should be made daily and must be made no less frequently than weekly. H. When a receipt is voided, one part is retained in the receipt book, and the other two parts are to be sent to accounting with the daily deposit. 1. Every cash receipt location will post a sign that says "Remember to ask for a cash receipt!" J. No employee checks will be cashed. No checks are to be written to the City that requires cash back. II. Municipal Utility Billing Department The Municipal Utility Billing Department (MUBS) bills and collects monthly sewer and water sales, and miscellaneous billings. MUBS billing system is CASELLE. This system does not electronically interface with the accounting system; entries into the accounting system are entered manually, A. Counter Receipts i. Any MUBS employee can take counter receipts. The employee enters the receipt in the Billing system and generates a two-part computer receipt. One copy is given to the customer the other copy is retained. ii. Cash and/or checks may be put into the drop box. The receipt is the statement. Leaving currency and coins in the drop box is discouraged. 2 iii. At the end of the day the counter and drop box checks are added to the mail receipts to make up the daily deposit. B. Mail Receipts i. Opening mail is assigned to the Customer Service Representative position, but in their absence might be opened by any MUBS staff person. ii. The Customer Service Representative opens the mail, writes the account number on the check, and stacks the check and receipts together. The Customer Service Representative runs two tapes on each stack of checks, verifying that the totals equal, initials and dates the tapes. iii. The checks, tapes, and receipts are given to the Data Entry Operator to enter. The Data Entry Operator enters the receipts into the Utility Billing System and compares the computer total to the check total. Once the computer total equals the tape total the Data Entry Operator initials the tape "entered by" and the date. Once both totals agree the checks, tapes, receipts, and computer generated receipt report are returned to the Customer Service Representative who scans the checks and receipts. vi. The Customer Service Representative posts and updates the day's receipts in the Utility Billing System. The Cash Receipting module updates into the Utility Billing module. vii. The Customer Service Representative locks the day's cash and receipts in the fireproof safe. C. Daily Reconciliation i. At the end of the day the Customer Service Representative opens and balances the cash drawer. This person does not do any data entry. ii. The Billing Manager or Billing Administrator compiles the day's checks and cash and prepares the bank deposit. The cash is generally deposited the day after receipt. The Billing Manager or the Billing Administrator verifies that the check and cash deposit agrees to the Billing System cash report. They make sure that the cash total on the deposit equals the systems cash total and the check total on the deposit equals the systems check total. 3 D. Bank Deposit i. Once the cash and checks are reconciled to the system the money, the calculator tapes, and the reconciliation are given to the Payroll Accounting Specialist. The Payroll Specialist takes the deposit to the bank. E. Accounting System i. The deposit slip, the manual reconciliation form, and the system cash/checks report go to the accounting department Accounts Payable Specialist. The Accounts Payable Specialist enters the cash receipt into the accounting system, verifying the Caselle posting to the cash deposited. F. Billing Adjustments i. Accounts can be adjusted for errors (payments entered in wrong account) or written off (ban1cruptcy, not sufficient fund checks, bad debt). ii. If an adjustment is required an adjustment form is completed and given to the Billing Manager or Billing Supervisor. iii. The Billing Manager must approve all adjustments. The Finance Director must approve write-offs or adjustments of $500 or more. IV. Once the adjustment has been approved the Billing Administrator or Billing Manager in the Billing System will enter the transaction. Only the Billing Administrator or Manager has the security needed to enter adjustments. v. The adjustment will be forwarded to accounting for entry into the accounting system. No adjustment will be made unless the appropriate signatures are on the form. III. Building Department The Building Department collects license sales, Public Works review fees; impact fees, water and sewer assessments and building permit fees. Building permits are calculated and invoices generated on the PTWin system. Sales are point-to-point, no receivable generated. This system does not interface with the accounting system, entered into the accounting system manually. The Building Department maintains a cash drawer of $200. 4 A. Permits and Assessments - Building Department/Public Works i. When assessments and building permits are sold the permit system generates an invoice. One copy is retained in the building department and the other copy is given to the customer. ii. At the end of the day the permit system generates a report with the number of permits and assessments sold the dollar amount and a total. iii. The Building Department runs a tape on the day's receipts, stamps and dates the tape, reconciles it to the daily permit report and forwards the money, the tape, and the report to the accounting department. iv. The cash drawer is balanced daily. v. The building department will maintain all copies of the building permits. Exception - Accounting must get copies of any permits that will require the City to payout money i.e., Commercial, Park Impact (Bear Creek), and Latecomers B. Misc Receipts - Building Department/Public Works i. Non-building permits misc receipts will be included in the building department's daily deposit. ii. The building department will issue a three-part receipt, retaining one copy, giving the customer a copy, and forwarding the third copy with the money sent to the accounting department. C. Accounting System i. The accounting department Treasurer will summarize the building department's receipts on an Excel spreadsheet and verify the tape. ii. The money will be given to the accounting department Payroll Specialist who will make the daily deposit. iii. The deposit slip is returned to the Accounts Payable Specialist who enters the deposit in the accounting system with the date of the deposit and files the documents, D. Month-end Reconciliation i. At the end of the month the Accounts Payable Specialist sends the Building Department Supervisor the general ledger reports with the amounts posted to their various revenue accounts. 5 ii. The Building Department Supervisor reconciles the PTWin building permit system to the General Ledger. III. Planning and Zoning Department Service Fees - P & Z charges and collects fees for a variety of permits and services including but not limited to rezones, conditional use permits, variances, comprehensive plan amendments, plat reviews, staffs reviews and inspections. A. Once a Planner has committed to perform a particular service a Planning and Zoning/Public Works Fees worksheet is completed by the Department Specialist. This is an Excel spreadsheet that calculates the total fee. B. The Department Specialist collects the customer's fee and writes a receipt from the pre-numbered receipt book, one copy goes to the customer, one part goes with the cash, and the third copy remains in the receipt book. C. On a daily basis the P/Z Department Specialist will add the worksheets and the cash and make sure they agree. D. On a daily basis the cash, copy of the Excel worksheet, and the receipts are given to the Building Department to be delivered to the accounting department for deposit and entry into the accounting system. E. Accounting System i. The accounting Treasurer will verify that the checks and cash equal the receipts and check for any applicable sales tax. ii, The money will be given to the Payroll Specialist who will make the daily deposit. iii. The deposit slip is returned to the Accounts Payable Specialist who enters the deposit in the accounting system with the date of the deposit and files the documents. v. City Clerk Department The City Clerk's Department receives miscellaneous receipts for items such as beer, wine and liquor licenses, liquor catering permits, permits for vendors, peddlers and solicitors, fireworks permits, massage licenses, background checks, copies and various deposits for bonding of fences, landscaping etc. 6 A. Collection of Miscellaneous Receipts i. The City Clerk Office Staff receipts the money using a pre-numbered three-copy receipt book. The customer receives a receipt, one copy is maintained in the receipt book and the original goes to accounting with the cash. ii. On a daily basis the receipts and cash go to the accounting department for deposit and entry into the accounting system. B. Accounting System i. The accounting Treasurer will verify that the checks and cash equal the receipts and check for applicable sales tax, ii. The money will be given to the accounting department Payroll Specialist who will make the daily deposit. iii. The deposit slip is returned to the Accounts Payable Specialist who enters the deposit in the accounting system with the date of the deposit and then files the documents. VI. Parks and Recreation Department The Parks and Recreation Department collects fees for City recreation classes and for reserving park space. Payments are made with cash, check, money order, or credit card. A, When customers walk in and pay over the counter they receive a receipt, one part will be forwarded to accounting, the third copy will be retained the receipt book. B. The fees are entered into the Parks Recreation Department software. On a daily basis the sunnnary sheet and the cash/checks are delivered to the accounting department. The accounting department makes the bank deposit and enters the cash and sales into the accounting system. The same separation of duties discussed above between the accounting Payroll and Accounts Payable Specialists is applicable. C. Mail receipts - Class registration and park reservations may be sent in by mail. The Parks Department Specialist enters them into the Parks Recreation 7 Department software and forwards to the accounting department for deposit and entry into the accounting system. D. Credit Card Sales - registration and park reservations can be paid for with credit cards in person or over the phone. Walk-in customers receive one copy; the other copy is forwarded to accounting. Accounting posts as a cash receipt net of the merchant fee. VII. Police Department The Police Department collects fees for parking fines, VIN inspections, false alarms, school resource officers, room rentals, copies of reports, dog tags, and impounds fees. A. Three part receipts are written for walk-in customers, one copy goes to the customer, one part will be forwarded to the accounting department, and the third copy will be retained in the receipt book. B. Fees sales are entered daily into an Excel spreadsheet. The summary sheet and the cash are delivered to the accounting department who prepare the deposit, and enter into the accounting system. C. Several software systems exist for different types offees: 1. Parking Tickets - Entered into the Spillman Law Enforcement Data Base. 2. Dog Tags - Entered into the Petware data tracking system. 3. False Alarm Fees - Entered in a stand-alone data base system. VIII. Accounting Department - Receipt for Billed Invoice A. Any service provided by the City that is not paid at the time of service must be invoiced. Departments may prepare their own invoices but must send them to accounting to be entered into the accounting system and reported as account receivable. Accounting will mail invoices to the customer. B. Invoices should be sent to accounting electronically. Accounting will ensure that the customer is directed to send the cash to City Hall, the return address is correct, dollar amounts are calculated correctly, and the invoice is numbered. 8 C. Examples of services billed through the accounting department include latecomer's agreements, sewer and water assessments, dog licenses, overtime inspections, and septic dumping. D. When payment comes to the accounting office the Accounts Payable Specialist will write a two-part receipt. The original goes with the check to the Payroll Specialist who prepares the bank deposit; the yellow copy is attached to the invoice and filed. E. The Payroll Specialist makes the deposit, and returns the deposit slip to the Accounts Payable Specialist who enters the payments in the accounting system. F. Reconciliation 1. Bank Statements - payroll, money market, and checking account. The Treasurer is responsible for balancing monthly bank statements. After completion of the reconciliation the Accountant will enter the interest and any adjustments, Adjustments include: NSF: Accountant will post into the suspense account #14100, make a copy and give to appropriate department Municipal Billings- posts the NSF check back into their accounts receivable system CASELLE as a billing adjustment Building Department- puts hold on the building certificate of occupancy until payment for the returned check is received. EFT payments Interest Earnings Bank Fees The Finance Director must review and sign off on the cash reconciliation's. ii. 111. G. The Finance Director reviews cash and investment accounts on a monthly basis. 9