CHAPTER 7

FISCAL MANAGEMENT

7.01    PURPOSE. The purpose of this chapter is to establish policies and provide for rules and regulations governing the management of the financial affairs of the City.

7.02    FINANCE OFFICER. The Deputy City Manager is the finance and accounting officer of the City and is responsible for the administration of the provisions of this chapter.

7.03    CASH CONTROL. To assure the proper accounting and safe custody of moneys the following shall apply:

1. Deposit of Funds. All moneys or fees collected for any purpose by any City officer shall be deposited through the office of the finance officer. If any said fees are due to an officer, they shall be paid to the officer by check drawn by the finance officer and approved by the Council only upon such officer’s making adequate reports relating thereto as required by law, ordinance or Council directive.

2. Deposits and Investments. All moneys belonging to the City shall be promptly deposited in depositories selected by the Council in amounts not exceeding the authorized depository limitation established by the Council or invested in accordance with the City’s written investment policy and State law, including joint investments as authorized by Section 384.21 of the Code of Iowa.

(Code of Iowa, Sec. 384.21, 12B.10, 12C.1)

3. Petty Cash Fund. The finance officer shall be custodian of a petty cash fund for the payment of small claims for minor purchases, collect-on-delivery transportation charges and small fees customarily paid at the time of rendering a service, for which payments the finance officer shall obtain some form of receipt or bill acknowledged as paid by the vendor or agent. At such time as the petty cash fund is approaching depletion, the finance officer shall draw a check for replenishment in the amount of the accumulated expenditures and said check and supporting detail shall be submitted to the Council as a claim in the usual manner for claims and charged to the proper funds and accounts. It shall not be used for salary payments or other personal services or personal expenses.

4. Change Fund. The finance officer shall maintain a change fund in the amount of one hundred dollars ($100.00) for the purpose of making change without commingling other funds to meet the requirements of the office. The change fund shall be in the custody of the officer or employee responsible for the collection of revenues and said officer or employee shall maintain the integrity of the fund.

7.04    FUND CONTROL.

1. Revenues. All moneys received by the City shall be credited to the proper fund as required by law, ordinance or resolution.

2. Expenditures. No disbursement shall be made from a fund unless such disbursement is authorized by law, ordinance or resolution, was properly budgeted, and supported by a claim approved by the Council.

3. Balancing of Funds. Fund accounts shall be reconciled at the close of each month and a report thereof submitted to the Council.

7.05    ACCOUNTING. The accounting records of the City shall consist of not less than the following:

1. Books of Original Entry. There shall be established and maintained books of original entry to provide a chronological record of cash received and disbursed.

2. General Ledger. There shall be established and maintained a general ledger controlling all cash transactions, budgetary accounts and for recording unappropriated surpluses.

3. Checks. Checks shall be prenumbered and signed by the City Manager and Deputy City Manager following Council approval, except as provided by subsection 5 hereof.

4. Budget Accounts. There shall be established such individual accounts to record receipts by source and expenditures by program and activity as will provide adequate information and control for budgeting purposes as planned and approved by the Council. Each individual account shall be maintained within its proper fund and so kept that receipts can be immediately and directly compared with revenue estimates and expenditures can be related to the authorizing appropriation. No expenditure shall be posted except to the appropriation for the function and purpose for which the expense was incurred.

5. Immediate Payment Authorized. The Council may by resolution authorize the Clerk to issue checks for immediate payment of amounts due, which if not paid promptly would result in loss of discount, penalty for late payment or additional interest cost. Any such payments made shall be reported to the Council for review and approval with and in the same manner as other claims at the next meeting following such payment. The resolution authorizing immediate payment shall specify the type of payment so authorized and may include but is not limited to payment of utility bills, contractual obligations, payroll and bond principal and interest.

7.06    FINANCIAL REPORT. The finance officer shall prepare and submit to the Council each month a report showing the activity and status of each fund, program, sub-program and activity for the preceding month.

7.07    PURCHASING MANUAL. All purchases shall be made in conformance with the policies and procedures established in the City’s Purchasing Policies and Procedures manual as periodically updated.

7.08    PURCHASE ORDERS. All purchases of services, supplies and equipment shall be made only after issuance of a purchase order, except as otherwise provided in the City’s Purchasing Policies and Procedures manual, and no invoice shall be accepted unless authorized by such an order.

7.09    FEE FOR INSUFFICIENT FUNDS. All persons issuing checks or other drafts to the City for services rendered or on any other account or contractual obligation shall be charged the maximum handling fee allowed by State law if the check is returned for insufficient funds or closed account unless otherwise prohibited by law.