City of Camarillo
CITY COUNCIL POLICY
Section: Finance Date Adopted: July 1972
Last Amended: November 9, 2022
Subject:
Disbursement Processing
Number: 3.02 Page 1 of 4
PURPOSE
To establish guidelines for processing disbursements to mitigate the risk of fraud and to ensure internal controls while satisfying financial commitments of the City.
POLICY
The Finance Department is responsible for processing disbursement s including, but not limited to, payment to suppliers of goods and services, payments to employees for payroll or reimbursement of expenses, paym ents for debt service, and issuing refunds.
These requirements are in addition to policies concerning travel, use of credit cards, issuance of payments prior to submitting to council approval and payroll policies contained in the personnel manual. Disbursements will include checks and non-check methods such as ACH, EFT and wire trans fers. For checks that are less than $2,500, except payroll checks, the City Manager, the Assistant City Manager or the Director of Finance’s (the primary signatories) signature is required, prov ided that the check is not prepared by or made payable to the person signing the check. For all payroll checks, all non-check methods of payment and all other checks of $2,500 or more, two signatures are required by the primary signatories and/or secondary signatory. When possible, one signature from the City Manager’s department and one signature from the Finance department will be obtained. All checks will r outinely be reviewed by two primary signatories, consistent with the certification of the Disbursement List (see section H).
A. Signatories
1. Primary Signator ies: City Manager
Assistant City Manager
Director of Finance
2. Secondary Signatories: Assistant Director of Finance Finance &/Accounting Manager
3. Alternate Signator y: City Clerk
EXISTING WITH REDLINE
TO COUNCIL ON 5/6/2024
Adopted 3.2, July 1972
Amended 7/25/2001 Policy 3.02
Amended 3.02 8/22/2012; 11/4/2015; 6/14/2017; 11/9/2022 Page 2 of 4
Only in cases where two of the thr ee primary signatories or one of the two secondary signatories are unavailable for checks requiring two signatures, will a second signature be obtai ned from the City Clerk. Under no circumstances will the secondary si gnatories and the City Clerk be the only signers on a check. If the City Clerk is required to co-sign a check, an affidavit must be prepared explaining the necessity for the non-primary signature. A copy of the affidavit, si gned by a primary signatory, must be placed in the accounts payable file with other payment documentation.
B. Disbursements
1. Disbursement amount less than $2,500: One Primary Signatory required.
2. Disbursement amount $2,500 or more : Two Primary Signatories required. (When two of the Primary Signatories are not ava ilable, either of the Secondary Signatories can counter sign with one of the Primary Signatories.)
3. Payroll Disbursement: Two Primary Signatories required. (When two of the Primary Signatories are not ava ilable, either of the Secondary Signatories can counter sign with one of the Primary Signatories.)
4. Wire Disbursement: Two Primary Signatories required.
C. Payments of City Obligations
Only the City Manager, Department Heads or official designees as identified in the “Authorized Signature List” are author ized to sign purchasing and accounts payable documents. This list is prepared annually by the Finance Department and reviewed by the City Manager each department. Vendors will be instructed to mail send all invoices directly to the Finance Department. The department receiving the goods or services must sign the receiving documents and transmit the documents to accounts pay able on the date of receip t or as soon thereafter as possible. Payment cannot be issued if goods or services have not been received by the City. Payments must include appropriate authorization in accordance with internal control proc edures established in the Procurement Policy 4.01.
D. Warrant Request
When an invoice or other official doc umentation is unavailable, a Warrant Request is used to authorize payment.
E. Payroll
Adopted 3.2, July 1972
Amended 7/25/2001 Policy 3.02
Amended 3.02 8/22/2012; 11/4/2015; 6/14/2017; 11/9/2022 Page 3 of 4
All bi-weekly payroll disbursements will be computer-generated. Payroll checks may be prepared outside of the normal bi-weekly cycle for terminated employees, payment of payroll deductions, issuance of a replacement check or due to unforeseen circumstances making it necessary to manually generate payroll. A list of direct deposit advices wi ll be prepared by the payroll division, and reviewed and signed by two primary si gnatories. Certification of each payroll, which includes all elements of pay and withholdings, is required by two primary signatories.
F. Handwritten Checks
Handwritten checks are us ed when a payment is ur gent and cannot be processed in accordance with routine procedures. All handwritten checks require pre-approval of the City M anager, the Assistant City M anager or the Director of Finance. Any handwritten check must be included on the next list of disbursements submitted to City Council. for approval.
G. Early Release Checks
Early release checks are used when a payment can be processed in accordance with routine procedures, but circumstances require the payment to be released prior to City Council approval. All earl y release checks require pre-approval of the City Manager, Assistant City Manager, or the Director of Finance.
HG. Disbursement List
Checks will be released after the approval of the City Manager, the Assistant City Manager or the Director of Finance. The Finance Department will provide the City Council a complete listing of all disbursements for ratification and approval in conformance with Califo rnia Government Code Section 37208 . The list will be prepared routinely, coinciding with regularly scheduled City Council meetings. The disbursement list will be approved by the City Manager and the Director of Finance, indicating that the payment s recorded are accurate and funds are available certifying as to the accuracy of the demands and the availability of funds for payment thereof . Vendor checks included on the list will begin with the next consecutive check num ber since the preceding list and will include all check numbers, including voided checks. The list will also include all other forms of disbursement. Checks will not be released until after approval of the City Council with the exception of payments that may be released early for reasons deemed appropriate by the City Manager, the Assistant City Manager or the Director of Finance. Each item placed on the list will include the name of the payee, the amount and a brief de scription of the payment. An entry, representing aAll payroll disbursements made since the last list, will be included.
Checks will be released after the certific ation of the City M anager, the Assistant City Manager or the Director of Finance.
IH. Petty Cash
Adopted 3.2, July 1972
Amended 7/25/2001 Policy 3.02
Amended 3.02 8/22/2012; 11/4/2015; 6/14/2017; 11/9/2022 Page 4 of 4
Purchases up to $100 may be handled through petty cash procedures.
J.I. Payments from Successor Agency Bank Account
Payments of Successor Agency Obligati ons must be consistent with the applicable sections of this policy.
Payments of Successor Agency Obligations must be in accordance with the Recognized Obligation Payment Schedule (ROPS) approved by the California Department of Finance, pursuant to Health and Safety Code Section 34177(a)(3).
The City will maintain a separate account ing process with designated fund(s) for the Successor Agency.
K.J. Stale Dated Checks
Annually, after checks have been reconciled for the month of May, the Finance Department will review all outstanding stal e dated checks to identify those that have been issued or held in custody for mo re than six months. Finance staff will investigate the stale dated checks to determine why funds remain outstanding and void and/or reissue when appropriate.
L.K. Unclaimed Funds
Unclaimed funds that have been in the City’s custody for the three-year period required by California Government Code 50050-50056 will then be reconciled consistent with the provisions of the Code.