CITY COUNCIL MEETING AGENDA February 3, 2026
CITY OF SHASTA LAKE
CITY COUNCIL
MEETING AGENDA
February 3, 2026
6:00 P.M.
Shasta Lake City Council Chambers
4488 Red Bluff Street Shasta Lake, CA 96019
Mayor: Justin Jones
Vice Mayor: Greg Watkins
Council Members: Toni Coates, Pamelyn Morgan, Dan Ringwelski
OTHER WAYS TO PARTICIPATE IN THE MEETING
• Watch a livestream of the meeting online or view the recording any time after the meeting concludes at the following: cityofshastalake.gov/meetings • Submit public comment electronically before the meeting to:
[email protected]. Public comment by email will be read into the record during consideration of the item the comment addresses. Each public comment will be limited to three minutes of reading. Include the item number you are commenting on in the subject line of the email. Once the vote has taken place on an item, no additional public comments will beaccepted.
• Submit public comment by mail addressed to City Clerk, City of Shasta Lake, PO Box 777, Shasta Lake, CA 96019. Mailed comments must be received one day prior to the meeting to be included.
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Call to order (please place electronic devices on silent)
1.2 Statement for the record of Council Members present or absent
1.3 Pledge of Allegiance
1.4 Invocation
2.0 AWARDS & RECOGNITIONS:
2.1 None
3.0 PRESENTATIONS:
3.1 None
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
4.1 Shasta Lake Fire Protection District Quarterly Report. (pg. 4) 1 CITY COUNCIL MEETING AGENDA February 3, 2026
5.0 PUBLIC COMMENT:
This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the regular agenda, please address the Council when that item is open for public comment. Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. Speaker forms are available from the City Clerk, 4477 Main Street, Shasta Lake, on the City’s website, or at the back of the meeting hall. If you have documents to present to members of Council, please provide a minimum of seven copies. Pursuant to The Brown Act, the City Council cannot take action on Public Comment Items.
6.0 CONSENT AGENDA:
The items listed under the Consent Agenda are considered routine business and will be voted on together by one motion unless a Council Member requests a specific item to be removed and discussed separately.
6.1 Minutes of the Regular Meeting of January 20, 2026. (pg. 5)
6.2 Payrolls: (pg. 9)
Period Ending: 1/17/2026 Paid Date: 1/23/2026 $189,133.04
6.3 Checks, E-payments, and wires: (pg. 10)
12/11/2025 $503,616.59
12/18/2025 $2,355,568.82
12/31/2025 $481,782.52
1/08/2026 $728,403.06
1/15/2026 $2,497,722.17
7.0 PUBLIC HEARINGS:
7.1 None
8.0 REGULAR AGENDA:
8.1 Discussion and possible action to approve a Resolution appointing Amber Campos to the Planning Commission for a term expiring February 2030. (pg. 35)
8.2 Discussion and possible action to approve a Resolution adopting Finance Policy Documents. (pg. 39)
9.0 STAFF COMMENTS:
10.0 CITY COUNCIL COMMENTS AND REPORTS:
2 CITY COUNCIL MEETING AGENDA February 3, 2026
This is the time set aside for Council Members, who may so desire, to give brief comments or reports concerning City matters. The City Council may not enter into discussion on matters reported. Statements made by individual Council Members should not be interpreted as a statement of the City Council. The City Council only takes action by majority vote. • Brief reports by members of the Council regarding correspondence, events and/or meetings attended, and upcoming meetings/events.
• Suggestions/motions for future agenda items.
• In compliance with Assembly Bill 1234, Council will report on attendance at conferences/meetings/events where expenses are reimbursed by the City.
ADJOURNMENT:
Meetings are broadcast as scheduled on Charter Channel 181.
Videos of meetings are also available through the City website: www.cityofshastalake.gov In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call (530) 275-7407. Notification 48 hours prior to the meeting is requested to enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). 3 Shasta Lake Fire Protection District
4126 Ashby Ct., Shasta Lake, CA 96019 (530) 275-7474 Fax (530) 275-6502 www.shastalakefpd.org
PREVENTION OFFICER REPORT
Weed Abatement: 90 notices were sent out in 2025.
Community Outreach: In 2025, we visited Shasta Head Start and taught fire safety to the students.
I met with the residents at Twin Lakes Mobile Home Park to review weed abatement standards, fire evacuation protocols, and the use of Watch Duty and Genesis. We participated in career day at Grand Oaks and Central Valley High School. We also participated in Fire Prevention Week, which started out at Grand Oaks School and continued throughout the county. Overall, we were able to spread the word about fire safety to approximately 3,000 students that week. Plans/ Inspections: 2025 was a busy year for plans and inspections. Completed commercial and residential sprinkler plans, commercial and residential pipe inspections, and commercial and residential fire flows. Also had a commercial fire alarm inspection. Fires: In 2025, we had 64 fires, of which 15 were in the district. 6 structure fires: causes are electrical, smoking, accidental, and 3 undetermined. 2 vehicle fires; both are arson. 1 Negligent fire. 6 vegetation fires, causes are escape control burn, blown transformer, 3 arson, and 1 accidental.
Respectfully Submitted,
Devin M Owens
Devin M Owens
Fire Marshal/ Prevention Officer
44 CITY OF SHASTA LAKE
CITY COUNCIL MEETING MINUTES
MINUTES OF THE REGULAR MEETING
HELD TUESDAY, JANUARY 20, 2026, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Mayor Jones convened the regular meeting at 6:00 PM
1.2 Council Members present: Coates, Jones, Ringwelski, Watkins Councilwoman Morgan was not in attendance
1.3 The Pledge of Allegiance was led by Mayor Jones
1.4 Invocation was led by Mayor Jones
2.0 AWARDS & RECOGNITIONS:
2.1 None
3.0 PRESENTATIONS:
3.1 None
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
4.1 None
5.0 PUBLIC COMMENT:
Janice Powell, Shasta Lake resident
Ann Morningstar, Shasta Lake resident
6.0 CONSENT AGENDA:
6.1 Minutes of the Regular Meeting of January 6, 2026.
6.2 Payrolls:
Period Ending: 1/03/2026 Paid Date: 1/09/2026 $189,074.74
6.3 Monthly Report of Investment Transactions:
LAIF:
December $12,009,407.26
Chandler:
December $36,271,727.83
55 6.4 Second reading of Ordinance CC 2026-309 amending Chapter 5.05, “Regulation of Commercial Cannabis Activities”.
6.5 Second reading of Ordinance CC 2026-310 amendment to Chapter 17.10 “Cannabis Land Use”.
Motion/Vote
By motion made/seconded (Watkins/Coates), and carried unanimously, the Consent Agenda was approved.
7.0 PUBLIC HEARINGS:
7.1 None
8.0 REGULAR AGENDA:
8.1 Resolution CC 2026-07 appointing three members to the Planning Commission for a term expiring December 2030.
Public Comment
None
Motion/Vote:
Applicant Tena Eisenbeisz withdrew her application for the Planning Commission.
City Council interviewed applicant Jeffrey Bowman and applicant Randy Trotter.
Applicant Amber Campos was not able to attend the meeting.
A motion was made/seconded (Ringwelski/Jones), and carried unanimously, to appoint Jeffrey Bowman and Randy Trotter to the Planning Commission.
The City Council requested to interview Amber Campos at the next meeting prior to the appointment.
8.2 Resolution 2026-08 amending Purchasing Threshold Limits pursuant to Municipal Code Chapter 2.32 Purchasing System.
Public Comment
None
Motion/Vote:
A motion was made/seconded (Watkins/Ringwelski), and carried unanimously, Item 8.2 was approved.
9.0 STAFF COMMENTS:
City Manager Jessaca Lugo gave the City Council an update on the Park Playground Replacement Project and the Park Master Plan update.
The funeral service for Congressman Doug Lamalfa will be on January 24, 2026. 66 With the recent vandalism at the park, she reminded the public that “if you see something, say something”.
Finally, support local businesses in Shasta Lake.
10.0 CITY COUNCIL COMMENTS AND REPORTS:
ADJOURNMENT:
With no further business, Mayor Jones adjourned the meeting at 6:54 PM. ____________________________
CHARITY TATLOW, City Clerk
77 88
1/21/2026 8:44:21 AM Page 6 of 6
Payroll Check Register
City of Shasta Lake Report Summary
Pay Period: 1/4/2026-1/17/2026
Packet: PYPKT00704 - PE 1.17.2026
Payroll Set: City of Shasta Lake - 01
Type
4 Count
0 2,335.74
0.00 Regular Checks
Manual Checks
0 0.00
0 0.00
Amount
80 186,797.30
Total 84 189,133.04
Reversals
Voided Checks
Direct Deposits
99 1010
1111
1212
1313
1414
1515
1616
1717
1818
1919
2020
2121
2222
2323
2424
2525
2626
2727
2828
2929
3030
3131
3232
3333
3434
Report and Recommendations 8.1 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Charity Tatlow, City Clerk
DATE: February 3, 2026
SUBJECT: APPOINTMENT TO THE CITY OF SHASTA LAKE PLANNING
COMMISSION
FILE NO.: C-080-634-080
RECOMMENDATION
Staff recommends that the City Council interview and consider one applicant for appointment to the Planning Commission to fill the vacant seat, with terms expiring in February 2030.
BACKGROUND
The Planning Commission is a five-member Commission. Three seats on the Commission were available due to term expirations. The City Council interviewed 2 applicants at the January 20, 2026, City Council meeting and reappointed Jeff Bowman and Randy Trotter to the Planning Commission. The City Council requested to bring this item back so they could interview the final applicant, Amber Campos, for the final vacant seat on the Planning Commission.
Staff recommends that the City Council select one applicant to fill the vacancy, with a term expiring in February 2030.
FISCAL IMPACTS
No fiscal impact
ATTACHMENTS
Letter of Interest from Amber Campos
3535
Resolution CC 2026-XX
3636
RESOLUTION CC 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
APPOINTING AMBER CAMPOS TO THE SHASTA LAKE PLANNING COMMISSION FOR A TERM EXPIRING IN FEBRUARY 2030
WHEREAS, the City Council of the City of Shasta Lake authorized the creation of a City Planning Commission, consisting of five members appointed by the City Council, pursuant to Municipal Code Chapter 2.16; and
WHEREAS, there is one (1) vacancy on the Commission; and WHEREAS, the vacancy has been posted per the current policy; and WHEREAS, the City Council has received letters and/or resumes from one applicant seeking appointment.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shasta Lake that Amber Campos is hereby appointed to the Shasta Lake Planning Commission for a term that expires in February 2030.
PASSED, APPROVED, AND ADOPTED this 3rd day of February, 2026, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
JUSTIN JONES, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
3737
From: amber campos
To: City Clerk
Subject: Letter of Interest: City of Shasta Lake Planning Commission Date: Monday, January 5, 2026 5:34:59 PM
Dear City Clerk,
I am writing to express my interest in serving on the Planning Commission for the City of Shasta Lake. As a long-term resident who has lived in Shasta Lake for the past 25 years, I have a deep appreciation for our community and a strong commitment to its thoughtful growth and future success.
From 2022 to 2024, I worked for the Gateway Unified School District, where I gained valuable experience collaborating with families, staff, and community partners. Working in education strengthened my ability to listen carefully, consider multiple perspectives, and make decisions that balance immediate needs with long-term impacts—skills that I believe are essential when reviewing development projects and planning policies.
Living in Shasta Lake for most of my life has given me a strong understanding of the city’s character, challenges, and opportunities. I am passionate about preserving what makes our community unique while also supporting responsible growth that benefits residents, local businesses, and future generations. I would be honored to contribute my perspective, work ethic, and community-centered approach as a member of the Planning Commission.
Thank you for considering my letter of interest. I am able to attend the regularly scheduled meetings and would welcome the opportunity to further discuss how I can serve the City of Shasta Lake.
Sincerely,
Amber Campos
Shasta Lake, CA
3838
Report and Recommendations 8.2 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
____________________________________________________________ TO: Mayor and City Council Members
FROM: Wendy Howard, Finance Director
DATE: February 3, 2026
SUBJECT: ADOPTION OF FINANCE POLICY DOCUMENTS
FILE NO.: F-200-
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution approving and adopting the following Finance Policy documents: FIN2026-01-Standardized Document Process; FIN2026-2-Stale Dated Check Policy; FIN2026-3-Bank Reconciliation Exception Policy; and FIN2026-4-Bank Reconciliation Module Entry Policy.
BACKGROUND
The proposed Finance Policy documents are intended to strengthen internal controls, promote consistency, and enhance transparency and accountability within the City’s financial operations. Adoption of these policies formalizes existing best practices while addressing identified audit, operational, and risk-management considerations.
The City’s Finance Department is responsible for safeguarding public funds and ensuring accurate, timely, and transparent financial reporting. As part of an ongoing effort to modernize financial practices and reinforce internal controls, staff has developed a set of standardized finance policies that document procedures already in use or recommended through industry best practices and audit guidance.
Formal adoption by the City Council ensures organizational clarity, consistency across departments, and alignment with professional standards for municipal finance management.
The proposed policies address the following areas:
39 Standardized Document Process
Establishes consistent requirements for the creation, review, approval, retention, and storage of financial documents. This policy enhances audit readiness, ensures compliance with records-retention requirements, and supports continuity during staff transitions.
Stale Dated Check Policy
Provides guidance for identifying, voiding, and reissuing stale dated checks. This policy reduces financial risk, ensures accurate cash balances, and complies with applicable accounting and escheatment requirements.
Bank Reconciliation Exception Policy
Defines procedures for identifying, documenting, reviewing, and resolving bank reconciliation exceptions. This policy strengthens internal controls and ensures timely investigation of discrepancies.
Bank Reconciliation Module Entry Policy
Establishes standards for system access, data entry, review, and approval within the City’s bank reconciliation module. This policy supports segregation of duties, system integrity, and reliable financial reporting.
Collectively, these policies enhance fiscal accountability and align the City’s financial operations with best practices recommended by professional accounting and auditing standards.
FISCAL IMPACT
There is no direct fiscal impact associated with the adoption of these policies.
Implementation will be handled within existing staff resources.
ATTACHMENTS
FIN2026-1: Standardized Document Process Policy
FIN2026-2: Stale Dated Check Policy
FIN2026-3: Bank Reconciliation Exception Policy
FIN2026-4: Bank Reconciliation Module Entry Policy
DISTRIBUTION
City Council
City Attorney
City Manager
40 RESOLUTION CC 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
ADOPTING FINANCE POLICY DOCUMENTS
WHEREAS, the City Council is responsible for establishing policies that ensure sound fiscal management and the safeguarding of public funds; and WHEREAS, the Finance Department has developed Finance Policy documents to strengthen internal controls, standardize financial procedures, and enhance transparency and accountability; and
WHEREAS, the proposed policies reflect industry best practices and support accurate financial reporting and audit readiness; and
WHEREAS, formal adoption of these policies provides clear guidance to staff and promotes consistent application across City operations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shasta Lake as follows:
1. The City Council hereby adopts the following Finance Policy documents, attached hereto and incorporated by reference:
1. Standardized Document Process Policy (FIN2026-1)
2. Stale Dated Check Policy (FIN2026-2)
3. Bank Reconciliation Exception Policy (FIN2026-3)
4. Bank Reconciliation Module Entry Policy (FIN2026-4)
2. The City Manager, or designee, is authorized to implement and administer these policies and to make non-substantive administrative updates as necessary to maintain consistency with applicable laws, regulations, and best practices.
3. This Resolution shall take effect immediately upon adoption.
PASSED, APPROVED, AND ADOPTED this 3rd day of February, 2026, by the following vote:
AYES:
NOES:
ABSENT:
41 ______________________________
JUSTIN JONES, Mayor
ATTEST:
_______________________________
CHARITY TATLOW, CMC
City Clerk
42 8.2 2 FIN2026-01-Standardized Documentation Process Page 1 City of Shasta Lake
City Council Policy
Department
FINANCE
DEPARTMENT
Title:
Standardized Documentation
Process for Journal Entry
Calculations
Policy #: FIN-2026-01
Revision#: N/A
Date Approved: 02/03/2026
Last Update: N/A
Prepared by: Wendy Howard,
Finance Director
Approved by City Council 02/03/2026 CC2026-XX
1. Purpose
This policy establishes a standardized process for preparing, documenting, reviewing, and approving journal entries within the City of Shasta Lake’s financial system. The goal is to ensure that all journal entries are accurate, complete, and supported by sufficient documentation to meet internal control standards and external audit requirements.
2. Scope
This policy applies to all employees within the Finance Department who are responsible for initiating, preparing, reviewing, or approving journal entries that affect the City’s general ledger. It includes recurring, non-recurring, accrual, adjusting, and correcting entries.
3. Definitions
• Journal Entry (JE): A financial transaction manually entered into the accounting system to record or adjust financial data.
• Supporting Documentation: Evidence that substantiates the purpose, calculation, and authorization of a journal entry.
• Preparer: The individual responsible for initiating and documenting the journal entry.
43 8.2 2 FIN2026-01-Standardized Documentation Process Page 2 • Reviewer: A designated finance staff member who verifies the accuracy and appropriateness of the entry.
• Approver: The Finance Director or designee who provides final authorization.
4. General Requirements
All journal entries must:
• Be clearly explained and justified.
• Include detailed calculations and source documentation. • Be reviewed and approved prior to posting.
• Be traceable to the general ledger and financial statements. • Be retained in accordance with the City’s records retention policy (minimum 7 years).
5. Required Documentation Components
Each journal entry must include the following:
a. Journal Entry Cover Sheet
A standardized form that includes:
• JE number (auto-generated or manually assigned)
• Entry date
• Fiscal period
• Description of the entry
• Fund(s), department(s), and account(s) affected
• Debit and credit amounts
• Preparer, reviewer, and approver names and signatures • Reference to applicable policy or audit finding (if applicable) b. Calculation Worksheet
• A detailed breakdown of how the amounts were derived. 44 8.2 2 FIN2026-01-Standardized Documentation Process Page 3 • Excel or PDF format preferred.
• Must include formulas, assumptions, and rounding logic. c. Source Documentation
• Invoices, contracts, bank statements, reports, or other third-party evidence. • Internal memos or emails explaining the rationale for the entry. • Screenshots from the accounting system (if applicable). d. Approval Routing
• Digital or physical signatures from the preparer, reviewer, and approver. • Date and time of each step in the approval process.
6. Types of Journal Entries and Examples
Type Description Example
Accrual Recognizes revenue or expenses
in the period incurred
Accruing June utility expenses
received in July
Reclassificati
on
Moves amounts between
accounts
Reclassifying a capital expense
mistakenly coded as operating
Correction Fixes prior period errors Correcting a transposition error in payroll
Recurring Monthly entries for depreciation,
allocations
Monthly depreciation of fixed assets
Year-End
Adjustments
Closing entries for financial
reporting
Adjusting fund balances for audit
7. Roles and Responsibilities
45 8.2 2 FIN2026-01-Standardized Documentation Process Page 4 Role Responsibility
Preparer Drafts the journal entry, attaches all required documentation, and submits for review
Reviewer Verifies accuracy, compliance with policy, and completeness of documentation
Approver Provides final authorization and ensures alignment with financial reporting objectives
Finance Director Oversees policy implementation and ensures compliance with audit standards
8. Internal Control and Segregation of Duties
To maintain strong internal controls:
• The preparer and reviewer must be different individuals. • High-risk or material entries (e.g., over $25,000) must be approved by the Finance Director.
• System access controls must restrict unauthorized users from posting entries.
9. Posting and Retention
• Journal entries must be posted to the general ledger within 5 business days of approval.
• All documentation must be stored in a centralized, secure digital folder by fiscal year and JE number.
• Retention period: 7 years minimum, or longer if required by grant or audit standards.
10. Quality Assurance and Audit Readiness
46 8.2 2 FIN2026-01-Standardized Documentation Process Page 5 • The Finance Department will conduct quarterly reviews of randomly selected journal entries to ensure compliance.
• Findings will be documented and used to improve training and procedures. • All journal entries must be audit-ready, meaning a third party should be able to understand the purpose and calculation without additional explanation.
11. Training and Updates
• All finance staff will receive annual training on this policy. • Updates to the policy will be communicated via email and posted on the internal finance portal.
47 8.2 2 FIN2026-01-Standardized Documentation Process Page 6
12. Appendix: Sample Journal Entry Cover Sheet
City of Shasta Lake – Journal Entry Cover Sheet
Field Description
Journal Entry Number [Auto-generated or manually
assigned]
Date of Entry [MM/DD/YYYY]
Fiscal Period [e.g., FY 2024 – Period 06]
Description [Brief explanation of the entry]
Debit Account(s) [Fund – Dept – Account – Amount]
Credit Account(s) [Fund – Dept – Account – Amount]
Calculation Worksheet
Attached
[Yes/No]
Source Documentation
Attached
[Yes/No]
Prepared By [Name, Title, Date]
Reviewed By [Name, Title, Date]
Approved By [Name, Title, Date]
Notes [Optional comments or references]
48 FIN8.2 3 FIN2026-02-Stale Dated Check Policy Page 1
City of Shasta Lake
City Council Policy
Department
FINANCE
DEPARTMENT
Title:
Stale-Dated Check Policy
Policy #: FIN-2026-02
Revision#: N/A
Date Approved: 02/03/2026
Last Update: N/A
Prepared by: Wendy Howard,
Finance Director
Approved by City Council 02/03/2026 CC2026-XX
1. PURPOSE
This policy establishes a formal process for identifying, voiding, reissuing, and reporting stale-dated checks issued by the City of Shasta Lake. The goal is to ensure timely resolution of outstanding payments, maintain accurate financial records, and comply with California unclaimed property laws.
2. SCOPE
This policy applies to all checks issued by the City of Shasta Lake, including accounts payable, payroll, and other disbursements, regardless of fund or department.
3. DEFINITIONS
• Stale-Dated Check: A check that remains uncashed for more than 3-years from the date of issuance.
• Void: The process of canceling a check in the accounting system to prevent future payment.
• Reissue: The process of issuing a replacement check to the original payee. • Escheatment: The legal process of remitting unclaimed property to the State of California.
4. POLICY
49 FIN8.2 3 FIN2026-02-Stale Dated Check Policy Page 2
It is the policy of the City of Shasta Lake to properly account for unclaimed money in a manner that follows the California Government Code Sections 50050 through 50056.
Unclaimed money consists of funds that are not the property of the City, but are held by the City for three (3) years or more without a claim being filed by the legal owner.
Unclaimed money that remains unclaimed for at least three (3) years will become the property of the City after procedures identified herein have been followed.
SUMMARY OF STATE LAW / CALIFORNIA GOVERNMENT CODE 50050 – 50056
A. Money that is not the property of the City of Shasta Lake that remains unclaimed for a period of more than three (3) years is the property of the City of Shasta Lake forty-five (45) days after initial public notice if not claimed or if no verified complaint is filed and served. (Section 50050 and Section 50051).
B. Any time after the expiration of the three (3) year period, the Finance Director may cause a notice to be published once a week for two (2) successive weeks in a newspaper of general circulation published in the City of Shasta Lake. (Section 50050).
C. The Finance Director may release to the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative, unclaimed money if claimed prior to the date the money becomes the property of the City of Shasta Lake upon submitting proof satisfactory to the Finance Director. (Section 50052.5)
D. Any individual items of fifteen (15) dollars or less, or any amount if the depositor’s name is unknown, which remain unclaimed for a period of one (1) year may be reclaimed by the City of Shasta Lake without the necessity of public notification in a newspaper. (Section 50055)
5. PROCEDURE
CHECKS RETURNED AS UNDELIVERABLE
A. Checks that are returned to the City of Shasta Lake as undeliverable will be researched to determine the reason for the return. If the owner cannot be located, the returned check will be voided and funds transferred to accounts established for the purpose of holding unclaimed funds. (110-000-2510).
B. At the start of each new fiscal year (July 1), all unclaimed amounts will be reviewed to determine those that had been issued more than three (3) years prior.
50 FIN8.2 3 FIN2026-02-Stale Dated Check Policy Page 3
C. The held funds in an amount of more than fifteen (15) dollars and an issue date older than three (3) years will be posted on the City’s website for the next forty-five (45) days, concurrent with the publishing of the notice in the newspaper. The notice will refer interested parties to the list and will state the amount of money, the fund in which it is held, claim instructions, and that the funds will become the property of the City of Shasta Lake on a designated date not less than forty-five days or more than sixty days after the first publication of the notice.
D. On a date no less than forty-five days after the first publication of the public notice, the City will reclaim the remaining funds by preparing a journal to transfer the funds back to the accounts of origin.
6. ROLES AND RESPONSIBILITIES
Role Responsibility
Finance Technician Monitor outstanding checks and maintain stale-dated check log
Finance Manager Review monthly reports and approve voids and reissues Finance Director Authorize escheatment and ensure compliance with state law
7. RECORDKEEPING AND RETENTION
• All voided and reissued checks will be documented in the Stale-Dated Check Log. • Supporting documentation (e.g., correspondence, void approvals) will be retained for 7 years.
8. TRAINING AND REVIEW
• Finance staff will receive annual training on this policy. 51 8.2 4 FIN2026-03-Bank Reconciliation Exception Policy-Non-GL Entries
City of Shasta Lake
City Council Policy
Department
FINANCE
DEPARTMENT
Title:
Bank Reconciliation Exception
Policy – Non-GL Entries
Policy #: FIN-2026-03
Revision#: N/A
Date Approved: 02/03/2026
Last Update: N/A
Prepared by: Wendy Howard,
Finance Director
Approved by City Council 02/03/2026 CC2026-XX
1. Purpose
This policy outlines the procedures and internal controls for managing entries in the bank reconciliation module that do not affect the general ledger (non-GL entries). It is intended for use when such entries are necessary due to system limitations or reconciliation requirements and cannot be fully eliminated.
2. Scope
This policy applies to all Finance Department staff responsible for preparing, reviewing, or approving bank reconciliations in the City’s financial system.
3. Definitions
• Non-GL Entry: A transaction entered into the bank reconciliation module that does not post to the general ledger but is used to reconcile timing or system-related differences.
• Reconciling Item: A legitimate difference between the bank statement and the general ledger that requires explanation.
• Audit Trail: A documented path that allows a third party to trace the origin, purpose, and resolution of a financial transaction.
4. Background and Justification
52 8.2 4 FIN2026-03-Bank Reconciliation Exception Policy-Non-GL Entries
Due to limitations in the City’s financial software, certain reconciliation adjustments must be made using non-GL entries. These entries are necessary to complete the reconciliation process but must be tightly controlled to ensure transparency and auditability.
5. Policy Statement
While the City acknowledges the risks associated with non-GL entries, their use is permitted under the following conditions:
• All non-GL entries must be clearly identified.
• Each entry must include a written explanation and supporting documentation. • Entries must be approved by designated personnel.
• All non-GL entries must be reversed or cleared in the following month. • A clear audit trail must be maintained.
6. Procedures
a. Entry Identification
• All non-GL entries must be labeled as “Non-GL Entry” in the reconciliation module. • A unique identifier (e.g., NGLE-YYYYMM-###) must be assigned to each entry. b. Documentation Requirements
Each non-GL entry must include:
• A written explanation of the purpose
• Source documentation (e.g., bank statement, system report) • Expected resolution timeline
• Approval signatures
c. Monthly Reconciliation
• Non-GL entries must be reviewed and cleared in the following month. • If unresolved, the entry must be re-documented and re-approved with justification.
7. Roles and Responsibilities
53 8.2 4 FIN2026-03-Bank Reconciliation Exception Policy-Non-GL Entries
8. Internal Controls and Audit Trail
• A Non-GL Entry Log must be maintained and updated monthly. • All entries must be traceable to a specific bank reconciliation and include:
o Entry date
o Amount
o Explanation
o Resolution status
• The Finance Director will review the log quarterly to ensure compliance.
9. Documentation and Retention
o All non-GL entry documentation must be stored in a secure digital folder by fiscal year and month.
o Retention period: 7 years, or longer if required by grant or audit standards.
10. Training and Review
o Finance staff will receive annual training on this policy and reconciliation best practices.
o The policy will be reviewed annually or after any audit finding related to cash reconciliation.
11. Appendix: Sample Non-GL Entry Log
Role Responsibility
Preparer Enters non-GL item, attaches documentation, and submits for review
Reviewer Verifies accuracy, necessity, and completeness of documentation
Finance Director Approves all non-GL entries and ensures they are cleared in the following month
54 8.2 4 FIN2026-03-Bank Reconciliation Exception Policy-Non-GL Entries
Entry ID Date Bank
Account
Amount Explanation Cleared? Date
Cleared
Approved
By
NGLE202510-
001
10/31/202
5 General
Fund
$2,500 Timing difference
– deposit in
transit
Yes 11/30/202
5 Finance
Director
55 8.2 5 FIN2026-04-Bank Reconciliation Module Entry Policy Page 1 City of Shasta Lake
City Council Policy
Department
FINANCE
DEPARTMENT
Title:
Bank Reconciliation Module
Entry Policy
Policy #: FIN-2026-04
Revision#: N/A
Date Approved: 02/03/2026
Last Update: N/A
Prepared by: Wendy Howard,
Finance Director
Approved by City Council 02/03/2026 CC2026-XX
1. Purpose
This policy establishes a formal process for discontinuing the use of non-general ledger (non-GL) entries in the bank reconciliation module. It ensures that all reconciliation activity is transparent, traceable, and compliant with audit standards.
2. Scope
This policy applies to all staff responsible for preparing or reviewing bank reconciliations within the City’s financial system.
3. Definitions
• Non-GL Entry: A transaction entered into the bank reconciliation module that does not post to the general ledger.
• Reconciling Item: A legitimate difference between the bank statement and the general ledger that requires explanation.
• Audit Trail: A clear, documented path showing the origin and resolution of a financial transaction.
4. Background
56 8.2 5 FIN2026-04-Bank Reconciliation Module Entry Policy Page 2 The City’s prior use of non-GL entries in the reconciliation module contributed to a $95,000 discrepancy identified in multiple audit years. To strengthen internal controls and ensure audit readiness, this practice is being discontinued.
5. Policy Statement
Effective immediately, the City will no longer use non-GL entries in the bank reconciliation module. All reconciling items must be supported by actual transactions recorded in the general ledger.
6. Procedures
a. Monthly Reconciliation
• All bank accounts must be reconciled to the general ledger by the end of the following month.
b. Reconciling Items
• Only legitimate timing differences (e.g., deposits in transit, outstanding checks) may be used.
• No manual entries will be made in the reconciliation module unless they are tied to a GL transaction.
c. Discrepancy Resolution
• Any unexplained differences must be:
o Investigated by the preparer
o Documented with a memo
o Resolved through a correcting journal entry
7. Roles and Responsibilities
Role Responsibility
Preparer Complete monthly reconciliation and identify
discrepancies
57 8.2 5 FIN2026-04-Bank Reconciliation Module Entry Policy Page 3 Reviewer Verify accuracy and ensure no non-GL entries are used Finance Director Approve final reconciliation and corrective actions
8. Internal Controls
• System access to the reconciliation module will be restricted to authorized users. • All reconciliations must be reviewed and signed by a supervisor. • A monthly reconciliation checklist will be completed and retained.
9. Documentation and Retention
• Each reconciliation must include:
o Bank statement
o GL detail report
o List of reconciling items with explanations
• All documentation will be retained for 7 years in a secure digital folder.
10. Training and Review
• Staff will receive training on this policy and reconciliation best practices. • The policy will be reviewed annually or after any audit finding related to cash management.
11. Appendix: Sample Reconciliation Entry Log
Date Bank
Account
GL
Balance
Bank
Balance
Reconcili
ng Items
Explanati
on
Correctiv
e Action
Approved
By
06/30/2025 General
Fund
$1,000,000 $1,002,500 $2,500
deposit in
transit
Timing
difference
None Finance
Director
58