[HISTORY: Adopted by the Town Board of the
Town of Albion 5-12-2008. Amendments noted where applicable.]
The cash disbursement procedure applies to reimbursement
for all types of expenses incurred for or on the behalf of the Town
of Albion (e.g., equipment, materials, maintenance services, office
supplies, travel, training, professional membership, and consumables).
The purpose of this policy is to provide a narrative
of the cash disbursement procedures and to complement the Voucher
and Claims Process Flow Chart.[1]
[1]
Editor's Note: The Voucher and Claims Process Flow Chart is included as an attachment to this chapter.
[Amended 12-14-2020 by L.L. No. 3-2020]
This procedure supports the purchasing policy set forth in Chapter 29.
A.
Invoices go to the department head.
B.
All departments are in charge of their own purchases. All department employees are to obtain slips and/or receipts for submission to their respective department head in a timely fashion. All purchases are to be made in accordance with Albion Town Code Chapter 29. All such slips and/or receipts are to be vouchered for payment by the department head.
[Amended 12-14-2020 by L.L. No. 3-2020]
C.
The appointed Bookkeeper verifies that purchasing
procedures have been followed, verifies receipt of goods and services,
and verifies the mathematical accuracy of the invoices.
D.
The Clerk or Deputy Clerk prepares claim vouchers,
numbers the claim vouchers, enters the claim vouchers on an Excel
spreadsheet for the Town Board (the abstract), and submits the claim
vouchers and listing to the Town Board for approval.
E.
Authorized
prepays include utilities, medical insurance, and postage. These invoices
are forwarded on a claim voucher to the accounting firm, which processes
the check for the Supervisor's approval before Town Board approval.
Claim vouchers are included on the following month's abstract
for approval by the Town Board.
[Amended 12-14-2020 by L.L. No. 3-2020]
F.
Three Town Board members review and approve claim
vouchers.
G.
Approved
vouchers are sent to the accounting firm for check preparation and
recording.
[Amended 12-14-2020 by L.L. No. 3-2020]
H.
The
accounting firm shall mail the checks and vouchers to the Supervisor,
who aligns the checks with the abstract, signs the checks, and returns
them to the Town Clerk, who stamps and mails the checks. The list
returned by the accounting firm is called "Disbursements by Account,"
and the total equals the amount of the list sent to the accounting
firm.
[Amended 12-14-2020 by L.L. No. 3-2020]
I.
Bank
statements are mailed directly to the Town. The accounting firm prepares
bank reconciliations using on-line services. The Supervisor verifies
the bank reconciliations by comparing monthly reports from the bank
statements with the reconciliation prepared.
[Amended 12-14-2020 by L.L. No. 3-2020]
[Added 12-14-2020 by L.L.
No. 3-2020]
A.
Cash
and checks collected by the Town of Albion departmental employees
shall be kept secured at all times in locked boxes/safes until remitted
to the proper office for deposit.
B.
Checks
shall be restrictively endorsed as soon as received.
C.
Personal
or payroll checks cannot be cashed from money in cash drawers.
D.
Checks
must be for the exact amount due; no "cash back" is permitted.
E.
A
prenumbered duplicate receipt (or other acceptable evidence for auditing)
will be given for any cash, checks or money orders received. One copy
shall be provided to the customer; the other shall be retained for
audit purposes. Receipts shall be given in order and voided receipts
kept on file.
F.
Office
copies of receipts shall be periodically reviewed by the Town Supervisor
and/or Town Clerk. Any missing forms shall be investigated.
G.
Deposits
shall be made timely, no later than 72 hours after receipt.
H.
Detailed
deposit slips shall be prepared and maintained.
I.
The
person who performs the bank reconciliation shall be the final custodian
of all deposit slips.
J.
An
NSF charge of $20 will be assessed for checks returned for nonsufficient
funds. Notification of the NSF check charge should be included on
all billings and posted in public view.
K.
Receipts
shall be recorded in the accounting system in a timely manner.
L.
Daily
cash collection records shall be reconciled to the amount of cash
on hand at the end of the business day.
[Added 12-14-2020 by L.L.
No. 3-2020]
A.
Checks
issued shall be prenumbered and in sequence.
B.
Blank
checks and check stock shall be secure at all times.
C.
Checks
must be made payable to a specific payee.
D.
Check
signing authority shall be limited to the Town Supervisor and Deputy
Supervisor.
E.
The
facsimile signature device shall be secured in a locked location under
the control of the Town Supervisor and/or Town Clerk.
F.
Signing
a blank check is not permitted.
G.
Electronic
banking utilizes computer and electronic technology to streamline
the processing and recording of receipts and disbursements while reducing
costs of processing said transactions. Receipts, disbursements and
transfers in proper circumstances can be processed via electronic
funds transfer (EFT) services, whether transferring funds from a savings
to a checking account within the same bank or making a payment to
a different vendor's bank. The Board authorizes the Town Supervisor
and/or Town Clerk to engage in electronic banking and/or electronic
transfers in accordance with all applicable laws and regulations,
including General Municipal Law § 5-a, authorizing same,
all to be in conformity with the guidelines established by this chapter.
The Town Clerk is authorized to initiate electronic transfers when
appropriate with prior approval from the Town Supervisor. The Board
also recognizes that most banking institutions no longer provide canceled
paper checks to their customers, instead offering an electronic image
obtained online. The Board authorizes the acceptance of said electronic
images in lieu of canceled checks in accordance with General Municipal
Law § 99-b, Subdivision 2.
H.
Electronic
banking activities will be used for, but not limited to, the following:
(1)
Online banking services such as reviewing account balances, retrieving
bank statements, downloading copies of canceled checks and making
stop-payment orders.
(2)
Electronic depositing of checks received.
(3)
Preauthorized debit payments.
(4)
ACH vendor payments.
(5)
EFT transfers.
(6)
Electronic Federal Tax Payment System (EFTPS).
(7)
Electronic State Tax Payment System (Prompt Tax).
I.
The
Town's auditing firm is to provide monthly reconciliation and
review in order to provide safeguards relating to separation of duties.
All electronic banking transactions for the Town are to be conducted
on a secure computer. The Town Supervisor is responsible to ensure
that employees with electronic access to bank accounts and who are
no longer employed by the Town are properly removed from all accounts
as of the date of termination. In the case of the Town Supervisor
not being able to perform his/her duties, the Deputy Town Supervisor
is to do so.
J.
The
Board is responsible for implementing adequate internal controls for
all electronic banking. An effective internal control system includes,
but is not limited to, segregation of duties, proper authorization
and adequate documentation for all electronic transactions. The accounting
firm for the Town is to be given information on all electronic banking
transfers as described herein in a timely fashion. The accounting
firm should present any findings of concern or questions directly
to the Town Supervisor and/or the Board.
[Added 12-14-2020 by L.L.
No. 3-2020]
B.
Prior
to authorizing a major purchase and periodically for routine purchases,
the availability of budget appropriations shall be verified.
C.
All
vouchers shall include specific details about the items or services
to be purchased, including quantity, costs, model numbers (if available),
terms of sale and approvals to purchase.
D.
All
vouchers shall be sequentially numbered.
E.
When
goods or services are delivered, receiving or packaging slips shall
be verified against the quantity, type and condition of the goods
received.
F.
The
responsibility for the receipt and verification of items ordered shall
be segregated from the employee who requested or authorized the purchase.
G.
Each
department that ordered goods or services shall assemble a voucher
package containing the receiving slip, the original invoice and the
signed approval of the department head stating that the goods or services
were received and they are a true and just charge. All voucher packages
shall be forwarded to the Town Supervisor and/or Town Clerk.
H.
Checks
shall be mailed directly to the vendor and not returned to the department
which made the purchase.
I.
The
criteria for evaluating claims:
(1)
Is the claim for a valid and legal purpose?
(2)
Was the purchase authorized and approved?
(3)
Are there sufficient appropriations to pay the claim?
(4)
Is the claim mathematically correct?
(5)
Is the claim sufficiently itemized?
(6)
Does the claim meet legal and policy requirements in relation to
competitive bidding and the Town's procurement policy?
(7)
Does the attached document support the claim?
(8)
Were the goods or services actually received?
[Added 12-14-2020 by L.L.
No. 3-2020]
A.
Credit
card use shall be limited to appropriations not payable by the voucher
method.
B.
The
Town Supervisor is authorized to enter into a contract with any banking
institution authorized to issue credit cards in the State of New York
for purposes of obtaining a credit card for the Town, all to be in
conformity with Town Law § 118. Credit cards shall be kept
in the office of the Town Supervisor and/or Town Clerk.
C.
Credit
cards shall only be used by department heads or employees assigned
by department heads.
D.
Credit
cards shall be signed out for each use and returned the same day.
E.
Credit
card receipts shall be returned with the card and must be in original
form. Copies of receipts are not acceptable.
