A. 
The Borough shall maintain separate funds (groupings of accounts set aside for the purpose of accounting for moneys or other resources of general functions or specific activities as required by grantor, statute or other requirement) within its accounting system. A fund is a fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, that are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations.
B. 
Each fund is an entirely separate entity. Transactions between funds will be carefully recorded and fully supported by issuing receipts and warrants. Transfers may be made between funds in the form of temporary loans as provided by law.
C. 
The resources of a particular fund may be used only for the purposes for which the fund was created or as otherwise authorized by law. Therefore, one of the fundamentals of good accounting is that a proper charge be made for all substantial interfund services and that an adequate record be made for all interfund receipts and disbursements. In brief, such billings should be made by all funds concerned and warrants drawn from one fund to another in payment thereof, so that each fund will show its correct financial position.
D. 
Incidental services and supplies given by one fund to another shall be billed to and paid for by the fund receiving such services and supplies. In case an employee of one fund works part-time for another fund, the pay of that employee shall be divided in recording the payroll, and the proper amount charged to each fund.
A. 
The accounting system serves many varied purposes. Primarily it must furnish the responsible officials with an effective aid in the financial management of the Borough. In addition, it must serve the taxpayer by providing an adequate record of operations and informative statements of results at frequent intervals.
B. 
The Borough's primary accounting system is intended to provide information to meet the following purposes:
(1) 
Records shall be kept in full compliance with all legal and statutory requirements;
(2) 
Accounting shall be based on a separation of funds (as defined in Article III);
(3) 
Distinction with respect to character of expenditure shall be maintained;
(4) 
The uniform classification of accounts shall be used in budgeting, accounting and reporting;
(5) 
Budgetary control of receipts and disbursements shall be established; and
(6) 
Unexpended balances of appropriations, for other than encumbrances by contract or purchase order, shall lapse at the close of each year.
C. 
The Borough shall maintain a suitable electronic accounting system that at a minimum provides the above information in a computerized system or record.
D. 
The Borough shall maintain its accounting system on the modified accrual basis of accounting, which recognizes an economic transaction or event as revenue in the operating period when the revenues are both measurable and available to liquidate liabilities of the current period. "Available" means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Similarly, expenditures are generally recognized when an event or transaction is expected to draw on current available resources.
The major principles of accounting which underlie the uniform system contained in this Administrative Code are:
A. 
Records shall be kept in full compliance with all legal requirements.
B. 
Accounting shall be based on a separation of funds.
C. 
Distinction with respect to character of expenditure shall be maintained.
D. 
The uniform classification of accounts shall be used in budgeting, accounting and reporting.
E. 
The records shall be kept on either a single-entry cash basis or double-entry modified accrual basis.
F. 
Budgetary control of receipts and disbursements shall be established.
G. 
Unexpended balances of appropriations, for other than encumbrances by contract or purchase order, shall lapse at the close of each year.
A. 
General provisions.
(1) 
The Borough will prepare and adopt an annual operating budget for all Borough funds. This budget should present an opportunity to carefully plan and provide for municipal activities for the coming year and facilitate information to create and adopt a reasoned and balanced budget related to how municipal resources will be spent. The budget process has several purposes:
(a) 
The budgeting process should allow the elected governing body to express its goals for community services for the coming year that is readily understandable by the citizens.
(b) 
The budget allocates revenues among various municipal services. Careful decisions on what is most important have to be made in determining where the limited amount of funds available will be spent.
(c) 
The budget provides citizens with valuable information on how their tax dollars will be spent.
(d) 
The budget document authorizes expenditures for the budgeted items by making appropriations.
(e) 
The budget provides a framework for monitoring the performance of revenues and the accumulation of expenditures during the year.
(2) 
The Borough is required under its Home Rule Charter to adopt an annual operating budget and budgets for all Borough-created special funds for the following fiscal year no later than December 31. The following items should be included in the operating budget and budgets for all Borough funds:
(a) 
Projections of revenue estimates and proposed expenditures must be made.
(b) 
The minimum municipal obligation of the municipality for the following year must be determined by the chief administrative officer of each municipal pension plan and submitted to the Borough Council by September 30.
(c) 
A public meeting of the Borough Council is held at which time the budget for all funds of the Borough is discussed.
(d) 
After the proposed budget is prepared, it must be advertised for a period of at least 10 days prior to final adoption.
(e) 
The Borough Council must officially adopt a balanced budget before December 31 of the year preceding the budget year.
B. 
Budget calendar. The budget calendar is intended to outline what should be done, by whom and when to ensure the budget is created on a timely and efficient manner. The Borough's budget calendar is as follows:
(1) 
Annual operating budget.
(a) 
The budget will be comprised of all funds of the Borough, not just the general fund.
Due Date
(no later than)
Budget Activity
Individual Responsible
September 1
Obtain current year actual revenue and expenditure amounts and project to year-end
Borough Manager
September 15
Compare annualized current year activity to current year budget
Borough Manager
September 30
Municipal pension obligation for the following fiscal year submitted to Borough Council
Chief Administrative Officer of pension plan
October 1
Project revenue estimates for the following year's budget
Borough Manager/Accountant
October 15 to October 30
Preparation of proposed operating budget and Borough Manager meetings with Finance Committee for initial review and comment
Borough Manager/Finance Committee
November Council Meeting
Presentation of proposed budget and budget message to Borough Council (no later than November 15)
Borough Council
November (after presentation of proposed operating budget)
Advertisement that the proposed operating budget is available for public inspection (must run minimum of 10 days before Council action)
Borough Manager
Mid to End November
Council work session(s) to review proposed budget
Borough Council
December Council Meeting
Borough Council adoption of the annual operating budget, budgets for all Borough special funds and the adoption of applicable tax legislation
Borough Council
December 31
Charter deadline to adopt all Borough fund budgets
Borough Council
January
In years following a municipal election, the adopted operating budget may be amended, subject to the 10-day public notice requirement and 7-day ordinance notice requirement
Borough Council
February 15
Deadline to adopt amended Budget Ordinance or resolution and amended tax ordinance (only applicable in years following a municipal election)
Borough Council
(b) 
The budget shall provide a complete financial plan of all Borough funds and activities for the ensuing fiscal year in accordance with all generally accepted accounting principles and shall be in such form as the Borough Manager deems desirable or the Borough Council may require. In organizing the budget, the Borough Manager shall utilize the most feasible combination of expenditure classification by fund, organization unit, program, purpose or activity, and object. The budget shall contain, among other things, the following:
[1] 
It shall begin with a budget message to provide a simple and clear general summary of the various budgets and their important features. [NOTE: Home Rule Charter, Section 1302(d)]
[2] 
It shall show, in detail, all estimated income, indicating the existing and proposed tax levies, as well as other assessments, fees and charges.
[3] 
It shall show all proposed expenditures, including debt service, for the ensuing fiscal year.
[4] 
It shall be based on the prior year actual expenditures modified for known facts and circumstances for employees and expenditure categories.
[5] 
While the actual budget will only show the proposed amounts, the supporting detail shall be arranged to show comparative figures for actual and estimated income and expenditures for the current fiscal year and actual income and expenditures of the preceding three to five fiscal years.
[6] 
It shall indicate proposed expenditures during the ensuing fiscal year, detailed by offices, departments and agencies, in terms of their respective work programs and the methods of financing such expenditures.
(c) 
The total of proposed expenditures shall not exceed the total of estimated income.
(2) 
Lapse of appropriations.
(a) 
Every appropriation, except an appropriation for a capital expenditure, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered.
(b) 
Every effort should be made by the Borough Manager and other Borough officials to have bills and claims presented before the end of the year so that such items shall be charged to the appropriation and disbursement account of the year in which the service or commodity was supplied.
(c) 
A claim of a prior year may be paid in the following year if the prior year's appropriation is properly encumbered and there are sufficient funds available. In order for the prior year appropriation to be encumbered, there must be an outstanding purchase order or contract that supports each encumbered item.
(3) 
Capital plan and budget.
Due Date
Budget Activity
Individual Responsible
June 30
Begin reviewing and developing 3-year capital plan and budget
Borough Manager
August 1
Submission of 3-year capital plan and budget to Borough Council
Borough Manager/Borough Council
October 1
Borough Council adoption of 3-year capital plan and budget
Borough Council
(a) 
The capital plan shall include:
[1] 
A clear general summary of its contents;
[2] 
A list of all capital improvements and other capital expenditures which are proposed to be undertaken during the three fiscal years next ensuing, with appropriate supporting information as to the necessity for each;
[3] 
Cost estimates and recommended time schedules for each improvement or other capital expenditure;
[4] 
Method of financing, upon which each capital expenditure is to be reliant;
[5] 
The estimated annual cost of operating and maintaining the facilities to be constructed or acquired; and
[6] 
All capital projects must be included in the capital plan budget.
(b) 
The above shall be revised and extended each year with regard to capital improvements still pending or in the process of construction or acquisition.
(c) 
Copies of the budget, capital plan and appropriation and revenue ordinances shall be public records and shall be made available to the public at the Borough's administrative offices.
C. 
Budgetary control.
(1) 
A budget is the record of a definite financial program for a given period of time and the means of carrying such program into effect. It shows the contemplated expenditures and their relation to the revenues received and expected.
(2) 
In preparing the budget, careful planning for the necessary income is essential, and it is equally important to provide a specific program for the disposition or anticipated revenue.
(3) 
No budget plan will work of its own accord. With complete information available it is possible for the Borough Manager to formulate a funded budget.
(4) 
Appropriations as stated in the budget, or as modified by supplemental appropriations, shall constitute the limitation of disbursements. No disbursement shall be made without an appropriation therefore unless specifically authorized by law.
D. 
Transfers between departments.
(1) 
When proposing transfers from one department or office to another, the Borough Manager may transfer up to 5% of the funds in a budgeted line item during a fiscal year that they deem is unencumbered. The Borough Manager shall notify Council of any transfer made no later than the next regularly scheduled Council Meeting.
(2) 
Budget transfers that may exceed 5% must be approved by a resolution of Council prior to the transfer of funds.
(3) 
All transfers between Borough funds that are not approved by Council in an adopted budget, shall be approved by a resolution of Council, including any required repayment terms.
A. 
The Borough should seek to maintain only a minimum number of bank accounts in order to avoid unnecessary bookkeeping and possible errors in charging warrants to bank accounts. So long as an ordinance does not require the keeping of a separate bank account, funds should be consolidated into as few accounts as possible.
B. 
Some bond ordinances and federal regulations require separate bank accounts for various funds and must be followed. Funds of other entities held by the Borough's fiscal officer must be accounted for in separate bank accounts.
C. 
Expenses and receipts shall be recorded only when cash is disbursed or received. The shortcomings of this method are minimized by supporting subsidiary records.
A. 
The Borough shall maintain its deposits with financial institutions in public fund accounts as designated by the financial institution in the same form in which they were received. This simply means all daily receipts received by the Borough should be deposited intact.
B. 
The Borough will structure its investments to facilitate timely payment of all expenditures and for the accumulation of resources. In most cases, expenditures flow through the Borough on a fairly predictable pattern that is typically similar from year-to-year. The flow of cash into the Borough is also predictable and consistent from year-to-year, however the timing of cash receipts may not align with the timing of cash disbursements. As such, the Borough has an operating reserve that will be used to mitigate these temporary deficiencies in cash inflows over cash outflows.
C. 
Five types of investments are authorized by the municipal codes:
(1) 
United States Treasury bills.
(2) 
Short-term obligations of the United States Government or its agencies or instrumentalities.
(3) 
Savings accounts, time deposits and certificate of deposit in banks, savings and loan associations and credit unions insured by federal deposit insurance agencies. Any deposits above the limit insured by federal agencies must be secured by collateral.
(4) 
General obligation bonds of the United States, the Commonwealth of Pennsylvania or Pennsylvania political subdivisions or any of their agencies or instrumentalities backed by the full faith and credit of the issuing government.
(5) 
Shares of registered investment companies, such as mutual funds or money market funds, investing solely in the types of securities listed above. Investment objectives and practices of any investment company should be closely scrutinized by the municipality to ensure its investments are limited to the classifications permitted to it.
D. 
Monies from more than one fund can be combined to purchase a single investment, provided that monies of each of the funds are accounted for separately and earnings are separately computed, recorded and credited to each of the funds. Municipalities may also join with other political subdivisions and municipal authorities for joint investment, provided that separate accounting, recording and crediting is maintained for each unit's funds. Cooperative investment programs are available through the Pennsylvania Local Government Investment Trust and the State Treasury.
E. 
Treasury bills are short-term United States Government securities, issued with maturities as short as 30 days, traded daily in the open market, and may be purchased by arrangement made through your local banking institution. These securities are sold at discounts which fluctuate, and they bear interest at variable rates. Because of these fluctuations, you should discuss with your banker the relative merits of treasury bills and the other authorized forms of investments at the time you are preparing to make an investment. Many municipalities neglect to take advantage of the extra earnings which can result from careful planning of investment procedures.
F. 
The use of time deposits rather than savings accounts requires a more careful determination of when funds will be needed since these deposits cannot be converted to cash until expiration of the term. Deposits should be timed to mature before large expenditures are likely to occur. Of course, these investments should be distributed among several saving institutions so that the Federal Depository Insurance Corporation (FDIC) insurance limits are not needed in any one institution. If FDIC limits are exceeded, the municipality must verify that the financial institution has collateralized the excess deposit amount by pledge of assets pursuant to the requirements of Pennsylvania Act 72 of 1971, as amended.[1] This can be done on a pooled basis. Pennsylvania Act 72 of 1971, as amended, requires that financial institutions accepting deposits from public entities are required to pledge collateral to secure public deposits in excess of the FDIC insurance limits.
[1]
Editor's Note: See 72 P.S. § 3836-1 et seq.
A. 
Municipal borrowing is subject to limits set by the General Assembly under the authority of Article IX, Section 10, of the Pennsylvania Constitution. This part of the Constitution was amended by the voters in 1968, making a basic change in the method of computing municipal debt limits. Prior debt limits were based on assessed valuation of real estate within the taxing unit. The new provision changes the base to a percentage of the municipality's total revenues. This allows more flexible and realistic debt limits, based on the municipality's total ability to pay.
B. 
Debt limits are set for all local government units, except the city of Philadelphia, by the Local Government Unit Debt Act, 1972 P.L. 781, No. 185, as amended.[1] Home rule municipalities are subject to the substantive provisions of the Act and may adopt the procedural provisions by reference in their home rule charters.
[1]
Editor's Note: See 53 Pa.C.S.A. § 8001 et seq.
C. 
The Local Government Unit Debt Act establishes the nonelectoral debt limit for third class cities, boroughs and townships.
The Borough shall provide appropriate insurance coverage against the various risks of loss anticipated. Such policies are intended to include, but not be limited to:
A. 
General insurance.
(1) 
Property.
(2) 
Liability/casualty.
(3) 
Automobile.
(4) 
Umbrella.
B. 
Public officials liability.
C. 
Fidelity bond.
D. 
Employee dishonesty.
E. 
Law enforcement liability.
A. 
General provisions.
(1) 
All transactions shall be suitably supported by underlying documentation and approved by appropriate Borough staff. When processing transactions, individuals should ask themselves the following questions:
(a) 
How well do I know this vendor, supplier or payee?
(b) 
Do I know that the vendor actually provided the goods or services identified on the invoice?
(c) 
Do I know that the vendor is using the correct amounts for price, tax, shipping, and other costs?
(d) 
On what basis do I know that the prices charged are reasonable?
(e) 
How do I know that the quantities make sense?
(f) 
How do I know that the invoice and other documents are mathematically correct?
(g) 
Do I know that this invoice has not already been paid?
(2) 
All disbursements shall be approved by the respective department head, who then passes the invoices along to the fiscal staff for processing and approval by the Borough Manager. Once the Borough Manager approves, Council receives a listing of all bills at its monthly meetings for approval/ratification.
B. 
Month-end duties. At the close of the month, the accounting records and transactions will be posted and closed out as promptly as possible including the reconciliation of all depository accounts with the general ledger and bank statements. A monthly balance and financial report shall be prepared for the Board.
(1) 
Ensure payroll service organization has reported and paid all Social Security (FICA) withholdings each reporting period to the Internal Revenue Service on or before the dates established by federal regulations. See Federal Circular E for payment procedures and due dates.
(2) 
Deposit federal income tax withheld from employees' compensation in accordance with federal regulations. This may vary from one unit to another dependent on the total amount withheld per month. See Federal Circular E for payment procedures and due dates.
(3) 
Deposit state income tax withheld from employees' compensation in accordance with regulations.
(4) 
Reconcile the Borough's individual bank statements between the monthly account statement and the general ledger transactions.
(5) 
Reconcile due to and due from accounts for agreement and potential repayment of outstanding amounts.
(6) 
Prepare a monthly budget versus actual report and a cash position report for management and Borough Council, including any necessary commentary as to significant fluctuations between budget and actual results.
C. 
Quarter-end duties. At the close of each calendar quarter, the following transactions and events should occur:
(1) 
Reconcile the real estate tax collections and receivable to individual Tax Collector reports.
(2) 
Reconcile capital purchases.
(3) 
Make reports of police and employee pension payment contributions to the Public Employees' Retirement Fund as required by that agency.
(4) 
Deposit local income tax and local services taxes withheld from employees' compensation in accordance with regulations.
(5) 
Ensure quarterly tax files are completed and filed as appropriate, including IRS Form 941.
D. 
Year-end duties. At the close of each year, the Borough's Treasurer and Manager shall post, reconcile, adjust and close, as promptly as possible, the annual accounting records. This year-end close should consist of the following considerations, at a minimum:
(1) 
Reconcile and roll-forward long-term debt.
(2) 
Reconcile contributions to and distributions from the Borough's retirement funds.
(3) 
Reconcile compensated absences and determine amount of carry-forward time available to each employee.
(4) 
Reconcile grant activity, including year-end receivables or deferrals of cash.
(5) 
Reconcile quarterly payroll tax returns to salary and wage expense recorded in the general ledger.
(6) 
Prepare and process W-2s and W-3s for distribution to employees and tax bodies.
A. 
The Borough's fund balance consists of various categories reflecting the extent of internal and external constraints on the use of existing resources.
B. 
The specific categories of fund balance are as follows:
(1) 
Nonspendable. Some resources are in a form that either never could be spent (i.e., inventories) or are in a form that is temporarily not spendable (i.e., loans receivable). In addition, any resources that are legally restricted or required to be maintained in perpetuity that are otherwise in spendable form, are also considered nonspendable.
(2) 
Restricted. Some fund resources are subject to external restrictions that are legally enforceable by outside parties (grantors, bondholders, etc.) or the use of resources is limited through enabling legislation (i.e., motor fuel tax, special purpose taxes, etc.).
(3) 
Committed. Some self-imposed limitations on the use of fund resources enjoy the force of law, meaning that the legislative body itself is bound by the limitation until and unless it reverses itself or otherwise modifies the limitation by taking formal action equivalent to the action originally taken to impose the limitation.
(4) 
Assigned. Other self-imposed limitations on the use of fund resources, as determined through informal action of the governing body (Council) or its designee (Borough Manager) also serve to limit the use of resources for specified purposes. Further, any positive amount of fund balance in special revenue, capital projects, debt service or permanent funds, not otherwise constrained are by default assigned for the purposes of the individual fund.
(5) 
Unassigned. This category represents resources that are in spendable form and are neither restricted, committed nor assigned. The General Fund is the only fund that should have positive unassigned fund balance.
C. 
It is the Borough's policy to utilize restricted resources before unrestricted resources when either can be utilized. When an expenditure is incurred that can be paid using either restricted, committed, assigned or unassigned amounts, the Borough's policy is generally to apply the expenditures to restricted resources, then to committed resources, then to assigned resources and then to unassigned resources as necessary.
A. 
The procurement process within the Borough seeks to provide the best value to its ratepayers, customers and community in the manner in which it carries out its duties, functions, responsibilities and obligations in the purchasing and provision of goods and services.
B. 
The Borough's procurement process seeks to incorporate controls over purchases that accomplish at least the following:
(1) 
Assure materials and services are ordered only by authorized employees and officials;
(2) 
Provide open and fair competition for the procurement of goods and services;
(3) 
Purchases comply with relevant state statutes and local needs;
(4) 
Assure ordered goods are actually received prior to authorizing payment; and
(5) 
Identify monies encumbered for those purchases ordered, but not yet received.
C. 
The Borough seeks to follow this framework to:
(1) 
Deliver best value for money in the acquisition of goods and the delivery of services to the community;
(2) 
Ensure the efficient, effective and ethical use of resources;
(3) 
Ensure accountability and transparency;
(4) 
Ensure that Council's purchasing activities are in accordance with its legislative and common law responsibilities;
(5) 
Encourage open and fair competition;
(6) 
Embrace environmentally sustainable procurement; and
(7) 
Appropriately manage risk.
D. 
The Borough may purchase goods and services through a variety of means and manners, including:
(1) 
Direct sourcing and purchasing from a particular supplier;
(2) 
Obtaining quotations, either written or verbal from suppliers to select provider;
(3) 
Requesting respondents from a range of suppliers; and
(4) 
Calling for open and competitive bidding.
E. 
The Borough shall follow the Borough Code for purchasing and contracts, specifically §§ 1401 through 1411 of the Borough Code,[1] and as they may be amended in the future. When the Borough receives federal grants, it will follow procurement provisions within the Borough Code to the extent that such provisions conform with the requirements within the uniform guidance.
[1]
Editor's Note: See 8 Pa.C.S.A. §§ 1401 through 1411.
A. 
No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal or state award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agency, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.
B. 
The officers, employees, and agents of the Borough may neither solicit nor accept gratuities, favors or anything of monetary value from contractors or parties to subcontracts, unless the gift is an unsolicited item of nominal value.
C. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
AFFILIATION TO OR WITH AN ORGANIZATION
Holding the position of officer, trustee, partner (general or limited), employee or regularly retained agent of such organization.
RELATED PERSON OF AN INTERESTED PERSON
A spouse, child, sibling, parent, grandparent or grandchild of an interested person, or any related person owns more than 35% of the voting shares, a partnership in which the interested person or any related person owns more than 35% of the profits interest, or a trust or an estate in which the interested person or any related person enjoys more than 35% of the beneficial interest.
TRANSACTION
Any transaction with the Borough other than a transaction that involves a charitable contribution by the interested person or a related person to the Borough for which the contributor received no premium or preferential treatment other than that provided by the Borough to all other contributors making a comparable contribution; and a transaction which involves the rendering of services of a common carrier, contract carrier or public utility, at rates or charges fixed in conformity with law or governmental authority.
D. 
Procedures.
(1) 
All interested persons promptly shall disclose to the Borough any transaction or proposed transaction with the Borough of which he or she is aware:
(a) 
To which such interested person, or a related person is a party, regardless of the dollar amount of the transaction; or
(b) 
With an organization with which such interested person, or a related person has an affiliation and in which the amount involved in the transaction exceeds or is likely to exceed $5,000.
(2) 
Disclosure shall be made directly to the Borough Manager or the Borough Council, who, in consultation, shall be responsible for the administration of this policy. In addition, each member of Borough Council shall annually certify and complete the Commonwealth Ethics Form before May 1 of each year of office.
(3) 
Should a conflict or potential conflict be identified, the following procedures shall be followed:
(a) 
If the Borough Council determines that a conflict of interest exists, the Council shall consider alternatives to the proposed transaction to determine whether the Borough can obtain a more advantageous transaction of arrangement with reasonable efforts from another person or entity, and also shall consider material and information which assists the Council in determining whether the compensation paid in the transaction is fair market value for such foods or services.
(b) 
After consideration of appropriate information as to alternatives and comparability, the Council may approve a transaction if it determines by a majority vote of the disinterested members of the Council that the transaction or arrangement is in the Borough's best interest and for its own benefit, and the transaction is fair and reasonable to the Borough.
(c) 
The written minutes of the Council will include a general description of any transaction that was approved and the basis for the approval, the information considered by the Council before voting on the transaction and how that information was obtained, and the members of Council who were present for the discussion and the vote. If the Council determines that a transaction should not be approved, the written minutes will reflect the reasons for its determination and its recommendation, if any.
E. 
Gifts and favors. No interested person shall solicit or accept a promise of future employment, or any other thing of monetary value based on any understanding that the vote, official action or judgment of the interested party would be influenced.
A. 
The following numbering system is used for numbering all accounts. The Borough follows the PA DCED Chart of Accounts for Municipalities, most recent edition, available on the PA DCED website. (https://dced.pa.gov/library/?wpdmc=publications_and_documents)
B. 
Following is the key for the numbers and explanations, further information on the exact lines recommended is found in the DCED Chart of Accounts referenced to above:
(1) 
Funds. The Borough's funds shall be comprised of all funds required by the Borough Code and the Borough's Home Rule Charter or as determined necessary by Borough Council.
(2) 
Account number. The first digit of an account identifies the type of account. The next two digits in the numbering system then identify the particular account.
(a) 
1xx: Assets and other debits.
(b) 
2xx: Liabilities and other credits.
(c) 
3xx: Revenues and other financing sources. Since it is necessary to further identify revenues, a suffix of a fourth and fifth digit is added, for example 301.10, general fund real estate taxes, current year.
(d) 
4xx: Expenditures and other financing uses. Since it is necessary to further identify expenditures to a specific program or function, a suffix of a fourth and fifth digit is added, for example 406.20, office supplies.
A. 
"Direct distribution" for the purpose of this section shall mean the salary expenses of an employee or employees applicable to an organization unit; or the amount of a claim or of a specific item on a claim which is applicable to an organization unit. No proration of such direct expense is required unless specifically required by the explanations which follow or unless a different fund is affected.
B. 
The salary of an employee shall be charged entirely to the organization unit principally concerned with service. Claims for other expenses are also required to be charged to the organization unit which is principally concerned.
C. 
When ordering supplies or materials, the order should show what portion should be charged to each organization unit or fund concerned. The invoice be rendered in the same manner.
D. 
"Objects of expense" have been defined to mean an expenditure classification which applies to the article purchased or the service obtained. An object of expense is always used in conjunction with an organization unit and the proper fund. Major classifications of expenditures used with each organization unit and fund are as follows:
(1) 
Personnel services. This classification includes expenditures for salaries, wages and related employee benefits provided for all persons employed. Employee benefits include employer contributions to a retirement system, group health and life insurance, unemployment compensation, uniform allowance, self-insurance and similar benefits.
(2) 
Supplies. This classification includes articles and commodities which are consumed or materially altered when used. Supplies should include office supplies, operating supplies, repair and maintenance supplies and other similar supplies.
(3) 
Other services and charges. This classification includes expenditures for services other than personal services which are required by the Borough in the carrying out of its assigned functions or which are legally or morally obligatory on it. Types of services and charges would include professional services, communication and transportation, printing and advertising, insurance (other than group health, life and self-insurance), utility services, contracted repairs and maintenance, rentals, debt service expenditures for principal and interest payments and general long-term debt and other similar services and charges.
(4) 
Capital outlays. This classification should include expenditures for acquisition of, or addition to, assets such as land, infrastructure, buildings, improvements other than buildings, and machinery and equipment.
A. 
Generally accepted accounting principles (GAAP) require, in most cases, that capital assets be depreciated. "Depreciation" is the systematic and rational allocation of the historical cost of a capital asset over its useful life. The estimated useful life assigned to a capital asset will directly affect the amount of depreciation expense reported each period in an accrual-based operating statement. Therefore, it is important to the quality of financial reporting that governments establish reasonable estimates of the useful lives of all of their depreciable capital assets.
B. 
The best source of relevant information on the estimated useful lives of a government's capital assets normally is its own past experience with similar assets. In situations where the documentation of a government's own past experience for a given type of capital asset is not adequate for this purpose, a government should profit as much as possible from the experience of other governments and private-sector enterprises. At the same time, a government should make whatever adjustments are needed to estimated useful lives that were obtained from others to ensure that such estimates are appropriate to its own particular circumstances. It is especially important that a government consider the potential effect of each of the following factors when depending on the experience of others:
(1) 
Quality. Similar assets may differ substantially in quality, and hence in their useful lives, because of differences in materials, design and workmanship. For example, an asphalt road will not have the same useful life as a concrete road. Likewise, the depth of the material used for paving purposes, as well as the quality of the underlying base, will also affect the useful life of a road;
(2) 
Application. The useful life of a given type of capital asset may vary significantly depending upon its intended use. For example, a residential street may be expected to have a longer useful life than a major arterial thoroughfare because of differences in the type and volume of traffic; and
(3) 
Environment. Environmental differences among governments can have an important impact on the useful lives of their respective capital assets. For instance, the useful life of a road in a climate subject to extremes in temperature is likely to be different from that of a similar road located in a more temperate climate. Also, regulatory obsolescence may shorten the service life of some capital assets used in connection with highly regulated activities (e.g., utilities).
C. 
The potential effect of each of the factors just described may be mitigated or exacerbated as a consequence of a government's maintenance and replacement policy. For example, the potential for road damage is increased in a cold environment when cracks are not promptly repaired, because water settling in the cracks will expand and contract, thereby accelerating the initial deterioration represented by the crack itself.
D. 
Once established, estimated useful lives for major categories of capital assets should be periodically compared with a government's actual experience and appropriate adjustments should be made to reflect this experience.
E. 
Depreciation is a financial reporting concept. Therefore, all of the considerations just discussed are only of concern to the extent that they could have a material impact on a government's financial statements.