Treasurer 101. Presented by:

Transcription

1 Treasurer 101 Presented by:

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3 Deadlines and Publications Presented By: Danielle Painter, CMC City Clerk / Treasurer City of New Plymouth

4 Monthly Financial Reporting State Income Tax Withholding is due by the 20 th of each month. Monthly Financial Report to City Council This report can contain any information the council wishes to have. For example, Cash Flow, Balance Sheet, Bank Reconciliation Report, and Income Statements. This report must be presented to the council no more than 60 days after the conclusion of each month at a regular meeting of the city council

5 Quarterly Financial Reporting Quarterly Budget Report must be published within 30 days from the end of each quarter, except for the final quarter of the fiscal year which shall be published no later than 30 days from the date of completion of your audit At least once in each quarter of each year, the council shall examine by review of the Quarterly Treasurer s Report. This report must be completed not more than 30 days after the end of each calendar quarter Federal Report 941, must be reported at the end of each quarter by the end of the following month. Example: 1 st Quarter (Jan-Mar) must be reported by April 30 th.

6 Idaho Unemployment Tax Report, must be reported at the end of each quarter by the end of the following month. State Sales Tax Report, must be reported by the 20 th of the following month, after the end of each quarter. Some cities report monthly.

7 Annual Reporting Notify the county clerk no later than April 30 th of each year of the date, time and location of the city budget hearing for the upcoming fiscal year A Last day for budget hearing is the first Wednesday in September The last day to certify property tax levy to county commissioners is no later than the Thursday prior to the second Monday in September (3)

8 Appropriations ordinance must be passed by the council and published once in the official newspaper by the end of September. The ordinance must also be sent to the Secretary of State Annual Road & Street Financial report is due by December 31 st State LSO account information must be updated by the entity every calendar year, no later than December 1 st. Entities requiring an audit (expenditures exceeding $100,000) must upload the audit within 9 months from its fiscal year end B

9 DON T FORGET PUBLICATIONS!

10 Annual Road and Street Finance Report is published one time as a legal notice between January 1 st and January 15 th. Your City Council must adopt a tentative budget prior to the public hearing. The legal notice of the proposed budget and budget hearing must be published twice, at least 7 days apart, in your official newspaper Increasing City Fees more than 5% or establishing a new fee requires a notice of public hearing, which is published for two consecutive weeks preceding the week of the public hearing.

11 Basic Training for Treasurers ABC s & 123 s. Reports. Audit. Software. Budget Brief.

12 ABC s & 123 s Credits Debits Revenues Expenditures Funds Accounts Objects Organizations Projects Enterprise Funds Budget Adjustments Journal Entries Claims Financial Statements Internal Controls Bookkeeper Treasurer Types of Audits

13 K.I.S.S. Keep it Simple Silly! Cash On-Hand Report Bank Reconciliations Budget Vs. Actual Report Dashboards (I call it the cliff notes) Claims to be Paid Claims already Paid Basic Reporting

14 Dashboards Snapshot of City Finances Budget vs. Actuals by Fund Some include Building Permit Sales, Population, Dog Tags, etc. Cash on Hand today vs. last fiscal year Remember those that have arithmophobia! There are number people and there are word people very rarely are there both!

15 Audit Time! Preparation is everything! Be available to answer questions Don t stress

16 Audit Preparation CYA Consult YOUR Auditor! Trial Balance General Ledger Detail Budget vs. Actuals Original and Amended Budget City Council Minutes List of Elected Officials List of Party Transactions All Financial Ordinances & Resolutions Oversight Agency Correspondence Journal Entries Bank Statements & Reconciliations Other Investment Statements Property Taxes from the County Treasurer State Disbursements Revenue Sharing Liquor Funds Highway Revenue Sales Tax Reports from the County L-2 for the year being audited

17 Audit Preparation CYA Consult YOUR Auditor! Utility Revenue Aged Accounts Receivable List Amount of Uncollectable Utilities and list of customers Utility Accounting for: Employees Elected Officials Appointed Officials List of Accounts with a Deposit New Bond Ordinances Expenses Accounts Payable as of end of year Check Register (includes for 30 days after year end)

18 Audit Preparation CYA Consult YOUR Auditor! Payroll Monthly Payroll Reports 941 s Salaries & Benefits at year end Unpaid Vacation, Personal Time, Comp Time, Sick Time, etc. List of Former Employees on Health Insurance IRS Correspondence W2 s & 1099 s for the calendar year PERSI Payments

19 Audit Preparation CYA Consult YOUR Auditor! Debt Lease Agreements Bond Correspondence New Debt Correspondence Lending Institution Statement Fixed Assets Copy of Invoices of MAJOR Assets purchased over the Capitalization Amount Assets Disposed of during the year Grants or Federal Programs New Grant Contracts Correspondence

20 After your Audit

21 After your Audit Auditor to Present at a City Council Meeting City Council to formally accept the audit

22 After Audit AUDIT ADJUSTMENTS DO THEM! Send reports back to the Auditor after adjustments Communicate with your Auditor if you have any questions Remember to publish your 4 th Quarter Report Send your Audit to your regulatory agencies that want it USDA-RD Department of Commerce DEQ BSO

23 Financial Accounting Software

24 Financial Accounting Software DISCLAIMER: I am not a fan of QuickBooks Several Clerks / Treasurers have gone to jail for embezzlement and fraud. Find a solution that YOU, YOUR AUDITOR and YOUR CITY likes. Trails & Trackable Online, Cloud or Standalone Versions Economical Support Pay as you go or inclusive Good Track History What are your neighboring cities using Reporting Integration

25 Financial Accounting Software Once you have found

26 Financial Accounting Software STICK WITH IT! Software is quite expensive. To choose another software suite is a very large investment of time, training and taxpayer / rate payer funds. In 2007 I reviewed over 20 Software Companies with online and inperson demos. Out of that 20, only FOUR REMAIN! Choose Wisely!

27 Budget Brief After your budget has been approved, remember those that have that Number phobia thing. Put your Budget into words! The press, your citizens, elected officials will like it. A Budget Brief should be how the city plans to spend the taxpayer / rate payer money. What benchmarks have been met in the previous year What projects are planned for the current year, what about future years Inform about the rates and billing policies Significant Projects & their funding

28 More Treasurer Fun... Accounting Basics Fund Accounting Basis of Accounting Internal Controls Know Your Resources

29 Accounting Basics

30 Fund Accounting Cities use Fund Accounting to record their financial transactions and budgeting Fund accounting could be compared to Check Book accounting with a check book for each fund Choose software that supports this type of accounting

31 Fund Definition A fiscal and accounting entity with self balancing set of accounts recording cash and other resources, together with all related liabilities and residual equities or balances, and changes therein, segregation for the purpose of carrying on specific activities or attaining certain objectives in accordance with specific regulations, restrictions or limitations It emphasizes accountability rather than profitability

32 How Many Funds is Too Many? Varies from one entity to the next Reasons to create a new fund To track the overall balance or carryover To ensure certain money is only spent for a designated purpose The best practice is to establish and maintain the minimum number of funds required by law and sound financial administration Do not create a fund if you don t absolutely need it

33 Basis of Accounting Full Accrual Obligated - Regardless of whether cash is received or paid out Cash Modified Accrual Combines cash and accrual basis Revenue recognized when available and measurable Expenses recognized when liabilities incurred

34 Need to Research Something... GASB Governmental Accounting Standards Board Formed in 1984 and determines GAAP for state and local governments GAAP Generally Accepted Accounting Principles Refers to the conventions, rules and procedures that serve as the norm for the fair presentation of financial statements Idaho Legislature State statues provide details that will help you do your job correctly Your City, check resolutions and ordinances

35 Internal Controls Purpose Reasonable assurance that the following objectives are met: Reliability in financial reporting Effectiveness and efficiency in operations Compliance with applicable laws and regulations Safeguarding of city assets Safeguarding of the employee

36 Components of Internal Controls Control Environment Assignment of authority, policies and practices by city leaders Risk Assessment Staff turnover Information technology Control Activities Preventative policies Segregation of duties Reconciling and internal audits Communication Employee procedure manuals Open Communication at all levels Monitoring Must correct identified weaknesses Monitor audit findings and corrected procedures for effectiveness

37 Implementing Internal Controls Policy and Procedure Manuals Credit Card Policy Fixed Assets Policy Purchasing Policy Debt Policy Investment Policy Cash Handling Policy All policies should include appropriate forms and flow charts

38 Effective Internal Controls Separate billing and receipting duties Check approval and signing duties should be separate from check creation Department head code invoices, A/P prepare, and Council approve All statement should be mailed to the A/P office (makes theft harder to hide) Bond employees who handle cash Cash, check, credit card payments should balance to deposit daily (no check slipping) All employees should sign a credit card agreement form prior to receiving a credit card Deposits safe process in place to transfer deposits from City to bank, remote check deposit

39 Effective Internal Controls A Continuous Process Adequate physical controls over check stock, cash receipts, cash, etc. Pre-numbered check stock Do not cash checks out of receipt drawers Positive pay or reverse positive pay Bank reconciliations prepared by one employee and reviewed by a responsible official (not the preparer) Complaints investigated by someone other than the individual who performed the work

40 Know your resources... Actively participate in organizations that can help you: ICCTFOA Idaho City Clerks, Treasures, and Finance Officers Association AIC Association of Idaho Cities APT US & C Association of Public Treasurers of the United States and Canada GFOA Government Finance Officers Association Get to know your fellow Treasurers, we are in this together

41 Treasurers 101 Questions?