DEFINING THE BASICS OF A TREASURER S SCOPE OF RESPONSIBILITY (TREASURERS 101)

Transcription

1 DEFINING THE BASICS OF A TREASURER S SCOPE OF RESPONSIBILITY (TREASURERS 101) 1 Presented by: Lynn Hagman, City of Hayden Lake, haydenlakeclerk@frontier.com Melissa Taylor, City of Rathdrum, melissa@rathdrum.org Matt Nielson, City of Rexburg, mattn@rexburg.org

2 FUND ACCOUNTING BASIS OF ACCOUNTING INTERNAL CONTROLS (TREASURERS 101) 2 Presented by: Matt Nielson City of Rexburg mattn@rexburg.org

3 Accounting Basics 3

4 Accounting Basics 4

5 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. 5

6 Fund Definition A fiscal and accounting entity with a self balancing set of accounts recording cash and other 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 specific regulations, restrictions or Limitations. It emphasizes accountability rather than profitability 6

7 Governmental Funds Fund Types General, Special Revenue (streets), Debt Service, Capital Projects and Permanent. 7 Proprietary Funds Enterprise and Internal Service. Fiduciary Funds Investment Trust, Private-Purpose Trust, Pension Trust and Agency.

8 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 8 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

9 Basis of Accounting 9 Full Accrual Obligated-Regardless of whether cash received or paid out Cash Modified Accrual Combines Cash and accrual basis Revenue recognized when available and measurable Expenses recognized when liabilities incurred

10 Chart of Accounts 10

11 The G s GASB - Governmental Accounting Standards Board Formed in 1984 and determines GAAP for state and local governments. GAAP - Generally Accepted Accounting Principles 11 Refers to the conventions, rules and procedures that serve as the norm for the fair presentation of financial statements. Remember City and State regulations.

12 Internal Controls Purpose 12 Reasonable assurance 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

13 5 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 13

14 Implementing Internal Controls Step 1 Policy and Procedure Manuals Credit Cards Policy Fixed Assets Policy Purchasing Policy Debt Policy Investment Policy Cash Handling Policy All Policies should include appropriate forms and flow charts 14

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17 Internal Control Examples Separate billing and receipting duties (may consider outsourcing/lockbox) Check approval and signing duties should be separate from check creation. Department code invoices, A/P prepare and Council approve. All statements should be mailed to the A/P office (makes theft harder to hide) Bond employees who handle cash 17

18 Internal Control Examples 18 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 the bank (armored car or police 2 people).

19 Internal Control Examples Adequate physical controls over check stock, cash receipts, cash, etc. Do not cash checks out of receipt drawers. Pre-numbered check stock. 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. 19

20 Required Reporting Fees 20 Presented by: Melissa Taylor City of Rathdrum

21 Required Reporting Annual Reporting 21 Notice of Budget Public Hearing (to the County by April 28 th ) Last day for the city to notify the county clerk of the date, time and location of the city budget hearing for the upcoming fiscal year. (No later than April 30 th of each year) A Last day to hold the Budget Public Hearing (September 6 th ) Certify City Tax Levy Rate to the County (by September 7 th ) (3) Appropriations ordinance must be passed by the council and published once in the official newspaper by this date. The ordinance must also be sent to the Secretary of State

22 Required Reporting Annual Reporting Cont d 22 Workers Compensation Yearly Payroll Report (due by 2/2) ICRMP Liability Report (due by 2/20) State LSO (All taxing entities- including Urban Renewal, Cemetery District, Recreation District, Etc.) (uploaded within 9 months of end of audit period) B Annual Street Report (December 31 st )

23 Required Reporting Quarterly Reporting 23 Quarterly 941 Federal Report (March, June, September, December) Quarterly Unemployment Tax Report (March, June, September, December) Quarterly* Sales Tax Report (March, June, September, December) Due by the 20 th of the next month Quarterly Budget Report (March, June, September, December) *Some cities report monthly

24 Quarterly Budget Report 24 YEAR TO DATE BUDGETED % EX PENDED GENERAL FUND EX PENDITURES Personnel Services $ 1,474, Services and Supplies $ 1,214, Capital Outlay $ 174, Impact Fees: Service & Supplies $ 50, Cemetery Fund $ - Total 2,914, ,459, % ENTERPRISE FUNDS Water Fund Personnel Services $ 245, Services and Supplies $ 215, Capital Outlay $ 605, Total $ 1,066, ,717, % Sewer Fund Personnel Services $ 245, Services and Supplies $ 834, Capital Outlay $ 262, Total 1,342, ,168, % $ 5,322, $ 16,346, %

25 Monthly Reporting Required Reporting 25 Monthly SWT Report (Monthly by the 20 th ) Monthly Financial Report to Council - Whatever the Council would like to see, Cash Flow, Fund Balance, Balance Sheet, Income Statement, Trial Balance, etc. New Legislation (Monthly Reporting) & for Quarterly Reporting Requirements

26 Budget Report Basics Include at least 2 prior years of data Current year to include the budget/actual/forecast Include budget of next year(s) if available List Revenues List Expenses Personnel Operations Capital Other Net Income or Fund Net or Fund Difference (Revenues Less Expenses) 26

27 Budget Report Basics 27

28 Quarterly Treasurers Report-Rexburg 28

29 Required Publications Public Hearings (TREASURERS 101) 29 Presented by: Lynn Hagman, City of Hayden Lake,

30 Required Publications 30 Annual Road and Street Finance Report is published one time as a legal notice between January 1 st and 15 th Save on publication cost by only reporting the portions that pertain to the City

31 Required Publications 31

32 Required Publications 32 Quarterly Treasurer s Report shall be placed on the agenda no more than 30 days after the end of each calendar quarter for Council s review. No Publication Required

33 Required Publications Notice of Budget Hearing is published two times, seven days apart. If amending the Budget, same publication requirements are applied. 33 Increasing Fees more than 5% or New Fee Notice of public hearing is published for two consecutive weeks preceding the week of the public hearing.

34 Fees 34

35 Fees Rexburg Website from Current Database Information 35

36 Finally Where is Help? 36 Join Relevant Associations ICCTFOA Idaho City Clerks, Treasurers, and Finance Officers Association (Accounting Manual) AIC Association of Idaho Cities (Spring Seminars, Municipal Guide Book) APT US & C Association of Public Treasurers of United States & Canada GFOA Government Finance Officers Association Get to know your fellow Treasurers!

37 Treasurers Questions?