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Exh 7BAGENDA ITEM #7B APRIL 28, 2003. CITY OF ATLANTIC BEACH CITY COMMISSION -- STAFF REPORT Agenda Item: Request change to the City's Code of Ordinances, Chapter 2, Article VII, Div. I, Generally, Sec. 2-316, Fees shall be paid to city government and adoption of proposed Off-Site Cash Receipts Policy and Procedures. Date: ~ April 1, 2003 Submitted By: Jeri Benjamin, Deputy Finance Director Background: The City Code of Ordinances needs to be amended to remove reference to _ __ - fee payments being- made daily, to be consistent with the proposed Off= - Site Cash Receipts Policy and Procedures attached. Off-site cash receipts are those payments received at locations other than the City Hall Cashier's counter. These procedures are being proposed as a result of a recommendation made by the City's external auditors, James Moore & Company, during the fiscal-year-end 2002 audit. As a practical matter, the proposed. procedures specify that daily deposits will only be required when the. cash total on any day exceeds $100. Budget: No budget is necessary for this action. Recommendation: Codify the changes to the City's Code of Ordinances through first reading of the proposed ordinance, and schedule a public hearing and final reading for April 28, 2003. Approve and adopt the proposed Off-Site Cash _ - Receipts Policy and Procedures. - Attachments: Proposed Ordinance 5-03-41 Proposed Off-Site h Receipts Policy and Procedures Reviewed by City Manager. AGENDA ITEM #7B APRIL 28, 2003 ORDINANCE NO. 5-03-41 AN ORDINANCE AMENDING CHAPTER 2 ADMINISTRATION, ARTICLE VII, FINANCE, DIVISION I, GENERALLY, SECTION 2-316, FEES SHALL BE PAID TO CITY GOVERNMENT, TO REMOVE REFERENCE TO DAILY PAYMENT AND THE CITY TREASURY, AND TO PROVIDE AN EFFECTIVE DATE ..WHEREAS, the City would like to adopt anOff--Site Cash Receipts Policy and Procedures specifying daily deposits would only be required when the cash total on any day exceeds $100, and WHEREAS, the City's Code of Ordinances has conflicting language with this policy and procedures NOW, THEREFORE, BE IT ENACTED BY THE CITY. COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; Section 1. Section 2-316 of the City Code of Ordinances be amended as follows: Sec. 2-316. Fees shall be paid to city government. All fees received by an officer or employee shall belong to the city government and shall be paid ~y to the city ~ Finance Department: Section 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this day of April, 2003. Passed by the City Commission on second and final reading this day of April, 2003. John S. Meserve Mayor /Presiding Officer Approved as to form and correctness: ATTEST: Alan C. Jensen, Esquire Maureen King, CMC City Attorney City Clerk AGENDA ITEM #7B APRIL 28, 2003 POLICY DIRECTIVE Policy Number: Finance 001 ' Subject: Off-Site Cash Receipt Policy and Procedures Effectiv.e_Date: Apri128, 2003 Definitions: "Cash" refers to currency, coins, checks or money orders.. "Off-site" refers to a location other than the Cashier's counter at City Hall. Purpose: The purpose of aff--site cash receipt procedures is to ensure that cash collected - at locations other than the primary collection site -City Hall - is properly safeguarded and deposited in the City's depository account and invested in accordance. with the City's investment policy in a timely manner. Policy and Procedures: See. attached. Office of Primary Responsibility (OPR): The Finance Department shall be responsible for the coordination, implementation and maintenance of this policy. Adoption and Dissemination of Policy: It shall be the. responsibility of the Finance Department to ensure all Department Heads are provided a copy of this City policy. The Department. Heads are responsible for ensuring that employees delegated the task of accepting cash are apprised of and follow this policy. Exceptions: Exceptions to this policy aze as approved by-the City Manager. Review Date: Apri12005 Jim Hanson City Manager AGENDA ITEM #7B APRIL 28, 2003 ;: OFF-SITE CASH RECEIPT POLIO' and PROCEDURES Purpose: A recommendation was made during the fiscal year 2001/02 fiscal yeaz financial audit to improve the City's procedures for depositing and tracking cash receipts at off-site locations. Definitions: "Cash" refers to currency, coins, checks or money orders. "Off-site" refers to a location other than the Cashier's counter at City Hall. Policy: All off-site collection of cash will be deposited in accordance with the procedures set forth below. Procedures: .. Timing of Deposits: Cash will be hand-delivered to the Cashier's counter at City Hall at least weekly, however, if the cash total on any day exceeds $100, the deposit shall be made that day. Cash Storage: All cash received should be immediately placed in a secure, locked cash box or safe to prevent loss or theft. Customer Receipts: A receipt will be completed for all payments received, including . payments received in the mail. When payments are received in the mail, the envelope that includes the return address should be retained. This may be the only source of information to properly credit the receipt or issue a refund. Receipt Book Issuance: At the beginning of each fiscal yeaz, a new 3-part, pre- numbered, cazbonless receipt book will be issued to each department that accepts cash payments. The Customer Service Supervisor in the Finance Department will be responsible for keeping a log with the numerical sequence of each receiptbook issued,. by department. Receipt Book Maintenance: The Department Head in each department will be responsible for ensuring the receipt books are .properly maintained and the receiver of cash is properly trained in these procedures. All of the applicable information requested on the receipt should be completed. The check or money order number should 'also be written on the receipt. The. individual receiving the cash should sign the receipt. The white copy will be given to the payee. The yellow copy will be given to a Cashier in City Hall. The pink copy will remain in the receipt book. If the receipt relates to a payment received in the mail, the white (payee copy) of the receipt will remain in the receipt book, unless the payee requests a copy. AGENDA ITEM #7B . APRIL 28, 2003 Deposit Documentation: A ten-key adding machine tape totaling the cash received and .the yellow copy of receipts will be attached to a cornpieted reconciliation form (see attached), when the cash is delivered for deposit. A Cashier will provide a validated deposit receipt to the depositor. This receipt should be kept in a chronological file in the Department. " Rental Deposits and Bid or Performance Bonds: Rental deposits or bonds received in ..cash should be deposited using the same deposit guidelines above. The deposits should be appropriately identified and entered into the H.T.E. Accounts Receivable application • by.the Cashier for tracking purposes. The applicable department must make a deposit release request to the Accountant via email, to refund the deposit to the original payee. Refunds:. It is the department's responsibility to obtain and retain adequate information regazding payments, on a registration or application form, citation or similar document, to _-_ - allow for refund. The department is responsible far preparing. check .request(s),. in the event a refund becomes necessary. Reconciliation: At least annually, the Finance Department will review each department's compliance with this procedure by testing a sample of off-site cash receipt deposits for the fiscal year. Registration and/or application forms will be reconciled to cash receipts to affirm that applicable fees were received from all participants and/or aPPlicants. • Audit: All receipt books will be forwarded to the Customer Service Supervisor on l0/Ol for retention. and availability during the fiscal year end audit. After the audit is complete, the receipt books will be retained for the same time period as the miscellaneous receipts maintained by the Finance Department.