Chapter 6.04
FISCAL PROVISIONS GENERALLY
Sections:
Article I. Fiscal Policies
6.04.010 Budget and capital program.
6.04.020 Borough obligations – Appropriations.
6.04.050 Audit of borough government accounts.
Article II. Assets and Disbursements
6.04.080 Disbursement of funds.
6.04.090 Disbursement of funds – Education.
6.04.100 Grant management and reporting.
Article I. Fiscal Policies
6.04.010 Budget and capital program.
A. The mayor shall arrange for the preparation of a budget and capital program. The budget and capital expenditure proposals shall be given a public hearing.
B. After public hearing, the assembly may approve budgets with or without amendments and shall appropriate the funds required for the approved budgets. (Code 1986 § 6.04.010)
6.04.020 Borough obligations – Appropriations.
A. A bond, contract, lease or other obligation requiring the payment of funds from the appropriations of a later fiscal year or of more than one fiscal year shall be made or approved by ordinance adopted by a majority of the votes authorized on the question.
B. The assembly may make supplemental and emergency appropriations. No payment may be authorized or made and no obligation incurred except in accordance with appropriations.
C. The assembly may authorize the payment or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds. (Code 1986 § 6.04.020)
6.04.030 Fiscal year.
The fiscal year of the municipality shall begin on the first day of July and end on the last day of June. (Code 1986 § 6.04.030)
6.04.040 Number of funds.
The borough shall establish and maintain only those minimum number of funds required by law and sound fiscal administration. (Ord. 86-16 § 2, 1986; Code 1986 § 6.04.050)
6.04.050 Audit of borough government accounts.
The borough shall provide for an annual independent audit of the accounts and financial transactions of the borough, including but not limited to special revenue funds, capital project funds, debt service funds, special assessment funds, enterprise funds, internal service funds, and trust and agency funds. The borough shall designate certified public accountants who shall have no personal interest, direct or indirect, in the fiscal affairs of the borough. Copies of the audit shall be available to the public upon request. (Ord. 86-16 § 3, 1986)
Article II. Assets and Disbursements
6.04.060 Central treasury.
A. The finance director shall be responsible for the collection, custody and disbursement of all moneys from whatever source.
B. The central treasury operating cash shall be kept in a financial institution to be designated by the assembly by resolution. The resolution shall outline the services the financial institution agrees to provide. The financial institution must be a member of FDIC, FSLIC or SIPC.
C. The finance director shall prepare an annual forecast of cash and based upon the same as revised at least monthly shall invest temporary idle money in the following types of investments:
1. Bonds, notes or other obligations, direct or otherwise through mutual funds, of the United States or agencies thereof;
2. Bonds and other evidence of indebtedness of the state of Alaska;
3. Bonds or other evidence of indebtedness of any municipality or political subdivision of the state of Alaska rated “A” or better by Standard and Poors;
4. Savings accounts or certificates of deposit in any financial institution authorized to do business in the municipality;
5. Certificates of deposit of any bank or savings and loan; provided, that the total certificates of deposit of any such institution shall not exceed the paid up capital of such institution;
6. Any investment authorized in the terms of the trust for trust funds;
7. Short-term money market mutual funds.
D. The finance director shall provide on a monthly basis to the assembly the following statements:
1. Summary statement of cash receipts and disbursements;
2. Reconciliation statement banks – investments – funds;
3. Forecast of cash position compared with actual. (Ord. 87-22, 1987; Code 1986 § 6.08.010)
6.04.070 Central accounting.
A. All accounting functions for all departments, offices and agencies are centralized in the department of finance. The department treasurer may utilize to the maximum extent allowable by the state the services of the Division of Finance, Data Processing of the Department of Administration, state of Alaska. Where utilization of the services of the Division of Finance is not practicable or undesirable, the assembly may authorize exceptions.
B. The finance department will process and record all financial-related transactions using a financial accounting system that meets the requirements as defined within this code.
C. The treasurer shall provide on a monthly basis to the assembly the following statements:
1. Consolidated balance sheet – all funds;
2. State of revenue – estimated and actual;
3. State of expenditures compared with authorizations.
D. All grant-related transactions will be reviewed for allowability, in accordance with CFR Part 200 Subpart E – Cost Principles, by the finance director or a designee to ensure compliance with federal grant guidelines, the grant budget, and the scope of work as defined by the grant award agreement. (Ord. 17-16 § 1, 2017; Code 1986 § 6.08.020)
6.04.080 Disbursement of funds.
A. All vouchers shall be consecutively numbered and have attached thereto supporting documents or references to documents which clearly set forth the purpose of the expenditure and which provide the necessary documentation for accounting purposes.
B. All checks prior to issuance shall be supported by a voucher, except in the following circumstances:
1. To comply with the requirements of bond ordinances relating to the payment of principal and interest on bonds, payments to a bond reserve, sinking, or redemption funds; or
2. To meet contractual requirements for payment of funds; or
3. To take advantage of discounts on purchases of supplies or services.
C. The voucher or checks, described in subsections (A) and (B) of this section, require the original signature of the mayor and finance director. In the absence of either the mayor or finance director, the signature of a designated substitute, approved by the assembly, shall suffice; however, no two substitutes shall have authority to sign the same voucher or check. (Ord. 88-12 § 2, 1988; Code 1986 § 6.08.030)
6.04.090 Disbursement of funds – Education.
The assembly, pursuant to NABC 2.40.030(H), shall appropriate funds to education by June 15th of each year in accordance with the following procedures:
A. The Northwest Arctic Borough school district, by May 1st of each year, shall advise the assembly of the local operating funds required for the following fiscal year. Such estimate shall identify the amount required pursuant to AS 14.17.025, and any amounts in excess of such requirement, being requested.
1. In computing the mandatory minimum amount required pursuant to AS 14.17.025, the district shall identify:
a. Estimated interest earnings the district is allowed to keep and spend on school operations;
b. Estimated state tuition payments;
c. Estimated value of in-kind services performed by the borough, excluding amounts received pursuant to NABC 2.40.030(C)(3)(c); and
d. Ten percent of the district’s estimated eligible Federal Impact Aid as calculated under state law.
2. In computing contributions made in excess of the mandatory minimum amount required by AS 14.17.025, funds received pursuant to NABC 2.40.030(C)(3)(c) shall be allowed and a like amount appropriated and paid to the district.
3. By May 30th of each year, the borough assembly by resolution shall declare how much local contribution it shall allocate.
B. Those estimated excess amounts required to be appropriated shall be divided into quarterly amounts and the district shall submit a quarterly bill to the borough within 10 days of the end of the prior quarter. The borough shall pay such bill within 15 days of receipt.
C. Within 30 days of the end of the fiscal year, subject to adjustment pursuant to the audited fiscal year end financial statements, the district shall determine the actual amount of interest earnings, state tuition payment, value of in-kind services, excluding amounts received pursuant to NABC 2.40.030(C)(3)(c), and 10 percent of the district’s eligible Federal Impact Aid, received by the district for that fiscal year.
D. If the amount from subsection (C) of this section is less than the total estimated amount set forth in subsection (A)(1) of this section, then the borough will pay the difference to the district within 30 days from the end of the fiscal year. If the total amount from subsection (C) of this section is more than the total estimated amount set forth in subsection (A)(1) of this section, then the district will repay the borough the difference up to the amount that the borough paid pursuant to subsection (B) of this section within 30 days from the end of the fiscal year. (Ord. 96-02 § 3, 1996; Ord. 90-04 §§ 1 – 3, 1990; Ord. 89-09 § 1, 1989; Code 1986 § 6.08.040)
6.04.100 Grant management and reporting.
A. Finance department staff will prepare fiscal reports requesting reimbursement from the granting agency, following instructions in the grant agreement. Fiscal reports submitted for reimbursement include direct and indirect expenditures, as applicable for each grant. Accounting staff will access grant-funded transactions using the accounting system to prepare fiscal reports for each grant agreement/contract. The report will be properly supported and reconciled to the reports generated from the accounting system. Once completed, the required report will be reviewed and approved by the mayor or a designee.
B. Narrative reports will be completed and provided by the program manager. These reports will be reviewed and approved by the mayor or a designee.
C. Copies of grant-related reimbursement requests and notification of their receipt will be placed in the corresponding grant file. Within the accounting system, grant receipts will be recorded as cash and any offsetting receivable recorded in the accounting system. If no receivable is recorded, grant receipts will be recorded as cash and grant revenue. (Ord. 17-16 § 1, 2017)