Chapter 4.25
FINANCIAL MANAGEMENT
Sections:
4.25.020 Unbudgeted operating expenditures.
4.25.040 Purchasing procedure.
4.25.050 Budget management report.
4.25.070 Emergency expenditures.
4.25.090 Personal use of District charge accounts and purchasing procedures.
4.25.100 Responsibility for implementing policy and procedure.
4.25.110 Zone allocation percentages.
4.25.120 Depreciation allocation.
4.25.130 Sewer service charge billing adjustments.
Prior legislation: Res. 2002-10.
4.25.010 Budget.
The budget shall be prepared by the District Manager and adopted by the Board of Directors annually and will identify approved expenditures for the coming fiscal year. Subject to the spending authority designated below, the District Manager is authorized to order goods and services in accordance with the approved budget without additional authorization from the Board. [Res. 2004-9 § 1.]
4.25.020 Unbudgeted operating expenditures.
Expenditures not shown in the approved budget require the approval of the Board of Directors and an appropriation from reserves by the Board. [Res. 2004-9 § 2.]
4.25.030 Spending authority.
The District Manager is authorized to expend any and all budgeted funds in the amount of $15,000 or less. Any expenditure in excess of $15,000 shall be presented to the Board of Directors for approval prior to ordering goods or services. The District Manager may delegate spending authority to subordinate staff in writing. [Res. 2004-9 § 3.]
4.25.040 Purchasing procedure.
(1) Ordering Goods and Services – Purchase Orders. With the exceptions noted in subsection (1)(e) of this section, written purchase orders will be prepared for all purchases.
(a) Purchase orders (P.O.s) shall be maintained using an automatic, sequential, preprinted numbering system. The following information shall be recorded on each P.O.:
(i) Purchase order number.
(ii) Date of order.
(iii) Vendor name, address and telephone number.
(iv) Facility and use identification.
(v) Description of items.
(vi) Cost of items.
(vii) Estimated tax and shipping costs.
(viii) Signature of District Manager or designate.
(b) Information Provided to Vendor. For purchases exceeding $5,000, the written P.O. will be issued to the vendor and will include standard contract terms and conditions. Otherwise, the P.O. number and/or copy of the written P.O. will be issued to each vendor as requested by the vendor.
(c) Warrant File. One copy of each P.O. will be filed in the warrant file alphabetically by vendor.
(d) Contract Purchase. Purchase orders will be prepared to track any purchase that is made by written contract.
(e) Purchase Orders Not Required. Purchase orders are not required for the following three types of purchases:
(i) Routine, Preapproved Monthly Expenses (see subsection (5) of this section). Utilities and personnel-related costs.
(ii) Local Charge Accounts. The District Manager shall maintain a list of approved local charge accounts.
(iii) Small Out of Pocket Purchases. Limited to $200.00 per purchase. Reimbursed by warrant.
(2) Receipt of Goods. Packing lists will be checked against package contents and initialed by District staff. Packing lists will be filed in the warrant file with the corresponding P.O.
(3) Billing for Goods and Services – Invoices.
(a) Management Approval. Each invoice will be reviewed, approved and initialed by the District Manager or his designate. Facility and use identification will also be noted.
(b) Math Check. The Accounting Specialist or Administrative Assistant (or other designate of the District Manager) will check dollar extensions and initial each invoice.
(c) Approved invoices will be filed in the warrant file.
(4) Warrants.
(a) Warrants. Warrants (checks) will be prepared in triplicate by the Accounting Specialist or Administrative Assistant (or other designate of the District Manager) and account numbers will be assigned. Each warrant or the detailed warrant listing shall be reviewed and initialed by the District Manager.
(b) Warrant List. A warrant list will be prepared for consideration and approval of the Board of Directors once each month at the regularly scheduled monthly meeting of the Board. Information provided for each warrant shall include: invoice date, warrant number, vendor name, description, account number and amount. The warrant list shall identify separately preapproved expenses that have already been paid (see subsection (5) of this section).
In order to improve efficiencies at meetings of the Board, Directors will attempt to direct questions on the warrant list to staff in advance of Board meetings.
(c) Signature and Payment. As soon as practicable after the Board approves payment, the President and Secretary (or as otherwise provided below) of the Board shall sign each warrant and payment will be issued. In the absence of the President and/or Secretary, any Director is authorized to sign warrants on behalf of the District. Two signatures are required.
(d) Distribution. The original warrant is issued to the vendor along with invoice and other supporting information. The second copy is forwarded to the Accounting Specialist. The third copy is filed as a back-up copy.
(5) Preapproved Expenses Prior to Board Final Approval. The following expenses are preapproved for payment by staff (District Manager and any one of the following: Wastewater Facilities Manager, Administrative Assistant or any Board member) at any time:
(a) Utilities: PG&E, PacBell, MMWD, Nextel.
(b) Personnel: PERS health insurance, Standard life insurance, B of A payroll deposit, Paychex payroll services.
(c) All Board and employee travel reimbursements filed pursuant to the District travel policy.
(d) Payments to vendors totaling less than $1,000.
(e) Expenses related to accounts for which the application of late charges will be applied prior to Board approval and payment of the invoice.
Changes to this list require approval of the Board. [Res. 2004-9 § 4.]
4.25.050 Budget management report.
Financial reports shall be prepared and submitted to the Board for each calendar month. Each report shall present a listing of all income and expenditure accounts by fund, the budget for each account, and the amount spent in each account. The report shall show monthly and year-to-date data. These reports will be unofficial, unaudited staff reports but will give a quick indication of where the District stands each month on expense versus budget. [Res. 2004-9 § 5.]
4.25.060 Carryover.
For budget purposes, operation and maintenance funds will not be carried over from one year to the next.
Capital improvement funds by project may be carried over from one year to the next and will be identified in the budget as carryover items. Carryovers shall be recommended by the District Manager and approved by the Board of Directors at the beginning of each new fiscal year. [Res. 2004-9 § 6.]
4.25.070 Emergency expenditures.
(1) Emergency expenditures are necessary to:
(a) Protect public and employee health and welfare;
(b) Prevent damage to the environment;
(c) Prevent damage to equipment and facilities; and
(d) Limit liability to the District.
(2) Authorization to Expend Emergency Funds. The District Manager is authorized to expend up to $25,000 in unbudgeted funds for emergency purposes. The President of the Board (or the Secretary in the President’s absence or any other Director in the absence of the President and Secretary) is authorized to make emergency expenditures up to $100,000. Any emergency expenditure in excess of $100,000 requires an emergency meeting of the Board.
(3) Any and all emergency expenditures require ratification by the Board at the next meeting of the Board and require an appropriation from reserves by the Board. [Res. 2004-9 § 7.]
4.25.080 Competitive bidding.
The District Manager shall comply with bidding requirements set forth in Cal. Pub. Cont. Code § 20803 or District Resolution No. 96-3 and Chapter 2.10 SD5MCC for construction, reconstruction, alteration, enlargement, renewal or replacement of sewer facilities, and furnishing materials and supplies for such projects. [Res. 2004-9 § 8.]
4.25.090 Personal use of District charge accounts and purchasing procedures.
Use of any District charge accounts or purchasing procedures for personal purchases is prohibited. [Res. 2004-9 § 9.]
4.25.100 Responsibility for implementing policy and procedure.
The District Manager is responsible for implementing the policy and procedure codified in this chapter. [Res. 2004-9 § 10.]
4.25.110 Zone allocation percentages.
Common revenue and expenses, which are defined as those which cannot be specifically attributed to the Belvedere zone, Tiburon zone, or Paradise Cove zone, are allocated on the basis of the percentage of raw sewage flow from each zone. The percentage of influent flow for each zone from the prior calendar year determines the zone allocation percentages for common revenue and expenses for the following fiscal year. The only exception is that the common property tax revenue for the Tiburon zone and Paradise Cove zone are allocated based on the percentage of EDUs in each of the zones during the prior fiscal year. [Unnumbered document adopted 1/25/2011 § 1.]
4.25.120 Depreciation allocation.
Since the Belvedere zone funds its share of joint capital expenditures at the time of purchase (according to the zone allocation percentage split), the Belvedere zone is not required to fund its share of depreciation by cash transfers to the Tiburon zone. [Unnumbered document adopted 1/25/2011 § 2.]
4.25.130 Sewer service charge billing adjustments.
All adjustments of any amount to sewer service charge billings must be approved and signed off by the District Manager before they are submitted to the Marin County Assessor’s Office. Any adjustment greater than $5,000 to any sewer service charge billing must be approved by the Board before it is submitted to the Marin County Assessor’s Office. A list of all adjustments to sewer service charge billings for the entire fiscal year must be brought to the Finance Committee for review at the end of each fiscal year. [Unnumbered document adopted 1/25/2011 § 3.]