Chapter 4.15
EXPENDITURES
Sections:
4.15.010 Check and investment signatures.
4.15.022 District issued credit card policies.
4.15.030 Electronic funds transfers.
4.15.040 General manager authority – Expenditures.
4.15.050 General manager authority – Bill payment.
4.15.010 Check and investment signatures.
(1) All checks drawn on accounts of the district shall be signed by two of the following parties: the treasurer, the assistant treasurer, the operations and maintenance manager, the secretary of the board of commissioners, or the president of the board of commissioners.
(2) All investments of the district shall require the signature of two parties who shall be the treasurer and the assistant treasurer, or in his or her absence the secretary of the board of commissioners, or in his or her absence the president of the board of commissioners. [Res. 2019-8-1 § 1; amended during 2015 codification; Res. 1990-4-16.]
4.15.020 Credit card.
The district is authorized to obtain credit cards. [Res. 2019-7-2 § 1; Res. 1995-2-4.]
4.15.022 District issued credit card policies.
(1) Purpose. The purpose of the policies and procedures stated in this section is to ensure that district credit cards are used only for appropriate, authorized purposes and that adequate controls are established for day-to-day use.
(2) Scope. This section applies to all employees who are provided a district credit card for district purchases. Employees shall be given access to a district credit card where the nature of their job requires such use and such access is approved by the board, consistent with the district Purchasing and Contracting Policy Manual.
(3) Authorized Use of District Credit Card.
(a) District credit cards shall only be used for district business expenses or purchases, which may include expenses incident to travel by district personnel for district business. District credit cards shall not be used at any time for purchases or expenses of a personal nature.
(b) As required by RCW 43.09.2855(6), district credit cards shall not be used for cash advances or cash returns.
(c) All purchases must be in compliance with Chapter 4.20 CVWDC establishing purchasing policies as now existing or as amended in the future.
(4) Employee Responsibilities.
(a) Each employee who is issued a district credit card is responsible for:
(i) Signing an acknowledgment of receipt of the credit card and that the individual has read this policy. The individual must understand the requirements for use of the credit card and that any misuse thereof shall constitute a misuse of public funds.
(ii) Using the card only for its intended purpose and in accordance with this section.
(iii) Retaining receipts and providing explanations for all district credit card transactions.
(iv) Authorization of credit card purchases by subordinates.
(b) The general manager or finance manager is responsible for:
(i) Ensuring that all credit card transactions are properly authorized.
(ii) Processing payments for credit card invoices on a timely basis to avoid late payment charges.
(iii) Arranging credit or transaction-level limits for individual cards, as directed by the board of commissioners.
(5) Procedures for Credit Card Use.
(a) Employees making a purchase with a district credit card must retain and initial receipts and note the purpose of the expense on each receipt.
(b) Use of district credit cards for expenses of a personal nature of any kind may result in disciplinary action up to and including dismissal.
(c) Charges for items where the receipt has been misplaced must be explained to the authorizing employee who must initial the specific charge and indicate “receipt missing” beside it.
(d) As provided in RCW 42.24.115, for use of a district credit card for expenses incident to travel on district business, upon billing or not later than 30 days of the billing date, the employee using the district credit card shall submit a fully itemized travel expense voucher. Any charges against the credit card not properly identified on the travel expense voucher or not allowed following an audit shall be paid by the employee by check, United States currency, or salary deduction. If for any reason any disallowed charges are not repaid before the credit card billing is due and payable, the district shall have a prior lien against and a right to withhold any and all funds payable or to become payable to the employee up to the amount of the disallowed charges and interest at the same rate as charged to the district by the company which issued the credit card.
(e) The authorizing employee must confirm that the charges are justified and appropriate before authorizing the invoice for payment by initialing and dating the approval/coding stamp.
(f) The approved invoice shall be forwarded to the accounts payable department for payment.
(g) The accounts payable department shall verify the authorization and schedule the invoice for payment according to the terms of the credit card contract, and in a timely manner to avoid unnecessary late payment charges.
(h) The board of commissioners shall have copies of credit card statements available for review prior to approval of the credit card vouchers.
(i) An employee who has been issued a district credit card shall not use the card if any disallowed charges are outstanding, and such employee shall surrender the card upon demand of the district’s auditing officer.
(j) Any district credit card issued to an employee may be revoked at any time at the discretion of the district, and the employee shall immediately return the card to the district. Upon the district’s delivery of such revocation order to the company issuing the credit card, the district shall not be liable for any costs or charges related to such card. In addition, if not revoked sooner, any employee issued a credit card shall return the card to the district immediately upon termination of employment. [Res. 2021-3-2 § 1; Res. 2019-7-2 § 2.]
4.15.030 Electronic funds transfers.
The board of commissioners of Cross Valley Water District of Snohomish County, Washington, hereby authorizes payment of the district’s vendors by electronic funds transfers.
(1) Policy Purpose. Pursuant to BARS Manual 3.8.11, RCW 39.58.750 and the State Auditor’s Office recommendation, this section states the district’s electronic funds transfers policy applicable to the district’s use of electronic funds transfers.
(2) Definition. “Electronic funds transfer (EFT)” refers to the disbursement from a bank account by means of wire, direct deposit, ACH or other electronic means.
(3) Transfer of Funds.
(a) Authorization.
(i) The district shall require and maintain signed written authorization by payees who have agreed to have funds added to their accounts electronically.
(ii) The district treasurer or assistant treasurer shall designate the district employee(s) authorized to transfer funds.
(b) Security.
(i) The district shall implement security measures offered by the current district bank to prevent unauthorized individuals from initiating or modifying a transfer.
(ii) Each user initiating or approving bank transactions shall have a separate banking user ID and password.
(iii) Transfers shall be made only by authorized employees.
(iv) Transfers shall have a two-person verification process, one to initiate and one to approve/release the transfer.
(c) Record.
(i) Each transfer shall be chronologically numbered.
(ii) Each record shall include the following: time and date of disbursement; payee name, address and account number; amount of disbursement; purpose of disbursement; expenditure/expense account number; name and number of fund(s); district’s bank’s unique transaction identification number; and receiving bank or financial institution’s identification number.
(d) Audits. The board of commissioners shall receive a report of the transferred funds at the board’s regular meetings for review and approval. Approval is reflected in the meeting minutes. [Res. 2021-1-1 (Exh. A); Res. 2012-6-3.]
4.15.040 General manager authority – Expenditures.
The general manager is authorized to authorize expenditures as outlined in the Purchasing and Contracting Policy Manual dated June 2024 without the prior consent of the board. [Res. 2024-6-3 § 3; amended during 2015 codification; Res. 1990-4-10.]
4.15.050 General manager authority – Bill payment.
The board of commissioners hereby authorizes the general manager to approve bills to be paid by the treasurer of the district between regular meetings of the board of commissioners, subject to review and approval of these bills at the next regular meeting of the board. [Res. 1990-7-3.]