Agenda - Council Work Session - 10/11/2016

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fund/department and object number from which payment will be expensed. Reference should be made to departmental budget(s) for department and object numbers. 5.5 Petty Cash • Receptionist shall be the custodian of the petty cash. • Petty Cash shall not exceed $100.00. • Used for reimbursement to employees for items $20.00 or less for expenditures made on behalf of the City. • Receipt and/or expense reimbursement form must be submitted with proper departmental authorization obtained prior to reimbursement. 5.6 Payment Processing • Invoices, check request, purchase orders or employee expense reimbursement forms must be submitted to the Finance Department. • Detailed receipts, stating reason for public purpose expenditure, must be submitted with employee expense reimbursement forms. • Immediate pays are due to the Finance Department at least one day in advance of the payment day. • Department Heads must have fund/department and object codes to process payment. Refer to departmental line item budget for proper coding. • Checks may not be made out to cash or bearer. 5.7 Electronic Funds Transfer Electronic Funds Transfer may be required in some cases to complete a business transaction. The funds are transferred electronically between the city's bank account and the respective business party's bank account. These transactions need to follow the same guidelines for payment processing in Section 5.6. 5.8 Employee Expense Reimbursement Employee expense forms are required for reimbursement to employees of city -related expenses on a bi-monthly basis. All employee expense forms must contain proper account codes, department approval, and detailed receipts must be attached where applicable. Section 6: Capital Outlay and Fixed Assets 6.1 Capitalization Threshold Capital outlay purchases are for items costing more than $5,000$10,000, are a tangible asset, and have a life expectancy of more than one year. These items must be included in each department budget. It should be noted that sales tax (if applicable) must be included as a cost of the item purchased when determining if the purchase is a capital outlay item. If the individual purchase is greater than $5,000 $10,000 includes (General Government and Enterprise Fixed Assets) the item is a capital outlay purchase and now should become a recorded fixed asset. The amount to record for that fixed asset would be any charge "to place the asset in its intended location and condition for use." For example: if the city were to purchase a street vehicle, all of the following would be considered part of the cost of that asset: the vehicle, warning lights, decals, sales tax, licensing and any other costs to put the asset into its usable condition. 9