Agenda - Council - 12/08/2020 - Laserfiche WebLink

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• Department Heads must have fund/department and object codes to process payment. Refer to departmental line item budget for proper coding. • City Council will be given a "bills" list of all prepayments and invoices to be paid for formal approval. • 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. Electronic funds transfers will only be performed by the Finance Director or the Assistant Finance Director as authorized annually via the resolution entitled "Resolution Authorizing Signatures for Financial Transactions". The city's current banking institution will receive a copy of adopted resolution to keep on file. Electronic funds transfers may be used for payroll related expenditures (federal tax, state tax, PERA, etc), investment purchases, debt service payments and payment of invoices of which need to follow the same guidelines for payment processing in Section 5.6. The Senior Accounting Clerk will initiate any invoice related electronic transfers (Comdata, Home Depot) and Accountant II will initiate Payroll related transfers. All initiated transfers will be approved by Finance Director or Asst. Finance Director. Electronic Fund transactions will be submitted Bi-weekly to city council as part of the regular accounts payable bills list. 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 $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 $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. Capital outlay purchases less than $10,000 are inventory assets. Example of inventory assets: Computers, printers, furniture, cameras. 11