Consideration and Adoption of Ordinance/Resolution No. 2014-41:  A resolution of the City Council of the City of Flagstaff authorizing signatures for checks and payment vouchers (Authority to Sign Checks)  

When the City experiences a change in staff related to current authorized signers for checks and payment vouchers, the City's bank requires a resolution to update the authorized signers.

None.

COUNCIL GOALS:
Effective governance

REGIONAL PLAN:
None.

The last change to the authorize signers was Resolution 2012-27 at the July 17, 2012 meeting.

• Adopt Resolution 2014-41 as submitted.
• Amend the Resolution with consideration of internal controls,
  • Change, expand or limit the authorized signatories.
  • Raise or lower the dollar threshold for two signatures. 

Recently we experienced a change to three positions that are authorized to sign checks and payment vouchers on behalf of the City.  This resolution give appropriate authority for our commercial banks to process revised signatory cards.  The first change comes from the appointment of Celia Barotz as the Vice Mayor.  The second change comes from the resignation of the City Manager Kevin Burke.  We may come back to Council when the new City Manager is appointed and do not feel having one less signatory during this time will hinder payment processing.  The third change comes with the retirement of Court Magistrate Charlotte Beyal. This full time position was not re-filled so we will not be adding anyone else at this time.

The Mayor, Vice-Mayor, City Manager, Deputy City Managers, and the Management Services Director are authorized signatories for the City of Flagstaff.  Any one member of these designated positions is authorized to sign checks up to $100,000 and any check over $100,000 requires two signatures. 

For the Court, the Presiding Magistrate has the authority to sign and appoint additional signers.  Historically this has included the Magistrates, the Court Administrator, and the Deputy Court Administrators.  Any one member of these designated positions is authorized to sign checks up to $10,000 and any check over $10,000 requires two signatures.  The Court's authority is to issue bond refund checks. 
 
For the Flagstaff Housing Authority, the Executive Director, Maintenance Director, Director of Section 8, and Finance Director are authorized signatories for the Flagstaff Housing Authority bank accounts.  All checks require two signatures. 

Authority for signing checks must be in place with those in the organization that have the depth of understanding needed to understand the payment being processed, however they are far enough removed from the accounts payable/purchasing process to maintain adequate internal control.

The community is best served through the application of internal controls that dictate the separation of duties to minimize the possibility of any fund misappropriation. 

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