8.B.
City Council Meeting - FINAL
- Meeting Date:
- 03/06/2018
- From:
- Brandi Suda, Finance Director
Information
TITLE:
Consideration and Adoption of Resolution No. 2018-14: A resolution of the City Council of the City of Flagstaff authorizing signatures for checks and payment vouchers (Authority to Sign Checks)
Option 1: Give the City Treasurer authority to appoint authorized check signers for City bank accounts.
Option 2: City Council authorizes the check signers for City bank accounts.
Option 2: City Council authorizes the check signers for City bank accounts.
STAFF RECOMMENDED ACTION:
1) Read Resolution No. 2018-14 by title only (Option 1)
2) City Clerk reads Resolution No. 2018-14 by title only (if approved above)
3) Adopt Resolution No. 2018-14
2) City Clerk reads Resolution No. 2018-14 by title only (if approved above)
3) Adopt Resolution No. 2018-14
Executive Summary:
The City needs to update its list of persons authorized to sign checks and payment vouchers on behalf of the City ("authorized signers") which are drawn upon the bank (Wells Fargo). The update is needed due to changes in City personnel. In the past, City's bank required a resolution naming authorized signers. The City's bank no longer requires a resolution. City staff is recommending adoption of a resolution that will allow the City Treasurer to appoint authorized check signers by name. Alternatively, the City Council may continue to adopt a resolution that specifically names authorized check signers.
Financial Impact:
None
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:
None
Has There Been Previous Council Decision on This:
The last change to the authorized signers was Resolution 2017-05 which occurred on January 17, 2017.
Options and Alternatives:
Option 1: Adopt Resolution 2018-14. Gives the City Treasurer authority to appoint check signers as needed (Recommended). This will allow changes to authorized check signers to occur within a few days, and City Council would not need to adopt a new resolution each time the City needs to update its list of authorized check signers.
Option 2: Adopt Resolution 2018-14. Appoints authorized check signers by name for each City bank account.
Option 3: Amend the Resolution with consideration of internal controls,
Option 2: Adopt Resolution 2018-14. Appoints authorized check signers by name for each City bank account.
Option 3: Amend the Resolution with consideration of internal controls,
o Change, expand or limit the authorized signatories.
o Raise or lower the dollar threshold for two signatures.
Background and History:
The City needs to update its list of authorized check signers on file with the bank, due to changes in personnel. The first change is to add Kevin Treadway, Interim Deputy City Manager and remove Josh Copley, former City Manager from the general and payroll accounts. The second change is to add Heidi Lofgren as Deputy Court Administrator and to remove Donald Jacobson, former Court Administrator, for the Court account. The final change is the add Kurt Aldinger and then remove Ellen Ishii from the Flagstaff Housing Authority account.
Key Considerations:
The City Treasurer's duties include disbursement of funds. The City allows only a few people to sign checks and vouchers on behalf of the City in order to maintain adequate internal control over these financial transactions. The City must keep a form on file with the bank, with a list of the currently authorized check signers by name and scope of authority.
The Mayor, Vice-Mayor, City Manager, Deputy City Managers, and the Management Services Director are authorized signatories for the City of Flagstaff general and payroll accounts. Anyone 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. Anyone 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 Housing Director and Housing Authority Program Managers are authorized signatories for the Flagstaff Housing Authority bank accounts. All checks require two signatures.
The Mayor, Vice-Mayor, City Manager, Deputy City Managers, and the Management Services Director are authorized signatories for the City of Flagstaff general and payroll accounts. Anyone 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. Anyone 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 Housing Director and Housing Authority Program Managers are authorized signatories for the Flagstaff Housing Authority bank accounts. All checks require two signatures.
Community Involvement:
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.
Expanded Options and Alternatives:
Inform