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HomeMy WebLinkAbout2009-08-13 - Resolution No. 09-12 RESOLUTION NO. 09-12 ' RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING ITS POLICY AUTHORIZING INDIVIDUALS TO ESTABLISH ACCOUNTS AND SIGN DISTRICT CHECKS, AMENDING THE POLICY AND PROCEDURES FOR THE USE OF AN AUTOMATED CHECK SIGNING MACHINE, AND RESCINDING RESOLUTION NO. 07-05 WHEREAS, The Yorba Linda Water District (District) uses bank checking accounts for the collection and distribution of funds; and WHEREAS, The establishment of a bank checking account and the distribution of funds from District checking accounts require that two signatures be provided; and WHEREAS, Financial institutions require the District's Board of Directors to authorize by Resolution those persons who can establish an account and/or sign District checks. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: ' Section 1. Resolution No. 07-05 is rescinded and shall have no further force and effect. Section 2: Persons Authorized to Establish Accounts and Sign District Checks a. That the General Manager, Assistant General Manager, and Finance Director are each hereby authorized to establish bank checking accounts and sign District checks. b. That the District hereby directs Staff to establish in the District's name one or more accounts with Wells Fargo Bank for "Accounts Payable" and "Payroll" upon such terms and conditions as may be agreed upon with said bank. c. That the General Manager, Assistant General Manager, and Finance Director shall be the only signatures authorized to appear on the signature facsimile plates used to sign for "Accounts Payable". d. That in case of an emergency and/or if it is in the best financial interest of the District, and if approved by the General Manager, the Assistant ' General Manager and Finance Director are authorized to sign manual checks. I Resolution No. 09-12 Authorized Signatures on District Checks 1 f e. That if the Assistant General Manager and/or Finance Director are not ' available to sign a manual check, the General Manager is authorized to be the second signer with any member of the Board of Directors as the first signer. f. That all manual checks shall be submitted to the Board of Directors for ratification at the next Board of Directors meeting. Section 3: Board Members Responsibility to Review Invoices and Payable Checks a. That a Board member assigned to the Finance-Accounting Committee shall review the list of accounts payable and invoices ("billboard") prior to consideration by the Board of Directors. If the Board member has a question about an invoice, check or amount, he/she shall contact the General Manager prior to the billboard being approved. If a problem is found and is not easily corrected, the invoice and check will be withdrawn from the billboard until the issue has been corrected to the satisfaction of the Board member and General Manager. The invoice and check will be added to the next available billboard. Section 4: Procedures for the Use of the Automated Check Signing Machine ' a. That two keys shall be necessary to operate the machine: one key is to lock the signature plates either in or out of the machine and the other to turn the machine on and off. The "Accounts Payable" signature plates and their keys shall be secured in separate locked boxes within the District vault. The distribution of keys is as follows: Accounts Payable Signature Plates Keys Power Access Key General Manager Accounting Assistant I Assistant General Manager Accounting Assistant II Finance Director b. That the Finance Director is responsible for ensuring that all "Accounts Payable" and "Payroll" checks are made payable to the correct party, in the correct amount, and following the approved procedures. c. Whenever a signature plate is replaced, the Finance Director shall cut the plate into two pieces in the presence of the General Manager. One piece of the plate shall be taken and disposed of off the District premises by the Finance Director and the other piece shall be taken and disposed of off the District premises by the General Manager. Resolution No. 09-12 Authorized Signatures on District Checks 2 PASSED AND ADOPTED this 13th day of August, 2009 by the following called vote: AYES: Directors Armstrong, Beverage, Collett, Mills and Summerfield NOES: None ABSENT: None ABSTAIN: None n W. Summe field, President Yorba Linda Water District ATTEST: K n Vecchiarelli, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: ASE u G. idman, Esq. McCormick, Kidman and Behrens, LLP Resolution No. 09-12 Authorized Signatures on District Checks 3