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HomeMy WebLinkAbout2007-03-22 - Resolution No. 07-05RESOLUTION NO. 07-05 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING THE POLICY OF INDIVIDUALS AUTHORIZED TO SIGN DISTRICT CHECKS AND TO AMEND THE POLICY AND PROCEDURES FOR THE USE OF AN AUTOMATED CHECK SIGNING MACHINE. WHEREAS, The Yorba Linda Water District (District) uses bank checking accounts for the collection and distribution of funds; and, WHEREAS, to establish or distribute funds from District checking accounts requires two signatures; and WHEREAS, financial institutions require that those persons authorized to establish an account and/or sign District checks must be designated by Resolution of the Board of Directors; and WHEREAS, Resolution No. 04-08 identifies the Board of Directors as one of the holders of the keys to operate the check signing machine; and WHEREAS, the Board of Directors hereby desires to have the General Manager and Finance Director be more accountable for all accounts payable and payroll checks, NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Sectionl. Persons authorized to establish accounts and sign District checks: a. That the District establishes in its 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. The General Manager, Assistant General Manager and Finance Director collectively are hereby authorized to establish such an account or accounts. b. That the General Manager and Finance Director are the only signatures authorized to appear on the signature facsimile plate used to sign for "Accounts Payable" and "Payroll" checks. c. That in case of an emergency and/or in the best financial interest of the District, the Assistant General Manager and Finance Director are authorized to sign manual checks if approved by the General Manager. If the Assistant General Manager and/or Finance Director is not available, the General Manager is authorized to be the second signer. All manual checks shall be submitted to the Board of Directors for ratification at the next Board of Directors meeting. Section 2. Board members responsibility to review invoices and payable checks. a. A Board member assigned to the Finance-Accounting Committee shall review the list of accounts payable and invoices prior to consideration by the Board of Directors. If the Board member has a question about an invoice, check or an amount, he/she shall meet with 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 3. Procedures for the use of the automated check-signing machine are as follows: a. Two keys are necessary to operate the machine: one key is to lock the signature plate either in or out of the machine and the other to turn the machine on and off. The "Accounts Payable" signature plate and its key and "Payroll" signature plate and its key shall be secured in separate locked boxes within the District vault. The distribution of keys is as follows: Accounts Payable & Payroll Power Access Key General Manager Accounts Payable - Accounting Assistant I Finance Director Payroll - Accounting Assistant II b. The Finance Director is responsible for insuring that all "Accounts Payable" and Payroll checks are made payable to the correct party, in the correct amount and the approved procedures are followed. c. Whenever a facsimile plate is replaced, the Finance Director shall cut the plate into two pieces in the presence of the Secretary/General Manager. One piece shall be taken and disposed of off District premises by the Finance Director and the second piece shall be taken and disposed of off District premises by the General Manager. Section 4. That Resolution No. 04-08 is hereby rescinded effective immediately upon passage of this Resolution. PASSED AND ADOPTED this 22nd day of March 2007 by the following called vote: AYES: Armstrong, Beverage, Collett, Mills, Summerfield NOES: ABSENT: ABSTAIN: Ric Collett President ATTEST: Michael A. Payne, Secreta F1