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2011-19 Accounting Policies & Procedures ManualRESOLUTION 2011-19 • A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, ADOPTING A REVISED AND UPDATED ACCOUNTING POLICIES AND PROCEDURES MANUAL; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Village Council adopted the Village's Accounting Policies and Procedures Manual providing for internal controls ("Manual") through the adoption of Resolution 37-2002 on June 13, 2002; and WHEREAS, since 2002, the Village Council has adopted a number of revisions to the Village's policies and procedures, some of which were never actually incorporated into the Manual; and WHEREAS, the Village's Auditor and Village Staff have identified certain portions of the Manual that could be improved and/or updated, and Village Administration is recommending the adoption of a revised and updated Manual; and WHEREAS, the Village Council determines that the adoption of a revised and updated Manual is in the best interests of the Village and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA as follows: Section 1. The foregoing recitals are hereby ratified and are incorporated herein. Section 2. The Village Council hereby adopts the revised and updated Accounting Polices and Procedures Manual providing for internal controls, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference. This new Manual shall replace the existing Manual in its entirety. Section 3. All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 4. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED THIS 12th DAY OF MAY, 2011. (Village Seal) ATTEST: VILLAGE CLERK MAYOR THE ~'ILL~ GE OF NORTH PALl'~7 BEACH t~~1.~,Ir•~, ~` ~ ~'~ ~.- ti ~~-r~r-r~-r,i~~ -, ~' ~_ ~~_~ ~~ _.~ ~, A Accounting Policies & Procedures 1~1:uma1 Table of Contents Title Summary of Significant Accounting Policies Accounting Policies . Basis of Presentation and Fund Types Basis of Acconnting Bndgetan Acconnting Purchasing Objective and Department Responsibilities Purchasing Policy hutiating a Purchase Purchasing Procedures, Bids, Contracts, Vendor Selection, etc. Contract Pay went Process . Purchase Orders . Emergency Purchases Purchasing Cards. Sales Tai Exemption Budget Transfers Budget Transfers . Departments /Controlled Divisions Emergency- Transfers Miscellaneous Telephone and Utilit< Bills Ins entoried Supplies Receipt of Goods and Services Acceptance Process for Pay went Payment Invoices Invoice Retirement Check Requests Check Signers ~~illage of North Palm Bench Page 4 5-6 J 6 6 7-15 7 8 9 10-11 11-12 13-1-t 1-t-1~ 1~ 1~ 16-17 16 16 17 18 18 18 19 1~ 19 20-21 20 20 20-21 21 Page 1 of ~0 Accounting Policies & Procedures b-l:mual Village of North Palm Bench Surplus and Obsolete Material Equipment 22 Methods of Disposition 22 Procedure for Sale of Suiphis Items 22 Fixed Assets Accounting and Recording 23-25 General Defiiition. 23 Recording and Tagging 23 Recording Land 23 Recording Land Improvements 23 Recording Buildings 2~ Recording Building Improvements 2-t Recording Construction in Progress 2~1 Recording Maclinen & Equipment 2-t Recording Vehicles 2~1 Recording Infrastrnchue 2~ Capitalization Tlireshold 2~ Deletions 2-t Phi- sical hiventoi~% 25 Exception 2~ Cash Management 26-27 Transfer of Funds 26 Surety Bond Requirement . 26 Cash Receipts and Deposits 26 Petty- Cash 27 Departmental Procedures 28-31 Finance Department 28 Village Clerk 28 Public Safen~ 28 Public Works 28 Libraiti 28-29 Conunuiit<~ Development Department 29 Recreation Department 30 Counti~ Club 31 Investments 32-38 PeiTonnance Measurements 33 Prudence and Etlical Standards 3:I Authorized Investments 3:I Mahu7n~ and Liquidit<- Requirements 35 Portfolio Composition 35-36 Risl~ and Diversification 36 Authorized Investment Institutions and Dealers 36 Tlird Pai~~ Custodial Agreements 36 Master Repurchase Agreement 36 Bid Requirement . 36 Intei7ial Controls . 37 Continuing Education 37 Page 2 of ~0 Accounting Policies & Procedures bl:unuil Village of North Palm Bench Reporting 37 Securities: Disposition 37 Sale of Securities. 37 Police Considerations 37-38 Delegation of Authority-° 38 Inventories 39 Payroll and Personnel Administration 40-41 Persoimel Admiiusharion ~0 Netiti Employees ~0-~l Terminations -t 1 Pay roll -t 1 General Ledger and Financial Reporting 42-45 Chart of Accounts 42 Funds 42 Deparhnent Types -t2-~3 Account Types =t3 Joui7~a1 Entries =t3-4-t Financial Reporting 4~ Anah°tical Rey ie~ti ~~ Amoral General Purpose Financial Statements =t5 Travel 46-_50 Authorit<- to Incur Tray e1 Elpense ~6 Authorit<- to Incur Supplementan Expense ~6-~7 Mode of Tray e1 -t7-~8 Tray e1 Epense Procedure 48-~9 Defiiutions ~0 Page 3 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illn~e of North Palm Bench Summary of Significant Accounting Policies HISTORY The Village of North Palm Beach, Florida ("the Village") was incorporated in 1956 pursuant to Chapter 31481, Laws of Florida, Extraordinary Session 1956. The Village is located in the northeast portion of Palm Beach County, Florida. Its municipal area comprises approximately 1,900 acres of land and 1,200 acres of lakes, canals and lagoons. The Village's non-seasonal population consists of approximately 13,000 residents, which increases during the winter months to approximately 20,000 people. The Village operates under the Council Manager form of government and provides the following services to its residents: public safety, planning and zoning, sanitation, recreation, library, parks, marinas and a country club. The Village Council (the `Council") is responsible for legislative and fiscal control of the Village. Pnge ~ of so Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Budget Transfers Budget Amendment Ordinance A budget amendment ordinance is required when a transfer of moiues increases/decreases the budgeted total of the respective fiord. Budget Transfer Requirements a. Budget transfers from the Council Contingency Account and the Conntn Club Contingency Account must be approved by the Village Council. b. The Village Manager may- approve transfers among activity amounts ~vitlun a department so long as the amounts of the transfers do not exceed $10,000. However, transfers beriveen departments (and not merely- divisions within a single department) and any change to the total departmental expenses nmst be subnutted to, and approved by ,the Village Council. Departments/Controlled Divisions The following are the departments/controlled diz°isions and are considered for budget ri-ansfer purposes: 1. Village Manager: -Village Manager 2. Finance: -Finance - Village Attoi7iev -General Seib ices - General Sei~-ices -Debt Sei~°ices - Reseiti°e - Insurance (Countty- Club) -Debt Sei~°ices (Counh~~ Club) - Reseiti°e (Counttti- Club) 3. pillage Clerk: -Village Clerk ~1. Recreation: -Recreation - Village Council -Special Events - Pool - Tenus ~. Library: - Libraiti 6. Public SafetJ~: -Law Enforcement -Fire Rescue - General Sei~ ices 7. Public Works: - Admiiushation 8. Country Club: - Adniiustration - Facilities Maintenance -Golf Course Maintenance - Salutation -Golf Shop/Carts/Driving Range - Street & Ground -Food & Beverage Maintenance -Clubhouse Grounds - Vehicle Maintenance 9. Community - Connnuiut`~ Planing I0. Information - Infoiniation Teclmology~ Development: -Building Teelrnology: - Code Enforcement ll. Human -Human Resources Resources: Page 16 of ~0 Accounting Policies & Procedures bl:unuil Village of North Palm Bench Emergency Budget Transfer Emer~ency Budget Transfer Procedures Emergency budget transfer procedures for emergency purchases are as follows: a. Emergency budget transfers up to $10,000 among existing budgeted line items of the existing budget (regardless of department) require Village Manager approval, subject to confirmation of the Village Council. b. Emergency budget transfers over $10,000 require Village Council approval. Page 17 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illa~e of North Palm Bench Miscellaneous Telephone and Utility Bills All Village telephone and utilit<~ bills are processed tlirough the Finance Department to veiif~° long distance sei~~ice usage and to ti~eiif~° proper departmental allocation of ntilit<- costs. Any bills receii ed in another department should be foititiarded to the Finance Department Prior to fornarding telephone bills to finance, Department Heads mast rei~ie~~ and sign off on all charges to be paid. Inventoried Supplies In order to obtain cost say ings on those items used fregnentl~ b~ all dep<utments for noi7nal office operations, the Village periodicalh~ compares costs to obtani the best pricing. Pnge is ot` so Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Receipt of Goods and Services Acceptance a. Department Heads are responsible for inspecting all goods upon receipt to deteriine that the quantity° and qualifi of merchandise received meets the specifications of the order. b. If there is a discrepancy, the Department Head is responsible for informing the vendor and the Finance Depu'ment immediately and documenting the conversation in `writing. c. If quantity and quality conforn to purchase order specifications, the Department Head signs off on the invoice and retnn~s it to the Finance Department for processing. Process for Payment a. If the shipment does not complete the purchase order, the Department Head is responsible for forwarding the invoice `with their signahire approving payment along with a copy° of the purchase order to the Finance Department. b. If the slipment completes the purchase order, the Department Head mist mark "Close Purchase Order" on the PINK copy of the PO, sign the invoice approving final payment, and return both of these copies along "ith any other pertinent documentation necessaiti° for processing to the Finance Department Mark the receiving copy ``SHIPMENT COMPLETE RECEIVED' and foitiward it to the Finance Depai~nent. c. Fornard the vendor packing slip or bill of lading (if any) with the receiving copy to the Finance Department. d. Services, as distinct from commodities, rendered mast be certified by the Department Head that the quality- meets the specifications of the purchase order before the invoice is paid. Page 19 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illa~e of North Palm Bench Payment Invoices a. Original vendor invoices will be sent directly- to the Finance Department. b. The Finance Department will pa~~ the invoice oii1~- if: 1. The invoice has been received bye the Finance Department. 2. The Department Head mast sign off on the invoice certifi-ing that there has been a satisfactory delivei~~ of goods or services. 3. Total quantity received per line item is equal or less than quantity ordered. An elplanation is regiured when discrepancies exist. 4. Uiut Price on invoice is the same as ulut price on the purchase order. An explanation is required when discrepancies exist. 5. Eltei>sion per line item is correct 6. Total of line item extensions is reflected by the net total on the invoice. 7. Advantage is taken of all allowable discounts. 8. Funds are available within the department s budget. Invoice Retirement a. Check is issued to vendor, signed b~~ the appropriate authorized individual(s). b. Original invoice is marked "PAID"'. c. The "PAID" invoice, and- other necessan~ supporting documentation, and the renuttance copy- of the check are attached to the purchase order and filed. Check Requests a. Department Head may- request checks on prescribed foi7ns for: 1. Travel 2. Traiiung 3. Subscriptions C. Donations 7. Contributions 8. Conhact Labor ~. Reimbursements ~. Petty Cash 9. Independent Conhactors 10. Etc. Pnge ?o ot` so Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench b. All check requests that are subnutted for payment should include supporting documents and are subject to follo~~ terms and conditions of accounting policies and procedures. Check Si i~ lers All checl~s dr<i~~ n on any depositor of Village fluids shall be signed by both the Village Manager and the Finance Director, or in the absence or inabilit<~ of the Finance Director and/or the Village Manager to sign such checks, they shall be signed by the Vice Mayor and/or the Mayor. Page 21 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Surplus and Obsolete Material and Equipment Methods of Disposition a. Surplus, woi7i out or obsolete material and equipment may be disposed of in any of the following wa~~s: 1. By transfei77ng to other departments. 2. By reh~nring to the manufachuer or supplier. 3. B_y haling in on new equipment. ~. By jmlhing. 5. By advertising for sale. b. Each department shall report its surplus or obsolete stock, equipment or materials to the Finance Department. c. All Capital Equipment shall be declared surplus by Village Council before processing as surplus. Procedure for Sale of Surplus Items a. If surplus material is sold, it shall be accomplished by the affected department in confoi7nance with competitive practices. b. Surplus proper- may be disposed of by auction. Final approval for sales will be made by the Village Manager or lus designee. Advertisement for such sales will be made in a local newspaper at least one time, no less than five (5) days prior to sale or auction. Page 22 of ~0 Accounting Policies & Procedures l~t:umal ~~illage of North Palm Bench Fixed Assets Accounting and Recording The Village follows the capitalization requirements of GASB Statement #3~ (Asset Capitalization & Depreciation Guidance) for its filed assets. General Definition Capital assets include: land, land improvements, buildings, building improvements, coi>sttliction in progress, maclineiti~ and equipment vehicles and infrasrilichue. Recording and Ta~~g Departments tivill fill out the filed asset worksheet for all newly- acquired assets with the following infornation: a. Description b. Price c. Department d. Location e. Condition f. Custodian g. VIN - Mamzfacturer -Model -Model Year -License Number h. Estimated life i. Vendor, Purchase Order Number, Inventor Number, Inventoiti- Date, Amount Once information is received a tag number is assigned and information is put into the system. A print out of the information is rnn and the tag number is attached to the print out The paint out and tag number are sent to the Department Head to put the metal asset tag number on the equipment The cope of the print out is to be retained b~~ the department until equipment is disposed. Recording, Land Land is to be capitalized but not depreciated. It is recorded at listoiical cost and remains at that cost until disposal. If there is a gain or loss on the sale of land, it is reported as a special item in the statement of activities. Recording Land Improvements Land improvements include items such as excavation and non-infrastrnchzre utility- installation; driveway s, sidewall~s, parking lots, flagpoles, retailing walls, and fencing, outdoor lighting, and other non-building improvements intended to make the land ready- for its intended purpose. Land improvements can be fiuther categorized as non-exhaustible and exhaustible. Non-Exhaustible - Expendittues for improvements that do not require maintenance or replacement expendihues to being land into condition to commence erection of strnctt~res, expenditures for improvements not identified with sttlichues, and expenditures for land improvements that do not deteriorate with use or passage of time are additions to the cost of land and are generalh~ not exhaustible and therefore not depreciable. Exhaustible -Other improvements that are part of a site, such as parking lots, landscaping and fencing, are usualh~ exhaustible and are therefore depreciable. Depreciation of site improvements is necessan~ if the impro~ ement is exhaustible. Page 23 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Recording Buildings Buildings should be recorded at either their acquisition cost or constmction cost. The cost of new coi>shl~ction should be carefiilh~ evaluated. Usually projects consist of major components such as land, land improvements, building conshlaction (including professional fees and peniilts), fianilh~re, fixtures and equipment_ In addition, buildings include components (e.g., roof, air conditioner system, etc.) that should be recorded separately when sigiilficant because these building components have different nsefiil lives. The value of each component needs to be deteniilned and placed witliln its own categoi}~ . Recording Buildin~provements Building improvements that extend the usefiil life should be capitalized. Examples of building improvements include roofing projects, major energ}~ conseii~ation projects, or remodeling and replacing major building components. Oiily those projects that meet the capitalization tlueshold need to be included. Recording Conshl~ction in Progress Conshl~ction in progress should be capitalized and not depreciated. It should be reported with land and other non-depreciating assets at the govenmment-wide level. Unspent debt proceeds from capital assets related debt should be reported in the net assets section of the statement of net assets as "resriicted for capital projects." Recording Maclilner~° and Equipment Assets such as fi~nuture, maclilnen and equipment (that meet tlueshold levels) should be identified and inventoried. Some assets, individually, may fall below the capitalization tlueshold but may be purchased in large quantities by the Village. Examples include library boobs, textbooks and computers. The Village should aggregate such assets and consider the materialit< and sigivficance of them and if material or sigivficant capitalize such items either individually or in the aggregate. Recording Vehicles Vehicles should be identified, inventoried, and if applicable depreciated. Recording hifrashlichue hifrashl~chire assets are long-lived capital assets that normally can be preseraed for a sigiilficant greater number of years than most capital assets and that are normally stationai~- in nah>re. Examples include roads, bridges, humels, drainage systems, water systems, and dams. Infrastmchire assets do not include buildings, drives, parking lots or any other examples given above that are incidental to propei~~ or access to the propei~~. Capitalization Threshold Capital assets and infrastmchue are capitalized and depreciated as outlined in the capitalization tlueshold table below: Capitalization Tlueshold Table: Tracking and Inventoiv Capitalize and Depreciate Land $1 Capitalize oiilv Land improvements $1 $25,000 Building $1 $50,000 Building Improvements $1 $50,000 Constrnction in Progress $1 Capitalize oiilv Macluneiz_ & Equipment $1,000 $5,000 Vehncle $1,000 $5,000 Infrash~uchue $50,000 $250,000 l~el eti nn s To delete equipment or an asset fiom asset records the asset worksheet should be filled out for retire date, disposal code, and sell price. Page 24 of ~0 Accounting Policies & Procedures bl:unuil Village of North Palm Bench Physical lilventory Plivsical inventor of all filed assets nmst be tal~en ammall~ . Each department will be responsible for taping an animal physical count of their department's inventory per the list provided by the Finance Department. Department Head shall certifi~ the complete physical count additions, deletions and changes marked on the list, and reconciliation of all discrepancies. The Deparhnent of Finance will be responsible for keeping up to date listings of all filed assets. Exception Department Heads may- request the Finance Department to track and inventoiti- any item less than $1,000. Page 2~ of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Cash Management General Policy The Village's deposits are held in qualified public depositories pursuant to State of Florida Stahrtes, Chapter 280, and "Florida Security for Public Deposits Acts". The Village also opts for the investment policy in compliance with State of Florida stahrtes chapter 218.15. Transfer of Funds The following Village officials are authorized to transfer fluids between Village baiih accounts on behalf of the Village: 1. Manor 2. Vice Manor 3. Village Manager 4. Finance Director Surety Bond Requirement The following Village officials shall each before entering upon the duties of their respective office: give a good and sufficient Surety- Company bond to the Village in the following amount: 1. Village Manager, $ 200,000 2. Finance Director, $ 200,000 3. Village Clerk, $ 10,000 ~. Country Club Manager or Admiiustrator, $ 200,000 Cash Receipts and Deposits All mail, including checks, is received by the Executive Secretary to the Village Manager. The Executive Secretarti then distributes the mail to each department. Each department is responsible for preparing the deposit and snbnutting the checks and report to the Finance Department on a daily basis for posting in the general ledger. Departments are required to send their deposits to the FiikZnce Department within one business day. Departments are not allowed to hold any- cash and/or checks to be processed at a later date. Page 26 of ~0 Accounting Policies & Procedures 1~1:uma1 Petty Cash ~~illage of North Palm Bench The Village maintains petit° cash boles for regular operations, customer sei~~ice and incidentals. The follo~ying is the list of departments ~yith Pett`~ Cash: General Fund Country Club Public Saferi $ 200 Adiniiustration $ 500 Conunmut< Development -t00 Driving Range 1,00 Recreation 300 Golf Pro Shop X00 Village Clerk 50 Restaurant 1,600 Human Resources 100 Temus Shop 300 Total Petty Cash CC S-x,000 Pool Shop 100 Libraiti 150 Finance 1~0 Total Petn~ Cash - GF All disbursements from petty- cash require appropriate supporting documentation: 1. Payment Amount 2. Payment Date 3. Description of Elpendih~re ~. Account Number 5. Proper Authorization The designated employee in the department is responsible for the verification of payments made from the pett<~ cash accounts, repleiuslnnent of the fluids and the reconciliation of the account balances on a montlily basis. The procedures to reimburse the petty cash fluids are as follo~ys: The designated employees of the department prepares a disbursement foi7n ~yluch contains the follo~ying infoi7nation: 1. Disbursement Date 2. Name of the Pavor 3. Description of Disbursement ~. Account Number and Amount The petty cash supporting documentation is attached to the completed disbursement foi7n. Repleiuslnnent requisitions are revie~yed and approved by the Department Head and sent to the Finance Deparhnent for repleiuslnnent of the fluids. Page 27 of ~0 Accounting Policies & Procedures l~r:umal ~~illa~e of North Palm Bench Departmental Procedures Finance Department Payments are received tluough the mail and ~, is electrorilc fluids hansfer (EFT/ACH) from various sources. Deposit slips are prepared by an Accounting Clerk and checks are deposited in the bank daily by a courier (Public Safety° Officer). Any payments received during the day, tivluch are not to be deposited in the baril~, are kept in the secured area until the deposit is made. All payments are identified by t<-pe and coded by the Accounting Clerk. A copy- of any support documentation is filed in the montlily cash receipts folder, along with a validated copy- of the deposit slip. All deposits are then posted to the general ledger (cash, revenue or other account as applicable). The Finance Director and Fir><lnce Manager periodically rep°ie~` the reports and deposit records. Deposit slips along with supporting documentation are then grouped by month and maintained in the Villages records in accordance with retention requirements. Village Clerk The Village Clerk's Office receives payments for copies of public records, zoning maps, code supplements, lien certifications, donations, and code enforcement fines/liens. A receipt is generated for each transaction, with one copy to the purchaser, one copy to the barili bag, and one copy remairrs in the receipt boob in the Clerk's office. A barill deposit is prepared as needed by the Adrnirristrative Assistant and verified by the DeputS~ Village Clerk or Village Clerk. The baril~ deposit form specifies the total received for each of the Clerk's revenue line items. The cash, checks, uid deposit form are sent to the Finance Department for processing. Public Safety Public Safety receives payments for special details, copies of reports, fingerprinting, new alarms, false alarms, alarm pernilt renewals, water restrictions, parking violations, and bicycle registrations. A receipt is generated for each transaction. A baril~ deposit is prepared as needed. The baril~ deposit form specifies the total received for each of the department's revenue line items. The casl>, checks, and deposit form are sent to the Finance Department for processing. Public Works The Public Works Department receives payments for refiise collection, project plans & specification documents, and vegetation debris ordinance fees. A baril~ deposit is prepared as needed. The baril~ deposit form specifies the total received for each of the departments revenue line items. The cash, checks, and deposit form are sent to the Finance Department for processing. Library The Librar-y~ receives payments for fines, lost/damaged books, memberships, library cards, fares, copies, and donatiors. A baril~ deposit is prepared as needed. The baril~ deposit form specifies the total received Pnge ?s ot` so Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench for each of the departments revenue line items. The cash, checks, and deposit form are sent to the Finance Department for processing. The Libran also collects mone~~ for the Friends of the Libran . These moiues are honed over to the Treasurer of the Friends at their conveiuence. Community Development Department Building Division All applications for building permits, business tam receipts, revisions, and contractor and non-domicile registrations are submtted to the Building Division. Staff verifies the application/registration information and deteriunes the applicable fee(s). Staff then enters appropriate information into the computer system. Payment is due in fiall at the time of subnuttal. Radon fees and other impact fees ~yill be collected upon issuance ~yhen applicable. Each Permt and Licensing Teclnucian maintains lus/her own $200 cash till (total cash of $~00). Staff distributes the application to the appropriate persomiel (e.g. Building Official, Fire Cluef, Plamier, etc.) for plan revie~y. After all necessarz approvals are completed, the information is updated in the computer system and the applicant is notified. Planning and Zoning Any land use, rezoiung, variance, or plat applications are submitted to the Community Development Director for processing along tiyith all estimated filing fees affiliated ~yith the project The Plamier then revie~ys and verifies all information for accuracy and enters the information into the project management sofriyare Project Database (~yluch assigns each project a imuque project identification number). The Plamier sets up an account ~yith the Finance Department for each assigned project number to track any/all account receivables and/or payables for tl><at project. The Plamier prepares a deposit slip to subnut to Fiikznce ~yith the deposit Cash, checks and the deposit slip are placed in a locked deposit bag and sent to the Finance Department at the end of the day. Prior to final approval of the project, the project account is reconciled. If the acfial costs exceed the project deposit the der°eloper is regiured to pay the balance prior to final approval. If the deposit amount elceeds the actual cost, the balance is refiuided to the applicant. Code Compliance Payments received for abandoned propei~~ and/or abatement fees are entered into the computer system. All checks and cash are given by the recei~°ing Code Compliance Officer to a Permit and Licensing Teclnucian in the Building Department to be processed as part of their daily deposit procedure. Code enforcement liens are collected and received and processed by the Village Clerh's Office. Preparing the Daily Deposit Prior to the end of their shift each day, each Pemut and Licensing Teclnucian generates and prints a daily deposit report fiom the computer system smnmaiizing all of the day's transactions. Each technician reconciles their dra~yer, and prepares a deposit slip for the cash and checks received. The cash, checks, deposit slip, and daily receipt report are placed in a locked deposit bag and sent to the Finance Department at the end of the day. Page 29 of ~0 Accounting Policies & Procedures 1~1:uma1 Recreation Department Registrations village of North Palm Bench All registrations are taken at the Anchorage Parh Facility-•. Staff versifies registration information, including resident/non-resident states. Staff sings all transactions tluough the RecTrac system. Moines are placed in a deposit bag and dropped into the safe at the end of the evenning. Checks and cash are totaled and compared to amounts on the Cash Jonrnnal that is printed out. Cash. checks, receipts, and cash jonnnal tape are all placed in a locked deposit bag and sent to the Finance Department. Tennis Shop The cash register drawer 1><as a $300 balance at all times. Even' sale is entered into the RecTrac POS sv stern. 1. The custoner gets a cope of the receipt. 2. The Countn-~- Chib Administrative Office gets a copy. The receipts are pre-numbered. A roster of all members is nnaintained in the Tenunis Shop for reference, although all mennbers should have a membership card with them. Closing Procedures are completed by the employee in charge of the cash register. L The cash register is closed out at the end of each day. 2. A Cash Jonrnnal is printed from the system. A Cash Journal sunenarizes the clerlis~ monnies for the day-, and the money taken in should nnatch the total of the Cash Journal. 3. The money is put in a locked deposit bag and stored in the safe until picl-up the newt mornung to go to the Finance Department. Pool Shop The Pool maintains a daily log-in sheet for members and non-members. The Pool Attendant hues this sheet in with the cash receipts for the day. Pool Director Coaches sell merchandise in the shop. Tlus merchandises is NOT Village property , or Village sales or receipts. Receipts are generated in triplicate for such purchases of merchandise and are distributed as follows: White----customer copy Yellow---coach's cope when charged to a member's account Pinnk------remains in the shop Closing procedures are completed by the employee in charge of the cash register: L The cash register is closed out at the end of each day. 2. A Cash Journal is printed out at the end of the day. The clerk balances the monues being firned in to the Cash Journi<al. 3. The money and the Cash Journal are finned into the Adnunustration Office to fontivard to the Fini<znce Department. Page 30 of ~0 Accounting Policies & Procedures bl:unuil Village of North Palm Bench Country Club There are four cash registers on the club prenuses: L Golf Pro Shop (2) 2. Restaurant (2) The Golf Shop registers produce tluee tapes, one for the customer, one for the starter, and one for the Village. The registers at the Restauuant produce ri~ o receipts, one for the customer and one for the Village. All Counti~~ Clhb receipts go through the Country Club Admiiustration Office and are foiti~ arded to the Finance Department Each day, pre-numbered receipts, Cash Joui7>~al and cash are honed o~~er to the Accounting Clerk. The Accounting Clerk re~ie~~s for acciuacy, makes coi7ections ~~here necessai~~ and prepares the baiill deposit slip and makes the daily- deposit. The Connhti Club has $x,000 in petty cash on the general ledger. The petty- cash consists of the follo~~ ing: Admiiustration Office $ 500 Dri~-ing Range 1,00 Golf Shop 500 Restaurant 1,600 Total Cash $x,000 Each cash register has its own specific procedures for closing out the register, "luck will be described separately belo~ti Golf Pro Shop Each cash register dra~~ er has a $250 balance at all times (total cash of $500). Eveiti- sale is entered into the Golftrac POS system and each receipt is generated in triplicate. The receipts are dishibuted differently depending on tope of purchase: Green & Cart Fees: one for the dra~ti er one for the starter one for the customer Merchandise: one for the dra~j er one for the customer At the end of the day , the cashier counts back the opeiung cash dra~ti ($250) and puts the remaiiung cash (after reconciling to their indi~~idual Cash Jounnal) in a baiil~ deposit bag ~~ loch is placed in a locked aught deposit safe and foi~ti arded to the Finance Department in the monung. Driving Range The money is reino~ ed daily fiom ball machines and entered into the GolfTrac POS system as driving range sales. The money is deposited «ith the regular business. Restaurant E~~ery sale is entered into the MICROS POS system. Each server is in clkarge of lus/her o~tin "baiill." Closing procedures are as follo~ti s: 1. The indi~ ideal "baiil~" is closed out at the end of each employees shift. 2. A Cash Journal is printed out at the end of the employee's sluff The employee balances the moiues being honied in to the Cash Journal. 3. The money and the Cash Journal are hinted into the Admiiustration Office to forward to the Finance Department. Page 31 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Investments The Village has adopted the Investment Police pursuant to Florida Stahrtes chapter 218.15. Pur ose The Village invests any surplus fluids that are in elcess of the amounts needed to meet cui7ent elpenses. Tlus investment policy places the highest priorit< on the safet< and liquidity of fluids. Scope Thus inveshnent policy applies to all the inveshnent activity of the Village, except for its employees pension fluids, which are orgaiuzed and adiniiustered separately, or for fluids related to the issuance of debt where there are other existing policies or indenh~res in effect for such fluids. Funds included: a. General Fund b. Special Revenue Funds c. Enterprise Funds d. Capital Projects Funds e. Any new fluids created by the govenung body muess specifically exempt. Objectives The piimaiti objectives, in priorit<- of order, of investment activities shall be safety- of principal, liquidity of fluids, and inasiinizing inveshnent income. 1) Safet< Safet<- of principal is the foremost objective of investment activities. Investments shall be undertaken in a mamier that seeks to insure presei~~ation of capital in the overall porfolio. All other inveshnent objectives are secondai~~ to the safety of principal. The objective will be to mitigate credit risk and interest rate risk. a. Credit Rish- Credit risk, the risk of loss due to the failure of the secnrit< issuer or backer, will be miiunuzed Uv: i. Linuting investments to the safest types of securities. ii. Pre-qualifi ing the financial instihrtions, broker/dealers, intermediaries, and advisers with which the Village will do business. iii. Diversifi ing the investment portfolio so that potential losses on individual securities will not place an undue financial burden on the Village. Page 32 of ~0 Accounting Policies & Procedures b-l:mual Village of North Palm Bench iv. Moiitoring all of the Village's investments to anticipate and respond appropriately to changing market conditions. v. Quarterly reporting, in comparative format, of all market values of invested fluids and inshlunents. b. Interest Rate Risk- The Village will miiimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rate b~~: i. Stmchuing the investment portfolio so that the securities mahue to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to mahuity. ii. Investing operating fluids primarily- in short-teen securities, money market nmh~al fluids, or sinilar inveshnent pools uiiless it is anticipated that long-term securities can be held to mahirit< without jeopardizing the liquidity requirements. 2) Liquidity a. General Liquidity : The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. Tlis is accomplished by shl~chuing the portfolio so that the securities mature concui7ent with cash needs to meet anticipated demands. Furthermore, since all possible cash demands camiot be anticipated, the portfolio should consist largely of securities with active secondaiti- or resale markets. Portions of the portfolio may be placed in interest-bearing checking/savings accounts with qualified public depositories. Securities and Exchange Conuiission registered money market fluids with the highest credit quality° rating from a nationally recogiized rating agency, or local govenunent investment pools wlich offer same-day liquidity for short-teen fluids. b. Local Liquidity-: The chef financial officer of the village shall establish and maintain a local, liquid fined in an amount equal to, as a miiimnm, one-twelfth (1/12) of the designated operating fluids in the animal village budget. 3) Investment Income Without compromising safety- and liquidity , the lighest possible total return should be obtained on the Village's fluids. Income will include interest/dividends received as well as anv_ realized or uiuealized gains and losses of principal of the underlying security. Performance Measurements In order to assist in the evaluation of the portfolio's peiTormance, the village shall use nationally recogiized benclunarks for the short tern and long term portfolios. Pei~ornance calculations will not include any balances invested in overight sweep accounts. a. Short term portfolio- A nationally recogiized Money Market Fund Index, such as Standard and Poor s Goverrunent Investment Pool Index/Goyenunent ~yill be used as a benclmiark. b. Long tern portfolio- Inveshnent peiTormance of the village portfolio will be compared to the 1- ~ year Uiited States Treasiu~ index or the equivalent composed of U.S. Treasui~y~ or Govenunent securities, with duration and asset nix that approximates the village portfolio. Page 33 of ~0 Accounting Policies & Procedures 1~1:uma1 Prudence and Ethical Standards ~~illage of North Palm Bench 1. Prudence The standard of prndence to be used shall be the "prndent person rnle", which states that: hnTestments should be made with judgment and care, under circumstances then prevailing, which persons of pnidence, discretion, and intelligence elercise in the management of their own affairs, not for speculation, but for the investment, considering the probable safet<r of their capital as well as the probable income to be derived fiom the investment. The Cluef Financial Officer, or other persons pei~foniung the investment fiuictions, acting in accordance with written policies and procedures, and elercising due diligence shall be relieved of personal responsibilitc~ for an individual securit< ~s credit risk or market price changes, provided deviations from elpectations are reported immediately and that appropriate action is take to control adverse developments. Ethical Standards Officers and employees involved in the inv°eshnent process shall refrain from personal business activity- that could conflict with the proper elecution and management of the investment program, or that could impair their abilit<~ to make impartial decisions. Employees and investment officials shall disclose any material interest in financial instihrtions with which they conduct business. Thee shall fiuther disclose any personal financial/investment positions that could be related to the pei~onnance of the investment poilfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Village. Authorized Investments and Pre-qualification The Village ma~~ invest and reinvest, in accordance within the objectives stated in subsection (c), in the financial inshlunents noted in the table inset below. When considering such investments, the village shall use the following pre-qualification parameters for specific instihrtions: a. Baiil~s: The Village shall select a baiil~ from the most cul7ent top-10 listed "Qualified Public Depositories" with a GAEL (Capital Adequacy, Asset Qualit<~, Eanungs, Liquidit<~) score of 3 or better. Baiil~ eli;ibilit< CAEL Score Consolidated Asset Value Eligibilit<~ 1-3 Top 10 asset rated U.S. Public Funds Depositoiti° Institutions b. SEC registered money/marhet mutual fiords: S&P: AAA Miiummn Moodv~s: AAA Miiummn Insurance companies: A.M. Best Rating: Mirilnnun aaa c. Corporate interest notes: S&P: AAA Miiumum Moody`s: AAA Miiumum d. Local govenunent inveshnent pools: All components in each pool must satisfy the appropriate pre-qualification parameters noted for that instihrtion. Page 3~ of ~0 Accounting Policies & Procedures 1~1:uma1 Maturity and Liquidity Requirements ~~illage of North Palm Bench The Villages investment portfolio shall be strnchared to provide sufficient lignidit~~ to pay obligations as they come due. Furthermore, to the extent possible and attempt will be made to match investment mahu7ties with liliown cash needs and anticipated cash flow requirements. Uiiless matched to a specific cash flow, the Village will not directly invest in securities mahuing more than tluee years floor the date of purchase. Portfolio Composition The following are the limits for inveshnents and limits on secnrit< issues, and maturities in the portfolio. The Cluef Financial Officer has the option to fiuther restrict investment in selected inshuments, to conform to the present market conditions. Note: The table insert noted below defines ttvo types of Village investments: "Operating' and "Core": 1. Operating: Those liquid fluids necessan~ to conduct routine village activit<~, in addition to an amount deteniuned by the village council and adiniiustration sufficient to cover emergency sihiations and unforeseen capital eipendihues. 2. Core: All fiords not included in operating fluids. In general, these fluids can be invested in issues with longer-term mahuities. These terms shall be defined and the amounts will be designated at least once a year during the village budget discussions. Changes daring a year shall oiily be made by resolution of the village council. These changes will apply to the end of the cui7ent fiscal year and must be reconfirmed or changed as needed during the welt normal budget process. Table Inset: Azrthorz_eclltivestnzeyits T~7~e ofFzrnds ~~Icrt~aritl~ ~Iiliimi~ni °o ~~Icrsim~rm °o Rrni,~=e=e 8.33% 100% Interest-bearing Operating N/A (1'12 ot'ammal lno more than so~o with CheCliing Ol savings ~~ ilinge operating and one depositor Budget) institution) accounts 100% COre NSA 0% (no more than ~0°0 ~~ ith and one depositor instihrtion) Interest-bearing time Operating 30 days 0% 91.67% deposits (11;12", of:uunk2l \-'ilinge Opel'atlllg hDdget~ (no store than 33.33°'0 ~~ith ant- one issuer) COle 3 _yea1S ~% 1~~% (no store thmi 3333°0 R'lth allv Olle 1SSDer) The Local Govermnent Operating N/A 0% 25% Surplus Funds Trnst Fund/intergovennnental Core N/A 0% 25% investment pool Securities and Operating N/A 0% ~0% Elchallge Colnnussion (no more thvi 3333°0 with anv one issuer.) Page 3~ of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench registered money Core N/A 0% 50% marketfilllds (no more th:ur 3333°0 ~~~ith an~~ one issuer.) Direct obligations of Operating 30 days 0% 50% the Uiited States Treasun~ Core 5 years 0% 100% Federal Agencies Operating N/A 0% 0% Core 5 _~-ears 0% 50% (no more than 10°o with any one issuer) Corporate Notes Operating N/A 0% 0% Core 3 _y-ears 0% 2~% (no store th:m 33.3°0 ~6'lth allF Olle 15sDerl Risk and Diversification Assets Held shall be diversified to control the risl~ of loss resulting from the o~-er concentration of assets in a specific mahuit<, issuer, iushluneut dealer, or baiilL tluough wlich these inshluueuts are bought and sold. Diversification strategies shall be reviewed and revised periodically as deemed necessai~ by the Clief Financial Officer. Authorized I<7vestment Institutions and Dealers A list will be maintained of financial iustihrtious authorized to provide investment seii-ices. In addition, a list also will be maintained of approved securitF- brokers/dealers selected by credit worthiness. Tlurd-Party Custodial Agreements All securities purchased by the Village shall be properly designated as an asset of the Village and shall be held iu safekeeping with aturd-paid custodial institution. The turd-pair custodian "-ill be required to designate all securities held as assets of the Village. No «ithdrawal of securities, in whole or in part, shall be made from safekeeping, elcept by the Clief Financial Officer, or lis/her respective designees. Securities transactions between a broker-dealer and the custodian in~rolviug purchase or sale of securities by transfer of money or securities umst be made on a "deliveiti- vs. paymeuf' basis, if applicable, to ensure that the custodian will have the securitc• or money, as appropriate, in hand at the conclusion of the transaction. Master Repurchase Agreement All approved instihrtions and dealers transacting repurchase agreements shall eiecute and pei~onn as stated in the Master Repurchase Agreement All repurchase agreement transactions shall adhere to the requirements of the Master Repurchase Agreement. Bid Requirement An appropriate mahuit<~ date will be deteniuned for each inveshment base on cash f low needs and market conditions. Based on these considerations, the Clief Financial Officer will ana1~ ze and select one or more optimal t< pes of inveshnents and competitively bid the securit<- in question when feasible and appropriate. Eicept as othernise required by law, the bid deemed to best meet the investment oUjectives specified in subsection III umst be selected. Page 36 of ~0 Accounting Policies & Procedures l~t:umal Internal Controls ~~illage of North Palm Bench a. The Cluef Financial Officer shall establish and maintain a written s~-stem of inteiaial controls made a part of the village's operational procedures. The inten><al controls shall be designed to prevent losses of funds, ~vluch might arise from fraud, employee error, and nusrepresentation by third parties, or imprndent actions by employees of the Village. No person shall engage in an investment transaction except as authorized in this police. b. Independent auditors, as a noi7nal part of the animal financial audit to the village, shall conduct a revie« of the s~-stem of internal controls to ensiue compliance ~ti ith policies and procedures as ma~~ be required by the village. Continuing Education The Cluef Financial Officer shall complete eight (8) hours of continuing education amorally in subjects or courses related to investment practices and products. Reporting; The Cluef Financial Officer shall prepare a quarterly investment report, which shall include securities in the portfolio by class and tti~pe, acquisition cost, income eanied, yield, mah~rity° date and market value as of the report date. The report will be pro~~ided to the legislative and govei7ung body° of the Village. The report shall be a~~ailable to the public. Securities; Disposition Even- security purchased on behalf of the Village nmst be properly eannarhed and: a. If registered with the issuer or its agents, must be iimnediatel~- placed for safeleeping in a location that protects the Village's interest in the securit<- . b. If in book entr° form, must be held for the credit of the govenung body by a depositor- chartered b~° the Federal Govei7mient the State of Florida or any-° other state or territon~ of the Uiuted States which has a branch or principal place of business in the State of Florida as defined in Florida Stahrte Section 658.12, or by a national association orgaiuzed and existing under the laws of the Uiuted States which is authorized to accept and exercise mists and which is doing business in the State of Florida and must be kept in the depositor° in au account separate and apart from the assets of the financial instihrtion: or If physically issued to the holder but not registered with the issuer or its agents, must be iimnediately placed for safekeeping in a secured vault. Sale of Securities When invested fiords are needed in whole or in part for the piuposes originally intended or for more optimal inveshnents, the Cluef Financial Officer may sell such investments at the then prevailing market price and place the proceeds into the proper account or fluid. Policy Considerations 1. Exemptions: Any investment held prior to the adoption of this policy that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At mahzrity~ or liquidation, such moiues shall be reinvested only as prop ided by this policy. Page 37 of ~0 Accounting Policies & Procedures l~i:umal ~~illa~e of North Palm Bench 2. Amendments: Tliis policy shall be reviewed on an animal basis by~ the village council at the "setting of council goals and objectives" session of the animal budget The Village Council must approve any changes. Delegation of Authority The Finance Director is the Clief Financial Officer of the Village and is responsible for investment decisions and activities. No person may engage in an investment hansaction elcept as provided under the terms of this police and the procedures established hereunder. Nothing set forth hereni sl><111 preclude the Village from utilizing a Cl><Zrtered Fii>aiicial Ai><~lyst or any other individual or agency sn~ject to formal oversight by the United States Securities and Escl><ange Commission to invest fiords on bel><alf of the Village iii accordance with the mandates of paragraph (h) of tlis investment policy. Authorized signatories are the Clief Financial Officer, the Village Manager and the Village Mayor. These indi~-°iduals are also authorized to initiate wire transfers for the Village. All investment transactions require approval by two of the depositon~ signatories. Pnge 3s ot` so Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Inventories The Village beeps inventories for gas & diesel fiiel (Public Works Department), medical supplies (Public Safen~ Department), golf merchandise (Counti~~ Club Golf Shop), and liquor, food &non-alcoholic beverages (Countrti Club Restaurant). These in~~•entories are maintained b~~ each respective department and reconciled by- the finance department to properly allocate the expense on a montlil~ basis. Page 39 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illa~e of North Palm Bench Payroll and Personnel Administration For most local govei7unents, persomiel sei~~ice costs (pay-roll and related fringe benefits) constihrte the single largest categoi~ of eipendihues. Proper control over and accounting for persomiel sei~~ice costs is therefore vital to financial control. Effective payroll adnuiustration begins well before the preparation of pay-roll checks. The pay-roll procedures of the Village are designed to pernut the accurate and timely transnussion of the payroll checks. Personnel Administration The Human Resources Director acts as Persomiel Manager for the Village of North Palm Beach. The Village Persoimel Policies are govei7ied b~~: 1. Persomiel Rules and Regtilations 2. Comprehensive Pay and Classification Plan adopted aimually in the budget 3. Various Uiuon Contracts The Human Resources Director is responsible to oversee the new lures, terminations, pay- scales and other persomiel related matters. Persoimel Action Foi7n (PAF) generally is used to elecute persomiel related changes in the pay-roll sy stem. New Em~loyees The Human Resources Deparhnent is responsible for processing new employees. Department Heads are required to work with the Human Resources Director to complete the following foi7ns for all new employees: 1. Employment Application and Background Releases 2. Department Hiring ReconunendationMerno 3. Conditional Offer Letter from the Manager ~. Persomiel Action Form ~. Background Check Authorizations 6. Oath 7. W-~ 8. I-9 and copy(ies) of supporting document(s) 9. Drng-Free Worl-place Acknowledgement and pre-employment testing histn~ctions 10. Emergency Contact Form 11. Identification Badge Questiomiaire and Picture 12. F.S.S. 119.07 Elemption Foi7n 13. Policy Acknowledgements (Safety-, FMLA, and Vehicle as applicable) 1~. Medical Insurance Eiuollment Form or Opt-Out Form (fiill-time employees oiily) 15. Dental Insurance Eiuollment Form or Waiver (fiill-time employees oiily) 16. Life Insurance Eiuollment /Beneficiary Designation Foi7n (fill-time employees oiily) 17. Long-term Disability Eiuollment Fonn (fiill-time employees oiily) 18. Fleiible Spending Account Eiuollment Form (optional / fiill-time employees orily°) Pnge ao ot` so Accounting Policies & Procedures b-l:mual Village of North Palm Bench 19. Optional Insurance product ei>rollment forms if elected (e.g., EyeMed vision insurance, AFLAC, etc.) (fill-tune employees oiily-, elcept AFLAC) 20. Pension Election Fonn(s) (fiill-time employees oiily) 21. Defei7ed Compensation (~57) Eiuollment Fonn (optional / fiill-time employees oiily-) 22. Direct Deposit Fonn (optional) The Human Resources Director reviews the papei~york of the new employees and sends it to Fii><uice Department for completion in automated payroll system. Follo~ying activation in payroll, employee papenyork is scamied by Finance and rehuned to Human Resources for maintenance as part of the employee's persomiel file. Terminations The Human Resources Deparhnent is responsible for processing teniunations. Department Heads are required to work ~yith the Human Resources Director to complete the follo~ying forms for all ternunations: 1. Persoimel Action Fonn 2. Elit Checklist (for rehun of all Village property) 3. Elit hitei~-ie~y ~. Computation of payout of accrned leave balances in accordance «ith applicable policies and/or collective bargaiiung agreements ~. Coordination of continuing benefits as applicable (COBRA, retiree insurance, and/or portability- of life insurance) The Human Resources Director reviews the papenyork of teniunated employ ees and sends it to Finance Department for completion in automated payroll system. Follo~ying final payouts tluough payroll, employee papei~york is scamied by Finance and reh~rned to Human Resources for inclusion in the employee's persomiel file. Payroll The Village pays wages on a bi-~yeehly basis. The Filiance Department elechoiucally- submits an eanungs worksheet to each Department ~yluch lists each employee and the categories of payment, i.e., regalar pay, overtime pay, vacation, etc. The follo~ying procedure is used to process the payroll papei~yoil~: 1. The Filiance Department sends out a blaiil~ worksheet to every Department on Friday before the end of the pay period on Sunday. 2. The Departments complete the «orksheets on the first Monday of the new pay period. The Deparhnent Head allocates the munbers of hours worked among these categories. Any categon~ other than regtilar pay nmst be supported by an approved persomiel action form. 3. The Department will print a hard copy of the ~yorksheet and attach all supporting documents. The Departments will subnut the payroll work sheets to the Finance Department no later than the close of business on Monday. Departments must also submit completed time cards/sheets for each employee that has been signed by the employee verifying their time as accurate. The Finance Department ~yill hold the checks of all employ ees for ~yhom a signed time card/sheet is not received for the employee to pick-up in the Finance Department and sign for their time. Page ~}1 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench General Ledger and Financial Reporting The Village utilizes a double entl~~ system that includes the general ledger, books of original enh~~ and suitable subsidialti records. The general ledger illfol7nation is stored in a general ledger system. The books of original entl-~- are posted and the general ledger and subsidial-~- ledgers are kept current and balanced to the control accounts montlil~T. Physical safeguards are maintained over the accounting records. Aback-up copy , on computer dishtape, of the accolmting system is updated daily and kept in a safe place. Access to accounting records is restricted to employees with designated responsibilit<- for the records. Chart of Accounts The Village incorporated the Uniform Accounting System Chart of Accounts developed by the State of Florida Department of Balil~ing and Fir><Znce as an integral part of its accounting sy°stenl. The general ledger account classification shllchlre, as defined by the Village, consists of 10 digits. Funds While each ~-ear's budget will deteniune which fluids are used, ili general, the Village play utilize the following fiulds: 1. General Fund 2. Enterprise Funds 3. Trnst and Agency Funds 4. General Fised Assets 5. General Loeb teen Debt 6. Capital Projects Fund 7. Special Revenue Funds Department Types Govenunental Fnnds Village Council Village Manager Village Clerk Finance Legal General Sel-~-ices Elpendihue La~v Enforcement Police Folfeihlre Tnlst Elpendihlre Fire Department Pool Temlis Building Department Adnlillistration -Public Works Facilities Maintenance Sallltatloll Streets & Grounds Maintenance Vehicle Maintenance Libran Recreation Special Events Debt Sen ice Reseli~es Collnnnrnn Plalllllllg Code Enforcement Page ~}2 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench Enterprise Funds Golf Course Golf Shop & Driving Range Restaurant Reseii~es Counh~- Club Achniiilstration Clubhouse Grounds Debt Sei~-ice Account Types Assets and Other Debits Tlils heading covers not oiily assets, but also those items that are not assets at the date of the balance sheet, but are expected to become assets at some fiihue time. Tlils heading also includes accounts, ~ylilch noi7nally haze debit balances even though they are not assets. Liabilities and Other Credits Tlils heading covers not oiily liabilities in existence at the date of the balance sheet, but items which may become liabilities at some firture time, and other accounts which noi7nally cai7~ credit balances. Revenues Revenues may be operationally defined in a govennnental fined accounting context as "all increases in fluid net assets except those arising from intei~'iuid reimbursements, interfiuid operating and residual equit<- transfers, or long-term debt issues". Expendiuues The term "expenditures", whether used in comiection with the accrnal or accrnal basis of accounting, denotes the cost of goods delivered or seii-ices rendered (whether paid or unpaid) including expenses, capital outlays, and the provisions for debt retirement where such debt is not reported as a liabilit<- of the fluid from which it was retired. Each expendih~re should be analyzed and classified individually by transaction code, and object regardless of the orgaiilzational neat incm7ing it. Cost allocation may° be necessary where material amounts of expenditures for a single orgaiilzation milt cross fiuiction-activitF- lines. Journal Entries Journal entries are used to record all financial transactions in the general ledger. There are two t<pes of .journal entries. Journal enh}~ sources are used to identifi where the joui7ial enh~ originated. The sources are: • Manual Journal Enti~ • Payroll System • Accounts Payable • Cash Receipts Page ~}3 of ~0 Accounting Policies & Procedures bl:unuil Village of North Palm Bench Computer Generated Journal Entries Upon completion of their "orh, other accounting persoimel (i.e., Accounts Parable, Pay-roll, and Accounts Recei~ able) update their joui7ial entries automatically- on the computer sy-stem. Various checks and balances are completed along the ~~~ay- to insure acciuacy-. Manual Journal Entries Journal entry- forms are prepared to document all manually- prepared journal entries and are the source document to record infoi7nation in the general ledger. Various accounting persoimel are responsible for preparing this type of jonn~al entt~y . The Finance Director approees each manual journal entn before it is entered into the accounting sy-stem. The document contains the follo~ti ing data: • Transaction date • Jounial enriti~ number • Account number (s) • Account title • Transaction debit or credit amount (s) • Transaction description Supporting documentation, ~tihere applicable, for the transaction being recorded is attached to the journal entn foi7n. The joui7ial entry forms and attached supporting documentation are filed by the month in ~ti lilch the` occui7ed. Daily, the computer generated joui7ial entries and the manual joui7ial entries are updated to the general ledger in accordance ~~ ith the automated accounting based sofriti are. Financial Reporting Financial statements and schedules are prepared from the accounts and related records. Montlily~ financial reports and reports of operating results are prepared to facilitate management control of financial operations and to allo« public and legislati~~e oversight of the Village's operations. Analytical Review Montlily- all general ledger accounts are revie"ed. Each staff member is responsible for those accounts under their control. If applicable, comnnrtative results from the general ledger accounts are collected in various spreadsheets. The results from the spreadsheets are then revie~~ ed, balanced and/or matched to independent information. The Finance M<uiager and Finance Director are responsible for overseeing the revie~ti s. Page ~~ of ~0 Accounting Policies & Procedures bl:unuil Village of North Palm Bench Annual General Purpose Financial Statements The Village requires that an aimual audit of its accounts and records be completed after the end of its respecti~°e fiscal year by an independent certified public accountant retained by it and paid from its public fluids. The audited general propose financial statements contain the following sections: • Report of Independent Certified Public Accountants • Combined Balance Sheet -All Fnnd TS~pes and Account Groups • Combined Statement of Revenues, EYpendih~res and Changes in Fluid Balances -All Govei7~rnental Fetid Types • Statement of Revenues and Espendih~res -Budget and Actual -Special Revenue Fund • Compliance Report based on an audit of the general purpose financial statements peiToi7ned in accordance with govenunent auditing standards • Report on the intei7ial control shl~ch~re in accordance with govennnent auditing standards • Report on continents to management • GASB Reporting Requirements Page ~}~ of ~0 Accounting Policies & Procedures l~l:umal ~~illage of North Palm Bench Travel Purpose The propose of the Travel Regulatiol>s is to provide a policy for guidance of employees and officials who are required to travel on official business of the Village, to attend schools, col>ferences, seminars, conventions, or other designated purposes. Objective The plim<u~y objective is to provide a procedure to be used when lnal~ing claims for reimbnrselnent of tra~-e1 and supplementan- expenses by- travelers and payment of these allowances b~- the Finance Department. Tlus procedure is applicable to all Village officials, employees, and authorized persons when making claims for travel expense allowances: all deparhnent/division supervisors, adnulustrators, the Village Manager when authorizing and approving travel, and the Finance Department when paring travel expenses. Authority to Incur Travel Expense All travel must be sanctioned by budgetal}~ appropriation. Additional authorization for Department Head travel must be obtained from the Village Manager (no such authorization is necessan for travel by members of the Village Council). The Village Manager may- promulgate such rnles and regulations, and prescribe such forms as shall be necessan to effectuate the proposes of this manual. a. All regular overnight out-of-town travel by employees must be approved in writing in advance by the Village Manager after reconmlendation of the Department Director. All local and/or current-day travel must be approved in writing by the respective Department Director. b. The mode of travel will also be approved in the same mariner as the travel. c. Local mileage will be authorized by Department budgetary availability and, in addition, approved in advance by the Department Director. Approval will be attached in reimbursement/payment documentation provided to the Finance Director. Authority to Incur Su~~plementary Expenses Authorization to incur supplementan expenses must be by budgetan action or special authorit<- granted by the Village Manager. The following are the orily expenses authorized to be claimed as travel expenses: a. Transportation Allowance: 1) Fare - Conmlercial coach or tourist fares, utilizing the most direct route available to the carrier used. 2) Mileage -The mileage allowance for a private vehicle shall not exceed the latest allowable IRS per mile rate for mileage traveled either during reglrlar travel or local trips in the ilmnediate vicinity of the Village. b. Lodguig: Reimbursement for lodging shall be at the cnr7ent single occupancy rate and firlly supported by° said bills. Employee should seek the commercial rate whenever possible. Page ~}6 of ~0 Accounting Policies & Procedures bl:unuil Village of North Palm Bench c. Per Diem Subsistence Allowance: For the purposes of reimbursement rates and methods of calculation, per diem and subsistence allowances are divided into the following groups and rates: 1) All travelers shall be compensated for subsistence when traveling to a convention or conference or when traveling within or outside the state in order to conduct bona fide Village business, when such convention, conference or travel sei~ es a direct and lawfi~l public purpose. The subsistence allowance shall consist of either of the following for each day of travel, at the option of the traveler: i. Fifty- dollars ($0.00) per diem: or ii. If ach~al expenses eiceed fifty- dollars ($0.00), the amounts pernutted in paragraph (2) for meals, plus actt~al expenses for lodging at a single occupancy rate to be substantiated by paid invoices. 2) All travelers shall be allowed the following amounts for subsistence while on official business: Breahfast ........................................................................................$12.00 Lunch ............................................................................................ $18.00 Dimier ...................................................................................................... $20.00 3) No one, whether traveling out of state or in state, shall be reimbursed for any meal or lodging included in a convention or conference registration fee paid by the Village. d. All allowance rates for succeeding nears shall be established concni7ently with passage of the animal budget appropriation ordinance. e. Other Expenses: Tips and grattiities are not reimbursable to Village employees. The following incidental travel expenses will be reimbursed. Receipts should accompany requests for payment, when available. 1. Tali or limousine fares 2. Ferry fares, and bridge, road and humel tolls 3. Storage or parking fees ~. Communication expenses (business only) ~. Conference or convention registration fees if attendance at such conference or convention sei~, es a direct public purpose with relation to the person attending such meetings. Mode of Travel Travel by Common Carrier All navel shall be upon established direct routes, and shall be at coach or tourist fare rates. If a traveler elects to take an indirect route for lus/her com eiuence, costs in excess of the rate for a direct route passage shall be borne by said tray eler and he/she shall be reimbursed only for such direct route rate. The Village Manager shall deternune the most cost effecti~ e method of travel for each trip, and in making lus deternunations, shall consider the following conditions: Page ~}7 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illage of North Palm Bench The nahue of business. The most efficient and economical means of travel (considering the time, cost of transportation). The number of persons making the trip and the amount of equipment or material to be transported. Travel by Private Vehicle a. The use of a privately owned vehicle for official travel in lieu of public vehicle or coimnon carrier may be authorized by the Village Manager, if a publicly owned vehicle is not available. If traveling by privately owned velicle, the traveler shall receive reimbiusement of a nuleage allowance authorization by the Village policy. b. All nuleage sl><~tll be computed from point of origin to point of destination and, when possible, shall be computed on the basis of the cui7ent map of the State Road Department. Viciiut< nuleage necessai~~ for conduct of office business is allowable but must be shown as a separate item on expense vouchers. c. No traveler shall be allowed mileage or transportation expense if he/she is grah~itonsly° transported by another person, or when transported by another traveler who is entitled to nuleage or transportation elpense from the Village. Advance Travel Allowance Advance payment of ha~~el allowance is peniutted provided that an advance is requested and approved by the Village Manager prior to disbursement. Advance travel payments are subject to the followilig rnles: a. The Village shall advance to employee, prior to travel, per diem for meal allowance, cost of hotel, h~ition and registration fees which have not been prepaid by the Village. Employees are encouraged to request the checks made out directly to hotels and orgaiuzations to avoid paying sales and other tales. Sales tai paid by the employee for hotel is not reimbursable. b. Separate requests must be subnutted for each person making the trip. Payment will be made with separate checks issued to each person. c. Requests will be supported by a copy of the applicable meeting brochure and will be subnutted soon enough to allow sufficient time for processing and preparing checks. d. Check Issue Authorization foi7n must be authorized by the Department Head and approved by the Village Manager. Tlus form is then subnitted to the Finance Department for check issuance. e. Upon rehu7i from a tip, all receipts and supporting documentation must be snbnutted with a completed Report of Travel Expense foi7n. If additional moues are owed, a check request form should be attached. Moues not spent should be rehu7ied to the Finance Department with the Report of Travel Expenses. Travel Expense Procedure Travel Expense Reimbursement Travel expense will be reimbursed at the rates prescribed and authorized by the Village policies. A Request for all out-of-town oversight travel must be submitted in writing to the Village Manager reflecting recommendation of the Department Director. A Travel Expense reimbursement form for all Page ~} of ~0 Accounting Policies & Procedures 1~1:uma1 approved travel costs, including receipts traveling employees to their Department reimbursement package will be foitivarded subnussion to the Fii~Znce Department. Payment for Travel ~~illage of North Palm Bench and Check Issue Authorization foi7n must be snbnutted by Director for review and written approval. Tlus approved to the Village Manager for lus review and approval before After the Finance Department's review and approval of mathematical accuracy and a detailed review of required receipt documentation for the appro~~ed travel reimbursement, checks will be issued by the Finance Department to the individual requesting payment. Page ~}9 of ~0 Accounting Policies & Procedures 1~1:uma1 ~~illa~e of North Palm Bench Definitions Authorized Tra~~el That travel approved by Village Council tluough an appropriation ordinance and approved in advance by the Village Manager; or travel approved by Village Council extemporaneously. Class A Travel Continuous travel of rivent<~-four hours or more away from the Village which involves ovenught absence. Class B Travel Travel for a short or day trip not involving ovenught absence. Common Carrier Train, bus, connnercial airlines operaring scheduled flights, or rental cars of an established rental fii7n. Other Expenses Other incidental expenses for which reimbursement has been authorized, including: a. Taxi fare, fern fares and tolls b. Auto storage and parking fees c. Connnuiucation elpenses d. Miscellaneous expenses Supplementai•~~ Other elpenses authorized by Council or budgetan- action which are not Expenses considered part of travel; e.g., spouse accompanying traveler with special peniussion, entertaiiung during and as a course of tra~-e1, etc. Traveler Any person authorized by law to travel a Village elpense while traveling of official business. Travel Day A period of rivent< -four hours consisting of four quarters of six hours each. Travel Expense The usual ordinan- and incidental espendihue necessarily incurred by a traveler. Travel Period A period of time beriveeu the time of deparh~re and time of rehu7i. Village The Village of North Palm Beach, Florida. Village Official An individual who in the pei~'ormance of lux official duties is vested by la~v with powers of govei~runent and who is elected by the people, or appointed by the Village Council and has jurisdiction eltending tluoughont the mm~icipalit<, or any person law-fully sei~-ing as either of the foregoing classes of individuals as designee or successor. Pnge so ot` so