TO: Mayor Bien-Willner and Town Council Members
FROM: Jill Keimach, Town Manager
Douglas Allen, CPA
DATE: January 9, 2020
DEPARTMENT: Finance
Staff Contact Douglas Allen
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AGENDA TITLE:
Title
Discussion on amending Town code to clarify offices and transaction approvals
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SUMMARY STATEMENT:
REQUESTED ACTION
Council’s direction for possible code amendments for consideration on January 23rd. The amendments are intended to align Town code with organizational structure changes and maintain an adequate number of available check signers for continuity of operations.
PURPOSE
The purpose of the proposed code amendments is to align Town code with recent organizational structure changes by to establishing the office of Chief Information Officer and maintain an adequate number of check signers for continuity of operations.
In December 2019, the Town’s Organization structure was modified. Table 1 below shows some of the impacted functions and the department responsible for providing those services. Changes in the Town’s organization structure and code are not necessarily always synonymous; autonomous changes do occur.
TOWN OFFICES
Section 3-1-2 of the Town Code establishes offices in the Town government. Below are the proposed changes for Council’s consideration. The proposed change is to remove the Deputy Town Manager and add the Chief Information Officer. This would be the first inclusion of the Chief Information Officer as an office. Table 2 below show changes to the Town offices section of Town Code since 2009.
AUTHORITY TO SIGN CHECKS
Section 3-2-6(N)(1)(2) of the Town Code authorizes specific positions to sign Town checks. Below are the proposed amendments for Council’s consideration. The proposed change reverts back to the Chief Financial Officer (“CFO”) being an authorized check signer and helps ensure adequate check signers are available when needed.
Table 3 below shows that various titles for the position serving as the Director responsible for the Finance Department have been an authorized check signer. In May 2018, the Chief Financial Officer replaced the Director of Administration and Government Affairs in all sections of Town code except for check signing. The Deputy Town Manager was authorized for check signing.
The attached file titled “03_Adopted 2018-12 Amend Chapter 3 Administration May 2018” is a highlighted red-line version of code amendments adopted May 2018.
INTERNAL CONTROLS
Internal controls for procurement are in Town Code Section 3-8-3 and the Town’s administrative procurement procedures. The Town’s auditors had validated this proposed code amendment would not create an internal control concern.
OTHER MUNICIPALITIES
Table 4 summarizes the results of a survey conducted by the Town’s Finance department. The common theme of respondents was:
Ø Limited check signers;
Ø Same signers for all thresholds;
Ø Use of electronic signatures; and
Ø Emphasis on their strong internal controls.
REQUESTED ACTION
Council’s direction for possible code amendments for consideration on January 23rd. The amendments are intended to align Town code with organizational structure changes and maintain an adequate number of available check signers for continuity of operations.
FUTURE CONSIDERATION
As part of a broader initiative to examine the Town’s financial processes and internal controls, staff may bring other options for checks and other financial transactions for Council’s consideration later in the year.
DOCUMENTS
Documents provided with the agenda item include the presentation slides, proposed code amendments for Council’s consideration and direction, and a highlighted red-line version of code amendments adopted in May 2018.
ATTACHMENT(S):
01_Presentation - Proposed Chapter 3 Amendments January 2020
02_Proposed 2020-01 Amend Chapter 3 Administration January 2020
03_Adopted 2018-12 Amend Chapter 3 Administration May 2018