ADOPTED - DECEMBER 11, 2007
Agenda Item No. 7
Introduced by the County Services and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION RESCINDING RESOLUTION #82-167 AND ESTABLISHING A NEW CLAIMS PROCESSING PROCEDURE
RESOLUTION #07-315
WHEREAS, the Uniform Budgeting Act, P.A. 621 of 1978 as amended, requires that the officers and/or employees of a local unit of government shall not authorize or participate in the expenditure of funds except as authorized by a General Appropriation Act duly adopted by the unit’s legislative body; and
WHEREAS, it is the intent of the Ingham County Board of Commissioners that department heads and elected officials closely adhere to the budget adopted by the Board of Commissioners; and
WHEREAS, an orderly procedure must be established which specifies how claims are to be processed and provide for the elected officials and the department heads to authorize his/her department’s expenditures, the Controller’s Office to audit the claim, and the Clerk’s Office to submit the claim to the Board of Commissioners in a timely manner; and
WHEREAS, certain cost of the operations occur regularly and it is the desire and intent of the Ingham County Board of Commissioners to pay claims promptly, taking all discounts, thereby saving the taxpayers thousands of dollars.
THEREFORE BE IT RESOLVED, that the following general claims procedure be established which, under statute, require the approval of the Ingham County Board of Commissioners.
1) Each elected official and/or appointed department head shall receive
the original invoice for a claim against their respective department.
Upon receipt of the invoice, the department head/elected official shall
verify that the goods and/or services have been received, inspected and
that the invoice has been reviewed and compared to the appropriate
purchase order, resolution or proposal and shall cause a payment request
document to be prepared authorizing the expenditure of funds provided
funds are available and were appropriated in the budget. On this document,
which shall be designated by the Controller’s Office, the department
head/elected official shall indicate the appropriate fund, activity and account
number to which this expenditure is to be charged and sign his/her name
authorizing said expenditure. The request for payment and/or the original
invoice, proof of delivery and such other information as deemed
ADOPTED - DECEMBER 11, 2007
Agenda Item No. 7
RESOLUTION #07-315
appropriate, shall be submitted to the Controller’s Office – Financial
Services Division.
2) The Controller’s Office – Financial Services Division, is charged with the
specific responsibility of auditing the request (claim) for payment. This audit shall consist, at a minimum, of the following: comparing the quantity,
unit price and description of the goods or services invoiced with the corresponding purchase order and/or Board resolution, if required; verifying all calculations; auditing for appropriate account number charged, checking funds available in the budget and proper Board appropriations, checking conformity to purchasing policies established by the Board and proper authorization.
Upon completing the audit, the Controller’s Office – Financial Services Division shall cause to be prepared an “Audit Listing of Claims Summarized by Vendor” and an “Audit Listing by Account” for those which have all supporting documents, or the original invoice. Incomplete claims shall be returned to the submitting department along with a note explaining what information is deficient. Both an approved audited list and an exception list of audited claims shall be submitted to the County Clerk’s Office at least four (4) working days prior to the full Board of Commissioners’ meeting in which said claims are to be acted upon by the Board.
THIS TRANSMITTAL SHALL BE CERTIFIED BY THE FINANCIAL SERVICES DIRECTOR THAT THE “AUDITED LIST AND THE EXCEPTION LIST OF CLAIMS” ARE COMPLETE AND ACCURATE FOR EACH FUND AND ACTIVITY.
3) The Clerk’s Office shall receive the “Audited and the Exception List of Open Items Summarized by Vendor and Summarized by Account” and shall cause to be prepared a listing of claims for the next Board meeting. This listing of claims shall include only those claims that have been submitted to the County Clerk’s Office by the Controller’s Office – Financial Services Division. This claim listing, at a minimum, shall include the payee’s name (vendor) and dollar amount of the claim. In no instance shall the County Clerk exclude an audited claim from the claims listing which is to be presented to the Board of Commissioners for consideration. The Clerk’s list of claims shall have designated thereon by the Clerk what action has been taken by the Board of Commissioners as to each claim. After the Board meeting, the Clerk’s list shall be retained in a book of claims by the Clerk which shall be certified as reflecting the official action of the Board as to each claim and shall not be removed from the Clerk’s Office. The next business day following the Board of Commissioners meeting, the Clerk shall create a warrant authorizing payment of the claims that were approved by the Board of Commissioners. The original warrant shall be sent to the Treasurer authorizing him/her to process checks.
4) THE TREASURER SHALL SEND THE COUNTY CLERK AN ACKNOWLEDGEMENT OF THE WARRANT RECEIVED AND CERTIFICATION THAT THE CHECKS ARE PROCESSED IN ACCORDANCE WITH THE WARRANT WITHIN TWO BUSINESS DAYS AFTER RECEIVING THE CLERK CERTIFICATION.
After the checks are processed, all checks shall be sent to the Controller’s Office – Financial Services Division for mailing and filing. A copy of each check shall be retained by the Financial Services Division.
BE IT FURTHER RESOLVED, that the County Controller be and hereby is granted the authority to authorize payment without action by the Board of Commissioners under the following circumstances for items within the Budget.
1) Implementation of any and all provisions of collective bargaining
agreements, and other compensation plans adopted by the Board of Commissioners.
2) Payment of premiums on insurance policies including, but not limited to,
health insurance, life insurance, dental insurance, unemployment insurance and others.
3) Payments provided for within the provisions of any and all contracts authorized by and approved by the Board of Commissioners.
4) Replenishment of petty cash accounts within the various departments to the extent provided in departmental budgets and authorizing resolutions.
5) Postage to the extent provided in departmental budgets.
6) Jury, witness and attorney fees by order of the Circuit Courts, District Courts and Probate Courts.
7) Any invoices providing for a discount if paid within a specified period, provided such invoices shall not be paid if such time period will allow consideration by the Board of Commissioners without loss of discount and, further, provided that they have been budgeted in the departmental budget.
8) Any and all utility bills, including but not limited to electrical, heating, natural gas, steam, telephone, water and sewage.
9) Travel and registration advances to the extent provided in departmental budgets and as approved by appropriate committee or Board resolution.
10) Payments made to the State of Michigan for State Institutions.
11) Payments for emergency equipment and service needs.
12) Supplies purchases authorized by the Controller as permitted by act 156 of 1851.
THE ABOVE CLAIMS SHALL BE REPORTED BY THE FINANCIAL SERVICES DIRECTOR TO THE COUNTY CLERK AT LEAST ON A MONTHLY BASIS. THE FINANCIAL SERVICES DIRECTOR SHALL CERTIFY THAT THESE EXCEPTION CLAIMS ARE PAID IN ACCORDANCE WITH THIS RESOLUTION. THE COUNTY CLERK, AFTER RECEIPT OF THE CERTIFICATION AND A LIST BY VENDORS, SHALL SUBMIT TO THE BOARD OF COMMISSIONERS THE EXCEPTION LIST OF CLAIMS. AFTER THE BOARD MEETING, THE CLERK SHALL RETAIN THE EXCEPTION LIST OF CLAIMS IN THE BOOK OF CLAIMS. THE CLERK SHALL CREATE AN EXCEPTION WARRANT WHICH SHALL BE SENT TO THE TREASURER AND DATA PROCESSING MANAGER INFORMING THEM OF THE BOARD’S ACTION.
BE IT FURTHER RESOLVED, that payments made for non-General Fund trust agency accounts maintained by the County on behalf of other boards or agencies, upon authorization of any statutory board or agency with the authority to approve and authorize the distribution of sums from accounts maintained on their behalf, be made without Board approval by the County Controller.
BE IT FURTHER RESOLVED, that Resolution #82-167 is rescinded, effective December 11, 2007.
BE IT FURTHER RESOLVED, that this resolution shall take effect December 11, 2007.
COUNTY SERVICES: Yeas: De Leon, Nolan, Copedge, Soule, Dougan
Nays: None Absent: Severino Approved 12/4/07
FINANCE: Yeas: Celentino, Weatherwax-Grant, Grebner, Hertel, Tennis, Dougan
Nays: None Absent: None Approved 12/5/07