Financial Policy Handbook 2017

b. Annually, the Finance Assistant shall reconcile the 1099’s received from all institutions holding interest-bearing funds of the City and report the verification to the Finance Director. SECTION 6 - ACCOUNTS PAYABLE The City processes payments for goods and services purchased by the City twice each month for approval at each City Council meeting. All attempts should be made to make payment with the allowable grace period to ensure that the City does not incur late fees. For purposes of internal control, the processing of invoices shall be subject to the following policies: 1. Invoice Approval - Prior to entry into the Accounts Payable system, all invoices scheduled for payment shall be stamped with a signature block that includes space for the approver to enter the account code to be charged, indicate that the items ordered have been received and a space for a signature approving payment. No invoices shall be paid without prior approval. The Account Payables clerk shall maintain a list out outstanding invoices received by the City and that are currently awaiting approval from the appropriate department. Once the invoice has been signed and returned, the invoice should be removed from the outstanding invoice list. 2. Invoices Recorded After Approval - No invoices shall be entered in the payables system without prior approval. 3. Invoice Numbering Guidelines - In order to ensure that duplicate invoices can be detected by the payables system, the following guidelines for recording invoice numbers shall be used: a. Leading zeros: Always delete all leading zeros from an invoice number. Example: Record 00000078234 as 78234. b. Dashes: Always delete all dashes from an invoice number. Example: Record 1234-999 as 1234999. c. Leading alphabet characters: Always include any leading alphabet characters. Example: Record R159758 as R159758. d. No invoice number: Enter the invoice date as a six-digit number. Example: Enter an invoice dated July 9, 2014 as 070914. A system generated invoice number should never be used.