Financial Policy Handbook 2017

SECTION 8 - GENERAL FINANCIAL CONTROLS The following are internal controls that are relevant to the overall security of the accounting system as well as the General Ledger. For the purposes of internal control, the following policies shall be followed: 1. Store all checks in a locked location - Unused check stock should always be stored in a locked location. 2. Track the sequence of check numbers used - A log shall be maintained which lists the range of check numbers used during a check run. The log shall be kept separate of the stored check stock. 3. Maintain a voided check log - A log shall be maintained which lists voided checks for the fiscal year. The log shall list the reason for the void, the date the check was voided and the signature of the person voiding the check. The log shall be kept separate of the stored check stock. 4. Blank checks never to be signed - Signatories of checks shall never sign a blank and/or uncompleted check. All information including, date, vendor and amount shall be completed prior to signing a check. 5. Manual checks are only to be used in emergencies - Payments will be run through the normal claims process, unless an emergency need for a check arises. The Finance Director shall authorize a manual check to be issued. In the case that a manual check is issued, at least one signature must be original, in ink and not a stamp. 6. Replacement checks shall not be issued until 30 days after initial issuance - The City shall not issue replacement checks to vendors or employees until at least 30 days has passed between the request for a replacement check is received and the date the original check has been issued. This is to ensure that delivery of the check has not been delayed by the postal system, and to allow time to search for the original check. The only exception to this policy is if the original check was damaged to a point that a bank would not honor it and the original, damaged check is returned to the City. The City will then issue a replacement check during the normal claims procedure. 7. Check recipients shall be contacted after 90 days if checks have not been cashed - During the check reconciliation process, if checks are noted that are 90 days outstanding, the City shall contact the recipient to determine if a replacement check is needed. A replacement check will be issued through the normal claims procedure.