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Item G06 G.6 County of Monroe P W ;� w 1rJ� BOARD OF COUNTY COMMISSIONERS r,�� Mayor Craig Cates,District 1 The Florida Keys Mayor Pro Tem Holly Merrill Raschein,District 5 y Michelle Lincoln,District 2 James K.Scholl,District 3 Ij David Rice,District 4 County Commission Meeting January 18, 2023 Agenda Item Number: G.6 Agenda Item Summary #11535 BULK ITEM: No DEPARTMENT: Land Authority Governing Board TIME APPROXIMATE: STAFF CONTACT: Christine Hurley (305) 295-5180 9:25 AM AGENDA ITEM WORDING: A Resolution of the Monroe County Comprehensive Plan Land Authority repealing previous Resolutions and establishing bank accounts, signature authority, and banking processes. ITEM BACKGROUND: Since inception of the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") various Resolutions were approved establishing banking procedures and signature authorities. Today's banking practices provide opportunities for streamlined operations while still maintaining dual internal controls. This resolution: • Repeals previously established banking policies and signature authority in Resolutions 001- 1987, 002-1987, 06-1988, 04-1989, 05-1989, and 04-1997 • Establishes three types of bank accounts with dual internal controls for the Land Authority including: o Operating Account which is used for vendor payments and payroll. Authorized signatures for expenditures from this account will include: joint signatures by Chairman via facsimile stamp and Executive Director. ACH Services (electronic payments) are being added to this account through this resolution which will allow the Land Authority staff to pay vendors electronically, instead of manual check. The Office Manager will enter the requested payment and the Executive Director will have approval authority. o Special Account which is used for land purchases or affordable housing construction funding. Authorized signatures for expenditures from this account will include: joint signatures by Chairman via facsimile stamp and Executive Director. ACH Services (electronic payments) are being added to this account through this resolution which will allow the Land Authority staff to pay for purchases with the Office Manager entering the requested payment and the Executive Director will have approval Packet Pg. 1910 G.6 authority. Finally, Electronic Funds Transfer (EFT) may be used from this account. The authorized process for EFT shall be where the Office Manager would initiate the wire online and the Executive Director would log in to their own online account and approve the wire to assure internal dual control. o Local Government Surplus Funds Trust Fund (Florida PRIME) Account which is used for surplus deposits to obtain the highest yield with proper safeguards. The Executive Director is authorized to transmit/withdraw such funds to/from Florida Prime Account (SBA) to be invested according to applicable laws of the State of Florida consistent with the needs of the Land Authority. The Land Authority Chairman and Executive Director are authorized to notify the SBA of changes in account information. This authorization shall be continuing in nature until revoked by the Land Authority. PREVIOUS RELEVANT GOVERNING BOARD ACTION: 07/07/1987 —Governing Board adopted MCLA Resolution 001-1987 09/15/1987 —Governing Board adopted MCLA Resolution 002-1987 04/05/1988 —Governing Board adopted MCLA Resolution 06-1988 05/23/1989 —Governing Board adopted MCLA Resolution 04-1989 08/30/1989 —Governing Board adopted MCLA Resolution 05-1989 09/17/1997 —Governing Board adopted MCLA Resolution 04-1997 CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: DOCUMENTATION: Proposed Banking Resolution 2023 MCLA Payment Procedures for Checks, ACH, Wires 001-1987 002-1987 04-1989 04-1997 05-1989 06-1988 FINANCIAL IMPACT: Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Packet Pg. 1911 G.6 Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: If applicable,please type in "None" or "N/A"; OR, if costs are associated with this item, check the 'Budget Affected" box below and complete the funding source box for our Budget office. For each funding source, select the cost center from the drop down list in the "Source" column and enter the amount(do not insert$ sign). If the cost center is not known or not yet created, select"NEW COST CENTER ADDED" from the drop down list. PLEASE REMEMBER TO DELETE THESE INSTRUCTIONS PRIOR TO SAVING/SUBMITTING. REVIEWED BY: Christine Hurley Completed 12/06/2022 11:44 AM Dina Gambuzza Completed 12/06/2022 12:23 PM Lindsey Ballard Completed 12/12/2022 11:02 AM Board of County Commissioners Pending 01/18/2023 9:00 AM Packet Pg. 1912 G.6.a RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY REPEALING PREVIOUS RESOLUTIONS AND ESTABLISHING BANK ACCOUNTS, SIGNATURE AUTHORITY, AND BANKING PROCESSES. WHEREAS, the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") previously established banking policies and signature authority in Resolutions 001- c, 1987, 002-1987, 06-1988, 04-1989, 05-1989, and 04-1997; and , WHEREAS, banking practices and services have changed so that Land Authority processes can be streamlined; and WHEREAS, manual check writing and mailing checks is resulting in Land Authority funds being held by banking institutions, without the benefit of earning interest which could be remedied by wiring or sending funds electronically; and WHEREAS, the Land Authority is purchasing properties more frequently, which necessitates a change in business processes, including banking; and WHEREAS, the Land Authority wishes to adopt certain internal controls to reduce the agency's exposure to risk of theft; N NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE N PLAN LAND AUTHORITY: Section 1. Resolutions 001-1987, 002-1987, 06-1988, 04-1989, 05-1989, and 04-1997 are 0 U) hereby repealed. Section 2. The Land Authority shall have three bank accounts. Section 3. Operating Account. The first account, held by First State Bank of the Florida Keys, is the standard operating account which, in general, shall be kept at a balance close to $500,000. In general, this account is used for vendor payments and payroll. The authorized 0. signature for check writing for the operating account shall be by the joint signatures of the Chairman and the Executive Director of the Land Authority. Checks are pre-numbered and kept in a locked file cabinet. The paymaster imprinter and the facsimile stamp bearing the Chairman's signatures for this purpose is kept locked and only used by the Office Manager to assure to First State Bank the legitimacy of the check. Furthermore, Automated Clearing House (ACH) Services (electronic payments) may be used from this account. The authorized process for ACH for the operating account shall be where the Office Manager enters the requested payment and the Executive Director approves the payment, as an internal dual control. Section 4. Special Account. The second account, held by First State Bank of the Florida Keys, is an account which, in general, shall be used for land purchases or affordable housing construction funding and shall be kept at a balance close to $500,000 with transfers into this Page 1 of 3 Packet Pg. 1913 G.6.a account being made from the SBA account when land purchase amounts are greater than $500,000 or the balance kept in this account. The authorized signature for check writing for the operating account shall be by the joint signatures of the Chairman and the Executive Director of the Land Authority. Checks are pre-numbered and kept in a locked file cabinet. The paymaster imprinter and the facsimile stamp bearing the Chairman's signatures for this purpose is kept locked and only used by the Office Manager to assure to First State Bank the legitimacy of the check. Furthermore, Automated Clearing House (ACH) Services (electronic payments) may be used from this account. The authorized process for ACH for the special account shall be where the Office Manager enters the requested payment and the Executive Director approves the c, payment, as an internal dual control. , In addition, Electronic Funds Transfer (EFT) may be used from this account. The authorized process for EFT shall be where the Office Manager would initiate the wire online and the Executive Director would log in from their own account and approve the wire, as an internal dual control. Section 5. Local Government Surplus Funds Trust Fund (Florida PRIME) Account. The third 0 account was created by an Act of the Florida Legislature in 1977, known as the Florida State Board of Administration (SBA), which is utilized when the Land Authority has excess funds on hand to obtain the highest yield consistent with proper safeguards. The Executive Director is authorized to transmit/withdraw such funds to/from Florida Prime (SBA) Account to be invested according to applicable laws of the State of Florida consistent with the needs of the Land Authority. N The Land Authority Chairman and Executive Director are authorized to notify the SBA of N changes in account information. This authorization shall be continuing in nature until revoked a by the Land Authority. 0 U) Section 6. For purposes of dual internal control, when an Office Manager is in training or in the absence of the Office Manager, there may be a 2nd "Acting" Office Manager designated by the Executive Director, for authorizations and initiation of processing of payments and banking - purposes. 0 0. 0 c� Page 2 of 3 Packet Pg. 1914 G.6.a PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of 2023. (Seal) Commissioner Craig Cates Commissioner Michelle Lincoln Commissioner Holly Raschein Commissioner Jim Scholl Chairman David Rice U ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Christine Hurley, AICP David Rice Executive Director Chairman Approved as to form and legality: Greg Oropeza, Esquire N N c� Page 3 of 3 Packet Pg. 1915 G.6.b MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY CASH DISBURSEMENT/PROCESSING/PAYMENT INSTRUCTIONS AS OF JANUARY 18, 2023 The following administrative instructions outline processes and procedures to assure accounts payable and expenditures (excluding payroll) document management's internal control policies and procedures to ensure effective and efficient processing of bill paying,with internal controls to ensure appropriate authorization, availability of budget, and appropriate supporting documentation, including accurate recording of payments and account classification. In addition, 0 the dual safeguarding of asset and segregation of duties controls minimizes fraud risk. a� Manual Checks • Manual checks are used as infrequently as possible. • MCLA issues manual checks on a weekly basis, depending on need. If a manual check is necessary, the following procedures are followed: o Office Manager: 1. Vendor invoice is stamped with date received, date paid, and initialed by Office Manager 2. Audit Detail Slip and check is prepared 3. Checks are printed using the laser printer 3 4. Check is stamped with Pay Master 5. Check is stamped with Chairman's facsimile signature 6. Check information is entered in Ledger and Balance spreadsheet 7. Check, Audit Detail Slip, and corresponding invoice are given to Executive Director for Director approval and signature 2 8. A photocopy is made of check, Audit Detail Slip, and invoice and filed in appropriate accounts payable folder in file cabinet. These files are held in hard copy for one year, then disposed of. 9. A scan copy is made of the check and invoice and filed in appropriate MCLA Audit a� folder on U:Drive 10. Check and invoice stub are mailed to vendor. Checks are mailed via US Post or Federal Express,with tracking to assure checks are received by vendors and cashed. U o Executive Director: 1. Executive Director receives red folder with Audit Detail Slip, invoices, and checks. 2. Executive Director logs each check number, account code,vendor name, date of check, and amount of check in CheckNumberCH Excel File. Office Manager does not have access to this file. 3. Executive Director signs checks or uses electronic signature to sign check. Page 1 of 3 Packet Pg. 1916 G.6.b 4. Monthly, Executive Director uses bank statements to document checks that have been cashed or cleared the bank. Check Security/Safety Features • Blank checks are controlled in a locked cabinet secured by the Office Manager. The Office _ Manager maintains a log of all check numbers printed or issued in Ledger and Balance spreadsheets. U • For security purposes, the checks are printed with: - Thermo chromatic ink; 0 - Florescent visible fibers; - MICRO print line; - Chemical sensitive paper; - Security screen on the back of check stating"ORIGINAL DOCUMENT" Voided Checks • When a check needs to be voided, "void" is written on the face of the check. The check is given to the Executive Director who must make note of the voided check number in the CheckNumberCH Spreadsheet and the Office Manager makes a scan copy of the check °0 and files in appropriate MCLA Audit folder on U:Drive. Office Manager makes a a photocopy of the check and files in appropriate accounts payable folder in file cabinet. • The Office Manager enters the voided check in the Ledger and Balance spreadsheet. U o If the voided check is to be replaced, the Office Manager re-enters the information �i from the supporting documentation on the Audit Detail Slip correcting any information that is necessary. ACH Payments U) • Only authorized vendors are paid via an ACH payment. This type of payment is limited to a� debt service payments, payments to payroll benefit providers, and employee payroll. 0 o Authorized ACH Vendors are those that provide a routing and account number. • Office Manager receives an invoice and creates an Audit Detail Slip and initiates the ACH payment in the First State Bank of the Florida Keys (FSB) Operating account using bank software. The Office Manager emails the Executive Director the Audit Detail Slip with 0- backup information, including but not limited to an invoice. The Executive Director U determines whether services received for amount being billed is appropriate and ready to 2 pay; then,if so, signs off on Audit Detail Slip and initials backup documentation. This can be manual or digital signature. The Executive Director logs into his/her FSB account and approves ACH request. This provides a 2-step approval process with separation of duties between Office Manager and Executive Director. • The Executive Director relies on the Audit Detail Slip to confirm the vendor name, bank account information, and amount to be paid. Based on bank software, the Office Manager cannot apply final approval to any ACH payments. Page 2 of 3 Packet Pg. 1917 G.6.b Wire Transfers • Only authorized vendors are paid via a wire transfer. This type of payment is limited to payments to title companies or attorneys for real estate closings and to another government agency for construction funding. o Authorized Wire Transfer Vendors are those that provide a routing and account number. c� • Office Manager receives an invoice or closing statement and creates an Audit Detail Slip and initiates the wire transfer in the FSB Special account using bank software. The Office Manager emails the Executive Director the Audit Detail Slip with backup information, including, but not limited to, an invoice. The Executive Director determines whether services received for amount being filled is appropriate and ready to pay; then if so signs � off on Audit Detail Slip and initials backup documentation. This can be manual or digital signature. The Executive Director logs into his/her FSB account and approves wire request. This provides a 2-step approval process with separation of duties between Office Manager and Executive Director. • The Executive Director relies on the Audit Detail Slip to confirm the vendor name, bank account information, and amount to be paid. Based on the bank software, the Office �o Manager cannot apply final approval to any wire payments. U) Monthly • MCLA Governing Board shall review expenses monthly as an agenda item. Cli c� Year-End • At Year-End (September 30), a processing period is created to record transactions in the L_ prior fiscal year. U) • All invoices are monitored for processing and recording transactions in the proper period. • Separate batches are prepared for prior fiscal year transactions. • Monitoring of prior year transactions continues through the completion of the audit and a 0 schedule is maintained of those transactions. • Prior to the end of the auditor's onsite visit, the prior year transaction schedule for unrecorded liabilities is reviewed by the Office Manager, MCLA Accountant, and the Auditor. • It is determined what transactions will require a j ournal entry for posting those expenditures to the proper period. 2 • Accounts Payable activity is reviewed periodically throughout the year to ensure that all accounts payable transactions have been recorded and cleared. A detailed reconciled schedule is completed and reviewed at year end identifying all accounts payable entries. • The outstanding prior fiscal year's invoices are reconciled and reviewed for appropriateness throughout the fiscal year and final review at year end. • A schedule is prepared at year end to reconcile all of the outstanding encumbrances to the general ledger. Page 3 of 3 Packet Pg. 1918 G.6.c James C. Matthews Finance Director RESOLUTION NO. 001-1987 A RESOLUTION SETTING UP A MONROE COUNTY LAND AUTHORITY TRUST ACCOUNT AND PROVIDING FOR SIGNATURES ON CHECKS DRAWN AGAINST SAID ACCOUNT. WHEREAS, the Monroe County Land Authority has a need to establish a trust account for its activities, and WHEREAS, such account, when structured, should be subject to checks drawn against it only by approved signatures, now, there- fore, BE IT RESOLVED BY THE MONROE COUNTY LAND AUTHORITY that: 1. A Land Authority Trust Account be established by the Monroe County Board of County Commissioners and such account be placed in the Marine Bank of Monroe County and shall be a Super Now Interest Bearing Account in said institution. 2. The authorized signatures for the Monroe County Land Authority Trust Account shall be the joint signatures of the C Clerk of the Circuit Court of Monroe County and the Chairman of the Monroe County Land Authority. C 3. The effective date of the establishment of this account shall be June 9, 1987, and thus this resolution is passed nunc pro tunc. W PASSED AND ADOPTED by the Monroe County Land Authority, at a regular meeting of said Authority, held on the 7th day of July, A.D. 1987. MONROE COUNTY LAND AUTHORITY rman At t e s t:DANNY L KOLHAGE, Clerk Clerk APPROVED AS rO FORM AND LEGAL SUFFICIENCY. BY .. =� C� Attorneys Office Packet Pg.1919 G.6.d Monroe County Land Authority RESOLUTION NO. 002-1987 A RESOLUTION AMENDING SECTION 2 OF RESOLUTION NO. 1-1987 PERTAINING TO SIGNATURES ON CHECKS FOR THE MONROE COUNTY LAND AUTHORITY TRUST ACCOUNT. WHEREAS, the Monroe County Land Authority established a trust account for its activities, and WHEREAS, such account is subject to checks drawn against it only by approved signatures, and WHEREAS, there is a need to amend Section 2 of Resolution No. 1-1987 to include the signature of the Executive Director of the Monroe County Land Authority as an authorized signature on c� checks for the Monroe County Land Authority Trust Account, now, therefore, BE IT RESOLVED BY THE MONROE COUNTY LAND AUTHORITY that Section 2 of Resolution No. 1-1987 is hereby amended to read as <n follows: � c 2. The authorized signatures for the Monroe County Land Authority Trust Account shall be the joint signatures of the Clerk of the Circuit Court of Monroe County, the Chairman of the Monroe County Land Authority and the Executive Director of the Monroe a: County Land Authority. PASSED AND ADOPTED by the Monroe County Land Authority, at a regular meeting of said Authority, held on the 15th day of September, A.D. 1987. MONROE COUNTY LAND AUTH/OORITY B airman (Seal) Attest: e'4'X"44e0' Clerk APPROVED AS TO FORM AND LEGAL SUFFICIEfvCY. e BY Attorney's Office Packet Pg.1920 G.6.e MONROE COUNTY LAND AUTHORITY RESOLUTION NO.04-1989 A RESOLUTION APPROVING THE PLACEMENT OF FUNDS INTO THE LOCAL GOVERNMENTS SURPLUS FUNDS TRUST FUND INVESTMENT POOL WHEREAS, THE Monroe County Land Authority from time to time has funds on hand in excess of current needs, and WHEREAS, it is in the best interest of Monroe County and its inhabitants that funds be invested to return the highest yield consistent with proper safeguards, NOW THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. That the Chairman, Eugene R. Lytton, Sr. and Executive Director, Charles G. Pattison, or his/her designee, be, and he/she is hereby authorized to transmit such funds to the State Board of Administration to be invested according to applicable laws of the State of Florida consistent with the needs of the .c 0 Monroe County Land Authority. Such authorization includes the a� authority to withdraw funds from State Board of Administration by giving timely notice and appropriate confirmation. <n 2. That this authorization shall be continuing in nature until revoked by the Monroe County Land Authority. THIS RESOLUTION INTRODUCED AND ADOPTED by the Monroe County Land Authority at its regular meeting on the 23rd day of May, �2 1989. a� E f ` t Monroe County Land Authority . H I By: � .� �. /� (Seal) � � Eugea R. on, Chairman !i ATTESTS f( �(n• - .,i� Charles Pattison, ^"� --xecutive Director Approyed-'for Leg Su ficiency By: - -/ Cunningham, Albritton, Lenzi, Warner, Bragg & Miller, P.A. , Legal Counsel t h cz, � Iy Packet Pg.1921 G.6.f RESOLUTION NO. 04 - 1997 A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING HONESTY BOND COVERAGE AND IMPLEMENTING INTERNAL CONTROL MEASURES. WHEREAS, the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") wishes to participate in the $500,000 honesty bond covering employees of the Board of County Commissioners; and WHEREAS, the Land Authority wishes to adopt certain internal control measures to reduce the agency's exposure to a level commensurate with this coverage; now,therefore, U BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, THAT: Section A Land Authority Board members and the Executive Director are hereby authorized to execute the documents necessary to implement the following internal control measures: 1. Measures requiring the Chairman or Executive Director to authorize the transfer of funds from the State Investment Pool to Local Account A; 2. Measures requiring the signatures of any two County Commissioners for checks drawn on Local Account A; and 3. Measures requiring the signatures of the Chairman and Executive Director for checks drawn 0. on Local Account B (the operating account). T- I Section B Land Authority Board members and the Executive Director are hereby authorized to execute the documents necessary for Land Authority employees to participate in the $500,000 honest�b�d�ivering employees of the Board of County Commissioners. PAS w ,DOPTED by the Monroe County Comprehensive Plan Land Authority at a reg�[ ",61 this 17 t h day of September ,A.D., 1997. ATTEST:, MONROE COUNTY COMPREHENSIVE (Seal) PLAN L AUTHORITY Mark J. RosW, Executive Director Jac airman f Approv for Le al fi iency Larry R. Erskine Packet Pg. 1922 G.6.g LAND AUTHORITY MONROE COUNTY RESOLUTION No. 05-1989 A RESOLUTION AMENDING RESOLUTION 04-1989 APPROVING THE PLACEMENT OF FUNDS INTO THE LOCAL GOVERNFENT8 SURPLUS TRUST FUND INVESTMENT POOL AND CLARIFYING THOSE PERSON AUTHOiRIZED TO TRANSMIT SUCH FUNDS. WHEREAS, The Monroe County Land Authority from time to time has funds on hand in excess of current needs, and WHEREAS, it is in the best interest of Monroe County and its residents that funds be invested to return the highest yield consistent with proper safeguards, now, therefore, BE IT RESOLVED AS FOLLOWBi 1. That the Chairman and Executive Director or their designess are hereby authorized to transmit such funds to the State Board of Administration to be invested according to applicapable laws of the State Of Florida, consistent with the needs of the Monroe County Land Authority. Such authorization includes the authority to withdraw funds from c� the State Board of Administration by giving timely notice and appropriate confirmation. .c 2. That this authorization shall be continuing in nature unless revoked by the Monroe County Land Authority. +� a� PASSED AND ADOPTED at a regular memeting of the Monroe County Land Authority held on the 30th day of August, A.D. 1989. Monrom County Land Authority By: ♦f Eugene R. y tan, Chairman 4ATTET Ri �� Paul R. Wick Executive Director Approved Lego 8u ciency Byl Cunningham, Albritton, Lenzi, Warner, Bragg, k Miller, P.A. Packet Pg.1923 G.6.h Monroe County Land Authority RESOLUTION NO. 06-1988 A RESOLUTION AMENDING SECTION 2 OF RESOLUTION NO. 1-1987 PERTAINING TO SIGNATURES ON CHECKS FOR THE MONROE COUNTY LAND AUTHORITY TRUST ACCOUNT WHEREAS, the Monroe County Land Authority established a trust account for its activities; and WHEREAS, such account is subject to checks drawn against it only by approved signatures; and WHEREAS, there is a need to amend Section 2 of Resolution No. 1-1987, which was modified by Resolution No.02-1987 when the Executive Director's signature was added, by deleting the signature of the Clerk of the Circuit Court of Monroe County; now 0 therefore BE IT RESOLVED BY THE MONROE COUNTY LAND AUTHORITY that 27 Section 2 of Resolution No. 1-1987 is hereby amended to read as <n follows: 112. The authorized signatures for the Monroe County Land Authority Trust Account shall be the joint signatures of the Chairman of the Monroe County Land Authority and the Executive Director of the Monroe County Land Authority. The Executive Director is authorized to use a facsimile stamp bearing the E Chairman's signature for this purpose." PASSED AND ADOPTED by the Monroe County Land Authority at a meeting of said Authority, held on the 5th day of April, A.D. , 1987. c Monroe, County—Land Author,�[ty C/L =� by: ATTEST: r� Eugene R. ytton, Sr. Charles Pattison, Chairman Executive Director APPRO D FOR LEGA SUFFICIENCY by: C it�b 1 ison DeFoor, Legal Counsel •" - Packet Pg.1924