2007-449-Minutes for Meeting March 19,2007 Recorded 4/17/2007DESCHUTES COUNTY OFFICIAL RECORDS CJ 2001 449 NANCY BLANKENSHIP, COUNTY CLERK ' COMMISSIONERS' JOURNAL „1„1„ o„ 04/17/2007 04:01:14 PM 2007-440 Do not remove this page from original document. Deschutes County Clerk Certificate Page If this instrument is being re-recorded, please complete the following statement, in accordance with ORS 205.244: Re-recorded to correct [give reason] previously recorded in Book or as Fee Number and Page Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, MARCH 19, 2007 Present were Commissioners Dennis R. Luke, Michael M. Daly and Tammy Baney. Also present were Dave Kanner, County Administrator; Susan Ross and David Givans, Commissioners' Office; and, for a portion of the meeting, Marty Wynne, Finance; and Barbara Rich and Tom Anderson, Community Development. No representatives of the media or other citizens were present. The meeting began at 1: 30 p. m. 1. Discussion of Policies: • Cash Handling Practices. David Givans gave a brief overview of the document, which has over time received feedback from various departments. LUKE: Move approval of Policy F-11. BANEY: Second. VOTE: BANEY: Yes. LUKE: Yes. DALY: Chair votes yes. County-Issued Credit Cards. Marty Wynne explained the need for a credit card for emergency situations relating to the Sheriff's Office; no other departments are eligible. This could be revised again in the future, after Larry Blanton becomes the new Sheriff. LUKE: Move approval of Policy F-3, rescinding Policy No. 2002-093. BANEY: Second. VOTE: BANEY: Yes. LUKE: Yes. DALY: Chair votes yes. Minutes of Administrative Work Session Monday, March 19, 2007 Page 1 of 4 Page Capital Outlay Expenditures. Mr. Wynne said there are a couple of changes, which relates primarily to the Fiscal Year 2007-08 budget. The threshold of $1,500 was in place for the current year; this raises the threshold to $5,000. LUKE: Move approval of Policy F-6, allowing signature of the County Administrator's designee, effective July 1, 2007; and rescinding Policy No. 2000-085. BANEY: Second. VOTE: BANEY: Yes. LUKE: Yes. DALY: Chair votes yes. Investment Policy Guidelines. LUKE: Move approval of Policy No. F-10, and rescinding Policy No. 2006-126. BANEY: Second. VOTE: BANEY: Yes. LUKE: Yes. DALY: Chair votes yes. 2. Discussion of Employee Firearms Policy. Dave Kanner said that "DPSST-certified" personnel would substitute language that currently says "Sheriff's Office" personnel. Also added was a line that provides for disciplinary action for violations of policy. Commissioner Luke stated that he prefers that Mr. Kanner obtain comments and feedback from the Sheriff's Office and others prior to the Board approving the policy. 3. Discussion of Community Justice Advisory Board. Mr. Kanner said that there has been talk about creating a Board to address alternatives to incarceration. All of the terms have expired, and the group never met. He would like the by-laws updated and a new mission statement established so that the group can work on alternatives. A professor from COCC is interested in serving on the committee. Commissioner Baney will work with Mr. Kanner on this project. Minutes of Administrative Work Session Monday, March 19, 2007 Page 2 of 4 Page 4. Discussion of Naming of Juvenile Community Justice Building in Honor of Dennis Maloney. Susan Ross stated that she spoke with the Maloney family and a date of Tuesday, April 17, at 5:00 p.m. was set up for the formal renaming of the Juvenile Community Justice Building. Commissioner Luke suggested that the volunteer desk area receive a plaque in honor of Loismae Benson as well. 5. Economic Development Grant Requests. Sunriver Music Festival: $500 from Commissioner Luke; $1,000 from Commissioner Baney. La Pine Rodeo: $500 from Commissioner Luke; $1,000 from Commissioner Baney; $1,000 from Commissioner Daly. 6. Update of Commissioners' Schedules; Meeting Details. Commissioner Daly said that Commissioner Baney has volunteered to run the hearing in La Pine hearing on Tuesday, March 20. Barbara Rich and Tom Anderson joined the meeting, and the process to be followed to conduct the hearing was briefly discussed. 7. Other Items. No other items were addressed. Being no further discussion, the meeting adjourned at 3: 30 p. m. Minutes of Administrative Work Session Monday, March 19, 2007 Page 3 of 4 Page DATED this 19th Day of March 2007 for the Deschutes County Board of Commissioners. ATTEST: 1.7 6 Recording Secretary 01 4MIV,~'lezw,z, 441 Michael M. Daly, C it Dennis R. Luke, Vice hair Tammy Ifla"ney, Com ssioner Minutes of Administrative Work Session Monday, March 19, 2007 Page 4 of 4 Page 01t~c G Og~t Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 P.M., MONDAY, MARCH 19, 2007 1. Discussion of Policies: • Cash Handling Practices • County-Issued Credit Cards • Capital Outlay Expenditures • Investment Policy Guidelines 2. Discussion of Employee Firearms Policy 3. Discussion of Community Justice Advisory Board 4. Discussion of Naming of Juvenile Community Justice Building in Honor of Dennis Maloney 5. Economic Development Grant Requests - Susan Ross 6. Update of Commissioners' Schedules; Meeting Details 7. Other Items PLEASE NOTE: At any time during this meeting, an executive session could be called to address issues relating to: ORS 192.660(2) (e), real property negotiations; ORS 192.660(2) (h), pending or threatened litigation; or ORS 192.660(2) (b), personnel issues Meeting dates, times and discussion items are subject to change. All meetings are conducted in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388-6572. Deschutes County meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7-1-1 to access the state transfer relay service for TTY. Please call (541) 388-6571 regarding alternative formats or for further information. A ,re ^7 4414 { Deschutes County Administrative Policy No F-10 Effective Date: CASH HANDLING PRACTICES POLICY STATEMENT OF POLICY It is the policy of Deschutes County to ensure that County directors and managers design, implement and monitor effective cash handling controls. APPLICABILITY This policy applies to all County departments and County service districts under the governance of the Board of County Commissioners. POLICY AND PROCEDURE This policy sets out overall guidance on cash handling practices. Cash includes the following: ■ Currency (paper money and coin) ■ Money orders ■ Checks ■ Travelers checks ■ Credit card slips ■ Bank drafts, etc. 1) County directors and managers shall design, implement and monitor effective cash handling controls. Cash handling procedures shall be distributed to all appropriate staff. 2) Management will periodically review internal control policies and procedures pertaining to cash to ensure they are working as intended. It is critical that managers promote an effective internal control environment. Effective internal controls minimize the potential for errors or irregularities to occur, and if they do occur, will detect such errors or irregularities in a timely manner during the normal course of business. 3) To assist directors and managers establish and monitor their cash handling systems, the Internal Audit Program shall develop and circulate a Cash Handling Guide (Guide), which is attached hereto and incorporated herein as Exhibit A. The Guide highlights the internal controls that are required by County departments. Management should utilize the Guide and checklist as a reference. Some items may not apply to every cash handling system, depending on the quantity of the cash transactions and the functions of the department. Implementation of some of these controls may not be possible due to limited resources. In these cases, compensating controls shall be developed. 4) Exemptions from implementing any internal control policy or procedure must be granted in writing by the County Administrator or his/her designee. 5) Required procedures: a) Cash shall be turned over to the Finance Department or deposited in a designated bank depository within 24 hours of receipt in accordance with Finance policy P-1999-075. b) Receipts provided to parties remitting payment must be pre-numbered and include the County and departments name in accordance with Finance policy P-1999-075. Unused receipts shall be kept in a secured area. c) Any and all bank accounts used to transact County business shall be approved in accordance with policy F-7. Policy # F-10, Cash Handling Practices Policy Page 1 d) Any cash overage or shortage identified during reconciliation should be reported to Finance in accordance with policy F-9. Approved by the Deschutes County Board of Commissioners on Dave Kanner County Administrator 2007. Noucy 9 F-10, Cash Handling Practices Policy Page 2 A Deschutes County Internal Audit Program David Givans, CPA, CIA -County Internal Auditor 1300 NW Wall St., Suite 200, Bend, OR 97701 (541) 330-4674 - Fax (541) 385-3202 davidg@co.deschutes.or.us February 2007 EXHIBIT A - GUIDE FOR COUNTYWIDE CASH HANDLING PRACTICES Many County departments receive "Cash" payments directly. County staff handle more than one hundred million dollars of receipts annually. Following are internal control procedures, implementation practices and reasons for implementation. Specific department procedures depend on the frequency, amount and type of "cash" payments. Managers are responsible for designing, implementing and monitoring effective "cash" handling controls. In addition to designing and implementing effective cash handling systems, managers must periodically review their systems to ensure they are still working as intended. It is critical that managers promote an effective internal control environment. Effective internal controls minimize the potential for errors or irregularities to occur, and if they do occur, will detect such errors or irregularities in a timely manner during the normal course of business. What is "Cash"? Cash includes the following: ■ Currency (paper money and coin) ■ Money orders ■ Checks ■ Travelers checks ■ Credit card slips ■ Bank drafts, etc... To assist managers in establishing and monitoring the cash handling systems, the Internal Audit Program recommends that managers complete the attached checklist. Some items may not apply to every cash handling system depending on the amount of the cash transactions and the functions of the Department. Limited resources may also impact implementation of some of these controls. In these cases, compensating controls shall be developed to monitor the system. Please call if you would like input or recommendations to improve your specific control environment NOTE: HIGHLIGHTED PROCEDURES ARE REQUIRED UNDER COUNTY POLICY EXHIBIT A to Policy # F-10, Guide for Countywide Cash Handling Practices Page 3 Checklist for Cash Receipts in County Departments A. Segregation of Duties Represents the separation of incompatible duties and/or responsibilities and assures that one person is not able to conceal errors and/or irregularities. o Are key duties of authorizing, processing, recording and reviewing transactions separated among individual employees? ❑ ❑ ■ No one person should handle a cash transaction from beginning to end. Duties should be sufficiently segregated so any one employee does not have custody, accounting and supervisory authority over the transaction. • Individuals receiving cash do not prepare entries for non-cash accounting records, such as accounts receivable, the general ledger, or the general journal ■ In small departments, it is especially important to separate the handling of cash from the reconciliation of revenues. o Are bank or finance receipts compared to the deposit record by someone other than the person preparing the deposit? ❑ ❑ o Can management (or anyone else) override controls over the receipt of cash? B. Change Funds Represents cash held to provide change for customer r Are change funds approved and for the amount approved? Do the change funds on hand agree with what was authorized? If cash is held overnight or accessible by others, is it re-counted by the custodian at the beginning and end of their shift? C. Physical safeguards Physical controls in place to reduce risk that cash can be stolen. o Is there is a designated custodian for cash and is the transfer of cash to other employees documented? o Does more than one person have unrestricted access to cash? ■ There should be sufficient safeguards to prevent access to cash by anyone other than person who collected it. ■ There should be adequate accountability for movement of funds between o Are appropriate safeguards employed to safeguard cash in County facilities depending on-the amount and duration the cash are held? ■ Access should be limited. ■ Possibilities include locking file cabinets, locking drawers, safes, etc... ■ Consideration for surveillance - electronic or guards o Logs are used to identify access and transactions with cash held in a safe. When possible, those activities are witnessed. o Do you arrange to have armored transport if large amounts of cash are moved? 11 ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ I ❑ I ❑ o Does a person independent of the cash receipt process regularly count the cash? u 0 Has the department addressed potential robbery risk? T-o- D. I Incoming Mail customer mail that has the potential to contain cash. EXHIBIT A to Policy # F-10, Guide for Countywide Cash Handling Practices Page 4 o Is mail opened and distributed by a person other than the cashier or accounting Yes No N/A Personnel? ❑ ❑ o When ca h i ❑ s rece pts are included in the mail, are they witnessed? o Does a person inde end t f El ❑ ❑ p en o the accounting receive and log/account for the cash? o If so, is such list used as a check against the deposit or receipt record? ❑ ❑ ❑ o Does the person opening the mail restrictively endorse all check remittances FOR El El El DEPOSIT ONLY? ❑ ❑ ❑ E. Receipting/collection controls ;Represents controls over the amount of cash received over the course of the day. Cash lost or m isappropriated prior to being receipted is more difficult to trace than cash that has been receipted. o Are 'receipts created/provided in all cases? o Areal[ receipts controlled by cash register, pre-numbered receipt slip or pre- El El E3 numbered invoice or other equivalent means? ❑ ❑ ❑ ■ All cash received should be evidenced throu h a co t ll d g n ro e receipting process. (i.e. controlled by cash register, pre-numbered receipt slip or invoice or other equivalent means). o Are 'receipt of payment forms pre-numbered and imprinted with the department name? ❑ ❑ ❑ ■ This is County policy. The forms should usually be in triplicate (one provided to customer, one to accompany cash, one with receipt book for control . o Are all monetary instruments received for payment immediately endorsed with an appropriate county deposit stamp? ❑ ❑ ❑ ■ Checks should be made payable to "Deschutes County- department". ■ A, 11 negotiable instruments received should be restrictively endorsed for the a propriate Deschutes Count bank account. o Is receipt activity reviewed periodically for unusual fluctuations? o Are receipts recorded promptly and deposited intact within 24 hours as ❑ ❑ ❑ required b Count policy? o Are all original voided or canceled receipts retained and accounted for in the ❑ ❑ ❑ records? Did a separate person authorize the void? o Can cash be given back on negotiable instruments? ❑ ❑ ❑ 0.e. instrument written for more than service ❑ ❑ ❑ o Do staff handling cash receipts use any of the receipts to pay for goods or services? o Are cashiers allowed to cash their own personal checks or IOU's? ❑ ❑ ❑ o Does someone monitor and control the sequence of receipt numbers being used to ❑ ❑ ❑ collect cash? o Are in'-use and unused manual receipt books controlled and safeguarded? I ❑ ❑ ❑ EXHIBIT A to Policy # F-10, Guide for Countywide Cash Handling Practices Page 5 F. Accounts receivable (if applicable) Represents credit established for customers to purchase services on account o Are computerized accounting systems designed to limit authority and require supervisory approvals for adjustments, credits and write-offs? If not, is the activity periodically ❑ ❑ ❑ reviewed? o Are there appropriate reports on accounts receivables and billing activity? ■ Billing systems should have adequate reporting systems to allow for follow-up on ❑ ❑ ❑ outstanding billings. o Are postings to accounts receivable system compared to a separate receipting log? o Are changes to customer accounts overseen - additions, changes, deletions? G. Deposit /Reconciliation Establishing how much cash should be present, counting how much is present and securing cash with County Finance or the County's bank (BOTC) o Are all potential cash receipt points identified and controlled? o Is the make-up of the deposit (amounts of coin, cash denomination or monetary instruments) clearly documented? ❑ ❑ ❑ o Does the cashier prepare duplicate deposit tickets so that the bank can validate one copy, and a person other than the cashier can verify the returned bank receipt against ❑ ❑ ❑ the duplicate deposit ticket? o Are all revenue, petty cash, and change cash overages and shortages reported to management (and FINANCE)? (County policy) ❑ ❑ ❑ o Are all cash overages/shortages identified by staff person and, if material, investigated? ■ If not material, management should be vigilant for patterns or trends with staff. ❑ ❑ ❑ o Is all cash collected deposited intact? ■ There should be no retaining, adding or substituting of cash. ❑ ❑ ❑ o Are reports of daily receipts compared on a test basis to bank statements to verify timeliness of deposits? (FINANCE) ❑ ❑ ❑ o Is cash accounted for and balanced to receipt records (register tapes, receipt books) on a daily basis? ❑ ❑ ❑ ■ These may be manual or computerized processes. In cases where there are department accounting systems, those systems should be reconciled to activity reported to the Finance department through deposits. o Does an employee outside of the collection function periodically conduct a surprise cash count? ❑ ❑ ❑ o Are tamper-proof deposit bags used for the deposit? Accountinq not determined/Suspense accounts: o Does the department delay deposits if the accounting is not determined? ❑ ❑ ❑ ■ At times, the accounting may not be known when the cash is collected. The County encourages the department to deposit these amounts daily. For departments where this is a routine occurrence, suspense accounts may be created to hold the accounting of the deposit until a proper accounting can be made. Departments shall make efforts to reconcile and clear these entries in a timely fashion. Coordination with other departments o Has the department considered sharing deposit duties with other departments to save ❑ ❑ ❑ time? ■ At those times, they should secure their cash separately in a tamperproof bank bag, noting the serial number and amounts for later reconciliation to the bank receipts. H. Petty cash Represents money available for minor purchases. Cash is replenished periodically based on appropriate receipts and accounting. EXHIBIT A to Policy # F-10, Guide for Countywide Cash Handling Practices Page 6 o Is the amount of petty cash authorized and maintained at a specific level? o Are payments of cash from the petty cash fund supported by receipts? 1111 o Are persons other than custodians of cash funds prevented from having access to the funds? ❑ ❑ ❑ o Is replenishment made routinely though a reimbursement process? o At any point in time, does the cash on hand and the submitted receipts equal the authorized amount? ❑ ❑ ❑ o Is there a continuing need to utilize a petty cash fund? 1. General Control Procedures Control procedures not covered under the previous categories. o Have you established written accounting procedures and practices governing the collection of cash? ❑ ❑ ❑ Procedures should document the flow of receipts, receipting documents, controls over receipts, and the recording of transactions. Instructions should be comprehensive, generally understood and applied. Appropriate staff should acknowledge receipt and understanding of the procedures. o Cash handlers should make themselves aware of US currency security features. Security features include: ❑ ❑ ❑ ■ watermark ■ Color shifting inks ■ Fine-line and micro printing ■ Off center portraits ■ Security thread If you collect a significant amount of cash, Finance has highlighter pens that will identify counterfeit currency. o Do cash custodians regularly take vacations? ❑ ❑ ❑ EXHIBIT A to Policy # F-10, Guide for Countywide Cash Handling Practices Page 7 INTERNAL AUDIT PROPOSED MONITORING PROCESS The Internal Audit Program intends to continue performing audits pertaining to cash handling throughout the County as follows: 1. Identify departments and specific employees with responsibilities to handle "Cash". Identify the approximate amount of "Cash" being handled. 2. Obtain Department's written procedures for handling cash. 3. Identify the flow of cash through the department. 4. Perform cash observations and closing cash counts. Some of these observations or counts would be done on a surprise basis and coordinated in advance with the Department head. 5. Identify how the department is receipting and accounting for "Cash" collections. 6. Compare deposit records for a selected period to Finance records. i. Identify if deposits were made in a timely manner (24 hours). 7. Review process for reconciling receipts to internal system records. 8. If a collection system exists - review process for billing, adjustment, posting of payments, and monitoring. 9. Identify that "Cash" is maintained in a secure place at all times. Current County policies: P-1999-075 Invoicing, recording, collection and turnovers. Receipts must be reconciled to internal revenue reports. No generic receipts. Receipts must be turned over to Finance or Bank within 24 hours. F-7 Opening bank accounts for Deschutes County All bank accounts will be authorized by the Board of County Commissioners. F-9 Cash over/short reporting policy Cash overage/shortage amounts will be reported to Finance. Template provided. F-8 Petty Cash Procedures to be used to maintain a petty cash account. (Note: Similar process is used for imprest checking accounts.) EXHIBIT A to Policy # F-10, Guide for Countywide Cash Handling Practices Page 8 Deschutes County Administrative Finance Policy No F-3 Effective Date: COUNTY ISSUED CREDIT CARDS-SHERIFF'S OFFICE STATEMENT OF POLICY It is the policy of Deschutes County not to provide County-issued credit cards, except for the Sheriff's Office, and set specific limits on the use of such cards. APPLICABILITY This policy applies to the use of County-issued credit cards. POLICY AND PROCEDURE The County will provide credit cards for use limited to "emergency situations" encountered by the Sheriffs Office. The following guidelines and limitations will apply: 1) Use of a County issued credit card is limited to "emergency situations," generally described as those that are unforeseen and immediate, encountered by the Sheriffs Office. Expenditures in such situations normally include expenditures such as airfare, accommodations and other reimbursable travel, meal and miscellaneous expense as described in the County's TRAVEL & MISCELLANEOUS EXPENSE REIMBURSEMENTS POLICY F- 1, attached as Exhibit A. 2) In no event will a. County issued credit card be used for normal or routine training or travel expenditures. 3) Source documents related to any credit card charges will be retained in the Sheriffs Office pending receipt of the monthly statement. Source documents include both the vendor's detailed invoice of the charges and the "customer copy" with the signature of the user authorizing the charges. In the event the detailed invoice is not obtained by the employee using the credit card, such charge may be considered personal and therefore not a reimbursable business expense. In this case the employee will be responsible for this expenditure. 4) The Sheriffs Office will retain all source documents for use in reconciling the monthly statement. Upon reconciliation of the monthly statement, a voucher will be prepared and sent with the monthly statement and source documents supporting the charges appearing on the monthly statement to the Finance Department for processing. 5) Due to the relatively short time between the receipt of the statement and the payment due date, priority will be given to the reconciliation of the statement and the preparation of the voucher. Any delay could lead to the Sheriffs Office being assessed late charges by the credit card issuer. 6) Credit cards will be issued in the name of certain Sheriffs Office employees. Such employees will be personally liable for any charges to the card not in compliance with this policy or the County's TRAVEL & MISCELLANEOUS EXPENSE REIMBURSEMENTS POLICY F-1. 7) Each employee of the Sheriff's Office who is issued a credit card under this policy will sign an acknowledgment that he or she has read this policy and will comply with the terms of this policy. Deschutes County Policy No. P-2002-093, County Issued Credit Cards-Sheriff's Office, is hereby rescinded. Policy #F-3, County Issued Credit Cards-Sheriff s Office (Revised 3/7107) Page 1 of 1 Deschutes County Administrative Finance Policy No. F-6 Effective Date: CAPITAL OUTLAY EXPENDITURES STATEMENT OF POLICY It is the policy of Deschutes County to require specific control for expenditures categorized as "Capital Outlay" and to maintain a separate database of such expenditures. APPLICABILITY This policy applies to all expenditures accounted for in the County's budgetary funds. POLICY AND PROCEDURE Capital Outlay expenditures are those expenditures for property with an expected life of one or more years and an acquisition cost of $5,000 or more. Prior to the purchase of any item meeting the description of Capital Outlay, a "Capital Outlay Expenditure Authorization Form" (COEAF) must be completed by the department and reviewed by the Finance Department. This process will provide a means to document that the general purchasing and budgeting policies are adhered to and will also allow a formal process for advance approval of capital purchases. Additionally, this policy describes the procedures for maintaining the County's database of capital outlay. COEAF Form: 1. If item to be purchased 1) is budgeted, 2) is as described in the budget, 3) costs less than or equal to the amount budgeted, and 4) has not yet been purchased, then Sections 1 through 6 of the COEAF should be completed, signed by the Department Head and forwarded to Finance. Finance will review the form, sign the form and return to Department. Department is then authorized to proceed with acquisition of capital item. II. If any of the criteria above are not met, then Sections A through C of the COEAF must also be completed. The completed and signed form should first be forwarded to Finance. Finance will review the form, sign the form, and forward it to the County Administrator for approval. If the amount requiring approval is $25,000 or less, the County Administrator will approve and the form will be returned to the Department. If the amount requiring approval is greater than $25,000, the additional approval of one of the County Commissioners will also be required. III. If the expenditure is for computer equipment, an "Information Technology Purchase Agreement" (ITPA) form must also be completed and attached to the COEAF. The ITPA form will be provided by the Information Technology Department upon request. IV. The completed and signed COEAF (including the ITPA, if applicable) must be attached to the voucher requesting payment of the invoice for expenditure of capital outlay. Vouchers for expenditure of capital outlay submitted to the Finance Department without a completed and signed COEAF will be returned to the Department. EMERGENCY PROCEDURES: If an emergency purchase is necessary and time is critical, obtaining prior written approvals may not be possible. A COEAF, however, shall be completed the subsequent working day and additionally include a complete explanation for the emergency purchase. Policy #F-6, Capital Outlay Expenditures (Revised 3/7/07) Page I of 2 AUDIT: At least once a year, the Finance Department will distribute copies of a Capital Asset Report to each County department. Each Department Head shall review this list and shall notify the Finance Department, as soon as possible, of any changes required to the data on the report. Deschutes County Policy No. P-2000-085, Capital Outlay Expenditures Policy & Procedures, is hereby rescinded. Policy #F-6, Capital Outlay Expenditures (Revised 3/7/07) Page 2 of 2 r DESCHUTES COUNTY Capital Outlay Expenditure Authorization Form 1. Description of Expenditure: 2. Department 3. Budgeted Amount Less: Prior Expenditures Remaining Budget 4. Charge to: Fund Dept /Div BAS Eletn/Obj 5. Bids Received: Written Oral Bid Detail: Name of Firm *Reason Bids Not Requested: Expenditure Amount: Project None Amount Comments 6. Initial Purchase Replacement _ Replacement Information: Replaced Asset Description Justification for Replacement Replaced Asset Number Year of Purchase Original Cost Make Model # Serial # ADDITIONAL INFORMATION IF REQUIRED CRITERIA NOT MET (See Capital Outlay Policy and Procedures, COEAF Form Section) A. Item not budgeted or item exceeds budgeted amount (complete 1 or 2). 1. Source of appropriation if not budgeted or in excess of budget (no appropriation transfer required) : 2. Appropriation transfer to Capital Outlay is necessary. Request for an appropriation transfer must be attached to COEAF B. Item not as described in budget REASON: C. EMERGENCY PURCHASE - Item purchased prior to COEAF approval REASON: Department Head Date Finance Department Review Date County Administrator Approval Date County Commissioner Approval Date (If over $25,000) Submit form to the Finance Department for review and approval. OZ J LLJ OM Z W LLJ V W C7 W O - U) cQ '~1 li Oa Z L U 7 H ~O m L U 3 O d 3 0 c 3 0 m E m a y N N O L m 'a C m C 'a E ~ ~ U m C a. m y v ~ ~ T m E C y rL-. N x m O 0 O L- - M L-O C L O U C m O C E •O- a 6 N N T C C m o o v N w m y L 3 O U E 7 ~p a m O w t O O °c aEi L U N N C H C O E N y N w `O O L_ 5 7 O m rn E (D t N ` L ~ F- a • W Q • 0 V ■ O • E C L U) • • WW c N I.L Q d.i a . W 0 ~ N as • E r O 0 O f+ C O E Q O N' d 3 V C d C. x 0 3 C. m. U I- .0 d 'a m m C O C. Q Q V, H c w E C Deschutes County Administrative Finance Policy No. F-10 Effective Date: INVESTMENT POLICY GUIDELINES STATEMENT OF POLICY All Deschutes County investments must be made in accordance with State Law and in accordance with the Deschutes County Investment Policy. Investment policies must be approved by the State of Oregon Short-Term Fund Board. This policy was designed after the model investment policy recommended by the Oregon Short-Term Fund Board and incorporates State Law requirements and restrictions, and was approved by the Oregon Short-Term Fund Board. APPLICABILITY This policy applies to all Deschutes County investments. POLICY AND PROCEDURE The Deschutes County Treasurer is the portfolio manager. It is the policy of Deschutes County to invest public funds in a manner which will provide the maximum security while providing liquidity to meet the daily cash flow demands and receive the highest investment return while conforming to all State Statutes governing the investment of public funds and this Investment Policy. SCOPE: This investment policy applies to activities of Deschutes County with regard to investing the financial assets of all funds for which investment authorization has been given, including but not limited to the following funds: A. General Fund B. Special Revenue Funds C. Capital Project Funds D. Enterprise Funds E. Debt Service Funds F. Internal Service funds G. Unsegregated Tax Account H. County Service District Funds I. Trust and Agency Funds Funds held and invested by trustee or fiscal agents are excluded from these rules; however such funds are subject to the regulations established by the State of Oregon. Funds of Deschutes County will be invested in compliance with ORS 294 and other applicable statutes. Investments will be in accordance with this policy and any written administrative procedures. Investment of any tax-exempt borrowing proceeds and any debt service funds will comply with the "arbitrage" restrictions of Section 148 of the Internal Revenue Code of 1986. Cash will be co-mingled for investment opportunities. Other than bond proceeds or other unusual situations, the total of all funds ranges from $80,000,000 to $150,000,000 over the fiscal year. Funds of other agencies, jurisdictions, district or entities for which the County Treasurer serves as custodian will not be invested without written authorization from their governing body, and the Deschutes Board of County Commissioners. Policy #F-10, Investment Policy Guidelines (Revised 3/7/07) Page I of 6 OBJECTIVES: Deschutes County's Investment Objectives are: Preservation of capital and the protection of investment principal. Conformance with Federal, State and other legal requirements. Maintenance of sufficient liquidity to meet operating requirements. Diversification to avoid incurring unreasonable risks regarding specific security type or individual financial institutions. Attainment of a market rate of return throughout budgetary and economic cycles. DELEGATION OF AUTHORITY: The County Treasurer is designated as the Investment Officer for Deschutes County and is responsible for investment decisions and activities. The investment officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The administration of the cash management program is handled by the County Treasurer who is responsible to manage the day-to-day operations of the County's investment portfolio, place purchase orders and sell orders with dealers and financial institutions and prepare reports as required. INVESTMENT LIMITATIONS: Specific investment types shall not exceed the percentage of the total investment portfolio indicated below. All securities are also included on the list of "U.S. Government Agency Securities for Local Government Investments under ORS 294.035 and 294.040." This list is maintained by the Office of the Oregon State Treasurer. Securities issued by a single financial institution (Banker's Acceptance and Certificates of Deposit) will be limited to 30% of the total portfolio. SUITABLE AND AUTHORIZED INVESTMENTS The following investments will be permitted by this policy, ORS 294.035 and 294.810: • U.S. Treasury Obligation (bills, notes and bonds) • U.S. Government Agency Securities and Instruments of Government Sponsored Enterprises • Banker's Acceptances (BA's) from qualified institutions • State of Oregon Investment Pool • Certificates of Deposits (CD's) (Subject to ORS 295 collateralization) • Certificate of Deposit Account Registry Services (CDARS) Policy #F-10, Investment Policy Guidelines (Revised 3/7/07) Page 2 of 6 • Repurchase Agreements • State and Local Government Securities • Corporate Indebtedness PORTFOLIO DIVERSIFICATION Diversification will be sought within the following guidelines with the purpose of reduction of overall portfolio risk. The investments shall be diversified by investment type, issuer and maturity: U.S. Treasury 100% US Government Agencies 75% 50% in any single government sponsored enterprise State of Oregon Investment Pool 100% or the maximum imposed by statute Certificates of Deposit 25% of total portfolio 30% in any single qualified financial institution Banker's Acceptances 25% of total portfolio 30% in any single qualified financial institution Commercial Paper & Corporate Notes 20% of total portfolio 5% in any one corporation, subsidiaries or affiliates State & Local Government Securities 25% of total portfolio Repurchase Agreements 25% of total portfolio 10% in any single qualified financial institution COMPETITIVE SELECTION OF BIDS OR OFFERS: Before the investment officer invests funds, competitive offers or bids will be sought from at least two institutions, or a decision to invest will be based on data received from at least two institutions. The most favorable offer or bid will be awarded the transaction. MATURITY SCHEDULING: To the extent possible, the County will attempt to match its investments with anticipated cash flow requirements. No investment security shall have a maturity of more than 18 months, with the exception that a maximum of 20% of the total portfolio may include investments beyond 18 months, but not more than 24 months. The investment portfolio operates on a policy of buying securities and holding them until their specified maturity date, but during certain market conditions when it becomes advantageous, the Portfolio Manager may sell securities prior to their maturity date. Policy #F-10, Investment Policy Guidelines (Revised 3/7/07) Page 3 of 6 SAFEKEEPING AND COLLATERALIZATION: Investment securities purchased by the Portfolio Manager will be in safekeeping with the Bank's Investment Division Safekeeping Department. If it is felt necessary to safe keep with a third party, the Trust Department of the bank will be considered to be a third party for the purpose of safekeeping of securities purchased from that bank. Another permissible option would be to use a third party bank to provide safekeeping for all purchased securities. The purchase and sale of all securities will be on a payment versus delivery basis. The custodian shall issue a safekeeping receipt to the Treasurer listing the specific instrument, rate, maturity and other pertinent information. All other repurchase agreements shall require safekeeping and a master repurchase agreement. Deposit-type securities (i.e. certificates of deposit) shall be collateralized through the Collateral Pool Manager as required by ORS 295.015 for any amount exceeding FDIC coverage. Other investments will be held by the custodian as evidenced by safekeeping receipts. QUALIFIED INSTITUTIONS: The investment officer shall maintain a list of all authorized broker/dealers and financial institutions which are approved for investment purposes or investment dealings. Any firm is eligible to make an application to Deschutes County and upon due consideration and approval will be added to the list. Additions or deletions to the list will be made at the Portfolio Manager's discretion. At the request of Deschutes County, the firms performing investment services shall provide their most recent financial statements or Consolidated Report of Condition (call report) for review. Further, there should be in place, proof as to all the necessary credentials and licenses held by employees of the broker/dealers who will have contact with Deschutes County as specified by but not necessarily limited to the National Association of Securities Dealers (NASD), Securities and Exchange Commission (SEC), etc. Deschutes County shall conduct an annual evaluation of each firm's credit worthiness to determine if it should remain on the list. Securities broker/dealers not affiliated with a bank shall be required to have an office located in Oregon and/or be classified as reporting dealers affiliated with the Federal Reserve as primary dealers. PRUDENCE: The standard of prudence to be used by the County Treasurer in the context of managing the overall portfolio shall be the prudent investor rule, which states, "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercises in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." INDEMNITY CLAUSE: The County shall defend and indemnify the County Treasurer and staff from personal liability for losses that might occur pursuant to administering this investment policy as long as the County Treasurer and staff exercise prudence in accordance with this policy, and act within the boundaries of this Policy. ETHICS & CONFLICTS OF INTEREST: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any Policy #F-10, Investment Policy Guidelines (Revised 3/7/07) Page 4 of 6 material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees, officers and their families shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the County. Officers and employees shall, at all times, comply with the State of Oregon Government Standards and Practices code of ethics set forth in ORS 244. PERFORMANCE EVALUATION: The performance of the County's portfolio shall be measured against the performance of the Oregon Local Government Investment pool, and the three-month and twelve-month Treasury Bills. ACCOUNTING METHOD: Deschutes County shall comply with all required legal provisions and Generally Accepted Accounting Principles (GAAP). The accounting principles are those contained in the pronouncements of authoritative bodies including but not necessarily limited to, the American Institute of Certified Public Accountants (AICPA); the Financial Accounting Standards Board (FASB); and the Government Accounting Standards Board (GASB). An investment fee of 5% of the total interest earned on all invested funds will be deducted and credited to the County Finance Internal Service Fund each month. After deducting the investment fee, interest earnings will be credited on a last day of each month to the funds from which the investment was made based on the average daily balance in the fund. INTERNAL CONTROLS The investment officer is responsible for establishing and maintaining an adequate internal structure designed to reasonably protect the assets of the County from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the investment officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: - Control of collusion. - Separation of transaction authority from accounting and record keeping. - Custodial safekeeping - Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. - Clear delegation of authority to subordinate staff members. Policy #F-10, Investment Policy Guidelines (Revised 3/7/07) Page 5 of 6 - Written confirmation of transactions for investments and wire transfers. - Compliance and oversight with investment parameters including diversification and maximum maturities. REPORTING REQUIREMENTS: The Deschutes County Treasurer will provide a monthly report to the County Commissioners and the County Administrator. This report will include but not necessarily be limited to: portfolio activity, individual securities held at the end of the reporting period, average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks, and investments by maturity date. Additionally, in accordance with Generally Accepted Accounting Principles, investments are reported in the County's Comprehensive Annual Financial Report at market value. REVIEW: This policy shall be reviewed and modified, if appropriate, by the Deschutes County Board of Commissioners or if market changes warrant review. Annual readoption by the reviewing authority is required by ORS 294.135a. In addition an Investment Committee consisting of five members will meet and review any changes to this Policy. This committee will consist of one County Commissioner and four additional members with backgrounds such as a Banker, Security Broker, Controller/Chief Financial Officer, or Government Finance Manager. AUTHORIZED FINANCIAL INSTITUTIONS: BANKS OTHER Bank of America Bank of the Cascades Columbia River Bank Community First Bank Key Bank Liberty Bank Sterling Savings Bank South Valley Bank & Trust Umpqua Bank US Bank Washington Mutual Wells Fargo Oregon Local Government Investment Pool Piper Jaffray R 13C Dain Rauscher Seattle-Northwest Securities Corporation UBS Financial Services Deschutes County Policy No. P-2006-126, Investment Policy Guidelines, is hereby rescinded. Policy #F-10, Investment Policy Guidelines (Revised 3/7/07) Page 6 of 6 RTES Deschutes County Administrative Policy No. GA-8 o{ Effective Date: EMPLOYEE FIREARMS POLICY STATEMENT OF POLICY It is the policy of Deschutes County to prohibit the possession of firearms by employees in the workplace. APPLICABILITY This policy applies to all county employees except authorized, DPSST-certified law enforcement personnel. POLICY AND PROCEDURE No County employee, except authorized, DPSST-certified law enforcement personnel, may possess on County property or carry, concealed or otherwise, a firearm while working in an official capacity. Working in an official capacity is meant to cover all official activities, including but not limited to working in the office, in the field, and other locations necessitated by employment. Firearms may not be carried, concealed or otherwise, by County employees in public vehicles assigned for use by employees, except by authorized, DPSST-certified law enforcement personnel. Likewise, firearms may not be so carried in private vehicles that are being used for official business. This does not prevent employees from transporting weapons in their private vehicles while driving to and from their workplace, but does prohibit those vehicles from then being utilized, for example, by employees to drive from one office location to another during working hours. Nothing in this Policy is meant to restrict the carrying of weapons necessary as evidence or as otherwise necessary in cases being investigated or prosecuted by the District Attorney's Office. Violation of this policy may be grounds for disciplinary action, up to and including termination. Approved by the Deschutes County Board of Commissioners 2007. Dave Kanner County Administrator Policy # GA-8, Employee Firearms Policy