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AGENCY..AuEST FOR a.-ss.o./COUNCIL Aa.c.
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Subject:
Separation of the Redevelopment
Agency Secretary/Treasurer Functions
From:
Qt:
Glenda Saul, Executive Director
Redevelopment Agency
Date: August 15, 1985
Synopsis of Previous Commission/Council action:
9-8-52
2-4-85
7-1-85
7-15-85
Resolution #2 Adopted Original By-Laws of the Redevelopment Agency
(Amended numerous times)
Resolution No. 4725, latest amendment to revised By-Laws.
Annual Meeting - Election of Officers held - Functions of Secretary/
Treasurer referred to Redevelopment Committee
City Administrator directed to meet with City's CPA to review functions
of Secretary/Treasurer and report at the meeting of August 19, 1985
MOTION:
Recommended motion:
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MOTl ON:
(a)
Move that the recommendation of the Redevelopment Committee
be approved providing for the Office of Secretary/Treasurer
of the Community Development Commission and the Redevelopment
Agency be held by the Executive Director of the Agency, as
set forth in the By-Laws and concurring resolutions.
(b)
Move that the recommendation of D. Richard Byrne, Certified
Public Accountant, be approved providing for the placing of
the signature plates under the custody of the Mayor's Office
whereby that office would be responsible for affixing the
facsimile signature.
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, Signature
Contact person:
GLENDA SAUL
Phone: 383-5081
Supporting date attached:
Ward:
FUNDING REQUIREMENTS:
Amount: $
Project :
August 19, 1985
No adverse Impact on City:
OCil Notes:
Date:
Agenda Item NOJ!<s - 2 Of
. CI~ OF SAN BERNARD. - REQUIfft FOR COUNCIL AC-A,N
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STAFF REPORT
The original By-Laws of the Redevelopment Agency of the City of San Bernardino Adopted
September 8, 1952, states that the offices of the Agency shall be a Chairman, a
Vice-Chairman, and a Secretary, who may be the Executive Director.
Section 4 of Resolution #2 states in pertinent part: The Secretary shall also be the
Treasurer of the Agency. As Treasurer he shall have the care and custody of all funds
of the Agency and shall deposit the same in the name of the Agency in such banks as the
Agency may select.
Historically, without exception, the Executive Director of the Redevelopment Agency has
performed the duties of Secretary-Treasurer.
At the Annual Meeting of the Redevelopment Agency held on July 1, 1985, Mayor Wilcox was
elected Chairman and Commission Member Strickler was elected Vice-Chairman. Commission
Member Marks stated that he had some concerns regarding the election of the Secretary-
Treasurer and that he felt it was not good practice from an administrative point to have
the Executive Director functioning as the Agency's Treasurer. Mr. Marks suggested
contacting the City's Certified Public Accountant, reguesting his advice regarding the
pros and cons of having the top administrative official serving as the Treasurer of an
organization.
The matter was referred to the Redevelopment Committee for review and to return to the
Commission with their recommendation. '
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At the meeting of the Redevelopment Committee held on July 2, 1985, a discussion was held
regarding separating the existing combined Secretary-Treasurer positions into two offices.
Chairman Strickler spoke via telephone with Mr. Richard Byrne, after which, it was the
consensus of the Committee that the position should remain as is.
At the Regular Adjourned Meeting of the Community Development Commission held on July 15,
1985, the Redevelopment Committee presented their recommendation to the Council to allow
the Secretary-Treasurer position to remain as it is within the Redevelopment Agency at
the present time.
After discussion, it was unanimOUSly agreed to direct the City Administrator to review
the separation of functions of Secretary-Treasurer with the City's CPA and to report back
to the Council for further action.
Attached is a copy of a Memorandum distributed to the Mayor and Council from John Matzer,
Jr., City Administrator, regarding the separation of the RDA Secretary and Treasurer
functions to be placed on the Agenda for the meeting of August 19, 1985.
Also attached is a copy of a letter from Richard Byrne, Certified Public Accountant,
outlining his analyzation of the request regarding the Secretary-Treasurer functions
for the purpose of improving accounting controls within the Redevelopment Agency.
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15-0264
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C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
8507-416
TO: Mayor and City Council
FROM:
SUBJECT:
John Matzer, Jr., City AdminiBt(ato~
Separation of RDA Secretary and Treasurer Function
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DATE:
July 17, 1985
(6408)
COPIES:
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At Council's request, Rick Byrne, the City's auditor was
contacted regarding the separation of the RDA Secretary and
Treasurer function. Mr. Byrne indicated that in small
organizations it is not unusual for the functions to be
combined. Be suggested, however, that where possible, the
duties should be separated among two individuals. That is
one individual should be responsible for the accounting
activities and the other, for example, the Executive Director
of the RDA, would be responsible for the Treasurer activity.
Mr. Byrne pointed out that if the Treasury function was
transferred to the City Treasurer. it would be important that
the City Treasurer be intimately involved in that aspect of
the RDA activities so that he would be in a position to
appropriately administer his duties. Considering the
complexities of some of their activities, a significant
amount of the Treasurer's time could be required.
I concur with Mr. Byrne that wherever possible, it is
desirable to separate the accounting and treasury management
functions for purposes of sound internal control. Such
separation could be achieved within the Agency so that one
person is not responsible for initiating the accounting
transactions and signing the checks. Another factor that
could be considered in the area of internal control could be
the signing of RDA checks. At present, the signing is done
by the Executive Director (manual signature) and the RDA
Board Chairman (facsimile signature). A manual signature by
the Board Chairman or another Board Member would strengthen
the internal control procedures, since the facsimile is in
the custody of the RDA staff.
JM/djn
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THOMAS. BYRNE & SMITH
AN ACCOUNTANCY CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
~ Orange ....... Rwer.ldlt. C.Ufom" 'Hcn
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REDEVELOPMENT AGENCY Of THE
CITY OF SAN BERNARDINO, CA
DonaIcll. Thoma, C.P.A.
D. AICMn:lByme, C.P.A.
V. C. Smith, Jr., C.P.A.
AUMI C. Hf;rrilon, C,P A.
August 12, 1985
.
Glenda Saul, ~ecutive Director
Redevelopment Agency of the City of
San Bernardino
300 North "D" Street, Room 320
San Bernardino, California 92418
Dear Ms. Saul:
Pursuant to your request regarding separation of the Secretary and Treasury function
for the purpose of improving accounting controls I submit the following information:
1) Tbe Mayor and City Council award bids for goods and services in excess
of $3,500.00.
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2) The Executive Director or Deputy Executive Director approves obtaining
services under $3,500.00 as requested by Division Heads.
3) The Administrative Assistant prepares purchase order requests for goods
as requested by Division Heads.
4) Purchases are let by purchase order by the City Purchasing Department.
5) Goods are inspected and accepted as complete by the Administrative
Assistant.
6) Services are reviewed and accepted as complete by Division Heads.
7) Invoices for goods and services are then reviewed and approved for
payment by the Deputy Executive Director.
8) The Accountant III assembles all the necessary documents and prepares
the voucher package.
9) The Accounting Manager reviews and approves the voucher packages.
10) Tbe Senior Accountant processes the documentation and prepares the
checks.
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11) The Accounting Manager compares the voucher package documentation to
the checks and approves the chec~s for signature.
12) The Executive Director reviews the voucher packsge documentation and
manually signs the checks.
~enda Saul, Executive Director4:)
Redevelopment Agency of the City of
San Bernardino
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August 12, 1985
Page 2.
13) A facsimile signature of the Bosrd Chairman is added by a signature
plate maintained in the Agency safe.
14) Checks are mailed to vendors by the Account Clerk II.
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Accounting controls could be strengthened by requiring a second manual signature
by the Board Chairman or another Board Member. However, this method would be too
restrictive and could jeopardize the Agency's policy of generating optimum interest
on its funds.
Therefore, I suggest the Agency consider placing the signature plates under the
custody of the Mayor's Office whereby that office would be responsible for affixing
the facsimile signature. This would allow the Agency to invest large receipts
that are received immediately and leave investments intact until the time for
releasing checks for payment of bills.
I do not feel, at this time, it would be appropriate to transfer the Treasury
function to the City Treasurer's Office.
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I nave not attempted to address other areas relative to separation of duties such
as the possibility of addit.ional personnel attending rating confer.ences in New York
or bond closings in Los Angeles etc.
If you have any questions in regard to this matter please call my office.
Respectfully submitted,
THOMAS, BYRNE & SMITH
An A:ZCO tancy Cor. ration
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By: D. Richard
Certified Publ c
DKll/sts
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