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Home My WebLink About04. Review of District expenditures 40 Central Contra Costa Sanitary District June 6, 2017 TO: ADMINISTRATION COMMITTEE VIA: ANN SASAKI, DEPUTY GENERAL MANAGER FROM: PHIL LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION SUBJECT: REVIEW OF DISTRICT EXPENDITURES Questions around the practice of Finance Committee/Board review of expenditures have arisen, specifically, whether there is a legal requirement for this. There are two statutes in the Sanitary District Act that address the requirement for the Board to approve payments from District funds: § 6794. Orders for payment; signatures; contents; entry The treasurer shall pay out money of the district only upon the written order of the board, signed by the president and countersigned by the secretary. The order shall specify the name of the person to whom the money is to be paid, the fund from which it is to be paid, and shall state generally the purpose for which the payment is to be made. The order shall be entered in the minutes of the board. (The treasurer refers to the County treasurer.) § 6801. Disbursement of funds by district board as alternative to functions of treasurer As an alternative to the functions of the treasurer, the district board may elect to disburse funds of the district. Such election shall be made by resolution of the board and the filing of a certified copy thereof with the treasurer. The treasurer shall thereupon and thereafter deliver to the district all funds of the district. Such funds shall be deposited by the board in a bank or banks, or savings and loan association or savings and loan associations, approved for deposit of public funds and shall be withdrawn only by written order of the district board, signed by the president and secretary. The order shall specify the name of the payee, the fund from which it is to be paid and state generally the purpose for which payment is to be made. Such order shall be entered in the minutes of the board. The district board shall appoint a treasurer who shall be responsible for the deposit and withdrawal of funds of the district. The treasurer shall deposit with the district, prior to October 1 st of each year, a surety bond in the annual amount fixed by the district board. The deposit and withdrawal of funds of the district shall thereafter be subject to the provisions of Article 2 (commencing at Section 53630), Chapter 4, Part 1, Division 2, Title 5, of the Government Code. Review of District Expenditures June 6, 2017 Page 2 of 5 At Central San, the Board has delegated to the General Manager the authority to issue warrants (aka checks): District Code Section 2.08.030 - Authority and responsibility. The General Mana-ger of the District has the administrative authori!Y and responsibility for the operation of the District and the enforcement of all District rules and regulations, including authority to execute all contracts, warrants, releases, receipts, and similar documents for and on behalf of the District in accordance with California Health and Safety Code Section 6487. (Ord. 253 § 1(Exh. A(part)), 2008: Ord. 223 § 1 (part), 2002: prior code § 3-203 An extract from General Manager Authority Resolution No. 2016-046 pertains to warrants: Section 1: General Authorization The General Manager is authorized to execute all deeds, contracts, warrants, releases, receipts and similar documents for and on behalf of Central San in accordance with California Health and Safety Code Section 6487, including all documents prepared and circulated as part of the public competitive bidding process. Nothing in this Section 1 is intended to alter or eliminate any other statutory or District Code procedural requirements which may exist. Practice at other sanitary agencies is summarized as follows, with example documents attached in the Appendix: • Delta Diablo: Monthly Check register approved by full Board as part of consent calendar. • East Bay Municipal Utility District: Quarterly disbursement report reviewed by Finance Committee. This is summary level information only, not individual expenditures. • Union San: Board reviews check register and purchasing card statements. • 11ronhouse Sanitary District: Board is provided check register and payroll totals. In conclusion, there is a sound basis for the current practice of the Finance Committee reviewing Central San's expenditures: • Sanitary District Act sections 6794 and 6801 speak to Board involvement regarding the payee and purpose of expenditures; • Central San delegates authority to the General Manager to issue warrants and current practice provides for Finance Committee/Board review of such expenditures after issuance; • Practice at three sister agencies provides for Board involvement in the review of expenditures either on a detailed or summary level basis. Review of District Expenditures June 6, 2017 Page 3 of 5 Appendix: Expenditure Review Practice at Sister Agencies 1, Delta Diablo Monthly check register approved by full Board as part of consent calendar. Not separately reviewed by Finance Committee. Example: E. CONSENT CALENDAR 1.) Approve Minutes of Regular Board of Directors Meeting, April 12, 2017(Denise Jones) 2) Approve District Monthly Check Register, March 2017(Eka Ekanern) 2. East Bay Municipal Utility District Quarterly disbursement report reviewed by Finance Committee. Not separately reviewed by full Board. Example: 4. Quarterly Financial Report,,(-,: (Skoda) & Quarterly Payroll,Disbursement and Rcal Estate Summary Reports for the Water and Wastewater Systems for Quarter Ended March 31,2017 0 Quarterly Investment Report, Match 31,2017 Report is summary level only: OAV,%1TT,414'*ALUTnJTYD1S71UCL 91F.SOJArl KIN W-3 I&W94) W-.1her M6 NOVrMbur 2616 lk"Mber 2016 A My TUTAIS rhaw(4 Fff'FAW'dV vow(; %G "We. WWW WWI VFWG Grtd%PO�. 5 L k. 217)1146 S S 1,131,OU S ',9.454.52D 3 1-NOW • I 4i,64R,i% S 7.0)2-Hm Rnireawnl S S.WS,412 S 1355-114 S ipll.j I a f 5*360 5 7,507,286 .4 1=)or) • $ 17j2VOt S 29$6,997 FTC S I&I.K42 S 151123 3 V-'�' S 233 7r, t I S 121'1$.1 + 5 2ALfA4 S 45b.040 S 1'i 11,3?0 S 249A4 5 1,527,311 5 WAIRI S 1629,22 S 265,233 S 4,171,71? S WO,37% I 40Q,666 S 40,D28 1 411mi S 40,025 S A 17 ffr. S Won 1 1.245,2" S 120.093 Km crr�<. S '14R IN' Sr 0244 S 357fiO6 I 44-91i 1 149,!1 S 34,244 3 I.Q.Wi 2 S 119.422 VSIP 9 .'9X23 1 4.451 S (32)5 2 S 0.071 S 9'215 1 49S Odm Oamw 9 33-7diq S 17A,116 1 30.00 9 lophs 5 38.130+ S 694MS *?'11A 2$2,2311 46'276 1 25,632 A 236A5 S 25.713 S 564:762 S 403:Ijh LTI $ 102.4+}2 S 17,3841 S $12.0" S 2-%4 S 52.036 S SPI % X1.036 5 34331 VIZVMTdy Ina f I S 55'm S 1.150 S . S I 5321w 3.1513 'I T fr'AL t 23,01111,767 4) 3,634.5% -S 21.74A'W'It 1'v"'646 3 30+,42'1x46 S S.Iwlss S 74.7)('.W S ONDUNYMINTSUMMA RY (RIS OLIMONNO.YZKV-Ni Ogiftb"2!16 Va"Ohler 2*16 MctlAff 1016 OVARIERLY MANI S ).6008 1 21 643,VTI S 4.134,432 29,WZ,200 S 5,4 6.777 S 73.5.,,4" 5 12'r.8.7" UMOMr 9i'1515 3 5 77,967 S f 67.3207 S $ 240,53-1 Z F71wroric Payr em S 4147.1*1 S 151754 $ 1.3'3''1,524 $ 4-1w 5 1.336-971 t 7-*10 $ 5;431:6� 5 2 YR 417 Nwri pwyrwn Is S W.307 % 5 9%,6)4 S 1 7"1..9 1< S I 2,4454&:, S TUTAL S 12A4'593 $ 3.162J48 S 24,530484 1 4,1 KOM 5 33,670,044 S 1.039,23 8=51112 5 1 3.433.=6 SWAR FWUMT In D9CQffl'W 2016 rj 3. Union San Review of District Expenditures June 6, 2017 Page 4 of 5 Board reviews check register, P-Card statements. Example: 4. Items to Be reviewed for the Board meeting of February 13, 2017: • Monthly Operations Report for December 2016—Financial Reports. • Review and Consider Approval of Policy No. 2030, Investment Policy. • Solar and Cogeneration Facilities Operational Update. • Cal -Card Quarterly Merchant Activity Report. • General Manager Expense Reimbursement. Full Board receives check register. Example: Information 17. Check Register. UNION SANITARY DISTRICT CHECK REGISTER Check No. Date Invoice Na. Vendor Description Invoice Amt Check Amt 163061 I2I1t/2016 800394.27 GSr:CONSTRUCTION CO INC THICKENER COWROC SLOG tMPROV PHASE it $590.074,45 5590.07445 163225 1 V=016 60D"41-1 MOUNTAIN CASCADE INC FREMONT,&PASCO PADRE LS 1IMPROVEMEWS $310,742-96 $310,74216 163247 12 12016 30104249 SYNAGRO WEST LL-C OCTOBER 2016 8105OLIDS DISPOSAL $64,07.115 W'957 16 163231 I2fW2016 170120161208 PACIFIC GAS AND ELECTRIC SERV TO I V1 EV16 PLANT $58,414,80 S56,04,80 163138 12 I512016 21007 MCGUIRE&HFSTER NEWARK BACKYARD SS RELOCATION-PHASE 3 L%,876-50 $56'87CSO 1631118 IV15QO16 6910 OW NICHOLSON CORP HYPIO TANKS AND PIPING REPLACEMENT $56,559.49 $56,559.49 163195 1212212016 20150239 COVELLO GROUP INC FREMONT&PASEO PADRE LS IMPROVEMENTS S20,484,00 549,687.50 12,+221201€ 2013=31 nIICKENER CONROL BUILDING$MPROVEMENTS PHASE H $28,203-50 1e3246 121=0116 117824 SWRCE-STATE WATER RESOURCES FY 17 ANNUAL WOR FEES $20,000-00 $43,251.00 l2f22J20'16 117372 FY17 ANNUAL WOR FEES $14],0muo 12r=016 117871 FYI 7 ANNUAL WOR FPS $2.062.00 1=2=16 121463 FY 17 A14N UAL WOR FEES 163217 t2 2!2016 570105W JIM EQUIPMENT CO 2 UTILITY CARTS $36,11604 $36,116.04 163129 IVI 5V2016 328548 HARRIS&ASSOCIATES NEWARK BACKYARD SS RELOCATION-PHASE 3 S34,707,5D $34,707.60 163186 12/2212016 5304 CLAW GOVERNMENT LIC RENEW SIEM SOFTWARE AND SUPPORT 1!7,1338.76 $33,477.59 12J22J2016 8321 RENEW CISCO SMARTNET $22,621,36 12IZZ(20% 383 CS AND MW COLOR PRINTER $3.117.47 163062 121EV2016 BOD394.27E GSE CONSTRUCTI.ON CO INC rWICKENER CW ROL BLDG IMPROV PHASE 11-ESCROW PYMT $31.056-65 Rage 193 of 237 Page 11 of 23 4. Ironhouse Sanitary District Board receives check register and payroll summary on consent calendar. Example: Review of District Expenditures June 6, 2017 Page 5 of 5 6.A. APPROVAL OF PAYMENT ORDER, REPORT ON FINANCIAL POSITION & OPERATING PERFORMANCE Documents: • Check Disbursements less than 5,000.pdf • Check Disbursements more than 5,000.pdf 3:iG PM fronhouse Sanitary District 04i2517 Check Detail>$61000 March 29 through April 24,2017 Type Num Date Name Account Class Pa id Amount Memo Bill Pmt-Check 49231 041134017 AsMW Hmith International,Inc. 1015.00-Wells Fargo Checking Bin 9065 DVIZ22017 8560 00-Vac C irizl6on'Supplies Cattle:General -4,633-20 Bill S0066- LW12QD17 8560.120 Vaccination-Supplies Gattle.Genetal -65 OD Bill 90068 04112rLO17 E545.00 Opefating Supplies Cattle:General -2,585.130 TOTAL -7,283 2210) Bill Pmt-Check 49236 0*13,1W17 Burke,Wifliams&Sorensen.,LLP 1016.00-Wells Fargo Checking Bill 211865 03(31 r201 7 5%010 General Business Issues Admin General -5,000.X Bin 211887 QMIM217 0.10 General Business issues Admin General -155. Bill 211 EBB GM I r.01 7 56617A0 General Business Issues Admin General -4.25250 TQ7AL -9,43800 Bill Pmt-Check 49236 04A3M7 Cafifon-da PV Engergy,LLC 1015.00,Wells Fargo Checking Bill March_ 113 IQ0 17 5860.00 Electric and Gas VVRF.-Genaeral -15,724-02 Er.6Fgj Purchase Charges 70TAL -15,724.D.1 0 Financial Report as of 3-31-1_7.pdf 0 Payroll Register Totals 4-7-17 and 4-21-17.pdf http.-Ilwww.ironhousesanitarydistrict.comlAgendaCenterIViewFilelAgendaI 0502 2017-178?htm1=true