HomeMy WebLinkAboutDIV I) CH 3 District Financial Matters: Section 03 - District Banking and Other Financial Matters3-1
CHAPTER 3 DISTRICT FINANCIAL MATTERS
SECTION 3 DISTRICT BANKING AND OTHER FINANCIAL MATTERS
3.01 DESIGNATION OF DEPOSITORY
The Board of Directors shall designate a depository or
depositories to have custody of District funds, which
depositories shall give the District sufficient
collateralization to secure the District against possible
loss, as required by law. Only such person or persons
authorized by the Board may sign checks to withdraw funds
from any of such depositories.
The General Manager, Secretary, Treasurer, –Chief
Financial Officer, and all other employees or assistants of
the District who may be required to do so by the Board of
Directors, shall give such fidelity or performance bonds to
the District as the Board may from time to time require.
The premium for such bonds shall be paid by the District.
3.02 DEPOSIT OF CASH
All funds received by the District from any source
whatsoever shall be promptly deposited in one of the time
or demand bank accounts established by resolution of the
Board of Directors. It shall be the responsibility of the
Chief Financial Officer of the District and of his/her
deputies, who have been or may be appointed, to assure such
prompt deposit of funds.
3.03 TYPES OF ACCOUNTS AND INVESTMENT ACCOUNTS
A.The following types of bank accounts and
investment accounts shall be established and maintained for
District funds as directed or approved by the Board of
Directors:
1.Demand Deposit Account. All funds, when first
received, shall be deposited in one of the demand
deposit accounts established under Section 3.02.
However, the– Chief Financial Officer, or his/her
designee, shall cause those funds for which an
early demand is not foreseen, to be transferred
to a time deposit account or to an investment
account to produce an interest return as soon as
practicable.
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2.Time Deposit Account. Funds for which an early
demand is not foreseen shall be transferred from
a demand deposit account to a time deposit
account or invested in an investment authorized
under 3 of this Section 3.03.
3.Investments. As an alternative to placing funds
in a time deposit account, funds may be invested
in the form of securities authorized by Section
53601 of the California Government Code and
District Policy No. 27.
3.04 CLASSES OF BANK ACCOUNTS
A.The following classes of accounts shall be estab-
lished and maintained for the District:
1.General Accounts. All District funds shall be
placed in one or more of the types of accounts or
investments listed under Section 3.03. Such
funds shall be designated "Otay Water District,
General Account" except for funds which are to be
placed in special accounts as may be directed by
the Board of Directors or as otherwise authorized
in this Section 3.04. Such special accounts may
be any one of the types listed in Section 3.03.
2.Payroll Account. One special demand deposit
account, designated "Otay Water District, Payroll
Account," shall be maintained for the sole
purpose of paying wages, salaries and taxes for
District employees. No funds shall be deposited
in this account except funds withdrawn by check
or transfer from a General Account.
3.05 TRANSFER OF FUNDS FROM ONE ACCOUNT TO ANOTHER
A.The Chief Financial Officer of the District or
his/her designee is authorized and is delegated the
responsibility of directing banking institutions to
transfer funds from one type of account to another type in
a financial institution which has been approved by the
Board of Directors. For the purpose of such transfers the
types of accounts designated "Demand Deposits," "Time
Deposits," and "Investment Accounts" shall be inter-
changeable at the direction of the Chief Financial Officer
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or his/her designee with after-the-fact approval of the
Board.
3.06 WITHDRAWAL OF FUNDS
A.Funds may be withdrawn from any class of demand
deposit by issuance of a check or by means of a wire
transfer which must be approved by two authorized signers.
B.All checks drawn against the General Accounts
shall be listed in numerical order on a list of demands
that shall be included in a report to the Board of Direc-
tors on a regular basis.
C.All checks drawn against the General Accounts or
payroll account must be executed using a facsimile
signature or require the signatures of two signers. Checks
will not be released until approved by the General Manager
and the Chief Financial Officer; or individuals designated
by the General Manager or Chief Financial Officer,
respectively.
3.07 DIRECTIONS PERTAINING TO DEMAND DEPOSITS
Each demand deposit account shall be established only
by resolution which shall contain directions therein as to
the persons who may sign checks on the account.
3.08 FISCAL YEAR
The fiscal year of the District shall be the period
beginning July 1 of each calendar year through June 30 of
the next calendar year.
3.09 CLOSING OF BOOKS OF ACCOUNT
Within 30 days after the last day of each fiscal year,
the Chief Financial Officer shall cause all final entries
for such fiscal year to be made in the District books of
account, prepare them for examination by the external
Auditor, and notify the Auditor that the books of account
are ready for audit.
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3.10 APPOINTMENT OF AN AUDITOR FOR ANNUAL AUDIT OF
BOOKS OF ACCOUNT
The Auditor for the District shall be appointed by the
Board of Directors and shall serve thereafter until such
time as the Auditor may resign, the appointment may be
revoked by the Board, or a successor has been appointed by
the Board.
Within 60 days after the books of account have been
prepared for the Auditor's use, as provided in Section
3.09, the Auditor shall perform and submit the annual audit
of said books of account to the District.