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CITY OF COLTON <br />AGENDA REPORT <br />For the Meeting of March 18, 1997 <br />TO: Mayor and Council <br />Michael J. Williams CPA, City Treasurer P <br />SUBJECT: Approval of establishment of cash evidence account for the Police Dept. <br />DATE: March 18, 1997 <br />BACKGROUND: <br />Cash evidence had been stored in a safe in the evidence locker at the Police Dept. In <br />reviewing their procedures, the Police management felt that money that is not direct <br />evidence, would be better safeguarded by depositing it in a bank account. Ownership of <br />the funds will still be accounted for by the Police Dept. as to individual ownership and <br />the Finance Dept. will record the receipt and disbursement of funds in the City's general <br />ledger. <br />DISCUSSION <br />Safeguarding the assets of others is important and this is best done by depositing cash <br />into a bank account unless there is some compelling reason not to. In addition, <br />recording all receipts and disbursement into the City's accounting records is an <br />accepted practice not only in business but in government as well. The account will <br />require two signers for disbursement of funds which is our standard practice. The <br />reason that this is being brought before the Council is that no one should be allowed to <br />open a bank account in the City's name without the authorization and approval of the <br />Council. This is one form of internal control and is normally required by banks before <br />establishing an account. <br />FINANCIALIMPACT: <br />No negative impact <br />ENVIRONMENTAL IMPACT: None <br />RECOMMENDATION: <br />Approve the establishment of the account. <br />agenda3/18/97 <br />Item No. 2 <br />