Disbursements Signing Policy
A report proposing a new policy for signing cheques and electronic funds transfers to strengthen fraud prevention.
TOWN OF VIEW ROYAL COMMITTEE OF THE WHOLE REPORT
TO: Committee of the Whole DATE: September 12, 2018 FROM: D. Christenson, Director of Finance MEETING DATE: September 18, 2018
Disbursements Signing Policy
RECOMMENDATION:
THAT the Committee recommend to Council that Policy #1600-013 (Cheque Signing) be rescinded and replaced with Policy #1600-022 (Disbursements Signing).
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To replace the current Cheque Signing Policy #1600-013 with a disbursements signing policy that also authorizes electronic funds transfers, updates the titles of signing authorities and strengthens fraud prevention measures.
BACKGROUND DISCUSSION:
Policy #1600-013 (Cheque Signing) authorizes the CAO, Treasurer and Deputy Treasurer to endorse cheques. This policy stipulates that cheques over $25,000 be counter-signed by the Mayor or member of Council with signing authority.
The recommended replacement policy #1600-022 (Disbursements Signing) was developed based on generally accepted practice for local governments and strengthens internal controls and fraud prevention measures. Key differences between the two policies are as follows:
| Element | Policy #1600-013 | Proposed Policy #1600-022 | Comments |
|---|---|---|---|
| Electronic transfers | Not specifically authorized | Specifically defined and authorized | Increased security and fraud protection |
| Personnel titles | Treasurer Deputy Treasurer |
Director of Finance Manager of Accounting |
Updated |
| Number of endorsements | One required for cheques under $25,000 Mayor/Council countersignature for cheques over $25,000 |
Two for all cheques | Provides additional fraud protection |
| Facsimile endorsement | Permitted for all except Mayor/Council | Permitted for both signatures on cheques under $5,000 Permitted for one signature on cheques between $5,000 and $75,000 Not permitted on cheques over $75,000 |
Ensures review of all cheques over $5,000; reviewers consider compliance to purchasing policy and internal controls |
| Counter-signature | Mayor/Council signature required for all cheques over $25,000 | Mayor/Council authorized as secondary signatories in the absence of primary signatories | Eliminates routine redundancy while providing additional signatories when required Council authorization required by purchasing policy for procurement commitments over specified dollar value |
RECOMMENDATION:
THAT the Committee recommend to Council that Policy #1600-013 (Cheque Signing) be rescinded and replaced with Policy #1600-022 (Disbursements Signing).
SUBMITTED BY: D. Christenson, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Officer
Attached: Policy #1600-022 (Disbursements Signing) PROPOSED Policy #1600-013 (Cheque Signing) CURRENT
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