Starting a New Payroll

FINANCE DEPARTMENT

PROCEDURES MANUAL

TABLE OF CONTENTS

ORGANIZATIONAL CHART

PAYROLL

Payroll Processing

ACCOUNTS PAYABLE

Create New Vendor Account

Processing Taxpayer ID Forms

Invoice Processing

Normal Accounts Payable Check Run

City of Vista Credit Card Issuance

Costco Membership/Department Card

Petty Cash Fund

Copies of Cashed Checks

PURCHASING

Purchase Requisition Entry

Purchase Order Year-End Close Out......

CASH RECEIPTS

Cash Register and Cashiering

Opening Activity and Cash Drawer Set-Up

Losses, Shortages, and Overages

Balancing Your Cash Drawer

Locating Cash Differences

Entering Cash Receipts to the MUNIS Accounting System......

Processing Cash Deposits Received by Finance

Recording Property Tax/Revenue......

Witness Fee Deposits

Posting Cash Receipts to MUNIS Accounting System

TREASURY/CASH MANAGEMENT

Investment Procedures

Investment Procedures Manual

Investment Advisory Committee

Monthly Interest Allocation......

Transmitting Issued/Voided Check Files to the Bank

Bank and Check Reconciliations

General and Payroll Accounts

Wave Account

Theatre and Ambulance Accounts

Returned Checks......

Ambulance Account

Wave Account

General Account

Finance Safe......

General Cash Handling Procedures......

WAVE Waterpark Cash Handling Procedures......

VisTix Cash Handling Procedures......

GENERAL LEDGER

Accounting Periods......

Adjusting Journal Entries

Sample Standard Adjusting Journal Entry

Sample Completed Journal Entry

Sample Request for Journal Entry

Budget Adjustment Entries......

Sample Request for Budget Transfer

Sample of Resolution Attachment

Sample Budget Journal Entry

Sample Completed Budget Journal Entry

Business Improvement District

Matching Payment

Calculation of BID Funds to VVBA......

Tax Lien Verification......

Deferred Street Construction

ACCOUNTS RECEIVABLE

Accounts Receivable

CAPITAL IMPROVEMENT PROJECTS

General Methodology

BUSINESS LICENSE

Definitions/Jargon used in Business License......

Screening Business License Phone Calls/Counter Visits......

Frequently Asked Questions - Phone and Counter Contacts......

Frequently Called Phone Numbers......

Unusual Business Licensing Situations

Checking To See If Someone Has a Business License

Researching Unlicensed Businesses

Accessing HdL Business License Software

New Business License Applications

Interdepartment Coordination – Inside City Businesses......

Business License Payment Processing

Reconcile HdL Daily Payment Processing

Editing Changes in HdL Database

Processing Mail Returns

General Instructions

Ideas to find new address for mail return

Renewing Businesses

Processing Renewal Mail

Counter Help

Renewal Processing – Form Review and Processing

Verifying Business Closures

Filing and Scanning Business License Records......

Unlicensed Business Files (Evidence Files)......

Business License Files......

Monthly Data Clean-up and Other Steps

Review Planning Delays......

Review Fees Due Status and Apply Penalties......

Waiting for Owner, Overpayment, Bad Check Status Check

BL Staff Review Status and Research Status in HdL and on Unlicensed Spreadsheet

Daily Check Deposit & Munis Reconciliation

Annual Renewal Process – Mailing Notices

Early Preparation - Forms

Early Preparation – Business License Data in HdL

Printing Renewal Notice

Handling Mail Returns

MAIL PROCESSING

Distribution of Interoffice Mail

Posting Outgoing Mail

Monthly Postage Report

GENERAL

Useful Information

Phone

Copy Machines

Conference Room Reservation

BUDGET

Budget Preparation......

Budget Accountability......

Expenditure Budget Accountability Report

PROJECT ACCOUNTING

Project Accounting......

FIXED ASSETS

Fixed Assets and Fixed Asset Reporting......

GASB 34 and Reporting Capital Assets......

SEWER SERVICE BILLING

Sewer Service Billing Overview

DELINQUENT TRASH BILLING

Delinquent Trash Billing......

ASSESSMENT DISTRICTS

Assessment Districts......

ORGANIZATIONAL CHART

FINANCE DEPARTMENT

ORGANIZATIONAL CHART

PAYROLL

Payroll Processing

PayrollProcessing - SUMMARY

The City of Vista compensates employees on a bi-weekly basis in accordance with the current and approved Memorandums of Understanding for the recognized employee’s unions, the Vista Firefighters’ Association (VFFA), the VistaCity Employees Association (VCEA) and the VistaCity Maintenance Association (VCMA). Management and confidential employees are unrepresented and negotiate separatefrom any other recognized group.

The payroll process consists of the following: 1) data entry and computer processing, 2) distribution of checks or transmittal of direct deposits, 3) Payroll liability processing and 4) filing both in house and with appropriate organizations/agencies.

Payroll Processing - DETAIL

New Employees/Employee Maintenance/Terminations

Human Resources enters all new employee information including assignment of a position. They also maintain all employee information including personal information, direct deposit, appointments, benefits and deductions, leave, premiums, alternate rates and termination processes. Once the entry is finished, the supporting paperwork comes to the payroll office where it is reviewed for accuracy of entry, signed, and returned to Human Resources. If there are corrections to be made, Human Resources is notified and handles the correction.

Payroll Processing

1. Open a new pay period
2. Review all Position and Employee Maintenance for the current pay period.
3. Activity Entry
4. Check all Recaps/Timesheets/Leave reports for accuracy, complete records, and signatures.
5. Enter all exceptions
6. Reconcile all reports, print checks and direct deposit vouchers
7. Post GL Accounting and Checks.

Payroll Reporting

1. Payroll Taxes
2. Go into Excel File: \\Moby\MIS\FINANCE\Payroll\PayrollReports\Payroll Tax EFTPS
3. Copy the worksheet from the previous pay period into a new worksheet and rename to reflect the new pay period. Then fill in the amounts and dates for the current pay period and print.
4. Log on to: and follow the Excel worksheet to transmit the information.

1. Direct Deposit

Follow the procedure outlined in the Word file: P:\FINANCE\Payroll\Payroll Misc\Direct Deposit Procedure.doc

1. Vendors

Send payments and documentation as required by each vendor

1. Payroll Distribution
2. Insert each Payroll Check and Direct Deposit Voucher into a plain window envelope and seal. Sort by Department. Put in the Fire King file and lock it until ready for distribution.
3. On the last day that City Hall is open before the pay date, an authorized person from each department will come to the Payroll Department and pickup the checks for that department. Print out the Excel Payroll Distribution list:

\\Moby\MIS\FINANCE\Payroll\Payroll Misc\Payroll Distribution

Make sure whoever picks up the checks is on the authorized list and signs for the checks.

ACCOUNTS PAYABLE

Create New Vendor Account

Create New Vendor Account - SUMMARY

Upon contact with a new vendor, departments submit a Vendor Information Sheet to the Finance Department. A record of vendors used by the City of Vista is then created and maintained by Finance for eventual 1099 reporting.

Create New Vendor Account - DETAIL

1. Go to Financials>Accounts Payable>Vendor Processing>Vendors.

1. Add a new record by clicking on the new record icon. Vendor numbers are automatically and sequentially assigned.

1. On the General tab, input the Alpha name (for searches—use business name or DBA name of individual/sole proprietor), the vendor name, DBA as applicable, address. The Contact tab can be utilized for further information. Choose the vendor type from the drop down box.

1. In the GENERAL (comment) box on the vendor screen, note who/why/when of the vendor # request.

1. For eventual 1099 reporting purposes, a Federal Tax ID (FID) or Social Security number (SSN)needs to be entered into the appropriate field.

1. Vendors reporting as INDIVIDUAL on a W9 must use a SSN.
2. Vendors reporting as SOLE PROPRIETORS may use either SSN or FID.
3. Both INDIVIDUALS and SOLE PROPRIETORS must use their name as reported to the IRS, with the business name as a DBA.
4. For Sole Proprietors and Individuals, the 1099 vendor box should be checked, and the Default box is “7”.
5. All attorneys, legal firms, and providers of medical services are set up as reportable 1099 vendors, per IRS regulations. Other income = “3”, Legal settlements paid to attorney = “L”, attorney or legal services = “A”, and medical services = “M”. Using these default 1099 codes properly ensures that income is reported in the correct “box” on the 1099s transmitted to the IRS.
6. Vendors known or likely to be 1099 vendors should be flagged as such with default tax ID number used until W9 is received.
7. Vendors properly set up as 1099 vendors will automatically be selected when 1099 reporting is processed.
8. The following are not 1099 reportable: refunds, reimbursements (to citizens,

companies, or employees), corporations, non-service related vendors, etc.

Ensure that these types of vendors are not flagged as 1099 vendors.

1. When all data is entered, click on the Accept Changes icon (check mark icon on the top of the screen) to save the entry.

1. Add the vendor to the vendor log; send a W9 request to allnew vendors except those set up for refunds and reimbursements or employees. See next section.

1. The vendor request/input is then reviewed by Accountant.

1. Care must be taken that a W9 is received from all vendors, whether a 1099 vendor or not. The only exception is those vendors set up for one-time refunds, from whom we do not request a W9. Using the log, follow up regularly and send 2nd requests for W9s, as needed.

Processing Taxpayer ID Forms

Processing Taxpayer ID Forms - SUMMARY

As part of the 1099 information return statutory reporting requirements by the Internal Revenue Service (IRS), the city must obtain accurate taxpayer identification number (TIN) information and certification from U.S. persons (including resident aliens) or from foreign persons. Upon contact with a new vendor, departments complete a Vendor Information Sheet (located at O:\Finance\Forms\Vendor Information Sheet) by typing in the address information (vendor name/vendor number and street address) and submit it to Accounts Payable staff. Alternately, that pertinent information in an email to A/P clerk.

Processing Taxpayer ID Forms - DETAIL

1. Note each new vendor number on the vendor log. Keep each vendor request form.

1. As needed, complete and print a Taxpayer ID Number Request form letter.

1. Mailan IRS W9 form with the request letter to the vendor, stamping the envelope with the OFFICIAL TAX DOCUMENT stamp.

1. Mail the tax ID request letter and W9 form by the following business workday after the Vendor # is set up.

1. Complete the log with the date mailed.

1. The vendor log should be reviewed weekly to follow up with vendors who have not yet returned their completed W9. Make note on log if sending 2nd request.

1. Upon receipt of a completed W9 from vendors, go to the Munis vendor screen and record pertinent information. Note on Vendor Log the receipt date of the W9.

1. The W9 is clipped to the vendor request form and given to the Accountant for final review. Review should include verification of 1099 flag of invoices already entered, which can be corrected if necessary to ensure proper 1099 income reporting.

1. After final review by the Accountant, the W9 is retained under lock/key. The initial request for vendor # is disposed of after final review.

Invoice Processing

Invoice Processing - SUMMARY

Payment Authorization Forms need to be filled out by the department requesting payment. This form is located at O:\Finance\ Forms\Payment Authorization Form. The following information needs to be filled out by the department: Invoice #, Invoice Date, Description of goods/services being billed and paid for, PO# if applicable, Account #, and Amount. NOTE: Payment Authorizations must be signed by the supervisor, project manager, or department head, per signature authority list maintained by Finance.

Invoice Processing - DETAIL

1. All invoices and corresponding documentation should be attached to the Payment Authorization form.

1. Refunds are not made without proper authorization. Documentation to be included with Payment Authorization requesting a refund should include the following:

• Copy of original deposit by person, OR
• Copy of an accounts receivable report, etc. outlining when payment wasreceived, AND
• A letter or memo explaining why refund is owed.

1. Invoices are entered by department office clerks as batches into the Munis A/P module. After proper approval, batches and all backup are submitted to the A/P clerk in Finance.

1. The A/P clerk reviews and edits the invoice batches, paying close attention to details: invoice amount, proper account coding, approvals, descriptions, etc.

1. As each batch is approved by A/P clerk, the batch is posted to the GL, establishing an expense to the department and a liability to the A/P account.

1. The accountant reviews the open invoice report, a Chrystal report that gathers all invoices entered for payment. The Accountant reviews the report and gives approval to run the checks. See next section for check printing process.

1. Printed checks are prepared for mailing. A check copy is matched to the corresponding payment authorizations/backup. These checks/backup are later scanned.

1. Post check reports (Paid Warrant Report) are run. Checks are not distributed until the Finance Director reviews the Paid Warrant Report.

1. More detailed instructions are held at the A/P clerk’s desk.

1. B of A Credit Card Statements: All credit card transactions go through the B of A WORKS program. This program provides for on-line review by each card holder and/or the department admin of each of the transactions for the statement period. GL account coding is initially assigned within the WORKS program. Each month, card holders receive a statement. The WORKS administrator in Finance receives the full statement, showing all transactions for all card holders. A payment authorization is prepared by the department for each individual statement, approved at the department level, and then submitted to Finance in a timely manner. Receipts for every charge must be included with the payment authorization/individual statement. The WORKS administer “sweeps” the monthly into MUNIS Accounts Payable, where each transaction = one invoice in a large batch (the total of which must equal the amount owed per the consolidated statement). The batch is reviewed and edited for description and account coding by the administrator. A wire transfer to the B of A is processed and the batch is posted. Detailed instructions are held at the administrators desk.

Normal Accounts Payable Check Run

Normal Accounts Payable Check Run - SUMMARY

The City Of Vista uses a decentralized accounts payable and purchasing system. Each department has the authority to purchase or contract for services as long as the purchases or contracts conform to the adopted purchasing resolution and the funds have been appropriated. Invoices are entered into MUNIS A/P by the departments in batches, which are submitted to Finance according to predetermined due dates. Bi-weekly check runs occur on Thursdays that City Hall is open. All items to be paid should be entered by noon on the Monday prior to the check run. If the check run falls on a day that City Hall is closed, then the check run will be moved to the day prior to orthe day after the regular check run day. Finance A/P clerk issues a calendar noting the due dates and check run dates.

After the invoice batches are reviewed and posted, the Accountant (A/P Supervisor) will review the Open Invoice Report that includes all of the posted invoices to be paid, and then gives approval for the checks to be processed.

After the checks are run, there are a set of reports and reconciliations that are created.

After the Warrant has been signed, copy Department Expenditure Report (13 copies-3 hole punched paper, double sided with copy of signed Warrant Register attached) and forwarded to City Clerk’s office for council packets. The Paid Warrant Report is then available under Linked Crystal Reports for the departments to print. Payment Authorizations requesting checks be returned to the department should be matched up first, noting name of person/department on actual check. The party picking up the check(s) should sign the Voucher/Check Register. If the check includes payments from other departments that one department is requesting to be returned to them, call the department in question and ask if a copy of the check will suffice. When matching checks to the backup, make sure appropriate signatures have been received and that all backup is attached. Check that the dollar amount of the check, vendor number and invoice number match the payment authorization. Stamp all backup with the paid stamp reflecting the date of the check run. Verify address of vendor and mail check with any remittance slips. Note that packing slips, estimates and statements are not considered good backup. The documentation must be an invoice. The exception being memos from department heads authorizing payment. Any questionable backup should be brought to the attention of the department supervisor. For checks that are missing backup, take a copy of the check and stamp it ‘backup please’ and forward it to the appropriate department. Until backup is received, the check should not be released. If backup is not received by the next check run, an email should be sent to the appropriate department(s) stating the check will be voided unless backup is received by the date of the next check run. After all checks have been matched up to the appropriate backup, they should be filed numerically by check number in the filing cabinets located outside the Accounts Payable Accountant’s office. Refer to black binder entitled Check Run Procedures for additional information.

Normal Accounts Payable Check Run - DETAIL

1. Begin the check run process by going to Accounts PayableInvoice Processing Menu>Invoice Entry/Proof.

1. On the Find Invoices QBE screen, right click on the Group field and delete all users so that all invoices entered by all users for that particular check-run are located. Click the “!” to execute the QBE search. The Invoice Edit List will appear on the screen. Click on the printer icon to print the report.

1. Go to the Accounts Payable>Check Processing>Create Checks. Enter the check date information and click on the “Create” icon. This will create the checks to be printed during the check-run process.

1. Go to the Accounts Payable>Cash Disbursements Menu>Select Items to be Paid and print the report. This will be a listing of all invoices to be paid by vendors including check totals. Match against and reconcile all Payment Authorizations received by Finance for accuracy. The Open Invoice Report should be given to the Finance Manager for approval before the check-run can be processed proceeding further.

1. After the Accountant (A/P supervisor) has approved the Open Invoice Report, the check-run can be processed by the following steps:

1. Continue to Accounts Payable>Cash Disbursements MenuAutomated Checks. This will now be populated with the auto-assigned check numbers. The checks will print on the check printer and non-negotiable file copy will print on the HP4200 printer.

1. Log checks into the Cash Disbursements Activity Log (Excel spreadsheet) which can be found in O:/Finance/Accounts Payable/Cash Disbursements Activity Log. All printed checks and wire transfers are logged here as well as voided checks.

1. Go to Accounts Payable>Cash Disbursements Menu>Cash Disbursements Journal to post the checkrun.

1. Print the Check Reconciliation Report which lists all the checks included in the checkrun. Also export the Positive Pay file for Denise.

1. Prepare a Warrant Certification Letter (O:\Finance\Accounts Payable\Accounts Payable\Warrant Register), updating dates and dollar amounts for the current check-run.

1. Forward the Warrant Certification Letter and Paid Warrant Report to the Director of Finance for signature/approval. After Director of Finance approval, forward the letter and report to the Mayor’s office for signature/approval. The letter and report are returned to the Account Clerk to retain and file in the warrant register book. The Mayor’s approval of the warrant register authorizes Finance to release the checks.

1. The Account Clerk matches up the payment authorization with the invoice back-up and attaches them to Finance’s copy of the check and then files all.

1. Make 9 two-sided copies of the Paid Warrant Report along with copies of the Warrant Certification Letter to be included in the council agenda packets.

1. Hold checks with Stop Notices filed and notify departments.

1. Return checks which have been specifically requested to departments and mail remaining checks to vendors.

1. File non-negotiable checks along with the Payment Authorization Form(s) and invoice(s) or other support documentation,in numerical order in large folders. The checks/backup will be pulled from the folders and scanned into Laserfiche. Laserfiche documents are permanent. The hard copies are retained only until after the audit for the fiscal year.

City of Vista Credit Card Issuance

City of Vista Credit Card Issuance - SUMMARY