Chapter 1.70 FINANCIAL POLICIES*

* Prior resolution history: Resos. 2003-150, 2002-113, 2002-95, 2002-94, 2002-49, 2001-106, 2000-131, 2000-71, 98-78, 98-53, 97-82, 96-80, 95-98, 94-45, 93-53, 91-82, 91-46, 90-138, 89-20, 81-6, 80-14, 76-34, 75-87, and 128-G, 1974.

1.70.005 Overview.

(a) The January 1, 2009, version of the Chelan County financial policies and procedures were reviewed and revised by the financial policy committee, which consisted of the following members:

(1) Buell Hawkins, county commissioner (committee co-chair);

(2) Brad Posenjak, county auditor’s financial services manager (committee co-chair);

(3) Dave Griffiths, county treasurer;

(4) Cathy Mulhall, county administrator;

(5) DeWayne Crater, public works chief accountant;

(6) Penny Goehner, public works administrative secretary;

(7) Ron Hupp, sheriff’s chief civil deputy;

(8) Theresa Pinneo, treasurer’s office chief accountant;

(9) Kathy Bangs, natural resources chief accountant.

(b) The policy committee makes recommendations to the board of commissioners regarding this chapter. The board of commissioners annually adopts the financial policies by resolution.


Section	Subject	Changes
1.70.030	Budget	Clarified, SBAs due by noon on first Wednesday
1.70.240	Revenue	Revised, notify treasurer of anticipated revenues
1.70.250	Revenue	Revised, AR to be added to monthly financial report
1.70.310	Expenditures	Revised, notify vendors of 45 days to process invoices
1.70.395	Payroll	Updated, military leave at 21 days per 2008 SB 6447
1.70.600	Reserve	Updated, deleted capital trial reserve policy and added the emergency reserve policy

(d) This financial policies and procedures chapter is intended to provide guidance to Chelan County department heads and elected officials in properly discharging their financial responsibilities. The procedures, policies, and practices set forth below do not create an express or implied contract between Chelan County and its employees, nor are they to be viewed as making any promises or creating contractual rights of any kind. The information contained in this chapter represents guidelines only, and Chelan County reserves the right to limit, modify, or terminate any of these policies, procedures, or practices at any time, at its sole discretion. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07).

1.70.010 Budget—Purpose.

The budget serves a number of functions. At the most basic level it is a legal document that gives county officials the authority to incur obligations and pay expenses. It is also a comprehensive business plan that should provide the following elements: public policies, a financial plan, an operations guide, and serve as a communications device. Chelan County budgets on an annual calendar-year basis. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.020 Budget—Schedule.

Chapter 36.40 RCW prescribes the major steps in budget preparation along with a suggested schedule for completion of each step. However, the board of commissioners may also set other dates relating to the budget process, including but not limited to the dates set in RCW 36.40.010, 36.40.050 and 36.81.130 to conform to the alternate date for the budget hearing. Chelan County typically adopts the alternate dates in July.

The major steps in budget preparation include:

(1) Call for Estimates. County auditor notifies all officials to file budget requests and projected revenues for ensuing fiscal year (RCW 36.40.010).

(2) Filing of estimates with auditor or chief financial officer by all officials (RCW 36.40.010).

(3) Preliminary county budget prepared by auditor or chief financial officer submitted to board of commissioners (RCW 36.40.050).

(4) Preliminary budget hearing by board of commissioners (RCW 36.40.070).

(5) Alternative preliminary budget hearing by board of commissioners (RCW 36.40.071).

(6) Final budget adoption by board of commissioners (RCW 36.40.080).

Per RCW 36.40.071, the board of commissioners may meet for the purpose of holding a budget hearing, provided for in RCW 36.40.070, on the first Monday in December. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.030 Budget—Adjustments.

Budget transfers are used when changes in spending during the year result in a deficit in one expenditure line item and an excess in another line item. Budget transfers may be made from the excess line to the deficit line to keep their operating budget correct. All requests for budget transfers shall be submitted, with department head approval and justification, to the board of commissioners for consideration and approval. Board of commissioners’ approval is required prior to budget expenditure.

Supplemental appropriations are required when a department receives a new funding source that was not planned for during the budget process and will result in additional expenditures or when there are additional expenditures that were not planned for during the budget process. Supplemental appropriations must be advertised for two weeks prior to board approval.

Nondebatable emergency adjustments may be made due to an emergency caused by fire, flood, explosion, storm, earthquake, epidemic, riot or insurrection, or for the immediate preservation of public health or any other emergency as defined by RCW 36.40.180.

Emergencies other than nondebatable may be made when there is a public emergency that does not fall under the qualifications of RCW 36.40.180. Emergencies other than nondebatable must be advertised for one week prior to board approval.

All requests for supplemental or emergency appropriations will be submitted by the department head to the board of commissioners for consideration and approval. The request shall be in writing, containing the facts constituting the supplemental or emergency appropriations and the estimated amount of additional budget required. Supplemental appropriations are done monthly. The request should be submitted by noon on the the first Wednesday of each month. The supplemental appropriation will be set for hearing on the fourth Tuesday of the month. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.040 Budget—Performance measurements.

The departments will prepare financial, service and program performance measures as an important component of decision making and incorporate them in the budget. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.050 Budget—Public fees and charges.

The full cost of services shall be evaluated annually during the budget process to provide a basis for setting the charge or fee. Full cost incorporates direct and indirect costs. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.060 Budget—Operating budget.

The operating budget is the central financial planning document that encompasses all operating revenue and expenditure decisions. It establishes the level of services to be provided by each department within the restrictions of anticipated county revenues.

Current expenditures will be paid for with current revenues. One-time expenditures, or revenues of a limited or indefinite term, should be used for capital projects or one-time operating expenditures to ensure that no core services are lost when such revenues are reduced or discontinued. No operating deficits in any fund balance shall be incurred at year end.

High priority will be given to expenditures that will reduce future operating costs, such as increased utilization of technology and equipment and prudent business methods.

If expenditure reductions are necessary, complete elimination of a specific, nonmandatory service is preferable to lowering the quality of existing programs. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.070 Budget—Capital budget.

A comprehensive six-year plan for capital improvements will be prepared per Chapter 82.46 RCW, updated, and included in the yearly budget. Capital project proposals should include cost estimates that are complete, reliable, and attainable. Cost estimates should be based on a thorough analysis of the project and are expected to be reliable and complete. Funding sources should also be reliable and complete and the capital project will not be budgeted unless there are reasonable expectations that revenues will be available to pay for them.

Changes to the comprehensive six-year plan may be made annually during the budget process or concurrently with an amendment of the county budget, per RCW 36.70A.130(2)(a)(iii). Any revision to the comprehensive plan would have to go to the state for review sixty days prior to adoption.

The county will provide for adequate maintenance and appropriate replacement of capital facilities and equipment. The county will also provide for maintenance schedules to ensure that facilities and equipment are maintained so as to maximize their useful lifespan. These amounts will be reflected in the capital budget plan. The intent of the capital budget plan is to maintain all assets at an adequate level in order to protect the county’s capital investment and to minimize unexpected future maintenance and replacement costs. Funding of repair and replacement schedule projects will be the funding priority before discretionary capital projects.

Decision making for capital improvements will be coordinated with the operating budget to make effective use of the county’s limited resources for operating and maintaining facilities and capital projects. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.080 Budget—Central service costs.

Central service costs are the annual charge to nongeneral funds for the services provided by the general fund. Central service costs shall be prepared with a detailed indirect cost allocation plan. The internal indirect cost allocation plan shall be developed each year with audited expenditures to identify and distribute costs of services provided by central service departments to funds outside of the general fund. The auditor’s office will prepare this after the yearly audit by the State Auditor’s Office and the board of commissioners will adopt it by resolution for the following budget year. These will be the actual costs charged to funds outside of the general fund. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.090 Basis of accounting.

The basis of accounting used determines when revenues and expenditures/expenses are recognized in the accounts and reported in the financial statements.

All governmental funds (general, special revenue, debt service, capital projects, and permanent funds) are accounted for using the modified accrual basis of accounting. Their revenue is recognized when they become measurable and available. In order to be available, revenues must be subject to collection within the current period, or after the end of the period, but in time to pay liabilities outstanding at the end of the current period.

All proprietary funds (enterprise, internal service, investment, pension, private-purpose, and agency funds) are accounted for using the accrual basis of accounting. Under this basis of accounting, the revenues are recognized when they are earned and their expenses are recognized when they are incurred.

Only the minimum number of funds consistent with legal and operating requirements should be established, because unnecessary funds result in inflexibility, undue complexity, and inefficient financial administration. The board of commissioners has the authority to create funds by resolution. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.100 Accounting policy.

Chelan County will establish and maintain the highest standard of accounting practices. Accounting and budgetary systems will conform to Generally Accepted Accounting Principles, the State of Washington Budgeting Accounting Reporting System (BARS) and local regulations. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.110 Financial systems.

Chelan County will strive to provide the technological tools, information systems support and uninterrupted level of information systems service to sustain the successful implementation and maintenance of a sound, reliable and efficient financial management system.

The financial system shall also protect county departments against unauthorized access through information systems security and controls while allowing staff the ability to access information directly from the system. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.120 Financial reporting.

Full disclosure will be provided in all county financial reports and bond representations.

Reports outlining the status of revenues and expenditures shall be prepared monthly on accrual basis by the auditor’s office. It will be distributed to the board, elected officials, department heads, and any other interested party.

An annual financial report will be prepared by the auditor’s office in a timely basis to meet or exceed the State Auditor’s Office standards. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.130 State audits.

An annual audit will be performed by the State Auditor’s Office and include the issuance of a financial opinion. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.140 Cash—Deposits—Handling.

Cash deposits from the various operations are remitted to the treasurer’s office, and RCW 36.29.010 stipulates the treasurer’s responsibilities over cash. A cash handler’s policy and certification program is offered to all county employees on an ongoing basis. All county employees or new hires who handle cash are required to attend one of these classes. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.150 Cash—Receipting.

Departments that receive cash for services or fees are required to evidence receipt by prenumbered cash receipts. Cash shall be deemed to include cash, checks, or other financial instruments that can be converted to cash. Checks should be endorsed immediately and must be maintained with other cash items in a locked and secure location. Cash receipts must be balanced and deposited with the treasurer’s office on a daily basis. The size and amount of deposits vary by location and department. Alternative receipt practices may be adopted only by approval of the county treasurer. Wherever possible, the functions of receipting, balancing and depositing should be performed by different personnel to ensure adequate safeguards. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.160 Petty cash/revolving funds.

Departments may maintain petty cash or revolving funds for the payment of incidental expenses only with the treasurer’s prior approval and evidence of accounting ability to maintain the fund to the county standard. These funds are not intended for repository of cash receipts in the normal course of business and must not be commingled. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.170 Bank accounts.

The use of bank or other financial institution accounts for the purpose of depositing or maintaining public funds is forbidden without the prior consent and knowledge of the Chelan County treasurer, his office and staff. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.180 Investments.

The county treasurer has responsibility for the investment of public funds under RCW 36.29.020. Investments are carried at book value and investments are made by fund. Investments are held by a third party trust agreement on a delivery versus payment basis and are booked electronically. Authorization to invest funds of a district or related entity is required in writing by an appointed investment officer for the district. The county treasurer invests the county’s short-term cash and reserves for maximum return according to the investment policy established by the Chelan County treasurer and the county investment committee. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.190 Investment committee.

An investment policy is adopted and reviewed annually by the county investment committee (RCW 36.29.020). This committee is comprised of the county treasurer, the county auditor, and the chair of the board of commissioners. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.200 Grants.

Grant applications will be reviewed by the county with due consideration being given to whether locally generated revenues will be required to support these programs when outside funding is no longer available. Grants may be accepted if the county can be assured that the total costs and requirements of accepting funds are known and judged not to adversely impact the county’s general fund. Future impacts on the budget will be identified and analyzed prior to approval of grant contracts.

Grant-related revenue and expenditures (including matching funds provided by the county) shall be authorized, within policy, and properly accounted for in the project accounting module of the financial management system according to federal, state and local regulations and the terms and conditions of the grant award.

The responsibility for understanding and adhering to county, state and federal regulations, policies or procedures belongs to the managing department of that particular grant.

The departments shall also use applicable cost principles from OMB Circular A-87 to determine the reasonableness, allowability, and allocability of costs applicable to federal grants and contracts.

The county shall recover the full cost of providing central services to funds with grant revenue as permitted under the grant agreement and OMB Circular A-87.

For billing indirect costs to grants, use the rate determined by the simplified external indirect cost allocation plan, which is calculated by the auditor’s office. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.210 Debt policy.

Deficit financing and borrowing will not be used to support ongoing county services and operations. Expenses will be reduced to conform to the long-term revenue forecast.

Interfund loans are permissible to cover temporary gaps in cash flow, but only by resolution that states a short-term repayment schedule and at an interest rate based on the Washington State Local Government Investment Pool. The lending fund must have excess funds available and the use of those funds will not have an impact on the fund’s current operations.

If the board of county commissioners approves lease purchasing, the useful life of the item must be equal or greater than the length of the lease. The fixed asset information form must be provided by the department concurrent with the submission of the lease documents.

Debt payments shall not extend beyond the estimated useful life of the project being funded.

The treasurer will maintain good communications with bond rating agencies concerning its financial condition, and will take all appropriate and responsible measures to sustain quality bond ratings with continuous financial management efforts to enhance the county’s bond ratings. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.220 Authority for county indebtedness.

Department heads do not have the authority to commit Chelan County to any indebtedness.

Indebtedness includes, but is not limited to, leases, lease-purchases, rental agreements, contracts, grants, and other obligations of short- and long-term debt.

The Chelan County commissioners shall be signatory to any obligations requiring short- or long-term indebtedness, unless the commission has given written authority to exempt certain contracts. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.230 Revenue.

The county will follow a vigorous policy of collecting all county revenues.

Revenue will be coded to the correct account per the Washington State BARS (Budgeting, Accounting, and Recording System). (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.240 Revenue—Accounts receivable.

All billings for services, goods, and reimbursements for funds must be done through the centralized AR system. This will assist with the proper recording of the revenue when it arrives in the treasurer’s office.

If revenue is anticipated but the amount is unknown, the department anticipating the revenue shall notify the treasurer’s office prior to receipt to ensure proper recording.

There will be adequate segregation of duties relating to accounts receivable. To accomplish this, the billing, cash collection, recording, and reconciliation functions should be separated. If this level of segregation of duties is not possible, compensating controls should be implemented to ensure a proper division of functional responsibility. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.250 Revenue—Collection policy.

The collection policy and any action plan shall be established by the elected official or department head, recognizing state requirements and the unique characteristics of the clients served by that department. It is the responsibility of each department to collect their accounts receivable. The following is an example of dealing with past due accounts:

Departments will review their outstanding receivables on a timely basis for past due accounts. Accounts receivable aging reports are available in the EDEN system in order to determine which accounts are past due. The oldest outstanding accounts receivables will be presented with the monthly financial report for review on a monthly basis at the department head meetings.

A past due notice should be issued for all accounts that are thirty days past due. Notices shall be issued by the responsible department every thirty days over a ninety-day period. Notices should be distinguished as “first notice,” “second notice” and “final notice,” with the final notice indicating that the account could go to a collection agency if not paid. At the discretion of the department or elected official, the initial notice period can be extended in limited circumstances. No receivables should be due for longer than ninety days without past due notices being issued. Receivables that are outstanding over one hundred twenty days should be sent to the prosecuting attorney’s office for legal action.

As soon as accounts receivable are identified as uncollectible or erroneous, the department should request a write-off or correction of error from the auditor’s office. The auditor’s office will notify the board of commissioners of any write-off of uncollectible receivables. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.260 Revenue—Refunds versus reimbursements.

Cash refunds from vendors are payments received for returned goods; for services paid for, but not used; or for overpayments. These are the only items that may reduce expenditures. Payments received by any outside agency as reimbursements for goods or services are not refunds and should be recorded as revenue, not as a reduction of expenditures.

If the refund is received after the end of the accounting period in which the original expenditure was made, and the dollar amount of the refund is not material, BARS revenue account number 36990 will be credited for the amount of the refund.

If the refund is received after the end of the accounting period in which the original expenditure was made, and the dollar amount of the refund is material, BARS revenue account number 38880 will be credited for the amount of the refund. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.270 Expenditures.

Expenditures will be coded to the correct account per the Washington State BARS (Budgeting, Accounting, and Recording System).

The county commissioners are the only officials that have authority to commit the county to any indebtedness. The term “indebtedness” in this policy includes leases, lease-purchases, rental agreements, contracts, grants, and any obligation of short- or long-term debt. All of these obligations will have prior approval of the commissioners before any related payment is made unless the commission has given written authority to exempt certain contracts. The certifying official will be verifying with their signature on the voucher that the payment of the indebtedness is authorized by the commissioners and that they have signed any related contract. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.280 Expenditures—Budget appropriation and monitoring.

The board of county commissioners adopts the budget at the fund level, but departments must also comply with budget appropriation at the object level. The county will not process expenditures in excess of the total appropriation for that fund. Departments are responsible for monitoring their budget expenditures. This is especially important during the last quarter of the budget year. Invoices in excess of budget will not be paid until the budget allows. No expenditures will be paid without commissioners’ approval.

All Chelan County funds (except public works funds) shall adhere to the following:

(1) Individual line items within salary and benefits (BARS category 10s and 20s) may be exceeded; however, total salary and benefits combined shall not be exceeded without board approval of a budget adjustment.

(2) Individual line items within supplies, services, intergovernmental services, capital outlay, debt service interest, debt service payments, and interfund payments (BARS categories 30s, 40s, 50s, 60s, 70s, 80s and 90s) may be exceeded; however, total supplies, services, intergovernmental services, capital outlay, debt service interest, debt service payments, and interfund payments combined shall not be exceeded without board approval of a budget adjustment. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.290 Travel/business expenditures.

The amount, date, place, and business purpose of travel must be proven and expenses must not be lavish, but reasonable based on circumstances.

(1) Registrations. Registration expenses shall be allowed for attendance at meetings, conferences, or conventions called for a purpose that would be beneficial to Chelan County.

(2) Travel.

(A) All employees, other than elected officials, who do not have an assigned automobile, must use a county vehicle for any county business that requires driving. If a county vehicle is not available through motor pool, or extenuating circumstances dictate, an employee may use a personally owned vehicle with department head approval. Mileage reimbursement for the use of a personal automobile will be at the current IRS mileage rate.

(B) Other actual transportation costs in connection with county business shall be reimbursed. Receipts will be required as a condition of reimbursement.

(C) Each Chelan County commissioner is hereby authorized to waive his/her right to having a county vehicle furnished and to provide his/her private automobile for all official transportation within the county, for which payment of five hundred dollars per month shall be made. This payment shall be in lieu of use of any county-owned vehicle and shall be full payment of all automobile expenses incurred for all business-related travel within Chelan and Douglas Counties. In addition, reimbursement for official travel outside of Chelan County is authorized at the current per-mile rate and said mileage will commence and terminate at the county line. Each commissioner electing monthly reimbursement shall provide evidence that Chelan County is named as an additional insured on his/her personal automobile policy. The county is authorized to provide a county-owned radio for two-way communications in a commissioner’s privately owned vehicle.

(3) Lodging. Reasonable expenses for overnight lodging are allowable expenses for the county. If an employee and his/her spouse occupy a room, the county will allow for the single rate.

(4) Meals. Employees may be reimbursed for meal expenses when:

(A) The employee travels overnight for county-related business; or

(B) The employee is in travel status for three hours beyond their regular work schedule for a single day. The three hours may consist of hours occurring before, after, or a combination of both before and after the employee’s regular work schedule for the day. To receive the meal reimbursement for both breakfast and dinner, at least one of the three hours must be before and at least one of the three hours must be after the employee’s regular work schedule. An employee must be in travel status during the entire work day to qualify for meal reimbursements. The employee may not stop for a meal just to meet the three-hour rule. Single-day meal reimbursements are considered to be taxable wages according to the IRS and will be included as gross taxable income through payroll. Employees must fill out a separate single-day reimbursement form for meals only and submit it with payroll.

Per diem rates of meals shall be reimbursed by the county at a rate of ten dollars for breakfast, fourteen dollars for lunch, and twenty dollars for dinner, including a reasonable amount for tips. On the days of departure and return, an employee receives three-quarters of the daily per diem (thirty-three dollars). If an employee’s position requires attendance at a meeting where there is no choice in meals and the cost is more than the maximum allowed, a receipt shall be required for reimbursement. At the discretion of the department head or elected official, receipts may be required department-wide.

An employee may elect to use the IRS per diem rates rather than the county’s rates if the employee supports the IRS per diem rates of the appropriate travel destination. IRS per diem rates may be found in IRS publication 1542 at www.irs.gov. The department head must confirm the appropriateness of the IRS documentation and per diem rates.

When the cost of a meal is included in the registration fee of a meeting, conference, or hotel (such as continental breakfast), the traveler cannot claim the meal allowance for the identified meal on their claim for expenses. Reimbursement will not be made if employees choose not to eat at the conference when the meals are included in the registration.

When the cost of a meal is not included in the registration fee of an official meeting or conference, reimbursement may be allowed when the meals are incorporated within the agenda of the official meeting or conference.

Reimbursements may also be allowed for meals in connection with official meetings, conferences, conventions, or special county business wherein attendance is required and authorized by the elected official or department head.

Meals shall not be charged to the county Visa. Meals charged to a hotel bill must be paid by the employee upon check-out (see Section 1.70.300, Advanced travel). The meal charges may be reimbursed with a per diem on the personal expense voucher.

Note: When the requirements are not met for reimbursement within Chelan and Douglas Counties, the board of commissioners may allow reimbursement on a case-by-case basis.

Reimbursement shall not be allowed for expenses incurred by, or on behalf of, any other person, except when transporting persons under custody. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2005-118, 12/19/05; Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03; Res. 90-2, 1/16/90).

1.70.300 Advanced travel.

The county has established an advance travel revolving fund to be used solely for advancing money for travel purposes. It is to be used to defray necessary costs incurred while performing official duties when such costs would be a hardship on the involved employee. The amount will be limited to one hundred percent of the reasonable estimate and the form should be turned in to the auditor’s accounting office as early as possible before the travel is planned. If the employee is delinquent in accounting for or repaying a prior advance, no additional advances can be made.

Travel advances cannot be made for any mileage per diem.

Travel advances cannot be made for meals during single-day travel. Reimbursements for single-day travel must be made through payroll as mentioned in Section 1.70.290(4).

The advanced travel fund will be used solely for travel advances, not direct payments to vendors. It will not be used for personal loans, preregistration fees, direct payments of airline tickets, or reimbursements to employees or officers for travel already incurred.

Funds will only be released on the day preceding travel. Within fifteen business days of return, the employee must fill out a personal expense form and submit that to the auditor’s office for reimbursement and to reimburse advance travel. Any excess spent will be reimbursed with proper receipts through the payables process. Any unexpended portion of the advance should accompany the personal expense voucher.

Any default in accounting for or repaying the advance shall render the full amount which is unpaid immediately due and payable with interest at the annual rate of ten percent from the date of default until repaid (RCW 42.24.140). To protect against any losses for advances, the county reserves the right to withhold any and all funds owed from the elected official’s or employee’s paycheck; provided, that:

(1) The auditor’s office provides written notice upon realization of money owed to the county.

(2) Payment is required within thirty days of written notice. Failure to respond to the auditor’s written notice will result in a deduction from the employee’s paycheck within thirty days.

(3) If desired, the employee may contest what is owed to allow due process.

(4) First contact should be made with the auditor’s office in case there were any errors when determining the amount owed by an employee. If the dispute cannot be resolved by the auditor’s office, employees should then notify their department head for further resolution. At the discretion of the department head, disputes that cannot be resolved may be given to the county commissioners for final resolution. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.304 Nontravel food purchases.

Food may not be purchased for employees with county funds unless the county is hosting an official meeting at which noncounty employees are in attendance. Food may also be purchased with county funds if there is an infrequent, special event for which it is beneficial to have the employees remain on the premises beyond their normal working hours. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06).

1.70.308 Volunteer recognition.

Chelan County frequently receives assistance from volunteers in the community. County departments may provide nonmonetary recognition for volunteers not to exceed fifty dollars per volunteer per year. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06).

1.70.310 Purchasing.

In accordance with RCW 36.32.245, contracting for the purchase of materials, equipment, supplies or project services must be subject to a competitive bid process. The following is a summary of requirements for purchases made by Chelan County. For further details, please refer to the referenced RCWs:

Purchase/Contract for Services
Amount (dollars)	Process	Authorization
Less than 5,000 and within the budget year	Voucher	Budget
5,000 and over or beyond the budget year	Written contract	Board of commissioners

Purchase of Equipment, Materials and Supplies
Amount (dollars)	Process	Authorization
Less than 5,000	Voucher	Budget, RCW 36.32.245
5,000—25,000	1. Vendor list 2. May use bids procured by the state of Washington	RCW 39.04.190
Over 25,000	Formal bids	RCW 36.32.250

Public Works Projects
Amount (dollars)	Process	Authorization
0—10,000	Voucher	Budget
10,000—35,000	1. Limited small works process	RCW 39.04.155; Road projects, RCW 36.77.075



	2. Small works roster	RCW 39.04.155; Road projects, RCW 36.77.075
	3. Formal bids	RCW 36.32.250
35,000—200,000	1. Small works roster	RCW 39.04.155; Road projects, RCW 36.77.075
35,000—200,000	2. Formal bids	RCW 36.32.250; Road projects, RCW 36.77.075
200,000 and over	Formal bids	RCW 36.32.250; Road projects, RCW 36.77.075

(1) Vendor List.

(A) Twice annually, Chelan County commissioners shall publish a notice soliciting names of vendors for a county vendor list.

(B) For purchases between five thousand dollars and twenty-five thousand dollars, county departments shall secure at least three bids (if possible) from different vendors on the vendor list by telephone or in writing to assure a competitive bid price.

(C) Prior to actual purchase, the bids, with a recommendation from the department, shall be presented to the board of commissioners for review and approval of the award to the lowest responsible bidder.

(D) Immediately after the award is made, the bid quotations shall be recorded and made available for public inspection and telephone inquiry.

(E) At least every two months, Chelan County commissioners shall publish a list of all awarded contracts valued at more than five thousand dollars but not more than twenty-five thousand dollars. The list must contain the name of the vendor, the amount of the contract, a brief description of items purchased, and the date of the award.

(2) Small Works Roster.

(A) In January of each year, Chelan County public works shall publish a notice soliciting names of contractors for a small works roster. When other departments have small works projects, they may independently solicit vendors to be added to the small works roster.

(B) The roster shall consist of responsible contractors that are properly licensed to perform work in Washington State.

(C) Departments requiring contract work shall invite bids from at least five contractors, whenever possible. The bid invitation shall include the nature and scope of the work and materials and equipment to be furnished.

(D) Bids shall be submitted to the board of commissioners, with recommendations from the department, for review and approval prior to the award to the lowest responsible bidder.

(E) Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection and available for telephone inquiry.

For all new individual vendors, a completed W-9 must be included before payment to that vendor. Vendors should be notified that payments are typically made within forty-five days of receipt of invoice.

Purchases above five thousand dollars per item, including freight and tax, must be approved by the board of county commissioners prior to purchase. New items or improvements that extend the life of an existing asset for more than a year, and that cost above five thousand dollars, will be capitalized. All computer and information system equipment/software purchases must be approved by the information technology department.

Adequate documentation will be attached to invoice edit listings to assure that it supports a valid, legally authorized purchase.

Payments will only be made on original invoices. If the original invoice has been lost, the preparer can fill out a certification that the original has been lost and not paid.

Only current charges, no interest, will be paid.

Memberships, dues, subscriptions, and maintenance agreements must be paid in a consistent manner from year to year. If a membership is paid in December, it should always be paid in December in future years. All of the before-mentioned items are typically paid on an annual basis, except for subscriptions, which may be paid for periods not in excess of three years. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.320 Credit memos.

Credit memos will be entered into the financial management system as credit memos and not as negative amounts on current invoices. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.330 Manual warrants.

This applies to warrants produced outside of the normal weekly issue. Manual warrants are only issued if events beyond the control of the requestor create an immediate need for the warrant, which if delayed would result in a fine, penalty or other costly impact on the county, or if the immediate need results from a court order or other legal constraint. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.340 Lost warrants.

The county will not reissue a warrant due to the loss of the original warrant, until a notarized lost warrant affidavit is turned in to the auditor’s accounting office. A lost warrant affidavit may be turned in three weeks after the issue date of the original warrant, except in the case of a payroll warrant. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.350 Registered warrants.

Restricted cash flow and decreasing cash reserves require that Chelan County enlist the aid of other financial institutions to hold registered warrants. The Chelan County treasurer reserves the statutory authority to issue registered warrants but has available several other alternative arrangements to cover short-term financing. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.360 Credit cards.

The Chelan County commissioners shall select a credit card issuer to provide credit card services for the county. Each elected official as defined by RCW 36.16.030 may obtain a card through the issuer selected by the commissioners to be used for his or her department. Credit cards shall have a maximum credit limit of five thousand dollars. However, upon approval of the treasurer, the credit card limit may be increased up to ten thousand dollars. No balance shall be maintained on any card resulting in the payment of interest charges. Any finance charges or late fees will be paid personally by the department head/elected official.

Cash advances on credit cards are prohibited.

Credit cards obtained pursuant to this chapter are to remain in the custody of the appropriate elected official or such other county employee as they may authorize.

Except for gasoline credit cards currently in existence, all other credit cards in use by any county employees shall be cancelled no later than sixty days from the date of enactment of the resolution codified in this section, unless otherwise authorized by the board of commissioners.

Personal charges may not be made with a county credit card. Any charges which cannot be properly identified or which are not properly allowed shall be paid promptly by the card user by check. This includes finance charges, late fees, etc.

Retain credit card receipts with detail of purchases throughout the month. Once the credit card statement is received, reconcile receipts to the statement, attach to an invoice edit and send the edit, statement and receipts to the accounting office for payment. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.370 ER&R payments.

Per RCW 36.33A.050, charges for the rental of equipment and for providing materials, supplies, and services to any county office or department shall be paid monthly into the ER&R fund. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.380 Outside vendor credit accounts.

When the county has a credit balance on an outside vendor account, the balance must either be used within sixty days, or a reimbursement must be made from the vendor to the county. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.390 Adjusting journal entries.

All adjusting journal entries will be accounted for by maintaining a log including the date, posting number, description, and preparer’s and approver’s initials.

There will be adequate documentation attached to the adjusting journal entry that will explain the reasoning for the entry.

Departments or the accounting department may request an adjusting journal entry, but the only positions that may post are the financial services manager or the senior accountant. The approver may not be the same person as the preparer. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.395 Payroll.

Please see the Chelan County employee handbook for detailed payroll and benefit policies. (Res. 2008-172 (part), 12/15/08).

1.70.400 Payroll—New hires/terminations.

Each department is responsible for the terminations of its employees and for the orientation of its newly hired employees.

When an employee terminates, contact payroll as soon as you have knowledge of a termination. Fill out a payroll change notice and have it signed by the commissioners. The supervisor should conduct an exit interview prior to official termination. All property assigned to the employee should be turned in to the supervisor and the employment termination checklist (on auditor’s website) should be filled out and turned in to the auditor’s accounting office before the final pay warrant is issued. A COBRA advice (on auditor’s website) shall also be filled out during the exit interview. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.410 Payroll change notices.

In order to have payroll changes entered into the financial system before payroll has to be entered, have payroll change notices turned in to the commissioners’ office two weeks before the effective date of the change. This will ensure that the change will be made in time for payroll to be processed. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.520 Capital assets.

Capital assets will be reported at acquisition cost. Capital assets are defined as “new items or improvements that extend the life of an existing asset for more than a year that cost above five thousand dollars.” The cost of a capital asset should include ancillary charges necessary to place the asset into its intended location and condition for use. Donated capital assets will be reported at their estimated fair value at the time of acquisition plus ancillary charges. If the donated asset was recently constructed and the donor can provide the asset’s actual construction cost, that estimate could be used as a basis of capitalizing the asset. Otherwise, the estimated fair value at acquisition may be calculated from manufacturer’s catalogs or price quotes in periodicals, recent sales of comparable assets, or other reliable information. Another way to estimate fair value might be to obtain an estimate made by the public works department.

Capital assets shall be depreciated over their estimated useful lives unless they are land or land improvements.

All capital improvements shall be in the capital budget and capital facilities plan. In budgeting for capital improvements a review for impact on operating budget and long-term maintenance shall be done to minimize unforeseen future costs.

The capital expenditures will neither be spent nor budgeted for without a revenue source and until that revenue source is available.

The use of the project accounting module of the financial system is mandatory for all construction projects. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.530 Capital assets—Infrastructure assets.

GASB 34 requires infrastructure assets to be reported. Chelan County uses the depreciation method to report infrastructure assets. Infrastructure assets are reported when they have an initial cost of more than one hundred thousand dollars and a useful life of more than one year. For the 2003 fiscal year, the county shall capitalize and report all major infrastructure assets acquired or substantially improved during 2003. Before 2007, the county shall capitalize and report all major infrastructure assets acquired or substantially improved since January 1, 1980.

The initial capitalization shall be based on historical cost. If that cannot be determined, then estimated historical cost may be used. Estimated historical cost can be calculated by using the current replacement cost and using price-level indexes back to the acquisition year. For estimated useful lives use (1) general guidelines obtained from professional or industry organizations, (2) information for comparable assets of other governments, or (3) internal information. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.540 Capital assets—Real estate excise tax (REET) funds.

The state of Washington is authorized to levy a real estate excise tax on all sales of real estate. A locally imposed tax is also authorized. REET I and II taxes are collected by Chelan County. Chapter 82.46 RCW governs the REET funds.

REET I funds can be imposed by all cities and counties. In order to impose REET II, the county must be planning under the Growth Management Act.

REET I dollars must be spent solely on capital projects that are listed in the capital facilities plan element of their comprehensive plan. Those include public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; and administrative and judicial facilities.

REET II dollars must be spent on public works projects in the capital facilities plan element of their comprehensive plan such as planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, and planning, construction, reconstruction, repair, rehabilitation, or improvement of parks. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.550 Capital assets—Computer software/hardware.

As stated in the expenditures sections of this chapter, all computer and information system equipment/software purchases must be approved by the director of information technology. Information technology shall also maintain the complete inventory of all computer equipment.

All computer equipment shall be tracked by serial number. Information technology will have a listing of all computer equipment. The computer equipment listing will contain the following: department, user, type, name, description, TCP/IP, monitor, and serial number.

Computer equipment tagged for removal will be updated with the appropriate inventory department code (*AUC-Auction, *DSP-Disposal, *SAL-Salvage) from an existing county department or from storage.

The computer equipment listing will be printed and signed off by the board of county commissioners prior to removal. A copy of the signed inventory list will be retained by information technology for the State Auditor.

Annually, each county department will verify and sign off on their inventory of computer equipment. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.560 Capitalized asset reporting (RCW 36.32.210, 36.32.215 and Resolution 99-97).

The board of commissioners shall, on the first Monday of March each year, file with the county auditor a statement verified by oath showing for the twelve-month period ending December 31st of the preceding year, the following:

(1) A full and complete inventory of all capitalized assets shall be kept in accordance with standards established by the State Auditor. This inventory shall be segregated to show the following subheads:

(A) The assets, including equipment, on hand, together with a statement of the date when acquired, the amount paid therefor, the estimated life thereof and a sufficient description to fully identify such property;

(B) All equipment of every kind or nature sold or disposed of in any manner during such preceding twelve-month period, together with the name of the purchaser, the amount paid therefor, whether or not the same was sold at public or private sale, the reason for such disposal and a sufficient description to fully identify the same;

(C) All the equipment purchased during said period, together with the date of purchase, the amount paid therefor, whether or not the same was bought under competitive bidding, the price paid therefor and the probable life thereof, the reason for making the purchase and a sufficient description to fully identify such property.

(2) The person to whom such money or any part thereof was paid and why so paid and the date of such payment.

(3) Inventories shall be filed with the county auditor as a public record and shall be open to the inspection of the public.

The auditor, at the request of the board of county commissioners, can provide a list of assets in the financial management system the first week in February. The list will partially allow the commissioners to create the inventory report required as specified above, and file such report with the recording department of the auditor’s office. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.570 ER&R rates—Method of charges—Usage rate or by yearly budget.

(a) Policy. Rates for the rental of equipment owned by the equipment rental and revolving fund shall be set to cover all costs of maintenance and repair, material and supplies consumed in operating or maintaining the equipment and the future replacement thereof.

Rental rates should be reviewed on a yearly basis, by equipment type or similar asset groups, and adjusted as needed by resolution approved by the board of county commissioners.

(b) Procedures. Determine the actual cost of the equipment by adding up all costs associated with generating the equipment operational as intended.

Determine an estimate of total actual cost to cover the regular maintenance costs, administration costs, and the difference in replacement cost and current actual cost. Establish the appropriate allocation basis over the useful life of the equipment. Add all costs established above and divide by the appropriate basis of allocation to arrive at a unit rate. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.580 Reserve policy.

Maintenance of an adequate fund balance for each fund to ensure sufficient resources for cash flow and to mitigate revenue shortages or emergencies shall be a priority. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.590 Reserve policy—Strategic reserve.

Chelan County shall maintain a strategic reserve of seven percent of its estimated annual general fund expenditures. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).

1.70.600 Reserve policy—Emergency reserve.

As part of the strategic reserve, Chelan County shall maintain an emergency reserve in the general fund that can only be accessed by commissioner resolution. The initial amount of the reserve shall be five hundred fifty thousand dollars. (Res. 2008-172 (part), 12/15/08: Res. 2007-170 (part), 12/17/07: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06: Res. 2005-123 (part), 12/20/05: Res. 2004-140 (part), 12/20/04: Res. 2003-162 (part), 12/16/03).