Chapter 3.25
PAYMENT OF CLAIMS OR OBLIGATIONS OF THE CITY

Sections:

Article I. Procedure for the Payment of Claims Made Against City Prior to Council Approval

3.25.010    Established – Payment of claims.

3.25.020    Official bonds required.

3.25.030    Internal control.

3.25.040    Approval by Council.

3.25.050    Disapproval by Council.

Article II. Payment of Obligations – Authority

3.25.060    Payments made by check – Authorized signatories.

3.25.070    Audit committee established – Duties.

Article I. Procedure for the Payment of Claims Made Against City Prior to Council Approval

3.25.010 Established – Payment of claims.

The City’s finance manager may issue checks in payment of claims before the City Council has acted to approve such claims, providing that the conditions of this chapter and RCW 42.24.180 have been met. (Ord. 34-97 § 1)

3.25.020 Official bonds required.

The auditing officer and the officer designated to sign the checks must, prior to being able to issue checks without Council approval, each have furnished an official bond for the faithful discharge of their duties in an amount not less than $50,000. (Ord. 34-97 § 2)

3.25.030 Internal control.

Before any checks may be issued prior to Council approval, the Council shall adopt contracting, hiring and disbursing policies that implement effective internal control over the issuance of any checks. (Ord. 34-97 § 3)

3.25.040 Approval by Council.

The City Council shall review the documentation supporting any claim paid pursuant to this chapter, and shall approve all checks issued in payment of

such claims at a regularly scheduled public meeting within one month of the date of issuance of the check. (Ord. 34-97 § 4)

3.25.050 Disapproval by Council.

If, upon review, the City Council shall disapprove any claim paid, the officers of the City who are designated by statute to sign the checks shall jointly cause the disapproved claims to be recognized as receivables of the City of Covington and shall pursue collection diligently until the amounts disapproved are collected or until the City Council is satisfied and approves the claims. (Ord. 34-97 § 5)

Article II. Payment of Obligations – Authority

3.25.060 Payments made by check – Authorized signatories.

As authorized by RCW 35A.40.020, payment of claims or obligations of the City shall be by check. All City checks shall be drawn at the Bank of America, Covington Branch, a qualified public depository. The City Manager, Finance Director and Council members authorized by resolution may sign City checks. Each City check shall be executed by two authorized signatories, with at least one of the signatories being either the City Manager or the Finance Director. (Ord. 104-98 § 2)

3.25.070 Audit committee established – Duties.

The Council hereby creates a permanent audit committee of the City Council which shall consist of three members who shall be designated by resolution. It shall be the duty of the audit committee to review all of the finances and accounting of the City in cooperation with the City Finance Director. All members of the audit committee shall be authorized to sign checks as provided in CMC 3.25.060. (Ord. 104-98 § 3)