Chapter 1.70
FINANCIAL POLICIES*

Sections:

1.70.005    Overview.

1.70.010    Budget—Purpose.

1.70.020    Budget—Schedule.

1.70.030    Budget—Adjustments.

1.70.060    Budget—Operating budget.

1.70.070    Budget—Capital budget.

1.70.080    Budget—Central service costs.

1.70.090    Basis of accounting.

1.70.100    Accounting policy.

1.70.110    Financial systems.

1.70.120    Financial reporting.

1.70.130    State audits.

1.70.140    Cash—Deposits—Handling.

1.70.150    Cash—Receipting.

1.70.160    Petty cash/revolving funds.

1.70.170    Bank accounts.

1.70.180    Investments.

1.70.190    Investment committee.

1.70.200    Grants and federal or state funding.

1.70.205    Federal or state funding worksheets—Federal policy.

1.70.210    Debt policy.

1.70.220    Authority for county indebtedness.

1.70.230    Revenue.

1.70.240    Revenue—Accounts receivable.

1.70.250    Revenue—Collection policy.

1.70.260    Revenue—Refunds versus reimbursements.

1.70.265    Revenue—Public fees and charges.

1.70.270    Expenditures.

1.70.280    Expenditures—Budget appropriation and monitoring.

1.70.290    Travel/business expenditures.

1.70.304    Nontravel food purchases.

1.70.308    Recognition.

1.70.310    Purchasing.

1.70.320    Credit memos.

1.70.330    Manual warrants.

1.70.340    Lost warrants.

1.70.350    Registered warrants.

1.70.360    Credit cards.

1.70.370    Authorization for credit cards.

1.70.380    Outside vendor credit accounts.

1.70.385    Memorials/flowers.

1.70.390    Adjusting journal entries.

1.70.395    Payroll.

1.70.400    Payroll—New hires/terminations.

1.70.410    Payroll change notices.

1.70.520    Capital assets.

1.70.530    Capital assets—Infrastructure assets.

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

1.70.550    Capital assets—Computer software/hardware.

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

1.70.572    Surplus county property.

1.70.576    Fund balance—Classification.

1.70.580    Fund balance—Minimum level.

*    Prior resolution history: Resos. 2003-150, 2002-113, 2002-95, 2002-49, 2001-106, 2000-131, 2000-71, 98-78, 97-82, 96-80, 95-98, 94-45, 93-53, 91-82, 91-46, 90-138, 90-2, 89-20, 81-6, 80-14, 76-34, 75-87, and 128-G, 1974.

1.70.005 Overview.

(1)    The 2019 version of the Chelan County financial policies and procedures was reviewed and revised by the financial policy committee, which consisted of the following members:

(A) Kevin Overbay, county commissioner (committee co-chair);

(B) Kristy Harris, financial services manager (committee co-chair);

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

(D) Sofia Bjorklund, natural resources chief accountant;

(E) Cathy Mulhall, county administrator;

(F) Penny Goehner, public works business manager;

(G) Nataliann Tutino, public works chief accountant;

(H) Kim Oglesbee, chief civil deputy;

(I) Nicole Thompson, regional jail business manager;

(J) Lynn Machado, community development office manager.

(2) The policy committee makes recommendations to the board of commissioners regarding this chapter. The board of commissioners annually approves the financial policies.

(3) Changes to the 2019 policies include:

Section

Subject

Changes

1.70.005

Overview

Membership changes

1.70.120

Accounting policy, financial systems and reporting

Reworded the monthly reporting statement

1.70.205

Grants and federal or state funding

Expanded conflict of interest policy

1.70.308

Expenditures

Changed language for recognition

1.70.310

Purchasing

Defined levels of purchasing/requirements thresholds, $5,000 to $10,000

1.70.572

Capital assets

Added disposition process for federally funded capital asset purchases

(4) 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08).

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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 first Wednesday of each month. The supplemental appropriation will be set for hearing on the fourth Tuesday of the month. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 projects 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 incorporate the charges into the following year’s budget, which is adopted by the board of commissioners. These will be the actual costs charged to funds outside of the general fund. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 project, 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 and Reporting System (BARS) and local regulations. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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.

The auditor’s office shall strive to prepare monthly reports outlining the status of revenues and expenditures on an accrual basis. 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 on a timely basis to meet or exceed the State Auditor’s Office standards. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. Chelan County follows the County Treasurer’s Cash Handler’s Manual. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 and federal or state funding.

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. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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).

1.70.205 Federal or state funding worksheets—Federal policy.

(1)    New Federal or State Funding Worksheet. When an application for grants is approved, or when a new federal or state funding source is secured, the grant manager must complete and provide to the county treasurer the “New Federal or State Funding Worksheet” as prescribed by the county treasurer. This helps ensure the required funding source information has been gathered so the treasurer can assign the proper revenue number in accordance with the State Auditor’s BARS manual.

(2)    Year-End Federal or State Funding Worksheet. At the end of each fiscal year, the county auditor will provide a listing of all federal and state funding sources that were reported to the State Auditor’s Office on Schedule 16. On or before February 15th, each department must complete and provide to the county auditor the “Year-End Federal or State Funding Worksheet” as prescribed by the county auditor. These worksheets are considered the final Schedule 16 data, which is compiled by the county auditor into a single document.

(3)    Federal Policy. The departments shall also use applicable cost principles from the U.S. Code of Federal Regulations Title 2, Part 200 (2 CFR 200) 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 2 CFR 200.

No county employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. As stated in 2 CFR 200.318(c), such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the county may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. Employees violating this section are subject to disciplinary action commensurate with the severity of the violation, consistent with bargaining unit agreements and/or county policies. Any instance where a potential conflict of interest may arise must be disclosed in writing by the responsible department to the federal awarding agency or pass-through entity in accordance with applicable federal awarding agency policy.

Elected officials, department heads, and grant managers within the county are authorized to sign the required certification as stated in 2 CFR 200.415.

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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10).

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 to 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. Chelan County follows the Chelan County debt policy which is maintained by the county treasurer. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 beyond current budget authority.

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 beyond current budget authority, unless the commission has given written authority to exempt certain contracts. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 its accounts receivable.

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.

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.

Departments have the ability to handle past due accounts along reasonable business practice guidelines. An example of reasonable business practice could be as follows:

A past due notice is issued for all accounts that are thirty days past due. Notices are issued by the responsible department every thirty days over a ninety-day period. Notices are 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 are sent to the prosecuting attorney’s office for legal action. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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).

1.70.265 Revenue—Public fees and charges.

The full cost of services shall be evaluated by each department regularly to provide a basis for setting the charge or fee. Full cost incorporates direct and indirect costs. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. Formerly 1.70.050).

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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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.

Departments within the general fund may exceed the approved budget within individual line items, but shall not exceed total departmental budgets without board approval of a budget adjustment.

No fund shall exceed total fund budget without board approval of a budget adjustment. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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.

(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 U.S. General Services Administration (GSA) per diem rates, excluding incidental expenses, rather than the county’s rates if the employee supports the GSA per diem rates of the appropriate travel destination. GSA per diem rates may be found at www.gsa.gov. The department head must confirm the appropriateness of the GSA 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 you choose not to eat at the conference or hotel 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. 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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).

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 or a special event open to the public. 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. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06).

1.70.308 Recognition.

(1) County departments may provide nonmonetary recognition for employees not to exceed one hundred dollars per employee per year.

(2) County departments may provide nonmonetary recognition for volunteers not to exceed fifty dollars per volunteer per year. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: Res. 2007-74 (part), 5/7/07: Res. 2006-174 (part), 12/12/06).

1.70.310 Purchasing.

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.

In accordance with RCW 36.32.245, contracting for the purchase of materials, equipment, supplies or public works projects 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.

(1) 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

*The public works director/county engineer may sign, on behalf of the Chelan County public works department, purchases and contracts for services that are less than twenty-five thousand dollars, and shall promptly report to the board chairperson the signing of each such contract.

(2) 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

(3) Purchase of Equipment, Materials and Supplies When Using Federal Grant Funds.

Method

Threshold

Applies To

Involves

Micro Purchase

$3,500 or less ($2,000 PW)

Supplies or service

No competition if price considered reasonable. Equitably distribute

Small Purchase Procedures

Under $150,000

Services, supplies or other property

Price or rate quotations

Sealed Bids

$150,000 or more

Services, supplies or other property as appropriate

Formal solicitation with a firm-fixed price contract awarded to responsive bidder

Competitive Proposals

$150,000 or more

When sealed bids are not appropriate (services)

More than one source submits an offer, and either a fixed-price or cost-reimbursement type contract is awarded

Competitive Proposals

No threshold

Architecture and engineering (price not a factor)

More than one source submits an offer, and either a fixed-price or cost-reimbursement type contract is awarded

Noncompetitive Proposals

Not applicable

Only when the award is infeasible under other option and it is either: sole source of supply, emergency or authorized by award agency

 

(A) Vendor List—For Purchase of Equipment, Materials, and Supplies.

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

(ii) For purchases between ten 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.

(iii) 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. (RCW 36.32.245(3))

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

(v) At least every two months, Chelan County commissioners shall publish a list of all awarded contracts valued at more than ten 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.

(4) 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

35,001—300,000

1. Small works roster

RCW 39.04.155; Road projects, RCW 36.77.075

2. Formal bids

RCW 36.32.250; Road projects, RCW 36.77.075

300,001 and over

Formal bids

RCW 36.32.250; Road projects, RCW 36.77.075

(A) Small Works Roster—For Public Works Projects.

(i) 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.

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

(iii) 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.

(iv) 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.

(v) Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection and available for telephone inquiry. (Res. 2019-15 (part), 1/28/19: Res. 2019-7, 1/15/19; Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2016-90, 10/18/16; Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 requester 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 are to remain in the custody of the appropriate elected official or such other county employee as they may authorize.

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. 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 Authorization for credit cards.

The board of Chelan County commissioners shall grant the county administrator the authority to negotiate an increase of the credit card debt to a maximum of two hundred thousand dollars and to establish limits on each credit card issued to elected officials and department heads, not to exceed the combined total of two hundred thousand dollars, terms of which are subject to Section 1.70.360. (Res. 2019-45, 4/15/19: Res. 2015-46, 4/13/15).

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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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).

1.70.385 Memorials/flowers.

No county funds shall be used to purchase memorials or flowers for county employees or relatives. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10).

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 chief deputy auditor or the senior accountant. The approver may not be the same person as the preparer. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: 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 department orientation of its new hires. All new hires must meet with human resources to complete required new hire and benefit enrollment paperwork.

When an employee terminates, contact payroll as soon as you have knowledge of a termination. Fill out a payroll change notice and submit it to human resources. 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 shall also be sent out by human resources following the employee’s termination date. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 human resources 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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.

Generally accepted accounting principles require 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 Sections 1.70.270 through 1.70.385, expenditures, 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. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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 auditor’s office. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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).

1.70.572 Surplus county property.

(1) Availability. The board of commissioners will request departments to provide a listing of property surplus to their needs, including quantity, nomenclature, model, serial, etc., and minimum bid price if desired.

The board of commissioners at a regular meeting shall by resolution declare the property surplus to county needs and direct that it be made available for sale.

(2) Notice of Sale. A notice of sale of county property shall be published in a county legal newspaper at least once a week for two consecutive weeks. Said notice shall generally describe the property, designate the hour and day of the sale and the place of the sale. The sale shall be conducted within ten days of the date of final publication of the notice of sale.

(3) Appraisal—Availability. Any surplus real property shall be appraised as to its fair market value by a staff appraiser or fee appraiser to establish an acceptable minimum bid price.

A listing of all property to be sold shall be made available to the public prior to the date of the sale.

(4) Sales. All sales shall be made to the highest and best bidder at a public sale in such manner as may be determined by the board of commissioners.

(5) Sales—Cash—Property Transfer. All sales shall be for cash and no property will be transferred until final payment has been received.

(6) Proceeds. Proceeds of sales must be paid to the county treasurer, who shall receipt therefor and credit the sale amount to the fund from which the property originated.

(7) Disposal of Unsold Property. Any property left unsold shall be disposed of as determined by the responsible department and the board of commissioners.

(8) Federal Property Disposal. Property purchased with federal funds must be disposed of according to policies established by the applicable federal awarding agency. Departments must request disposition instructions from the applicable federal awarding agency before disposing of, or declaring surplus, federally funded property and/or equipment. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 84-63 §§ 1—9, 7/23/84).

1.70.576 Fund balance—Classification.

Chelan County fund balances are classified into five categories in accordance with Statement 54 from the Governmental Accounting Standards Board: nonspendable, restricted, committed, assigned, and unassigned. Committed, assigned, and unassigned categories are considered to be “unrestricted.”

When expenditures are incurred that could be paid from either restricted, committed, assigned, or unassigned resources:

(1) In the general fund the county uses restricted resources first, committed resources second, assigned resources third, and unassigned resources last.

(2) In the special revenue and capital project funds, the county uses assigned resources first, committed resources second, and restricted resources last. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11).

1.70.580 Fund balance—Minimum level.

Maintenance of an adequate fund balance in the general fund to ensure sufficient resources for cash flow and to mitigate revenue shortages or emergencies shall be a priority.

The general fund shall maintain a minimum year-end unassigned fund balance of eight percent of its annual expenditures. In the event the fund balance is not at that level, the county shall create a plan to restore the fund balance to eight percent within two years.

The general fund’s long-term fund balance target is a year-end unassigned fund balance of fifteen percent of annual expenditures. (Res. 2019-15 (part), 1/28/19: Res. 2017-127 (part), 12/26/17: Res. 2016-103 (part), 11/28/16: Res. 2015-115 (part), 12/21/15: Res. 2014-131 (part), 12/21/14: Res. 2011-115 (part), 12/19/11: Res. 2010-120 (part), 12/28/10: Res. 2009-135 (part), 12/14/09: Res. 2008-172 (part), 12/15/08: 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).