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HomeMy WebLinkAboutAgenda - 8-j - Designation of Four Sheriff’s Office Personnel as Deputy Treasury Officers 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 2, 2019 Action Agenda Item No. 8-j SUBJECT: Designation of Four Sheriff's Office Personnel as Deputy Treasury Officers DEPARTMENT: Sheriff's Office and Financial and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: Bonded Sheriff Personnel Sheriff Charles S. Blackwood, (919) 245- Attachment 2: Check Printing Standard 2900 Operating Procedures Gary Donaldson, Chief Financial Officer, Attachment 3: NC General Statutes (919) 245-2453 § 159-28(d1) Jennifer Galassi, Legal Advisor to the Sheriff, (919) 245-2900 Chief Deputy Jamison Sykes, (919) 245- 2900 PURPOSE: To approve designating Sheriff's Office personnel as listed on Attachment 1 as deputy treasury officers duly authorized and appointed pursuant to North Carolina General Statutes § 159-28(d1) for the sole purpose of signing refund checks payable to County inmates. The scope of this bank signature authorization is for the Jail Inmate Trust county bank account, also known as the Commissary account. BACKGROUND: The Jail Inmate Trust Fund is a County fund which is used to account for deposits made by inmates, or inmates' relatives or friends. The funds in the trust accounts are used by inmates to purchase commissary goods which include food, clothing, books, electronics, stationary and hygiene products. The Sheriff's Office disburses each inmate's balance by check at the time of release or correctional facility transfer. The purpose of the designations is to authorize Sheriff personnel during the weekend and non- business hours to sign checks to draft from the Jail Inmate Trust Fund in a timely manner and not have released persons waiting until the next business day. The Financial and Administrative Services Department has drafted the Check Printing Standard Operating Procedures (SOP) (Attachment 2). The County's auditors' Mauldin and Jenkins have reviewed and concur with this SOP. Each of the proposed deputy treasury officers are bonded in the amount of $100,000 each and will be added to the County's bank resolution and deleted at separation or as directed by the Sheriff. The audited balance in the Jail Inmate Trust Fund as of June 30, 2018 was $49,356. Funds above the restricted inmate balances can be used for inmate related expenditures including goods for indigent inmates that have no funds in their own individual accounts. 2 At the close of each fiscal year, unrestricted balances are earmarked for: 1) Foundations of Hope, a peer recovery program 2) Inmate Literacy/GED program: grant funds were sought but ultimately not awarded 3) Increased contractual hours for the current psychologist 4) Increased training for Detention Officers FINANCIAL IMPACT: There is no financial impact associated with this item. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends that the Board approve designating Sheriff's Office personnel as listed on Attachment 1 as deputy treasury officers and approve the attached policy and Standard Operating Procedures pursuant to NC General Statutes § 159- 28(d1). 3 Western Surety Company Schedule Principal Name;Orange County Sheriff's Department Effective Date; February 19, 2019 This schedule is in replacement of and not in addition to any previous schedule issued for the bond referenced above. The liability of WESTERN SURETY COMPANY shall not be cumulative and shall not exceed the Penalty Amount for Each Position of the bond in effect as to any Employee or Officer when the dishonest act of the Employee or Officer shall have been committed. Name Position No.of Officers Penalty Amount Annual or Employees in for Each Premium for j Each Position Position Each Position* Angela K. Spear Deputy $100,000.00 $500.00 Jerry R. Hawkins Deputy $100,000.00 $500.00 Administrative Carolyn L. Cates Assistant $100,000.00 $500.00 Administrative Tracy G, Smith Assistant $100,000.00 $500.00 1i j ! i i i I " I i ' I *Premium charged will be prorated based on the effective&tpA change and the term dates of the bond. Dated 's � u�Yk1ru>F 2019 I 11 19th day of `C t• r8 w ;• ( s L Accep e By _ a WESTER 'U TY COM Official e F �� � a -..-e ��ag By Paul T,Bruflat, ice President deb=Fi:�i�DGR6E4*�' Form F9640 i 4 Orange County,North Carolina Standard Operating Procedures Internal Controls for Check Printing at the Orange County Detention Center Purpose To ensure that check printing in the Orange County Detention Center (OCDC) has strong internal controls to safeguard misappropriation. Procedures 1. Only members of the OCDC employed by the Orange County Sheriffs Office who are duly authorized and appointed as deputy treasury officers pursuant to North Carolina General Statutes § 159-28(d1) shall have access to the Oasis system usernames and passwords to issue and print checks to inmates leaving the OCDC. For each shift, the Sheriff or the Chief Deputy will provide written designation of the Check Request Approvers and the Check Issuer/Signers. Any changes to these designations must be signed and approved by the Sheriff or the Chief Deputy. a. Strong system access controls will be implemented to further secure access. b. The Lockdown Software Manual provides instructions for creation of user logins, passwords, security settings, and individual privileges. Seepages 54-56. c. Any check stock held by the OCDC shall be safeguarded and secured in a safe, independent of the authorized signer. Best practices provide that a secured/confined area be utilized. 2. All deputy treasury officers involved in the check writing process will be appropriately bonded. 3. Deputy treasury officers shall thoroughly review documentation supporting the issuance of the check prior to check writing. a. The treasury officers will divide the duties of Check Issuer/Signer and the initiator or preparer of the check. b. The Check Request Approver,who must be independent from the person preparing or requesting the check request, must sign the Check Request Form and document that approval was obtained before checks are presented for being signed by the Check Issuer/Signer. i. The Check Request Approver reviews supporting documentation from Oasis ledger inmate balances and signs the Check Request Form. The Check Request Approver ensures that the Oasis source documents of inmate balances match the requested amount on the Check Request Form. c. The Check Issuer/Signer reviews the Check Request Form and signs it before issuing the check to the inmate. d. The Lockdown Software Manual provides instructions for deputy treasury officers to follow when issuing checks. Seepage 14. GD/jg Issue Date: April 3, 2019 Sheriffs Office 5 e. Pursuant to N.C. General Statutes § 159-25, all checks require signatures of two duly authorized and appointed deputy treasury officers. If the Orange County Board of County Commissioners waives this requirement, one signature will be sufficient. f. Once the check has been issued, a notation will be added to the supporting documentation indicating payment was made with check number or attached to check copy. g. Positive Pay fraud detection service must be used as applicable. 4. Checks are not to be completed as "payable to cash." Signatures of deputy treasury officers will not be affixed to checks prior to their issuance. a. All voided checks must be so noted in the check register and/or voided in the Lockdown Checkbook. The Lockdown Software Manual provides instructions for voiding checks. See page 44. 5. Deputy treasury officers shall not be involved in the function of reconciling of the ledger to the bank account. a. The Lockdown Software Manual provides instructions for deputy treasury officers to follow for monthly reconciliations. Seepages 44-48. b. All non-inmate disbursements must include copies of appropriate documentation, including invoices, receipt, etc. GD/jg Issue Date: April 3, 2019 Sheriff's Office 6 § 159-28. Budgetary accounting for appropriations. (a) Incurring Obligations. — No obligation may be incurred in a program, function, or activity accounted for in a fund included in the budget ordinance unless the budget ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. No obligation may be incurred for a capital project or a grant project authorized by a project ordinance unless that project ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay the sums obligated by the transaction. Nothing in this section shall require a contract to be reduced to writing. (al) Preaudit Requirement. — If an obligation is reduced to a written contract or written agreement requiring the payment of money, or is evidenced by a written purchase order for supplies and materials, the written contract, agreement, or purchase order shall include on its face a certificate stating that the instrument has been preaudited to assure compliance with subsection (a) of this section. The certificate, which shall be signed by the finance officer, or any deputy finance officer approved for this purpose by the governing board, shall take substantially the following form: "This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act. (Signature of finance officer)." (a2) Failure to Preaudit. —An obligation incurred in violation of subsection (a) or(al) of this section is invalid and may not be enforced. The finance officer shall establish procedures to assure compliance with this section, in accordance with any rules adopted by the Local Government Commission. (b) Disbursements. —When a bill, invoice, or other claim against a local government or public authority is presented, the finance officer shall either approve or disapprove the necessary disbursement. If the claim involves a program, function, or activity accounted for in a fund included in the budget ordinance or a capital project or a grant project authorized by a project ordinance, the finance officer may approve the claim only if both of the following apply: (1) The finance officer determines the amount to be payable. (2) The budget ordinance or a project ordinance includes an appropriation authorizing the expenditure and either (i) an encumbrance has been previously created for the transaction or (ii) an unencumbered balance remains in the appropriation sufficient to pay the amount to be disbursed. The finance officer may approve a bill, invoice, or other claim requiring disbursement from an intragovernmental service fund or trust or agency fund not included in the budget ordinance, only if the amount claimed is determined to be payable. A bill, invoice, or other claim may not be paid unless it has been approved by the finance officer or, under subsection (c) of this section, by the governing board. The finance officer shall establish procedures to assure compliance with this subsection, in accordance with any rules adopted by the Local Government Commission. (c) Governing Board Approval of Bills, Invoices, or Claims. — The governing board may, as permitted by this subsection, approve a bill, invoice, or other claim against the local government or public authority that has been disapproved by the finance officer. The governing board may not approve a claim for which no appropriation appears in the budget ordinance or in a project ordinance, or for which the appropriation contains no encumbrance and the unencumbered balance is less than the amount to be paid. The governing board shall approve payment by formal resolution stating the board's reasons for allowing the bill, invoice, or other G.S. 159-28 Page 1 7 claim. The resolution shall be entered in the minutes together with the names of those voting in the affirmative. The chairman of the board, or some other member designated for this purpose, shall sign the certificate on the check or draft given in payment of the bill, invoice, or other claim. If payment results in a violation of law, each member of the board voting to allow payment is jointly and severally liable for the full amount of the check or draft given in payment. (d) Payment. — A local government or public authority may not pay a bill, invoice, salary, or other claim except by any of the following methods: (1) Check or draft on an official depository. (2) Bank wire transfer from an official depository. (3) Electronic payment or an electronic funds transfer originated by the local government or public authority through an official depository. (4) Cash, if the local government has adopted an ordinance authorizing the use of cash, and specifying the limits of the use of cash. (dl) Except as provided in this section, each check or draft on an official depository shall bear on its face a certificate signed by the finance officer or a deputy finance officer approved for this purpose by the governing board (or signed by the chairman or some other member of the board pursuant to subsection (c) of this section). The certificate shall take substantially the following form: "This disbursement has been approved as required by the Local Government Budget and Fiscal Control Act. (Signature of finance officer)." (d2) An electronic payment or electronic funds transfer shall be subject to the preaudit process in accordance with this section and any rules adopted by the Local Government Commission. The rules so adopted shall address execution of electronic payment or electronic funds transfer and how to indicate that the finance officer or duly appointed deputy finance officer has performed the preaudit process in accordance with this section. A finance officer or duly appointed deputy finance officer shall be presumed in compliance with this section if the finance officer or duly appointed deputy finance officer complies with the rules adopted by the Local Government Commission. (e) Penalties. — If an officer or employee of a local government or public authority incurs an obligation or pays out or causes to be paid out any funds in violation of this section, that officer or employee, and the sureties on any official bond for that officer or employee, are liable for any sums so committed or disbursed. If the finance officer or any duly appointed deputy finance officer gives a false certificate to any contract, agreement, purchase order, check, draft, or other document, the finance officer or duly appointed deputy finance officer, and the sureties on any official bond, are liable for any sums illegally committed or disbursed thereby. The governing board shall determine, by resolution, if payment from the official bond shall be sought and if the governing body will seek a judgment from the finance officer or duly appointed deputy finance officer for any deficiencies in the amount. (el) Inclusion of the contract term in accordance with G.S. 143-133.3(b) shall be deemed in compliance with G.S. 143-133.3(a). (f) The certifications required by subsections (al) and (dl) of this section shall not apply to any of the following: (1) An obligation or a document related to the obligation has been approved by the Local Government Commission. (2) Payroll expenditures, including all benefits for employees of the local government. G.S. 159-28 Page 2 8 (3) Electronic payments, as specified in rules adopted by the Local Government Commission. (g) As used in this section, the following terms shall have the following meanings: (1) Electronic funds transfer. — A transfer of funds initiated by using an electronic terminal, a telephone, a computer, or magnetic tape to instruct or authorize a financial institution or its agent to credit or debit an account. (2) Electronic payment. — Payment by charge card, credit card, debit card, gas card, procurement card, or electronic funds transfer. (1971, c. 780, s. 1; 1973, c. 474, ss. 22, 23; 1975, c. 514, s. 12; 1979, c. 402, ss. 7, 8; 2010-99, s. 1; 2012-156, s. 1; 2015-246, s. 6(a); 2015-294, s. 2.) G.S. 159-28 Page 3