Finance Department

Financial recording and reporting is a major task of the City with the most time and effort directed toward it.

Each department that receives money from the public reports these to finance on a daily basis. Finance assures that the receipts have been deposited in the bank and records them in the City's books.
Invoices for payment by the City are received, logged in and sent to the various departments for approval and verification of the account coding. They are then returned to finance where checks are written. Ideally, checks are written weekly in order to keep the flow of work steady, and to maintain relations with vendors.
Monthly reports of revenue and expenditures are prepared for the City Manager and forwarded to the City Council quarterly.
After the close of each fiscal year (June 30), The City's auditors review the books and prepare an annual financial statement. After the overall financial audit has been completed, other auditors review some of the City's street and road funds specifically.
Reports to the State and San Bernardino County are prepared within six months after fiscal year end for the overall accountability (Controller's Report), for streets and road expenditures, and for the Redevelopment Agency.
The finance department prepares historical information that is sent to the department heads to for use in submitting budget proposals to the City Manager. Once the information is secured from the departments, finance estimates revenues and prepares a first draft budget. Next, a series of meetings take place and a staff budget is negotiated. Once the City Manager has approved the preliminary budget, he has one or several public meetings with the City Council for their input. Once a general consensus has been reached, the budget is placed on a City Council agenda for final changes and adoption.
The adopted budget becomes the guide by which staff allocates funds and staff time for the next fiscal year.

Purchasing is the responsibility of every department. The finance department wrote the City's purchasing policy and consults with each department on its implementation.

1. There are several levels of purchasing authority.

a. Each department head has a dollar amount of purchase authorization and they can also permit persons under their jurisdiction to have an authority, obviously, not to exceed the overall departmental level.

b. The City Manager has a higher dollar amount of authorization. He can supplement a department head's authority by adding his signature to an invoice or purchase order.

c. Any purchase that exceeds the authority level of the City Manager must be approved by the City Council. The City Council does not have to approve all purchases after the fact, it can grant the City Manager authority to negotiate the best price and complete the transaction.

2. There are also several methods of purchasing.

a. Purchases under $1,000 can be made by a verbal agreement by a department head or other approved employee.

b. Purchases over $1,000 need a purchase order or other method of approval. Purchase orders above the department head's dollar authority must also be signed by the City Manager.

c. Purchases and projects costing under $25,000 may be authorized by a purchase order or a negotiated contract.

d. Purchases and projects estimated to cost between $25,000 and $75,000 may be authorized by an informal bidding process.

e. Projects estimated to cost over $75,000 go through a formal bidding process.

f. Any purchase may be accomplished using a formal bidding process at the discretion of the department head or the City Manager.

g. Vendors wishing to be put on a bid list are encouraged to submit a letter to the City outlining the projects or services to be provided.

Generally, purchases and services that are approved by the City Council, or evidenced by a signed contract or agreement do not also need a purchase order.