A. Purpose/Objective: The Cash Disbursement Policy is to assure that the Village of Sherman has proper controls to minimize the risk of theft or loss occurring during the preparation, authorization, and distribution of checks. This policy also covers controls related to banking, petty cash, and ACH/wire transfers.
B. Check Preparation:
1. The Village of Sherman will use completely blank check stock and will print their own checks using the LOCiS A/P system and MICR printers.
2. Checks will always be made payable to a specific payee or vendor. Never to "cash" or "petty cash".
3. A designated individual, either the Clerk or the Treasurer, will prepare the check payments based upon authorization.
4. All check payments must be signed by two (2) individuals. No one person is allowed to authorize a purchase and approve a payment without another signature.
5. After checks are printed, the Village Administrator, or in his/her absence, the Village Clerk, will account for all checks printed and compare printed checks to supporting documentation. If possible, any individual responsible for preparing the checks should not also sign the check.
6. Check signing authority is limited to the Village President, Village Clerk, and Village Treasurer except as otherwise approved by the Village Board. Other individuals may be designated to sign for a particular fund or account as approved by the Village Board.
7. The signature stamp of the Village President will be kept in a secure location under the custody of the Village Administrator. Under discretion of the Village President, the Village Administrator may be authorized to affix the signature of the Village President.
8. Blank checks are not allowed to be signed.
9. The LOCiS system will be restricted to only those users that require access, and only portions of the system will be set to VIEW only to eliminate any unauthorized check printing. (Ord. 2018-05, 5-15-2018)