A. The city commission does hereby authorize the city manager or designee to approve payment of any invoices submitted against the city for payment, subject to the requirements of this chapter. In this regard, the city manager shall establish an internal control structure adequate to provide reasonable assurance against the unauthorized or illegal payment of invoices. Such system of internal control should include the following control procedures:
1. Proper authorization of transactions and activities;
2. Adequate segregation of duties;
3. Adequate documents and records;
4. Adequate safeguards over access to and use of assets and records; and
5. Independent checks on performance.
B. Further, two (2) additional elements of the internal control structure, which are the control environment and the accounting system, must be included. The control environment shall consist of the overall attitude, awareness and actions of the governing body and management, including a foresighted management policy toward financial reporting.
C. The methods and records of an effective accounting system shall result in:
1. Identification and recording of all valid transactions;
2. Description on a timely basis of the type of transaction in sufficient detail to permit proper classification of the transaction for financial reporting;
3. Measurement of the transaction's value in a manner that permits recording of its monetary value in the financial statements;
4. Determination of the time period in which the transaction occurred to permit recording of the transaction in the proper accounting period;
5. Proper presentation of the transaction and related disclosures in financial statements. (Ord. 1564, 9-17-2012)