By: Libi Uremovic | Original Article at patch.com
Last month the Beaumont City Council pulled a Check issued to the Steiner Group from the Warrant Register only to find out that the Check had already been paid and cashed. At the April 7, 2015 Council Meeting Councilman Orozco questions Wysocki and Kapanicas regarding issuing checks before the Warrant is approve by Council.
State law directs that Council approves the Warrant list BEFORE the checks are issued. Staff has no legal right to payout money without Council approval. The only government funds that can be paid before Council or Board approval is Payroll.
The reason it traditionally takes longer to get paid/reimbursed from a government agency is because the money has to be approved by a governing board.
Transcript of April 7, 2015 Beaumont City Council Meeting
223:50: Wysocki: I sent the email to all of you about the Steiner Group that I wanted to review on April 2nd addressing many of the issues raised at the last Council Meeting. I’m open to any questions you may have.
Orozco: Do you know if we paid them already? Was the invoice paid after Council indicated to stop?
Wysocki: The warrant list, as I understand it, is a ratification list. So yes.
Orozco: I have a problem with that because to clarify [cut off by Kapanicas]
Kapanicas: We pay the checks and then it’s put on a warrant list. It’s called a Warrant List, not a Check Register. And then you ratify it. Now if you want to pull one back we can, but you always send out checks. You need to make your payments timely. In essence; you need to make the payments timely. This idea that you’d approve a check before it gets sent is not normal policy and it’s never been a policy of the City.
Orozco: So what happens when it’s deemed that the services weren’t provided?
Kapanicas: Then she would have to repay the money. Same thing would happen if after all the work was done if you determined it wasn’t .. Same way we have an approval process. We can always demand the money back. Warrants are always based on checks that have already been issued.
Orozco: Okay, so when it came to us the first time; the check was already sent out?
Kapanias: Yes. Checks are sent out every week. It’s a responsible for any business or government to make their payments timely and not have it held up, which would make it harder for us to have people that actually want to work for the City. Technically; you’d be restricting commerce every time you were waiting on this check. This one you can call back later, but this is a Warrant. This is not a Check.
226:00 White: So checks don’t even make it to the warrant list until they’ve been sent out and paid?
Kapanicas: We try to pay every week so there’s a cash flow and checks are paid timely. Purchases that some of them have discounts and penalties for being late, so they’re sent out on a regular schedule. Invoices received are paid within two weeks and they go on the next warrant list when checks are cut.
http://podcast.ci.beaumont.ca.us/CC_2015-04-07_agenda.htm
California Government Code Title 4 Division 3 Part 2
CHAPTER 4. Financial Powers [37201 – 37210] ( Chapter 4 added by Stats. 1949, Ch. 79. )
37201.
Demands against the city for money or damages are governed by Part 3 (commencing with Section 900) and Part 4 (commencing with Section 940) of Division 3.6 of Title 1, except as provided therein, or by other statutes or regulations expressly applicable thereto.
(Amended by Stats. 1982, Ch. 454, Sec. 77.)
37202.
Except as provided in Section 37208, the legislative body shall approve or reject demands only after such demands have been audited in the manner prescribed by ordinance or resolution. Such audited demands may be submitted separately or a register of audited demands may be submitted to the legislative body for approval or rejection and shall have attached thereto the affidavit of the officer submitting the demands certifying as to the accuracy of the demands and the availability of funds for payment thereof.
(Amended by Stats. 1970, Ch. 261.)
37203.
Upon allowing a demand or approving a register of audited demands, the mayor shall draw a warrant or warrants upon the city treasurer specifying the purpose for which drawn and the fund from which payment is to be made. The city clerk shall countersign the warrant. The legislative body, by ordinance or resolution, may prescribe an alternative method of drawing warrants and checks.
(Amended by Stats. 1980, Ch. 770.)
37204.
When an order or demand is not approved for want of funds and its amount does not exceed the income and revenue for the year in which the indebtedness was incurred, the city clerk shall endorse on it: “Not approved for want of funds,” with the date of presentation and his signature.
(Added by Stats. 1949, Ch. 79.)
37205.
The clerk shall number the endorsement, register the order or demand in his records, and deliver it to the claimant, or his order. From delivery the order or demand bears interest at 6 percent a year. Orders or demands shall be paid in the order they are registered.
(Added by Stats. 1949, Ch. 79.)
37206.
By ordinance or resolution, the legislative body shall prescribe the time and method of paying salaries and wages of officers and employees.
(Added by Stats. 1949, Ch. 79.)
37207.
Department heads shall certify or approve departmental pay rolls or attendance records for employees in their departments. The city clerk shall certify or approve pay rolls or attendance records of other officers and employees.
(Added by Stats. 1949, Ch. 79.)
37208.
(a) Payroll warrants or checks need not be audited by the legislative body prior to payment. Payrolls shall be presented to the legislative body for ratification and approval at the first meeting after delivery of the payroll warrants or checks.
(b) Warrants or checks drawn in payment of demands certified or approved by the city clerk as conforming to a budget approved by ordinance or resolution of the legislative body need not be audited by the legislative body prior to payment.
(c) Notwithstanding subdivisions (a) and (b), budgeted payrolls and demands paid by warrants or checks may be presented to the legislative body for ratification and approval in the form of an audited comprehensive annual financial report.
(Amended by Stats. 1986, Ch. 982, Sec. 14.)
37209.
The duties imposed upon the city clerk by this article may be transferred to a director of finance when such office has been established and the powers and duties thereof defined by ordinance. Such an ordinance shall require the execution by the director of finance of the bond required of the city clerk by Section 36518 of this code.
(Added by Stats. 1955, Ch. 1754.)