Requirements of Elected or Appointed
Officials Assuming or Leaving Office
SUBJECT:
REQUIREMENTS OF ELECTED OR APPOINTED OFFICIALS ASSUMING
OR LEAVING OFFICE
NUMBER:
M.4.
DEPARTMENTS & DISTRICTS AFFECTED:
ALL DEPARTMENTS, AGENCIES, AND DISTRICTS GOVERNED
BY THE BOARD OF SUPERVISORS
EFFECTIVE: 5/87
REVISED: 7/91, 5/99
_________________________________
David E. Sundstrom, Auditor-Controller
1.
POLICY
When a change in County officers occurs, accountability
for assets must be transferred from the outgoing
officer to the incoming officer. These procedures
are only to be followed when an officer responsible
for assets leaves office and a new officer assumes
office. These include instances where a department
head, agency director, or elected official retires,
resigns, is not reelected, or is replaced by the
Board of Supervisors (Board). These procedures are
optional when assets or programs are transferred
between existing officers. (Both officers are responsible
to see that the official County records are changed
to reflect the transfer.)
1.1
Purpose
To assist elected or appointed officers
in transferring accountability for assets
from the outgoing officer to the incoming
officer.
1.2
Authority
1.2.1
State of California Government Code
Sections:
Government Code
Section No.
Subject
1094
Prohibited Conflict
of Interest
1360 – 1367
Oath of Office
29320 – 29330
Revolving Funds
24050
Completion of County Business
24200
Assuming Office
29370 – 29390.1
Cash Difference Fund
1.2.2
Board of Supervisors' Resolutions:
Board Resolution
No.
Date
Subject
85-1684
11-26-85
Revolving Funds
82-162
02-02-82
Auditor-Controller’s Authority
93-1390
12-14-93
Fixed Assets
99-135
04-06-99
Cash Difference Funds
1.3
Definitions
1.3.1
Officer
"Officer of the County"
includes any elective or appointed officer
of the County, and any person in charge
of any office, department, service,
or institution of the County, or a division
or branch thereof, and as enumerated
in Section 24000 of the Government Code.
1.3.2
Statement of Assets Transferred Form
Form prepared and signed by the outgoing
and incoming officers documenting the
assets transferred between the two officers.
See
Attachment 1.
2.
TRANSFERRING ASSETS
2.1
General
2.1.1
Responsibility for Changeover Procedures
Primary responsibility for effecting
the changeover lies with the outgoing
officer.
2.1.2
Notification to Auditor-Controller
General Ledger Unit
When it is known that a change in
County officers will occur, the outgoing
officer should immediately notify the
Auditor-Controller General Ledger Unit
to ensure sufficient time for planning
changeover procedures.
2.2
Revolving Fund
The revolving fund may either be discontinued
by the outgoing officer, or transferred to
the incoming officer, depending on circumstances
as described below:
2.2.1
Discontinuing the Revolving Fund
The procedure for the discontinuance
of the revolving fund will be followed
whenever the outgoing officer's employment
is terminated, or when the outgoing
officer is unavailable or unwilling
to sign the "Statement of Assets
Transferred" form.
A revolving fund may be discontinued
by written notice to the Director of
the County Executive Office (CEO) Administrative
Services (Director). An accounting of
the fund, as of the date of the request
for discontinuance by the outgoing officer,
must be sent to the Auditor-Controller
General Ledger Unit.
Any cash balance remaining must be deposited
into the County Treasury as stipulated
in Government Code Section 29330.
The Director will review, and if appropriate
approve, the request to discontinue
the fund and forward it to the Auditor-Controller
General Ledger Unit.
The outgoing officer will submit a final
claim for authorized expenditures to
the Auditor-Controller Claims Section.
The final claim will include written
instructions informing the Auditor-Controller
to offset these expenditures against
the revolving fund balance recorded
in the General Ledger. This offset,
plus any remaining cash balance deposited
into the County Treasury should equal
the total authorized revolving fund.
2.2.2
Transferring the Revolving Fund
The procedure for transferring the
revolving fund will be followed whenever
the outgoing officer is no longer responsible
for County assets, and the outgoing
and incoming officers are both available
and willing to sign the transfer request.
The transfer of the fund from one officer
to another may be effected by forwarding
a request signed by both officers to
the Director, who will review it and
forward it to the Auditor-Controller
with his recommendations.
After receiving the Director’s
approval of the transfer request, the
Auditor-Controller will note the transfer
in the revolving cash fund records and
a written confirmation of the transfer
will be sent to each of the affected
officers.
2.3
Cash Difference Fund
The cash difference fund may either be discontinued
by the outgoing officer or transferred to
the incoming officer, depending on circumstances
as described below:
2.3.1
Discontinuing the Cash Difference
Fund and Establishing a New Cash Difference
Fund
The cash difference fund must be discontinued
whenever an outgoing officer’s
employment is terminated or the outgoing
officer is unavailable or unwilling
to sign a "Statement of Assets
Transferred Form." In such circumstances,
requests to discontinue the old fund
are submitted by the incoming or interim
officer.
2.3.1.1
Discontinuing the Cash Difference
Fund
The incoming or interim officer
sends a written request to the
Auditor-Controller General Ledger
Unit to discontinue the cash difference
fund. Upon receipt of the request,
the Auditor-Controller directs
the officer or designee to deposit
any unused balance of the cash
difference fund into the County
treasury and to submit an accounting
for the portion of the fund that
was used. See County
Accounting Procedure (CAP) No.
C.2., "Cash Difference Fund,"
Section 2.4.
2.3.1.2
Establishing a New Cash Difference
Fund
The interim or incoming officer
sends a written request to the
Auditor-Controller General Ledger
Unit, stating the need for the
fund and the amount requested.
The Auditor-Controller reviews
the request for County procedural
and operating rules compliance.
If the request is approved, the
Auditor-Controller authorizes
the issuance of a check establishing
the fund. See Section 2.1.
2.3.2
Transferring the Cash Difference Fund
The cash difference fund will be transferred
whenever a change in County officers
occurs and the outgoing and incoming
officers are both available and willing
to sign the transfer request. The outgoing
and incoming officers submit a written
request to the Auditor-Controller General
Ledger Unit to transfer the cash difference
fund from the outgoing to the incoming
officer. Both officers must sign the
request. Upon receipt of the written
transfer request, the Auditor-Controller
notes the transfer in the cash difference
fund records. A written confirmation
of the transfer is sent to each of the
affected officers. See
CAP No. C.2., "Cash Difference
Fund," Section 2.5.
2.4
Fixed Assets
The cash difference fund may either be discontinued
by the outgoing officer or transferred to
the incoming officer, depending on circumstances
as described below:
2.4.1
Physical Inventory Required
A physical inventory of fixed assets
is required only if it has been more
than one year since the last departmental
fixed asset inventory or there are still
unresolved deficiencies in inventory
procedures or controls from the department’s
previous fixed asset inventory. When
a physical inventory is required, CAP
No. FA.5., "Physical Inventory
of Fixed Assets," will be followed.
This inventory will change the department’s/agency’s
regularly scheduled biennial physical
inventory date.
2.4.2
Physical Inventory Not Required
When a physical inventory is not required,
the outgoing officer should contact
the Auditor-Controller General Ledger
Unit and obtain an official fixed asset
listing for the department/agency and
a copy of the "Inventory of County
Property" form (Inventory Form).
See CAP No. FA.5.,
"Physical Inventory of Fixed Assets",
for a copy of inventory form. The Inventory
Form should be completed with an "as
of" date that is the same as the
actual date of the department/agency
head changeover. The following should
be attached to the Inventory Form:
The Auditor-Controller's official
fixed asset listing for the department/agency.
A list of all asset activity (purchase,
disposal, surplus) from the date
of the official fixed asset listing
to the date of the changeover.
After the Inventory Form has been
completed, and all required supporting
documentation is attached, it shall
be signed by the outgoing and incoming
officers. These procedures do not
change the department’s/agency's
regularly scheduled biennial physical
inventory date.
2.4.3
Physical Inventory Requested
In cases where a physical inventory
is not required, an incoming officer
may request that one be performed. This
inventory will change the department’s/agency’s
regularly scheduled biennial physical
inventory date if CAP
No. FA.5., "Physical Inventory
of Fixed Assets," procedures
are followed.
2.5
Statement of Assets Transferred Form
Complete and sign the "Statement of
Assets Transferred" form for all General
Ledger and unrecorded assets, except fixed
assets and controlled equipment, transferred
to the incoming officer. This form will be
sent to the outgoing officer by the Auditor-Controller
General Ledger Unit. Following are the types
of items which must be on this form. See
Attachment 1.
2.5.1
Revolving Funds
List the funds transferred from the
outgoing officer to the incoming officer.
This amount will be zero if the fund
was discontinued rather than transferred.
2.5.2
Cash Difference Funds
List the cash difference funds transferred
from the outgoing to the incoming officer.
The amount will be zero if the fund
was discontinued rather than transferred.
2.5.3
Cash on Hand
This should be the cash account balance
for each fund administered by the officer
as of the date of the changeover. Use
the balance per the Auditor-Controller's
General Ledger. If necessary, manually
adjust the balance by adding/subtracting
from the amount in the General Ledger,
receipts/disbursements which have been
received or disbursed between the date
of the General Ledger and the date of
the changeover.
2.5.3.1
Trust and Agency Funds
Include cash balances of all
trust or agency funds. The 300-series
funds fall within this category.
2.5.3.2
All Other Funds
Report cash balances of all
funds not reported as trust or
agency. The manager of the Auditor-Controller
General Ledger unit can provide
the classification of a particular
fund.
2.5.4
Accounts Receivable
List all accounts receivable, regardless
of whether they are recorded or are
not recorded in the Auditor-Controller
General Ledger. A separate line on the
form is provided for each type of account
receivable.
2.5.5
Performance Guarantees and Negotiable
Instruments
List the amount of all performance
guarantees with a financial value (letters
of credit, savings passbooks or time
certificates with the power of attorney,
notes receivable or installment notes
secured by deeds of trust); negotiable
instruments (promissory notes, drafts
or bills of exchange, checks, and certificates
of deposit); and performance guarantees
that are not payable upon demand and
require a court order to collect monies
(completion bonds, contract bonds, escrow
agreements, indemnity agreements, indemnity
bonds, and surety bonds) as of the date
of the changeover.
2.5.6
Undeposited Cash Receipts
List the amount of cash receipts on
hand on the changeover date that has
not yet been deposited into the County
Treasury.
2.5.7
Postal Deposits
List the amounts on deposit with the
U.S. Postal Service for postage due
and business reply and any postage meter
balances as of the date of the changeover.
2.5.8
Bank Accounts (other than petty cash
revolving funds)
List the amount of any bank time deposits,
savings accounts, trust accounts, or
checking accounts as of the date of
the changeover, other than revolving
funds already listed under Section 2.5.1.
2.5.9
Other Cash
List the amount of any other cash
on hand on the day of the changeover
that has not been included in any other
category.
2.5.10
Supplies Inventory
List the Materials and Supplies Inventory
balance as of the date of the changeover.
Use the balance in the Auditor-Controller's
General Ledger. If necessary, manually
adjust the balance by adding/subtracting
from the amount per the General Ledger
receipts/disbursements which have been
received or disbursed between the date
of the General Ledger and the date of
the changeover.
2.5.11
Other Assets
List all other assets such as cash
in County treasury, interest receivable,
investments with trustee, etc., as of
the changeover date that are not included
in another category.
After the "Statement of Assets
Transferred" form has been completed,
it should be signed by both the outgoing
and incoming officers and forwarded
to the Auditor-Controller General Ledger
Unit. Upon review and acceptance of
the completed "Statement of Assets
Transferred" and "Inventory
of County Property" forms, the
Auditor-Controller General Ledger Unit
will notify the outgoing and incoming
officers in writing that the transfer
of accountability is complete.
3.
ADDITIONAL REQUIREMENTS
3.1
Legal Requirements
The outgoing and incoming officers should
contact County Counsel for the legal requirements
pertinent to leaving office or accepting the
duties of the office.
3.2
Outgoing Officer
3.2.1
Travel Advance
Any outstanding travel advances must
be repaid by direct payment to the Auditor-Controller
Claims Section.
3.2.2
Reimbursement of Mileage and Other
Expenses
For outgoing officers terminating
County employment, final claims for
reimbursement of mileage or other expenses
should be filed with the Auditor-Controller
as soon as possible, but no later than
one year from the date the expense was
incurred.
3.2.3
Completion of County Business
Complete any other County business
prior to the expiration of the term
of office.
3.3
Incoming Officer
3.3.1
Appointment Resolution
A certified copy of the Board appointment
resolution must be filed with the Auditor-Controller
Claims Section to establish the officer's
position in the official books and records
of the County.
3.3.2
Signature Authorization
3.3.2.1
Auditor-Controller
Before the Auditor-Controller
can process department/agency
claims, payroll and grants, a
new signature authorization must
be filed with the Auditor-Controller
by the incoming officer. See
CAP No. M.1., "Authorized
Signature List," for
detailed procedures.
3.3.2.2
CEO/Human Resources
Before the CEO/Human Resources
Department can process payroll
changes (e.g. merit increases,
promotions, etc.) a new signature
authorization list must be filed
by the incoming officer. Contact
the CEO/Human Resources Department
for copies of the signature authorization
form and procedures for filing
the new list.
3.3.2.3
CEO/Purchasing
Before CEO/Purchasing or Deputy
Purchasing Agents can process
purchase requisitions and purchase
documents, a new signature authorization
list must be filed with CEO/Purchasing
and the department/agencies Deputy
Purchasing Agent by the incoming
officer. Contact CEO/Purchasing
for copies of the signature authorization
form and procedures for filing
a new list.
3.3.2.4
Bank
New signature cards must be
filed with any bank where departments/agencies
monies are maintained in a time
deposit, savings account, trust
account, revolving account, or
checking account.
3.3.3
Certificate of Prohibited Conflict
of Interest
Before the Auditor-Controller can
approve payments submitted by departments/agencies,
the incoming officer must file a Certificate
of Prohibited Interest with the Auditor-Controller
Claims Section See
Attachment 2.
3.3.4
Official Bond
In order to update the County’s
blanket official bond, departments/agencies
must notify CEO/Risk Management by memo
of changes to departments/agencies officials.
The memo should include names of officials
leaving office and names of new officials
assuming office.
3.3.5
Oath of Office
Unless otherwise provided, before
any officer begins the duties of his/her
office, he/she shall take the oath or
affirmation set forth in Section 3 of
Article XX of the Constitution of California.
3.3.6
Assuming Office
Elected County officers shall take
office at 12 o’clock noon on the
first Monday after the January 1st succeeding
their election.
Legal