Township of Cheltenham, PA Article IX Fiscal Affairs

§ 5-58 Annual operating budget, capital program and capital budget.

The preparation, submission, adoption and amendment of the annual budget shall be in accordance with §§ C1203, C1204, C1205 and C1206 of the Charter.

§ 5-59 Classification of accounts.

Classification of accounts and accounts to be used in all financial plans, budgets and reports shall be as follows:

Fund	Code
General	01
State Liquid Fuels	02
Bond	94
Capital Reserve	92
Community Development	05
Sinking	09
Municipal Police Pension	06
Payroll	11, 12 and 13
Library Trust	07
Federal Revenue Sharing and Antirecessional	08

§ 5-60 Budget formats.

A. The operating budget, preliminary and formal, shall be prepared using a line item format.

B. The capital program and capital budget shall be stated in programmatic (project) terms.

§ 5-61 Annual fiscal reporting requirements.

A. The independent auditors shall prepare and submit the annual financial statement of the Township within 105 days following the end of the fiscal year.

B. The annual financial statements of the Township shall include but not be limited to the following:

(1) The certified public accountant's (CPA's) opinion.

(2) The combined balance sheet, all funds.

(3) Combined statements of revenues and expenditures, all funds.

(4) Combined statements of changes in fund balances, all funds.

(5) Schedule of nonelectoral borrowing base, as defined in the Local Government Unit Debt Act.[1]

[1] Editor's Note: See 53 P.S. § 6780-1 et seq.

(6) Combined schedule of investments, all funds.

(7) Schedule of general fund receipts and disbursements, budgeted and actual.

(8) Schedule of tax collection account.

(9) Schedule of returned taxes.

(10) Schedule of sewer rentals.

(11) Schedule of sinking fund debt obligations payable.

(12) Schedule of Township and agency funds' investments.

§ 5-62 Recording of financial transactions.

To meet the financial statement requirements as defined in § 5-61 of this Article and the statutory financial reporting requirements of the Commonwealth of Pennsylvania and the monthly and financial operating reporting requirements of the Township, there shall be maintained as necessary the following records of accounts for each Township fund:

A. Records of original entry, including the following:

(1) Cash receipt journal.

(2) Cash disbursement journal.

(3) Purchase and encumbrance journal.

(4) Payroll journal.

(5) General journal.

B. The records of original entry contain the original entries of any account and transaction and, therefore, may vary widely in format, depending on the requirements of the respective funds.

C. General ledger.

(1) The basic objectives served by the general ledger are to:

(a) Provide summary information necessary to show the financial condition and operations of each Township fund.

(b) Establish control over the clerical accuracy of posting to the detailed account classifications.

(2) Regardless of the fund or fund group, the accounts of the general ledger shall fall into the following classifications:

(a) Assets, i.e., cash, investments and receivables.

(b) Liabilities.

(c) Revenues.

(d) Expenditures.

(3) Each asset and liability account shall be reconciled monthly to the details in the subsidiary and other ledger records.

(4) It shall be the responsibility of the Director of Fiscal Affairs to prepare and maintain the records of account.

§ 5-63 Investment of funds.

The Director of Fiscal Affairs, together with the Township Manager, shall have the authority to invest, redeem and reinvest funds available, but not immediately required, for Township operations, within the limits of programs previously approved by the Board of Commissioners. Such investments shall be made only in securities backed by the full faith and credit of the United States Government, by the Federal Deposit Insurance Corporation, by the Federal Savings and Loan Insurance Corporation or by the pledges of assets of the type and valuation as provided by law and approved by the Solicitor. Temporary investments may also be made in bank certificates of deposit supported by fully pledged collateral and repurchase agreements for United States Government or other allowable securities. It shall be the responsibility of the Director of Fiscal Affairs to maximize investment revenues consistent with applicable laws and minimum investment risk.

§ 5-64 Disbursement of funds.

A. No payment of funds shall be made unless provided for in the budget or otherwise authorized by the Board of Commissioners.

B. All checks, drafts or other orders of payment, except checks drawn upon the payroll fund, shall bear the signatures of the President of the Board, the Township Manager and the Director of Fiscal Affairs. A facsimile signature may be used for the President of the Board and the Township Manager with the approval of the signatory. A facsimile signature may not be used by the Director of Fiscal Affairs or his designee.

C. Payroll. All checks, drafts or other orders of payment against the payroll fund shall bear the signature of the Director of Fiscal Affairs or his designee.

§ 5-65 Purchase of goods and services. [1]

A. The Township Manager shall establish a purchasing system which shall provide the regulations, policies and procedures covering the acquisition of goods and services required by all departments in the administrative service of the Township, subject to the provisions of the Charter and this code.

B. Purchases and contracts in excess of the amount specified in § 52-2 of Chapter 52, Purchasing, shall be in writing and ap-proved by ordinance or resolution of the Board and, except where specifically stated otherwise in § C1207C of the Charter, shall be made through competitive bidding.[2]

[2] Editor's Note: Amended at time of adoption of Code; see Ch. 1, General Provisions, Art. I.

C. The rules and regulations governing competitive bidding shall follow procedures as set forth in Chapter 52, Purchasing.

D. Disqualification of bidders. A bidder may be disqualified for reasons including but not limited to the following:

(1) Previous unsatisfactory experience with the bidder by the Township or other recipient of the bidder's goods or services.

(2) False or misleading statements about a product or service.

(3) An attempt by a bidder to influence the purchase of goods or services by the Township through a gift, gratuity, favor or benefit or promise thereof to a Township officer or employee.

(4) Collusion with another bidder in an attempt to regulate the price, quality or availability of goods or services to the detriment of the Township.

E. Bid procedure.

(1) All bids shall be firmly sealed in an envelope and labeled to indicate the specific purchase for which the bid is submitted. Bids shall be opened at the appointed time by the Township Manager and at least two members of the Township administrative staff. All bid openings shall be open to the public. Any bids received after the bid opening has commenced shall be returned to the bidder unopened. Upon completion of the bid opening, the Township Manager and administrative staff will analyze the bid for conformance with the specifications and recommend to the Board of Commissioners the lowest responsible bid.

(2) The Board of Commissioners may authorize the waiver of the competitive bidding procedure in accordance with the provisions of § C1207C of the Charter and as follows:

(a) When the Board shall declare that emergency circumstances require that a purchase be made within a certain period of time.

(b) When delay would seriously hinder the effective delivery of essential Township services, thereby presenting a threat to the health, safety or welfare of the residents of the Township.

(c) When delay of purchases required by unforeseen circumstances would seriously handicap the effect of delivery of essential Township services.

(d) When there are no feasible alternatives to the emergency purchase.

[1] Editor's Note: See also Ch. 52, Purchasing.

§ 5-66 Sale of Township equipment and supplies.

The Township Manager shall have the authority to dispose of unneeded, obsolete or surplus equipment with a sale value of less than $2,500 in a manner most beneficial to the Township. Sale of equipment with a sale value of more than $2,500 shall be with the approval of the Board of Commissioners through competitive bidding, except that competitive bidding shall not be required for the sale of equipment, supplies or services to other governmental entities, agencies, authorities or political subdivisions.

§ 5-67 Annual audit.

[Amended 4-17-1979 by Ord. No. 1462]

As required by § C1108 of the Charter and in accordance with § 5-13 of this Administrative Code, an annual audit shall be provided using generally accepted accounting standards for the purpose of expressing an opinion as to the fairness of the Township's financial statements.

§ 5-68 Bonding of officials and employees.

A. In accordance with § C1303 of the Charter, the following officials and employees shall deliver a bond or bonds to the Township with a surety or sureties approved by the Board, conditioned upon the faithful performance of their official duties. The bond amounts shall be as follows:

[Amended 11-21-1995 by Ord. No. 1846-95; 3-15-2017 by Ord. No. 2344-17]

(1) Township Manager: in accordance with current standard auditing practices.

(2) Director of Fiscal Affairs: in accordance with current standard auditing practices.

(3) Finance Officer: 50% of the tax duplicate of the Township, or in accordance with current standard auditing practices.

B. All other officers and employees shall be covered by a public employees' blanket bond. All such bonds shall be approved by the Township Solicitor as to form and sufficiency, and the Township shall pay the cost of all such bonds.