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TULARE COUNTY ASSOCIATION OF GOVERNMENTS (TCAG) TULARE COUNTY TRANSPORTATION AUTHORITY (TCTA) TULARE COUNTY LOCAL AGENCY FORMATION COMMISSION (LAFCO) FINANCIAL MANAGEMENT AND ACCOUNTING PROCEDURES TCAG Accounting Policies and Procedures revised 6/30/2013 Page 2 Introduction ___________________________________________________________________________________ 8 The Organization _____________________________________________________________________________ 9 Reporting Entity _______________________________________________________________________________ 10 Fund Accounting ____________________________________________________________________________ 11 TCAG Fund Types ___________________________________________________________________________ 11 Explanation of Fiduciary Fund Type __________________________________________________________ 11 Explanation of Governmental Fund __________________________________________________________ 12 Measurement Focus and Basis of Accounting ________________________________________________ 12 Owp and Budget Principles __________________________________________________________________ 13 Snapshot of the Accounting Calendar ________________________________________________________ 13 Financial Management and Accounting ________________________________________________________ 15 Organization of the Account System _________________________________________________________ 15 General ______________________________________________________________________________________________ 15 Measurement Focus ___________________________________________________________________________________ 15 Basis of Accounting ____________________________________________________________________________________ 16 Funds and Accounting Groups___________________________________________________________________________ 16 Internal Controls ______________________________________________________________________________________ 17 Records and Reports ___________________________________________________________________________________ 17 Purchasing ____________________________________________________________________________________ 17 Responsibility and Control __________________________________________________________________ 17 General Responsibility __________________________________________________________________________________ 17 Expenditure Control ____________________________________________________________________________________ 18 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 3 Requisition, Purchasing, Procurement, and Contracting Procedures __________________________ 18 Purchase Orders and Requisition of Supplies ______________________________________________________________ 18 Bidding Procedures ____________________________________________________________________________________ 19 Professional Consultant Selection Procedure ______________________________________________________________ 29 Contract Preparation and Administration _________________________________________________________________ 30 Disadvantaged Business Enterprise Program (DBE) __________________________________________ 39 Policy Statement ______________________________________________________________________________________ 39 Establishment of Goal __________________________________________________________________________________ 40 Contract procedure ____________________________________________________________________________________ 41 Selection Criteria for Projects with DBE Goal ______________________________________________________________ 41 Set – Asides __________________________________________________________________________________________ 41 Counting DEB Participants ______________________________________________________________________________ 41 Records and Reports ___________________________________________________________________________________ 41 Complaints ___________________________________________________________________________________________ 42 Challenges ____________________________________________________________________________________________ 42 Costs of Administration of Policy ________________________________________________________________________ 44 Fixed Assets ________________________________________________________________________________ 44 General ______________________________________________________________________________________________ 44 Cost Allocation ________________________________________________________________________________ 45 Cost Allocation Plan ____________________________________________________________________________________ 45 Agency Trust Funds – Transportation Development Act ________________________________________________ 45 Designation ___________________________________________________________________________________________ 46 Basis of Tax Revenue Apportionments ___________________________________________________________________ 46 Apportionment of Fund Tax Revenues ___________________________________________________________________ 46 Apportionment of Fund Interest Revenues ________________________________________________________________ 47 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 4 Disbursement of Fund Assets ___________________________________________________________________________ 47 Grant Tracking _________________________________________________________________________________ 47 Grant Activities ________________________________________________________________________________________ 47 Revenues ___________________________________________________________________________________ 48 Fee and Charges ______________________________________________________________________________________ 48 Loans ________________________________________________________________________________________________ 48 Invoicing and Accounts Receivable ______________________________________________________________________ 48 Deposits ____________________________________________________________________________________ 49 Processing Deposits from Customers/Clients/Agencies _____________________________________________________ 49 Recording and Tracking Payments _______________________________________________________________________ 49 Mail Reciepts __________________________________________________________________________________________ 50 Over the Counter Receipts ______________________________________________________________________________ 51 Expenses ______________________________________________________________________________________ 52 Manual Warrant Procedures ____________________________________________________________________________ 52 Payroll _______________________________________________________________________________________________ 54 Benefits ______________________________________________________________________________________________ 55 Travel Reimbursement _________________________________________________________________________________ 56 Accounts Payable Processing ____________________________________________________________________________ 60 Measure R ____________________________________________________________________________________ 63 Measure R Administration Procedures _________________________________________________________ 70 Preliminary Review/ General Requirements _______________________________________________________________ 70 Project Initiation_______________________________________________________________________________________ 71 Reimbursement Requests ______________________________________________________________________________ 71 Supplemental Amendments and Change Orders ___________________________________________________________ 72 Project Completion/Close Out ___________________________________________________________________________ 72 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 5 Work Plan___________________________________________________________________________________ 73 Agreements _________________________________________________________________________________ 73 Ledgers _____________________________________________________________________________________ 73 Quarterly Reports ___________________________________________________________________________ 74 Audits ______________________________________________________________________________________ 74 TDA ___________________________________________________________________________________________ 74 LTF and STA processing _____________________________________________________________________ 74 LTF _________________________________________________________________________________________ 75 STA _________________________________________________________________________________________ 76 AVA ___________________________________________________________________________________________ 76 COS (transit) __________________________________________________________________________________ 76 Reconciliations and Reporting _________________________________________________________________ 77 Monthly _____________________________________________________________________________________ 77 FHWA ________________________________________________________________________________________________ 77 Quarterly ___________________________________________________________________________________ 78 FHWA ________________________________________________________________________________________________ 78 Lobbying Report _______________________________________________________________________________________ 78 Annually ____________________________________________________________________________________ 78 Audits _________________________________________________________________________________________ 78 Year End Processing ___________________________________________________________________________ 79 General Ledger Reconciliation _______________________________________________________________ 79 Reporting ___________________________________________________________________________________ 79 Audit Preparation and Reporting ____________________________________________________________ 79 OWP and Budget Administration _______________________________________________________________ 79 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 6 Purpose ______________________________________________________________________________________________ 79 Mandate ______________________________________________________________________________________________ 79 Organization __________________________________________________________________________________________ 79 Contents _____________________________________________________________________________________________ 80 Fiscal Year ____________________________________________________________________________________________ 80 Cycle _________________________________________________________________________________________________ 80 Preparation, Review and Adoption___________________________________________________________ 80 General Participation ___________________________________________________________________________________ 80 Preparation ___________________________________________________________________________________________ 81 Adoption _____________________________________________________________________________________________ 81 Expenditure Control, Transfers, and Supplemental Requests _________________________________ 81 Expenditure Control ____________________________________________________________________________________ 81 Budgetary Transfers ___________________________________________________________________________________ 81 Supplemental Requests ________________________________________________________________________________ 82 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 7 Introduction The management of the Tulare County Association of Governments (TCAG) is responsible for establishing and maintaining a system of internal accounting control and that transactions are executed in accordance with generally accepted accounting principles. The Tulare County Association of Governments also sits as the Tulare County Transportation Authority (TCTA) and staffs the Tulare County Local Agency Formation Commission (LAFCO). The Accounting Procedures Manual is intended to be a guide for the fiscal procedures of TCAG. The manual will serve both the management and the accounting staff to maintain good internal accounting and administrative controls, assist in the expected flow of accounting documentation, and to establish a uniform and systematic accumulation of information and statistical data necessary to fulfill the financial and accounting requirements of TCAG, TCTA and LAFCO. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 8 Annual audits of the Tulare County Association of Governments by an Independent Certified Public Accountant will be performed in accordance with the State of California audit requirements. The California Legislation has mandated the performance of financial audits for all local governmental entities in the State of California. A single audit report is also prepared in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and in conformance with OMB Circular A133. TCAG’s annual audit is routinely filed with each member government, the California State Controller’s Office and the U.S. Department of Transportation. TCAG incurs costs which must be borne by specific projects. These costs can be identified as either direct or indirect costs. Direct costs (i.e., payroll, contractual and items purchased for a specific project) can be identified specifically with a particular project. Indirect Costs (i.e., telecommunications, postage, office supplies, depreciation, building maintenance, utilities, and risk insurance) cannot be easily identified specifically with a particular project. These costs are designated as such and are not reimbursable from any state or federal funds. TCAG’s cost accounting system for labor (WINCAMS) provides for identification of all labor costs directed to a particular project or work element. Indirect labor costs are calculated each pay period and appropriately allocated to work elements. Tulare County’s Financial accounting system (AFIN) provides the means for payment of invoices, staff salaries, and interdepartmental charges and tracking of deposits. AFIN provides a General Ledger, balance sheet, and trial balance. The Organization The Tulare County Association of Governments is a Joint Powers Agency created on the 4th day of May, 1971 by the County of Tulare and the Cities of Dinuba, Exeter, Farmersville, Lindsay, Porterville, Tulare, Visalia and Woodlake. The role of the Tulare County Association of Governments is to serve the functions designated by the signatories to the agreement. Generically, TCAG’s role is to foster intergovernmental coordination both TCAG Accounting Policies and Procedures revised 6/30/2013 Page 9 within Tulare County as well as with neighboring jurisdictions, the other regional agencies in the San Joaquin Valley, the state of California and various Federal agencies. The Tulare County Association of Governments is directed by a sixteen member board composed of the locally elected officials and three members-at-large. The Board has five members of the Tulare County Board of Supervisors and one member from each of its incorporated cities. The members-at-large are appointed by a majority of the members on the current board. The Tulare County Association of Governments minus the members-at-large sit as the Tulare County Transportation Authority. The activities of TCAG are carried out by a professional staff. The professional staff is comprised of County of Tulare employees hired for TCAG. As of 07/01/2010, TCAG staff began staffing the Tulare County Local Agency Formation Commission. TCAG prepares its financial statements in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. Reporting Entity The Tulare County Association of Governments, the regional transportation planning agency for the County of Tulare, was created pursuant to Title 3 of Government Code Section 29532. TCAG is responsible for transportation planning activities as well as administration of the Local Transportation Fund and the State Transit Assistance Fund in accordance with the applicable sections of the Government Code, Public Utilities Code and Administrative Code included within the Transportation Development Act. The Council also is the Local Transportation Authority (LTA) pursuant to Section 1, Division 19 (commencing with Section 180000) of the Public Utilities Code as designated by the Tulare County board of Supervisors. In 2006, the Tulare County voters passed an ordinance (Measure R) resulting in a sales tax increase of one-half of one percent for transportation improvements for the next 30 years. TCAG oversees the collection and distribution of the sales tax in accordance with the Measure R Expenditure Plan as the Tulare County Transportation Authority. TCAG also serves as the census data center, operates a research and travel forecasting model, prepares a regional housing needs plan, staffs the Local Agency Formation Commission (LAFCO) and provides technical assistance to local agencies and member jurisdictions as needed. Additionally, TCAG oversees the Abandon Vehicle Abatement Program (AVA) and the College of the Sequoia xxxx. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 10 Fund Accounting TCAG uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Funds and account groups are organized and accounted for as separate fiscal and accounting entities with self-balancing sets of accounts. TCAG uses the fiduciary funds. TCAG Fund Types TCAG uses what are considered Fiduciary Funds. They include, TCAG General Fund, Measure R, Abandoned Vehicle Abatement (AVA), Local Agency Formation Commission (LAFCO), LTF funds and STA funds. Explanation of Fiduciary Fund Type Fiduciary fund reporting focuses on net assets and changes in net assets.. The three types of trust funds should be used to report resources held and administered by the reporting government when it is acting in a fiduciary capacity for individuals, private organizations, or other governments. These funds are distinguished from agency funds generally by the existence of a trust agreement that affects the degree of management involvement and the length of time that the resources are held. GASB 34 Paragraph 69. TCAG Fiduciary Funds - The Trust Funds are used to account for financial resource and assets held by TCAG in a trustee capacity for individuals, private organizations, other governments, and/or other funds. These funds are considered expendable trust funds and are accounted for in essentially the same manner as the TCAG Accounting Policies and Procedures revised 6/30/2013 Page 11 governmental fund using a modified accrual basis of accounting. TCAG’s Fiduciary Trust Funds include: TCAG General Fund, the Local Transportation Funds, State Transit Assistance Funds, Local Agency Formation Commission Fund (LAFCO) and the Measure R Fund. The Local Transportation Fund and State Transit Assistance Funds represent allocations under the Transportation Development Act whereby agencies wishing to receive funds file a claim with TCAG. The LAFCO Fund represents dues from member agencies and application fees for coordinating logical and timely changes in local governmental boundaries, conducting special studies which review ways to reorganize, simplify, and streamline governmental structure and preparing Spheres of Influence for each city and special districts within each county. The Measure R Fund represents the additional sales tax approved for use on transportation improvements. Explanation of Governmental Fund Governmental funds are often referred to as "source and use" funds. These are the funds through which most governmental functions typically are financed. The fund types included in this category are general, special revenue, capital projects, debt service, and special assessment funds TCAG Governmental Funds – Abandoned Vehicle Abatement Fund serve primarily as a pass-through fund between member agencies and TCAG. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All Fiduciary Funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by all Fiduciary Funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means that the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues which TCAG Accounting Policies and Procedures revised 6/30/2013 Page 12 are accrued include sales tax and interest income. Expenditures are recognized in the accounting period in which the liability is incurred. Owp and Budget Principles On or before April 15, the Tulare County Association of Governments shall prepare a DRAFT budget for the ensuing fiscal year to commence on July 1, and shall submit the same for approval by the TCAG board for the carrying out of tasks within the approved work program for the year. Any use of amendments of the budget shall be at the sole discretion of the Tulare County Association of Governments Board and submitted to Cal Trans by May 1st of the Current Fiscal Year. Operating budgets are prepared on the modified accrual basis of accounting. Budgetary control and the legal level of control are at the work element level as well as the object level. Amendments, appropriation transfers between work elements and objects and transfers from contingencies must be approved by the Tulare County Association of Governments Board unless previously approved in the current year OWP. Supplemental appropriations financed by unanticipated revenues also must be approved by the Board. Snapshot of the Accounting Calendar January OWP preparation begins for the new Fiscal Year Lobbying quarterly report is due to the Secretary of State (on line processing) FHWA quarterly report is due to Caltrans (paper processing) Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) February Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) Expense estimates requested from other County Departments for OWP TCAG Accounting Policies and Procedures revised 6/30/2013 Page 13 March Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) OWP ready for new FY and sent to FHWA for review and discussion April Lobbying quarterly report is due to the Secretary of State (on line processing) FHWA quarterly report is due to Caltrans (paper processing) Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) OWP to board for discussion and review May Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) Approved OWP presented to Board Approved budget entered into County Web Budget June Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) July Lobbying quarterly report is due to the Secretary of State (on line processing) FHWA quarterly report is due to Caltrans (paper processing) Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) August Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) September Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) TCAG Accounting Policies and Procedures revised 6/30/2013 Page 14 October Lobbying quarterly report is due to the Secretary of State (on line processing) FHWA quarterly report is due to Caltrans (paper processing) Request for audit extension to the board for the Cities to extend it for 90 days (March 31st) Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) November Letter to City/County participants in the TDA distribution that audits are due December 31 Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) December TDA Audits due December 31(unless extended by board approval to March 31). When received transmitted to SCO/TDA and Caltrans. TCAG Audits due December 31. When received transmitted to SCO. Monthly General Ledger reconciliation for trust funds: 784 Tcag,783 MR,794 Lafco,347-382 City STP accounts, 471 STA,483-491 City LTF/STA Accounts,402 Abandon Vehicle Abatement (AVA) Financial Management and Accounting Organization of the Account System General Financial records shall be maintained in accordance with generally accepted accounting principles, applicable grant agreements, OMB Circular A-87 and applicable state regulations governing special districts. Measurement Focus The Tulare County Association of Governments shall utilize the "spending" measurement focus. This focus requires that only current assets and current liabilities are generally reported on the balance sheet and the operating statement present financial flow information (i.e., revenues and expenditures). TCAG Accounting Policies and Procedures revised 6/30/2013 Page 15 Basis of Accounting Financial transactions shall be accounted for by the use of the modified accrual basis of accounting, whereby revenues are recognized when they become both measurable and available to finance expenditures of the current period, and expenditures are generally recognized when the related fund liabilities are incurred. Funds and Accounting Groups The Tulare County Association of Governments shall maintain separate and distinct funds. TCAG General Fund No. 784: This fund shall be managed as a general fund used to account for all financial resources and activity not accounted for in another TCAG fund. This fund also accounts for financial activity using Federal Highway Administration PL funds and Federal Transit Administration planning funds. Local Transportation Funds No. 483 (City of Dinuba), No. 484 (City of Exeter), No. 485 (City of Farmersville), No. 486 (City of Lindsay), No. 487 (City of Porterville), No. 488 (City of Tulare), No. 489 (City of Visalia), No. 490 (City of Woodlake), and No. 491 (County of Tulare): These funds shall be managed as an agency trust fund to account for financial activity under Articles 3, 4, 4.5 and 8 of the Transportation Development Act. State Transportation Assistance Funds No. 471 (main account), 347 (City of Dinuba), 349 (City of Exeter), 351(City of Farmersville), 361(City of Lindsay), 366 (City of Porterville), 379 (City of Tulare), 381 (City of Visalia), 382 (City of Woodlake), 491(County of Tulare): These funds shall be managed as an agency trust fund to account for financial activity under Article 6.5 of the Transportation Development Act. Measure R Fund No. 783: This fund will be managed as a special revenue fund to account for financial activity of Measure R Sales Tax revenues. LAFCO General Fund No. 794: This fund will serve as the general fund used to account for all financial resources and activity for LAFCO. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 16 Abandoned Vehicle Abatement Fund No. 402: This fund will serve as a pass-through for AVA revenues collected by the State of California for abatement purposes and distributed to member agencies by TCAG. Internal Controls TCAG shall organize and assign work duties and responsibilities in a way that ensures that established procedures shall require proper authorizations by designated officials for all actions taken. Records and Reports In accordance with the Joint Powers Agreement, the Treasurer and Auditor-Controller of the County of Tulare shall serve as the treasurer and controller for TCAG. TCAG shall keep and maintain complete and accurate financial records and prepare required reports in accordance with the uniform system of accounts and records, adopted by the Controller of the State of California. TCAG shall reconcile financial information with policies that are developed by the County of Tulare in its capacity as treasurer and auditor/controller. Purchasing Responsibility and Control General Responsibility Except as otherwise specified, the Executive Director and Financial Manager shall be deemed responsible for all purchases of and contract execution for materials, supplies, furnishings, equipment and services required TCAG Accounting Policies and Procedures revised 6/30/2013 Page 17 by TCAG in the performance of daily operations. Each such purchase shall be made on behalf of the Tulare County Association of Governments. Expenditure Control Once the annual operating budget has been adopted by the Board, it shall be considered the controlling documentary plan of expenditure. As such, purchases and acquisitions shall be processed within the limitations established by the amount of budgeted resources allocated to each object classification by TCAG. Requisition, Purchasing, Procurement, and Contracting Procedures Purchase Orders and Requisition of Supplies The following procedures will be used: First, check with the responsible office assistant to determine if the item needed is in stock. If the item is in stock, the responsible office assistant will obtain it and deliver it. If the item is not in stock, and is needed immediately, the responsible office assistant will request approval of the Executive Director or Chief Accountant/Finance Manager to purchase the item(s). If the item can be purchased through an existing purchase order established between the County of Tulare and a vendor i.e. Office Depot, the responsible office assistant will place the order. If the item(s) must be ordered from another vendor, the responsible office assistant will request a purchase order number from the Accountant. It will be the responsibility of the Accountant to maintain the purchase order number log which will include the following information: purchase order number, staff person requesting the item, description of the item(s), vendor, and date purchased and received and purchase price After the purchase is made, receipts and packing slips will be returned to the responsible office assistant. All merchandise will be inspected by the responsible office assistant. If the order is incomplete or unacceptable the responsible office assistant will take steps to clear up any discrepancies. The receipt will then be channeled to the Accountant. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 18 For minor purchases of supplies, less than $20.00 and with the prior approval of the Executive Director or designee, an employee may purchase the item and be reimbursed for the cost by including the item on the expense sheet. All invoices will be submitted to the Accountant who will request payment from the County Auditor. The Accountant will match the purchase order, receipt or packing slip and invoice to keep on file. Bidding Procedures 1. Unless otherwise ordered by resolution of the Board, all supplies, materials, equipment and services acquired by the Purchasing Agent (County of Tulare Purchasing) shall be purchased from the lowest reasonable bidder after taking written bids if the estimated total cost of the commodities or services required from a class of vendors exceeds the sum of Fifty Thousand Dollars ($50,000). However the Purchasing Agent is not required to call for bids for the following transactions: (a) Purchase of proprietary drugs, library books, periodicals, standard school supplies, repair parts for motor vehicles and construction equipment, and gasoline, diesel fuel and other petroleum products used in and for motor vehicles. (b) Fixing the prices to be paid to newspapers for advertising. (c) Contracting for transportation services at the minimum rates established by the Public Utilities Commission of the State of California. (d) Purchase of services, with or without the furnishing of material from independent contractors. (e) Purchase of personal property or services from price lists of other State governmental entities or of associations of State governmental entities where such price lists have been compiled in such a manner as to insure the lowest prices available to the County. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 19 2. Written invitations for bids shall contain the date and hour of bid opening, the name of the department to be supplied, the requisition number, delivery date, quantities and complete specifications or description of the items or services to be supplied. The Purchasing Agent shall mail or tender and invitation for bid to any prospective bidder requesting the specific invitation; and it is desirable generally to seek bids from a reasonable number of prospective bidders. Copies of the written invitations for bids shall be posted on a bulletin board available to the public, and bids shall be opened and read in public on the date and hour specified in each invitation for bids. 3. In the event the lowest complete bid is rejected and the award is made to a higher bidder, the reasons for such action shall be set forth in a memorandum and attached to the rejected bid. 4. Notwithstanding the necessity for bids, if bids have been solicited by the Purchasing Agent, as required in this Article, and no bids have been received, or it is determined by the Purchasing Agent that it would not be in the best interests of the County to accept a bid because the bids received are in excess of the budgetary funds available for the purchase, or are not representative of the price for which the required commodity or service is available, the Purchasing Agent may reject all bids and solicit new bids, or may negotiate with individual vendors to obtain the commodity or service under terms that serve the best interests of the County. 5. Bids shall be kept on file for a period of four (4) years. Thereafter they may be destroyed. Section 3. INSTRUCTIONS TO BIDDERS Failure to respond to bid may constitute removal from bidder’s list. If unable to provide the commodities stated herein, bidder shall return bid prior to closing date stating the reason why unable to provide bid. 1. Preparation of bids (a) All information requested of the bidder shall be entered in the appropriate space(s) on the form. Failure to do so may disqualify your offer. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 20 (b) All information shall be typewritten or entered in ink. Mistakes may be crossed out and corrections inserted before submissions of your bid. Corrections shall be initialed in ink by the person signing the bid. (c) Corrections and/or modifications received after the closing time specified will not be accepted. (d) Bids will not be accepted unless signed in ink (not typed) in the appropriate space(s) by an authorized officer or employee of the bidder. (e) Bids must be submitted by the closing date or prior to the time specified to be considered. No telegraphic, facsimile or telephone bids will be accepted. (f) Any bids received after the closing date shall be returned unopened to the bidder. (g) Submit bid only in a sealed envelope with the bid number and closing date on the outside of the envelope. (h) All bid prices shall be Free On Board (F.O.B) County of Tulare. (i) Bid prices shall remain open and valid subject to acceptance for sixty (60) days after bid closing date. (j) Prices bid shall remain firm for a minimum of 120 days after award to cover subsequent purchase requirements. (k) Prices bid by bidder are considered accurate and cannot be withdrawn after the bid is closed. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 21 (l) Upon submission of bid documents, all such documents shall become the property of the County. (m) Time of delivery shall be stated as the number of calendar days following receipt of the order by the bidder, to the receipt of the good or services by the County. Time of delivery may be a consideration in the award. (n) Prices will be considered as net if no cash discount is shown. (o) Provide any other information not specifically requested which may be considered by the Purchasing Agent. (Purchasing Agent is not obligated to consider any information not specifically requested in this bid request.) (p) Tulare County generally solicits bids from a wide variety of bidders which may include retailers, wholesales, suppliers, distributors, etc. 2. Brand Names/Quality (a) Brand names and numbers, when used, are for reference to indicate the character or quality desired. (b) Equal items will be considered, provided your offer clearly describes the article. Offers for equal items shall state the brand and number (or level of quality if item cannot be identified by brand and number). (c) Equal items will not be considered if identical supply has been determined a necessity and the notation NO SUBSTITUTE has been entered. (d) When brand, number, or level of quality is not stated by the bidder, it is understood the offer is exactly as specified. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 22 (e) The Purchasing Agent shall in all instances be the final judge in determining whether the items bid are acceptable to the County, and whether the items bid are equal in quality and utility to the specified articles. 3. Samples (a) Samples of articles, when required, shall be furnished free of cost of any sort to the County of Tulare. (b) Samples of articles selected my be retained for future comparison. (c) Samples which are not destroyed or consumed by testing, or which are not retained for future comparison will be returned upon request at bidder’s expense. 4. Quantity & Quality of Materials or Services The successful bidder shall furnish and deliver the quantities designated by the Purchasing Agent. Packing slips which clearly identify the merchandise and a listing of the County of Tulare’s Purchase Order number must accompany every delivery. All materials, supplies or services furnished under contract or Purchase Order shall be in accordance with the county specifications. Materials or supplies which, in the opinion of the Purchasing Agent, are not in accordance and conformity with such specifications shall be rejected and promptly removed from the County premises at the bidder’s or contractor’s expense. 5. Award The County of Tulare reserves the right: (1) to award bids received on the basis of individual items, or groups of items, or on the entire list of items; (2) to reject any or all bids, or any part thereof; (3) to waive any informality in the bids; (4) to make partial awards or award to more than one vendor (if your bid prices are TCAG Accounting Policies and Procedures revised 6/30/2013 Page 23 based only on an “all or none” award you must so specify in your bid); and (5) to accept the bid that is in the best interest of the County of Tulare. The Purchasing Agent’s decision shall be final. A combination of the following factors will be considered in awarding this bid. These factors are not necessarily listed in order of priority. (a) Prices. (b) Bidder’s previous record of performance and service. (c) Ability of bidder to render satisfactory service in this instance. (d) Quality and conformance to specifications. The County shall be the sole judge in making this determination. 4. Rights to Reject Bids The County of Tulare Purchasing Agent reserves the right to reject any and all bids and to waive any informalities or irregularities in this bid. 5. Taxes (a) Tulare County is exempt from payment of Federal Excise Tax. No Federal Tax should be included in the price. Exemption Certificates will be furnished when applicable. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 24 (b) Unless otherwise definitely specified, the unit price stated herein does not include California State Sales Tax. Lump sum bids for labor and materials shall include all applicable tax. 6. Indemnification (a) The bidder or contractor shall hold the County of Tulare, its officers, agents, and employees harmless from liability of any nature or kind because of the use of any copyrighted composition, secret process, patented or unpatented invention, articles or appliances furnished or used under this bid, and agrees to defend, at bidder’s own expense, any and all actions brought against the County of Tulare or bidder because of the unauthorized use of such articles. (b) Contractor shall hold harmless, defend and indemnify the County, its agents, officers and employees from and against any liability, claims, actions, costs, damages, or losses of any kind, including death or injury to any person and/or damage to any property, including County property arising out of the acts or omissions of Contractor or its agents, officers and employees under this Contract. This indemnification specifically includes any claims that may be made against County by any taxing authority asserting that an employer-employee relationship exists by reason of this Contract, the cost of any penalty or sanction imposed by any agency with regulatory authority over the activities carried out by Contractor, and any claims made against County alleging civil rights violations by Contractor under Government Code sections12920 et Seq. (California Fair Employment and Housing Act). Contractor specifically agrees to hold harmless and indemnify County for any and all claims arising out of any injury, disability, or death of Contractors employees or agents. This indemnification obligation shall continue beyond the term of this Contract as to any acts or omissions occurring under this Contract or any extension of this Contract. 7. Independent Contractor Status This Contract is entered into by both parties with the express understanding that Contractor will perform all services required under this Contract as an independent contractor. Nothing in this Contract shall be construed to constitute the Contractor or any of its agents, employees or officers as an agent, employee or officer of County. Contractor agrees to advise everyone it assigns or hires to perform any duty under this Contract that they are not employees, agents or officers of County. Contractor shall be solely responsible for determining the means and methods of performing the specified services and County shall have no right to control or exercise TCAG Accounting Policies and Procedures revised 6/30/2013 Page 25 any supervision over Contractor as to how the services will be performed. As Contractor is not County’s employee, Contractor is responsible for paying all required state and federal taxes. In particular, County will not: (a) Withhold FICA (Social Security) from Contractor’s payments. (b) Make state or federal unemployment insurance contributions on Contractor’s behalf. (c) Withhold state or federal income tax from payments to Contractor. (d) Make disability insurance contributions on behalf of Contractor. (e) Obtain unemployment compensation insurance on behalf of Contractor. Notwithstanding this independent contractor relationship, County, through the Purchasing Agent, shall have the right to designate the sites at which services are to be performed, and to monitor and evaluate the performance of Contractor to assure compliance with this Contract. 8. Cash Discounts In connection with any cash discount specified on this bid, time will be computed from the date of complete delivery of the supplies or equipment as specified, or from date correct invoices are received if the latter date is later than the date of delivery. For the purpose of earning the discount, payment is deemed to be made on the date of mailing of the County warrant check. 9. Default by Bidder TCAG Accounting Policies and Procedures revised 6/30/2013 Page 26 (a) Rights and remedies of County for default: In case of default by bidder, the County may procure the articles of service from another source and may recover the loss occasioned thereby from any unpaid balance due the bidder or by proceeding against the bidder’s performance bond, if any, or by suit against the bidder. The prices paid by the County shall be considered the prevailing market price at the time such purchase is made. (b) Inspection on deliveries or offers for delivery, which do not meet specifications, will be at the expense of bidder. 10. Cancellation The County of Tulare reserves the right to cancel all Purchase Orders or agreements with due cause giving a ten day written notice or may cancel without cause, only a thirty day written notice. Purchase Orders or agreements which extend into a subsequent fiscal year will automatically cancel if the Tulare County Board of Supervisors does not appropriate funds for the goods and/or services under the Purchase Order or agreement. 11. Non-Funding Clause Funds provided for commodities or service under the terms of this bid is contingent on availability of public funds. Amounts due may be modified or terminated at any time by the County upon thirty (30) day notice should sufficient funds not be allocated during those terms. Notice shall be fully given in writing or through service in person or by first class mail. 12. Local Preference (Section 1-03-1301 of the Tulare County Ordinance Code): (a) Whenever the County purchases supplies, materials, equipment or services for the County through the use of competitive bids, the County in evaluating the price for such supplies, materials and/or equipment shall determine if the lowest responsible bidder is a local vendor as defined in this section; and, if so, the contract shall be awarded to such vendor. If low bidder is not a local vendor, any local vendor who submitted a bid which was written within five percent (5%) of the low bid announced by the County shall have the option of submitting a new bid within forty-eight (48) hours (not including TCAG Accounting Policies and Procedures revised 6/30/2013 Page 27 weekends and holidays) of the time indicated in the bid documents for the opening bid. Such new bid must be in an amount less than or equal to the low bid announced by the County. County shall award the contract to the local vendor submitting the lowest responsible bid within said 48 hour period. If no new bids received within said 48 hour period, the contract shall be awarded to the original bidder as announced by the County (b) “Local vendor” shall mean any business which: (1) has had a fixed office or distribution point located in and having a street address within the County of Tulare for at least six (6) months immediately prior to the issuance of the request for bids by County; and (2) hold any required business license by the County or any city within the County; and, (3) employs at least one (1) full-time or two (2) part-time employees whose primary residence is located within the County, or if the business has no employees, shall be at least fifty percent (50%) owned by one or more persons whose primary residence is located within Tulare County. (c) Any vendor claiming to be a local vendor as defined above, shall so certify to the Purchasing Agent by indicating “yes or no” below and signature on bid document. The County Purchasing Agent shall have sole discretion to determine if a vendor meets the definition of a “local vendor” (d) Any person or business falsely claiming to be a local vendor shall be ineligible to transact any business with the County for a period of not less than three (3) months or not more than twenty-four (24) months as determined in the sole discretion of the Purchasing Agent. The County shall also have the right to terminate all or any part of any contract entered into with such person or business. (e) Prior to the County declaring any person or business not a “local vendor” or ineligible to transact business with the County, such person or business shall be entitled to a public hearing before the Board of Supervisors and to a five (5) day notice of the time and place thereof. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 28 (f) This preference shall not apply to transactions required by state or federal statutes or regulations to be awarded to the “lowest responsible bidder,” or otherwise exempted from local preferences. 13. Participation The County is currently a member of the Central Valley Purchasing Group which consists of Fresno, Kern, Kings and Tulare Counties, and the Political Subdivision, Municipalities and Tax Supported Agencies within these County boundaries. Whenever possible, these entities wish to co-op (piggy-back) on existing bids or proposals. Please state if your bid or proposal will or will not be extended to these entities under the same terms and conditions as stated in this bid or proposal. 14. Information regarding the results of any bid may be obtained at the Tulare County Purchasing Department, Courthouse Room 3, 221 South Mooney Blvd., Visalia CA 93291 for a period of ninety (90) days from the due date of the bid. Bid tabulations will be available for review three (3) days after bid opening date and can be obtained from the Purchasing Department clerical staff. 15. Special Conditions in this Request for Bid, if contrary to General Conditions, supersedes these General Conditions. Professional Consultant Selection Procedure The purpose of this policy is to establish an open, fair and competitive process for selection of qualified professional consultants to perform work for TCAG. A Request for Proposals an (RFP) will be issued whenever there is a need for work to be performed by other than TCAG staff. All Requests for Proposals and Request for Qualifications will be submitted to the Executive Officer or Chief Accountant/Finance Manager for review and approval prior to distribution outside of TCAG. Sample RFP is attached as Attachment (A) TCAG Accounting Policies and Procedures revised 6/30/2013 Page 29 Contract Preparation and Administration The purpose of this procedure is to establish an effective and efficient way to prepare and administer contracts and/or agreements between TCAG and a third party. It will be the responsibility of the Project Manager assigned to the project, and Financial Manger to prepare a draft contract using the standard TCAG contract, including date and signature lines. The draft contract/agreement shall be reviewed by the Chief Accountant/Finance Manager. If the draft differs from previously approved contracts, the draft may be submitted to TCAG Counsel for review and approval as to form. A contract folder shall be created, for each contract. The folder must contain a criteria checklist. The checklist is attached on the following page. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 30 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 31 Request for Proposal Title: Date Released: Due Date: RFP File Check-List Copy of RFP Financial Justification Mailing List Proof of Advertisement Supplemental Information/Memos (if any) List of proposals received, including firm name TCAG Accounting Policies and Procedures revised 6/30/2013 Page 32 Score Sheet Staff Report and Resolution Regret Letter to firms Award letter to selected firm Proposal from firm awarded contract (in file) Remaining proposals stored in TCAG library or in file Contract Certificate of Insurance Extensions/Amendments (if any) Each contract shall be prepared utilizing the following basic elements: A clear and accurate identification of the parties; TCAG Accounting Policies and Procedures revised 6/30/2013 Page 33 The date on which the agreement was entered into; A statement or series of statements explaining why consultants are being used rather than staff; A clear and complete statement as to the purpose of the agreement; A clear and complete statement of the work, service or product to be performed, rendered or provided (i.e., work activities and end products); A time schedule for performance and completion of the contract; A clear and complete statement as to the procedures that will govern progress reports; an explicit statement of the exact amount of payment and basis upon which payment is to be made; A project budget which itemizes expenditures and revenues of the agreement (including in-kind); and A contract termination date. Contracts which were subject to the approval of the TCAG Board must also have such approval for a modification or amendment or termination, unless expressly stated as terms of the agreement and with the following exception: An amendment to a contract or agreement which only extends the original time for completion of performance to a date within the same fiscal year, and does not increase the monetary amount is exempt. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 34 Contracts which were subject to the approval of the Executive Director must have such approval for modifications, amendments of $25,000 or less and terminations. Any modification/amendment of more than $25,000 must be approved by the TCAG/TCTA Board. It shall be the responsibility of the Project Manager to monitor the progress of the work as performed by the consultant. The Project Manager shall be responsible for reporting to the Executive Director any discrepancies which occur between the performance of the task and the requirements of the approved contract. It shall be the responsibility of the Chief Accountant/Finance Manager to monitor the fiscal arrangements of the contract. The Chief Accountant/Finance Manager shall ensure that all appropriate fiscal reports are completed and maintained in accordance with the terms of the contract and acceptable accounting procedures. In addition, the Director of Chief Accountant/Finance Manager shall maintain the official signed contract and any support material. Such files shall be kept until the project has been audited. Procuring Procedures: First the projected cost of the project should be budgeted for in the OWP. Then the necessity of the project should be assessed. Then the project should be presented to the TCAG board for approval of the RFP request. If the project has been included in the OWP, then the Director or designee may approve the RFP request. Once the approval has been obtained, the creation of RFP checklist and RFP file may begin. Then the cost analysis should be prepared. The next step is to prepare the RFP and a mailing list. The RFP is then reviewed in-house. Then the Proposal Review Team should be assembled. Once the RFP language has been finalize, it should be distributed and advertised in a manner accessible to potential vendors. Once proposals have been received from vendor, “thank you” letters should be sent out. Then the proposals should be reviewed and scored. Once a vendor has been selected, a Board agenda should be presented recommending a vendor. After Board approval, “regret” and “award” letters should be sent out. Then a draft agreement should be created and reviewed. The draft should then be sent to the vendor for review. Once the vendor returns the draft, the agreement should be sent to County Counsel along with vendor’s changes. Once County Counsel returns approved agreement, three copies should be sent to the vendor for signature. Insurance certificate should also be requested at this time. Once signed copies have been received, the Executive Director should sign them. Then County Counsel should sign the copies. Then the list of documents gathered so far should be compared against the RFP checklist. Then the vendor should be notified that they may begin work on the project. Insurance certificate should be tracked for renewal before the expiration date. The invoices should be reviewed for accuracy of services, and billed amount as compared to the budgeted amount. Any amendments to the agreement must be within the scope of work. They must be approved by the Board prior to the work commencing. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 35 A “Procurement Flowchart” is included on the following page. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 36 LEAVE A BLANK PAGE FOR THE “Procurement Flowchart” TCAG Accounting Policies and Procedures revised 6/30/2013 Page 37 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 38 Disadvantaged Business Enterprise Program (DBE) Policy Statement It is the policy of TCAG to utilize Disadvantaged Business Enterprise (DBE) firms as defined in 49 CFR Part 26 in all aspects of contracting to the maximum extent feasible. This policy which is fully described herein constitutes policy and commitment to substantially involve DBE firms in all program activities funded wholly or in part by any U.S. Department of Transportation modal element. This Agency, its contractors and subcontractors, who are the recipients of Federal aid funds, agree to ensure that DBE firms have the maximum opportunity to participate in the performance of contracts and subcontracts. In this regard, this Agency and all its contractors and subcontractors will take all reasonable steps in TCAG Accounting Policies and Procedures revised 6/30/2013 Page 39 accordance with 49 CFR Part 26 to ensure that DBE firms have the maximum opportunity to compete for and perform contracts. To be eligible as a DBE firm, that firm must meet current California Department of Transportation (Caltrans) standards (http://www.dot.ca.gov/hq/bep/ ), as well as those in 49 CFR Part 26. Establishment of Goal A. The DBE goal will be established and updated as needed and on a per contract basis. The overall goal will be based on planned contract activity for the coming year. The overall goal established will be subject to methodology and procedures established in 49 CFR Part 26, Sub-parts (C) and (D) and take effect on July 1 of each year. C. Projects which do not contain a specific goal will contain the following provisions in the contract: 1. Policy. It is the policy of the Department of Transportation that disadvantaged business enterprises as defined in 49 CFR Part 23 shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with federal funds under this agreement. Consequently, the DBE requirements of 49 CFR part 23 apply to this agreement. 2. DBE Obligation. The recipient or its contractor agrees to ensure that disadvantaged business enterprises as defined in CFR 49 Part 23 have the maximum opportunity to participate in the performance of contracts and subcontracts in whole or in part with federal funds provided under this agreement. In this regard, all recipients or contractors shall take all necessary and reasonable steps in accordance with 49 CFR part 23 to ensure that Disadvantaged Business Enterprises have the maximum consideration. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 40 Contract procedure This program shall be implemented through utilization of consultants, equipment, or supply purchases which will be provided and updated as required by Caltrans' Division of Transportation Planning. These procedures require bidders to submit the names of DBE subcontractors and suppliers, a description of the work each is to perform or material to be furnished, and the dollar value of each DBE sub-activity. Selection Criteria for Projects with DBE Goal Every project containing a DBE goal shall be evaluated by the DBE Liaison Officer or designee to ascertain bidding contractors' efforts to attain the DBE goal. The award of any project must be concurred with by the DBE Liaison Officer or his designee before said contract may be awarded. Should there be disagreement between functional units concerning contractors' efforts to attain contract goals for DBE participation, the matter shall be referred to the TCAG Executive Director or designee for final determination. Competitors that fail to meet the DBE goal and fail to demonstrate sufficient reasonable good faith efforts shall be declared non-responsive and ineligible for award of the contract. Set – Asides If deemed necessary by the DBE Liaison Officer, DBE Set-Asides will be considered by the Tulare County Association of Governments as a tool to achieve annual overall TCAG goals. Counting DEB Participants The Council of Governments, its contractors, and subcontractors shall count DBE participation in accordance with provisions of Section 26.47, Title 49, of the Code of Federal Regulations. Records and Reports A list of all DBE firms under contract either as prime or sub-contractors and total amount of contract and amount of DBE portion. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 41 The DBE Liaison Officer shall submit required reports to Caltrans and the Federal funding agency. These reports will include: 1. Number and dollar value of contracts awarded to DBE's. 2. Description of general categories of contracts awarded to DBE's. 3. The percentage of the dollar value of all contracts awarded during the fiscal year which were awarded to DBE's. 4. Indication as to the extent of which the percentage met or exceeded the overall departmental goal. 5. Reports shall be broken down separately by ethnic grouping and sex. 6. Any contractors qualifying as Small Businesses will be reported separately. Complaints Any complaints received by the Tulare County Association of Governments concerning this program will be investigated by TCAG. TCAG will endeavor to resolve said complaints within 90 days of receipt of the DBE Liaison Officer. Caltrans, District 6, or the appropriate Federal funding agency will be furnished a copy of the complaint and invited to participate in the investigation/resolution. The funding agency will receive a complete investigative report on the complaint and will be requested to concur in the proposed disposition of said complaint. Contractors and sub recipients will be directed to notify TCAG of any complaints they may receive concerning this program. Challenges 1. Any third party may challenge the socially and economically disadvantaged status of any individual (except an individual who has a current 8(a) certification from the Small Business Administration) presumed to be TCAG Accounting Policies and Procedures revised 6/30/2013 Page 42 socially and economically disadvantaged if that individual is an owner of a firm certified by or seeking certification from TCAG as a disadvantaged business. The challenge shall be made in writing to TCAG. 2. The challenging party shall include in the letter, all information available to it relevant to a determination of whether the challenged party is in fact socially and economically disadvantaged. 3. TCAG shall determine on the basis of the information provided by the challenging party, whether there is reason to believe that the challenged party is in fact not socially or economically disadvantaged. If TCAG determines that there is not reason to believe that the challenged party is not socially or economically disadvantaged, TCAG shall inform the challenging party in writing. This terminates the proceeding. If TCAG determines that there is reason to believe that the challenged party is not socially and economically disadvantaged, TCAG shall begin a proceeding as provided in paragraph (4), (5), and (6) of this section. 4. TCAG shall notify the challenged party in writing that his or her status as a socially and economically disadvantaged individual has been challenged. The notice shall identify the challenging party and summarize the grounds for the challenge. The notice shall also require the challenged party to provide TCAG, within a reasonable time, the information sufficient to permit TCAG to evaluate his or her status as a socially or economically disadvantaged individual. 5. TCAG shall evaluate the information available to it and make a proposed determination of the social and economic disadvantage of the challenged party. TCAG shall notify both parties of this proposed determination in writing, setting forth the reasons for its proposal. TCAG shall provide an opportunity to the parties for an informal hearing at which they can respond to this proposed determination in writing and in person. 6. Following the informal hearing, TCAG shall make a final determination. TCAG shall inform the parties in writing of the final determination, setting forth the reasons for its decision. 7. During the time frame of a challenge, the presumption that the challenged party is a socially and economically disadvantaged individual shall remain in effect. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 43 8. The final decision of TCAG may be appealed to the Department of Transportation by the adversely affected party to the proceedings. Costs of Administration of Policy The administrative costs of this policy shall be reimbursed to TCAG on a pro-rated basis from the various federally funded projects. Fixed Assets General Fixed Assets shall be defined as those items of tangible property which are of significant value, and which have a useful life of at least one fiscal year. The primary purpose of accounting for fixed assets shall be as follows: (a) To safeguard and track investments; (b) To assign custodial responsibility; (c) To aid in scheduling future asset retirement and acquisition; (d) To supply financial reporting data; TCAG Accounting Policies and Procedures revised 6/30/2013 Page 44 (e) To assure compliance with applicable local, state and federal requirements. Section 2. CAPITALIZATION Individual inventory records shall be established and maintained in accordance with the following capitalization policy: Equipment: All equipment is tracked by the County of Tulare. Unit value shall be set at an amount equal to the original cost of acquisition, plus any costs associated with bringing the asset to an operating or useful condition. Such costs include, but are not necessarily limited to, taxes, freight, installation, testing and related costs. In cases where an asset has been acquired by gift or other means by which costs are not readily available, cost shall be established using an estimate of fair market value. All items valued in excess of $100, and with a useable life in excess of one year, are identified and tagged with an inventory serial number. All items valued in excess of $5,000 are also tracked in County’s Fixed Asset System (FAS). This electronic computer system allows for convenient cataloging, depreciation and reporting on fixed assets. Fixed assets are depreciated by the County’s Auditor’s Office, and depreciation expense is posted to departments annually. Computer equipment inventory is updated, verified and audited by the Information Technology (IT) department. Fixed asset inventory is updated, verified and audited by the Auditor’s Office. Cost Allocation Cost Allocation Plan TCAG can develop and maintain an Indirect Cost Plan. This plan shall be designed in accordance with OMB Circular A-87 and set forth in writing. The plan is used to provide for the reasonable and consistent allocation or distribution of costs to its many funding programs. Agency Trust Funds – Transportation Development Act TCAG Accounting Policies and Procedures revised 6/30/2013 Page 45 Designation Pursuant to the Transportation Development Act (Act) and this manual, TCAG shall create and maintain the following agency trust funds: Local Transportation Funds No. 483 (City of Dinuba), No. 484 (City of Exeter), No. 485 (City of Farmersville), No. 486 (City of Lindsay), No. 487 (City of Porterville), No. 488 (City of Tulare), No. 489 (City of Visalia), No. 490 (City of Woodlake), and No. 491 (County of Tulare): These funds shall account for all financial activity generated pursuant to the Transportation Development Act, Articles 3, 4, 4.5 and 8. State Transit Assistance Funds No. 347 (City of Dinuba), 349 (City of Exeter), 351(City of Farmersville), 361(City of Lindsay), 366 (City of Porterville), 379 (City of Tulare), 381 (City of Visalia), 382 (City of Woodlake), 491(County of Tulare) These funds shall account for all financial activity generated pursuant to the Transportation Development Act, Article 6.5. Basis of Tax Revenue Apportionments TCAG shall apportion all fund revenues as prescribed by the Act. Population based apportionments shall be based on the annual certified estimates developed by the California State Department of Finance. Operating revenue based apportionments shall be based on the apportionment schedule prepared by the California State Controller. Apportionment of Fund Tax Revenues TCAG in cooperation with the Tulare County Auditors Office shall, by Board resolution, annually determine the apportionment of fund revenues pursuant to the provisions of the Transportation Development Act. All prospective claimants shall be advised in writing of the amounts of all area apportionments for the following fiscal year. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 46 Apportionment of Fund Interest Revenues The Tulare County Auditors Office shall apportion fund interest revenues to each subsidiary cash account on the basis of its average monthly balance. Disbursement of Fund Assets Fund assets shall be disbursed in accordance with the following procedures: Claims: All disbursements to eligible claimants shall be supported by and in accordance with an annual written claim filed as prescribed by TCAG TDA Rules and Regulations. Approval: All claims shall be duly approved by Board resolution in accordance with the Act and TCAG Rules and Regulations. A copy of the approval resolution shall be forwarded to the Tulare County Auditor-Controller in support of each disbursement of fund assets. Instruction: Disbursements of fund assets to eligible claimants shall only be made in response to a written disbursement instruction issued by TCAG to the Tulare County Auditor-Controller. Disbursement instructions shall only be issued according to written claims approved by TCAG resolution. Grant Tracking Grant Activities TCAG Accounting Policies and Procedures revised 6/30/2013 Page 47 Grant funding source activity is managed by the Accountant and is tracked in the following manner: A copy of the signed grant is filed with the Fiscal Department. The Accountant records all pertinent information on the grant tracking spreadsheet. This spreadsheet reports information on al funding sources including: original dollar amount of grant, beginning and ending dates, extensions of terms and amounts if any, draw downs and available balances. The grant tracking spreadsheet is updated continually and is periodically reviewed by the Chief Accountant/Finance Manager. Revenues Fee and Charges TCAG shall reserve the right to assess fees and charges for services rendered or products delivered in connection with its operation. Said fees and charges may be set at a level sufficient to recover the fully allocated cost, including direct and indirect costs related to the service of product. Fees currently assessed and charged by TCAG to member agencies are membership dues, LTF administration and LTF planning contributions. The Board shall retain approval authority with respect to the establishment and amount of fees and charges. Loans TCAG may acquire the funds necessary to meet short term financial obligations by means of loans from either public or private entities. All loans shall be approved by resolution of the Board. Invoicing and Accounts Receivable Unless otherwise stipulated by contract or necessity, TCAG shall maintain its accounts receivable and invoice the accounts maintained therein on a monthly or quarterly basis. Membership dues are invoiced fifty percent on July 1 and fifty percent on January 1. All LTF administration and planning contributions are invoiced before January 1 of the current fiscal year. The Executive Director shall approve all amounts determined to be uncollectible and written off. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 48 Deposits Processing Deposits from Customers/Clients/Agencies Sources Member Dues that are billed to each City/County participant by TCAG Federal Highway Administration (FHWA) which pays reimbursable expenses that are submitted quarterly Federal Transit Administration (which is submitted to FHWA) grants funds awarded that are reimbursable expenses submitted quarterly Cities and County (which is part of their match) Measure R as it relates to 784 expense offset (transferred from fund 783 as part of the 1% administrative costs) State of California o Measure R as it relates to the tax revenues recorded into fund 783 for distribution to the Cities for projects o Local Transportation Fund (LTF) (under the Transportation Development Act, TDA) as it relates to the ¼ % general sales tax and is deposited into fund 483-491 for each participating city o State Transit Assistance fund (STA)(under the Transportation Development Act, TDA) as it relates to the statewide sales tax on gasoline and diesel fuel and is deposited into fund 471 LAFCO (transferred from fund 794) fund costs are recorded into 784 and reimbursed by fund 794 through a JV. Recording and Tracking Payments Payments are received as wire transfers, cash and check by walk-in and by mail. The cash and checks are recorded on a log by the secretary that opens the mail. The log is daily, and is presented to the Fiscal Manager at the end of the day with the cash/checks received. The Fiscal Manager verifies and signs off on the log and presents to the Accountant II for verification and sign off before the items are entered into AFIN. Deposits are made Tuesday and Thursday of every week. Wire Transfers are recorded by JV on the day the Auditor/Treasurer informs us that money is available. This is done by email and the Accountant and Fiscal Manager are alerted. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 49 Mail Reciepts A. Checks or warrants received by mail shall be immediately channeled to the TCAG Office Assistant responsible for mail handling. The Office Assistant shall immediately affix on the check or warrant an endorsement stamp which states the date of receipt. B. Supporting documentation accompanying a check or warrant shall be stamped with the date of receipt. C. The check or warrant shall be logged into a cash receipts log, and then photo copied. D. The photo copy and original will be channeled to the Accountant; the check or warrant channeled to the Auditors Office daily with a cash receipt. Any check or warrant received after the daily deposit will safe guarded by the Accountant until the next working day deposit. A copy of the deposit is then scanned into AFIN, the County of Tulare’s Fiscal Accounting System. E. the Accountant shall identify the remittance and shall affix the proper fund number and revenue code number to the supporting documentation. F. the Accountant prepares Cash Receipt. G. the Chief Accountant/Finance Manager, other than the Accountant, shall sign the cash receipt and attach the receipt with the check or warrant. H. the Accountant shall deposit the receipt in the County Treasury no later than the close of business on the day following receipt. In the interim, checks shall be kept in a locked place. At no time shall cash or checks be left unattended in an unsecured location. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 50 Over the Counter Receipts A. Payments received in the front office shall be supported by a WINCAMS receipt issued by a TCAG employee at the time of transaction. B. the Accountant shall affix the appropriate fund number and revenue code to the receipt and initial. All receipts shall be kept in a locked place for safekeeping. C. the Accountant shall deposit the receipts in the Tulare County Treasury no later than the next business day. D. The documentation supporting this transaction shall be forwarded to the Chief Accountant/Finance Manager for inclusion in the accounting records. E. In general, receipts that constitute reimbursement of costs incurred shall be deposited in TCAG Fund No. 784-784-4002. Receipts representing an advance of grant funds or Deferred revenue shall be deposited in the appropriate special revenue or trust fund. F. At month end, the Accountant reconciles the County Budget Reports to the cash receipts journal and Office Assistant cash receipts log. Accounts Receivable and the General Ledger are reconciled and updated and reports are delivered to the Chief Accountant/Finance Manager. G. the Fiscal Staff is responsible for billing and collecting receivables. An invoice is prepared for each receivable with a copy going to the customer; a copy is retained by Fiscal Staff, and a copy is delivered to the Accountant. H. Accounting for receivables is maintained on WINCAMS and is reconciled by the Accountant. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 51 Expenses Manual Warrant Procedures THE AUD I TOR HAS A RESPO N SIB I LITY TO “AUD IT” ALL COUN TY CLA I MS. CA Government Code Title 3 Division 3 Chapter 4 Article 2 Section 29741: The auditor shall audit and allow or reject claims in lieu of, and with the same effect as, allowance or rejection by the board of supervisors in any of the following cases: (a) Expenditures which have been authorized by purchase orders issued by the purchasing agent or other officer authorized by the board. (b) Expenditures which have been authorized by contract, ordinance, resolution, or order of the board. (c) Expenditures under any statute authorizing payment of public aid or assistance which have been ordered by the board. (d) Expenditures for charges incurred by the county pursuant to the provisions of Chapter 3 (commencing with Section 29600) of this division. (e) Refunds of unearned business license fees, permit fees and similar fees authorized by resolution of the board of supervisors. (Enacted by Stats. 1939, Ch. 154.) THE AU D I T O R SH A L L NO T ISSUE A WARRAN T FOR AN Y CL AI M NO T IN HI S OFFICE FOR AT LEAST “3 DA YS.” CA Government Code Title 3 Division 3 Chapter 4 Article 2 Section 29741: The auditor shall issue his warrant on the county treasury for such an amount for each claim as he finds to be a correct and legal county charge. He shall not issue his warrant for any claim that has not been on file in his office for at least three days. Notwithstanding the foregoing, the board may, upon recommendation of the county auditor, provide by ordinance that the three‐day waiting period shall not apply to any claims or to specified classes of claims. (Enacted by Stats. 1939, Ch. 154.) ALL MAN U AL WARRAN T RE QUES TS SHALL BE AUT H O R IZ E D BY THE DE PAR T MEN T HEAD . Tulare County Personnel Rule 1.7: In all cases, unless specifically noted otherwise, actions or authority assigned by these Rules to the County Administrative Officer or Department Head may be delegated to his assistant. For purposes of these rules an Agency Head is equivalent to a Department Head and his Assistant Agency Head is equivalent to an Assistant Department Head. WARRANT CONSIDERED “L OST” ONLY AF TER 10 DA YS HAVE PASSED . TCAG Accounting Policies and Procedures revised 6/30/2013 Page 52 Tulare County Ordinance Code Part 1 Chapter 5 Article 7 Section 1‐05‐1245 Pursuant to the provisions of section 29853 of the Government Code of the State of California, the Board of Supervisors hereby determines that if a County warrant has been mailed and has not been received by the addressee within ten (10) days after the date of mailing, such warrant shall be considered to be lost. CA Government Code Title 3 Division 3 Chapter 5 Article 3 Section 29853: A warrant is considered lost if it has been mailed and has not been received by the addressee within 20 days after the date of mailing or within a shorter period of time as the board of supervisors may by ordinance establish. FOR LOST WARRAN T S > $100 CL AI MANT MUS T PROVIDE NOTARIZED AFF I DAVIT, OR VA LID PHO T O ID . In keeping with sound fiscal policy, and to mitigate against the risk of fraud the Auditor’s Office requires all affidavit/requests to replace lost/stolen warrants over $100 to be notarized, or otherwise valid photo identification must be presented by the claimant. A WARRAN T IS CONSIDER ED “S TA LE ‐ DA TED” AF TER 6 MON T HS. CA Government Code Title 3 Division 3 Chapter 5 Article 1 Section 29802(a): (a) Unless otherwise provided by ordinance, any warrant issued is void if not presented to the county treasurer for payment within six months after its date. Whenever, under the provisions of this section, warrants drawn on trust funds became void, the moneys in the county treasury represented by the warrants may be transferred to the general fund of the county by the county auditor unless disposition is otherwise provided by law. ST A L E ‐ DATED WARRAN T S ARE RE ISSUED BY AUDITOR IF $25,000 OR LESS; OT H E R W I S E BOS A PPROVAL . Tulare County Resolution # 2011‐0295 et al: [Board of Supervisors] Authorized the County Auditor‐Controller/Treasurer‐Tax Collector to draw warrants on indebtedness, per Government Code Section 29802, up to $25,000. (Approved 12‐3‐2013) ST A L E ‐ DATED WARRAN T S ARE RE ISSUED BY AUDITOR IF RE QUES TED WITHIN 2. 5 YEARS. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 53 IF AFTER 2.5 YEARS THEN OR IGINAL WARRANT MUST BE PRESENTED TO REIS SUE. CA Government Code Title 3 Division 3 Chapter 5 Article 1 Section 29802(b‐c): (b) Any time within two years from the date on which the original warrant became void, the payee or assignee of any warrant which is void as provided in this section may present the warrant to the governing body of the agency on which the warrant was drawn, or declare by affidavit that the warrant has been lost or destroyed, and the governing body may by resolution authorize the auditor to draw new warrants within the limitations prescribed by the resolution without prior individual order of the governing body, provided the limitations prescribed by this section have been complied with. The new warrant shall be subject to the same limitations as the original warrant which it replaces. (c) If, at any time after a period of two years from the date on which the original warrant became void, or during such other period of time as specified by ordinance, the payee or assignee presents such warrant to the governing body of the agency on which the warrant was drawn, the governing body may adopt an order instructing the county auditor to draw a new warrant in favor of the payee or assignee in the same amount as the original warrant, or the governing body, by resolution, may authorize the auditor, without prior individual order of the governing body, to draw warrants within the limitations prescribed by the resolution in any case in which the auditor determines that it would be inequitable or unreasonable not to draw the warrant, and money is available in the county treasury to make payment on the indebtedness. If the auditor deems it necessary, he or she may present a voided warrant to the governing body for its review, approval, and appropriation of funds. Any such new warrant shall be subject to the same limitations as the original warrant which it replaces. Payroll The Accountant in cooperation with the Resource Management Agency (RMA) payroll division shall be responsible for administering the payroll system in accordance with these directives and applicable County procedures. In addition to established County procedures, the TCAG payroll system shall require the following: Time Sheets: All hours reported shall be supported by an employee time sheet. Employees shall record work hours by OWP work elements and tasks. Time sheets shall be signed and dated by the appropriate supervisor and employee. The Executive Director’s timesheet will be signed by the Executive Director and progress reports will be submitted to the TCAG Chair annually. Any timesheet requesting time off shall include an approved TCAG Absence Form. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 54 Benefits Compensated Absences and Sick Leave Retirements Payable Full-time employees accumulate sick leave at the rate of 12 days per year. Part-time employees who occupy positions in the competitive service accumulate sick leave time in the same proportion as the assigned hours in each pay period to the number of hours in a full pay period. The accumulation of sick leave credits is unlimited. To provide recognition for the judicious use of sick leave, an employee taking retirement or resigning with 10 or more years of County service may be eligible to receive payment for a portion of unused sick leave credits and/or may convert the unused sick leave to service credit for retirement. Vacation is accumulated by full time employees as follows. Employees with 0-3 years of continuous service earn 2 weeks of vacation per year. Employees with 3-7 years earn 3 weeks per year. Employees with 7-11 years earn 4 weeks per year. Employees with over 11 years earn 5 weeks per year. Employees who come over directly to Tulare County from another qualified public agency in which they were eligible to earn and use vacation leave may accrue vacation as if all their most recent years of continuous public service were with Tulare County. The County provides 11 paid holidays per year: New Year's Day, Martin Luther King, Jr. Day, President's Day, Memorial Day, and Independence Day, Labor Day, Veterans' Day, Thanksgiving Day (and the day after), Christmas Eve Day, and Christmas Day. One Personal Holiday is available to employees who are eligible to earn paid leave. The Personal Holiday is eight hours and credited July 1 and must be used by the following June 30. The County may change/adjust its Human Resource (HR) policy. TCAG is subject to any changes made to the HR policy. Benefit Plans Qualified Tulare County employees receive an annual Benefit Amount. This is the County contribution towards the cost of employee benefits. For most employees, this amount is a flat amount plus a tier amount based on the number of dependents they enroll on their plan. Other employees only receive a flat biweekly amount based on the number of dependents they enroll on their plan. The Benefit Amount is a negotiated item by bargaining unit. The County may change/adjust its Human Resource (HR) policy. TCAG is subject to any changes made to the HR policy. Retirement Plans The Retirement Plan is a defined benefit plan administered pursuant to the 1937 County Employees Retirement Act and integrated with Social Security. In addition to ordinary retirement benefits, the plan TCAG Accounting Policies and Procedures revised 6/30/2013 Page 55 provides disability and death benefits. Retirement contributions are made by both the employee and the County. The County has reciprocity with the State of California, contracting PERS and STRS agencies, and most counties within the 1937 Act Retirement Systems. For additional information on retirement see the Retirement Department website at www.tcera.org. An employee’s contribution to the Retirement System is determined by one’s salary and date of entry into the system. Benefits are graduated to increase in proportion to age and years of service at retirement. Minimum County retirement benefits may be received at age 50 with 10 years of service. If you terminate County employment after completing five years of service, you may defer retirement. Individuals participating in the Tulare County Employees Retirement system may, if the need arises, transfer their credits to the State of California and most California counties and incorporated California cities. The County may change/adjust its Human Resource (HR) policy. TCAG is subject to any changes made to the HR policy. More specific personnel policies are found in the County of Tulare’s Employees Handbook located on the County intranet at http://tcweb/hrd/hrdDoc.asp Travel Reimbursement The Executive Director is charged with the responsibility of approving or disapproving requests for travel related to TCAG business. Out of state requests, not already authorized in the OWP, require approval of the TCAG Board. These requests shall be submitted to the Board with the recommendation of the Executive Director. The Executive Director, or designee, shall review, verify and approve all expense claims. Out-of-state travel for more than one person per department per event shall be allowed only if approved in advance by the TCAG Chair or Director or his/her designate. It is the duty of the Financial Manager to review and approve the requests, before being submitted to the Director for final approval. Approval: All overnight travel shall receive the prior approval of the Executive Director or designee. A travel request and/or cash advance form shall be completed by the employee, pursuant to County Administrative Regulation No1 unless previously approved in the current year OWP. The Executive Director and appropriate supervisor shall review and authorize the travel/advance request. All travel out of state not listed in the travel section of the budget shall be approved by the Board. The Executive Director may self-certify his/her Travel Expense Claim. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 56 Lodging: The cost of overnight lodging within 75 miles of the County Civic Center will not be reimbursed unless authorized by the Executive Director. Lodging costs shall be reimbursed at actual cost, single rate, plus tax, for each day of travel during overnight lodging. Supporting documentation must be provided. In case of travel for State/Federally funded projects, every effort should be made to book rooms at the government lodging rates. In case that a government room rate is not available or one’s hotel costs more than the government rate, one must have permission from the TCAG Executive Director to stay at the higher rate. In this instance, TCAG will be using non-federal funds to cover the difference in room rate. The credit card statement and travel reimbursement must be coded accordingly. Meals: Per Diem is not allowed for trips lasting less than 24 hours. When a County credit card is used for a meal during any day during a trip, the County’s per diem rate can not be used for that day, or for the trip. Reimbursement will be for actual costs of meals and will be limited to the maximum daily per diem rate, unless specifically explained and approved by the Executive Director. Meals consumed by ones-self do not meet the requirements for business meals, and will not be reimbursed. Reimbursement for meals will be at the actual cost up to the County meal rate. In the alternative, the traveling party may elect a County per diem rate. Receipts will not be required for the per diem election. The per diem rates will be set to U.S. General Services Administration (GSA) per diem rates for the State of California, County of Tulare and Kings. Where the expense exceeds maximum allowable, approval by the Executive Director will be required with justification and documentation. Gratuities for meals will be reimbursed at a rate not to exceed 15% of meal cost. In case of travel for State/Federally funded projects, the State reimbursement meal rates for breakfast, lunch, dinner and incidentals will apply. Also, if traveling less than 24 hours, breakfast may be claimed if the trip starts at or before 6 am and ends at or after 9 am. Dinner may be claimed if the trip starts at or before 4 pm and ends at or after 7 pm. If traveling more than 24 hours, there is no daily per diem rate. The state rates apply, including incidentals. One cannot claim reimbursement for provided meals, and continental breakfast does not qualify as a provided meal. Also, if traveling more than 24 hours, the following times determine which meals one may claim: Breakfast on the first day if trip started at or before 6 am Lunch on the first day if trip started at or before 11 am Dinner on the first day if trip started at or before 5 pm Breakfast on the last day if trip ended at or after 8 am Lunch on the last day if trip ended at or after 2 pm TCAG Accounting Policies and Procedures revised 6/30/2013 Page 57 Dinner on the last day if trip ended at or after 7 pm The state rates and policies described above are those amounts that are eligible for reimbursement of state/federal funds on applicable projects. For these amounts, employee should bill the appropriate work element. Additional amounts for reimbursement over the state amounts will be supplemented by work element 601.08 up to the approved amounts set in Tulare County travel policies. Staff will not be reimbursed for excess of Tulare County travel policies. Additionally, if an employee travels out of county on county business during lunch hours under a State/Federally funded work element, that employee may charge the county rate for meal reimbursement to work element 601.08. Receipts are required. When one is not available, a memo is required stating that no alcohol was purchased, and that the gratuity was 15% or lower. State reimbursement rates are reviewed annually. Transportation: Prudent judgment shall be exercised in the selection of mode of transportation. Actual costs shall be reimbursed, based upon supporting documentation and County mileage reimbursement policy. In case of travel for State/Federally funded project, the State reimbursement rate will be used, and the remainder of the cost will be supplemented by work element 601.08. Mileage: A TCAG employee should always use a TCAG vehicle or a motor pool vehicle when available or reasonable to do so. If a vehicle is not accessible from either TCAG or motor pool, then an employee may use a personal vehicle. In this instance, the state reimbursement rate for personal vehicle would be used. When state rate for mileage reimbursement is less than the county rate, the employee may charge the difference to work element 601.08. If an employee chooses to use their vehicle in lieu of a county vehicle for out of town travel, that employee must have prior approval from the TCAG Director. Mileage charges in this instance should be consistent with county travel policy and charged to work element 601.08. Reimbursement for business-related mileage will be from the individual’s tax home as defined by IRS. The Executive Director and any other employees who receive automobile allowance are required to comply with County policies. Air Travel: Air travel is permitted on State/Federally funded projects when it can be shown that the cost of air travel is less than the cost of other standard transportation (vehicle, train). The least expensive form of travel is “in the best interest of TCAG,” and should be considered for both in-state and out-of-state travel. Employees should calculate the cost associated with standard travel, including both direct costs and the employee’s hourly rate, versus the cost associated with air travel. Air travel requires approval from the TCAG Director for all work elements. Air travel to Washington DC is approved. First Class airline tickets are not authorized under the County Travel Policy. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 58 Other: Other incidental expenses including, but not necessarily limited to, business related long distance telephone calls, baggage handling charges, bridge tolls, parking fees, gratuities, and taxis shall be reimbursed at actual cost, based upon supporting documentation. Where documentation is unavailable a memo is required summarizing the expenses, location and individuals attending. In case of travel for State/Federally funded project, the State reimbursement rate will be used, and the remainder of the cost will be supplemented by work element 601.08. Business Meetings: Regardless of location, meals and other costs incidental to the conducting TCAG business shall be reimbursed at cost based on supporting documentation and approval of the Executive Director. When supporting documentation is not available, a memo is required stating no alcohol was purchased and less then 15% gratuity was paid. Reimbursement: Upon return, an employee completes and submits a "Claim for Reimbursement," accompanied by all required supporting documentation. Costs not adequately supported shall not be reimbursed. Payment shall be processed pursuant to the procedures defined herein. An employee has 60 calendar days from the end of the month of return to submit reimbursement for the prior month. Advances: Advances in travel reimbursement may be authorized by the Executive Director, subject to a full accounting of the travel costs after travel has been completed. The employee is authorized to obtain up to 90% of estimated net expenses. In the event that a full accounting of, or repayment of, unexpended advance is not made within thirty (30 days), the advance will be deducted from the next salary warrant, or other payment from TCAG. Repeated failure to liquidate travel advances on a timely basis will disqualify an employee for future advances. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 59 Accounts Payable Processing A. Upon receipt of an invoice, or similar claim for payment, the Secretary shall route the request to the project manager responsible for the agreement with vendor / contractor. Measure R payments do not always require an invoice if previously approved by the current year Measure R Work Plan. B. The responsible employee shall verify that the agreement has been signed and that the invoice follows guidelines set forth by the agreement. Before the first invoice is paid, the accountant and the financial manager are also responsible to review the contract file. The responsible employee shall review the following invoice information: Work Element, percentage of work completed, hourly rate. This information will then be compared against the agreement. The responsible employee shall attach a coding sticker and assign an OWP work element number and a resolution number, and approve further processing by attaching his/her initials. The invoice shall then be routed to the Accountant. 10% of the amount of the invoice shall be retained until project completion, for projects which result in a deliverable product. All other contracts, i.e. on-call assistance or lobbying will not have a 10% retention, unless otherwise stated in the agreement. C. the Accountant shall assign a proper expenditure code number to the invoice, verify the work element number, and determine the availability of funds in the agreement. The accountant is responsible for managing financial summaries of contracts including budget and remaining funds. The Accountant shall then route the invoice to the Director for signature / approval The Financial Director is responsible for insuring that no invoices are paid unless the Agreement Folder is complete. After approval is obtained, a Claim for Payment (GAX) form is prepared by the accountant. The form is then entered in the computer accounting system (AFIN). The GAX number is also recorded in the Invoice Log spreadsheet. D. the Chief Accountant/Finance Manager or Executive Director shall review the prepared documents and approve the claim electronically through AFIN. E. the Accountant shall retain an original of all documentation supporting the transaction. These documents shall be filed with the accounting records as pending payment. All documentation will also be scanned into AFIN. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 60 An “Invoice Payment Flowchart” is included on the following page. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 61 LEAVE A BLANK PAGE FOR THE “Invoice Payment Flowchart” TCAG Accounting Policies and Procedures revised 6/30/2013 Page 62 Measure R Summary On November 7, 2006, the voters of Tulare County approved Measure R imposing a ½ cent sales tax for transportation. The transportation sales tax funds will be spent in accordance with the Expenditure Plan that resulted from a joint effort among all the cities and the County of Tulare. The resulting plan reflects the transportation needs of the residents of Tulare County. The plan includes funding for Regional Projects, Local Programs, and projects that benefit air quality. The funds will be distributed as follows: 1. Regional Projects (50%) 2. Local Programs (35%) 3. Transit/Bike/Environmental (14%) TCAG Accounting Policies and Procedures revised 6/30/2013 Page 63 4. Administration and Planning Program (1%) The tax rate shall be one-half of one percent (0.5%) per dollar for a period of thirty (30) years commencing the operative date of Ordinance No. 2006-01. The operative commencing date is April 1, 2007 and ends on March 31, 2037. This tax shall be in addition to any other taxes authorized by law, including any existing or future state or local sales tax or transactions and use taxes. The revenues derived from the tax shall be used for transportation purposes only and may include, but are not limited to, the administration of this Ordinance and the Expenditure Plan, including costs for initial and subsequent preparation and election, costs for legal actions related to the election, Ordinance and Expenditure Plan, and the costs and fees related to the transportation purposes set out in the Expenditure Plan. These purposes include expenditures for planning, environmental review, engineering and design costs, related special and expert consultants costs, and related right-of way acquisition and the administrative and legal costs associated with this tax measure. As outlined in the Expenditure Plan, a Bi-Annual Strategic Work Plan will be prepared. The Bi-Annual Strategic Work Plan outlines five-year expenditures for the Regional and Transit/Bike/Environmental Programs. The preparation of the Strategic Work Plan is designed to coincide with the preparation of the Regional Transportation Improvement Program (RTIP). The RTIP will not be prepared in the year in which Measure R was adopted. As a result, the Authority approved the preparation of an Interim Strategic Work Plan. The Interim Plan outlines Measure R expenditures for the next four fiscal years. It was also coordinated with the State Transportation Improvement Program (STIP) Augmentation funds that will be available to Tulare County as a result of the passage of Proposition 1B. Over $1 billion in projects are listed in the Measure R Expenditure Plan. In today’s dollars, the sales tax is estimated to generate approximately $326 million for regional projects, $228 million for local agency projects, and over $91 million for Transit/Bike/Environmental projects over the next 30 years. In order to construct all of the projects listed in the Expenditure Plan, outside funding from: Federal and State Highway funds (including STIP, CMAQ, and TE), local funding and other revenue sources will be necessary. The following is a brief summary of the breakdown of Measure R Funds. Regional Programs (50%) TCAG Accounting Policies and Procedures revised 6/30/2013 Page 64 Projected revenue of $326 million is expected to be allocated to Regional Programs over the 30 year life of Measure R with annual projected revenue of nearly $11 million a year. As a conservative assumption, no revenue growth is included in the annual revenue amount. This assumption will provide some protection from potential cost increases. The actual revenues will be monitored and a report will be provided monthly to the Authority Board. The Measure R Expenditure Plan created a Regional Projects Program that includes specific funding for regional widening, interchange improvements, signals, bridges, railroad crossings, and signal synchronization projects. These projects provide for the movement of goods, services, and people throughout Tulare County. Local Programs (35%) The Measure R Expenditure Plan allocated 35% of revenues to Local Programs. Estimated revenue of $228 million is expected for Local Programs from Measure R revenues. The Local Program allocations are formula based. Since the distribution of Local Program funding is applied by formula to actual revenues, adjustment factors do not apply. The following are additional items related to the Local Program: - Distribution of funding is based on the following formula: o 50% Population o 25% Maintained Miles o 25% Daily Vehicle Miles traveled (1,000) (Represents the calculated Average Daily Vehicle miles of travel that occurs within a jurisdiction) The population is based on the California Department of Finance Annual estimates. Maintained Miles and daily vehicle miles of travel (1,000) are obtained from the most recent California Public Road Data book published by Caltrans. The adopted Expenditure Plan provides the formula for Local Program distribution. Based on the Expenditure Plan and subject to the adopted Policies and Procedures, monthly distribution of local program revenues was approved with the following additional conditions: TCAG Accounting Policies and Procedures revised 6/30/2013 Page 65 1. In the first six months of Measure R expenditures (July 07 through December 07), funding to the Local Programs will be advanced (subject to cash flow projections) due to the low projected regional project funding needs in FY 07/08. 2. That all agencies (as applicable) be allowed to advance future Local Program funding to provide $250,000 in FY 2007/08. This most likely would result in an advance for the cities of Exeter, Farmersville, Lindsay, and Woodlake. Based on the Regional Project funding needs for the next two years, this will not impact funding for other Measure R programs. Transit/Bike/Environmental Program (14%) The adopted Expenditure Plan includes transit expansion for various agencies. In order for expansion to occur as outlined in the Expenditure Plan, reliable and consistent cash flow is necessary. Estimated revenue of $91 million is expected to be created through Measure R revenues for Transit/Bike/Environmental projects. The goal of the program is to expand or enhance public transit programs that address the transitdependent population, improve mobility through the construction of bike lanes and demonstrate the ability to get people out of their cars and improve air quality and environment. Administration and Planning Program (1%) One percent of Measure R Revenues will be dedicated for administration and planning. The Authority shall expend only that amount of funds derived from the tax that is necessary and reasonable to carry out its responsibilities for auditing, administrative expenses, staff support and contract services as provided in Appendix A of the Expenditure Plan. In no event, shall the funds expended annually for salaries and benefits of the Authority Staff exceed one percent (1%) of the annual net amount of the revenue raised by the tax. Responsibilities will include development of plans, contracting for audits and other specified activities as needed to execute Measure R. The Authority shall impose and collect the tax, and shall administer the Expenditure Plan consistent with the provisions and priorities of the Expenditure Plan. After deductions of required State Board of Equalization fees and authorized administrative costs, revenues derived from the tax shall be allocated in accordance with the Expenditure Plan. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 66 Project Advancement For the advancement of a Measure R project all guidelines pertaining to the advancement of projects will be enforced as set forth by the Measure R Expenditure Plan, the Measure R Policies and Procedures, and the 2007 Measure R Interim Strategic Work Plan. For the reimbursement of Measure R Funds on project advancements, an agreement between the sponsor agency and the Transportation Authority will need to be authorized by the Authority prior to any agency expenditures. The total amount to be reimbursed and the year of reimbursement will need to be included in the project supplemental agreement. Reimbursement will be subject to the availability of funds. In the year of reimbursement, project advancements will be the priority for funding for the Regional Project Program. All reimbursement requests will be turned in to the Measure R Coordinator through a formal invoice with an adequate breakdown of the duties that reimbursement is being requested for. Escalation for an advanced project will not begin to be accumulated until the year that the project is complete. A Measure R Project that is advanced and is given a year of repayment can be repaid before the agreed upon date by the Authority without penalties. Due to future bonding or short term lending this option is a possibility. Project advancement may only be done to a short capacity of Measure R Funds to avoid the possibility of non-repayment of funds. Bonding Authority: Upon voter approval of Measure R, the Tulare County Association of Governments, in its capacity as the Authority, shall have the authority and power, pursuant to Public Utilities Code section 180250 and following, as amended, renumbered or readopted from time to time, to sell or issue bonds or other evidence or instruments of indebtedness, including but not limited to, capital appreciations bonds, in the aggregate principal amount at any one time outstanding not to exceed the estimated proceeds of the tax as determined by the Expenditure Plan, and to secure such indebtedness solely by way of future collection of taxes for capital outlay expenditures as described in the Expenditure Plan. Currently bonding research is being done by TCAG staff in order to advance projects in Tulare County. Short Term Lending: TCAG Accounting Policies and Procedures revised 6/30/2013 Page 67 The Measure R Finance Committee has put on emphasis on short term lending for the early delivery of Measure R Projects. Short term lending would look at the possibility of advancing projects and then repaying the short term loan in a period of two to three years. Short term lending allows for early project advancement without incurring unnecessary bonding fees. Bonding is expected to be part of Measure R when there is sufficient Measure R Projects ready to go to construction and the bonding fees will at this point be worth incurring. Upcoming meetings on short term bonding will determine if short term lending is used for Measure R Projects. Contingency Fund: As outlined in the Expenditure Plan TCAG will have the ability to set aside a contingency fund of up to 5% of the annual Measure R receipts. Revenues to fund the contingency may be accumulated through the following: revenues exceed projections or a project’s cost is lower than anticipated resulting in excess funds. In the event that actual revenues in any given year are less than the budgeted revenues, the TCAG board may use the contingency fund to make up the difference between the budgeted revenues and the actual revenues. The contingency fund may also be used to fund projects where the actual cost exceeds projections. The Authority is currently looking at the possibility of creating a contingency fund for Measure R. Accountability: All business of TCAG will be conducted in an open and public meeting process in accordance with the California Brown Act. TCAG will approve all spending plans in the Expenditure Plan and will ensure that adequate public involvement has been included in the preparation of all spending plans. TCAG will be required to hire an independent auditor who will annually audit all sales tax expenditures, ensuring that expenditures are made in accordance with the plan, and with prudent, established accounting regulations and practices. TCAG Financial Procedures: As outlined in the Expenditure Plan, 1% of Measure Revenues will be allocated to the Administration Program of Measure R. As part of the Administration Program, TCAG will create an annual work program and budget for Measure R and handle all the Measure R accounting duties. The Measure R Administration Program TCAG Accounting Policies and Procedures revised 6/30/2013 Page 68 is guided by principles that ensure that revenue generated by the transportation sales tax is spent in the most efficient and effective manner possible, consistent with the desires of the voters of Tulare County. A bi-annual Work Program and budget has been created for Measure R by TCAG for Fiscal Year 2007/2008. The Work Program and budget will take into consideration the estimated Measure R revenues, allocations and disbursements that are expected for the Fiscal Year. These revenues, allocations and disbursements will then be entered into the Measure R Work Program, the Measure R Web Budget System and AFIN. The Web Budget System and AFIN are web based accounting programs that will account for all Measure R transactions. Revenues for Measure R will be received through Electronic Fund Transfer from the State Board of Equalization. A monthly EFT will be received by the Tulare County Treasurers Office and then deposited into the Measure R Trust by the Tulare County Auditor’s Office. Measure R Revenues will consist of twelve monthly EFT’s. Four of these transfers will also include quarterly clean up checks. While these revenues accumulate in the trust fund, they will earn interest. The interest will then be deposited into the Measure R Trust Fund by the Tulare County Auditor’s Office. After the revenues have been allocated to the Measure R Trust Fund, all Local Program allocations will be sent to the Local Agencies. The same actions will be taken for the allocation of Transit/Bike/Environmental and Regional Funds depending on their respective agreements for projects. All allocations will be processed by TCAG in conjunction with the Tulare County Resource Management Agency and the Tulare County Auditors Office. It is to be understood that no funds will be allocated to any agency until a Cooperative Agreement has been reached between the agency and the Authority. The same rules will apply for agencies that are looking to obtain Regional Funds or Transit/Bike/Environmental Funds and have not entered into a Supplemental Agreement with the TCTA for their respective projects. For the efficiency of Measure R Fund allocation, a monthly check will be issued to the incorporated cities for their Local Programs. As for the County of Tulare, a Journal Voucher will be prepared monthly for the allocation of County Local Program Funds. The same methods of allocation will be used when disbursing any type of funds to the incorporated cities or the county for Regional Projects or Transit/Bike/Environmental projects. Journal Vouchers will also be used to pay the 1% administration fee, which is allowed by Measure R, to TCAG. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 69 Other expenses that are not allocations to the cities or the County will be handled by TCAG through the RMA Fiscal Office and the Auditors office. These expenses will be paid directly from the Measure R Trust Fund and like all expenses will be tracked by TCAG and the RMA Fiscal Office. For invoices that are paid to private vendors from Measure R Funds, checks will be cut as necessary. Other types of payment methods may be used as requested. Components: Strategic Work Plan (updated every two years) Work Plan excel spreadsheet Cooperative Agreements Supplemental Agreements Measure R Ledger Bike/Transit/Environmental Tracking ledger Regional Project Tracking Ledger Quarterly Reports from Cities/County Audits Measure R Administration Procedures Preliminary Review/ General Requirements 1. Check that the project requested is in the Measure R Expenditure Plan (voter-approved), corresponds to the Measure R Strategic Work Plan and meets the requirements of both plans. 2. If the project is not in the Expenditure Plan, an Expenditure Plan Amendment is required. Expenditure Plan Amendments may occur only once a year. 3. If the project is in the Expenditure Plan but not in the Strategic Work Plan, a Work Plan Amendment is required and will need TCTA Board approval. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 70 4. Member agency must have a Cooperative Agreement (master) with TCTA. Currently all member agencies have a Cooperative Agreement in place with the Authority. 5. Member agencies wishing to collect indirect costs must have an approved Cost Allocation Plan (CAP) by the Agency’s federal cognizant agency to be eligible for reimbursement. The CAP shall be in accordance with OMB A-87 and be submitted to TCAG Staff before any expenditures are incurred. 6. It is the agency’s responsibility to ensure procurement and the award package is in compliance with the California Public Contract Code. 7. Member agencies are responsible for their internal fiscal/accounting controls and should not depend on TCAG/TCTA to monitor or implement member agency internal controls. Accounting practices shall be in accordance with Generally Accepted Accounting Principles that adequately track project expenditures. 8. Member agencies are responsible to submit quarterly updates of Measure R funding expenditures. Disbursement of Measure R funds may be delayed until the quarterly expenditure reports are submitted. Project Initiation 9. Member Agency must submit a complete Draft of Measure R Supplemental with project description, schedule, costs, and financing plan to TCAG/TCTA for review prior to Agency Approval. The amount to be paid for with Measure R funds may not exceed the amount approved in the Work Plan. 10. Member agency submits award summary of firm(s)/contractor(s) providing goods and services that will be reimbursed by Measure R. A project financing summary must also be provided showing all proposed funding for the project. 11. After supplemental and award summary are received, reviewed and accepted then invoices may be submitted for reimbursement by member agency. Reimbursement Requests 12. The date that both the member agency and Authority signatory have signed the supplemental agreement becomes the effective date for reimbursement. Work done before the supplemental agreement is signed will not be reimbursed unless stipulated in the supplemental agreement. There are no verbal authorizations to incur costs. 13. Measure R reimbursement is made on reimbursement basis and are not pre-paid unless otherwise stipulated in the supplemental agreement. Member agencies wishing to have funds advanced must request so in writing before any Measure R expenditures are incurred on the project. Funds that are advanced will still need to provide proper expenditure verification once they are expended. 14. Reimbursement requests for projects shall be submitted at least every six months from the date of agency expenditures and the initial invoice is due within six months of the supplemental agreement effective date. The reimbursement request shall include sufficient documentation of costs incurred, such as a project specific general ledger report, which will tie back to audited financial statements. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 71 15. Member agencies shall submit a status report on projects if there has not been a reimbursement request submitted within six months. Reasonable allowances will be made of up to 12 months at the discretion of TCAG/TCTA. Funds may be suspended, at the discretion of the TCTA, for other Measure R project use should the project have over 12 months of no activity. Before any funds are suspended the member agency will be given a thirty day notice of the proposed suspension. Any Measure R funds that are suspended for inactivity will have to be reallocated by the Authority when the funds become available. 16. At the discretion of TCAG/TCTA, Agency may be required to submit detailed invoices, payroll detail, or cancelled checks. If agency does not comply, the reimbursement request will be denied. 17. TCAG staff will review reimbursement requests for accuracy and relevancy. Reimbursement requests that meet all requirements will be submitted for processing within ten (10) working days. Incomplete Reimbursement requests will not be processed until all proper documentation (including back-up) has been submitted. Supplemental Amendments and Change Orders 18. Contract change orders (CCO) that, in the aggregate, increase any original contract by more than 10% shall be submitted to TCAG/TCTA for review prior to reimbursement. CCOs must have authorization from the member agency board or designated approving committee or official. If the change order exceeds the amount approved for the project in the work plan or expenditure plan additional cost may not be reimbursed with Measure R funds. For the purposes of this section, the term “original contract” is deemed to mean the amount of the contract plus any contingency authorized by the agency at the time of award of the contract. 19. If there is a CCO(s) or project scope changes that result in the greater of $100,000 or 25% of the contract, approval by Agency Council/Board and TCTA is required. For the purposes of this section, the term “contract” is deemed to mean the amount of the contract plus any contingency authorized by the agency at the time of award of the contract. 20. Any new contract(s) or agreement(s) that are entered into after the original supplemental and supporting documents were approved have the same requirements as the original supplemental and contract(s) or agreements(s) that were approved with the original supplemental and must be submitted to TCAG staff. Any additional costs over and above the budgeted amount in the Work Plan may not be covered with Measure R funds. Project Completion/Close Out 21. Member agencies shall submit a close-out letter at the end of a project stating the project has been completed. Invoices may no longer be submitted for that project after the date of the letter. 22. TCAG/TCTA will perform an internal project review/audit at the completion of the project. The project review/audit will be triggered by the close-out letter. A project is not considered complete by the TCAG Accounting Policies and Procedures revised 6/30/2013 Page 72 Authority until it undergoes a project close-out review/audit. All Measure R funds will undergo an annual independent audit at the expense of the Authority. 23. The project will also be subject to review by an independent auditor if the Authority and the member agency cannot come to a conclusion on the requested reimbursement of the project. Any project specific independent audit will be done at the expense of the project sponsor agency. 24. Reimbursements to member agencies do not result in a waiver of the right of the Authority to require fulfillment of all terms of the Measure R Cooperative and Supplemental Agreement(s). 25. The Authority has the right to conduct an audit of all member agencies’ records pertaining to Measure R projects any time during the four (4) year period after close-out of the project(s). 26. The Authority and TCAG staff does not have the duty of maintaining member agency internal controls. Member agencies’ administration and councils/boards are ultimately responsible for the actions of their agency and staff. 27. The Tulare County Transportation Authority allocates and coordinates all Measure R funds. Those funds are collected through a county-wide sales tax, and therefore all Measure R funds are to be spent in the best interest of all the residents of Tulare County. Work Plan The work plan was development to track anticipated projects as submitted by the Cites/Counties and costs of same by fiscal year to determine needed cash flow. The Strategic Work Plan is a published document used to inform others of progress of Measure R. The work plan excel spreadsheet is the document used to update the Strategic Work Plan as well as to provide the Financial Advisor with a tool for projected revenue needs. (Attachment xxxxx) Agreements Agreements were entered into between TCTA and each City and County participating in the Measure R Tax proceeds Ledgers TCAG Accounting Policies and Procedures revised 6/30/2013 Page 73 All income and expenses are logged into the Measure R ledger and applicable Regional/ Bike/ Transit/ Local tracking ledgers. They are used to monitor each category of funds as well as project status. (Attachment xxxxx) Quarterly Reports The Cities and the County are required to submit quarterly reports for all funds received; regional, local, bike/pedestrian and transit which are due by the 15th following the end of the quarter. Funds can be held if quarterly reports are not submitted or are not satisfactory. Quarterly reports are compiled and submitted to the Financial Representative of the Citizens Oversight Committee (COC). Audits The TCTA holds an agreement for services with an external auditor to perform a single Audit for TCAG and an Audit for TCTA for measure R as well as audits for the Cities/County for TDA and Measure R. The Audits for TDA (which include LTF, STA, as well as any other transportation related funds) TDA LTF and STA processing At the beginning of the fiscal year the Accountant II prepares estimates for the LTF apportionments and provides balances forward for the STA apportionments. These two documents are provided to the Cities/County by the Associate Regional Planner as a basis for reimbursement requests. Claims for reimbursement requests are submitted by the Cities/County to the Associate Regional Planner responsible for transit. Form A is the LTF Street and road claim form, Form B is the LTF transit claim form, and Form C is the STA Transit Claim form. After review by the Associate Regional Planner the claims are submitted to the TCAG Board for approval based on the following calendar: Claim due to TCAG TCAG Board Meeting August 24, 2012 September 17, 2012 September 21, 2012 October 15, 2012 TCAG Accounting Policies and Procedures revised 6/30/2013 Page 74 October 26, 2012 November 19, 2012 November 15, 2012 December 17, 2012 December 31, 2012 January 22, 1013 January 25, 2013 February 19, 2013 February 22, 2013 March 18, 2013 March 29, 2013 April 22, 2013 April 26, 2013 May 20, 2013 May 24, 2013 June 17, 2013 Once the board has approved the claim a TCAG Memo is prepared by the Accountant II for each type of fund disbursement (i.e. Article 8 planning contribution 99400, Article 4 transit 99400) sent to the auditor to prepare the transfer from the appropriate trust account. The City/County also receives copy of same. Streets and roads distributions are paid after all others including planning contributions which are paid as claims are processed and TDA administration which can be taken the first of the fiscal year. LTF LTF Revenues are recorded into the 400 series trust accounts for the Cities/County monthly by the Auditor/Treasurer. Accounts: 483 Dinuba 484 Exeter 485 Farmersville 486 Lindsay 487 Porterville 488 Tulare TCAG Accounting Policies and Procedures revised 6/30/2013 Page 75 489 Visalia 490 Woodlake 491 County Claims are paid direct from these trust accounts and transferred to the 300 series funds for each City/County by the Auditor/Treasurer based on claims. Planning contributions are paid to the city from the 400 to the 300 by TCAG staff and the TDA administration is paid from the city 400 account to TCAG by TCAG staff. STA STA is recorded into the 471 trust account quarterly byTCAG staff from the EFT received by the Auditor/Treasurer and transferred by Auditor/Treasurer into the 300 series trust funds for each city/county based on claims. Transfers are made between the agencies but because the funds reside in the same account before disbursements are made adjustments are made on paper only. RSTP STP Surface Transportation Program Funds. AVA Abandon Vehicle Abatement Program (AVA) is managed by TCAGxxxxxxxxxxxxxxxxxxxxxxxxxxxx COS (transit) TCAG Accounting Policies and Procedures revised 6/30/2013 Page 76 TCAG manages this cos program by xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Reconciliations and Reporting Monthly FHWA Monthly reconciliations of the general ledger will be performed on the 7th day after the close of the accounting month. During the month all transactions (payments, deposits, journal entries, purchase orders, etc.) are logged onto an excel spreadsheet specifically to track issued, sequential documents numbers and expenses are recorded to appropriate work elements as specified by the Federal Highway Administration (FHWA). The excel spread sheet is kept by fiscal year and named appropriately “FY GL Log”. The “Log” is reconciled monthly to the County of Tulare’s Financial System, AFIN, General Ledger to assure accuracy and integrity. The reconciled data is used to populate and report expense data to the FHWA quarterly for reimbursement. The reconciliation is performed by the Accountant II and verified by the Fiscal Manager monthly. The FHWA report is prepared quarterly by the Accountant II and is verified by the Fiscal Manager. Additionally, the Fiscal Manager accumulates the reconciled quarterly data to a table to review for timely and complete reporting. The accumulated, reconciled table is presented to the Senior Staff for review and discussion before the data is submitted to FHWA on the quarterly report prepared by the Accountant II. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 77 In addition, all 5303, 5304 and 5311 grant funds are recorded on a subsidiary ledger and tracked to ensure all funds are spent and reported. The process guarantees all transactions are reviewed and reported to the FHWA timely and accurately. Quarterly FHWA These reports are processed quarterly with the accumulated and reconciled data from the 784 fund (See Reconciliations and Reporting, monthly, FHWA). The reports are due to Caltrans within 30 days of the close of the quarter. Lobbying Report This data is collected quarterly from the 784 general ledger and report on line at xxxxxxxxxxxxxxxxxx Annually Audits Audits are performed by a contracted Auditing Firm. The audits required are: Annual Audit for TCAG which is sent to the SCO via the internet website, Annual Audit for TCTA, Measure R Audits for all the Cities and Counties which TCAG distributes to the City Managers and the Citizens Oversight Committee (COC). The COC must receive a copy of the audits 30 days prior to the quarterly meeting. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 78 Year End Processing General Ledger Reconciliation Reporting Audit Preparation and Reporting OWP and Budget Administration Purpose The purpose of the annual budget shall be to serve as a comprehensive, detailed financial plan, which estimates annual revenues and allocates resources according to functional priorities and related expenditures. As such, the budget serves as a financial statement of annual operations. Mandate In accordance with Section 20 of the Joint Powers Agreement, the Executive Director shall be responsible for supervising and directing the preparation of the annual budget. The Financial Manger will be responsible for implementation and day to day operations. Organization TCAG shall use the program budget format. Such a format shall first involve the development of proposed work or project activities. These proposed activities shall be put forth in the annual Overall Work Program. Each work element shall state the objectives, work tasks, product(s) and total cost. The annual budget document shall then restate this program budget in terms of classes of revenues and expenditures. As a result, the annual Overall Work Program and Financial Budget shall reconcile to one another. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 79 Contents In addition to current budgetary requests by object class, the budget shall include comparative revenue and expense data for at least two (2) prior years. Also, a detailed organizational chart, and staffing authorization shall be included. Fiscal Year The annual budget shall be prepared on the basis of the July 1 to June 30 fiscal year. Cycle In general, the budget preparation cycle shall be executed between November 1 and June 30 of each year. Preparation, Review and Adoption General Participation The Board and staff management team shall jointly participate in the formulation of the annual budget. The Board shall establish overall budgetary policy, set long-term goals, assess long-term program and service needs, analyze current and anticipated financial conditions and approve the final budget. Based on Board direction, the management team shall develop programs designed to meet established goals, estimate and recommend allocation of resources, recommend program priorities and provide detailed justification and support for all requests. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 80 Preparation Following adoption of the budget calendar by the Board, the staff management team shall meet to discuss budget preparation within established guidelines. The management staff team shall then solicit budget requests from staff. These requests shall be consolidated into an object-classification format for purposes of review and approval. However, a detailed line item format shall be used with respect to the presentation of data regarding salaries and benefits, consultant contracts, service and supplies and fixed assets. Adoption The Board shall review the proposed budget before May 1 and approve it thirty (30) days before the initiation of the new fiscal year. Such budget shall serve as the approved budget for the fiscal year. Amendments to the budget may be made as specified in Article V. Expenditure Control, Transfers, and Supplemental Requests Expenditure Control The annual budget, once approved, shall be considered the controlling financial plan for expenditures. Expenditures in excess of the Board approved budgetary control amount for each object class shall not be permitted. Budgetary Transfers In the event that total expenditures within one or more object class are projected to be greater than the budgetary appropriation in an object class and lesser in others, a transfer of budgeted funds may be processed. Any such budgetary transfer between object classes must receive prior approval of the Board. The Executive Director shall be authorized to approve budget transfers between accounts within a single object class. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 81 Supplemental Requests As soon as a required addition to the budget becomes known, the Executive Director shall submit a detailed request and justification to the Board. This request shall include supporting documentation and recommendations regarding the means for financing. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 82 ATTACHEMENT (A) A sample RFP A. Form and Content of RFP The following is a guide for developing an RFP. Changes to the RFP require the approval of the Executive Officer. 1. Introduction. This section should set forth and describe the agency requesting the services, the amount and source of funds that are available for the project (note, however, that in some instances it may be desirable not to state the amount of funds available), the general parameters of the work product, the deliverable products or services, and the time for completion of the project. In addition, the deadline for submission of the RFP, address and TCAG staff contact person should be included. The introduction section should also discuss the events which have taken place that have made the project desirable. State the problem that must be solved or issue to be addressed specifically defined for the proposed contractors. And clearly set forth the objectives. Where appropriate, the objectives should be stated in quantifiable terms to facilitate evaluation of the contractual effort. 2. Scope of Work. This section should describe the tasks and intermediate products which are expected. The description of work should be as unambiguous as possible so that comparison of proposals based upon it is possible. The focus will usually be on types of activities and results expected so as to allow some creativity in design of an approach. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 83 3. Selection Timeline. This will be the expected schedule for the distribution of Request for Proposals, due date for proposals to be returned, consultant selection, contract finalization, and the beginning of work. 4. Budget and Invoicing. This will be the maximum allowed cost for the life of the project. A note may be added allowing for additional services and/or extensions. This section should also include language stating when the invoices are due and the various forms of backup required: description of work completed, hourly rate and expenditures for each employee and copies of receipts for direct expenses. 5. Proposal Requirements. (a). Firm experience and qualifications: Prospective consultants shall provide a summary description of the consultants overall qualifications for this project and previous experience on similar or related engagements. For each employee that works on this project (except support or clerical), the proposal must list the location of the office that the employee typically works. Failure to provide the requested information may disqualify a proposal. (10 page maximum). (b). Understanding of the Project: Prospective consultants shall include a brief narrative introducing the consultant's understanding of the project requirements. The contents of this section are to be determined by the respondent, but should demonstrate understanding of the unique characteristics of this project and the requirements of the project in the scope of work contained in this request for proposals. Prospective consultants must identify and state in the proposal the types of information it will need to complete the Scope of Services as outlined above. (c.) Management: Prospective consultants shall designate by name the project manager to be employed. The selected consultant shall not substitute the project manager without prior approval by the TCAG Executive Director. (d). Project Personnel: Prospective consultants shall describe the qualifications of all professional personnel assigned to this project, including a summary of similar work or studies each member has performed and a resume of each professional. (5 page maximum). TCAG Accounting Policies and Procedures revised 6/30/2013 Page 84 (e). References: Prospective consultants shall provide names, addresses and telephone numbers for three clients for whom the prospective consultant has performed technical and management assignments of similar complexity to that proposed in this request. A brief summary statement for each assignment shall be provided. (5 page maximum). (f). Subcontracting: If subcontractors are used, prospective consultants must submit a description of each person and/or firm and the work to be done by each subcontractor. The TCAG Executive Director must approve all subcontractors and no work may be subcontracted nor the subcontractor changed without the prior approval of the TCAG Executive Director. The proposal must state the percentage of work to be completed by a certified Disadvantaged Business Enterprise (DBE) firm. See DBE discussion (Item 19). (g). Methodology: Prospective consultants shall describe the overall approach to the projects, specific techniques that will be used, and the specific administrative and operational management expertise that will be employed. This must include a summary of analytical procedures proposed to determine levels of service. (h). Conflict of Interest: Prospective consultants shall disclose any financial, business or other relationship with TCAG, any of the eight incorporated cities in Tulare County, the County of Tulare, or any of their officers or officials that may have an impact on the outcome of the project. The prospective consultant shall also list current clients who may have a financial interest in the outcome of the project. (i). Project Costs: Prospective consultants shall include cost details for the hourly labor rate, administrative and overhead rates and the profit rates as shown below. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 85 SAMPLE COST PROPOSAL HOURLY TITLE RATE TOTAL HOURLY OVERHEAD PROFIT RATE ================================================================ Project Manager Professional Staff etc. The proposal shall include a cost breakdown of the expenses incurred for the project by task and the total cost of the project. (j). Signature: The proposal shall be signed by an official(s) authorized to bind the consultant and shall contain a statement to the effect that the proposal is a firm offer for a 90-day period. The proposal shall also provide the following: name, title, address, and telephone number of individuals with authority to negotiate and contractually bind the company. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 86 (k). Insurance Requirements: TCAG will require the selected consultant to obtain and maintain at its sole cost and expense the following insurance coverage (subject to change as required): (1). Workers’ compensation insurance with statutory limits, and employer's liability insurance with limits of not less than $1,000,000 per accident. (2). Comprehensive general liability insurance with a combined single limit of not less than $1,000,000 per occurrence covering injury to or death of any person or persons, and with limits of not less than $1,000,000 per occurrence covering property damage. Such insurance shall 1) name TCAG and the County of Tulare, its appointed and elected officials, officers, employees and agents as insured; and 2) contain an endorsement that this insurance may not be canceled or reduced until thirty (30) days after the TCAG Executive Director has received notice of such cancellation or reduction. (3). Comprehensive automobile liability insurance with a combined single limit of not less than $500,000 covering per occurrence covering injury to or death of any person or persons, and with limits of not less than $500,000 per occurrence covering property damage. Such insurance shall 1) name TCAG and the County of Tulare, its appointed and elected officials, officers, employees and agents as insured; and 2) contain an endorsement that this insurance may not be canceled or reduced until thirty (30) days after the Executive Director of TCAG shall have received notice of such cancellation or reduction. The selected consultant shall maintain said insurance policies in effect during the term of the contract and shall cause all parties supplying services, labor, or materials to maintain insurance in amounts and coverage not less than those specified above. The consultant shall file certifications of this insurance with TCAG prior to commencement of its performance under this agreement. (l). Harmless Clause: TCAG will require the successful consultant to hold harmless, defend and indemnify TCAG and the County of Tulare, their officers, employees and agents from any liability, claims, actions, costs, damages or losses, for injury, including death to any person, or damage to any property arising out of the consultant's services. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 87 (m). Ineligible Bidders: Each consultant must certify that it is not included on the U.S. Comptroller General's Consolidated List of Persons or Firms Currently Debarred for Violations of Various Public Contracts Incorporating Labor Standards Provisions. Attachment "A" must be properly completed and submitted with the proposal. (n). Title VI of the Civil Rights Act of 1964: The contractor agrees to comply with all the requirements imposed by Title VI of the Civil Rights Act of 1964 (49 USC 2000d) and the regulations of the U.S. Department of Transportation issued there under in 49 CFR Part 21. (o). Equal Employment Opportunity: In connection with the performance of this contract, the contractor shall not discriminate against any employee or applicant for employment because of race, color, age, creed, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. (p). Disadvantaged Business Enterprise (DBE) Policy: It is the policy of the U.S. Department of Transportation that minority and women-owned business enterprises (hereby referred to as Does) as defined in 49 CFR Part 23 shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with federal funds under this agreement. Disadvantaged Business Enterprise (DBE) Certification. If the prospective consultant is DBE certified, proof that the company has been certified shall be included in the proposal. Certification will be from an agency authorized to make such determinations: i.e. Small Business Administration, State of California, etc. Certification will be reviewed and may not be accepted in the event of irregularities. DBE certification will be favorably considered in the selection process. On August 15, 2005, The Tulare County Association of Governments adopted a DBE program goal of 15%. The proposal MUST list the percentage of work by sub-consultants (or prime) to be completed by a certified DBE company. If the percentage is less than 15%, a detailed explanation must be provided. Failure to provide the requested information may disqualify a proposal TCAG Accounting Policies and Procedures revised 6/30/2013 Page 88 (q). Attachments: Attachments "A" through "D" (attached herein) are required in order to meet the requirements of the federal and state funding programs. These attachments must be included at the end of the proposal. ATTACHMENT A: Ineligible Contractors Certification ATTACHMENT B: DBE Participation ATTACHMENT C: Workers' Compensation Insurance ATTACHMENT D: General Liability Additional Insured Endorsement 6. Scoring Criteria, Submission and Selection (a). Selection of Successful Consultant: Selection of the successful consultant will be based on information provided in response to the Request for Proposals, information provided by former clients of the consultant for whom work of a similar scope has been done, and consideration of any exceptions taken to the RFP or taken to the proposed contract terms and conditions. Proposals submitted by each consultant will be evaluated separately based on how well each proposal meets the scoring criteria. b). Contract Award: The selected consultant will execute a contract with TCAG after consultant selection approval. The official selection of the consultant, if any, will be made by TCAG at its next available board meeting. Unsuccessful proposals will be notified in writing. (c). Modification or Withdrawal of Proposals: Any proposal received prior to the due date and time specified may be withdrawn or modified by written request of the consultant. However to be considered, the final modified proposal must be received by the date and time specified above. All verbal modifications of these conditions or provisions are void and ineffective for proposal evaluation purposes. Only written changes issued to consultants by the TCAG Executive Director are authorized and binding. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 89 (d). Selection Process: All proposals submitted in response to this request will be screened by a selection committee using the provided scoring criteria. Proposal opening does not constitute the awarding of a contract. The contract is not in force until it is awarded by the TCAG Board and executed by TCAG. (1). TCAG may, during the evaluation process, request from any applicant additional information that TCAG deems necessary to determine the applicant’s ability to perform the required services. If such information is requested, the applicant shall be permitted three (3) working days to submit the information requested. (2). TCAG reserves the right to select the applicant(s) that in its sole judgment best meets the needs of TCAG. The lowest proposed cost is not the sole criterion for recommending a contract award. TCAG reserves the right to reject any and all proposals and/or negotiate with another party or any other party directly. (e). Rejection of Proposals: Failure to meet the requirements of the Request for Proposals will be cause for rejection of the proposal. TCAG may reject any proposal if it is conditional, incomplete, contains irregularities, or has inordinately high or low costs. TCAG reserves the right to reject any and all proposals without cause. TCAG may waive an immaterial deviation in a proposal when it determines that waiving a requirement is in the best interest of TCAG. Waiver of an immaterial deviation shall in no way modify the Request for Proposals documents or excuse the applicant from full compliance with the contract requirements, if the applicant is awarded the contract (f). Protest Process: All applicants will receive a written notice form TCAG informing them of the recommendation that will be going to the TCAG Board for approval. Should an applicant wish to protest the recommendation, the applicant must provide their protest in writing no later than ten (10) working days from the date of the letter in order to be considered. The protest must specifically detail the nature of the violation and provide clear and substantive evidence supporting the procedural issue being contested. To be considered for review, the protest must contain the following information: TCAG Accounting Policies and Procedures revised 6/30/2013 Page 90 (1). The full name, address, and telephone number of the appealing party; (2). A full and complete statement of the reasons for appeal, including the issue(s) in dispute and the legal authority or other basis for the protestors’ position; (3). A statement of relief sought. (4). Applicants must make their protest as specific as possible and must fully identify the procedural issue being contested. (5). The appellant must provide the protest letter and the supporting documents to Jason Waters, TCAG Regional Planner at the Tulare County Association of Governments. (6). The protest must be in writing with the proper signatory authority and mailed or faxed to the following: Responsible TCAG Staff Person’s Name and Title Tulare County Association of Governments 5955 S. Mooney Blvd. Visalia, California 93291 (559) 733-6720 (fax) Upon receiving a protest, the protest letter will be forwarded to the TCAG Board for review. Once reviewed, the TCAG Board will convene to consider the merits of the appeal and issue a written decision within thirty (30) working days. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 91 (g). Public Record: All proposals submitted in response to this RFP shall become the exclusive property of TCAG. At such time as the selection committee recommends a proposal to the TCAG Board and such recommendation appears on the TCAG Board agenda, all proposals submitted in response to this RFP shall become a matter of public record and shall be regarded as public records. If there are any trade or proprietary secrets included by the consultant, the consultant may provide a different copy of the proposal that would be acceptable to release to the public. (h). Method of Payment: Payment to the selected consultant will be made upon successful completion of project tasks as invoiced by the consultant. Pre-award expenses shall not be allowed. Cash advances will not be available. 7. Proposal Submittal Proposals must be submitted by the due date to the address below. Three bound copies, one electronic copy, and one camera-ready copy of each proposal should be submitted. Tulare County Association of Governments (TCAG) Attn: Responsible TCAG staff person’s name 5955 S. Mooney Boulevard Visalia, CA 93277 8. Questions Questions should be directed to Responsible TCAG Staff Person’s Name and Title at email@co.tulare.ca.us or 559-624-7xxx. Please check www.tularecog.org regularly for amendments or additional information on this RFP. Consultants that are applying are forbidden from contacting members of the Tulare County Association of Governments to discuss their proposal. Failure to comply with this requirement may cause your proposal to be denied without review. TCAG Accounting Policies and Procedures revised 6/30/2013 Page 92
