Requirements of Elected or Appointed Officials Assuming or Leaving Office

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