ADMINISTRATION > Finance > City of Sandy Internal Control Policy

Internal Control Policy


The purpose of maintaining an internal control structure is to ensure that public assets are protected from loss, theft, or misuse.  The City of Sandy has maintained an internal control structure that promotes transparency and accountability without creating an onerous administrative burden.  Ethical standards have been encouraged from management and training in those standards has been provided.  This creates a culture within the city that also promotes accountability.  The following policies and procedures tighten existing practices and will formalize controls already in place.

Internal Control Policies & Procedures:

Purchasing and Accounts Payable:

  1. Invoices other than recurring invoices require department head or designee signature.
  2. Accounts payable batches are prepared by the City Accountant and reviewed by the Finance Director and City Manager or designees.
  3. Accts. Payable batch summaries are emailed to City Council and department heads for review.
  4. Check stock kept locked in cabinet and each check requires signatures by the Finance Director & City Manager.
  5. Each check is accounted for in the financial system software and can be tied back to cleared checks at the bank or voided checks through reports.   

Cash Receipts & Accounts Receivable:

  1. All mail is opened by the administrative clerk and checks are entered into the financial system software by the utility clerk.
  2. Cash and checks are taken to the bank daily and the till is reconciled to the previous day’s balance.  All differences are investigated.
  3. Till counts and accounts receivable batches are conducted and reviewed by the City Accountant or Finance Director.  The bank deposits are taken to the bank by the Finance Director.
  4. Cash and credit card receipting procedures for the Operations Centers, Senior Center, Police, and Library  are as follows:

a. Checks and currency from fines, fees, or donations will be counted by two people (staff or one staff and one volunteer) together, both counts must match.  

b. Counts are recorded on the reconciling form.

c. All checks, currency, and coin are brought to City Hall weekly for verification and entry into the financial system software.  Higher volume cash receipts will require more frequent deliveries to City Hall for deposit.

Bank Reconciliation

  1. The City’s main checking, the senior center checking, the Police Explorer, and the Local Government Investment Pool accounts are reconciled monthly by the Finance Director.
  2. Accounts payable batches and monthly journal entries are performed by the City Accountant and reviewed by the Finance Director.
  3. Copies of cleared checks are received with the monthly bank statement and kept on file throughout the fiscal year.
  4. Every check number is accounted for through cleared checks or voided checks and monitored through a reporting system.
  5. Financial Reports comparing year-to-date transactions to the budget are updated monthly and posted online for Council and public review