18469_Authority_June

municipalauthorities.org | 39 • Maintenance of appropriate cash reserves to support operations, capital improvements, and unanticipated contingencies. • Investment of funds in accordance with applicable laws and the Authority’s adopted investment policy. • Consideration and adoption of other fiscal policies as determined necessary by the Board. These fiscal practices are summarized here for context. The specific policies that govern the Authority’s financial operations are formally adopted by the Board and maintained in separate policy documents. Rate Setting The Authority’s primary source of revenue includes user rates, tapping fees, other fees and charges authorized by the Act, interest earnings and miscellaneous income. Rates and other charges are adopted by the Board and reviewed as needed, or annually, in accordance with their budgeting process. It is the Authority’s intent to establish uniform and reasonable rates for service, adopt tapping fees computed in accordance with the specific guidance set forth in the Act, and impose other fees and charges that reflect the actual cost of providing services. Rates are billed (monthly/quarterly/semi-annually), in (advance/arrears) of services. All other fees and charges are billed in accordance with resolutions adopted by the Board from time to time. Monies of the Authority Cash not required for current obligations will be invested in accordance with an annual investment plan revised and approved annually by the Board. The plan should consider the expected cash needed to operate efficiently based on budgeted revenue and spending and identify the depository or investments, interest rate, and term. The Authority’s Treasurer is responsible for receiving and safeguarding the monies of the Authority. Investments must be government-secured and guaranteed in accordance with the Act, other laws of Pennsylvania, indentures, or loan agreements. Acceptable investments include obligations of the United States government or the Commonwealth of Pennsylvania as well as deposits insured by federal agencies. Uninsured deposits must be collateralized in accordance with Pennsylvania Act 10. The Authority Treasurer may invest funds according to the approved investment plan, with any investments exceeding a specified maturity of more than __ (months/years) requiring prior Board approval. The Treasurer shall provide a report to the Board on the status of investments, including the rate of return and current market value. This report shall be issued quarterly at a minimum. Cash needed for operations is to be held in accounts where it can be withdrawn to meet expenses, as needed. To the extent possible, funds should be held in interest bearing accounts. Banking The Board may authorize depositories as needed. (All accounts should be listed.) Currently authorized depositories are: _________________________________ Bank–All deposits for funds received _________________________________ Bank – Payroll accounts _________________________________ Bank – Expenditures accounts _________________________________ Investment accounts _________________________________ Bank – Credit Card accounts All funds received are to be deposited within seven (7) business days of receipt. All accounts are to be reconciled monthly unless statements are unavailable (e.g. for certificates of deposit). Reconciliations are to be completed by the Authority’s staff and signed by the Treasurer. A Treasurer’s Report is to Fiscal article continued from page 27. F ormal financial policies provide a clear framework for managing an authority ' s financial affairs and ensure decisions are consistent and transparent . T hey also promote accountability and public trust .