18469_Authority_June

40 The Authority | June 2025 be presented at each meeting that summarizes the amount of cash and investments made by depository. Expenditures Payments of all expenditures are to be authorized by the Board. Certain payments may be made between Board meetings for utilities, deposits or discounts for early payment. The Authority’s staff shall prepare a list of payments for approval each month and be presented to the Board. A requisition evidencing approval to be signed by the Chairman or Vice Chairman and Secretary or Treasurer will be prepared. The requisition will also contain a certificate signed by the Treasurer, certifying the availability of funds, and authorizing transfers to an expenditure account or disbursements account. All purchases by authorized individuals using the Authority’s credit card(s) are to be reported as incurred in accordance with specific procedures adopted by the Authority. Personal expenditures are prohibited. It is important to have a policy on capitalizing fixed assets. Generally, a single item with a life expectancy of more than one year and costing above a specified amount should be capitalized. Often, the amount is somewhere between $3,000 and $5,000. However, smaller amounts may be considered for specific types of assets such as mobile equipment, spare parts, or assets treated as a group like water meters. Consumables and operating supplies are not capitalized. Billing and Collection Accounts will be billed on a (monthly/quarterly/semi-annual) basis in accordance with the Authority’s current rate resolution. At the Board meeting in the month following the billing, a report shall be prepared and presented showing the total accounts billed, the total amount billed, the number of unpaid accounts, amount owed for the current billing and cumulative, and any properties with liens. For seriously past due accounts, accounts with amounts due exceeding $______, or accounts more than _____ months delinquent, (optional) the Board may accept credit card payments with a service fee added for the convenience or pursue such other action as deemed necessary to expedite collection. Debt Management The Board may authorize the issuance of debt to fund capital improvements or other authorized projects. In considering the issuance of debt, the Board will evaluate the debt capacity of the Authority, ensuring that debt issuance remains consistent with the overall financial condition and long-term sustainability of the Authority. Debt may be issued in the form of bonds, loans, or other instruments as permitted by law. The Authority will ensure that debt issuance complies with the provisions of the Municipality Authorities Act, federal regulations, and other applicable Commonwealth of Pennsylvania laws. The Board will monitor the Authority’s debt portfolio regularly, assessing the impact of interest rates, repayment terms, and debt service requirements on the Authority’s financial health. Debt repayment schedules should be structured in a manner that minimizes financial strain on the Authority’s annual budget. The Authority may choose to adopt a formal debt policy that establishes guidelines for debt issuance, including: Legislation and Documents Governing an Authority’s Fiscal Matters The Municipality Authorities Act (the “Act”) grants the authority board broad discretion over the management of its financial affairs, with relevant sections found in Subsections 5611, (Investment of Authority Funds) and 5612 (Money of the Authority). Subsection 5611 grants an authority the power to invest funds and outlines permissible investment types as well as specific limits and restrictions. While the Act provides general investment guidance, additional requirements may be imposed by respective trust indentures, loan agreements, or similar financing documents associated with debt issuance. Further guidance, requirements, and restrictions are provided by other laws of the Commonwealth, particularly Act 10 of 2016, which mandates that public funds deposited with banking institutions be fully insured or collateralized. Subsection 5612 identifies the treasurer or another designated individual as the custodian of the authority’s money. This subsection also prohibits certain uses of the authority’s funds, including payments or in-kind services to a non-profit community organization exceeding $1,000. Additionally, the subsection mandates the authority prepare an annual finance report for discussion at a public meeting, accept the report, and undergo an independent annual audit by a certified public accountant. It further mandates the publication of concise financial statements in a newspaper of general circulation in the municipality where the authority’s principal office is located.