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HomeMy WebLinkAboutTR-2-96 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: January 8, 1996 Res. #LLâ–º By-Law# Report#: TR 2-96 File#: Subject: REQUEST FOR FINANCING FOR CASH CONTROL IMPROVEMENTS Recommendations: i It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-2-96 be received; 2. THAT approval be granted to purchase three (3) only Computer Stations, complete with scanning equipment and cash drawer equipment, at a cost of $19,213.00 plus applicable taxes, to be charged to account #2900-00024-X Computer Equipment Finance Reserve for the Tax Revenue area FORTHWITH; and 3. THAT approval be granted to purchase one (1) only time delay or key lock depository drop safe for the Rickard Recreation Complex at an approximate cost of $2,000.00 to be charged to Contingency Account #7007-X-0298 (1995 carryover) FORTHWITH. BACKGROUND AND COMMENTS: TAX COUNTER IMPROVEMENTS The first phase of an automated tax payment module was approved in the 1995 Capital Budget. Based on recommendations from our auditors,Deloitte &Touche,after a review of our cash handling procedures, it was determined that this project should be given a priority to complete. The 1995 approved funds have been spent according to the 1995 budget. One (1) complete scanning and cash drawer station was purchased and the software has been designed and tested. The next phase requires the purchase of the remaining three (3) stations to accommodate all four (4) Revenue Clerks. Due to the delivery and installation time required and the further training required prior to the February 1996 tax instalment due date, it is necessary to purchase these remaining stations in advance of the 1996 Capital Budget. I I RECYCLED $EA PA EC CLE I TR-2-96 Page 2 The automation of the tax counter will result in better service to the taxpayer because the scanning equipment reduces human errors in keying tax payments received. The scanning equipment will also result in more timely information to the taxpayer because tax accounts will be updated automatically as payments are received and scanned into the system. This will also allow for more timely deposit of monies to the Municipality's bank account and therefore increase interest revenue earned on these funds. The scanning equipment will also reduce overtime required during instalment periods because the current time spent manually entering each payment will not be necessary. The cash drawer system is a major improvement to audit controls over cash handling. As each payment is received, a receipt is automatically generated for the taxpayer and the Revenue Clerks must balance at the end of the day to a computer tally of all monies received at their station. RICKARD RECREATION COMPLEX Significant amounts of cash in small denominations is collected at the Rickard Recreation Complex and the volumes are anticipated to increase in light of the current reorganizations taking place in the Community Services Department. Revenues for public skating, concessions etc. are collected by part-time staff who tally the cash collected at the end of their shift. One of the full-time arena staff will then open the safe to lock away that shifts' revenues. There is a serious control weakness in the availability and access to the safe and with the anticipated increase in activity at the Complex, it is recommended that a drop safe depository be installed. This would result in the balanced revenue for each shift being secured and inaccessible until the Supervisor opens the depository to process the revenue receipts. CONCLUSION: The above measures are recommended and are in keeping with the budgetary restraints,as they will increase the security of cash and will in fact reduce some associates overtime at peak instalment periods and will assist in generating increased interest revenue through more efficient processing and depositing of cash. =A. Marano, d, Reviewed by, i i t m Sc., A.M.C.T., W.H. Stockwell, Treasurer. Chief Administrative Officer. MM/NT/hjl i i i i i