TRIAL COURT FINANCIAL Policies & Procedures

1 TRIAL COURT . FINANCIAL . Policies & Procedures MANUAL. judicial council of california branch accounting &. procurement ninth edition june 2018. Judicial Council of California To the managers and staff of California's TRIAL courts: The Lockyer-Isenberg TRIAL COURT Funding Act of 1997, also known as AB 233,1 relieved California's county governments of responsibility for funding TRIAL COURT operations, shifting that responsibility to the state. This momentous change had far-reaching effects for the TRIAL courts, which had previously relied on their respective counties for funding, operations, and administrative support for over 40 years.

2 Most importantly, the shift to state funding ushered in a new era of FINANCIAL stability. The TRIAL courts are assured they will receive the resources needed to provide public access to justice in their communities. AB 233 required the TRIAL courts to assume new responsibilities for fiscal management and to be accountable for their use of public resources. It calls for the Judicial Council of California to adopt appropriate rules for budget submission, budget management, and reporting of revenues and expenditures by each COURT . [T]he Judicial Council shall maintain appropriate regulations for recordkeeping and accounting by the courts, in order to determine all moneys collected by the courts, including filing fees, fines, forfeitures, and penalties, and all revenues and expenditures relating to COURT operations.

3 In compliance with California Rules of COURT , rule , which requires the Judicial Council of California to adopt FINANCIAL Policies and Procedures , this manual, has been developed to establish the FINANCIAL and accounting Policies for California's 58 TRIAL courts. The manual is intended to assist the TRIAL courts in complying with statutory requirements and administrative Policies and Procedures for TRIAL COURT fiscal management. Between editions of the manual, Finance Memos will communicate new or enhanced FINANCIAL Policies and Procedures to the TRIAL courts. These Finance Memos will serve as interim guidelines.

4 They must be incorporated into your local manual, and distributed to COURT personnel as appropriate. The manual sets out a system of fundamental internal controls that will enable the TRIAL courts to monitor their use of public funds. To provide flexibility to TRIAL COURT managers, the manual does not prescribe highly detailed Procedures . Rather, it defines the guidelines and boundaries within which the courts will conduct their fiscal operations. The Judicial Council of California recognizes that adhering to some of the Procedures may not be efficient for smaller-sized courts 1. Assem. Bill 233 (Stats.)

5 1997, ch. 850). TRIAL COURT FINANCIAL Policies and introduction Procedures Judicial Council of California Page ii due to reliance on county systems and practices. In these instances, alternative Procedures must be documented, incorporated into your local manual, and distributed to COURT personnel. Unless otherwise noted, alternative Procedures to those included in the TRIAL COURT FINANCIAL Policies and Procedures Manual or your county's policy documents must be approved by the Judicial Council of California. Undocumented Procedures or those not approved by the Judicial Council of California will not be considered valid for audit purposes.

6 It is imperative that local TRIAL COURT operations and fiscal managers review their current practices, Policies , and Procedures to be sure that they are acting within the guidelines established by this manual. The Judicial Council of California is available to provide guidance and to assist the TRIAL courts in their efforts to improve fiscal operations and increase accountability for public funds. For ease of use, this manual is divided into sections. Each section includes Policies and Procedures on specific business operations topics. A table of contents is included in each section to aid users in locating information on specific subjects.

7 The topics covered in this manual include: TRIAL COURT Organization Fiscal Management Fund Accounting Budgets Accounting Practices Accounts Payable Fixed Assets Collections Audits Record Retention Banking and Treasury Security Miscellaneous You are encouraged to submit suggestions for improving TRIAL COURT business operations. For specific questions related to the manual, please send them to: Judicial Council Branch Accounting and Procurement Director Re: TRIAL COURT FINANCIAL Policies and Procedures Manual 2850 Gateway Oaks Drive, Suite 300. Sacramento, CA 95833-4348. E-mail: or Robert Downs at Judicial Council of California Judicial Council of California TRIAL COURT FINANCIAL Policies and Procedures Manual 9th Edition (2018).

8 Section No. Name of Policy Policy No. Table of Contents Manual Organization and Structure Use of Shall, Must, Will, May, and Should Section 1 Organization FIN TRIAL COURT Organization FIN Responsibilities and Authority FIN Internal Controls Section 2 Fiscal Management FIN FINANCIAL Management Section 3 Fund Accounting FIN Fund Accounting Section 4 Budgets FIN Budget Development FIN Budget Monitoring and Reporting FIN Position Management Section 5 Accounting Practices FIN Accounting Principles FIN General Ledger FIN Grant Accounting and Administration Section 6 Procurement FIN Procurement Section 7 Contracts FIN Contracts FIN [Superseded by Judicial Branch Contracting Manual].

9 FIN [Superseded by Judicial Branch Contracting Manual]. TRIAL COURT FINANCIAL Policies and introduction Procedures Judicial Council of California Page iv Section No. Name of Policy Policy No. Section 8 Accounts Payable FIN Vendor Invoice Processing FIN Claim Processing FIN Travel Expense Reimbursement for TRIAL COURT Judges and Employees FIN Petty Cash FIN Business Meal Expense Guidelines Section 9 Fixed Assets FIN Fixed Asset Management Section 10 Collections FIN Uniform Civil Fees and Criminal and Traffic Fines and Fees Collections and Distribution FIN Cash Handling Section 11 Audits FIN Audits Section 12 Record Retention FIN Record Retention Section 13 Banking and Treasury FIN Banking Services Section 14 Security FIN COURT Security [under revision].

10 Section 15 Miscellaneous FIN Gifts of Personal Property FIN Indirect Cost Rate Proposal FIN Escheat FIN Change of Venue Glossary Judicial Council of California TRIAL COURT FINANCIAL Policies and introduction Procedures Judicial Council of California Page v Table of Contents Manual Organization and Structure TRIAL COURT Organization POLICY NUMBER: FIN Table of Contents Purpose Policy Statement Application Definitions Text The Judicial Council of California Organization of the Judicial Council of California Duties and Responsibilities of the Judicial Council of California Rules of COURT Judicial Council of California Staff Organization of Judicial Council of California Staff Duties and Responsibilities of Judicial Council of California Staff The TRIAL COURT Organization of the TRIAL COURT Duties and Responsibilities of the TRIAL COURT TRIAL COURT Operating Standards Associated Documents Responsibilities and Authority POLICY NUMBER.