TRIAL COURT FINANCIAL Policies & Procedures

TRIAL COURT FINANCIAL

Policies & Procedures MANUAL

JUDICIAL COUNCIL OF CALIFORNIA BRANCH ACCOUNTING & PROCUREMENT

12 TWELFTH EDITION

JULY 2022

Judicial Council of California

Trial Court Financial Policies and Procedures

To the managers and staff of California's trial courts:

The Lockyer-Isenberg Trial Court Funding Act of 1997 (Assem. Bill 233; Stats. 1997, ch. 850), 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. 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.

Assembly Bill 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.

In compliance with rule 10.804 of the California Rules of Court, 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. They must be incorporated into your local manual and distributed to court personnel as appropriate.

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Trial Court Financial Policies and Procedures

Judicial Council of California

Introduction Page ii

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 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.

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.

The topics covered in this manual include:

? Trial Court Organization ? Fiscal Management ? Fund Accounting ? Budgets ? Accounting Practices ? Procurement ? Contracts ? 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. If you have 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

Email: TCFin@jud. or Robert Downs at robert.downs@jud.

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Trial Court Financial Policies and Procedures

Judicial Council of California

Introduction Page iii

TABLE OF CONTENTS

Section No. Policy No.

Section 1 FIN 1.01 FIN 1.02 FIN 1.03

Section 2 FIN 2.01

Section 3 FIN 3.01

Section 4 FIN 4.01 FIN 4.02 FIN 4.03

Section 5 FIN 5.01 FIN 5.02 FIN 5.03

Section 6 FIN 6.01

Section 7 FIN 7.01 FIN 7.02 FIN 7.03

Name of Policy

Manual Organization and Structure Method of Citation Associated Documents Use of Words Signifying Requirements or Discretion

Organization Trial Court Organization Responsibilities and Authority Internal Controls

Fiscal Management Financial Management

Fund Accounting Fund Accounting

Budgets Budget Development Budget Monitoring and Reporting Position Management

Accounting Practices Accounting Principles General Ledger Grant Accounting and Administration

Procurement Procurement (Trial Court Construction)

Contracts Contracts (Trial Court Construction) FIN 7.02 and FIN 7.03 superseded by Judicial Branch Contracting

Manual

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Trial Court Financial Policies and Procedures

Judicial Council of California

Introduction Page iv

Section No. Policy No.

Section 8 FIN 8.01 FIN 8.02 FIN 8.03

FIN 8.04 FIN 8.05

Section 9 FIN 9.01

Section 10 FIN 10.01

FIN 10.02

Section 11 FIN 11.01

Section 12 FIN 12.01

Section 13 FIN 13.01

Section 14 FIN 14.01

Section 15 FIN 15.01 FIN 15.02 FIN 15.03 FIN 15.04 FIN 15.05 FIN 15.06 FIN 15.07 FIN 15.08

FIN 15.09

Name of Policy

Accounts Payable Vendor Invoice Processing Claim Processing Travel Expense Reimbursement for Trial Court Judges and

Employees Petty Cash Business Meal Expense Guidelines

Fixed Assets Fixed Asset Management

Collections Uniform Civil Fees (UCF) and Criminal and Traffic Fines and Fees

Collection and Distribution Cash Handling

Audits Audits

Record Retention Record Retention

Banking and Treasury Banking Services

Security Court Security [Under Revision]

Miscellaneous Gifts of Personal Property Indirect Cost Rate Proposal (ICRP) Escheat Change of Venue Trial Court Trust Fund Funds Held on Behalf of the Trial Courts Assembly Bill 2695?Service of Process Reimbursement Reimbursement of Costs Related to State Prisons Reimbursement of Extraordinary Costs Associated With Homicide

Trials Reimbursement of Elder/Dependent Abuse Petitions

Glossary

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Trial Court Financial Policies and Procedures

Manual Organization and Structure

Introduction Page v

MANUAL ORGANIZATION AND STRUCTURE

The Trial Court Financial Policies and Procedures Manual is an integrated set of financial policies and procedures designed to promote consistency and standardization in the business practices of California's trial courts.

Each policy addresses a major topic that is discussed in a common structure and format, and includes the purpose of the procedure, a policy statement, table of contents, application statement, relevant key terms, and the specific guiding procedures intended to implement the policy topic.

1.0 Structure of Financial Policies

1.0 Table of Contents

1.0 Table of Contents 2.0 Purpose 3.0 Policy 4.0 Application 5.0 Definitions 6.0 Text

6.1 6.2 7.0 Associated Documents

Policy Title

2.0 Purpose The purpose of this policy is to ...

3.0 Policy The trial court must ...

4.0 Application This policy applies to all trial court officers and employees.

5.0 Definitions

6.0 Text

6.1 Section

6.1.1 Subsection

1. Paragraph

a. Item

i. Sub-item

7.0 Associated Documents

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Trial Court Financial Policies and Procedures

Manual Organization and Structure

Introduction Page vi

To facilitate manual configuration and revisions, each procedure has a cover sheet that states the procedure name and number, the effective date of the procedure, and the most recent procedure revision date. The procedure number and title are repeated on the header of each page of the manual.

This manual is organized to allow the trial courts flexibility to conduct normal operations within the parameters of applicable federal, state, and Judicial Council of California requirements. Particular emphasis has been placed on certain aspects of financial practices where warranted by the subject matter.

2.0 Method of Citation

Using common terminology when referring to specific parts of this manual will avoid confusion and help others find citations quickly and easily. For example, a reference to one of the organizational requirements for handling cash would be written FIN 10.02, 6.3.2(1)(a)(i) and would be read Policy Number FIN 10.02, subsection 6.3.2, paragraph 1, item a, sub-item i.

Associated Documents

Following each policy section are sample documents for court reference. Many of the associated documents have been developed into fillable PDF documents and can be located on the Judicial Resources Network at .

3.0 Use of Words Signifying Requirements or Discretion

Words used in this manual to signify requirements or discretion have the meaning and intent specified below.

? Shall. The term "shall" is only used in this manual to quote, or paraphrase certain rules, laws, and codes. The California Government Code are the most quoted, or paraphrased statues within this manual. Government Code section 14 defines "shall" as a mandatory requirement.

? Must and Must Not. Signifies a mandatory duty or prohibition unless there is an applicable exemption. Alternative procedures must be approved by the Judicial Council of California.

? Will. The term "will" is not expressly used in this manual to signify requirements or discretion. However, there are many occurrences where the use of "will", in specific context, signifies a requirement. An example is when the term describes a consequence upon the occurrence, or non-occurrence, of a specific event (e.g., If receipts are not provided, reimbursement will not be paid). Another example is when the term "will" is used in sub-sections outlining specific steps of required processes (e.g., The cashier will initial the receipt log).

? Should. Signifies reasonable discretion. Used when policy recommends an action with no compliance mandate. Discretionary decisions should be based on best business

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