NEWPORT BEACH : Finance Chief Adds Security Measures

In a move to tighten accessibility to city coffers and minimize the chance for fraud, the Finance Department will implement new control procedures, Finance Director Dennis Danner said Monday.

Danner said his department will prepare monthly lists detailing the checks issued for each city department for scrutiny by department heads and budget analyzers.

Having two people check out each department’s checks will “go a long way in catching something like the Robert Dixon” embezzlement, Danner said, referring to the former utilities director who was convicted last year for embezzling $1.8 million from the city.

Also, any purchase of $500 or more must be accompanied by a purchase order or a check will not be issued, Danner said.

The new rules go into effect Feb. 1.

The old procedures for purchasing, processing of accounts payable and property control hadn’t been revised since 1989, Danner said. “I found them to be somewhat contradictory, so I wanted to clarify them,” he said.

Under the new procedures, any purchase between $500 and $2,499 will require three telephone bids and a requisition. Purchases between $2,500 and $4,999 will require three written bids and a requisition. Danner will review all purchases between $5,000 and $29,000 and anything over $30,000 will require formal bidding.