Proposed McHenry County Code of Conduct

So that potential appointees of the McHenry County Board may know the restrictions of what they are getting into, the complete text of the soon-to-be passed McHenry County Code of Conduct for Appointed Officials to Boards, Commissions and Special Districts is published below:

McHENRY COUNTY
CODE OF CONDUCT
FOR APPOINTED OFFICIALS TO BOARDS, COMMISSIONS
and SPECIAL DISTRICTS

McHenry County relies on many boards and commissions to advise the County Board, recommend policy and in some cases, carry out the policies of the of the County. In addition, the McHenry County Board Chairman, with consent of the County Board, appoints members to serve on governing boards for certain special districts. It is in the public’s best interests that the McHenry County Board adopt a code of conduct to clearly outline the expectations and responsibilities for those serving as appointed officials (herein referred to as “Appointees”) for boards, commissions and special districts to subject to McHenry County’s appointment authority (herein referred to as “Appointed Boards”) with respect to:

A. Accountability
B. Fiscal Responsibility
C. Transparency
D. Ethics

In addition to all Federal, State, and County laws, ordinances or policies that may otherwise apply, Appointees shall also be required to adhere to the standards outlined below which shall be known as the McHenry County Appointed Officials Code of Conduct. Each Appointee shall also sign the attached certificate acknowledging they agree to follow this Code of Conduct in order to serve or continue service on an Appointed Board.

A. ACCOUNTABILITY

Reporting of Information to the McHenry County Board Communicating information to the McHenry County Board

Communicating information is critical to the success and proper governance and of each Appointed Board. It shall be the responsibility of the Appointee to:

1) Ensure that that the McHenry County Board is notified of major events, expenditures, employment issues and other important decisions so the McHenry County Board is well informed on the management of the Appointed Board.

2) Abide by authority granted pursuant to Counties Code Section 5-1133(a). Additionally, unless expressly prohibited by law, appointees shall provide the following information to the County Board annually or within thirty (30) days of receipt of a written request from the McHenry County Board Chairman and make such documents available for public access through McHenry County’s e-library system:

  • Budget and Reserve Policies
  • Adopted Annual Budget
  • Annual Audit including internal controls and management letters
  • Any required legal filings with State or regulatory agencies

3) Provide the following information upon request of the McHenry County Board Chairman and within thirty (30) days subsequent to any amendments or changes the Appointed Board makes to the following documents:

  • An organizational chart
  • Employment contracts of the organization administrator or executive director
  • Employment policies and procedure including leave and benefit allowances and
    any other form of compensation including bonuses or vehicles use allowances
  • Procurement policies detailing methods for soliciting bids and selecting contracts
    without utilizing a competitive bid process
  • Ethics policy
  • Proof of insurance bonds for all officeholders (if required)

4) Immediately disclose any internal or external findings of non-compliance with any law or regulation involving the Appointed Board and / or its personnel unless such disclosure is otherwise prohibited by law.

5) Appointees shall comply with and abide by all Federal, state, and local laws, ordinances, and regulations.B. FISCAL RESPONSIBILITY

The County of McHenry prides itself on its strong record of fiscal responsibility. It is essential and expected that Appointees shall likewise be prudent stewards of public money regardless if it is generated through local taxes, state and/or federal grants, charges for service or other means.

While Appointed Boards have different purposes, responsibilities and nature of services provided, Appointees have the duty and obligation pursuant to this Code of Conduct to ensure that the following actions are being diligently carried out by their respective Appointed Board:

1) Establish Annual Budget Policies based on the needs of the organization the residents whom it serves.

2) Adhere to industry and marketplace standards, comparable and best practices when making decisions on budgeting, contracting, expenditures, reserve policies, employment, compensation, benefits, settlements and other financial standards.

3) Ensure the use of Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS) by enacting, monitoring and updating financial policies as necessary. In addition, Appointees shall ensure that their respective Appointed Board follows the Government Finance Officers Association (GFOA) recommended policies covering, at a minimum, financial planning, revenue and expenditures. See GFOA Best Practices in Appendix A.

4) Operate in an efficient and cost effective manner and strive to decrease costs where practical by:

a. Promoting shared services and collaboration between other appointed and local units of government.

b. Considering the utilization of contract services to reduce personnel and project costs.

c. Evaluating business practices and procedures to enhance operational efficiency.

C. TRANSPARENCY

Transparency and responsiveness are important values that foster open government and community engagement. The following actions are necessary to ensure Appointees and Appointed Boards are accountable to the McHenry County Board and the public:

1) Respond to public inquiries as promptly as possible and maintain an attitude that welcomes and fosters community engagement.

2) Publish board member and staff member direct contact information on the Appointed Board’s website (if applicable).

3) Adhere to the requirements of the Illinois Open Meetings Act.

4) Complete the Open Meetings Act training through the state’s online training program and submit a certificate of completion to McHenry County.

5) Adhere to the requirements of the Freedom of Information Act.

D. ETHICS

McHenry County maintains the highest standards and commitment to ethics in local government and, as such, has enacted the McHenry County Ethics Ordinance to regulate political activity within the government and the acceptance of gifts by officials and employees.

Section 70-20 of the State Officials and Employees Ethics Act requires those who are appointed by the County Board or County Board Chairman to serve on any board, commission or special district to “abide by the ethics laws applicable to, and the ethics policies of, that county and, if applicable, shall be subject to the jurisdiction of that county’s ethics officer or inspector general.” Therefore, Appointees shall adhere to the McHenry County Ethics Ordinance.

VIOLATIONS / REMOVAL FROM OFFICE

If an Appointee is alleged to have violated this Code of Conduct, notice will be provided by the County Board Chairman or their designee to the Appointee of the alleged violation by way of certified mail. Within thirty (30) days from the date the notice was mailed, a hearing before the County Board Committee to which the Appointee’s board reports shall be convened to determine if a violation has occurred. If the Appointed Board does not report directly to a County Board Committee, then the hearing shall be conducted by the County Board.

If good cause, as determined by the body conducting the hearing, is shown that an Appointee has violated any provision of this Code of Conduct, an Appointee can then be removed from office in the following manner:

1) For Appointees appointed by the McHenry County Board Chair, the County Board Chairman may, with concurrence by a 2/3 majority vote of the County Board, remove any appointee he or she appoints.

2) For Appointees appointed by the McHenry County Board, the McHenry County Board may, by a 2/3 majority vote, remove any appointee it appoints.

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Recommended as Revised by Management Services Committee on 11/10/2014

Code of Conduct form 2014

APPENDIX A

BEST PRACTICE

Adoption of Financial Policies (2001) (BUDGET)

Recommendation. The Government Finance Officers Association (GFOA) recommends that, at a minimum, financial policies in the following areas be developed by professional staff and formally adopted by the jurisdiction’s governing board as well as the governing boards of those component units; state, provincial and municipal corporations and organizations; and other bodies under their jurisdiction.

• Financial Planning Policies
• Revenue Policies
• Expenditure Policies

The jurisdiction’s adopted financial policies should be used to frame major policy initiatives and be
summarized in the budget document.

It is further recommended that these policies, along with any others that may be adopted, be reviewed during the budget process. Professional staff should review the policies to ensure continued relevance and to identify any gaps that should be addressed with new policies. The results of the review should be shared with the governing board during the review of the proposed budget.

Policy categories that should be considered for development, adoption and regular review are as follows:

Financial Planning Policies

These policies address both the need for a long-term view and the fundamental principle of a balanced budget. At a minimum, jurisdictions should have policies that support:

1. Balanced Budget – A jurisdiction should adopt a policy(s) that defines a balanced operating budget, encourages commitment to a balanced budget under normal circumstances, and provides for disclosure when a deviation from a balanced operating budget is planned or when it occurs. (NACSLB Practice 4.5)

2. Long-Range Planning – A jurisdiction should adopt a policy(s) that supports a financial planning process that assesses the long-term financial implications of current and proposed operating and capital budgets, budget policies, cash management and investment policies, programs and assumptions. (NACSLB Element 9, GFOA Recommended Practice)

3. Asset Inventory – A jurisdiction should adopt a policy(s) to inventory and assess the condition of all major capital assets. This information should be used to plan for the ongoing financial commitments required to maximize the public’s benefit. (NACSLB Practice 2.2)

Revenue Policies

Understanding the revenue stream is essential to prudent planning. Most of these policies seek stability to avoid potential service disruptions caused by revenue shortfalls. At a minimum jurisdictions should have policies that address:

1. Revenue Diversification – A jurisdiction should adopt a policy(s) that encourages a diversity of revenue sources in order to improve the ability to handle fluctuations in individual sources. (NACSLB Practice 4.6)

2. Fees and Charges – A jurisdiction should adopt policy(s) that identify the manner in which fees and charges are set and the extent to which they cover the cost of the service provided. (NACSLB Practice 4.2)

3. Use of One-time Revenues – A jurisdiction should adopt a policy(s) discouraging the use of one-time revenues for ongoing expenditures. (NACSLB Practice 4.4)

4. Use of Unpredictable Revenues – A jurisdiction should adopt a policy(s) on the collection and use of major revenue sources it considers unpredictable. (NACSLB Practice 4.4a)

Expenditure Policies

The expenditures of jurisdictions define the ongoing public service commitment. Prudent expenditure planning and accountability will ensure fiscal stability. At a minimum, jurisdictions should have policies that address:

1. Debt Capacity, Issuance, and Management – A jurisdiction should adopt a policy(s) thatspecifies appropriate uses for debt and identifies the maximum amount of debt and debt service that should be outstanding at any time. (NACSLB Practice 4.3, 4.3a, GFOA Recommend Practices pp.90-92)

2. Reserve or Stabilization Accounts – A jurisdiction should adopt a policy(s) to maintain a prudent level of financial resources to protect against the need to reduce service levels or raise taxes and fees due to temporary revenue shortfalls or unpredicted one-time expenditures. (NACSLB Practice 4.1)

3. Operating/Capital Expenditure Accountability – A jurisdiction should adopt a policy(s) to compare actual expenditures to budget periodically (e.g., quarterly) and decide on actions to bring the budget into balance, if necessary. (NACSLB Practice 7.2)

References

• “Developing Formal Debt Policies,” Government Finance Review, August 1991.
• “Elements of a Comprehensive Local Debt Policy,” Government Finance Review,
October 1994.
• GFOA Best Practice, “Setting of Government Charges and Fees,” 1996.
• Recommended Budget Practices: A Framework for Improved State and Local Government Budgeting National Advisory Council on State and Local Budgeting, 1998.
• A Guide for Preparing a Debt Policy, Patricia Tigue, GFOA, 1998.
• See also GFOA’s best practice on Establishment of Strategic Plans, 2005.
• See also GFOA’s best practice on Sustainability, 2002.
• See also GFOA’s best practice on Business Preparedness and Continuity Guidelines, 2005.
• See also GFOA’s best practice on Appropriate Level of Unreserved Fund Balance in the General Fund, 2002.


Comments

Proposed McHenry County Code of Conduct — 4 Comments

  1. It’s pretty sad that everything in life must be spelled out to the letter in order to not be sued by anyone.

    Whatever happened to personal responsibility and integrity?

    Attorneys are the bane of our existence along with stupidity of the highest order.

    I promote bands; and I have never ever worked on anything more or less than a verbal agreement/handshake.

    I am personally disgusted by all the legalese that has been foisted upon our short human lives.

  2. Under transparency there should be a requirement that to board members (and citizens who inquire) all relevant information be provided necessary to make an informed decision on projects and county functions instead of just what justifies whatever project or function is under consideration.

    For example, when proposing a gigantic highway project, tell us how to compare costs and benefits: how many people benefit, by how much, and how much that “unit” costs.

    Oh, and tell us how you got those numbers.

    Some of us are a little skeptical.

    In short, tell the truth, the whole truth, and nothing but the truth.

  3. And, those in government should be guided by their moral compass.

    If they don’t have one, stay out of government as they are there to serve the people, not themselves.

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