5 months ago

2018 Adopted Annual Operating & Capital Improvement Budget


ADMINISTRATION Statement of Purpose The purpose of the Administration Program is to ensure high quality program outcomes of the Finance Department. Description The Administration Program ensures that the programs and activities of the department achieve their purpose. The primary activities of the program include the planning, directing, and the evaluation of services. Major activities include the management of personnel, the preparation and management of the department budget, and responsibility for the accuracy and completeness of financial information regarding City accounts and activities. Accomplishments In 2017, the City received an unmodified opinion for the previous year’s financial reports. City Council received monthly financial updates and a budget was adopted which continued to support high quality outcomes. Revenue projections were met and the financial health of the organization remains strong. Goals/Objectives The 2018 objectives of the program include the following: Enhance process efficiency, develop adequate internal control features, and provide for consistent application of best practices. o Develop a comprehensive financial policy (budgeting, accounting, investment, purchasing, etc.) to provide continuity and increased efficiencies. o Initialize a training regimen to incorporate best practices when and where appropriate. Establish an ongoing financial system user training/orientation program so as to provide end users with the ability to extract financial information on demand, greatly enhancing the decision-making process. o Initiate the development of a comprehensive financial system user manual, including the application of policies, practices, and procedures. o Work in coordination with Administrative Services to institute an orientation program whereby new users receive one-on-one training and tutoring. o Develop a seasonal ongoing training regimen in which upcoming financial practices (e.g. budget, yearend, etc.) are presented using a group training method. Evaluate the organization’s comprehensive framework of internal control as an approach to achieving the managerial objectives of effective and efficient operations, financial reporting, and compliance. o Establish a baseline of effective internal control via the identification of risks, existing compensating controls, adequacy of such controls, and utilization thereof. o Evaluate actual performance against established baseline using control cycles and vulnerability assessments. o Resolve identified deficiencies via a corrective action plan with an appropriate time table. Outcome Measures 2015 2016 2017 2018 Actual Actual Estimate Target Percent of department objectives achieved. 95 95 100 100 82

ADMINISTRATION Expenditure Detail 2016 Audited Actuals 2017 Amended Budget 2018 Adopted Budget % Change Personnel Regular Wages $ 163,084 $ 169,355 $ 177,685 4.92% Longevity Service Award - 325 385 18.46% Vehicle Allowance 3,600 3,600 3,600 0.00% Social Security 9,730 9,794 10,520 7.41% Medicare 2,385 2,481 2,617 5.48% Workers Compensation 201 259 233 -10.04% Retirement Contributions 11,811 12,316 6,619 -46.26% Medical Insurance 16,826 15,932 12,204 -23.40% Dental Insurance 722 721 492 -31.76% Life/AD&D Insurance 609 612 576 -5.88% Disability Insurance 502 525 515 -1.90% Total Personnel 209,470 215,920 215,446 -0.22% Purchased Services Professional Services 2,604 - - 0.00% Contracted Services 5,368 2,400 3,250 35.42% Catering/Dining Services 18,291 - - 0.00% Repair/Maintenance Services 3,520 3,750 3,750 0.00% Postage/Shipping Services 31,034 30,000 30,000 0.00% Training/Education 1,848 3,275 3,275 0.00% Dues/Memberships 280 320 235 -26.56% Rentals/Leases 1,569 1,716 - -100.00% Total Purchased Services 64,514 41,461 40,510 -2.29% Supplies/Non-Capital Equipment Operating Supplies 421 1,000 500 -50.00% Total Supplies/Non-Capital Equipment 421 1,000 500 -50.00% Total Expenditures $ 274,405 $ 258,381 $ 256,456 -0.75% Variance Justification Purchased Services (-$951): Contracted Services (+$850): This amount has been increased to more accurately represent the actual historical costs associated with stormwater fees pertaining to the fleet building located within the Southeast Metro Stormwater Authority (SEMSWA). Rentals/Leases (-$1,716): The reduction is attributable to the lease cancellation pertaining to a temporary storage unit used to house surplus equipment during construction of the maintenance facility. Supplies/Non-Capital Equipment (-$500): Operating Supplies (-$500): The amount has been reduced to more accurately represent the actual historical costs associated with miscellaneous office supplies. 83