HomeMy WebLinkAboutAGENDA REPORT 1988 0302 CC REG ITEM 08HJOHN GALLOWAY
Mayor
ELOISE BROWN
Mayor Pro Tern
CLINT HARPER, Ph.D.
Councilmember
JOHN PATRICK LANE
Councilmember
MAUREEN W. WALL
City Clerk
THOMAS P. GENOVESE
City Treasurer
TO:
FROM:
DATE:
SUBJECT
BACKGROUND
MOORPARK
MEMORANDUM
The Honorable City Council
Thomas P. Genovese, Deputy City Manage
February 25, 1988 ,\-
CONTRACTUAL SERVICES FOR FINANCIAL ADMINISTRATION
ITEM g•
STEVEN KUENY
City Manager
CHERYLJ.KANE
City Attorney
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
As the City Council is aware, during the City's annual budget process
the City Council authorized the addition of the position of Finance
Officer to the City staff. This position was added to the staff with
the intention of providing professional services in the accounting
function of the organization. The typical duties to be performed by
this position are: general ledger maintenance, cash receipts
management, reconciliation of bank accounts, preparation of financial
statements and reports, budget preparation, preparation of annual
reports to the State, supervision of audit process by the State and
City Auditor, operation of the City's computer system, and supervision
of accounting /clerical staff.
The recent recruitment of the position of Finance Officer did not
succeed in the retention of a person for this position. The City has
again begun the recruitment process for the position with a filing
deadline of March 18, 1988. The intention of the recruitment is to
have a person in the position by May 2, 1988. Due to the time involved
in the recruitment process, it is not anticipated that the position
could be filled any earlier than the above mentioned date.
Currently the critical elements of the duties of the position are being
completed by the Account Clerk and Deputy City Manager. However,
because of the number of projects /duties assigned to the Finance
Department and the need to begin the 1988/89 budget process, it has
become necessary for the City staff to request an account transfer from
the salaries line item of the budget to the contractual services
portion of the budget. The purpose of the account transfer is to move
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
The Honorable City Council
February 25, 1988
Page 2
those monies not utilized for salaries to the contractual services
account to retain the services of temporary personnel. The use of
temporary personnel is suggested to be used in lieu of the consultant
services previously proposed to the City Council. The primary purposes
for the retention of temporary personnel are:
1. To allow for adequate staff time for the preparation of the
1988/89 budget. The budget preparation for the 1988/89 fiscal
year is beginning and the primary research and forecasting is
generally performed between the months of February and May. The
staff members with the primary responsibility for the preparation
of the budget are the City Manager, Deputy City Manager and
Account Clerk.
2. To bring all financial records up to date and allow the Finance
Officer to focus his /her time on the implementation of the City's
financial software package. This implementation is to be
performed by the Finance Officer and Deputy City Manager. The
process is to include the revision of the chart of accounts and
loading of the 1988/89 budget onto the system. It is anticipated
that the implementation will require a significant amount of time
of the Finance Officer for proper implementation.
3. To allow for additional time for treasury management to be
performed by the Deputy City Manager.
4. To provide a computerized General Ledger, Cash Receipts Journal
and Cash Disbursements Journal for the 1987/88 fiscal year.
5. To provide a six month and nine month revenue and expenditure
report.
6. To allow for additional time for the projects currently assigned
to the Finance Department and City Manager's office.
The primary duties of the temporary personnel will be: (1) completion
of the General Ledger and Cash Receipts Journal, (2) preparation of
trial balances for review by appropriate City staff, (3) assist in the
bank reconciliation process to insure proper balancing with the General
Ledger. The above mentioned duties will be performed with a manual
system consistent with the processes currently in place. All treasury
management, cash handling and cash control will continue to be handled
and managed by the current City staff. Additionally, to insure proper
financial procedures and control, the current accounting staff will
still process all of the following:
1. Completion of warrant registers. This includes processing of all
invoices for payment which are reviewed by appropriate City staff
for approval of payment.
MOORPARK, CALIFORNIA
City Council Meeting
of ` 3,-,2 - 1989
The Honorable City Council
February 25, 1988 �o�nnean�T'ir,.
Page 3 ,,nnnn
By`�1��,
2. Issuance and release of all checks. All checks are prepared by
City personnel and require Council approval for release.
3. Processing of all cash receipts.
4. Deposits of all bank deposits of checks and cash received by the
City. (Excludes Building and Safety revenue per agreement with
the County.)
5. Investing City monies.
6. Management of payroll system and release of appropriate checks.
In review of the current budget allocations for the Finance Department
(Dept. 116) it is anticipated that approximately $25,994 will be saved
due to the current vacancy in the Finance Officer position. The salary
savings in this department is based on a Finance Officer coming aboard
on May 2, 1988. (See Exhibit A)
The current estimate on the cost for the temporary personnel services
is $9,300. The estimate of $9,300 includes approximately 400 hours of
service to perform the duties previously addressed in this report.
Additionally, as the City Council is aware, the City has previously
utilized temporary personnel at the beginning of the fiscal year for an
approximate cost of $4,200 and is currently utilizing a payroll service
at an approximate cost of $1,800 for the fiscal year. Therefore, the
current amount required for transfer is $14,300.
Because the current estimate is conservative in the number of hours to
complete the required work and does not include any time for an overlap
period when the Finance Officer comes aboard, City staff is requesting
the City Council to authorize the transfer of $18,000 from Account
01- 116 -502 to Account 01- 116 -542. This transfer will allow the
flexibility to add additional hours should they be necessary for the
completion of the duties described and any additional training
necessary for the implementation of the DLH software. Again, this will
only require a transfer of monies and not require any additional
appropriation of funds. With this transfer, it is anticipated that
approximately $8,000 will still be saved in the Finance Department due
to salary savings of the Finance Officer vacancy.
RECOMMENDATION
1. Authorize the City manager sign the necessary agreement for
services.
2. Authorize the transfer of $18,000 from Account 01- 116 -502 to
Account 01- 116 -542.
PERSONNEL
YTD
Est. Actual*
Budgeted
Total Amt.
Actual
to Year End
Amount
( +) or ! -) (+ or -)
Salaries S8,986
$25,598
S43,356
519,381
Overtime -0-
500
1,877
1,377
Group Medical 693
3,164
8,400
5,235
TOTAL
x
x
H
to
H
H
i
T2 99i S25,994 under budget