HomeMy WebLinkAboutAGENDA REPORT 1994 0518 CC REG ITEM 11L ITEM
I ! .
City of Moorpark
Agenda Report
TO: Honorable City Council /
FROM: Richard Hare, Deputy City Ma a //
DATE: April 27, 1994 (CC. Mtg. 5/1 _i4)/
/1 . 94)
SUBJECT: Consider Recommendations made by KPMG
Regarding the Finance and Accounting Functions.
Background
The City's independent auditors, KPMG Peat Marwick (KPMG) , were
engaged to perform a diagnostic review of the City's finance and
accounting functions which are part of the Administrative Services
Department. The scope of this review included the staffing levels to
meet current and expected future needs; the adequacy of the current
accounting system to meet both the internal and external reporting
needs of the City, and the appropriateness of policies and procedures
used to implement those policies.
Their report was published March 7, and reviewed by the Budget and
Finance Committee on March 14. A copy was provided to the City
Council as part of the Committee packet. The Budget and Finance
Committee, in general, concurred with the findings of KPMG and
concluded that the report should act as a guideline or plan for the
future development of the finance function within the Administrative
Services Department. The development of the finance function would
be dependent upon budgetary and other resource constraints.
The report is broken into three sections:
1. Staffing;
2 . Accounting System; and
3 . Policies.
The finance function operates as a system. Improvements in any one
area has a direct impact on the others. '2 ARK, CALIFO
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CITY: DIAMOND BAR PHONE: (909) 860-2489
GENERAL
1. Contact Name/Position 1. JoAnne Gitmed
2. Population 2. 53,672
3. Projected Population(Build-Out) 3. Close to build-out now (City does not have a General Plan that has been adopted).
4. Number of Employees 4. FULL TIME: 24 PART TIME: 7
CITY BUDGET/REVENUE
1 Annual Operating Budget 1. $8,432,345
2. Annual Capital Budget 2.
3. General Fund Revenues 3. $8,762,900
4. Special Fund Revenues 4.
REDEVELOPMENT AGENCY NO
1. Employees: Full/Part Time
2. Annual Revenue to Agency
3. Annual Operating Budget
4. Annual Capital Budget
CONTRACT SERVICES
1. Police 1. Los Angeles County Sheriff's Department
2. Fire 2. Los Angeles County Fire Department
3 Water 3. Independent(Walnut Valley)
4 Sewer/Sanitation 4. Los Angeles County District
5. Electric/Cable 5. Independent
6. Special Districts 6. Public Works - Contract Services
FINANCE/ACCOUNTING Qty:
1. Warrants: Information not available (1) Accounting Manager: $3181 - $4263 (Degreed)
2. Number of Positions: 2 + 3/4 (1) Senior Accountant: $2959- $3965 (Degreed)
3. Salary Range: As Noted (1) P/T Account Clerk: $1618 - $2168 (3/4 Time)
4. "Contract" Employees: None
5. Degree Requirements: As Noted Finance also responsible for Personnel and Risk Management.
6. CPA Requirement: None
HARDWARE/SOFTWARE HARDWARE: Mini-Mainframe
SOFTWARE: CAS-Computer Application System (Proprietary Software; Zenix
Operating System)
Accounts Payable (Yes); Accounts Receivable (Not Used); General Ledger (Yes); Cash
Management (No); Portfolio Management(Not Required); Purchasing (No/Manual
Process Used); Payroll (Yes/function performed in-house). Most investing done through
LAIF; function coordinated by Accounting Manager.
PURCHASING Finance Department responsible for most City purchasing, though Departments may
1. Is Purchasing part of Finance? occasionally order more specialized items.
2. Centralized/Decentralized? Staffing?
CITY CLERK: Does the City Clerk have NO....Though City Clerk receives and handles bonds.
financial responsibility? If so, what is the
City Clerk's salary range?
CM/AS/March 1994/51e:5nsrvy
CITY: DUARTE PHONE: (818) 357-7931
GENERAL
1. Contact Name/Position 1. Evelyn DeJesus, Deputy Finance Director
2. Population 2. 21,000
3. Projected Population(Build-Out) 3. 21,000
4. Number of Employees 4. FULL TIME: 48 PART TIME: 60-70 Seasonal
CITY BUDGET/REVENUE
1. Annual Operating Budget 1. $11,000,000
2. Annual Capital Budget 2. -0- (Combined with Redevelopment Capital)
3. General Fund Revenues 3. $6,215,000
4 Special Fund Revenues 4. $4,746,000 (12 Special Revenue Funds)
REDEVELOPMENT AGENCY 1. Redevelopment Agency is administered primarily by Assistant City Manager(Director
1. Employees: Full/Part Time of Administrative Services), with assistance from other staff as required.
2. Annual Revenue to Agency 2. $4,517,000
3. Annual Operating Budget 3. $7,175,000
4. Annual Capital Budget
4. $1,194,000 (Annual Capital Revenue) Note: 20 Million in Reserves (Overall)
CONTRACT SERVICES
1. Police 1. Los Angeles County
2. Fire 2. Los Angeles County
3. Water 3. Independent (California American Water)
4. Sewer/Sanitation 4. Los Angeles County
5. Electric/Cable 5. Independent
6. Special Districts 6. Special Districts N/A
Note: Duarte also contracts with City of Azusa for "Street Cleaning" services.
FINANCE/ACCOUNTING Qty:
1 Warrants: 3200 per year; excluding (1) Asst City Manager/Director of Admin Services (Finance Director):
Redevelopment $5486- $6688 (Degreed)
2. Number of Positions• 6 (1) Deputy Finance Director: $3192- $3858 (Degreed/Accounting)
3. Salary Range (1) Accounting Technician: $2315 - $2866 (Degreed/Accounting)
4. "Contract" Employees• None (1) Account Clerk: $1690-$2047
5. Degree Requirements (1) Personnel Assistant/Payroll Clerk: P/T $11.63 - $13.77 per hour
6. CPA Requirement: None (1) Economic Development Coordinator/Revenue Manager $2725 - $3175
(1) Department Secretary: $2084- $2567
(1) Administrative Assistant: $2425 - $2866
Degrees required for Finance Director (Public Administration or related)and Deputy
Finance Director(Accounting/Finance).
HARDWARE/SOFTWARE HARDWARE. Prime System SOFTWARE: InfoCell (EDS)
Accounts Payable (Yes); Accounts Receivable (Yes); General Ledger(Yes); Cash
Management (No); Portfolio Management(No); Purchasing (Yes); Capital Asset
Management(Yes); Payroll (No, contract with Bank of America).
PURCHASING Departments responsible for purchasing functions ("Decentralized" approach);
1. Is Purchasing part of Finance? Departments route completed Purchase Orders to Finance/Accounting for processing;
2. Centralized/Decentralized? Staffing? Finance uses Purchasing Module of InfoCell to encumber Purchase Orders; Finance
coordinates Office Supplies/Stationery/Forms for all City staff.
CITY CLERK: Does City Clerk have NO
financial responsibilities? If so, what is City
Clerk's salary range?
CM/AS/March 1994/51c:5nsrvy
CITY: HIGHLAND PHONE: (909) 864-6861
GENERAL
1. Contact Name/Position 1. Chuck Dantuono, Accounting Technician
2. Population 2. 38,000
3. Projected Population(Build-Out) 3. 61,577
4 Number of Employees 4. FULL TIME: 23 PART TIME: 12
CITY BUDGET/REVENUE
1. Annual Operating Budget 1. $7,433,187
2. Annual Capital Budget 2. $2,149,091
3. General Fund Revenues 3. $7,453,744
4. Special Fund Revenues 4. $3,602,031 (Including RDA) 21 Special Revenue Funds
REDEVELOPMENT AGENCY
1 Employees: Full/Part Time 1. Community Development Director administers the Redevelopment Agency.
2. Annual Revenue to Agency 2. $1,153,130
3. Annual Operating Budget 3. $25,543
4. Annual Capital Budget 4. -0-
CONTRACT SERVICES
1. Police 1. YES
2. Fire 2. YES
3 Water 3. Independent Water District
4. Sewer/Sanitation 4. Separate District
5. Electric/Cable 5. Independent
6. Special Districts 6. Special Districts N/A
FINANCE/ACCOUNTING
1 Warrants: 1900 (1) Accounting Manager: $4,000/mo (Degreed)
2. Number of Positions: 3 (Filled) (1) Accounting Technician: $2167/mo (Degreed)
3. Salary Range: As Noted (1) Account Clerk: $1917/mo
4. "Contract" Employees: None (0) Accountant: Authorized position but not filled.
5. Degree Requirements: As Noted
6. CPA Requirement: None Note: Accounting Manager and Accountant positions call for degree (BS/BA). Monthly
salary excludes benefits ($385 per month).
HARDWARE/SOFTWARE HARDWARE: Stand-alone PC on Accounting Manager's desk.
SOFTWARE: Fund Accounting Manager
Accounts Payable (Yes); Accounts Receivable (No/Manual); General Ledger(Yes); Cash
Management(No); Portfolio Management(No); Purchasing (No); Payroll(Yes)/function
performed in-house). The City's investments are handled by the Accounting Manager
(placed with LAIF).
PURCHASING The City's purchasing functions are handled on a "centralized" basis by Finance; most
1. Is Purchasing part of Finance? purchasing processes are handled manually (though purchase orders are encumbered).
2. Centralized/Decentralized? Staffing?
CITY CLERK: Does the City Clerk have NO (The City Manager is the City Clerk; the Deputy City Clerk has no financial
financial responsibilities? If so, what is the responsibilities).
City Clerk's salary range?
CM/AS/March 1994/file:finsrvy
CITY: SAN DIMAS PHONE: (909) 599-6713
GENERAL
1 Contact Name/Position 1. Barbara Herron, Senior Accounting Associate/Systems Operator
2. Population 2. 32,397
3 Projected Population(Build-Out) 3. 36,250
4. Number of Employees 5. FULL TIME: 65 PART TIME: 25 - 55 Seasonal
(6 Regular P/T City Hall)
CITY BUDGET/REVENUE
1. Annual Operating Budget 1. $13,281,816
2. Annual Capital Budget 2. $1,666,108 (Public Works; 18.3% of Budget)
3 General Fund Revenues 3. $8,339,618
4. Special Fund Revenues 4. $8,860,580 (29 Special Revenue Funds)
REDEVELOPMENT AGENCY
1. Employees: Full/Part Time 1. Redevelopment administered by City Manager, Finance Officer, and Planning
2. Annual Revenue to Agency Director; Administrative Budget: $153,675
3 Annual Operating Budget 2. $3,267,350
4. Annual Capital Budget 3. $2,447,085
4. $754,240
CONTRACT SERVICES
1 Police 1. Los Angeles County
2. Fire 2. Los Angeles County
3 Water 3. Independent(Southern California Water)
4. Sewer/Sanitation 4. Independent(Western Disposal Company and Los Angeles County)
5. Electric/Cable 5. Independent
6 Special Districts 6. N/A
FINANCE/ACCOUNTING Qty:
1. Warrants: 4160 (+681 Prepaid; (1) Finance Officer: $4423 - $5358 (Degreed)
+921 Petty Cash) (1) Sr Accounting Associate/Systems Operator: $2442- $2951 (2 Yr/Degree)
2. Number of Positions: 6 F/T (1) Sr Accounting Associate/Revenue Specialist: $2222- $2683
3 Salary Range (Degreed/Other Than Accounting)
4. "Contract" Employees: None (3) Accounting Assistant: $1801 - $2168
5. Degree Requirements (1) P/T Accounting Intern: $7.62- $9.26 per Hour (provides 9/80 relief)
6. CPA Requirement: None
Notes: Degree required for Finance Officer position only. The City Treasurer is now
part time (works one day per week only). The Finance Officer and Sr. Accounting
Associate/Systems Operator are responsible for investment activities also.
HARDWARE/SOFTWARE HARDWARE: IBM System 36 SOFTWARE: BRC
Accounts Payable (Yes); Accounts Receivable (No/manual system used), General Ledger
(Yes); Cash Management(No); Portfolio Management(No); Purchasing (No); Payroll
(Yes; in-house function).
PURCHASING Departments are responsible for preparing their own requisitions; requisitions are then
1. Is Purchasing part of Finance? routed to Finance, where they are typed as purchase orders and routed to the City
2. Centralized/Decentralized? Staffing? Manager for final approval(Finance encumbers purchase orders through Accounts
Payable).
CITY CLERK: Does City Clerk have NO (although the City Clerk maintains the City's Safety Deposit Box).
financial responsibilities? If so, what is the
City Clerk's salary range?
CM/AS/March 1994/f1e:5nsnry
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CITY: SAN JUAN CAPISTRANO PHONE: (714) 443-6301
GENERAL
1. Contact Name/Position 1. Cindy Pendleton, Finance Director
2. Population 2. 27,500
3. Projected Population(Build-Out) 3. 40,000 per General Plan(35,000 realistically)
4. Number of Employees 4. FULL TIME: 81 PART TIME: 7 Regular (+20-25 Seasonal)
CITY BUDGET/REVENUE
1 Annual Operating Budget 1. $10,100,000 General Fund
2. Annual Capital Budget Total Operating Budget/All Funds/Enterprises/Redev Agency: $24,000,000
3. General Fund Revenues 2. $7,200,000
4. Special Fund Revenues 3. $10,138,078
4. $3,300,000 (excluding Redevelopment Agency); 5 Special Revenue Funds
REDEVELOPMENT AGENCY
1 Employees: Full/Part Time 1. Equivalent to three (3) full-time positions; Agency administered by Finance
2. Annual Revenue to Agency Director, Finance Staff, Assistant Planner(Low/Moderate Income Housing).
3. Annual Operating Budget 2. $3,300,000 (includes Tax Increment and Rents)
4. Annual Capital Budget 3. $3,800,000 (includes Debt Service and Low/Moderate Income Housing)
4. $29,000 ($1,100,000 Debt Service)
CONTRACT SERVICES
1 Police 1. Orange County Sheriff's Department
2. Fire 2. Fire Protection District/County of Orange
3. Water 3. Capistrano Fire Protection District(City subsidiary; same Board of Directors)
4. Sewer/Sanitation 4. City Service (Joint Powers Authority)
5 Electric/Cable 5. Independent
6. Special Districts 6. Special Districts N/A
FINANCE/ACCOUNTING (1) Finance Director: $5167-$6403 (CPA)
1 Warrants- 4500-5000 (1) Management Assistant II: $2999- $3749 (Master's in Public Administration)
(includes Payroll checks) (1) Accountant: $3086- $3856 (Degreed)
2. Number of Positions 8 (0) Fiscal Services Manager: $3788 - $4736 (Position not filled)
3. Salary Range: As Noted (1) Administrative Secretary I: $2173 - $2715
4. "Contract" Employees: None (2) Senior Account Technicians: $2259- $2824
5. Degree Requirements: As Noted (1) Accounting Technician: $2090- $2613
6. CPA Requirement: None (1) Cashier/Receptionist: $2090- $2613
Finance Department manages Business Note "Degree or Equivalent" stated as requirement for Finance Director,
Licenses and Parking Citations (though an Management Assistant II, Accountant, and Fiscal Services Manager (position
outside contractor is retained to actually requirements are currently under evaluation). However, the Finance Director
collect parking fines; Finance staff merely recommends that a degree be required for these positions. Management Assistant
provides check and balance). coordinates purchasing function. One Senior Account Technician processes the
payroll; the second Senior Account Technician manages the Business License
Program and provides administrative support to management staff. Finance
Director also acts as City Treasurer.
HARDWARE/SOFTWARE HARDWARE: Dec 3030 (Mini-Computer) SOFTWARE. MMI (Orange County)
Accounts Payable (Yes); Accounts Receivable (Yes); General Ledger(Yes), Cash
Management (Yes); Purchasing (Yes); Fixed Assets (Yes);Weed Abatement (Yes),
Payroll (Yes/function is performed in-house). All modules integrate to the G/L.
PURCHASING The City's purchasing functions are handled on a "decentralized" basis for the most
1 Is Purchasing part of Finance? part, though Finance does coordinate computer maintenance, copier purchases, phone
2. Centralized/Decentralized? Staffing? installations/maintenance functions. Finance reviews all purchase orders to make sure
departments are adhering to Purchasing Ordinance.
CITY CLERK: Does the City Clerk have NO
financial responsibilities? If so, what is the
City Clerk's salary?
CM/AS/March 1994/H1e:8nsrvy
CITY: WALNUT PHONE: (909) 595-7543
GENERAL
1 Contact Name/Position 1 Chris Londo, Finance Director/City Treasurer
2. Population 2. 30,293
3. Projected Pop (Build-Out) 3. 33,000
4. Number of Employees 4. Full Time: 37 Part Time: 6 Regular(+15 Seasonal for Aquatic Program)
CITY BUDGET/REVENUE
1 Annual Operating Budget 1. 10 Million Operating (includes Redevelopment Agency operating budget)
2. Annual Capital Budget 2. Capital Projects funded by Agency
3. General Fund Revenues 3 5 5 Million
4. Special Fund Revenues 4. 3.7 Million(Restricted Revenue)with $500,000 Balance
REDEVELOPMENT AGENCY
1 Employees: Full/Part Time 1 Agency managed jointly by City Manager and Finance Director.
2. Annual Revenue to Agency 2. $4,000,000 cap for redevelopment; $75,000 allocated for administration.
3 Annual Operating Budget 3. $330,000
4. Annual Capital Budget 4 $10,000,000 total approximate Capital Projects budget; ongoing status review
throughout fiscal year.
CONTRACT SERVICES
1. Police 1 Los Angeles County Sheriff's Department
2. Fire 2. Los Angeles Fire District
3. Water 3. Independent(three different companies provide water within City)
4. Sewer/Sanitation 4. Yes: Contract/Franchise
5 Electric/Cable 5. Independent
6. Special Districts 6. No Special Districts
Additional Contract Services: Engineering and Building/Safety (report to City Manager);
Walnut also contracts with L.A. County for major street maintenance services (small City
street maintenance staff handles minor repair, curb painting, etc.)
FINANCE/ACCOUNTING Oty:
1. Warrants• 2200 (1) Finance Director: $4676- $5969 (Degreed)
2. Number of Positions: 5 FT; 2 PT (1)Senior Accountant: $3333 -$4255 (Degreed)
3. Salary Range: As Noted (1) Admin Assistant: $3101 - $3959 (Degreed)
4. "Contract" Employees. None (1) Accounting Assistant: $1978 - $2525
5. Degree Requirements: As Noted (1) Cashier/Clerk: $1829-$2334
6. CPA Requirement: None (1) P/T Payroll $14.20- $15 60 per hour
(1) P/T Data Entry (Contractual)
NOTES: CPA not required for any position;
experience can substitute for education(Sr FUNCTIONS: Senior Accountant(Deputy City Treasurer, Bank Reconciliation, General
Accountant and Admin Asst levels); Ledger, Journal Entries); Administrative Assistant (Budget, Business License);
Accounting Assistant and Clerk positions do Accounting Assistant(A/P); Clerk (Reception, Cash Collection for Building Permits and
not require degrees; salaries exclude Parking Citation).
benefits.
HARDWARE: PC Network (Novell) Accounts Payable (Yes); Accounts Receivable (No); General Ledger(Yes), Cash
SOFTWARE. Mentor; supported by SCT Management(No); Portfolio Management (No); Purchasing (Yes/encumbrance); Business
(vendor) License (Yes); Payroll (Yes/function performed in-house). Investments handled by
Finance Director(LAIF + Treasuries; conservative approach).
PURCHASING: "Decentralized" approach in place; office supplies are coordinated through Accounting;
1. Is Purchasing part of Finance? otherwise, Departments are responsible for determining purchasing needs, obtaining bid
2. Centralized? Decentralized? Staffing? quotes, selecting vendors, adhering to City's Purchasing Ordinance, etc.
CITY CLERK. Does the City Clerk have NO
financial responsibility? If so, what is the
City Clerk's salary?
CM/AS/March 1994/file:finsrvy
Staffing
Of primary concern to KPMG and our previous auditors has been the
staffing level of the department. Their report outlines some of the
difficulties caused by the staffing level including internal control
problems, reporting delays, lack of backup for training, vacations
and illnesses. They recommended increasing staffing over a period
of several years from three (3) full-time employees to seven (7) , in
addition to using the Administrative Services Manager for the
centralized purchasing function.
Survey of Cities' Accounting Staff Size
A survey of similar sized contract cities' is attached and indicates
the staffing level recommendation of KPMG is conservative.
Account Clerk Added - March, 1994
Part of KPMG's recommendation has been implemented this fiscal year.
The City Council authorized the hiring of an additional account clerk
which has increased our staffing from three (3) to four (4) ,
excluding the Deputy City Manager's position. This enhances internal
control at the data entry level.
Account Technician Reclassification to
Account Technician II - May, 1994
Another recommendation is the upgrading of the responsibilities of
the Account Technician to an Account Technician II. This would allow
for the transfer of some of the responsibilities of the Finance
Officer to the Account Technician II, including the daily supervision
of the two Account Clerks and the review of their work. The Finance
Officer in turn would be able to expand his responsibilities in the
reporting, monitoring, and analysis of accounts.
A survey of salaries for comparable positions was conducted by the
Management Analyst in Administrative Services and it was found that
our Account Technician position was compensated within five (5%)
percent of the beginning and ending salaries of the surveyed
positions.
The Account Technician II position or equivalent, in the surveyed
cities' , were typically ten (10%) percent higher than their Account
Technician position. If the City Council approves restructuring and
reclassification of the Account Technician position to Account
Technician II, with a ten (10%) percent adjustment in range, the
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Account Technician would receive an immediate five (5%) percent
adjustment upon reclassification and no change in anniversary date.
The new position of Account Technician II would be at Range 11
($1, 124.25 - $1, 366. 53 biweekly) . Salary savings this year would
fund the five percent increase. This action is included in staff's
recommendation and a revised job description is attached.
Accounting Manager and Account Technician - July 1995
As part of KPMG's recommended organizational structure, accounting
would be separated from finance functions. An Accounting Manager
(new position) would have responsibility for supervision of the
Account Technician II and the two Account Clerks. The other branch
would be headed by the Finance Officer who would have the Account
Technician (new position) assisting with the budget, investments,
reporting, revenues, bond issues, Assessment District, accounting and
other related financial activities. At this point the development of
the finance function (both branches) would still be supervised by the
Deputy City Manager.
The recommended hiring of an accounting manager and an account
technician is July 1995. In our review of other cities' salaries,
the budget impact of this recommendation with benefits is
approximately $87, 000. Other costs would include the rental or
construction of office space and furnishings as well as computers and
equipment that would be needed.
Finance Director Position - July 1996
In the event, the growth in financial activity including the use of
assessment districts, short term and long term financing and grants
occurs as predicted by KPMG, they recommend hiring a Finance Director
by July 1996. Currently, the Deputy City Manager serves as Finance
Director in addition to his other duties. Hiring a full-time Finance
Director would allow the Deputy City Manager to step back from that
role and to concentrate on other current responsibilities including,
but not limited to, support of the City Manager, direction of the
Administrative Services Department, economic development,
redevelopment, risk management, data processing, personnel, budget
management and purchasing.
It is estimated that the annual additional cost in salary and
benefits for a full-time Finance Director would be approximately
$81, 000. This is computed comparing the salary ranges of surveyed
cities and setting a salary at the midpoint of the salaries with
benefits at 25 percent of salary.
Accounting System
KPMG's report on the accounting system focused on the computer
software and hardware currently used by the City to capture and
report information on financial activities. Information is captured
when transactions are made in the form of investments, cash receipts,
cash disbursements, or transfers of cash between funds.
Additionally, fixed assets of the City are recorded in a fixed assets
set of accounts. Reports are made on an interim basis to show the
revenues received and the expenditures made. These reports are
necessary to maintain budget control and to verify to outside
agencies that special revenues are expended in compliance with
federal and state regulations. Annual reports including the Annual
Financial Report, Single Audit Report and budget, are also prepared.
The current financial management system was purchased from Business
Records Corporation (BRC) . Their financial management system is sold
in modules so that a user can purchase pieces of the entire system.
The City initially chose to only purchase the general ledger, and
accounts payable modules. Additional modules which need to be
purchased and installed are the modules for purchase orders,
encumbrance accounting, cash management, and accounts receivables.
Overall, KPMG concluded that the accounting system was adequate, but
there needed to be a reduction in the number of funds used to
classify expenditures and revenues, the chart of accounts required
expansion to allow for better tracking of expenditures by project or
division, and the remaining modules for the system needed to be
purchased so that the financial system is completely integrated.
Hardware
The current financial management package operates on an IBM System 36
minicomputer. The consultants recommended upgrading to an IBM AS 400
with more speed for processing reports and more storage capacity.
Our contract computer system engineer has reviewed KPMG's
recommendation and concurs with the additional recommendation that a
new system include PC Support software which will allow for the
conversion of AS 400 data to useable format for personal computers.
Finance Department Policies and Procedures
The third area of KPMG's review focused on the expenditure approval
process and the review of interim financial information. It was
their conclusion that the current processes are too centralized and
should be decentralized placing more responsibility and
accountability with the department heads.
Some of their recommendations have already been incorporated. For
example, department heads previously had computer access to the
financial management system thereby allowing them to monitor their
expenditures and remaining budget. This system was not used
consistently, therefore printed reports are now provided to the
department heads on a monthly basis requiring their review and a
written response regarding the condition of their budgets.
The more extensive use of purchase orders for pre-approval of
expenditures is also being encouraged. Within a specified spending
limit of $500 department heads can authorize purchases of budgeted
items. Above that limit and up to $5, 000 the purchase must be
reviewed by the Deputy City Manager and above $5,000 the City Manager
must approve the purchase order.
Continued Evaluation of KPMG's Recommendation
Staff proposed to reevaluate the recommendations made by KPMG after
implementation of the new chart of accounts, consolidation of funds
and installation of the new computer system and programs, and
reorganization of existing staff and their duties. Staff will have
a better opportunity to determine if additional staffing is necessary
or not. It is anticipated that this will take place within the next
nine to eighteen months.
Recommendation
Staff and the Budget and Finance Committee (Lawrason/Montgomery)
recommend adoption of the KPMG report as a guideline for future
budget considerations; the approval of the reclassification of the
Account Technician to Account Technician II effective with the first
day of the pay period (5/14/94) , as outlined in this report; and
direct staff to receive quotes for upgrading the accounting computer
system.
C:\WPWIN6CACC.REP\FINSYS.STY
ACCOUNT TECHNICIAN II
DEFINITION
Under general supervision, to perform technical accounting work in the preparation,
maintenance, and processing of accounting records and financial transactions; perform a range
of tasks or supervise others in their performance related to one or more fiscal areas including
accounts payable, accounts receivable, payroll, or financial reporting; to carry out special
assignments of a particular phase of accounting; ability to use and oversee the use of the City's
accounting software for routine data and entry and to generate special reports and statistics as
needed; and, other duties as assigned.
EXAMPLES OF DUTIES
Supervise the account clerk and account technician positions in their routine tasks related to the
following functions: accounts receivable; accounts payable and preparation of the warrant
register; payroll; personnel and benefit costs; lists all outstanding encumbrances; maintains
subsidiary ledgers; posts, assembles, tabulates and compares fmancial data; assists in budget
preparation; keeps various financial records requiring the use of some judgment in choosing
from a limited number of alternatives; assists in investment transactions and reconciles bank
accounts; compares, schedules; makes arithmetical calculations and checks various statistical
or accounting tables and reports; operates computer terminal and related software, adding,
bookkeeping, and calculating machines. Performs specific research on various topics and
reports including year-end closing and audits, may perform the functions of subordinate staff
listed above in their absence, and other duties as assigned.
QUALIFICATIONS
Training and Experience: Any combination equivalent to graduation from high school,
including or supplemented by college level courses in bookkeeping, data processing or
financial record keeping and five years of experience in accounting work, with two years in a
public agency including the maintenance of financial records. Experience as a supervisor
preferred.
Knowledge and Abilities: Knowledge of modern business procedures and practices; knowledge
of basic methods of fmancial record keeping; knowledge of fund accounting; ability to type
from copy accurately at 35 net words per minute; ability to operate a variety of office
machines, word processor, ten key calculator; computer terminal and accounting software
applications; ability to make arithmetic calculations quickly and accurately; ability to
understand, execute, delegate and evaluate the performance of others using both oral and
written instructions.
A:\AD.TEC
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CITY: AGOURA HILLS PHONE: (818) 597-7300
GENERAL
1 Contact Name/Position 1. Elaine Graves, Finance Director
2. Population 2. 20,950
3 Projected Population (Build-Out) 3. 23,389 (General Plan Density)
4. Number of Employees 4. FULL TIME: 18 PART TIME: 7
CITY BUDGET/REVENUE
1 Annual Operating Budget 1. $4,700,000
2. Annual Capital Budget 2. $95,000 (Capital Improvements)
3. General Fund Revenues 3. $5,000,000
4. Special Fund Revenues 4. $3,300,000 (10 Special Revenue Funds)
REDEVELOPMENT AGENCY
1 Employees. Full/Part Time 1. Redevelopment Agency administered by City Manager(as Executive Director) and
2. Annual Revenue to Agency Planning Director.
3. Annual Operating Budget 2. None; currently no activity.
4. Annual Capital Budget
CONTRACT SERVICES
1. Police 1. Los Angeles County Sheriff's Department
2. Fire 2. Separate Fire District
3 Water 3. Independent (Las Virgines)
4. Sewer/Sanitation 4. Los Angeles County
5. Electric/Cable 5. Independent
6. Special Districts 6. Special Districts N/A
FINANCE/ACCOUNTING gyi
1. Warrants: Information Not Available (1) Finance Director/Risk Manager$4616 - $5609 (Degreed)
2. Number of Positions: 3 (2) Accounting Technicians: $2141 -$2602
3. Salary Range: As Noted
4. "Contract" Employees: None Note: Finance Director position requires a degree.
5. Degree Requirements: As Noted
6. CPA Requirement: None
HARDWARE/SOFTWARE HARDWARE: HP 3000 SOFTWARE: ProFund (Projetik)
Accounts Payable (Yes); Accounts Receivable (No/Lotus); General Ledger (Yes); Cash
Management (No/Lotus); Portfolio Management(No/Lotus); Purchasing (Yes/Budget
Verification); Payroll (No/Contract with ADP On-Line System)
PURCHASING Purchasing is handled on "Centralized" basis by Finance; Finance purchases all computer
1. Is Purchasing part of Finance? equipment for City staff; Finance also purchases for the City's "Non-Departmental"
2. Centralized/Decentralized? Staffing? account.
CITY CLERK: Does the City Clerk have NO
financial responsibilities? If so, what is the
City Clerk's salary?
CM/AS/March 1994/file:finsrvy