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Home My WebLink AboutAGENDA REPORT 1995 1220 CC REG ITEM 07D�v• �5 AGENDA REPORT CITY OF MOORPARK ITEM a TO: Honorable City Council FROM: Martin R. Cole, Management Analyst Department of Administrative Services DATE: December 12, 1995 (CC Meeting of December 20, 1995) SUBJECT: Proposed Revision to the City's Chart of Accounts BACKGROUND To better meet the increased information needs of the Public, the City Council, and Staff, a reorganization and modernization of the City's financial reporting system is under consideration. After reviewing the existing system with Staff and comparing the current system abilities to current and future information needs, a reorganization of the City's chart of accounts is proposed. Staff met with the Budget and Finance Committee (Mayor Lawrason and Councilmember Perez) on December 11, 1995 to present the proposed format of the revised Chart of Accounts and to receive a general consensus from the Committee that Staff was proceeding in an acceptable direction. The Committee supported the direction Staff was taking. Attached is a proposed draft chart of accounts (DCA) for the City Council's information. HIGHLIGHTS OF THE DCA The DCA proposes a basic structure change to the chart of accounts. Currently, the City's account numbers follow this format: AAA- B- CCC -DDD (Fund- Type - Department- Object). The system can currently accommodate a structure of AAA- BBBBBB - CCCCCC- DDDDDD- EEEEEE ( Fund - Department /Division - Project - Subproject- Object). Staff proposes implementation of the expanded account code to allow for project based accounting. In addition to other benefits, by reorganizing the chart of accounts into functional and project areas, the information produced for use by the Public, the City Council, Staff, and other interested parties (auditors, other agencies) will be of heightened value. Following is a brief discussion of some of the proposals embodied in the DCA: FUND ( AAAA - BBBBBB - CCCCCC - DDDDDD- EEEEEEI The existing chart of accounts contains 53 funds. The number of funds will be reduced to approximately 25 by removing infrequently used funds and combining funds into three functional areas: General Funds, Special Revenue Funds, and Fiduciary Funds (as recommended by the Government Finance Officers Association and to reflect the format used by the City's auditors). 000043 Agenda Report to the Honorable City Council Proposed Revision to the City's Chart of Accounts December 12, 1995 (CC Meeting of December 20, 1995) Page two DEPARTMENT /DIVISION ( AAAA - BBBBBB - CCCCCC - DDDDDD - EEEEEE) There are 26 separate departments /divisions in the current chart of accounts. The DCA also (coincidentally) contains 26 department /division codes. The proposed new department /division codes have been regrouped into areas of functional responsibility. Of the proposed code: OOABCD, the A is always 1, B identifies the Department, and CD identifies the Division. The CD code " 10" has been reserved for tracking of the Assessment Districts (please reference proposed codes 001710 and 001810). PROJECT (AAAA - BBBBBB - CCCCCC - DDDDDD- EEEEEE) The proposed Project Code is not currently part of the City's budget process. The Finance Division utilizes a variation of the project code in some limited applications for tracking purposes. The DCA proposes institution of a unique project code for each City project. This will allow for accounting of costs on a project basis and enhance the usefulness of information produced by the financial system. Project codes are "linked" to the department primarily responsible for the project's administration by the use of a common number. For example, a street repavement project would generally be administered by the Public Works Department's Street Division and would have a code following this structure: AAAA - 001801- 008001- DDDDDD - EEEEEE. SUBPROJECT ( AAAA - BBBBBB - CCCCCC- DDDDDD - EEEEEE) Subprojects are fixed codes which refer to common sub -tasks of projects. For example, Community Development Projects (especially large projects) often have various components which need separate financial tracking. An example from the DCA of AAAA- 001600- 006001- 000607- EEEEEE would allow tracking of a large Commercial Planned Development (CPD) (Project 006001 in this case) and its several components. In the example, subproject 000607 indicates the EIR. Costs for a minor modification on the same project would be coded: AAAA- 001600 - 006001 - 000601- EEEEEE. Revenue transactions may also be tracked on a project/subproject level. For example, a developer fee received for an environemtnal impact report for the large CPD mentioned above would have a code structure of. AAAA - 001600 - 006001 - 000607- EEEEEE. By utilizing the project/subproject code, revenue can be traced to the proper project /subproject. Additionally, the financial system, through the "tie" established by the project /subproject code, could produce reports showing revenue and expenses on a project basis. OBJECTS ( AAAA- BBBBBB- CCCCCC - DDDDDD - EEEEEE) This is the highest level of detail in the DCA. The DCA proposed object codes place line item expenses into related groups. Where additional detail has become useful, some "general" object codes (such as contractual services) have been subdivided by the nature of the service (Legal, Fire, Police, etc.) Other sub - groups are similarly arranged. 000044 Agenda Report to the Honorable City Council Proposed Revision to the City's Chart of Accounts December 12, 1995 (CC Meeting of December 20, 1995) Page three PROPOSED FUTURE ACTIONS Staff will be meeting with the Budget and Finance Committee in January, 1996 to provide a project update and to address any additional comments, questions, and suggestions the Committee may have. The goal is to finalize the revised Chart of Accounts for consideration of adoption by the City Council before beginning preparation of the draft 1996 -97 Fiscal Year budget. RECOMMENDATION That the City Council receive and file this report. Attachment: Proposed Draft Chart of Accounts 000045 CITY OF MOORPARK DEPARTMENT OF ADMINISTRATIVE SERVICES ACCOUNTING REORGANIZATION PROJECT DRAFT CHART OF ACCOUNTS AAAA - Fund Identifier - - - -- General Funds - - - -- 0100 - General Fund - - - -- Special Revenue Funds - - - -- - - - -- TRAFFIC SAFETY/TRANSPORTATION ----- 0201 - Traffic Safety Fund 0202 - Traffic System Management Fund 0203 - City Wide Traffic Mitigation Fund 0204 - Local Transportation - Streets 8A Fund 0205 - Local Transportation - Transit Fund - - - -- ASSESSMENT DISTRICTS---- - 0210 - Assessment District Fund - - - -- COMMUNITY CENTER /CITY HALL /POLICE FACILITIES---- - 0220 - City Hall Improvement Fund 0221 - Police Facilities Fund - - -- -AREAS OF CONTRIBUTION - - - -- 0230 - Areas of Contribution Fund - - - -- REDEVELOPMENT AGENCY - - - -- 0240 - RDA Area 1 Capital Project 0241 - RDA Area 1 Debt Service 0242 - RDA Area 1 Special Revenue 0243 - Low and Moderate Income Housing 0244 - RDA Area 1 Fixed Assets 0245 - RDA Area 1 Long Term Debt - - -- -STATE FUNDS - - - -- 0250 - Gas Tax Fund 0251 - State Transit Assistance Fund 0252 - TDA Article 3 Fund 0253 - TDA Article 8B Fund - - - -- FEDERAL FUNDS - - - -- 0260 - ISTEA Fund MRC: \WP51 \MRC95 \CHARTACCT.LST "o®o `(i CITY OF MOORPARK DEPARTMENT OF ADMINISTRATIVE SERVICES ACCOUNTING REORGANIZATION PROJECT DRAFT CHART OF ACCOUNTS - - - -- COMMUNITY DEVELOPMENT BLOCK GRANT - - - -- 0270 - CDBG Entitlement Fund - - -- -OTHER FUNDS - - - -- 0280 - Park Improvement Fund 0281 - Affordable Housing Fund 0282 - Community Development Fund 0283 - Equipment Replacement 0284 - General Fixed Assets - - - -- CAPITAL IMPROVEMENT FUND - - - -- 0290 - Capital Improvement Project Fund (This fund is used to track the City's CIP's and is inter - funded from other sources) - - - -- Fiduciary Funds - - - -- 0300 - Fiduciary Fund 0301 - Employee Def. Comp. Fund MRC:1WP51 \MRC951CHARTACCT. LST 00047 CITY OF MOORPARK DEPARTMENT OF ADMINISTRATIVE SERVICES ACCOUNTING REORGANIZATION PROJECT DRAFT CHART OF ACCOUNTS BBBBBB - Department /Division Identifier 001000 - City Council 001100 - City Manager 001101 - Solid Waste Division 001102 - AB 939 Waste Management Division 001103 - Public Transit Administration Division 001104 - Emergency Services Division 001200 - City Clerk 001300 - City Attorney 001400 - City Treasurer /Department of Finance 001500 - Department of Administrative Services 001501 - Public Safety Contract Administration Division 001502 - Animal Regulation Contract Administration Division 001503 - CDBG Administration Division 001600 - Department of Community Development (Planning) 001601 - Building and Safety Division 001700 - Department of Community Services (Recreation) 001702 - Cable Television Division 001703 - Senior Center Division 001704 - Community Center Division 001710 - Parks Division (A /D 85 -1 Parks Maintenance Fund) 001800 - Department of Public Works 001801 - Streets Division 001802 - Engineering Division 001803 - Crossing Guard Division 001804 - NPDES Division 001810 - A/D 84 -2 Lighting and Landscaping Division MRC:1W PS l 1MRC9S 1CHARTACCT. LST 000048 CITY OF MOORPARK DEPARTMENT OF ADMINISTRATIVE SERVICES ACCOUNTING REORGANIZATION PROJECT DRAFT CHART OF ACCOUNTS CCCCCC - Project Codes 005000 to 005999 - Administrative Services Projects 006000 to 006999 - Community Development Projects 007000 to 007999 - Community Services Projects 008000 to 008999 - Public Works Projects DDDDDD - Sub - Project Codes 000600 to 000699 - Community Development Sub - Project Codes 000601 - Minor Modification 000602 - Major Modification 000603 - Permit Adjustment 000604 - Zone Clearance 000605 - Variance 000606 - Conditional Use Permit 000607 - Environmental Impact Report 000608 - Tentative Tract Map 000700 to 000799 - Community Services Sub - Project Codes 000800 to 000899 - Public Works Sub - Project Codes 000801 - Pre - Design /Pre- Engineering 000802 - Design /Engineering 000803 - Pre - Construction (Bid Solicitation) 000804 - Construction 000805 - Post - Construction MRC: \WP51 \MRC95\CHARTACCT. LST CITY OF MOORPARK DEPARTMENT OF ADMINISTRATIVE SERVICES ACCOUNTING REORGANIZATION PROJECT DRAFT CHART OF ACCOUNTS EEEEEE - Obiect Codes 009100 - Personnel Salaries and Benefits 009102 - Salaries (Full Time) 009103 - Salaries (Part Time) 009104 - Overtime 009110 - Group Medical /Life Insurance 009111 - Workers Compensation Insurance 009112 - Unemployment Insurance 009113 - Retirement Contributions 009114 - Medicare and Social Security 009199 - Salary and Benefit Contingency 009200 - Purchased Services 009201 - Repair and Maintenance Services 009202 - Engineering Services 009203 - Police Services 009204 - Fire Services 009205 - Legal Services 009206 - Plan Check Services 009207 - Inspection Services 009208 - Vehicle Maintenance Services 009209 - Traffic Signal Maintenance Services 009205 - Other Professional /Technical Services 009300 - General Operating Expenses 009301 - Computer Supplies 009302 - Office Supplies 009303 - Copy Machine Supplies 009304 - Shop and Operating Supplies 009305 - Postage 009306 - Operating Supplies 009307 - Printing 009308 - Community Promotion 009309 - Conferences and Meetings 009310 - Books /Publications /Subscriptions 009311 - Memberships /Dues 009312 - Education /Training 009313 - Travel and Mileage 009314 - Uniform Allowance 009320 - Natural Gas 009321 - Electricity 009322 - Water 009323 - Telephone 009324 - Gasoline /Diesel 009325 - Traffic Signal Maintenance Supplies 009326 - Equipment Rental MRC: \WP51 \MRC95 \CHARTACCT1 ST 009400 - Permits /Fees 009401 - Prop. Tax Admin. Fees 009402 - Debt Issuance Costs 009403 - Pass -Thru Prop. Tax 009404 - Residential Permits 009405 - Non - Residential Permits 009406 - Misc. Build. /Safety Permits 009407 - Plan Check /Residential 009408 - Plan Check /Non - Residential 009409 - Misc. Public Work 009410 - Public Improv. Plan Check 009411 - Public Improv. Inspections 009412 - Public Improvement Map Check 009413 - Encroachment Permits 009500 - Other Expenses 009501 - Bad Debt Expense 009502 - Interest Expense 009503 - Debt Service Interest 009504 - Discounts on Loans Receivable 009505 - Advances Paid to City 009900 - Capital Expenses 009901- Land 009902 - Buildings 009903 - Improvements o/t Buildings 009904 - Vehicles 009905 - Office Equipment 009906 - Other Equipment 009907 - Furniture /Fixtures 0000sQ