003 - AUDITOR-CONTROLLER

Transcription

1 GENERAL GOVERNMENT SERVICES AUDITOR-CONTROLLER Operational Summary Mission: To promote public oversight, provide accountability, and support financial decision-making for the County. At a Glance: Total FY Actual Expenditure + Encumbrance: 16,773,931 Total Final FY ,454,823 Percent of County General Fund: % Total Employees: Strategic Goals: To assist the County in controlling financial risk. To promote accountability by developing and enforcing systems of accounting controls. To anticipate and satisfy our stakeholders' and clients' needs for financial services and reliable information. To increase Countywide organizational effectiveness by making the appropriate investments in our staff and technology. Key Outcome Indicators: 2007 Business Plan 2008 Business Plan Performance Measure Results Target How are we doing? PERFORM THE REQUIRED AUDITS OF THE TREASURY AND ISSUE THE REQUIRED REPORTS TIMELY. What: Quarterly and annual audits of the County Treasury and monitoring the County investment portfolios. Why: Provide assurance that the cash and investments on hand are equal to those reported by the Treasurer New performance measure. Perform audits of the Treasury for the quarters ending 6/30/08, 9/30/08, and 3/31/09 and the annual audit for the year ended 12/31/08 and submit the required reports on time. Quarters ending 6/30/07 and 9/30/07 submitted on time. 12/31/07 annual audit will be submitted late due to delays in obtaining audit information. We expect this delay may also affect submitting the 3/31/08 quarterly report on time. PRODUCE QUARTERLY SETS OF FRET REPORTS FOR REVIEW BY DEPARTMENT FISCAL MANAGERS. What: Quarterly reporting of financial information, revenue and expenditures. Why: Provide data to departments/agencies on a regular basis to monitor budgetary standing. MEET ALL BIWEEKLY PAYROLL DEADLINES FOR ALL 26 PAY PERIODS. What: Measures ability to meet biweekly County payroll deadlines. Why: To maintain financial well being of employees. Additional measures were developed and implemented in the FRET process. The biweekly payroll deadline was met for all pay periods in FY Continue adding functionality as required. FRET II will be deployed with a new Dashboard appearance. The department fully expects to continue to meet all biweekly payroll deadlines With the implementation of FRET and the development of FRET II the County now has tools to monitor their funds. Despite the many complex terms and conditions required by various MOUs for 19,000 employees, the computation and issuance of the $66 million biweekly payroll has been met for each pay period. 326 County of Orange

2 GENERAL GOVERNMENT SERVICES Key Outcome Indicators: (Continued) 2007 Business Plan 2008 Business Plan Performance Measure Results Target How are we doing? RECEIVE AT LEAST 90% IN OVERALL SATISFACTION IN THE ANNUAL CLIENT SURVEY OF THE A-C IT UNIT. What: Measures client satisfaction with the quality of information and service provided by the CAPS system Why: To meet and exceed expectations of County clients. HAVE THE AUDITOR-CONTROLLER REPRESENTED ON SPECIFIC OVERSIGHT COMMITTEES. What: Auditor-Controller staff will attend 100% of these committee meetings. Why: Ensures the Auditor-Controller provides full support for these oversight committees. 93% of the CAPS system users in 2007 were Very Satisfied to Satisfied with the quality of information provided by the CAPS system and the level of service provided by staff. Nearly all meetings were attended by the Auditor Controller with the balance being attended by senior AC staff. We plan to continue conducting our surveys, and to meet or exceed the rating goal. Staff will attend the meetings of the Treasurer Oversight Committee, Audit Oversight Committee, Public Financing Advisory Committee, CAPS Steering Committee, PTMS Steering Committee, and the Cal State Fullerton Accounting Advisory Board. The department continues to receive high satisfaction ratings for the quality of information provided by the CAPS systems and the level of services provided by staff. Continue to provide full support for these oversight committees. FY Key Project Accomplishments: Maintained appropriation control over the County's $5.9 billion budget. Successfully allocated $5.9 billion in property taxes. Participated in the oversight of the County's $6.1 billion investment pool. Processed approximately 31,000 retroactive pay adjustments totaling approximately $21,000,000. The CAPS+ upgrade implementation has been launched the envision phase has been completed. The Property Tax Management System's needs assessment was completed and a vendor has been selected. Securing the Treasury with establishment of the Internal Audit Unit. Upgraded FRET to FRET II with the implementation of Dashboard Technology. The Payroll Adjustments Workflow was fully implemented on time and approximately $160,000 under budget. Received the GFOA Certificate of Achievement for Excellence in Financial Reporting. Received fourth consecutive Award for Outstanding Achievement in Popular Annual Financial Reporting from GFOA. Supported the County's Training Partners application. County of Orange 327

3 GENERAL GOVERNMENT SERVICES Organizational Summary Auditor-Controller CAPS Program Management Office Administration CAPS + Implementation Project Internal Audit & Staff Services Central Operations Satellite Accounting Operations Information Technology General Accounting Claims & Disbursing Financial Reporting & Collections Property Tax Cost & Budget SSA HCA RDMD IWMD HCS JWA CEO/Public Finance Accounting Systems Emerging Systems/ Technology Payroll Support Central Operations - This division provides the core accounting activities required of the Auditor-Controller which benefit the County as a whole, including: providing payroll and claims processing for all County departments; Accounts Receivable and Collections functions for many County departments; Property Tax section which calculates, bills, collects, and distributes property taxes; Cost, Revenue and Budget Section which prepares the County's annual Countywide Cost Allocation Plan (CWCAP) that is utilized for cost reimbursement claiming purposes by most County departments; and preparation of the County's annual financial statements. With the exception of Collections/Accounts Receivable, which is cost-applied to client departments, the core services provided by the Accounting Operations and Reporting division are financed by general-purpose revenues of the General Fund. Satellite Accounting Operations - This division supports seven County agencies/departments by providing outstationed specialized accounting/financial services. The outstationed agency/department accounting support sections are entirely funded by their host agencies that have outside revenue sources. Examples of these specialized services are the performance of accounting functions such as reimbursement claiming, financial reporting, accounts receivable, accounts payable, payroll, job cost accounting, grant accounting, special information reports for management decision making, providing consultation on special projects, and determining strategies to accomplish business objectives. CAPS Program Management Office - CAPS Program Management Office provides administrative support for the County Accounting and Personnel System (CAPS). This function is assigned to the Auditor-Controller but represents the interests of all owner organizations: CEO/CFO, Human Resources Department, and the Auditor-Controller. Executive Management - This section includes the executive management team that provides leadership and direction for the department. It consists of the Auditor-Controller, Senior Director, Accounting & Technology, and their secretaries. Information Technology - The Information Technology division is responsible for the implementation, maintenance and upgrade of the County's central accounting and financial systems, as well as the development of other accountingrelated systems. 328 County of Orange

4 GENERAL GOVERNMENT SERVICES Administration - This division includes human resources, purchasing, budget management, and administrative support. This division provides central administrative support to the rest of the department. Internal Audit & Staff Services - A major function of the Internal Audit Unit is performing the Auditor-Controller's legally mandated audits. These mandates include quarterly reviews and an annual audit of the Treasury's Statement of Assets as well as a biennial audit of the Probation Department's financial statements. Other legal mandates include the monitoring of Special District financial statements, and investigation of cash losses reported by County Management. The Staff Services section provides professional accounting support to areas of the department that request temporary assistance. CAPS+ Implementation Project - CAPS+ team members are responsible for the upgrade implementation to the County Accounting and Personnel System (CAPS). When fully implemented a number of core County business processes will be re-engineered and many related County policies and procedures will be changed to improve the manner in which the County manages its finances and conducts its procurements. Ten Year Staffing Trend: Ten Year Staffing Trend Highlights: FY 99/00 - Added 1 position in the Central Office as additional clerical support for Purchasing and Human Resource (HR) function FY 00/01 - Added 26 positions that were transferred from HCA with no NCC effect. Added 1 Limited Term position for GASB 34 implementation. Eliminated 10 positions that were transferred to CEO/HR with no NCC effect. Eliminated 1 position from Central Office FY 00/01 Mid Year Adjustments - In November 2000, added 2 Limited Term positions for GASB 34 implementation, added 1 HR manager, added 1 Systems Analyst for ATS, added 1 Limited Term for DA/Family Support study, deleted 2 positions in SSA Accounting Services. In February 2001, added 3 positions due to Systems reorganization. In May 2001, deleted 1 Limited Term DA/FS position, added 1 position in PF&RD Accounting for Dana Point leases. Base budget of 396 positions FY 01/02 - Added 1 position in General Ledger, added 1 Limited Term position in Information Technology for the CAPS upgrade FY 01/02 Mid Year Adjustments - Added 1 position in CSA Accounting for the Area Agency on Aging, added 2 positions in PF&RD Accounting for Dana Point leases, added 1 position to HCA Accounting for Medi-Cal Administrative Activity/Targeted Case Management, and added 1 position transferred to SSA Accounting from SSA for a collection officer. Base budget of 403 positions FY 02/03 - Added 1 Sr. Systems Programmer/Analyst in the Information Technology division FY 02/03 Mid Year Adjustment - Added 1 Limited Term Sr. Accountant/Auditor II to Information Technology to support CAPS fit analysis and CAPS Upgrade. Base budget of 405 positions FY 03/04 - Added 1 Sr. Accountant/Auditor I and 1 Accounting Assistant II to Planning and Development Services Department Accounting and added 2 Accounting Assistant II positions to HCA Accounting (converting 2 extra help positions to regular status) FY 03/04 Mid Year Adjustments - Added 3 Senior Accounting Assistants, transferred from RDMD to RDMD Accounting, deleted 6 vacant Accounting Assistant II positions from SSA Accounting, deleted 3 vacant Accounting Assistant II, 2 vacant Office Assistants and 1 vacant Office Technician from HCA Accounting/CCS. Base budget is 400 positions FY 04/05 - Added 3 Accounting Assistant II positions and 1 Accounting Office Supervisor, transferred from SSA to SSA Accounting. Added 1 Senior Accountant/ Auditor II in Information Technology, effective January 1, 2005 County of Orange 329

5 GENERAL GOVERNMENT SERVICES FY 04/05 Mid Year Adjustment - Deleted 1 vacant, Limited Term Accounting Assistant II from HCA Accounting. Base budget is 404 positions FY 05/06 - Added 2 Systems Programmer/Analyst positions in Information Technology; added 1 Accounting Technician in JWA Accounting; added 1 Accounting Technician in RDMD Accounting/Santa Ana River; added 1 Accountant/Auditor II in RDMD Accounting/ Dana Point; added 1 Accountant/Auditor II and 1 Administrative Manager in RDMD Accounting/Watershed FY 05/06 Mid Year Adjustments - Added 1 Senior Accountant-Auditor I position, transferred from RDMD to RDMD Accounting; added 1 Accounting Technician position in General Ledger Unit; deleted 1 Accounting Assistant II, 2 Office Assistants, and 1 Utility Worker/ Driver positions from SSA Accounting. Base budget is 409 positions FY 06/07 Mid Year Adjustments - Added 1 Administrative Manager III, 3 Administrative Manager II, and 2 Administrative Manager II for CAPS+ Implementation project. Base budget is 415 positions FY 07/08 - Added 2 positions for Internal Audit Unit. Added 4 Admin Manager II positions and 1 Admin Manager I position for CAPS Upgrade FY 07/08 Mid Year Adjustments - Deleted 1 Limited Term Accounting Assistant II in HCA Accounting. Added 3 Admin Manager II positions for CAPS+. Added 1 Sr. Accountant Auditor in RDMD Accounting. Base budget is 425 positions FY 08/09 - Add 1 Sr Programmer Analyst in the Information Technology division Budget Summary Plan for Support of the County's Strategic Priorities: Although the Auditor-Controller does not have responsibility for a specific strategic priority item, the department budget reflects support of the overall priorities including initiation, implementation, and continued support of several technology projects designed to enhance overall efficiency and enable data gathering and processing to be more efficient throughout the County. The Auditor-Controller's plan for 2008 continues to leverage technology by providing workflow initiatives that will provide substantial efficiencies to the County. Although the Auditor-Controller is committed to technology development, the focus will remain on the core operations of the department. Changes Included in the Base Budget: The budget request continues to reflect the Auditor-Controller's desire to increase the usefulness and accessibility of financial systems. As County departments change and reengineer their business processes to increase efficiencies and implement new technologies, the Auditor-Controller is consistently working to control risk at the appropriate level. As County departments are now challenged to maintain or reduce their budgets and operating costs continue to increase, the Auditor-Controller will work to ensure that all risk controlled measures are comprehensively enforced, and that the gate-keeping function of the office remains secure. The Auditor-Controller Department is limited to flat NCC growth. Approved Budget Augmentations and Related Performance Results: Unit Amount Description Performance Plan Add 1 Senior System/Programmer Analyst for Auditor Controller Information Technology Amount:$ (105,119) Add one Senior System/Programmer Analyst I position in Auditor Controller Information Technology. Position will be dedicated to providing full support of applications. BRASS Ser County of Orange

6 GENERAL GOVERNMENT SERVICES Final Budget History: Sources and Uses Actual Exp/Rev As of 6/30/08 As of 6/30/08 Final Budget Amount Percent Total Positions Total Revenues 7,019,003 7,753,898 7,389,314 7,746,424 (7,474) Total Requirements 16,099,835 17,751,500 17,073,222 17,454,823 (296,677) Net County Cost 9,080,832 9,997,602 9,683,908 9,708,399 (289,203) (1) Amounts include prior year expenditure and exclude current year encumbrance. Therefore, the totals listed above may not match Total FY Actual Expenditure + Encumbrance included in the "At a Glance" section. Detailed budget by expense category and by activity is presented for agency: Auditor-Controller in the Appendix on page A13 Highlights of Key Trends: The Auditor-Controller workload increases proportionately with the addition and expansion of County programs and with the general growth in the County budget and number of positions. Workload also increases as a result of requests from client departments for new and enhanced services and for interfaces with our automated systems. Significant information technology department development work will continue for the County's core financial systems. The implementation of the CAPS+ project is currently underway with implementation of the financial system set for July Budget Units Under Agency Control: No. Agency Name 003 Auditor- Controller Central Operations Satellite Accounting Operations CAPS Program Management Office Executive Management Information Technology Administration Internal Audit & Staff Services CAPS+ Implementation Project 8,127,710 4,896, ,773 2,164,564 1,146, , ,454, CAPS Program 26,928, ,928,600 14C Class B-27 Registered Warrants 15Q Pension Obligation Bond Amortization 15W 1996 Recovery Certificates of Participation (A) 15Z Plan of Adjustment Available Cash 32, ,639 14,200, ,200, , ,848 20,369, ,369,385 Total 69,978,182 4,896, ,773 2,164,564 1,146, , ,305,295 Total County of Orange 331

7 Appendix Summary of Final Budget by Revenue and Expense Category: Revenue from Use of Money and $ 12,137 $ 9,000 $ 9,664 $ 15,000 $ 6, % Property Intergovernmental Revenues 1, , Charges For Services 6,969,138 7,612,898 7,352,799 7,643,694 30, Miscellaneous Revenues 36, ,000 25,131 87,730 (44,270) Total Revenues 7,019,003 7,753,898 7,389,314 7,746,424 (7,474) Salaries & Benefits 29,544,695 32,949,028 32,938,095 35,051,119 2,102, Services & Supplies 3,638,732 5,048,270 3,991,508 4,687,280 (360,990) Services & Supplies (2,106) Reimbursements Capital Assets 10,043 21,289 27,741 30,000 8, Intrafund Transfers (17,091,530) (20,267,087) (19,884,121) (22,313,576) (2,046,489) Total Requirements 16,099,835 17,751,500 17,073,222 17,454,823 (296,677) Net County Cost $ 9,080,832 $ 9,997,602 $ 9,683,908 $ 9,708,399 $ (289,203) -2.89% (1) Amounts include prior year expenditure and exclude current year encumbrance. Therefore, the totals listed above may not match Total FY Actual Expenditure + Encumbrance included in the "At a Glance" section. Final Budget Summary of Central Operations: Revenue from Use of Money and $ 12,137 $ 9,000 $ 9,664 $ 15,000 $ 6, % Property Intergovernmental Revenues 1, Charges For Services 1,984,006 2,193,589 2,061,159 2,054,667 (138,922) Miscellaneous Revenues 33, ,000 21,839 87,730 (44,270) Total Revenues 2,031,072 2,334,589 2,092,662 2,157,397 (177,192) Salaries & Benefits 7,233,444 7,787,836 7,681,591 8,055, , Services & Supplies 1,178,531 1,621,593 1,229,296 1,364,589 (257,004) Capital Assets 10,043 21,289 21,289 30,000 8, Intrafund Transfers (1,191,980) (1,370,021) (1,428,991) (1,322,734) 47, Total Requirements 7,230,038 8,060,697 7,503,185 8,127,710 67, Net County Cost $ 5,198,966 $ 5,726,108 $ 5,410,523 $ 5,970,313 $ 244, % County of Orange A13

8 Appendix Final Budget Summary of Satellite Accounting Operations: Final Budget Summary of Satellite Accounting Operations: Charges For Services $ 4,628,666 $ 4,936,274 $ 4,968,538 $ 5,186,476 $ 250, % Miscellaneous Revenues Total Revenues 4,628,666 4,936,274 4,968,833 5,186, , Salaries & Benefits 17,107,379 18,100,965 18,049,522 19,347,067 1,246, Services & Supplies 886, , ,564 1,016,938 52, Intrafund Transfers (13,263,303) (14,374,201) (13,958,842) (15,467,006) (1,092,805) 7.60 Total Requirements 4,730,895 4,691,607 4,714,244 4,896, , Net County Cost $ 102,229 $ (244,667) $ (254,589) $ (289,477) $ (44,810) 18.31% Final Budget Summary of CAPS Program Management Office: Miscellaneous Revenues $ 0 $ 0 $ 295 $ 0 $ % Total Revenues Salaries & Benefits 512, , , ,466 (80,811) Services & Supplies 34,022 52,916 79,021 43,903 (9,013) Intrafund Transfers (584,322) (617,193) (555,244) (527,369) 89, Total Requirements (37,766) 0 12, Net County Cost $ (37,766) $ 0 $ 12,315 $ 0 $ % Final Budget Summary of Executive Management: Salaries & Benefits $ 660,416 $ 712,725 $ 588,163 $ 574,526 $ (138,199) % Services & Supplies 43,934 42,681 46,656 42,247 (434) Total Requirements 704, , , ,773 (138,633) Net County Cost $ 704,349 $ 755,406 $ 634,819 $ 616,773 $ (138,633) % A14 County of Orange

9 Final Budget Summary of Information Technology: Appendix Final Budget Summary of Information Technology: Intergovernmental Revenues $ 0 $ 0 $ 545 $ 0 $ % Miscellaneous Revenues 0 0 1, Total Revenues 0 0 1, Salaries & Benefits 2,975,787 2,675,072 2,844,365 3,056, , Services & Supplies 1,394,132 1,766,160 1,547,265 1,601,100 (165,060) Services & Supplies (2,106) Reimbursements Capital Assets 0 0 6, Intrafund Transfers (2,011,208) (1,878,068) (1,854,346) (2,492,665) (614,597) Total Requirements 2,356,605 2,563,164 2,543,736 2,164,564 (398,600) Net County Cost $ 2,356,605 $ 2,563,164 $ 2,542,081 $ 2,164,564 $ (398,600) % Final Budget Summary of Administration: Intergovernmental Revenues $ 0 $ 0 $ 1,176 $ 0 $ % Charges For Services 356, , , ,645 (80,484) Miscellaneous Revenues 2, , Total Revenues 359, , , ,645 (80,484) Salaries & Benefits 702, , , , , Services & Supplies 649, , , ,229 (9,845) Intrafund Transfers (40,716) (159,445) (13,852) (323,391) (163,946) Total Requirements 1,310,941 1,101,926 1,287,497 1,146,497 44, Net County Cost $ 951,677 $ 700,797 $ 961,628 $ 825,852 $ 125, % Final Budget Summary of Internal Audit & Staff Services: Charges For Services $ 0 $ 81,906 $ 0 $ 81,906 $ % Total Revenues 0 81, , Salaries & Benefits 353, , , ,178 (78,980) Services & Supplies (548,246) 24,451 20,112 27,008 2, Intrafund Transfers 0 (81,909) (64,676) (81,906) Total Requirements (195,228) 578, , ,280 (76,420) Net County Cost $ (195,228) $ 496,794 $ 377,131 $ 420,374 $ (76,420) % County of Orange A15

10 Appendix Final Budget Summary of CAPS+ Implementation Project: Final Budget Summary of CAPS+ Implementation Project: Salaries & Benefits $ 0 $ 1,740,698 $ 1,939,316 $ 2,027,239 $ 286, % Services & Supplies 0 45,552 68,856 71,266 25, Intrafund Transfers 0 (1,786,250) (2,008,171) (2,098,505) (312,255) Total Requirements Net County Cost $ 0 $ 0 $ 0 $ 0 $ % A16 County of Orange