Financial Management Services (FMS) Proposed Budget (Navigating the New Normal in Government Finance)

Transcription

1 Financial Management Services (FMS) Proposed Budget (Navigating the New Normal in Government Finance) by Lena H. Ellis, Financial Management Services Director/CFO Page E-23 1

2 Financial Management Services (Fiscal Year 2012 Proposed Budget Presentation ) Who We Are and What We Do Where We are Going Opportunities (Challenges) Accomplishments Management Plan 2

3 Financial Management Services Mission (Who We Are and What We Do) To provide accurate and timely information to assure organization integrity, protect City assets and enhance decision-making 3

4 FMS Divisions Department Overview (Who We Are and What We Do) Accounting Administration Financial Systems Administration Purchasing & Office Services Risk Management Treasury 4

5 Comprehensive Annual Financial Report & Single Audit Report (Who We Are and What We Do) Comprehensive Picture of City s Financial Position Provides Scorecard to Council, Citizens, and Others Demonstrates Effectiveness of Fiscal Managers Details Information Used by: Citizens Government Finance Officers Association Granting Agencies Investors Rating Agencies Staff 5

6 Financial Management Report (Who We Are and What We Do) Financial Summary Prepared quarterly Compares budget to actual revenues & expenditures* Fund balance projections Gas Lease Program Departmental performance measures Eye of Fort Worth s Economy * partnership with Budget Office 6

7 Purchasing Process (Who We Are and What We Do) Assist Departments with procurement Goods and Professional Services Request For Proposal (RFP) issuance, evaluation, and award Issues 1,300+ purchase orders annually Authors 140+ M&Cs annually 7

8 Debt Program (Who We Are and What We Do) Current ratings: S&P Fitch Moody s General Obligation AA+ AA+ Aa1 Water and Sewer AA AA+ Aa1 Stormwater AA+ AA+ N/A Outstanding Debt (September 30, 2010): Amount Outstanding General Obligation $1.1B Outstanding Business/Enterprise $904M 8

9 Other Activities (Who We Are and What We Do) Cash billing and collections Risk Management and subrogation Policies and procedures development Consulting services Fiscal Certification on all M&Cs 9

10 Proposed FY2012 Budget Summary (Where We Are Going) FY2011 FY2012 Variance Adopted Budget Proposed Budget $ % Expenditures $7,634,301 $7,808,033 $173, % Authorized Positions % 10

11 Staffing Trends (Where We Are Going) FY08 FY09 FY10 FY11 FY FMS Risk Management Budget & Capital Projects Office Services The above chart does not include 1 AP that is funded by a HUD grant. 11

12 (Proposed Department Overview) (Where We Are Going) Assistant City Manager Management Services General Fund = 72 A.P. All Funds = 88 A.P. Director 1 Administrative/ Analytical Support 2 Assistant Director 1 Assistant Director 1 Financial Systems Administration 8 Accounting & Financial Reporting 38 Treasury 8 Purchasing 13 Risk Management Fund 7 Grants Fund 1 Office Services Fund 9 = non-general Fund 12

13 Significant Budget Changes/Improvements (Where We Are Going) FY11 Adopted Budget 7,634,301 Line Item Changes (3,962) FY12 Line Item Budget Request/Target 7,630,339 FY12 Improvement Package Requets 588,936 FY12 Offsetting Savings (558,477) ERP II Backfills (250,000) Reduction of Consultants (250,000) Other (58,477) Net cost of Improvement Packages 30,459 Budget Office Changes 147,235 Salary, Retirement & Health 173,808 IT Solutions Savings (31,318) Other 4,745 Proposed Budget 7,808,033 % Change from FY11 2.3% 13

14 Improvement Packages Significant Budget Changes/Improvements (Where We Are Going) Restoration of Funds for the Restoration of One Accountant and One Sr. Accountant Restoration of Funds for One Senior IT Analyst and IT Manager Restoration of Funds for One Buyer Addition of Funds for One Accounting Services Supervisor and One Financial Coordinator 14

15 Opportunities (Challenges) Recruit and retain professional talent Reduce reliance on outside consultants Plan for attrition (Succession Planning/Development) Implement new Government Accounting Standard Board (GASB) pronouncements GASB 54 Fund Balance Reporting GASB Exposure Draft on Financial Reporting for Pension Funds 15

16 Legislative/Regulatory Activities (Opportunities/Challenges) Dodd-Frank Act Impact on Financial Advisors Impact on Rating Agencies Impact on Appointed Committee members Municipal Advisors Tax Reform Remote Sales Tax Collection Repeal 3% Withholding of Government Payments Law 16

17 Accomplishments Timely delivery of the FY10 Comprehensive Annual Financial Report (CAFR) and Single Audit Report 2011 Achievement of Excellence in Procurement Award (sixth year in a row) New Merchant Services provider (Chase Paymentech) saving approximately $400,000, annually New Securities Lending provider (Citi) increasing revenues by approximately $250,000, annually Modified Purchasing-card agreement increasing revenues by approximately $100,000, annually 17

18 Management Plan Be a Well-Managed Organization Build Strong Neighborhoods Develop a Sound Economy Foster a Healthy Environment Provide a Safe Community 18

19 Management Plan Ensure the Long-term Fiscal Health of the City FISCAL MANAGEMENT B U D G E T E R P P R O C E D U R E S C A F R FINANCE DIRECTIVES FINANCIAL MANAGEMENT POLICY STATEMENTS 19

20 Financial Management Services Proposed Budget (Navigating the New Normal in Government Finance) by Lena H. Ellis, Financial Management Services Director/CFO Page E-23 20