FINANCE AND PROCUREMENT

Transcription

1 Budget Book Page Number -32 FINANCE AND PROCUREMENT The Department of supports County Departments and Constitutional Officers in the provision of services to the residents and businesses of Loudoun County. The Department provides support to County agencies and the County Administrator in the areas of accounting, financial analysis and reporting, procurement, payroll, accounts payable, accounts receivable, capital financing, debt management, and support of the County s financial reporting and payroll systems. The Department s two programs include Financial Analysis and Accounting, and Procurement. In addition, the Department functions as the County liaison to the Board of Equalization. s Programs Financial Analysis and Accounting Procurement Provides the timely and accurate processing and reporting of financial transactions, processing of employee payroll, accounts payable, support of the Oracle system and the ongoing management of the County's debt. Responsible for the acquisition of all goods and services, including professional services and construction, required to meet the service needs of the growing population and County Government operations. Staffing Trends FY 206 FY 207 FY 208 FY 209 Expenditures/Revenues History Millions $6.0 $4.0 $5.0 $5.2 $5.4 $5.5 $2.0 $0.7 $0.6 $0.6 $0.6 $0.0 FY 206 FY 207 FY 208 FY 209 FTE Expenditures Revenues

2 Budget Book Page Number -33 FY 207 Highlights FY 207 was the first full fiscal year for the newly created Department of (DFP). DFP has continued to conduct a comprehensive review and update of financial, payroll, accounts payable, and procurement policies and procedures. Examples include policies currently under development related to the travel policy, supplier set up policies, and pay policies related to the implementation of a new Oracle payroll and time and labor system. Along with the Department of Transportation and Capital Infrastructure and the County Attorney s Office, the Department participated in discussions with the Washington Metropolitan Area Transit Authority (WMATA) regarding Loudoun County s cost implications and participation in the Metrorail system. DFP staff continued to provide regular reporting for the $95 million federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan for the Metrorail extension, providing taxpayers and Dulles Toll Road users significant savings over the next thirty years. The Department was successful in pursuing the case for the County to receive a bond rating upgrade of its TIFIA loan from AA to AA+. The Department also participated, along with Fairfax County, in the refunding of the Fairfax County Economic Development Authority s Route 28 bonds. DFP staff issued the solicitation for the Design-Build Delivery of the Metro Parking Structures for the Ashburn South Loudoun Gateway Metro Stations. The Department played a key role in the testing and support for the upgrade of the County s Oracle ebusiness Suite (EBS) and the Oracle Business Intelligence Enterprise Edition (OBIEE) for reporting. The Department continued work on the implementation of Phase 2 (payroll and human resources modules) for the Enterprise Resource Planning project (ERP). The ERP is the core financial, procurement, payroll, payables, and human resources system for the County. The Department supported the Board of Supervisors Capital Improvement Program (CIP) by advancing projects to referendum prior to the appropriation to ensure that general obligation funding for these projects received voter approval prior to spending. It also supported the Board s adopted financial and legal framework for managing the Loudoun Combined Fire and Rescue System s apparatus purchases and capital facility construction and renovation projects. The Department coordinated and managed the County s semi-annual debt issuance offerings in support of the Board s Adopted Capital Improvement Program. Working with the volunteer fire and rescue community, the Department successfully coordinated the second year of five financial audits for volunteer fire and rescue stations, which helped to improve internal controls for these non-profit organizations. The Department was once again recognized for the professionalism and management of the Board of Supervisor s fiscal policy and practices through the following: Reaffirmation of Loudoun County s triple AAA bond rating; Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the 26th consecutive year; Achievement of Excellence in Procurement Award for the 9th consecutive year; and Comprehensive External Audit report for County Government issued with no material findings.

3 Budget Book Page Number -34 FY 208 Budget Analysis Department Financial and FTE Summary FY 206 Actual FY 207 Adopted FY 208 Proposed FY 209 Projected Expenditures Personnel $4,209,727 $4,499,988 $4,645,558 $4,784,925 Operating and Maintenance 756, ,22 707,543 74,67 Total Expenditures $4,966,03 $5,223,0 $5,353,0 $5,499,542 Revenues Charges For Services 2 $45 $00 $00 $00 Miscellaneous Revenue 3 67,694 24,500 24,500 24,500 Other Financing Sources 4 489,8 43, , ,407 Total Revenues $657,550 $555,693 $590,044 $604,007 Local Tax Funding $4,308,463 $4,667,47 $4,763,057 $4,895,535 FTE As the County organization and its programs and services have grown in size, complexity, and scope, the internal operations functions that support the day-to-day requirements of operations have not grown at a comparable pace. This trend has had a compounding effect on the workload of DFP staff. In order to maintain current service levels, DFP has identified resource needs in both its divisions. For the Procurement Division, the FY 208 Proposed Budget includes the Department s resource request for one additional Contracting Officer (.00 FTE). This position will help with the increased workload issues related to the increasing complexity and volume of procurements which are affecting the division s ability to execute procurement processes in a timely manner. This position will reduce the expected time for the Request for Payment (RFP)/Invitation for Bid (IFB) process, including for the Board s strategic priority of transportation capital projects. The Division currently has seven positions, including one Assistant Purchasing Agent (.00 FTE), five Contracting Officers (5.00 FTE), and one Senior Buyer (.00 FTE), on the contracts team. Adding capacity to the contracts team is essential to continue to move the procurement processes as efficiently as possible, especially in the area of capital infrastructure. The Critical Needs List includes an Assistant Purchasing Agent (.00 FTE), which was requested by the Department and is not included in the FY 208 Proposed Budget. That position would provide an additional resource to the contracts team to help with the workload and to help further improve the RFP/IFB processing time. The County s Accounts Receivable activities continue to increase significantly. The total number of Accounts Receivable invoices, which included invoices, debit memos, credit memos, and commitments processed, increased by 874 or ten percent, from FY 205 to FY 206. This invoice activity involves the process of billing the County s customers and recording the invoice amounts due from the customers in the financial system (Oracle) as a receivable. The total number of Accounts Receivable receipts processed, which included the total receipts, cash or otherwise, applied or not, increased by,448 or eighteen percent, from FY 205 to FY 206. The receipts activity Sums may not equal due to rounding. 2 This revenue is for the Procurement Division s Freedom of Information Act (FOIA) fees collected. 3 This revenue includes rebates on credit cards, remittances received for W-2 reprints, and overpayments/refunds for garnishments. 4 This is the Capital Improvement Program (CIP) fund transfer to the General Fund for three Procurement Division positions and the Debt Service Fund transfer to the General Fund for one Finance Division position.

4 Budget Book Page Number -35 involves the process of accounting for the receipts of payments received from customers and the posting of those payments to the customers accounts in the financial system. For the Finance Division, the Critical Needs List includes one Accounts Receivable Administrator (.00 FTE). The Accounts Receivable function within this Division involves billing and accounting for funds owed to the County government for programs or services rendered, or goods sold to individuals, or organizations. These are classified as assets to the County. This position, if funded, would consistently perform throughout the year, various Accounts Receivable duties within the Oracle Module, which are currently only being performed regularly at year end. These would include reviewing, or auditing the County s invoices billed to outside parties for validity; ensuring that the approximately 8,000 to 0,000 invoices created by Departments annually match what is actually being paid and collected according to the financial records; monitoring and troubleshooting both the invoice, or billing interface, and the receipts interface of Oracle; and following up on County collection efforts for any outstanding unpaid bills, which currently range at approximately 350 to 400 per year. The Department does not currently have a position fully dedicated to these functions on a daily basis. This position would also assist with tracking vendors; maintaining the customer database for billing; serving as back up for functional accounting; and assisting with higher level payroll duties as assigned. The FY 208 Proposed Budget for the Department of includes an increase in local tax funding in the amount of $95,640. Personnel expenditures increased by a net of $45,570, primarily due to performance pay increases, increased benefits costs and the personnel costs for the proposed.00 FTE for the Contracting Officer resource request for the Procurement Division. Operating and maintenance expenditures decreased by a net of $5,580 primarily due to rightsizing central services expenditures. Department revenues for FY 208 increased by $34,35 due to the increases in the transfers from the CIP Fund and the Debt Service Fund to cover the increased personnel expenditures for four Department positions (4.00 FTE). Proposed Resource Request Operating & Capital Absorb/ Personnel Maintenance Outlay Revenue LTF FTE Contracting Officer $95,67 $7,643 $0 $0 $03,34.00 The proposed resource request adds.00 FTE for a sixth Contracting Officer to add capacity to the Procurement Division s seven-member contracts team due to the increasing complexity and volume of procurements. The contracts team is responsible for the timely acquisition of all goods and services for County departments, agencies, and hybrids through the processing of solicitations (IFBs/RFPs), and establishing contracts with vendors in adherence to the Virginia Public-Procurement Act (Chapter et seq.) and the Board of Supervisors' 20 Procurement Resolution. The contracts team currently includes the following 7.00 FTE: one Assistant Purchasing Agent, five Contracting Officers, and one Senior Buyer. Each Contracting Officer is assigned to support specific departments. Without this additional personnel resource, the average number of weeks to process IFBs/RFPs would likely increase 2.2 weeks, thirteen percent, from an average of 7.0 to 9.2 weeks. Total $95,67 $7,643 $0 $0 $03,34.00 The requests presented below display total cost, including the acquisition of vehicles, technology, and office furniture (if applicable). Funds for these items are shown in the Non-Departmental section, page 6-2.

5 Budget Book Page Number -36 Department Performance Measures Mission: To effectively support County Departments and Constitutional Officers in the provision of services to the residents and businesses of Loudoun County by professionally managing, on behalf of the County Administrator, organization-wide processes and providing sound advice in the areas of accounting, financial analysis, and procurement. FY 206 Actual FY 207 Estimated FY 208 Projected FY 209 Projected Accounting and Financial Analysis Objective: Measure the volume of financial transactions processed. Average number of days to pay Number of employee payments made 04,682 05,000 05,000 05,000 Number of operating checks 82,932 85,000 85,000 85,000 Objective: Maintain AAA bond rating with Moody's, Standard and Poor s, and Fitch rating agencies. County's Bond Rating Moody s, Standard and Poor s, and Fitch s AAA AAA AAA AAA Objective: Manage and plan for current and future debt obligations to fit within the affordable index. Annual debt issuance (limited to $225 million $75,525,000 $223,003,07 $223,988,983 $222,347,000 annually) Ratio of debt service to expenditures (limited to 6.73% 7.95% 7.8% 8.28% less than 0%) Ratio of debt to estimated market value of taxable property (limited to less than 3%).66% 2.02% 2.02% 2.07% Procurement Objective: Provide continuous innovation and improvements in efficiency and effectiveness. Average monthly value P-card spent $825,8 $800,000 $805,000 $80,000 External Customer Satisfaction Rating (out of ) Number of IFBs/RFPs issued Percent of PCard spent vs. total spent 6% 6% 6% 6% Number of vendor outreach events Value of contract rebates $63,564 $60,000 $65,000 $70,000 FY 209 and Beyond Several complex projects and solicitation processes which are in direct support of the Board s stated key strategic objectives related to transportation will be performed by the Department. Examples of these projects include, but are not limited to the continued support of transportation and other capital projects (including more alternative delivery methods such as Design-Build and Public-Private Partnership processes), and continued support of the projects associated with the extension of the Dulles Corridor Metrorail project. With the construction of the Silver Line, detailed analysis of the County s funding needs related to this project will be ongoing, including monitoring of On January 6, 206, the Board of Supervisors increased the annual debt issuance limit to $225 million from $200 million. The annual debt issuance data does not include the $95 million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan for the Silver Line Metrorail Project. The TIFIA program provides credit assistance for qualified projects of regional and national significance.

6 Budget Book Page Number -37 the Metrorail Tax District, Metrorail Service Districts, TIFIA loan and future debt issuances. The Department will continue its primary mission and objectives of sound financial management. If the Assistant Purchasing Agent (.00 FTE) and the Accounts Receivable Administrator (.00 FTE), which are on the FY 208 Critical Needs List, are not approved for the FY 208 budget, the Department is likely to request these resources for FY 209. The FY 209 Projected Budget for the Department of includes an increase in local tax funding of $32,478. FY 209 personnel expenditures increased $39,367 or 3 percent. FY 209 operating and maintenance expenditures increased by $7,075 or percent. The Department s revenues for FY 209 are $3,963 higher or 3 percent over FY 208 since the transfer from the CIP Fund to the General Fund will cover the increased personnel expenditures for three Procurement Division positions and the transfer from the Debt Service Fund to the General Fund will cover the increased personnel expenditures for one Finance Division position. FTE History FY 206: The Board of Supervisors added.00 FTE Supplier Administrator for the Finance Division to handle the increased normal workload and additional responsibilities associated with the Oracle Systems implementation. Department Programs Department Financial and FTE Summary by Program FY 206 Actual FY 207 Adopted FY 208 Proposed FY 209 Proposed Expenditures Financial Analysis and Accounting $3,590,558 $3,69,08 $3,76,37 $3,86,374 Procurement,375,455,532,029,59,964,638,68 Total Expenditures $4,966,03 $5,223,0 $5,353,0 $5,499,542 Revenues Financial Analysis and Accounting $84,30 $29,60 $32,67 $36,460 Procurement 473, , , ,547 Total - Revenues $657,550 $555,693 $590,044 $604,007 Local Tax Funding Financial Analysis and Accounting 3,406,428 3,56,47 3,628,520 $3,724,94 Procurement 902,036,05,946,34,537,70,62 Total Local Tax Funding $4,308,463 $4,667,47 $4,763,057 $4,895,535 FTE Financial Analysis and Accounting Procurement Total FTE Sums may not equal due to rounding.

7 Budget Book Page Number -38 Program Descriptions The Department of has two Divisions that serve the citizens of Loudoun County. The Financial Analysis and Accounting Program serves the citizens of Loudoun County, its vendors, agencies, and County employees through the timely and accurate processing and reporting of financial transactions and the ongoing management of the County s debt. The program processes the County s accounts payables, accounts receivables, and payroll; monitors capital projects, records capital assets, and ensures all Federal and State grant requirements are met; develops financing strategies to fund the capital improvement program for both the General Government and the Loudoun County Public Schools (LCPS); reconciles and processes payment of countywide obligations; and ensures timely reporting of financial data to the governing body, rating agencies, and the public. This program also provides administrative and documentary support to the Board of Equalization (BOE) when in session and is the main contact for all citizens appealing the current assessments; answers all phone calls and s, and provides administrative support to Department staff as needed. The Procurement Program is responsible for the acquisition of all goods and services, including professional services and construction, required to meet the service needs of the growing population and County Government Operations. The program conducts all procurements in accordance with the Virginia Public Procurement Act of the Code of Virginia and other applicable law. Procurement makes contract awards in a fair and impartial manner with avoidance of even the appearance of impropriety, while giving all qualified vendors access to the County s business. To achieve the economical, efficient, and effective acquisition of goods and services, Procurement prepares and issues formal, competitive solicitations; negotiates contracts; mediates contract disputes; and conducts vendor outreach programs. In addition, procurement staff advises the Board of Supervisors, County Administration, and departments on procurement matters; performs compliance reviews; and provides training on procurement policies and procedures, contract administration, use of e-procurement systems and delegated authority.