HomeMy WebLinkAbout17 ADM TRANSFERS 11-18-96NO. 17
11-18-96
Inter--Com
DATE:
November :!.2, 1996
TO:
FROM:
SUBJECT:
,.
Honorable Mayor and Members of the City Council
Maureen Gallogly, Audit Committee Chair
PROPOSED POLICY FOR ADMINISTRATIVE TRANSFERS
suMMARy: The City Council requested that the Auditi"COm~n'ittee
develop a permanent policy and procedures for. administ'ra~ive.
transfers. The Committee has reviewed various methodOlogies
with Staff and supports the use of indirect administrative-
costs combined with direct service costs as discussed~in'~.this
report.
RECOMMENDATION:
Adopt a policy for administrative transfers between Funds to be
based on indirect administrative costs and direct service costs as
detailed in the attached sample calculation.
DISCUSSION:
The Audit Committee presented a lengthy Staff Report to the City
Council at their meeting of September 16 regarding administrative
transfers between the Water Enterprise and the General Fund. While
the Committee did not find that past transfers were excessive or in
violation of City policy or bond covenants, the recommendation was
made to formalize the policy and procedures for inter-fund
transfers moving forward. The City Council directed the Committee
to further review the process and bring back a recommended
procedure for future transfers.
The Audit Committee reviewed several options and at their meeting
on October 17, a motion was made and carried to recommend to the
City Council a transfer policy that is a combination of indirect
administrative costs and direct service costs. Indirect
administrative costs are those costs that are borne by the
organization but do not directly benefit direct service costs.
This can be calculated as the ratio of general administrative
expenses divided by total General Fund expenses. This ratio is
applied against the total expenses of the Water Enterprise or the
Redevelopment Agency to determine the indirect administrative
burden.
The direct service costs are those costs incurred by the General
Fund when providing services directly to other Funds. The
Committee recommends that a formal time keeping system be instated
to document the direct service costs to be recovered.
.o
Attached are several schedules that show the various calculations
and support documents used to determine the total amount subject to
transfer for 1995-96. This 1995-96 calculation will be the basis
of the 1996-97 transfer. The calculation will be retrospective.
An estimate will be used for budget purpose~ but the actual
transfer will be based~ on the calculation at the end of the
previous year.
Based on the Committee's research and discussions with the CitY's
outside Auditors, the recommended procedures supported by time
sheet accounting are a reasonable and defensible method of
documenting the contributions made by the General Fund to the Water
Enterprise and Redevelopment Agency.
Audit Committee Chaib/
MG:ts
Attachments
RAN5: Proposa [. Nov
1995/96 Water
Indirect Administration Cost Calculation
1995-96 Year End Expense for:
City Council $83,464
City Clerk 291,380
City Attorney 173,808
City Manager 280,305
Finance 396,073
Personnel 278,728
Non- Department 134,542
$1,638,300
Total Gen Fund Exp.
$1,638,300
$26,498,143
6.18%
The indirect
admin cost
factor.
Total Water Exp. of:
$12,337,525 x 6.18% ='s $762,459
The indirect
administraton
cost.
Indirect Admin. cost:
Plus ServiceCosts: -
Pub Wks Admin
Pub Wks Facility
Finance
Personnel
Total Subject to Transfer
$762,459
$68,455
$7,5oo
$122,154
$27,567
$988,135
1995/96 ADMINISTRATION COST ALLOCATION WORKSHEE-r
NON- DEPT EXPENSE
TOTAL EXPENSE AT YEAR END: '$.3,151,025
THE FOLLOWING ARE THE ONLY NON-DEPT
ACCTS TO BE USED tN ADMIN COST ALLOCATION:
6415 Duplication Expense
6435 Postage
6445 Office Equip Maint
6510 Dept Supplies
8321 Reimbursable Costs
8330 Memberships/Subs
8360 Employee Recognition
9050 Employee Assistance
9215 City Memberships
9216 City Link
-
$47,861
43,655
3,726
2,498
1,200
856
4,O4O
8,41 3
20,583
1,71 0
'$134,542
Indirect Service Cost Calculation
De,ot.: Pub Works Admin
Hrs Per yr: 2,080
Less-
Holidays 80
Gert Leave 135
Net Hours 1.865
No Em,os 3
Net Avail Hrs 5,595
Avail
De,ot Detail: Time Hrs
Dir 30.00% 1,865
Admin Asst 15.00% 1,865
Clerical 15.00% 1,865
Water
Hrs
559.50
279.75
279.75
1,119.00
Per Cent of water hrs to avail hrs'
20.00%
95/96 PW Admin Expense:
Indirect Service Cost
$342,'274
2o.oo%
$68,455
Indirect Service Cost Calculation
Dept.: Finance
Hrs Per yr: 2,080
Less:
Holidays 80
Gen Leave 135
Net Hours 1,865
No Emps 7
Net Avail Hrs 13,055
Dept Detail: Time
Dir 25.00%
Asst Dir 25.00%
Secretary 25.00%
Sr Acct 50.00%
Sr Acct CIk 20.00%
Acct Clks (2) 10.00%
Avail
Hfs
1 865
1 865
1,865
1 865
1 865
1 865
Water
Hrs
466.25
466.25
466.25
932.50
373.00
373.00
3,O77.25
Per Cent of water hrs 1o avail hrs:
23.57%
95/96 Finance Expense:
Indirect Service Cost
$518,227
23.57%
$122,154
Basis:
Dir-Est time for Budget,Customer serv, analysis,
personnel,etc.
Asst Dir-Est time water accounting, personnel,
customer service, rate admin, etc.
Secretary- Daily deposit, support admin tasks
Sr Account-FirSt line water supervision, accting,
capital accounting, etc
Sr Acct Clks-Daily recipt varification, bank recon.,
NSF.'s, etc.
Acct Clks-Accts payable based on wtr expenses
all other expenses. Payroll based on total wtr
personnel vs total ft personnel.
DATE'
AUGUST 5, 1996
Inter-Com
TO:
FROM' .,~)
SUBJECT:
RON NAULT, FINANCE DIRECTOR
TIM D. SERLET, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUPPORT SERVICES PROVIDED TO THE WATER SERVICES DIVISION FROM
~ ADMINISTRATION, ENGINEERING, AND FIELD SERVICES DIVISION OF
THE PUBLIC WORKS DEPAR'I3IENT
The following represents services provide to the Water Division from the other Public Works Division:
Set Division Policy/Standards
Attend Inter-Agency meetings to represent City
Review and Evaluate State, Federal and County Water Policies
Direct Operating Budget Preparation
Review and Approve Operating Budget for Submittal to Manager/Council
Track Operating Budget - Purchases, Invoices
Direct Budget Implementation/Budget Transfers
Direct C.I.P. Program/7 Year Plan/Budget
Review StaffReports
Prepare Staff Reports
Review Preliminary Designs
Sign Improvement Plans
Conduct Field Inspection on Capital Projects
Provide Supervisory/Management Traifiing
Provide Direction on Contract Administration
Personnel Evaluation/Grievances
Direct and Review RFP Process including Consultant Selection
Repair Vehicles
Contract Maintenance - Custodial, Pest Control, Fire Alarms, extinguishers, HVAC
On an annualized basis this amounts to approximately the following percentage of work time:
Direction
Administrative Assistant
20-30%
10-15%
Clerical Staff 10-15%
Inspection FY 94/95 = 993 Insp. - FY 95/96 = 93 Insp
Field Services
Contract Maintenance
Direct Billing from 4070
+ 7500/YEAR
TDS:cqt;Supl~ Services ~o Warn'
DATE:
SEPTEMBER 5, 1996
Inter-Com
TO:
FROM:
SUBJECT:
FILE~
RONAL~T, FINJLNCE DIRECTOR
SERVICES PROVIDED TO THE WATER ENTERPRISE BY THE
FINANCE DEPARTMENT FOR FISCAL 1995-96
Services provided by the Finance Department to the Water
Enterprise:
Administration of the Current System Rate Structure
Supervision of Meter Reading and Service Billing
Personnel Evaluations
Preparation and Administration of Budget
Capital Improvement Accounting and Monitoring
Payroll
Accounts Payable
Bond Administration and Accounting
All General Ledger Accounting
Prepare and/or Review Staff Reports
The approximate portion of time to provide these services:
Administration - Director, Assistant Director 25%
- Secretary 25
Supervision - Senior Accountant 50
General Ledger - Senior Account Clerks' 20
Payroll ' Account Clerk 10
· Accounts Payable - Account Clerk 10
RAN5: Servi cesl. Sep