HomeMy WebLinkAbout12 ADMIN XFERS 12-02-96AGENDA,
NO. 12
12-2-96
DATE:
November :1.2 ~ 1996
Inter-Com
TO:
FROM:
SUBJECT:
Honorable Mayor and Members of the City Council
Maureen Gallogly, Audit Committee Chair
PROPOSED POLICY FOR ADMINISTRATIVE TRANSFERS
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 cQsts 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.
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 purposesj 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.
~een G~g~ '~
Audit Committee Chai~/
MG:ts
Attachments
RANS: Proposa [. Nov
1995/96 Water
Indirect Administration Cost Calculation
1995-96 Year End Expense for:
City Council
City Clerk
City Atto. rney
City Manager
Finance
Personnel
Non-Department
$83 464
291 380
173, 808
280,305
396 073
278 728
134,542
$1,638,300
Total Gert 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 VVks Admin
·
Pub VVks Facility
Finance
Personnel
Total Subject to Transfer
$762,459
$68,455
$7,500
,$122,154
$27,567
$988,-135
1995/96 ADMINISTRATION COST ALLOCATION WORKSHEET
NON-DEPT EXPENSE
TOTAL EXPENSE AT YEAR END: $3,151,025
THE FOLLOWING ARE THE ONLY NON-DEPT
ACCTS TO BE USED IN ADMIN COST ALLOCATION:
6415 Duplication Expense
6435 Postage
6445 Office Equip Maint
6510 Dept Supplies
8;321 Reimbursable Costs
8330 Memberships/Subs
8360 Employee Recognition
9050 Employee Assistance
9215 City Membership~
9216 City Link
$47,861
43,655
3,726
2,498
1,200
856
4,040
8,413
20,583
1,71 0
$134,542
Indirect Service Cost Calculation
Dept.: :PubWorksAdmin
Hrs Per yr: 2,080
Less:
Holidays 80
Gen Leave 135
Net Hours 1.865
No Emps 3
Net Avail Hrs 5,595
Avail
Dept Detail: Time Hrs
Dir 30.00% 1,865
Admin Assr 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
20.00%
$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
Avail Water
Dept Detail: Time Hrs Hrs
Dir 25.00% 1,865 466.25
Asst Dir 25.00%' 1,865 466.25
Secretary 25.00% 1,865 466.25
Sr Acct 50.00% 1,865 932.50
Sr Acct Cik 20.00% 1,865 373.00
Acct Clks (2) 10.00% 1,865 373.00
3,077.25
Per Cent of water hrs to avail hrs:
23.57%
95/96 Finance Expense:
Indirect Service Cost
$518,227
23.57%
$122,154
Basis:
D[r-Est time for Budget, Customer serv, analysis,
. personnel,etc.
Assr Dir-Est time water accounting, personnel,
customer service, rate admin, etc.
Secretary-Daily deposit, suppod 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 v;
all other expenses. Payroll based on total wtr
personnel vs total ff personnel.
Inter-Com
DATE"
AUGUST 5, 1996
TO'
FROM: .,14)`')
SUBJECT:
RON NAULT, FINANCE DIRECTOR
TIM D. SERI.F.T, DIRECTOR OF PUBLIC WORKS/CiTY ENGINEER
SUPPORT SERVICES PROVIDED TO TItE WATER SERVICES DIVISION FROM
Tt{E ADMINISTRATION, ENGINEE~G, AND FIELD SERVICES DIVISION OF.
TffE PUBLIC WORKS DEPARTMENT
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 Staff'Reports
Prepare Staff Reports
Review Preliminary Designs
Sign Improvement Plans
Conduct Field Inspection on Capital Projects
Provide Supervisory/Management Training
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:
Dkection
20:30%
Administrative Assistant 10-15%
Clerical Staff 10-15%
Inspection
Field Services
Contract Maintenance
FY 94/95 = 993 Insp. - FY 95/96 = 93 Insp
Direct Billing fi-om 4070
+_ 7500/YEAR
DATE:
SEPTEMBER 5· 1996
lnter-Com
TO:
FROM:
SUBJECT:
FILE fi
RONAL~T· FINi~NCE 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 appr'oximate portion of time to provide these services:
Administration - Director, Assistant Director
- Secretary
'Supervision - Senior Accountant
General Ledger - Senior Account Clerks'
Payroll h Account Clerk
· Accounts Payable - Account Clerk
25%
25
50
20
10
10
RAN5: Secvi cesl. Sep