Recommend
Agenda Item: D.3
DISCUSSION/ACTION ITEM
Meeting Date: April 18, 2023
TO: Mayor and Councilmembers
FROM: Luke Rioux, Finance Director
SUBJECT: Finance Department Priority -Setting Workshop, FY 20 23/24 Annual Work Program
RECOMMENDATION:
Discuss work priorities and adopt an Annual Work Program for FY 20 23/24 for the Finance Department.
BACKGROUND:
This report was provided as part of the April 5, 2023 Special City Council Agenda and due to time, was postponed to the following regular Cit y Council meeting on April 18, 2023.
The Finance Department Annual Work Program provides a regular, structured method to allow the Council to review and discuss the Department’s work commitments and staffing resources, consider individual Council member’s project ideas and provide direction on Finance Department work priorities for the next fiscal year. It also summarizes work progress and accomplishments for the current fiscal year and lays the groundwork for the Department budget, which will be presented to City Council during the upcoming budget workshops.
Where available budget and staffing are finite and the list of possible Finance programs and City-wide work efforts are growing, a priority -setting process is useful to allow the City Council to estab lish policy priorities. A regular priority -setting process allows the Department to plan for and assign work within available resources in a structured way.
This method is more efficient than attempting to shift resources ad hoc to new projects as Council members identify and introduce new ideas and work priorities during the year.
DISCUSSION:
Purpose
The purpose of this workshop item is to update the Council on existing work commitments and recent accomplishments and to provide the Council an opportunity to discuss work priorities for the Finance Department for the upcoming fiscal year. The Annual Work Program (Attachment 1) creates a regular system for the Council to establish Finance’s 1 Meeting Date: April 18, 2023
work priorities. It is also an opportunity for Council to propose and consider ideas for new work projects.
Staffing and Budget Constraints
Setting of work priorities must of course occur within the constraints of budget and available staffing. Goleta is a small contract city with a limited staff and finite resources .
Given the large number of competing, possible work priorities, the City must take care not to overcommit at any given time and instead be prepared to take a measured approach at delivery of services and projects. Over a longer paced timeline, much can be accomplished, if available staffing resources are concentrated and projects are tackled in an orderly and strategic manner. Moreover, it is critical for the City to keep some capacity in reserve to address unanticipated issues or events that inevitably arise in any given year.
Staff’s Fiscal Year 2023/24 work programs reflect the day-to-day responsibilities of each department, as well as those priority projects that the department reasonably expects it can achieve i n the coming fiscal year. Each department’s work program also shows a list of long -range projects that exceed the department’s projected capacity to take on next fiscal year, but which staff will attempt to tackle either as staff capacity unexpectedly becomes available, or in future year work programs. If the City Council wants to move some of these long -range projects or new projects into the upcoming fiscal year priorities, staff will need to take other projects out of the work program. Alternatively, if the Council desires more work to be completed sooner, the City Manager may recommend that Council approve adding more staff or consulting resources. However, staff and Council must carefully consider the long -term impacts to the General Fund of simply addi ng staff. In addition, Council must consider the realistic constraints of managerial and administrative capacity to oversee and support more staff or consultants and work.
Effective in January 2024, the passage of Measure B will increase revenues to allow the City to complete many of the previously unfunded priorities that have been identified by Council. The expenditure categories for these funds will be reflected in the upcoming two-year financial plan, even where the specific expenditure has not yet been identified.
Addressing new and expanded projects and priorities will require new commitments of staff time. However, rather than staffing up sharply next year, staff will be recommending a measured implementation of new staffing and projects to ensure the most responsible balance of those new funds between staffing and program expenses over the short- and long-term horizons. Therefore, while staff are requesting very modest staffing increases in Fiscal Year 2023/34, Council can expect some as -yet-unidentified new staffing requests in Fiscal Year 2024/25 (and in some cases, before then) to address this new workload.
Scope
The Annual Work Program covers the core functions of the Finance Department: Finance Administration, Accounting Services (general accounting, audit, accounts payable and payroll), Budget Management, Treasury, Business Licenses and Permits, and Purchasing. The department primarily provides city-wide internal support to other 2 Meeting Date: April 18, 2023
departments and workloads are impacted by the demands of other departments as well as changes in legislation and regulatory processes that require new financial reporting requirements.
The Annual Work Program compares current work commitm ents and potential new projects with available staffing resources. Most of Finance’s work is administrative, internal to City operations and ongoing, with fewer one -time projects and studies than other departments. Tentative completion dates for projects and deliverables are best estimates and should therefore not be interpreted as a commitment.
FISCAL IMPACTS:
The Annual Work Program will be largely consistent with the upcoming adopted budget with respect to existing positions, work commitments, including consultant resources. It also lays the groundwork for the next budget cycle assuming a continuation of existing staff resources and no vacancies.
It should be noted, a department assessment, similar to those conducted for Public Works, the Planning and Environmental Review Department, City Manager Department, and Neighborhood Services Department in prior fiscal years, is planned for the Finance Department this upcoming fiscal year which may result in resource realignment or other recommendations which could help inform the FY 2024/25 work programs and the following mid-cycle budget.
In addition, with the new Measure B funding mostly programmed in the City’s operational departments (Public Works, Planning and Environmental Review, Neighborhood Services, General Services) there will be impacts to all administrative and support departments, including the Finance Department, to support increases in financial reporting and budget activity, payroll and staffing support, and increases in financial transaction activity such as invoices and vendor management. Staff anticipate that most impacts of these new opportunities will be reflected in the Finance Department’s FY 2024/25 work program.
Reviewed By: Legal Review By: Approved By:
___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Robert Nisbet
Assistant City Manager City Attorney City Manager
ATTACHMENTS:
1. Finance Department - Draft FY 2023/24 Annual Work Program
2. Annual Work Program PowerPoint Presentation
3 ATTACHMENT 1
Finance Department – Draft FY 2023/24 Annual Work Program 4 FISCAL YEAR 2023/24 ANNUAL WORK PROGRAM
FINANCE DEPARTMENT
April 18, 2023
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FISCAL YEAR 2023/24 ANNUAL WORK PROGRAM
FINANCE DEPARTMENT
Table of Contents
EXECUTIVE SUMMARY ................................................................................................. 3 Introduction and Purpose ............................................................................................. 3 Role of the Department ................................................................................................ 3 Finance Department Staffing and Organizational Structure ......................................... 5 Table 1: Finance Department Current Staff Levels .................................................. 5 Figure 1: Finance Department Structure – Organizational Chart ............................ 6 Workload Considerations ............................................................................................. 6 Day-to-Day Staff Responsibilities ................................................................................. 7 Table 2: Day-to-Day Responsibilities for FY 2023/24 ............................................... 7 Key Accomplishments and Project Milestones........................................................... 12 Table 3: Key Accomplishments and Project Milestones, FY 2022/23 .................... 13 Fiscal Year 2023/24 Projects ..................................................................................... 14 Table 4: Fiscal Year 2023/24 Projects ................................................................... 15 Long Range Projects Contingent on Staff Capacity ................................................... 16 Table 5: Long Range Projects Contingent on Staff Capacity ................................. 16
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EXECUTIVE SUMMARY
Introduction and Purpose
This FY 2023/24 Annual Work Program summarizes projects and work efforts proposed for the Finance Department for the upcoming fiscal year, considering both ongoing, existing commitments and potential new projects. It is intended to provide the City Council with an overview of the current work of the Finance Department and an opportunity to consider and give direction concerning future work. The Annual Work Program creates a regular mechanism for the Council to share ideas for new work efforts and discuss the work priorities. It furthermore serves as a basis for upcoming budget plan development on an annual basis.
Role of the Department
The Finance Department oversees the financial operations of the City and is responsible for the overall financial system to ensure the integrity of the City’s finances through accurate planning and recording of transactions , including providing superior financial services, maintaining the public trust, and promoting governmental e fficiency, effectiveness, and accountability . The department facilitates optimal use of resources , implements control measures , and establishes policies and procedures aimed at accurately accounting for, safeguarding, and maximizing the value of the City’s assets to meet the goals of the organization. The department is led by the Finance Director who also serves as the City Treasurer . The Finance Director leads a team of twelve full-time employees, ensuring management and the City Council are informed of al l matters affecting the financial stability of the City. The Finance Department has received financial publication awards for the City of Goleta, for its Annual Comprehensive Financial Report (ACFR) and Two -Year Budget Plan , with Special Recognition in Cap ita Budgeting .
Finance continues to ensure that its reporting meets the rigorous criteria and program standards established and administered by the Government Finance Officers Association (GFOA).
The Finance Department consists of the following core functions:
Finance Administration
Accounting Services
Budget Management
Payroll
Treasury
Business Licenses and Permits
Purchasing (Support Role)
A general overview of each core function is described below.
Finance Administration
Finance Administration provides leadership to the five other areas of Finance , including establishing financial policies and procedures, internal controls, managing consultant 7 4
contracts and relationships, and day-to-day oversight of the department and its functions.
Administration oversees the department’s objective to accurately record and report the financial transactions to reflect the City’s financial position within the state and federal laws and generally accepted accounting principles.
Accounting Services (Financial Reporting, General Ledger Management, Accounts Payable)
Accounting is responsible for the maintenance of an effective financial accounting system, which accurately reflects the financial operations of the City through transparent financial reporting and offers a framework for financial planning and analysis. Accounting includes working with our independent auditors, internal audits, accounts payable, processing all City disbursements, managing the City’s general ledger , capital assets, monitoring special revenue funds, and other general and specialty accounting and reporting duties.
Accounting provides support to all departments.
Budget Management
Budget Management is responsible for coordinating and preparing the two -year budget plan, mid-cycle budget, five -year financial forecast, long range financial plan, including producing financial analysis for City staff, management, and City Council so decision makers have a comprehensive understanding of the financial consequences of decisions.
Budget includes ongoing review of the City’s budget, monitoring the City’s overall financial position and preparing budget reports.
Payroll
Payroll administers the City’s payroll system, from oversight of timecard data entry through processing salary and benefit payments. Payroll ensures that all payroll and vendor records are maintaine d and reported in accordance with federal and state tax laws, including compliance with CalPERS reporting and fair labor standards act (FLSA) overtime provisions. In FY 22/23, the Finance Department assumed additional functions previously assigned to Human Resources and now provides direct support for timely preparation, processing and reconciliation of payroll, employee benefits and deductions.
Treasury
Treasury is responsible for billing and revenue collection services , includ ing tax administration, to both customers and other departments and tracking accounts receivable. Treasury also manages the City’s investment program and debt administration. Treasury monitors cash flow daily and cash flow projections for liquidity and is responsible for the preservation, enhancement, and accountability for cash assets and long-term debt management city-wide.
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Business Licenses and Permits
Business Licenses and Permits is responsible for processing general business and specialty business license applications. The department also administers and oversees the City’s Cannabis Business License Program and Short -Term Vacation Rental Program. Finance f unctions as the lead coordinator for cannabis business license issuance and short-term vacation rental license issuance.
Purchasing (Support Role)
In FY 22/23, Finance staff began working on transitioning the core Purchasing functions to the newly created General Services department. Purchasing is responsible for overseeing and implementing the City’s purchasing ordinance and assisting departments with their procurement needs while meeting all applicable legal requirements. Purchasing assists with review and approval of Purchase Requisitions and issuing Purchase Orders.
Purchasing is also responsible for assisting departments with surplus and disposal of City property. Finance staff will continue to be involved with Purchasing in a general support role, which includes vendor management, budget compliance , and general ledger account issues and closing out year-end encumbrances.
It should be noted, at the time of the reorganization, the Purchasing function was identified by Finance staff as one of th e City’s significant functional areas that lacked adequate focus, which is one of the reasons it was recommended to be moved and part of the new General Services Department. Staff capacity in Finance is not anticipated to be available, but the organization will benefit from increased compliance and faster turnaround of purchase orders and contract and purchasing ordinance compliance.
Finance Department Staffing and Organizational Structure The Finance Department is comprised of 12.00 full-time equivalents (FTEs) as outlined in Table 1 below.
Table 1: Finance Department Current Staff Levels
POSITION TITLE FULL-TIME (FTE) PART-TIME (FTE)
Finance Director 1.00
Accounting Manager 1.00
Accounting Supervisor 1.00
Accountant (2 vacant) 2.00
Budget Analyst 1.00
Management Assistant 1.00
Accounting Specialist 3.00
Accounting Specialist (Payroll Specialist) 1.00
Sr. Office Specialist 1.00
TOTAL FTE 12.00 0.00
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There are currently 2 vacant Accountant positions and recruitment is underway.
The Finance Department also has a n hourly Finance Intern position, which is currently vacant.
In addition to full -time staff, the Department is supported by consultants on both an ongoing basis and on an as-needed basis. The services provided by consultants include the following: Property tax and sales tax analysis and audit services; cannabis consulting services (including monitoring and compliance and tax audits); actuary services for retiree health liability valuation ; municipal financial advisory services ; audit and financial reporting services; investment services; and financial consulting services. In FY 23/24, it is anticipated that additional consulting services will be utilized for assistance with Measure B (transaction and use tax analysis and audit services), transient occupancy tax audits, and short-term vacation rental monitoring and compliance.
The organizational chart for the Finance Department is provided in Figure 1 below:
Figure 1: Finance Department Structure – Organizational Chart
Workload Considerations
The Finance Department provides support to all departments in addition to its core operating functions. Finance workload capacity is directly impacted by activity of other departments, including when departments incur new staff positions, programs, project s, or have increases to workload volume . As the projects, initiatives, activities, number of employees and number of consultants increase in other departments, it directly impacts the Finance Department’s workload along with other support departments.
Finance Director
Accounting
Manager
Budget AnalystAccountant (2)
Accounting
Supervisor
Accounting
Specialists (2)
Accounting
Specialist (AP)
Accounting
Specialist (Payroll)
Management
Assistant
Senior Office
Specialist
Legend:
Filled Positions
Vacant
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The increased workload includes staff time associated with review, internal audits, processing, reconciliation of funds, and department support as it relates to financial reporting, accounting transactions and payroll . Staff workload is also impacted as unplanned events occur , changes in process es are made, or new software is implemented that may require new financial oversight and reconciliation efforts.
In addition, staff’s workload is impacted by increases or changes with business license permit activity, cannabis activity, short-term vacation rental activity and tax transactions.
Day-to-Day Staff Responsibilities
Table 2 below summarizes the ongoing work efforts and responsibilities of the Finance Department. These tables do not include unplanned work such as emergency events or ad-hoc projects and do not include all work efforts of the department.
Table 2: Day-to-Day Responsibilities for FY 2023/24
DAY-TO-DAY RESPONSIBILITIES
FINANCE ADMINISTRATION
Provide management support and oversight of all finance functions, including supervision of department staff, staff development and performance evaluations.
Conduct weekly finance team meetings, other internal staff meetings as needed, and attend meetings with other local government agencies.
Participate in weekly E-team meetings, monthly CIP meetings, and coordinate and schedule meetings with consultants, including sales and property tax meetings, audit meetings, and actuary meetings.
Review and audit all financial transactions, including check requests, invoices, electronic transfers, wire transfer requests, budget adjustment requests, and journal entry requests.
Oversee and manage department’s budget, including development of Annual Work Program.
Manage contracts and relationships with department consultants and serve as project manager, including oversee Finance Department’s Request for Proposal process.
Oversee and coordinate annual financial audit, street audit, and gas tax audit. Review and approve all final financial reporting documents.
Assist with federal and state grant compliance audits, FEMA and CalOES.
Oversee citywide financial policies and procedures, including accounts payable, accounts receivable, budget amendments, cash handling, credit cards, donations, travel, purchasing, surplus and disposal, escheatment, and write-offs. Assess internal controls and recommend changes to processes, as necessary.
Review and sign-off for retention period or disposal of Finance Department’s files in accordance with file retention policy.
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DAY-TO-DAY RESPONSIBILITIES
Keep updated with new and ongoing changes with government finance and accounting and attend conferences and trainings to ensure compliance with new GASB statements and other reporting requirements as required by state or federal law.
Oversee and manage City’s Investment Program.
Oversee and manage City’s Debt Management Program.
Oversee Cannabis Business License Program, including application process, forms, site inspections, tax collections, and ongoing monitoring and compliance.
Oversee Short-Term Vacation Rental Program, including review of all applications and signing off on tax certificate.
Oversee City’s Master User Fees and Charges Schedule, including assisting with Development Impact Fee Schedule
Oversee City’s liabilities, including CalPERS pension and OPEB liabilities. Review all actuarial reports and manage relationship with consultants and actuaries.
Provide administrative support to the Finance and Audit Standing Committee, including preparing agendas and packets.
Provide final review on all Finance Department’s staff reports, including monthly check registers, monthly investment transaction reports, quarterly financial reports, quarterly treasure’s report, annual budget plan, comprehensive annual financial reports, and annual state controller reports.
Review all citywide staff reports for fiscal impacts and provide support on budget recommendations.
Participate and prepare presentation of information for Goleta’s Annual LEAD program as it relates to Finance.
Respond to public, other local agency, and vendor inquiries.
ACCOUNTING SERVICES (FINANCIAL REPORTING, GL MANAGEMENT) Financial software account maintenance and review.
General ledger updates, including preparing journal entries.
Year-end schedules, journal entries for audit and closing fiscal year, including Schedule of Expenditures of Federal Awards for Single Audit, revenue and expenditure accruals in accordance with GAAP, and compensated absences schedules and other liabilities.
Coordinate and communicate with City’s independent auditors. Gather data and files for auditor review and provide statements and detail overview of City processes.
Maintain and manage capital asset schedules, including calculating depreciation expense and working with other City departments to assign useful lives to new assets.
Reconcile reserve accounts and fund balances, budgetary and actual basis, including grant reconciliations.
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DAY-TO-DAY RESPONSIBILITIES
Prepare Annual Comprehensive Financial Report and submittal to GFOA for Certificate of Achievement for Excellence in Financial Reporting Program.
Prepare and review required State Controller Reports, including Financial Transactions Reports, Street Report and Government Compensation Reports.
Manage Chart of Accounts, including assigning project tracking account codes.
Reconcile developer deposit account balances and prepare reports on a quarterly basis to Finance Committee.
Manage Performance Security Schedule, and other liabilities, including prepaid and deposits.
Conduct internal audits, including cash audits, fee calculations, and contract rates and amounts. Provide findings and guidance.
Provide guidance and support to all departments on all financial related procedures and financial analysis.
Assist and review Successor Agency to the Redevelopment Agency for the City of Goleta annual ROPS schedule. Confirm RPTTF activity and fund balance that may exist.
Perform timely monthly bank reconciliations.
Monitor uncashed checks and deposit accounts with no activity and oversee escheatment process.
Monitor aging accounts receivable and recommend write-offs according to policy.
Reconcile other City software that contains financial information to City’s financial system.
ACCOUNTING SERVICES – ACCOUNTS PAYABLE
Receive and review invoices, including invoice routing to departments daily. Flag invoices if necessary and provide follow-up support.
Scan and prepare invoices in DocuSign and electronically route for signatures, including utility invoices and non-PO/PO invoices.
Review and edit check incoming DocuSign envelopes from other departments for invoice accuracy.
Export electronically signed invoices to PDFs, upload in Incode 10, data entry, and review coding.
Process Travel Claim Reimbursements, in accordance with travel policy, and update travel forms annually to conform to most recent per diem rates.
Over the City’s Cal-Card (credit card) program, including reviewing all city credit card transactions, issuing city cards, and ensuring compliance with policy.
Assist departments with invoice issues, including revised invoices, missing or lost receipts or liquidating purchase orders.
Review and audit all invoices for proper sales and use tax charges and withhold additional amounts if necessary.
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DAY-TO-DAY RESPONSIBILITIES
Conduct weekly check runs, which includes printing check registers and printing physical checks for mailing.
Citywide petty cash management.
Oversee positive pay (check disbursement) reports and upload to bank’s website every week and monitor banking activity for discrepancies and fraud.
Prepare monthly check register reports for Legistar.
Monthly schedule of late invoice payments.
Track consultant expenditures on as needed basis, such as cannabis consultant charges and related business license applications.
Generate and mail annual 1099’s (1099-NEC and 1099-MISC) to applicable vendors.
SMIP/Green Fee Reconciliation and Payment Remittance.
PAYROLL
Perform audit and data entry of timesheets on a bi-weekly basis, including reconciling payroll changes, deductions, and specialty pay and double check in financial system.
Initiate tax payments, including tax report and benefit payments, and issue quarterly and annual compensation reports.
CalPERS bi-weekly reporting, and specialized reporting as needed.
Provide COBRA administration support.
Monitor payroll tax law in conjunction with Human Resources.
Maintenance of payroll system in conjunction with Human Resources.
Provide customer service to all City employees, departments, including time entry training and special adjustments.
Monitor tracking only and project accounting codes use with Time Entry.
Employee earnings statements and annual W2’s.
Prepare payroll related journal entries.
Payroll processing, including assembling payroll binder and bank transfer payment.
Manage calculations of regular rate of pay and special payroll for retro adjustments or other extraordinary items.
Reconcile employee time tracking in MAGNET Permit Tracking System to Incode Payroll.
Setup new employees in the payroll system, verifying pay adjustments, reconciliation of approved salary schedules and personnel action forms, reconciling and verifying benefit deductions, and assist with timely payment of benefit invoices.
BUDGET MANAGEMENT
Manage the City’s budget process, including development of budget calendar, request forms, and schedules.
Publish City’s Two-Year Budget Plan under GFOA criteria and submit bi-annually for distinguished budget presentation award and publish internally the Mid-Cycle budget document.
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DAY-TO-DAY RESPONSIBILITIES
Manage and update Five-Year Forecast, including tax revenue and expenditure assumptions.
Manage and update Long Range Financial Plan.
Provide updates to City Council and departments on economic and financial conditions and policy issues affecting budget.
Provide ongoing budgetary guidance and support to all City departments.
Review all year-end carryover budgets and manage schedule of adjustments.
Manage personnel budgeting, including fiscal impact analysis of personnel changes, calculating fully burdened hourly rates, and Schedule of Authorized Positions.
Draft Quarterly Financial Reports.
Update cost of service analysis for providing library management services and assist with preparing library budgets for Buellton and Solvang.
Prepare ad-hoc budget reports and financial analysis at department requests.
Update budget policies and provide ongoing support to departments.
Manage all budget adjustment and appropriation request forms.
Annually update City Cost Allocation Plan.
Annually prepare and oversee special tax rolls for Library Special Tax and Street Lighting Tax.
Calculate annual GANN appropriations limit.
TREASURY (REVENUE, CASH, INVESTMENT AND DEBT MANAGEMENT) Prepare monthly investment reports and quarterly treasury reports to Finance Committee and City Council.
Reconcile investment transactions, including retrieving fair market values for reporting requirements monthly and perform mark to market accounting adjustments at year- end.
Perform daily cash flow reconciliations and manage cash flow balance sheet.
Review and assist departments with controls and procedures for cash receipting and checks.
Audit cash registers, petty cash and change funds and provide findings.
Monitor and track of all revenues on a cash and accrual basis.
Operate daily cashiering functions, receipting and processing.
Centralized treasury office, including daily cashiering, receipting, collecting payments and deposits from other departments.
Coordinate courier pick up services.
Accounts Receivable, including generating invoices for all departments, managing aging schedule and pursuing collection efforts.
Annually review and adopt City’s Investment Policy and Procedures and Debt Management Policy.
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DAY-TO-DAY RESPONSIBILITIES
Debt management transaction support, including Successor Agency RDA related payments and IBank payments.
Prepare journal entries to reflect transfers of cash, including investments, processing payroll or receiving funds electronically.
Close out cash collections daily, and prepare cash collections binder with backup Administer the collection and audit of Transient Occupancy Tax, Tourism Business Improvement District assessments.
BUSINESS LICENSES AND PERMITS
Administer the Business License Program, including customer support, routing, reviewing, printing, mailing, filing, and updating application forms.
Manage the Short-Term Vacation Rental Permit Program.
Manage the Cannabis Business License Program, including application process, scheduling, intake, reviewing, routing, conducting site inspections and ongoing monitoring and compliance.
Review and collect all live scans needed for specialty business licenses for compliance.
Provide final review and approval for all general business licenses and specialty licenses and collecting and remitting fees associated with tobacco licenses.
Process business license delinquency notices and initiate collection efforts for past due accounts, including notifying Code Compliance Officers.
Coordinate with County Fire, Code Compliance, and review of other outside sources, including review of newly issued state seller permits and publications for identifying unlicensed businesses.
PURCHASING (Revised for Support Role)
Provide support to General Services for Purchasing and Procurement.
Provide backup support as Purchasing Officer when needed.
Work with staff and departments with budget overrides due to timing of posting appropriations or emergency situations.
Provide assistance with surplus and disposal of assets, including forms and review for compliance. Recommend mechanism for surplus or disposal and update financial information as it affects the citywide capital assets schedule.
Vendor management: Review and setup all new vendors in financial system, including updates to vendor information and maintaining federal w9s and state forms.
Key Accomplishments and Project Milestones
Over the past fiscal year, the Finance Department can point to several complete and near- complete initiatives. Table 3 summarizes the accomplishments and estimated completion date if applicable.
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Table 3: Key Accomplishments and Project Milestones, FY 2022/23
PROJECT STATUS
In July 2022, received the Distinguished Budget Presentation Award from the GFOA, with Special Capital Recognition for City's Two-Year Budget Plan for FY 21/22 and FY 22/23.
Completed
Hired three new Finance staff, to assist with payroll, accounts receivable and accounts payable. Completed
Transitioned payroll functions previously with HR into Finance, including benefit reconciliation, benefit invoice payments and maintaining official salary schedule
Completed
Conducted 12 annual cannabis site inspections with consultants for those locations operating over a year Completed
Complete and submit FY 20/21 Single Audit by extended deadline Completed Assisted with education information for Sales Tax Measure that went to November 2022 election Completed
Moved Finance Department up to second floor Completed
Implemented updated procedures to City's Capital Asset Schedule as recommended by City auditors as it relates to Equipment and Real Property purchased by federal funds.
Completed
Issue RFP and solicit proposals for OPEB (retiree health) GASB 75 actuarial services for next three fiscal years, and award contract Completed Completed updated OPEB retiree health actuary report for FY 21/22 Completed Update Cal-Card procedures, policies, and forms. Completed Transitioned Short-Term Vacation Rental application process to permit tracking software system (MAGNET) Completed
Transitioned Successor Agency to the RDA responsibilities from Neighborhood Services to Finance Completed
In February 2023, received GFOA's Certificate of Achievement for Excellence in Financial Reporting - the City's 19th consecutive year. Completed Implemented new GASB Statement No. 87 on accounting for Leases with auditors. Requirement is effective for fiscal years beginning after June 15, 2021. City will be reporting in FY 21/22 financial statements.
Completed
Implemented online appointment scheduling for business license application assistance on website, giving customers the choice to schedule and lock in available dates and times for in-office, virtual and phone appointments.
Completed
Complete FY 21/22 Audit and Annual Comprehensive Financial Report and submit to GFOA
Projected
April 2023
Complete FY 21/22 Single Audit and submit to Federal Audit Clearinghouse.
Projected
April 2023
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PROJECT STATUS
Assist with Bingo Ordinance to simplify registration process. Projected May 2023
Issue RFP for new independent auditors for a 3-year contract, including interview and award contract.
Projected
May 2023
Phase 1 – STVR Program - Award contract for STVR ongoing monitoring and compliance, including updating ordinance for online facilitator compliance and voluntary collections agreements, review and analysis of the short-term vacation rental program and implement the resulting compliance process.
Projected
May 2023
Transient Occupancy Tax (TOT) Audit Policy and Procedures and procure contract for TOT auditing services
Projected
May 2023
User Fee and Charges Update for FY 23/24 Projected
May 2023
Implement User Fee Study’s fee recommendations, including adoption of a Cost Recovery Policy (Subsidies) and Fee
Establishment Policy.
Projected
May 2023
Cannabis ordinance and resolution updates. Ordinance to change retail operation hours, odor control during power outages and resolution to adjust tax rates and live scan process.
Projected
June 2023
Prepare final Two -Year Budget Plan for FY 23/24 & FY 24/25 and submit to GFOA
Projected
June 2023
Evaluate fiscal and staff impacts with Goleta Community Center during transition of management starting January 2023. Establish accounting policy and procedures for transactions related to facility and establish new accounts and funds
Projected
June 2023
Submit City's Investment Policy to California Municipal Treasurer's Association for certification.
Projected
June 2023
Fiscal Year 2023/24 Projects
The Finance Department will continue to support the ongoing work efforts, projects, programs, and initi atives throughout FY 2022/23 as described above in addition to any new ongoing support that is required of our department derived from all other City departments. There are several ongoing work efforts that began in prior fiscal years and will carry into FY 2023/24. These items are arranged in chronological order according to their estimated completion date in Table 4 below.
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Table 4: Fiscal Year 2023/24 Projects
PROJECT EST.
COMPLETION
Coordinate with City staff and CDTFA for implementation of Measure B add-on sales tax (transaction and use tax) with operative date of January 1, 2024, including executing new agreements with CDTFA and contract amendments for audits by sales tax consultant July 2023
Transient Occupancy Tax (TOT) Audit Policy and Procedures and procure contract for TOT auditing services
August 2023
Implement Tyler Content Manager to support Incode 10 Financial modules and employee self service
August 2023
Transfer additional years of historical financial, vendor and payroll data from Incode 8 into Incode 10, which includes data from FY 01/02 to FY 13/14.
September
2023
Conduct sixteen annual cannabis site inspections September 2023
Conduct cannabis tax audit with contracted auditors October 2023 Implement new GASB Statements No 94 (Public-Private and Public- Public Partnerships and Availability Payment Arrangements) and No 96 (Subscription-Based Information Technology Arrangements) with auditors. Requirement is effective for fiscal years beginning after June 15, 2022. City will be reporting in FY 22/23 financial statements.
October 2023
Consider issuing new RFP for banking services for a new 5-year contract or amend current contract
October 2023
Assist CMO with review of defined contribution plan options (Plan 457b) to further diversify investment options for staff and ensure fiduciary duty is met. In process of renegotiating . Was on hold and will continue into FY 23/24.
October 2023
Implement independent contractor reporting as required by EDD to assist with child support collection, and ongoing reporting November 2023
Implement new transaction and use tax revenue reporting into financial reports, including quarterly financial reports and financial statements subject to audit
November 2023
Complete FY 2022/23 Audit and Annual Comprehensive Financial Report and submit to the GFOA
December 2023
Evaluate business license review process and recommend changes to help streamline review times without compromising safeguards.
December 2023
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PROJECT EST.
COMPLETION
Implement and transition Accounts Receivable process and workflow to Incode 10 Accounts Receivable Module
January 2024
Evaluate and implement other electronic workflows within Incode 10 for Purchasing and Payroll (Dependent upon Tyler Content Manager being implemented)
March 2024
User Fee and Charges Update March 2024
Undergo and complete Finance Department Assessment May 2024 FY 2024/25 Mid-Cycle Budget Update June 2024
Develop and implement new Finance staff training plans for key positions for onboarding and cross training
June 2024
Phase 2 – STVR Program - Review and analyze STVR data and work with consultants and city staff in evaluating the overall STVR program and discuss results and findings with City Council. Receive feedback on policy direction and potential STVR ordinance updates from City Council.
June 2024
Assist with finalizing financing options for Fire Station No. 10 or other priority CIP project
TBD
(Dependent
upon funding
sources)
Long Range Projects Contingent on Staff Capacity
The following prospective projects in Table 5 below represent long range work efforts that either exceed the department expected FTE capacity for Fiscal Year 2023 /24 or are contingent upon completion of other projects . However, in the event staff capacity becomes available, then new projects will be taken up in the priority shown below.
Table 5: Long Range Projects Contingent on Staff Capacity PROJECT EST.
COMPLETION
Phase 3 – STVR Program – Depending on outcome of Phase 2 and City Council direction, work with City Manager’s Office and City Attorney’s Office in updating the STVR ordinance and program changes for Council consideration and implement after approval.
TBD
Assist with implementation of action items from the Economic Development Strategic Plan (to be further developed once known) TBD Perform fiscal analysis and develop five -year forecast model on ongoing Special Revenue Funds that are a part of the City's operating budget such as street lighting, solid waste, and library.
TBD
20 17
PROJECT EST.
COMPLETION
Transition AP vendor paper check payments to be paid electronically via ACH (direct deposit process) TBD
Evaluate and implement use of Position Budgeting module in Incode 10 TBD
Consider new budget management software and implement for next two-year budget cycle TBD
Implement use of budget and performance measure software in conjunction with City Manager’s Office TBD
Evaluate Incode 10 workflow approvals with Purchase Requisitions to help streamline processes TBD
Transition all finance forms to electronic forms with Incode 10 or other software and change to electronic workflow process TBD
Evaluate electronic invoice routing and approval process and implement use of software to eliminate duplicated work efforts. TBD Implement Finance Department Assessment recommendations TBD Centralize finance forms and policies for department use and develop guidance and training program on use of forms and policies TBD Evaluate reserve categories and consider recommending needs of other categories to limit ongoing financial risk, such as with true -up costs associated with sheriff contract, or specific capital replacement, building and facility maintenance
TBD
Evaluate and recommend debt financing options for future unfunded high priority infrastructure projects. (Will be dependent on actual project costs and available revenue sources)
TBD
Update City’s Developer Deposit Policy and Procedures and implement to ensure no negative accounts and software systems can collaborate fluidly with each other.
TBD
Explore and implement additional Incode 10 modules, including Fixed Assets (Capital Assets) Module and Inventory Module TBD Develop and implement citywide Project Accounting Policy and Procedures TBD
Evaluate and consider web-based software for GASB 87 Lease compliance TBD
Evaluate and consider web-based treasury software for cash flow and investment reporting TBD
Evaluate credit card merchant services, receipting and reconciliation procedures and recommend possible process improvements to help streamline tasks while maintaining safeguards and controls.
TBD
Establish online vendor invoice system with Incode 10, including vendor accounting guide to ensure “clean invoices” TBD
Finalize Comprehensive Accounting Policies and Procedures Manual TBD
21 18
PROJECT EST.
COMPLETION
Assist with development of Capital Asset Management Policy and Procedures TBD
Establish on-call agreements with collection agencies for past due receivable accounts TBD
Explore use of contracted services to conduct Franchise Fee audits TBD Issue RFP and contract with on -call municipal advisor services to assist with bond financing and financing team (Will depend if actual debt financing is pursued and depending on complexity will affect staff time)
TBD
Training with Incode 10 to develop custom financial reporting models needed to streamline and automate reporting TBD
Create training videos and guidance specific to using Incode 10 for onboarding new employees TBD
Develop and adopt an internal chart of accounts policy TBD Develop and maintain citywide revenue manual that documents revenue sources, data points and factors relevant to present and future levels.
TBD
22 ATTACHMENT 2
Annual Work Program PowerPoint Presentation
23 FY 2023/24
Annual Work Program
FINANCE DEPARTMENT
City Council Workshop
April 18, 2023
Presentation by:
Luke Rioux, Finance Director
24 Purpose of Workshop
Update Council on existing work commitments and progress Review staffing and ongoing work efforts
Propose and consider potential new work efforts
Discuss and set Finance Department work priorities for FY 2023/24 April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program 2 25 Workshop Agenda
Presentation
Questions from Council
Public Comment
on Draft FY 2023/24 Annual Work Program
Council Discussion, Feedback, and Direction
Adopt FY 2023/24 Annual Work Program
3April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program 26 Finance Department Overview
12.00 FTE
Areas of Responsibility – Core Functions
Finance Administration
Accounting Services (Financial Reporting, GL Management, Accounts Payable) Payroll
Budget Management
Treasury (Revenue and tax, cash collections, investment and debt) Business Licenses and Permits (Specialty licenses, Cannabis, Short-Term Vacation Rentals) Purchasing (Support role, vendor management)
4April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program 27 April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Finance Department Structure
5 Contract Support:
Property Tax and Sales Tax Analysis and Audit Services (HdL) Cannabis Consulting Services (including monitoring and compliance and canna
bis tax audits) (HdL)
Actuary Services – Retiree Health (Foster & Foster formerly Bartel) Audit and Financial Reporting (Independent Auditors – Moss, Levy, Hartzheim)
Investment Services (Various Broker/Dealers and PARS for Section 115 Trusts
for Pensions and Retiree Health)
Financial Consulting Services (Russ Branson Consulting) Municipal Financial Advisory Services (including Continuing Disclosure Services
for RDA debt – Urban Futures)
STVR Monitoring and Compliance (Pending)
Transient Occupancy Tax Audit (Pending)
Measure B (Transaction and Use Tax) Analysi s and
Audit Services (HdL)
Banking Services (Community West Bank)
Finance Director
Accounting
Manager
Budget AnalystAccountant (2)
Accounting
Supervisor
Accounting
Specialists (2)
Accounting
Specialist (AP)
Accounting
Specialist (Payroll)
Management
Assistant
Senior Office
Specialist
Legend: Filled Positions
Vacant
12.00 FTE (2 vacant)
1 Intern (vacant)
28 FY 2022/23 Department Highlights
6April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Partial list. See Annual Work Program for additional details. In July 2022, received Distinguished Budget Presentation Award from the GFOA, with Special Capital Recognition
for City's Two-Year Budget Plan for FY 21/22 and FY 22/23 Hired and onboarded three new Finance staff, to help support payroll, accounts receivables and accounts pay
able
Conducted 12 cannabis compliance site inspections for businesses operating over a year Transitioned Short-Term Vacation Rental application process to permit tracking software system (MAGNET) In February 2023, received GFOA's Certificate of Achievement for Excellence in Financial Reporting - the City's 19th consecutive
year
Issued RFP for OPEB (retiree health) GASB 75 actuarial services for next three fiscal years, and award contract 29 FY 2022/23 Department Highlights
7April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Implemented online appointment scheduling for business license application assistance on website, giving customer
s the choice to schedule and lock in available dates and times for in-office, virtual and phone appointments.
Issue RFP for new independent auditors for a 3-year contract (May 2023). Phase 1 – STVR Program - Award contract for STVR ongoing monitoring and compliance, including updating or
dinance for online facilitator compliance and voluntary collections agreements, review and analysis of the short- term vacation rental program and implement the resulting compliance process (May 2023). Cannabis ordinance and resolutions updates. Ordinance to change retail operation hours, odor control during power outages, and r
esolution to adjust tax rates and live scan process (June 2023). Prepare final Two-Year Budget Plan for FY 23/24 & FY 24/25 and submit to GFOA ( June 2023).
Partial list. See Annual Work Program for additional details. 30 FY 2023/24 Projects - Upcoming
8April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Coordinate with City staff and CDTFA for implementation of Measure B add-on sales tax (transaction and use tax)
with operative date of January 1, 2024, including executing new agreements with CDTFA and contract amendments for audits by sales tax consultant.
Implement Tyler Content Manager to support Incode 10 Financial modules and employee self service. Conduct sixteen annual cannabis site inspections and conduct cannabis tax audits with contracted auditors. Assist CMO with review of defined contribution plan options (Plan 457b) to further diversify investment options f
or staff and ensure fiduciary duty is met. In process of renegotiating. Was on hold and will continue into FY 23/24.
Implement new transaction and use tax revenue reporting into financial reports, including quarterly financial reports and financial s
tatements subject to audit.
Partial list. See Annual Work Program for additional details. 31 FY 2023/24 Projects - Upcoming
9April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Implement and transition Accounts Receivable process and electronic workflow to Incode 10 Accounts Receiv
able Module and integrate merchant card services.
Evaluate and implement other electronic workflows within Incode 10 for Purchasing and Payroll (timing dependent upon T
yler Content Manager being implemented).
Transfer historical financial data, vendor and payroll data from Incode 8 into Incode 10, which includes data from FY
01/02 to FY 13/14.
Undergo and complete Finance Department Assessment.
Phase 2 – STVR Program - Review and analyze STVR data and work with consultants and city staff in ev
aluating the overall STVR program and discuss results and findings with City Council. Receive feedback on policy direction and potential STVR ordinance updates from City Council.
Partial list. See Annual Work Program for additional details. 32 Long Range Projects Contingent on Staff
Capacity
10April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Phase 3 – STVR Program – Depending on outcome of Phase 2 and City Council direction, work with City Manager
’s Office and City Attorney’s Office in updating the STVR ordinance and program changes for Council consideration and implement after approval.
Assist with implementation of action items from the Economic Development Strategic Plan (to be further developed once known).
Evaluate and recommend debt financing options for future unfunded high priority infrastructure projects. (Will be dependent on actual pr
oject costs and available revenue sources).
Evaluate reserve categories and consider recommending needs of other categories to limit ongoing financial risk, such as with true-up costs
associated with sheriff contract, or specific capital replacement, building and facility maintenance.
Partial list. See Annual Work Program for additional details. 33 Long Range Projects Contingent on Staff
Capacity
11April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Transition AP vendor paper check payments to be paid electronically via ACH (direct deposit process) or explor
e AP automation services.
Evaluate and implement use of Position Budgeting module in Incode 10. Evaluate and implement additional Incode 10 modules, including Fixed Assets (Capital Assets) Module and Inven
tory Module (contingent upon other Incode 10 updates).
Evaluate and consider web-based software for GASB 87 Lease compliance. Evaluate and consider web-based treasury software for cash flow and automated investment reporting.
Partial list. See Annual Work Program for additional details. 34 Long Range Projects Contingent on Staff
Capacity
12April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program Establish on-call agreements with collection agencies for past due receivable accounts and Interagency Inter
cept Collection Program with the State Controller and Franchise Tax Board (FTB). Evaluate business license data sharing with Franchise Tax Board (FTB) - City/County Business Tax Program and implement if permit
ted and execute a reciprocal agreement.
Evaluate new budget management software and implement for next two-year budget cycle. Establish online vendor submittal invoice system, including producing a vendor accounting guide to ensure “
clean invoices” for faster processing and tracking.
Partial list. See Annual Work Program for additional details. 35 Measure B Impacts - Finance
Effective January 2024
Identified Council priorities affecting Finance Department:
Impacts of all programs and projects on Financing, Financial Management, Accounting and Reporting, Accounts Payable, Payroll, etc.
Should any future projects require debt financing, additional workload with annual continuing disclosures and reporting
Most impacts to Work Program in FY 2024/25
13April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program 36 Recommendation
14 Discuss work priorities and adopt the Annual Work Program for Fiscal Y
ear 2023/24 for the Finance Department
April 18, 2023, City Council Workshop - FY 2023/24 Finance Department Annual Work Program 37 15
Questions?
38