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HomeMy WebLinkAboutSummary FormDate: 8/31/12 AGENDA ITEM SUMMARY FORM FILE ID: 42-00 9-?(o Requesting Department: Finance Commission Meeting Date: 9/13/12 District Impacted: ALL Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item l Other Subject: A Resolution authorizing the City Manager to transfer funds in the amount of $180,000 from one budgetary line item (512000 Personnel) to another budgetary line item (531000 Professional Services) within the Department of Finance. Law Department Matter ID No. Purpose of Item: A Resolution authorizing the City Manager to transfer funds in the amount of $180,000 from one budgetary line item (512000 Personnel) to.another budgetary line item (531000 Professional Services) within the Department of Finance. Background Information: See attached supplement. Budget Impact Analysis NO Is this item related to revenue? NO Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: CIP Project No: NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: CIP If using or receiving capital funds Grants Purchasing Chief Final Approvals (SIGN AND DATE) Budget 2- Risk Managemen Dept. Directo City Manage Background Information: Sec. 18-502. - Procedures and implementation The city manager shall have the authority to adjust line items in an amount not to exceed ten percent of a: department's budget so long as the total annual projected expenditures of a department do not exceed the department's current budget, and said adjustment is verified by the department of management and budget. Additionally, all proposed budget adjustments between departments, including capital improvements projects shall require approval by city conunission ordinance or resolution. During the fourth quarter of the fiscal year, any changes or deviations in excess of $5,000.00 per transaction from the current approved budget for those departments under the authority of the city manager shall require city manager approval, with the advice and written concurrence of the member of the city commission designated as the presiding officer, a copy of which shall be provided to the city clerk. The Department of Finance ("Department") would like to request a transfer of funds in the amount of $195,000 from one budgetary line item (512000 Personnel) to another budgetary line item (531000 Professional Services) within the Department. The transfer would allow the Department to procure professional services that will correct underlying causes related to the delay in this year's completion and presentation of the Comprehensive Annual Financial Report ("CAFR"). Corrective steps identified to prevent this from happening again requires these services in order to implement best practices, install new processes, update existing procedures, train persomiel and provide other accounting and reporting expertise. The estimated cost of $195,000 will be specific to the following tasks: Task One: Organizational review and operational reform services Task Two: Develop a business plan for the Department of Finance Task Three: Proper review and filters for disclosure and due diligence Task Four: Year-end close, CAFR compilation, pre -audit testing; audit coordination for enterprise -wide departments and component units. Task Five: Refine cash flow forecasting for the general fiord, address cash flow techniques and general treasury management services.