budget presentation template - houston€¦ · partnering with local supply chain management ......
TRANSCRIPT
Finance Department FY2018 Proposed Budget Presentation
May 11, 2017
Finance Department Org Chart - General Fund
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Kelly Dowe Chief Business Officer/Finance Director
$19,052,219 FTEs: 110.7
Director’s Office $2,678,655 FTEs: 12.6
Strategic Procurement $5,156,283 FTEs: 41.0
Financial Reporting & Operations $5,605,921 FTEs: 26.5
Financial Planning & Analysis $2,610,975 FTEs: 17.2
Performance Improvement $450,086 FTEs: 3.7
Treasury & Capital Management $2,550,299 FTEs: 9.7
Finance Department Org Chart – Revolving Fund
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Kelly Dowe Chief Business Officer/Finance Director
$6,391,376 FTEs: 62.5
Strategic Procurement $1,042,199 FTEs: 9.9
Financial Reporting & Operations $3,097,021 FTEs: 34.7
Financial Planning & Analysis $2,010,835 FTEs: 15.9
Treasury & Capital Management $241,321 FTEs: 2.0
FY2018 Department Initiatives Initiative Mayor's Priority Plan Houston Strategy
ARC 2.0 – Improve billings and collections/reduce revenue
leakage
Sound Financial Management Increase revenues for the City
Implement Electronic Invoicing Sound Financial Management Spend money wisely
Define and implement a contract management software
program to better monitor all city spend, promoting vendor
consolidation and the ability to leverage total spend
Services and Infrastructure ,Sound
Financial Management
Sustain quality infrastructure, Spend money wisely
Define and implement a robust eBid software program that
will allow two way electronic bid submissions
Infrastructure ,Sound Financial
Management
Sustain quality infrastructure. Spend money wisely
Define and implement an improved supplier management
program including vendor classification and rating system
Sound Financial Management, Complete
Communities
Spend money wisely. Partner with others, public and
private. Grow responsibly
Partnering with OBO, provide quarterly "Doing Business
with the City of Houston" seminars
Education, Complete Communities Champion learning. Partner with others, public and
private. Support our global economy
Partnering with local Supply Chain Management
educational programs (U of H) to implement monthly /
quarterly internal procurement training program focusing
on best practices in municipal procurement
Education, Complete Communities Champion learning, Partner with others, public and
private, Support our global economy
Standardization of procurement process to reduce
procurement cycle time
Infrastructure, Sound Financial
Management
Spend money wisely
Standardization of product specifications for fleet / rolling
stock procurements
Sound Financial Management, Complete
Communities
Spend money wisely, Partner with others, public and
private, Grow responsibly quality infrastructure
Inter-City Collaboration. Partnering with Los Angeles,
Austin, Dallas, Jacksonville and San Antonio to share best
practices in procurement
Sound Financial Management, Complete
Communities
Spend money wisely, Partner with others, public and
private, Grow responsibly quality infrastructure
Finalize and begin implementing Long Range Financial
Plan (LRFP)
Sound Financial Management Sustain quality infrastructure, spend money wisely,
nurture safe and healthy neighborhoods, communicate
clearly and with transparency
Prepare for November 2017 bond election for voter
authorized bond categories to facilitate implementation of
the CIP
Infrastructure, Sound Financial
Management, Complete Communities
Sustain quality infrastructure, spend money wisely,
nurture safe and healthy neighborhoods, communicate
clearly and with transparency
Prepare for November 2017 election to repeal the revenue
cap
Sound Financial Management Sustain quality infrastructure, grow responsibly, spend
money wisely, communicate clearly and with
transparency 4
Revenue By Fund ($ in thousands)
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Variance
Fund
FY16 FY17 FY17 FY18 FY18 Prop/ %
Actual Budget Estimate Proposed FY17 Est Change
General Fund $ 1,761,076 $ 1,769,507 $ 1,801,947 $ 1,814,809 $ 12,862 0.7%
Revolving Fund $ 4,134 $ 5,818 $ 5,192 $ 6,391 $ 1,199 23.1%
Total $ 1,765,210 $ 1,775,325 $ 1,807,139 $ 1,821,200 $ 14,061 0.8%
FY2018 – Revenue Highlights
• General Property Tax increase of $7.3 million (0.63%), based on limitation of Prop 1 + H
• Sales Tax increase of $6 million (0.97%)
• Mixed Beverage Tax increase of $500,000 (3%)
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Expenditures By Funds ($ in thousands)
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Variance
Fund
FY16 FY17 FY17 FY18 FY18 Prop/ %
Actual Budget Estimate Proposed FY17 Budget Change
General Fund $ 17,657 $ 19,625 $ 19,054 $ 19,052 $ (573) (2.9%)
Revolving Fund* $ 4,134 $ 5,817 $ 5,192 $ 6,391 $ 574 9.9%
Total $ 21,791 $ 25,442 $ 24,246 $ 25,443 $ 1 0.0%
* Increase due to consolidation of Public Works and Engineering accounts payable functions
FY2018 Budget Expenditures Net Change (in thousands)
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FY2018 General Fund Budget Expenditures
Net Change to FY2017 Current Budget
FY2017 Current Budget Notes
Operating Budget $ 19,021
Restricted Budget $ 604 1
FY2017 Current Budget $ 19,625
Explanation of FY2018 Incremental Increase/(Decrease)
Operating Budget Adjustments
Budget reduction initiatives (726)
Personnel budget utilization savings (136)
Subtotal Operating Budget Adjustments $ (862)
% Change from FY17 Operating Budget (4.5%)
Contractual or Mandated Adjustments:
FY18 HOPE Allowance $ 98
Health Benefits Active Civilian 116
Municipal Pension (133)
Restricted Accounts 133
Contract Escalation 75
Subtotal Contractual/Mandated Increases $ 289
FY2018 Proposed Budget
Operating and Contractual Adjustments $ (573)
FY2018 Proposed Budget $ 19,052
% Change from FY17 Current Budget (2.9%)
Notes:
1. Restricted Budget includes service chargeback accounts for items such fuel, electricity, IT accounts, etc.
FY2018 – Expenditure Highlights
• Through departmental savings initiatives and personnel budget utilization savings, the department has identified $862,000 in reductions from the FY2017 General Fund Current Budget.
• An increase of $641,000 in the Central Service Revolving Fund for the consolidation of Public Works and Engineering accounts payable functions. These expenditure and revenue are non-General Fund related.
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Functional Org Chart
10
Financial Reporting
& Operations
$5,605,921
FTEs: 26.5
• Accounting / Disaster
Recovery
• Fixed Assets
• Cost Accounting
• Grants Management
• Internal Controls / Audit
• Trust Funds Management
• Deferred Compensation
• Accounts Receivable &
Collections
• Liens Management
Performance
Improvement
$450,086
FTEs: 3.7
• Revenue and Cost
Performance
Management
• Process
Improvements
• Citywide
Operational
Performance
Monitoring
• Citywide Strategic
Planning
Coordination
• Open Data and
Innovation
Initiatives
Treasury & Capital
Management
$2,550,299
FTEs: 9.7
• Capital Budget
Planning,
Management,
Reporting, and
Analysis
• Debt Issuance &
Derivative
Monitoring
• Economic Modeling
and Projections
• Manage City's
Liquidity Alternatives
• Tax & Revenue
Management
• Cash Management
• Banking Services
Strategic
Procurement
$5,156,283
FTEs: 41.0
• RCA Administration
• Commodities
Procurements
• Technology &
Services
Procurements
• Formal
Procurements
• Informal
Procurements
• Material & Vendor
Management
• P-Card Program
Management
Director’s
Office
$2,678,655
FTEs: 12.6
• Council
Administration
• Legislative
Analysis
• Pension System
Analysis
• Department
Budget and
MoFR
• Departmental
Admin Support
• RCA Budget
Impact Analysis
Coordination
• Technical &
Administrative
Support
Financial Planning
& Analysis
$2,610,975
FTEs: 17.2
• Annual Budget
• Five-Year Forecast
• General & Continuing
Appropriations
• MoFR / Budget
Management
• Mid-Year Review
• Revenue &
Expenditure
Projections
• Service Chargeback
Fund Management
• Ad Hoc Financial
Reporting
General Fund
$19,052,219
FTEs: 110.7
Functional Org Chart
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Financial Reporting
& Operations
$3,097,021
FTEs: 34.7
• Invoice Reconciliation
and Payments
• Dispute Resolution
• Department Service
Charge Back Processing
• Telecom Schedule
Development
• Spend Analysis Support
• Telecom Project Support
Treasury & Capital
Management
$241,321
FTEs: 2.0
• Capital Planning
Support
• Cost Benefit
Analysis
• Spend Reduction
Analysis
• Operating Budget
Impact Analysis
Strategic
Procurement
$1,042,199
FTEs: 9.9
• Procurement
Planning
• Equipment
Acquisition
• Supplies and
Services
Acquisition
Financial Planning
& Analysis
$2,010,835
FTEs: 15.9
• Annual Budget
• MoFR / Budget
Management
• Revenue /
Expenditure
Projections
• Service Chargeback
Funds Management
• Energy Management
Revolving Fund
$6,391,376
FTEs: 62.5
Questions
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Appendix
• Contents
– Department demographic breakdown (gender & ethnicity)
– Accomplishments
– Performance Measures
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Demographics
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FINANCE DEPARTMENT WORKFORCE ANALYSIS
Males Females Total
Asian/P.I. Black Hispanic White Total Asian/P.I. Black Hispanic White Total Asian/P.I. Black Hispanic White Total
Executives 2 1 0 4 7 0 2 1 2 6 2 3 1 6 12
29% 14% 0% 57% 100% 0% 33% 17% 40% 100% 15% 23% 8% 50% 100%
Professionals 9 17 8 12 46 13 37 16 3 68 22 54 24 15 115
20% 37% 17% 26% 100% 19% 54% 24% 4% 100% 19% 47% 21% 13% 100%
Administrative Support 1 2 0 1 4 4 8 3 0 15 5 10 3 1 19
25% 50% 0% 25% 100% 27% 53% 20% 0% 100% 26% 53% 16% 5% 100%
Total 12 20 8 17 57 17 47 20 5 89 29 67 28 22 146
Department FY2017 Accomplishments
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• Analyzed hundreds of legislative bills and provided financial analysis related to property tax, sales tax, and debt legislation
• Completed the Fleet Asset replacement model and used model as a base for assisting departments with completing PBJs
• Engaged Central Service Area departments for input on a citywide needs of CIP requests for preparation of the Proposed FY18-22 CIP
• Zero Grant Findings Achieved for FY2016 Audit
• Completion of SAP/Cost Allocation Plan (CAP) in-house
• Centralized Accounts Payable function for PWE and reduced Cost of Processing
• Completed all 841 Legacy Grant Closings in SAP
• Anticipate completion of Accounts Receivable (AR) Data Mart Project
• Completed the first ever Procurement Procedure Manual in partnership with SPD
• Completed first phase of transition to Performance Based Budgeting
FY 2018 Performance Measures – Customer
Customer Measures Priorities FY16 Actual
FY17 Budget
FY17 Estimates
FY18 Budget
Debt Service Expenditures as a % of GF Revenues
15% 13% 13% 15%
Variance of Monthly Sales Tax Revenue Forecast to Actual
7.0% 4.0% 1.0% 0.9%
Variance of Property Tax Revenue Forecast to Actual
1.4% 1.0% 2.2% 1.7%
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FY2018 Performance Measures – Business
Business Process Measures Priorities FY16 Actual
FY17 Budget
FY17 Estimates
FY18 Budget
Average Days from Purchase Requisition to Purchase order
Sound Financial Management
5.8 6.0 5.1 5.0
Average Days to Procurement (MOU to Council Award)
Sound Financial Management
121 105 129 105
City Contracts with Negotiated Early Payment Discounts
Sound Financial Management
3.1 3.0% 3.3% 3.0%
Audit Findings – Grant Sound Financial Management
1 0 0 0
Grant Budget Growth Sound Financial Management
N/A 25% 25% 27%
Collection Rate for EMS Sound Financial Management
43% 42% 42% 42%
Cost per Invoice Transaction Sound Financial Management
$39 $41 $39 $41
Collection Rate for Vendor Managed Revenues Sound Financial Management
47% 45% 45% 45%
Invoice Payments Processed within Payment Terms Sound Financial Management
96% 95% 95% 95%
Chargebacks Processed for Departments in 45 days Sound Financial Management
100% 100% 100% 100%
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