to: proposed administrative budget; fiscal year 2015 … · administrative budget fiscal year...

1111 H Street, Fresno, CA 93721, Tel 559.457.0681 Fax 559.457.0318

DATE: June 1, 2016 TO: Board of Retirement FROM: Donald C. Kendig, CPA Retirement Administrator STAFF CONTACT: Becky Van Wyk, CPA Assistant Retirement Administrator SUBJECT: REVIEW AND APPORVAL OF THE FISCAL YEAR 2016-17

PROPOSED ADMINISTRATIVE BUDGET; FISCAL YEAR 2015-16 APPROPRIATIONS TRANSFER; AND, LINEA CHANGE ORDERS 2 AND 3 – RECEIVE AND FILE; APPROPRIATE ACTION

Background Government Code section 31580.2(a), as amended, requires the Board to annually adopt a budget

covering the entire expense of administration of the retirement system. The total administrative

expenses, which are direct charges against the earnings of the fund, may not exceed the greater of

twenty-one hundredths of one percent of the accrued actuarial liability of the system, or two million

dollars ($2,000,000), as adjusted annually by the amount of the annual cost of living adjustment

(CAP).

Government Code section 31580.2(b), as amended, provides an exclusion from the CAP for

expenditures for computer software, computer hardware, and computer technology consulting

services in support of these computer products. These costs are identified as information technology

costs herein.

The Administrative Budget for 2015-16 continues with the “Base Budget” concept formalized during the 2013-14 budget. As you may recall, this concept is driven by the “same as previously authorized” level of operations. Adjustments against actual and budgeted amounts are displayed. Most of the changes are due to contracts, projects, Board initiatives, or changes in cost to payroll and operating expenditure categories that are not under our control.

FRESNO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION

BOARD OF RETIREMENT

Steven J. Jolly, Chair Dr. Rod Coburn, III, Vice Chair

Laura P. Basua Gregory Baxter

Alan Cade, Jr. Vicki Crow

Robert Dowell Eulalio Gomez

Mary Ann Rogozinski, Alternate

Donald C. Kendig, CPA Retirement Administrator

Administrative Budget Fiscal Year 2016-17

The “Base” level of projected expenditures is what is deemed consistent with the expected level of operations and effort, based on Board directives, contracts, continuing contracts, or expected inflation.

Overview

Separate Identification of Information Technology and Contingency

While the inclusion of information technology costs in the administrative costs would not exceed the

CAP, the information technology costs are separately identified as allowed by California statutes.

FCERA Budget at a Glance

The chart below highlights the FCERA total budget for Fiscal Year 2016-17, inclusive of contingency

and all information technology (I/T) costs. The basis point calculation against Association liabilities is

shown by major expenditure area as well as overall administrative costs, when compared to the

statutory provisions, total $6,216.6 (in thousands) and 12.3 bps, well below the statutory limit of 21

bps.

FRESNO COUNTY EMPLOYEE'S RETIREMENT ASSOCIATION PROPOSED BUDGET

FISCAL YEAR 2016-17

FCERA 2016-17 Proposed

FTE 33

$$$ $6,450.0

bps 12.7

Salaries and Benefits

Services and Supplies

I/T Excludable Costs

FTE 33

$$$ 2,847.6

$$$ 3,369.0

$$$ $233.4

bps 5.6

bps 6.6

(Dollars are in thousands)

The total proposed budget for Fiscal Year 2016-17 is $6,450,000 and includes 33.0 Full Time

Equivalent (FTE) positions. The amount includes administrative expenses (including cash and


depreciation) and the contingency for relocation costs associated with the high speed rail project.

The total would be $6,216,600 at 12.3 bps if the excludable I/T costs were included in the budget.

This represents an increase of $23,200 increase over the Adjusted 2015-16 Administrative Budget of

$6,193,400 and an additional 2.0 positions (1.0 net FTE) from the prior year projected expenditures,

excluding I/T costs. However, a budgeted depreciation decrease of $877,000, resulting from delays

in implementing the pension administration system is more than offset by other appropriations that

will be discussed in the following paragraphs. Lastly, the budget continues to include a contingency

towards the cost of relocating as a result of the high speed rail, and has been increased from

$100,000 to $150,000.

Fiscal Year 2015-16 Budget Results

FCERA started the 2015-16 fiscal year with an adopted/adjusted budget of $6,193,400 (excluding I/T

expenditures).

The projected Administrative expenditures, including depreciation, for the 2015-16 fiscal year are

estimated at $4,974,339 which is $1,219,061 less than the Adopted Budget approved for the year.

Salary and Benefits experienced underspending of $25,701, while Services and Supplies experienced

underspending of $272,360 after adjusting for depreciation as discussed above. Although FCERA

experienced significant salary savings due to delays in filling positions and filling positions with lower

level staff than budgeted, they salary savings were offset by negotiated salary increases for

represented staff and the reclassification of the Benefits Staff from Retirement Coordinators to

Retirement Specialists with resulting increases to salary. Similar results were experienced for

benefits as well. Additional savings were experienced through a reduction in overtime.

Savings were experienced through delays in budgeted projects such as the conversion of microfilm

and microfiche to searchable digital files. FCERA did use the contingency set aside for the relocation

as a result of the high speed rail in order to place a deposit in escrow for the property identified by

the Board as FCERA’s future business site. These projects are carried forward to the 2016-17 budget.

Salaries and Benefits

The Administrative Budget is comprised of Salaries and Benefits, and Services and Supplies. The base

budget for salaries and benefits for 2016-17 is $200,700 greater than the Adopted Budget for 2015-

16 as a result of additional salary increases negotiated for represented groups, the reclassification

and subsequent salary increases of the Retirement Specialists that will be paid for the full fiscal year,

the anticipated salary increase of the Administrator and filling vacant positions. The total Salaries

and Benefits being proposed for Fiscal Year 2016-17 is $2,847,600 with 33 FTE’s, a net increase of


$45,500 or 1.6% and 2.0 positions from the base budget of $2,802,100. The increase is attributable

to adding an Account Clerk position to assist with the backlog of service credit purchases and

contribution adjustments and an Office Assistant to process the scanning of member records, assist

with workflows and new employee orientation. The scanning of member records has been

completed by contract employees for the last year while we worked to get caught up after the

conversion to the new electronic member record system. These positions are budgeted at the first

step and are expected to be filled in January 2017 if approved by the Board.

Services and Supplies

The base budget for services and supplies for 2016-17 is $623,000 less than the Adjusted Budget for 2015-16 primarily as a result of a reduction in the depreciation in the Administrative Budget due to delays in implementing the Pension Administration System. Expenditures for telephones are expected to increase as a result of moving to a new phone systems sourced by the County which will provide individual lines for each employee and provide usage reports by phone line. Memberships are increased to reflect the additional memberships to CII for the Board; Fig Garden Rotary and the Business Journal for the Administrator; Public Pension Financial Forum (P2F2) for the accountants; and Public Relations Society of America for the Communications Officer. These additional memberships are expected to provide valuable networking and research opportunities to enhance the skills of FCERA staff. General Operating Expenses are increased in anticipation of Trustee Elections scheduled and mailings associated with the implementation of a member portal. Professional Expenses increases substantially for Linea support services that were previously approved by the Board to support the implementation through August 12, 2016 (Change Order 2 to formalize the approval is attached). Given staff turnover, Linea was requested to provide a proposed change order (Change Order 3 for Board approval) to provide continuation services until mid-January 2017 at a cost of $142,080 (subject to termination with a 30 day notice). Linea team members have been involved in system development and one is potentially needed to provide continued support for post implementation bug fixes and training module input. Change orders 2 & 3 are attached to finalize the approval for support. Training and Travel for staff increased due to additional training being brought to FCERA and necessitates and appropriations transfer of $10,000 from fixed assets to fully budget for the remainder of the 2015-16 Fiscal year. The increase in security costs is based on costs provided by the County, actual costs are based on hours used. Excluded I/T costs are decreased significantly due to the anticipated completion of the project. Although several enhancements have been identified for future implementation, costs have not been developed as of this time. Additions to Services and Supplies Base Budget Supplemental Arrivos Post Implementation Technical Support


As part of the pension administration system implementation, FCERA has encountered difficulties in documenting procedures. Part of the difficulty has been in the large staff turnover experienced during the last two years, part is the backlog of work resulting from the conversion to the new system. As a result, FCERA administration has Tegrit to provide a Supplemental Support Proposal. FCERA Administration has included $200,000 in the Proposed budget to provide this service. New Training Modules Initiative FCERA Administration is working with its IT consultants on a training module that will enable consistent and timely training of new staff, and consistent and timely work product. We have completed two test modules gratis and worked with Tegrit to develop a budget and plan for future modules. The proposed budget includes $200,000 towards the development of this training system. Instead of a train the trainers system that requires experienced staff to consistently train new staff, and to reliably remain with the agency, the training modules are designed to provide consistent, easy to follow training to all staff, new or seasoned, and protects FCERA from the inconsistency and poor training outcomes that could result from staff turnover and inexperienced trainers (the blind leading the blind). There is a cost of between $240,500 and $267,500 estimated, and $200,000 has been budgeted, for module design. Anticipated maintenance costs approximate $95,000 or one FTE in the supervisory level with benefits. This module would serve as FCERA’s “Automated Trainer”. Recommended Actions

1. Adopt the proposed budget as recommended. 2. Approve a transfer of $10,000 budgeted in the fixed asset account to the Training and Travel

– Staff account for budget year 2015-16. 3. Approve Linea Change Orders 2 and 3

Alternative Action 1. Direct staff to make changes as determined during the discussion and direct staff to submit

the revised proposed budget to the full Board for approval at the June 15, 2016 Board meeting.

Attachment(s)

1. Proposed Budget Summary 2. Salaries and Benefits Proposed Budget Details 3. Services and Supplies Proposed Budget Details 4. Tegrit Proposals for Supplemental System Support and Training Module Development 5. Linea Change Orders 2 and 3

of 4

Fiscal Year 2016-17Proposed Budget Summary

FRESNO COUNTY EMPLOYEES' RETIREMENT ASSOCIATION2016-17 ADMINISTRATIVE BUDGET

2 of 4

(1) Total Accured Acturial Liability at

6/30/15 (GC 31580.2(a)(1))

(2) $2,000,000 + COLA (GC

31580.2(a)(2))

Costs excluded from

Administrative Budget

Base for Calculation (2)

GC §31580.2 GC §31580.25,074,333,000$ 2,219,097$ 2,000,000$

COLA 2010 0.01

Basis Points 21.0000 0.00210000New Base 2011-12 budget 2,020,000$ COLA 2011 0.03New Base 2012-13 budget 2,080,600$

Legislative Cap (CAP) 10,656,099$ 2,219,097$ COLA 2013 0.02New Base 2013-14 budget 2,122,212$

Estimated Salaries and Benefits 2,847,600$ 0.00056118 2,847,600$ COLA 2014 0.015New Base 2014-15 budget 2,154,045$

Estimated Services and Supplies 3,369,000 0.00066393 3,369,000 COLA 2015 0.02New Base 2015-16 budget 2,197,126$

Computer software, hardware, and computer technology computer services 233,400 COLA 2016 0.01

New Base 2016-17 budget 2,219,097$

Total Estimated Budget 6,216,600$ 0.00122511 6,216,600$ 233,400$

Basis Points 12.2511 2.801410 12.71

Total Amount Base Budget is Under (Over) Maximum Allowable by Law 4,439,499$ 0.00087489 (3,997,503)$ 233,400$

FCERARetirement Administration

Summary of Adopted to Actual for FY 2015-16 to Base Request for FY 2016-17

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Account DescriptionAdjusted

Budget 2015-16

Actual Expendtures at

12/31/15

Projected Expenditures 1/1/16-

6/30/16 through 6/30/2015

Total Actual Projected

Expenditures(Over)/Under

Budget

Adjustment to 2015-16 Total

Actual ProjectedBase Budget

2016-17

Change from 2015-165

Actual Notes Change Items Budget 2016-17

Salaries - Regular 1,389,600 671,274 737,333 1,408,607 (19,007) 110,693 1,519,300 8% 129,700 9% Acct Clerk/Ret Acct 24,200 1,543,500

Auto Allowance 6,200 3,149 3,031 6,180 20 20 6,200 0% - 0% county determined - 6,200 Salaries - Extra Help 13,600 7,107 13,509 20,616 (7,016) (116) 20,500 -1% 6,900 51% - - 20,500 Salaries - Overtime 69,100 26,217 21,111 47,328 21,772 53,672 101,000 113% 31,900 46% - - 101,000 Unemployment Insurance 200 112 686 798 (598) 302 1,100 38% 900 450% county determined - 1,100 County Retirement 770,400 379,532 415,198 794,730 (24,330) 8,470 803,200 1% 32,800 4% based on salaries 11,000 814,200 FICA Contribution 110,800 47,399 62,220 109,619 1,181 10,181 119,800 9% 9,000 8% based on salaries 1,900 121,700 Workers' Compensation 6,200 3,123 2,517 5,640 560 (740) 4,900 -13% (1,300) -21% county determined - 4,900 Group Health Insurance 230,400 89,739 87,760 177,499 52,901 42,901 220,400 24% (10,000) -4% county determined 8,400 228,800 Management Life and Disability Insurance* 1,800 465 1,341 1,806 (6) 194 2,000 11% 200 11% county determined - 2,000 Benefits Administration Account* 3,100 1,554 1,322 2,876 224 824 3,700 29% 600 19% county determined - 3,700

Total Salaries and Benefits 2,601,400 1,229,671 1,346,028 2,575,699 25,701 226,401 2,802,100 9% 200,700 8% 2 FTE (1/2 year) 45,500 2,847,600

*inlcuded with Group Health Insurance in actual expenditures** Rounded

FY 2015-16 FY 2016-17 Proposed**

Base for 2016-17 vs Adjusted 2015-16 Budget

FCERARetirement Administration

Summary of Adopted to Actual for FY 2015-16 to Base Request for FY 2016-17

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Account DescriptionAdjusted

Budget 2015-16


12/31/15

Projected Expenditures 1/1/16-

6/30/16 through 6/30/2015



Budget



2016-17

Change from 2015-165

Actual Notes Change Items Budget 2016-17

FY 2015-16 FY 2016-17 Proposed**

Base for 2016-17 vs Adjusted 2015-16 Budget

Telephones 8,900 3,460 5,539 8,999 (99) 5,501 14,500 61% 5,600 63% additional lines, new sys 14,500 Liability Insurance 133,900 127,007 5,712 132,719 1,181 1,281 134,000 1% 100 0% 134,000 Maintenance - Bldgs and Grounds 29,100 10,051 18,330 28,381 719 219 28,600 1% (500) -2% 28,600 Memberships 8,000 13,484 1,205 14,689 (6,689) 1,011 15,700 7% 7,700 96% New: CII & Comm. 15,700 General Operating Expense 82,700 29,744 49,964 79,708 2,992 23,892 103,600 30% 20,900 25% Election 103,600 County Messenger Service 3,300 1,377 1,928 3,305 (5) (305) 3,000 -9% (300) -9% county determined 3,000 Postage 35,000 12,162 16,780 28,942 6,058 5,458 34,400 19% (600) -2% 34,400 ITSD - HR Charges 4,400 1,964 2,436 4,400 - (400) 4,000 -9% (400) -9% county determined 4,000 ITSD - PS Financials Charges 12,200 5,342 6,858 12,200 - (200) 12,000 -2% (200) -2% county determined 12,000 Professional Expenses 1,381,900 361,820 748,606 1,110,426 271,474 461,574 1,572,000 42% 190,100 14% <-- Linea Support.

Arrivos Train Mod & Post implmentation support -->

400,000 1,972,000

ITSD - Other 136,700 54,605 76,447 131,052 5,648 (52) 131,000 0% (5,700) -4% county determined 131,000 Board Per Diem 12,000 5,000 5,000 10,000 2,000 2,000 12,000 20% - 0% 12,000 Training and Travel - Staff 36,100 37,987 41,513 79,500 (43,400) (10,700) 68,800 -13% 32,700 91% Covey potentially 68,800 Training and Travel - Board 71,700 32,304 25,013 57,317 14,383 14,683 72,000 26% 300 0% 72,000 Utilities 32,500 15,086 15,572 30,658 1,842 3,342 34,000 11% 1,500 5% 34,000 Security Services 16,600 4,310 6,034 10,344 6,256 9,056 19,400 88% 2,800 17% 19,400 Fixed Assets 10,000 - - - 10,000 10,000 10,000 0% - 0% 10,000 Depreciation 1,577,000 322,280 333,720 656,000 921,000 44,000 700,000 0% (877,000) -56.000% 700,000 Total Services and Supplies Expenditures 3,592,000 1,037,983 1,360,657 2,398,640 1,193,360 570,360 2,969,000 (623,000) 400,000 3,369,000

Total Administrative Budget 6,193,400 2,267,654 2,706,685 4,974,339 1,219,061 796,761 5,771,100 16% (422,300) -7% 445,500 6,216,600 -

Excluded IT costs 725,083 357,446 477,516 756,835 (31,752) (523,435) 233,400 (491,683) 233,400

Total Administrative and Excluded Expenditures 6,918,483 2,625,100 3,184,201 5,731,174 1,187,309 273,326 6,004,500 (913,983) 445,500 6,450,000

g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx cover 5/25/2016 1:27 PM

Salaries & Employee Benefits

Projected Costs and Base BudgetFiscal Years 2015-16 and 2016-17

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g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx projected budget 5/25/2016 1:27 PM

Salaries & Employee Benefits Projected Budget

Fiscal Year 2015-16

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Fresno County Employees' Retirement AssociatinAdministrative Budget Schedules for Fiscal Year 2016-17

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Projected

Acct Account Description

Adopted Budget 2015-

16

Actual Expendtures at 12/31/15

Expenditures 1/1/16 through 6/30/16



Budget


Actual Projected

Base Budget 2016-17

Change from 2015--16 Actual Notes

Change Items

Budget 2016-17

6100 Salaries - Regular

1,389,600 671,274 737,333 1,408,607 (19,007) 110,693 1,519,300 8% 129,700 9%Acct Clerk/Ret Acct Technician 24,200 1,543,500

6100 Auto Allowance6,200 3,149 3,031 6,180 20 20 6,200 0% - 0% county determined 6,200

6200 Salaries - Extra Help13,600 7,107 13,509 20,616 (7,016) (116) 20,500 -1% 6,900 51% 20,500

6300 Salaries - Overtime69,100 26,217 21,111 47,328 21,772 53,672 101,000 113% 31,900 46% - 101,000

6350 Unemployment Insurance200 112 686 798 (598) 302 1,100 38% 900 450% county determined 1,100

6400 County Retirement770,400 379,532 415,198 794,730 (24,330) 8,470 803,200 1% 32,800 4% based on salaries 11,000 814,200

6500 FICA Contribution110,800 47,399 62,220 109,619 1,181 10,181 119,800 9% 9,000 8% based on salaries 1,900 121,700

6550 Workers' Compensation6,200 3,123 2,517 5,640 560 (740) 4,900 -13% (1,300) -21% county determined 4,900

6600 Group Health Insurance230,400 89,739 87,760 177,499 52,901 42,901 220,400 24% (10,000) -4% county determined 8,400 228,800

6650 Management Life and Disability Insurance

1,800 465 1,341 1,806 (6) 194 2,000 11% 200 11% county determined 2,000 6670 Benefits Administration Account

3,100 1,554 1,322 2,876 224 824 3,700 29% 600 19% county determined - 3,700 Total Salaries and Benefits 2,601,400 1,229,671 1,346,028 2,575,699 25,701 226,401 2,802,100 9% 200,700 8% 45,500 2,847,600

Base for 2016-17 vs Approved 2015-16

Budget

ProposedFY 2015-16 FY 2016-17Base 2016-17

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g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx projected 2015-16 5/25/2016 1:27 PM

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262 work days 2.5% $ 6,180 7/20/2015 $ 288 10.34% 6.20% 1.450%

EXH Retirement Specialist 17,112 17,244 17,244 2,520 852 20,616 0 1,278 0 299 0 1,577 22,193 Account Clerk I 24,258 1,773 1,773 1,773 0 1,570 183 110 0 26 381 2,270 4,043 Account Clerk I 24,258 1,773 1,773 1,773 0 1,570 183 110 0 26 381 2,270 4,043 Account Clerk II 32,708 32,960 32,960 1,593 34,553 751 17,646 3,573 2,148 0 512 8,430 32,309 67,613 Acct Clerk II/Ret Specialist 26,910 15,215 15,215 2,888 18,103 0 6,785 1,872 1,122 0 262 0 10,041 28,144 Account Clerk III 38,610 36,816 37,099 1,691 38,790 93 18,359 4,011 2,405 0 564 8,430 33,769 72,652 Account Clerk III 29,666 29,894 29,894 223 1,372 31,489 876 11,802 3,256 1,969 0 469 0 17,496 49,861 Account Clerk III 30,186 24,613 24,613 323 24,936 828 12,735 2,578 1,568 0 374 8,430 25,685 51,449 Account Clerk III 30,186 24,613 24,613 323 24,936 741 9,346 2,578 1,562 0 372 5,820 19,678 45,355 Account Clerk III 36,816 37,099 37,099 1,691 38,790 3,287 19,810 4,011 2,563 0 610 8,300 35,294 77,371 Account Clerk III 38,610 36,816 37,099 1,691 38,790 93 19,810 4,011 2,405 0 564 8,300 35,090 73,973 Acct Clerk III/Ret Specialist 30,186 30,418 30,418 323 1,640 32,381 131 12,136 3,348 2,016 0 471 0 17,971 50,483 Acct Clerk III/Ret Specialist 25,636 25,833 25,833 207 7,403 1,210 34,653 0 12,988 3,583 2,148 0 502 0 19,221 53,874 Accountant II 49,634 50,016 50,016 352 50,368 1,497 25,723 5,208 3,141 0 752 8,472 43,296 95,161 Administrator 150,000 151,154 151,154 6,180 157,334 288 60,054 16,268 7,254 0 2,281 5,820 91,965 249,299 Assistnt Ret. Administrator 93,184 93,901 93,901 2,348 96,249 288 49,154 9,952 5,967 0 1,396 8,342 75,099 171,348 Benefits Manager 73,502 60,781 60,781 13,611 74,392 240 31,041 6,285 4,612 0 1,079 7,372 50,629 125,021 Benefits Manager 73,500 4,806 4,806 4,806 19 2,454 497 298 0 70 381 3,719 8,525 Executive Assistant 53,690 54,103 54,103 639 54,742 288 27,957 5,660 3,394 0 794 0 38,093 92,835 Office Assistant I 22,854 1,582 1,582 1,582 0 593 164 98 0 23 0 878 2,460 Office Assistant I/II 22,854 23,030 23,030 217 386 23,633 0 0 2,444 1,465 0 343 5,820 10,072 33,705 Office Assistant III 27,274 21,505 21,505 102 976 22,583 0 8,464 2,335 1,400 0 327 5,820 18,346 40,929 Office Assistant III 27,274 27,484 27,484 500 1,374 29,358 4,181 11,003 3,036 2,079 0 486 2,910 19,514 53,053 Office Assistant III 27,274 1,783 1,783 1,783 0 911 184 111 0 26 157 1,389 3,172 Ret Coord III/Ret Spec III 47,789 48,157 48,157 2,775 1,042 -9,261 42,713 0 26,543 5,374 2,648 0 619 5,820 41,004 83,717 Ret Coord I/Ret Spec I 32,396 32,645 32,645 1,110 1,724 35,479 4,363 13,542 3,669 2,305 0 578 8,342 28,436 68,278 Ret Coord III/Ret Spec III 47,424 32,013 32,013 980 815 977 34,785 717 17,266 3,496 2,201 0 515 5,820 29,298 64,800 Ret Coord III/Ret Spec III 47,424 47,789 47,789 3,665 815 52,269 914 26,694 5,405 3,297 0 771 8,300 44,467 97,650 Ret C III/Sp III/Sp Sup. 45,994 46,348 46,348 4,195 2,174 962 53,679 14,082 24,951 5,451 3,793 0 983 8,300 43,478 111,239 Retirement Specialist I 25,636 18,438 18,438 207 18,645 0 6,988 1,928 1,156 0 270 8,342 18,684 37,329 Sr Accountant 69,758 70,295 70,295 70,295 3,503 35,900 7,269 4,471 0 1,070 5,862 54,572 128,370 Staff Analyst 42,354 15,801 15,801 15,801 0 107 5,922 1,634 980 0 229 2,171 11,043 26,844 Sup. Account Clerk II 51,194 51,588 51,588 1,372 52,960 8,774 27,047 5,476 3,581 0 895 5,820 42,819 104,553 Supervising Accountant 75,322 75,901 75,901 75,901 2,497 38,763 7,848 4,748 0 1,137 8,472 60,968 139,366 Sys and Proc Analyst III 73,398 73,963 73,963 73,963 0 288 37,773 7,648 4,586 0 1,072 8,342 59,709 133,672 Sys and Proc Analyst III 49,764 50,147 50,147 353 50,500 0 288 25,790 5,222 3,131 0 732 8,342 43,505 94,005 Dept Allocated Benefits 798 0 5,640 0 2,876 9,314 9,314

1,614,635 1,368,297 1,368,863 4,879 2,348 6,180 22,768 14,532 962 -9,261 14,588 20,616 1,414,787 47,328 1,806 798 649,090 145,640 88,120 5,640 21,499 177,499 2,876 1,092,968 2,575,699

Page 4 of 10

g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx Base budget 5/25/2016 1:27 PM

Salaries & Employee Benefits Base Budget

Fiscal Year 2016-17

Page 5 of 10


g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx Base 2016-17 5/25/2016 1:27 PM

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2.5% $ 6,180 Eff 7/4/16 $ 292 8.73% 6.20% 1.45%Office Assistant III 13,689 518 205 14,412 - 5,327 1,258 894 - 209 5,820 13,508 27,920 Office Assistant II 25,760 666 386 26,812 2,784 9,910 2,341 1,835 - 429 8,430 22,945 52,541 Office Assistant III 27,379 75 411 27,865 2,894 10,792 2,433 1,907 - 446 8,430 24,008 54,767 Account Clerk III 31,342 384 470 32,196 3,622 11,900 2,811 2,221 - 519 8,430 25,881 61,699 Account Clerk III 31,342 384 470 32,196 3,622 11,900 2,811 2,221 - 519 8,430 25,881 61,699 Retirement Specialist I 31,529 761 32,290 3,633 12,506 2,819 2,227 - 521 8,430 26,503 62,426 Account Clerk III 32,335 220 485 33,040 3,717 12,212 2,884 2,279 - 533 5,820 23,728 60,485 Account Clerk II 34,530 518 35,048 3,943 18,025 3,060 2,417 - 565 8,430 32,497 71,488 Retirement Specialist I 36,801 987 37,788 8,502 13,966 3,299 2,870 - 671 8,430 29,236 75,526 Retirement Specialist I 36,801 1,036 37,837 3,547 13,985 3,303 2,566 - 600 8,430 28,884 70,268 Retirement Specialist I 38,089 255 38,344 7,190 14,172 3,347 2,823 - 660 8,430 29,432 74,966 Retirement Specialist I 38,089 255 38,344 15,098 14,172 3,347 3,313 - 775 5,820 27,427 80,869 Account Clerk III 38,759 581 39,340 284 18,627 3,434 2,457 - 575 8,430 33,523 73,147 Account Clerk III 38,759 581 39,340 4,426 20,233 3,434 2,713 - 635 8,430 35,445 79,211 Account Clerk III 38,759 581 39,340 284 20,233 3,434 2,457 - 575 8,430 35,129 74,753 SA (Com. Officer) 42,517 1,311 43,828 - 292 38,740 3,826 2,717 - 636 8,430 54,641 98,469 Assistnt Ret. Administrator 23,192 580 25,004 48,776 73 12,226 2,075 1,474 - 707 2,108 18,663 67,439 Sys & Procedures Analyst 51,516 51,516 - 292 26,495 4,497 3,194 - 747 8,430 43,655 95,171 Sup. Account Clerk II 51,391 771 52,162 5,868 26,827 4,554 3,598 - 841 5,820 41,640 99,670 Accountant II 51,391 1,013 52,404 1,512 26,951 4,575 3,343 - 782 8,430 44,081 97,997 Retirement Specialist III 51,965 1,045 53,010 4,970 27,263 4,628 3,595 - 841 5,820 42,147 100,127 Retirement Specialist III 53,583 1,293 54,876 10,289 28,223 4,791 4,040 - 945 8,430 46,429 111,594 Executive Assistant 55,593 746 56,339 292 28,975 4,918 3,493 - 817 - 38,495 94,834 Sup. Retirement Specialist 55,436 966 56,402 10,575 26,706 4,924 4,153 - 971 8,430 45,184 112,161 Assistnt Ret. Administrator 64,658 - 64,658 219 33,254 5,645 4,009 - 938 6,323 50,388 115,046 Sr Accountant 70,026 70,026 2,020 36,014 6,113 4,467 - 1,045 5,820 53,459 125,505 Sys & Procedures Analyst 73,680 73,680 - 292 37,894 6,432 4,568 - 1,068 8,430 58,684 132,364 Benefits Manager 73,788 73,788 292 37,949 6,442 4,575 - 1,070 8,430 58,758 132,546 Supervising Accountant 75,612 75,612 2,181 38,887 6,601 4,823 - 1,128 8,430 59,869 137,662 Administrator 150,577 37,500 6,180 194,257 292 44,352 10,476 7,347 - 2,817 8,430 73,714 267,971 Dept. Allocated Benefits 1,085 - 4,914 - 3,663 9,662 9,662 EXH Ret. Specialist III 20,484 - 1,270 - 297 - 1,567 22,051 2016-17 Base budget 1,459,372 49,415 580 6,180 5,459 25,004 1,525,526 100,961 2,044 1,085 678,716 124,512 95,866 4,914 23,882 220,381 3,663 1,155,063 2,802,034 Proposed AdditionsOffice Assistant 11,512 31 173 11,716 - 1,023 726 - 170 10,464 22,180 Account Clerk I 12,219 33 183 12,435 - 1,086 771 - 180 10,848 23,283

23,731 64 - - 356 - 24,151 - - - 2,109 1,497 - 350 - 21,312 45,463 1,549,677 100,961 2,044 1,085 126,621 97,363 4,914 24,232 3,663 1,176,375 2,847,497

1,525,500 101,000 2,000 1,100 124,500 95,900 4,900 23,900 3,700 1,155,100 2,802,100 24,200 0 0 0 2,100 1,500 0 400 0 21,300 45,500

1,549,700 101,000 2,000 1,100 126,600 97,400 4,900 24,300 3,700 1,176,400 2,847,600

2016-17 Base budget (rounded)

2016-17 Proposed budget

Adjusted 2016-17 Base budget (rounded)

Proposed additions (rounded)

Page 6 of 10

g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx staffing history 5/25/2016 1:27 PM

Retirement Administration Current And Proposed

Organization Charts and Staffing History

Page 7 of 10

g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx org charg 2016 5/25/2016 1:27 PM

Executive Assistant

Information Technology Accounting Communications

Systems and Procedures Analyst I, II, III (2) Supervising Accountant Staff Analyst (1)

Retirement Specialist Supervisor Supervising Account Clerk II

Retirement Services Accounting and Benefits Support Disbility Divorce Unit Accounting Reception/New Members

Retirement Specialist I, II, III (5) Account Clerk I/II/III (7) Retirement Specialist I, II, III (2) Office

Assistant I, II, III (1)Accountants I, II, Sr. (2) Account

Clerk I/II/III (2)Office Assistant II, III (2)

31 Permanent2 Extra HelpExtra Help

Retirement Specialist (1)

BOARD OF RETIREMENT

Retirement Administrator

Benefits Manager

Benefit Services

Assistant Retirement Adminsitrator

Account Clerk (1)

Page 8 of 10

g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx org charg 2017 5/25/2016 1:27 PM

Executive Assistant

Information Technology Accounting Communications

Systems and Procedures Analyst I, II, III (2) Supervising Accountant Staff Analyst (1)

Retirement Specialist Supervisor Supervising Account Clerk II

REtirement Services Accounting and Benefits Support Disbility Divorce Unit Accounting Reception/New Members

Retirement Specialist I, II, III (5)

Account Clerk I/II/III (8) Office Assistant I, II, III (2)

Retirement Specialist I, II, III (2) Office Assistant I, II, III (1)

Accountants I, II, Sr. (2) Account Clerk I/II/III (2)

Office Assistant II, III (1)

33 Permanent2 Extra Help

Retirement Specialist (2)

BOARD OF RETIREMENT

Retirement Administrator

Assistant Retirement Adminsitrator

Benefit Services

Benefits Manager

Extra Help

Page 9 of 10


g:\retirement\chief\budget items\20160518-4A-AdminBudgetFY201617-2ATTSalBen.xlsx position history 5/25/2016 1:27 PM

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FY 2002-03 1 (new) 1 1 (new) 1 (new) 4 (1 new) 1 1 5 1 (new) 17 2002FY 2003-04 1 1 1 1 3 3 (2 new) 1 5 2 (1 new) 19 2003FY 2004-05 1 1 1 1 3 2 1 6 (1 new) 2 19 2004FY 2005-06 1 1 1 1 3 2 1 6 2 19 2005FY 2006-07 1 1 1 1 1 (reclass) 2 5 (3 new) 1 6 2 20 2006FY 2007-08 1 1 1 1 1 2 5 1 6 2 21 2007

FY 2007-08 (mod) 1 1 1 1 1 2 7 (2 new) 1 6 2 24 2008FY 2008-09 1 1 1 1 1 2 1 7 1 1 (new) 6 2 25 2009FY 2009-10 1 1 1 1 1 2 1 7 1 1 6 2 25 2009FY 2010-11 1 1 1 1 1 2 1 7 1 1 6 6 2 25 2010FY 2011-12 1 1 1 1 1 2 1 7 1 1 6 6 2 25 2011FY 2012-13 1 1 1 1 1 2 1 7 1 1 6 6 2 25 2012FY 2013-14 1 1 1 2 (1 new) 1 2 1 1 1 7 (1 new) 2 26 2013FY 2014-15 1 1 1 2 1 2 1 9 (2 new) 1 1 7 3 (1 New) 30 2014FY 2015-16 1 1 1 2 1 2 1 9 1 1 7 3 1 (new) 31 2015FY 2014-15 1 1 1 2 1 2 1 10 (1 new) 1 1 7 4 (1 New) 1 33 2016

Page 10 of 10

of 23

Services and SuppliesPortion of Budget Worksheet

Fiscal Year 2016-17

Fresno County Employees' Retirement Association2016-17 Administrative Budget

Page 2 of 23

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

Column 2 + Column 2

Column 1 - Column 4

Column 7 - Column 4

Column 7 / Column 4

Column 7 - Column 1

Column 9 /

Column 1


Account Description

Adjusted Budget 2015-

16


12/31/15

Projected Expenditures

1/1/16-6/30/16



Budget



2016-17Change from

2015-16 Actual Notes Change ItemsBudget 2016-

17Telephones 8,900 3,460 5,539 8,999 (99) 5,501 14,500 61% 5,600 63% additional lines, new sys 14,500 Liability Insurance 133,900 127,007 5,712 132,719 1,181 1,281 134,000 1% 100 0% 134,000 Maintenance - Bldgs and Grounds 29,100 10,051 18,330 28,381 719 219 28,600 1% (500) -2% 28,600 Memberships 8,000 13,484 1,205 14,689 (6,689) 1,011 15,700 7% 7,700 96% New: CII & Comm. 15,700 General Operating Expense 82,700 29,744 49,964 79,708 2,992 23,892 103,600 30% 20,900 25% Election 103,600 County Messenger Service 3,300 1,377 1,928 3,305 (5) (305) 3,000 -9% (300) -9% county determined 3,000 Postage 35,000 12,162 16,780 28,942 6,058 5,458 34,400 19% (600) -2% 34,400 ITSD - HR Charges 4,400 1,964 2,436 4,400 - (400) 4,000 -9% (400) -9% county determined 4,000

ITSD - PS Financials Charges 12,200 5,342 6,858 12,200 - (200) 12,000 -2% (200) -2% county determined 12,000 Professional Expenses 1,381,900 361,820 748,606 1,110,426 271,474 461,574 1,572,000 42% 190,100 14% <-- Linea Support.

Arrivos Train Mod & Post implmentation support -->

400,000 1,972,000

ITSD - Other 136,700 54,605 76,447 131,052 5,648 (52) 131,000 0% (5,700) -4% county determined 131,000 Board Per Diem 12,000 5,000 5,000 10,000 2,000 2,000 12,000 20% - 0% 12,000 Training and Travel - Staff 36,100 37,987 41,513 79,500 (43,400) (10,700) 68,800 -13% 32,700 91% Covey potentially 68,800 Training and Travel - Board 71,700 32,304 25,013 57,317 14,383 14,683 72,000 26% 300 0% 72,000 Utilities 32,500 15,086 15,572 30,658 1,842 3,342 34,000 11% 1,500 5% 34,000 Security Services 16,600 4,310 6,034 10,344 6,256 9,056 19,400 88% 2,800 17% 19,400 Fixed Assets 10,000 - - - 10,000 10,000 10,000 0% - 0% 10,000 Depreciation 1,577,000 322,280 333,720 656,000 921,000 44,000 700,000 7% (877,000) -56% 700,000 Total Administrative Expenditures 3,592,000 1,037,983 1,360,657 2,398,640 1,193,360 570,360 2,969,000 (623,000) -17% 400,000 3,369,000

Excluded IT costs 725,083 357,446 399,389 756,835 (31,752) (523,435) 233,400 (491,683) 233,400 Total Administrative and Excluded Expenditures 4,318,083 1,395,429 1,760,046 3,155,475 1,161,608 46,925 3,202,400 (1,114,683) -26% 400,000 3,602,400

Base for 2016-17 vs Approved 2015-16 Budget

ProposedFY 2015-16 FY 2016-17


Page 3 of 23

Excluded I/T Costs

Adopted 2015-16

Adjusted Adopted 2015-16

Actual as of 12/31/2015

Percentage Expended as of 12/31/2015

Projected 2015-16

Base Budget 2016-17

Increase/ (Decrease) Base

Budget over Projected


Budget over Adjusted

Replacement Computers, printers and monitors 8300 12,610$ 12,610$ 2,995 24% 11,567$ 4,710$ -59% -63%

Ipads 8300 12,473 12,473 - 11,386 -

PAS Replacement 8300 500,000 500,000 50,000 10% 350,000 150,000 0%

Ecopy ScanStation Upgrade 8300 - - 0% - - Consulting Services on New Pensions Administration System 8300 200,000 200,000 304,451 152% 380,908 75,000 -80% -63%

New Computer stations (2) 8300 - - - 0% 1,253 2,522 101% 0%

New laptop for IT use 8300 - - - 0% - 1,200 0% 0%

New OnBase Scanner 8300 - - 0% 1,721 -

PAS change orders 8300 - - 0% - - Total Excluded Costs 725,083$ 725,083$ 357,446$ 49% 756,835$ 233,432$ -69% -68%


Page 4 of 23

Depreciation

Adopted 2015-16



Percentage Expended as of

12/31/2015Projected 2015-16

Base Budget 2016-17





Depreciation Expense 1,577,000 1,577,000 322,280 20% 656,000 700,000 7% -56%

Total Depreciation 1,577,000$ 1,577,000$ 322,280$ 0% 656,000$ 700,000$ 7% -56%


Page 5 of 23

Services and Supplies Summary

Adopted 2015-16


Actual Expenditures

as of 12/31/15


Projected Expenditures

2015-16

(Over)/Under Adjusted Budget

(Projected to Budgeted)

FY 2016-17 Base Budget

Increase/ (Decrease) from

Prior Year (Request to Base

Budget)

FY 2015-16 Budget Variance

Year to Year (Base Budget to

Budgeted)

Increase/ (Decrease) from Prior Year (Base

Budget to Projected)

Percentage Increase/

(Decrease) from Prior Year (Base

Budget to Projected)

7040 Telephones 8,900 8,900 3,460 39% 8,999 (99) 14,500 5,600 62.920% 5,501 61.130%

7101 Liability Insurance 133,900 133,900 127,007 95% 132,719 1,181 134,000 100 0.070% 1,281 0.970%

7220 Maintenance - Bldgs and Grounds 29,100 29,100 10,051 35% 28,381 719 28,600 (500) -1.720% 219 0.770%

7250 Memberships 8,400 8,000 13,484 169% 14,689 (6,689) 15,700 7,700 96.250% 1,011 6.880%

7265 General Operating Expense 82,700 82,700 29,744 36% 79,708 2,992 103,600 20,900 25.270% 23,892 29.970%

7266 County Messenger Service 3,300 3,300 1,377 42% 3,305 (5) 3,000 (300) -9.090% (305) -9.230%

7268 Postage 35,000 35,000 12,162 35% 28,942 6,058 34,400 (600) -1.710% 5,458 18.860%

7286 ITSD - HR Charges 4,400 4,400 1,964 45% 4,400 - 4,000 (400) -9.090% (400) -9.090%

7287 ITSD - PS Financials Charges 12,200 12,200 5,342 44% 12,200 - 12,000 (200) -1.640% (200) -1.640%

7295 Professional Expenses 1,381,900 1,381,900 361,820 26% 1,110,426 271,474 1,572,000 190,100 13.760% 461,574 41.570%

7296 ITSD - Other 136,700 136,700 54,605 40% 131,052 5,648 131,000 (5,700) -4.170% (52) -0.040%

7411 Board Per Diem 12,000 12,000 5,000 42% 10,000 2,000 12,000 - 0.000% 2,000 20.000%

7415 Training and Travel - Staff 36,700 36,100 37,987 105% 79,500 (43,400) 68,800 32,700 90.580% (10,700) -13.460%

7417 Training and Travel - Board 71,700 71,700 32,304 45% 57,317 14,383 72,000 300 0.420% 14,683 25.620%

7430 Utilities 32,500 32,500 15,086 46% 30,658 1,842 34,000 1,500 4.620% 3,342 10.900%

7611 Security Services 16,600 16,600 4,310 26% 10,344 6,256 19,400 2,800 16.870% 9,056 87.550%

8300 Fixed Assets 10,000 10,000 - 0% 0 10,000 10,000 - 0.000% 10,000 0.000%Total Services and Supplies 2,016,000 2,015,000 715,703 1,742,640 272,360 2,269,000 254,000 526,360

Depreciation (non cash transaction) 1,577,000 1,577,000 322,280 656,000 921,000 700,000 (877,000) -55.610% 44,000 6.710%Excluded IT costs 725,083 725,083 357,446 49% 756,835 (31,752) 233,400 (491,683) -67.810% (523,435) -69.160%

4,318,083 4,317,083 1,395,429 32% 3,155,475 1,161,608 3,202,400 -1,114,683 -25.820% 46,925 1.490%Total Services and Supplies, Depreciation, and

Excluded IT Costs


Page 6 of 23

Account 7040 - Telephones

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





Land Line 3,410$ 3,410$ 957$ 28% 3,674$ 9,000 (2) 145% 164%

Wireless 4,950 4,950 2,269 46% 4,857 5,000 (1) 3% 1%

DSL 540 540 234 43% 468 500 7% -7%Budgeted Total - Telephones 8,900$ 8,900$ 3,460$ 39% 8,999$ 14,500$ 61% 63%

(1) 10% increase budgeted(2) Phone system estimated replacement 5/1/16.Budgeted Total - Telephones 14,500$


Page 7 of 23

Account 7101 - Liability Insurance

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





Fiduciary Liability Insurance 120,810$ 120,810$ 119,668$ 99% 119,668$ 120,000$ (1) 0% -1%

Liability Insurance - Property 6,200 6,200 5,905 95% 5,905 6,000$ (1) 2% -3%

Property Insurance - building 3,890 3,890 - 0% 3,556 4,000$ (1) 12% 3%

Cyber Insurance - - - 0% 723 1,000$ (1) 38% 0%

General Liability (County Charge) 3000 3,000 1,434 48% 2,867 3,000$ (2) 5% 0%Budget Total - Liability Insurance 133,900$ 133,900$ 127,007$ 95% 132,719$ 134,000$ 1% 0%

(1) Proposed at 102% of projected

(2) Provided by County of Fresno

Budget Total - Liability Insurance 134,000$


Page 8 of 23

Account 7220 - Maintenance - Buildings and Grounds

Includes 7345Adopted 2015-16




12/31/2015Projected 2015-16

Base Budget 2016-17





Janitorial (contract price $1324 X 12) 15,888$ 15,888$ 7,944$ 50% 15,888$ 16,000$ 1% 1%

Yard Service 3,550 3,550 - 0% 3,550 4,000$ 13% 13%

Other 9,080 9,080 1,864 21% 8,360 8,000$ -4% -12%

Pest Control ($48.51 X 12) (month to month agreement) 582 582 243 42% 583 600$ 3% 3%Budget Total - Maintenance - Buldings and Grounds 29,100$ 29,100$ 10,051$ 35% 28,381$ 28,600$ 1% -2%

2015-16 2015-16 2015-16Detail - Other Costs Budget year to date ProjectedPlumbing 500$ 653$ 1,306$ A/C filters and fans 5,300 409 982 A/C repair 1,000 - equipment 1,000 1,000 Door and Alarm Repairs 1,000 153 367 Repair blinds - 75 400 Gates 200 148 355 unidentified 3,000 Parking lot and interior lights 374 898 Fire Extinguisher Maintenance 80 52 52

9,080$ 1,864$ 8,360$


Page 9 of 23

Account 7250 - Membership

Adopted 2015-16




12/31/2015Projected 2015-

16Base Budget

2016-17





State Association of County Retirement Systems 4,000$ 4,000$ 4,000$ 100% 4,000$ 4,000$ 0.00% 0%

CalAPRS 2,000 2,000 2,000 100% 2,000$ 2,000 0.00% 0%

GFOA (3) 630 630 0% 630$ 1,000 58.73% 59%

International Federation of Employee Benefit Plans 870 870 1,105 127% 1,105$ 1,000 -9.50% 15%

Public Pension Financial Forum (P2F2) - - 150 0% 150$ 200 1 33.33% #DIV/0!

Rotary (Don) - - 330 0% 330$ 300 3 -9.09% #DIV/0!

Council of Institutional Investors - - 5,330 0% 5,330$ 5,500 3.19% #DIV/0!

Business Journal (Don) - Book of Lists (local vend) - - 69 0% 69$ 100 3 44.93% #DIV/0!

Public Relations Society of America - - - 0% 175$ 200 2 14.29% #DIV/0!

NCPERS 500 500 500 100% 500$ 1,000 100.00% 100%

NAVUG Small Business Membership 400 - - 0% 400 400 1 0.00% #DIV/0!Budgeted Total - Memberships 8,400$ 8,000$ 13,484$ 169% 14,689$ 15,700$ 688% 96%

1 Requested by Accounting for 2015/162 Requested by Communications Office for 2015/163 Requested by Administration for 2015/16

13,484$ 14,689$

Budgeted Total - Memberships 15,700$


Page 10 of 23

Account 7265 - General Operating Expense

Adopted 2015-16




12/31/2015 Projected 2015-16Base Budget

2015-16

Base Budget 2016-17





Office Supplies (paper, toner) 19,220$ 19,220$ 6,129$ 32% 12,258$ 13,484$ 10% -30%

Copier maintenance and copies 4,496 4,496 2,475 55% 5,940 6,534 10% 45%

Printing - Annual Report, Comprehensive Annual Financial Report, Deferred and District Benefit Statements, Newsletters, Election Notice1 27,400 27,400 5,468 20% 22,687 37,105 64% 35%

Printing - Other 7,014 7,014 4,984 71% 10,281 10,653 4% 52%

Storage - offsite 7,500 7,500 1,453 19% 3,866 7,500 94% 0%

Miscellaneous Items 14,970 14,970 8,285 55% 22,776 26,255 (1) 15% 75%

Subscriptions 2,100 2,100 950 45% 1,900 2,100 (2) 11% 0%

- - 0% - - 0% 0%Total General Operating Expense 82,700$ 82,700$ 29,744$ 36% 79,708$ 103,631$ (3) 30% 25%


Page 11 of 23

(2) subscriptions:Actual as of 12/31/2015 Projected 2015-16

Base Budget 2016-17

Public Retirement Journal 950 950 950 Fresno Bee 64 167 Management Briefing 139 140 Communications Briefings 129 130 HR SPECIALIST 249 250

- -

Total Subscriptions 950$ 1,531$ 1,637$ (1) miscActual as of

12/31/15Projected 2015-16

Base Budget 2016-17

(3) printing wire transfer fee 70 140 150Election Notices 715 715 11,100 water service 442 1,326 1,400Newsletter 4,753 19,012 20,913 Training supplies 828 2,484 5,000CAFR/PAFR 2,960 3,092 software 1,547 2,053 8,000Benefit Statements 0 2,000 Printer replacements 948 2,844 800

other 54 5,162 800offsite educational summit 2,114 2,114 1,800

Total Printing 5,468 22,687 37,105 CAFR and PAFR application 805 805 805Board lunches 361 1,500 1,500

Other Printing Advertisements 100 300 1,000Health Benefit Letter/Supp COLA letter 0 1,000 furniture 1,016 4,048 5,000Retired Member handbook (reprints) 1,314 2,628 2,000 0Active member handbook (reprints) 2,811 5,622 5,622 0Pay Stub 32 76 76 0business cards 260 615 615 0envelopes 479 1,132 1,132 0mail control documents 88 208 208 0

Total Other Printing 4,984 10,281 10,653 0Total Printing and Other Printing 10,452 32,968 47,758 Total Miscellaneous 8,285 22,776 26,255


Page 12 of 23

Account 7266 - Interoffice Messenger Service

Adopted 2015-16




12/31/2015Projected 2015-

16Base Budget

2016-17





Cost provided by County 3,300$ 3,300$ 1,377$ 42% 3,305 3,000$ * -9% -9%

Total Interoffice Messenger Service 3,300$ 3,300$ 1,377$ 42% 3,305$ 3,000$ -9% -9%

Total Expenditures 1,377$ 3,305$

Budgeted Total - Office Expense 3,000$


Page 13 of 23

Account 7268 - Postage

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





-$ -$ -$ 0% -$ -$ 0% 0%

Normal Postage 9,325 9,325 5,102 55% 12,245$ 12,000 -2% 29%

Mailing election notices 1,200 1,200 0% -$ 2,400 0% 100%

Overnight delivery - - 360 0% 617$ 1,000 62% 0%

Annual report, District and Deferred Benefit Statements, newsletters, COLA letter 24,475 24,475 6,700 27% 16,080$ 19,000 1 18% -22%

Public Requests for Information - - - 0% -$ - 0% 0%Total Postage 35,000$ 35,000$ 12,162$ 35% 28,942$ 34,400$ 19% -2%

1 Addiional $3000 included to accommodate potential separate mailing of annual report and COLA letter

Budgeted Total - Postage 34,400$


Page 14 of 23

Account 7286 - ITSD HR Charges

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





Charges provided by County of Fresno 4,400$ 4,400$ 1,964$ 45% 4,400$ 4,000$ -9% -9%

Total ITSD HR Charges 4,400$ 4,400$ 1,964$ 45% 4,400$ 4,000$ -9% -9%

Based on the number of employees per ITSD

Budgeted total - ITSD HR Charges 4,000$


Page 15 of 23

Account 7287 - ITSD Financials Charges

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





Charges provided by County of Fresno 12,200$ 12,200$ 5,342$ 44% 12,200$ 12,000$ -2% -2%

Total ITSD Financials Charges 12,200$ 12,200$ 5,342$ 44% 12,200$ 12,000$ -2% -2%

Based on number of transactions recorded on PeopleSoft Financials per ITSD

Budgeted total - ITSD Financials Charges 12,000$


Page 16 of 23

Account 7295 - Professional Expenses

Adopted 2015-16




12/31/2015Projected 2015-16

Base Budget 2016-17





Decrease/(Increase)

Actuarial Audit - - - 0% - 100,000 100% 100% (100,000) Actuarial Services 100,000 100,000 40,299 40% 100,000 100,000 0% 0% - Arrivos Hosting (paid three years in advance 2015) - - - 0% - - -100% 100% - Baker Manock (Board Legal Counsel) 200,000 200,000 - 0% 75,000 150,000 100% -25% (75,000) Board Member Elections 22,250 22,250 - 0% - 11,100 100% -50% (11,100) County Counsel 120,000 120,000 1,696 1% 20,352 60,000 195% -50% (39,648) Disability Applications (copy service, doctors) 60,000 60,000 55,662 93% 111,324 100,000 -10% 67% 11,324 Disability Hearings (Doctors, Travel, Court Reporter, Hearing Officer) 115,000 115,000 57,965 50% 115,930 115,000 -1% 0% 930 Disability Settlement Attorney Fees - - 30,344 0% 60,688 - -100% 100% 60,688 e-copy Annual Maintenance 500 500 500 100% 500 500 0% 0% - Executive Search - - - 0% - 37,800 100% 100% (37,800) Financial Audit 60,500 60,500 - 0% 67,800 69,000 2% 14% (1,200) Fresno County Purchasing 500 500 197 39% 473 500 6% 0% (27) Linea Back File Conversion and process documentation 85,000 85,000 50,948 60% 90,000 227,080 152% 167% (137,080) On-Base licensing Agreement (1/16-12/16) 24,388 24,388 - 0% 26,420 28,000 6% 15% (1,580) Other - - 922 0% 1,500 3,000 100% 100% (1,500) Other/digitize microfiche 100,000 100,000 - 0% - 100,000 100% 0% (100,000) Pension Disbursing (Northern Trust) 1 170,000 170,000 35,521 21% 157,084 180,000 15% 6% (22,916) Personnel Services (recruitments, agenda item review, reclass/reorg) 20,804 20,804 16,094 77% 32,188 50,000 55% 140% (17,812) Property Taxes - - 1,732 0% 1,732 1,750 1% 100% (18) Reed Smith - fiduciary counsel 100,000 100,000 47,893 48% 86,207 50,000 -42% -50% 36,207 Relocation 100,000 100,000 - 0% 120,000 150,000 25% 50% (30,000) SCS - G/L Licensing Agreement 1,928 1,928 1,928 100% 1,928 2,000 4% 4% (72) Small World Death Audit Services (Life Status 360 LLC) 1,030 1,030 930 90% 1,300 1,300 0% 26% - Tegrit Post Implementation Support - - - 0% - - -100% 100% - Tegrit Arrivos Training Module - - - 0% - - -100% 100% -

Steptoe Johnson - IRS Tax Determination Letter and Voluntary Compliance Program Application 100,000 100,000 19,189 19% 40,000 35,000 -13% -65% 5,000

Total Professional Expenses 1,381,900$ 1,381,900$ 361,820$ 26% 1,110,426$ 1,572,030$ 42% 14% (461,604)

* continued initiative2 Paid three years in advance with a budget adjustment of $286,000. Not due again until 1/1/2018.

Total Expenditures 361,820$ 1,110,426$ Budgeted Total - Professional and Legal 1,572,000$ (461,604)$

1 Cost to process payroll and issue accounts payable checks is not charged directly to FCERA but is absorbed by the interest apportionment.


Page 17 of 23

Account 7296 - ITSD Charges

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





ITSD Charges 136,700$ 136,700$ 54,605$ 40% 131,052$ 131,000$ 0% -4%

Total ITSD Charges 136,700$ 136,700$ 54,605$ 40% 131,052$ 131,000$ 0% -4%

Includes shredding service

Budgeted total - ITSD Charges 131,000$


Page 18 of 23

Account 7411 - Commissions/Advisory Boards

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





$100 per meeting/$500 per month maximum 12,000$ 12,000$ 5,000$ 42% 10,000$ 12,000$ 20% 0%

(5 members x $200 per month x 12 months)

Total Commissions/Advisory Boards 12,000$ 12,000$ 5,000$ 42% 10,000$ 12,000$ 20% -100%

Budgeted Total - Commissions/Advisory Boards 12,000$


Page 19 of 23

Account 7415 - Training and Travel - Staff

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





CalAPRS Conference Registration 2,600 2,000 0% 2,000 6,200 210% 210%

CalAPRS Conference Travel 1,200 1,200 0% 1,000 4,800 380% 300%

CalAPRS Roundtables and class registration 3,900 3,900 1,750 45% 3,500 8,050 130% 106%

CalAPRS Roundtables and class Travel 11,700 11,700 1,553 13% 7,000 15,285 118% 31%

SACRS Conference Registration 960 960 600 63% 2,800 1,300 -54% 35%

SACRS Conference Travel 8,420 8,420 5,484 65% 6,000 11,430 91% 36%

Other Training Registration - GFOA, OnBase, Educational Summit 200 200 19,819 9910% 39,638 300 -99% 50%

Other Training Travel - GFOA, OnBAse, Educational Summit 7,720 7,720 8,781 114% 17,562 21,465 22% 178%

Total Training and Travel - Staff 36,700$ 36,100$ 37,987$ 105% 79,500$ 68,830$ -13% 91%

Due diligence travel is included in Account 7564 - Investment Expense which is not part of the Administrative Budget.

Budgeted Total - Training and Travel 68,800$


Page 20 of 23

Account 7417 - Training and Travel - Board

Due diligence travel is included in Account 7564 - Investment Expense which is not part of the Administrative Budget.

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





CALAPRS - Wharton various registration 16,470$ 16,470$ 4,695 4,695$ 16,000$ 241% -3%SACRS Travel 15,120 15,120 5,687 9,200 15,000$ 63% -1%SACRS Registration 1,680 1,680 600 1,200 1,680 40% 0%

SACRS - Principles of Pension Investments Registration 5,800 5,800 0 - 5,800 0% 0%

SACRS - Principles of Pension Investment Travel 6,280 6,280 0 - 6,250 0% 0%CALAPRS - Principles of Board Leadership Registration - 0 - CALAPRS - Principles of Board Leadership Travel - 0 - CALAPRS - Principles for Trustees Registration - 0 - CALAPRS - Wharton (various) travel 0 4,622 4,622 5,000 8% 0%CALAPRS - Principles for Trustees Travel 0 - CALAPRS Travel - Roundtables, General Assembly 5,050 5,050 576 2,000 5,000 150% -1%CALAPRS Registration - Roundtables, General Assembly 1200 1,200 600 1,200 100% 0%Pension and Investment 0 - Fiduciary College 2010 - Registration 0 - Fiduciary College 2010 - Travel 0 - Pension Bridge 2,500 2,500 - 2,500 0% 0% Journal, Wurts Client Summit, PIMCO, Nossamon, Vital Smarts Registration 8,800 8,800 5,967 15,000 5,600 -63% -36%Other Travel - Educational Summit, IMN, Public Retirement Journal, Wurts Client Summit, PIMCO, Nossamon Travel 8,800 8,800 10,157 20,000 8,000 -60% -9%

Total Training and Travel - Board 71,700$ 71,700$ 32,304$ 45% 57,317$ 72,030$ 26% 0%

Budgeted Total - Training and Travel - Board 72,000$


Page 21 of 23

Account 7611 Security

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





Hirsch System 1,800$ 1,800$ 873$ 49% 2,095$ 1,390$ -34% -23%

Security Services 14,800 14,800 3,437 23% 8,249 18,047$ 119% 22%

Total Security 16,600$ 16,600$ 4,310$ 26% 10,344$ 19,437$ 88% 17%

Provided by County

Total Budgeted - Security 19,400$


Page 22 of 23

Account 7430 - Utilities

Adopted 2015-16




Projected 2015-16

Base Budget 2016-17





PG&E 27,820$ 27,820$ 13,588$ 49% 27,176$ 30,000$ 10% 8%

Water 3,430 3,430 1,214 35% 2,914 3,000 3% -13%

Garbage 1,250 1,250 284 23% 568 1,000 76% -20%Total Utilities 32,500$ 32,500$ 15,086$ 46% 30,658$ 34,000$ 11% 5%

(1) Proposed at 110% of projected

Total Budgeted - Utilities 34,000$


Page 23 of 23

Account 8300 - Fixed Assets

Adopted 2015-16




12/31/2015Projected 2015-16

Base Budget 2016-17

Increase/ (Decrease)

Proposed over Projected

Increase/ (Decrease)

Proposed over Adjusted

`Furnishings 10,000 10,000 - 0% - 10,000 0% 0%

- 0% - - 0% 0%Total Fixed Assets 10,000$ 10,000$ -$ 0% -$ 10,000$ #DIV/0! 0%

Budgeted Total - Fixed Assets 10,000$

May 25, 2016

FCERA ADDITIONAL SUPPORT BUDGET PROPOSAL To the Board of Trustees and Administration: Thank you for this opportunity to propose a budgetary adjustment to the support needs of the FCERA team. We are providing this information for budgetary purposes ONLY and are not requesting additional payment. FCERA has prepaid support to Tegrit through December 31, 2017. This support consists of 40 hours per month and includes:

Application hosting

Bug fixes and corrective maintenance

Telephone and email support during FCERA business hours

After hours support as needed

Service and maintenance releases

Programming for system enhancements FCERA will be billed hourly for any hours that exceed the 40 hours per month. We do anticipate FCERA’s support needs will increase in the near future due to the transition of key staff members that were involved in the Arrivos implementation. The transition of key staff members may also result in some changes to existing functionality. These change requests are not covered by the support contract and would need to be paid for separately. In addition to support and change requests, FCERA may wish to add new functionality to Arrivos so that staff can provided enhanced member services. We cannot anticipate how much additional support (day-to-day, change requests, and enhancements) FCERA may require, but it would cost FCERA $210,000 for an additional 960 hours of support and enhancements per year, which breaks down to an additional 80 hours a month. For the 16 month period of September 2016 – December 2017, the total cost would be $280,000 for an additional 1,280 hours of support. If FCERA would like to adjust the number of additional support and enhancement hours, the cost is $35,000 for an addition or reduction of 10 hours per month over the 16 month period of September 2016 – December 2017. For example:

Additional Monthly Hours

Additional Hours (09/2016 – 12/2016)

Additional Hours (01/2017 – 12/2017)

Cost for 2016

Cost for 2017

Total Cost (Sept 2016 – Dec 2017)

80 320 960 $70,000 $210,000 $280,000

90 (+10) 360 1080 $80,000 $235,000 $315,000

70 (-10) 280 840 $60,000 $185,000 $245,000

As you are aware, Tegrit’s most important value is the partnership with FCERA. Tegrit would like to be able to provide enhanced employee and member services long after the current project ends. Of course, our service commitment does not diminish at production rollout or when the warranty period ends. Our singular goal is guaranteeing that your members not only receive the retirement benefits they earned, but also the excellent service they deserve. Sincerely, Tim Fouts, Director Rosalyn Zielke, PMP

May 25, 2016

FCERA Training Application Budgetary Proposal To the Board of Trustees and Administration: Thank you for this opportunity to propose a solution to the training needs for the FCERA team. We are providing this information for budgetary purposes ONLY and are not requesting additional payment. Tegrit is currently developing two training pilots for FCERA. The subjects are “Reciprocity” and “What Tier Am I?”. Demonstrations of the draft training modules have been positively received by the FCERA staff. The FCERA team has expressed a business need for additional process training to be used by the internal FCERA staff only, at this time. The annual cost to administer the application and maintain / update existing courses is $95,000. Based on 25 users, this equates to $3,800 per user (learners & administrators). This cost covers the following:

Hosting fees (estimated with no development)

40 hours monthly to update content of current courses (estimated based on hours and no development). These hours can be variable.

Licensing fee based on 25 FCERA users annually The cost to develop new courses is detailed below and includes the following:

Creation of new course material for 10 courses estimated at the complexity detailed below

One-time setup fee for the training application The pricing below is based on course development of a total of 10 new courses. Please see the table below to understand the complexity allocation of the 10 courses. The total annual training costs will vary based on the quantity of courses developed each year within a specific level of complexity.

Course Complexity

Course Complexity Description Estimated # of Courses Developed

Cost Range per Individual Course

Total Cost Range (incl Setup Fee)

Simple Still images without narration

Limited difficulty in creating course

Limited coordination efforts

3 $9,000 - $11,000 $27,000 - $33,000

Medium Animations with narration

Average levels of difficulty in creating the course

3 $13,000 - $16,000 $39,000 - $48,000

Complex Animations and video with narration

Difficult to develop course material

3 $17,000 - $20,000 $51,000 - $60,000

Very Complex

Games, 3D and real videos with narration

Very difficult to create course material

1 $26,000 - $29,000 $26,000 - $29,000

Total Cost Range -Courses (3 Simple, 3 Medium, 3 Complex, 1 Very Complex) and Fixed Annual Cost

$240,500 - $267,500

May 25, 2016

Based on annual maintenance & hosting and the creation 10 new courses, we estimate that the training costs will be in the range of $240,500 - $267,500. Tegrit looks forward to working with FCERA on this new training initiative and helping FCERA meet the training needs of the internal staff. Sincerely, Tim Fouts, Director Rosalyn Zielke, PMP

Organization FCERA

Project Extension of the Arrivos Implementation

Subject Change Order 2

Written by Bryce Haws

Date 3/1/2016

Doc # FCERA-PAS-CO 2

Vers. 1.0 Page 1 of 1

FCERA-Linea Solutions, Inc. Change Order 2

Fresno County Employees’ Retirement Association (FCERA) has determined a need to

extend the length of the project to implement the Arrivos solution through August 12th

,

2016. FCERA is requesting Linea Solution assist with this extension by providing

various support services thru the final implementation of Arrivos. This continuing

support will be planned and managed as part of the overall project plan agreed upon by

FCERA and Linea.

These additional support activities will be performed at the end of the current contracted

budget allocation thru the end of the project, which is currently scheduled for August

12th 2016. The budget allocated for these additional services is $150,960.00 including a

travel charge of 11% of the billing rate. Linea will provide the necessary consultants and

skills required to meet the needs of FCERA at a rate of $200 an hour for a project

manager and $160 an hour for an implementation lead. These services will be delivered

using Susan George as the project manager and Melody Hodges as the implementation

lead.

LINEA SOLUTIONS, INC. FRESNO COUNTY EMPLOYEES’

RETIREMENT ASSOCIATION

Name: Akio Tagawa Name:

Title: President Title:

Date: March 1, 2016 Date: June 1, 2016

Signature:

Signature:

Organization FCERA

Project Arrivos Post Implementation Support

Subject Change Order 3

Written by Bryce Haws

Date 5/4/2016

Doc # FCERA-PAS-CO 3

Vers. 1.0 Page 1 of 1

FCERA-Linea Solutions, Inc. Change Order 3, Arrivos Post Implementation

Support

Fresno County Employees’ Retirement Association (FCERA) is planning to complete the

implementation of all phases of the Arrivos software solution on August 12th

, 2016.

When corporate-wide software implementation such as this are finished, organizations

frequently use a consultant to assist in the stabilization of the organization’s business

processes and the software since the entire business is now adjusting to using the new

solution and the old way things were done is now gone. FCERA is requesting Linea

Solutions assist during this stabilization period. Linea will provide full time support with

a consultant who is an expert with the Arrivos software and pension business processes

generally.

This service will be used on a monthly basis and ended when FCERA determines the

service is no longer required. For budgeting purposes Linea has estimated 5 months of

post-production support starting in mid-August 2016 and ending mid-January 2017.

These additional support activities will be performed at the end of the current contracted

budget. The budget allocation for these additional services is $142,080.00 including a

travel charge of 11% of the billing rate. Linea will provide Melody Hodges, an Arrivos

and pension processes expert to meet the needs of FCERA at a rate of $160. FCERA has

the right to end the services at any time the organization feels the necessary stabilization

has been achieved. Linea requests 30 days’ notice prior to termination of services.

LINEA SOLUTIONS, INC. FRESNO COUNTY EMPLOYEES’

RETIREMENT ASSOCIATION

Name: Akio Tagawa Name:

Title: President Title:

Date: May 4, 2016 Date: June 1, 2016

Signature:

Signature:

to: proposed administrative budget; fiscal year 2015 … · administrative budget fiscal year...

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