2000 Annual Report
DEPARTMENT OF FINANCE AND ADMINISTRATION
300 West Ash Street- P. O. Box 736
Salina, Kansas 67402-0736
Rodney Franz, Director
Telephone (785) 826-7240 -FAX (785) 826-7244
2000 ANNUAL REPORT
Department of Finance and Administration
February 7, 2001
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Summary:
Completed projects 2000:
$ Implementation of Investment Policy and Procedures
$ Design and Implementation of a City Purchasing Card program.
$ Developed a Telephone System RFP and award of contract for the City of
Salina and Saline County.
$ Developed and implemented a standardized application and review process
for Special Alcohol Funds,
$ Development of a Court Restitution tracking database.
$ Participated in implementation of Building Trades Registration
$ Development of a Licensing Database
$ Participated with other City representatives from the State iri addressing
. Salestax system issues.
$ Enhanced collection on delinquent accounts in Water Customer Accounting
$ Implemented procedUie for billing, collecting, and distributing Payments in
Lieu of Taxes in cooperation with Saline County.
$ Developed system for standardized budgetary schedule presentation in the
CAFR
$ Conducted Accounts Payable workshop for departmental clerical staff
$ Acquired enhanced meter reading equipment.
$ Performed Bank Draft Campaign.
$ Implement Fixed Asset System configuration changes.
$ Implemented internet bank access with Sunflower Bank.
$ Began review of strategy for implementation of GASB 34.
$ Projects in Progress/Goals/Objectives 2001
$ Installation of Telephone System
$ Cash Receipting for Building services
$ Municipal Code On-Line
$ Kansas Statutes on-line
$ Document Imaging Pilot Project
$ Acceptance of Credit Cards Citywide.
$ Special Alcohol Program Standardized Reporting
$ Fixed Asset ProjectlRFP, including infrastructure, inventories; risk
management information.
$ Expand Budgetary Schedules system to accommodate non-budget funds,
GAAP adjustments/schedules, and GASB 34 adjustments/schedules.
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Project Narratives:
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Completed projects 2000: '
Implementation of Investment Policy and Procedures
The bulk of staff work on this project was completed priorto January 1,2000, however,
the City Commission in 2000 adOpted the policy and procedures, and the program was
made operational in 2000. Policies provide for authorized institutions, requires
obtaining formal bids on investments, and provides for collateralization and safety.
Design and Implementation of a City Purchasing Card program.
The purchasing card program pmvides cards for employee work groups to replace the
older system of open accounts. . Training sessions provided to all card custodians and
clerical staff on the requirements of the program, and on data entry instructions to
maximize entry efficiency. Use ofthe purchasing cards enhances control over and
responsibility for purchasing by providing positive identification of the purchaser and
limiting the number of open accounts. By year end, a significant amount of purchasing
was occurring on the card system
Developed a Telephone System RFP and award of contract for the City of Salina
and Saline County.
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Developed RFP, solicited and evaluated proposals and awarded contract to Birch
Telecom. Installation of the system is anticipated in the first quarter of 2001. '
Developed and implemented ail standardized application and review process for
Special Alcohol Funds.
In prior years, applications were prepared using very generalized guidelines, which
resulted in inconsistent and incomplete information in applications. Developed a
standardized set of information and attachments required. Follow-up project for 2001 is
to develop a standardized annual reporting format for the program. '
Development of a Court Restitwtion tracking database.
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The Municipal Prosecutor's office processes restitution payments from defendants to
victims. The Finance Department assisted in developing a simple database to record
and track paym~nts.
Participated in implementation ,'of Building Trades Registration
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Department staff have participated in and spent significant amounts of time in
implementing the registration of ,building tradesmen.
Development of a Licensing Database,
Department staff developed and implemented a database designed,to track the status
of licensing for all City licensed occupations. This includes the status of the license ans
well as ancillary requirements sych as bonding or insurance requirements.
Participated with other City representatives from the State in addressing Sales
tax system issues.
The Kansas Department of Revenue changed their systems for collecting and
distributing Sales taxes, beginning in November 1999. Throughout 2000, and into
2001, City staff was instrumental in reviewing DOR reports and tax distribution
information and in assisting them in identifying discrepancies and problems with the
new system. PartiCipation in the rE:'}view group resulted in early identification of $50,000
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to $100,000 in City of Salina taxes that had either not been distributed, or had been
allocated to other governments.
.' Enhanced collection on delinquent accounts in W<;lter Customer Accounting
Updated software features and ~Iert staff have resulted in increasing direct collections
on delinquent accounts from an average of $500 per month in1 999 to about $900 per
month in 2000. Ability to do this is a result of the software capability to search by Social
Security number when customers request service.
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Implemented procedure for billing, collecting, and distributing Payments in Lieu of
Taxes in cooperation with Saline County. ' .
Payment in lieu of tax agreements executed with Industrial Revenue Bond issuers had
specified a method for calculating the amount of taxes dlje, but had established no
administrative mechanism or responsibility for the billing' and collection of the amounts
due. Developed system of certification, billing, and collection in cooperation with the
Saline County Appraiser, Clerk, and Treasurer; Resulted in one time collection of
$40,000 in delinquent PilOT, as well as assuring timely collection of future amounts..
Developed system for standardized budgetary schedule presentation in the
CAFR
In prior years, budgetary schedules in the Comprehensive Annual Financial report were
calculated manually, according to classifications determined by the auditors. These
. were sometimes inconsistent an'd inaccurate from year to year; The revised system
relies on Showcase queries, Excel spreadsheets, and a standardized classification'
schema to make these presentations more comparable from year to year; Results in
some Audit efficiencies.
Conducted Accounts Payableworkshop for departmental clerical staff
Staff conducted accounts payable entry workshops for all clerical staff to train them on
system updates and enhancem~nts.
Acquired enhanced meter reading equipment.
The Water Customer Accounting Division acquired updated meter reading equipment
providing the capability of reading both the obsolete ARB-5 interface, the touchpad
interface, and a radio read capability. This will allow us to begin installing the newer
and more reliable touch pad met~r interfaces, with potential savings in installation costs
relating to cabling,
Performed Bank Draft Campaign
In November, the Water Custonier Accounting Division mailed Bank Draft solicitations
to all customers on thesystem,iAs a result, we have added 419 new customers to
bank draft status, bringing the total to 2,447 accounts, or 12.85% of our customers.
Payment by draft offers substantial convenience and financial benefits to our
customers, Bank drafts may requce cash flow, and reduce late payment and reconnect
fees. However, the City of Salina saves about $0.13 per draft in processing cost, and
also benefits from reduced traffic through the facility.
Implement Fixed Asset System configuration changes.
Over a period of years, through software changes and enhancements, many
information fields on the systemjhave become out of date. In conjunction with
Information Services, these fields have now been updated, and the standard system
fixed asset reports are now accurately reflect about 90% of what was entered to the
system.
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Implemented internet bank acq;ess with Sunflower Bank.
This is a new product offered by Sunflower bank. Currently using system for balance
inquiry and ACH transfers for payroll. We are planning to extend this to ACH transfers
for Water Customer Accounting' in the next severalrnonths. Wire transfers using this
service are still problematic.
Began review of strategy for il'Dplementationof GASB 34.
Staff has reviewed requirements of GASB 34 and established a list of issues that need
to be addressed. Fixed asset recount and update is budgeted for 20001 i including
infrastructure.
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Projects in Progress/Goal~/Objectives 2001
Installation of Telephone System
Installation of the system is scheduled for the first quarter of 2001.
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Cash Receipting for Building services
Installed receipting software and printer, established procedures for Building Services to
accept check payments for perr]1it fees. Customer Service enhancement.
Municipal Code On-Line
Project in progress. In cooperation with City Manage(s office.
Kansas Statutes on-line'"
Project in progress. In cooperation with City Manager's office.
Document Imaging Pilot Projec::t
Equipment purchased and installed. Installing some test data to review capabilities of
system and for training purposes.
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Acceptance of Credit Cards Citywide.
Initiated project in early 2000. Data gathered, preliminary draft report underway.
Pending staffing.
Special Alcohol Program Standardized Reporting
Implement standardized reporting to match application content.
Fixed Asset Project/RFP, including infrastructure, inventories, risk management'
information.
Project budgeted for2001. Partially related to GASB 34 requirements, but also related
to our need to rationalize our fixed asset and property management system. Project
includes acquisition of software appropriate to differing needs of Asset management.
Expand Budgetary Schedules ~ystem to accommodate non-budget funds, GAAP
adjustments/schedules, and GASB 34 adjustments/schedules.
Partially related toGASB 34, but also related to control of presentation format and
furthur audit efficiencies.
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