FINANCE DEPARTMENT BUSINESS PLAN

Transcription

1 FINANCE DEPARTMENT BUSINESS PLAN Overview The Finance Department incorporates the vision of the City of Waterloo in its day-to-day activities by providing customer service by; advising, assisting and supporting Council and the Corporate Management Team in the development of policies and strategic goals for all of the City s departments, divisions and the Corporation as a whole. Fulfilling fiduciary responsibilities on behalf of Council administration and the community. Advising, assisting and supporting all city departments in a timely and effective manner in the provision of services to both external and internal customers. Organization Chart Total FTE 34.1 Chief Financial Officer & City Treasurer Executive Assistant to CFO & City Treasurer Director of Budgets & Financial Planning (9 FTE) Director of Accounting (7.6 FTE) Director of Revenue Services (11 FTE) Director of Purchasing (4.5 FTE) Mission Statement The Finance Department is committed to excellence in providing sound financial management and consultative services. Support and enhance operational effectiveness and efficiency. Goals To fulfill fiduciary and statutory requirements Provide reliable, sound short, medium, and long term financial strategies to ensure the long term sustainable financial viability of the Corporation Effective stewardship of financial resources

2 To provide efficient reporting Safeguard the assets of the corporation Provide financial information to Council, CMT, other departments and the community Policy Guidelines for Service Delivery Statutory duties of Treasurer under the Municipal Act and other relevant legislation; Corporate financial policies to ensure long-term fiscal viability Purchasing By-law Municipal Act Accounting & Budget related Corporate Policies Public Sector Accounting Board Service Delivery Long term planning for the effective use of Financial Resources Provide timely and effective financial reports; Provide public access to decision making and financial information; Apply sound and effective internal controls 2011 Review Strategic Initiative: Sustainability and Our Living Environment Development of Tangible Capital Assets (TCA) reporting process Purchasing By-Law Approved by Council Storm Water Utility billings implemented Capital budget model review Assisted Citizen s Budget Task Force Performance Measurement Monthly Reporting A/P Invoice Date to Purchase Order Entry Date (Ensures that Buyer is getting PO prior to Invoice) Adherence to the By-Law Days to Enter an AP invoice into PeopleSoft Tax Arrears Days after Month End AP Invoice Date to PO Date AP Date to Invoice Date % of Current Levy TARGET <.35 >5.93 >6.4 <15 Days Days 3.84% 3.62 N/A 3.48%

3 Efficiencies Achieved Refined the three year budget process Reserve and Reserve fund policy review Rolled out budget software to web based version Additional expansion of using BMO procurement cards has reduced staff time spent on issuing of purchase orders Issuing of cheques through Accounts payable has been reduced through the implementation of the procurement card program Using e-commerce platforms reduces the time required to input of data for the purchasing, receipt and payment of invoices Involvement with the provincial contracts (Vendor of records) has reduced the cost of the services supplied (Courier and cellular devices) Involvement in cooperative and provincial contracts has increased purchasing efficiencies Department is handling approximately 3,000 incoming calls per month; water & sewer billing accounted for a 3 fold increase in the number of incoming calls Implementation of new procedures related to NSF cheques Initialization of new procedures and requirements for the reporting of TCA requirement Key Assumptions Capital Budget approved for various upgrades No change to current service levels Cooperation from various departments Challenges Declining Assessment Growth Multiple demands on scarce Financial Resources Goals Make the financial reporting more effective & user friendly Explore financial system options into the future Develop a long term Financial Strategy to realistically address an funding level for the City of Waterloo that matches the desired community services and service levels Implement a long term plan to provide efficient and effective procurement measures with the goal providing lowest cost supply and services at the quality level required to support City operations Continue to develop and implement an effective & efficient system of recording and collecting amounts due to the City of Waterloo Continue to stress customer services excellence including multiple sites payment stations and promote electronic alternate payment Continued support & commitment from Council and CMT Customer relations and information sharing through internet and external website Creating an environment with a focus on continuous improvement Consolidated training delivery and documents for all divisions

4 ACCOUNTING DIVISION, FINANCE DEPARTMENT BUSINESS PLAN Overview The accounting division is a dedicated team of eight individuals located on the main floor of City Hall. Through the use of the PeopleSoft Financial System and PeopleSoft Payroll Management System this division processes in excess of 50,000 payment transactions a year. In addition, this division also produces over 5,000 reports a year. Organization Chart Total FTE 7.6 Director of Accounting Accounting Technician (1FTE) Accounts Payable Clerks (2FTE) Payroll Coordinator (1FTE) Payroll Clerk (1FTE) Financial Analyst (0.6FTE) PeopleSoft Business Analyst (1.0FTE) Mission Statement It is in this divisions' mandate to design and implement appropriate financial systems including the establishment and monitoring of internal controls to provide efficient reports, all to safeguard the assets of the corporation. The ancillary role of the division is as a processor and reporter of financial information to Council, Corporate Management Team, other departments and the community. Goals To provide efficient reporting Safeguard the assets of the corporation Provide financial information to Council, CMT, other departments and the community Policy Guidelines for Service Delivery Exercise fiduciary and statutory responsibilities Ensure effective stewardship of city resources to leverage value for money

5 Optimize and leverage technology advancements Respond to needs of our clients Provide timely and effective financial reports Apply sound and effective internal controls Promote continuous improvement Improve public access Service Delivery Monthly revenue and expense variance reports Quarterly performance reports Annual Financial Statements Financial Information Return Municipal Performance Measures Program Annual Audit Statistic Canada Reporting All City Payrolls including Library Payroll deduction management Revenue Canada Reporting Centralized services for accounts payable and general ledger functions HST Reporting and management Develop corporate policies and procedures to ensure safeguarding of financial assets Internal audit responsibilities/monitor transactions for compliance Accounting and Reporting for WRMTC 2011 Review Improvement of Financial Reporting and Year End Processes Accounting and Reporting for WRMTC PeopleSoft payroll upgrade to 9.1 initiated Development of Tangible Capital Assets (TCA) reporting process for capital projects Implementation of departmental continuous improvement suggestions Performance Measurement MONTHLY REPORTING A/P Invoice Date to Purchase Order Entry Date (Ensures that Buyer is getting PO prior to Invoice) Adherence to the By-Law Days to Enter an AP invoice into PeopleSoft DAYS AFTER MONTH END AP Invoice Date to PO Date AP Date to Invoice Date TARGET <.35 >5.93 >6.4 <15 Days Days

6 Efficiencies Achieved Implementation of new procedures related to NSF cheques Initialization of new procedures and requirements for the reporting of TCA requirement Key Assumptions Capital Budget Approved for PeopleSoft Upgrades Division to maintain existing service levels Staff possess the necessary skills and tools to respond to legislative changes and business trends in order to meet demands Challenges Staff resources to support numerous legislatively required and corporate initiatives Resource support of other departments Additional unanticipated projects Goals Further enhancement of Reporting o Annual Report (2013) o Ongoing Development of Financial Reporting System (2012) o Finance Upgrade (2014) o Portal Type Delivery of Financial Information Increased Utilization of PeopleSoft Payroll Management System o Security ( ) o Manager View of Leave Banks ( ) o Staff Association Time Entry ( ) o Work Flow (2013) o Electronic Fund Transfer payments for vendors ( ) o Epay (2012) Implementation of Recommendations from Continuous Improvement o Payroll Time Cards o Account Payable Entry

7 BUDGETS & FINANCIAL PLANNING DIVISION FINANCE DEPARTMENT BUSINESS PLAN Overview The Budgets and Financial Planning Division provides a leadership role in developing budget strategies, budget processes, and long term financial policies and planning. It also administers and co-ordinates the insurance claims process. To be effective stewards of the City s financial resources, Budgets and Financial Planning provides budget and financial analysis to the Corporation and to Council. Ultimately we provide financial advice, long term planning and support to Council, the Corporate Management Team, and to the Chief Administrative Officer. Organization Chart Total FTE 9 Director of Budgets & Financial Planning Financial Analyst (5 FTE) Accounting Technician (3 FTE) Mission Statement The Budgets and Financial Planning Division is committed to effective management of City resources to leverage policies and ensure value for dollar. Goals To fulfill fiduciary and statutory requirements Provide reliable, sound short, medium, and long term financial strategies to ensure the long term, sustainable financial viability of the Corporation Effective stewardship of financial resources

8 Policy Guidelines for Service Delivery Setting effective policy guidelines for the effective stewardship of financial resources and efficient administration/management of City finances These include, but are not limited to: Debt Management Policy, Reserve and Reserve Fund Strategy, Appropriate Use of Assessment Growth Revenue Exercise fiduciary and statutory requirements to optimize and leverage technology Service Delivery Coordinating and maintaining the Budget Strategy and Budgeting Process Providing staff support to Council, CMT, and Corporate-wide Assist departments with projects requiring financial review Continuous Improvement of the budget process Monthly review of Budget Performance 2011 Review Reviewed and reported to Council on various Financial Policies Assisted Citizen s Budget Task Force Stimulus grant applications and ongoing reporting Evaluated 2008 Finance re-org Assisted with various departmental projects e.g. Back Flow model, Building Permit model, Rental Housing By-law Rolled out Budget Software Request module to Departments Reviewed existing Budget model to ensure that available Capital Funds are utilized in order to achieve maximum Corporate benefit Strategy setting for budget Efficiencies Achieved Refined the three year budget process Reserve and Reserve fund policy review Rolled out budget software to web based version Key Assumptions To be done with the assistance of consultants Receive co-operation/support from other departments Challenges Continuing the 3 Year Budget cycle Ensuring we have resources to make it happen Technology utilize technology to make budget process more efficient Ensure compliance with policies and legislation Goals Development Charge By-law update Financial Control By-law

9 Implement PSAB (Public Sector Accounting Board) requirements for budgeting Develop Long Term Financial Plan Continue to develop dynamic Financial Planning Policies to adapt to an environment of constantly shifting priorities Review Investment Strategy and review potential for institutional pricing

10 PURCHASING DIVISION, FINANCE DEPARTMENT BUSINESS PLAN Overview It is the division s mandate to design and implement the appropriate purchasing procedures and policies through the establishment and monitoring of the necessary controls to provide an efficient, open and transparent procurement system which will equate to the most competitive pricing for the City. The division will also establish appropriate joint cooperative ventures with the municipal sector to create the most competitive pricing on products and services which are jointly consumed and used. Organization Chart Total FTE 4.5 Director of Purchasing Purchasing Analyst Administrative Assistant (.5 FTE) Stockroom Coordinator Stockroom Clerk Mission Statement The Purchasing Division s mission is to provide a purchasing system with the necessary controls to allow an open, fair and transparent process that all suppliers will be given equal opportunity to bid on the business conducted at the City of Waterloo which will result in the best overall return to the City of Waterloo and its tax payers. Goal The goal of the Purchasing Division is to follow the City s Purchasing Bylaw and Provincial and Federal Government Law to acquire the best total cost for the products and services required by the City of Waterloo as well as providing a fair, open and transparent purchasing process for the supply base. Policy Guidelines for Service Delivery Respond to the needs of our clients Ensure that the requirements for products and services for the City are publicized in a open, fair and transparent platform Implement sound, effective internal controls and guidelines to allow staff to follow the procurement process Optimize and leverage effective management of City resources and technology

11 Exercise fiduciary and statutory responsibilities Service Delivery City wide standardization of products and services resulting in cost reduction for these items Liaison with municipalities to investigate cooperative procurement initiatives Liaison with provincial agencies to investigate procurement initiatives Standardization of forms for bid opportunities Centralized stockroom for all departments for standardized products required by City staff Monitor purchasing activities to assure compliance to the Purchasing Bylaw and provincial and federal legislation Develop corporate policies and procedures to ensure safeguarding of financial assets PeopleSoft purchasing training for all staff for new upgrade 9.1 Conduit for staff to Solicitors on purchasing related issues 2011 Review All bid opportunities posted on the City s website and automatically notifies the supply base electronically of this bid opportunity Surplus Auction Website joint venture has expanded to include Kitchener, Region of Waterloo, Guelph, Waterloo Catholic School Board and Kitchener Public Library City wide training and implementation of the PeopleSoft software system All purchase orders placed over $1000 are entered through the PeopleSoft Financial System Extend the use of the Procurement Card Program City wide to further eliminate Small Value Purchase Orders New Purchasing Bylaw approved Implement and train staff on the new Purchasing By-law and Purchasing Guide Incorporation of provincial contracts such as courier and telecommunication devices which resulted in savings to the City of Waterloo Performance Measures We will be able to calculate the reduction of the number of purchase orders issued from previous years which results in increased staff productivity. Calculate the number of dollars spent with the Procurement Card Program Compare the 2011 suppliers on cash discounts with future suppliers on a cash discount program Performance Measurement YTD Number of PeopleSoft Purchase Orders 10,164 9,648 5,947 Total Spend with Procurement Cards $405,908 $757, ,091 Efficiencies Achieved Additional expansion of using BMO procurement cards has reduced staff time spent on issuing of purchase orders

12 Issuing of cheques through Accounts payable has been reduced through the implementation of the procurement card program Using e-commerce platforms reduces the time required to input of data for the purchasing, receipt and payment of invoices Involvement with the provincial contracts (Vendor of records) has reduced the cost of the services supplied (Courier and cellular devices) Involvement in cooperative and provincial contracts has increased purchasing efficiencies Key Assumptions Purchasing will maintain current service levels internally and externally Present staffing levels will be increased as the City moves towards a more centralized purchasing division Decentralized purchasing will decrease with more centralized purchasing authority will continue at the City of Waterloo The most current Technology and software enhancements will be maintained and updated as required within the City of Waterloo Challenges The movement towards a more centralized purchasing environment could not be received positively by other departments Maintenance and remaining current with the PeopleSoft Financial Software System from a technical, strategic and procedural point of view Staffing levels and the increase dependency of staff wanting purchasing to own the complete purchasing process with limited resources Maintaining raw material costs as increased pressures due to world demands on base materials coincide with reduced tax increases Purchasing increased involvement with the bidding process and becoming the conduit with Solicitors Increased provincial interference with procurement functions Goals Computerization and Bar Coding of Stockroom items Implement the recommendations listed in the Purchasing Review Report Establish the Procurement Card Program City wide and eliminate the use of field cards for handling Small Value Purchase Orders Work with the Environmental Strategy Implementation Steering Committee to further enhance green procurement and a sustainable Waterloo PeopleSoft Upgrade Implementation to Version 9.1 Review, implement most cost effective municipal and Provincial contracts for items such as telecommunications and courier services Investigate the possibility of a third party agency to host our bid opportunities Establish a more centralized purchasing function at the City of Waterloo Review and implement new cash discounts for the supply base to the City of Waterloo

13 REVENUE DIVISION, FINANCE DEPARTMENT BUSINESS PLAN Overview Revenue's core function is to bill, collect and deposit property taxes, to bill and collect water and sewer charges, to receive parking ticket revenue, dog tags and other miscellaneous receipts and to manage corporate receivables for the City of Waterloo. Support is given to strategic initiatives through utilizing appropriate technologies, facilitating effective delivery and seeking best practices. Provincial mandated programs (i.e. vacancy and charity rebates, manual capping) are administrated and all statutory duties are abided as required under the Municipal Act. Organization Chart Total FTE 11 Director of Revenue BACK OFFICE SUPPORT Accounting Technicians Collection Officer Water Billing Clerk Part Time Clerk CUSTOMER SUPPPORT Accounting Technician Head Cashier Revenue Cashiers (3 FTE) Revenue Clerk Mission Statement To provide the highest standard of public service for the citizens of Waterloo in the collection, deposit and management of all revenue for the City of Waterloo in a timely and effective manner and in accordance with good accounting practices. Goals Develop and implement an effective system of recording and collecting amounts due to the City using a corporate approach across multiple subsystems. Stress Customer Service excellence including multiple sites, payment stations and promote electronic payment options. Continued implementation of Point of Sale Cash Receipting city-wide Review PCI Compliance requirements

14 Review Corporate Wide Cash Handling Procedures Develop enhanced Performance Measurements Policy Guidelines for Service Delivery Respond to the needs of the Citizens Ensure value for money Efficient management of City resources Promote innovation and best practices Optimize and leverage technology Fiduciary and statutory obligations Apply sound and effective internal controls Promote professional development and training Service Delivery Bill residential and commercial property taxes for the municipality including regional, educational and BIA Administration of legislated tax programs - vacancy & charity rebates Phasing-in the property taxes for the commercial properties (capping) Collection and deposit of the property taxes Taxpayer communication Registering applicable tax sale properties Centralized cash receipting functions including receiving and deposit parking ticket revenue, dog tags, and various miscellaneous receipts. Bill, collect and deposit corporate receivables Bill, collect and deposit water and sewer billings Issue Water Shut off notices for non payment 2011 Review Upgraded Point of Sale (POS) and Payment Service software for PCI compliance Conclude 3 year Pilot project for Special Service Levies Implemented Storm Water Utility billings Improved Customer Call Response Improved front counter accessibility for persons with disabilities Performance Measures $ 2,010 Target Arrears per Capital $ 47 $ 60 $ 60 $ 56 % of Current Levy 2.98% 3.84% 3.62% 3.48% Efficiencies Achieved Department is handling approximately 3,000 incoming calls per month; water & sewer billing accounted for a 3 fold increase in the number of incoming calls. Key Assumptions Department maintains its existing service levels Staff continues developing necessary skills and tools Current Business systems have life cycle ends

15 Business systems and technology are placed to maximize efficiency Various payments options are offered and actively marketed Growth of on-line payment transactions is promoted Community interest in special area levies continues Slowing assessment growth & reduced number of Greenfield site 4 year reassessment cycles and mandatory residential phase-in Implementation of Storm Water Management Challenges Providing staff resources to support corporate initiatives Continued 4- year reassessment cycles & mandatory phase-in for residential taxpayers Continued property tax phase-in for business classes MPAC service delivery managing reduction in service levels Managing and maintaining the tax assessment base Provincial changes to the assessment appeal system Building a skilled work force Impact of Storm Water Management Rebate Program Possible impact of new programs Brownfield Redevelopment Tax Rebates Heritage Tax Rebate Goals Continue to develop and implement an effective system of recording and collecting amounts due to the City using a corporate approach across multiple subsystems. Continue to stress Customer Service excellence including multiple sites, payment stations and promote electronic payment options. Ongoing implementation of POS at selected City sites Develop the City s Internal Controls for Cash Handling Recommend policy on the use of Special Services Levies Developing a Payment Card Industry Data Security Standard (PCIDSS) compliance Plan Reduce and rationalize the number of water billing sections