HomeMy WebLinkAboutMINUTES - 04111995 - IO.2 f
TO: BOARD OF SUPERVISORS 1 .0.-2
Contra
INTERNAL OPERATIONS COMMITTEE /'�
FROM: i< ( OVC
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� .. :... County
April 3, 1995 *`
DATE: rr�i`oir+ti
REPORT ON MEETING WITH THE AUDITOR-CONTROLLER REGARDING THE
SUBJECT: PERFORMANCE, ACCOMPLISHMENTS, ISSUES AND FUTURE DIRECTIONS OF HIS
DEPARTMENT
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ACCEPT this report from the Internal Operations Committee on its
meeting with the Auditor-Controller.
BACKGROUND:
On June 28, 1994, the Board of Supervisors, at the request of
Supervisor DeSaulnier, referred to the Internal Operations
Committee a request to develop a procedure which would allow the
Internal Operations Committee to meet with each Department Head
during the year and report on the Department' s activities . A
number of Department Heads were heard in 1994 . On December 13,
1994, the Board of Supervisors referred this item to the 1995
Internal Operations Committee for the purpose of hearing from the
remaining Department Heads .
On April 3, 1995, we had the opportunity to meet with the Auditor-
Controller, Ken Corcoran. Mr. Corcoran presented the attached
report- to us and . reviewed it with our Committee. Mr. Corcoran
introduced his Assistant, Judith Van Note and his Administrative
Services Assistant, Elizabeth Verigan. Mr. Corcoran and Mr.
Batchelor particularly noted the high level of accuracy which the
Auditor-Controller has been able to achieve in the area of accounts
payable. An outside consultant reviewed the County' s accounts
payable records and found only 19 errors in a review of 560,394
records . This is about 1/6 of the expected number of errors .
Mr. Corcoran noted the essential importance of replacing the three
main frame systems which his Department operates : the Finance
System, the Property Tax System and the Payroll System.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE 9�OTHER
SIGNATURE(S):
ACTION OF BOARD ON April 1 1., 1995 APPROVED AS RECOMMENDED � OTHER
VOTE OF SUPERVISORS
/ I HEREBY CERTIFY THAT THIS IS A TRUE
!L UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED
Contact: PHIL BAT HELOR,CLERK OF THE BOARD OF
CC., County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
Auditor-Controller
BY DEPUTY
I .O.-2
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Mr. Corcoran also noted how proud he is of the Comprehensive Annual
Financial Report (CAFR) and the national awards the County has
received for the past several years for the preparation of this
report.
In response to a question from Supervisor DeSaulnier about whether
the County has a long-term strategy on the use of technology, Mr.
Batchelor responded that his office and other involved Departments
are working with a consultant. The Committee is developing a
platform on which all future systems will be built which will
feature an open architecture so as to provide the County with the
maximum amount of flexibility.
Supervisor DeSaulnier also asked about the extent to which the
Auditor-Controller provides services to the cities . He is
interested in having the Auditor-Controller explore the possibility
of selling payroll or other services to the smaller cities who
might prefer to purchase such services rather than try to duplicate
them themselves .
We are very pleased with the highly effective, reputable, and
professional services which are provided to the people of Contra
Costa County by the Auditor-Controller and his staff.
1 I,
OFFICE OF THE COUNTY AUDITOR-CONTROLLER
BUDGET UNIT: 0010
1. OVER VIEW
The functions and duties of the Auditor-Controller's Department are primarily defined by
law. It is the Auditor-Controller's responsibility to serve as the chief accounting officer for
the County and to ensure that the functions established for the Auditor-Controller in the
California Constitution, various California codes and by the Board of Supervisors are
effectively performed. Additionally, the Auditor-Controller's Department has assumed
other duties that are not statutorily required. The Auditor-Controller serves as one of the
key players on the County's Financial Team and has greatly contributed to the Financial
Team's efforts.
The Auditor-Controller Department's program areas are categorized as follows:
A. Support of County Operations
This category includes programs that provide core financial services to all County
departments that are basic to the functioning of the County. Some of the core activities
include the following: paying County employees; paying the County's service and vendor
providers; maintaining the County's financial records; and auditing the County's records.
B. Support of All County Jurisdictions
This category includes the services provided by our Property Tax division in allocating and
accounting for property taxes and assessments.
C. County's Statutory Responsibilities Handled by the Auditor-Controller
The Auditor-Controller's Office has assumed responsibility for certain activities that,
although absolutely necessary, do not statutorily need to be done in the Auditor-
Controller's Office. Prime examples are our Welfare Accounting unit, Child Support
Receipts Processing unit and accounting support services provided to the County's
Redevelopment Agency.
D. Non-Statutory Responsibilities
This final category includes activities the Auditor-Controller's Office has become involved
with over the years, which appear to provide positive benefits to the County but are not
legally mandated of the Auditor-Controller. Examples include production of the
Comprehensive Annual Financial Report(CAFR) and involvement with the Tax and
Revenue Anticipation Notes (TRANS) program.
2 RESOURCES
A. FUNDING& STAFFING
The overall budget of the Auditor-Controller's Department is as follows:
Gross Expenditures: $5,617,022
Financing: $3,490,457
Net County Cost: $2,126,565
Funding Sources: Expenditure Transfers $840,519
State $266,973
Fees $2,316,965
Other $66,000
General Fund $2,126,565
Staffing(FTE): 77
Level of Discretion: The Board of Supervisors has no discretion over certain activities
performed by the Auditor due to various California Codes or mandates. Other
responsibilities assumed by the Auditor are discretionary.
PROGRAM BUDGET
1. Support of County Operations
Description: Financial services provided to all County departments including: payroll;
financial record keeping; accounts payable; and auditing records.
FTE: 53.78
Level of Discretion: Very limited
Gross Expenditures: $3,939,140
Financing: $1,909,480
Net County Cost: $2,029,660
2. Support of All County Jurisdictions
Description: Services provided by the Property Tax division in allocating and accounting
for property taxes and assessments.
FTE: 11.23
2
Level of Discretion: Very limited
Gross Expenditures: $1,032,176
Financing $1,011,409
Net County Cost: $20,767
3. County's Statutory Responsibilities Handled by the Auditor-Controller
Description: Handle the County's Welfare Accounting unit, Child Support Receipts
Processing unit and accounting support for the County's Redevelopment Agency.
FTE: 9.58
Level of Discretion: Very limited (although functions not mandated to be handled by the
Auditor-Controller's Office)
Gross Expenditures: $488,233
Financing: $472,068
Net County Cost: $16,165
4. Non-Statutory Responsibilities
Description: Provide positive benefits to the County including: production of
Comprehensive Annual Financial Report (CAFR); Tax and Revenue Anticipation Notes
(TRANS) program; special financial and operational audits.
FTE: 2.41
Level of Discretion: Discretionary
Gross Expenditures: $157,473
Financing: $97,500
Net County Cost: $59,973
B. AFFIRMATIVE ACTION
In compliance with the commitment of the Contra Costa County Board of Supervisors to
an Affirmative Action Program and in accordance with the Equal Employment Act of
1972, the Auditor-Controller's Department fully adopts and supports Contra Costa
County's Affirmative Action Policy. It is the Department's primary objective to ensure
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equal employment opportunity for all employees to achieve their highest level of
productivity and professional growth.
The Auditor-Controller's Office has established and will continue to provide an
environment where equal opportunity exists for all people in all aspects of
employer/employee relations without discrimination because of race, color, religion, sex,
national origin, marital status, sexual orientation or disability. The Auditor-Controller's
Office ensures each employee fully understands the County's Affirmative Action Policy
and acts in a manner that ensures a working environment where all employees are treated
with dignity and respect.
The Auditor-Controller Department's Affirmative Action Plan and Implementation Plan,
which includes the department's work force data was submitted to the Equal Employment
Advisory Council and the County Administrator's Office. The Equal Employment
Advisory Council is in the midst of reviewing and evaluating all County Plans.
• See Attachment A for Statistical Data
C. AUTOMATION
The Auditor-Controller's Department has three primary mission-critical systems: Finance
System; Property Tax System; and the Payroll System. These systems are extremely
antiquated(over 15 years old) and run on the mainframe. One primary objective of the
Auditor-Controller's Office is to install new systems to improve operations, increase
efficiency and ensure that the statutory requirements of the Auditor-Controller continue to
be met.
Presently, the Auditor-Controller's Office has 48 personal computers and installation of a
Local Area Network(LAN) is in process. Some of the benefits of implementing a LAN
include the following:
Auditor-Controller's Office will have access to the County's Wide Area Network, which
allows a shared data communications infrastructure;
Ability to standardize software and ensure all critical files are backed-up on the main
server;
Security will be improved by maintaining files on the main server.
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3. CLIENT PROFILE
The Auditor-Controller serves all the citizens of Contra Costa County by ensuring the
fiscal integrity of the overall financial operations of the County. As an elected official, the
Auditor-Controller's first consideration is to serve his countywide constituents by carrying
out the multitude of statutory requirements that are imposed on the Auditor-Controller.
In carrying out these statutory requirements, County departments, employees as well as
other jurisdictions, such as the school districts, special districts and cities, are served.
5
4. PERFORMANCE INDICATORS
The Auditor-Controller's Office continually assesses and evaluates its operations.
Recently, the Internal Audit division developed a performance survey to distribute to
departments upon completion of audits; the information from the surveys is used to _
determine customer satisfaction with the quality of service provided by the Internal Audit
division. Additionally, the Payroll division has developed countywide training sessions to
improve the departmental payroll process and to obtain feedback to improve the
centralized payroll process.
The following are some specific objectives and standards presently used to measure the
Auditor-Controller Department's performance:
A. Objective: Complete the property tax roll and tax apportionment's in accordance
with the Revenue and Taxation Code and the yearly apportionment calendar
established by the State Controller.
Performance Indicator: Tax roll prepared and tax distributions made in accordance with
specific calendar requirements.
B. Objective: Process payroll and related documents on a timely basis.
Performance Indicator: Payrolls issued by dates specified in salary ordinance. Taxes
remitted to IRS, FTB, etc. on due dates. W-2s issued no later than January 31.
C. Objective: Prepare Comprehensive Annual Financial Report (CAFR) and submit to
GFOA's Certificate of Achievement for Excellence in Financial Reporting Program by
due date. Obtain Certification of Achievement for Excellence in Financial Reporting.
Performance Indicator: Submission of CAFR to GFOA by December 31, and receipt of
Certificate.
The Auditor-Controller's Office will continue its efforts in developing comprehensive and
meaningful standards to measure performance.
6
GENERAL ACCOMPLISHMENTS
Received the Certificate of Achievement for Excellence in Financial Reporting for 13
consecutive years. Only 11% of the counties in the nation and 28% of the counties in
California receive this award.
Administered the Tax and Revenue Anticipate Note (TRANS) program. The Auditor-
Controller's Office provided rating agencies with all financial data required to rate the
notes and solely was responsible for developing and monitoring cash flow projections.
Contra Costa County received the highest possible short-term rating from both rating
agencies.
Received results of an independent audit that disclosed only 19 errors in the review of
560,394 records, which compared to the 112 expected errors to be found in the same
volume of reoccurs is 6 times better than the average. Additionally, the results of the
audit confirmed that the County takes advantage of all available purchase discounts.
Assumed the financial leadership role in the successful issuance of Pension Obligation
Bonds in March of 1994, which results in an annual saving to the County of$2-
31000,000.
Completed an extensive Tax Rate Area(TRA) consolidation project that reduced the
number of TRAs in the County from over 3000 to approximately 1200.
Assumed leadership role in the State Association of County Auditors and acquired
state wide recognition for expertise in tax laws.
Served in leadership role within the State Association of County Auditors in the
following areas:
- Executive Committee;
- Accounting Standards and Procedures Committee;
- Accounting Managers, Property Tax Manages and Audit Chiefs Sub-Committee;
- Property Tax Shift Implementation Committee(Co-Chair);
- AB 2788 (Public Safety Services -Prop. 172) Guidelines Committee.
• See Attachment B for Workload Indicators by Division
7
S. CHALLENGES
The Auditor-Controller's Office continual challenge is to keep current with the evolving
advancement of technology. As stated, the mission-critical systems of the Auditor-
Controller's Office are antiquated and will require replacement in the imminent future.
Another challenge the Auditor-Controller's Office faces is the inability to effect its
revenue. For the past four fiscal years County departments have been required to
decrease their net county cost either by reducing gross expenditures or increasing revenue.
Since the Auditor-Controller's Office is a central-service department, the nature of its
functions limits the ability to increase revenue. Although the Auditor-Controller's Office
has made diligent efforts to offset its expenditures, it becomes increasingly difficult to raise
additional revenue. Furthermore, since the primary functions of the Auditor-Controller's
Office are statutorily required, the ability to reduce services is limited.
8
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6. THE FUTURE
With the support of the Board of Supervisors and County Administrator's Office and the
dedication and performance of staff, the Auditor-Controller's Office will continue to
ensure the fiscal integrity of countywide financial operations, install new advanced-
systems and fully utilize current technology to maintain and improve the financial
operations of the County.
9
TIMETABLE AND GOALS Attachment A
AUDITOR-CONTROLLER DEPARTMENT
Total Positions Allocated* 77
Total Positions Filled** f688
Total Positions Vacant 9
Employee Breakdown
Number Percentage Parity%*** Goal Need
Total ** 68 100.0%
Male 20 29.0%
Female 48 71.0% 42.4% 29 0
White 55 80.8%
African American 1 1.4% 7.6% 5 4
Hispanic 6 9.0% 7.7% 0 0
Asian/Pacific Islanders 3 4.4% 4.7% 0 0
Filipino 3 4.4% ****
American Indian/Alaskan Native 0 0.0% 0.7% 0 0
Disabled 0 0.0% ****
Notes: These footnotes are the same throughout this report.
* Figures taken from Authorized Positions Report dated April 22, 1994
*" Figures taken from Workforce Report dated December 1, 1993
(Updated to represent current data as of April 22, 1994)
*** Based on 1991 labor force statitstics in Contra Costa County
**"'* Data not available
Department Outlook:
The Auditor-Controller's Department realizes that African Americans need to be targeted when
recruiting for job openings in our office. Our department will continue to work with Personnel
when developing a recruitment plan to fill vacancies in our department.
OCCUPATIONAL CATEGORY AND SALARY LEVEL
Occupational Category: Officials and Administrators
Salary Range: $49,000.$61,000+
Total Positions Allocated 2
Total Positions Filled 2
Total Positions Vacant 0
JOB CLASSIFICATIONS FILLED VACANT TOTAL
Auditor-Controller(Elected Official) 1 0 1
Assistant Auditor-Controller 1 0 1
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Number Percentage Parity Goal Need
Total 2 100.0%
Male 1 50.0%
Female 1 50.0%1 42.4%1 0 0
White 2 100.0% 0.0% 0 0
African American 0 0.0% 7.6% 0 0
Hispanic 0 0.0% 7.7% 0 0
Asian/Pacific Islanders 0 0.0% 4.7% 0 0
Filipino t 0 0.0%
American Indian/Alaskan Native 0 0.0% 0.7% 0 0
Disabled 0 0.0%
OCCUPATIONAL CATEGORY AND SALARY LEVEL
Occupational Category: Professionals
alary Range: $20,000-$48,989+
Total Positions Allocated 33
Total Positions Filled 31
Total Positions Vacant 2
JOB CLASSIFICATIONS FILLED VACANT TOTAL
Accountant III 3 0 3
Accountant II 2 1 3
Accountant 1 4 0 4
Administrative Svcs. Assistant 1 0 1
Auditor III 1 0 1
uditor 11 3 0 3
uditor 1 1 0 1
Budget Specialist II 1 0 1
EDP Auditor 0 1 1
Principal Accountant 4 0 4
Principal Auditor 1 0 1
Senior Systems Accountant 3 0 3
Systems Accountant 1 0 1
Supervising Accountant 5 0 5
Tax Roll Supervisor 1 0 1
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Number Percentage Parity Goa! Need
Total 31 100.0%
Male 16 52.0%
Female 15 48.0% 42.4% 13 0
White 24 77.0% 0.0% 0 0
African American 1 3.2% 7.6% 2 1
Hispanic 3 10.0% 7.7% 2 0
Asian/Pacific Islanders 1 3.2% 4.7% 1 0
Filipino 2 6.4%
American Indian/Alaskan Native 0 0.0% 0.700 —0—F-0-1
Disabled 0 0.0%
OCCUPATIONAL CATEGORY AND SALARY LEVEL
Occupational Category: Administrative Support
Salary Range: $16,000-$42,999
Total Positions Allocated 42
Total Positions Filled 35
Total Positions Vacant 7
JOB CLASSIFICATIONS FILLED VACANT TOTALI
Account Clerk-Advanced 15 4 19
Account Clerk- Experienced 2 2 4
IfAccount Clerk- Beginning 0 0 0
Accounting Technician 15 1 16
Clerk- Experienced 1 0 1
Clerk-Senior 1 0 1
Executive Secretary -1 0
............
....... ..
Number Percentage Parit Goal Need
Total 35 100.0%
Male 3 9.0%
[Female 32 91.0% 42.4% 0 0
White 29 82.0% 0.0% 0 0
African American 0 0.0% 7.6% 3 3
Hispanic 3 9.0% 7.7% 3 0
Asian/Pacific Islanders 2 6.0% 4.7% 2 1
Filipino 1 3.0%
American Indian/Alaskan Native 0- 0.0% 0.7% 0 0
,Disabled 0 .0.0%1
I
Attachment B
WORKLOAD INDICATORS
BYDIUSION
GENERAL ACCOUNTING/ACCOUNTS PAYABLE DIVISION
The General Accounting/Accounts Payable Division provides services to all County
departments, fire districts and some special districts. The Division is responsible for
maintaining the computerized general accounting records and for processing demands,
purchase orders and contracts.
• Financial Record Keeping 30+Dpts/35 Districts
• Vendor Payments $550,0009000
• Vendor Checks 81,000
• Demand Payments $1,6000,000
• Demand Checks 169000
PAYROLL & BUDGETS DIVISION
The Payroll and Budgets Division is responsible for processing payroll for all County
departments, most fire districts and some non-county regional agencies. The Division also
is responsible for assisting in preparing the budget documents for the County and special
districts including compilation and generation of all schedules and monitoring expenditures
for budget compliance.
• Payroll Payments $341,500,000
• Payroll Checks & Direct Deposit 1849000
• Wage Attachments & Levies S9509000
• W-2s Issued 99955
i
INTERNAL AUDIT DIVISION
The Internal Audit Division is responsible for developing and executing audit programs for
the examination, verification and analysis of the financial records, procedures and internal
control of County departments, special districts and other agencies governed by the Board
of Supervisors. This Division provides reports to management that include objective
analyses, appraisals, comments and recommendations on County financial operations.
Completed Audits s0
Includinz
Employees' Retirement Association
• County Airport
• Community Services
PROPERTY TAX DIVISION
The Property Tax Division is responsible for allocating and accounting for property taxes
and assessments.
• Distributed Taxes 200 Jurisdictions
• Tax Levies $8009000,000
Distribution: County 12.7%; Districts 20.7%;Redevelopment 8.6%; Schools 50%.
2
EXTERNAL REPORTING DIVISION
The External Reporting Division is responsible for handling the County's Welfare
Accounting unit, Child Support Receipts Processing unit and providing accounting
support for the County's Redevelopment Agency. The Division also is responsible for
producing the Comprehensive Annual Financial Report, administering the Tax and
Revenue Anticipation Notes program, coordinating SB 90 claims and preparing the
countywide Cost Allocation Plan.
Welfare Payments $162,000,000
Welfare Checks 376,000
Food Stamp Payments $40,0009000
Food Stamp Coupons 279,000
Child Support Receipts $31,0009000
3
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ATTACHMENT D
Contra Costa County
Office of Kenneth J.Corcoran
COUNTY AUDITOR-CONTROLLER Auditor-Controller
625 Court Street
Martinez, California 94553-1282 .. Judith A.van NoteAssistant Auaitot-controller
Telephone 510)646-2181
tom: u
Fax (510)646-2649 �;:,�. , r<•;>~ , .:.
Fax (510) 646-1554 - Room 202 . /1
ADMINISTRATION
CORCORAN, Kenneth - Auditor--Controller. . . . . . . . . . . . .646-2181
VAN NOTE, Judith - Assistant Auditor-Controller . . . . . . . .646-2184
VERIGIN, Elizabeth - Administrative Services Assistant III. . .646-2185
MAYO, Pat - Executive Secretary . . . . . . . . . . . . . . . .646-2181
HOWARD, Dorothy - Clerical Pool . . . . . . . . . . . . . . . .646-2181
GENERAL ACCOUNTINGJACCOUNTS PAYABLE
DESMOND, Lois - Principal Accountant. . . . . . . . . . . . . .646-2247
INTERNAL AUDIT DIVISION
COOPER, Jack - Principal Auditor. . . . . . . . . . . . . . . .646-2161
EXTERNAL REPORTING & SERVICES
WINN, Sandra - Principal Accountant . . . . . . . . . . . . . .646-2911
PAYROLL & BUDGETS
EDWARDS, Roger - Principal Accountant . . . . . . . . . . . . .646-2186
TAX DIVISION
YBARRA, Steve - Principal Accountant. . . . . . . . . . . . . .646-2225