patterson 5.2011 memo re: retirement options

8/6/2019 Patterson 5.2011 Memo RE: Retirement Options

1/14

MEMORANDUMDATE: May 11,2011TO: Finance and Personnel CommitteesFROM: Cal Patterson, Director of Finance & TreasurerRE: City of Franklin Financial Office Succession PlanOne of the financial best practices is the establishment/maintenance of a succession planfor the Finance Department. The benefrts include ensuring continuity and consistency offinancial service delivery, knowledge transfer and leadership development. lt is especiallydifficult to do succession planning in a smaller or$anization.rhe present staffins;*i":'ffi:i1:::it FrE is as forrows:

o Deputy Treasurer. i"ons,uoervisor


2/14

BrookfieldGreenfieldNew Berlin

How does the City of Franklin Finance Department staffing size compare to othercommunities of our size? The FTE count and population for the following communites isshown below with the supporting documentation found in Attachment C:9.25 FTE 37,9205.10 FTE 36,7205.75 FTE 39,584All of the above municipalities except Oak Creek, have one individual responsible for boththe Finance and the Treasury functions. Greenfield does not have a water utility while OakCreek has a separate enti handle the water and sewer activity. Duties of the FinanceDepartments also varied by municipality with those giving the department moreresponsibilities having larger staff than those having less responsibilities.The staffing level in Franklin is below most of the comparable municipalities whencompared to the duties asked to be performed and available staffing.

Succession planning alternatives the City of Franklin could consider include filling theexisting position when the incumbent announces a retirement date or providing a transitionplan that allows for an eventual replacement to be hired and transition in during the periodof time the incumbent transitions out.The transition plan that I would like you to consider would be to temporarily split thecurrent position of Director of Finance & Treasurer into two postions: Treasurer andDirector of Finance. Name the incumbent to the part time position of Treasurer and fill afull tme position of Director of Finance by the beginning of the next budget season(August) with that position reporting to the Treasurer. This provides the new person time toleam the issues in the City of Franklin incrementally rather than being accountable for allof them immediately. The transition plan would come full circle at the time of theretirement of the current Treasurer with the Treasurer duties then being added to the

Oak Creek 5.25 FTE 34,451WestAllis 10.98 FTE 60.411


3/14

From time to time in the past the concept of retuming to a separate Finance Departmentand Treasury Department wtth separate department heads is raised. The rationale alwaysseems to be that it is necessary to provide for'checks and balances", While that conceptsounds nice and sounds like it would provide more protection for the City the opposite isthe actual result. Look at the staffing table above, a separate Treasury department wthone full time position and one full time position made up of part time employees cannotinstitute enough internal controls steps and procedures to insure that within this area aproper segregation of duties are maintained to safeguard the assets of the City.The present setup of a Treasury Office and a Finance Office within the FinanceDepartment with employees in the Finance office participating in the internal controltasksin the Treasury Office is much superior in terms of internal controls and 'checks andbalances" needed to safeguard the assets of the City. ln addition one manager who is notinvolved in daily activity in either offic,e can better coordinating the financial activity of theCity than two department heads that each are charged with pad of the responsibility.An example that highlights the benefits of a combined depament follows. Would aseparate Treasury department head with responsibility for investments consider reducingthe investibfe funds to pay off debt early, debt that is the responsibility of the FinanceDepartment head?It has.been a pleasure to provide financial direc'tion to the City and work with the otherempfoyees of the City for a better Franklin for the past almost eleven years and while Ibelieve a younger person should be on board and bearing some of the burdens I amwilling, if desired, to continue contributing on a reduced basis for the next couple of years.


4/14

(QR

TeRates-*l||l tleH*a{es

tro3o=


5/14

Attachment B2OO9 FINANGE DEPARTMENTGITY OF FRAT.IKLINJune,2008

PERSONNEL BUDGET REQUESTThe Finance and Treasury area's have had essentially the same level of stafhngsince the year 2000 when a -5payable related clerical duties.increased role in forecasting,projections, water utlity rate setting, TIF'r.h"g"rnent, financial strategy issues, auditing and financial managementissues-. The deparbnent covers many issues but does not have 'enoughresources to be 1" to do as through of analysis or get to issues timely as theyshould be addressed'

The request would be for a Deputy Finance Director position so that duties couldbe rediiected between the eisting Accounting Supevisor, Staff Accountant, andthe Director of Finance and Treasurer within the Finance area or the department.St fng in this departnent is normally seasonal d.ue.to the'natre of the work.f #r* is tht the main seasons: forecast, budget, tax, year end closingand audit run together and don't leave opporturytV for.special projects or_ longerI. An additional Accountant position willer and more thoroughly to existing and' require a four year aocounting degree


6/14

Cty2010 Census PopulationFTE:Director of Finance & TreasurerFinance DirectorTreasurerDeputy TreasurerDeputy Finance DirectorRevenue ManagerFinance ManagerAccounting ManagerUtilty AccountantAccounting SupervisorStaff AccountantAccounting TechnicanFinance ClericalTreasury CashiersSeasonalTax CashiersOther DepartmentsWater & Sewer BillingAssessor & Assessor ClerkFunctions other than Finance:Set Group Health ratesPrepare Water rate casesSet Sewer ratesPrepare TIF Districts CashflowResponsible for Risk ManagementResponsible for Information TechLabor NegotiationsPrepares a CAFR? lnternally?Prepares audit schedules & reportsPrepares PSG Report internallyPrepares State report internallyTotalCost of 2010 Audit

Brookfield Greenfield New Berlin Oak Creek WestAllisranklin35,4511.00

1.00

37,9201_00

36,7201.00

1.00

1.000.601.50

N/A2.OO

39,5841.00

34,451 60,411l_00

1.001.00

1.001.001.231.40o.251.30

1.001.001.001.001,00

2.500.75

1_00

1.00

1.751.00

1.001.00

2.001.000.25N/A

1.001.00

4.50'1.48

11

14a11

11

32245

5221112 224 fito3otfio

17 8.18 11 9.25 7.10 5.75 10 5_25 12 10.98NYN/A YN/A YYYNNNNN NTY

Y Y N/A N/AYYN/AYYYYYYYNN/ANYNNNNNNNNTYNNYYYYNNYYNYYYYNYN/AYNYYYNYNYYNYNY

39,350 40,600. 33,100 37,300 42,OOO 47,500


7/14

Should the Treasury and Financial functions be Separate?Backgroundln earlier times and in smaller municipalities all clerk, election, financial recordkeepingand administrative functions were vested in a single individual. As municipalities gotlarger organizational and more complex. Over time and due to growth, the functionswere $radually separated. Some municipalities kept the Clerk treasurer functionstogether and separated the administrative and the financial recording functions. Otherskept the Clerk /TreasureriAdministrative functions together and separated the financialrecording functions. Still others separated the administrative, from the Clerk andElections, from the financial and treasury functions. The larger the municipality the moredifferentiation in functions is required. The major organizational structure in today's worldfor medium sized municipafities is in a single financial position responsible for all thefinancial and treasury functions.Checks and Balances\A/hatever the organizational setup they must be large enough to segregate dutiesamong the staff to create checks and balances to safeguard the organization's assets.Some have contended that the best way to have checks and balances is to haveseparate Finance and Treasury departments with separate managers both reporting tothe chief administrative position in the organization. In order to effectively do this eachdepartment needs to have suffcient staffing to enable proper checks and balances toinsure that one person does not have complete control of the receipt, deposit recordingand disbursing of funds in order to safeguard assets.Internal Control procedures\/hat used to be called checks and balances is now refened to as internal controlsprocedures. These procedures are instituted within and across departments to insurethat no one person has to much control over the processing or recording of cash bothcoming in and going out of the organization. Intemal control procedures form thebackbone of the managerial control mechanism of the organization for safeguardlng


8/14

Salary Ranges Non-Represented EmployeesEffective July l, 2010


9/14

Job Title:CITY OF FRAAIKLIN

Job DescriptionDirector of Finance & TreasurerDepartment: Finance and TreasurerReports to: Mayorsalary level: ManagemenuAdministrative/supervisory Lever xl . 'FLSA Status: ExemptPrepared by: Calvin A. PattersonPrepared Date: January 11,2006Approved By: Gommon Gouncil Resolution 2006-Approved Date: January 17,2006

I communicate the finance and treasuryrgement of the departments, informatioAdministration, Finance Committee andEssential Duties and Responsibilities:Eval.uate, develop, recomniend and implement fscaland treasury policies that wlllresult in sound fiscal and treasury mangement.Anal Iand


10/14

Supervise the annual property tax collection to insure that all funds received areproperly credited against taxpayers receivable balance and deposited daily. Thetimely payment is made to other taxing jurisdictions and the final settlement istirnely made to the County.Superuise the subsequent collection of delinquent personal property taxes tomaximize the subsequent collection of these delinquent taxes to the extentpossible and the timely chargeback of any uncollected personal property taxes tothe taxing jurisd ictions.Act in the lead role in debt management, bond issuance and credit rating issuesincluding determining appropriate times to refinance existing debt to ensure themost efficient use of the City's bond capacity and borrowed monies.Superuise and maintain the Citt's payroll operations to ensure the efficienthandling of employees' pay, deductions and benefit payments.Supervise and maintain the Citt's accounts payable operations to ensure theefficient and timely handling of payment of the City's obligations.Supervise and maintain the City's special assessment collection system to ensurethe proper collection of special assessment receivables from taxpayers when due.Supervise and maintain the City's cash receipting system to insure the properreceipt, deposit and recording of all funds received,Supervise and maintain the operation of the financial and treasury dataprocessing systems and analyze and recommend data processing alternatives.Prepare the annual revenue and expenditure budget forecast, coordinate therequests for capital and operating budget expenditures and summarize the


11/14

Prepare the annual property tax rates for use in the annual property tax bills.Calculate the tax bills to insure that the proper amounts get billed to taxpayers.Maintain all official accounting records and insures that reporting is inconformance with gen erally a ccepted govern ment accou nting princi ples.Insure the statutory duties of Treasurer are performed as required.Attend meetings, when required, to support financial items. This may includemeeting outside of normal business hours.Provide the Board of Water Commssioners with assistance in financial matters.Provide the Community Development Authority with assistance in financialmatters.Maintain and catalog permanent records as required by the State.Peripheral Duties:Perfrm other duties and assume other responsibilities as apparent or asdelegated.Minmum Qualifications:Education and Experience:Graduation from a accredited college or university with a Bachelos degree inaccounting, four (4) to five (5) years municipal accounting or finance experience,a minimul' of twb years in'ubtic accountihg, or any equivalent combination ofeducation and experience.Licensing and Gertification:Certified Public Accountant or Certified Public Finance Officer certification.Necessary Knowledge, Skills and Abilities:


12/14

Ability to make independent judgments that have highly significant impacts on theorganization.Supervision Received:Works under the general policy guidance and direction of the Mayor or policiesestablished by the Common CouncilSuperuision Exercised:Exercises supervision of the Accounting Supervisor and Deputy Treasurer.Responsiblity for Public Gontact:Daily contact requiring courtesy, discretion and sound judgment.Tools and Equipment Used:Familiar with computers and computer software including financal, tax, cashreceipting, special assessment and payroll software, spreadsheet, database,presentation and word processing software, copy machine, fax machine, 10-keycalculator and telephone.Physcal Demands:The physical demands described here are representative of those that must bemet by an employee to successfully perform ihe essential functions of this job.Reasonable accommodations may be made to enable individuals with disabilitiesto perform the essential functions.While performing the duties of this job, the employee is frequently required to sit,talk and hear. The employee is occasionaily required to walk; use hands andfingers to operate, handle, or feel objects, tools, or controls; and reach with handsand arms.The employee must occasionally lift and/or move up to 25 pounds. Specific visionabilities required by this job include close vision and the ability to adjust focus.


13/14

Preliminary Duties Analysis

Daily Approve departmentalvouchersWeekly Prepare special Financial reports and analysisReview payroll or accounts'payable issues, as necessaryMonthly Attend Finance Committee - take minutesPrepare and attend for Finance related CouncilAgenda itemsReview and sign off on Monthly Joumal EntriesReview Monthly General Fund Financial Report ..:,Responsible for budget monitoringQuarterly Review Quarterly Financial Statements prepared by staffWrite commentary for Quarterly StatementsDistribute special reports and scanned quarterly statementsProcess Budget AmendmentsAnnualJanuary Review financial repofting and prepare very Preliminary reportsPrepare budget preparation scheduleFebruary Analyze and finale end of year final resultsPrepare preliminary annual resultsMarch Prepare for uditPrepare Annual CAFRApril Sumbit Expenditure Restraint report to DORSupervise and prepare parts of the Budget ForecastMay Submit annual TlF report to other jurisdictions (5/15)Submit CAFR to GFOA for Award considerationCapital lmprovement Fund - Funding Availability ReportEquipment Revolving Fund Annual Report

TreasuryApprove departmental vouchersSign GhecksDetermine cash postionMonitor and make investment changes as necessaryAdvise and Mentor the new Direstor of Finance

' Attend Finance Committee - present itemsPrepare and attend for Treasury related CouncilAgenda itemsReview and sign off on Bank Reconciliations - Treasury" Review and sign off on Bank Reconciliations to LedgerReview ICM lnvestment Shtement' Prepare Finance Cornmittee Agenda itemsAttend and present nancial items to Water Comrn., when necessaryReview investment performance of outside investment managers' Review status of special assessrnentsReview investment policy statements for potential policy changesReview, balance and approve the January tax distribution* Update the status of special assessment cash flowsReview, balance and approve the February tiax distributionAnnual Report on Investment Activity

* Review proposed sewer rates for compliance with policyReview and approve the March PP Charge backs to jurisdictionsI Annual Status report on the Self Funded Group Health PlanReview, balance and approve the April tax distribution' Prepare parts of the Budget Forecast* Annual Report on lmpact FeesSubmit GAFR to satisfy continuing disclosure on debt issues* Review Actuarial reports on Pension

Duties Analysis.xls 5t13t201',|


14/14

June Review Salary and Benefit information prepared by staffRequest Capitaland Manpower Budget Requests from Depts.Complete Budget ForecastJuly Receive and Summaraize Department RequestsAugust Work with Budget group to get Mayorial decisionsPrepare Budget worksheets and dishibute to DepartmentsSeptember Receive Budget Requests from DepartmentsIncorporate requests into budget fileWork with Budget group to develop Mayor RecommendationsDistribute recommended budgetsOctober Work with Finance Cornmittee as they review budgetPrepare Public Hearing NoticePrepare Public Hearing PresentationNovember Participate in Budget Adoption

December Prepare Adopted Budget BookSpecial Projects Analysis & reporting on specifed expenditure lssuesCapital Projects budget issuesPending Projects Review payroll systems for upgrades or changesReview Fnancial system for future upgrades or replacementReview AS400 for future upgrades or replacementlmplement Popular (Stmplified) Annual ReportingParticipate in Budget Document Award ProgramReview for possible implementation of current best practices ,Review possibilities of going away from paper processingRedo Financial storage areasReview to revise current accounts payable processBiennial review of internal control policieslmplement automatic receipting of transactions into GLReview for possible implementation of current best practicesDuties Analysis.xls

Review, bafance and approve the June tax distribution* Information to develop new OPEB Actuarial Reports (every otherYear)' Review Actuarial reports on OPEB

Review, balance and approve the two August tax distributions

Develop preliminary Assessment information frorn Assessor* Review budget as part of the budget group

Work with Finance Gommittee as they review budget

Participate in Budget AdoptionReceive tax levys from other jurisdictionsReceive valuation information from StateFinalize Assessment and tax rate informationPrepare ax systems for new tax billsCreate and mailtax billsDevelop following year investrnent plan* Develop group health rates for the following year

* Prepare and present Water Rate CasesPrepare information and work with IDRB proposalsPrepare information and work with Financial advisor on debt issuanceWork to eliminate duplicate recording of Govern receiptsReview for possible implementatlon of current best practicesI m plement business credit/pu rchasing cardslmplement EFT payments in lieu of check payments to some vendorsBiennial review of internal control policiesDetiail review of Police receipting processUpdate electronic filesReview for possible issuance of a banking RFPOld Personal Property enhanced collection

5t1312011

patterson 5.2011 memo re: retirement options

Documents