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AGENDA

Committee ofthe Ways and Means Monday, March 29, 2010 @ 12:45 p.m.

Tenth Floor Conference Room - City Hall

Councilmember Carol Wood, Chair Councilmember Eric Hewitt, Vice Chair Councilmember Tina Houghton, Member

I. Call To Order

II. Roll Call

m. Approval of Minutes

• March 8, 2010

• March 22, 2010

IV. Public Comment

v. Discussion/Action

1. Budget Transfer - Grant Funds for Region 1 Planning Board for Public Safety Communications Equipment

• $101,982.46

• $1,320,028.00

2. Budget Transfer - Homeland Security Grant Program Funds Awarded to Michigan Region 1 for Security and Preparedness Planning

3. Update on the 2nd Quarter Figures and Vacancy Factor

4. Carry Forwards

5. Creation of a Foundation

6. Update from the Internal Auditor on Budget Reports due to Council

VI. Receipt of Communications

VII. Adjourn

VIII. Pending

• Local preference ordinance

• Update on IRS New Rules on Tax Increase Prevention & Reconciliation Act

• Waste Management on Recycling and Refuse

OFFICE OF THE MAYOR 9th Floor, City Hall

124 W. Michigan Avenue

Lansing, Michigan 48933-1694 (517)483-4141 (voice) (517) 483-4479 (TOO) (517) 483-6066 (Fax)

: From the 3-8-10 Council Meeting Packet

, REFERRED TO THE COMMITIEE ON , WAYS AND MEANS AND THE

INTERNAL AUDITOR

Virg Sernero, Mayor

TO:

City Council President A'Lynne Robinson and Council Members

FROM:

Mayor Virg Bernero

DATE:

March 4, 2010

RE: Budget Transfer- Grant Funds available Region 1 Planning Board for Public Safety Communications Equipment. The City of Lansing is the Fiduciary Agent for the Joint Grant Administered by the Department of Commerce and the Department of Homeland Security

The attached correspondence is forwarded for your review and appropriate action.

VBlrh Attachment

"Equal Opportunity Employer"

BUDGET TRANSFER

FY 2010

Prepared by :RJB_ Transfer #10- __

Administrative .JL Appropriations

Executive _ Change of Intent

_Personnel __L Other Costs

._ Capital Projects Debt Service

.x, Equipment

_ Operating Transfer

Returned to Department for signature on:_2/25/10_

SOURCE:

FROM:

STATE/FEDERAL PROGRAMS

2007 PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS GRANT PROGRAM Available

Order Account Number(s)

$ 0.00 2/25/10

Title

Balance as of:

273.0.528000.17080

Federal Revenue

EXPLANATION: The Department of Homeland Security and the Department of Commerce (National Telecommunications and Information Administration) (NTIA) administer this joint Grant Program. The Region i Planning Board was

. awarded $1,320,028, using the City of Lansing as fiduciary agent (subqrantee) for the region's nine (9) counties. Public Law 110-53 amendatory appropriations act (2008). The program generally covers the purchase of interoperable voice, data, and/ or video signals equipment and the testing of interconnecting capability. The grant requires 25% hard match by the participating agencies, but no City of Lansing funds are involved. Various hard. match funding arrangements are anticipated, so all transactions will be netted though the expenditure account.

SUBJECT:

TO:

STATE/FEDERAL PROGRAMS

2007 PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS GRANT PROGRAM Available

Balance

Order Account Number(s)

Title

Request

Regional Projects

$ 1,320,028.00

EXPLANATION: Homeland Security and NTIA priorities in the 2007 PSIC program include projects designed to (1) achieve meaningful and measurable improvements in the state of interoperability for public safety communications, and (2) fill interoperability gaps identified in the Statewide Communications Interoperability Plan. Phase I ($442,028) will upgrade and replace mobile and portable radio equipment to meet federal narrowband requirements. Phase II ($878,000) will fund six (6) trailers equipped to inter-connect (on-scene) all disparate VHF, UHF, and 700/800 MHz National lnteroperability Channels. Phase II will require exercises to confirm program effectiveness .

The proposed transfer:

..1L. has not resulted from or. will not result in a material change in scope of services.

_ represents a material change in scope of services.

DATE: rz.1,,-~/{D

DATE: ~

Approved byWays & Means Approved by Council: Resolution # __

c:\myfiles\backup\court\transfer\010 2007 PSIC.doc

OFFICE OF THE MAYOR 9th Floor, City Hall

124 W. Michigan Avenue

Lansing. Michigan 48933-1694 (517) 483-4141 (voice) (517) 483-4479 (TOO) (517) 483-6066 (Fax)

From the 3-8-10 Council Meeting Packet

; REFERRED TO THE COMMITTEE ON , WAYS AND MEANS AND THE INTERNAL AUDITOR

Virg Bernero, Mayor

TO:

City Council President A'Lynne Robinson and Council Members

FROM:

Mayor Virg Bemero

DATE:

March 4, 2010

RE: Budget Transfer- Interoperability Emergency Communications Grant Program

Awarded Funds to Michigan Region 1 for Operation Protocols and Emergency Responder Training. The City of Lansing is the Fiduciary Agent for the Region.

The attached correspondence is forwarded for your review and appropriate action.

VB/rh Attachment

"Equal Opportunity Employer"

BUDGET TRANSFER

FY 2010

Prepared by :RJB_ Transfer #10- __

__L Appropriations _ Change of Intent

_Personnel .x, Other Costs

_ Capital Projects Debt Service

Adm in istrative Executive

_x_ Equipment

_ Operating Transfer

Returned to Department for signature on:_2/25/10_

SOURCE:

FROM:

STATE/FEDERAL PROGRAMS

2007 PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS GRANT PROGRAM

Order Account Number(s)

Available

Balance as of:

Title

Request

Federal Revenue

$ 1,320,028.00

$

0.00 2/25/1 °

EXPLANATION: The Department of Homeland Security and the Department of Commerce (National Telecommunications and Information Administration) (NTIA) administer this joint Grant Program. The Region 1 Planning Board was awarded $1,320,028, using the City of Lansing as fiduciary agent (subgrantee) for the region's nine (9) counties. Public Law 110-53 amendatory appropriations act (2008). The program generally covers the purchase of interoperable voice, data, and/ or video signals equipment and the testing of interconnecting capability. The grant requires 25% hard match by the participating agencies,but no City of Lansing funds are involved. Various hard match funding arrangements are anticipated, so all transactions will be netted though the expenditure account.

SUBJECT:

TO:

STATE/FEDERAL PROGRAMS

2007 PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS GRANT PROGRAM

Available

Request Balance as of:

Account Number(s) Title

273.343580.961741.17089 Regional Projects

$ 1,320,028.00

EXPLANATION: Homeland Security and NTIA priorities in the 2007 PSIC program include projects designed to (1) achieve meaningful and measurable improvements in the state of interoperability for public safety communications, and (2) fill interoperability gaps identified in the Statewide Communications Interoperability Plan. Phase I ($442,028) will upgrade and replace mobile and portable radio equipment to meet federal narrowband requirements. Phase II ($878,000) will fund six (6) trailers equipped to inter-connect (on-scene) all disparate VHF, UHF, and 700/800 MHz National Interoperability Channels. Phase II will require exercises to confirm program effectiveness.

The proposed transfer:

.2L has not resulted from or will not result in a material change in scope of services.

__ represents a material change in scope of services.

DATE: 'l/2~ /(0

DATE:~

Approved by Ways & Means Approved by Council: Resolution # __

c:\myfiles\backup\court\transfer\O1 02007 PSIC.doc

OFFICE OF THE MAYOR 9th Floor, City Hall

124 W. Michigan Avenue

Lansing, Michigan 48933-1694 (517) 483-4141 (voice) (517) 483-4479 (TOO) (517) 483-6066 (Fax)

From the 3-8-10 Counc/I'M t'

ee mg Packet

: REFERRED TO T '

,. WAYS AND MEAN~EA~~MMITTEE ON

: INTERNAL AUDITOR THE

Virg Bernero, Mayor

TO:

City Council President A'Lynne Robinson and Council Members

FROM:

Mayor Virg Bemero

DATE:

March 4,2010

RE: Budget Transfer- Homeland Security Grant Program Funds awarded to

Michigan Region 1 for Security and Preparedness Planning. The City of Lansing is the Fiduciary Agent for the Region.

The attached correspondence is forwarded for your review and appropriate action.

VB/rh Attachment

"Equal Opportunity Employer"

BUDGET TRANSFER

FY 2010

Prepared by :RJB_ Transfer #10- __

Administrative 2..... Appropriations

Executive _ Change of Intent

L Personnel 2..... Other Costs

_ Capital Projects Debt Service

_Equipment

_ Operating Transfer

Returned to Department for signature on:_2/25/1 o_

SOURCE:

FROM:

STATE/FEDERAL PROGRAMS

2008 HOMELAND SECURITY GRANT PROGRAM

Order Account Number(s)

Available

Request Balance

Title

273.0.528000.17080

Federal Revenue

$ 3,325,750.00 $

EXPLANATION: The Homeland Security Grant Program awarded $3,325,750 to Michigan Region 1, using the City of Lansing as fiduciary agent (subgrantee) for the region. Public Law 110-329 continuing appropriations act (2009). The program generally covers planning, equipment, training, and exercise for projects determined in advance and in accord with the HSGP 10 Investment Justifications to be implemented at the regional/local level.

SUBJECT:

TO:

ST ATE/FEDE;RAL PROGRAMS

,2008 HOMELAND SECURITY GRANT PROGRAM

Order Account Number(s)

Available

Balance as of:

Title

Request

273.343580.702000.17080 Salaries - Lansing Admin $ 57,651.97 $ 0.00 2/25/10
73.343580.715000.17080 ,Fringe Ben - Lansing Admin $ 42,120.53 $ 0.00 2/25/10
273.343580.741000.17080 Mise Operating - Lansing Proj ect $ 148,625.89 $ 0.00 2/25/10 '
273.343580.961702.17080 Compensation - Regional Planners $ 372,000.00 $ 0.00 2/25/10
273.343580.961741.17080 Regional Proj ects $ 2,705,351.61 $ 0.00 2/25/10
$3,325,750.00 EXPLANATION: Homeland Security priorities in the 2008 program include special planning in three areas: (1) measuring progress in achieving National Preparedness Guidelines, (2) strengthening lED attack deterrence, prevention, , and protection, and (3) strengthening preparedness planning. At least 25% must be allotted to objectives #2 and #3. In addition, 25% must be allotted towards law enforcement terrorism prevention-oriented planning, organization, training, exercise, and equipment activities .

The proposed transfer:

...1L has not resulted from or will not result in a material change in scope of services.

_ represents a material change in scope of services.

DATE: __ z._I_z._5"_1 (_ .. _

DATE:

Approved by Ways & Means --,-, Approved by Council: Resolution #

c:\myfiles\backup\court\transfer\O1 02008 HSGP .doc

Chris Swope Lansing City Clerk

( From the 2-8-10 Council Meeting Packet

February 5, 2010

REFERRED TO THE COMMITIEE ON WAYS AND MEANS AND THE

. INTERNAL AUDITOR

City Council President and Members of the Lansing City Council 10th Floor City Hall

Lansing, MI 48933

Dear President and Members of Council:

On January 29, 2010, I have received and placed on file the City of Lansing's General Fund Status Report for Fiscal Year 2010 2nd Quarter. I have attached a copy of this document for your convenience.

Sincerely,

~4

Chris Swope, CMC

Lansing City Clerk

Lansing City Clerk's Office

Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, MI 48933-1695 517-483-4131 • TDO 517-483-4479· 517-377-0068 FAX www.lansingmLgov/clerk • clerk@lansingmLgov

.. ?"

General Fund Status Report - FY 2010 2nd Quarter Please see accompanying summary detail (page 3)

Revenues

In total, operating revenues collected in the :first quarter of Fiscal Year 2010 (July- Deceinber) were lower than the average of the past three years' first quarter collection rates, both in total and as a percentage of year-end amounts (48.9% compared to 51.0%). As notediu theFY 2010 deficit elimination plan, revenue shortfalls are projected for they year.

• The vast majority of Property Taxes are collected in the first month of the fiscal year. At the end of the :first quarter this year, they were lower, as a percentage of budget, compared to the average ofthe past three years first quarter collection rates, at 92.3% compared to 97.4%, due to adjustments from bankruptcies and foreclosures. Between now and the end of the year, there "Will be receipts of delinquent taxes and Michigan Tax Tribunal adjustments

as well as 425 agreement receipts; so the first quarter figure is not the final revenue number for the year.

• As a percentage of budget, Income Tax collections were significantly lower than the average collection rate for the past three years, at 28.6% of budget, compared to 34.7%, a further decline from the first quarter due to a decreased receipts in November. The reason for the November decline is being evaluated as to whether it was due to a timing issue, or if

it is to be sustained. .

• State-Shared Revenues are projected to be $2 million less than anticipated in the FY 2010 budget, due to cuts by the State legislature. In addition to the State appropriation cuts, revenue sharing is susceptible to fluctuations in State income tax receipts.

• Charges for Services were higher as a percentage of year-end totals for the average of the same period for the last three years, at 40.6% of budget, compared to 35.1 %, which is largely due to increased Code Compliance and Fire Ambulance revenues.

• In total, Licenses and Permits revenues were slightly lower than the average collection rate of the same period for the last three years as a percentage of year-end totals, at 23.0% of budget, compared to 26.3%.

• Collection rates forFines and Forfeiture were somewhat less as a percentage of year-end totals for the average of the last three years, at 38.8% of the budget compared to 43.5%.

• Interest revenue is posted as investments mature, the timing of which varies from year-toyear. Based 011 drastically lower interest rates, interest earnings are expected to be significantly lower than was anticipated when this year's budget was put together.

General Fund revenues continued to be monitored closely, and further rp.ea.§w:;e.s.b~q.!address any changes from the amounts projected ill the pending deficit ~1l:h'iliiati~111pl1:P~iff'1Je)br'ought forward

if necessary. . 'd 52 ;'J'Kr OIClZ·

"O·c: [,! Iii\!! )J,ll

1:I.j '.,t. ~.,

03AI383t\'·

Page 1 of3

Expenditures

In total, taking into account the vacancy factor, expenditures for General Fund operating departments (excluding debt service and transfers to other funds) were close to the budget target-at 48.8% as of December 30, compared 'to a budgetary target of 49.0%.

For the most part, measures from the pending deficit elimination plan to reduce expenditures, most notably nine City office closure dates which began December 28 and changes in Police and Fire operations, are not reflected in the December 31 figures due to the timing of the affected payrolls. Measures from the pending deficit elimination plan are expected to meet the $3 million shortfall that was proj ected at the time the deficit elimination plan was submitted to Council. Based on the most recent two months, there is concern that General Fund revenues may continue to deteriorate, and that further plans may be needed.

Page 2 of3

General Fund Status Report - FY 2010 December 31, 2009
Avg. Percent
of Year-End
Actuals as of
Revenues Annual Actual Percent December 30
Budget as of 12/31/09 of Budget FY 2007 - 2009
Property Taxes $ 41,269,556 $ 38,110,645 92.3% 97.4%
Income TaxEJs 30,300,000 8,673,193 28.6% 34.7%
Revenue Sharing 17,640,993 3,112,405 17.6% 24.4%
Licenses & Permits 1,598,500 368,154 23.0% 26.3%
Charges for Services 9,031,622 3!669,361 40.6% 35.1%
Fines & Forfeitures 3,397,050 1,318,225 38.8% 43.5%
Interest & Rent 928,900 76,194 8.2% 41.8%
Return on Eq uity 11,850,000 0.0% 1.8%
Other Revenue 1,191,779 561,348 47.1% . 34:6%
Total Revenues $ 117,208,400 $ 55,889,526 (1) 47.7% 51.0%
Proposed Budget Amendment (3,000,000)
114,208,400 48.9% 51.0% Expenditures Annual Actual Percent
Budget as of 12/31/09 of Budget (2)
Council $ 624,274 $ 282,578 45,.3%
City TV 195,805 90,716 46.3%
Internal Audit 150,720 69,983 46.4%
Courts 5,356,780 2,411,478 45.0%
, Mayor's Office 725,144 337,925 46.6%
Clerk's Office 899,377 468;102 52.0%
Planning & Neighborhood Development 3,651,370 1,819,881 49.8%
Finance 10,483,840 4,956,725 47.3%
Human Resources 1,816,320 659,091 36.3%
Attorney's Office 1,351,000 655,703 48.5%
Vacancy Factor (1,000,000) 0.0%
Police 34,247,047 17,032,376 49.7%
Fire 30,050,300 14,211,566 47.3%
Public Service 6',092,090 3,439,689 56.5%
Human Relations & Community Service 667,910 284,442 42.6%
Parks & Recreation 8,790,130 4,059,660 46.2%
Human Services & City Supported Agencies 1',740,650 827,846 47.6%
$ 105,842,757 $ 51,607,762 48.8% (2)
Library Lease $ 160,000 $ 72,580 45.4%
Debt Service 3,947,450 3,003,401 76.1%
Transfers 7,258,193 6,554,674 90.3%
$ 117,208,400 $ 91,238,418 (1) 52.2% Please see Pages 1 and 2 for an explanation of revenues and expenditures.

(1) Note: Year-to-date revenue is always greater than expenditures at this time of year, as property taxes, accounting for 35% of General Fund revenues, are collected at the beginning of the year. Property taxes

include delinquent amouts that will be reimbursement by the counties upon settlement. .

(2) Due to the timing of payrolls, the December 31 budgetary target is 49.0%.

- Page30f3

FY 2010 Vacancies As of 12/31/2009

General/Subsidized Funds· Current Vacancies

City Clerk Principal Clerk

Dist. Ct. • Court Recorder

Finance/Accounting Financerrreasury Attorney's Office HR

Parks & Rec Parks & Rec Parks & Rec Police Police Police Police Police Police Police Police Police Police

Fire

Fire

Fire

Fire

Accountant

Customer Service Representative Deputy City Attorney Administrative Assistant Administrative Assistant

Aquatics Programmer

Clerk (SSCC)

Detention Officer

Detention Officer

Police Officer

Police Officer

Police Officer

Police Officer

Police Officer

Police Officer

Sergeant

Captain VI

Training Captain

Training Captain

Training Captain

Inspector IV

General/Subsidized Funds· Former Vacancies (Now Filled)

Council Principal Clerk

HR HR Specialist .

Police Lead Detention Officer

Police Detention Officer

HRCS Contract Manager

Finance/Assessor Residential Appraiser

Police Clerk

Non·General Fund Full·Tlme Vacancies

PNDrrrans Traffic Technician

PNDrrrans Parking Operations Sup.

PNDrrrans Administrative Assistant

Finance/Fleet Equipment Mechanic

Police Central Dispatch Administrator

Police 911 Emergency Comm Tech

Police 911 Emergency Comm Tech

Police 911 Emergency Comm Tech

Police 911 Emergency Comm Tech

Police 911 Emergency Comm Tech

Police 911 Emergency Comm Tech

Police 911 Emergency Comm Tech

Police 911 Emergency Comm Tech

PS/O&M Equipment OperatorlWorker

PS/O&M Equipment OperatorlWorker

PS/O&M Driver Worker

PS/O&M Driver Worker

PS/O&M Driver Worker

PS/O&M Solid Waste Operator

PS/O&M Maintenance Worker

PSIWWTP Plaint Maintenance Supervisor

PSIWWTP Plant Operations Supervisor

PSIWWTP Laboratory Supervisor

PSIWWTP Sr. Electrical Technician

PSIWWTP Industrial Surveillance Supervisor

PSIWWTP WW Assist. Plant Superintendent

PSIWWTP Utility Maintenance Worker

PSIWWTP Utility Maintenance Worker

PSIWWTP WW Plant Operator

01/15/2010

Bargaining Unit

T·580 CTP DCTNB T-580 CTP T-580 CTP T-214 Sup NBU T-580 CTP T-580 CTP T-580 CTP T-580 CTP T-580 CTP FOP NS FOPNS FOPNS FOPNS FOPNS FOP NS FOP Sup FOP Sup IAFF

IAFF

IAFF

IAFF

Savings Year-To-Date thru 12/31/2009

Amount Towards Vacancy Factor

~

$ 20,530 $ 7,580 $ 28,110

597 138 734

24,466 4,734 29,200

10,476 2,499 12,975

31,959 7,697 39,657

6,172 1,153 7,326

2,870 1,219 4,088

savings offset by reduced SSCC Subsidy savings offset by reduced SSCC Subsidy

17,535 7,161 24,696

8,856 3,617 12,473

20,875 6,696 27,571

20,875 6,696 27,571

20,875 6,696 27,571

10,995 3,527 14,522

15,138 4,856 19,994

10,198 3,271 13,470

3,101 717 3,819

17,198 49 17,247

.23,239 4,784 28,023

30,750 6,330 37,080

savings offset by frontioading & OT

savings offset by frontioading & OT

Council Staff. 5,159, .. 2,479 7,638
T -580 ci"p'j\;'f 5,445\,,· 957 6,402
T-580 CTP',' ',' 5,0es;'::': 1,902 6,970"
, ,
T-580 eTP -': 6,922 2,915 9,837
T·580 eTP' 13,697' 7,208 20,905
T·580 erp 25,864,' 8,412 34,277
T-580 eTP 12,432 5,310 17,742
$ 371,293 ~ 108,603 ~ 479,896 T-580 Sup T-580 Sup T-580 CTP UAW T-214 Sup FOP911 FOP911 FOP911 FOP911 FOP911 FOP911 FOP911 FOP911 UAW UAW UAW UAW UAW UAW UAW T-580 Sup T-580 Sup T-580 Sup T-580 CTP T-580 Sup Non Barg UAW UAW UAW

Page 1 of 1

Virg Bernero, Mayor

City of Lansing Finance Department Interoffice Communication

TO: Arnie Yerxa, Internal Auditor

FROM: Angela Bennett, Budget Manager

DATE: March 2, 2010

. SUBJECT: Carryforward/Purchase Order Memo Dated 2/17/2010

The following are responses to your inquiries regarding the FY 2009 encumbered carryforwards and associated purchase orders, to which you requested a written response.

Item #1 +please explain the name change.

The name on the purchase order had to be changed to reflect the company's name change.

Item #7 =please reconcile why the difference in ending balance:

The $10,119.19 carryforward request exactly equals the balance of that purchase order as of June 30.. The purchase order was issued for $15,0.0.0. Through June 30, 2009, $4,880.81 had been paid, leaving the $10,119.19 balance requested to be carried forward.

Items # 12 & 16 - why encumbered in FY09 and not paid for until August 12, 2009.

The order was placed :in May, 2009 in order for work to be done in the timeframe needed, and the shipment was received July 23, 2009.

Items #14 and 17 - why in FY09 and not paid for until October 21,2009.

The purchase order was issued in June in order for work to be done in the timeframe needed. The striping took place August 1-2, 2009. The work was then billed, and the resulting invoice was paid in October.

Item #15 - why-using FY 09 funds f07' an expenditure which appears to be an event for FY 10. Common Ground takes place within less than a week from the start of the fiscal year. The barricading associated with this purchase order needed to be placed prior to the end of the FY 2009 fiscal year :in order to be rendered in time. Purchases associated with the FY 2010 (July, 2009) Common Ground event were budgeted in the prior year (FY 2009) because of its proximity to the start of the fiscal year.

Likewise, the amount included in the FY 2010 budget are for theJuly, 2010 Common Ground event.

Item #22 - please reconcile why the difference in the ending balance: .

The $82,235 carryforward request exactly equals the balance on that purchase order as of June 30. First, I believe you mistakenly applied a $275.99 FY 2010 payment, where only payments through June 30, 2009 should have been applied. In the IF AS purchase order screen, a $1,578.28 difference between the encumbrance and the purchase order balance exists, due to a payment that is noted in the encumbrance detail on the general ledger but does not show up on the Purchase Order screen.

Item. # 25 - please reconcile why the difference in the ending balance.

The June 30, 2009 balance of this purchase order exactly matches the June 30, 2009 carryforward request. I believe, in looking at your analysis, that you mistakenly applied FY 2010 payments, where only payments through June 30, 2009 should have been applied.

Other Items with the question WHY NEEDED, please provide justification for need to carry forward. PO 075960 - work is complete; awaiting invoice

PO 076679 - work is complete; awaiting invoice .

PO 076957 - work is ongoing; awaiting second phase of work (federalproject) PO 077623 - work is complete; awaiting invoice

PO 079098 ...., work is complete; awaiting invoice

PO 074463 - work is complete; awaiting final project close-out from contractor before closing out P.O. PO 081429 - ongo:ing project for sewer use ordinance

If you have any questions about this information, please feel free to give me a call.

City Of Lansing Internal Audit 483-4159

TO:

Carol Wood, Chair Ways and Means

FROM:

Arnold C. Yerxa, Internal Auditor

DATE:

February 17,2010

SUBJECT:

Carry Forwards for Purchase Orders

Attached is a listing of the Purchase Orders that are being requested to be carried forward from FY 09 to FY 10.

The column titled Approval Date shows the date according to the P.O. as the date the P.O. was established (some of these are very old).

The status of the P.O., as of2/12/1 0, shows if it is still active or non active i.e, Fully Paid should make the P.O. unavailable to use and Open or Part Paid should mean the P.O. is available. In comparing my list to the list provided with the resolution from Budget and the Administration, I have shown in the Column Payments Made in FY 2010 in order to reconcile balances on both listings.

The last column indicates the last date of activity and if this date is more than a year old then the question should be is it necessary to carry these P.O.'s forward. If it is considered riecessary then what is the justification.

A copy of this is being sent to Budget and the Administration for there written response.

Item 1, please explain the name change.

Item 7, please reconcile why the difference in ending balance.

Item 12 and 16, why encumbered in FY 09 not paid for until August 12,2009. Item 14 and 17, why encumbered in FY 09 not paid for until October 21, 2009.

Item 15 why using FY 09 funds for an expenditure which appears to be an event for FY 10. Item 22, please reconcile why the difference in ending balance.

Item 25, please reconcile why the difference. in ending balance.

Other Items with the question WHY NEEDED, please provide justification for need' to carry forward.

Please address any other comments below each P.O. on my list which is not mentioned above. I would appreciate a written response prior to the next Ways and Means meeting for review.

Cc. Angie Bennett, Budget

Jerry Ambrose, Administration/ Finance Council Members

cfpofyl0.doc

City Of Lansing Internal Audit 483-4[59

TO:

Carol Wood, Chair Ways and Means

FROM:

Arnold C. Yerxa, Internal Auditor

DATE:

February 18,2010

SUBJECT:

Human Relations and Community Services FY 2009 Carry Forwards

According to the accounting system of the Finance Department and the request for FY09 carry forwards, I have completed a review and the following are points of interest.

Police, Fire, and Parks

All of the requested balances tie to the financial records.

Have all of the actual receipts been appropriated?

Human Services Agencies

As stated several times before, the use of the discretionary account as an expenditure account is not the proper and/or intended use of this type of an account. The discretionary account is to be used to hold the portions of the 1.25% funding that has not been appropriated. Ifmonies are available in the discretionary account and the Director ofHRCS needs to fund another project, then funds should be appropriated to an expense account and the expenditure should be recorded in the appropriate expenditure account. .

For FY 09 the balance being requested to be Carried Forward in to the Discretionary account is $71,198. The balance appears to consist of Discretionary account $37,291.37, Greater Lansing Area Commission on Race and Diversity $22,500, Care Free Medical $5,000, Black Child & Family Inst. $4,996.87, Cristo Rey Diversion $102.17, Net Work Centers - Baker/Donora $4,496.63 and Chronic Homeless Outreach ($3189.24).

Why is the Chronic Homeless Outreach over contract by $3, J89.24?

For FY 09 the balance being requested to be Carried Forward in to the Grant Match Fund account is $23,582. The balance appears to consist of Grant Match Fund $7,316.60, and St. Vincent's Catholic Charities $16,265.57.

The remaining accounts appear to be requested for carry forward to the same program and the balances tie to the financial system general ledger.

Why are these accounts being combined back into the discretionary and not carried forward to the same program?

Programs which are being carried forward to the same program but had no activity in FY 09 are as follows:

MSU Girls Mentoring program $7,000, Boy Scouts $5,000 and One Church One Family Housing $25,000.

The following two programs had activity in FY 09, Kids Cafe After School Nutrition budget $25,000, Spent $20,000 for a balance of $5,000. Also Project Homeless Connect budget $15,000, spent $902.20 for a balance of$14,097.80.

hrcsry09carryforwards.doc

In regards to the discretionary account the following expenditures had been made:

• Allen Neighborhood Center, Garden in a Box, $21,000. Why not use account 101.833720.960288.0 Allen Neighborhood Center?

• Lansing Teen Chal1enge, $10,000.

• South Side Coalition, $4,000. Why not use account 101.833720.960115.0 South Side Community

Coalition account?

• Lansing/East Lansing Links, $10,000. What does this Program accomplish?

• University Outreach & Engagement, $24,844.74

• North West Initiative, $3,385.89. Why not use account 101.833720.960059 North Neighborhood Center?

These expenditures loose transparency when recorded in the Discretionary account.

Summary

The discretionary account should not be used as an expenditure account.

The closing of the projects into the discretionary account should have been disclosed.

I am requesting a written response to the questions within this memo.

Cc Angela Bennett, Budget Council Members

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