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Home My WebLink About2010-03-08-Meeting Agendawww.augustaga.gov Finance Committee Meeting Commission Chamber- 3/8/2010- 1:15 PM FINANCE 1. Motion to approve Budget Adjustments for the 2009 Financial Audit. Attachments 2. Approve renewal of Public Official Liability coverage with current carrier, Landmark American Insurance for $68,308 for April 19, 2010 to April 19, 2011. Attachments 3. Approve the reorganization of the finance department that provides a cost savings to the general fund. Attachments 4. Motion to approve 2009 Indirect Cost Allocation Study to be performed by KPMG. Attachments 5. Approve Excess Worker’s Compensation Insurance with Safety National Casualty Corporation with Statutory limits and a $600,000 SIR (self insured retention; otherwise, known as the deductible) for a premium of $176,038. Attachments Finance Committee Meeting 3/8/2010 1:15 PM 2009 Budget Adjustments Department:Finance - Donna B Williams, CGFM, Director Caption:Motion to approve Budget Adjustments for the 2009 Financial Audit. Background:As part of the preparation for the 2009 audit, adjustments to the budget may be required. These adjustments typically are a "housekeeping" function, the result of recatgorizing expenditures during the closing process. This request is a normal part of the audit process. Analysis:In order to complete the year end accounting procedures required for the the annual audit, Finance is requesting approval to make all necessary budget adjustments required to make the financicial records ready for the auditors. Financial Impact:N/A - Alternatives:none Recommendation:Approval of budget adjustments as required for the 2009 audit. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Finance Committee Meeting 3/8/2010 1:15 PM Continuation Purchasing Public Official Liability Insurance Department:Finance/Risk Management Caption:Approve renewal of Public Official Liability coverage with current carrier, Landmark American Insurance for $68,308 for April 19, 2010 to April 19, 2011. Background:Current coverage has a $2,000,000 liability limit with an SIR (self insured retention) of $250,000 for each loss. Public Official Liability provides coverage for "wrongful acts" of the public entity and wrongful acts of individuals who act on behalf of the entity. A wrongful act means any actual or alleged breach of duty, neglect, errors, misstatements, misleading statements, omissions or employment practices violation by an insured solely in the performance of duties for the public entity. Augusta-Richmond County has maintained continuous coverage since 1997. Acceptance of coverage gives additional protection to the assets of public officials. Public Official Liability (POL) coverage is claims made coverage (occurrence based is not available) which means any claim which may be covered would need to be filed during the policy period. Analysis: Financial Impact:J. Smith Lanier & Company secured 4 quotes for this coverage. These quotes provide $2,000,000 in coverage with a $250,000 SIR (self insured retention). Quotes were received from Landmark American Insurance (current carrier and none committed) for a premium of $68,308; Darwin Insurance Co. for a premium quote of $84,287; Westchester Insurance Co. with a premium quote of $102,639; and Allied World Assurance with a premium quote of $110,421. Alternatives:Rely totally on available funds for the payment of any judgments which may be rendered directly against entity's public officials. Recommendation:Approve coverage quoted by Landmark American Insurance for a one year period for a premium of $68,308 for $2,000,000 in coverage and $250,000 SIR. Coverage includes Augusta Commission, Augusta Regional Airport Authority and Solid Waste Management Authority. Funds are Available in the Following Accounts: 611-01-5212 Cover Memo REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Attachment number 1Page 1 of 6 Attachment number 1Page 2 of 6 Attachment number 1Page 3 of 6 Attachment number 1Page 4 of 6 Attachment number 1Page 5 of 6 Attachment number 1Page 6 of 6 Finance Committee Meeting 3/8/2010 1:15 PM Department Reorganization – Finance Department:Donna B. Williams, CGFM Caption:Approve the reorganization of the finance department that provides a cost savings to the general fund. Background:The Finance Department has reviewed the existing departmental organizational structure and determined that the department could be reorganized to be more effective and efficient while also becoming more cost effective. Analysis:The goals of evaluating the current organizational structure are to create a more efficient and effective department, in the most cost effective manner possible. As the nature of governmental finance has become more sophisticated with the enactment in the recent years of several significant GASB Pronouncements (GASB 34 - Financial Statements, GASB 43/45 OPEB Reporting, GASB 54 Fund Balance Reporting) and the additional regulatory and reporting requirements imposed by other governmental entities (Federal and State) it is imperative that we retain and hire staff with experience in governmental finance. In the past we have been able to hire entry level personnel and provide training, we are no longer able to afford the luxury of being a training ground for others. As part of 2010 budget process, the finance department’s organizational chart was reviewed to determine what if any savings could be found. After a detailed review it has been determined that by upgrading several positions and eliminating several entry level positions the overall salary budget would be reduced. Again, this plan will allow our department to operate more effectively and efficiently. As part of the re-structuring, the proposed organizational structure includes the elimination of 3 positions, the altering of 15 positions and the addition of 1 position. The 3 positions that are being eliminated are entry level and are currently unfilled. Reclassifications and pay grades have been reviewed and approved by Human Resources. Revised job descriptions are on file with the Human Resources department. Financial Impact:A cost savings of $75,724 to the general fund. Alternatives:Do not approve reorganization, losing the cost savings while hampering the efficiency and effectiveness of the finance department Recommendation:Approve department reorganization Funds are Available in the Following No additional funds required, this is a cost savings Cover Memo Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Augusta Georgia Finance Department Proposed Position Reclassifications Current Position Current Grade Current Salary Proposed Position Proposed Grade Grade Entry Level Proposed Salary Salary Increase Finance Accountant I 47 39,143 Financial Analyst I 53 52,099 52,099 12,956 Accountant II 46 36,917 Accountant I 47 35,904 42,455 5,538 Accountant II 46 42,860 Accountant I 47 35,904 49,289 6,429 Accountant I 47 51,656 Financial Analyst I 53 52,099 59,404 7,748 Assistant Director 59 70,874 Deputy Finance Director 61 78,531 81,505 10,631 Accounting Accountant III 44 45,394 Accounting Manger 52 49,494 52,203 6,809 Payroll Payroll Supervisor 48 47,929 Payroll Manager 52 49,494 55,119 7,189 Total 57,301 Funding for Reclassification: Elimination of 3 Authorized Positions Salary and Benefits for 4 Accountant II Positions 133,025 Reclassification increase 57,301 Total Savings to General Fund 75,724 When an employee is reclassified into a new position the new salary is either the pay grade minimum or 15% increase from current salary which ever is greater. This is in accordance with the guidelines set forth in the employee handbook. Attachment number 1Page 1 of 2 Augusta Georgia Finance Department Proposed Position Reclassifications Current Position Current Grade Current Salary Proposed Position Proposed Grade Grade Entry Level Proposed Salary Salary Increase Risk Management Risk Mgmt Manger 55 63,129 Risk Mgmt Manger 55 69,442 6,313 Secretary 39 32,477 Admin Assistant I 43 27,674 37,349 4,872 Claims Assistant 42 28,681 Claims Coordinator 45 32,404 32,983 4,302 Claims Adjustor 48 44,138 Claims Adjustor 51 44,081 50,759 6,621 WC Coordinator 43 33,006 WC Supervisor 48 37,797 37,957 4,951 Loss Control/Training Officer 49 46,462 Loss Control Officer 53 52,099 53,431 6,969 Trainer/ Safety Officer 44 33,500 Safety Officer 47 35,904 38,525 5,025 Fleet Fleet Manager 55 64,383 Fleet Manager 55 70,821 6,438 When an employee is reclassified into a new position the new salary is either the pay grade minimum or 15% increase from current salary which ever is greater. This is in accordance with the guidelines set forth in the employee handbook. Attachment number 1Page 2 of 2 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa OOrrggaanniizzaattiioonnaall CChhaarrtt -- CCuurrrreenntt Finance Director (Donna Williams) Assistant Director - Fianance Assistant Director - Accounting Risk Management Manger Fleet Manager Administrative Assistant Attachment number 2Page 1 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa FFiinnaannccee DDiivviissiioonn -- CCuurrrreenntt Assistant Finance Director Financial Analyst Financial Analyst I Grants Coordinator Accountant I Accountant I Accountant I Accountant I Accountant II Accountant II Accountant II Accountant II Accountant II Accountant II Attachment number 2Page 2 of 5 Attachment number 2Page 3 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa RRiisskk MMaannaaggeemmeenntt DDiivviissiioonn -- CCuurrrreenntt Risk Management Manger Senior Claims Adjustor Claims Assistant Workers Comp Coordinator Loss Control Officer RM Safety Officer Secretary I Attachment number 2Page 4 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa FFlleeeett DDiivviissiioonn -- CCuurrrreenntt Fleet Manager Administrative Assistant Attachment number 2Page 5 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa-- PPrrooppoosseedd Finance Director (Donna Williams) Deputy Finance Director Assistant Director -Accounting Risk Management Manger Fleet Manager Administrative Assistant Attachment number 3Page 1 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa FFiinnaannccee DDiivviissiioonn Deputy Finance Director Financial Analysts Budget Coordinator Financial Analyst I Grants Coordinator Financial Analyst I Accountant I Accountant I Budget and Training Liaison Accountant I Accountant II Accountant II Accountant II Attachment number 3Page 2 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa AAccccoouunnttiinngg DDiivviissiioonn -- PPrrooppoosseedd Assistant Director -Accounting Payroll Manager Payroll Technician Payroll Technician Accounting Manager Accounts Payable Accounting Technician III Accounting Technician III Accounting Clerk II Accounts Recievable Accounting Techician I Accounting Technician I Attachment number 3Page 3 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa RRiisskk MMaannaaggeemmeenntt DDiivviissiioonn -- PPrrooppoosseedd Risk Management Manger Senior Claims Adjustor Claims Assistant Workers Comp Supervisor Loss Control Officer RM Safety Officer Administrative Assistant Attachment number 3Page 4 of 5 FFiinnaannccee DDeeppaarrttmmeenntt,, AAuugguussttaa GGeeoorrggiiaa FFlleeeett DDiivviissiioonn --PPrrooppoosseedd Fleet Manager Administrative Assistant Contract Fleet Management Positions Quality Assurance Fleet Specialist Operations Manager General Manager Shop Supervisors (3) Attachment number 3Page 5 of 5 Finance Committee Meeting 3/8/2010 1:15 PM Motion to approve 2009 Indirect Cost Allocation Study Department:Finance Department Caption:Motion to approve 2009 Indirect Cost Allocation Study to be performed by KPMG. Background:The Georgia General Assembly House Bill 491 mandates Indirect Cost Studies be performed for local governments with expenditures totaling $10 million or more. This study provides the basis of the budget for the allocation of costs to all funds receiving services from the General Fund. The city previously entered into a contract with KPMG allowing for extensions in one year increments. Analysis:Since KPMG computed the allocations for Augusta last year, we enjoy some efficiency in that the groundwork for the study is in place and only updated financial information needs to be collected and entered. KPMG will prepare the OMB Circular A-87 Cost Allocation Plan and a Full Cost Allocation Plan. The plans will utilize 2009 actual costs and will provide calculations acceptable to federal regulations pertaining to FAA and HCD guidelines. The Full Cost Plan will contain administrative costs which are not allowable under Circular A-87. Financial Impact:Total professional fees will not exceed $28,500. The City will be invoiced for 50% of the fee thirty days after fieldwork begins, 25% upon issuance of the draft report and 25% upon issuance of the final report. Alternatives:None. This report, mandated by House Bill 491, is required for Augusta City Government. Recommendation:Approve KPMG to update the Indirect Cost Allocation Plan. Funds are Available in the Following Accounts:101-01-5120/52-11110 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Finance Committee Meeting 3/8/2010 1:15 PM Renewal Worker's Compensation Excess Insurance Department:Finance/Risk Management Division Caption:Approve Excess Worker’s Compensation Insurance with Safety National Casualty Corporation with Statutory limits and a $600,000 SIR (self insured retention; otherwise, known as the deductible) for a premium of $176,038. Background:Excess Workers Compensation coverage (a per occurrence policy) has been purchased in the past as a measure to cap any potential catastrophic loss against Augusta-RichmondCounty. Knowing that this area of the industry is still quite volatile and premiums continue to rise, Georgia Administrative Services (G.A.S.) our Third Party Administrator for Worker's Compensation, was asked to obtain quotes from at least 3 insurance companies. G.A.S. has received the responses from A or A+ companies. See attachment for bid summation. Analysis: Financial Impact:Augusta would assume all financial responsibility up to the SIR limit of $600,000 for each occurrence. Alternatives:Drop coverage accepting full exposure/cost of any catastrophic injury. Recommendation:Approve coverage with Safety National Casualty Insurance company with a Self Insured retention of $600,000 with Statutory Limit for a premium of $176,038.00. Funds are Available in the Following Accounts: 621 01 5233 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Attachment number 1Page 1 of 4 Attachment number 1Page 2 of 4 Attachment number 1Page 3 of 4 Attachment number 1Page 4 of 4