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HomeMy WebLinkAboutDepartment of Administration and Finance 2016 Annual Report Department of Administration & Fin Filed in Clerk's Office 2016 Annual Report MAY 15 2017 Top Achievements during 2016: I(AREEMAH FOWLER Strong Inclusive Economy CITY CLERK,SOUTH BEND,IN o The Purchasing Manager participated in the Indiana Department of Administration Women's Business Conference by hosting lunch and networking with Indiana Department of Administration (IDOA), Michiana SCORE, St. Mary's College Women's Entrepreneurship Initiative, Center for Women's Intercultural Leadership, and the U. S. Small Business Administration (SBA). All Residents Empowered with Education, Mobility, and Technology • The Human Rights Director and the Commission Staff worked the Martin Luther King Day Celebration by manning a booth answering questions and passing out literature concerning the Human Rights of residents of Saint Joseph County. • Human Rights continued to offer scholarships to three college-bound students that participated in the Annual Human Rights Awareness Day Recognition Luncheon and Fair Housing Workshop. The top three essay writers received scholarships valued at $2,500, $2,000 and $1,500 respectively. • The Human Rights Commission continues to promote Study Circles and a Little Taste of Peace throughout the year. • The Human Rights Commission sponsored a training at the Century Center concerning LGBTQ issues in employment. The Equal Employment Opportunity Commission provided the speaker. • The Human Rights Commission provided training for the Community Homebuyers Corporation First Time Homebuyers Post Purchase class. The training dealt with discrimination in housing and employment. • The Commission Director held training sessions for a Saint Mary's Human Resources Class, an American National University Human Resources Class and to the Jefferson Intermediate School Diversity Club. The Commission also works with troubled youth at Clay High School. • The Commission continues to work with the Michiana Human Rights Initiative to celebrate the United Declaration of Human Rights. A program was held at Indiana University at South Bend on December 10, 2016. This is an annual event that is held on December 101h every year. Professor Darryl Heller was the keynote speaker. 1 Department of Administration & Finance 2016 Annual Report • The Human Rights Commission continued to produce its' quarterly newsletter. The newsletter contained articles on current decisions concerning human and civil rights. It also contained information on upcoming events that the Commission was involved in. • The Commission continued to work with the County Council concerning passing a human rights ordinance in the county. The purpose would be to eventually have one county wide agency. Council persons Diana Hess, Mark Catanzarite and Rafael Morton sponsored the bill. • The Human Rights Commissioners received two trainings in 2016. The trainings dealt with Sex discrimination in Housing and Employment. The new Diversity and Inclusion officer also spoke with the Commissioners on the value of diversity. • The Human Rights Commission investigated (closed) 104 cases during FY 2016. Nine (9) of those cases resulted in probable cause findings. Seventy-two (72) of those cases resulted in no probably cause findings. The Commission recovered $66,646 for its clients. The Human Rights Commission handled over 3,500 inquiries during 2016. Non-jurisdictional cases totaled 637. Well-Governed and Administered City Great Employer with Great Employees • Safety & Risk closed 297 workers' compensation claims during 2016 compared to 244 claims during 2015. Safety & Risk will increase training in departments seeing higher than usual claims in order to reduce injuries in the future. • Human Resources and committee members from various City departments presented the third annual City of South Bend Women's Leadership Conference in September with over 120 participants and focusing on the City's core values. Distinguished speakers included Mayor Pete Buttigieg and Christina Brooks from CoSB, Lawrence Greenspun from Drucker Playbook, Tania Bengtsson from Gibson, Norma Williams from Norma & the Painters/TedX Speaker, and Jewel Abram-Copenhaver from Beacon Academy. • Human Resources hosted the third Veteran's Day Celebration for City employees in November. 2 'r Department of Administration & Finance 2016 Annual Report • The City's new Employee Health & Wellness Center opened for employee use in January. Located at 320 Dr. Martin Luther King Jr. Blvd, Ste. 300, the clinic recorded a total of 5,563 appointments including 776 unique employee appointments. • Human Resources conducted Supervisory Training in September. • In conjunction with open enrollment for health insurance, human resources planned and hosted a Health Fair for City employees and their families in November. Enduring Financial Strength • A high credit rating of"AA" with Standard and Poor's was maintained during 2016. South Bend has one of the top city bond ratings in the State of Indiana. A bond rating of AA+ was received from Fitch Rating Services on South Bend Redevelopment Authority Debt during 2016. • Working with the Mayor's Office, Common Council, department heads, fiscal officers and others, prepared and received passage of the 2017 City of South Bend budget that contains funding for priority projects of the City. This budget contains five-year operating and capital plans as recommended by the Government Finance Officers Association (GFOA) and credit rating agencies. Also began incorporating Priority Based Budgeting that is allowing the City to look at the budget through a new lens to ensure we are spending tax dollars with specific results in mind. • The Finance Department solicited and closed on three capital lease financing proposals for City vehicles and equipment during 2017 in the amount of$8.7 million for a variety of public safety, public works and other city vehicles. Multiple financing proposals were received for each lease financing from local and national companies with an interest rates of 1.498%, 1.522% and 1.598% on the transactions. • The City realized savings from a bond refunding of$160,657 on a net present value basis from the 2016 Waterworks Bond Refunding during 2016. A total of$9,067,367 in bond refunding savings has been realized since Mayor Pete assumed office in 2012. Excellent Services and Efficient Processes o The Payroll Department issued approximately 41,000 regular and pension payroll checks during 2016 over the course of 26 pay periods for regular payroll and 12 pay periods for pension payroll. All payroll accounts had a zero balance as of January 1, 2017 which means that they were properly reconciled. 3 Department of Administration & Finance 2016 Annual Report • Payroll issued approximately 2,000 W'2s and 400 1099Rs by the deadline of January 31, 2017. • The Purchasing Manager monitored and approved over 7,000 Purchase Orders including blanket purchase orders and emergency purchase orders representing a value in excess of $67,000,000. • The Purchasing Manager offered on-site departmental training regarding the City's procurement system and the Indiana Code (Section 5 and 36) requirements for departmental employees. • Worked alongside Innovation and many other Department representatives to implement the Kronos Timekeeping System. Model of our Values (Excellence, Accountability, Innovation, Inclusion, and Empowerment) • The City of South Bend received the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association (GFOA) for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2015. This was the 26th consecutive year that the City of South Bend has received the award. • The City of South Bend received the Popular Annual Financial Reporting Award (PAFR Program) from the Government Finance Officers Association (GFOA) for the fiscal year ended December 31, 2015. This was the 11t year that the City of South Bend has received the award. • The City of South Bend received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for its 2016 Budget. This was the 2nd year the City had received the award. • The Department prepared new a new Internal Controls Ordinance that was adopted by the Common Council to promote greater accountability. • The Monthly Cash Reserves Summary Report and Monthly Financial Report were issued by the 15th day of each month and also posted to the City website. • The Monthly Controller's Report was issued by 10th of the month in most months and posted to the City website. i i 4 Department of Administration & Finance 2016 Annual Report • Cecil Eastman, current Venues, Parks and Arts Director of Financial Services earned his Certified Public Finance Officer (CPFO) designation which sets him in a select group of approximately 500 accounting professionals in the United States earning this distinction. • The Deputy City Controller was elected President of the Indiana Municipal Finance Officers Association, the Indiana Chapter of the GFOA. • The Department published a Fiscal Dashboard of key financial metrics for the City of South Bend. Reliable Compliance with Regulations and Well-Managed Risk o Overall worker's compensation costs incurred were $584,299 in 2016 which compares to $530,825 in 2015 and a recent high amount of$598,932 in 2007. Higher claims were experienced in the Police and Fire Departments. Therefore, more safety training will be provided to these departments in 2017. o Had a slight increase in worker's compensation claims reported but less medical treatment and more reporting-only claims. This is expected with new initiatives in healthier employees in public safety and more strenuous training to accomplish departmental goals. o The City's lowest vehicle crashes in 2016 of only 13 reported incidents. This is the lowest rate in more than 16 years. o Safety & Risk conducted more than 280 facility, procedure and property audits in 2016. Effective, Responsive Leadership and Communication • Transitioned all Finance Directors (6 in total) to the Department of Administration and Finance in order to have a better control over the finances of the City. • The Purchasing Manager participated in the Board of Public Works contract review and approval processes by reviewing and preparing documents for the Board's review, and attending all meetings to support the department's requests. • The Purchasing Manager mentored the newly formed Venues Parks Arts (VPA) division on the ability to re-organize and bid key maintenance agreements to include all requirement of VPA properties. This resulted in centralizing agreements for HVAC and Recycling Trash. Many other agreements are in process. 5 Department of Administration & Finance 2016 Annual Report • The Purchasing Manager transitioned the administrative activities concerning the Diversity Program and the related Ordinance to the newly appointed Diversity Inclusion Officer. Purchasing Manager continued to participate in purchasing strategy meetings regarding diversity and inclusion in the purchasing process. • The Human Rights Commission started planning to work with the new Diversity and Inclusion Officer and Human Resources concerning training for city employees. • All employees involved in any financial aspect of the City government were required to view online internal controls training based on a mandate from the State Board of Accounts. All departments complied by February 28, 2017. Strategic Goais for 2017 Model of our Values (Excellence, Accountability, Innovation, Inclusion, and Empowerment) • Continue with a commitment to transparency and accountability disclosing financial reports and financial transaction details via website/portal. • Continue to work through the Priority-Based Budgeting method with all City Departments, to ensure City dollars are being budgeted according to priorities which are important to the administration and the citizens of South Bend. The 2018 budget will place heavy consideration on the outcome of the efforts of the Priority Based Budgeting exercise. • The Department of Administration and Finance Division of Central Services and Purchasing will focus on assisting the City departments to: • Achieve best practices and process improvements • Achieve optimal efficiencies in purchasing practices • Support the Indiana Code on Procurement Activities. Important Initiatives for 2017 Great Employer with Great Employees • Educate and promote excellence in departmental fiscal officers through a variety of methods including bi-monthly fiscal officer's meetings that contain an educational component. • Host a Fourth Annual Veteran's Day Celebration. 6 Department of Administration & Finance 2016 Annual Report • Release updated Employee Handbook. • Develop and implement Policy and Procedure Manual. • Developing an expanded new employee onboarding program to assist new hires in adapting to expectations and demands of new employer, providing a more immediate and comprehensive understanding of the City's operations and functions, as well as workplace rules and expectations. • Continue to promote the use of interns in the areas of finance, human resources, information technologies and other departments to access good talent on a temporary basis and to expose potential new employees to the City of South Bend. • Provide a good work environment for all current and future staff members that is supportive of their desire to be successful and is consistent with the Administration's missions and values. Enduring Financial Strength • Continue to maintain adequate cash reserves per City of South Bend policy and industry standards. Continue preparing a monthly report of cash reserves by the 15th of the month and posting it to the City website. • Continue to promote best practices in municipal budgeting including continued integration of five-year operating and capital plans, the use of Performance Management in budgeting and priority-based budgeting. • Review investment results with 15t Source Bank on a regular basis with financial advisors at quarterly investment review meetings that contain external benchmarks. • Review all existing benefit plans and evaluate potential options. Excellent Services and Efficient Processes o Reorganizing a Centralized Purchasing division along with Central Services in order to create efficiencies through process improvement as well as cost savings through consolidated agreements. This new Division under Administration & Finance will be the Division of Central Services and Purchasing. This reorganization will improve business models and methods allowing for: Department of Administration & Finance 2016 Annual Report o Excellent Customer Service • High Customer Satisfaction • Exceptional Customer Value • High Degree of Usable Data o Maintain quick turnaround times regarding departmental requests, APRA requests and purchase order changes. o Move more safety training and reporting to city's webpage for easier employee access. Reliable Compliance with Regulations and Well-Managed Risk • Prepare a consolidated Internal Controls guide for all City employees who handle cash and checks. • Reduction of Workers Compensation costs and incidents in 2017 as compared to 2016. • Shift the Safety Culture to achieve lower numbers of incidents and costs through supervisor safety training to focus on changes with our current culture. • Update programs to support a safer culture and a centralized program for business contingency plan. Effective, Responsive Leadership and Communication • The Purchasing Manager continues to participate in the Board of Public Works and the Park and Recreation Board's contract review processes to achieve an efficient procurement system while complying with South Bend Policy and Indiana Code. • Continue in leadership roles in the Indiana Municipal Finance Officers Association to enhance the overall knowledge and understanding of local governmental finance. • Continued outreach to area accounting students at local universities, including Indiana University South Bend and the University of Notre Dame, encouraging students to consider a career in public finance and with the City of South Bend. 8