city of franklin, new hampshire financial consolidation recommendation

City of Franklin, New HampshireFinancial Consolidation Recommendation

Background In 2012, Members of the Council and of

the School Board asked both Business Administrator O’Neill and Finance Director Milner to look into the feasibility of financial services consolidation

In 2015, SAU Withdrawal Committee asked what savings might be from financial services consolidation

Expected Benefits Effective use of talent Efficiency Accountability Transparency Support Cohesion Consistency

Expected Results Timely Reporting

Tax rate Borrowing Grants

Cross trained staff Same accounting rules Room for professional growth

Expected Results, cont One point of accountability City Wide

Growth in Service (utilizing the talent we currently have) Consistent, reliable services City Wide Services not currently provided (but

should be) Both Municipal & School District

Process to date Brainstorm (Mike O’Neill & Judie Milner) Reassess (Amanda Bergquist & Judie

Milner) Current staff duties Evaluated overlap/redundancies Evaluated internal controls Combined into proposed new positions Budget

Current Configuration Municipal Finance Department

Finance Director

Accountant

Finance Assistant

Current Configuration SAU

Superintendent

Grants Mgr

Business Administrator

Payroll

Accounts Payable

Secretary

Secretary

IT Director

Secretary

Proposed City Wide Financial Services Org Chart

Finance Director

Grant Administrator Accounting Manager

Accountant

Accounts Payable

Coordinator

HR Generalist

Payroll Coordinat

or

Proposed SAU Operation Chart (Assumes Withdrawal from SAU18)

Superintendent

IT Administrator Secretary Secretary

Proposed Hill Solution (assumes Franklin Withdrawal from SAU18)

Superintendent (Combined with Principal)

Bookkeeper (secretary from SAU)

Contracted BA (MRI-15 days per year)

Proposed SAU Operation Chart (assumes Franklin does not withdraw from SAU18)

Superintendent

IT Administra

tor

Bookkeeper/

Secretary

Secretary

Secretary

General Duties Finance Director – directly supervised by City

Manager and Superintendent Supervises department, EE performance reviews Accounting System Admin Budget Internal controls, policies/procedures DOE/DRA reporting, tax rate setting Payroll & Financial Statement Audit Oversee food service, school bldg & grounds,

transportation

General Duties Accounting Manager-directly supervised by

Finance Director Day to day supervision of payroll, accounts

payable, accounts receivable functions Financial statement preparation Cash Recon Trustee of Trust Funds coordinator GL warrants Audit accounts payable Reconcile City Clerk/Tax Collector

General Duties Grants Administrator-directly supervised

by the Finance Director Seek/apply for grants City Wide Single Audit Liaison Administer all grants

School districts SAU Municipal Contingent grant line

General Duties HR Administrator-directly supervised by

Accounting Manager & Finance Director All EE benefits FMLA & Leaves PR issues Payroll to general ledger reconciliation Payroll liability reconciliation W-2, 941, NHRS reconciliations Payroll exceptions, union contract

implementation

General Duties Payroll Coordinator-directly supervised by

Accounting Manager & Finance Director Payroll input and processing Payroll vendor bill processing & recon Benefits support New Hire packets Risk Management central coordinator NHRS reporting Unemployment reporting

General Duties Accountant-directly supervised by

Accounting Manager & Finance Director General ledger account reconciliations Inter fund transfers Budget review Capital Assets Centralized contract management RFP/Bid manager Approve Purchase Orders Cash Receipts

General Duties Accounts Payable Coordinator-directly

supervised by Accounting Manager & Finance Director Accounts payable input and processing Purchase order processing and recon Inventory Account Receivable Billing Central City Wide credit card coordinator Assist in grant reporting

Employee Logistics Finance Director supervised by City Manager

and Superintendent Staff directly supervised by Finance Director –

All City employees pay & benefits Central location – City Hall – employees work

closely together and cross trained Utilize one accounting system – efficiency

allows for additional services No proposed reduction in number of positions;

most employees will see an increase in pay

Project Scheduleo Minimum of 6 month lead time to live

date needed for successful implementation

o Will incur some one time costs, specifically software purchase and/or conversion

o See attached complete project schedule

o Continued positive support from all appreciated

Preliminary Budget SavingsItem SAU Withdrawal No SAU

Withdraw

Wages & Benefits 14,000 14,000

Software Support 5,000 5,000

Audit Services 22,500 15,000

Treasurer 1,905 1,905

Hill Bookkeeper 54,000 0

Legal Services 14,000 0

Interest on Note 1,500 1,500

Preliminary Totals

112,905 37,405

Budget Savings, continued Smaller savings will likely occur in

Rental Repair/maintenance Postage Books Dues Etc Need more information to split SAU

budget for these items

Questions?