FMS BP Base 8-2-10

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					                                Coordination Draft - Not for Distribution
                         Financial & Management Services Business Plan 2009-2014




                                                                Note: This is an incomplete draft
                                                                document for coordination purposes.
                                                                Most work in the lines of business

Financial &                                                     are complete but the core plan has
                                                                not been fully compiled.
                                                                This is provided as a reference


Management
                                                                document during the draft process
                                                                Completion is expected by end of
                                                                September, 2010.
                                                                Contact Tom Nosack if you have


Services
                                                                questions (360) 619-1074
                                                                tom.nosack@ci.vancouver.wa.us




                                                        Draft
                                                        Business Plan



                                                      Chief Financial Officer

                                                                   Lloyd Tyler




Version: 1.5
August 12, 2010


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                                         Introduction
This business plan is intended to meet a number of needs

         1. To identify our major priorities and service levels, then determine how we are
      doing against our measures of success

         2. To document and verify our major processes, improving or simplifying them were
      opportunity exists

            3. To help prepare us for the future.


In 2009 and 2010, the third goal has been the most difficult, As the country entered the
Great Recession, municipalities in Washington State were hit particularly hard with high
unemployment rates and expected municipal revenue that did not materialize. As a city, our
expenses climbed faster than our revenue and it became necessary to restructure the city to
be much smaller and more focused on key outcomes and reduced service levels in many
cases.

This plan is being published before we completely emerge from the restructuring process,
because it is not certain when that emergence will occur. Our staff has been working on this
project for over two years during the same time as the restructure is occurring; The City
has already cut more than 10% of its workforce in fewer than 2 years, while changing some
basic organizational structure.

Over the next year exciting changes will continue to occur, and we will emerge a better
organization for it.



About the plan:

      The process is neither simple nor direct, but it is worthwhile if approached with a focus
      on our ultimate customers’ needs. A few key notes and findings from our process:

      a. FMS works for a variety of customers both internally and externally, but our
         departmental focus will always be to…

      b. Our focus below department level within the lines of business was on documenting
         existing processes, improving internal operations, and establishing basic
         performance measures. These are the area of highest importance to me as we build
         a solid foundation.

      c. Our focus at department level was is to become more consistent with how we do
         business, and more closely align our processes with industry standards for financial
         operations and management.




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                                               Index

INTRODUCTION                                                                              2

INDEX                                                                                     3

SECTION I: DEPARTMENTAL SUMMARY                                                           4
A. Vision: How do we want to be seen?                                                     4
B. Mission: How will we accomplish our vision?                                            4
C. Objectives & Priorities                                                                4
D. Organization & Staff                                                                   5
E. Lines of Business                                                                      6
F. Location of Services                                                                   6
G. Key Customers                                                                          7
H. Guidance & Assumptions                                                                 7
I. CFO’s View of the Future                                                               8
J. Departmental Financial Summary Data                                                    9
K. Key Outcomes and Performance Measures                                                  9
L. Sample Cost of Services                                                               10
M. Progress in Efficiency, Effectiveness, Cost Savings and Sustainability                11
N. Continuity of Operations                                                              11
O. Major Issues, Analysis & Recommended Solutions                                        12
Q. Future Issues                                                                         14


SECTION II: LINES OF BUSINESS                                                            15
LOB 1: Accounting                                                           pg 1-1       15
LOB 2: Budget & Forecasting                                                 pg 2-1       15
LOB 3: Procurement                                                          pg 3-1       15
LOB 4: Treasury & Cash Management                                           pg 4-1       15
Other Activities                                                            pg 5-1       15




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Section I: Departmental Summary

A. Vision: How do we want to be seen?
We will be known as a city that operates as an exceptionally well run business with satisfied
customers and stakeholders.



B. Mission: How will we accomplish our vision?
We are dedicated to providing timely, high quality financial and analytical services in a positive,
professional, and cooperative manner to all of our customers. We will establish then maintain a
high level of trust, and always be sensitive to our customers’ needs.

The Financial & Management Services department is a lean support organization that serves
two major functions:

b. We provide residents and businesses of Vancouver with a city government that is financially
sound and diversified, supporting the community vision of the future while meeting our current
needs within available resources.

a. We provide internal stakeholders with quality, cost-effective financial and analytical support


C. Objectives & Priorities
Our top priorities over the next 2 to 3 years

1. Maintain our investment and debt portfolios to provide the best return on investment
   possible commensurate with appropriate risk.

2. Help the city identify ways to fund key services beyond the current biennium and
   address the structural financial issues that continue to worsen.

3. Find ways to fund a consistent capital improvement and replacement program,
   including Facilities and Transportation

4. Incorporate performance management, analysis and reporting as a baseline activity
   that informs our management decisions on at least a monthly basis

5. Tie budgets to performance for our customers to improve the budgeting process

6. Find new “leading edge” ways to operate more effectively and provide greater value to
   our customers




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7. Continue to aggressively pursue technology as a means to provide additional capacity
   without adding personnel – where the ROI supports it. Maximize the use of our core
   systems and minimize non-standard, strand-alone software.



D. Organization & Staff
   As of July 1st, 2010, FMS has a total of 38 FTEs budgeted in the General Fund,
   and 6 FTEs budgeted in other funds. Our organization is depicted below.


Name                                     Position                     FTEs (management)
Lloyd Tyler                              CFO/FMS Manager              1.0     (1.0)
Personal Staff                           Auditor/Performance Analyst 2.0
LOB 1: Accounting, Payroll & A/P         various                     14.0     (3.0)
LOB 2: Budget                            various                      4.0     (1.0)
LOB 3: Treasury, Cash Mgt & A/R          various                     14.0     (2.0)
LOB 4: Procurement                       various                      7.0     (2.0)
Total                                                               42.0      (9.0)

Management ratio (city goal: 1:7 or greater)                          1:4.7




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E. Lines of Business

Depending on their size, span, and mission, organizations may be lines of business (LOB),
programs, services or activities (in decreasing size). In general: If no more than one person or
FTE is doing it, you are probably looking at an activity. To see definitions of each, look in the
business planning guide, pages 19-20.

      -     LOB 1: Accounting Group
              • Program A: Accounting
              • Program B: Payroll Services
              • Program C: Accounts Payable
                       Activity: Payable Services
                       Activity: Travel Program Administration

      -     LOB 2: Budget & Forecasting Services
              • Program A: Operational Budgeting
                      Activity: Capital Budgeting
                      Activity: Performance Tracking and Reporting
                      Activity: Financial Forecasting

      -     LOB 3: Procurement Group
              • Program A: Purchasing
                       Activity: Procurement Cards
                       Activity: Professional Service Agreements
                       Activity: Goods, Services & Equipment Purchases
                       Activity: Public Works Contract Administration

      -     LOB 4: Treasury & Cash Management
              • Program A: Customer Services & Cash Management
              • Program B: Accounts Receivable & Business Licenses
              • Program C: Treasury Services
              • Program D: Departmental Admin Support

      -     Separate Activities
                       Activity A: Internal Audit
                       Activity B: Performance Analysis and Management


F. Location of Services

FMS is currently located in the Esther Short City Services Building at 610 Esther
Street in downtown Vancouver. The building is leased by the City and is shared
with other internal services. Movement to the new City Hall building at 415 West
6th Street will be complete before mid-2011.



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G. Key Customers

FMS is generally an internal service organization; depending on the division,
anywhere from 65% to 100% of our focus is to provide the city’s departments with
financial and analytical support.

 Fund/Customer                  Summary   Accounting   Budget      Procurement     Treasury
 External Customers                             17%          5%            35%
   Walk-in public1                    %          0%           %             4%           %
   Call-in public1                    %          0%           %            27%           %
   Mail-in/email public1              %          0%           %            53%           %
 Total Public                                   17%          4%
  Other municipalities                %          0%          1%              0%          %

  Internal Customers                            83%         95%             65%
  City manager                                              35%
   Parking Services Fund            %             -%           %           1.7%           %
   Building Fund                    %             6%           %           2.7%           %
   Water/Utility Fund               %           19%            %          12.2%           %
  Parks & Recreation                %           13%            %          13.8%           %
   Transportation Fund              %           18%            %          14.5%           %
   Trans Spec Rev Fund              %             -%           %              -%          %
   General Fund                     %             -%           %          40.9%           %
   Unknown/Other                    %           14%         60%           14.2%           %
  Total                                         100%       100%             100%      100%
*This is a summary of the information reported by each LOB within the department
1
  External customers (when served) are still captured by the fund in “internal customers” too.


H. Guidance & Assumptions

Area Growth: The city is currently 49.5 square miles. Annexations will add minimal acreage
over the next two years.

Population Growth: 2010 Population is 165,500 based on Washington State Office of
Financial Management (OFM) data. Population will grow at 1.4% per year for the next five
years within existing city limits, for a population of 170,000 by 2015.

Fiscal Assumptions:
   a) Baseline operating costs will continue to increase faster than inflation, a condition called
       a financial “structural imbalance”.
   b) While revenue will improve, it will not be sufficient for all identified needs. The city will
       continue to seek ways to address this problem, through a combination of expense cuts
       and revenue increases.


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      c) As part of the City’s “Horizons” program to balance the budget using a Priorities of
         Government (POG) model, we expect significant cuts in personnel and services.
      d) We will focus on “unburdening” General Fund to the degree possible by ensuring it is
         not paying for expenses that should be borne by other funds.

Council Guidance:
   a) Council/CMO guidance is to focus on core missions and determine what is needed to
      operate at maximum efficiency while addressing key service issues.
   b) Put your efforts toward meeting existing performance standards.
   c) Do not raise service standards beyond what now exist.
   d) Do not add new services unless directed to do so by council.
   e) Add new capacity only to meet existing standards in areas of geographic expansion or to
      meet documented current shortfalls.

City Manager Guidance:
   a) There are a few key things that should be transparent to the reader of your business
      plan, which includes the Council and general public.
          1) Who we are,
          2) What we do,
          3) How we do business,
          4) How we make decisions, communicate and prioritize; and
          5) How we are accountable.
   b) Interdepartmental causes and effects are important.
   c) Clearly show what the needs are over the next few years, and how they were
      developed.

Service Levels: Existing service levels for most city services adequately meet most
needs of the residents.


I. CFO’s View of the Future

(TBD – by Lloyd)
- Structural financial issues addressed?
- Capital refreshment program?
- Transportation and public safety funding?
- More with less?
- Ec Dev how it will look?
- How we will do our work?




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J. Departmental Financial Summary Data

As of: January 2010

             Line of Business or program                           % of time            Cost to provide                       Notes
                                                                    (FTEs)                 service*
e. CFO & Other                                                        (3)                   $402,843
CFO                                                                    1                     163,522
Internal Audit                                                         1                     104,499
Performance Analysis                                                   1                     134,822              Includes surveys

a. Accounting (LOB1)                                                    (14)                $1,413,824            See detail LOB 1
 Accounting Team                                                          6                  707,373
 Payroll                                                                  3                  271,019
 Accounts Payable                                                         5                  435,432

b. Budget (LOB 2)                                                       (5)                 $544,802              See detail LOB 2

c. Treasury (LOB 3)                                                 (16.05)                 $1,472,415            See detail LOB 3
 Manager - unallocated                                                  .5                    60,525
 Customer Service                                                     4.5                    383,536
 Accounts Receivable & Business Licenses                              6.0                    348,114
 Departmental Admin Support                                           2.80                   405,311
 Treasury                                                             2.25                   274,929

d. Procurement (LOB 4)                                                  (8)                 $707,382              See detail LOB 4

Total                                                   46.05                               4,541,266
*Cost to provide service is based on annual budget for 2009




K. Key Outcomes and Performance Measures

Consolidated Performance Snapshot
 White: No goal; Green: Fully met the goal; Yellow: Missed the goal, but are close OR provided limited service; Red: Clearly missed the goal OR a
 very bad trend; FPY = From Previous Year; up= change better;          down= change worse; ≤ is "less than or equal"; ≥ means "greater or
 equal"
 Outcomes and                                                                                                               Comment or
                                            Goal            2007               2008           2009           Change
 Performance Measures                                                                                                         Analysis
 The City is recognized for high standards of fiscal reliability, accuracy, and professionalism
                                                                                                                        Budget (GFOA), CAFR
 External recognition for                  3 area
 excellence                               minimum              3                  4              4           stable     (GFOA), Performance
                                                                                                                        (ICMA & AGA)
 The City has high bond                                  A1 (Moody’s)      A1 (Moody’s)     A1 (Moody’s)                Consistent through the
                                          A1 or A+                                                           stable
 ratings for GO debt1                                    A+ (S&P)…….       AA- (S&P)…….     AA- (S&P)…….                fiscal crisis
 All audits “unqualified” results        Unqualified      Unqualified         Unqualified    Unqualified
                                                                                                             stable
 with no findings                        No finding       No finding          No finding     No finding
 FMS operating expenses as a                                                                                            Excludes capital and
                                           < 1.5%            1.7%              1.06%          1.06%          stable
                                                                                                                        debt (034/035)
 % of City operating expenses


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 We report timely, accurate, and useful financial information to customers
 CAFR is to public w/in 195                                                                             Continuing to provide a
                                     195 days      201 days       184 days      181 days      stable
 days of year's end (July 15th)                                                                         timely CAFR
 1, 2 & 3 Qtr financial report       3 quarters                                                         All financial reports
                                     < 60 days
                                                       3              3              3        stable
                                                                                                        provided on time
 to public w/in 60 days of end
 4Qtr FY financial report to
                                       30-Mar       20-Feb         20-Feb         1-Mar       slower     On time
 public w/in 90 days of end
 Accurate revenue forecast for                                                                          Historic recession in
                                        ± 2%         1.7%           .2%           -4.8%                 2008/2009
 General Fund
 Accurate revenue forecast for                                                                           Historic recession in
                                        ± 2%         2.7%          -1.3%         -4.25%          3.2x
                                                                                                        2008/2009
 all operating funds
 Central Purchasing is effective
 Purchasing card (P-card)
                                      Work load     13,294         14,101         12,449        12%
 transactions handled
 P-card used for goods/service
                                      Work load     19.7%          15.8%         10.6%          33%
 purchase orders
 Consolidated, multi-year and          increase
                                         FPY
                                                      95            120            112           7%
 piggy-back contracts
 Dollar purchases per                  $9 to                                                            Significant increase in
                                       11.0M
                                                    $11.8M        $8.96M          $14.28         59%
                                                                                                        dollars per employee
 procurement FTE in $millions
 The City is fiscally well managed and responsible
 Total receipts for payment                                                                             Fewer payments
                                      Work Load   New 2008        72,699         64,712         11%
                                                                                                        includes parking
 processed by the city
 ROI is better than the Merrill
                                        ± .5%       +0.45         +2.31%         +1.24%       stable
 Lynch custom benchmark
 Percent of payments that are                                                                           transactions,
                                       increase
 processed through the                   FPY         9%             14%           16%            14%    2008 = 10,238
 remittance processor                                                                                   2009 = 10,186
 Internal audit items with
                                        ≥ 10           0             15             47          + 32
 savings or mitigated risks
 Our customers are satisfied
 Customer satisfaction 3 or                                        Due in
                                         ≥3           3.2                           3.1        stable
 better on 4 pt scale                                              2009
 Customer service comment                                                                               Number of cards in
                                       > 90%         98%            98%            97%         stable
                                                                                                        2009 = 332;
 cards, % "excellent" score
 Budgeted management ratio                                                                              Managers = 10
                                        ≥ 1:7        1:5.7          1:4.9         1:4.6          4%
                                                                                                        Total staff = 46
 on Dec 31 (mgrs: full-time staff)
*Note 1: The Government Finance Officers Association (GFOA) Budget award is given once every 2 years for a biennial budget and
counts as an annual award for each year.


Summary analysis of performance indicators:




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L. Sample Cost of Services
                                                                                 2008                          2009
a. Cost to process a walk-in cash payment to the City:                      $2.97 to $4.16            $2.79 to $3.90
(Cost varies with complexity – approximately 82,000 payments in 2007, 3.5 to 10 min per transaction in 2007. In 2008, 73,000
transactions processed, with an average processing time of 5 – 7 minutes. In 2009, 65,000 transactions processed, with an
average processing time of 5 – 7 minutes).

b. Cost to process a mail-in payment to the City:                                $0.22                         $0.22
(Using the automated remittance processor – approximately 302,000 payments per year, of these 10,200 were related to items
invoiced in FMS, the rest are utility payments. The cost per item is $0.11 per check and $0.11 per stub for clean mail. If the items
kick out of the machine for any reason, the cost increases to $0.18 per item or $0.36 if the payment includes both a check and a
stub).




Individual Performance Summaries by Lines of Business




M. Progress in Efficiency, Effectiveness, Cost Savings and Sustainability

See individual lines of business for this information




N. Continuity of Operations
The city must be able to maintain essential operations during a disaster.

1. What major functions are essential for us to maintain or reestablish in case of a disaster?

Accounting
Budget
Procurement
Treasury



2. What personnel or positions are essential to emergency operations?
See individual lines of business for this information



3. Where do I find our updated emergency procedures?
Accounting Manager, Janet Frank is custodian of Emergency Plan


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O. Major Issues, Analysis & Recommended Solutions

Issues come from two sources:

        a. each LOB has the list of issues that are most important to them but which they can
not solve with existing resources or authority. Some of these will be brought forward; others
will go in their “future issues” section for future action.

       b. The CFO has issues he considers important at FMS level that he will include. These
come from his own observations and from external sources (City Manager, Council, etc)

Issue 1: New or upgraded business software is implemented in the city without
fully integrating with the existing Oracle Financial systems.

Issue 1: Performance Management and the Biannual Budget are two separate
management tools that need to be clearly and effectively linked better than they
currently are.

Issue 3: Our internal customers are currently responsible for identifying, producing
and analyzing their own fiscal performance measures without our participation.

 (from snapshot – will need editing to reduce to the 4-6 most important ones)
1) Tie organizational budgets closer to performance
2) Identify the current revenue recovery from court system, and set improvement goal
3) Update parking permit process and include a web payment solution
4) Continue to improve functionality of Oracle financial system:
5) Issue new G.O. bonds – PW, Police, Fire, DRA refinancing (if market conditions permit)
6) Implement Phase II of the utility billing project including web payment solution and IVR


Issue 1: Our internal customers are currently responsible for identifying, producing
and analyzing their own fiscal performance measures without our participation.

Discussion: Departments spend a great deal of effort identifying data, requesting
or writing reports and generating the information they need to make decisions from
our financial systems. They lack much of the expertise needed, and it is often a
time consuming process for them.

FMS has financial staff that works with Oracle and the financial reporting tools
regularly. We are not a significant part of the financial reporting process at
department level for most organizations, and therefore do not provide the level of
value in this area that we could.

Conceptually, staff in the major areas of FMS could be trained and could be the
“owners” of data related to their areas for our internal customers:


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a. Accounting: Lagging fiscal performance measures (monthly, quarterly, annually)

b. Treasury: Current (daily, weekly, monthly) revenue measures

c. Budget: Leading (projected) fiscal measures (annually, longer periods)

d. Procurement: Current (daily, weekly, monthly) expenditure measures

This would require some training, coordination with customers, and changes to
work plans and possibly changes to a few job descriptions if it becomes a
permanent change in direction.


Issue 3: New or upgraded business software is implemented in the city without
fully integrating with the existing Oracle Financial systems.

Background:
One of the unintended side effects of new software implementations is that it
appears that we do not allow ourselves enough time to actually close the issues
affecting back office personnel; we continue to do work much as we did before the
software without being able to take full advantage of efficiencies it could deliver.
We get more information, but making sense of it is still a very manual process for
us.

We do not have the capacity for continuing to do repetitive manual matching type
of work that can be better done with a macro or more complete implementation of
an interface.

New or upgraded systems that interface or need to exchange information with
Oracle Financials. These include CLASS, Tidemark, Hansen, T2, Purchasing Cards,
Alarms systems and others. They are able to draw information from Oracle, but
require manual error checking or matching of reports to feed it back into Oracle.
Some transactions require accounting staff to print out three separate system
reports, manually match transactions and feed back the result, a very intensive
process.

The fixes, reports, and upgrades are prioritized after each new system is turned on,
and the highest priority ones are addressed – but many of the lower priorities (but
still manpower intensive) never move high enough on the list to get fixed. We still
have items on the “to be fixed” list from the original Oracle Financial
implementation in 2002.

New operational processes (not new software) result in more manual handling of
transactions that otherwise could have been or were automated. Adoption of a


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surcharge to the business licenses is an example; all business licenses were being
processed through the automated remittance processor until the surcharge was
adopted; once the surcharge was adopted, it no longer could run through the
processor and in fact required two manual transactions to complete the licensing
process.


Analysis:
a. One approach that may make sense is to “pause” some of the Oracle upgrades
and other IT and city-wide initiatives in the queue, raise the priority of “closing out”
the standing needs and use the staff resources to clean up the issues.

b. Another approach may be to organize a city level IT oversight committee that
reviews and coordinates schedules to allow closure of projects before embarking on
too many large new ones.

c. Consult with IT as a partner, and ask that it be included in their business
(Strategic) plan as a major issue to address.

There are undoubtedly other approaches, but in any case there is a significant, near
term need for these projects to be closed. This issue appears to exists with Oracle
and other complex systems we have implemented.

Recommendation:
Option C, with an additional recommendation that IT implement option A.

Q. Future Issues
Issues we do not plan to take action on for the next 2-4 years due to work priority,
resources, or currently low return on investment are listed below.




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                               Section II: Lines of Business

Lines of Business (LOB) are written as free standing components that can stand on
their own.

LOB 1: Accounting                                                           pg LOB 1-1
Accounting Team
        Fixed Asset Accounting
        General Ledger Accounting
        Internal Accounting
Payroll Services
Accounts Payable Team
        Payment Services
        Travel Administration

LOB 2: Budget & Forecasting                                                 pg LOB 2-1

Forecasting and Analysis
Budget Preparation and Support Services

LOB 3: Procurement                                                          pg LOB 3-1

Purchasing Team
       Public Works Contract Administration

LOB 4: Treasury & Cash Management                                           pg LOB 4-1

Customer Service Team
Accounts Receivable Team
Treasury Services
Administrative Support Team

Other Activities                                                            pg 5-1

Internal Audit
Performance Analysis and Management




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                                               Internal Audit Program
                                           Internal Auditor: Christine Smith, CPA, MBA


Table of Contents

    1. Purpose ......................................................................................................................... 1
    2. Goals ............................................................................................................................. 2
    3. Major Services................................................................................................................ 2
    4. Organization & Staff........................................................................................................ 2
    5. Major Processes.............................................................................................................. 3
    6. Key Customers ............................................................................................................... 3
    7. Financial Balance Sheet Summary Data ............................................................................ 4
    8. Key Outcomes and Performance Measures........................................................................ 4
    9. Major Issues to address in the next two to three years ...................................................... 4
    10. Analysis of Major Issues ................................................................................................ 4
    11. Future Issues ............................................................................................................... 6
    12. Process Descriptions and Flow Charts ............................................................................. 6
        Tab a - Internal Audit Process .......................................................................................... 7
        Tab b – Annual Risk Assessment ...................................................................................... 8
        Tab c – External Audit Support......................................................................................... 9


Purpose

The City’s Internal Auditor provides independent oversight and analysis of any management,
financial, or functional area and the controls needed to operate effectively.

Detail:
Internal Auditing is an independent appraisal function established within the City of Vancouver to
examine and evaluate its activities as a service to the organization. The objective of the Office of
the Internal Auditor is to assist the City Council, the City Manager and other members of
Management Team in the discharge of their oversight, management and operating responsibilities.
This objective is accomplished by providing analyses, appraisals, recommendations and
information about the activities reviewed by the Office of the Internal Auditor. The Office of the
Internal Auditor assesses the efficiency and effectiveness of internal controls with the goal of
promoting effective controls at reasonable costs to the City. The internal audit function is an
integral part of the City and plays an important role in the management control system by
measuring and evaluating the controls. The internal audit review and appraisal process does not in
any way relieve other City personnel of the responsibilities assigned to them.




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2. Goals
In the next 2-6 years, the top goals of Internal Audit are to:
    a. Change the primary internal focus of IA from “function” to “organization” based audit
        activities at the department level.
    b. Conduct at least one performance audit per year
    c. Make audit reports, reviews, and memos produced by the Internal Audit more accessible to
        City Management, Council, and Citizens.
    d. Post appropriate audit results on the City’s web site by December 2012.

3. Major Services
   1. Act as a liaison between management and State/other external auditors
   2. Assist management with the design, review, maintenance and implementation of internal
      controls, policies and procedures. Assess internal controls implemented by management to
      ensure that controls are in place and operating effectively. This shall be accomplished by
      conducting audits, reviews, or other procedures as necessary.
   3. Lead and participate in technical research of accounting issues, laws, and regulations.
      Build upon identified information and produce something of utility. As a participant in a
      fast-moving environment, I am responsible for keeping informed, developing and
      performing suitable analysis, and presenting my results in a manner that makes the data
      accessible and useable to City Management.
   4. Conduct audits through which an organization, system, process, project or product is
      evaluated. Audits are performed to ascertain the validity and reliability of information. The
      types of audits include;
          a. Regular audits – These are usually scheduled as part of our annual audit schedule
              but may come up during the year.
          b. Follow up audits – These are usually scheduled as part of our annual audit
              schedule. Internal Audit standards require follow up work.
          c. Consultation/Performance reviews - These are requests from interested
              parties. The requests can be scheduled as part of our annual audit schedule or
              come up during the year.
          d. Special investigations - These come up during the year when theft, irregularities
              or inappropriate conduct is identified.
          e. Requests for advice - These come up during the year when interested parties
              contact the Internal Auditor with questions or for advice.



4. Organization & Staff
Name                                 Position                     FTE
Christine Smith                      Internal Auditor             1.0




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5. Major Processes

The table below includes both the major processes and the time spent on each one for the last
two years. Data collected from Outlook time logs. See indicated tabs for details about each process
and a flow chart.

                                                     2008                  2009
Time allocation by major process                  percent               percent
Tab a – Internal Audit Process                     38%                    38%
Tab b – Annual Risk Assessment                     5%                     5%

 Other support as requested*                       57%                    57%



6. Key Customers
Customers come from two sources: Internal City organizations and external parties, such as the
Washington State Auditors Office.

By work volume measures, the majority of internal audit work is internal to the city, and varies by
year in accordance with risk assessment and audit needs. Risk Assessment and audit needs
includes not just completing an audit process and reporting on the results thereof, but also support
for other data gathering, process analysis, and other performance reviews as needed.


Major Customers in 2008 and 2009 are:

                                           2008          2009
 Development Review Service                 xx              xx
 Financial and Management Services          xx              xx
 Parks and Recreation                       xx              xx
 Police Department                                          xx
 Fire Department                            xx              xx
 Human Resources                                            xx
 Law                                                        xx
 Utilities Department/Public Works          xx              xx
 Equipment Services                                         xx
 Community Planning                         xx              xx
 Transportation Department                  xx              xx
 Risk Management/Property Services          xx              xx
 Washington State Auditors Office           xx              xx




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7. Financial Balance Sheet Summary Data
Based on 2009 Budget
                                                       % of time or   Cost to provide
                Program or Activity
                                                         budget          service
Total Budget                                              100%           $104,499
Internal Audit Process                                    38%            $39,710
Annual Risk Assessment                                     5%            $5,225
Review of CAFR                                             5%            $5,225
Technical research                                        10%            $10,450
Internal controls assessment                              15%            $15,675
Act as a liaison between management
and State/other external auditors                         27%            $28,215




8. Key Outcomes and Performance Measures

Annual Measures
Outcomes and
Performance Measures                       Goal   2007       2008       2009        trend   Change & Remarks

My customers are satisfied
Bi-annual customer                                           Due in
                          >3.0                    3.2                    3.0        - 6%    Minor drop but still meets goal
survey: satisfaction                                         2009
Internal Audit reduces risk
Internal audit items                                                                        Internal audit on leave for last 6
                                                                                            months during 2007 – first 6
with savings or                            ≥ 10    0           15        --                 months of the year focus on
mitigated risks                                                                             external audit



9. Major Issues to address in the next two to three years

Issue 1: The Whistleblower and Fraud Reporting process within the city is neither
well defined nor well publicized.

Issue 2: The Audit Committee’s composition, role and responsibilities are not well
defined and codified.


10. Analysis of Major Issues

Issue 1: The Whistleblower and Fraud Reporting process within the city is neither
well defined nor well publicized.

Discussion: City of Vancouver employment policy #508 addresses the Whistleblower program.
Public employees have an obligation to assure that government in general, and their departments
in particular, perform ethically, as well as efficiently and effectively. City employees are prohibited
from engaging in improper governmental action and are encouraged to report suspicious, unethical
or illegal conduct or any other suspected improper governmental action taken by other employees,
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supervisors or officers. Employees who make good faith reports of improper governmental action
will be protected from intimidation or retaliation for making a report.

Additionally, State law requires that all state agencies and local governments immediately
notify the State Auditor's Office if they know or suspect a loss of public resources. The State
Auditor’s Office encourages governments and agencies to develop policies and procedures
regarding this law, including designating the individual who is responsible for informing
managers and employees about the reporting requirements and ensuring SAO is promptly
notified about losses. Entities should take the following actions when a loss of public funds or
assets or other illegal activity is suspected or detected:

      •     Report the loss to the audit team in your area.
      •     Protect the accounting records from loss or destruction. All original records related to
            the loss should be secured in a safe place until our audit has been completed.
      •     Notify others who need to know about the loss. This may include the governing body,
            agency head or deputies, chief financial officer or internal auditor, depending upon the
            circumstances. Providing notification to your legal counsel may also be appropriate.
      •     Don’t enter into a restitution agreement with an employee prior to an audit to establish
            the amount of loss.
      •     File a police report with the appropriate local or state law enforcement agency when
            advised to do so by SAO.

The City of Vancouver designee for reporting under this law is the Internal Auditor. The Internal
Auditor has the skills and expertise to lead investigation related to the loss of public funds.
Additionally, whistleblower concerns often reveal during the investigation that a loss of public
funds may have occurred. If the Internal Auditor is not notified when a concern is reported
through the Whistleblower Program and is not actively involved in the investigation, the City of
Vancouver may fail to be in full compliance with State law.

Solution 1: Status quo. Hope for the best…

Since employment policies are posted on the Citynet, one can hope that all employees are
informed on the Whistleblower Program. Intern Audit can rely solely on relationship being
developed to allow for communication of whistleblower concerns. If Internal Audit is not involved,
in the either knowing about the whistleblower concern or the investigation, than Internal Audit can
hope that others who receive the or are involved in the investigation will be aware of the State law
reporting requirements and eventually inform the Internal Auditor so that proper reporting can
occur.

Solution 2: Website development for education purposes

Enhance a Citynet page for information regarding the Whistleblower Program. Use a Q&A format
similar to the Employment Policy to provide education and guidance to employees.

Solution 3: Website development for education and reporting. Develop of a multi-function
committee consisting of Internal Audit, Human Resources, Law, and Risk Management to
investigate and report on issues.

Recommendation: Solution 3


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Issue 2: The Audit Committee’s composition, role and responsibilities are not well
defined and codified.

Discussion: Audit committees play an increasingly important role in the governance process.
The following points present some characteristics of effective audit committee members:

      1. They recognize the significance of the audit committee’s responsibilities.
      2. They have what is referred to as a “significant degree of commitment to the organization
         and the management.”
      3. They are independent.
      4. They have a reasonable degree of financial literacy.

The City of Vancouver does have an audit committee made of up of highly educated individuals.

Solution 1:
Solution 2:
Solution 3:

Recommendation:




11. Future Issues
Issue 1: Participate in the development of, or codification of, a Citywide Code of Ethics and the
development of an ethics training program

Issue 2: Formal presentation to City Management and/or City Council of all audit reports. Formal
publication/release of reports.

Issue 3: Workload exceeds capability of existing staff


12. Process Descriptions and Flow Charts

Tab a – Internal Audit Process
Tab b –Annual Risk Assessment
Tab c – External Audit Support




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Tab a - Internal Audit Process

            Step 1: Audit Planning

                  •      Hold entrance meeting with Department under audit and discuss: audit timing,
                         concerns, contact preferences, policies and procedures, audit objectives and scope
                  •      Perform preliminary review
                  •      Identify controls and perform risk analysis
                  •      Develop audit tests

            Step 2: Fieldwork

                  •      Perform audit tests
                  •      Create work papers and document findings
                  •      Develop written or oral preliminary findings and recommendations
                  •      Discuss preliminary findings and recommendations with Department under audit
                         according to the schedule established at the entrance meeting

            Step 3: Draft Report

                  •      Create draft report of findings and recommendations as previously discussed
                  •      Circulate Draft Report according to policy

            Step 4: Closing / Exit Meeting

                  •      Review and discuss the Draft Audit Report with the Department under audit
                  •      Revise Draft Audit Report as agreed upon with the Department under audit

            Step 5: Final Draft Audit Report & Client Responses

                  •      Distribute the Final Draft Audit Report to the Department under audit and request
                         written responses
                  •      Provide two weeks for Management’s responses

            Step 6: Final Audit Report

                  •      Incorporate Management’s responses into the Final Draft Report and distribute the
                         Final Audit Report according to policy




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Tab b – Annual Risk Assessment

            The process for preparing the risk assessment will include the following:
               • Review of CAFR
               • Discussion with Department Managers, financial analyst, and other City staff
               • Review of Internal Audit report issued from other jurisdictions
               • Review of prior year State Auditor comments
               • Consideration of general industry experience

            Items and topics (aka systems) to be included within the risk assessment will be evaluated
            on the following criteria:
                • Outside interest – Interest shown by outside parties such as legislators, news
                   media, citizen groups, the general public or others increases an agency’s risk related
                   to a system.
                • Regulatory/contractual requirements – The existence and applicability of external
                   laws, regulations, contractual or reporting requirements increases the diversity and
                   complexity of system requirements and hence, the opportunity for noncompliance
                • Employee turnover – Employee turnover increases the risk associated with a
                   particular system.
                • Account balance – Account of activity balance size has an effect on an agency’s risk
                   due to materiality considerations.
                • Result of past reviews – Systems with a history of audit findings and/or information
                   internal control comments (external or internal audit) normally have a higher level
                   of risk for an agency.
                • Susceptibility of assets to misappropriation – Certain assets are more susceptible to
                   fraud/theft than other assets. They increase in agency’s risk with their presence,
                   especially if a major fluctuation in asset balances is noted.
                • Level of system automation – Generally, an agency’s risk will decrease with higher
                   level of automation within systems. Risk will also tend to increase with a major
                   system change.

            Steps      for completion of the Risk Assessment are as follows:
               •        Internal Audit draft assessment
               •        Review of draft assessment with CFO
               •        Forward survey to CWLT and other appropriate parties for response
               •        Review responses
               •        Finalization and Presentation to Audit Committee




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Tab c – External Audit Support

What needs to be done to support external audits?

Who is responsible for what in the city?

What notifications, coordination, control, etc need to be done?




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                              Performance & Business Planning Program
                                                     Performance Analyst: Tom Nosack


Table of Contents

    The performance vision for Vancouver ................................................................................. 1
    1. Purpose ......................................................................................................................... 2
    2. Goals ............................................................................................................................. 2
    3. Major Services................................................................................................................ 3
    4. Organization & Staff........................................................................................................ 3
    5. Major Processes.............................................................................................................. 3
    6. Key Customers ............................................................................................................... 3
    7. Financial Balance Sheet Summary Data ............................................................................ 4
    8. Key Outcomes and Performance Measures........................................................................ 5
    10. Major Issues to address in the next two to three years: ................................................... 5
    11. Analysis of Major Issues ................................................................................................ 6
    12. Future Issues ............................................................................................................... 7
    13. Process Descriptions and Flow Charts ............................................................................. 8
        Tab    a – Business Planning Process (See publication “You Can Do It!”)................................. 8
        Tab    b –Performance Snapshots (See “Annual Performance Report” on city web site) ............ 8
        Tab    c –ICMA Data Collection & Reporting Process (now biannual – see letter)...................... 8
        Tab    d – Biannual Community Survey Process (under construction) ................................... 8
        Tab    e – Support Services Survey (under construction) ..................................................... 8
        Tab    f – Strategic Plan Performance Reporting (under construction) ..................................... 8
        Tab    g – Performance Auditing (under construction) ........................................................... 8


                                              The performance vision for Vancouver

  As expressed by Council and reinforced by the City Manager in late 1999, their vision for how to
    integrate performance management into Vancouver’s operations as a city is summarized as:

       “We want Vancouver to be viewed as an exceptionally well run business, a
 performance based organization that makes decisions informed by data and analysis.”




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1. Purpose
The Performance Analysis’ role is to help transform the city from a traditional municipal approach
to its functions to a business based approach.

We will integrate performance management into all levels of every organization consistent with a
published city-wide performance vision. We will emphasize business planning, use performance
auditing, and introduce other tools to achieve this goal. The performance Analyst is mentor and
consultant in all areas of organizational performance.

The City’s Performance Analyst’s major functions are:

a. To establish and maintain City level performance reporting program to include strategic
direction, regular community surveys, benchmarking of performance data and consistent, accurate
public reporting;

b. To establish and maintain a department level performance management program for managers
to analyze their business practices, continuously improve their operations, integrate performance
management techniques, improve public reporting;

c. Conduct individual and team level training in performance measurement, performance
management, and data collection;

d. Conduct performance audits of select processes and performance data to improve efficiency and
ensure accuracy, validity and consistency.

e. Assist the city with any processes to analyze performance, improve processes, analyze or
problem-solve organizational structure as required.


2. Goals
In the next 2-6 years, my top goals are to:
    a. Expand regular use of performance measurement in decision making (performance
        management) within the departments and have at least two departments reporting key
        data quarterly or more often in a way that provides additional value by end of year 2011.
    b. Improved our transparency by putting more performance information on the web in a
        timely manner; be able to update Performance Web Site without external assistance within
        24 hours by end of year 2009.
    c. Finish 90% of all department first-round business plans in 2011.
    d. Introduce software to automate some level of financial and performance tracking and
        reporting by 2012, integrating non-financial performance measures into the system by
        2013.
    e. Initiate process for the city to adopt a major systemic approach to performance by 2014
        such as;
            a. Balanced Scorecard Process
            b. Baldrige Quality Award Program
            c. Other accreditation approach




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3. Major Services
      Business Planning consultant and instructor
      Design performance measurement programs
      Audit data (Performance audits) periodically
      Design, conduct, and analyze surveys on request
      Primary Coordinator for ICMA data collection efforts
      Provide regional performance consulting assistance on request


4. Organization & Staff
Name                                Position                                               FTE   (management)
Tom Nosack                          Performance Analyst                                    1.0    (0.0)



5. Major Processes
The table below includes both the major processes and the time spent on each one for the last
two years. Data collected from Outlook time logs. See indicated tabs for details about each process
and a flow chart.

                                                                        2007      2008        2009                  2010
Time allocation by major process                                       percent   percent     percent      change   percent
Tab a – Business Planning Process                                        66%       25%         20%        -20%
Tab b – Departmental Performance Snapshots                                8%       12%         18%        +50%        18%
Tab c – Annual ICMA Data Collection                                       8%        8%         15%        +88%        0%
Tab d – Community Survey (every 2 years)                                  1%        4%          2%                     4%
Tab e – Support Services Survey                                           6%        6%          6%                     0%
Tab f – City Level Performance Reporting                                  1%        4%          6%
Tab g – Performance Auditing                                              1%        1%          1%
Tab h – Performance Web Site Maintenance                                  1%        5%          7%
 Other support as requested*                                              8%       35%         25%        -29%        20%
*2010 = process analysis; Horizons support; other                       100%      100%        100%
Based on a 50 week, 40 hours per week work year
* 2009 & 2010 include support for Horizons process




6. Key Customers
Customers come from two sources: Internal City organizations and external requests for assistance
such as process analysis, performance measure program advise, and speaking requests. External
requests are coded under the City Manager’s Office and usually account for less than 2% of total
work.

By work volume measures, the majority of my work is internal to the city, and varies by year with
the business planning efforts. “Business Planning” includes not just completing a business planning
process and writing a business plan, but also support for other data gathering, process analysis,
and other performance measurement tools as needed.




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Major Customers are:

“x” indicates approximate level of time commitment
                                              2007                                     2008          2009            2010 (plan)
 City Manager’s Office                                                  x               xx                x              xx
 Parking Services Fund                                                  x               xx                                x
 Media Services                                                                          x                x
 Fire Department                                                        xx               x               x
 Financial & Management Services                                                         x               xx             xxx
 Parks & Recreation                                                                      x               xx
 Police Department                                                                       x               xx               x
 Citywide                                                               x               xx               x              xxxx
 Public Works & Transportation                                                         xxx               x               xx




7. Financial Balance Sheet Summary Data
Based on 2008 budget & Outlook time logs

Program or Activity                                              Time
                                                                 2007       budget      2008   budget         2009    budget
Total Budget                                                    100%        $135,196    100%   $140,116       100%     $134,822
Business Planning Process                                        67%         $90,581    25%    $35,029        58%      $78,197
Department Performance Snapshots                                  8%         $10,816    12%    $16,814        12%      $16,179
Semi-annual ICMA Data Collection                                  8%         $10,816     8%    $11,209        8%       $10,786
Support Services Survey                                           6%         $8,112      6%     $8,407        6%        $8,089
City Level Performance Reporting                                  1%         $1,352      4%     $5,605        4%        $5,393
Performance Auditing                                              1%         $1,352      1%     $1,401        2%        $2,696
Performance Web Site Maintenance                                  1%         $1,352      5%     $7,006        3%        $4,045
Community Survey (every 2 years)                                  1%         $1,352      4%     $5,605        1%        $1,348


Other support as requested*                                       8%         $10,816    35%    $49,041        6%        $8,089




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8. Key Outcomes and Performance Measures

Annual Measures
Color code: Green = met standard; Yellow = missed standard but it is achievable; Red = significantly missed standard

Outcomes and
Performance Measures                       Goal            2007         2008        2009      change    Remarks

Outcome 1: My customers are satisfied
                                                                                                        Score for overall satisfaction; down
Rating on biannual internal                                              Due
                                          ≥ 3.0              3.0         2009
                                                                                     2.9       -6%      slightly in 2009; limited availability
customer survey (4 pt scale)                                                                            to business planning customers
Outcome 2: Provide a city-level performance reporting that is effective
ICMA recognition for                     Top level           Top          Top         Top               Certificate of Excellence for
                                                                                              stable
performance management                    award             level        level       level              performance programs
ICMA data collection –                    ≤ 15                                                          Switched to semi-annual data
audited errors to correct
                                                             17          10        Due 2011   stable    reporting in 2009
                                          errors
Annual Performance                                        Aug 19,      April 17,   June 17,             Delayed by Horizons budget process
                                          May 1st                                             Delayed
Report timely (1 May)                                      2008         2009         2010               and cuts in analytical help
AGA award for                            Top level                     Second        Top                2009 first applied for top level
                                                            none                              Better
performance reporting                     award                         level        level              award
Strategic Indicators –                                      New         1 Oct       28 May              Updated and provided to Council;
                                          1 April           2008        2008         2010
                                                                                              Delayed   delayed by Horizons work
complete w/I 90 days
Outcome 3: Conduct, analyze and report useful, timely surveys
Community Survey –     ≤ 90      Due                 Due     Apr 22,                                    112 days; presentation delayed by
                                 2008    92 days     2010     2010                                      Horizon process
completion timely      days
Support Services Survey –                                                                     Survey    Response rate varies based on
number of participants
                                          ≥ 120             196         128         135        2012     areas being surveyed
Support Services Survey≤ 60      74        44      48   Survey  Started: Jun 10 Released to
completion timely      days     days      days    days   2012   managers: July 28th
Outcome 4: Provide department level performance management programs that are effective
Performance Snapshots  90%      36/37     34/35  33/33
                                                          Met   Completed/total snapshots
updated annually      updated   97%       97%    100%
Business Plans completed
                                              2               0           3           2        Met      2009= Media, Fire update
or updated
Outcome 5: We conduct performance audits to improve processes
Performance Audits                                                                                      Fire, Police & Ops Overtime; CRESA
                                        1 per year            0           2           2        Met
                                                                                                        VPD Call response
Completed


10. Major Issues to address in the next two to three years

Issue 1: How do I maintain or improve the high customer satisfaction level attained on the latest
internal support services survey?

Issue 2: As resources get scarcer, analytical assistance is more difficult to find in organizations.
How do we increase from annual reporting of lagging indicators to more timely use of performance
data within existing resources?

Issue 3: Business plans for direct services have followed a consistent template with success;
support services appear to have different needs and sensitivities. How do we best adapt the city’s
business planning process to provide the best value for support services?



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Issue 4: Performance Management data collection, reporting and analysis is a highly manual and
time consuming operation. How do we reduce the time it takes to get basic non-financial
performance data?

Issue 5: Performance Management data tends to focus on non-financial operational performance.
The reporting and analysis is not closely linked to the budget process. How do we best make the
connection and make it of value?

Issue 6: Most performance data used by the city is annually collected and examined. As a result,
we are retrospectively looking at how we did last year and making changes based on information
that is not recent. Where does it make sense to move to more frequent performance reporting?


11. Analysis of Major Issues

Issue 1: How do I maintain or improve the customer satisfaction level attained on the
latest internal support services survey?

Background: 2009 was the fifth year we included Performance Management in the internal
support services survey as a distinct organization.

72 customers took the survey, compared to 125 in 2007. Overall, Financial and Management
services customer satisfaction dropped in most areas as staffing was reduced, available funds have
become tighter and the performance data is becoming more important to make decisions.

14


12
                                                                                              Role of Respondents
10
                                       Respondents by Service Area
                                                                                                                     Supervisor
 8
                                                                                                                        14%
                                                                              Support Staff
 6
                                                                                  41%

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Results: Have dropped to just below the goal of 3.0 on a 4.0 scale in all areas.

                                                                       2007             2009                      Change
FMS Overall                                                            3.2                3.1                       -3.8%

Performance Management                                                 3.0                2.9                       -3.9%
                                                 Quality               3.0                2.9                       -3.9%


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                                                 Timeliness            3.1   2.9     -6.3%
                                                 Focus                 2.9   2.9     1.3%
                                                 Satisfaction          3.0   2.9     -3.5%


Discussion: The 2009 customer comments indicated the all areas were statistically unchanged
except timeliness, which has become more of a dissatisfier as the demand for services increases
and staffing does not change.

In 2008 and early 2009 most of my time was dedicated to a single departmental customer
(Transportation), the Strategic Plan, and city-level performance reporting; this may reflect in
significantly reduced ratings in the 2009 survey from most customers as I have been relatively
unavailable. This will change in mid-2009 since the Strategic Plan is complete, and city level
reporting is under control. Significant effort can be focused on Police, FMS, and Parks & Recreation
to complete their Business Planning projects.

Solution 1: Status quo. Expect to devote the same amount of time to customers as was allocated
in 2008 for the first half of 2009, then complete projects that will allow more resources to be
allocated to business planning the second half. This will most likely result in lower satisfaction
scores but will keep us within the available time budget.

Solution 2: Contact major customers and improve their expectations through better
communications. Find ways to reduce time spent on other projects and reallocate it to business
planning. Automating data entry processes and reducing the ICMA submission complexity are a
couple of potential solutions.

Solution 3: Add new staff to Performance Management to improve responsiveness. Much of the
time spent on reviewing data submissions is clerical or repetitive reviews of spreadsheets.

Recommendation: Solution 2. Work closely with existing customers to help manage their
expectations for timely delivery of services, and focus on products that meet their needs the most
while saving them the most time or resources.


12. Future Issues
- Help – workload and expansion of program
- Performance software – dashboard – perhaps Oracle Business Intelligence
- Balanced Scorecard Reporting – when the city is ready, if it is still desired
- Integration with Budget – what do we want it to look like?




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13. Process Descriptions and Flow Charts
Tab a – Business Planning Process (See publication “You Can Do It!”)
Tab b –Performance Snapshots (See “Annual Performance Report” on city web site)
Tab c –ICMA Data Collection & Reporting Process (now biannual – see letter)
Tab d – Biannual Community Survey Process (under construction)
Tab e – Support Services Survey (under construction)
Tab f – Strategic Plan Performance Reporting (pending)
Tab g – Performance Auditing (pending)




FMS Performance & Business Planning Program 07-22-10tn.doc/ 08/12/10       PA1-8
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

                                            LOB 1: Accounting Line of Business
                                  (Financial & Management Services Business Plan)
                                                                      Manager: Janet Frank

Table of Contents

    1. Purpose ....................................................................................................................... 1
    2. Goals ........................................................................................................................... 2
    3. Major Services we provide ......................................................................................... 2
    4. Programs and Activities ............................................................................................. 3
    5. Organization & Staff ................................................................................................... 3
    6. Major Processes we own or manage ............................................................................. 4
    7. Key Customers ............................................................................................................ 5
    8. Financial Sheet Summary Data .................................................................................. 6
    9. Key Outcomes and Performance Measures ............................................................... 6
    10. Sample Cost to Provide Services.............................................................................. 9
    11. Continuity of Operations .......................................................................................... 9
    12. Major Current Issues................................................................................................ 9
    13. Future Issues ...........................................................................................................10
    14. Key Processes and Flow Charts...............................................................................11
         Program A: Accounting Team                                                                                       pg 1a-1 11
         Program B: Payroll Services Team                                                                                 pg 1b-1 11
         Program C: Accounts Receivable Team                                                                              pg 1c-1.11


1. Purpose

Accounting Team: We ensure that proper accounting standards and internal controls are applied to
the financial records of the city, consistent with State and Federal regulatory requirements.

Payroll Team: We ensure timely and accurately issue payment to the City’s employees and
pensioners. Our goal is to provide excellent customer service while adhering to federal guidelines
and other laws governing the payroll function.

Accounts Payable Team: We provide fast, streamlined Accounts Payable processes that provide
timely and accurate payment to our customers with superior customer service. At the same time,
we will protect the City’s financial interests to ensure transactions are legal, timely, and provide
good value to the citizens.




FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                     LOB 1- 1
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014


2. Goals
Major goals for the next two to six years are being managed at program level.

Accounting Team
      a. Continue to produce an accurate, on-time and award winning Comprehensive Annual
         Financial Reports (CAFR) made available to the public by July 15th each year.
      b. Continue to find efficiencies in the CAFR process. Complete it with no external help in 2010,
         barring any unforeseen events.
      c. Provide outstanding customer service by providing our customers with timely, relevant,
         informative and value-added financial information in an understandable way. Increase or
         maintain our Customer Focus rating on the Support Services Survey each year.
      d. Maintain overall rating of at least 3.0 in all areas of the Support Services Surveys.
      e. Fully document critical accounting processes in 2009 and 2010 so that we will be able to
         more effectively cross train employees in a consistent way.
      f. Provide centralized grant support to promote faster reimbursement to the City, and to
         prevent compliance and audit problems.

Payroll Team
      a. Continue providing year end tax statements to our customers ahead of federal deadlines.
      b. Do our part to support sustainability by working with IT toward utilizing technology to
         increase electronic delivery of year end tax statements and increase direct deposit
         participation.
      c. Continue obtaining customer satisfaction results of at least 3 in the Support Services
         Surveys.

Accounts Payable Team
      d.     Implement new P-Card (Purchasing card) /Travel card system by mid-2010
      e.     Implement Oracle I-Expense for travel by 2012
      f.     Provide EFT (direct deposit) for vendors and employee reimbursements by 2012
      g.     Begin phasing in a document imaging system by 2013


3. Major Services we provide

Accounting Team
             Year End Closing and Financial Reporting
             General and Cost Accounting
             Capital Asset Accounting
             Grant Billing, Reporting, and Compliance
             Audit Assistance

Payroll Team
             Payment to City employees for services rendered
             Pension payments to certain City retirees

Accounts Payable Team
             Management of Invoice Transactions
             Purchasing Card Administration
             Travel Program Administration



FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                      LOB 1- 2
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014



4. Programs and Activities

Accounting Team
             Year End Closing and Financial Reporting
             General and Cost Accounting
             Capital Asset Accounting
             Grant Billing, Reporting, and Compliance
             Audit Assistance

Payroll Team
             Support for active employees
             Support for retired employees

Accounts Payable Team
             Management of Invoice Transactions
             Travel Program Administration
             P-Card Administration (audit invoices, maintain budget codes)
             Management of Use Tax on Invoices


5. Organization & Staff
Name                                     Position                      FTE   (management)
Accounting Team
Janet Frank                              Accounting Manager            1      (1.0)
Wayne Dillinger                          Accountant C                  1
Kim Holben                               Accountant C                  1
Tatyana Brainich                         Accountant C                  1
Georgiana McNees                         Accountant B                  1
LaVonne Steiner                          Accountant B                  1
Full time employee equivalents (FTEs)                                  6.0
Management ratio (managers: total employees; city goal is 1:7 or more)         1:6

Payroll Team
Name                                     Position                      FTE    Manager
Vanessa Sowders                          Payroll Supervisor            1.0    (1.0)
Tanya Price                              Payroll Analyst               1.0
Rae Escareno                             Payroll Analyst               1.0
Full time employee equivalents (FTEs)                                  3.0
Management ratio (managers: total employees; city goal is 1:7 or more)         1:3

Accounts Payable Team
Bob Alexander        A/P Supervisor                                    1.0   (1.0)
Michael Holly        Sr. Accounting Clerk                              1.0
Sandee Schaffer      Sr. Accounting Clerk                              1.0
Diana James          Sr. Accounting Clerk                              1.0
Full time employee equivalents (FTEs)                                  4.0   (3.0)
Management ratio (managers: total employees; city goal is 1:7 or       more) 1:4

Total employees: / Management ratio:                                    13 / 1:4.3
FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                         LOB 1- 3
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014


6. Major Processes we own or manage
Accounting
Preparation of the CAFR
Fund Analysis, Reconciliations and Customer Service
DRA Accounting
Utilities Accounting
Cost Allocation Plan for the City, as well as DRS & WSD
Monthly/year end closing
Asset Capitalization
Grant Accounting & Billing

Payroll
Regular Payroll Process
Tax Payments
Quarterly Reporting
Timekeeper Meetings
Third party payment processing & reporting
Miscellaneous; including: retirement reporting,
  system testing, and customer service activities
Accounts Payable
Process Invoices
Travel Payments Purchasing Card Administration


                                                                             Organization Chart
                                                                             Accounting Group
                                                                             January 31, 2010

                                                 Note: A/P moved to this LOB in January, 2010
                                                                               Lloyd Tyler
                                                                          Chief Financial Officer


                                                                               Janet Frank
                                                                           Accounting Manager


                                 Bob Alexander                                 Janet Frank                             Vanessa Sowders
                                 AP Supervisor                             Accounting Manager                          Payroll Supervisor


                                                       Michael Holly                                Wayne Dillinger                          Tanya Price
                                                   Sr. Accounting Clerk                             Accountant “C”                          Payroll Analyst



                                                       Diana James                              Georgianna McNeese                           Rae Escareno
                                                   Sr. Accounting Clerk                           Accountant “B”                            Payroll Analyst



                                                     Sandee Schaffer                                Tatanya Brainich
                                                   Sr. Accounting Clerk                             Accountant “C”



                                                                                                     Kim Holburn
                                                                                                    Accountant “C”



                                                                                                    Lavonne Steiner
                                                                                                    Accountant “B”




FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                                                           LOB 1- 4
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

7. Key Customers
Customers who represent at least 75% of the work we do (based on time)
Percent of time unchanged from 2008, cost updated to 2009 budget

Accounting
Customer Group                                                          Hours      % Time            Cost                    Notes
External Customers
Federal & State Agencies (not auditors                                      562      6%             $43,840    Grant accounting primarily
State Auditors                                                            1,046     12%             $81,596

Downtown Redevelopment Association                                        1,069     12%             $83,390

Internal Customers
Parks & Recreation                                                        1,201     13%           $93,687
Public Works Utilities                                                    1,704     19%           $132,925
Transportation                                                            1,644     18%           $128,245
Development Review Services                                                 562      6%            $43,840
All other internal customers                                              1,280     14%           $99,850
Total                                                                     9,068     100%          $707,373

                         Note: Hours are based on 2008 time tracking. Dollars are based on 2009 budget multiplied by the % of hours.




Customer                                                              Accounting           Payroll             AP            Combined
                                                                        6 FTE               3 FTE             4 FTE            13 FTE
External Agencies                                                        30%                12%                                 17%
Operation Center / Public Works                                          19%                                  26%               17%
Other / Mixed                                                            14%                                                    16%
Active employees                                                                            58%                                 13%
Parks & Recreation                                                       13%                                  21%               12%
Transportation                                                           18%                                                     8%
Retirees                                                                                    30%                                  7%
Development Review                                                       6%                                    6%                5%
Fire Department                                                                                               14%                4%
Police                                                                                                         3%                1%
Financial & Mgt Services                                                                                                         0%
Facilities                                                                                                                       0%
Engineering                                                                                                                      0%
Information Technology                                                                                                           0%
Combined column is weighted by FTEs in each team; other columns are team percentages




FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                         LOB 1- 5
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

8. Financial Sheet Summary Data
As of: January 2010; Costs based on 2009 Budget


Function                                                                   % of time    Cost to provide service*          Notes

Accounting Team                                                                100%                $707,373
Fund analysis, reconciliations and
customer service work                                                         37.10%               $262,435
Preparation of the CAFR                                                       11.50%                $81,348
Asset Capitalization                                                           7.70%                $54,468
DRA Accounting                                                                11.70%                $82,763
Utilities Accounting                                                           6.40%                $45,272
Monthly/YE Closing                                                            19.20%               $135,816
Grant Accounting & Billing                                                     6.20%                $43,857
Cost Plan                                                                      0.30%                $2,122

Payroll Team                                                                   100%                $271,019
Regular Payroll Processes                                                       57%                $154,481
Preparing Tax Payments, 3rd Party
Payments & Quarterly Reports                                                   12%                 $32,522
Timekeeper Meetings                                                             2%                  $5,420
Other (Retirement Reporting, Customer
Service, System Testing)                                                       29%                 $78,596

Accounts Payable Team                                                          100%                $435,432
Mgt. of Invoice Transactions                                                    72%                $313,511
Travel Program Administration                                                    3%                 $13,063
Purchasing Card Administration                                                  18%                 $78,378
Produce Checks–Upload Invoices                                                   7%                 $30,480

Total LOB Budget                                                               100%               $1,413,824

*Calculation: 2009 Budget divided by allocation of time


9. Key Outcomes and Performance Measures

Accounting Team

 Outcomes and
                                                   Goal               2007       2008   2009     Change        Change & Remarks
 Performance Measures
 Our customers are satisfied
 Progress meeting done with
                                                      1                1          1      1       stable
 internal customers
 Rating on biennial customer                                                     Due
                                                      3                3                3.2        7%
 survey: Satisfaction (5 pt scale)                                               2009
 Rating on biennial
                                                                                 Due
 customer survey:                                     3               2.9               3.2        10%
                                                                                 2009
 Timeliness (5 pt scale)
FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                   LOB 1- 6
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

 Outcomes and
                                                   Goal               2007        2008          2009        Change        Change & Remarks
 Performance Measures
 We provide professional capital asset management
 Reconcile Capital Asset
                                                   ≥ 2x
 listings to the General                          annual
                                                                        3           4             4          stable
 Ledger (GL) regularly
 Assets are capitalized
                                                                      New         New         Average
 within 90 days of being in                         90%
                                                                                              57 days
                                                                                                              NA
                                                                      2009        2009
 service
 Inventory of annual capital
                                                 Once per             New         New
 asset changes is reconciled                        yr
                                                                                                Done          NA
                                                                      2009        2009
 with department’s listings
 We provide quality and timely financial management
 General Ledger monthly                             15
                                                                      19.8        14.8          13.1
 close is timely                                 business                                                   - 34%
 (15 bus, days except year end)                    days               days        days          days
 Three Fund Review and
                                                 Within 45
 Account Reconciliations are                                          New
                                                  days of                        100%          100%          stable
 completed each year in a                          close              2008
 timely manner.
 All categories of CAFR rated
 “proficient” by GFOA                            17/17                15/17      17/17        15/17          -12%
 (number proficient / total)
 External financial audits                         UQ, no         Unqualified   Unqualified   Unqualified
                                                   letters        No letters    No letters    No letters
                                                                                                             stable
 completed successfully
 DRA monthly reports are
                                                 3rd Thurs
 prepared and submitted to
                                                   of the              Met         Met           Met         stable
 the Board in a timely                            month
 manner
 Financial Statements for
 the Utility Board Meetings
                                                   varies              Met         Met           Met         stable
 are timely (variable timing
 set by utilities)
 We produce a timely, top quality CAFR (Comprehensive Annual Financial Report)
 Total hours to close the
 year, prepare audit                             Decrease
                                                 annually
                                                                      1635        1587          1590         stable   Essentially unchanged
 schedules and produce
 CAFR. (from time tracking)
 Draft CAFR is ready for
 Auditors                                        May 31st         4/30/2009     4/15/2009      4/22/10       stable
 (within 5 months of year end)
 Outcomes and
                                                   Goal               2007        2008          2009        Change              Remarks
 Performance Measures
 GFOA recognizes CAFR with                         Top
                                                                       Yes         Yes           Yes         stable   Award is for previous year CAFR
 “Award of Excellence”                            Rating
 CAFR is to public within 195                     15-Jul            3-Jul        30-Jun        7-July
                                                                                                             stable
 days of year end                                195 days         184 days      181 days      188 days
 We provide timely and Quality Grant Management Services
 Meetings are held at least                                                                                           To ensure compliance and that
                                                   ≥ 2x               New         New
 twice/yr with departments                        annual
                                                                                                 Yes          NA      grants run through the
                                                                      2009        2009                                Accounts Receivable system
 using grants.
 American Recovery &
                                                Within 10                                     Reporting
 Reinvestment Act (ARRA)                                              New         New
                                                 days of                                       met on         NA
 grant reporting is timely                      Qtr end.              2009        2009          time
 and accurate.


FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                                  LOB 1- 7
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014



Payroll Team

Outcomes and
Performance Measures                               Goal                2007    2008    2009     Change              Remarks

Outcome 1: We provide timely pay related services
Payroll is paid on pay date.                      100%                 100%    100%    100%      Stable
Payroll is posted to the GL
                                                 > 90%                 66%     92%                        Significant improvement
by pay date.
Employees on direct deposit                       > 90%                83%     87%
Bi-annual customer survey:
                                                   > 3.0                3.5     n/a     3.4      Stable
Timeliness (4 pt scale)
Outcome 2: We provide accurate & efficient payroll services
Errors caused by payroll                                               New
                                                   < 10                          5
requiring manual check.                                                2008
Inaccuracy notices from
                                                       0                 0       0
regulatory agencies
Outcome 3: Our customers are satisfied
Bi-annual customer survey:                                                     Due
                                                   > 3.0                3.4             3.4      Stable
(5 pt scale)                                                                   2009


Accounts Payable Team

Outcomes and                                  Current
Performance Measures                           Goal                   2007    2008      2009    Change     Change & Remarks
Our customers are satisfied
Biannual customer survey                                                                                   2.9 in 2005; survey done every
(5 pt scale)
                                                   3                   3.2     NA       3.2      stable
                                                                                                           other year
Our travel program is effective
Travel Visa card                                                                                           All travel being reduced by
                                             Work load                1,453   1,211     574     -53.0%     budget policy
transactions
Travel advance checks                                                                                      Travel advances being reduced
                                             Work load                479      468      107     -77.0%     by policy
processed
Travel report requests                                                                                     All travel being reduced by
                                             Work load                642      604      514     -15.0%     budget policy
processed
Cost to process a travel                                                                                   Total cost of travel section
                                                < $25             $32.45      $29.79   $10.93   -63.0%     divided by number of claims
request/claim/payment
Our Purchasing Card program is effective
P-card transactions
                                             Work load            13,294      14,101   12,670    -10%
processed per year
P-card transactions                                                                                        Requires checking for use tax
                                             Work load           @ 50%        @ 50%    @ 50%     stable    calculation.
processed manually
P-card transactions                                                   1,157    864      966
                                              decrease                                          +12%
declined per year                                                     8.7%    6.1%     7.6%
                                                                                                           Cost of p-card section divided
Cost per P-card
                                              decrease                $3.67   $3.22    $6.19    +92%       by total transactions; fewer
transaction                                                                                                transactions
We provide timely and accurate invoice processing
Invoices processed per                                                                                     Fewer invoices but transactions
                                             Work load            37,512      35,946   33,286    -7.4%     remain stable
year
Invoices processed per                                                                                      In 2011 split out manual from
                                             Work load                 17      16       15       -7.4%     uploaded transactions
employee daily

FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                      LOB 1- 8
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

Outcomes and
Performance Measures                            Goal                  2007     2008     2009      Change               Remarks

Annual transactions (line                                                                                     Many # come as a batch from
                                             Work load           119447       112677   112473     stable     utilities; quantify?
count) processed
Transactions processed
                                             Work load                163      153      153       stable     Includes manual and uploads
per employee per day
                                                                                                             Sandee & Michael do manual
Transactions per employee                                             New      New      New        New
                                                 TBA                                                         transactions, Diana does
daily (manual)                                                        2010     2010     2010       2010      uploads
Transactions processed                                                1,957   1,315    1,170                 Customer education is
                                                ≤ 1%                                              -11.0%     working, hold rate is down
and put on hold per year                                              1.6%    1.2%     1.0%
                                                                                                             Denotes cost of labor with
Cost per transaction                            Stable                $5.38   $6.73    $9.42      +40%       steady workload




10. Sample Cost to Provide Services

Sample Cost to Provide Services                                                          2007              2008              2009


a. Cost to process a travel voucher:                                                     $32.45            $29.79             $10.93
(Varies with complexity - approximately 2,283 transactions per year)
How it is calculated: Total cost of program divided by total vouchers processed

b. Cost to process an invoice:                                                           $5.38             $6.73              $9.42
(Varies with complexity - approximately 35,946 transactions per year)
How it is calculated: Total cost of program divided by total vouchers processed

c. Total cost to process a/p-card transaction                                            $3.67             $3.22              $6.19
AP total resources dedicated to p-card processing + Contract ($.22 per billed item) divided by number of transactions
processed $3.75 plus Procurement Team$4.35 cost of

d Cost to mail a check to an employee:                                                   NA                $0.98              $1.11
How it is calculated: Includes printing, postage, stop payment fees, and check reconciliation costs only.

e. Approximate cost to produce the CAFR each year                                        NA                $52,675         $81,348
Percent of total hours devoted to the CAFR prep at the average wage for the entire accounting team



11. Continuity of Operations

See individual programs for details


12. Major Current Issues

Accounting Team

Accounting Issue 1: Accounting staff has experienced significant recent turnover; how can we
improve employee stability and service sustainability? (Program/Team level Issue)

Accounting Issue 2: How do we take better advantage of the existing automated financial
systems? (Department Level Issue)

FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                       LOB 1- 9
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

Accounting Issue 3: Year end work and creation of the CAFR is a large consumer of staff
resources. We need to find efficiencies so that we can manage this large task in the time allowed.
(Program/Team level Issue)

Accounting Issue 4: How can we reduce the City’s risk of loss or audit findings from inadequate
compliance with internal controls or errors? (Program/Team level Issue)

Accounting Issue 5: How do we maintain the high level of customer satisfaction we have just
attained with our customers as of 2008? (Program/Team level Issue)


Payroll Team

Payroll Issue 1: Time Sheets within the city are often approved later then specified deadlines,
requiring extra work, overrides, and approvals from other than normal supervisors and managers.
(Program/Team level Issue)

Payroll Issue 2: Requirements for Payroll record retention is not efficient. (Department level Issue)

Payroll Issue 3: Employee self service access to payroll records will improve service and decrease
work load. (Department level issue)

Payroll Issue 4: It is very costly to send out paper payroll checks when a safer, more timely and
less efficient alternative is available with electronic payments. (Department level Issue)


Accounts Payable Team

AP Issue 1: The existing travel expense program and the required monitoring is a highly manual
process that is not very cost effective. (Department level Issue)

AP Issue 2: The Purchasing Card (P-Card) system contract is expiring, and we have the
opportunity to renew with vendors that may provide better service, expanded benefits or both.
(Department level Issue)

AP Issue 3: We do not attend national level training or conferences on a regular basis and are
missing out on both the latest trends and advantageous training. (Program/Team level Issue)


13. Future Issues
Items we project will be problems in the future, but for which we currently are not planning.

Accounting Team

      •      Backing up data
      •      Maintaining current and legal boiler documents
      •      Creating and implementing trainings for new hires and departments
      •      Creating/Maintaining internal training for new staff or for changes of duties
      •      Consistency amongst departments with Amendments & Special Provisions (construction
             projects)
      •      Disposal of surplus items
FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                             LOB 1- 10
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

      •      Facility General Conditions


Payroll Team

      •      Enhancements to current timekeeper / timecard approver training.
      •      Improvements to the current worker’s compensation process as it relates to employees’
             paychecks.


Accounts Payable Team

      •      There are no electronic images of invoices and therefore no backup in case originals are
             destroyed (due to fire, water damage, etc...). Some invoices are manually scanned and
             sent to departments; this is very time consuming. The city has not decided to implement
             an enterprise wide document imaging system at this time. (City)

      •      Increase use of electronic payments to vendors (ACH/EFT). This segment will be available
             in Oracle’s next upgrade which is scheduled for next year. (FMS)

      •      Web-based supplier info – look into allowing suppliers to monitor payments online, provide
             electronic invoices and electronic payments. (FMS)




14. Key Processes and Flow Charts

See individual programs for details

Program A: Accounting Team                                                              pg 1a-1
Program B: Payroll Services Team                                                        pg 1b-1
Program C: Accounts Receivable Team                                                     pg 1c-1




FMS LOB 1 Accounting 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                        LOB 1- 11
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

                                                           Accounting Team
                                                       (Accounting Line of Business)
                                                            Manager: Janet Frank


Table of Contents

    1. Purpose ......................................................................................................................... 2
    2. Goals ............................................................................................................................. 2
    3. Major Services we provide:.............................................................................................. 2
    4. Organization & Staff........................................................................................................ 3
    5. Major Processes we own ................................................................................................. 3
    6. Key Customers ............................................................................................................... 4
    7. Financial Cost Summary Data .......................................................................................... 4
    8. Key Outcomes and Performance Measures........................................................................ 5
    9. Sample cost to provide a service ...................................................................................... 6
    10. Cost Savings or Efficiencies............................................................................................ 6
    11. Continuity of Operations Plan (COOP) ............................................................................. 6
    12. Analysis of Major Issues ................................................................................................ 7
    13. Future Issues ..............................................................................................................12
    14. Key Processes and Flow Charts .....................................................................................12
        Tab      a – Financial Reporting, including the CAFR (Comprehensive Annual Financial Report) ..13
        Tab      b – General and Cost Accounting ..............................................................................15
        Tab      c - DRA Accounting..................................................................................................16
        Tab      d - Utilities Accounting .............................................................................................18
        Tab      e - Cost Accounting .................................................................................................20
        Tab      f - Monthly Closing...................................................................................................22
        Tab      g – Capital Asset Accounting.....................................................................................24
        Tab      h – Grant Accounting and Billing ...............................................................................25
        Tab      i - Year End Closing and Audit Assistance ..................................................................27
        Tab      j - Year End Close....................................................................................................28




LOB 1 Prog A Accounting Services Program 8-12-10.doc                                                               LOB 1a-1
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014


1. Purpose
We ensure that proper accounting standards and internal controls are applied to the financial
records of the city, consistent with State and Federal regulatory requirements. This provides
assurance to the citizens of the City that their assets are safeguarded. We provide financial
assistance to operational departments within the City, and we create the annual financial report,
which is made available to all.

We review the financial information for accuracy and reasonableness. This insures that meaningful
reports and information are available to management for informed decision-making. We add value
to the numbers by interpreting what they mean in an understandable way for our customers.

The manner in which we help our customers is as important as the information they receive. We
respond in a timely, professional, accurate and helpful way, so that they know they can count on
us to provide the best service possible.


 2. Goals
In the next 2-6 years, our top goals are to:
        a. Continue to produce an accurate, on-time and award winning Comprehensive Annual
           Financial Reports (CAFR) made available to the public by July 15th each year.
        b. Continue to find efficiencies in the CAFR process. Complete it with no external help in
           2010, barring any unforeseen events.
        c. Provide outstanding customer service by providing our customers with timely, relevant,
           informative and value-added financial information in an understandable way. Increase
           or maintain our Customer Focus rating on the Support Services Survey each year.
        d. Maintain overall rating of at least 3.0 in all areas of the Support Services Surveys.
        e. Fully document critical accounting processes in 2009 and 2010 so that we will be able
           to more effectively cross train employees in a consistent way.
        f. Provide centralized grant support to promote faster reimbursement to the City, and to
           prevent compliance and audit problems.


3. Major Services we provide:
Year End Closing and Financial Reporting
General and Cost Accounting
Capital Asset Accounting
Grant Billing, Reporting, and Compliance
Audit Assistance




LOB 1 Prog A Accounting Services Program 8-12-10.doc                             LOB 1a-2
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

4. Organization & Staff
Name                                    Position               FTE   (management)
Janet Frank                             Accounting Manager     1       (1)
Wayne Dillinger                         Accountant C           1
Kim Holben                              Accountant C           1
Tatyana Brainich                        Accountant C           1
Georgiana McNees                        Accountant B           1
LaVonne Steiner                         Accountant B           1

Full time employee equivalents (FTEs)                            6
Management ratio (managers: total employees; city goal is 1:7 or more) 1:6




5. Major Processes we own
See attachments for each process and flow chart

Preparation of the CAFR                                        Tab a
Fund Analysis, Reconciliations and Customer Service            Tab b
DRA Accounting                                                 Tab c
Utilities Accounting                                           Tab d
Cost Allocation Plan for the City, as well as DRS & WSD        Tab e
Monthly/YE Closing                                             Tabs f, i, j
Asset Capitalization                                           Tab g
Grant Accounting & Billing                                     Pending




LOB 1 Prog A Accounting Services Program 8-12-10.doc                          LOB 1a-3
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014



6. Key Customers
Customer Group                                            Hours          % Time              Cost                         Notes
External Customers
Federal & State Agencies (not
counting auditors                                                 562      6%              $28,301         Grant accounting primarily
State Auditors                                                  1,046      12%             $52,675
Downtown Redevelopment
Association                                                     1,069      12%             $53,833

Internal Customers
Parks & Recreation                                              1,201      13%              $60,480
Public Works Utilities                                          1,704      19%              $85,810
Transportation                                                  1,644      18%              $82,789
Development Review Services                                       562      6%               $28,301
All other internal customers                                    1,280      14%              $64,458
Total                                                           9,068     100%             $456,648

                   Note: Hours are based on 2008 time tracking. Dollars are based on 2008 actuals multiplied by the % of hours.



7. Financial Cost Summary Data

Costs based on 2009 Budget

Function                                          Hours         % Time          Cost              Why is it Important
Fund analysis, reconciliations
and customer service work                              3,360            37.1%     $262,435        Ensures reliability, prevents audit issues
                                                                                                  Annual requirement; helpful for bond
Preparation of the CAFR                                1,046            11.5%      $81,348        issues

Asset Capitalization                                      695           7.7%       $54,468        Accountability of assets & valuation
                                                                                                  Debt compliance and reporting to the
DRA Accounting                                         1,060            11.7%      $82,763        DRA Board.

Utilities Accounting                                      577           6.4%       $45,272        Water, Sewer, Surface Water

Monthly/YE Closing                                     1,740            19.2%     $135,816        Necessary for full accountability & audit
                                                                                                  Allows for full accounting of activities and
Grant Accounting & Billing                                562           6.2%       $43,857        increased cash flow.
                                                                                                  Allocates costs appropriately in
Cost Plan                                                  28           0.3%       $2,122         organization; new for 2009

Total                                                  9,068              0%           $707,373




LOB 1 Prog A Accounting Services Program 8-12-10.doc                                                                    LOB 1a-4
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                       Financial & Management Services Business Plan 2009-2014


8. Key Outcomes and Performance Measures

Annual Measures
 Outcomes and
                                                  Goal        2007          2008          2009        Change            Remarks
 Performance Measures
 Our customers are satisfied
 Progress meeting done with
                                                       1        1             1             1         stable
 internal customers
 Rating on biennial customer                                                Due
                                                       3        3                          3.2          7%
 survey: Satisfaction (5 pt scale)                                          2009
 Rating on biennial
                                                                            Due
 customer survey:                                      3       2.9                         3.2         10%
                                                                            2009
 Timeliness (5 pt scale)
 We provide professional capital asset management
 Reconcile Capital Asset
                                                   ≥ 2x
 listings to the General                          annual
                                                                3             4             4         stable
 Ledger (GL) regularly
 Assets are capitalized
                                                              New           New         Average
 within 90 days of being in                        90%
                                                                                        57 days
                                                                                                        NA
                                                              2009          2009
 service
 Inventory of annual capital
                                                Once per      New           New
 asset changes is reconciled                       yr
                                                                                          Done          NA
                                                              2009          2009
 with department’s listings
 We provide quality and timely financial management
 General Ledger monthly                            15
                                                              19.8          14.8          13.1
 close is timely                                business                                              - 34%
 (15 bus, days except year end)                   days        days          days          days
 Three Fund Review and
                                                Within 45
 Account Reconciliations are                                  New
                                                 days of                   100%          100%         stable
 completed each year in a                         close       2008
 timely manner.
 All categories of CAFR rated
 “proficient” by GFOA                            17/17       15/17         17/17        15/17         -12%
 (number proficient / total)
 External financial audits                        UQ, no    Unqualified   Unqualified   Unqualified
                                                  letters   No letters    No letters    No letters
                                                                                                      stable
 completed successfully
 DRA monthly reports are
                                                3rd Thurs
 prepared and submitted to
                                                  of the       Met           Met           Met        stable
 the Board in a timely                           month
 manner
 Financial Statements for
 the Utility Board Meetings
                                                  varies       Met           Met           Met        stable
 are timely (variable timing
 set by utilities)
 We produce a timely, top quality CAFR (Comprehensive Annual Financial Report)
 Total hours to close the
 year, prepare audit                            Decrease
                                                annually
                                                              1635          1587          1590        stable   Essentially unchanged
 schedules and produce
 CAFR. (from time tracking)
 Draft CAFR is ready for
 Auditors                                       May 31st    4/30/2009     4/15/2009      4/22/10      stable
 (within 5 months of year end)



LOB 1 Prog A Accounting Services Program 8-12-10.doc                                                                  LOB 1a-5
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        Outcomes and
                                                  Goal       2007       2008       2009       Change        Change & Remarks
    Performance Measures
 GFOA recognizes CAFR with                         Top
                                                              Yes        Yes        Yes        stable   Award is for previous year CAFR
 “Award of Excellence”                            Rating
 CAFR is to public within 195                    15-Jul       3-Jul     30-Jun     7-July
                                                                                               stable
 days of year end                               195 days    184 days   181 days   188 days
 We provide timely and Quality Grant Management Services
 Meetings are held at least                                                                             To ensure compliance and that
                                                   ≥ 2x      New        New
 twice/yr with departments                        annual
                                                                                    Yes         NA      grants run through the
                                                             2009       2009                            Accounts Receivable system
 using grants.
 American Recovery &
                                                Within 10                         Reporting
 Reinvestment Act (ARRA)                                     New        New
                                                 days of                           met on       NA
 grant reporting is timely                      Qtr end.     2009       2009        time
 and accurate.



9. Sample cost to provide a service
                                                                                      2008                      2009
Approximate cost to produce the CAFR each year                                        $52,675                   $81,348
Percent of total hours devoted to the CAFR prep at the average wage for the entire accounting team



10. Cost Savings or Efficiencies
For each item, identify what it was, what the estimated savings was (in dollars, hours, energy, environment or other
way) and how you calculated the savings.
      1)     Linking of CAFR Worksheets to replace manual typing of values and formulas
      2)     Many Critical Processes Documented and Cross-trained
      3)     Staff Training to Promote Efficiency/Effectiveness
      4)     Automation of Daily Subsystem Reconciliations
      5)     Automation of Oracle Project Billing Flag
      6)     Initiating Routine Fund Reviews/Account Analysis
      7)     Regular grant meetings: Tracking AARA grants Davis Bacon Monitoring



11. Continuity of Operations Plan (COOP)
The city must be able to maintain essential operations during a disaster. The COOP plan binder is
located in the Accounting Manager’s office in the “Go Kit.” The electronic copy can be found on
the “I” drive under Emergency-COOP.

a. What major functions are essential for us to maintain or reestablish in case of a
disaster?
            - Disaster Billing for Reimbursement
            - DRA transfer requests

b. What personnel or positions are essential to emergency operations?
             - Accounting Manager
c. Where do I find our updated emergency procedures?
The FMS Continuity of Operations (COOP) document is currently in the final COOP plan.



LOB 1 Prog A Accounting Services Program 8-12-10.doc                                                            LOB 1a-6
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                       Financial & Management Services Business Plan 2009-2014

12. Analysis of Major Issues
Issue 1: Accounting staff has experienced significant recent turnover; how can we
improve employee stability and service sustainability? (Program/Team level Issue)

Background: The accounting department has seen dramatic turnover over the last several years.
Of the six employees, four have been in the accounting division less than three years. The
manager has been in place for three years.

Few major processes or procedures were documented and accurately described in a manner that
could be used by the rest of the staff.

Workload has not decreased; in the last two years no specific accounting requirements have been
removed but new requirements for fund reviews, cost allocations, and new grant accounting
requirements have been added. Additionally, the act of documenting processes is time intensive,
but considered an investment in the growth of the department.

Discussion:
Work was not necessarily assigned in a manner that capitalized on our strengths. Reassigning
responsibilities where documentation does not exist is cumbersome and risky. Tackling the
learning curve of the existing staff has been a challenge, without good documentation. Outside
training had been provided to past staff members, especially in the area of information systems,
but the knowledge left when they did.

The accounting department has taken the steps to document all critical accounting processes, and
cross-train accounting staff on these processes. Documentation includes flowcharts, step-by-step
processes, and an understanding of why it is important, and who needs this service. They will
then identify primary and secondary personnel who will cover the various needed functions. This
will ensure that our customers can be served, even if someone is sick, on vacation, or retires.
In the past, when a new accountant was hired, training was haphazard, with nothing written to
guide their training. In October 2008 an orientation manual was prepared with written
documentation of policies, goals, and accounting processes. This will ensure a faster learning
curve and consistent training.

The accounting staff is also attending low-cost group on-line training on GASB implementation
rules. Within the last year, the topics have included Accounting for Capital Assets, GASB 54 – The
New Fund Balance rules, and GASB 51 Intangible Assets.

We have made headway, but there is more to be done.

Option 1: Schedule and share valuable training. When possible opt for group participation in
web-training. We then discuss as a group what was learned and how it applies to our processes.
This will prevent the loss of valuable knowledge when staff leaves.

Option 2: Develop and implement a cross training plan. New assignments were given out
in June of 2009, which assigned a primary person and a secondary person to each function. The
next fund reviews will be done in tandem, to mentor each other. This will encourage teamwork as
we share our knowledge with each other, and we will be able to grow in our ability to serve our
customers.


LOB 1 Prog A Accounting Services Program 8-12-10.doc                            LOB 1a-7
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Option 3: Establish clear annual goals with performance measures for each employee.
Where there are training deficiencies, provide them a plan to get the training necessary.

Option 4: Continue what we have been doing. (status quo) No additional cost.

Recommendation: Option 1 immediately, followed by Option 3 when we do performance
reviews and Option 2 by July, 2009. Update 12/2009: Cross training is in place.

-------------------------------------------


Issue 2: How do we take better advantage of the existing automated financial
systems? (Department Level Issue)

Background: The City uses several information systems to record financial transactions. This
includes Oracle, Tidemark, Hansen, CLASS, and the Parks Reporting System to name just a few.

Discussion: The decisions for the software used are primarily made by the Operational
Departments (front-end users) or the Information Technology department (implementer).
Sometimes, this fails to include the needs of Accounting and Oracle Technical Support (backend).
For example, operational needs of processing a customer payment might be the focus of the
software, but, to gain efficiencies, it must interface with Oracle properly, without requiring new or
increased repetitive manual actions by FMS staff. In the past, the Accounting Department has had
to do the work that the computer should have…manually comparing data from each system,
(without the benefit of computer-generated exception reports), then allowing it to post to Oracle.
Since this process was so tedious, it took staff away from the work they should be doing. A
Tidemark replacement and a significant Oracle upgrade are forecast within the next two to four
years. Accounting should be involved in this process to ensure our needs are considered.

Training to the best and most efficient uses of the software is lacking in the department. This is
partially due to the fact that sufficient Oracle support is not provided for training and
troubleshooting. Improper financial reports have been written that have not been fixed. Needed
financial reports do not exist that would enhance analysis, and staff is forced to run multiple
queries and do manual comparisons. Very few exception reports exist. Hundreds of lines of
journals are entered manually because there are problems with the more efficient spreadsheet
upload process. We are discovering problems with other subsystems (Tidemark and Class) that
are providing incorrect information. This costs time and money to solve, and we live with a work-
around.

Accounting has begun to identify bad reports to be corrected. They have also created some
exception reports, and better reporting tools for analysis. More can and should be done.

Option 1: Immediately, Update Excel and continue to rely heavily on it for manual
reporting and analysis. The accounting staff uses Excel to varying levels. This is a very
powerful tool that can save a lot of time. It requires updating because the demands on the 2003
system currently in use are so great it regularly malfunctions and work is often lost. We should
also provide more training on its’ advanced functionality. If we only update the Accounting staff to
a new version of Excel, the cost is minimal. Most of the Accounting staff is testing the new Office
2007, and are noticing improved performance. In addition, a new product called GL Wand has

LOB 1 Prog A Accounting Services Program 8-12-10.doc                              LOB 1a-8
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been introduced as a powerful analysis and reporting tool. Update 8/2009: Some of the staff is
testing Excel 2007 in a pilot project.

Option 2: Near term, improve the City’s ability to generate and troubleshoot &
maintain reports from Oracle. This can be done with focused training for FMS staff; more
dedicated and trained IT resources, contractors, or a combination from the three. Make it a
priority to “clean up” existing Oracle reports, identify which work, which don’t, and remove
redundancies to make on-going report maintenance manageable.

Option 3: Improve the focus and quality of Oracle training to meet the needs of back office
staff. The accounting staff feels that their Oracle training leaves a lot to be desired (especially in
the Projects module). Minimal documentation exists, and we are not able to take full advantage of
functionality due to this lack of training. Without the use of some of this functionality, we are
forced to use a manual work-around. We need to offer more Oracle training, even if it’s in the
form of tutorials. The accounting staff plans to all take part in the Oracle Upgrade during
September of 2009. Some of the documentation we do for testing may be used for future
training.

Option 4: Do not consider a software system operational until the backend is fully
functional. This would mean all major bugs are resolved, meaningful reports are written, and
interfaces are functional and working properly. This did not happen with Oracle but should be the
standard for all new major software systems.

Option 5: Continue what we have been doing. (status quo) No additional cost.

Recommendation: in 2009-2010 Solutions 1 & 2 are essential. Option 3 is important, but a
bigger issue that affects more than just Accounting.


Issue 3: Year end work and creation of the CAFR is a large consumer of staff resources.
We need to find efficiencies so that we can manage this large task in the time allowed.
(Program/Team level Issue)

Background: Before we are able to prepare a CAFR, we must ensure that the data being
reported is correct. This includes making sure that assets are capitalized, that all departments
have forwarded their vendor invoices to be recorded, and that all balances are correct.

Discussion: Some tasks need to wait until all this information is available, but it would reduce
the stress level to shift some of the work typically saved for year end to earlier points in time.
Capitalizing assets earlier in the year would free up staff time for other year end analysis as well as
being able to maintain normal customer service levels. Encouraging the departments we work
with to timely submit information (both for accounts payable as well as adjustments needed)
would also be helpful. Our goal is to “make the numeric target stop moving” as soon as possible,
so that we can actually begin working on the annual report. Late adjustments cause the numbers
to move, and previous work done, needs to be redone. Some of this is unavoidable, but there is
much we can do to minimize this issue.




LOB 1 Prog A Accounting Services Program 8-12-10.doc                                LOB 1a-9
                                    Coordination Draft - Not for Distribution
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Option 1: Capitalize assets each month and proactively plan ahead for work that is
usually done at year end so that scare year end time won’t need to be spent entering data
we’ve known about for months.

Option 2: Work closely with departments to help finalize balances sooner so we won’t
have to rework processes that were done earlier.

Option 3: Fine-tune the CAFR process so that it is as efficient as possible, that the right staff
is working on it, and with our cross-training efforts, those not working on the CAFR can cover the
customer service and other accounting needs during this very busy time. Continue to create time-
saving reports using GL Wand that are now done manually.

Recommendation: All 3 solutions are do-able and are recommended.


Issue 4: How can we reduce the City’s risk of loss or audit findings from inadequate
compliance with internal controls or errors? (Program/Team level Issue)

Background: Each year the City is audited by the State Auditor’s Office. They indicate if our
internal controls are in place and working, if our grants follow proper practices, and if our
accounting records fairly reflect the amounts that they should. Audit results are communicated to
the public and are often featured by the local news media. Excellent results are expected in all
areas.

Discussion: While the accounting department is not solely responsible for prevention of audit
problems, we can go a long way toward detecting problems and making corrections. As the group
settles into a consistent work plan, we can shift some of our existing practices to ones that provide
better return for the investment of time. Identification of best practices and adherence to them will
keep us heading in the right direction.

Option 1: Regular reconciliations of account balances and analytical reviews of fund activity
should be done on a timelier basis. Routine reconciliations of balance sheet accounts would help
us identify errors and patterns before they become established. No additional cost.

Option 2: Grant management training on proper grant procedures and reporting requirements
should be done and communicated to departments using the grants. As FMS role in grant
management increases, we must shift work to accommodate the requirements. Such training is
usually available locally (Oregon or Washington) at a reasonable cost.

Option 3: Continue what we have been doing. (status quo) No additional cost.

Recommendation: Option 1 immediately. This began as of 4th quarter 2007. Option 2 is
needed, and alternative ways to get it at the lowest possible cost are being explored.




LOB 1 Prog A Accounting Services Program 8-12-10.doc                             LOB 1a-10
                                    Coordination Draft - Not for Distribution
                       Financial & Management Services Business Plan 2009-2014

Issue 5: How do we maintain the high level of customer satisfaction we have just
attained with our customers as of 2008? (Program/Team level Issue)

Background: As mentioned earlier, due to staff turnover, the accounting department has been in
survival mode, and hasn’t had the luxury of being proactive in the breadth and depth of customer
service we could provide. Now that we are fully staffed (as of November 2008), we intend to give
customer service our full attention. We will streamline accounting processes to free up more face-
to-face time with our customers. We have made a 2008 goal to visit each of our customers at
least once during the year to discuss any questions or concerns. We will not hesitate to initiate
meetings to discuss problems and solutions to joint problems, and as always, we will respond to
any inquiries within one business day.
14
                                                                                        Results: We have exceeded the
12
                                                                                                              target –
                                           Respondents by Service Area                              Role of Respondents
10

                                                                                                                           Supervisor
 8
                                                                                                                              14%
                                                                                    Support Staff
 6
                                                                                        41%
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                                                                                                                                          22%
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                                                                                                                   23%


 Organization                                          Area           2001   2002    2003/4         2005/6   2007/8       2009     Change
Accounting Group Overall                                              2.7    3.1       2.9           3.0      3.2         3.2       7.1%

Accounting Team
                                                       Quality        2.6    3.0       2.6           2.8      3.0         3.2       8.2%
                                                       Time           2.3    2.9       2.3           2.7      2.9         3.2       6.4%
                                                       Customer
                                                       Focus
                                                                      2.4    2.9       2.3           2.7      2.9         3.1       8.2%
                                                       Satisfaction   2.5    2.9       2.5           2.8      3.0         3.2       8.8%


Discussion: The 2009 survey indicated that the accounting team was appreciated by their users.
Customer comments emphasized the friendly, professional and timely manner that help was
received by this department. In 2009, Accounting was the only FMS department that didn’t see a
decline in scores.

We need to continuously balance our level of friendly customer service with how efficiently we are
servicing our customers.

Option 1: Meet with customers annually to discuss how well we are meeting their needs. This
would allow us to catch problems as they emerge and preclude surprises at the end of the year.
This is the most time intensive.

LOB 1 Prog A Accounting Services Program 8-12-10.doc                                                                LOB 1a-11
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                       Financial & Management Services Business Plan 2009-2014


Option 2: Contact customers by telephone quarterly just to check in with their needs. This
takes less time than meeting, but is a less accurate way to communicate.

Option 3: Contact customers by telephone or email monthly to check in with their needs.
This takes less time than meeting, but is a less accurate way to communicate. It may meet their
needs better, though if they are not “meeting” type people.

Recommendations:
We need to continuously balance our level of friendly customer service with how efficiently we are
completing the transactions with each one. Option 1, Meet with customers annually is the
balance that I think our customers would appreciate the most.


13. Future Issues
Record Retention of Accounting Data.



14. Key Processes and Flow Charts
Tab a – Financial Reporting, including the CAFR (Comprehensive Annual Financial Report)
Tab b – General and Cost Accounting
Tab c - DRA Accounting
Tab d - Utilities Accounting
Tab e - Cost Accounting
Tab f - Monthly Closing
Tab g – Capital Asset Accounting
Tab h – Grant Accounting and Billing
Tab i - Year End Closing and Audit Assistance
Tab j - Year End Close




LOB 1 Prog A Accounting Services Program 8-12-10.doc                            LOB 1a-12
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Tab a – Financial Reporting, including the CAFR (Comprehensive Annual Financial Report)


The Comprehensive Annual Financial Report (CAFR) is a required financial document prepared
each year and submitted within six months of the fiscal year end. For the City of Vancouver
(COV), this submission deadline is June 30th.

This six month CAFR preparation is a very complicated process which is guided by Generally
Accepted Accounting Principals (GAAP). The CAFR is prepared along with the state audit. The
independent auditor’s opinion as to the fair representation of the City’s financial results is included
in the CAFR. It takes a real team effort to complete because the audit and CAFR processes are
happening at the same time with the efforts of the same people.

The primary steps include the following:
       Close the year’s financial activity and do a “big picture” analysis of the results
       Review each fund’s activity and make any final adjustments if necessary
       Using our final numbers, create a series of linking financial reports, and narratives that
       become the CAFR
       Do a preliminary review of the report using a checklist from the Government Finance
       Officers Association (GFOA) before having the internal auditor review
       Obtain the state auditor’s opinion
       Publish and distribute


The City of Vancouver has won awards for their CAFR from the GFOA for the last 23 years. This
is an impressive milestone that is accomplished through their dedicated staff.




LOB 1 Prog A Accounting Services Program 8-12-10.doc                                LOB 1a-13
                                                                        Coordination Draft - Not for Distribution
                                                           Financial & Management Services Business Plan 2009-2014

         Note: The CAFR is the
         Comprehensive                                                                     The CAFR Process
         Annual Financial
         Report                                                           Make
                                                                        Adjusting
                                                                      Journal Entry                    Run Trial
                                              Assets &                                                Balances by                Are               Type in Balances     Link to the
                                                                         & Post
                                             Liabilities                                               Fund and              Adjustments      No     in the CAFR      Budget to Actual
                                            Reconciled &                                             Complete Fund            Needed?              Excel Worksheet       Reports
                                             Reviewed                                               Review Checklist
   Start Here
                                                                                                                                  Yes

                                              Revenue
                                                                                                                                                                           Link to the
            The Month of                     Fluctuation                  Are               Preliminary                     Make Adjusting
                                                                                                                                                                           Combining
            December is                       Analysis                Adjustments          Balances are                     Journal Entry &
                                                                                                                                                                            Financial
              Closed                        Completed &                Needed?             ready to use                          Post
                                                                                                                                                                           Statements
                                              Reviewed


                                                                                           Review Prior
                                                                                           Year GFOA                                                                      Link to the
                                            Expenditure
                                                                                            Comments                                                                       Required
                                             Fluctuation
                                                                                                                                                                       Supplementary
                                              Analysis
                                                                                                                                                                      Information (RSI)
                                            Completed &
                                              Reviewed


                                                                                                                                                                       Link to Govt
   Review relevant
                                                                                                                                                                      Balance Sheet,            Can any Notes
        GASB                                                                                                           Prepare Cover,                                 Stmt Rev/Exp &            be Prepared?
   pronouncements                                                                                                      Tabs, Title Page                                 Cash Flows
                                                                                                                       & Add’l Pictures
                                                                                                                                                                                          No         Yes
                                                                        Prepare Audit
                                                                       Binders for Audit
                                                                                                                            Prepare                                   Prepare GASB 34           Prepare Notes
                                                                                                                       Remaining Notes                                     Adj &               that can be done
                                                                                                                        to the Financial                               Reconciliation            at this point
                                                                                                                          Statements


                     Publish and                   Receive State        Internal Auditor       Final Review of
       End         Distribute CAFR                Auditor Opinion            Review            GFOA Checklist              Prepare
                                                                                                                                                       Link to Statement         Link to Statement
                                                                                                                          Statistical
                                                                                                                                                         of Net Assets              of Activities
                                                                                                                           Section




                                                     Prepare
                                                                                                                        Prepare MD&A
                                                 Transmittal Letter




LOB 1 Prog A Accounting Services Program 8-12-10.doc                                                                     LOB 1a-14
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Tab b – General and Cost Accounting

This function includes the following:
                          1. Fund Reviews and Account Analysis
                          2. DRA Accounting
                          3. Utilities Accounting
                          4. Cost Accounting
                          5. Month End Closing

 1. Fund Reviews and Account Analysis:
           Note: The City of Vancouver uses over 100 funds to track financial
           activity.

           Since it is so large, the activity of the general fund is monitored by
           the accountants based on the organization (org).

           The activity of the other funds is monitored based on allocation of
           workload within the accounting department.

           This chart illustrates what that entails for each fund.




                                                                                                                                  Year end
                Monitor Financial                                                            Customer
                                                        Capitalize Assets                                                        Analysis for
                    Activity                                                                  Service
                                                                                                                                   CAFR




                 Daily Revenue/                                                                                                   Compare
                   Receivable                             Review Mass                     Assist Business                        Beginning/
                 Reconciliations                           Additions                         Analysts                           Ending Fund
                 for some funds                                                                                                   Balances




                Review Balances                            Watch for                         Research                          Provide Overall
                      for                                  Donated or                      Questions and                       Fund Analysis
                Reasonableness                          Disposed Assets                   Provide Analysis                      per Checklist




                 Make Journal                                                             Prepare Financial                    CAFR Balances
                                                        Run Depreciation
                 Adjustments if                                                              Reports as                          and Notes
                                                            Process
                    needed                                                                   Requested                            Updated




                 Make Sure that
                 Cash Balances
                  are Positive
                                                                                                        Funds are Categorized as:
                                                                                                        000-099 General Funds
                                                                                                        100-199 Special Revenue Funds
                                                                                                        200-299 Debt Service Funds
                                                                                                        300-399 Capital Projects Funds
                                                                                                        400-499 Enterprise Funds
                Quarterly Review                                                                        500-599 Internal Service Funds
                   of Funds                                                                             600-699 Fiduciary Funds




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                          LOB 1a-15
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014




Tab c - DRA Accounting

 The Downtown Redevelopment Authority (DRA) is a special purpose government
 established in 1997 to plan, design, finance, acquire, construct, equip, own, maintain,
 operate, repair, remodel, expand, and promote the Vancouver Convention Center and
 Hotel Project. The DRA has no employees and contracts with the City of Vancouver for
 fiscal services.

The fiscal services provided by the accounting department include:

      1. Authorize disbursements and transfer funds as directed
      2. Review and record revenues from city and county taxes
      3. Review the flow of funds activity and work with the Trustee to distribute funds as
         required
      4. Prepare project accounting (PA) journals and other journals as needed
      5. Reconcile the bank statements
      6. Prepare financial reports and analysis and present results to the DRA Board


See flowchart on the next page




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-16
                                                                    Coordination Draft - Not for Distribution
                                                       Financial & Management Services Business Plan 2009-2014



      Authorize                           Review                              Review        Prepare PA       Prepare              Bank            Financial
     Reimburseme                          Revenue                             Flow of       (Proj Actg)       Other           Reconciliation      Reporting
      nt of Bills                         Entries                             Funds          Journals        Journals                             & Advice



     Receive                                                                  Submit         Journal for      Journal for                           Present
   OPCA Reimb                             1st of Mnth:                      invoices to     Property Tax     Bond Interest        Reconcile        results at
   Request from                          Review Hotel                       USBank for      and Insurance                         USBank             DRA
      Hilton                             Motel Lodging                        flow of         (Tax/Ins                           Statements         meeting
                                         Tax and City                          funds            Fund)
                                         PFD Revenue

    Request US                                                                                                Journal for
   Bank transfer                                                               Review        Journal for        County          Prepare JE to      Attend Pre-
                                             th
      $ from                             10 of Mnth:                         activity &    COV OH, Asset       Liability       record Interest,   DRA Finance
   Lockbox Fund                           Review Co.                          prepare       Mgr, Trustee,                      FMV, & Gain /        Meeting
     to OPCA                             PFD Revenue                         worksheet      Audit (Admin                       Loss and other
                                                                              to verify      Fee Fund)                           Bank Adj’s
                                                                            distribution
                                                                            of $ to each                      Journal for                         Attend DRA
        Receive                                                               fund per                         Insurance                           Pre-Board
   notification from                                                         Indenture        Journal for                                          meeting at
     USBank that                                                                              Mgmt Fee,                                           Hilton Hotel
     transfer has                                                                            Decker Lease
       occurred
                                                                           Prepare JE
                                                                           to record
                                                                           flow of                                                                  Prepare
                                         Prepare JE to                     funds                              Journal for                          Analysis of
   Approve OPCA                             record                                                              Hilton                             Financial
   request & notify                                                        transfer
                                          Operating                                                           Revenue &                             Activity
       Hilton                               Deposit                                                            Expenses
                                           Revenue

                                                                                                                                                       Run
    Accumulate all                                                                                                                                Statements of
    requests for PA                                                                                                                                Net Assets,
     Journal Entry                                                                          Post to Oracle                                        Activities and
      into Oracle                                                                                                                                  Cash Flows




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                           LOB 1a-17
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014

Tab d - Utilities Accounting

The accounting department provides accounting services for the City’s utilities. This
includes assistance with external computer systems, asset capitalization, fund review,
financial statement preparation, performing research, and answering questions on an as
needed basis.

Details of revenues and receivables are housed on the Hansen computer system. On a
daily basis, the accounting department imports this information into Oracle and reviews it
for accuracy, making corrections if needed.

The utilities infrastructure involves many capital assets and construction in progress. Our
accountants monitor spending to determine which items should be capitalized, and
depreciated.

Activities in each of the utilities funds are reviewed for appropriate entries and
irregularities. If any corrections are needed, accounting helps.

On a monthly basis, we provide financial reports to distribute as well as analysis of the
activity.




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-18
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-19
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014



Tab e - Cost Accounting


The City’s Indirect Cost Plan is a method to allocate the cost of the centralized
supporting programs (like finance, accounting, budgeting, human resources, legal, etc) to
the operating programs (like police, fire, public works, development services, utilities,
etc) that they serve.

In other words, it allows the city to know the full cost of providing services to the public.
Most of the support services are provided by the general fund. Some of the programs that
receive the benefit of these services reimburse the general fund via this cost allocation.

Following federal guidelines (OMB A-87), each year, the City captures counts of various
transactions (like number of W-2’s, counts of civil case hours, etc), which are called the
“basis.” Then, usage by each operating program of these counts, are determined.
Finally, dollars are assigned, based on usage by operations to calculate a ratio that will be
applied monthly to their actual expenditures.




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-20
                                                                    Coordination Draft - Not for Distribution
                                                       Financial & Management Services Business Plan 2009-2014



             Note: The Cost Plan is a method to allocate support
             services to the direct and indirect programs that use
             those functions. The allocation is based on audited
             amounts from two years prior. For example, the 2008
             allocation is based on 2006 audited amounts.



               Start Here                                                                                                                                                 End


                Use Audited                                                                                                                                        Finalize Indirect
                                               Establish New                                        Obtain Expenses    Input data into
               Amounts from                                                     Obtain Basis                                                 Review Data &           Expense &
                                              Plan in Maxcars                                          of Central         Maxcars
              the most recent                                                      Data                                                        Analyze             Communicate to
                                                 Software                                              Services           Software
                   year                                                                                                                                             Departments




                                                                               Run report from
                                                                             Discover to identify
                                                                                                                        Input data into      Compare data to
                                                                              various counts by
                                                                                                                       costing software      prior year output
                                                                            account strings (Cost
                                                                                                                       by fund and org      (allocations/ratios)
                                                                              Plan-Transaction
                                                                                   Counts)




                    Rule of Thumb:                                            Obtain Civil Case
          Cost Numerator       Support Costs                                   hours from Law
          Plan= Denominator =   All Costs                                        department
          Ratio


                                                                                                    Obtain Accounts
                                                                             Obtain count of W-
                                                                                                    Receivable hours
                                                                             2's issued from HR
                                                                                                     from Treasury




                                 Allocation Basis includes Counts of:

                        FTE’s, Pcard Transactions, AP Counts, AR Hours,
                        Budget Entry Lines, Total Cash Receipts and Cash
                        Disbursements, City PC’s, Civil Case Hours, GL
                        JE’s, PO Dollar Volume, W’2's.




                                                                                                                                                                          8/24/07



LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                         LOB 1a-21
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014




Tab f - Monthly Closing

The financial activity of the City of Vancouver is recorded by the various departments
within Financial Management Services (FMS). When all transactions are accumulated
for any monthly period, the results present a picture of the actual revenue, spending and
costing that has been done by the City, and how it compares to what was budgeted.

Until the activity for a month has closed, the accumulated numbers are a “moving target.”
The process to close the month of financial records involves Payroll, Accounts
Receivable, Accounts Payable, Accounting and Treasury. It is truly a relay, working
together to record transactions in the proper order.

Some transactions are made from actual spending (payroll and payables), and actual
revenue (cash receipts and receivables). Other entries allocate overhead and support
costs, record depreciation, and interest on inter-fund transactions.

There is a trade off between timely closing and accurate reporting. Taking too long to
close the financial books may result in the highest level of accuracy, but may come too
late for decision-making.




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-22
                                                                    Coordination Draft - Not for Distribution
                                                       Financial & Management Services Business Plan 2009-2014




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010       LOB 1a-23
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014

Tab g – Capital Asset Accounting

Capital assets are generally considered property, plant, and equipment owned by the City
costing $10,000 or more with a useful life greater than 3 years. Additionally, new
infrastructure construction (roads, bridges, sidewalks), of $100,000 or more is also
reported as capital. Donated capital is recorded at fair market value at the date of
donation.

Throughout the year, the accountants monitor purchases of assets that meet these
thresholds, and they record these items into the Oracle Fixed Asset Module, which tracks
the asset details and calculates depreciation. When assets are sold, the records are
updated to reflect this activity.
         Note: The City of Vancouver capitalizes property,
         plant and equipment costing at least $10,000 with
         a useful life of 3 years or more. The infrastructure
         $ threshold is for $100,000. Donated capital assets
         are valued at Fair Market Value.                                Start




                    Planning for the
                 Replacement of Assets
                                                                                                                                         Disposing of Capital
                    via ER&R Fund                                Adding Capital Assets
                                                                                                                                               Assets
                 (Equipment Renewal &
                     Replacement)


                                                                                                          Did COV give or
                                                                              Yes                                                             Yes
                                                                                                          receive money?
                 Monthly charges based
                  on usage and repairs                                                                                                                    Accountant
                are recorded in an ER&R                                       561000 Land                           395100 Proceeds Sale Cap Asset       Reviews Cash
                  fund for vehicle and               Accountants monitor      562000 Buildings                      395702 Costs Disposed Cap Assets    Receipt Activity
                 computer replacement                                         562300 Bldg Improve                     No                               for sale of assets
                                                       activity in asset      563900 Other Cap Improv
                                                    accounts and projects     564000 Mach& Equip
                                                                              564100 Computer Equip
                                                                              564400 Telephone Equip
                                                                              564700 Rolling Stock
                                                                                                                  Asset was donated
                                                                                                                   or disposed. Info
                The fund builds until it is
                                                                                                                   provided by dept
                time to replace the asset                                            Accumulate all the
                                                              Is the                                                    contact.
                                                                                    costs and compare to
                                                             activity
                                                                           Yes       budget; Work with
                                                          related to a
                                                                                     dept mgr regarding
                                                            project?
                                                                                         completion
                 Replacement vehicles
                   and computers are                                                                                Memo from dept
                  purchased from this                           No                                                 gives asset detail.
                         fund.

                                                        Run the Mass                     Upload CIP
                                                     Addition Process in               information via
                                                     Fixed Asset Module                ADI spreadsheet

                                                                                                                  Record addition or
                                                                                                                  retirement in Fixed
                                                                                                                   Asset Module by
                                                     Accountants Prepare                                            updating asset
                                                                                          Update CIP                     fields
                                                         Field Updates
                                                                                        source lines as
                                                    (Includes asset#, tag#,
                                                                                           needed.
                                                         location, etc)




                                                    Run Clearing Account
                                                    Process (This process
                                                                                    Post Mass Additions            Run Depreciation
                                                       determines the
                                                       account offset)




                                                                                                                Create Journal Entries




                                                                                                                    End-Update GL




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                                                                                     LOB 1a-24
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014

Tab h – Grant Accounting and Billing


The City receives grant awards from federal, state and other sources which are restricted
for specific projects. The terms of these grants usually have very specific language about
the purpose and allowable spending that can occur with these dollars. Most grants
reimburse the City for allowable spending that has already occurred.

The accounting department is a resource to these projects by learning the rules of the
grant, monitoring spending and preparing monthly or quarterly reimbursement requests.
In addition, the accounting department files all the required annual reports, such as the
Schedule of Expenditures of Federal Awards (SEFA), to the federal agencies. We follow
single audit regulations, and work with state auditors as they review this activity.

See flowchart on the next page.




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-25
                                                                    Coordination Draft - Not for Distribution
                                                       Financial & Management Services Business Plan 2009-2014




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010       LOB 1a-26
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014



Tab i - Year End Closing and Audit Assistance

Closing the fiscal year to financial activity can be a very complicated process. The year
is closed after the annual audit and CAFR is complete. Once this is done, no further
financial transactions can be recorded in that year.

In November, the Procurement group sends a city-wide notice to inform employees about
cutoff dates for year end spending.

Before January spending can occur, the budget is loaded into the Oracle system.

Around late January, the month of December is closed. ** Various reviews and
reconciliations occur, which may lead to further adjusting journal entries. The annual
audit and CAFR are prepared over the next few months. After that is done (usually by
mid June), the year is closed. The accounting staff then prepares all of the requested
audit schedules.

In addition to financial report closures, the City also reports annual W-2 records of
employee wages and taxes to the IRS by the end of January. By the end of March each
year, 1099 forms are sent to relevant vendors for payments received from the City.




** See related flowcharts for month end close and CAFR processes




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-27
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014


Tab j - Year End Close

Closing the fiscal year to financial activity can be a very complicated process. The year
is closed after the annual audit and CAFR is complete. Once this is done, no further
financial transactions can be recorded in that year.

In November, the Procurement group sends a city-wide notice to inform employees about
cutoff dates for year end spending.

Before January spending can occur, the budget is loaded into the Oracle system.

Around late January, the month of December is closed. ** Various reviews and
reconciliations occur, which may lead to further adjusting journal entries. The annual
audit and CAFR are prepared over the next few months. After that is done (usually by
mid June), the year is closed.

In addition to financial report closures, the City also reports annual W-2 records of
employee wages and taxes to the IRS by the end of January. By the end of March each
year, 1099 forms are sent to relevant vendors for payments received from the City.




** See related flowcharts for month end close and CAFR processes




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010   LOB 1a-28
                                                                    Coordination Draft - Not for Distribution
                                                       Financial & Management Services Business Plan 2009-2014




 Year End Citywide
  Memo Regarding
    Cutoff Dates
   (in November)                                                                            W-2s to
                                                                                          employees &
                                                                                             IRS


                                                                  IRS Reporting             1099’s to
                                                                                            relevant
                                                                                          suppliers and
                                                                                              IRS
                                                                                                                      Prepare Audit
                                                                                                                                      End: Close
                                                                                                                       Schedule &
                                                                                                                         CAFR
                                                                                                                                        Year
                   Start:
                 December
                Monthly Close                                       Account
                                                                 Reconciliations


                                                                                                                        Year End
                                                                                                                        Adjusting
                                                                                                                         Entries


                                                                   Annual Fund
                                                                     Reviews




       Post Next
        Year’s
        Budget




LOB 1 Prog A Accounting Services Program 8-12-10.doc/ City of Vancouver, WA / 8/12/2010                   LOB 1a-29
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014


                                                    Payroll Services Team
                                               (Accounting Line of Business)
                                                    Supervisor: Vanessa Sowders


Table of Contents

    1. Purpose.......................................................................................................................... 2
    2. Goals ............................................................................................................................. 2
    3. Major Services we provide ............................................................................................... 2
    4. Programs and Activities ................................................................................................... 2
    5. Organization & Staff ....................................................................................................... 2
    6. Major Processes we own.................................................................................................. 2
    7. Key Customers................................................................................................................ 3
    8. Financial Cost Summary Data ........................................................................................... 3
    9. Key Outcomes and Performance Measures ........................................................................ 3
    10. Cost Savings or Progress in efficiency, effectiveness, cost savings, or sustainability............. 4
    11. Continuity of Operations ................................................................................................ 4
    12. Analysis of Major Issues & Recommendations .................................................................. 5
    13. Future Issues ................................................................................................................ 9
    14. Process Descriptions and Flow Charts.............................................................................. 9
         Tab     b – Tax Payments .................................................................................... 12
         Tab     c – Quarterly Reporting ............................................................................ 13
         Tab     d – Timekeeper Meetings.......................................................................... 15
         Tab     e – Third party payment processing and reporting ...................................... 16




LOB 1 Prog B Payroll Services Program 8-12-10.doc                                                                    LOB 1b-1
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014

1. Purpose
We ensure timely and accurately issue payment to the City’s employees and pensioners.
Our goal is to provide excellent customer service while adhering to federal guidelines
and other laws governing the payroll function.


2. Goals
In the next 2-6 years, Payroll’s top goals are to:

      a. Continue providing year end tax statements to our customers ahead of federal
         deadlines.
      b. Do our part to support sustainability by working with IT toward utilizing
         technology to increase electronic delivery of year end tax statements and
         increase direct deposit participation.
      c. Continue obtaining customer satisfaction results of at least 3 in the Support
         Services Surveys.

3. Major Services we provide
Payment to City employees for services rendered
Pension payments to certain City retirees


4. Programs and Activities
Active employee support
Retired employee support


5. Organization & Staff

Name                                    Position                            FTE    Manager
Vanessa Sowders                         Payroll Supervisor                  1.0    (1.0)
Tanya Price                             Payroll Analyst                     1.0
Rae Escareno                            Payroll Analyst                     1.0
Full time employee equivalents (FTEs)                                       3.0
Management ratio (managers: total employees; city goal is 1:7 or more)                 1:3

6. Major Processes we own
See attachments for each process and flow chart

Process                                                      Location     Workload**
Regular Payroll Process                                      Tab   a        57%
Tax Payments                                                 Tab   b         2%
Quarterly Reporting                                          Tab   c         8%
Timekeeper Meetings                                          Tab   d         2%
Third party payment processing & reporting                   Tab   e         2%
Miscellaneous; including: retirement reporting,                             29%
system testing, and customer service activities
**Workload percent calculated based on time tracking February through May 2008


LOB 1 Prog B Payroll Services Program 8-12-10.doc                                            LOB 1b-2
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014

7. Key Customers
Our key customers are the City of Vancouver’s active employees and retirees.


8. Financial Cost Summary Data

Key Processes                                                                      % of Time         Cost
Regular Payroll Processes                                                            57%           $141,189
Preparing Tax Payments, 3rd Party Payments & Quarterly Reports                       12%            29,724
Timekeeper Meetings                                                                   2%             4,954
Other (Retirement Reporting, Customer Service, System Testing)                       29%            71,836
                                                                                    100%           $247,703
Costs based on 2008 actual balances.




Sample Cost to Provide Services                                                    2008              2009

- Cost to mail a check to an employee:                                             $0.98             $1.11

How it is calculated: Includes printing, postage, stop payment fees, and check reconciliation costs only.



9. Key Outcomes and Performance Measures
Annual Measures

Outcomes and                                                              Chang
Performance Measures                         Goal    2007   2008   2009                     Remarks
                                                                            e
Outcome 1: We provide timely pay related services
Payroll is paid on pay
                                            100%     100%   100%   100%   Stable
date.
Payroll is posted to the
                                           > 90%     66%    92%                     Significant improvement
GL by pay date.
Employees on direct
                                            > 90%    83%    87%
deposit
Bi-annual customer
survey: Timeliness (4 pt                     > 3.0   3.5    n/a    3.4    Stable
scale)
Outcome 2: We provide accurate & efficient payroll services
Errors caused by payroll                             New
                                             < 10            5
requiring manual check.                              2008
Inaccuracy notices from
                                                0     0      0
regulatory agencies
Outcome 3: Our customers are satisfied
Bi-annual customer                                          Due
                                             > 3.0   3.4           3.4    Stable
survey: (5 pt scale)                                        2009




LOB 1 Prog B Payroll Services Program 8-12-10.doc                                                       LOB 1b-3
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014

10. Cost Savings or Progress in efficiency, effectiveness, cost savings, or
sustainability
For each item, identify what it was, what the estimated savings was (in dollars, hours, energy, environment
or other way) and how you calculated the savings.

      1) Payday® bar campaign. Payroll staff decided to encourage City employees to
         opt out of paper deposit advice receipt by offering a Payday® candy bar to each
         employee who opted out. To date, we’ve decreased the number of paper advices
         by 320 each payday in 2007 compared to 2006. (Note: no City funds were used
         to purchase the candy bars.)

      2) Paperless W-2. Beginning in 2006, Payroll implemented a new option for
         employees—to view and print their W-2s from the Oracle system, rather than
         having a paper copy mailed to their home. While this does result in cost savings,
         the main purpose was to better protect our employees’ personal information. As
         an added bonus, these W-2’s are available earlier than those that were mailed.
         Currently, we have nearly 200 employees who choose to print their W-2 from the
         Oracle system. Now that employees can access their pay slips and W-2s from a
         secure internet portal, we hope this number will increase.

      3) Implementation of mandatory electronic pay slip delivery. Effective July
         24, 2009, the City discontinued the printing and mailing of paper deposit advices,
         resulting in an approximate savings of $450 each payday. Employees can now
         access their pay slips through a secure internet site from work, home, or from a
         laptop on the go.


11. Continuity of Operations

      1. The city must be able to maintain essential operations during a
         disaster. What major functions are essential for us to maintain or
         reestablish in case of a disaster?
            a. Payroll processing
            b. Tax payments
            c. Third party payments

      2. What personnel or positions are essential to emergency operations?
           a. Payroll Supervisor
           b. One payroll analyst

      3. Where do I find our updated emergency procedures?
           a. In white binder on the left hand side of the middle shelf of the three shelf
              wooden bookcase located in the Payroll office.




LOB 1 Prog B Payroll Services Program 8-12-10.doc                                                    LOB 1b-4
                          Coordination Draft - Not for Distribution
             Financial & Management Services Business Plan 2009-2014

12. Analysis of Major Issues & Recommendations

Issue 1: Time Sheets within the city are often approved later then specified
deadlines, requiring extra work, overrides, and approvals from other than
normal supervisors and managers. (Program/Team level Issue)

Background: In November or December of each year, the payroll department prepares
and distributes the next year’s timesheet deadlines to department timekeepers and
approvers. This schedule is prepared in Excel using a calendar format, so that the entire
year can be displayed on one printed page.

Each payroll cycle, the payroll department depends on timekeepers and managers in
City departments to ensure that timesheets are submitted with accurate information,
and are approved by the pre-established deadline. Once timesheets have been
approved, they are reviewed by the payroll analysts to ensure that time has been coded
correctly (e.g., overtime coded is correct per union contract or FLSA; employees have
worked adequate hours to justify salary payment; leave balances are adequate to cover
submissions, etc.).

Discussion: Each payroll cycle, approximately 6% of timesheets are not approved by
the established deadline. There are various reasons that contribute to this situation, but
the majority of timesheets that are approved past the deadline were submitted on time
and the only delay was supervisor approval.

When timesheets are late, the payroll analysts send a general email out to those
affected approvers asking them to complete the approvals as soon as possible. After this
point, about half of the outstanding timesheets will be approved within two hours. The
remainder requires follow up phone calls or emails in order to get the process
completed. Additionally, the day or so spent following up on missing timesheets reduces
the amount of time that payroll has to audit the timesheets for accuracy. With over 130
earning codes, this process needs full attention to ensure completeness.

When payroll absolutely must continue on with the City’s payroll process and we have
been unable to get a response from an approver, analysts will email Oracle IT support
(copying the timesheet approver, and instructing them to review the timesheet within
Oracle and advise of any inaccuracies) and ask IT to push the approval through. While
this solves the immediate issue, we have no way to verify that the approver has
reviewed the timesheet as we requested. This is an audit issue and should not be
allowed to continue.


Solution 1: Implement a calendar reminder to automatically pop up on approvers’
Outlook calendars the day that approvals are due. We’d like to investigate automating
this process, so that every year (and when new approvers are hired mid-year) the
reminders are placed on their calendars by a system process. If that’s not possible,
payroll will need to devise a system for placing these reminders manually.




LOB 1 Prog B Payroll Services Program 8-12-10.doc                                    LOB 1b-5
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             Financial & Management Services Business Plan 2009-2014

Solution 2: Implement Procurement’s current practice (theirs pertains to P-Card
receipts) of notifying the City Manager when a timecard approver is consistently late
with their approvals (i.e., three occurrences within a year’s time) as a way to encourage
timeliness.

Solution 3: Implement a “reward system” of sorts to those individuals who are
consistently on time with their approvals.

Recommendation: Solution 1. A manual calendar reminder sent for the May 16, 2008
due date resulted in only eight outstanding timesheets the following day. We’ll work
with IT to determine if an Outlook calendar reminder can be automated. In the
meantime, by September 1 we’ll send manual reminders out to all approvers for the
remainder of 2008.

Update as of 09/17/09: we have used the calendar reminder solution for the past
several months. In an attempt to enhance the results, we are looking into including
department timekeepers on the reminder and may implement the change in the next
few months.

Issue 2: Requirements for Payroll record retention is not efficient. (Department
level Issue)

Background: The Department of Retirement Systems requires Washington employers
who participate in PERS and/or LEOFF to retain certain payroll records for a period of 60
years. Other regulatory agencies have retention requirements as well, but DRS
requirements are the most comprehensive.

Discussion: Currently, payroll records are stored in various locations. The majority of
old records are at the 4400 building in paper form, more recent records are stored in the
ESB basement (in paper form as well), still others have been put onto microfiche and
are stored in the payroll office, and the most recent records (past year) are stored in the
payroll office in paper form.

When payroll needs to research old records—due to requests from the Department of
Retirement Systems, the Law department, auditors, or others—we must determine in
what form the record is stored, where it is located, and then either dig through boxes of
paper or scan through boxes of microfiche. (Note that there are no microfiche readers
located within ESB which also print, a requirement for some requests. In these instances
we make arrangements to review records in another building.) Additionally, record
review at the 4400 building requires an appointment with the City’s records officer.

Solution 1: Implement the City’s Hummingbird system for payroll use; ensuring
adequate security for sensitive information.

Solution 2: Continue boxing paper records and sending them to Central Records for
storage.




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Solution 3: Request proposals for a separate, secure, third party storage system that
accepts electronic submissions as well as scanned documents.

Recommendation: Solution 1. A demonstration of the Hummingbird system by DRS
staff showed that this system would work well for payroll use. Work with designated IT
staff to begin the implementation process for paper and electronic mail, and we’ll begin
using it as soon as possible. Until it has been certified by the state as an acceptable
means of record retention, we’ll also need to keep our paper copies.


Issue 3: Employee self service access to payroll records will improve access
and decrease work load. (Department level Issue)

Background: In 2003, the City introduced a limited version of electronic pay slips,
viewable only through the Oracle system. Currently, over 450 individuals have chosen to
view pay slips exclusively through Oracle instead of on paper.

Discussion: Not all employees have regular, easy access to the Oracle system through
the current setup (e.g., Operations maintenance workers), which has led to a relatively
low participation rate in payroll’s deposit slip “opt out” program, resulting in the City’s
need to mail hard copies to their homes.

Some type of online service, accessible from employees’ homes, would enable more
employees to participate in this program. Decreasing the number of mailed deposit
advices by 700 will result in approximately $378 in savings each month (calculated using
2008 postage increase). In addition to these savings, the possibility of allowing timecard
approvers to access the Oracle approval function from home would reduce the number
of late timesheet approvals, as well as last minute “moves” from one approver to
another.

Solution 1: Work with IT to rollout access to the Oracle self service system through a
secure internet portal.

Solution 2: Request proposals from a third party company to host pay slip information
only. (It’s estimated this would cost around $500 in initial costs and 14 to 20 cents per
pay slip generated.)

Recommendation: Solution 1. IT is currently working on security for self service
rollout through an internet portal, and this would deliver greater services to employees
than would solution 2. Our goal is to have a successful rollout and communication plan
in place by mid year 2009, and to include access to W-2s as well.

Update as of 09/17/09: This has been in place for several months, and all employees on
direct deposit receive an electronic direct deposit stub rather than a paper copy.

Issue 4: It is very costly to send out paper payroll checks when a safer, more
timely and less efficient alternative is available with electronic payments.
(Department level Issue)


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Background: On average, approximately 17% of employees choose to receive a check
instead of an electronic payment (direct deposit) each pay day.

Discussion: It costs over 180% more to issue a check than it does to issue direct
deposit advice. At times, checks are lost in the mail or by employees, necessitating stop
payments and reissues, unclaimed property activities, and manual reconciliation by the
Treasury department.

Many employees who receive checks are Parks and Recreation temporary staff. The
majority of these employees do not realize that they are eligible for direct deposit, or in
some cases, do not maintain bank accounts.

Solution 1: Station a staff member at each recreation site intermittently, as needed, to
maintain high levels of direct deposit participation. Staff member will have a listing of
those not participating in direct deposit, and will make personal contact with as many of
them as possible to answer questions and/or clear up misconceptions about direct
deposit.

Solution 2: Begin collecting direct deposit forms directly from new employees at the
orientation meetings. This will give us an opportunity to encourage paperless viewing of
pay stubs.

Solution 3: Locate vendors to supply paycards as an option for employees who do not
maintain a bank account. If they end up being significantly less costly than check
processing, we should evaluate whether we want to begin utilizing them for all
employees who would otherwise receive a check.

Solution 4: Take advantage of Washington State’s laws which enable employers to
require employees to sign up for direct deposit. Partner with HR to develop a workable
timetable in which to accomplish 100% participation.

Recommendation: A combination of solutions 1, 2 and 3. Beginning immediately, we’ll
begin collecting direct deposit forms directly from new employees who attend HR
orientation meetings. This will enable us to fully explain the process and clear up any
misconceptions employees may have about signing up.

We’ll also do an initial round of personal contact with major recreation sites. If we’re
successful and have 50% of employees who currently receive checks sign up for direct
deposit, we may continue to do this if the number of checks issues rises in the future.
To assist those who don’t have a bank account, we’ll work to locate pay card vendors
who are willing to work with employees on an individual basis.




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13. Future Issues
Items we project will be problems in the future, but for which we currently are not planning.

      •      Enhancements to current timekeeper / timecard approver training.
      •      Improvements to the current worker’s compensation process as it relates to
             employees’ paychecks.


14. Process Descriptions and Flow Charts
      Tab a – Regular Payroll Process
      Tab b – Tax Payments
      Tab c – Quarterly Reporting
      Tab d – Timekeeper Meetings
      Tab e – Third party payment processing and reporting




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             Tab a – Regular Payroll Process

                                                    Processing Employee Payroll


The City of Vancouver’s employees are paid on the 10th and 25th of each month. The
City strives to take advantage of the latest technologies available for efficient
processing of payroll. Employees submit timesheets which are approved by their
supervisor—and most of these are done electronically. The timesheets not only
record the number of hours worked, but also the funding that is paying for the
wages.

Processes are run to generate paychecks or direct deposits for the employees.
Employees either receive their pay information via the U.S. Mail, or they can view
this information electronically through Oracle self service.

After paychecks are generated, they are posted to the City’s financial records.


See flowchart on next page.




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Tab b – Tax Payments

                                               Processing Payroll Tax Payments


Employees of the City of Vancouver are paid twice each month on the 10th and 25th. Being
withheld from their paychecks are certain taxes that the City needs to forward to the federal
and Oregon state government (for employees that live in Oregon). In addition, the City pays
the employer portion of social security taxes. These payments include federal tax withheld,
social security, Medicare and Oregon state taxes.

The same system that runs employee paychecks is also used to generate the tax payments.
Before the payments are sent electronically, the payroll department verifies the accuracy.

See flowchart below.




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Tab c – Quarterly Reporting
                                                   Processing Quarterly Tax Reports


After each calendar quarter, the City must file certain tax reports to the state and federal
governments. The payroll activity for the three month period is combined onto the report,
and is due to the appropriate agency by the last day of the month following the end of the
quarter. For example, reports for the quarter ending on March 31st would be due on April
30th.

The information on the reports is based on payroll records accumulated during the quarter.
The tax reports are completed and reviewed. Some of these reports require additional
payments to accompany the tax reports. If this is the case, an Accounts Payable check may be
requested, or in some cases we may wire the funds. If we discover that we have overpaid our
taxes, we will request a refund.

See Flow chart on next page.




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Tab d – Timekeeper Meetings

                                                        Timekeeper Meetings

In response to an Internal Audit recommendation, the City’s Payroll Department holds
annual meetings with timekeepers in each City department.

These meetings are crucial because timekeepers are the “first line” in properly coding and
monitoring pay items on employee timesheets. Additionally, time saving tips and new
methodology are covered during these meetings to facilitate good customer service and
efficient teamwork.




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Tab e – Third party payment processing and reporting

                                    Processing 3rd Party Payroll-Related Payments


The City of Vancouver’s employees are paid on the 10th and 25th of each month. Being
withheld from their paychecks are certain amounts that the City needs to forward to 3rd party
vendors. Examples include union dues, child support payments, life insurance, etc.3rd party
payments are transferred from the payroll system to Accounts Payable for processing through
an electronic interface. Before checks are mailed, the payroll department verifies their
accuracy.

See flowchart on next page.




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                                                     Accounts Payable Team
                                                    (Accounting Line of Business)
                                                        Supervisor: Bob Alexander

                Effective August 2010: Supervisor position eliminated, team moved under
                                        Vanessa Sowders, Payroll


Table of Contents

    1. Purpose ..........................................................................................................................2
    2. Goals..............................................................................................................................2
    3. Major Services we provide:...............................................................................................2
    4. Organization & Staff ........................................................................................................2
    5. Major Processes we own ..................................................................................................3
    6. Key Customers ................................................................................................................3
        Public ................................................................................................................... 3
        Internal................................................................................................................. 3
    7. Financial Balance Sheet Summary Data .............................................................................3
    8. Key Outcomes and Performance Measures.........................................................................4
    9. Recent Savings................................................................................................................5
    10. Continuity of Operations.................................................................................................5
    11. Major Issues..................................................................................................................5
    12. Future Issues ................................................................................................................8
    13. Process Descriptions and Flow Charts ..............................................................................8
        Tab     a1 – Receipt of Invoices................................................................................... 9
        Tab     a2 –Receipt of Invoices Flowchart................................................................... 13
        Tab     b1– Travel Expense Reports ........................................................................... 14
        Tab     b1– Travel Expense Reports Flowchart ............................................................ 16
        Tab     c1– Upload of Invoices & Bills......................................................................... 17
        Tab     c2– Uploads of Invoices & Bills Flowchart ........................................................ 18
        Tab     d1– Printing Checks for Payment .................................................................... 19
        Tab     d2– Printing Checks for Payment Flowchart ..................................................... 21
        Tab     e1– Purchase Card (P-Card) Transactions ........................................................ 22
        Tab     e2– Purchase Card (P-Card) Transactions Flowchart ......................................... 26
        Tab     f– Invoice to Payment Report ......................................................................... 27




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1. Purpose
We provide fast, streamlined Accounts Payable processes that provide timely and accurate
payment to our customers with superior customer service. At the same time, we will protect
the City’s financial interests to ensure transactions are legal, timely, and provide good value
to the citizens. We will treat each customer as an individual, and try to meet their needs
with excellent customer service.

2. Goals
In the next 2-6 years:
    a. Implement new P-Card (Purchasing card) /Travel card system by mid-2010
    b. Implement Oracle I-Expense for travel by 2011
    c. Provide EFT (direct deposit) for vendors and employee reimbursements by 2012
    d. Begin phasing in a document imaging system by 2013

3. Major Services we provide:
Management of Invoice Transactions
Travel Program Administration
P-Card Administration (audit invoices, maintain budget codes)
Management of Use Tax on Invoices


4. Organization & Staff
Name                                   Position                               FTE                    (Manager FTE)
Bob Alexander                          A/P Supervisor                         1.0                    (1.0)
Michael Holly                          Sr. Accounting Clerk                   1.0
Sandee Schaffer                        Sr. Accounting Clerk                   1.0
Diana James                            Sr. Accounting Clerk                   1.0

Full time employee equivalents (FTEs)            4.0             (1.0)
Management ratio (managers: total employees; city goal is 1:7 or more) 1:4

(Note: Supervisor position cut in November 2010, organization rolled-up with Payroll)

                                                         Lloyd Tyler
                                                    Chief Financial Officer


                                                         Janet Frank
                                                     Accounting Manager


                                                   Bob Alexander
                                              Accounts Payable Supervisor


                                                                                  Michael Holly
                                                                              Sr. Accounting Clerk


                                                                                  Diana James
                                                                              Sr. Accounting Clerk


                                                                                Sandee Schaffer
                                                                              Sr. Accounting Clerk

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5. Major Processes we own
See attachments for each process and flow chart; data as of 2009

 PROCESS                                            Location             HOURS                 WORKLOAD
                                                               Emp A     Emp B      Emp C      PERCENT
 Process Invoices                      Tab A                    35         35        16           72%
 Travel Payments                       Tab B                     3                                 3%
 Purchasing Card
 Administration                        Tab C                      1          20                     18%
 Produce Checks                        Tab D          1           1           1                     2%
 Upload of invoices and bills          Tab E                                  2                      1%
 City Council Report (Weekly)          Tab F                      1                                 1%
 Administer Retainage Accounts         Tab G                      1                                 1%
 Manage PA Journals                    Tab H         1            1           1                      2%
 total time                                          40          40          40                    100%
**Workload percent calculated based on staff workload estimates on a 40 hour week.

6. Key Customers
Public
External customers who represent at least 30% of the work we do:

Mail-in public                                          26%
Call-in public                                           3%
Walk-in public                                           1%
Total                                                   30%
For 2008, percentages are based on staff estimates

Internal
Internal customers who represent at least 70% of the work we do:

                         Fund                           Based on transactions           Based on time
Operations Center                                 29%                            29%
Fire                                              19%                            16%
Parks & Recreation                                12%                            16%
Police                                             5%                             7%
Transportation                                     5%                             2%
Other undefined                                   30%                            30%
Total                                            100%                           100%
Percentages based on AP-Payments – Vendor Detail 2009. Time based on staff estimates.


7. Financial Balance Sheet Summary Data
As of: December 2009
             Program or Activity                       % of time spent   Cost to provide service          Notes
Total budget                                               100%                 $435,432
Mgt. of Invoice Transactions                               72%                  $313,511
Travel Program Administration                               3%                   $13,063
Purchasing Card Administration                             18%                   $78,378



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Produce Checks–Upload Invoices                               7%                   $30,480

8. Key Outcomes and Performance Measures
Outcomes and                             Current
Performance Measures                      Goal       2007         2008    2009       Change      Change & Remarks
Our customers are satisfied
Biannual customer                                                                                2.9 in 2005; survey done
                                              3      3.2           NA     3.2         stable
survey (5 pt scale)                                                                              every other year
Our travel program is effective
Travel Visa card                                                                                 All travel being reduced by
                                        Work load   1,453     1,211       574        -53.0%      budget policy
transactions
Travel advance checks                                                                            Travel advances being
                                        Work load    479          468     107        -77.0%      reduced by policy
processed
Travel report requests                                                                           All travel being reduced by
                                        Work load    642          604     514        -15.0%      budget policy
processed
Cost to process a travel                                                                         Total cost of travel section
                                           < $25    $32.45    $29.79     $10.93      -63.0%      divided by number of claims
request/claim/payment
Our Purchasing Card program is effective
P-card transactions
                                        Work load   13,294    14,101     12,670      -10%
processed per year
P-card transactions                                                                              Requires checking for use
                                        Work load   @ 50%     @ 50%      @ 50%       stable      tax calculation.
processed manually
P-card transactions                                 1,157          864    966
                                         decrease                                    +12%
declined per year                                   8.7%          6.1%   7.6%
                                                                                                 Cost of p-card section
Cost per P-card
                                         decrease   $3.67     $3.22      $6.19       +92%        divided by total transactions;
transaction                                                                                      fewer transactions
We provide timely and accurate invoice processing
Invoices processed per                                                                           Fewer invoices but
                                        Work load   37,512    35,946     33,286      -7.4%       transactions remain stable
year
Invoices processed per                                                                            In 2011 split out manual
                                        Work load     17           16      15        -7.4%       from uploaded transactions
employee daily
Annual transactions (line                                                                         Many # come as a batch
                                        Work load   119447    112677     112473      stable      from utilities; quantify?
count) processed
Transactions processed                                                                           Includes manual and
                                        Work load    163          153     153        stable      uploads
per employee per day
                                                                                                 Sandee & Michael do manual
Transactions per                                     New          New     New         New
                                            TBA                                                  transactions, Diana does
employee daily (manual)                              2010         2010    2010        2010       uploads
Transactions processed                              1,957     1,315      1,170                   Customer education is
                                           ≤ 1%                                      -11.0%      working, hold rate is down
and put on hold per year                            1.6%      1.2%       1.0%
                                                                                                 Denotes cost of labor with
Cost per transaction                       Stable   $5.38     $6.73      $9.42       +40%        steady workload
*Number of invoices divided by available days (255 week days – 10 holidays =245) divided by number of employees
**Lines (transactions) divided by 245 divided by number of employees


Sample Cost to Provide Services                                                   2007 2008 2009
a. Cost to process a travel voucher:                                              $32.45 $29.79 $10.93
(Varies with complexity - approximately 1,195 transactions per year)
How it is calculated: Total cost of program divided by total vouchers processed

b. Cost to process a p-card transaction through AP                                $3.67        $3.22     $6.19
(Using the automated remittance processor - approximately 12,670 transactions per year)



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How it is calculated: Total resources dedicated to p-card processing + Contract ($.22 per billed item) divided by
number of transactions processed

c. Cost to process an invoice:                                           $5.38      $6.73     $9.42
(Varies with complexity - approximately 33,286 transactions per year)
How it is calculated: Total cost of program divided by total vouchers processed


9. Recent Savings
1. Clark Public Utilities payment process. In 2008 we converted the city’s electrical bill from
Clark Public Utilities to where we now upload an invoice that has approximately 450 entries
instead of manually entering them individually into Oracle. Estimated monthly savings was
36 hours of staff time for Public Works, plus an additional 4-6 hours for A/P. (Based on PW
– Ops Center Patsy Newton’s estimate)

2. Purchasing Cards. In 2004 the city introduced purchasing cards to key organizations,
increasing the number of cards in circulation each year. The percent of purchases where P-
cards were used has increased 5% to 6% each year, and it is now used for about 20% of all
purchases.


10. Continuity of Operations
What major functions are essential for us to maintain or reestablish in case of a
disaster?
   • In 24 hours – Payment of Invoices, Travel Reports, P-Cards and Payroll
   • In 48 hours – Check Run, Process of Invoices, Travel Reports, P-Cards and Maintain
      PaymentNet budget codes.
   • In 1 week – Prepare Use/Excise Tax Return and Process Monthly P-Cards.

What personnel or positions are essential to emergency operations?
  • Accounts Payable Supervisor – Bob Alexander
  • Senior Accounting Clerk – Michael Holly
  • Senior Accounting Clerk – Diana James

Where do I find our updated emergency procedures?
  • I:\ACCTSPAY\Desk Procedures\Continuity of Operations (COOP)
  • Flash Drive that contains procedures is with the Accounts Payable Supervisor.
  • Hard copy of the COOP procedures in AP Supervisors office top right hand drawer.



11. Major Issues

AP Issue 1: The existing travel expense program and the required monitoring is a
highly manual process that is not very cost effective. (City level)

Background: The current travel program is manual and paper intensive. It requires each
traveler to fill out an excel spreadsheet and a Word document, print them and circulate




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them for approval signatures. Upon completion of travel, the claim is filed with another copy
of the Excel spreadsheet, copies of receipts and the original approval.

Discussion: Some jurisdictions have far more automated programs; some are integrated
with their financial program, and some are simply stand-alone e-documents that can be
coordinated by email. Since Vancouver has one FTE dedicated to travel regardless of the
amount of travel occurring, there is an opportunity to “harvest” a significant portion of the
employee’s time if we had a more efficient system. Savings would also occur in the
organizations we serve as they would no longer need to print and manually coordinate the
documents.

The city currently owns the Oracle product called iExpense; we would need to upgrade it to
the current version, have IT bring it to operational and conduct training – after which time
we could expect to see significant improvement in the travel process and cross train the
travel clerk to other duties. While it is difficult to project what the payback time would be, it
would save considerable time for the travelers and their staff as well as eventually release
up to half an FTE that might be cross trained to other duties.

Solution 1: No change; we leave the travel program as it is today. This would save the
cost of IT implementation and the disruption of new software. It would save money in the
short run but would be more expensive in the long run. Since it is not “broken” the system
can continue unchanged until there is IT staff time available to assist with the
implementation.

Solution 2: We implement iExpense to streamline the travel process. This will provide long
term savings in time and add flexibility to the organization when we “harvest” the time
savings. iExpense is a commonly used module that has received good reviews on the web
by other municipalities and companies.

Solution 3: Look to another software package for the same function. So far, the most
common automated solutions being used by other organizations that we have found are
FM2 software and SAP. FM2 software is 15 years old and is being used by the City of
Spokane; SAP is used by the City of Tacoma and both say they are outdated software and
not user friendly. This is not a viable option at this time without additional research.

Recommendation: Solution 2. Review and update our processes and existing policies to
transition to iExpense. Identify others who are using it and see if streamlined procedures
exist that would be useful to us. Implementing this process will make it more efficient and
timesaving.

AP Issue 2: The Purchasing Card (P-Card) system contract is expiring, and we
have the opportunity to renew with vendors that may provide better service,
expanded benefits or both. (Department level)

Background: Our current P-Card contract expires on October of 2009. This is an
opportunity to look at other options that will improve our service or value.




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Discussion: In looking at new P-Card options, we may want to use a “one card”. This
would incorporate the procurement purchases along with travel. Presently we have a
separate card for each program. One other thing that should be considered is a corporate
card (ghost card) that is housed in procurement. We would use this for our large suppliers.
In other words each supplier would have a single P-Card that we would use for purchases.
A benefit to using a one card and corporate card is the rebate that the City receives would
be greater than it is now.

Solution 1: We use the State’s program. Their current program uses US Bank.

Solution 2: We issue an RFP for our own P-Card program. This is very time consuming
and the fact that we are a small entity would not give us the best solution.

Solution 3: We piggy back off of another municipality’s contract.

Recommendation: Solution 3. After researching Washington State and the P-Card
contracts of other municipalities, we found that piggy backing off of the City of Tucson
would be the most beneficial option. Their current program is the same as ours and would
be a simple upgrade. We can also implement the one card. The one card is a program that
combines both the travel cards and procurement cards together. This would also tie into
the iExpense for travel. (2009 Update: We found a contract from the State of Pennsylvania
that we were able to piggy back on. The P-Card program is from PNC financial and is
scheduled to start in November of 2009. This is a one card program that we intend to
combine with travel late in 2010.)

AP Issue 3: We do not attend national level training or conferences on a regular
basis and are missing out on both the latest trends and advantageous training.
(Program level)

Background: The AP Supervisor should be attending national meetings in order to keep
the department current on AP issues and to bring better solutions to current procedures.
The last two years the AP Supervisor has not been able to attend these meetings due to
funding issues.

Discussion: There are two issues: Maintaining certification and keeping current with
trends and best practices.
To keep certification through the International Accounts Payable Professional CAPP
program, (Certified Accounts Payable Professional), the supervisor needs 95 CPE credits
every five years. Attending a national level training conference is also worth between 17-20
credits. By attending the national AP conference we would be able to network with our
peers. We would be attuned to see what is available to streamline our processes and to be
able to bring Accounts Payable to the next level. Unfortunately the budget for training in AP
does not allow both the national meeting and local meetings and training needed to
maintain certification.

Solution 1: Attend national level training biannually. Since the cost of going to the
national meeting will use the whole training budget is that we would only go every other
year. In the off year we could use the training for more local meetings.



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Solution 2: Increase the training budget so we could attend national every year and
attend local meetings as well.

Solution 3: Attend Webinars and focus on online training. This would keep the AP
Supervisor updated on issues, plus being able to receive CPE credits toward recertification.

Recommendation: Solution 1 and Solution 3. Attending the national conference every
other year and supplementing it with local conferences as well as Webinars on the off years
would keep Accounts Payable on the forefront. This would also give enough CPE credits to
keep required certifications.


12. Future Issues
Items we project will be problems in the future, but for which we currently are not planning.

1. There are no electronic images of invoices and therefore no backup in case originals are
   destroyed (due to fire, water damage, etc...). Some invoices are manually scanned and
   sent to departments; this is very time consuming. The city has not decided to implement
   an enterprise wide document imaging system at this time. (City)

2. Increase use of electronic payments to vendors (ACH/EFT). This segment will be
   available in Oracle’s next upgrade which is scheduled for next year. (FMS)

3. Web-based supplier info – look into allowing suppliers to monitor payments online,
   provide electronic invoices and electronic payments. (FMS)

4. How do we reduce the number of ”holds” and “refunds” we process?

5. How do we decrease manual transactions?


13. Process Descriptions and Flow Charts


Tab         Subject
Tab     a – Receipt of Invoices
Tab     b – Travel Expense Reports
Tab     c – Upload of Invoices & Bills
Tab     d – Printing Checks for Payment
Tab     e – Purchase Card (P-Card) Transactions
Tab     f – Invoice to Payment Report




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Tab a1 – Receipt of Invoices

Purpose:
Receive invoices via mail at Accounts Payable Department and enter them into Oracle.

Compliance Requirements:
All steps in this process are a result of internal policies and procedures.

Done by:
Accounts Payable

Systems Involved:
Oracle

Process:
      1. Interoffice mail is received twice a day (morning and afternoon).
      2. Finance support staff (Alice) opens mail
      3. Accounts Payable (Jim) sorts A/P mail by type of item:
             a. Invoices with Local Purchase Order #
                       i. See Local Purchase Order Process – These items are already in
                          an invoice batch
                      ii. These items are pulled by A/P staff to enter as time allows
             b. Travel-related items
                       i. Provided to Sandee for processing.
             c. Credit invoices/statements. See Credit Memo process.
             d. Invoice-only items in invoice batch prepared by department. See Invoice
                 Only Items Process. A/P Staff pull and process these as time allows.
             e. P-cards. See P-card Transactions Process.
             f. Statements. See Statement Process.
             g. Research (miscellaneous items, such as invoices without PO #’s)
                       i. This may include a Requisition print out from Operations with
                          information on budget number, vendor, etc.
                              1. This is intended to communicate that the purchase requisition
                                  process has been initiated.
                              2. Operations is assuming that A/P already has the invoice.
                      ii. This may include invoice or packing slip data from the department. If
                          invoice has a PO # on it, the item is placed into the Invoices with
                          Purchase Order # pile.
                     iii. Items in the Research pile are resolved by:
                              1. Check Oracle for inclusion in an existing invoice batch.
                              2. Check Oracle for existing PO.
                              3. Call vendor to determine who ordered item.
                              4. Email department with questions
                              5. Scan invoice into Oracle without match and place On Hold
                                  Status
                                      a. Invoices are scanned using FMS copier/scanner and
                                          are stored on I drive as destination.
                                      b. Within Oracle invoice, select paperclip button


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                                      c. Category: Find: Invoice Internal
                                      d. Data type: File
                                      e. Upload a file: Browse to I drive, select scanned image;
                                          OK
                                      f. Upload successful notification.
                                      g. To see attached image, must exit record and reenter.
                             6. Invoices are physically filed into an On Hold pile at each A/P
                                 Staff member’s desk.
      4. Invoices with Purchase Order #
            a. These items are then further sorted alphabetically by vendor and distributed
                to other A/P staff based on their responsibility.
      5. Invoices with PO #’s are entered into Oracle
            a. This is done via an invoice batch. See Invoice Batch Entry process.
            b. Invoices placed on hold are scanned into Oracle and are sent to the
                departments.
            c. If Hold condition applies, A/P staff place Hold on invoice. See Holds occur for
                the following reasons:
                      i. Accounting Manager Hold: Miscellaneous hold reason
                     ii. Adjustments: Miscellaneous hold reason
                             1. For PSA’s under a blanket PO, multiple releases may be made
                                 against a single PO, and there may be multiple budget
                                 numbers for each release. Oracle receipts are made against
                                 specific budget numbers under each release. This generates a
                                 Receipt Number.
                             2. If the department does not communicate a Receipt Number to
                                 A/P, staff cannot apply the invoice to a receipt correctly since
                                 it is not evident from the invoice contents.
                             3. In this case, a hold is placed on the invoice and the
                                 department is contacted via email with a question about the
                                 Receipt Number.
                             4. The hold is released when the department responds and A/P
                                 can apply the invoice to a receipt.
                    iii. Address Change: A/P needs to change supplier information
                             1. Current changes of supplier information may be made by
                                 certain members of A/P (Diana) and Finance (Mary St. Cyr).
                                 Other members are limited by system access rights.
                   iv. Authorized Signature Required – need signature from department
                     v. Interlocal – Procurement to work on PO issuance or release for
                         interlocal invoice
                   vi. LPO Missing Invoice – Waiting for vendor to reissue invoice for LPO
                   vii. Original Invoice Required - Waiting for vendor to issue original invoice
                         for non-LPO item
                  viii. PO Number Needed – Requisition issued by Procurement hasn’t
                         issued PO yet
                   ix. PSA – Waiting for Procurement to issue PO or release against existing
                         Blanket PO for PSA




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                                    1. If the amount of the release is less than the amount of the
                                        invoice by >10%, a hold is placed on the invoice and
                                        department is emailed.
                                    2. The hold is released when the department responds and A/P
                                        can apply the invoice to a release with sufficient funds.
                            x. Requisition Required – Missing requisition
                          xi. Services Not Yet Done – City is invoiced for future services to be
                                rendered
                          xii. Small Works – Pending PO issuance for invoices on Small Works
                                projects
                   d. Oracle also generates System Holds for the following reasons:
                             i. Distribution Variance: Budget distribution by department on PO does
                                not equal invoice
                            ii. Invoice Cancel: Certain (rare) system issues with invoices that cannot
                                be inactivated in any other way. This hold prevents improper payment
                                of the invoice.
                           iii. Insufficient funds – lack of budget funding availability
                          iv. Quantity Ordered – Quantity received is greater than quantity per PO
                            v. Quantity Received – Pending department receipt
                          vi. Tax Variance – Amount of tax allocated doesn’t equal system
                                calculations of tax
                                    1. Oracle will generate this hold for variances of any amount –
                                        even $.01.
                                    2. Amounts lower than $.05 are always immediately cleared by
                                        A/P since it relates to rounding differences that are not
                                        significant individually or in the aggregate.
                                             a. A/P is working with IT to get this hold to only activate
                                                 when variance is greater than $.05.
                          vii. Quality Hold – Small works project and Procurement needs to verify
                                prevailing wage documents are completed.
                         viii. Price – Differences between per-unit prices of PO and invoice that are
                                greater than +10%.
                   e. If invoice is entered but no Hold is placed on the invoice and invoice is not
                      approved, then invoice remains “in limbo” as Un-Validated and is not
                      distributed to budget numbers.
                             i. There is no automatic system flag or other means to identify these
                                invoices to ensure they are paid.
                            ii. Oracle can be queried to identify these Un-Validated invoices.
                                    1. This report is run monthly.
                                    2. A compensating control exists during the Month-end close
                                        process of the Accounts Payable module. All Invalidated
                                        invoices must be reviewed and either placed on hold,
                                        distributed to budget numbers and approved for payment, or
                                        rolled into the next period.
                   f. If a hold is placed on invoice, A/P staff sends an email to a department for
                      follow up.
                   g. A Hold Report is generated monthly by the A/P Supervisor and distributed to
                      A/P staff for resolution. See A/P Hold Report Process.



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      6. Invoice is approved and will be printed in a regularly-scheduled check run according
         to the payment terms and invoice date. See Pay Invoice via Generating &
         Mailing Check process.
      7. Note: the following types of invoices are scanned into Oracle; all others remain in
         hard copy A/P files only:
             a. Invoices on hold status
             b. Formal bid items (result in fixed assets)
             c. At department request
             d. Certain vendors with high volume of inquiries (ex: temp agencies)




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Tab a2 –Receipt of Invoices Flowchart




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Tab b1– Travel Expense Reports

Purpose:
Receive travel expense reports and the payment of Visa for travel and enter them into
Oracle.

Compliance Requirements:
All steps in this process are a result of internal policies and procedures.

Done by:
Accounts Payable

Systems Involved:
Oracle

Process:
      8. Travel must be authorized prior to their travel dates on a travel authorization
          form.
              a. Form must be completely filled out when traveling overnight, out-of state.
              b. When traveling out-of state you must route form to City Manager’s Office
                   no less than 10 days prior to your travel dates.
              c. This form must be completely filled out and signed be the employee and
                   the departments Director.
              d. All signatures must be signed after the form is printed (No Electronic
                   Signatures).
      9. Employees using Visa travel cards must retain and submit expenditure receipts
          for all expenses that are charged to the card.
              a. City charge cards may be used only for travel related expenditures.
              b. Charge cards may be used only by the person to whom they have been
                   assigned.
      10. Employees may use their own credit cards also for travel and must retain and
          submit expenditure receipts for all expenses.
      11. The employee shall submit an accounting of all charges within ten calendar days
          to Accounts Payable following the return from travel.
      12. In order to be reimbursed, employees travel expenses must be detailed on a
          travel expense voucher with any required documentation and signed by the
          employee. Completed vouchers must then be approved by:
              a. If a Council Member, the Mayor.
              b. If the Mayor, one other Council Member.
              c. If the City Manager, by the Mayor.
              d. If other employee, by the department manager.
              e. If a Deputy City Manager or the Administrative Services Manager or an
                   employee reporting directly to the City manager, by the City Manager.
      13. Documentation typically includes:
              a. Travel expense voucher.
              b. Request for Travel Authorization.
              c. Copy of registration materials.
              d. Original detailed statement of charges for lodging.


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             e. Receipts for non-meal expenses of more than $10.00.
             f. Receipts for all charges to a city charge card.
      14. Each employee is expected to complete verify, sign and submit their own Travel
          Expense Voucher reflecting reimbursable expenses actually incurred. The
          employee who incurred the expense may submit expenditures for other
          employees for reimbursement, but such expenses and the other employee’s
          name must be clearly identified on the voucher.
      15. Once the Travel Expense Report is approved by their Superior it is then sent to
          Accounts Payable for audit to make sure all expenditures are within the policy
          and guidelines and then enters it into Oracle for payment.




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Tab b1– Travel Expense Reports Flowchart




                           Travel
                        Authorization
                           Form




                          Fills Travel
                           Expense
                          Report out




                      Expense report
                       approved by
                         superior




                      Expense report
                        sent to A/P




                          A/P audits
                            report




                        Enters report
                        in Oracle for
                          payment




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Tab c1– Upload of Invoices & Bills

Purpose:
Enter invoice batches into Oracle for payment.

Compliance Requirement:
All steps in this process are the result of internal policies and procedures.

Done by:
Accounts Payable

Systems Involved:
Oracle

Process:
   1. Invoices (PUD, Qwest, Payroll, Use Tax) come from departments or are created
      in AP and are entered in batches (AP Invoice Transmittal Interface) into Oracle
      by AP staff.
   2. Once the Invoice Transmittal Interface file is ready.
          a. Save on the I: drive in Accounts Payable in folder APXFR.
          b. The file should be saved as CSV.
   3 Go to CSV interface program and then search for the file in the I: drive and
      answer “yes” for the intended file to upload.
   4 Go to Reports, and then run COV External Vendor Interface. Put in the name of
      the file you saved in the I: drive.
   5 Go to COV External Vendor Interface on the main menu. Hit CTRL – F11, check
      for any errors on the batch then select submit.
             a.   If errors then fix errors and then select submit.
    6   Go to Reports, and then run Payables Open Interface Import.
             a.   Select Payables Interface as the source.
             b.    Enter a batch name.
             c.   Click “yes” to purge records form the interface, and then submit.
   7. Go to Invoice Batches and pull up the batch name as given above and check the
       amount                          against the invoice. Enter the amount in the
       invoice amount field.
   8. Validate the batch.




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Tab c2– Uploads of Invoices & Bills Flowchart




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Tab d1– Printing Checks for Payment

Purpose:
Generate checks for approved invoices and mail to vendor

Compliance Requirements:
All steps in this process are a result of internal policies and procedures.

Done by:
Accounts Payable

Systems Involved:
Oracle

Process:
Before running checks:
   1. Verify Payroll is not running Payroll checks
   2. Run “Insufficient Fund” hold report.
          A. If any items are on the report, have Budget override the hold.
          B. Re-approve the items on hold.

From Oracle’s Main Menu:
    1. Select; COV Payables Admin.
   2. Select; Payments.
    3. Select; Entry.
    4. Select; Payment Batches.
    5. Enter the Batch Name.
            A. Standard format is YYMMDD followed by your initials.
                    i. All Caps
                   ii. No punctuation
   6. Tab to Pay Group.
           A. Click on the drop-down menu.
           B. Select: Standard.
   7. Tab to Bank Account.
           A. Click on the drop-down menu.
           B. Select: Claims, with the account # 105000004367.
   8. Tab to Document.
           A. Click on the drop-down menu.
           B. Select: Check.
   9. Oracle will then alert you…”Payables is reserving the document”.
           A. Select: OK.
           B. This indicates that no one else will be able to initiate a check run until
               your check run is completed.
   10. Select: Actions…1.
   11. Select the box for: Select Payments.
   12. Select the box for: Build Payments.
   13. Select the box for: Print Preliminary Register.
           A. Tab to printer select box.
           B. Click on the drop-down menu.
           C. Select: ppfin12.
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                                    i.              Note: If no printer is selected, the Preliminary Register will
                                                    not print.
      14. Select: OK.
      15. Run AP Negative Cash Report.
               A. Notification to Carrie Lewellen.
               B. Notification to Wayne Dillinger.
               C. Notification to Tina Honeycutt
               D. Notification to Georgiana McNees
      16. Look at the Preliminary Payment Register and locate the number of checks that
          should print in the run.
      17. Go to the Checkroom and load more than enough stock into the printer to print
          all the checks.
      18. Go back to batch header screen.
      19. Search for your batch.
      20. Select: Actions…1.
      21. Select the box for: Format Payments.
      22. Select the box for: Print Final Register.
               A. Tab to printer select box.
               B. Click on the drop-down menu.
               C. Select: ppfin12.
                        i.      Note: If no printer is selected, the Final Register will not
                                print.
      23. Select: OK.
      24. Checks should automatically start printing at the printer.
      25. When completed, go back to batch header screen.
      26. Select: Actions…1.
      27. Select box for: Confirm Payment Batch.
      28. Select box for: Print Final Register.
               A. Tab to printer select box.
               B. Click on the drop-down menu.
               C. Select: ppfin12.
                        i.      Note: If no printer is selected, the Final Register will not
                                print.
      29. Select: OK.
      30. Select: Printed only if all checks printed as they should have.
      31. Tab to Last Check Number.
      32. Type the last check number in the run.
      33. Select: Confirm.
      34. Run Payment Register.
      35. Enter check run information into “AP Check Register” on the I drive
          “I:\ACCTSPAY\AP Check Register”.
      36. File check run reports.
      37. Mail checks.




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Tab d2– Printing Checks for Payment Flowchart




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Tab e1– Purchase Card (P-Card) Transactions

                                                              P-Card Transactions
     Purpose:
     Acquire, reconcile, approve and record purchases of goods using P-cards, which function as
     Visa credit cards with monthly bills received by the City.

     Compliance Requirements:
     Applies to purchases of goods, materials and equipments under bidding limits and under card
     limits (less than $5,000). Includes some services.

     Done by:
     Departments, Procurement, Accounts Payable

     Systems Involved:
     JP Morgan Chase PaymentNet; Oracle

     Process:

      1. Full Time Employee completes Purchase Card Application form
             a. Guidelines for being a P-card holder include:
                      i. Business-related need
                     ii. Minimum of two purchases per month
                    iii. Intend to make yearly purchases of $750 or more.
                             1. City is charged a fee of $25 to $50 for cardholders who have
                                 transactions below this threshold
             b. Form is signed by Department Manager
             c. Form is routed to Procurement (Aaron)
             d. Form is routed to JP Morgan Chase (JPMC)
      2. Cardholder agreement is signed by cardholder and Department Manager
      3. Card is physically received by Procurement (Aaron) and stored in a locked location
      4. Cardholder attends a one hour training session hosted by Procurement (Aaron).
      5. Procurement sets up card in PaymentNet so it is ready for use
      6. Cardholder initiates card and establishes password.
      7. Cardholder contacts vendors and makes purchases using the following guidelines:
             a. Transaction and monthly limit of $5,000
                      i. In certain situations, there may be a need to temporarily or permanently
                         change the transaction limit. In these situations:
                             1. Cardholder emails Procurement (Aaron) with information justifying
                                 change
                             2. Cardholder’s supervisor authorizes change
                             3. Aaron assesses reason and if he supports change, forwards it to
                                 Julianna for approval
                             4. Aaron contacts JPMC and raises threshold permanently or
                                 temporarily
                             5. Confirms to individual and their supervisor that change has been
                                 made
             b. Daily number of transactions limited to 10
             c. Purchases may be made on-line, in person, over the phone or via fax
             d. None of the following types of purchases are allowed:
                      i. Personal items
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                         ii. Gift items (flowers, cards, etc.)
                        iii. Cash advances
                       iv. Airline tickets
                         v. Hotel accommodations
                       vi. Meals
                       vii. Hazardous materials
                      viii. Weapons or ammunition
                       ix. Gas
                         x. Car rental
                       xi. Automotive repairs
                       xii. IT items
                      xiii. Alcohol
                      xiv. Prescription drugs
                      xv. Items on existing bid contracts
                      xvi. Volumes exceeding quotes or bid thresholds
      8. Supplier processes purchase and requests authorization from JPMC.
                a. Each vendor has an assigned Merchant Classification Code (MCC) within the JPMC
                    system. Transactions may be declined based on the MCC that is within one of the
                    above categories.
      9. JPMC checks purchase against spending limits and MCC information. Transaction is blocked
          if it is one of the items above.
                a. If the transaction is declined, the transaction appears on a Declined Report.
                b. This report is monitored monthly by Procurement (Aaron)
                c. Report is sent to City Manager each month by Procurement with notes on causes of
                    decline.
      10. In some cases, purchase will be approved by JPMC but were inappropriate due to City
          policy (ex: existing bid).
                a. Procurement (Aaron) reviews daily transactions multiple times each day to identify
                    such purchases.
                          i. Notes can be added on transactions to communicate to cardholder,
                             approver, JPMC, or others.
                b. If purchase was inappropriate, Procurement will contact cardholder regarding
                    purchase.
                c. Cardholder will get a PO issued and a check sent to the vendor, who then reverses
                    the P-card transaction.
      11. Individual gets detailed receipt with purchase
                a. If two receipts are provided by the vendor (credit card and detailed receipt)
                    cardholder must include both in their reporting package
                b. If transaction occurred by fax or phone, individual must obtain a faxed receipt
                c. If transaction occurs via the internet, a screen print of the purchase is required
                d. If transaction occurs over the phone, fax, or internet – individual documents:
                          i. Who they ordered item from and contact information
                         ii. Date and time ordered
                        iii. Price of goods
                       iv. Taxes charged
                         v. Description of item
                e. If the receipt is lost, the cardholder must obtain a duplicate from the vendor
                          i. JPMC can provide duplicate receipts at a charge of $5 with 60 days lead time
                             required.
      12. When the purchase is posted by the vendor to Paymentnet, the Cardholder receives an
          automatic email notification from Paymentnet requesting that they review the transaction.
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          Each transaction is given a Transaction Number that is sequentially generated by
          Paymentnet.
      13. Within 3 business days of the date the purchase was posted, Cardholder reconciles JPMC
          purchase information on their Paymentnet site to their physical copies of invoices and
          receipts.
              a. Email notifications continue daily for each purchase until this is done.
              b. Budget numbers are entered for each purchase
                        i. To be used, a budget number must be set up within PaymentNet as a valid
                           number.
                       ii. For invalid numbers, individuals contact Procurement or Accounts Payable to
                           have A/P Supervisor set up new budget codes.
                      iii. This is done in a spreadsheet created by JPMC and is then uploaded into
                           PaymentNet.
      14. When Cardholder has approved purchase within PaymentNet, the Budget Approver receives
          an automatic notification from PaymentNet that they need to approve the transaction.
      15. Within 3 business days of the date that the cardholder completed the reconciliation, the
          department Budget Approver must review purchases, verifies coding, and approves
          purchases online
              a. Email notifications continue daily for each purchase until this is done.
              b. If Budget Approver is out of the office, they contact Procurement who temporarily
                  routes emails and authorization rights to back up approver (if one is established).
              c. If a back up approver is not established, Procurement will authorize purchases if
                  they appear reasonable.
      16. Within five business days posting date, the department collects all receipts and P-card
          payment support and routes this to Accounts Payable.
              a. All screen print reports and attached receipts are provided.
              b. PaymentNet Transaction Number must be written on the package to identify it as a
                  P-card batch (this prevents duplicate payment to vendors).
      17. At the end of each month, an excel spreadsheet with all PaymentNet transactions is
          downloaded onto a shared drive. A/P staff enter information related to each transaction
          into the spreadsheet, including:
              a. Receipts/support received and date
              b. Sales/use tax related to transaction. If no sales tax then Accounts Payable (Diana)
                  will add use tax
              c. Food items are identified
              d. Verifying that a transaction number was included on receipts provided by
                  department.
                        i. If no transaction number was included, A/P Staff route document to
                           Department to obtain a transaction number.
      18. If purchase documentation is not received by month-end, Accounts Payable (Diana)
          contacts Cardholders and informs them that they need to submit their information.
      19. At month-end, Accounts Payable downloads PaymentNet information into Oracle, creating
          an invoice batch, and does the following:
              a. Matches the hard copy invoices to the charges
              b. Verifies tax information
              c. Accounts Payable verifies budget coding through Oracle validation process. If errors
                  are found, default coding for department is used.
              d. Accounts Payable verifies allowability of charges (additional step to earlier review
                  performed by Procurement).
                        i. If the purchase was not allowable based on City policies but was approved
                           by JPMC, the individual and vendor are contacted. The vendor has
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                          historically been cooperative in reversing the charge and accepting alternate
                          forms of payment (check).
      20. Payment is made via wire to JPMC rather than check.
             a. A/P contacts Treasury via email and notifies them of the date, amount, and payee
                 of the wire. Treasury makes the electronic transfer as directed.
      21. Other:
             a. Department manager responsible for reporting changes in status of cardholders to
                 Procurement
             b. If card is lost, cardholder must:
                       i. Immediately call JPMC to notify them
                      ii. Immediately provide written notice to Procurement of loss
                     iii. If both are done promptly and correctly, department is liable for maximum
                          of $100 in false charges
             c. Bob & Aaron are Program Administrators for PaymentNet
                       i. Aaron’s backups are Julianna and Anna.
                      ii. Program Admin rights allow individuals to add/delete/change cards and
                          perform other operational functions
                     iii. Bob does not have a Program Admin backup
             d. The P-Card will be permanently revoked for any or all of the following reasons:
                       i. Use of a P-Card for any personal transaction.
                      ii. Use of a P-Card for cash advances.
                     iii. Use of a P-Card for alcoholic beverages, prescription drugs or narcotics,
                          weapons and ammunition, or radioactive and/or hazardous materials.
                     iv. Falsifying any records related to a P-Card transaction.
             e. If a charge is disputed, the following steps are taken:
                       i. Individual contacts Procurement (Aaron)
                      ii. Cardholder files dispute within PaymentNet:
                              1. Open the disputed transaction
                              2. Select the Dispute tab
                              3. Enter dispute information, including name, merchant state, reason
                                  for dispute, and additional descriptive information
                              4. Submit
                              5. Cardholder calls JPMC to confirm they have record that charge was
                                  disputed.
                              6. Disputes are shown in PaymentNet on the transaction record:
                                       a. Yellow note: JPMC has received dispute record and is
                                          investigating
                                       b. Red note: Dispute investigation is complete and
                                          determination has been made.
                              7. Note: Cardholder and approver must still record transaction as being
                                  checked, even if the dispute is filed.




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Tab e2– Purchase Card (P-Card) Transactions Flowchart




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Tab f– Invoice to Payment Report

This is a major report used to track the time required for our processes




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                    Financial & Management Services Business Plan 2009-2014

                                         LOB 2 Budget and Planning Office
                               (Financial & Management Services Business Plan)
                                                            Manager: Natasha Ramras

Table of Contents

    1. Purpose ......................................................................................................................... 1
    2. Goals ............................................................................................................................. 2
    3. Major Processes.............................................................................................................. 2
    4. Major Services................................................................................................................ 2
    5. Organization & Staff........................................................................................................ 2
    6. Key Customers ............................................................................................................... 3
    7. Financial Sheet Summary Data......................................................................................... 4
    8. Key Outcomes and Performance Measures........................................................................ 4
    9. Continuity of Operations.................................................................................................. 5
    10. Current Issues to address in the next two to three years:................................................. 5
    11. Analysis of Current Issues.............................................................................................. 5
    12. Future Issues ............................................................................................................... 8
    13. Process Descriptions and Flow Charts ............................................................................. 8
        Tab a – Biennial Budget Process....................................................................................... 9
        Biennial Budgets ............................................................................................................. 9
        Tab b – Supplemental Budget Process .............................................................................11
        Tab c – Revenue Forecasting Process ..............................................................................12
        Tab d – Budget Monitoring Process..................................................................................13




1. Purpose
We are the City’s main financial planning and financial analysis resource. We prepare the revenue
forecast and help policy makers make expenditure decisions to ensure a balanced budget over the
short and long terms. We are responsible for monitoring and adjusting the budget to ensure fiscal
stability of the City. We provide financial analysis to all departments and City management and
review their analytical work to ensure consistently high quality.




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2. Goals
    a. Ensure long term financial sustainability of city services
    b. Provide City leadership with tools to effectively manage City’s fiscal resources
    c. Replace the Budget Software system by mid-2011
    d. Budget outreach to internal and external customers
    e. Increase utilization of internal resources to provide analysis and strategic information to
       policy-makers
    f. Align performance measurement process and budget through expanded fiscal planning and
       management city-wide


3. Major Processes
   a. Revenue forecasting
   b. Operating and Capital Budget processes:
              Biennial Budget creation
              Supplemental Budget process
              Position control
   c. Budget monitoring and reporting
   d. Fiscal analysis
   e. Communication of budget information:
              Preparation of the annual budget document
              Workshops for Council, union representatives, city employees, city residents

4. Major Services
   f. Stewardship of the budgetary process
   g. Revenue forecasting
   h. Coordination of fiscal planning, policy development and organizational and management
      analysis
   i. Assisting departments in implementation and planning of operational programs and capital
      projects
   j. Communication of budget information to internal and external customers
   k. Consistent budget monitoring and reporting to senior management and council
   l. Fiscal analysis assistance on request; review of financial work done by departments
   m. Personnel position control

5. Organization & Staff

Name                                                         Position             FTEs (management)
Natasha Ramras                                  Budget       & Planning Manager   1.0     (1.0)
Maly Chandravongsri                             Budget       Analyst C            1.0
Julie Huffman                                   Budget       Analyst C            1.0
Doana Anderson                                  Budget       Analyst C            1.0
Vacant                                          Budget       Analyst C            1.0

Total FTEs (Full Time Equivalents)                                                5.0 FTEs (1.0)
Ratio of management to staff (city goal 1:7)                                       1:5

(Note: 1 position cut as of Nov 2010)


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                                                             City Budget Office
                                                     Organization as of January 1, 2010



                                                                                  Lloyd Tyler
                                                                                     CFO




                                                                                Natasha Ramras
                                                                               Budget & Planning
                                                                                   Manager




                                                                   Maly Chandravongsri
                                                                    Budget Analyst C



                      Vacant
                                                                     Julie Huffman
                   Budget Analyst
                                                                    Budget Analyst C
                   Cut Nov 2010




                                                                     Doana Anderson
                                                                     Budget Analyst C




6. Key Customers

External:
              Customer group                                                             Percent of work

              City residents                                                                  4%
              Other jurisdictions                                                             1%
              Total percent of work with external customers                                   5%

Internal:
         City Manager                                                                         35%
         Senior Budget Review Committee                                                        1%
         City Council                                                                         20%
         City employees                                                                        2%
         City Management Team                                                                 10%
         All city departments                                                                 27%
         Total percent of work with internal customers                                        95%
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7. Financial Sheet Summary Data
Based on 2008-2009 2 yr time allocation average and 2009 Budget
Program or Activity                                           %                                      2009
                                                          Allocation                              Expenditures
Total Function Cost                                                                                   $381,225

Revenue Forecasting                                                                8.75%
                                                                                                     $47,408
Biennial Budget process                                                            27.5%             $148,996
Supplemental Budget process                                                        17.5%             $94,815
Fiscal Analysis                                                                   16.25%             $88,043
Budget monitoring and reporting                                                     12%              $65,016
Review of analytical work done by departments                                       5.5%             $29,799
Preparation of the Biennial Budget Document                                       11.25%             $60,953
Communication of budget information to stakeholders                                1.25%              $6,773



8. Key Outcomes and Performance Measures

Annual Measures
Outcomes and Performance
Measures                                              Goal         2007    2008            2009   Change   Remarks

Biennial Budget is balanced within fiscal resources
Budget recognized for excellence                                           Due
                                                     Award          Yes                    Yes    stable   Awarded every 2 years
by GFOA                                                                    2009
Cash as a % of Council policy                                                                              X% cash at year end
                                                    100% or        New     New
level (1.5 to 2 months                               higher                                 ?              (meets/exceeds/doesn’t
                                                                   2009    2009                            meet) policy
expenditures)
We manage expenditures effectively
                                                                                                           During the last year of the
Percent variance of YTD
                                                                                                           biennium, unspent budget
expenditures to budget –                              ≤ 5%         -2.3%   -5.3%            ?              to be carried forward (appx.
General, Street, Fire funds                                                                                1.5-2%) is not removed.
Dollar value of budget                                             New     New
                                                      ≤ 5%
corrections needed                                                 2009    2009
Our revenue forecasting is accurate
Initial year General Fund                           ≤ 2.5%
                                                                   1.7%    0.2%             ?
revenue forecast is accurate                       deviation
Initial year revenue forecast for                   ≤ 2.5%
                                                                   2.7%    -1.3%
all operating funds is accurate                    deviation
We publish timely budget reports
Quarterly Forecasts are on time                  60 days from
                                                  end of qtr        Yes      Yes            ?
to the public
Biannual Budget completed date                   NLT Dec 31st        ?       ?              ?
Our customers are satisfied
Bi-annual customer survey:                                                 Due in
                                                      >3.0          3.3                    3.1
satisfaction                                                               2009




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9. Continuity of Operations
The city must be able to maintain essential operations during a disaster.

a. What major functions are essential for us to maintain or reestablish in case of a disaster?
       Budget over-ride of purchases if close to the end of the biennium and no budget available
       for emergency purchases and payroll charges.
b. What personnel or positions are essential to emergency operations?
       Any budget staff member is capable of this action
c. Where do I find our updated emergency procedures?
       Procedures are consistent with day to day operations; emergency procedures are
       integrated within the overall FMS emergency procedures

10. Current Issues to address in the next two to three years:

Budget Issue 1: We need to better integrate the budget process into the City’s strategic plan
and departmental business plans into the budget process to ensure a long-term fiscal sustainability
of city services. (Department level)

Budget Issue 2: The Budget software system being used by the city is being discontinued by
the vendor and must be replaced. (Department level)

Budget Issue 3: The limited analytical resources in departments is reflecting in our workload
and lower ratings in the support services survey. We need to identify how to improve the level of
analytical support to departments. (Department level)

Budget Issue 4: We need to involve citizens deeply in the 2011-2012 budget process.
(Completed – no analysis included)

Budget Issue 5: We must improve Capital budgeting and reporting processes to insure higher
transparency and accountability. (Completed – no analysis included)


11. Analysis of Current Issues

Budget Issue 1: We need to better integrate the budget process into the City’s strategic plan
and departmental business plans into the budget process to ensure a long-term fiscal sustainability
of city services. (Department level)

Background: For many years, we have approached the budget as a biannual project, with
minimal focus on the out years. As a result, while we have balanced every year we have not yet
addressed the structural imbalance that currently afflicts the city. The “Horizons” process of
applying a “priorities of government” (POG) approach to the budget in 2010 is proving to be a
good step toward better integration with the Strategic Plan, but we are still not where we need to
be.

Option 1: Continue with the POG (Horizons) approach beyond the current budget
cycle. Expand it to include a 4-6 year horizon with the intent to address the fiscal imbalance with
a long term plan. Keep the Horizons group together and meeting regularly to accomplish this goal.

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Option 2: Do what we have always done, change nothing. Accept that the current level of
integration is enough.

Option 3: Begin to craft a long term Fiscal Strategic Plan that addresses our resource
needs, what is available and how to bridge the gap over the next 6 to 10 years. This would be a
long term action and probably take 1-3 years to complete.

Recommendation: Option 1 in the near term, Option 3 beginning in 2012 if resources
allow and there is leadership support for a Strategic Financial Plan


Budget Issue 2: The Budget software system being used by the city is being discontinued by
the vendor and must be replaced. (Department level)

Background: The current budget software being used by the City was modified by the vendor to
be marketed as a municipal budgeting solution. It never became fully functional due to design
flaws, and they have subsequently decided to abandon the market, leaving the city with
unsupported software.

Replacement software needs to be comparable with the Oracle financial system we employ, allow
for detailed budgeting at multiple levels and support features and controls needed for municipal
government.

Cost is a major concern, as are risk, long term viability, and the transition needed during a difficult
time.

Option 1: Revert to Access & Excel. The previous system was based on Access and required
the use of Excel spreadsheets to be emailed to Budget and inputted into the system. The current
iteration we would use would be more automated, but would still be “cribbed together” and would
represent a high risk system with few internal controls. While it would be based on familiar
software, it would be a poor solution.

Option 2: Put out a RFP for vendors to provide a solution. This is a viable option that would
result in a vendor and system that should meet our needs if we can afford it and if the time frame
can be made to work. Ideally, we would want something in place before the next major budget
year. It will probably be very expensive but would produce a long term solution.

Option 3: Implement the Oracle Budgeting module. The City already owns the Oracle
Budget Module as part of their financial package. Until recently, it was panned as a poor product
that was not used by very many municipalities. It was rejected in favor of the current solution,
which we are replacing. However, in the last few years the product has apparently improved and
there are a reasonable number of municipalities using it. We have a good relationship with the
Vendor, who has a good reputation. The overall cost of this solution would be minimal compared
to a new package, mostly the additional support contract as well as training and installation costs.

Recommendation: Option 3. It is timely, by a reputable vendor, cost effective and relatively
low risk.




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Budget Issue 3: The limited analytical resources in the various departments has been reflected
in our higher workload and lower ratings in the support services survey. We need to identify how
to improve the level of analytical support to departments. (Department level)

Background: In early 2010 analytical resources in many of the departments were the subject of
personnel cuts, and further positions have been identified in the second round of cuts in November
2010, including one of the Budget positions intended to “take up the load” for some of the
departmental positions that were cut earlier.

The centralized Budget function has already seen drops in their customer service scores, most
notably in timeliness of service (down 11.4% from the previous survey). Further cutting staff
positions while consolidating responsibility will only exacerbate the problem.


2009 Support Services Survey results

                                   Area                        2000      2001   2002   2003   2005   2007   2009   Change
Fin. & Mgt Services                                                2.8   2.7    2.8    2.8    2.8    3.1    3.1    -3.8%
                                   Quality                         2.9   2.8    2.9    2.9    2.9    3.2    3.1    -3.7%
                                   Timeliness                      2.7   2.6    2.8    2.7    2.8    3.1    3.1    -4.5%
                                   Customer Focus                  2.9   2.7    2.8    2.8    2.8    3.2    3.1    -2.5%
                                   Satisfaction                    2.8   2.7    2.8    2.8    2.8    3.2    3.1    -4.2%
Budget                                                                                                      3.1
                                   Quality                         2.9   3.0    2.9    3.0    3.2    3.3    3.2    -3.7%
                                   Timeliness                      2.5   2.8    2.7    2.7    3.1    3.3    2.9    -11.4%
                                   Customer Focus                  2.8   2.9    2.9    2.9    3.2    3.1    3.0     -0.4%
                                   Satisfaction                    2.7   2.9    2.9    2.8    3.1    3.3    3.0     -8.3%

Recommendations:

Option 1: Look for ways to improve the budget process that are less staff intensive.
Issues related to our staff responsiveness and timeliness come to head during the budget process
when all departments are trying to complete their work. Our budget software is a major limitation
to the departments doing much of the work themselves in a timely manner; therefore improving
that software is probably the best change we can make.

Option 2: Educate the customer group to help manage their expectations for timeliness
of service. This is on going and perhaps something we need to do no matter what. There are
fewer staff, fewer departmental resources and the same amount of work (or more) to be done as
we try to find innovative ways to save money.

Option 3: Add additional staff. This is not a viable option in the current biennium.

Recommendation: Option 1 & 2. There are no viable options other than “do what we can with
what we have” and try to improve our processes while keeping customers informed.




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12. Future Issues
- Integration with Performance Management with Budget at the program level
- Assisting with monitoring program performance and utilizing program outcomes in making
budget adjustments
- Identification of capital funding sources for three major city programs: Transportation, Parks
Capital and General Governmental Major Facilities maintenance.
- Succession training



13. Process Descriptions and Flow Charts
Tab a – Biennial Budget Process
Tab b – Supplemental Budget Process
Tab c – Revenue Forecasting Process
Tab d – Budget Monitoring Process




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Tab a – Biennial Budget Process

The budgeting and planning process of the City of Vancouver includes 4 distinct processes:
   • Biennial Budgets
   • Supplemental Budgets
   • Forecasting (Mid Year Review of Biennium Budgets)
   • Budget monitoring and reporting

Biennial Budgets

The City of Vancouver creates their budgets for a two year period starting on odd numbered year
such as Biennial budget for the years 2005 – 2006, Biennial budget for the years 2007 – 2008 etc.
Biennial budgeting process typically starts around the middle of the preceding year and comprises
of:
    • Creation of Baseline Budget (revenues and expenses arising out of the city’s current
       activities and on the initiatives that are already approved & under implementation); and

      •     Decision Packages (proposals for new initiatives that includes projections of additional
            revenues and expenses arising out of each of these new initiatives).

At the end of the budgeting process the City formally adopts its budget, which includes both the
Baseline budget and “approved” decision packages. The ongoing portion of this adopted budget
becomes a baseline budget for the next two years.

The flow chart at “Tab a” below includes the process flow of the City’s Biennial budgeting process.




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                                                         Biennial Budget Process

        General Ledger Data                                                Oracle HR
        -financial history                                                 Position-related data


                                    Budget System
                                                                                                        Excel
                                                                                                        - calculate totals;
     BO: Revenue                  BO: Baseline Adjustments
                                                                                                        - calculate rates:
     forecast                     - Remove OT
     distributed to               - Annualize;                                                                -
     departments                  - Update rates
                                                                            Empty: Decision                       Narrative for
                                                                            Package Sheet                         update
                                            Baseline to
                                            departments
     Departments
     review                                                             Departments add              Requests
     revenues                                                           new requests                 w/ FTEs
                                            Departments:
                                            - Move baseline w/in
                                            the same total;                          All
                                            - No changes in the                      requests           HR for class review
                       Ap                                                     If
                                            salary budget;
                                            - FTE re-allocation.           changes
                          If                                               needed
                          changes
                          needed

                                                     BO review stage


           BO
                              If changes
          Makes                 needed                 Senior Mgmt
         changes                                                                                     Non -Approved
                                                         Review



                                                     City Manager’s                                  Non -Approved
                                                     Recommended/                                    packages
                                                     Prelim Budget
                        If changes                                                          Some prior
                          needed                                                        unapproved packages
                                                            City Council                    “turned on”
                                                              Review                                          Non-
                                                                                                              Approved


                                                           Final
                                                           Approved
                                Post to                    Budget
                                the GL
                                                                                     Provide Position
                                                                                     Allocation Info to HR

                                                     Prepare &
                                                     Publish Biennial
                                                     Budget (Budget
                                                     Book)
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Tab b – Supplemental Budget Process
Supplemental Budgets are used, when the city requires to take-up new initiatives in the middle of
a biennium budget that were not originally included in the adopted Biennium budget.

Supplemental budgets are comprised of “Decision Packages” that includes projected additional
revenues and expenses arising out of each of these new initiatives. Supplemental budgets do not
require the creation of a base-line budget.

       Budget Office Prepares an
       Excel Template &
       Distributes to Departments



          Departments Submit
          Requests



          Budget Office                                                                         HR Classification
          Reviews all Requests                                FTE Requests                      Review


          Non-FTE Requests


          Budget Office Compiles                                                           Position Review
          Request to Assess                                                                Committed Determines
          Funding Need                                                                     Classification or Re-class



          Identify Approved vs.
          Not Approved.
                                                                     Senior Management Review of
                                                                     Requests
                                                                                                             Not
                                                                                                             Approved
                  Budget Office Reworks
                  Changes by Senior Mgmt.
                                                                             Recommended




                                                                     Presented to Council for
                                                                     Approval
                  Budget Office reworks changes
                  by Council if necessary                                                                    Not Approved

                                                                     Final Recommended Presented
                                                                     to Council for Approval



                                                                     Approved Supplemental
                                                                     Changes Posted to the Current
                                                                     Budget in Oracle Financials




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Tab c – Revenue Forecasting Process

The Budget and Planning Office creates a six-year revenue expenditure and revenue forecast
which is used as a revenue constraint in preparation of the biennial budget. The Budget office also
is preparing quarterly reviews of the adopted Biennial budget and revenue projections and
recommends modifications based on the trends in the local and national economies.

                                                 Revenue data from Oracle
                                                   downloaded to Excel



                                           Budget Manager analyzes revenues                     Assumptions made
                                           using historical trend analysis in                   of the growth factors
                                           light of the latest information on                   for various revenue
                                           the state of the economy, leading                    streams for the next
                                           national, state and local economic
                                           indicators and other available
                                           relevant information.                                     Assumptions
                                                                                                  reviewed with the
                                                                                                 City CFO and Senior
                                                                   Budget Manager                 Management Team
                                                                   Prepares an Excel
                                                                      Template &
                                                                     Distributes to
                                Departments Review their relevant
                                 revenue streams and recommend
                                      adjustments as needed.



                                    Budget Manager                                              No
                                                                             Are
                                     Reviews the                                                          No
                                                                         adjustments
                                      suggested                                                           adjustments
                                                                         acceptable?
                                     Adjustments
                                                                                               Yes


                                                                                       Implement needed
                                                                                       adjustments
                                                            Final Forecast
                                                            is published



                                                          Present to City
                                                         Management Team


                                                     Present Final Forecast to
                                                     Council


                                                          Revenue Forecast is
                                                          uploaded into HOST




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Tab d – Budget Monitoring Process

The budget monitoring process consists of a series of reports and conversations as needed; it is a
relatively informal process.

Council level
           -            Quarterly Report and workshop

Department level
         - Quarterly financial reports & meetings
         - Monthly spending reports and analysis of spending patterns to ensure meeting
             budget goals
         - Proactive notifications when activity that appears to be significant variance from the
             budget occurs




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                      Financial & Management Services Business Plan 2009-2014

                                         LOB 3: Procurement Line of Business
                                 (Financial & Management Services Business Plan)
                                                     Manager: vacant Supervisor: Anna Vogel

Table of Contents

    1. Purpose ......................................................................................................................... 2
    2. Goals ............................................................................................................................. 2
    3. Major Services we provide ............................................................................................... 2
    4. Organization & Staff........................................................................................................ 2
    5. Major Processes.............................................................................................................. 4
    6. Key Customers ............................................................................................................... 4
    7. Financial Balance Sheet Summary Data ............................................................................ 5
    8. Key Outcomes and Performance Measures........................................................................ 5
    9. Cost to Provide Services .................................................................................................. 6
    10. Savings or Progress in efficiency, effectiveness, cost savings, or sustainability.................... 7
    11. Continuity of Operations ................................................................................................ 7
    12. Major Issues to address in the next two to three years..................................................... 8
    13. Future Issues ..............................................................................................................12
    14. Enclosures - Process Descriptions and Flow Charts..........................................................13
        Tab      a – Capital Purchases...............................................................................................14
        Tab      b – Commodity Bids.................................................................................................19
        Tab      c – Formal Quotations..............................................................................................20
        Tab      d – Daily Purchase Orders ........................................................................................24
        Tab      e – Formal Bids .......................................................................................................26
        Tab      f – Maintenance Agreements ....................................................................................37
        Tab      g – Purchasing Cards ..............................................................................................44
        Tab      h – Piggyback Contracts...........................................................................................46
        Tab      i – Professional Services ...........................................................................................47
        Tab      j – Requests for Proposal and Qualifications...............................................................57
        Tab      k – Small Works Contracts........................................................................................58
        Tab      l – Supplier Maintenance ..........................................................................................63
        Tab      m – Surplus ............................................................................................................64
        Tab      n – Small Works Quotes ...........................................................................................65
        Tab      o – Interlocal Agreements Description .......................................................................72
        Tab      p – Monthly Status Report........................................................................................76




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                      Financial & Management Services Business Plan 2009-2014



1. Purpose
We provide the City with quality streamlined procurement services and creative customer service
that exceeds our customers’ expectations. We achieve this by being value added consultants and
pro-active problem solvers. Our emphasis is on personal integrity and ethical interactions while
guaranteeing responsible accountable stewardship of taxpayer’s dollars.

2. Goals
In the next 2-6 years, our top goals are to:
a. Update and re-create our professional service forms and implement the contracts and
    iProcurement® module in Oracle. This is currently scheduled to begin fourth quarter of 2010.
b. Decrease the number of “confirming only” purchase orders by expanding the P-card program
    and working with the departments to find alternative ways to purchase materials.
c. Re-evaluate our procedures & processes with the implementation of the Oracle upgrade.
d. Build upon the City’s sustainability efforts through development of green purchasing policies.
    This is dependent on the City’s sustainability goals and timelines.
e. Expand training to departments (ex. New hire trainings, department presentations, year end).
    Ongoing, as needed and requested.
f. Maintain draft documents for all processes, including new legal changes and lessons learned.
g. Upgrade and implementation of new functions to the P-Card program. Ongoing – Original
    upgrade to new program was completed in October of 2009, continuous expansion.


3. Major Services we provide
a. Purchasing Services
             Daily Purchase Orders
             Commodity Bid/Contracts
             Professional Service Agreements
             Request for Proposal/Qualifications
             Purchasing Card Administration

b. Contract Administration
             Small Works Projects
             Public Works Construction Projects
             Maintenance Agreements


4. Organization & Staff
Name                                    Position                        FTE      Manager
Vacant                                                           1.0
                                        Procurement Service Manager              (1.0)
Anna Vogel                              Procurement Supervisor   1.0             (1.0)
Scott Cramer                                                     1.0
                                        Senior Procurement Specialist
Lynn Reude                                                       1.0
                                        Senior Procurement Specialist
Kimberly Armstrong                      Procurement Specialist   1.0
Elma Malloy                             Procurement Specialist   1.0
Mike Wolfson                            Procurement Specialist   1.0
Full time employee equivalents (FTEs)                            7.0             (2.0)
Management ratio (managers: total employees; city goal is 1:7 or more) 1: 3

LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                 LOB   3-2
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                      Financial & Management Services Business Plan 2009-2014




                                  Lloyd Tyler
                             Chief Financial Officer


                                 Vacant
                       Procurement Services Manager


                                  Anna Vogel
                             Procurement Supervisor


                                                                 Lynn Reude
                                                       Senior Procurement Specialist, D


                                                                Scott Cramer
                                                       Senior Procurement Specialist, C


                                                            Kimberly Armstrong
                                                          Procurement Specialist, B


                                                               Mike Wolfson
                                                          Procurement Specialist, B


                                                                Elma Malloy
                                                          Procurement Specialist, B




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                        LOB   3-3
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014


5. Major Processes
See attachments for each process and flow chart Percent of work based on 2008 data

Process                                              Employee>   A         B        C    D          E          F    G
                                                     Location                                                       Mgr         total      Percent
Formal Bid Construction                                Tab e     0         0        0    1          0        36      0           37         15.4%
Professional Service Agreements                        Tab i     20        0        0    2          20         0     0           42         17.5%
Request for Proposals/Qualifications                   Tab j     20        0        0    15         0          0     0           35         14.6%
Small Works Quotes                                     Tab n     0         10       0    1          0          4     0           15         6.3%
Procurement Cards                                      Tab g     0         0        1    10         20         0     0           31         12.9%
Small Works                                            Tab k     0         30       0    1          0          0     0           31         12.9%
Daily Purchase Orders                                  Tab d     0         0        13   5          0          0     0           18         7.5%
Commodity Bids                                         Tab b     0         0        5    0.5        0          0     0          5.5         2.3%
Piggyback Contracts                                    Tab h     0         0        5    2          0          0     0           7          2.9%
Supplier Maintenance                                   Tab l     0         0        9    0.5        0          0     0          9.5         4.0%
Maintenance Bids                                       Tab f     0         0        0    0          0          0     0           0          0.0%
Surplus                                                Tab m     0         0        5    1          0          0     0           6          2.5%
Commodity Quotes                                       Tab c     0         0        1    0          0          0     0           1          0.4%
Interlocal Agreements                                  Tab o     0         0        0    1          0          0     0           1          0.4%
Capitol Purchases                                      Tab a     0         0        1    0          0          0     0           1          0.4%
                                                                                                                                 0
Total Hours                                                      40        40       40   40         40       40      0          240



6. Key Customers
Public (External) Customers
External customers who represent the work we do (based on time): 54% of available time
 Customer                A                 B            C        D              E         F              G          Total               Percent
                                                                                                         Mgr
 Call-in                     25                45           40        60            45         20              45         280              40%
 Email                       18                30           30        35            35         40              45         233              33%
 Mail-in                     45                20           20         2            10         30               5         132              19%
 Walk-in                     12                 5           10         3            10         10               5          55               8%
                                                                                                                          700
For 2009, percentages are based on a compilation of individual employee estimates



Internal Customers
Internal Customers who represent the majority of transactions displayed by time dedicated;
Procurement manager not included in this estimate. Total equals about 46% of available time
Customer v Employee>
                                                 A          B         C             D          E             F       hr/wk               % time

Parks & Recreation                               1          15        15            8          10          30                  79          13.3%
Transportation                                   5          25        3             5          10          30                  78          13.1%
Operations Center                                2          30        15            10         5                               62          10.4%
IT                                              25                    12            3          10                              50           8.4%
Facilities/Risk/Property                         2                    3             5          5           30                  45           7.6%
Fire                                            25                    7             8          5                               45           7.6%
Police                                          25                    6             5          5                               41           6.9%

LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                                       LOB   3-4
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

Construction                                     5     15       5          4     5         5              39          6.6%
Engineering                                      2              4         10     5         5              26          4.4%
Equipment Services                               1             10          5     5                        21          3.5%
Finance                                          1              5          3     5                        14          2.4%
WREC                                             1              4          4     5                        14          2.4%
DRS                                              1              3          4     5                        13          2.2%
Law                                              1              2          4     5                        12          2.0%
Parking                                          1              3          4     3                        11          1.8%
CMO                                              1              1          2     5                         9          1.5%
Solid Waste                                      1              1          3     2                         7          1.2%
Unknown/misc                                           15       1         13                              29          4.9%
Hours per week                                 100%    100%    100%       100%   100%     100%           595       100.00%




7. Financial Balance Sheet Summary Data
As of: December 2009
                Major Processes                        % of   Cost to provide                  Notes
                                                       time      service
Total budget                                            $707,382
                                                      100%
Formal Bid Construction                                 $108,937
                                                      15.4%
Professional Service Agreements                         $123,792
                                                      17.5%
Request for Proposals/Qualifications                    $103,278
                                                      14.6%
Small Works Quotes                                       $44,565
                                                      6.3%
Procurement Cards                                        $91,252
                                                      12.9%
Small Works                                              $91,252
                                                      12.9%
Daily Purchase Orders                       7.5%         $53,054
All other                                   12.9%        $91,252
*Cost to provide service is annual budget divided by % of time spent on major processes


8. Key Outcomes and Performance Measures

 Outcomes & Performance
 Measures
                                                      Goal    2007       2008    2009     Change   Analysis

 We process Request for Proposals/Quotes (RFP/RFQ) effectively
                                                      Work
 Number of RFP/RFQ in current year                             20          32     18       44%
                                                      load
 Under development: A measure of                              New        New     New
 timeliness of processing RFPs/RFQs
                                                       NA                                  NA
                                                              2010       2010    2010
 Customer Satisfaction Score                                             Due
 (Internal Survey, 5 pt scale)
                                                       3       2.9                3         3%
                                                                         2009
 Our Formal Bid and Small Works Contracts processes are excellent
 Number of bids and quotes                            Work                                         2007 did say “27”
                                                               49          67     51       24%     originally
 processed                                            load
 Formal Bid time from receipt of                      < 45    New        New
 request through opening date:
                                                                                  37       NA
                                                      Days    2009       2009
 Quotes time from receipt of request                  < 45    New        New
 through opening date:
                                                                                  29       NA
                                                      Days    2009       2009
                                                              New        New
 Received Bid Protests                                <2                          0        NA
                                                              2009       2009

LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                     LOB   3-5
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

                                                                 New       New
 Sustained Bid Protests                                <1                             0       NA
                                                                 2009      2009
 Customer Satisfaction Score                                               Due
 (Internal Customer Survey)
                                                       ≥3         2.9                 3        3%
                                                                           2009
 Our Professional Service Agreement (PSA) process is efficient
                                                      Work       New       New
 Total active PSAs                                                                   448      NA
                                                      load       2009      2009
                                                      Work       New       New
 Total new/amended PSAs this year                                                    133      NA
                                                      load       2009      2009
 Customer Satisfaction Score                                               Due
 (Internal Survey, 5 pt scale)
                                                       ≥3         3.2                 3.1      3%
                                                                           2009
 Purchase Orders (POs) are processed in a timely manner
 Sole Source Forms (New                               Work       New       New
                                                      load
                                                                                      29      NA
 Requests and Renewals)                                          2009      2009
                                                      Work       New       New
 Number of PO lines processed                         load
                                                                                    11,904    NA
                                                                 2009      2009
 Average PO Cycle time (req                                      New       New
                                                       NA                             2       NA       No goal first year
 approval through PO approval)                                   2009      2009
 Customer Satisfaction Score                                               Due
                                                       ≥3         3.3                 3.2      3%
 (Internal Survey, 5 pt scale)                                             2009
 Our Purchasing Card program is efficient
                                                      Work
 Total p-cards in circulation                                    160       170       177       4%
                                                      load
 Total number of P-card                                                                                AP says 12,670?; fewer
                                                     Increase   13,294    14,101    12,449     12%     employees, too
 purchases
 Percent of purchases charged to
                                                     Increase    17%      15.79%     10%       47%
 P-cards
 Average P-Card transaction
                                                     >$200      $264.99   $271.12   $255.95    6%
 value
 P-card suspensions for violations                     <5         0         0         7       NA
 Customer Satisfaction Score                                               Due
                                                       ≥3         3.5                 3.1      11%
 (Internal Survey, 5 pt scale)                                             2009
 We are an efficient and customer oriented organization
 Total purchase $ per                                                                                  Includes contract
                                                     ≤ $10.0    $11.80     $8.96    $14.28     59%     administration staff
 procurement FTE (In $Millions)
 FTEs of procurement employees
                                                     .11 -.13    0.13      0.14      0.17      23%
 per City employees
 Number of consolidated / multi-                     Increase
                                                                  95       120       112       7%
 year and “piggy-back” contracts                      Usage
 Customer Satisfaction Score                                               Due
                                                       ≥3         3.2                 3.1      3%
 (Internal Survey, 5 pt scale)                                             2009



9. Cost to Provide Services
                                                                                              2009
Average cost to manage a Professional Service Agreement                                       $276
Based on 448 PSAs active and 17.5% of the budget
Average cost to initiate and manage a RFP                                                     $5,738
Based on 18 RFPs and 14.6% of the budget




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                       LOB   3-6
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

10. Savings or Progress in efficiency, effectiveness, cost savings, or sustainability
For each item, identify what it was, what the estimated savings was (in dollars, hours, energy, environment or other
way) and how you calculated the savings.

      1) Paperless Online Plans and Specifications – Historically we have provided hard copies of
         plans and specifications for construction projects over $35,000 for our contractors to obtain
         and/or purchase. In the fourth quarter of 2007 we issued a RFP for electronic plans and
         specifications services; we received five responses and selected the Builder’s Exchange of
         Washington. This service not only provides us a significant cost savings, but it also
         provides us staff time savings and helps our department to be more sustainable. Now
         instead of spending $1,000 or more to print a medium to large size project we pay a flat
         fee of $2000 per month to post all of our projects on BXWA website. To put the savings in
         perspective, if we had implemented this change in 2003 when we bid the Firstenburg
         Community Center project, we would have saved over $20,000 in printing costs. Beginning
         in September of 2008 we stopped carrying paper copies of formal bids and have moved to
         only online plans and specs, in addition we moved o completely paperless construction
         projects in January of 2009.

      2) Paperless Request for Proposal/Qualifications and Commodity Bid/Quote Packets – In an
         effort to make these areas more sustainable and to save time and money printing packets
         we have moved to email distribution of packets when possible. We have also added the
         ability to request the packets electronically through our website. Now 80% or more of our
         packets for RFP/Qs and Commodity Bids/quotes are distributed through email saving time
         and money.

      3) Online Registration for Consultants and Commodity Suppliers – In the last two years we
         have streamlined our vendor registration process. Before suppliers had to print the form
         from our website, fill it out and mail or fax it in to us. Now suppliers are able to go online
         fill out the online form and submit it from our website. This not only streamlines the
         process for potential suppliers but also allows us to download the information from the web
         directly into our supplier database for commodities and consultants. It saves staff time in
         data entry of these forms and helps improve the error rate on information.

      4) Electronic Purchase Orders – In the last year we have added electronic notification of
         purchase order approvals to our departments. Once a purchase order is approved an email
         notification is sent to the department requestor with an attached copy of the purchase
         order. This saves us time in mailing yellow copies of the purchase orders to the
         departments daily. In addition we have made this an option for our suppliers. They can
         receive their purchase orders through email once it is approved instead of receiving a paper
         copy which cuts down on staff time and mailing costs and is a more sustainable option.
         We have continued to add more vendors to the list of those that receive purchase orders
         through email.


11. Continuity of Operations
The city must be able to maintain essential operations during a disaster.

a. What major functions are essential for us to maintain or reestablish in case of a
disaster?
   • Purchasing Cards
LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                   LOB   3-7
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

      •      Purchase Orders
      •      Small Works
      •      Professional Services

b. What personnel or positions are essential to emergency operations?
   • Procurement Services Manager -
   • Procurement Supervisor – Anna Vogel
   • Senior Procurement Specialist –Scott Cramer
   • Procurement Specialists – Kimberly Armstrong and Aaron Thompson

c. Where do I find our updated emergency procedures?
   • They are located in our manager’s office on the bookshelf as well as a copy of the COOP
      plan in the supervisor’s office.

12. Major Issues to address in the next two to three years

Procurement Issue 1: Manual paper contracts created outside of our electronic
financial system are inefficient and create potential accountability issues. (Department
level Issue)

Procurement Issue 2: Internal city customers who purchase goods and services often
do so before valid purchase orders are completed, creating compliance issues for the
city. (LOB level Issue)

Procurement Issue 3: Projected long term staff losses will require changes to either
processes or service expectations in some areas. (LOB level Issue)

Procurement Issue 4: As sustainability awareness increases within the city, there will
be an increased need for contracts that reflect the city’s position on sustainability. (LOB
level Issue)



Procurement Issue 1: Manual paper contracts created outside of our electronic
financial system are inefficient and create potential accountability issues. (Department
level Issue)

Background: Professional Service Agreements and construction contracts currently include both
paper transactions and electronic Oracle transactions as part of their process. It would be more
efficient and enhance accountability if the paper documents were created inside Oracle instead of
as a separate action.

Professional Service Agreements are initiated on paper. Requests come in multiple-page paper
copies (required for signatures) as approved by the department representatives. They are then
entered into the Oracle system for processing as a purchase order and a separate contract is
(often) created outside of Oracle. These three portions are all tied together by PO number and the
paper copies are kept together. The electronic copy does not have a copy of the contract or initial
approval documents stored with it.


LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                 LOB   3-8
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

Discussion: Reasons for the updating of the process:

1) This process is paper intensive and the purchase order can not be easily tied to the contract.
   It has to be done in a separate paper file outside of Oracle. Automating would allow for one
   point of reference, and on most projects all documents would be held within Oracle.

2) Authorizations for encumbrances are handled outside of Oracle through a services request
   form. This form often confuses departments. Also the budgetary approval can not be seen in
   the system; you have to go to a paper document for that record. Having the approvals in
   Oracle would allow for a workflow process and greater efficiencies for approvals by the
   departments.

Solution 1: Update current forms to provide clearer direction for departments. In the interim this
would provide an opportunity for some enhanced customer service for our departments and ideally
clear up confusion. It will allow our department to re-evaluate how we are asking for the
information and to update our forms. In fact, this solution should be carried out even if we intend
to implement new software as an intermediate step. This will allow us to more efficiently obtain
the needed information to create, amend and encumber Professional Service Agreements.

Solution 2: Implement the Contracts and iProcurement modules in Oracle and revisit/redefine
the processes. This is the most efficient solution to the problem and will streamline the process
while removing the need for most manual forms. This solution offers us the ability to use Oracle
to create and maintain contracts and to tie them directly to the purchase orders. It will also
eliminate the need for a separate paper form to approve/authorize the encumbrances. All of the
processes would be moved inside Oracle which has existing approval work flows and will allow for
electronic approval that can be easily seen and tracked. In addition this solution could also be
used eventually for formal bid construction projects and potentially by other City departments to
create the specification documents. If the functionality is still there this could, when fully
implemented, benefit not only procurement, but our users as well. Cost of licenses is not an issue;
we currently own the software module, we simply have not implemented it yet. The only costs
associated with this option would be in the implementation and training phase, which are already
budgeted and aligned in the Oracle priorities list.

Solution 3: No change. Do not significantly change the way we are processing in the near term.
This option has the advantage of causing the least disruption to existing practices. Revisit how we
are currently processing agreements to determine whether or not a better approach is available
through the existing system/constraints.

Recommendation: Solutions 1 and 2; If solution 2 is approved, then reengineering the
process before the software is put into place is even more important. Solution 1, reengineering the
process, should begin immediately if the software is planned for installation in 2009; if it is not,
then the process reengineering can begin in the second quarter of 2009 so that it is in place before
the budget closes that year.


Procurement Issue 2: Internal city customers who purchase goods and services often
do so before valid purchase orders are completed, creating compliance issues for the
city. (LOB level Issue)


LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                  LOB   3-9
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

Background: Departments purchasing goods/services before obtaining a purchase order which
has resulted in an increasing number of “confirming only” purchase orders. We have created
reports through Discoverer that allow us to track/monitor the use of confirming only purchase
orders to see where to focus our efforts for improvement. We have been successful in turning a
department who was one of the worse offenders into one of the departments with the least
offenses. Through meeting with the department and discussing their needs we were able to refine
processes to meet their needs and to make suggestions for other ways to process items. Now that
the problem seems to be increasing again we need to continue/expand our efforts.


Discussion: Reasons for addressing this issue:

1) By ordinance the Procurement Services Manager is one of the only people allowed to enter into
   a contract for goods and services for the City. A purchase order is the contract for the
   purchase of goods and services.

2) Vendors are often confused when they ship an order then receive a purchase order, it often
   results in double shipment of the items which results in more work for the department and the
   vendor.

3) Meeting with the departments to discuss their needs/issues not only helps us to help them
   procure items in the correct manner but helps us to understand their business and how we can
   better serve them, which improves our customer service.

4) Regardless of the solution chosen, we will need to analyze the data in the report to identify the
   departments to meet with and schedule meetings to discuss the requirements and their needs.

Solution 1: Meet with problematic departments to discuss their needs and provide them with a
reminder of the purchasing policies/procedures and their buying options. This option has been
successful in the past. We were able to bring one of our worst offenders down from over 200+
confirming only lines to 12. This solution reminds the departments that we are there as a resource
for them in their procurement needs. It also gives us the ability to brainstorm with the
department to see how we may better meet their needs or how we can help them process their
procurements more efficiently.

Solution 2: Continue to expand the use of the p-card with departments that are not a problem
through options like ghost cards and continue to educate the departments on what types of
services the p-card can be used for. Offer departments more options in procuring needed goods
and services and for making it easier for them. Although we can process a purchase order in as
little as 15 minutes if all approvers are available, the P-card provides them with added flexibility.

As a component of this solution we will evaluate if the right people in their department have P-
Cards or if more cards are needed. Also we will evaluate whether or not a ghost card would be
beneficial for specific suppliers the department uses often.

Solution 3: Meet with all departments more regularly to provide education on use of the cards.
Treat all departments the same, and do not pick out the high or low performers. This has the
advantage of being an easy solution but may not be considered fair by compliant participants. It


LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                    LOB   3-10
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

also provides us an opportunity to circle back with departments to see how things are working or
brainstorm new solutions.

Recommendation: Solution 1 to address the immediate issues is the most cost effective. Once
all problematic customers are doing appropriate purchase procedures, Solution 2 is viable as
follow-on if resources allow.


Procurement Issue 3: Projected long term staff losses will require changes to either
processes or service expectations in some areas. (LOB level Issue)

Background: Maintaining customer service levels with increased workloads and
reduced/fluctuating staffing levels has been an ongoing issue for our department in the last few
years. We have historically been able to maintain or exceed our customer service ratings in our bi-
yearly survey results in most of our areas. We would like to see continued improvements in our
survey results and at the very least maintain our current standings.

Discussion: In the last few years we have had staff move on to other positions which has
created gaps in workloads. Other buyers have had to take on additional work to cover until
positions have been filled. This has resulted in slower turnaround times and paperwork review to
fall behind. Paradoxically, we have implemented new and improved processes that have helped us
to find more efficiency in some areas to include paperless contracts and more automated
transactions.

In addition we are anticipating the loss of a support staff in 2009 or 2010, which will result in the
distribution of that work back to staff increasing existing workloads. While we have done an
outstanding job of streamlining processes and removing some of the work through streamlining
efforts this will still have an effect on workload levels for the remaining staff.

There is the likelihood that one of our staff will be gone for an extended period of time in 2009.
We need to anticipate and plan for the shifts that the absence will require. We want to remain
proactive in our planning so we don’t have to be reactive when the leave takes place.

Solution 1: Continue to evaluate our processes for all staff and take advantage of streamlining
opportunities. As a part of the evaluation we need to look at which options will save us the most
time and provide the most efficiency. Communicate with our customers to manage their
expectations during the time we will be short staffed.

Solution 2: Evaluate the core duties performed by support staff to determine what functions and
time frames are most essential and what processes or functions can be done at a lower level or
with slower turn around time. Coordinate with major customers to determine what functions they
consider most critical.

Solution 3: Plan and initiate cross-training to ensure all affected core functions will be done in a
timely manner. Develop a coordination plan to cross train specific staff to cover specific functions
or areas, beginning with the more critical ones likely to be emptied first. The plan does not have to
be extensive, but should address who is cross-trained for which duties and a plan for continued
cross training.


LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                   LOB   3-11
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014

Recommendation: Solution 2 is the most important to initiate since it will provide a plan to
begin training staff to cover expected shortfalls. Once it is done, solution 3 to identify who will
take on what new functions and ensure cross training occurs while the employees are available.


Procurement Issue 4: As sustainability awareness increases within the city, there will
be an increased need for contracts that reflect the city’s position on sustainability. (LOB
level Issue)

Background: The City is currently working on development of a Sustainability plan. We have
already made efforts within our department to increase the City’s sustainability level through multi-
year projects, online plans and specifications and working with the departments to include
environmentally friendly items in their documents.

Discussion: As the City continues to define their sustainability efforts and plan Procurement
needs to stay flexible and willing to help them meet those goals.

Solution 1: Provide input and guidance when asked from the Sustainability Manager.

Solution 2: Continue to stay informed about Sustainability efforts throughout the state and
country, and begin internal discussions with staff to make them aware and to lay groundwork for
us to integrate aspects of a sustainable purchasing program when the city’s position is clearer.
Provide input and remain connected to internal efforts.

To stay informed of the best practices throughout the state and country we will need to attend on-
line and maybe off site trainings and gather as much information from other agencies as possible.

Solution 3: Develop a draft sustainability plan for Procurement.

Recommendation: Solution 1 and Solution 2 provides us the best value at the moment,
while the standards and level of participation for the city are not yet well defined. We will need to
review the sustainability plan and provide input as needed. This will help us to ensure the plan
meets legal requirements and that it isn’t going down a path that we can not legally support.

Solution 3 would be premature at this time, but will be more appropriate when the city has a
better idea how fully they want to initiate sustainability in procurement.


13. Future Issues
Items we project will be problems in the future, but for which we currently are not planning.

Backing up data – Current contracts are not in central records
Maintaining current and legal boiler documents
Creating and implementing trainings for new hires and departments
Creating/Maintaining internal training for new staff or for changes of duties
Consistency amongst departments with Amendments & Special Provisions (construction projects)
Disposal of surplus items
Facility General Conditions
Purchasing card expansion of services and capabilities

LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                   LOB   3-12
                                   Coordination Draft - Not for Distribution
                      Financial & Management Services Business Plan 2009-2014


14. Enclosures - Process Descriptions and Flow Charts
Tab     a – Capitol Purchases
Tab     b – Commodity Bids
Tab     c – Commodity Quotes
Tab     d – Daily Purchase Orders
Tab     e – Formal Bid Construction
Tab     f – Maintenance Bids
Tab     g – P-cards
Tab     h – Piggyback Contracts
Tab     i – Professional Service Agreements
Tab     j – Request for Proposals/Qualifications
Tab     k – Small Works Contracts (under $35)
Tab     l – Supplier Maintenance
Tab     m – Surplus
Tab     n – Small Works Quotes
Tab     o – Interlocal Agreements




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                        LOB   3-13
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

Tab a1 – Capital Purchases Flowchart
(Supplies, Materials, and Equipment over $35,000 but less than $100,000)




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-14
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014




Tab a2 – Capital Purchases Description
(Supplies, Materials, and Equipment over $35,000 but less than $100,000)


TASK                                  RESPONSIBILITY           STANDARD PROCEDURE
Bid Specification                     Project Manager          Electronically provide special provisions and proposal items to Procurement Services. Also
                                                               provide budget number(s), mail code, project estimate, and funding source. Provide a list of
                                                               potential suppliers, if known. – Procedure
Review                                Procurement Services     Add front end documents and incorporate any other documentation or requirements. Procedure

                                                               Estimated Time: 5 working days
Final Review                          Project Manager          Opportunity for project manager to review the final document before advertising, printing, and
                                                               mailing. – Procedure

                                                               Estimated Time: 3 working days
Printing                              Procurement Services     Coordinate with print shop. If print shop is at full capacity, outside printing firms may be used,
                                                               if determined by Procurement Services and the Project Manager to be the best alternative. –
                                                               Procedure.

                                                               Estimated Time: 3 working days
Advertisement                         Procurement Services     Published in a newspaper of general circulation within the city once each week for two
                                                               consecutive weeks – VMC 3.05.110. The Columbian is the official newspaper of the City of
                                                               Vancouver – VMC 1.04.010. Publication must be a minimum of 10 days before opening. Also
                                                               published in the Daily Journal of Commerce in Portland if over $200,000. Published in the
                                                               Daily Journal of Commerce in Seattle if over $500,000. Published in a Minority publication if
                                                               other than city monies are involved. – Procedure

                                                               Estimated Time: 5 working days
Bid Line                              Procurement Services     A list of current opportunities and results of recently opened bids/quotes – Procedure
Bulletin Board                                                 Estimated Time: updated weekly or as needed.
Website                                                        Bid Line: 360/619-1039                          Website: www.ci.vancouver.wa.us
                                                               Bulletin Board: Located in the lobby of the Esther Short Building, 610 Esther Street.
LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                   LOB   3-15
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014


Distribution /                        Procurement Services     Prepare labels, distribute, and mail. There is no cost to the supplier for this packet.
Mailing                                                           – Ord. M-3427.

                                                               Estimated Time: 1 working day
Plan Holders List                     Support Specialist       Prepare and maintain listing of all suppliers who have bid packet. – Procedure.

                                                               Planholder list is available on our website.

Addenda                               Project Manager /        Project Manager initiate the addendum and forwards to Procurement Specialist for preparation.
                                      Procurement Services     Procurement Specialist obtains Procurement Services Manager’s signature and distributes or
                                                               forwards to Support Specialist for distribution.

                                                               Critical Timeframe: Project Manager should have addenda information to Procurement
                                                               Specialist two days before issuance, preferably. A fax/email notification of the addendum is
                                                               sent – available on PS website. Plan holders must receive 6 calendar days prior to opening or
                                                               bid-opening date may be extended. The extension of a bid opening date may be waived by the
                                                               Procurement Services Manager.

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm
Pre-Bid Meeting                       Project Manager          Project Manager prepares agenda and leads discussion. Procurement Specialist attends. A sign
(optional)                                                     up sheet for attendees will be circulated, if practical. A tape recording of the meeting may be
                                                               made. – Procedure

                                                               Note: It is encouraged that the pre-bid be scheduled at least 10 days prior to bid opening to
                                                               allow for addendum preparation if needed.

                                                               Estimated Timeframe: as needed
Cancellation of                       Procurement Services     An invitation to bid may be cancelled at the discretion of the Procurement Services Manager.
Invitation                            Manager
                                                               Reason(s) shall be made part of the bid file – VMC 3.05.120
Bid Opening                           Procurement Services     The deadline for receiving bids shall be not less than thirteen days from the date of first
                                                               publication. Responses shall be submitted sealed to the office of Procurement Services
                                                               Manager within regular business hours and opened in public by the Procurement Services

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                                                               Manager or designate – VMC 3.05.110 ; 3.05.140 & 3.05.290.

                                                               Bids are opened in Procurement Services on Tuesday at 11:00 a.m. – Procedure.
Bid Tabulation                        Procurement Services     The Procurement Services Manager shall tabulate the bids – VMC 3.05.140 & 3.05.290.

                                                               Procurement Services Manager designate, Procurement Specialist, receives opened bid
                                                               packets, checks completeness of necessary paperwork, tabulates bids, verifies contractor status
                                                               (debarment verification) and distributes to Project Manager, Construction Manager and all
                                                               respondents. – Procedure.

                                                               Estimated Timeframe: 2 working days
Protests                              Procurement Services     Protestor must document reasons in writing for protest to Procurement Services Manager
                                      Manager                  within 2 days after bid opening and prior to award. Procurement Services Manager alerts City
                                                               Attorney’s Office, Procurement Specialist and Construction and/or Project Manager. PS Mgr
                                                               to respond, in writing, to all parties within 10 days after receipt. Three day appeal process after
                                                               receipt of City’s determination. See policy if protest is prior to bid opening. Policy found at
                                                               http://citynet/procurement/policies.asp . Procurement Specialist to be present at council
                                                               meeting. – Procedure.

                                                               Critical Timeframe: Immediately
Staff Report                          Project Manager          Project Manager to initiate staff report to Council Secretary and copy Procurement Specialist.
                                                               Procurement Services Representative to attend and sign off on items. – Procedure.

                                                               The staff report form can be found at: L:/City Managers Office\Council\Srform.doc
                                                               The Council Agenda process can be found at http://citynet/CMO/City Council Agenda Process

                                                               Estimated Timeframe: 10 working days

Pre-Agenda                            Project Manager /        Project Manager to attend. Project is signed off by City Attorney, Budget, Finance,
                                      Procurement Services     Procurement Services, and Real Property Manager. – Procedure.

Rejection of Bids                     Project Manager /        City Attorney prepares documentation to Council for rejection of bid, with input from Project
                                      Procurement Services     Manager and Procurement Services Manager. – Procedure. The City Council may reject any
                                      Manager / City           and all bids when it finds that the public interest will be served thereby. Appropriate findings

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                                      Attorney / City          shall be made and these shall be set forth in the City Council minutes – VMC 3.05.150
                                      Council
Award of Bid                          City Council             The City Manager shall present staff recommendations to the City Council for award. Council
                                                               shall award the bid to the lowest, responsible bidder. If award is made to other than the lowest
                                                               bidder in price, findings shall be made which shall be stated as the Council’s findings and be
                                                               set forth in the City Council’s minutes – VMC 3.05.160. Council meets every Monday night
                                                               except on the fifth Monday – Procedure.
Requisition                           Service Area /           After award of bid, a requisition is initiated and approved by service area/department. –
                                      Department               Procedure

                                                               The signature authorization list can be found on the City Net.

Purchase Order                        Procurement Services     Procurement Services approves, prints, and sends original purchase order to supplier, along
                                                               with any necessary attachments. - Procedure.

                                                               Estimated time: 1 working day
Receipt of Goods                      Service Area /           Goods are received and inspected by initiating department. A receipt is created in Oracle.
                                      Department               Returns are also documented in Oracle.

                                                               It is the service area/department’s responsibility to fill out/maintain any warranty information
                                                               regarding the product(s) received.

Payment                               Accounts Payable         Supplier sends invoice(s) to Accounts Payable. Receipt and invoice are matched up and
                                                               payment is processed. City pays for items received and invoiced, either partial or complete
                                                               orders. - Procedure. Estimated time: Daily, per payment terms indicated.
                                                               All claims are approved by City Council. – VMC 2.05




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Tab b – Commodity Bids Flowchart




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Tab c1 – Formal Quotations Description

TASK                                  RESPONSIBILITY           STANDARD PROCEDURE
Quote                                 Project Manager          Electronically provide special provisions and proposal items to Procurement Services. Also
Specification                                                  provide budget number(s), mail code, project estimate, and funding source on the Quotation
                                                               request form. Provide a list of potential suppliers, if known. – Procedure

Review                                Procurement Services     Add front end documents and incorporate any other documentation or requirements. -
                                                               Procedure

                                                               Estimated Time: 5 working days
Final Review                          Project Manager          Opportunity for project manager to review the final document before printing, and mailing. –
                                                               Procedure

                                                               Estimated Time: 3 working days
Printing                              Procurement Services     Coordinate with print shop. If print shop is at full capacity, outside printing firms may be used,
                                                               if determined by Procurement Services and the Project Manager to be the best alternative. –
                                                               Procedure.

                                                               Estimated Time: 3 working days
Bid Line                              Procurement Services     A list of current opportunities and results of recently opened bids/quotes – Procedure
Bulletin Board                                                 Estimated Time: updated weekly or as needed.
Website                                                        Bid Line: 360/619-1039                          Website: www.ci.vancouver.wa.us
                                                               Bulletin Board: Located in the lobby of the Esther Short Building, 610 Esther Street.

Distribution /                        Procurement Services     Prepare labels, distribute, and mail. There is no cost to the supplier for this packet.
Mailing                                                           – Ord. M-3427.

                                                               Estimated Time: 1 working day
Plan Holders List                     Support Specialist       Prepare and maintain listing of all suppliers who have quote packet. – Procedure. Planholder
                                                               list is can be found on our website.

Addenda                               Project Manager          Project Manager initiate the addendum and forwards to Procurement Specialist for preparation.
                                      Procurement Services     Procurement Specialist obtains Procurement Services Manager’s signature and distributes or
LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                    LOB   3-20
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                                                               forwards to Support Specialist for distribution.

                                                               Critical Timeframe: Construction and/or Project Manager should have addenda information to
                                                               Procurement Specialist two days before issuance, preferably. A fax/email notification of the
                                                               addendum is sent – available on PS website. Plan holders must receive 6 calendar days prior
                                                               to opening or bid-opening date may be extended. The extension of a bid opening date may be
                                                               waived by the Procurement Services Manager.

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm
Pre-Quote Meeting                     Project Manager          Project Manager prepares agenda and leads discussion. Procurement Specialist attends. A sign
(optional)                                                     up sheet for attendees will be circulated, if practical. A tape recording of the meeting may be
                                                               made. – Procedure

                                                               Note: It is encouraged that the pre-bid be scheduled at least 10 days prior to bid opening to
                                                               allow for addendum preparation if needed.

                                                               Estimated Timeframe: as needed
Cancellation of                       Procurement Services     A Request for Quotation may be canceled at the discretion of the Procurement Services
Request                               Manager                  Manager. Reason(s) shall be made part of the quote file. – Procedure

Quote Opening                         Procurement Services     The deadline for receiving bids shall be not less than thirteen days from the date of first
                                                               publication. Responses shall be submitted sealed to the office of Procurement Services
                                                               Manager within regular business hours and opened in public by the Procurement Services
                                                               Manager or designate – VMC 3.05.110 ; 3.05.140 & 3.05.290.

                                                               Bids are opened in Procurement Services on Thursday at 3:00 p.m. – Procedure.
Tabulation                            Procurement Services     The Procurement Services Manager shall tabulate the bids – VMC 3.05.140 & 3.05.290.

                                                               Procurement Services Manager designate, Procurement Specialist, receives opened bid
                                                               packets, checks completeness of necessary paperwork, tabulates bids, verifies contractor status
                                                               (debarment verification) and distributes to Project Manager, Construction Manager and all
                                                               respondents. – Procedure.
                                                               Estimated Timeframe: 2 working days
Protests                              Procurement Services     Protestor must document reasons in writing for protest to Procurement Services Manager

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                                      Manager                  within 2 days after bid opening and prior to award. Procurement Services Manager alerts City
                                                               Attorney’s Office, Procurement Specialist and Construction and/or Project Manager. PS Mgr
                                                               to respond, in writing, to all parties within 10 days after receipt. Three day appeal process after
                                                               receipt of City’s determination. See policy if protest is prior to bid opening. Policy found at
                                                               http://citynet/procurement/policies.asp . Procurement Specialist to be present at council
                                                               meeting. – Procedure.

                                                               Critical Timeframe: Immediately
Rejection of                          Project Manager /        City Attorney may assist Procurement Services Manager in preparation of documentation to
Quotes                                Procurement Services     supplier for rejection of quotes, with input from the Project Manager. Appropriate findings
                                      Manager / City           shall be made part of the quote file. – Procedure
                                      Attorney
Requisition                           Service Area /           After review, a requisition is initiated and approved by service area/department. – Procedure
                                      Department               The signature authorization list can be found on Procurement’s City Net Page.

Purchase Order                        Procurement Services     Procurement Services approves, prints, and sends original purchase order to supplier, along
                                                               with any necessary attachments. – Procedure.

                                                               Estimated time: 1 working day
Receipt of Goods                      Service Area /           Goods are received and inspected by initiating department. A receipt is created in Oracle.
                                      Department               Returns are also documented in Oracle.
                                                               It is the service area/department’s responsibility to fill out/maintain any warranty information
                                                               regarding the product(s) received.
Payment                               Accounts Payable         Supplier sends invoice(s) to Accounts Payable. Receipt and invoice are matched up and
                                                               payment is processed. City pays for items received and invoiced, either partial or complete
                                                               orders. – Procedure. Estimated time: Daily, per payment terms indicated.
                                                               All claims are approved by City Council. – VMC 2.05




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                    LOB   3-22
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Tab c2 – Formal Quotations Flowchart




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-23
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Tab d1 – Daily Purchase Orders Description


TASK                                  RESPONSIBILITY           STANDARD PROCEDURE
Requisition                           Service Area /           A requisition is initiated and approved by service area/department. Requisitions should
                                      Department               contain the supplier name, item(s) requested, price and budget numbers for each item. There
                                                               should be enough information on each line to answer Who, What, When, Where and/or Why.
                                                               – Procedure

                                                               The signature authorization list can be found on the City Net.

Purchase Order                        Procurement              Procurement Specialist reviews the requisitions receives and checks for thresholds, bid
                                      Specialist               references and complete information. Procurement Specialist creates purchase order and sends
                                                               to Procurement Services Supervisor for approval. - Procedure.

                                                               Estimated time: 1 working day
Receipt of Goods                      Service Area /           Goods are received and inspected by initiating department. A receipt is created in Oracle.
                                      Department               Returns are also documented in Oracle.

                                                               It is the service area/department’s responsibility to fill out/maintain any warranty information
                                                               regarding the product(s) received.

Payment                               Accounts Payable         Supplier sends invoice(s) to Accounts Payable. Receipt and invoice are matched up and
                                                               payment is processed. City pays for items received and invoiced, either partial or complete
                                                               orders. - Procedure. Estimated time: Daily, per payment terms indicated.
                                                               All claims are approved by City Council. – VMC 2.05




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                   LOB   3-24
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Tab d2 – Daily Purchase Orders Flowchart




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-25
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Tab e1 – Formal Bids Description

TASK                                  RESPONSIBILITY           STANDARD PROCEDURE
Bid Specification                     Construction and/or      Electronically provide: project description for invitation, working days, pre-bid date (if
                                      Project Manager          applicable), proposal items, amendments, general provisions, special provisions, technical
                                                               specifications, standard plans and drawings (all applicable) to Procurement Specialist. Verify
                                                               if sales tax is applicable. Also, provide the formal bid request form including charge account
                                                               and/or project & task combination, project estimate, and funding and/or bonding source, mail
                                                               code, distribution list for external planholders, suggested bid opening date, TransAid #, goal
                                                               and/or other special requirements. – Procedure

                                                               The formal bid request form can be found at:
                                                               http://citynet/procurement/forms.asp
Review                                Procurement              Add front-end documents, sections A-D, including wage rates, State, and Federal (if
                                      Specialist               applicable) and incorporate proposal items and project description/scope of work and working
                                                               days provided by Project Manager.

                                                               Review special provisions sections 1-02, 1-07.2, 1-07.9(1) & 1.07.11.

                                                               Estimated Timeframe: 5 working days
Supplemental                          Construction and/or      This is recommended, and at the Project Manager’s discretion. Must be established prior to
Bidder Criteria                       Project Manager          sending the bid for advertisement – SHB 2010 (RCW ??)
Verification

Final Review                          Construction and/or      Opportunity for Construction and/or Project Manager to take a look at the final document
                                      Project Manager          before request for advertising. Procurement Specialist to forward contract and engineer’s
                                                               estimate to Risk Manager to ensure additional insurance requirements are not needed.
                                                               Incorporate any changes/additions into front-end documents.

                                                               Estimated Timeframe: 1 working day
Printing                              Procurement              Procurement Specialist to e-mail specifications and plans to printshop. Printshop to deliver to
                                      Specialist and           Support Specialist when ready. If Print Shop is at full capacity, outside printing firms may be
                                      Support Specialist       used.


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                                                               Estimated Timeframe: 3 working days – Minimum
Advertisement                         Procurement              Published in a newspaper of general circulation within the city once each week for two
                                      Specialist               consecutive weeks – VMC 3.05.110. The Columbian is the official newspaper of the City of
                                                               Vancouver – VMC 1.04.010. Publication must be a minimum of 13 days before opening.
                                                               Projects over $200,000 are also published in the Portland Daily Journal of Commerce. In
                                                               addition, projects over $500,000 are published in the Seattle Daily Journal of Commerce. If
                                                               grant monies are involved, the project is published in a minority publication, regardless of
                                                               dollar amount and must be out for three consecutive weeks – Procedure.

                                                               Estimated Timeframe: 5 working days
Bulletin                              PS Support Specialist    Access to current bid opportunities, addenda, planholders lists and results of recently opened
Board/Website                         and Procurement          bids/quotes – Procedure
                                      Specialist (website)
                                                               Bulletin Board/Table: Located in the Procurement Services lobby at 610 Esther Street, 1st
                                                               Floor

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm

                                                               Estimated Timeframe: updated as needed.
Distribution /                        Customer Service         VMC 3.08.070 allows for a nonrefundable fee to be charged. Payments can be mailed or
Mailing                               Representative(s)        contractors can pay Customer Service 610 Esther Street, 1st Floor. Plan center subscription is
                                                               $200 plus tax per year. $50 plus tax for projects in the $100,000 to $999,999 range and $100
                                                               plus tax for projects over $1 million. If project handled by outside firm, the fee is established
                                                               by the Project Manager. Procurement Services Manager may waive fee.
Notice to Bidders                     Procurement              Support Specialist to email/fax Notice to Bidder form to Non-subscribing Plan Centers and
                                      Specialist and           those on the roster with the applicable area of expertise, as provided by Procurement
                                      Support Specialist       Specialist. Subscribing Plan Centers are mailed a copy of the bid package.

Plan Holders List                     Procurement              Procurement Specialist to set-up initial planholders list, starting with the subscribing plan
                                      Specialist and           centers. The Support Specialist is responsible for updating and maintaining the individual
                                      Support Specialist       project planholders lists. Any address changes to be forwarded to Procurement Specialists for
                                                               update of the master supplier list and sub-lists. Planholder lists can be found at:

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm and

LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                   LOB   3-27
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                                                               I:\Planholders\year\Bids\Bid# and name of project.
Addenda                               Construction and/or      Construction and/or Project Manager initiate the addendum and forwards to Procurement
                                      Project Manager,         Specialist for preparation. Procurement Specialist obtains Procurement Services Manager’s
                                      Procurement              signature and distributes or forwards to Support Specialist for distribution.
                                      Specialist and
                                      Support Specialist       Critical Timeframe: Construction and/or Project Manager should have addenda information to
                                                               Procurement Specialist two days before issuance, preferably. A fax/email notification of the
                                                               addendum is sent – available on PS website. Plan holders must receive 6 calendar days prior
                                                               to opening or bid-opening date may be extended. The extension of a bid opening date may be
                                                               waived by the Procurement Services Manager.

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm
Pre-Bid Meeting                       Project Manager and      Project Manager prepares agenda and leads discussion. Procurement Specialist attends. A sign
(optional)                            Procurement              up sheet for attendees will be circulated, if practical. A tape recording of the meeting may be
                                      Specialist               made. – Procedure

                                                               Note: It is encouraged that the pre-bid be scheduled at least 10 days prior to bid opening to
                                                               allow for addendum preparation if needed.

                                                               Estimated Timeframe: as needed
Cancellation of                       Procurement Services     An invitation to bid may be cancelled at the discretion of the Procurement Services Manager.
Invitation                            Manager
                                                               Reason(s) shall be made part of the bid file – VMC 3.05.120
Bid Opening                           Procurement Services     The deadline for receiving bids shall be not less than thirteen days from the date of first
                                      Supervisor and           publication. Responses shall be submitted sealed to the office of Procurement Services
                                      Procurement              Manager within regular business hours and opened in public by the Procurement Services
                                      Specialist               Manager or designate – VMC 3.05.110 ; 3.05.140 & 3.05.290. LAG 46.2.25

                                                               Bids are opened in Procurement Services on Tuesday at 11:00 a.m. – Procedure.
Original                              Procurement              Original plans, signed prospective bidders sheet and invitation to bid are sent to Central
Specifications                        Specialist               Records.
Bid Tabulation                        Procurement              The Procurement Services Manager shall tabulate the bids – VMC 3.05.140 & 3.05.290.
                                      Specialist and
                                      Support Specialist       Procurement Services Manager designate, Procurement Specialist, receives opened bid

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                                                               packets, checks completeness of necessary paperwork, tabulates bids, verifies contractor status
                                                               (debarment verification) and distributes to Project Manager, Construction Manager and all
                                                               respondents. – Procedure.

                                                               Procurement Specialist also verifies that Mandatory Bidder Responsibility Criteria and
                                                               Supplementary Bidder Responsibility Criteria, if applicable, is met by the lowest bidder. –
                                                               SHB 2010 (RCW ???)

                                                               Support Specialist prepares bid deposit forms for return of bid bond/cashiers check, as
                                                               indicated by bidder - Procedure

                                                               Estimated Timeframe: 2 working days
Bid Responses                         Procurement              Bid responses shall be made open to inspection after the tabulations/verifications have been
Open to Public for                    Specialist and/or        made. Bid tabs to be posted to website within 24 hours – Procedure.
Review                                Support Specialist
Protests                              Procurement Services     Protestor must document reasons in writing for protest to Procurement Services Manager
                                      Manager &                within 2 days after bid opening and prior to award. Procurement Services Manager alerts City
                                      Procurement              Attorney’s Office, Procurement Specialist and Construction and/or Project Manager. PS Mgr
                                      Specialist               to respond, in writing, to all parties within 10 days after receipt. Three day appeal process after
                                                               receipt of City’s determination. See policy if protest is prior to bid opening. Policy found at
                                                               http://citynet/procurement/policies.asp . Procurement Specialist to be present at council
                                                               meeting. – Procedure.

                                                               Critical Timeframe: Immediately
Rejection of Bids                     City Attorney,           City Attorney prepares documentation to Council for rejection of bid(s), with input from
                                      Project Manager,         Project Manager and Procurement Services Manager. The City Council may reject any and all
                                      Procurement Services     bids when it finds that the public interest will be served thereby. Appropriate findings shall be
                                      Manager and City         made and these shall be set forth in the City Council minutes – VMC 3.05.150
                                      Council
Staff Report and                      Construction and/or      Construction and/or Project Manager to initiate staff report to Council Secretary and copy
Pre-Agenda                            Project Manager,         Procurement Specialist. Procurement Services Representative to attend and sign off on items.
                                      Procurement Services     – Procedure. Estimated Timeframe: 10 working days
                                      Representative,
                                      Budget, Finance, City    The staff report form can be found at: L:/City Managers Office\Council\Srform.doc
                                      Attorney & Real          The Council Agenda process can be found at http://citynet/CMO/City Council Agenda Process
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                                      Property Manager
Award of Bid                          City Council and         The Procurement Services Manager, or designate, shall make appropriate recommendations to
                                      Procurement Services     the City Manager. The City Manager shall present staff recommendations to the City Council
                                      Representative           for award. Council shall award the bid to the lowest, most responsible bidder. When the bid is
                                                               awarded to a bidder other than the lowest bidder in price, findings shall be made which shall
                                                               be stated as the Council’s findings and be set forth in the City Council’s minutes – VMC
                                                               3.05.320. Council meets every Monday night except on the fifth Monday – Procedure.
Contract                              Procurement              Upon award, Procurement Specialist prepares and mails award letter & contract to contractor.
Preparation                           Specialist and           Return unsuccessful bids with copy of staff report to Support Specialist for return of bid bonds
                                      Support Specialist       (if indicated). Letter sent to unsuccessful bidders on federal funded projects.

                                                               I:\Boiler Documents\Formal Bids\Federal\No Thanks.doc
Initial PO                            Procurement              Procurement Specialist to enter a Contract PO and forward to Dept. approver - Procedure
                                      Specialist
Required Project                      Procurement              Performance/Payment Bonding – The successful bidder shall furnish a performance bond or
Documentation                         Specialist and Law       payment bond by a surety authorized in the State of Washington in an amount equal to the
(all projects)                        Dept                     total amount of the contract for projects over $35,000. RCW 39.08.010, City Ordinance M-
                                                               3129.
Required Project                      Procurement              Insurance Requirements – The successful bidder shall furnish required insurance coverage on
Documentation                         Specialist and Risk      an “Acord” or comparable form with the coverage required per the specifications. – Procedure
(all projects)                        Mgr
Contract Execution                    Procurement              Procurement Specialist fully executes contract, issues notice to proceed and returns awarded
                                      Specialist               bidder’s bid bond (if indicated).
Pre-Construction                      Construction and/or      After award, Construction and/or Project Manager coordinate the pre-con meeting, if deemed
Meeting                               Project Manager and      necessary. Procurement Specialist to attend and tape record for future reference. PS to give
                                      Procurement              notification of availability and provide copy of tape, if requested (WSDOT Federal projects
                                      Specialist               only, includes FAA)
Required Project                      Procurement              Statement of Intent to Pay Prevailing Wage Form (all projects) - The agency administering the
Documentation                         Specialist               contract may not make payment for work performed until all contractors have submitted an
(all projects)                                                 Intent form that has been approved by the Labor & Industries Industrial Statistician. RCW
                                                               39.12.020, 040 and 042. Contractor has option to reduce payment by subcontractor amount
                                                               that’s lacking intent and City will pay balance. – Procedure
Payments                              Construction and/or      Construction and/or Project Manager to prepare and execute pay estimate, including a list of
including retainage                   Project Manager,         subcontractors who have performed work during that period, and forward it to Procurement
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and escrow                            Procurement              Specialist. PS to verify Statement of Intent(s) on file for those subs listed and sign estimate, if
                                      Specialist and A/P       approved.

                                                               Procurement Specialist creates Standard PO, 100% tolerance and 2-way match, based on
                                                               individual pay estimates and forwards to Procurement Services Supervisor for approval in
                                                               Oracle. - Procedure.

                                                               Estimated timeframe: 1-2 working days

                                                               PS to note PO on pay estimate and forward to A/P. A/P matches invoice & PO within Oracle
                                                               and withholds retainage Contracts for public improvements are subject to 5% retainage based
                                                               on subtotal. Options include escrow or investment accounts, and retainage bonds. Title 82
                                                               RCW and RCW 60.28.011. Retainage must be held for a minimum of 45 days after council
                                                               acceptance and released within a total of 60 days, pending receipt of Affidavits of Wages Paid
                                                               and tax releases – Procedure
                                                               Or, pending receipt of all payroll documentation and required forms – Policy
                                                               A/P to enter invoice into Oracle for release of retainage.
                                                               There will be check runs M-W-F or daily if needed. Terms are N30 from invoice date.
                                                               All payments are approved by City Council. – Procedure

                                                               Estimated Timeframe: 1-3 working days
Change Orders                         Construction and/or      Construction and/or Project Manager will issue a written change order in accordance with the
                                      Project Manager and      City’s change order policy. Original to be filed with Procurement Specialist. The change order
                                      Procurement              will have the authorized budget signatory to allow Procurement Specialist to modify the PO in
                                      Specialist               Oracle.

                                                               The City Manager shall be notified immediately by the Construction and/or Project Manager
                                                               when Public Works construction agreements, with a contracted dollar amount of $200,000 to
                                                               $1 Million increases singly or cumulatively by 10%. When practical, this should occur prior
                                                               to start of construction authorized through the change order process. At this point, the City
                                                               Manager should be provided with the amount of the original contract, and copies of the change
                                                               orders to date, or a list of changes and amounts.

                                                               The City Manager shall be notified immediately by the Construction and/or Project Manager
                                                               when Public Works construction agreements, with a contracted dollar amount above $1
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                                                               million, equal $100,000 singly or cumulatively.

                                                               http://www.ci.vancouver.wa.us/procurement/policies/change order policy.htm
Required Project   Procurement                                 Certified Payroll - The Contractor and all subcontractors or lower tier subcontractors will be
Documentation (all Specialist                                  required to submit Certified Payrolls to City of Vancouver, Procurement Services, within ten
projects)                                                      calendar days for Federal funded projects or 7 days if CDBG funded projects. If these payrolls
                                                               are not supplied any or all payments may be withheld until compliance is achieved. For all non
                                                               federal-aid and local funded City of Vancouver public works projects each contractor shall
                                                               keep accurate payroll records for three years from the date of acceptance. Refer to WAC 296-
                                                               127-320 Payroll for specific information. A Contractor and all subcontractors shall, within ten
                                                               days after it receives a written request, as defined by RCW 39.12.010(4) file a certified copy of
                                                               the payroll records with the Owner. Procurement Services reserves the right to require the
                                                               payroll records on projects considered higher risk.

                                                               First certified payroll from contractor and subcontractors must be checked to ensure payment
                                                               of prevailing wages. Conduct reviews of each contractor’s successive payroll. All payrolls are
                                                               checked for overtime, additional classifications and apprenticeship verification. Wage surveys
                                                               are conducted by Construction Services/Project Mgr on federal funded projects - Procedure
Required Project                      Procurement              Certification of Signature Authorization, Form GPO 893-343 (CDBG funded projects)
Documentation                         Specialist
(special funded
projects)
Required Project                      Procurement              Annual EEO, Form FHWA 1391(WSDOT projects). For each project for the last week
Documentation                         Specialist               worked preceding July 31st Due 8.25 from Prime and subcontractors that exceed $10,000.
(special funded
projects)
Required Project                      Procurement              Section 3 Certification: Economic Opportunities for Low and Very Low Income Persons
Documentation                         Specialist               (CDBG funded projects). To be completed by contractor and subcontractor and sent to
(special funded                                                Procurement Specialist for project file.
projects)
Required Project                      Construction and/or      Wage Interviews/Surveys, Form No. HUD-11 (CDBG funded projects). Construction and/or
Documentation                         Project Manager,         Project Manager to forward completed wage surveys to Procurement Specialist. CDBG staff
(special funded                       CDBG Staff and           reserves the right to conduct wage surveys. Procurement Specialist to check interview rate
projects)                             Procurement              against certified payroll and applicable wage rates.
                                      Specialist
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Required Project                      Procurement              Section 3 Summary Report, Form No. HUD-60002(4/98) (CDBG funded projects). To be
Documentation                         Specialist               completed by contractor and sent to Procurement Specialist for project file.
(special funded
projects)
Required Project                      Procurement              Contract and Subcontract Activity, Form HUD-2516(2-88) (CDBG funded projects). To be
Documentation                         Specialist               completed by contractor and sent to Procurement Specialist for project file.
(special funded
projects)
Required Project                      Procurement              Final Labor Standards Compliance Report (CDBG funded projects). To be completed, jointly,
Documentation                         Specialist               by CDBG staff and Procurement Specialist. Retain copy for file and forward completed form
(special funded                                                to CDBG office.
projects)
Required Project                      Procurement              Monthly Utilization Report, Form No. 1215-0163 (over $100,000) (WSDOT Federal funded
Documentation                         Specialist               projects). To be completed by contractor and/or subcontractors and sent to Procurement
(special funded                                                Specialist for project file. Due 5th of month following each month.
projects)
Required Project                      Construction and/or      Wage Interviews/Surveys, L&I Form No. F700-065-000 (WSDOT Federal funded projects).
Documentation                         Project Manager,         Construction and/or Project Manager to forward completed wage surveys to Procurement
(special funded                       CDBG Staff and           Specialist. Procurement Specialist to check interview rate against certified payroll and
projects)                             Procurement              applicable wage rates.
                                      Specialist
Required Project                      Procurement              Quarterly Report of Amounts Credited as DBE Participation (WSDOT Federal funded
Documentation                         Specialist               projects). Due from contractor on 20th of the month following each quarter. Procurement
(special funded                                                Specialist sends copy to TransAid Engineer at WDOT by end of month following each quarter.
projects)
Required Project                      Procurement              Affidavit of Wages Paid Form. The agency administering the contract may not release final
Documentation (all                    Specialist               retainage until all contractors have submitted an Affidavit form that has been certified by the
projects)                                                      Labor & Industries Industrial Statistician. RCW 39.12.040 and 042
Project                               Construction and/or      The Construction and/or Project Manager initiate the staff report to the Procurement Services
Completion and                        Project Manager, and     Manager. The Procurement Services Manager to approve and inform Procurement Specialist,
Council                               Procurement              Construction and/or Project Manager and Council Secretary. The Procurement Services
Acceptance                            Specialist               Manager shall make appropriate recommendations to the City Manager. The City Manager
                                                               shall present the completed bid to the City Council. Council meets Monday nights, except for
                                                               the fifth Monday – Procedure.
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                                                               It is the service area/department’s responsibility to fill out/maintain any warranty information
                                                               regarding the service/product(s) received.

                                                               Retainage will be released with receipt of all required project documentation and the project
                                                               file will be routed to Central Records.




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Tab e2 – Formal Bids Flowchart (1 of 2)




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Tab e3 – Formal Bids Flowchart (2 of 2)




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Tab f1 – Maintenance Agreements Description

TASK                                  RESPONSIBILITY           STANDARD PROCEDURE
Bid Specification                     Project Manager          Electronically provide: project description for invitation, working days, pre-bid date (if
                                                               applicable), proposal items, amendments, general provisions, special provisions, contract bid
                                                               items, technical specifications, (all applicable) to Procurement Specialist. Also, provide the
                                                               Maintenance bid request form including charge account and/or project & task combination,
                                                               project estimate, and funding source, and/or other special requirements. – Procedure

                                                               The maintenance bid request form can be found at: http://citynet/procurement/forms.asp
Review                                Procurement              Add front-end documents, sections A-D, including wage rates and incorporate proposal items
                                      Specialist               and project description/scope of work provided by Project Manager.

                                                               Estimated Timeframe: 5 working days
Final Review                          Project Manager          Opportunity for Project Manager to take a look at the final document before request for
                                                               advertising. Procurement Specialist to forward contract and engineer’s estimate to Risk
                                                               Manager to ensure additional insurance requirements are not needed. Incorporate any
                                                               changes/additions into front-end documents.

                                                               Estimated Timeframe: 1 working day
Printing                              Procurement              Procurement Specialist to e-mail specifications and plans to printshop. Printshop to deliver to
                                      Specialist and           Support Specialist when ready. If Print Shop is at full capacity, outside printing firms may be
                                      Support Specialist       used.

                                                               Estimated Timeframe: 3 working days - Minimum
Advertisement                         Procurement              Published in a newspaper of general circulation within the city once each week for two
                                      Specialist               consecutive weeks – VMC 3.05.110. The Columbian is the official newspaper of the City of
                                                               Vancouver – VMC 1.04.010. Publication must be a minimum of 13 days before opening.
                                                               Projects over $200,000 are also published in the Portland Daily Journal of Commerce. In
                                                               addition, projects over $500,000 are published in the Seattle Daily Journal of Commerce. If
                                                               grant monies are involved, the project is published in a minority publication, regardless of
                                                               dollar amount and must be out for three consecutive weeks – Procedure.

                                                               Estimated Timeframe: 5 working days

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Bulletin                              PS Support Specialist    Access to current opportunities, addenda, planholders lists and results of recently opened
Board/Website                         and Procurement          bids/quotes – Procedure
                                      Specialist (website)
                                                               Bulletin Board/Table: Located in the Procurement Services lobby at 610 Esther Street, 1st
                                                               Floor

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm

                                                               Estimated Timeframe: updated as needed.
Distribution /                        Procurement Services     Prepare labels, distribute, and mail. There is no cost to the supplier for this packet.
Mailing                                                            – Ord. M-3427.

                                                               Estimated Time: 1 working day
Plan Holders List                     Procurement              Procurement Specialist to set-up initial planholders list, starting with the subscribing plan
                                      Specialist and           centers and including internal plan holders. The Support Specialist is responsible for updating
                                      Support Specialist       and maintaining the individual project planholders lists. Any address changes to be forwarded
                                                               to Procurement Specialists for update of the master supplier list and sub-lists. Planholder lists
                                                               can be found at:

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm and
                                                               I:\Planholders\year\Bids\Bid# and name of project.
Addenda                               Construction and/or      Construction and/or Project Manager initiate the addendum and forwards to Procurement
                                      Project Manager,         Specialist for preparation. Procurement Specialist obtains Procurement Services Manager’s
                                      Procurement              signature and distributes or forwards to Support Specialist for distribution.
                                      Specialist and
                                      Support Specialist       Critical Timeframe: Construction and/or Project Manager should have addenda information to
                                                               Procurement Specialist two days before issuance, preferably. A fax/email notification of the
                                                               addendum is sent – available on PS website. Plan holders must receive 6 calendar days prior
                                                               to opening or bid-opening date may be extended. The extension of a bid opening date may be
                                                               waived by the Procurement Services Manager.

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm
Pre-Bid Meeting                       Project Manager and      Project Manager prepares agenda and leads discussion. Procurement Specialist attends. A sign

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(optional)                            Procurement              up sheet for attendees will be circulated, if practical. A tape recording of the meeting may be
                                      Specialist               made. – Procedure

                                                               Note: It is encouraged that the pre-bid be scheduled at least 10 days prior to bid opening to
                                                               allow for addendum preparation if needed.

                                                               Estimated Timeframe: as needed
Cancellation of                       Procurement Services     An invitation to bid may be cancelled at the discretion of the Procurement Services Manager.
Invitation                            Manager
                                                               Reason(s) shall be made part of the bid file – VMC 3.05.120
Bid Opening                           Procurement Services     The deadline for receiving bids shall be not less than thirteen days from the date of first
                                      Supervisor and           publication. Responses shall be submitted sealed to the office of Procurement Services
                                      Procurement              Manager within regular business hours and opened in public by the Procurement Services
                                      Specialist               Manager or designate – VMC 3.05.110 ; 3.05.140 & 3.05.290.

                                                               Bids are opened in Procurement Services on Tuesday at 11:00 a.m. – Procedure.
Bid Tabulation                        Procurement              The Procurement Services Manager shall tabulate the bids – VMC 3.05.140 & 3.05.290.
                                      Specialist and
                                      Support Specialist       Procurement Services Manager designate, Procurement Specialist, receives opened bid
                                                               packets, checks completeness of necessary paperwork, tabulates bids, verifies contractor status
                                                               (debarment verification) and distributes to Project Manager, Construction Manager and all
                                                               respondents. – Procedure.

                                                               Estimated Timeframe: 2 working days
Bid Responses                         Procurement              Bid responses shall be made open to inspection after the tabulations/verifications have been
Open to Public for                    Specialist and/or        made. Bid tabs to be posted to website within 24 hours – Procedure.
Review                                Support Specialist
Protests                              Procurement Services     Protestor must document reasons in writing for protest to Procurement Services Manager
                                      Manager &                within 2 days after bid opening and prior to award. Procurement Services Manager alerts City
                                      Procurement              Attorney’s Office, Procurement Specialist and Construction and/or Project Manager. PS Mgr
                                      Specialist               to respond, in writing, to all parties within 10 days after receipt. Three day appeal process after
                                                               receipt of City’s determination. See policy if protest is prior to bid opening. Policy found at
                                                               http://citynet/procurement/policies.asp . Procurement Specialist to be present at council
                                                               meeting. – Procedure.

LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                    LOB   3-39
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                                                               Critical Timeframe: Immediately
Rejection of Bids                     City Attorney,           City Attorney prepares documentation to Council for rejection of bid(s), with input from
                                      Project Manager,         Project Manager and Procurement Services Manager. The City Council may reject any and all
                                      Procurement Services     bids when it finds that the public interest will be served thereby. Appropriate findings shall be
                                      Manager and City         made and these shall be set forth in the City Council minutes – VMC 3.05.150
                                      Council
Staff Report and                      Construction and/or      Construction and/or Project Manager to initiate staff report to Council Secretary and copy
Pre-Agenda                            Project Manager,         Procurement Specialist. Procurement Services Representative to attend and sign off on items.
                                      Procurement Services     – Procedure. Estimated Timeframe: 10 working days
                                      Representative,
                                      Budget, Finance, City    The staff report form can be found at: L:/City Managers Office\Council\Srform.doc
                                      Attorney & Real          The Council Agenda process can be found at http://citynet/CMO/City Council Agenda Process
                                      Property Manager
Award of Bid                          City Council and         The Procurement Services Manager, or designate, shall make appropriate recommendations to
                                      Procurement Services     the City Manager. The City Manager shall present staff recommendations to the City Council
                                      Representative           for award. Council shall award the bid to the lowest, most responsible bidder. When the bid is
                                                               awarded to a bidder other than the lowest bidder in price, findings shall be made which shall
                                                               be stated as the Council’s findings and be set forth in the City Council’s minutes – VMC
                                                               3.05.320. Council meets every Monday night except on the fifth Monday – Procedure.
Contract           Procurement                                 Upon award, Procurement Specialist prepares and mails award letter & contract to contractor.
Preparation        Specialist and                              Return unsuccessful bids with copy of staff report to Support Specialist for return of bid bonds
                   Support Specialist                          (if indicated).
Initial PO         Procurement                                 Procurement Specialist to enter a Contract PO - Procedure
                   Specialist
Required Project   Procurement                                 Insurance Requirements – The successful bidder shall furnish required insurance coverage on
Documentation      Specialist and Risk                         an “Acord” or comparable form with the coverage required per the specifications. – Procedure
(all projects)     Mgr
Contract Execution Procurement                                 Procurement Specialist fully executes contract, issues notice to proceed and returns awarded
                   Specialist                                  bidder’s bid bond (if indicated).
Required Project   Procurement                                 Statement of Intent to Pay Prevailing Wage Form (all projects) - The agency administering the
Documentation      Specialist                                  contract may not make payment for work performed until all contractors have submitted an
(all projects)                                                 Intent form that has been approved by the Labor & Industries Industrial Statistician. RCW
                                                               39.12.020, 040 and 042. Contractor has option to reduce payment by subcontractor amount
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                                                               that’s lacking intent and City will pay balance. – Procedure
Requisition                           Service Area /           After award of bid, a requisition is initiated and approved by service area/department. –
                                      Department               Procedure

                                                               The signature authorization list can be found on the City Net.

Purchase Order                        Procurement Services     Procurement Services approves, prints, and sends original purchase order to supplier, along
                                                               with any necessary attachments. - Procedure.

                                                               Estimated time: 1 working day
Receipt of Goods                      Service Area /           Goods are received and inspected by initiating department. A receipt is created in Oracle.
                                      Department               Returns are also documented in Oracle.

                                                               It is the service area/department’s responsibility to fill out/maintain any warranty information
                                                               regarding the product(s) received.

Payment                               Accounts Payable         Supplier sends invoice(s) to Accounts Payable. Receipt and invoice are matched up and
                                                               payment is processed. City pays for items received and invoiced, either partial or complete
                                                               orders. - Procedure. Estimated time: Daily, per payment terms indicated.
                                                               All claims are approved by City Council. – VMC 2.05
Change Orders                         Construction and/or      Construction and/or Project Manager will issue a written change order in accordance with the
                                      Project Manager and      City’s change order policy. Original to be filed with Procurement Specialist. The change order
                                      Procurement              will have the authorized budget signatory to allow Procurement Specialist to modify the PO in
                                      Specialist               Oracle.

                                                               The City Manager shall be notified immediately by the Construction and/or Project Manager
                                                               when Public Works construction agreements, with a contracted dollar amount of $200,000 to
                                                               $1 Million increases singly or cumulatively by 10%. When practical, this should occur prior
                                                               to start of construction authorized through the change order process. At this point, the City
                                                               Manager should be provided with the amount of the original contract, and copies of the change
                                                               orders to date, or a list of changes and amounts.

                                                               The City Manager shall be notified immediately by the Construction and/or Project Manager
                                                               when Public Works construction agreements, with a contracted dollar amount above $1

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                                                               million, equal $100,000 singly or cumulatively.

                                                               http://www.ci.vancouver.wa.us/procurement/policies/change order policy.htm
Required Project   Procurement                                 Affidavit of Wages Paid Form. The agency administering the contract may not release final
Documentation (all Specialist                                  retainage until all contractors have submitted an Affidavit form that has been certified by the
projects)                                                      Labor & Industries Industrial Statistician. RCW 39.12.040 and 042


Tab f2 – Maintenance Agreements Flowchart




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Tab g1 – Purchasing Cards Flowcharts (1 of 2)




                                                                               Review transactions
   Log onto
                                  Re-block cards             Review daily      that have not been             Unblock cards
   payment
                                  (if applicable)            transactions    reviewed/approved per            (if requested)
   net daily
                                                                                      policy




                                                                Look for        Send emails to
                                                                possible         cardholders/
                                                               violations         approvers




                                                             Review large
                                                             purchases for
                                                              possible bid
                                                                 items




                                                              Check for
                                                             possible SW
                                                               projects.




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                               LOB   3-44
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Tab g2 – Purchasing Cards Flowcharts (2 of 2)




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Tab h – Piggyback Contracts Flowchart




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Tab i1 – Professional Services Description


TASK                                    RESPONSIBLITY          STANDARD PROCEDURE
Advertisement                           Procurement            Request for Consultants is published once a year to solicit persons/companies for the roster.
                                        Specialist             RCW 39.80.030. The Columbian is the official newspaper of the City of Vancouver – VMC
                                                               1.04.010. It is at the Project Manager’s discretion to do additional advertising for a specific
                                                               project. – Procedure

                                                               Special advertising & procurement procedures/requirements for Federally funded projects,
                                                               based on grant, funding source and/or dollar amount of project. (see actual grant or Local
                                                               Agency Guidelines (LAG) if funded by FHWA)

                                                               Contracts for services required to be performed by licensed architects, engineers, or landscape
                                                               architects, shall follow the procedural requirements of RCW Chapter 39.80, and VMC
                                                               3.05.225. (Exempt from RFP process)

                                                               Legal services are purchased under rules established under VMC 3.05.200(2).

                                                               Hearings Examiners have special requirements under VMC Chapter 2.51, Section 2.51.030.

Roster                                  Procurement            Procurement Services encourages the rotation of selected consultants. Consultants may be
                                        Specialist             placed on the Roster at any time of the year. Any consultant not on the Roster will be added
                                                               before contract execution. Procurement Services to maintain both an alphabetical and type of
                                                               work list – RCW 39.80

Assemble Teams                          Procurement            Procurement Specialist and Project Manager to identify/coordinate Project
                                        Specialist & Project   Stakeholders/Executive Sponsors team.
                                        Manager
Assemble Teams                          Procurement            Procurement Specialist and Project Manager to identify/coordinate and be a part of Project
                                        Specialist & Project   Steering Team (Project Steering Team to identify, procure and implement project)
                                        Manager
Local Funding                           Project Manager        Funding Secured
Prospectus/funding                      Project Manager        Project Prospectus developed, checklist and prospectus submitted for Federal funding.
Federal Funding                         Project Manager        Federal funding secured
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Funding Source                          Project Manager &      Formal letter received from the Director of Highway and Local Programs (FHWA) or granting
Approval                                Procurement            agency.
                                        Specialist
Transaid Authority                      Procurement            Obtain Transaid approved contract number
                                        Specialist
RFP or RFQ                              Procurement            RCW 39.80, 18.08, 18.43, 18.96 (Procurement Specialist must analyze grant requirements, any
Developed                               Specialist             applicable exhibits, appendix’s, DBE goals, etc. for special RFP/RFQ requirements. May need
                                                               to analyze for & follow purchasing procedures outside of the City’s procedures/statutes
                                                               depending on funding source.) See RFP/RFQ development procedures
Federal Audit                           Procurement            (Over $250,000 w/FHWA funding) In advance of any contract being awarded, consultant must
                                        Specialist             be Federally audited. Coordinate with consultant, funding agency & Federal/State auditors.
                                                               Procurement to reconcile audit with project financial records.
Negotiations                            Procurement            Procurement Specialist and Project Manager will analyze/strategize for negotiations for scope
                                        Specialist & Project   of work, fee schedule and terms and conditions. Finalize negotiations. Procurement Specialist
                                        Manager                will prepare all final documents.
Request for                             Project Manager        Project Manager to complete the Services Request Form and submit with original signature to
Contract                                                       Procurement Specialist. The form should include funding source and other applicable
                                                               information.
Federal Funded                          Procurement            Analyze grant and or funding agencies requirements for special contracting requirements,
Projects – Grant                        Specialist             procedures, DBE Goals, etc. for agreement.
Analysis

Risk evaluation &                       Procurement            Procurement Specialist will analyze for risk factors which include, but are not limited to,
requirements                            Specialist             insurance coverage, performance bond, payment bond, setting up escrow account etc.
Contract                                Procurement            Analyze grant requirements and develop contract depending on project funding source, costs,
Development                             Specialist             complexity, etc.
Staff Report                            Procurement            Coordinate with Project Manager to develop staff report, include negotiated scope and fee
(projects over                          Specialist & Project   schedule and award recommendation.
$100,000)                               Manager
Award (projects                         Procurement            After award by council, send award letter and final contract document to the consultant for
over $100,000)                          Specialist             signature.

Contract Execution                      Procurement            Procurement Specialist fully executes contract internally once it is returned.
(projects over                          Specialist
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$100,000)
Performance and                         Procurement            Secure performance bond, payment bond and insurance documents from the consultant.
Payment Bonds                           Specialist             Analyze for coverage and accuracy
Escrow Accounts                         Procurement            Escrow accounts, letter of credits, certificates of deposits, etc. may be negotiated by specialist
                                        Specialist             in lieu of or in addition to bonding requirements.
Purchase Order                          Procurement            Procurement Specialist creates purchase order including the scope of work, fee schedule, total
                                        Specialist             contract amount and term or with contract for over $100000 projects and depending on
                                                               complexity. Once created, the Procurement Specialist forwards to Procurement Specialist
                                                               Supervisor for approval.

Notice to Proceed                       Procurement            Notice to proceed will be issued after Procurement Specialist has all documentation in order.
                                        Specialist             The purchase order with signed terms and condition acknowledgement letter on file in
                                                               Procurement Specialist is to be considered the notice to proceed for projects under $100,000.

                                                               If the project is less than $35,000 the purchase order is to be considered the notice to proceed.

                                                               If project is over $100,000, an official notice to proceed will be issued after specialist has
                                                               confirmed all documentation is in order & reconciled.

Contract Dispute                        Procurement            Procurement Specialist will act as intermediary/liaison between consultant & City for contract
Resolutions                             Specialist             disputes. Develop/execute follow-up documentation for settled disputes.
Contract                                Procurement            Project Manager will submit a Services Request Form referencing original contract order
Amendment                               Specialist & Project   number to Procurement Specialist with necessary changes attached. Procurement specialist
requisition                             Manager                will analyze for necessity of amendment. If necessary, original purchase order/contract will be
                                                               modified accordingly, with the vendor again returning a signed acknowledgement, if the
                                                               project is under $100,000. When signed acknowledgement is received, work may proceed.

                                                               All contracts/purchase orders are allowed to go over the not to exceed amount by 10%.
                                                               Contracts/purchase orders over $25,000 are allowed to go over the not to exceed amount by
                                                               10% but must have the City Manager’s authorization.
                                                               Procurement Specialist will develop an amendment for all changes over the $100000
                                                               threshold.
Encumbrance                             Procurement            Project Manager to submit a Services Request Form referencing the original contract/purchase
Requests                                Specialist             order number to Procurement Specialist with the budget numbers and amount to be
                                                               encumbered.
LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                    LOB   3-49
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014


                                                               Procurement Specialist will create a release in Oracle and a notification will be sent when the
                                                               release is approved.

                                                               Procurement Specialist is responsible for all encumbrance issues, including unencumbering
                                                               and any budget issues that they are authorized and approved for.
Pay Estimates                           Procurement            Procurement Specialist is responsible for creating pay estimate tracking form. Analyze &
                                        Specialist             reconcile retainage, taxes, accuracy of invoices, unretainable amounts, etc.
Tracking of                             Procurement            Procurement Specialist to track and maintain Monthly Utilization Forms, Affidavit of amounts
documentation                           Specialist             paid (including subs over $10,000), monthly Employment Utilization Forms 820-010, etc.
Consultant                              Procurement            LAG Appendix 31.85
Performance                             Specialist & Project
Evaluation Report                       Manager
Acceptance &                            Procurement            Project Manager to sign for acceptance of project. Procurement Specialist to assist with staff
Recommendation                          Specialist & Project   report and Council “release of retainage” approval. Attend Council meeting to answer
for Release of                          Manager                questions.
Retainage
Release of                              Procurement            Reconcile pay estimate sheet and release all retainage and close escrow account.
Retainage                               Specialist
Audit                                   Procurement            For Federal projects over $250,000 and allowed to proceed during auditing must be audited by
Reconciliation                          Specialist             the Specialist after the completion of the project with the findings from the auditors office,
                                                               including breakdown of overhead percentages, profit percentages, labor percentages,
                                                               subconsultant overhead cost, etc.




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                   LOB   3-50
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

Tab i2 – Professional Services Flowchart




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-51
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                                                     Financial & Management Services Business Plan 2009-2014




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-52
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

Tab j1 – Requests for Proposal and Qualifications Description


TASK                                    RESPONSIBLITY          STANDARD PROCEDURE
Advertisement                           Procurement            Request for Consultants is published once a year (January) to solicit persons/companies for the
                                        Services               roster - RCW 39.80.030. The Columbian is the official newspaper of the City of Vancouver –
                                                               VMC 1.04.010. It is at the project manager’s discretion to do additional advertising for a
                                                               specific project. – Procedure.

                                                               Exempt from RFP process:
                                                               Contracts for services required to be performed by licensed architects, engineers or landscape
                                                               architects, shall follow the procedural requirements of RCW Chapter 39.80. VMC 3.05.225
                                                               Retaining for special assistant city attorneys or of attorneys to represent or advise the City in a
                                                               given situation, which retentions shall be by rules…. VMC 3.05.200(2) – Contact City
                                                               Attorney’s Office.

Verification of                         Project Manager        Project Manager to verify / obtain copy of license to confirm exemption from RFP process.
Licensing
Roster                                  Procurement            Procurement Services to maintain both an alphabetical and type of work list – RCW 39.80
                                        Services               (Excel)

Request for                             Project Manager        If work to be performed is under the Council threshold, refer to the Professional Services
Contract                                                       Standard Procedures.
                                                               If work to be performed is over the Council threshold, continue to the next step.

Project Request                         Project Manager        Electronically provide RFP/Q request form, scope of work/qualifications, submittal and
                                                               evaluation criteria and other project information to Procurement Services. – Procedure

Review                                  Procurement            Add front end documents and incorporate any other documentation or requirements.
                                        Services
                                                               Estimated Time: 5 working days
Final Review                            Project Manager        Opportunity for project manager to review the final document before advertising, printing, and
                                                               mailing This process may take several reviews– Procedure.
                                                               Estimated Time: 3 working days (dependent on complexity of project – may take longer)
Printing                                Procurement            Coordinate with print shop. If print shop is at full capacity, outside printing firms may be used.
LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                    LOB   3-53
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

                                        Services               – Procedure.

                                                               Estimated Time: 3 working days
Distribution /                          Procurement            Procurement Services to distribute and mail. There is no cost to the vendor for this packet.
Mailing                                 Services

Bid Line                                Procurement            A list of current opportunities and results of recently opened bids/quotes – Procedure
Bulletin Board                          Services               Estimated Time: updated weekly or as needed.
Website                                                        Bid Line: 360/619-1039                          Website: www.ci.vancouver.wa.us
                                                               Bulletin Board: Located in the lobby of the Esther Short Building, 610 Esther Street.

Plan Holders List                       Procurement            Procurement Specialist to set-up initial planholders list, starting with the subscribing plan
                                        Services               centers and including internal plan holders. The Support Specialist is responsible for updating
                                                               and maintaining the individual project planholders lists. Any address changes to be forwarded
                                                               to Procurement Specialists for update of the master supplier list and sub-lists. Planholder lists
                                                               can be found at:

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm
Addenda                                 Procurement            Construction and/or Project Manager initiate the addendum and forwards to Procurement
                                        Services               Specialist for preparation. Procurement Specialist obtains Procurement Services Manager’s
                                                               signature and distributes or forwards to Support Specialist for distribution.

                                                               Critical Timeframe: Construction and/or Project Manager should have addenda information to
                                                               Procurement Specialist two days before issuance, preferably. A fax/email notification of the
                                                               addendum is sent – available on PS website. Plan holders must receive 6 calendar days prior
                                                               to opening or bid-opening date may be extended. The extension of a bid opening date may be
                                                               waived by the Procurement Services Manager.

                                                               Website: http://www.ci.vancouver.wa.us/procurement/projects.htm

Pre-Proposal                            Project Manager        Project Manager prepares agenda and leads discussion. Procurement Specialist attends. A sign
Meeting (optional)                                             up sheet for attendees will be circulated, if practical. A tape recording of the meeting may be
                                                               made. – Procedure

                                                               Note: It is encouraged that the pre-bid be scheduled at least 10 days prior to bid opening to
LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                   LOB   3-54
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

                                                               allow for addendum preparation if needed.

                                                               Estimated Timeframe: as needed
Cancellation of                         Procurement            An invitation may be canceled at the discretion of the Procurement Services Manager.
Invitation                              Services Manager       Reason(s) shall be made part of the proposal file. VMC 3.05.250

Evaluation Criteria                     Project Manager        Determine committee members and evaluation criteria details / weighting prior to receipt of
                                                               proposals.

RFP/RFQ Received                        Procurement            The deadline for receiving RFP/RFQ’s shall be not less than thirteen days from the date of first
                                        Services               publication. Responses shall be submitted sealed to the office of Procurement Services
                                                               Manager within regular business hours – VMC 3.05.290. Normal due day & time is
                                                               Wednesday at 3:00 p.m. Procurement Services compiles a list of respondents. No “opening” is
                                                               held – Procedure.
RFP/RFQ                                 Project Manager        Project Manager to sign for and pick up responses received from Procurement Services.
Evaluations                                                    Project Manager distributes to committee for evaluation / selection. The original of each
                                                               response is kept Procurement Services for file – Procedure.

Protests                                Procurement            Protestor must document reasons in writing for protest to Procurement Services Manager
                                        Services               within 2 days after bid opening and prior to award. Procurement Services Manager alerts City
                                                               Attorney’s Office, Procurement Specialist and Construction and/or Project Manager. PS Mgr
                                                               to respond, in writing, to all parties within 10 days after receipt. Three day appeal process after
                                                               receipt of City’s determination. See policy if protest is prior to bid opening. Policy found at
                                                               http://citynet/procurement/policies.asp . Procurement Specialist to be present at council
                                                               meeting. – Procedure.

                                                               Critical Timeframe: Immediately
Rejection of                            City Council           The City Council may reject any and all responses when it finds that the public interest will be
Proposal                                                       served thereby. Appropriate findings shall be made and these shall be set forth in the City
                                                               Council minutes. – VMC 3.05.300.

Contract                                Project Manager        Project Manager, Procurement Specialist and/or evaluation committee negotiates the details of
Negotiation                                                    the scope of work, performance expectations, and cost to do the work with the recommended
                                                               firm(s).

LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                    LOB   3-55
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

                                                               Estimated Time: 30 days
Contract                                Procurement            Procurement Services to write/finalize agreement and forward to City Attorney for review and
Preparation                             Services               approval as to form. – Procedure. Federally funded transportation projects require the use of
                                                               the WSDOT form.

                                                               Estimated Time: 10 working days
Staff Report                            Project Manager        Project Manager to initiate staff report to Council secretary. – Procedure

Pre-Agenda                              Procurement            Procurement Services staff member to attend and sign off – Procedure.
                                        Services

Award of Contract                       City Council           The City Manager shall present staff recommendations to the City Council for award. Council
                                                               meets every Monday night, except on the fifth Monday. Procurement Specialist to attend if
                                                               applicable – Procedure.

Request for                             Project Manager        Electronically provide Procurement Services with a Request for Contract – Procedure
Contract
                                                               See Professional Services Agreement Process for remaining process.




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                   LOB   3-56
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

Tab j2 – Requests for Proposal and Qualifications Flowchart




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-57
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

Tab k1 – Small Works Contracts Description


TASK                                    RESPONSIBILITY          STANDARD PROCEDURE
Advertisement                           Procurement Services    At least twice a year, the municipality shall publish in a newspaper of general circulation
                                                                within the jurisdiction a notice of the existence of the roster and solicit the names of
                                                                contractors for such roster – RCW 39.04.155. The Columbian is the official newspaper of the
                                                                City of Vancouver – VMC 1.04.010. (No advertisement is done for each individual project.)
Roster                                  Procurement Services    First Class Cities are allowed to use an alternate method of solicitation for Public Works
                                                                Projects under $200,000 - RCW 35.22.620. Such municipalities may create a single general
                                                                small works roster or may create a small works roster for different categories of anticipated
                                                                work – RCW 39.04.155, VMC 3.05.330. The City of Vancouver’s roster is defined by
                                                                category – Procedure.


Roster Eligibility                      Procurement Services    In order for a contractor to be on the Small Works Roster, they must have the following on
                                                                file: Small Works Contract, Questionnaire/Application, Current Insurance Requirements,
                                                                Open/Active Industrial Insurance Account, Department of Revenue Account, Department of
                                                                Employment Security Account, Unified Business Identifier (UBI) Number. – Procedure and
                                                                RCW ??? (SHB 2010)

Requisition/PO                          Project Manager,        Project Manager obtains three phone quotes, if possible, from contractors on the Small Works
                                        Procurement Services    Roster. They select the lowest, most responsible bidder and enter a Requisition . When
                                                                requirements have been met, Procurement Services will send Contractor a Purchase Order.




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                  LOB   3-58
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

Required Project                        Procurement Services    Statement of Intent to Pay Prevailing Wage Form (all projects)- The agency administering the
Documentation                                                   contract (City of Vancouver) may not make payments for work performed until all
(all projects)                                                  contractors have submitted an Intent form that has been approved by the Labor & Industries
                                                                Industrial Statistician. RCW 39.12.020, 040 and 042

                                                                For projects under $2,500, the Contractor may file a Combo Intent/Affidavit form, which
                                                                waives a filing fee and is processed through Procurement Services. Procurement Services
                                                                will approve the form and mail it to the Department of Labor & Industries once a month.


Project Completion/ Project Manager,                            Accounts Payable will scan invoice and send to Project Manager. Project Manager will enter
Payment             Procurement                                 a receipt in Oracle when the project is complete. Procurement Services will enter an
                    Services, Accounts                          acceptance of the Receipt when approved Intent is received and Project Manager has
                    Payable                                     indicated project is complete. Accounts Payable will pay invoice when 4-way match is done
                                                                and invoices comes due.
Change Orders                           Project Manager         Project Manager will issue a change order in accordance with City’s change order policy. (98
                                                                WDOT SS 1-04.4). Original to be filed with Procurement Services
                                                                L:\Support Services\Procurement Services\Policies\Change Order Policy
Required Project                        Procurement Services    Affidavit of Wages Paid Form (all projects) – Must be filed for each project and approved by
Documentation (all                                              the Labor & Industries Industrial Statistician (unless combo form used as mentioned above).
projects)                                                       If Contractor fails to file, they will be removed from the Small Works Roster.
                                                                RCW39.04.040 and 042
                                                                Project will be closed after receipt of all required documentation.
Progress Report                         Procurement Services    Any municipality that utilizes the small works roster process established in RCW 39.04.155
                                                                to award contracts for public works projects, or …purchases, must post a list of the contracts
                                                                awarded under RCW 39.04.155 and 39.04.190 at least once every two months. The list shall
                                                                contain the name of the contractor, amount of contract, description of work, and date
                                                                awarded.




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                  LOB   3-59
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014


Tab k2 – Small Works Contracts Flowcharts (1 of 2)




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-60
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014


   Monitor Oracle                                                               Insert notice to                                     Update tracking               Send PO to
                                           Is the                                                     Change the
  for Small Works                                              Create         proceed language                                      spreadsheet with              Procurement
                                       contractor on                                                receipting level
    Requisitions                                           purchase order       with prevailing                                    Contractor name, PO            Supervisor for
                                        the roster?                                                    to 4-way
       daily.                                                                 wage requirements                                  number and dollar amount.          approval




                                                                                                                                      Mail purchase order to
                                                                            Send an email     No       Has the Project                   contractor include       Print Purchase
                                         Return                              to the PM to               Manager (PM)                  prevailing wage combo            Order
                                      requisition to                         check on the            receipted the project              form (if applicable)
                                     department with                            status.                 as complete?
                                       explanation.

                                                                                                      Yes




                                                                                                     Obtain Intent to Pay                        Notify the
                                                                                                   Prevailing wage form for           No      contractor of the
                                                                                                   project file and verify for                 requirement to
                                                                                                           accuracy.                                 file.




                                                                                                      Yes
                                                                                                                                              No

                                                                                                        Do acceptance
                                                                                                          receipt in
                                                                                                            Oracle



                                                                                                                                                                       Update
                                                                                                                                        Obtain Affidavit of
                                                                                                                                                                    spreadsheet &
                                                                                                                                       Wages Paid form to
                                                                                                            Update                                                     Send to
                                                                                                                                      closeout Small Works
                                                                                                           tracking                                                  appropriate
                                                                                                                                             project.
                                                                                                         spreadsheet.                                                   staff.




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                                          LOB   3-61
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014

Tab k3 – Small Works Contracts Flowcharts (2 of 2)




LOB 3 Procurement Services 8-12-10.doc / 8/12/2010                                         LOB   3-62
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                                                     Financial & Management Services Business Plan 2009-2014

Tab l – Supplier Maintenance




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                                                   Coordination Draft - Not for Distribution


Tab m – Surplus




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                                                              Coordination Draft - Not for Distribution


Tab n1 – Small Works Quotes Description

TASK                                   RESPONSIBILITY         STANDARD PROCEDURE
Advertisement                          Procurement Services   At least twice a year, the municipality shall publish in a newspaper of general circulation
                                                              within the jurisdiction a notice of the existence of the roster and solicit the names of
                                                              contractors for such roster – RCW 39.04.155. The Columbian is the official newspaper of
                                                              the City of Vancouver – VMC 1.04.010. Request for Small Works Contractors is published
                                                              in January and July of each year – Procedure. (No advertisement is done for each individual
                                                              project.)
Roster                                 Procurement Services   First Class Cities are allowed to use an alternate method of solicitation for Public Works
                                                              Projects under $200,000 - RCW 35.22.620. Such municipalities may create a single general
                                                              small works roster or may create a small works roster for different categories of anticipated
                                                              work – RCW 39.04.155, VMC 3.05.330. The City of Vancouver’s roster is defined by
                                                              category – Procedure.
                                                              L:\Support Services\Procurement Services\Rosters\SmallWorksRoster
Roster Eligibility                     Procurement Services   In order for a contractor to be on the Small Works Roster, they must have the following on
                                                              file: Small Works Contract, Questionnaire/Application, Current Insurance Requirements,
                                                              Open/Active Industrial Insurance Account, Department of Revenue Account, Department of
                                                              Employment Security Account, Unified Business Identifier (UBI) Number. – Procedure and
                                                              RCW ??? (SHB 2010)

Quote Specification                    Construction and/or    Electronically provide: project description for proposal, proposal items, amendments, special
(over current year’s                   Project Manager        provisions, contract bid items, technical specifications, and Traffic Control Device Standards
threshold)                                                    (if applicable) to Procurement Services. Also, provide the small works construction request
                                                              form including budget number, project estimate, and funding source and/or other special
                                                              requirements. – Procedure
Review                                 Procurement Services   Add front-end documents including wage rates and incorporate project description and
                                                              proposal items.

                                                              Estimated Time: 5 working days
Final Review                           Construction and/or    Opportunity for Construction and/or Project Manager to take a look at the final document
                                       Project Manager        before printing/mailing.
                                                              Estimated Time: 3 working days
Printing                               Procurement Services   Coordinate with printshop. Printshop to call Procurement Services - Purchasing when ready.

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                                                              Coordination Draft - Not for Distribution


                                                              If Print Shop is at full capacity, outside printing firms may be used.
                                                              Estimated Time: 3 working days
Distribution /                         Procurement Services   Procurement Specialist to provide initial labels to Support Staff for mailing.
Mailing                                                       Procurement Specialist will also provide the Support Staff a Notice to Small Works Roster
                                                              Participants to be emailed/faxed to the Small Works Roster Area of Expertise to be chosen
                                                              by the Procurement Specialist.
Bid Line/Bulletin                      Procurement Services   A list of current opportunities and results of recently opened bids/quotes for vendors. –
Board/Website                                                 Procedure Time: updated weekly or as needed.
                                                              Website: www.ci.vancouver.wa.us
                                                              Bulletin Board: Located in the lobby at 610 Esther Street
Plan Holders List                      Procurement Services   Procurement Specialist to provide initial electronic copy of planholders list to Support
                                                              Specialist. Support Specialist is responsible for updating and maintaining the individual
                                                              project planholders list. Planholder list can be found on the City Net.

                                                              Whenever possible at least five contractors shall be invited to submit quotes– RCW
                                                              39.04.155

                                                              All contractors in the chosen area of expertise will be notified of the project. Construction
                                                              and/or Project Managers may request specific contractors to notify of the project.
Addenda                                Construction and/or    Construction and/or Project Manager initiate the addendum and forwards to Procurement
                                       Project Manager,       Specialist for preparation. Procurement Specialist obtains Procurement Services Manager’s
                                       Procurement Services   signature and distributes or forwards to Support Specialist for distribution.

                                                              Critical Timeframe: Construction and/or Project Manager should have addenda information
                                                              to Procurement Specialist two days before issuance, preferably. A fax/email notification of
                                                              the addendum is sent – available on PS website. Plan holders must receive 6 calendar days
                                                              prior to opening or bid-opening date may be extended. The extension of a bid opening date
                                                              may be waived by the Procurement Services Manager.

                                                              Website: http://www.ci.vancouver.wa.us/procurement/projects.htm.
Pre-Quote Meeting                      Procurement Services   Project Manager prepares agenda and leads discussion. Procurement Specialist attends. A
(optional)                                                    sign up sheet for attendees will be circulated, if practical. A tape recording of the meeting
                                                              may be made. – Procedure


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                                                              Coordination Draft - Not for Distribution


                                                              Note: It is encouraged that the pre-bid be scheduled at least 10 days prior to bid opening to
                                                              allow for addendum preparation if needed.

                                                              Estimated Timeframe: as needed
Cancellation of                        Procurement Services   A Request for Quotation may be canceled at the discretion of the Procurement Services
Request for                            Manager                Manager. Reason(s) shall be made part of the quote file – VMC 3.05.120.
Quotation
Quote Opening                          Procurement Services   The deadline for receiving bids shall be not less than thirteen days from the date of first
                                                              publication. Responses shall be submitted sealed to the office of Procurement Services
                                                              Manager within regular business hours and opened in public by the Procurement Services
                                                              Manager or designate – VMC 3.05.110 ; 3.05.140 & 3.05.290.

                                                              Bids are opened in Procurement Services on Thursday at 3:00 p.m. – Procedure.
Bid Tabulation                         Procurement Services   The Procurement Services Manager shall tabulate the bids – VMC 3.05.140 & 3.05.290.
                                       Manager/Procuremen
                                       t Services             Procurement Services Manager designate, Procurement Specialist, receives opened bid
                                                              packets, checks completeness of necessary paperwork, tabulates bids, verifies contractor
                                                              status (debarment verification) and distributes to Project Manager, Construction Manager
                                                              and all respondents. – Procedure.

                                                              Estimated Timeframe: 2 working days
Protests                               Procurement Services   Protestor must document reasons in writing for protest to Procurement Services Manager
                                       Manager                within 2 days after bid opening and prior to award. Procurement Services Manager alerts
                                                              City Attorney’s Office, Procurement Specialist and Construction and/or Project Manager.
                                                              PS Mgr to respond, in writing, to all parties within 10 days after receipt. Three day appeal
                                                              process after receipt of City’s determination. See policy if protest is prior to bid opening.
                                                              Policy found at http://citynet/procurement/policies.asp . Procurement Specialist to be present
                                                              at council meeting. – Procedure.
                                                              Critical Timeframe: Immediately
Rejection of Quotes                    Construction and/or    The City may reject any and all quotes when it finds that the public interest will be served
                                       Project Manager,       thereby. Appropriate findings shall be made part of the quote file – VMC.
                                       Procurement Services
Award of Quote                         Project                Award quote to lowest responsible bidder, as defined in RCW 43.19.1911.
                                       Manager/Procuremen     Procurement Specialist prepares, executes award, returns unsuccessful bids to Support

LOB 3 Procurement Services 8-12-10.doc/ 08/12/10
                                                                                                 LOB 3a-67
                                                              Coordination Draft - Not for Distribution


                                       t Services             Specialist, and obtains a performance & payment bond (if over $35,000).
Requisition                            Service Area /         After award of bid, a requisition is initiated and approved in Oracle by service
                                       Department             area/department.– Procedure

                                                              The signature authorization list can be found on the CityNet.
Purchase Order                         Procurement Services   Procurement Specialist creates Standard PO and sends to Procurement Services Supervisor
                                                              for approval in Oracle and issues Purchase Order. - Procedure.

                                                              Estimated timeframe: 1 working day
Required Project                       Procurement Services   Performance/Payment Bonding – The successful bidder shall furnish a performance or surety
Documentation                                                 bond in an amount equal to the total amount of the contract for projects over $35,000. RCW
(all projects)                                                39.08.010.
Pre-Construction                       Construction and/or    After award, Construction and/or Project Manager coordinates the pre-con meeting.
Meeting                                Project Manager,       Procurement Services to attend and tape record for future reference. If the project is
(optional)                             Procurement Services   federally or grant funded, meeting minute must be available. - Procedure
Required Project                       Procurement Services   Statement of Intent to Pay Prevailing Wage Form (all projects)- The agency administering
Documentation                                                 the contract may not make payments for work performed until all contractors have submitted
(all projects)                                                an Intent form that has been approved by the Labor & Industries Industrial Statistician.
                                                              RCW 39.12.020, 040 and 042

                                                              Contractor has the option to reduce payment by subcontractor amount that’s lacking intent
                                                              and City will pay balance.
Payments including                     Construction and/or    Construction and/or Project Manager to prepare and execute pay estimate, including a list of
retainage and escrow                   Project Manager,       subcontractors who have performed work during that period, and forward it to Procurement
                                       Procurement            Specialist. Contracts for public improvements are subject to 5% retainage based on subtotal.
                                       Specialist and A/P     Options include escrow or investment accounts, and retainage bonds. Title 82 RCW. RCW
                                                              60.28.010 and 011. Retainage must be held for a minimum of 45 days after council
                                                              acceptance and released within a total of 60 days. Procurement Specialist to enter invoice
                                                              into Oracle for escrow payments (retainage). Procurement Specialist to enter invoice into
                                                              Oracle for release of retainage.

                                                              A/P matches invoice, receipt & PO within Oracle and withholds retainage. There will be
                                                              daily check runs.


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                                                              Coordination Draft - Not for Distribution


                                                              All payments are approved by City Council. – Procedure

                                                              Estimated Timeframe: 1-3 working days
Change Orders                          Construction and/or    Construction and/or Project Manager will issue a change order in accordance with the City’s
                                       Project Manager        change order policy. (98 WDOT SS 1-04.4). Original to be filed with Procurement
                                                              Services.

                                                              The City Manager shall be notified immediately by the Construction and/or Project Manager
                                                              when Public Works construction agreements, with a contracted dollar amount (shown in
                                                              parenthesis) increases singly or cumulatively by 10%. When practical, this should occur
                                                              prior to start of construction authorized through the change order process.

                                                              L:\Support Services\Procurement Services\Policies\Change Order Policy

Required Project                       Procurement Services   Certification of Signature Authorization, Form GPO 893-343 (CDBG funded projects)
Documentation
(CDBG)


Required Project                       Procurement Services   Certified Payroll - The Contractor and all subcontractors or lower tier subcontractors will be
Documentation                                                 required to submit Certified Payrolls to City of Vancouver, Procurement Services, within ten
(CDBG)                                                        calendar days for Federal funded projects or 7 days if CDBG funded projects. If these
                                                              payrolls are not supplied any or all payments may be withheld until compliance is achieved.
                                                              For all non federal-aid and local funded City of Vancouver public works projects each
                                                              contractor shall keep accurate payroll records for three years from the date of acceptance.
                                                              Refer to WAC 296-127-320 Payroll for specific information. A Contractor and all
                                                              subcontractors shall, within ten days after it receives a written request, as defined by RCW
                                                              39.12.010(4) file a certified copy of the payroll records with the Owner. Procurement
                                                              Services reserves the right to require the payroll records on projects considered higher risk.

                                                              First certified payroll from contractor and subcontractors must be checked to ensure payment
                                                              of prevailing wages. Conduct reviews of each contractor’s successive payroll. All payrolls
                                                              are checked for overtime, additional classifications and apprenticeship verification. Wage
                                                              surveys are conducted by Construction Services/Project Mgr on federal funded projects -

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                                                              Procedure.
Required Project                       Construction and/or    Wage Interviews/Surveys, Form No. HUD-11 (CDBG). Construction and/or Project
Documentation                          Project Manager        Manager to forward completed wage surveys to Procurement Services. Procurement
(special funded                        CDBG Staff             Services to check interview rate against certified payroll and applicable wage rates.
projects)                                                     (Assignment determined at pre-construction meeting)
Required Project                       Procurement Services   Contract and Subcontract Activity, Form No. HUD-2516 (CDBG funded projects)
Documentation
(special funded
projects)
Required Project                       Procurement Services   Affidavit of Wages Paid Form (all projects) – The agency administering the contract may not
Documentation                                                 release final retainage until all contractors have submitted an Affidavit form that has been
(all projects)                                                certified by the Industrial Statistician. RCW 39.12.040 and 042
Required Project                       Procurement Services   Final Labor Report, (CDBG funded projects)
Documentation
(special funded
projects)
Reports                                Procurement Services   Any municipality that utilizes the small works roster process established in RCW 39.04.155
                                                              to award contracts for public works projects, or …purchases, must post a list of the contracts
                                                              awarded under RCW 39.04.155 and 39.04.190 at least once every two months. The list shall
                                                              contain the name of the contractor, amount of contract, description of work, and date
                                                              awarded. Progress Report posted in lobby at 610 Esther Street
Project Completion                     Construction and/or    Notification from project manager that project is complete.
                                       Project Manager        Retainage will be released with receipt of all required project documentation




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Tab n2 – Small Works Quotes Flowchart




                                                                                                                      Compare the previous pay
  Issue Notice to                                                                                                                                                                     Sign off on pay
                                  Receive                                                                              estimate with the current
     Proceed                                              Does the prime and any subs for this pay                                                             Create receipt          estimate and
                                 monthly pay                                                                            estimate to ensure the
    (Purchase                                           estimate have their Statement of Intent filed?                                                           in Orcale.          deliver original to
                                  estimate.                                                                           numbers are carried over
      Order).                                                                                                                                                                         AP, copy to file.
                                                                                                                              correctly.

                                                                                                No


                                                                                                   Notify the
                                                                                                  prime of the
                                                                                                    missing
                                                                                                     intents.


                                                                                   Send Notice of                     Receive                                                    Review payrolls and
                  Verify Affidavits of Wages         Send final
                                                                                   Completion to                 confirmation from                 Receive final                send letters regarding
                  paid form for prime and all      payroll letter, if
                                                                               Department of Revenue             PM that project is                pay estimate.                 outstanding items, if
                        subcontractors.              applicable.
                                                                               & Employment Security.               complete.                                                         applicable.




                    Receive Department of                                                    Send file to
                                                                Release
                    Revenue & Employment                                                      Central
                                                               Retainage
                       Security Release                                                       Records




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Tab o – Interlocal Agreements Description

TASK                                 RESPONSIBLITY          STANDARD PROCEDURE
Definition and                                              One of the most common methods for neighboring jurisdictions to cooperate is for them to enter into
Explanation of                                              interlocal agreements with one another. These agreements may take a variety of forms. The most
Interlocal                                                  common form involves a formal contract for services between two jurisdictions under which one
                                                            government agrees to provide a service to another government for an agreed price. For example, a city
                                                            may contract with another city for law enforcement services. Intergovernmental agreements may also
                                                            take the form of a joint service agreement where two or more jurisdictions join forces to plan, finance
                                                            and deliver a service within the boundaries of all participating jurisdictions. Finally, governments may
                                                            also enter into various types of service exchange arrangements under which participating jurisdictions
                                                            agree to lend services to one another. Examples of this type of arrangement are mutual aid agreements
                                                            for emergency services, which exist between many jurisdictions in this state.
                                                            The Interlocal Cooperation Act (Ch. 39.34 RCW) in this state contains a broad authorization for any
                                                            one or more public agencies to contract with any one or more other public agencies to perform any
                                                            governmental activity or service which each agency is authorized by law to perform individually.
                                                            Public agency is very broadly defined as any agency, political subdivision, or unit of local government
                                                            of this state. This includes municipal corporations, special purpose districts, local service districts, any
                                                            agency of the state government, any agency of the United States, any Indian Tribe recognized as such
                                                            by the federal government, and any political subdivision of another state.
                                                            This means a city may contract with another city, the county, a special district, an agency of state
                                                            government and so on. This also means that a very wide range of services and activities may be the
                                                            subject of the contract. Some common examples are law enforcement services, fire protection services,
                                                            jail services, court services, emergency dispatch services, building inspections and code enforcement.
                                                            It is also possible to contract for joint use of equipment, buildings, or personnel under the Interlocal
                                                            Cooperation Act.
                                     Types of Interlocals   Service Contract: Under this arrangement, one unit of local government contracts with another
                                                            to provide one or more services for a stated amount. The terms of the contract are negotiated
                                                            and formalized in a written agreement. One city or other entity is the supplier of the service
                                                            and the other pays for the service. This is the most common method of intergovernmental
                                                            contracting.

                                                            Joint Agreement: This method is distinguished from the service contract in that responsibility
                                                            for the performance of a particular function or the operation and construction of a facility
                                                            would be shared through the creation of an administrative vehicle to handle service
                                                            responsibilities; e.g., a board consisting of representatives of each participating governmental

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                                                          unit. The joint agreement may be spelled out through a contract, generally authorized by
                                                          ordinance, following procedures established in the Act, which spells out the details at local
                                                          discretion. This approach leaves a good deal of flexibility so that local officials can tailor the
                                                          program to reflect their own needs and sensitivities.

                                                          Cooperative Purchasing Agreement: Under this agreement, one Washington Sate public
                                                          agency allows the other to purchase goods, materials, contracts, etc, from an existing contract
                                                          held by that agency. If you are working with an agency outside of the State of Washington no
                                                          agreement is needed, instead you need to obtain a copy of their affidavit of advertising and the
                                                          cooperative purchasing language in their bid.

Authorization for                    •      Procurement   It is the purpose of this chapter to permit local governmental units to make the most efficient
interlocal service                          Services      use of their powers by enabling them to cooperate with other localities on a basis of mutual
and joint                                   Manager       advantage and thereby to provide services and facilities in a manner and pursuant to forms of
agreements                                                governmental organization that will accord best with geographic, economic, population and
                                                          other factors influencing the needs and development of local communities. RCW 39.34.010
                                                          The Procurement Services manager is authorized to enter into interlocal governmental
                                                          cooperative purchasing arrangements with other public agencies similarly authorized when the
                                                          best interests of the city of Vancouver would be served thereby. Any cooperative purchasing
                                                          agreement shall set forth the purposes, powers, rights, objectives and responsibilities of the
                                                          contracting parties and shall be governed by the requirements of Washington state law in
                                                          regard to competitive bidding, when applicable. The Procurement Services manager is further
                                                          authorized to make purchases of supplies, materials or equipment under a Agreement already
                                                          entered into by another governmental agency; provided that such agency must itself have
                                                          published a notice to bidders, received sealed bids and publicly opened the same. Such
                                                          purchases are authorized as an exception to the competitive bidding requirements of the city
                                                          charter. (VMC 3.05.090)
Draft Agreement                      •      Project       Project Manager to work with Law to create a draft of the agreement. Federally funded
                                            Manager/Law   agencies may require the use of the applicable Federal forms and/or language (i.e. – Housing
                                            Department    and Urban Development (HUD), United States Forest Service (USFS) and Federal Aviation
                                                          forms)
                                                          Copies of the agreement will be sent between the two agencies until a final document has been
                                                          agreed upon.
Agreement                            •      Procurement   Procurement Services to review draft agreement and provide comments as necessary. –

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Preparation                                 Services          Procedure.
Draft Agreement                      •      Project Manager   Project Manager reviews the draft agreement for accuracy.
Review
Billing Method                       •  Accts Receivable Accounts Receivable to review agreements only where the City will be billing another entity
                                     •  Accts Payable    for services. Accounts Payable to review agreements looking for billing methods, payments
                                                         and grant funding.
Form Content                         • Procurement       City Attorney reviews form content. Requirements may change with Attorney’s
                                        Services         recommendations.
                                     • City Attorney
Final Draft                          • Procurement       Project Manager provides draft to other agency for review and coordinates meeting with all
Agreement                               Services         three parties. Meeting is to finalize agreement. Procurement Services may assist with final
                                     • Project Manager revisions to draft and agency signatures.
                                     • Other Agency
Staff Report                         Project Manager     Project Manager to initiate staff report to Council secretary. – Procedure
                                                         L: City Managers Office\Council\Srform.doc
Pre-Agenda                           • Procurement       Four (4) originals shall be executed by the other agency’s and Council Secretary should have
                                        Services         in hand prior to pre-agenda meeting. – Procedure.
                                     • Project Manager

Council Award                        •      City Council      Interlocal agreements, for services or joint agreements require council approval.
                                     •      City Clerk and
                                            Office            Cooperative Purchasing Agreements do not require Council approval, however; the purchase
                                     •      Proc Services     itself may require Council approval if the cost of the item is over the set Purchasing
                                                              Thresholds.

                                                              The Procurement Services Manager shall make the appropriate recommendation to the City
                                                              Manager. The City Manager shall present the agreement to the City Council and council
                                                              award. Council meets Monday nights with no meeting on the fifth Monday – Procedure.
Agreement                            •      Council           The council secretary will distribute for signature by the necessary officials of the City and
Execution and                               Secretary         return to Procurement Services. The City Clerk send a signed copy to Central Records for
Filing                               •      City Clerk’s      posting on the City Website to meet the recording requirements.
                                            Office
                                     •      Procurement

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                                            Services
Payments                             •      Procurement       After acceptance by Council, Procurement Services will issue a purchase order for each
                                            Services          interlocal, the type of purchase order will be determined on a case by case basis using defined
                                     •      Project Manager   criteria. When a purchase order has been created Procurement Services will e-mail the Project
                                     •      Accounts          Manager the purchase order number and instructions for the payment process based on the
                                            Payable           type of interlocal. Procurement Services will keep track of the purchase order number and
                                     •      Accounts          type on the interlocal status spreadsheet. Accounts Payable will receive an invoice, scan it and
                                            Receivable        forward via e-mail to the project manager. The Project Manager will than follow the payment
                                                              process outlined for the purchase order type used on the individual interlocal agreement.

                                                              Charges will be billed by the City to the agency on a monthly basis. The billing will itemize
                                                              expenses incurred during that billing period, indicating applicable information (staff, number
                                                              of hours worked and amounts paid). The City Accounting Department will send billings to the
                                                              Agency’s Finance office for payment and will simultaneously send an informational copy of
                                                              the billing to the contract manager for the agency and City. Payment by the agency shall be
                                                              due within thirty days after issuance of the bill. Payments that are not paid within the allotted
                                                              time periods shall be considered delinquent. Delinquent charges shall accrue interest on the
                                                              unpaid balance, from the date of delinquency until paid, at an interest rate of one percent (1%)
                                                              per month. – Procedure
                                                              ADVANCE BILLINGS. State agencies are authorized to advance funds to defray charges for
                                                              materials to be furnished or services to be rendered by other state agencies. Such advances
                                                              shall be made only upon the approval of the director of financial management. - RCW
                                                              39.34.150
                                                              Agency to bill the City Contract Manager at time of commencement of work for deposits
                                                              sufficient to cover the estimated costs. Contributions authorized for use by the Agency, which
                                                              are not spent or obligated for the project(s) approved under this Agreement, will be refunded to
                                                              the City or authorized for use for new projects by the City Contract Manager. – Procedure




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Tab p – Monthly Status Report

Page 1




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Page 6 & 7:




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                    Financial & Management Services Business Plan 2009-2014

                 LOB 4: Treasury & Cash Management Line of Business
                              (Financial & Management Services Business Plan)
                                                    Manager: Carrie Lewellen


Table of Contents

    1. Purpose ......................................................................................................................... 1
    2. Goals ............................................................................................................................. 2
    3. Programs and Activities ................................................................................................... 2
        a. Customer Service & Cash Management ......................................................................... 2
        b. Accounts Receivable & Business License Program .......................................................... 2
        c. Departmental Administrative Support ............................................................................ 2
        d. Treasury Management Services .................................................................................... 2
    4. Organization & Staff........................................................................................................ 2
    5. Major Processes we own or manage................................................................................. 4
    6. Key Customers ............................................................................................................... 5
    7. Financial Summary Data.................................................................................................. 5
    8. Key Outcomes and Performance Measures........................................................................ 5
    9. Sample Cost to Provide Services ...................................................................................... 9
    10. Savings or Progress in efficiency, effectiveness, cost savings, or sustainability.................... 9
    11. Continuity of Operations ................................................................................................ 9
    12. Major Issues to address in the next two to three years....................................................10
    13. Analysis of LOB Level Major Issues ................................................................................11
    14. Future Issues ..............................................................................................................14
    15. Attachments ................................................................................................................14
        Program A: Customer Service                                                                                    pg 1a-1
        Program B: Accounts Receivable and Business Licenses                                                          pg 1b-1
        Program C: Administrative Support & City Clerk                                                                pg 1c-1
        Program D: Treasury Management Services                                                                       pg 1d-1


1. Purpose

We are the city’s internal investment center and bank. We handle investments, control long range
savings and manage daily cash flow. We receive payments from all sources. Our staff is often the
first city employee many citizens hear from or see first; as such it is our responsibility to be
professional, courteous and friendly. Our interactions form their first and most lasting impression
of the city and how it operates.
We provide timely, high quality services for all customers, and are good partners with other
agencies.


- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                                            LOB 4--1
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014



2. Goals
In the next 2-5 years, our top goals are to:
a. Update software to improve efficiency and reduce repetitive tasks
b. Look to simplify and streamline processes that are being automated within the next two years
c. Simplify and streamline major processes that have high potential payback and are not going to
    be automated in the next two years

3. Programs and Activities

a. Customer Service & Cash Management
            Parking Payments
            Utility Payments
            All other city payments
b. Accounts Receivable & Business License Program
            Business Licensing & Surcharge Program
            Alarms Program Financial Management
            SCIP Loans
            Stay of Proceedings
            Code Enforcement Violation billings
c. Departmental Administrative Support
            City Clerk Support
            Support for FMS staff
d. Treasury Management Services
            Banking Services
            Bank Reconciliations
            Investment Management
            Debt Management
            Petty Cash


4. Organization & Staff
As of:

Name                                                           Position      FTEs (management)
Carrie Lewellen (unallocated)                                Manager         0.5    (0.5)
 a. Cash Management & Customer Service Program               Various         3.5    (0.5)
 b. Accounts Receivable & Business License Program           Various         5.5    (0.5)
 c. Administrative & City Clerk Support                      Various         2.25    (.25)
 d. Treasury & Fund Management                               Various         2.25__ (.25)______
                              Total                                          14.0 (2.0)
                              Management ratio (city goal: 1:7 or greater)    1: 7




- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                             LOB 4--2
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014


                                               Lloyd Tyler
                                          Chief Financial Officer

                                               Carrie Lewellen
                                                 Treasurer
                                              Deputy City Clerk



         Accounts Receivable &
                                                                  Treasury Management
        Customer Service Support

                                                                      Jack Rasmusson
                     Connie Grant                                      Accountant C
                      Supervisor
                                                                      Tina Honeycutt
                                                                       Accountant A

              Accounts Receivable
                                                                     Admin. Support
              Michael Chamberlain
             Senior Accounting Clerk                                 Christina Allemang
                Leticia Magdaleno                                    City Clerk Support
             Senior Accounting Clerk                                Support Specialist III

                  Jack Allemang
             Senior Accounting Clerk                                   Mary St. Cyr
                 Beverly Bruesch                                    Support Specialist II
             Senior Accounting Clerk

                 Customer Service


                 Margaret Brown
               Customer Service Rep
                 Shannon Casiday
               Customer Service Rep
                   Shaina Bone
               Customer Service Rep


- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                LOB 4--3
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014



5. Major Processes we own or manage
See each Program for process details and flow charts

Process                                       Organization                            Location
Receipt of Payments                           Cash     Mgt   &   Customer     Svc     PROG   A   Tab   A
Parking Permit Sales                          Cash     Mgt   &   Customer     Svc     PROG   A   Tab   D
Parking Customer Service                      Cash     Mgt   &   Customer     Svc     PROG   A   Tab   E
Parking Citation Appeals                      Cash     Mgt   &   Customer     Svc     PROG   A   Tab   F
Parking Citation Journals & Reconciliation    Cash     Mgt   &   Customer     Svc     PROG   A   Tab   G
Bankruptcy Processing                         Cash     Mgt   &   Customer     Svc     PROG   A   Tab   H
Reception & General Customer Service          Cash     Mgt   &   Customer     Svc     PROG   A   Tab   I
Robbery Preparedness                          Cash     Mgt   &   Customer     Svc     PROG   A   Tab   J

Customer Service                              AR   &   Business    Licenses           PROG   B   Tab   A
Collections                                   AR   &   Business    Licenses           PROG   B   Tab   B
Invoicing                                     AR   &   Business    Licenses           PROG   B   Tab   C
Account Maintenance                           AR   &   Business    Licenses           PROG   B   Tab   D
Reconciliations                               AR   &   Business    Licenses           PROG   B   Tab   E
Reporting                                     AR   &   Business    Licenses           PROG   B   Tab   F
Payments – reconciliation, posts, etc.        AR   &   Business    Licenses           PROG   B   Tab   G
Write-offs                                    AR   &   Business    Licenses           PROG   B   Tab   H
Refunds                                       AR   &   Business    Licenses           PROG   B   Tab   I
ACH file settlements                          AR   &   Business    Licenses           PROG   B   Tab   J

Support City Clerk / Deputy                   Admin     Support    &   City   Clerk   PROG C     Tab   A
Publications                                  Admin     Support    &   City   Clerk   PROG C     Tab   B
Record Documents                              Admin     Support    &   City   Clerk   PROG C     Tab   C
Refund Requests                               Admin     Support    &   City   Clerk   PROG C     Tab   D
Invoices                                      Admin     Support    &   City   Clerk   PROG C     Tab   E
Requisitions                                  Admin     Support    &   City   Clerk   PROG C     Tab   F
Public Records Requests                       Admin     Support    &   City   Clerk   PROG C     Tab   G
Mail Handling                                 Admin     Support    &   City   Clerk   PROG C     Tab   H


Cash Management                                              Treasury                 PROG D Tab A
Bank Reconciliations                                         Treasury                 PROG   D   Tab B
Credit Card Reconciliation and Monitoring                    Treasury                 PROG   D   Tab C
Stop Payments & Returned Items                               Treasury                 PROG   D   Tabs D & E
Purchase/Sell Investment Securities                          Treasury                 PROG   D   Tabs F & G
Debt Management                                              Treasury                 PROG   D   Tab H
Interfund Loan Processing                                    Treasury                 PROG   D   Tab I
SAO Schedules & Year End Reporting                           Treasury                 PROG   D   Tab J
Quarterly Reports (investments, debt, cash)                  Treasury                 PROG   D   Tab K
Petty Cash/Change Funds                                      Treasury                 PROG   D   Tab L




- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                          LOB 4--4
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014


6. Key Customers
Customers who represent at least 75% of the work we do (based on time)*
 Fund/Customer                            Summary   Cust Svc    A/R       Bus Lic    Admin Spt    Treasury
 External Customers
  Walk-in public1                           %         30%           15%     5%          %             %
  Call-in public1                           %         20%           65%    90%          %             %
  Mail-in public1                           %         50%           20%     5%          %             %
  Unknown/Other                             %          0%            0%     0%          %             %
                                                      100%       100%      100%
  Internal Customers
   Parking Services Fund        %             71%                 none          7%          %
   Building Fund                %                        8%                     3%          %
   Water/Utility Fund           %             10%                              24%          %
  Parks & Recreation            %             4%                               22%          %
   Transportation Fund          %                                                           %
   Trans Spec Rev Fund          %             7%        20%                                 %
   General Fund / CFO           %             12%       51%                                 %
   Other                        %             9%        21%                    44%          %
  Total                                      100%      100%      100%         100%
*This is a summary of the information reported by each service within the line of business
1
  External customers (when served) are still captured by the fund in “internal customers” too.


7. Financial Summary Data

               Program or Activity                  FTEs     % time        Cost                           Notes
a. Customer Service & Cash Mgt                        4.5                 383,536
    Parking Payments                                  3.2      71%        $272,311
    Utility Payments                                  0.5      10%        $38,354
    All other city payments                           0.8      19%        $72,872
b. Accts Rec & Business Licenses                       6                  $348,114
     General Fund (ex. business licenses)             0.9      15%        $52,217       Alarms, Stays, COBRA, Parks, Cemetery
      Business Licensing & Surcharge                 3.48      58%        $201,906      Bus. License, Surcharge, and Compliance
      Sewer Utility/SCIP                             0.42      7%         $24,368       Septic Dumpers, SCIP Loans
      Airpark Fund                                    0.3      5%         $17,406       Airport
      Parking Services Fund                          0.24      4%         $13,925       Parking Permits
      Fire/Fire Shop Fund                            0.24      4%         $13,925       Fire Inspections, Violations, Shop
      Senior Messenger                               0.12      2%          $6,962       Senior Messenger Advertisements
      Other                                           0.3      5%         $17,406
c. Departmental Admin Support                         2.8                 $405,311
    City Clerk Support                                 1       36%        $144,754       Allocated based on FTEs
    Support for FMS staff                             1.8      64%        $259,399       Allocated based on FTEs
d. Treasury Management Services                      2.25                 $274,929
     Cash & Check Reconciliations                    0.85      38%        $105,573
     Other Recons & Misc Cash Activities             0.45      20%        $54,986
     Misc Non-Cash Activities                        0.45      20%        $54,986
     Daily Cash Position                             0.25      11%        $30,517
- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                              LOB 4--5
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014

      All Investment Activities                              0.2      8%          $23,094
      All Debt Activities                                 0.05        1%           $3,849
Based on 2009 staffing and budget – see each program for details
*Cost to provide service is annual budget divided by percent of staff time unless otherwise noted


8. Key Outcomes and Annual Performance Measures

1- Customer Service
Outcomes and
Performance Measures                       Goal       2007          2008       2009      Change      Remarks

Outcome 1: Our customers are satisfied
Rating on biannual internal                                         Due in
                                           ≥ 3.0       3.2          2009
                                                                                3.1         -3%      Meets standard
customer survey (4 pt scale)
Rating on external
                                          90+%       97.7%         97.7%      97.2%         -1%
customer cards (100% scale)
Total number of customer                                                                             Goal is to increase number of
                                          ≥ 200        193           61         332      +544%
                                                                                                     customer comment cards anually
cards received
Outcome 2: We provide timely and accurate service
Citations booked annually                 Workload   43,200        34,728     32,701        -6%      In 2008, down 1 FTE most of year
                                                                                                     Per Power Park Flex citations issued
Citations booked per day                  Workload    164           131        124          -6%
                                                                                                     statistics
Number of citation appeals                                                                           Increase in ‘08 most likely due to
                                          Workload   1,632         1,884      1,371         -27%     increase in fines
processed annually
Successful appeals per                                                                               Represents appeals administratively
                                          Workload    111           115         64          -45%     dismissed by Parking Services
month
Percent of citations
                                          ≤ 6.0%     3.8%          5.4%       4.28%         -1.2%
appealed
Percent of appeals
                                          ≤ 65%       82%           73%        56%          -23%
successful
Percent processed within
                                          90+%        95%           95%        95%          Stable
24 hours
Outcome 3: We process financial transactions effectively
                                                                                                     In May 2009, Class receipting
Total annual transactions
                                          Workload   81,600        72,696     64,712        -11%     automated; in Sept 2009 parking
processed manually                                                                                   web payments implemented
Transactions processed
                                          Workload   6,800         6,058      5,393         -11%
manually per month
                                                                                                     Calculated monthly; staffing more
                                                                                                     stable in 2008; effective January
Transactions processed                                                                               2009, CSR staff reduced from 4.0 to
                                          70 - 80      80            72         73          +1%
                                                                                                     3.5; effective January 2010, CSR
per employee FTE (daily)
                                                                                                     staff reduced from 3.5 to 3.0 and
                                                                                                     supervisor reduced from 1.0 to .5
Percent of transactions
                                          ≤ 85%       90%           88%        85%          -3.5%    Calculated monthly
processed manually
Same day error rate                                                                                  Very low error rate, well below
                                          < 2.0%     1.4%          .28%       .42%       + 50%
                                                                                                     standard
(Hansen)
Reverse payment error                                New in                                          Very low error rate, well below
                                          < 1.0%      2008         .04%       .07%       +.03%
                                                                                                     standard
rate (Oracle)
Average cash variance per                                                                            Calculated monthly, well below
                                          ≤ $5.00     $.99          $.18       $.18         Stable
                                                                                                     standard
month per FTE
Outcome 4: The Parking Citation Program revenue is being collected appropriately
                                                                                                     Includes estimated 50 @ $25 each
Booked revenue                            Workload   $442,884      $656,554   $622,405      -5%
                                                                                                     issued by VPD


- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                                          LOB 4--6
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014

Escalations assessed                      Workload      $291,294       $215,359      $192,197         -11%

                                                                                                             Includes escalation payments;
Citation payments
                                          Workload      $360,735       $485,775      $474,486         -3%    excludes collection agency and
received                                                                                                     District Court payments
Value and percent                                        $10,546       $21,480          $20,577
                                          Workload                                                    -4%
assigned to District Court                                 2%            3%               3%
District Court recovery rate              > 50%           51%            58%             67%          +9%
Citation dollar face-value                                                                                   Includes some citations written in
                                          > 50%           49%            56%             58%          +2%
recovery rate                                                                                                the prior year
                                                                        New
Value assigned to                                                                                            Includes some citations written in
                                          Reduce        $321,500       agency        $250,926         -12%
collection agency                                                                                            the prior year
                                                                        2008
                                                                        New
Percent assigned to                                                                                          Includes some citations written in
                                          Reduce          44%          agency            31%          -13%
collection agency                                                                                            the prior year
                                                                        2008
Dollars recovered thru
                                          Increase
collection agency




2-Accounts Receivable
Outcomes and
Performance Measures                          Goal              2007           2008            2009      Change    Remarks

Our customers are satisfied
Biannual internal customer                                                     Due in
                                              ≥ 3.0             3.2            2009
                                                                                               3.1                 Exceeds standard
survey (5 pt scale)
Complaints received by A/R                  < 1% of                            New in                              Written or telephone with
                                                           New in 2009
Supervisor or Treasurer                      invoices                           2009                               identification of complainant
We invoice and issue notices in a timely manner
Total invoices sent                        Work load         40,397         40,298
Number of invoices issued
within 48 hours of receipt /               Work load         40,195         40,096
deadline
% invoices issued within 48
                                             ≥ 98%           99.5%             99.5%         99.5%
hours of receipt / deadline
% past due notices issued
within 10 days of due date,                  ≥ 98%              99%            99%
excluding business licenses
                                                                                                                   For 2007 and part of 2008, due
% past due notices for
                                                                                                                   to staffing shortages, business
business licenses issued w/i                 ≥ 98%              75%            75%                                 licensing activity fell below the
10 days of past due date                                                                                           goal. Staffing back in 2008.
We complete reconciliations in a timely manner
Reconciliation per invoice                 By the 10th                                                             Represents % completed by
                                                              100%             100%          100%                  goal deadline
type with GL                                monthly
We collect funds owed to the city before sending them to outside agencies
(Due to economic factors, this is not reflective of staff performance)
Internal delinquency rate –
                                              <15%            4.8%             9.2%
overall (61+ days past due)
Internal delinquency rate -
non-grants (61+ days past                     <10%            4.5%             3.9%
due)
Internal delinquency rate -
                                              <20%            5.1%             15.0%
Grants (61+ days past due)
Internal delinquency rate –
                                                                                                                   Staffing level was increased in
Business Licensing (61+ days                  <20%           33.3%             15.6%                               2008
past due)


- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                                                  LOB 4--7
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014

Our follow up on unpaid accounts is exceptional
Total accounts sent to                                                                                                   Note: Jan 08, collection
                                            Work load       $152,151          $452,350
collections                                                                                                              agency services changed
Percent of accounts sent to
                                            Work load            .4%              1.0%
collections ($)
Accounts referred to
collection agency within 30                  100%             90%                 98%            98%
days of due date
Collection agency recovery –                                                                                             Note: Jan 08, collection
                                            Work load        $53,203            $39,632
total collected                                                                                                          agency services changed
Collection agency recovery                                   37.01%                          10.10%                      Total collected divided by
                                             >25%                                 8.85%
rate - overall                                              (as of 3/31)                    (as of 7/31)                 assigned less returned
                                                                                                                         Measure of collection agency
Write offs as percent of total                                                  New in
                                           No goal yet     New in 2009                                                   performance will vary with
revenue                                                                          2009
                                                                                                                         economic conditions



3-Admin Support
Outcomes and
Performance Measures                       Goal            2007            2008           2009         Change      Remarks

Our customers are satisfied
Rating on biannual internal
                                            ≥ 3.0          3.2             NA             3.1              6%      Still exceeds standard
customer survey (4 pt scale)
We provide timely and accurate service
Legal Advertising dollar                                   New             New
                                          Work load                                                        NA
value per month                                            2009            2009
Document Recordings –
                                                           New             New
total documents recorded                  Work load                                                        NA
                                                           2009            2009
per month
Public Records Requests                                    New             New
                                          Work load                                                        NA
(PRRs) handled per month                                   2009            2009
Pages of PRRs supplied                                     New             New
                                          Work load                                                        NA
per month                                                  2009            2009
Percent of PRRs that fully                                 New             New
                                                                                                           NA
met the required timeline                                  2009            2009
Dollar value of supplies                                   New             New
                                                                                                           NA
ordered per month                                          2009            2009
We process financial transactions effectively
Refunds processed per                                      New             New
                                          Work load                                                        NA
month                                                      2009            2009
Invoices processed per                                     New             New
                                          Work load                                                        NA
month                                                      2009            2009
Requisitions processed per                                 New             New
                                          Work load                                                        NA
month                                                      2009            2009



4-Treasury

 Outcomes and Performance
 Measures                                           Goal          2007             2008          2009           Change    Remarks

 Our customers are satisfied
 Rating on biannual internal
                                                      3           3.4              NA             3.2             6%
 customer survey (4 pt scale)
 We manage investments well*

- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                                                        LOB 4--8
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014

 Investment rate of return
                                           ± .5%        0.45        2.31%        1.25%        46%
 outperforms benchmarks.
 Days that interest is allocated            ≤ 20
 to individual funds after end of          days of      19.8         14.8         13.1        11%
 the month (EOM)                            EOM
                                          < 4 basis
 Investment Management Fee                              3.4          3.5           3.4          3%
                                           points
 We manage cash well**
 The City maintains adequate                Daily
 balances in bank to meet the             balance >   1,002,750    945,674      1,041,322     10%
 immediate needs of the City.                $1m
 Percentage of un-reconciled                <1%        6.22%        1.93%        3.04%        58%
 items at EOM
 We manage debt well
 The City has high bond ratings                       A1 Moody’s   A1 Moody’s   A1 Moody’s
                                          A1 or A+                                           stable
 for GO debt1.                                         A+ S&P       AA- S&P      AA- S&P
 Did financial markets present            Favorable
                                                        Non-       Moderately     Non-       negativ
 an opportunity to refinance               or non-
                                                      favorable    Favorable    favorable      e
 City’s bonds?                            favorable
 saving from bonds renegotiated                                                              negativ
                                          positive       NA        $626,000        NA
                                                                                               e
                                                                                                       None renegotiated
 to better rates this year



9. Sample Cost to Provide Services
                                                                                    2008                  2009
- Cost to process a walk-in cash payment to the City:                           $1.40 - $5.16
(Varies with complexity - approximately 75,000 payments per year)

- Cost to process a mail-in payment to the City:                                     $0.22              $ 0.22
(Using the automated remittance processor - approximately 315,000 payments per year)



10. Savings or Progress in efficiency, effectiveness, cost savings, or sustainability
For each item, identify what it was, what the estimated savings was (in dollars, hours, energy, environment or other
way) and how you calculated the savings.

      1) Remittance Processor with Clark Public Utilities handles most mail-in payments as of 2008
      2) Reception counter rebuild in 2008 improved ergonomics and cash security
      3) Credit card payment receipt for utility payments added in 2009

11. Continuity of Operations
The city must be able to maintain essential operations during a disaster.

a. What major functions are essential for us to maintain or reestablish in case of a
disaster?
            - Payment receipting process
            - Petty cash transactions

b. What personnel or positions are essential to emergency operations?

                        - Cash Management Team Supervisor
                        - Two Customer Service Representatives

c. Where do I find our updated emergency procedures?
- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                                    LOB 4--9
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014


The FMS Continuity of Operations (COOP) document is currently in draft form with Procurement
Services and should be completed by March, 2010.


12. Major Issues to address in the next two to three years

                                          Line of Business & Department Level Issues

CS Issue 2: Because a number of the payment options and T2 parking system features have not
been implemented, the efficiencies possible for Customer Service are not being realized. In fact,
workload has increased as a result of implementing the features that were done. (Department
level Issue)

CS Issue 3: Introduction of a business license surcharge fee at the beginning of 2007 that cannot
be processed through the remittance processor has added significantly to the Customer Service
workload without adding new resources. (Department level Issue)

AR & BL Issue 2: IT resources available to FMS are very limited, which causes many of the
outstanding accounts receivable software corrections, invoicing corrections, etc to be put on hold.
(Department level Issue)

AR & BL Issue 4: When invoices are sent through the Oracle projects module to Clark County,
there are often significant problems with the County’s response. There are still invoices from 2007
that are not resolved. (Department level Issue)

AR & BL Issue 7: Irreplaceable original cemetery records dating back over 100 years are used
for everyday reference. They are at a high risk for damage or loss, and there is no backup to the
data. We have had several meetings with IT to establish getting these records in an alternative,
non-paper database. (Department level Issue)

AR & BL Issue 8: Mail handling needs to be more automated for A/R billings and notices. We
are working with determining the cost/benefit analysis of forwarding some of these processes to
the an internal department that provides this type of service, or an outside business. (LOB level
Issue)

AR & BL Issue 10: Response from the City Attorney’s Office on requests for advice is slower
than our customers find acceptable. (Department level Issue)

AR & BL Issue 11: Should the city be in the loan business or should loans be made by financial
institutions? (Department level Issue)

AR & BL Issue 12: Should the city be in the Alarm business? If so, should we contract out
administration of alarm accounts? (Department level Issue)

AR & BL Issue 13: How can we standardize and simplify invoicing for various services such as
Parking and Fire inspections? (Department level Issue)

Treasury Issue 1: New methods of payment being developed for the public often add significant
work for the finance staff without additional resources. (Department level Issue)

- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                LOB 4--10
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014

Treasury Issue 2: IT resources available to FMS are very limited, which causes many of the
outstanding treasury enhancements to be put on hold. (Department level Issue)

Treasury Issue 4: Treasury is a key partner with any new software upgrade/conversion. For
successful projects, this is critical to ensure that this partnership continues in the future.
(Department level Issue)


                                          Customer Service - Program Level Issues

CS Issue 1: How do we maintain a low error ratio in receipting payments? (Program level Issue)

CS Issue 4: How do we maintain the high level of customer service we have attained with our
internal and external customers? (Program level Issue)


                     Accounts Receivable & Business Licenses - Program Level Issues

AR & BL Issue 1: The Oracle Accounts Receivable software has many limitations that require
manual work-around and processes. It is not currently an effective solution for our needs.
(Program level Issue)

AR & BL Issue 3: Invoice requests by departments are often significantly different from the
actual receivables. (Program level Issue)

AR & BL Issue 5: We need to improve the collection rate and enforcement involved with the
various invoice types. There is not currently staff time to perform collections activities. (Program
level Issue)

AR & BL Issue 6: We need to enhance the education of and outreach to locally operating
businesses regarding the city’s business license and surcharge program to increase compliance and
associated revenues. (Program level Issue)

AR & BL Issue 9: The city only offers on-line payment options for recreation, (limited) building
permits, utility bills, and parking citations. (iReceivables will address on-line payments for invoices with the
exception of Loans and Alarms.) (Program level Issue)

                                  Admin Support & City Clerk- Program Level Issues

none

                                              Treasury- Program Level Issues

Treasury Issue 3: Multiple reconciliations of banking transactions have to be performed daily.
With the limited number of staff in Treasury, this becomes a major obstacle at times. (Program
level solution)



13. Analysis of LOB Level Major Issues

- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                      LOB 4--11
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014

Issue 1: Introduction of a business license surcharge that cannot be processed
through the remittance processor has added significantly to our workload.

Background: Introduction of a business license surcharge for Transportation was done without
adding any resources in Customer Service. It was not projected to cause significant problems at
the time of adoption.

Since then, it was discovered it negatively affected the Customer Service workload in a number of
ways:
        a. The basic business license application fee payment had been set up to be transferred to
the remittance processor, an automated payment system. With introduction of a surcharge tied to
the license, it was no longer able to be automated as a process.

       b. The surcharge can not be automated through the remittance processor, so it effectively
doubled the number of receipts requiring processing as of 2007.

       c. Since 2006, the city has increased its push to get eligible businesses registered and to
recover the revenue from their licensing. The program was so successful they hired a full time
employee to continue with it. This also added to the existing workload of receipting.

        d. In the 2006-2007 budget process, customer service was budgeted to be cut .5 FTE of
staff based on expected efficiencies from the remittance processor for parking citations and
implementation of the parking permit module. Instead of decreasing, the workload has increased
significantly.

Solution 1: Do not cut CSR staff; this will offset part of the increase

Solution 2: Identify how to automate the business license & license surcharge cash handling
process and implement it as a high priority

Solution 3: Enable web payments for this program, and provide incentives for customers to
process renewals and pay both the renewal and surcharge through the web site.

Solution 4: Convert the two limited-term employees handling the program to full time city
employees until a better solution can be found.

Discussion: The only immediate relief will be provided by solution 1; the other solutions are
longer term.
Solution 2 is likely to save a great deal of effort in the near term, but Solution 3 using web based
payments would most likely provide the best long-term solution if it were able to be completed
within about two years.
Solution 4 would be best (in conjunction with Solution 1) if it is not likely we will automate the
process quickly. Their expertise and relatively low cost is a good interim solution that we will lose if
we do not convert them at to full time after one year. If the process becomes less manual and
improves within the next few years as anticipated we can cross train one or both of them into
other areas that need help.

Recommendation: We believe multiple solutions are required.

a. Immediately apply Solution 1 & 4 and do not cut the staff; this will at least keep customer
services from creating a backlog again over the next two years.
- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                             LOB 4--12
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014


b. IT should evaluate Solution 2 & 3, and recommend which would be the best value and be able
to be implemented quickly.


Issue 2: How do we maintain our high customer service ratings in the Support Services
Survey?

Background: This is the second year we have included Customer Service in the internal support
services survey as a distinct organization. 72 internal customers took the survey, compared to 125
last time.

Results: We have met or exceeded the target of 3.0 on a scale of 4 for the last three surveys.

                                   Area           2000   2001   2002   2003/4   2005/6   2007/8   2009      Change
Treasury Team                                     2.93 2.69 2.74       2.83     3.04     3.24      3.1      -4.9%
                                   Quality        2.9 2.8 2.8           2.9      3.1      3.2      3.1      -5.1%
                                   Timeliness     2.8 2.7 2.7           2.8      3.0      3.2      3.1      -5.1%
                                   Customer                                                        3.1
                                                  3.0    2.7    2.8     2.8      3.0      3.3               -4.6%
                                   Focus
                                   Satisfaction   2.9    2.7    2.7     2.9      3.1      3.3      3.1      -5.4%

Treasury/Cash Mgt
                                   Quality        3.0    2.7    2.7     2.9      3.2      3.3      3.1       -5.6
                                   Time           2.9    2.6    2.7     2.8      3.2      3.4      3.2       -5.7
                                   Focus          3.1    2.5    2.8     2.8      3.1      3.4      3.1       -6.3
                                   Satisfaction   2.9    2.6    2.7     2.9      3.2      3.5      3.2       -8.0
Accts Receivable
                                   Quality        2.9    2.8    2.8     2.9      2.9      3.2      3.1       -5.4
                                   Time           2.8    2.8    2.7     2.7      2.9      3.1      3.1       -3.7
                                   Focus          3.0    2.8    2.8     2.8      2.9      3.2      3.0       -3.1
                                   Satisfaction   2.9    2.8    2.8     2.9      2.9      3.2      3.1       -2.9
Customer Service
                                   Quality        NA      NA     NA     NA       3.1      3.2      3.1       -4.5
                                   Time           NA      NA     NA     NA       3.1      3.3      3.2       -1.1
                                   Focus          NA      NA     NA     NA       3.0      3.2      3.1       -6.3
                                   Satisfaction   NA      NA     NA     NA       3.1      3.3      3.1       -5.4
City Clerk
                                   Quality        NA      NA     NA     NA       NA       3.1      3.0       -4.3
                                   Time           NA      NA     NA     NA       NA       3.1      3.1       -5.9
                                   Focus          NA      NA     NA     NA       NA       3.3      3.0       -4.3
                                   Satisfaction   NA      NA     NA     NA       NA       3.2      3.0       -5.0


Discussion: Customer comments emphasized the friendly, helpful nature of our work, with the
only negative comment focusing on how quickly we respond with a second cashier who is visible to
the customers when a line has formed with the primary one.
- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                         LOB 4--13
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014


We need to continuously balance our level of friendly customer service with how efficiently we are
completing the transactions with each one; a friendly 5 minute transaction with one customer
means another has to wait five minutes. We need to identify how long we are taking to service the
customer effectively as well as how satisfied they are with the service.

Recommendations:
Beginning in 2008, we focus on individual training & skills.
- Track individual time with customers during a sample period to see if we can improve speed
while maintaining customer satisfaction.
- Identify employees who are successful while maintaining short contact time and learn from them.
- Manage error rate to stay low as a group and improve it further as individuals.
(2009 update: This program has been successful)


14. Future Issues
Items we project will be problems in the future, but for which we currently are not planning.
Reduced staffing for same work to be done (Automation & efficiency opportunity)

15. Attachments
Program A: Customer Service                                                                      pg 1a-1
Program B: Accounts Receivable and Business Licenses                                            pg 1b-1
Program C: Administrative Support & City Clerk                                                  pg 1c-1
Program D: Treasury Management Services                                                         pg 1d-1




- FMS LOB 4 Treasury 8-3-10.doc08/12/10                                                          LOB 4--14
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

                                                     Customer Services
                         (LOB 4: Treasury & Cash Management Line of Business)
                                                     Supervisor: Connie Grant


Table of Contents

    1. Purpose ......................................................................................................................... 2
    2. Goals ............................................................................................................................. 2
    3. Major Services................................................................................................................ 2
    4. Organization & Staff........................................................................................................ 2
    5. Major Processes.............................................................................................................. 2
    6. Key Customers ............................................................................................................... 3
    7. Financial Summary Data.................................................................................................. 3
    8. Key Outcomes and Performance Measures........................................................................ 4
    9. Sample Cost to Provide Services ...................................................................................... 5
    10. Recent Savings or Progress in efficiency, effectiveness, cost, or sustainability .................... 5
    11. Continuity of Operations ................................................................................................ 6
    12. Major Issues to address in the next two to three years..................................................... 6
    13. Analysis of Major Issues ................................................................................................ 7
    14. Future Issues ..............................................................................................................13
    15. Process Descriptions and Flow Charts ............................................................................14
        Tab    a - Receipt of Payments ...........................................................................................15
        Tab    b – Petty Cash Transactions .....................................................................................20
        Tab    c – Suspense Payments............................................................................................23
        Tab    d – Parking Permit Sales ..........................................................................................25
        Tab    e - Parking Customer Service....................................................................................29
        Tab    f - Parking Citation Appeals ......................................................................................34
        Tab    g - Parking Citation Journals and Reconciliation..........................................................37
        Tab    h - Bankruptcy Processing ........................................................................................40
        Tab    i - Reception & General Customer Service..................................................................42
        Tab    j – Robbery Preparedness ........................................................................................45




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                                                LOB 4a--1
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

1. Purpose (why we exist)
We are the city’s representatives that many citizens see first; as such, it is our responsibility to be
professional, courteous and friendly. Our interaction forms their first and most lasting impression
of the city and how it operates. We accept and process cash transactions; provide assistance for all
matters related to utility payments and parking; and answer any general questions. We work to be
efficient but are sensitive to our customers’ needs.

2. Goals
In the next 2-6 years, our top goals are to:
    a. Reduce the amount of time needed to handle parking permits significantly by 2010
    b. Increase the quantity of electronic payments that do not require our intervention
            2009 update: Daily Class manual receipting was replaced with an automated process in
            June, 2009. This process eliminated the processing of manual receipts by an average of
            550 per month.
      c. Decrease walk-in customers at least 25% by 2011 – enable them to do their business by
         phone or internet
            2009 update: Parking web payments was implemented September, 2009. Total web
            payments received for 3 ½ months was 1,091.
      d. Reduce manual journal process and refunds of overpayment by creating a parking system
         interface to Oracle financials
         2009 update: Manual journal process was replaced with a daily interface between the
            parking system and Oracle in May, 2009. The process now takes about 15 to 20 minutes
            per day (6 hours per month) vs 8-12 hours once per month. The new process didn’t
            necessarily gain much in efficiency. The new process did, however, gain in accountability,
            quickly identifying problems, and reporting.

3. Major Services
      Receipt of Payments to the City [except CLASS (recreation) and Tidemark (Development)]
      Customer Service for Parking and Utility Payments
      Parking Permit Sales
      Parking Services Support
      Reception and General Customer Service

4. Organization & Staff
Position                                             FTE    (management)
Finance Supervisor                                    .5      (.5)
Customer Service Representative (CSR)                3.0*
Total FTEs                                           3.5      (.5)
Management ratio (City goal is 1:7 or greater)                1:7

*Effective January 1, 2009, CSR staff was reduced from 4.0 to 3.5
 Effective January 1, 2010, CSR staff was reduced from 3.5 to 3.0 and supervisor reduced from 1.0 to .5

5. Major Processes
See tabs for details about each process and a flow chart
Process                                                                     Location          Workload**
Receipt of Payments                                                             Tab a                 44%
Parking Permit Sales                                                            Tab d                 10%
Parking Customer Service                                                        Tab e                 8%
Parking Citation Appeals                                                        Tab f                 9%

LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                               LOB 4a--2
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

Parking Citation Journals and Reconciliation*                                              Tab g                   2%
Bankruptcy Processing*                                                                     Tab h                    1%
Reception & General Customer Service                                                       Tab i                    6%
Robbery Preparedness                                                                       Tab j                    0%
Reporting and Analysis*                                                                    None                   10%
Other miscellaneous /special projects                                                      None                    10%
Total                                                                                                             100%
*Indicates task only done by the finance supervisor
**Workload percent calculated based on 1st and 3rd QTR 2009 outcome report / recalculated biannually


6. Key Customers
Our customers come from two sources: External to the city and internal city organizations. By
work volume measures, the majority of our customers belong to the organizations below:

    Customer/Fund                                                     Receipts + time1                 Remarks
    External Customers                                                       %
     Walk-in public                                                         30%            Increases to 70% during peak times
     Call-in public                                                         20%
     Mail-in public                                                         50%
    Total                                                                  100%
                                                     Based on
                                                     Payment2        Receipts + time3
    Internal Customers                                                      %
     Parking Services Fund                             38%                 59%
     Water/Utility Fund                                19%                 10%             Payments & SCIP program
     Parks & Recreation                                 7%                 2%
     Trans Spec Rev Fund                                9%                  7%             Business license surcharge
                                                                                           Alarms4, business license
    General Fund                                       17%                 13%             renewal
                                                                                           Various departments including
                                                                                           building, fire, transportation,
                                                                                           equipment services, cemetery,
     Various/Other                                     10%                  9%             investigative, drug enforcement
    Total                                              100%                100%
1
  Percentages are based on the average of estimates from CSR staff and mail spreadsheet 1st QTR 2009
2
  Percentages based on Hansen cashier payment lookup report and Oracle class entries 2009
3
  Percentages are based on volume of receipts processed plus customer service time, Outcomes 2009
4
  Most alarms payments are received through the remittance processor


7. Financial Summary Data
Based on 2009 full year actual expenditures
         Program or Activity                         % of time   Cost to provide                        Notes
                                                     or budget      service
Total Budget                                          100%          $313,104
                                                                                   Includes receipting, appeals, customer
Parking Services                                       59%          $184,733       inquiries, vehicle ownership changes, collection
                                                                                   agency disputes
                                                                                   Includes receipting, SCIP program, general
Utilities Services                                     10%          $31,310
                                                                                   customer inquiries regarding utility charges


LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                                           LOB 4a--3
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

Business Licensing & Surcharge                       9%           $28,179           Includes receipting, general customer inquiries

General Fund                                         11%          $34,441           Receipting
Parks and Recreation                                 2%           $6,262            Receipting
                                                                                    Receipting for various departments including
                                                                                    building, fire, transportation, equipment
Various / Other                                      9%           $28,179
                                                                                    services, cemetery, investigative, drug
                                                                                    enforcement



8. Key Outcomes and Performance Measures

Annual Performance Measures for Customer Service
Outcomes and
Performance Measures                        Goal      2007      2008         2009        trend     Change & Remarks

Outcome 1: Our customers are satisfied
Rating on biannual internal                                     Due in
                                           ≥ 3.0      3.2       2009         3.1          -3%      Meets standard
customer survey (4 pt scale)
Rating on external
                                          90+%       97.7%     97.7%        97.2%         -1%
customer cards (100% scale)
Total number of customer                                                                           Goal is to increase number of
                                           ≥ 200      193        61          332                   customer comment cards
cards received
Outcome 2: We provide timely and accurate service
Citations booked annually                Workload     43,200   34,728       32,701        -6%      In 2008, down 1 FTE most of year
                                                                                                   Per Power Park Flex citations issued
Citations booked per day                 Workload     164       131          124          -6%
                                                                                                   statistics
Number of citation appeals                                                                         Increase in ‘08 most likely due to
                                         Workload    1,632     1,884        1,371         -27%     increase in fines
processed annually
Successful appeals per                                                                             Represents appeals administratively
                                         Workload     111       115          64           -45%     dismissed by Parking Services
month
Percent of citations
                                         ≤ 6.0%      3.8%      5.4%         4.28%        -1.2%
appealed
Percent of appeals
                                          ≥ 75%       82%      73%          56%           -23%
successful
Percent processed within
                                           90+%       95%      95%          95%           Stable
24 hours
Outcome 3: We process financial transactions effectively
                                                                                                   In May 2009, Class receipting
Total annual transactions
                                         Workload    81,600    72,696       64,712        -11%     automated; in Sept 2009 parking
processed manually                                                                                 web payments implemented
Transactions processed
                                         Workload    6,800     6,058        5,393         -11%
manually per month
                                                                                                   Calculated monthly; staffing more
                                                                                                   stable in 2008; effective January
Transactions processed                                                                             2009, CSR staff reduced from 4.0 to
                                           70 - 80     80        72          73           +1%
                                                                                                   3.5; effective January 2010, CSR
per employee FTE (daily)
                                                                                                   staff reduced from 3.5 to 3.0 and
                                                                                                   supervisor reduced from 1.0 to .5
Percent of transactions
                                          ≤ 85%       90%      88%          85%          -3.5%     Calculated monthly
processed manually
Same day error rate                                                                                Very low error rate, well below
                                          < 2.0%     1.4%      .28%         .42%         + 50%
                                                                                                   standard
(Hansen)
Reverse payment error                                New in                                        Very low error rate, well below
                                          < 1.0%      2008     .04%         .07%         +.03%
                                                                                                   standard
rate (Oracle)
Average cash variance per                                                                          Calculated monthly, well below
                                          ≤ $5.00     $.99      $.18         $.18         Stable
                                                                                                   standard
month per FTE

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Outcome 4: The Parking Citation Program revenue is being collected appropriately
                                                                                             Includes estimated 50 @25 each
Booked revenue                           Workload    442,884   656,554   622,405   -5%
                                                                                             issued by VPD

Escalations assessed                     Workload    291,294   215,359   192,197   -11%

                                                                                             Includes escalation payments;
Citation payments
                                         Workload    360,735   485,775   474,486   -3%       excludes collection agency and
received                                                                                     District Court payments
                                                                                             Includes some citations written in
Citation recovery rate                    > 50%       49%       56%       58%      +2%
                                                                                             the prior year
                                                                New
$ assigned to collection                                                                     Includes some citations written in
                                           Reduce    321,500   agency    250,926   -12%
agency                                                                                       the prior year
                                                                2008
                                                      44%       New
% assigned to collection                                                                     Includes some citations written in
                                           Reduce              agency     31%      -13%
agency                                                                                       the prior year
                                                                2008
$ assigned to District
                                         Workload    10,546    21,480    20,577    -4%
Court
% assigned to District
                                         Workload      2%        3%        3%      Stable
Court
District Court recovery rate               > 50%      51%       58%       67%      +9%




9. Sample Cost to Provide Services                                                   2006 2007 2008 2009
- Cost to process a walk-in payment to the City:                                      5.16     5.36       6.63      5.90
(Varies with complexity - approximately 65,000 payments per year)
How it is calculated: Staff time for complete process (i.e. open mail,
log payment type, receipt, end of day balance process, deposit ~ fully loaded)

- Cost to process a mail-in payment to the City:                                      0.22     0.22       0.22      0.22
(Using the automated remittance processor - approximately 10,200
payments per year for parking and A/R)
How it is calculated: Contract is $.22 per billed item


10. Recent Savings or Progress in efficiency, effectiveness, cost, or sustainability
   1) Action: Rebuilt reception counter in Esther Short Building to accommodate new equipment
      and allow credit card and debit card transactions. Completed in September 2006.
      Effect: Improved professional appearance, working environment, and ergonomics for staff
      as well as adding flexible work space for future needs
      Result: Improved service to customers now that we can take credit and debit cards. Use
      of credit and debit cards provides immediate validation reducing NSF/closed account issues
      experienced with payments by check. Changes improved security & usability of cash
      drawers and workspace for staff.

      2) Action: Initiated use of automated remittance processor for mail-in parking citation
         payments as of July 2007, focused on reducing the number of manual payments processed.
         Effect: Processes 10% of parking receipts or about 350 transactions per month.
         Result: Savings of approximately 1.5 hours of staff time each day / 33 hours each month.
            (source: Remittance Processor statistics, Aug->Dec 2007)


      3) Action: Collection agency parking citation payments are imported to T2 system effective
         January 2007.


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            Effect: The automated import replaced a manual receipt process, currently saving about
            310 payment transactions per month.
            Result: Savings of approximately 1.3 hours or 29 hours per month
            (source: Imported payment statistics Jan->Dec 2007)


      4) Action: Automatic Call Distribution (ACD) phone system installed March 2009
         Effect: Phone calls received via the Customer Service Payment and Parking Information
         line are now distributed to staff based upon availability; customers can be on hold until
         assistance is provided, or can leave a message. Calls in the queue are monitored. Reports
         are available to track call volume and trends. The prior system was unable to track calls
         and, if staff were unable to immediately provide assistance, the customer had to leave a
         message. The process was very ineffective and inefficient.
         Result: Improved customer service, improved efficiency, ability to track call volume and
         trends


11. Continuity of Operations
The city must be able to maintain essential operations during a disaster.

a. What major functions are essential for us to maintain or reestablish in case of a
disaster?
            - Payment receipting process
            - Petty cash transactions

b. What personnel or positions are essential to emergency operations?
            - Finance Supervisor
            - 2 Customer Service Representatives

c. Where do I find our updated emergency procedures?
The Customer Service copy of the COOP is located at I: Finance, Emergency-Coop, Annex P


12. Major Issues to address in the next two to three years
CS Issue 1: How do we maintain a low error ratio in receipting payments? (Program level Issue)

CS Issue 2: Because a number of the payment options and T2 parking system features have not
been implemented, the efficiencies possible for Customer Service are not being realized. In fact,
workload has increased as a result of implementing the features that were done. (Department
level Issue)

CS Issue 3: Introduction of a business license surcharge fee at the beginning of 2007 that cannot
be processed through the remittance processor has added significantly to the Customer Service
workload without adding new resources. (Department level Issue)

CS Issue 4: How do we maintain the high level of customer service we have attained with our
internal and external customers? (Program level Issue)




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13. Analysis of Major Issues
Issue 1: How do we maintain a low error ratio in receipting payments?

Discussion: Due to the high volume of manual receipting, errors occur. Monitoring these errors
and corrections (adjustments) and ensuring they occur within reasonable limitations is key to
ensure staff are proficient, accurate, efficient, and daily production goals are achieved.

Two measures of error rate:

1) Same day voids: Errors identified and corrected the same day by the employee who made
   them; processed in the Hansen system. Lesser of the two error problems, a small percentage is
   acceptable.

2) Reversals or negative receipt of payments: Processed after the day of receipt, may be done by
   employee who made error or by others, all, of which, are coordinated and authorized by the
   supervisor. This is done in the Oracle system, and is a more significant problem because it
   takes more effort to identify, correct and complete.

Solution 1: Do not set performance goals but track our error rates this year and consider setting
goals next year.

Solution 2: Add performance goals related to error rates to staff work plans:
          (1) New 2008 goal of <2% adjustment tolerance as a standard/expectation
          (2) New 2008 goal of <1% reversal/negative receipt tolerance standard/expectation

Solution 3: Coordinate with other cash handling locations in the city and recommend this
standard be adopted in 2008 as an expectation.

Recommendation: Solutions 2 & 3. Beginning in 2008, we will adopt this as a standard for FMS
Treasury Customer Service. We will continue to monitor employee adjustments and
reversals/negative receipts on a monthly basis, communicating employees’ individual performance
against the average for our organization. We will hold staff accountable to the established
tolerances, and take necessary training and corrective steps should these transactions exceed
expectations.

Issue 2: Because a number of the payment options and T2 parking system features
have not been implemented, the efficiencies possible for Customer Service are not
being realized. In fact, workload has increased as a result of implementing the
features that were done.

Background: The T2 PowerParkFlex system (Referred to as T2 system after this) consists of:
   a) A parking citation tracking system: Allows electronic citations to be entered by
      enforcement staff, and the results integrated (either automatically or manually) with T2.
      (Implemented January 2007). This process duplicates the process performed of the prior
      parking system, MPE3, but T2 has the ability to store more data.
   b) A permit module: Allows efficient electronic tracking of parking permits and production of
      static “cling” permits that can be issued with an open ended term rather than monthly or
      bi-monthly.
   c) A web based customer access and payments module allowing customer viewing
      access to T2 by citation and license plate and making credit card payments.

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Discussion: The T2 parking citation conversion was completed in January, 2007. After data
cleansing occurred, all remaining convertable data was converted. All data including data that was
not converted is presently stored in an access file for reference. The new system provides an
easier way to access information, more fields to store and obtain information, the ability to re-print
citations and notices, an improvement in tracking revenue and receivables, the ability to track
appeals, the ability to add notes and attach documents, and a variety of reports and queries not
previously attainable.

The T2 system is a highly capable tracking system that provides a way to track far more data than
our original citation tracking system; while this is useful for reporting and analysis, it requires
staffing resources to ensure all data is entered. Notes and attached documents are (manually)
added to citations by Customer Service staff to document actions that were taken. This reduces
paperwork that was previously tracked manually. The savings is realized when research is
necessary.

Neither the permit module nor the web based customer access and payment modules have been
implemented. Presently, all permit sales are processed and tracked manually. In addition, most
sales occur in person (56%) with a hang-tag permit issued for each sale. The permit typically
covers a 1->2 month period. Most customers return in person monthly or bi-monthly to purchase
a new permit. Some customers are invoiced or set up on the automated electronic payment
method, permits are issued to these customers by mail. Employees are set up on payroll
deduction. Residential and visitor permits are issued to customers meeting qualifying conditions.

Analysis: While T2 has the ability to interface with Oracle, it currently is not (Update May 2009:
Interface from T2 to Oracle financials fully operational, all daily parking transactions are posted and daily
reconciliation is now performed). Interfacing would both remove the need for manual monthly
journals to record revenue and receivable and add the capability for automated refunds of
overpayments. These actions currently require an average of 40 hours per month to complete.

The average monthly permit activity is as follows (based on previous 12 month data):
      278    Lot sales
      235    On-street permits
       47    Residential / visitor permits
       90    Employee permits distributed
      650* Total
*22% are invoiced or ACH

The following processes should be planned for near future implementation:
   •    Web based customer access and payments (Update: Web access and payments in effect
            September 2009)
       •    The permit module including web based customer access
       •    Interactive Voice Responsive (IVR) phone payment system


A. WEB BASED CUSTOMER ACCESS AND PAYMENTS / PARKING CITATIONS

Once implemented, the web based customer access and payments will result in the following
improved processes:

   •        Fewer payments to manually receipt by mail, phone, and in person
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   •        Fewer phone calls and walk in customer inquiries

a. Web payments vs. staff receipting
Estimated savings: Experience with other jurisdictions indicate web based payments can be
expected to reach up to 50% of all payments within the first two years. Experience with COV
utility web based payments average approximately 5% of total monthly payments. We currently
handle an average 2,650 parking citation transactions per month and would expect a savings of
730 transactions per month representing 27.5%.

b. Customer access vs. staff assistance
Estimated savings: Customer ability to “self serve” and answer many questions from the web
interface can reasonably be expected to reduce customer assistance questions 10% to
15%, since it both takes longer for the public to be comfortable with this system and because
older and non-native customers tend to prefer live interactions.

Update 2009: Parking citation web payments was implemented in September, 2009. The
average payments received per month was 312, approximately 43% of the estimated 730
transactions per month.


B. PERMIT MODULE

Once implemented, the permit module will result in the following improved processes:
       • Replace hang tag permit with removable decal resulting in substantial savings in stock
          purchases for Parking Services
       • Decal will be logged in T2 and have an open ended term so long as payment is received
       • Replace manual tracking with data base tracking
       • Renewals will be paid via ACH rather than in person (for the majority of payments)
       • Bar coding on decal will inform enforcement officers of monthly payment and cite those
          not paid

a. Open ended term permit decal vs. monthly/bi-monthly hang tag
Estimated savings: The open ended term decal will replace the monthly/bi-monthly paper
permit, and represent a 75% savings in time for a year of parking permit sales. Currently, 650
permits are processed each month and if 80% of those who purchase a monthly/bi-monthly permit
eventually purchase a whole year of parking, then about 520 permits will save 75% of their effort,
or we can expect to experience a reduction of 390 permits sold per month.

b. Renewal payments via web based or ACH vs manual payments
Estimated savings: An estimated 250 customers currently pay manually per month. Based on
the experience of other jurisdictions, over time we can expect 80% of the customers to eventually
pay using the web or ACH instead of manual payments. This is a reduction of 200 transactions
per month.

c. Data base tracking
Estimated savings: There will be savings from being able to track customers and payments via a
database instead of the manual methods currently employed. We estimate we could save up to
40% of the inquiry search time.



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Permit module activation will result in some additional time requirements for enforcement to verify
payment; however, the overall benefit is greater than the amount of additional time this will take.

C. IVR SYSTEM:
The city is already using IVR for utility payments and implementation for Customer Service would
make sense. It is currently not programmed. We can expect a level of use that is comparable to
utility customer usage of 8%. 2009 update: The phone tree (ACD) system has reduced backlog to the
point it is being handled by the existing staff in real time. The expenditure needed for a new IVR
installation – especially with the complicated installation it would be for us – does not provide adequate
pay back on the investment at this time.

Solution 1: Continue with manual system and do not add new resources to offset additional
work; this will require prioritization of existing work and will require slower response to mailed
inquiries, longer response times for abnormalities that occur with parking citations and permits and
a less convenient system for customers. It will also continue to leave the staff in a situation that
they can not keep up with the current work on a daily basis.

Solution 2: Make implementation of improvements a top priority for FMS and IT.
Make web based parking customer access, payments and permit module top priorities for 2008.
- First priority is web based customer access and payments to be operational by 2nd QTR 2008.
         2009 update: Web access and payments in effect September 2009
- Second priority is the permit module and web based customer access operational by 3rd
         QTR 2008.
         2009 update: This is expected to go live 3rd QTR 2010

Solution 3: Continue with manual system but add staffing to offset additional work required by
the manual systems. This easily represents at least .5 FTE Customer Service Representatives.

Recommendation: Solution 2. With the assistance of FMS and IT, this priority can be
established and will save not only the need to add additional personnel, but may allow Customer
Service to keep current on work with reasonable response time. The fiscal savings would be
apparent before the end of the year, as would the improvement in customer service for this area.


Issue 3: Introduction of a business license surcharge fee at the beginning of 2007 that
cannot be processed through the remittance processor has added significantly to the
Customer Service workload without adding new resources.

Background: Introduction of a business license surcharge for Transportation was done without
adding any resources in Customer Service. It was not projected to cause significant problems at
the time of adoption.

Since then, it was discovered it negatively affected the Customer Service workload in a number of
ways:
        a. The basic business license renewal fee payment had been set up to be transferred to the
remittance processor, an automated payment system. With introduction of a surcharge tied to the
license, it was no longer able to be automated as a process.

        b. The surcharge cannot be automated through the remittance processor, so it effectively
doubled the number of receipts requiring processing as of 2007 (one transaction for the
application or renewal fee, one transaction for the surcharge).
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        c. Prior to the surcharge, applications were completed at Development Review Services.
Since the adoption of the surcharge, new business license applicants are referred to Customer
Service to file their applications and associated paperwork and oftentimes have questions
regarding the process. In addition, payments at DRS were receipted directly to the business
license revenue account. The receipting process has changed in which payment is receipted to a
business license suspense account (in Hansen); once a customer account is established the funds
are moved in order to record properly on the customer account (in Oracle). This process results in
four separate receipts needing to be generated.

       d. Since 2006, the city has increased its push to get eligible businesses registered and to
recover the revenue from their licensing. The program was so successful they hired a full time
employee to continue with it. This also added to the existing workload of receipting.

        e. In the 2006-2007 budget process, customer service was budgeted to be cut .5 FTE of
staff based on expected efficiencies from the remittance processor for parking citations and
implementation of the parking permit module. Instead of decreasing, the workload has increased
significantly.

Solution 1: Cancel the slated reduction in CSR staff.

Solution 2: Identify how to automate the business license & license surcharge cash handling
process and implement it as a high priority. Evaluate on-line payment method and iReceivable
Oracle module.

Solution 3: Enable web payments for this program, and provide incentives for customers to
process renewals and pay both the renewal and surcharge through the web site.


Discussion: All three solutions are required for a complete answer; in the near term, Solution 1 is
essential. Solution 2 and 3 are high priority, but secondary to the Parking Services automation
needs.

The only immediate relief will be provided by Solution 1; the other solutions are longer term.
Solution 2 is likely to save a great deal of effort in the near term; however, the workload will shift
from Customer Service to A/R staff and will result in no net benefit. Solution 3 using web based
payments would most likely provide the best long-term solution.


Recommendations:
a. Immediately apply Solution 1; this will keep customer service from creating a backlog which
chronically occurred throughout 2007.
2009 update: Reduction in CSR staff in effect 1/01/2009 to 3.5
2010 update:            Reduction in CSR staff in effect 1/01/2010 to 3.0 and supervisor from 1.0
to .5

b. IT & FMS should evaluate Solution 2 & 3, and recommend which would be the best value and
be able to be implemented.



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Issue 4: How do we maintain the high level of customer service we have attained with
our internal and external customers?

Internal Customers

Background: This is the third year (2009) in which we have included Customer Service as part of
the internal support services survey as a distinct organization. The organization was described as
having the following functions:

Customer and Cashier Services
Provides cashiering services for parking, utilities, payments received for invoiced items, as well as
convenience payments for many other city services. Processes cash deposits, petty cash
reimbursements, and is the initial customer service interface between FMS and the public.

135 internal customers took the survey, and of them 72 completed the FMS portion of the survey,
from the following service areas and roles. This is a net decrease from last year, but it is also the
first year participants could “opt out” of portions of the survey.

Results: We have exceeded the target of 3.0 on a 5.0 scale in all four areas.


                                                     2005   2007       2009            Change
FMS Overall                                          3.0    3.2         3.1             -3.8%

Treasury Team                                        3.0    3.2         3.1             -4.9%
                                   Quality           3.1    3.2         3.1             -5.1%
                                   Timeliness        3.0    3.2         3.1             -5.1%
                                   Customer
                                                     3.0    3.3         3.0             -4.6%
                                   Focus
                                   Satisfaction      3.1    3.3         3.1             -5.4%

Customer Service Quality                             3.1    3.2         3.1             -4.5%
                                   Time              3.1    3.3         3.2             -1.1%
                                   Customer
                                                     3.0    3.2         3.1             -6.3%
                                   Focus
                                   Satisfaction      3.1    3.3         3.1             -5.4%

Discussion: Customer comments emphasized the friendly, helpful nature of our work, with the
only negative comment focusing on how quickly we respond with a second cashier who is visible to
the customers when a line has formed with the primary one.

We need to continuously balance our level of friendly customer service with how efficiently we are
completing the transactions with each one; a friendly 5 minute transaction with one customer
means another has to wait five minutes. We need to identify how long we are taking to service the
customer effectively as well as how satisfied they are with the service.



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External Customers

Background: External customer comment cards have been distributed to customers since 3rd
quarter 2005. Customers are requested to provide feedback in the following areas:

            Friendliness of staff
            Speed of service
            Accuracy
            Information provided

Rating options are from “Poor” to “Excellent” on a scale of 1 to 6.

Results: We             have exceeded the target of achieving 90% or better excellent customer service:
      2005              92% excellent
      2006              98% excellent
      2007              98% excellent
      2008              98% excellent
      2009              97% excellent

Discussion: Customer comments emphasized a high level of quality and professional customer
service. Staff members have consistently exceeded the established goal in the past 4 years.

Solution 1: Continue with business as we currently do, and work to maintain the existing
customer service levels as best possible with current resources.

Solution 2: Work to improve customer service by improving CSR skills and speed through classes
and training. This will require taking personnel from their positions to conduct training, and that
may negatively impact customer perceptions of satisfaction.

Solution 3: Add new staff to keep lines to a minimum.

Recommendation: Solution 1. No additional funds are available for new training so we will
continue to look for free training and webinars.

- We will consider tracking individual time with customers during a sample period to see if we can
improve speed while maintaining customer satisfaction.
- We will identify formal training that may be of use and see if it can be scheduled with minimum
impact. If so, we will seek funding for training.
- We will also identify employees who are successful at receiving good customer comments while
maintaining short contact time, and learn from them.



14. Future Issues
- Evaluation of separating some Parking Services customer support from FMS and putting them
under Parking Services, or outsourcing the function.




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15. Process Descriptions and Flow Charts

Tab     a - Receipt of Payments
Tab     b – Petty Cash Transactions
Tab     c – Suspense Payments
Tab     d – Parking Permit Sales
Tab     e - Parking Customer Service
Tab     f – Parking Citation Appeals
Tab     g - Parking Citation Journals and Reconciliation
Tab     h - Bankruptcy Processing
Tab     i - Reception & General Customer Service
Tab     j – Robbery Preparedness




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Tab a - Receipt of Payments


TASK                               RESPONSIBILITY         STANDARD PROCEDURE
Payment                            Customer Service       Receipt payment in accordance with Cash Handlers
Presented:                         Representative (CSR)   Manual to invoice, parking citation, utility account,
 Walk-In                                                  or as otherwise instructed
 Drop Box                                                 All payments in excess of $100,000 are treated as
 Phone                                                    “special deposits”
 Mail                                                     These payments are included with the same day
                                                          deposit / or personally deposited if armored car has
                                                          already arrived for the day
Balance                            CSR                    At close of business, complete balancing
                                                          procedures in accordance with Hansen VCIS
                                                          procedure manual to include running totals by
                                                          payment type:
                                                            check
                                                            cash
                                                            debit card
                                                            credit card
                                                          A separate total is run for all:
                                                            parking citation payments
                                                            utility payments
                                                          Compare totals with Hansen system totals
                                                          If totals agree, prepare bank deposit
                                                          If totals do not agree, identify discrepancies, and
                                                          make necessary payment corrections in Hansen,
                                                          then repeat the balancing process to ensure receipt
                                                          totals match Hansen totals
                                                          When totals, agree, prepare bank deposit
Forward Receipts                   CSR                    Transaction receipts are forwarded to appropriate
                                                          staff (in most cases, A/R), suspense receipts are
                                                          forwarded to Cash Management Supervisor (CMS)
                                                          including backup documentation, business license
                                                          suspense receipts are placed in the designated
                                                          receipt inbox, credit and debit card receipts are
                                                          given to CMS
                                                          New business license applications with payments
                                                          are receipted if the customer account is set up the
                                                          same day, otherwise payment is receipted to
                                                          business license suspense account with the payment
                                                          moved to the customer account when set up by A/R
Deposit                            CSR                    The following day, a designated CSR prepares the
                                                          total bank deposit
Balance Parking                                           The following day, a designated CSR runs a total of
                                                          all parking receipts by cashier, the parking payment
                                                          report from Hansen, and the parking payment
                                                          report from T2 (the parking citation tracking

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                                                     system)
                                                     Verify totals agree
                                                     Discrepancies are identified and reported to the
                                                     CMS
Electronic                         CMS               Credit and debit card transactions for Hansen
Payment                                              receipts are transmitted to the bank at the close of
Transmission                                         business each day by doing the following:
                                                       Sign on to PCCharge
                                                       Run reports: Credit Card Detail and Debit
                                                     Summary / totals for both are notated
                                                       EOD (end of day) is selected
                                                       Balance should match credit and debit totals,
                                                     select process (Treasury investigates offages)
                                                       “Settlement Accepted” indicates process is
                                                     complete
                                                       Run report: Daily Transaction Summary / total
                                                     settled should match the credit and debit
                                                       combined amount
                                                     All reports are printed at Treasury’s printer
Deposit                            Armored Car       Picks up bank deposit daily in accordance with
                                                     established schedule per contract
                                                     Delivers funds to the bank
Interface                          IT                Payment file is auto-imported from Hansen to
                                                     Oracle
                                                     Hansen to Oracle AR Interface Execution Report is
                                                     issued daily to CMS, Treasury, and A/R
                                                     Rejected payments are notated on the report
Interface Rejects                  CMS / Treasury    Investigates rejected payments from the interface
                                                     report and takes appropriate course of action to
                                                     correct (i.e. if incorrect invoice number, Customer
                                                     Service corrects; if no receipt is created, Treasury
                                                     corrects)
Payment                            Clark PUD         Receipts payments
Presented:                                           Creates 2 disks of payment details including checks
Remittance                                           received
Processor                                            Transmits payment file to COV
                                                     Prepares bank deposit for armored car pick up the
                                                     following day
Interface                          IT                Payment file is auto-imported to Oracle
                                                     Payment file is auto-imported to T2 (to update
                                                     parking citations)
                                                     Payment file is auto-imported to Hansen (to update
                                                     utility accounts)
Payment                            Courier           Picks up all processed work by Clark PUD
Documentation                                        Picks up alarm payments at Police Administrative
                                                     Office
                                                     Delivers payment stubs, disks, miscellaneous
                                                     documentation included with payments and alarm

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                                                           payments to Esther Short Building, Customer
                                                           Service
                                   CSR                     Pulls A/R, parking, and alarm payment stubs, 1
                                                           payment disk, any other documentation pertaining
                                                           to these payments, and alarm payments
                                   Courier                 Delivers remaining utility payment stubs, 1
                                                           payment disk, utility return mail, and utility
                                                           payment documentation to Brookside Office,
                                                           Utilities
Batch Processing                   Treasury                Identifies rejects and manually posts
                                                           Creates payment batch for all successfully
                                                           processed payments
                                                           Issues email to distribution list, Customer Service,
                                                           listing batch totals for invoices, alarm, and parking
                                                           payments, and payment rejects
Reconciliation                     CSR                     Runs a total of A/R payment stubs, parking, and
                                                           alarm stubs
                                                           Verifies A/R total matches batch totals from
                                                           Treasury
                                                           Posts payment batches
                                                           If a payment stub is missing, prints a receipt in lieu
                                                           of stub from batch
                                                           A/R and alarm payment stubs are forwarded to A/R
                                                           Parking payment stubs are forwarded to CMS / or
                                                           designee
Interface                          IT                      Payment batch is auto-created of alarm payments
                                                           Interface payment file is auto-processed to T2 and
                                                           Hansen of parking payments
                                                           Parking citations are updated with payments
                                                           Interface payment file is auto-processed to Oracle
                                                           of all payments
Alarm Payment                      A/R                     Verifies alarm payment batch is correct
Reconciliation                                             Identifies any offages and determines correct
                                                           course of action
                                                           Posts alarm batch
Parking Payment                    CMS / or designee       Verifies parking payment batch is correct by
Reconciliation                                             comparing totals with Hansen Transaction Report
                                                           run from T2
                                                           Identifies any offages and determines correct
                                                           course of action
Payment                            Alliance One (A1) (or   Sends email to Treasury and CMS the Statement
Presented:                         current collection      listing parking citation payments
Collection Agency                  agency)                 Creates a payment file and places on the FTP site
Parking Citation                                           for COV to capture
Payments                                                   Deposits funds to COV bank account
Payment Import                     IT                      Captures payment file
                                                           Auto-loaded in Hansen staging table
                                                           Payments are imported to Oracle and T2
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                                                       Sends electronic file to CMS with payment details
Verification /                     CMS                 Runs payment report in T2
Reconciliation                                         Compares payment totals on T2 report with Hansen
                                                       staging table report and A1 payment report, ensures
                                                       totals match
                                                       If discrepancy, IT or A1 is consulted
Payment                            DC                  Within the first week of each month, sends email to
Presented:                                             Treasury and CMS Remittance Summary Report
District Court                                         and Ledger Detail Report
(DC)                                                   On or about the 10th day of each month, sends
Parking Citation                                       payment via ACH
Payments
                                   Treasury            Receipt ACH payment to parking DC receivable
Reconciliation                     CMS                 Verifies Remittance Summary Report for parking
                                                       payments matches Ledger Detail Report (identified
                                                       in section 3 VAN revenue)
                                                       Identifies offages and works with DC to resolve
                                                       Posts or has designee post payments to citations in
                                                       T2
Payment                            Treasury            Receipt payment
Presented:
ACH
Payment                            External Customer   Enters parking citation payment on-line
Presented:                                             Prints receipt and receives receipt via email
Web
Payment Import                     IT                  Auto-loaded in Hansen staging table
                                                       Payments are imported to Oracle and T2
                                                       Exception report auto-emailed to Treasury and
                                                       CMS
Reconciliation                     Treasury            Verifies payments with funds received




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 Note: Receipt payments
 are received via walk-in,         Payments are
 drop box, telephone,                received                                                                                             Treated as
 mail, collection agency                                                                                                                   “Special
 import, Clark PUD. ACH                                        Is payment                                                               Deposit” and is
 payments are processed                                         more than                                Yes                            deposited in the
 by Treasury.                                                   $100,000?                                                                 bank on the
                                                                                                                                         same day it is
                                                                                                                                           received
                                                                   No
 Receipts are
                          Payments are
 processed in
                       receipted; 2 disks of
 accordance                                                                                   Is the                    Statement is
                        payment detail are                        Is the
 with Cash                                                                                  payment a                     received
                      created; transmits file                   payment
 Handlers                                            Yes                          No        collection         Yes     electronically
                      to COV, and prepares                    processed at
 Manual                                                                                      agency                   from collection
                         bank deposit for                      Clark PUD?
                                                                                             import?                       agency
                        amored car pickup.


                                                                                No                                    Payments are
                                                                                                                       imported to
                                                                                                                     Hansen staging,
                                                                                                                      Oracle and T2
                                                                                                                         systems
                                                              Receipts are
                                                              prepared and
                                                            recorded into the
                                                           Hansen Receipting                                         Electronic report
                                                                 system                                                  is sent to
                                                                                                                     customer service

    Documents are                                              Receipts are
  delivered by courier                                     balanced to Hansen
      and given to                                           system totals by
   Customer service                                         cash, check, debit                                        Payments are
    representatives                                          card, credit card.                                      reconciled with
                                                                                                                        Payment
                                                                                                                       Statement,
                                                                                                                     Hansen staging
                                                                                                                      and T2 report
                                                                                           Identify
                                                               Are they in
                                                                                  No   difference and
                                                                Balance?
                                                                                         re-balance
                                                                                                                      Any differences
                                                                                                                     are resolved with
                                                                                                                     collection agency
                                                                          Yes                                            and/or IT.


                                                                             Prepare bank
                                       IT interface                             deposit
    Treasury creates                  payment file is                                                                  Payments are
     payment batch                    auto-imported                                                                    deposited by
    for all successful               from Hansen to                                                                  collection agency
        processed                   Oracle, and T2 for
        payments                      parking. Utility
                                      payments are                        Armored car                                                    Receipts are
                                    auto-imported to                     delivers deposit                                                forwarded to
                                       Hansen and                          to the bank                                                     Accounts
                                    Oracle; All others                                                                                  Receivable staff
                                     are imported to
                                          Oracle.


                                                                                                                                            See AR
    Customer service                                                                                                                         Billing
                                       All unsuccessful
      reps reconcile                                                                                                                        Process
                                        payments are
     documents with                                                                                                                        Flowchart
                                         receipted by
    payment batches
                                            Treasury
     and posts them.



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Tab b – Petty Cash Transactions

TASK                                RESPONSIBILITY         STANDARD PROCEDURE
Petty Cash                          Petty Cash Custodian   PCC evaluates for guideline compliance in accordance
Transaction                         (PCC)                  with Petty Cash Policies and Procedures, including but
Presented:                                                 not limited to:
 Walk-In                                                     Total is less than $100.00 ~ if over $100.00,
                                                           reimbursement is requested through Accounts
                                                             Payable (A/P)
                                                             Original receipts attached
                                                             Receipts are dated within 30 days
                                                             Correct signatures (per signature authorization listing
                                                           compiled by Procurement)
                                                             Correct budget coding is provided
                                                           If all conditions are in compliance, cash is given to the
                                                           staff requesting reimbursement, all documentation is
                                                           maintained with the PCC
                                                           If not all conditions are in compliance:
                                                             The supervisor may override (such as the request
                                                           being over $100.00 or receipts are older
                                                             than 30 days)
                                                             The staff requesting reimbursement makes the
                                                           necessary corrections (such as budget
                                                             coding or obtaining the correct authorization
                                                           signature)
                                                             Once in compliance or override signature obtained, the
                                                           reimbursement is completed
                                                           The petty cash request and supporting documentation is
                                                           maintained with the PCC
PCC                                 PCC                    Weekly, the PCC requests reimbursement to replenish
Reimbursement                                              petty cash funds
                                                           A total is compiled of all petty cash transactions
                                                           The transactions with supporting documentation are
                                                           forwarded to FMS Administrative Support (Admin)
                                    Admin                  Reconciles totals
                                                           Makes adjustments if needed (i.e. tax)
                                                           Enters payment batch in Oracle
                                                           Payment batch is forwarded to A/P
                                    A/P                    Receives payment batch
                                                           Creates check payable to PCC
                                                           Delivers check to PCC
                                    PCC                    Receives check
                                                           Cashes check at financial institution in denominations
                                                           necessary to perform future petty cash transactions
Petty Cash                          PCC                    Performed weekly
Reconciliation                                             Petty Cash Reconciliation sheet is completed with the
                                                           following information:

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                                                      Cash count per denomination
                                                      Transactions processed but not submitted for
                                                     reimbursement
                                                      Transactions processed and submitted for
                                                     reimbursement
                                                      Uncashed checks
                                                     Total should agree with authorized fund balance
                                                     All discrepancies must be immediately reported to the
                                                     Cash Management Supervisor




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Tab c – Suspense Payments


TASK                          RESPONSIBILITY         STANDARD PROCEDURE
Payment                       Customer Service       Determines there is no outstanding invoice
Presented:                    Representative (CSR)   Determines there is no external charge code
 Walk-In                                             established
 Drop Box                                            Discusses with Cash Management Supervisor (CMS)
 Phone                                               whether suspense is appropriate
 Mail                                                If walk-in, obtains necessary backup documentation
                                                     including budget coding or staff contact if further
                                                     information is needed
                                                     Receipts payment to suspense
                                                     Receipt plus all backup documentation is placed in
                                                     CMS suspense in-box
Payment                       Treasury               Determines there is no outstanding invoice
Presented:                                           Determines there is no external charge code
 ACH                                                 established
                                                     Receipts payment to suspense
                                                     Forwards receipt to appropriate staff who will
                                                     determine the correct placement of funds (i.e. grant
                                                     accountant, Accounts Receivable (A/R))
                                                     Receipt, all backup documentation, and notation of
                                                     staff who’s determining correct placement of funds is
                                                     forwarded to CMS
                                                     Additional notation is made if Treasury will be
                                                     moving the funds
                                                       Once funds are moved, email or documentation is
                                                     forwarded to CMS
Journal Entry                 CMS                    Reviews suspense entries
                                                     Obtains budget coding if not provided (i.e. contacts
                                                     department or accountant managing the fund)
                                                     Evaluates budget coding to ensure it’s appropriate (i.e.
                                                     rare instance for expense as object)
                                                     Scans receipts and backup documentation
                                                     Enters journal
                                                     Attaches scanned receipts and backup documentation
                                                     to journal
Reconciliation                CMS                    Prints general ledger report for suspense
                                                     (001.000000.369901.0000.000000)
                                                     Identifies entries not cleared
                                                     Follows up with appropriate staff if budget coding has
                                                     been delayed or not provided
                                                     Moves all funds as quickly as possible and / or within
                                                     same GL period as receipt
                                                     Ensures all funds are cleared at year end



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Tab d – Parking Permit Sales

TASK                          RESPONSIBILITY         STANDARD PROCEDURE
Permit Sales                  Customer Service       There are 12 types of permits: Lot 1, 2, 5, 10, 18, On-
                              Representative (CSR)   Street, Media, Carpool, Residential, Visitor, Lot 7, and
                                                     Lot 20.

                                                     All sales are logged in the Permit Log which includes
                                                     the following information:
                                                      Sale Date / Issue Date
                                                      Permit #
                                                      Space # (if applicable)
                                                      Customer Name
                                                      Unit Price (circled)
                                                      Sale/Prorated Price
                                                      Transaction # (assigned by Hansen receipting system)
                                                      CSR Initials

                                                     Upon each sale or issuance for On-Street, Residential,
                                                     and Visitor permits – the customer is provided
                                                     information regarding parking locations. For On-Street,
                                                     a map is provided indicating permit sites.

                                                     Parking Services regulates capacity for off street
                                                     parking. Typically, Lot 1, 2, 7, and 10 have a waiting
                                                     list. If a customer requests one of these locations and
                                                     space is not available, they are placed on the waiting list
                                                     and contacted once space is available.
                              CSR                    Lot 1 (Smith Tower) permit – monthly – Smith Tower
                                                     Residents and the general public - reserved spaces.
                                                     Lot 2 (Evergreen) permit – monthly – Business Owners
                                                     - reserved spaces.
                                                     Lot 5 (West Coast Bank) permit – monthly and
                                                     quarterly – general public and Smith Tower residents –
                                                     not reserved – sold to individuals only (no businesses).
                                                     Lot 18 (Park N Go Vancouver Center) – monthly –
                                                     Smith Tower Residents and the general public – not
                                                     reserved – sold to individuals only (no businesses).

                                                     All of these lots can either be billed monthly/quarterly,
                                                     ACH, or can be purchased over the counter at the
                                                     Esther Short Building (ESB). In order to have the bill
                                                     invoiced, the customer needs to complete the necessary
                                                     application form for the appropriate lot. If ACH is
                                                     chosen, the ACH form is also completed. A copy of the
                                                     application form is filed at Customer Service and the
                                                     original application form and ACH forms are forwarded
                                                     to Accounts Receivable (A/R)*.
                              CSR                    Lot 10 (Riverview Tower), On-Street, Media and
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                                                     Carpool – customers come to ESB to purchase permits.
                                                     Media and Carpool permits require customers to fill out
                                                     an application form and are filed at Customer Service.
                                                     Lot 10 is a monthly permit, Media is yearly, and
                                                     Carpool is for 2 months.

                                                     On-Street permit is for 2 months. On-street permits are
                                                     available to the public and employees. Employees pay
                                                     through payroll deduction and permits are routed to
                                                     them via interoffice mail**.

                                                     Lot 7 (City Hall) and 20 (ESB) permits are for City
                                                     employees and payment is by payroll deductions**.
                                                     They can also be purchased by staff not on City payroll
                                                     (i.e. temporary staff). In that case, we can set up as
                                                     monthly billing* or purchased at ESB. To set up
                                                     payroll deduction, employees are asked to fill out an
                                                     automatic deduction form, a copy is filed at Customer
                                                     Service, original copy is forwarded to HR**. For Lot 7,
                                                     spaces are reserved with no permit issued.
*Customer                     A/R                    Upon receiving the permit application and ACH forms,
Account Set                                          an account is set up and the customer is automatically
Up / Invoicing                                       assigned a customer number by Oracle. A/R staff mails
                                                     out invoice and permit monthly or quarterly and
                                                     payments can either be paid by check or ACH.
                              CSR                    If ACH payment, CSR will be asked by A/R to set this
                                                     up on the customer account so that the payment will be
                                                     deducted automatically on the 10th day of each month.
**Employee                    HR                     HR staff will compile a log for various parking options
Permits                                              for City employees and inform Payroll about the
                                                     deductions. Toward the end of each month the list is
                                                     emailed to Customer Service and Parking Services staff
                                                     (PS).

                                                     HR staff also gives CSR the list for employees riding
                                                     the bus.
                              CSR                    The on-street employee list is copied and pasted in
                                                     excel format onto the permit log form which assigns
                                                     permit numbers and is placed in the Permit Log binder.
                                                     Name labels are printed for envelopes. Permits are
                                                     placed in the envelopes in accordance with the permit
                                                     assigned on the log form and routed to the employees.

                                                     Bus passes are distributed in the same manner, although
                                                     there is no Permit Log process, and the Permit Log is
                                                     saved in excel.
                              PS                     The Lot 20 list is copied and pasted in excel format
                                                     onto the permit log form which assigns permit numbers.

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                                                     Name labels are printed for envelopes. Permits are
                                                     placed in the envelopes in accordance with the permit
                                                     assigned on the log form. PS delivers these permits to
                                                     ESB and are placed on the Customer Service counter.
                                                     HR is informed of the delivery and issues an email to
                                                     ESB staff that Lot 20 permits are available for pick up.
                                                     ESB staff pick up their permits and acknowledge by
                                                     signing and dating the permit log form.
Permit Sales /                CSR                    For over the counter permit sales, purchases from the 1st
Refunds                                              to the 7th day of the month are at full cost.
Prorating
                                                     From the 8th day onwards, prorate as follows:
                                                      Cost of permit
                                                      Divide by 30 days
                                                      Times number of days through the end of the month
                                                      (begin day count the following day, include weekends)
                                                     Example: Permit sale March 15th
                                                      Cost of permit
                                                      Divide by 30 days
                                                      Times 16 days (March 16th thru March 31st)

                                                     Note: Reserved spaces will not be prorated after the 1st
                                                     month permit has been purchased whilst non-reserved
                                                     spaces are prorated accordingly after the 7th day of the
                                                     month.

                                                     Refunds of returned permits are also calculated the
                                                     same way which is:
                                                      Cost of Permit
                                                      Divide by 30 days
                                                      Times number of days through the end of the month
                                                      (begin day count the following day, include weekends)
                              CSR                    Residential and Visitor permits are free and are for
                                                     residents of surrounding downtown areas. Residential
                                                     permits are given for downtown residents (no visitor
                                                     permits are issued).

                                                     In order to qualify for the permits, residents must
                                                     provide:
                                                       Proof of residency,
                                                       Vehicle registration, and
                                                       Photo ID
                                                     Names on each document must be the same. Verify
                                                     that the addresses are in the downtown core or
                                                     surrounding areas. Issue residential permit and write
                                                     license plate # and “D” on permit for downtown core
                                                     residents. Surrounding areas are issued a residential as
                                                     well as a visitor permit (if requested). Write “3A” on

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                                                     visitor permit. Only one visitor permit per household is
                                                     issued.




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Tab e - Parking Customer Service

TASK                          RESPONSIBILITY         STANDARD PROCEDURE
Notice                        Customer Service       Retrieves citation in T2 PowerPark Flex parking
Received /                    Representative (CSR)   system (PPF) and discusses with customer details of
Original                                             the citation (i.e. date issued, violation type, location,
Citation Not                                         vehicle description).
Received                                             If the customer recollects the citation, the citation is
                                                     paid.
                                                     If the customer indicates the vehicle described was
                                                     sold prior to the citation issue date, the below
                                                     “Vehicle Sold” process is followed.
                                                     If the customer indicates the vehicle description does
                                                     not match a vehicle they ever owned, registration
                                                     verification is requested from VPD.
Vehicle                       VPD                    If necessary, registration verification information is
Registration                                         requested and provided to CSR.
Vehicle                       CSR                    Compares vehicle registration description with
Description                                          vehicle description in PPF.
Comparison                                           If the descriptions do not match, a dismissal is
                                                     requested due to enforcement officer error in entering
                                                     the incorrect license plate on the citation.
                                                     If the descriptions match, the customer remains
                                                     responsible for the citation.
Vehicle Sold                  CSR                    Customer is requested to provide evidence of sale
                                                     including bill of sale with date, vehicle description,
                                                     plate and/or VIN #, purchase amount, seller and
                                                     buyer signature, and preferably buyers address.
                                                     Customer can also provide registration information
                                                     from Department of Licensing or Department of
                                                     Motor Vehicles (or licensing agency from the state of
                                                     registration).
                                                     If customer refuses to provide this or no longer has
                                                     this information, a current registration verification is
                                                     requested from VPD to verify the sale.
                                                     If the buyer has not filed a sales report to the
                                                     licensing agency, the vehicle is flagged as “sold” but
                                                     remains in the seller’s name.
                                                     If buyer information is obtained and the sale date is
                                                     prior to the citation issue date, the citation is placed
                                                     on administrative hold in PPF, and all information is
                                                     sent to Parking Services.
                                                     If buyer information is not of record but the vehicle is
                                                     flagged as sold prior to the citation issue date, the
                                                     citation is placed on administrative hold, and all
                                                     information is sent to Parking Services.
                                                     A review of the vehicle is performed to capture all
                                                     affected citations.

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                                                     A review is also performed of all affected citations
                                                     status to determine if any are assigned to the
                                                     collection agency.
                                                     If they have been assigned to the collection agency,
                                                     the citation is requested to be cancelled and returned
                                                     due to ownership change and notes are added in PPF.
                                                     If the vehicle is in the sellers name with no sold flag
                                                     or the sale occurred after the citation issue date, the
                                                     customer remains responsible for the citation.
Vehicle                       VPD                    If necessary, registration verification information is
Registration                                         requested and provided to CSR.
Administrative                Accounts Receivable    Places administrative hold on citation(s) and enters
Hold / Date                                          the date the information is sent to Parking Services in
Entry                                                PPF.
New Customer                  Parking Services       Enters date received from CSR on citation in PPF.
Linked to                                            If the buyer is known, a search of the buyers name is
Vehicle                                              performed in PPF.
                                                     If the customer is already of record, the customer is
                                                     linked to the vehicle and all affected citations with a
                                                     start date as the sale date. The seller is changed in
                                                     PPF to “previous owner” with an end date signifying
                                                     the sale date.
                                                     If the customer is not in PPF, the customer is created
                                                     and linked to the vehicle as above.
                                                     Final notices are created and printed in Customer
                                                     Service (on invoice paper).
                              CSR                    Changes due date on the final notice(s) to 30 days
                                                     from creation date and mails out.
Final Notice                  CSR                    Retrieves citation in PPF.
Received /                                           If payment was receipted and postmarked within 15
Payment                                              days, a request to dismiss the late penalty is
Already                                              submitted to Parking Services on the Parking
Remitted                                             Adjustment form with an administrative hold placed
                                                     on the citation.
                                                     If the 15th day fell on a non-business day and was
                                                     receipted the following business day, a request to
                                                     dismiss the late penalty is submitted as above.
                                                     If payment was not receipted on the citation, CSR
                                                     obtains information from the customer in order to
                                                     research and locate the payment and discusses with
                                                     supervisor any necessary corrections.
Administrative                Accounts Receivable    Places administrative hold on citation and enters the
Hold / Date                                          date the request is sent to Parking Services in PPF.
Entry
Approval or                   Parking Services       Evaluates request.
Denial                                               If approved, follows process in accordance with
                                                     “Parking Citation Appeals” process (Tab f).
                                                     If denied, contact CSR to inform customer of results.

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Customer                      CSR                    Contacts customer and informs them the dismissal
Follow Up                                            request was denied, customer is responsible for
                                                     payment.
Lost Citation /               CSR                    Searches in PPF by vehicle plate or customer name,
Research                                             provides all necessary information to customer.
Dispute /                     CSR                    Provides information regarding appeal requirements
Appeal                                               and process. Follows “Parking Citation Appeals”
Information                                          process (Tab f).
Parking VMC,                  CSR                    Provides information regarding citation, late penalty,
WAC, RCW                                             and collection agency rules and regulations
Information                                          established by VMC, WAC, and RCW. Provides
                                                     reference to city web site, copies, mails, or emails
                                                     information as requested.
Status of                     CSR                    Searches in PPF for citation and provides status of
Citation                                             amount due, payment / non-payment, appeal, District
                                                     Court referral, or collection agency referral. Provides
                                                     contact information for these agencies if needed.
Total Unpaid                  CSR                    Searches in PPF for citation(s) outstanding by
Citations                                            customer name and/or license plate and provides
                                                     status of total amount due, payment / non-payment,
                                                     appeal, District Court referral, or collection agency
                                                     referral. Provides contact information for these
                                                     agencies if needed.
Request for                   CSR                    Verifies payments have been receipted and there are
DOL Proof of                                         no unpaid citations by running an “Outstanding
Payment                                              Citations for Vehicle (COV)” report in PPF.
                                                     If the citations were referred to the collection agency,
                                                     the collection agency is responsible for completing
                                                     the proof of payment form.
                                                     If the citations were not referred to the collection or
                                                     referred to District Court, CSR will complete the
                                                     form.
Files DOL                     Collection Agency      Verifies payments have been received as described
Proof of                                             above and, when appropriate, completes DOL Proof
Payment Form                                         of Payment form.
Paystation                    CSR                    Assists customer with operation of paystations.
Information /                                        Obtains information regarding problems or
Problem /                                            malfunction.
Malfunction                                          If customer reports malfunction, an inspection is
                                                     requested from Parking Services to determine
                                                     whether maintenance is necessary.
Meter                         Parking Services /     Performs inspection and reports results to CSR.
Inspection                    Maintenance            Performs maintenance if necessary.
Customer                      CSR                    If paystation was malfunctioning resulting in a
Follow Up                                            citation in error, CSR completes an appeal form in
                                                     accordance with “Parking Citation Appeals” process
                                                     (Tab f).
                                                     Customer is informed of inspection results.
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                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

Malfunctioning CSR                                   Obtains information regarding malfunction.
Meter                                                An inspection is requested from Parking Services to
                                                     determine whether maintenance is necessary.
Meter                         Parking Services /     Performs inspection and reports results to CSR.
Inspection                    Maintenance            Performs maintenance if necessary.
Customer                      CSR                    If meter was malfunctioning resulting in a citation in
Follow Up                                            error, CSR completes an appeal form in accordance
                                                     with “Parking Citation Appeals” process (Tab f).
                                                     Customer is informed of inspection results.
Citation(s) on                CSR                    Customer is informed all credit reporting is
Credit Report                                        performed by the collection agency. Customer is
                                                     provided contact information for the collection
                                                     agency.
Customer                      Collection Agency      Provides information regarding credit reporting.
Follow Up                                            Customer is informed all disputes must be filed with
                                                     the credit bureaus. Collection agency will
                                                     adjust/correct any items if warranted.
Collection                    CSR                    Retrieves citation(s) in PPF. If citation(s) show last
Agency                                               transfer date and transfer agency of the collection
Information /                                        agency, customer is referred to them for assistance
Referral                                             and is provided contact information.
Customer                      Collection Agency      Provides customer service for all citation information
Follow Up                                            for citations referred to them. Customer is informed
                                                     any dispute must be filed with them and are
                                                     coordinated between the collection agency and the
                                                     city.
Complaints /                  CSR                    Customers are advised to complete a Parking
Comments                                             Services comment card. Or, if they should have a
                                                     more immediate need, are referred to the Parking
                                                     HotLine.
Customer                      Parking Services       Reviews comment cards and follows up with
Follow Up                                            appropriate action. Responds to HotLine calls as
                                                     quickly as possible.




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                        LOB 4a--32
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                     LOB 4a--33
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014


Tab f - Parking Citation Appeals

TASK                        RESPONSIBILITY           STANDARD PROCEDURE
Parking                     Customer Service         If received within 15 days of the citation issue date,
Citation                    Representative (CSR)     CSR evaluates to ensure the form is correct and
Appeal                                               includes all necessary supporting documentation
Presented                                            Appeal is set up on the customer and linked to the
                                                     citation in T2 (parking citation tracking system)
                                                     If a customer name is not linked to the citation, a
                                                     request is issued to Police staff to obtain vehicle
                                                     registered owners name*
                                                     Appeal, and if necessary, registered owner information,
                                                     is placed in the designated parking in-box

                                                     If appeal request is received after 15 days of the
                                                     citation issue date, the right to appeal is forfeited
                                                     (RCW 46.63.060 (2) (h)
                                                     Customer is notified the appeal is denied
                            *Police                  Vehicle registration information is obtained and
                                                     forwarded to CSR making request
                            Accounts Receivable      Retrieves appeal requests two to three times per day
                            (A/R)                    If customer is not linked to the citation, using the
                                                     vehicle registration information:
                                                       Customer is set up
                                                       Linked to vehicle
                                                       Linked to citation
                                                       Appeal is set up on the customer
                                                       Linked to citation
                                                     Enters “Appeal Sent to Parking” date on citation
                                                     Appeal is forwarded to Parking Services
                            Parking Services (PS)    Receives appeal
                                                     Enters “Appeal Rcvd from CSR” date on citation
                                                     Reviews appeal

                                                     If appeal is upheld, the citation is updated with appeal
                                                     results
                                                     A copy of the appeal request with results is forwarded
                                                     to the customer
                                                     Documentation is filed with PS

                                                     If appeal is denied, the citation is updated with appeal
                                                     results
                                                     A copy of the appeal request with results is forwarded
                                                     to the customer notifying them their appeal is being
                                                     forwarded to District Court (DC) for a hearing, and
                                                     will be notified by DC of the hearing date and time
                                                     PS enters “Appeal Sent to CSR” date on citation

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                                  Coordination Draft - Not for Distribution
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                                                     Appeal is returned to Customer Service
                            Customer Service         Receives appeal
                            A/R                      Retrieves appeal
                                                     Enters “Appeal Recvd from Parking” date
                                                     Updates the appeal to “Make Hearing Required”
                                                     Returns appeal to CSR
                            CSR                      Obtains owner certification from Department of
                                                     Licensing
                                                     Obtains enforcement or issuing officer affidavit
                                                     Prepares cover sheet requesting appeal
                                                     Forwards appeal with all corresponding documentation
                                                     to DC for a court appointed hearing
                                                     Prepares summary log of citations forwarded
                                                     Forwards copy of log to Cash Management Supervisor
                                                     (CMS)
                            DC                       Receives appeal / request for hearing
                                                     Schedules hearing
                                                     Notifies customer of hearing date and time
                                                     Within the first week of each month, emails the
                                                     following to CMS (or designee):
                                                      Tickets Filed Report
                                                      Tickets to Court Report (aka Hearings Scheduled
                                                     Report)
                                                      Disposition Report
                                                      Remittance Summary
                                                      Ledger Detail Report
                                                      Delinquent Tickets Report
                            CMS (or designee)        Tickets Filed Report is compared with DC log of
                                                     citations forwarded for hearings, discrepancies are
                                                     discussed and resolved with DC
                                                     Citations are updated with hearing dates reported on
                                                     Tickets to Court Report
                                                     Citations are updated with hearing results (i.e. upheld,
                                                     mitigated, no show) reported on the Disposition Report
                                                     and transfer agency is changed to DC
                                                     Remittance Summary and Ledger Detail reports
                                                     payments and is processed in accordance with the
                                                     “Receipt Payments” procedures
                                                     Unpaid citations are forwarded to a collection agency
                                                     and reported on the Delinquent Ticket Report




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                       LOB 4a--35
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

                                                                     Customer
                                                                 presents Parking
                                                                  Citation Appeal



                                                                                                                                   Customer
                                                                                                                                  Service Rep
                       Appeal is denied.                            Is it within                      Is form
                                                                                                                                 (CSR) makes
                      Customer owes fine;            No             15 days of          Yes          completed           No
                                                                                                                                corrections or
                     Stays in AR until paid.                         citation?                       correctly?
                                                                                                                                sends back to
                                                                                                                                   customer
                                                                                                        Yes

                                                                                                  Appeal is set up
                                                                                                  in T2 to stop the
                                                                                                      AR aging
                                                                                                  process for this
                                                                                                     transaction


                                       Citation is
 Customer’s citation                  updated with                                               Parking Services
                                                                   Is the appeal
   is taken off AR                  appeal approval,      Yes                                      reviews the
                                                                    approved?
       balance                      and copy is sent                                                  appeal
                                      to customer

                                                                        No

                                                                    Citation is
                                                                   updated with
                                                                 appeal denial and
                                                                  copy is sent to
                                                                    customer


                                                                                               CSR obtains owner
                                       Appeal is                                                                                 District court
                                                                    CSR enters                 certification, officer
                                      returned to                                                                                  schedules
                                                                 appeal on District           affidavit and forwards
                                       Customer                                                                                  hearing and
                                                                     Court log                  appeal request to
                                      Service/CSR                                                                              notifies customer
                                                                                                   district court


                                                                                         Reports Rec’d Monthly:
                                                                                                                                 District court
                                                                                                   Tickets Filed, Tickets to
                                                                                                                               forwards reports
                                                                                                   Court, Disposition,
                                                             Treasury                                                               to Cash
                                                                                                   Remittance Summary,
                                                             Receipts                                                            Management
                                                                                                   Ledger Detail,
                                                            Payments to                                                        Supervisor (CMS)
                                                                                                   Delinquent Tickets
                                                            Receivables


                                                                                                  T2 is updated
                                                                                                                                 Tickets Filed
                 Unpaid citations                                                                  with hearing
                                                                                                                                    report is
                 are forwarded to                    Ledger Detail reports are                   results reported
                                                                                                                                compared with
                   a collection                          reconciled with                          on disposition
                                                                                                                               District Court Log
                    agency by                         Remittance Summary                              report
                  District Court



                                                                                                Discrepancies
                                                                                              are identified and
                                                                 Is it in
                                                                                   No           resolved with
                  Customer owes                                 balance?
                                                                                              CMS and District
                     for ticket
                                                                                                    Court

                                                                  Yes

                                                           Payments are
                                                            receipted to
                                                           citations in T2




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                                                                  LOB 4a--36
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014


Tab g - Parking Citation Journals and Reconciliation


TASK                                 RESPONSIBILITY     STANDARD PROCEDURE
Run and print Daily                                     Run report for prior business day’s entries. For
Parking Citation                     Cash Management    Monday, run report for Friday, Saturday, and
Journal (DPCJ)                       Supervisor (CMS)   Sunday
Report                                                  Maximize Adjustment transactions to view detail
                                                        For same time period as above:
                                                        Hansen Transaction Report (COV)
                                                         Category Financial
                                                        Citations Issued Report
                                                         Category Citation
                                                          • Note: Manually entered citations will NOT
Run T2 Reports
                                                               appear on this report
(only print
                                                        Adjustments Report COV
Adjustments Report
                   CMS                                   Category Financial
COV and page 1 of
                                                        Escalation Report (COV)
Unpaid Citations
                                                         Category Financial
(COV) Report
                                                        Voided Citations Report (COV)
                                                         Category Financial
                                                        Transfer Agency Report (COV)
                                                         Category Citation
                                                        Unpaid Citations (COV) Report
                                                         Category Citation (for prior business day only)
                                                        Parking ~ Referred to District Court
                                                         L:/Support Services/Parking District Court/
Run Excel Report
                                     CMS                 Parking District Court Referrals Disposition
(do not print)
                                                        This is only necessary when there are citations
                                                         transferred to District Court
Print Unposted
                                                        Annotated as “DO NOT POST day.mon.yr”
Oracle Parking                       CMS
                                                         Category T2
Journals




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                     Financial & Management Services Business Plan 2009-2014

Reconciliation                       CMS             Review each category to include totals and
                                                      GL accounts
                                                     Payments from Hansen do not create a journal since
                                                      these already interface to Oracle. Totals include
                                                      Remittance Processor transactions. Collection
                                                      agency payments are excluded from this report
                                                      but are processed similar to the RP transactions.
                                                     Typically, adjustments require close review.
                                                      T2 payment reversals typically need to be
                                                      deleted from the Oracle journal since these
                                                      journals are already processed such as for
                                                      NSF’s or payments that will be sent to the
                                                      collection agency.

Discrepancies                        CMS             Identify discrepancies
                                                     Make any necessary adjustments to Oracle journal
Notification to post                 CMS             Notify Treasurer when journals are ready to post
journals
Post Journals                        Treasurer       Reviews and posts journals
                                                     Notify CMS when posted
Run and print                        CMS             Compare total receivable balance with T2 Unpaid
Oracle Parking                                        Citations Report by Date (COV)
Accounts                                             Identify any discrepancies
Receivable                                           Work with IT staff, if necessary, to correct
(PowerPark)                                           reporting or transaction problems
Financial Report
Quarterly Aging                      CMS             After quarter end, run:
Report                                                Unpaid Citations by Date (COV) report
                                                      Category Citation
                                                      For the following periods:
                                                       Total outstanding
                                                       1->30
                                                       31->60
                                                       61->90
                                                       91->120
                                                       121 and older
                                                       121->1 yr
                                                       1 yr and older
                                                     Update data on Parking Aging excel report
                                                     Forward report to Accounting for entry to
                                                      doubtful accounts / uncollectible




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                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                     LOB 4a--39
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

Tab h - Bankruptcy Processing

TASK                                RESPONSIBILITY          STANDARD PROCEDURE
Bankruptcy                          Utility Division (UD)   Logs information on Bankruptcy spreadsheet
Notice Received:                                            located on the shared L drive (password
 New Case Filings                                           protected)
 Dismissals                                                 Determines if there are any funds outstanding on
 Discharges                                                 a utility account and updates log
                                                            Logs bankruptcy alert and case information on
                                                            utility account
                                                            Utility account discharges are processed as write
                                                            off
                                                            Utility accounts are re-activated for dismissals
Bankruptcy                          Cash Management         Determines amount due on utility account and
Notice Received:                    Supervisor (CMS)        A/R account(s)
 Proof of Claim                                             Files Proof of Claim for all Chapter 11 and 13
                                                            cases, and Chapter 7 cases with recovery of
                                                            assets
                                                            Performs periodic review of new case filings to
                                                            ensure all claims are filed within court
                                                            designated deadline
                                                            Enters claim filing information on spreadsheet
                                                            (G drive)
                                                            Copies of claims are maintained in Bankruptcy
                                                            binder
                                                            Tracks payments and enters on spreadsheet
                                                            A/R account (including parking citations)
                                                            discharges are processed as write off




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                       LOB 4a--40
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014


                                                         Is it a new
                                                                                                         Is it a Proof of
                                                     filing, dismissal                No
            Bankruptcy                                                                                        Claim?
                                                      or discharge?
           Notice Arrives



                                                           Yes                                                Yes


                                                                                                         Route to Cash
                                                         Route to
                                                                                                         Management
                                                      Utility Division
                                                                                                          Supervisor



                                                     Logs Information             Determines
                  Is it a new                                                   amount due on
                                                        on Shared
                    filing?                                                       non-utility
                                                       Bankruptcy
                                                       spreadsheet                 accounts                                         Is it a
                                                                                                     Is it a Chapter
                                                                                receivable and                              No   Chapter 11 or
                                                                                                        7 Claim?
                       No                                                No     notifies staff to                                 13 Claim?
                                        Yes                                    update accounts
                                                                               with bankruptcy
                                                        Does this                  indicator               Yes                        Yes
                    Is it a                           customer owe
                 dismisssal?                          money to the                                                                File Proof of
                                                          city?                                     No Claim is filed,             Claim by
                                                                                                    unless assets are            deadlines and
                                                                                                       recovered.                put copies in
                                                                                                                                     binder
                                                           Yes
                                Yes
                                                     Logs Bankruptcy
                                                      Alert and Case            Update Shared
                                                      Information on             Bankruptcy
                                                      Utility Account            spreadsheet
     No                                                 and Shared
                                                        Bankruptcy
                                                       spreadsheet

                        Remove alert.
                           Resume
                      collection efforts.




                    Is it a                                                  Customer
                 discharge?                                                                          Have any
                                                                            Service Rep
                                                                                                     payments
                                                                          (CSR) processes     Yes
                                                                                                       been
                                                                            cash receipt
                                                                                                     received?
                      Yes


               Logs discharge                           Write off
               information on                           customer
                utility account                          balance




                    Done by Cash Management Supervisor


                   Done by Utilities Division




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                                            LOB 4a--41
                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014


Tab i - Reception & General Customer Service

TASK                               RESPONSIBILITY STANDARD PROCEDURE
Directions                         CSR            City Map / Map Quest / Google. Provide customer as
                                                  much information as possible to find their destination.
Mail/Deliveries                    CSR            Sort and distribute to ESB staff.
Scheduled                          CSR            Call department to locate employee who is conducting
Meetings                                          the meeting and inform them an attendee has arrived.
                                                  Have the customer sign the Visitor Sign-In log with
                                                  name, date, and time. If requested by employee, direct
                                                  customer to meeting room or location of meeting,
                                                  otherwise employee will greet customer.
Current Job                        CSR            Refer customer to kiosk in lobby. If needed, assist
Opportunities                                     customer to locate position they are interested in. Print
                                                  out job description and hand out application. Explain
                                                  application process. If specific questions are asked
                                                  regarding a position that are not addressed in the
                                                  position posting, customers are referred to the Human
                                                  Resources Department (HR). If referred, customer
                                                  signs the Visitor Sign-In log and is directed to HR.
Job Applications                   CSR            Customer signs the Visitor Sign-In log and is directed
Submitted                                         to HR.
Interviews                         CSR            Candidate signs Visitor Sign-In log and is given
                                                  paperwork provided by HR. Candidate is directed to
                                                  their interview location or waits in the lobby for an
                                                  interview panel member to greet them.
Daily Parking                      CSR            Departments located in the Esther Short Building
Passes                                            (ESB) occasionally request daily parking passes for
                                                  customers, volunteers, or staff coming to the building
                                                  for meetings that need to park in the ESB lot longer
                                                  than the 2 hour limit. There is a maximum of 10 passes
                                                  issued each day. In order to reserve, ESB staff notify
                                                  Customer Service of the date and number of passes
                                                  needed and are logged on the 1 Day Parking Permit
                                                  Visitor log. When recipients arrive, the passes are
                                                  issued, placed on the customers’ vehicle dashboard,
                                                  and entered in the log. Non-COV staff sign the Visitor
                                                  Sign-In log and are directed to their destination.
Business License                   CSR            Hand out Business License Application, Business
Applications                                      License Fee Surcharge Worksheet, Determination of
                                                  Exemption Checklist, and, if needed, Frequently Asked
                                                  Questions form. Provide explanation of how to
                                                  complete paperwork, and answer general questions
                                                  regarding the Business License process. If requested,
                                                  provide location and phone numbers of Washington
                                                  State Department of Revenue, Department of Labor
                                                  and Industries, and Internal Revenue Service. Receipt

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                                  Coordination Draft - Not for Distribution
                     Financial & Management Services Business Plan 2009-2014

                                                     payment for license and surcharge in accordance with
                                                     “Receipt Payments” process. If additional or specific
                                                     information is requested, refer customer to Accounts
                                                     Receivable staff for assistance.
Chauffeur License CSR                                Hand out Chauffeur License Application, Fingerprint
Applications                                         Process forms and return envelope. Provide
                                                     explanation of how to complete paperwork, and answer
                                                     general questions. If additional or specific information
                                                     is requested, refer customer to Vehicle for Hire
                                                     Compliance Coordinator.
Plans and Specs                    CSR               Customer provides CSR with Bid, RFP, RFQ, or Quote
                                                     number. CSR delivers requested information and
                                                     receipts appropriate payment in accordance with
                                                     “Receipt Payments” process. Customer completes
                                                     form with business contact and project information and
                                                     CSR delivers to Procurement Department.
Civil Violation                    CSR               Appeal is stamped with the receipt date and
Appeals                                              immediately forwarded to City Clerk support staff.
Guaranteed Ride                    CSR               Evaluate for GRH compliance, call taxi, tell dispatcher
Home Program                                         this is for GRH, complete voucher for employee. Give
(GRH)                                                employee original, yellow and pink copies of voucher,
                                                     forward gold voucher copy to Transportation/GRH
                                                     Coordinator.




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                       LOB 4a--43
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                     Financial & Management Services Business Plan 2009-2014




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                     LOB 4a--44
                                       Coordination Draft - Not for Distribution
                          Financial & Management Services Business Plan 2009-2014

     Tab j – Robbery Preparedness

TASK                       RESPONSIBILITY                 STANDARD PROCEDURE
Robbery                    Customer Service               Precautions are taken to protect and safeguard funds and
Prevention                 Representative (CSR)           personal safety (in compliance with Cash Handler’s
                                                          Manual) which includes the following:
                                                              o Balance cash drawer away from public view
                                                              o Discretion about cash drawer limits and cash on
                                                                 hand
                                                              o Securing change fund, petty cash, daily deposit in
                                                                 safe or locking drawer
                                                              o Awareness of suspicious people milling in or
                                                                 around the location. Interacting with suspicious
                                                                 people with the intent to distract.
                                                              o Discreetly alerting supervisor / manager of
                                                                 suspicious behavior
                                                              o Be particularly aware during opening and closing
                                                                 each day
                                                              o Never allowing unauthorized people in the
                                                                 cashier area
                                                              o Never leaving cash, checks, or other confidential
                                                                 items on the counter when leaving workstation
Panic Alarm                CSR                            To be used only when life is in danger
                                                          Once activated, the call will simultaneously go to:
                                                              o The alarm company that monitors the alarm
                                                                 equipment
                                                              o Vancouver Police Department
                                                              o Key staff at the location to alert them of a life
                                                                 threatening event (i.e. Treasurer, Cash
                                                                 Management Team Supervisor, Accounts
                                                                 Payable Supervisor, Facilities Manager,
                                                                 Resource Program Coordinator/Parks, Park
                                                                 Developer)
                           Treasurer, Cash                Keep staff away from Customer Service area
                           Management Team
                           Supervisor, Accounts
                           Payable Supervisor,
                           Facilities Manager,
                           Resource Program
                           Coordinator/Parks,
                           Park Developer
During a                   CSR                            In compliance with the Cash Handlers Manual which
Robbery                                                   includes the following:
                                                              o Always assume there is a weapon
                                                              o Be polite, calm, and accommodating / obey
                                                                 orders
                                                              o Keep talking to the robber. Explain your every
                                                                 movement.

     LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                            LOB 4a--45
                                       Coordination Draft - Not for Distribution
                          Financial & Management Services Business Plan 2009-2014

                                                          o   Do exactly as the robber asks
                                                          o   Attempt no heroics
                                                          o   Observe the robber but don’t stare
                                                          o   Try to remember distinguishing features in order
                                                              to complete the Police Report (i.e. height, weight,
                                                              body build, aprox age, color, nationality,
                                                              clothing, scars, tattoos, hair type /color,
                                                              mustache, pierced body parts, glasses, etc)
                                                          o   Listen to voice, inflections, names, slang, accents
                                                          o   Observe means of escape, direction, vehicle
                                                              description / special features
                                                          o   Do not leave or call 911 until it is safe
After a Robbery            CSR                            o   Don’t follow the robber
                                                          o   Activate the panic alarm
                                                          o   Lock the front door
                                                          o   Notify supervisor/manager
                                                          o   Speak to no one, other than city officials, until
                                                              you have talked to the police and completed a
                                                              holdup description form
                                                          o   Complete a holdup description form (do not
                                                              collaborate with co-workers or witnesses) which
                                                              includes what was said – do not omit any detail,
                                                              no matter how insignificant it may seem
                                                          o   Take names and addresses of any witnesses
                                                          o   Allow only city officials and Police in the facility
                                                          o   Protect the crime scene. Don’t touch evidence.




     LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                           LOB 4a--46
                                                                  Coordination Draft - Not for Distribution
                                                     Financial & Management Services Business Plan 2009-2014


 Customer Service - Robbery Preparedness
 Prevention
  Robbery




                            Secure funds; be
                             discreet, aware
                             and observant
    Panic Alarm




                                                                                                Notification sent
                                                                                 VPD,
                              Activate when                                                      to ESB staff to
                                                          Notification     alarm company,
                            life is threatened                                                  stay away from
                                                                              5 COV staff
                                                                                                 cashiering site
 During a
 Robbery




                                                          Do exactly as
                           Follow guidelines
                                                           instructed;
                           in cash handler’s
                                                             observe
                                manual
                                                         characteristics
 Robbery
  After a




                                                                           Keep internal &
                           Follow guidelines             Activate panic
                                                                               external         Complete holdup
                           in cash handler’s              alarm; notify
                                                                           customers away       description form
                                manual                     supervisor;
                                                                             from area;




LOB 4 Prog A Customer Service 8-2-10.doc/ 08/12/10                                           LOB 4a--47
                                 Coordination Draft - Not for Distribution
                    Financial & Management Services Business Plan 2009-2014


                    Accounts Receivable & Business Licensing Services
                                 (Treasury & Cash Management Line of Business)
                                                                 Supervisor: Connie Grant


Table of Contents

    1. Purpose (Why we exist) ...................................................................................................2
    2. Goals..............................................................................................................................2
    3. Major Services we provide................................................................................................2
    4. Organization & Staff ........................................................................................................3
    5. Major Processes ..............................................................................................................3
    6. Key Customers ................................................................................................................3
    7. Financial Balance Sheet Summary Data .............................................................................4
    8. Key Outcomes & Performance Measures............................................................................5
    9. Sample Cost to Provide Services .......................................................................................6
    10. Recent Savings or Progress in efficiency, effectiveness, cost, or sustainability .....................6
    11. Continuity of Operations.................................................................................................6
    12. Major Issues..................................................................................................................6
    13. Analysis of Major Issues .................................................................................................7
    14. Future Issues ..............................................................................................................21
    15. Process Descriptions and Flow Charts ............................................................................26
         Tab A – Customer Service...........................................................................................28
         Tab B - Collections .....................................................................................................30
         Tab C - Invoicing .......................................................................................................35
         Tab D - Account Maintenance .....................................................................................47
         Tab E - Reconciliations ...............................................................................................52
         Tab F - Reporting.......................................................................................................60
         Tab G - Payments – reconciliation, post to subsystems, etc. ..........................................64
         Tab H - Write-offs......................................................................................................66
         Tab I - Refunds .........................................................................................................67
         Tab J - ACH file settlements........................................................................................70




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1. Purpose (Why we exist)
We bill customers for money owed to the city and manage collections in a timely, efficient, and
cost effective manner while providing excellent customer service. As city representatives, we
are committed to providing timely, high quality customer service to all of our customers in a
positive, professional, and cooperative manner.
In Accounts Receivable (AR), we invoice external customers and other governmental agencies
for fees or loans owed to the city, for services provided by the city, or for reimbursement
requests. We manage the collection process for current and past due accounts that we are
responsible for invoicing.

In Business Licensing Services, the focus is to invoice and manage collection of fees required
under the City’s business license and surcharge program through new business registrations,
annual license renewals, and collection efforts for past due accounts.



2. Goals
In the next 2-6 years, our top goals are to:
    a. Streamline our manual operations by creating interfaces to Oracle GL and AP, and
        adding web access functionality for customer inquiries on invoices and on-line payments
        by end of 2011.
    b. Replace the current DOS-based ASP loan software system used to manage the SCIP and
        CDBG loan programs with a more integrated software system by 2012.
    c. Partner with Utilities to streamline the processes associated with mailing invoices,
        statements, past due notices, etc. by using automated equipment.
    d. Review and streamline collection policies and procedures for business license and
        surcharge fees to improve revenues received. Develop auditing tools, including access to
        state database systems by 2013.
    e. Schedule an internal audit of licensed businesses to ensure compliance with the license
        and surcharge program, and maximize associated revenues using internal auditor and a
        state database (Department of Revenue “Tax Tools”, or access information submitted by
        businesses to the Washington State Labor and Industries department) by 2011
    f. Initiate staff cross-training in 2010 for each invoice type to ensure continuity of
        operations.
    g. Provide back office support for the Red Light Camera Program so that it is operational in
        2010.



3. Major Services we provide
   o Issue invoices
   o Issue collection notices
   o Provide customer service (internal and external customers)
   o Process account maintenance
   o Initiate refund requests
   o Forward unpaid accounts to the collection agency
   o Monitor and track Business License activity, revenue, and program compliance
   o Reconcile accounts receivable with general ledger


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      o      Reconcile and monitor payment postings to subsidiary systems
      o      Enter and track account activity in subsidiary systems or spreadsheets (loans, stay of
             proceedings, business licensing)
      o      Process automated payments via ACH (automated clearing house)
      o      Provide statistical reporting to management
      o      Monitor collection agency activity
      o      Recommend accounts for write off to management



4. Organization & Staff
Position                                                             FTE    (management)
Treasury Manager                                                     0.10      (0.10)
AR/Admin Supervisor                                                  0.50      (0.50)
Senior Accounting Clerk                                              4.0
Accounting Clerk II                                                  1.0
Total FTEs                                                           5.60      (0.60)

Management ratio (managers to total employees)                                 1:7.7


5. Major Processes
See tabs for details about each process and a flow chart
Process                                                                           Location   Workload
Customer Service                                                                    Tab A      21%
Collections                                                                         Tab B      20%
Invoicing                                                                           Tab C      17%
Account Maintenance                                                                 Tab D      10%
Reconciliations                                                                     Tab E       9%
Reporting                                                                           Tab F       5%
Payments – reconciliation, post to subsystems, etc.                                 Tab G       5%
Write-offs                                                                          Tab H       1%
Refunds                                                                             Tab I       1%
ACH file settlements                                                                Tab J       1%
Other miscellaneous /special projects                                                          10%
Total:                                                                                        100%
Source of workload: 2008 staff outcomes




6. Key Customers
Our customers come from two sources: External to the city and internal city organizations. By
work volume measures, the majority of our customers belong to the organizations below:




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 CUSTOMER / FUND
 External Customers
                                                                              Business
                                                Clerk A          Clerk B      Licensing                            Remarks
   Walk-in public                                 0%             30%*            5%       *Primarily SCIP, cemetery, and stays
   Call-in public                                 90%                40%        90%
   Mail-in public                                 10%                30%         5%
                                   Total:        100%                100%       100%

                                                                Based on
 Internal Customers                                              Invoice
                                                                                          Alarms, Business License, Stays, COBRA, Parks, Special
   General Fund                                                      51%                  Licenses, Cemetery
   Transportation Spec Rev                                           20%                  Business License Surcharge
   Sewer Utility/SCIP Fund                                           8%                   Septic Dumpers, SCIP loans
   Airpark Fund                                                      5%                   Airport
   Parking Services Fund                                             4%                   Parking Permits
   Fire/Fire Shop Fund                                               4%                   Fire Inspections, Fire Violations, Fire Shop
   Senior Messenger Fund                                             3%                   Senior Messenger Advertisements
                                                                                          Code Violations, Tennis, LID's, CDBG, Grants, Projects,
   Miscellaneous                                                     5%                   Work Orders, Miscellaneous
                                   Total:                            100%
External Customer data provided by staff
Internal Customer data provided by Invoice Volume 2008 Annual Report



7. Financial Balance Sheet Summary Data
Based on 2009 full year actual expenditures
         Program or Activity                            % of time           Cost to provide                            Notes
                                                        or budget              service
       Total                                               100%                $348,114
                                                                                               Alarms, Stays, COBRA, Parks, Special
     General Fund (ex. business
                                                            15%                $52,217         Licensing, Cemetery (excludes Business
licenses)
                                                                                               License)
    Business Licensing &                                                                       Business License, Surcharge, and Program
                                                            58%                $201,906
Surcharge                                                                                      Compliance
    Sewer Utility/SCIP                                       7%                $24,368         Septic Dumpers, SCIP Loans
    Airpark Fund                                             5%                $17,406         Airport
                                                                                               Parking Permits
                                                             4%                $13,925
       Parking Services Fund
       Fire/Fire Shop Fund                                   4%                $13,925         Fire Inspections, Fire Violations, Fire Shop
                                                                                               Senior Messenger Advertisements
                                                             2%                 $6,962
       Senior Messenger
                                                                                               Code Violations, Tennis, LID’s, CDBG, Grants,
                                                             5%                $17,406
       Other                                                                                   Projects, Work Orders, Miscellaneous




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8. Key Outcomes & Performance Measures
Outcomes and
Performance Measures                              Goal                 2007          2008       2009         trend   Change & Remarks

Our customers are satisfied
Biannual internal customer                                                          Due in
                                                  ≥ 3.0                 3.2         2009
                                                                                                 3.1                 Meets standard
survey (5 pt scale)
Complaints received by A/R                      < 1% of               New in        New in                           Written or telephone with
Supervisor or Treasurer                          invoices              2009          2009                            identification of complainant
We invoice and issue notices in a timely manner
Total invoices sent                           Work load              40,397         40,298
Number of invoices issued
within 48 hours of receipt /                  Work load              40,195         40,096
deadline
% invoices issued within 48
                                                 ≥ 98%               99.5%          99.5%      99.5%
hours of receipt / deadline
% past due notices issued
within 10 days of due date,                      ≥ 98%                 99%           99%
excluding business licenses
                                                                                                                     For 2007 and part of 2008, due
% past due notices for
                                                                                                                     to staffing shortages, business
business licenses issued w/i                     ≥ 98%                 75%           75%                             licensing activity fell below the
10 days of past due date                                                                                             goal. Staffing back in 2008.
We complete reconciliations in a timely manner
                                                By the
Reconciliation per invoice                                                                                           Represents % completed by
                                                 10th                 100%          100%       100%                  goal deadline
type with GL
                                                monthly
We collect funds owed to the city before sending them to outside agencies
(Due to economic factors, this is not reflective of staff performance)
Internal delinquency rate –
                                                  <15%                4.8%          9.2%
overall (61+ days past due)
Internal delinquency rate -
non-grants (61+ days past                         <10%                4.5%          3.9%
due)
Internal delinquency rate -
                                                  <20%                5.1%          15.0%
Grants (61+ days past due)
Internal delinquency rate –
                                                                                                                     Staffing level was increased in
Business Licensing (61+                           <20%               33.3%          15.6%                            2008
days past due)
Our follow up on unpaid accounts is exceptional
Total accounts sent to                                                                                               Note: Jan 08, collection
                         Work load  $152,151 $452,350
collections                                                                                                          agency services changed
Percent of accounts sent
                         Work load    .4%     1.0%
to collections ($)
Accounts referred to
collection agency within 30                       100%                 90%           98%        98%
days of due date
Collection agency                                                                                                    Note: Jan 08, collection
                                               Work load             $53,203        $39,632
recovery – total collected                                                                                           agency services changed
Collection agency                                                    37.01%                   10.10%                 Total collected divided by
                                                  >25%                              8.85%
recovery rate - overall                                              (as of 3/31)             (as of 7/31)           assigned less returned
                                                                                                                     Measure of collection agency
Write offs as percent of                                              New in        New in
                                              No goal yet                                                            performance will vary with
total revenue                                                          2009          2009
                                                                                                                     economic conditions



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Note: The Parking Citation Program is managed by FMS Customer Service and revenue and recovery
statistics are reported in the Customer Service Business Plan

9. Sample Cost to Provide Services                                                      2008     2009
    o Cost to issue an invoice is                                                      $9.88
             (2008 total budget divided by total number of invoices issued / not fully loaded)


10. Recent Savings or Progress
   o 2008/2009 Fire inspections invoiced through interface process from Firehouse subsidiary
      tracking system to Oracle. Later added invoicing for code and hazardous material
      violations.
   o 2009 Business license suspense reconciliation process / Discoverer report and new
      process created.
   o 2009 Business license invoice renewals / Discoverer report created.
   o 2009 Project invoice process / Discoverer reports created.


11. Continuity of Operations
The city must be able to maintain essential operations during a disaster.

a. What major functions are essential for us to maintain or reestablish in case of a
disaster?
      - Invoicing payments due to the city
      - Customer Service –answering telephone calls from the public
      - Send ACH files for various departments (utilities, parks, and Oracle invoices)

b. What personnel or positions are essential to emergency operations?
      - Treasurer
      - A/R Admin Supervisor
      - 3 Senior Accounting Clerks

c. Where do I find our updated emergency procedures?
The Accounts Receivable copy of the COOP is located at I: Finance, Emergency-Coop, Annex P


12. Major Issues

AR & BL Issue 1: The Oracle Accounts Receivable software has many limitations that require
manual work-around and processes. It is not currently an effective solution for our needs.
(Program level Issue)

AR & BL Issue 2: IT resources available to FMS are very limited, which causes many of the
outstanding accounts receivable software corrections, invoicing corrections, etc to be put on
hold. (Department level Issue)

AR & BL Issue 3: Invoice requests by departments are often significantly different from the
actual receivables. (Program level Issue)




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AR & BL Issue 4: When invoices are sent through the Oracle projects module to Clark
County, there are often significant problems with the County’s response. There are still invoices
from 2007 that are not resolved. (Department level Issue)

AR & BL Issue 5: We need to improve the collection rate and enforcement involved with the
various invoice types. There is not currently staff time to perform collections activities. (Program
level Issue)

AR & BL Issue 6: We need to enhance the education of and outreach to locally operating
businesses regarding the city’s business license and surcharge program to increase compliance
and associated revenues. (Program level Issue)

AR & BL Issue 7: Irreplaceable original cemetery records dating back over 100 years are
used for everyday reference. They are at a high risk for damage or loss, and there is no backup
to the data. We have had several meetings with IT to establish getting these records in an
alternative, non-paper database. (Department level Issue)

AR & BL Issue 8: Mail handling needs to be more automated for A/R billings and notices. We
are working with determining the cost/benefit analysis of forwarding some of these processes
to the an internal department that provides this type of service, or an outside business. (LOB
level Issue)

AR & BL Issue 9: The city only offers on-line payment options for recreation, (limited)
building permits, utility bills, and parking citations. (iReceivables will address on-line payments for
invoices with the exception of Loans and Alarms.) (Program level Issue)

AR & BL Issue 10: Response from the City Attorney’s Office on requests for advice is slower
than our customers find acceptable. (Department level Issue)

AR & BL Issue 11: Should the city be in the loan business or should loans be made by
financial institutions? (Department level Issue)

AR & BL Issue 12: Should the city be in the Alarm business? If so, should we contract out
administration of alarm accounts? (Department level Issue)

AR & BL Issue 13: How can we standardize and simplify invoicing for various services such
as Parking and Fire inspections? (Department level Issue)



13. Analysis of Major Issues

Issue 1: The Oracle Accounts Receivable software has many limitations that require manual
work-around and processes. It is not currently an effective solution for our needs.

Background
   kground:
Background Based on 2007 and 2008 statistics, Accounts Receivable issues an average of
40,350 invoices for a total $42 million per year. Average per month is 3,362 invoices for $3.5 million.



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The Oracle process to request statements to send to customers (for collection purposes) is tedious
and antiquated as they are requested on an individual, one-by-one basis by customer number instead
of printing statements for all customers that are delinquent. When dealing with a billing type that has
a multitude of delinquent accounts, the manual effort is extensive and is a very inefficient use of time.
(See process description and flow chart at Tab C). We estimate the time lost that could be
“harvested” upon automating the invoice process is about .5 to .8 FTE at full implementation.)


Challenge #1: The current Oracle Accounts Receivable billing module does not have the ability to
track beginning and ending balances. An excel spreadsheet is maintained to track beginning balance,
payments made and ending balance for billing types such as the Legal Stay of Proceedings where we
are invoicing monthly payments rather than a one time fee. Because this is a manual work around, it is
open for data entry error and is a duplication of processes.


Challenge #2: Concerning business licensing procedures, there is a labor intensive process which, if
automated, would free staff members to focus their attentions on auditing and searching for
businesses operating under the licensing radar.


Challenge #3: Monthly billing is an important aspect of the licensing process; each month, a
Transaction Register is developed based on the previous year’s invoicing activity. From this list,
staff must enter each invoice (ranging from 400-1,200 invoices in a given month) manually. Even
though the process is the same for each invoice, there are no shortcuts.


Thanks to a helpful assist from IT, it is possible to run reports to locate both those businesses
whose licensing anniversary has been overlooked and those who are being billed in the wrong month.
The ability to create these reports from Discoverer have cut the invoice preparation process time
and have provided account information that has rendered monthly invoicing more accurate; by them we
have discovered businesses who have not been invoiced for years. After this year (2009), that
oversight should no longer be a problem.


Upon review of these reports, a staff member then reviews a ‘tickler file’ for those businesses who
either need to be billed in a given month or whose billing should occur on their anniversary, which has
not been the case. This process is also performed account by account, manually.


Additional invoices are added and deleted, again, manually. When the process is complete, the
invoices are then printed, folded, stuffed into envelopes, and mailed. Soon into the next month, the
process starts again.



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The primary challenge lies in automating the invoice creation process. Again, to do so would reduce
the total procedure by almost a day, thereby allowing staff to address more profitable activities.


           2009:
Update Dec 2009: Discussions began with IT to determine if processes can be streamlined. If this
can be achieved, IT recommends these changes be made prior to the Oracle upgrade.


Solution 1:                Continue efforts with IT to determine if processes can be streamlined. If feasible to
implement, complete prior to Oracle upgrade.


Solution 2:                Continue with current processes. Due to other priorities and IT workload, begin
discussions with IT for alternatives 2nd QTR 2010.


         3:
Solution 3:                Add 1 FTE to A/R dedicated to invoicing processes, freeing up other staff to
address other issues such as collections or program compliance.


Recommendation:                         Solution 1.


Issue 2: IT resources available to FMS are very limited, which causes many of the outstanding
accounts receivable software corrections, invoicing corrections, etc to be put on hold.

Background: Due to many unique A/R invoicing and related processes (more fully discussed in
Issue 1), there are presently several projects assigned to IT. These projects are on the Schedule of
Finance IT Priorities project report, listed as follows:


Rank                       Project                                   Est Time   Approx Completion Date   Benefit
1            Oracle upgrade                                           12 mo           5/31/2010          Necessary
10           Print invoices at Utilities                              tbd             3/31/2010          Efficiency
14           A/R dunning letters                                      1 mo             #1 upgrade        Efficiency
19           Cemetery tracking                                        1 mo                tbd            Improved
                                                                                                         accountability
21           Invoicing enhancements                                    tbd                tbd            Efficiency
27           A/R statements                                           2 wks            #1 upgrade        Efficiency
28           CryWolf interface to GL                                  1 mo                tbd            Improved
                                                                                                         accountability
34           Implement iReceivables                                   3 mo                tbd            Efficiency
36           Oracle-SCIP loan tracking                                2 mo                tbd            Efficiency and
                                                                                                         Improved




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                                                                                                        accountability
37           Web pmts – city wide portal                             tbd            tbd                 Efficiency


These processes represent 25% of the total issues for FMS.


Due to budget constraints, IT has experienced staff shortages (much like the rest of the city). In
addition, FMS does not have adequate funds to pay for the necessary enhancements resulting in
spending more time with daily / manual work-arounds rather than utilizing IT staff to make long term
process improvements. Until there is a change in budget and staffing issues, IT staff must
concentrate on the most critical issues, #1 presently being the Oracle upgrade. While projects will be
addressed in priority order, oftentimes other critical issues present themselves making it necessary for
IT attention. One example is the Photo Red Light Program, presently #8 on the priority list. This
program is presently on hold but most likely the hold will be removed and it will be necessary for IT to
resume this project, resulting in possible delays for other projects.


Solution 1:                Continue with existing process. Monitor Schedule of Finance IT Priorities, ensure
projects are addressed timely, in priority order, and meet expected completion dates.


Solution 2:                While continuing with the existing processes, quantify the effects of making and not
                                        i
making each change in budget terms, and impress upon management the critical nature of these needs,
then request FMS management and IT to increase them on the priority list.


Solution 3:                Re-arrange the priority list by IT ‘time to complete’. Ensure projects are addressed
timely and meet revised completion dates.


Recommendation:                         Solution 2. In the current budget situation, this is the only feasible option we
have that may have success.



Issue 3: Invoice requests by departments are often significantly different from the actual
receivables.

Background:
Background There are presently some instances in which invoices are not requested to be created
and issued by A/R. Some departments issue requests for payment directly to customers or
agencies and, in turn, receive these payments. The payments are then delivered to a cashier and
credited either to a pre-existing ‘external charge code’ or to suspense, then moved by journal to the
appropriate revenue account. These payments are oftentimes initially received by cashiering staff.
Without an established invoice it is difficult to determine where to receipt the funds causing



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unnecessary research. Opportunity for fraud is high to continue this practice. It is estimated this
occurs approximately between 5 to 15 times per month.


Issues with not invoicing through A/R are as follows:
      o      The amount owing is not tracked as a receivable in Oracle A/R resulting in a mis-statement
             of actual receivables
      o      There is no tracking mechanism to ensure these expected payments are received, this is a
             breach in established internal controls, and opens the door for potential theft of public funds.
      o      Following established collection practices is not occurring
      o      When not paid, transferring these receivables to the collection agency is not occurring
      o      When payment is received by cashiering staff, without an established invoice it oftentimes
             causes unnecessary time to research to determine where to receipt the funds
      o      After receipting the funds, manual researching these payments can be cumbersome since they
             are not receipted directly to an invoice


Solution 1:                Make no change, continue with current practices.


Solution 2:                Push responsibility and accountability to the user level. Require all applicable
departments to submit a ‘Billing Request Form’ by email to A/R when funds are due the city. For
instances where an amount is unknown but funds are due, consult with A/R for best approach. If
funds are received before an invoice is created, submit a ‘Billing Request Form’ to A/R and inform
them funds have been received. A/R will work with Customer Service to apply or transfer the funds
(from suspense) to the invoice. Management in these departments shall hold staff accountable in
following these procedures.


Solution3 :                Require all applicable departments to submit a monthly receivable report to Finance
which reports all outstanding receivables, aging, and notations with current action for chronically past
due accounts.


Recommendation:                         Solution 2. Create written procedures, conduct outreach with applicable
departments. Implement by 1/01/2010.



Issue 4: When invoices are sent through the Oracle projects module to Clark County, there
are often significant problems with the County’s response. There are still invoices from 2007
that are not resolved.




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Background:
Background Project invoices are created through the Oracle projects module by running a series of
processes. There have been a series of issues in receiving payments from the County for these
invoices which include the following:
      o      Historically, some payments have not been paid for over 1 year after the due date
      o      The County has had issues in reconciling our invoice details resulting in severe delays or
             refusal to remit payments
      o      Lack of follow up by the County to discuss issues contributed to the delays
      o      There was a continuous cycle of cross-agency billing also contributing to the delays
      o      In some cases, we needed to borrow from general fund to timely remit payments


Update In 2009, there has been substantial improvement in creating invoices through the Projects
module, and receiving payments. As of October, there are only two unpaid invoices past due more
than 3 months which total $13,800. The improvement was a result of:
      o      Parks staff worked on a new method to provide backup information for the invoices resulting
             in using the Projects module less often
      o      Parks staff is now transferring impact fee funds and net billing the County
      o      Management staff became involved to improve communication between all involved
      o      Parks staff worked with managers to provide more detail
      o      Parks staff began reviewing and approving all billings before they were issued
      o      IT created Discoverer reports replacing prior labor intensive processes


In addition, Parks staff will implement a change effective early 2010 in which the County will set up a
dedicated fund and bill us only what we incur, the volume of billings will be drastically reduced resulting
in a reduction in problems to address.


Solution 1:                Make no further change at the moment. Evaluate planned changes in 2010 to ensure
they are effective with minimal problems.


Solution 2:                Evaluate possible options for further improvement. Work with Parks and County
staff to determine alternatives to processes.


Recommendation:                         Solution 1. Continue to monitor County payment status, promptly follow up
with Parks or County staff to ensure payments are remitted by the due date and/or prior to a severe
past due status.


Issue 5: We need to improve the collection rate and enforcement involved with the various
invoice types. There is not currently staff time to perform collections activities.


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Background:
Background Due to staffing levels, primary activities for staff include invoicing, issuing past due
notices, providing customer service, tracking receivables, program compliance, and program related
activities. Other than issuing past due and final notices, staff perform very little collection activity
due to unavailable time. Due to an established contract with our collection agency, we heavily rely on
them to collect after our requests for payment are unanswered. The contract provides for the agency
to add their fees to the amount owing COV, resulting in a ‘no cost’ service.


Historically, payments are typically remitted close to the due date, the longer time passes after the
due date, the chance of recovery diminishes. With increased staffing, collection rates would most
likely improve.


Business Licensing
Business licensing income has been severely impacted by 1) economic circumstances that have
resulted in the closure of many businesses and, 2) ordinances that have allowed operating an
estimated 2,000 businesses a license exemption that reduces license income by at least $175 per
business, annually ($350,000). The City of Vancouver cannot control the path of the difficulties
that plague local businesses because of the economy and is not likely to rethink its exemption policy
for businesses earning less than $12k annual gross receipts within the city limits.


Monitoring and auditing unlicensed businesses has been addressed to good effect in the past, but is
currently neglected because staff are unable to give proper attention to it and also maintain current
duties necessary to operate the Business Licensing Dept.


Business licensing staff is addressing existing delinquent accounts, resulting in payment, exemption,
or discontinuation of business accounts. One staff member contacts businesses with past due
licensing accounts, maintains the status of each account, and implements necessary collection actions
to ensure business response, including, after several in-house attempts, turning delinquent accounts
over to a collection agency.


Auditing and enforcement aspects of licensing are largely neglected, which is unfortunate because
there are many businesses that are operating in the City of Vancouver without required licenses,
which negatively impacts City revenue.


This revenue source was given attention in Feb 2006, under the First Grant program. Finance hired
a staff member whose job was to locate unlicensed businesses. It was successful because she was
able to give proper attention to unlicensed businesses.



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Total revenue generated in 2006 for the First Grant program:                            $153,575.
Total revenue generated in 2007 (past due collection & unlicensed)                      $xxxxxxx
                                                                                        $xxxxxxx
Total revenue generated in 2008 (past due collection & unlicensed)                      $xxxxxxx
Total revenue generated in 2009 (past due collection & unlicensed)                      $xxxxxxx



Ideally, these ongoing projects would result in unearthing licensing revenues previously unknown and
unaddressed. For example,


             In one instance last year, a staff member auditing accounts discovered that a major business
             was paying a minimum surcharge fee. This discovery unearthed what became a $14,000
             revenue increase to the city, annually!


Solution
Solution 1:                Make no change, continue with current practices.


Solution 2:                Evaluate current collection practices and determine whether process changes could
result in increased time dedicated to audit compliance.


Solution 3:                Add to staff to perform collection activity including Business License compliance
audit.


Recommendation:                         Solution 2.


Issue 6: We need to enhance the education of and outreach to locally operating businesses
regarding the city’s business license and surcharge program to increase compliance and
associated revenues.

Background: Although we cannot currently quantify the degree of the problem, business licensing
Background
staff are well aware that there are businesses operating in the city limits that are not in compliance with
city licensing ordinances. We know this because of complaints from other businesses that are in
compliance, and from customers who call to inquire if certain businesses are licensed.


It affects morale when business owners observe competitors operating businesses without a license,
leaving them frustrated that they out of pocket do what others do for free, and without consequence.




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In addition, there are legitimate businesses that lose job opportunities because they are not licensed
and, due to lack of education, do not realize they need one. When a caller asks about the license
status of a business, it does not serve them well to get a negative report from the city government.


Research reveals that businesses are often licensed by the State of Washington, but not the City
of Vancouver. No doubt some believe that the State license is all they need.


A number of State licensed businesses are located outside of the city limits, but conduct a portion
of their work within the city and therefore need to be recognized as such either by the acquisition of a
license or an exemption.


While similar to Issue 5, it deserves specific attention. Over a period of time, licensing staff has
collected a list of businesses that need to be contacted. Because of more pressing duties, staff has
not been able to give management of this list proper attention. In several cases, where businesses
have been contacted, owners are quick to comply. The high compliance rate upon contact implies
that the problem could, to a great extent, simply be ignorance of city ordinance by local businesses.


Due to existing workload, much of the work that would generate additional revenue is not undertaken.
Whether the challenge is to find a way to add a staff member or to reconsider existing licensing
staffing priorities, educating our local businesses deserves city consideration.


Solution 1:                Enhance education and outreach efforts within existing resources. Conduct
research of other WA cities to evaluate their methods of public outreach. Work with Department of
Licensing to create and provide brochure, licensing FAQ’s, and/or referral information. Evaluate
current COV web information to determine if information is thorough, clear and concise or if
updating is necessary.


Solution 2:                Continue with current processes. Provide information as requests are received.


Solution 3:                Add new staff resources to contact businesses off the list, plus expand education
and outreach. Dedicate staff to create marketing/public outreach campaign.


Recommendation:                         Solution 1. Due to budget issues, preferred solution 3 is not feasible.



Issue 7: Irreplaceable original cemetery records dating back over 100 years are used for
everyday reference. They are at a high risk for damage or loss, and there is no backup to the



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data. We have had several meetings with IT to establish getting these records in an
alternative, non-paper database.

Background: Public Works/Operations staff operates and maintains three city cemeteries. All
financial transactions are forwarded to Customer Service FMS for receipting with deeds and
related documentation forwarded to A/R staff. A/R staff log deed information, issue billings, and
reconcile and track payments and invoices. Both Operations and A/R staff have historically used
manual logs to track deed sales and other data. Some records date back to the 1890’s with pages
falling apart in ledgers no longer bound. While these records are safeguarded from theft, they are not
protected from fire or other damage. (In late 2009, a fire proof safe was ordered for Operations staff.)


Records maintained with Operations:
      o      Ledger of each burial
      o      Entry in cemetery data base of each burial


Records maintained with A/R:
      o      Grave purchase
      o      Name of deceased / location of burial
      o      Cemetery deeds
      o      Interment directives
      o      Requests to transfer title ownership
      o      Receipts for payments


During 3rd QTR 2009 an evaluation was completed to replace existing cemetery processes with a
database solution. Several meetings took place between Operations, A/R, and IT staff. The first
option considered was an in-house solution. The result of that analysis was that it would be
inadequate and the cost to implement and maintain would be higher than an outside system currently
in place and created for this purpose. Research for outside systems resulted in several options
available at a relatively inexpensive cost to the city. From a list of five possible vendors, a cost
analysis was performed with a preferred vendor selected. Implementation would involve project and
report design, recording all / conversion of existing data, setting up interfaces with Oracle, and
training. Funding options explored included grants, however, further research is necessary to
determine whether grant dollars can be utilized for this type of program. The city’s First Grant
Program is presently on hold due to budget issues, should this program resume, this option for
funding (or partial funding) should be explored.


Due to the high risk of the existing records for damage or loss with no backup, it is critical to quickly
implement a change. This process is presently on the Schedule of Finance IT Priorities ranked as


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#19. It is anticipated this project will take 1 month of IT time commitment to implement, there is
presently no expected completion date.


The citywide Management Leadership Team / Horizons is presently evaluating all city services and
programs due to the present and future budget situation. The outcome of this analysis could result
in outsourcing the cemetery processes. It is anticipated a decision will not be made until early 2010.
Due to this evaluation and the budget, further evaluation of this project is on hold.


Solution 1:                Continue with current processes. Store all records in locking, fire-proof cabinets,
with keys available only to appropriate staff and supervisor/manager.


Solution 2:                Wait for outcome of MLT Horizons evaluation, proceed with direction as
recommended. Should the decision be to not outsource, further explore grant options. Ensure
priority ranking on the IT FMS schedule is maintained or improved.


Solution 3:                Due to the critical nature of this situation, proceed with the selected vendor and
implement system for database storage. Recommend moving priority ranking higher on the IT FMS
schedule, implement by 2ndQTR 2010.


Recommendation:
Recommendation:                         Solution 1 and 2. While solution 3 is the best solution, due to present
budget constraints, this is not feasible.



Issue 8: Mail handling needs to be more automated for A/R billings and notices. We are
working with determining the cost/benefit analysis of forwarding some of these processes to
the an internal department that provides this type of service, or an outside business.

Background: As mentioned in Issue 1, A/R issues approximately 40, 350 invoices each year
representing 3,362 per month. The following is a list of the major invoice groups issued in 2008
(which represents a typical year):


                   By Item Count                                                             By Dollar Volume
 Alarms                      8,456                                     $268,495   Projects 345        121    $7,492,962
 Business License            8,211                                   $1,019,437   Grant 330            59    $7,236,279
 Business License
 Surcharge                   8,008                                    $352,475    REET                2     $4,983,192
 Loans                       3,917                                    $297,650    Solid Waste       130     $4,698,734
 Stay of Proceedings         2,499                                    $149,287    Fire              122     $2,500,658
 Airport                     1,974                                    $604,027    Transportation     12     $2,225,496
 Parking                     1,688                                    $511,706    Grant 108          19     $1,534,995
 Senior Messenger            1,184                                    $272,567    Misc              294     $1,462,654


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                                                                                   Business
 Fire Inspections                                  1,155                $134,127   License              8,211     $1,019,437
                               Total:            37,092              $3,609,771               Total:   8,970    $33,154,407


Some invoices are mailed with the assistance of support staff which involves pre-stuffing envelopes
with returns which improves the efficiency of mailing once the invoices are printed. The majority of
invoices have either additional documentation inserted with the invoices or require special handling.
An example is Business Licensing, the surcharge and renewals are included on one invoice,
exemption and change of address forms are included. For parking, permits are included with the
invoices. For past due invoices, information is included regarding collection agency referral. Staff
perform a cursory review of invoices and pull those that require further review or research. Grant
invoices are typically forwarded to accounting staff in order for them to include additional
documentation before mailing.


Mailing options to consider are:
      o      The Print Shop
      o      Utilities
      o      An Outside Vendor


The cost to create and issue an invoice from A/R is $9.88 (not fully loaded). Printing and mailing is
factored into this cost. It is estimated by staff the time spent per month on mailing invoices is 4%.
        annual                              approximately
Present annual cost for mailing invoices is approximately $14,441.96 (4% of 2008 A/R hourly rate fully
loaded plus 30% admin support; cost for the folding machine in 2008 was $146 for maintenance).              The folding machine
was purchased more than 10 years ago, it is anticipated it will be necessary to replace this within the
next 5 years, approximate cost will be $xxxxx shared amongst four departments, A/R, A/P, Payroll,
and Parking Services.


In 2009, the utilities division created a mail center to create and mail utility invoices (previously
performed by an external vendor). It is the intention to utilize an internal department or an outside
business to mail out parking citation notices as well as A/R invoices. They have the ability to include
inserts and mail as instructed by invoice type. A full cost/benefit analysis will be performed. If the
cost is $.20 per item (excluding paper and postage), the annual cost for mailing invoices by the mail
center will be approximately $8,070.00.


There are concerns from A/R staff in having the mail center perform this service. It is the intention
to allow staff the ability to review the print jobs before forwarding to the mail center. In doing this,
there will be added time taken to view and remove items, therefore any time savings would be negated
or greatly reduced.



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Solution 1:
             Continue with the full cost/benefit analysis for an internal department.
             If it’s found there is a cost benefit to send the print jobs to an internal department, implement
             process with parking notices first.
             Determine which invoice types may not be good candidates to send (those needing
             substantial A/R intervention).
             Ensure utilization by 2nd QTR 2010.
             Perform evaluation for invoice types that are not good candidates and determine whether
             processes can change in order to utilize this service.


Solution 2:                Continue with current processes.

Recommendation:                         Solution 1. If the cost/benefit analysis should prove a cost savings could not
be achieved, Solution 2.



Issue 9: The city only offers on-line payment options for recreation, (limited) building permits,
utility bills, and parking citations. (iReceivables will address on-line payments for invoices with the exception
of Loans and Alarms.)

Background: The on-line payment option is the most cost effective payment method the city can
offer. Offering this payment option to customers increases the potential for improved collection
rates. Utility web payments was implemented in October, 2008, and yields an average 10% of total
utility payments (based on data from July, Aug, and Sept 09). Parking web payments was implemented in
Sept, 2009 and thus far yields an average 5% of total parking payments (based on data from Oct 09). It is
the desire to implement a city-wide portal for customers to pay A/R invoices as well. This project is
presently on the Schedule of Finance IT Priorities, ranking of #37 (the bottom of the list).
Additionally, iRecievables is on the list as item #34. iReceivables will address on-line payment
options for invoices but will not address Loans and Alarms.


Approximately five years ago, it was determined implementation of a city-wide portal would be in the
range of $500,000. While this payment option would be an improvement in efficiencies and customer
relations, the cost is resulting in the low priority ranking and essentially cost prohibitive in the current
and near future to proceed.




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Solution 1:                Due to the cost and the present budget situation, do not proceed. Ensure this
project remains on the IT priority list with a low ranking. If funds should become available, proceed
with implementation. In the meantime, add to future issues.


Recommendation:                         Solution 1. Due to the present budget situation and the cost to implement,
there is no other reasonable solution.


Issue 10: Response from the City Attorney’s Office on requests for advice is slower than our
customers find acceptable.

Background: Responses from the City Attorney’s Office for assistance or guidance are oftentimes
slow, and, in some instances, never resolved. While burdens are placed on all staff to perform at
heightened levels, guidance by the law department is crucial in providing exceptional customer service
and accomplishing our responsibilities. Failure to obtain the necessary guidance is a detriment to
productivity and hinders our ability to assist customers. This results in a negative portrayal of city
government to the public.


Examples of current issues are:
      o      Cemetery – request from 2 years ago, not resolved
      o      Loans – no response in some instances
      o      Business Licensing – rental properties and credit unions – partial response received


There are many instances where the law department has quickly helped to resolve issues or provide
program guidance. One example is the Business Licensing and surcharge program guidelines and
ordinances.


Solution 1:                Make no change, continue with current practices.


Solution 2:                Recommend the law department adds staff dedicated to A/R issues.


Solution 3:                Create or recommend the law department creates an ‘Issues’ list to include current
issues, date requested, status, and expected date of completion. Follow up with law department staff
if resolution or completion dates are not achieved and/or recommend prioritization.


Recommendation:                         Solution 3. Conduct outreach with law department for best approach to
implement. Implement by 2/01/2010.




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Issue 11: Should the city be in the loan business or should loans be made by financial
institutions?

Background: As an incentive for citizens to connect to sewer (from septic) to preserve ground water,
the city established a Sewer Connection Incentive Program (SCIP) in 1993 (VMC 14.08.035
requires connection). Between 1993 and 1997, it was determined the sewer penalty charge was not
cost-effective in encouraging property owners to connect. In 1997, HJR 4209 was approved by
voters authorizing local governments to assist the public through financial assistance (some citizens
may not have the means to obtain financing through conventional methods). Ordinance M-3386
adopted in September 1998 expanded eligibility and enhanced financial assistance to further
encourage connection.


The majority of customers connecting to sewer elect to take advantage of the SCIP loan program.
All loans are secured with a lien on the property. Presently, there are 365 outstanding SCIP loans
with a variety of re-payment schedules. Those economically disadvantaged may defer payments until
the property sells.


Intake forms are processed through Development Review Services. These are forwarded to A/R
to verify ownership and complete the qualification process. A/R prepares loan documents and
meets with the homeowner to explain repayment terms with an overview of all documentation, obtain
signatures, and provide step-by-step information the homeowner needs in order to complete the
sewer connection. After the connection is complete, amended documents are completed by A/R
which adds the cost for connection, and obtains signatures. A/R ensures all necessary
documentation is recorded with the auditor’s office (completed by administrative staff).


A/R records this information in the Application Software Products (ASP) loan tracking data
base. This is a stand-alone system (not interfaced with Oracle). Schedule of repayment is set up
based upon the terms in the loan documentation. Invoices are created from ASP and manually
receipted in Hansen. Due to the software, payments cannot be receipted at the automated
remittance processing center.


Tracking loans in ASP is very labor intensive. Payments are initially posted in Hansen, then posted
again in ASP at a volume of approximately 350 each month. Separate ASP reports need to be
completed and added to Oracle receivables. ASP is DOS based and a very outdated system.


In August 2006, an evaluation was completed to determine whether the servicing of these loans could
or should be outsourced. Due to the small loan portfolio, it was determined servicers available are
very limited. Two such servicers were identified with quotes to service as follows:


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             $43,000 to $50,000 per year (full service)
             $10,000 to $15,000 per year (full service)


In considering an outsourcing solution, the following issues need to be considered:


      o      Current union contract
      o      Ethical standards of outsourced servicer
      o      Compliance of associated VMC, RCW, Fair Debt Collection Practices of outsourced
             servicer
      o      Cost (both hard cost and staff cost to monitor the contract)


Replacing the current software was also evaluated. Two such solutions were identified with quotes
as follows:


             $4,452 per year - $5,000 to $6,000 start up cost
             $5,922 per year - $1,058 start up cost


Both solutions were web-based (company hosted), would enable payments to be processed by the
remittance processor, have customers in Washington and Oregon, and on the surface were viable
options.


Presently, Oracle offers a loan tracking module. This is on the Schedule of Finance IT Priorities as
issue #36. According to IT, it would take 2 months to implement with an estimated cost of less than
$200,000. It also might be possible to customize Oracle, however, this has not been fully evaluated.
It is preferable to use Oracle to centralize receivables and for reporting purposes.


Update 2009 Oracle Loans was in the 09-10 decision package but was pulled by budget.


Is offering loans a government responsibility? The Law Department and Public Works say “yes”.


Solution 1:                Continue with current processes. Keep Oracle Loans on the IT priority list as issue
#36. Complete feasibility and cost analysis with IT to determine whether customization of Oracle is
more practical. Once funds become available, move issue #36 to a higher priority and implement
ASAP.




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Solution 2:                Issue an RFP/RFQ/RFI to determine if there are financial institutions willing to be
a partner with the City to finance this program. If lender(s) are available, cost is reasonable, with
minimal staff time for administration, proceed with implementing. (Issue of concern is repayment. The lender
would have the lien on the property and could foreclose.)


Solution 3:                Further evaluate replacing the current software with a system other than Oracle. If it
is determined there are reasonable and viable options, proceed with implementing (once funds become
available).


Recommendation:                         Solution 2.


Issue 12: Should the city be in the Alarm business? If so, should we contract out
administration of alarm accounts?

Background: The alarm coordinator at VPD initiates alarm invoices in the CryWolf alarm tracking
data base. A/R completes the invoice process by printing and mailing. The majority of the invoices
are annual registration renewals but also include false alarms and late penalty assessments. Total
invoices issued are as follows:


             2007 7,726 $277,215                                     avg per invoice $35.88
             2008 8,456 $268,495                                     avg per invoice $31.75


Total payments received for this same period is as follows:


             2007 $272,434                            (includes payments from collection agency)
             2008 $199,851                            (includes payments from collection agency)


CryWolf has been in place since 2007, prior to that, the alarm invoices were issued from Oracle.
CryWolf was necessary in order to improve tracking options (i.e. appeals and false alarms) and
reporting. In addition to issuing invoices, A/R processes the daily payment interface, prepares
journals, posts revenue, runs the late charge process, forwards accounts to collections, and reconciles
CryWolf with Oracle GL.


While the overall funds collected pay administrative costs, it does not pay for the cost of police
response time. Based on an analysis completed in October, 2009, it was determined 95.3% of the
alarms are false leaving 4.7% as valid alarms. The analysis determined many of the false alarm fees
assessed are waived. The Police Department has addressed this concern in their Business Plan.



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They are trying to improve processes as well as evaluating whether they can implement a ‘verification’
of alarm prior to responding. The ‘verification’ would be completed by the security alarm company,
thus reducing unnecessary time spent responding to false alarms.


Solution 1:                Continue with current A/R practices.


Solution 2:                Continue with current A/R practices. Evaluate in 2010/2011 whether the annual
renewal fee of $20.00 should be increased.


Recommendation:                         Solution 2.


Issue 13: How can we standardize and simplify invoicing for various services such as Parking
and Fire inspections?

Background: New invoice types are periodically created to support programs. One recent invoice
type that had a significant impact on A/R is fire inspections. In 2008 and 2009, the Fire
Department established a fire inspection process for businesses to determine code compliance. The
business is assessed an inspection fee. Should the business be out of compliance and fail to meet
compliance before an established deadline, a code violation is assessed. The inspection fees and
code violations are tracked in the Firehouse database. In 2008, an interface process was developed
                                                                                        process.
to create invoices from Firehouse in Oracle, thus automating what is typically a manual process
Thus far the fire inspections are being interfaced as well as payments from Hansen back to
Firehouse, the code violations have yet to be implemented as well as inspections for hazardous
material. After identifying and correcting interface issues, the process was fully operational in early
2009. As of 3rd QTR 2009, there was a minor issue with creating invoices on inactive Oracle
accounts. The issue is when receipting payments, the payment interface process to Oracle will reject
the payment due to the inactive status. The correction process involves staff from Customer
Service as well as A/R. It is anticipated this issue will quickly be resolved.


Fire inspection invoice volume is as follows:
2008 1,155 $134,127                                   96 average per month
2009 686                   $211,129                   76 average per month   (thru 3rd QTR)


Fire code violations invoice volume is as follows:
2007 157                   $8,633                     13 average per month
2008 159                   $27,634                    13 average per month
2009 87                    $20,019                    10 average per month   (thru 3rd QTR)




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Parking permit invoicing is coordinated with FMS Customer Service. Should a customer elect to
be invoiced or set up on an automatic payment deduction from their bank account (via ACH), the
request forms are submitted to Customer Service and forwarded to A/R. On a monthly basis,
Customer Service forwards permits to A/R which are issued to customers with their invoices.


Update In late 2009, discussions are underway to invoice or ACH an additional 160 customers per
month in VancouverCenter parking garage (Lot 18). The current process takes approximately 8
hours per month to complete, the additional invoicing will take staff an additional 9 hours per month to
complete.


It is the intention to implement a new parking permit module in T2 PowerParkFlex (the parking
citation tracking system / PPF). This project is on the Schedule of Finance IT Priorities as issue
13. IT anticipates this project will take 2 months of IT time, overall the project will take approximately
10 months to fully implement. The project plan will involve staff from IT, Parking Services, Customer
Service, and A/R.


The project involves many aspects:
      o      customer accounts are established in PPF
      o      hang tag permits will be replaced with static cling permits
      o      customer pays each month to renew / payments are updated on the bar coding of the permits
      o      enforcement officers read the bar code to verify payment
      o      other than the initial purchase, customers will no longer need to come to Customer Service to
             purchase their monthly or bi-monthly permit
      o      customers can access, update addresses, and pay for renewals on-line
      o      customers will have more payment options with discounts as an incentive thus reducing # of
             transactions
      o      manual tracking of permit sales and customer data will be replaced with system tracking
      o      creating invoices in PPF and interfacing to Oracle will be evaluated


It is anticipated there will be an increase for invoicing and ACH. Web processing will be the
preferred method. If the customer is unable or does not prefer this method of payment, ACH will be
highly encouraged. It is anticipated the savings for Customer Service will be approximately 400
permit sales per month which represents 67 hours. Total permit sales are approximately 650 with
VancouverCenter adding another 160 per month (in 2010). The savings could easily exceed 400
sales each month. While the greatest benefit will be achieved for Customer Service and Parking
Services, A/R may have more invoicing as a result of this implementation. If the payment election is



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ACH, however, A/R will no longer need to mail out the permit each month. In addition, if invoices
are created in PPF and interfaced to Oracle (much like the Firehouse interface), A/R can expect
efficiencies for the invoice process, especially for the ACH customers.


Parking invoice volume is as follows:
2007 1,669 $818,452                                   139 average per month
2008 1,688 $511,706                                   141 average per month
2009 1,204 $345,666                                   134 average per month (thru 3rd QTR) ( approx 50% are ACH)


Solution 1:                Follow up with IT and Fire Dept to ensure the automated invoice process is created
for code violations and hazardous material inspections and fully implemented by 2nd QTR 2010.
Follow up with IT and Parking Services to ensure parking permit module is fully implemented by 3rd
QTR 2010. Evaluate other types of invoices to determine whether automation between
departments could be achieved.


Solution 2:                Continue with current practices. Due to budget shortfalls, do not anticipate or
expect improvements due to higher priorities.


Solution 3:                Due to the beneficial staff savings, add additional staff to complete the Fire invoicing
and Permit module in an expedited manner.


Recommendation:                         Solution 1. Proactively follow up with IT and Parking Services (for the
permit module) to ensure project plan objectives and deadlines are met.




14. Future Issues

      o      Oracle upgrade scheduled May 2010
      o      Photo Red Light Program
      o      District Court tracking system for city issued infractions (model the Parking Citation
             program process)
      o      If funds should become available, implement web payment option



15. Process Descriptions and Flow Charts

Tab A - Customer Service & (walk-in & telephone inquiries)
Tab B - Collections


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Tab     C - Invoicing
Tab     D - Account Maintenance
Tab     E - Reconciliations
Tab     F - Reporting
Tab     G - Payments – reconciliation, post to subsystems, etc.
Tab     H - Write-offs
Tab     I - Refunds
Tab     J - ACH file settlements (Submit ACH files)




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Tab A - Customer Service

                                                                 Customer Service

Customer service is provided to internal and external customers. Customers are responded to
timely, typically within 24 business hours, with either a response to their question, referral, or
indication further research is necessary with an estimate of when a response will be available. At
all times, staff conduct is professional and courteous in accordance with the Operating
Principles.

Source of customers:
      Phone
      Walk in
      Referral
      Correspondence
      Email
      Fax

Types of service provided:
      Guidance on processes
              (examples: how to request an invoice, timeline goals for invoice issuance,
              payment terms)
      Respond to problems, provide solutions
      Research financial transactions and background information
              (examples: invoice and/or customer account status)
      Interpret and explain rules and regulations
              (programs such as business licensing, SCIP and other loans, alarms)
      Provide payoff quotes or amount owed to satisfy debt
              (examples: loan payoffs and stays)
      Referrals
              (examples: external licensing agencies, collection agency, other departments)
      Questions or disputes from the collection agency, provide resolution




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Tab B - Collections

                                                            Collection Procedures
Preparation

Run the Unapplied Payments Not Equal Zero report either daily or weekly
Apply any outstanding unapplied payments
Run the Aging 4 Bucket Detail report
Determine whether maintenance is necessary (i.e. invoices with less than $1.00 owing)
Complete necessary maintenance

General Rule

If unpaid at 30 days after due date:
        Assess late penalty (business license renewals, airport, LID loans; assess at 60 days after
        due date for alarms)
        Issue friendly reminder notice
If unpaid at 60 days after due date:
        Issue final notification that if unpaid at 90 days after due date will be forwarded to
        collection agency resulting in additional costs
If unpaid at 90 days after due date:
        Refer to collection agency / code the account with a “C1” identifying the account has
        been assigned to the collection agency

Exceptions to General Rule

Grants
If unpaid 1 to 30 days after due date:
        Issue a statement with copies of invoices and/or specific grant requests previously
        submitted
If unpaid 31+ days after due date:
        Refer the account to Grant Accountant to contact the agency

Projects
If unpaid 1 to 30 days after due date:
        Issue a statement with copies of invoices and/or specific backup documentation
        previously submitted
If unpaid 31+ days after due date:
        Follow up with Projects Accountant, Clark County, and/or other agency

Parking Permits
If unpaid at the time of issuance of the subsequent month parking permit:
        Issue a friendly reminder notice, indicate a permit will not be issued until the account is
        brought current



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If unpaid at 30 days after due date:
        Issue final notification that if unpaid at 60 days of due date will be forwarded to
        collection agency resulting in additional costs
If unpaid at 60 days after due date:
        Refer to collection agency / code the account with a “C1”

Alarm Renewals
Same as General Rule except a verification is completed to determine if the customer still owns
the property. This is typically completed when mail/invoices are returned undeliverable and
performed by the alarm unit / VPD. If the customer has sold the property prior to the renewal
date:
       Complete a credit memo.

Code Violations
Initial invoice provides for payment due within 30 days / includes disclosure if unpaid within 30
days after due date, will be forwarded to collection agency resulting in additional costs
If unpaid at 30 days after due date:
         Refer to collection agency / code the account with a “C1”

Septic Dump
In addition to regular collection procedures,
        Call Viola Water Lab to stop dumping activity. Once payment is received, call Viola
        Water to re-activate dumping privileges.

Cobra
If unpaid at 1 to 30 days after due date:
        Issue statement showing outstanding balance due past due
If unpaid at 31 days after due date:
        Terminate coverage

SCIP Loans
If unpaid at 30 days after invoice date:
        Issue statement with friendly reminder to pay
If unpaid at 60 days after invoice date:
        Issue statement with please remit notice
If unpaid at 90 days after invoice date:
        Issue statement with first water shut-off letter (certified) stating payment is due by the 1st
        of the following month or water will be shut off by the day prior to the next invoice date
If unpaid at 91-103 days after invoice date:
        Issue statement with second water shut-off letter, final notice
If unpaid at 104-115 days after due date:
        Notify utility staff to shut off water

Rehab / LID Loans
If unpaid at 30 days after due date:
        Issue statement with friendly reminder to pay



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If unpaid at 60 days after due date:
        Issue statement with please remit notice
If unpaid at 90 days after due date:
        Issue statement with letter indicating if unpaid will be forwarded to legal department for
        further action
If unpaid at 105 days after due date:
        Request legal department to issue a friendly letter requesting payment
If unpaid at 135 days after due date:
        Issue Notice of Intent to Foreclose
If unpaid at 165 days after due date:
        Request legal department to commence foreclosure (as prescribed by LID foreclosure
        process)

Business Licenses
Past Due Invoice. Monthly (if unpaid ±10 days from initial due date), print and send a “past
due” renewal invoice to each delinquent licensee that was scheduled to renew in the previous
month.

7-Day Letter. Monthly (if unpaid ±40 days from initial due date), print and send a “7-day” letter
to each delinquent licensee.

Business Status Review. Approximately 10 days after the 7-day letter was sent, or as soon as
possible thereafter (if unpaid ±50 days from initial due date) prepare an Oracle Discoverer report
of unpaid invoices – usually for one month at a time. Export report data to Excel and use this
spreadsheet to track information developed through calling/reviewing each delinquent
licensee/business.

Contact each delinquent licensee and/or review other available information to determine whether
or not the business is still operating in the City and, if it is -- or if it appears to be -- determine if
it could meet one of the criteria for being exempt from the City business license under VMC
5.04.075.

      For a licensee that claims to no longer be operating in the COV or, through research, does not
      appear to be operating in the COV, close the business license account in Oracle.

      For a licensee that is confirmed to be operating in the COV or, through research, appears to
      be operating in the COV, communicate with the business owner or appropriate representative
      and take necessary actions to expedite the renewal payment (e.g., send a “courtesy” copy of
      the past due invoice attached to an email, fax, or letter of transmittal in which you specify a
      new payment deadline, OR expedite the exemption claim process, if applicable (e.g., send
      another copy of Determination of Exemption Checklist and specify a deadline for response).

      For a business that claims to be exempt from the City business license under VMC 5.04.075
      and submits a completed Determination of Exemption Checklist, close the subject Oracle
      account and add the business name and related information to the “Exemptions Log”
      maintained on the shared ‘I’ drive.



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      For a business that appears to be exempt from the City business license under VMC 5.04.075
      but does not submit a Determination of Exemption Checklist, close the subject Oracle
      account and add the business name and related information to the “Exemptions Log”
      maintained on the shared ‘I’ drive; noting it is an “Administrative Exemption.”

Penalty Notice. If a licensee is not responsive to your efforts to communicate regarding the past
due invoice, but it appears the business is still operating in the City -- OR -- if the licensee fails
to pay by the latest specified deadline, then prepare and print a Notice of Director’s Finding and
Notice of Director’s Review Process or “Penalty Notice” to send via email, fax, or letter of
transmittal along with a “filled in” past due renewal invoice and newly generated “late penalty”
invoice.

      Filled In Past Due Invoice. Print out the past due invoice and fill in the surcharge and total
      due amounts based on the surcharge paid in the previous year, or other available information.

      Late Penalty Invoice. Calculate the late penalty charge by multiplying the total business
      license fee (base fee + surcharge) by ten (10) percent, but in no case shall it be less than $25
      per year. Set up and print out a business license late penalty invoice in Oracle for this
      amount; setting up the due date as 16 days from the invoice date.

30-Days Notice Before Collections. If a licensee fails to submit a Request for a Director Review
form within 14 days of the date of delivery of the Penalty Notice and fails to pay the total due
within 21 days of the date of the Penalty Notice (allowing 5 days for mail), prepare and send said
licensee a Notice of Past Due Business License Charges and Notice of Possible Collections
Action for Non-Payment Within 30-days of this Notice (also called a “30-Days Notice Before
Collections”). (Note: If the licensee submits a Request for Director Review form as allowed, the
following procedures for the 30-Day Notice Before Collections and the Collections Agency are
suspended until such time as the procedures are completed in accordance with VMC 5.04.180.)

Collections Agency. If a licensee fails to pay the total due within 35 days of the date of the 30-
Days Notice Before Collections (allowing 5 days for mail), transmit a copy of the 30-Days
Notice along attachments to the City’s contracted collections agency for further collections
action.




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Tab C - Invoicing

                                                                         Invoicing

Types of invoice requests, supporting documentation, and originating staff or department are as
follows:

Airport                                                              Lease contract from Airport Manager
Alarms                                                               Alarm unit
Business Licenses / Surcharges                                       New business license application
Cemetery                                                             Service information transmittal from cemetery staff
Cobra (Medical)                                                      Billing request form from Human Resources
Code Enforcement Violations                                          Billing request form from code enforcement staff
Fire Code Violations                                                 Billing request form from fire code enforcement staff
Fire/Equipment Repair                                                Billing request form from fire staff
Fire Inspections                                                     Email from fire staff / interface process
Grant Billings                                                       Billing request form from accounting staff
Loans
        LID's                                                        Assessment Roll
        SCIP                                                         Intake form from Development Review Services
        CDBG/Rehab                                                   Loan documents from CDBG
Miscellaneous Invoices                                               Billing request form from originating department
        Fire Shop/Equipment
        Downtown Redevelopment
        REET
        Police Training/SWAT
        Risk Management/damage
Parking Permits                                                      Application for Parking Permit from Customer Service
Project Billings - County                                            Discoverer Reports pulled from the Oracle Projects Module
Retiree Medical                                                      Billing request form from Human Resources
Senior Messenger                                                     Run sheet monthly from listing advertisers and price
                                                                      advertisement representative
Septic Dump                                                          Monthly discharge log sheet from Veolia Water
Special Licenses                                                     New special license application
Stay of Proceeding                                                   Court documents from Law Department
Work Orders                                                          Billing request form from originating department


                                                                      Oracle Invoices
Single Invoice Request

      1. Set up new customer if necessary
      2. Transactions
             A. Class – Choose Invoice
             B. Type – Appropriate Invoice Type (fund)
             C. Bill To – Customer Number


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                    D.     Line Items – Description, amount, tax if applicable
                    E.     Distributions – Revenue code
                    F.     Electronically attach request backup – Billing request form, email, etc
                    G.     Complete
                    H.     Print / mail

Recurring invoices may be copied from prior month

Transaction Summary
   1. Call up prior month invoice and choose Copy To – Choose “Monthly”
   2. Print/ Mail


                                                            Alarm Billings - Crywolf
Renewals

      1. Run Process in Crywolf to create invoices for appropriate month
            A. Prepare Expiring/Expired Letters
            B. Expiring Letters
            C. Alarm Registrations – Enter appropriate date range
            D. Process
            E. Print / Mail

False alarms, civil penalties and other misc invoices

      1. Run Process in Crywolf to create individual invoices as instructed by Alarm Coordinator
            A. Payment Entry Screen
            B. Registration number
            C. Add New Charge
            D. Select Invoice Type
            E. Print / Mail

                                                            Fire Inspection – Oracle
      1. Receive email from FMO with dollar and invoice count
      2. Run Process in Oracle to create invoices
            A. Control – Requests – Run – Create Firehouse Invoices
            B. Audit results
            C. Interface – AutoInvoice – AutoInvoice Master Program – Fire
            D. Audit results
            E. Print / Mail

                                                                     Loans – ASP

      1. Type in Account Number and Installment number to be billed


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      2. Adhere past due collection stickers for “friendly reminder”, “Please Remit”and
         “Delinquent”. If delinquent enclose shut-off letter “I: Asset_LiabilityMgmt/AR
         Team/Loans/SCIP LOANS/COLLECTIONS/SCIP DISCONNECT NOTICE #1.doc
      3. Print Statement / Mail


                                 New Business License Account Invoices – Oracle
After each new Business License account is set up in Oracle (see Tab D), a License Invoice and
a “dummy” Surcharge Invoice are set up in Oracle to apply the initial payments to.

      Transactions
         Class – Select “Invoice”
         Type – Select “Business License
         Ship To – Enter Customer Number, Tab
         Line Items – Description: “Business License Renewals”; Quantity: “1”, Tab, SAVE
         COMPLETE
         Write Transaction (Invoice) Number on License Application

Run Surcharge Program to automatically attach “dummy” Surcharge Invoice to each new
account, using the date that the new account and Business License invoice were set up.
       Collections – Single Request, OK
           Name – select “COV - Business License Surcharge”
           Enter start and end dates (both should be same as date new account and Business
           License Invoice are set up), OK, SUBMIT
               Before running program, check to see if all new license invoices show up on the
               interface lines: Select Control – AutoInvoice – Interface Lines – Control F11
       View – Requests -- Submit New Request
           (Type A, then tab), Select “AutoInvoice Master Program”
           Invoice Source: BUSTAX
           Date of Entry: enter date of account opening/new invoices, SUBMIT

Find license and surcharge invoice numbers for new accounts in Customer Accounts – Account
Details, write them on the Business License Application form, and then forward them to
Customer Service so they may apply payments.

Print and send license to each new licensee.

                              Annual Business License Renewal Invoices - Oracle
      1. From Oracle, print the Transaction Register for prior year – same month. (i.e. if putting
         on invoices for Jan ’08, print the report for Jan ’07)
                a.) Reports – Accounting – Single Request – choose Transaction Register and fill
                in the blanks
      2. On Oracle – go to Transactions – Batches and put on each business license invoice
         individually from the Transaction Register just printed.


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                     a. This is very time consuming. Number of invoices varies each month from 400-
                     2000.
      3.     Run Discover reports for AR – Businesses vs. BL Invoices to detect missing or
             unmatched invoices.
      4.     Add and delete invoices as indicated in the Discover reports.
      5.     Review Tickler File and make any corrections necessary
      6.     Run Surcharge Program to automatically attach surcharge invoices to all the renewal
             invoices.
                     a. On Oracle – Collections – Single Request – choose COV - Business License
                     Surcharge
      7.     Print all Invoices using a printer with duplicator capability
      1.     Fold and mail out the invoices in a white window envelope stuffed with a Determination
             of Exemption Checklist and a white return envelope.


Parks County Capital Billings
                                         th
On approximately the 10 of each month, County Parks expenditures are to be billed for the previous
month.
   • Before billing expenditures, confirm with Vanessa Sowders in Payroll that payroll expenditures
       have in fact been posted to Projects for the most recent payroll period.
   • Parks County Capital expenditures are associated with a range of task projects: Projects 032000-
       032299 are eligible for billing. In a typical month, there are approximately 10 projects that have
       billable expenditures that need to be invoiced, but this number can vary from month to month.

County Capital Billing Detail and Summary Reports

Parks County Capital Billing Summary:
    1. Log in to Discoverer Viewer.
   2. Click existing connection name link (e.g.”City Production”) , which will open the next page. Enter
       Oracle password and click “Connect” button.
   3. From the ‘List of Workbooks’ page,” select “TOWNM.PA-Parks Cty Cap Bill Summary.”
   4. On the next page, enter the Month being billed (e.g. JAN-06), and click “Apply Parameters”
       button.
   5. Once report output comes up, scroll to the bottom of of the page and click the “Printable Page”
       button.
   6. Check for negative amounts in the current billing column. If any exist, contact Maly
       Chandravongsri to determine how to proceed with the Project with a negative amount (include or
       exclude from billing?).
   7. Print two copies of the report, as once revenue has been generated in Projects, the report will
       no longer display the original dollar amounts for the month’s billing. Keep one copy of the report,
       and the other copy will be sent to the County with the invoices as backup.

Parks County Capital Billing Detail:
    1. If still in the Printable Page version of the Summary report in Discoverer, click Back button, then
       select “Workbooks” link as shown below. This will reopen the list of all available Discoverer
       reports.




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      2. Select “TOWNM.PA-Parks Cty Cap Bill Detail”.
      3. Enter the Month being billed (e.g. JAN-06), and click “Apply Parameters” button.
      4. Select the project number Page Item and run report for each Project listed on the Summary report
         output.




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      5. Once report output comes up, scroll to the bottom of of the page and click the “Printable Page”
         button. Reformatting the print orientation to Landscape may be necessary (File > Page Setup).
      6. Print two copies of the report for each Project that has billable expenditures. Keep one
         copy of each report, and the other copy will be sent to the County with the invoices as backup.

Verify that the dollar amounts in the detail and summary reports match each other for each
project.

Generating and Releasing Revenue
   1. In Oracle, “COV Projects AR Billing” responsibility, select “View” from the top menu bar, then
       “Requests.”
   2. In the Find Request window select “Submit a New Request.”
   3. Select “PRC: Generate Draft Revenue for a Range of Projects.” Enter the lowest and highest
       project numbers shown on the summary report. The “Accrue Through Date” must be the last
       day of the previous month. Make sure “Release Draft Revenue” is set to “Yes” and leave all
       other parameters as is.
   4. Select “OK” and then “Submit.”

Once the process has completed, review the output by clicking “View Output” button. In the output
window, scroll to the right, and on the right side of the screen should be the amount of revenue generated
for each project. If all amounts match, close out of Requests screen and move on to the next step,
Generating Invoices. If any revenue generation report amount does not equal the Project Summary
report, stop, alert Budget Office to advise next step. When contacting Budget, indicate the Warning or
Rejection Reason shown in the output file. Do not proceed until the item is resolved. Once Budget has
advised to proceed, perform the following steps:
     1. In the main navigation window, double-click on “Revenue Review”.



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   2. Enter the project number, and click Find. From the menu bar above, click View -> Record ->
       Last.
   3. The bottom line should be the erroneous revenue amount. Click the “Unrelease 1” button.
   4. Click “Run Request”, make sure “Regenerate Revenue” is selected, and change the “Through
       Date” to the last day of the previous month (this is the same as the “Accrue Through Date”). Click
       “OK”.
   5. Once request has completed, requery the Revenue Summary (Revenue Review) and navigate to
       the last record. Verify that the amount now matches the summary report, and click “Release 1”.
Generating and Releasing Invoices
   1. In Oracle, “COV Projects AR Billing” responsibility, select “View” from the top menu bar, then
       “Request.”
   2. In the Find Request window select “Submit a New Request.”
   3. Select “PRC: Generate Draft Invoices for a Range of Projects.” Enter parameters as shown
       below using the following guidelines:
            a. The bill through date will be the same as the “Accrue Through Date” in the process
                above, i.e. the last day of the previous month.
            b. The project number range will be the same as the one used for generating the revenue,
                i.e. the lowest and highest project numbers shown on the summary report.
            c. The Invoice Date will be today, i.e. the day you are generating the invoice.




      4. Select “OK” and then “Submit.”

Once complete, review the data by selecting the “View Output” field to ensure amounts are correct. If all
amounts match the Summary report, close out of the Requests window and proceed to the next step,
approving and releasing the invoices. If amounts do not match, the same process will apply as indicated
for the revenue generation process, i.e. contact Budget Office for resolution, etc.



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Approving and Releasing Invoices
   1. In the main navigation window, double-click on “Invoice Review”.
   2. In the Invoice area in the bottom right-hand corner of the window, change the Status to
      “Unapproved”, and click find. Click “Yes” when the decision window pops up. This will query all
      project invoices that need to be approved and released.
   3. Verify that the amount for each project matches the amount in the Summary report, and click
      “Approve 1” on each project line. When all project invoices have been approved, click Save.
   4. For each project line, click “Release..”, then click “OK”. Once all invoices have been released,
      click Save.



Parks County Work Plan Billing
The County Work Plan billing involves nearly the exact same process as the Parks County Capital
billings, with the exception of the reports that are run and provided as backup, and the fact that an
overhead markup is added. The County Work Plan is a single project that changes each year. The
numbering convention is as follows: 0318YY, where YY is the current year. For 2006, the Work Plan
project is 031806.

County Work Plan Billing Detail and Summary Reports

Parks County Work Plan Detail:
    1. In Discoverer, select “TOWNM.PA-Parks County Work Plan Detail” from the list of workbooks.
    2. Enter the month being billed, (e.g. JAN-06), and hit “Apply Parameters”.
    3. Once report output comes up, scroll to the bottom of of the page and click the “Printable Page”
       button. Reformatting the print orientation to Landscape may be necessary (File > Page Setup).
    4. Print two copies of the report, as once revenue has been generated in Projects, the report will
       no longer display the original dollar amounts for the month’s billing.

Parks County Work Plan Summary:
    1. If still in the Printable Page version of the Summary report in Discoverer, click Back button, then
       click on the link to the “Summary” worksheet (see below).




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      2. Enter the month being billed, (e.g. JAN-06), and hit “Apply Parameters”.
      3. Once report output comes up, verify that the grand total in the detail report is the same as the
         grand total in the “Cost” column of the summary report. Scroll to the bottom of of the page, click
         the “Printable Page” button, and Print two copies of the report. Keep one copy of the report,
         and the other copy will be sent to the County with the invoices as backup.

Generate and release revenue and invoices for the County Work Plan project in the same manner as
indicated for the County Capital billings (see pages 2 and 3).
County Work Plan Billing, continued

*IMPORTANT*: In addition to the County Work Plan invoice generated in Projects, a manual
invoice must be created in Receivables to bill overhead to the County.
    1. Invoice should be entered in essentially the same format as the invoice generated and interfaced
        from Projects, including the following fields:
            a. Invoice Type: Projects Invoice
            b. Customer: 1298 (Clark County)
            c. Location: PROJECTS
    2. Only one Line Item is necessary: “January, 2006 Work Plan Billing Overhead” (varies by period).
        The amount is 12.55% of the invoice amount generated in Projects.
    3. The distribution revenue account is as follows: 001.311007.330100.0000.0318YY (031806 for
        2006).

This invoice should be placed with the other County Work Plan invoice when it’s send to the County.




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Vancouver School District Billings
VSD billing information is received from James Fields, Recreation Coordinator, that displays the amount
to be billed for Lifeguard services to the Vancouver School District. In Projects, an Event is created, the
revenue is released, and finally the invoice is released. The VSD projects are 035002 (Jim Parsley
Center, or JPC) and 035003 (Propstra Aquatic Center, or PAC), and are billed every month.

Creating an Event

      1. In Oracle, “COV Projects AR Billing”, select Events -> Project.
      2. Enter the first project number and click “Find”. From the menu bar above, click View -> Record ->
         Last.
      3. When at the bottom line, click the down arrow key to create a new Event.
      4. Enter the same information as the fields above, changing only the amount and date information
         for the current period. The fields that will require entry are: Event Type; Date; Revenue Amt;
         Description; Organization; and account (see next step).
      5. Scroll to the far right to the column under the heading “[]”; click in the white box to pull the bring
         up the account window. Enter the accounting segments as shown below for each of the projects:
                  JPC (035002)
                        i. Fund:                     001
                       ii. Organization:             352418
                      iii. Location:                 2121
                      iv. Project Number:            035002
                       v. Revenue Object :           347600

                           Propstra (035003)
                                i. Fund:                             001
                               ii. Organization:                     352418
                              iii. Location:                         2123
                              iv. Project Number:                    035003
                               v. Revenue Object :                   347600

      6. When accounts have been entered, Save the new Event.
      7. Repeat for the second project.

Once Events have been created and saved for both Projects, continue to generate and release revenue
and invoices for the VSD projects in the same manner as indicated for the County capital billings (see
pages 2 and 3).




Interfacing Revenue and Invoices
Once all invoices have been released in Projects, they must be interfaced to Oracle Receivables. The
revenue associated with the invoices must also be interfaced to the General Ledger for posting.

      2. In Oracle, “COV Projects AR Billing” responsibility, select “View” from the top menu bar, then
         “Requests.”
      3. In the Find Request window select “Submit a New Request.”
      4. Select “PRC: Interface Revenue to General Ledger”.
      5. Leave all parameters as they are, and hit “OK”, then “Submit”.




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      6. Once the process has completed, click “View Output”. All the projects and corresponding
          amounts that are listed on the Summary report should be displayed in this output file. If not,
          contact Marshall Town in IT.
      7. Notify Parks accountant (Georgiana McNees) that revenue entry from Projects has been
          interfaced to General ledger. The accountant will need to import the entry and post it.
      8. From the Requests screen, click “Submit a New Request…”.
      9. Select “PRC: Interface Invoices to Receivables”.
      10. The only parameters that are necessary to enter are the project number ranges (example below)




      11. Click “OK”, then “Submit”.
      12. Once the process has completed, click “Vew Output”. All the projects and corresponding
          amounts that are listed on the Summary report should be displayed in this output file. If not,
          contact Marshall Town in IT.
      13. The invoices are now ready to be imported into A/R. Switch responsibility to “COV Receivables
          2”.
      14. Run “Autoinvoice Master Program”. The source will be “PROJECTS INVOICES”, and the default
          date will be the Invoice Date that was set in Projects (see previous page).
      15. Once invoices have been successfully imported into Receivables, switch responsibility back to
          “COV Projects AR Billing” and run “PRC: Tieback Invoices from Receivables” (no parameters to
          enter).
      16. Once Parks accountant has indicated that the Revenue entry has been posted, run “PRC:
          Tieback Revenue from General Ledger” from the same responsibility (no parameters to enter).
      17. YOU’RE DONE!!!




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    Accounts Receivable
         Invoicing



                Request
                                                                                                                                  Business
              Received for              Recurring Invoice    Alarm Invoice            Fire Inspection     Loans/ASP
                                                                                                                                License (BL)
            Customer Invoice




                                                                                                                                Is Customer
                                                                                                                               Pre-Existing?
              Is Customer                                                                                                                            No
             Pre-Existing?                  Review                                    Receive Email     Create Invoice
                                                              Run Cry Wolf
                                                                                      from Fire Dept
                                          Transaction           Process
                                         Summary from
                                          Prior Month                                                                           Yes                Set up
                               No
                                                                                                                                                  Customer
      Yes

                                                                                                                             Create
                                                                                                                          Renewal BL
                                                                                                             Print
                                                                                                                              and              Create New
                              Set up                                                                                      Surcharge              BL and
                                                                                       Run Oracle                           Invoice
                             Customer                        Create New or                                                                     Surcharge
                                                                                     Process/Create
                                                            Recurring Invoice                                                                    Invoice
                                                                                        Invoice
     Create
   Invoice by                                                                                           Adhere Stickers
      Type                                                                                                   and
                                                                                                        Documentation                          Send Email
                                         Copy Monthly                                                                      Print and           to CSR with
                                                                                                                              Mail                Cust &
                                                                                                                                                Invoice #’s


                                                                                                             Mail
                                                                                                                                         CSR
                                                                                                                                       Receipts
                                                                                                                                       Payment



                                                                                                                                       AR Issues
                                                                                Print Invoice
                                                                                                                                       Business
                                                                                   & Mail
                                                                                                                                        License




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     Accounts Receivable
     Invoicing for Projects




                     Parks County                                       Vancouver                                          Parks County
                     Capital Billing                                  School District                                     Work Plan Billing



                                                                                                                       Run Discoverer
 Run Discoverer reports:                     Run PRC
                                                                     Create and Event                                  Report: Parks County
 Parks County Cap Billing                 Generate Draft
                                                                        in Projects                                    Work Plan
                                           Revenue for a
                                                                     Module for Each
 1. Summary                              range of projects
                                                                         Project #                                     1. Summary
 2. Detail for each project#                 in Oracle
                                                                                                                       2. Detail



                                              Do totals
                         Yes                                                                                              Set on Oracle A/R
                                               agree?
                                                                                                                               Invoice
        Run projects
      module- Invoice                            No
      Review; Approve
         & Release                       Consult with proj
          Invoices                        accountant to
                                             resolve                                                                    Print & Mail Invoices



    Run Project Module
                                              Do totals
         Interface
                                               agree?                                             GCPD
      Revenue to GL
                                                                                              (Greater Clark
                               Yes                                                            Public District)
                                                 No


    Request Accountant                    Consult with IT
     to Import & Post                       to resolve                    New Projects                             Old Projects
         Revenue


                                                                     Run Discoverer Reports:
    Run Projects Module                                              GCPD Billing
                                               Do totals                                                   Receive Summary &
     Interface invoices
                                                agree?               1. Summary                            Detail from Parks
     from Receivables
                                                                     2. Detail                             Manager
                               Yes
                                                   No
                                                                        Set on Oracle A/R
      Run A/R Module                      Consult with IT to                 Invoice                             Set on Oracle A/R
         Interface                            resolve                                                                 Invoice



      Run A/R Module                                                   Print Invoice & Mail
                                                                                                             Print Invoice & Mail
                                               Print & Mail
        Transaction
                                                Invoices
          Register

                                                                      Run Projects Module-
    Once Accountant has                                              Capital projects Billing
                                              Run Projects
     Imported and Posted                                             Update for each Project
                                            Module-Tieback
    Revenue, Run Projects
                                             Invoices from
       Module – Tieback
                                              Receivables
       Revenue from GL




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Tab D - Account Maintenance

                                                            Account Maintenance
Opening a New Customer Account

Opening a new customer account is processed prior to creating new invoices. The process is
generally the same for all Oracle invoice types; the following is an example for opening a new
business license account.

Opening Business License Account - Oracle

In COV Receivables 2:
    Customers – Standard
       Enter new Customer Name, select Find, then New
       Note: If mailing and physical addresses are the same, only one address form and license
       Flex Field need to be completed. If mailing and physical addresses are different, one
       address form and Flex Field are required for each.
       Under Business Purposes/Usage if the mailing and physical addresses are the same, type
       the following and check “Primary” boxes for each:
           BILL TO:            LICENSE
           SHIP TO:            LICENSE
           DUNNING:            LICENSE
           STATEMENTS LICENSE
           SAVE
           Note: If the mailing and physical addresses are different, set up the “Bill To” address
           form first, and then the “Ship To” address form after setting up the Flex Field – see
           below. In this case, the Bill To form would include the BILL TO, DUNNING, AND
           STATEMENTS usages as shown above, and the Ship To form would only include the
           SHIP TO as shown above.

             Select arrow box and set up Profile Transaction (New, Default, Profile Class“License”)
             Return to Business Purposes Tab
             Open Flex Field and enter business information, OK
             Note: if there are 2 addresses/forms, create the Ship To form and repeat the Flex Field
             information exactly as entered under the Bill To form.
             Go to “Communication” Tab and enter telephone number and email address as provided.
             SAVE

Address Maintenance – Oracle

Address maintenance is performed to update or add a Bill To, or update or add a Ship To
address. Note: for an account with a Flex Field (e.g., Business License account), if the Ship To
(physical) address is modified, it must also be modified on each Flex Field under Physical
Location.



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Discontinuing an Account - Oracle

Discontinuing an account is performed for various reasons such as verification that a business is
no longer in operation, a request for a license exemption has been filed, or cancellation of a
parking permit. See below for discontinuing an alarm account.

If there is an outstanding invoice or invoices on the account, first Credit Memo the invoice(s) as
described below under “Oracle Process / Credit Memo,” entering the reason for the Credit
Memo under “SPECIAL INSTRUCTIONS.”

Then open corresponding CUSTOMER ACCOUNT
Deselect Active Boxes (2 or 3 times depending if 1 or 2 addresses)
Under Addressee on each address form, enter the reason for the discontinuation (should be same
reason as used for the Credit Memo).
Under each Flex Field, enter END DATE.
OKAY, SAVE

Credit Memo / Moving a Credit Memo

Credit memos are processed to cancel an invoice that was incorrectly invoiced, to waive a late
penalty, to re-invoice for a different amount, or to re-invoice with a different budget number.
Moving credit memos are processed to apply to an unpaid invoice. All credit memos are
reviewed monthly by management evaluating purpose paying particular attention to large dollar
transactions.

Oracle Process / Credit Memo
TRANSACTION SUMMARY
      FIND
      ENTER INVOICE NUMBER
      ENTER CREDIT
      ENTER REASON - SELECT FROM OPTIONS OR ENTER NARRATIVE
      LINE 100% TAB (OR FILL IN NEGATIVE AMOUNT)
      MORE TAB – SPECIAL INSTRUCTIONS
      TYPE IN REASON FOR CREDIT MEMO
      SAVE
      COMPLETE

Oracle Process / To Move a Credit Memo (processed by supervisor)
CASHIER
      RECEIPT
      RECEIPT #: ADJ
      TYPE: STANDARD
      AMOUNT: 0.00
      PAYMENT METHOD: CHECK
      FLEX FIELD: NONE
      CUSTOMER #: _________TAB (FIELDS ARE AUTO-FILLED)



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     APPLICATIONS
     APPLY TO: DROP DOWN – SELECT CREDIT MEMO
     NEXT LINE ON APPLY TO: _________SELECT INVOICE #
     CHECK APPLY
     SAVE
RECEIVABLES 2
     CUSTOMER ACCOUNTS
     ACCOUNT DETAILS
     APPLICATIONS
     APPLY TO: 2ND LINE, DROPDOWN FOR INVOICE OPTIONS

Refunds

Refer to Tab I for process and procedure

Business License Accounts - Calls/Correspondence/Notes to File

In Oracle, for Business License accounts only, update the Calls/Correspondence tabs with notes
from phone or email conversations with the business owner or representative that affect the
account (e.g., change of address), or enter a “note to file” for an action taken on the account not
related to a phone call email (e.g., collection action). Under the Contact tab, select the Collector
Name, and enter the First Name and Last Name, Job Title and Phone Number. Under the
Response tab, enter Notes, then SAVE. (Note, no changes can be made to entry after it is saved.)

Loan Maintenance

Loan maintenance is performed in the subsidiary loan tracking system, Application Software
Products (ASP). Refer to the ASP program manual for detailed procedures.

Alarm Account Maintenance

Alarm account maintenance is performed in the subsidiary CryWolf data base and completed by
the alarm coordinator at VPD.




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Tab E - Reconciliations

                                             Oracle Reconciliation Procedures
To reconcile single invoice type:

      1. In Oracle, choose the COV Receivables 2 responsibility.
      2. Go to Reports – Collections – click on OK - Submit request – COV Aging 5
         Bucket Detail Report
      3. Order by = Customer – As of date = end of month – choose the Invoice Type you
         are reconciling for both Low and High
      4. Skip down to Show Receipts at Risk = Age
      5. You only need to print the last page of this report to get the totals.
      6. From the GL Accountant or Inquiry responsibility, go to GL Inquiry – Account –
         and enter the Accounting Period = the month and year you are reconciling then
         enter GL number (fund) that is associated with the Invoice Type and the Object
         of
      7. If the totals don’t balance, you have to go through each one to see where the
         problem is, and correct it.


Oracle Screen for Aging Report:




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                                                         Oracle Reconciliations / All

      1) Run the Discoverer Report - AR - Aging Summary GL Date for both GL balances and for
         outstanding invoices at the end of each month, and export this information to Excel.
      2) Sort the invoices by account, and then subtotal by each change in account.
      3) The invoice information is on one worksheet, and the GL balances are on another worksheet, in
         the same file.
      4) Sort the GL balances also by account. The file is saved on the I drive under the Treasurers
         name, and under AR by month.
      5) Add a column title to the GL balance worksheet, label it Oracle AR module. Add another column
         title for other modules, and a third column title for total other modules. The last column title is
         Difference, which is the total other modules minus the GL balance.
      6) From there, use the subtotaled invoice worksheet, and by being in the cell on the GL balance that
         corresponds to the invoice GL account, use a formula +the cell reference in the invoice worksheet
         that corresponds. Continue this until all of the invoice subtotals are captured in the GL account
         balance for Oracle AR module, and foot the total at the bottom.
      7) Either ask for reconciliations from the other modules, CryWolf, Parking, ASP, etc. or run reports in
         Class, in Hansen, pull the DRA receivable report, etc. and enter the balances from each of the
         other subsidiary ledgers.




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      8) After this, if there are differences, note the reason, or start researching. If it is an error that can
         still be corrected before the month is closed on the GL, prepare an entry to correct it, and have it
         posted. If it is a pure timing difference (refunds, corrections that have to be made in the
         subsidiary system which is corrected in the next month) all of this is noted in the reconciliation on
         the GL account balance worksheet.
      9) I make sure to print backup of the reconciliation, and the reports from the other systems, and any
         copies of corrections, and file all of this in my AR reconciliation folder.


How to Compile A/R Aging Summary Report from Discoverer Viewer

*Invoice Detail*

      1. Log in to Discoverer Viewer

      2. Open ‘AR – Aging Summary GL Date’workbook

      3. Select ‘Detail by Invoice’

      4. Enter As of Date (e.g. ‘30-SEP-04’), and Invoice Type and/or Fund, if desired. The
         report will take a few minutes to run. When completed, click the ‘Go’ button.

      5. Click the ‘Export’ button on the next 2 screens

      6. Select ‘Click to view or save’ and open

      7. Click ‘Enable Macros’

      8. Highlight all the data by clicking the box above the 1, left of column A

      9. Copy

      10. Paste to ‘Aging Summary Template1’

      11. ‘Crtl M’ will format by invoice type

      12. Balances displayed represent receivable (invoice) balances

*Balances*

      1. Log in to Discoverer Viewer

      2. Open ‘AR – Aging Summary GL Date’ workbook

      3. Select ‘Balances’

      4. Enter Period Name (e.g. ‘AUG-09’) and ‘Go’

      5. Select the ‘export’ button on the next 2 screens



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      6. Select ‘Click to view or save’ and open

      7. Enable macros

      8. Maximize

      9. Balances displayed represent GL balances


                                                               Alarms Reconciliation
Process is the same as above with the exception of running the Aging Report from the alarms
subsystem, CryWolf.




                              Reconciling the Business License Suspense account
                                           001.916000.369901.0000
      The original receipts for NEW BUSINESSES License surcharge payment are entered into the
      Business License Suspense account, then they are moved to the Surcharge account after the
      customer is set up in Oracle. The goal is for the balance in the SUSPENSE account to be
      zero! If the SUSPENSE account #001.916000.369901.0000 is NOT zero, then the items
      creating the outstanding balance must be researched and processed out of the account.


      1. Open the Excel spreadsheet I:\Asset_Liability Mgmt\A R Team\ BUSINESS
         LICENSING\BUSINESS LICENSES\SUSP Recon BL 2009\BL SUSP Reconciliation
         YTD (and the latest date).xls

      2. From Discoverer Viewer, run the following report:

                    1) Production
                    2) AR Revenue Tracking by Account
                    3) Invoice Payment Status




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                    4)
                    5) Enter the Receipt Date Low – 01-JAN-2009
                    6) Enter the Receipt Date High – through yesterday’s date
                    7) Enter the FUND #001
                    8) Enter the Org # 916000
                    9) Enter the Object # 369901
                    10) Hit Go
                    11) Click on Export on left side menu
                    12) Click on Export at the tope on far right side of screen
                    13) Click on “Click or view” tab
                    14) Click on Open tab
                    15) Click on Enable Macros at the prompt
                    16) Report appears at the bottom of the caption
                    17) Delete the following columns:

                                        Account String, Date Applied, Total Applied Against Invoice, and Invoice
                                        Receipt type.

                    18) Change the heading Pmt Status to Type
                    19) Row #2, Column A, type in: BL SUSP Reconciliation YTD thru (yesterday’s
                        date and year i.e. May 26, 2009) then bold it and red font
                    20) Go to the last row in the column “Amount”. The $ amount there is the YTD
                        (Year-to-date) balance in the BL SUSPENSE account #001.916000.369901.0000



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                        as of the date you used as the HIGH date in that field on the Discoverer Viewer
                        report.
                    21) Next, you need to balance this YTD total from the Discoverer Viewer Report to
                        the Oracle Production GL Inquiry Report balance for this same account
                        #001.916000.369901.0000. Steps to get there are as follows:

      1. Sort on INVOICE GL DATE, then CUSTOMER NAME – this will allow you to
         eliminate all of the GL date rows for which you have already balanced out to zero in prior
         reconciliations. For example, if you KNOW you zero’d out through April 30, 2009 GL
         dates, then you can delete all of the rows from January 1 through April 30th GL dates. Do
         this so that you have to try and match up only the ones that are going to be the culprits for
         the outstanding balance in the account!
      2. Delete all rows you know are already reconciled
      3. Resort the report data to sort by CUSTOMER NAME, then by AMOUNT in ascending
         order
      4. In the Type column, delete all of the wording in every cell
      5. Match up all you can in the report by name and amount positive to exact negative $
         amount.
      6. When you have matched them up, put a “1” in the Type column next to every matched up
         cell.
      7. After you have matched up all you can and have a “1” next to all those matched, then
         RESORT the data by the TYPE column, then CUSTOMER NAME
      8. The resulting report will now have all the UNMATCHED receipts at the bottom of the
         report. Select all of the unmatched rows and fill the cells with the color yellow.
      9. Now you have to pull the Oracle Production Report for the GL balance in this BL
         Suspense account 001.916000.369901.0000.000000 to be sure that it matches the total
         you got on this Oracle Discoverer Viewer report. Steps to do that are as follows:
      1. Open Oracle Production\COV Inquiry only\Account
      2. Accounting Periods
             From       01-JAN-2009
             To         yesterday’s date
          Accounts
         ___ _________________________________
         ___ ______________click here ___________

             Pop up screen appears:

                                        LOW                          HIGH
             FUND                       001                          001
             ORG                        916000                       916000
             OBJECT                     369901                       369901
             Location                   0000                         0000

             Then hit OK

             Go to bottom of screen and click on



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             SHOW BALANCES

             Pop up screen appears:

       PERIOD                                                       PTD                     YTD*
(The parameter you chose)                                (Period-to-date $ amt) (YEAR-TO-DATE $ amt.)
                                                       The current MONTH $ amt    This is the YTD $ amount
                                                                                   You must balance to.

*The YTD $ amount MUST EQUAL the total for all of the highlighted in yellow
UNMATCHED BL SUSP Reconciliation report items for this same YTD period. If it doesn’t,
you must figure out why and make it match.

       3. After you have reconciled it to the Oracle Production GL Inquiry YTD $ amount, then
          you need to send the Excel Spreadsheet BL SUSP Reconciliation YTD (date) as an
          attachment by email to Jack Allemang, Connie Grant and cc Carrie Lewellen.
       4. For the receipts that you are unable to match, Jack Allemang and Connie will research
          and resolve those unmatched items and do what it takes to get them OUT of the
          SUSPENSE account so you can zero it out. As Jack and Connie identify them, they will
          give the sheet back to you to update the spreadsheet. Every time you update the
          spreadsheet, resend to Jack, Connie and Carrie.




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Tab F - Reporting

                                                                     Reporting
In addition to the reports for collections, unapplied receipts, credit memos, and reconciliation,
other reports are run or submitted for statistical and performance purposes.

Outcomes

Purpose:                   Reports allocation of staff time per task
Frequency:                 Monthly
Format:                    Excel

Invoice Volume

Purpose:                   Reports total number and amount of invoices created by invoice type
Frequency:                 Annually
Format:                    Excel (information obtained from Oracle)

Overall Aging Report

Purpose:                   Reports accounts past due per category (# of days)
Frequency:                 Quarterly
Source:                    Discoverer

Aging Report / Top 10 Invoicing Types

Purpose:                   Measure volume of invoices generated
Frequency:                 Quarterly
Format:                    Excel

Volume of Phone Calls

Purpose:                   Reports number of calls received per staff member
Frequency:                 Monthly
Source:                    CMS

Activities Summary by Date Range

Purpose:                   Reports alarm activity (excluding credit memos)
Frequency:                 Monthly
System:                    CryWolf

Billing and Receipt History Report



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Purpose:                   Reports customer account history to include invoices and payments
Frequency:                 As needed
System:                    Oracle

Business License & Customer Service Tracking Report

Purpose:                   Reports monthly, quarterly, and annual volumes of new business license
                           applications, renewal and past due invoices, 7-day letters, penalty notices,
                           exemption claims, and discontinuations.
Frequency:                 Monthly, quarterly, annually
Systems:                   Oracle, Excel

Total Revenues for Licenses & Surcharge

Purpose:                   Revenue generated by payment of business license fees & surcharges.
Frequency:                 Monthly
System:                    Oracle

Unpaid Business License Renewal Invoices

Purpose:                   Identifies potential noncompliant licensees or accounts to be exempted or
                           discontinued.
Frequency:                 Monthly
System:                    Oracle

Unlicensed (Potential Noncompliant) Businesses Operating in the City of Vancouver

Purpose:                   Identifies potential noncompliant businesses that need to obtain a City business
                           license or file an exemption claim.
Frequency:                 Monthly
System:                    Taxtools, Excel

Revenue Generated by Outreach to Unlicensed Businesses

Purpose:                   Estimates revenue generated by sending business license program requirements
                           and application materials to unlicensed (potentially noncompliant) businesses.
Frequency:                 Monthly
System:                    Excel

Statistics by Invoice Type: Alarms, Loans, Stay of Proceedings, Fire Inspections,
Projects/Grants

Purpose:                   Reports:
                           Total revenues
                           Number of invoices generated
                           Date invoices issued



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                           Date 30 day notices issued
                           Number of accounts and amount referred to collection agency
                           Total amount paid
Frequency:                 Monthly
Systems:                   Oracle, CryWolf, ASP

REPORTS SUBMITTED BY ALLIANCE ONE

Collection Recap All Departments

Purpose:                   Reports summary statistical information by invoice type:
                           Prior Balance
                           Assigned
                           Returned
                           Collected
                           Ending Balance
                           Recovery %
                           Current year %
Frequency:                 Monthly
Format:                    Electronic / excel

Cancellation Report

Purpose:                   Reports detail of all accounts cancelled and returned to the city by invoice type:
                           Account # (Alliance One #)
                           Client # (Invoice type)
                           Customer Name
                           C.D. # (COV account #)
                           Date Assigned
                           Amount Assigned
                           Cancelled Amount
                           Last Paid
                           Cancellation Date
                           Cancellation Code
Frequency:                 Monthly
Format:                    Electronic / excel




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      Accounts Receivable
          Reporting


                                                                        Running Reports




       As Needed                                      Monthly                              Quarterly           Annually




       Billings Receipts
                                                    Staff Outcomes                         Aging/ Overall     Invoice Volume
             History




                                                       Phone Call
                                                                                           Aging/ Top 10
                                                        Volumes                                              Business License
                                                                                                                 Tracking



                                                                                          Business License
                                                     Alarm Activity
                                                                                              Tracking




                                                   Business License
                                                       Tracking




                                                   Business License
                                                      Revenues




                                                   Business License
                                                   Unpaid Renewals




                                                       Unlicensed
                                                       Businesses



                                                   Business License
                                                       Outreach
                                                       Revenue




                                                   Invoice Statistics




                        Collection                    Collection
                         Agency                        Agency;
                       Cancellation                Collection Recap




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Tab G - Payments – reconciliation, post to subsystems, etc.

                      Payments – Reconciliation, Post to Subsystems, etc.

I. LOANS

             A. Pull Discoverer Report for listing of payments receipted through Hanson/Oracle
                     1. AR-TR Details by Type
                     2. Loans
                     3. Receipt date low – Receipt Date high

             B. Post payments into A.S.P. Loan Software Program – Refer to ASP Loan Software
             Manual for procedures

             C. A.S.P. automatically prints a report listing all payments posted

             D. Reconcile payments posted with Discoverer Report / make adjustments if necessary

II. STAY OF PROCEEDINGS

             A. Pull Discoverer Report for listing of payments receipted through Hanson/Oracle
                     1. AR-TR Details by Type
                     2. Applied-Peggy
                     3. Receipt date low – Receipt Date high

             B. Type payments into spreadsheet
                    1. L: Support Services/Finance/Stay of Proceedings/Pmt History.xls

III. ALARMS

Alarms payments are receipted into Hansen/Oracle and must be manually posted into the
Crywolf system to update accounts. This is done daily

             A. At 7:00 A:M: each day two files are created by system and placed on the M Drive.
                 For payments entered by cashiers = M:Crywolf/receipts/date file created
                 For payments from remit proc = M:Crywolf/remitproc/date file created
                           1. Print copies of files and audit to payment stubs
             B. Post payments manually into Crywolf for each file
                           1. Options/process payment file/ select appropriate file
             C. Reconcile payments – Reports
                           1. Reports/ charge payment related/ payment tally sheet
                           2. Verify each payment was applied correctly

IV. BUSINESS LICENSE PAYMENTS




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If business license renewals become over 50± days past due, they are listed on an Excel
spreadsheet that is used to help track communications with delinquent licensees, as well as
whether or not late penalty notices have been sent. If payments come in from said licensees after
they appear on the list, those payments are noted on the spreadsheet.



V. REMITTANCE PROCESSOR PAYMENTS

Most invoices and statements can be receipted through the remittance processor at Clark PUD.
(Exceptions are: Business license/surcharge and loans)

This process is discussed in the Customer Service Business Plan, Receipt of Payments process,
tab a.




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 Tab H - Write-offs

                                                             Write Off Procedures
Background: The City of Vancouver maintains several software systems which track
outstanding accounts receivable balances. These systems include the Hansen Utility
Billing/Customer Information System, the PowerPark Flex/T2 Parking System, Oracle
Financials – Accounts Receivable module, CryWolf Alarms system, and the Class system used
by Parks & Recreation. The City also uses an ASP software system to track outstanding loans
associated with the Sewer Connection Incentive Program (SCIP) and other miscellaneous loans.

On June 26, 2006, Council approved Ordinance M-3747, which delegated administrative
authority to the City Manager or designate to write off accounts with amounts of $25,000 or less.
Write offs for single accounts greater than $25,000 must continue to go before Council for
authorization upon recommendation of the City Manager.

Accounts will not be written off until all reasonable efforts for collection or settlement have
been exhausted.

On a quarterly basis, staff prepare a summary report requesting accounts to be written off for the
prior quarter. The summary separates write offs by type and includes detailed documentation
supporting the request. The report is submitted to the Treasurer to obtain authorization to write
off (as detailed below).

Collection Agency
At a minimum of annually, City staff will contact the city’s collection agency and request that
they return accounts back to the city, if they deem them uncollectible, either because the
accounts are past the statute of limitation period (10 years for parking citations), the customer
has no assets, the customer has filed and had a bankruptcy discharged, the customer has skipped
(unable to locate), or the account balance is too small for the collection agency to try and collect
on. The collection agency will return these accounts to city staff, which will then route for write-
off authorization to the Treasurer, the Director of Financial and Administrative Service, the City
Attorney, and the City Manager for approval prior to being written off.

Write Off Procedures after approval received from City Manager or designate

After write off approval has been received from the City Manager or designate, staff will go into
the applicable system and update the account with a write off status.




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      Accounts Receivable
          Write Offs




                                                                      Quarterly:
                                                                                      Expiration of statute of limitations. 2 years+
                                                                       Evaluate
                                                                     Accounts that    after assignment to collection agency:
                                                                      Qualify for     Uncollectible, no assets, out of business,
                                                                       Write Off      unable to locate, all efforts exhausted.




                                                                     Is Balance <
                                             Yes                                                  No
                                                                       $25,000?


                                                                                                        City Manager
                     Prepare Write Off                                                                  Recommends
                     Summary Report                                                                    Write Off to City
                                                                                                           Council




                     Submit Summary
                       with Detailed                                                                    Does Council
                     Documentation to                                                   Yes              authorize?               No
                        Treasurer




                                                                                      Update
                These Write Offs must be                                             Accounts;                                 Continue
                Authorized by Treasurer,                                              Write Off                            Collection Efforts
                 CFO, City Attorney, and                                              Balance
                     City Manager




                       Are Write Offs
         Yes            Authorized?                No




      Update
                                             Continue
  Accounts; Write
                                         Collection Efforts
    Off Balance




LOB 4 Prog B Acts Receivable & Business License Program 8-2-10.doc                                                                     LOB   4b-67
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Tab I - Refunds
                                                               Refund Procedures
Overpayment

Perform research to verify overpayment by:
       Reviewing the receipt(s) to confirm accurate posting by Customer Service Representative
       (CSR)
       Best method is by reviewing receipting system (i.e. Hansen Payment Look Up Report)
       Verify customer number, invoice number, payer of the receipt(s)
       If an error is identified, determine where the payment should have been receipted and
       forward all documentation to supervisor or supervisor of CSR’s
       The supervisor is responsible for ensuring the correction is processed
       When in doubt, seek guidance of supervisor or supervisor of CSR’s
Once overpayment is verified:
       Complete Refund Request Form
       Make adjustment to customer’s account in Oracle
       Enter a Credit Memo or put on invoice if paid in error, then enter a Credit Memo
**Forward Refund Request Form to supervisor for review and approval
Once approved, supervisor forwards to Administrative Support staff
Administrative Support staff:
       Checks in the A/P system to see if the customer is already set up
       Sets up the customer as a vendor if not there
       Batches refunds by type (i.e. alarms, parking)
       Information is keyed in for each refund into the appropriate batch
       (i.e. vendor, vendor #, date of invoice/refund, invoice #, reason for
       refund, budget number)
       Forwards to A/P
A/P will create and issue the check (once per week on Wednesday’s)

Paid in Error

Validate payment
Once payment is validated:
       Complete Refund Request Form
       Make adjustment to customer’s account in Oracle
       Put on invoice
       Enter a Credit Memo
Complete process as above **




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     Accounts Receivable
    Overpayments/Refunds




                                  Overpayment                                                          Paid in Error

                                                                           Payment Received




                                        Is Receipt                                                        Is Payment
                       No               Accurate?                    Yes                      No             Valid?         Yes



              Determine Where
                                                         Complete Refund                Discuss with                   Complete Refund
              Payment should
                                                          Request Form                   Customer                       Request Form
                 be Applied



                 Provide all                              Adjust Account;
               Documentation                               Issue Credit               No Further Action                Adjust account;
               for Supervisor                                 Memo                                                     Put on Invoice;
                                                                                                                        Credit Memo


                 Supervisr
              ensures Payment
                 Correction

                                                          Forward Refund
                                                             Form to
                                                            Supervisor



                                                            Supervisor
                                                            Authorizes;
                                                          Sends to Admin



                                                           Admin sets up
                                                             Vendor, if
                                                            Necessary



                                                         Batches Refunds
                                                             by Type




                                                          Forwards to AP




                                                             AP Issues a
                                                               Refund




LOB 4 Prog B Acts Receivable & Business License Program 8-2-10.doc                                                             LOB   4b-69
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                    Financial & Management Services Business Plan 2009-2014



Tab J - ACH file settlements

                                                                     ACH Process

Oracle Invoices - Process is done twice monthly for different billing types based on due date of
invoice

      1. Run Process in Oracle to extract appropriate invoices and create a file
             a - Create Receipt Batch
             b - Verify Data and Approve Batch
             c - Create Remittance Batch
             d - Verify Data and Format Batch
      2. Bankxfer.exe process ran to format the file into Bank Of America specifications and
      3. Verify totals and Modify file on M:Drive - Change Settlement date to 2 business days
         after creation date
      4. Log into BOA website and transmit file
      5. File reports in storage

Utility Payments – Process is done daily for both prenotes and actual dollars

      1. Receive system auto-generated email notification with total $ of transmission and
         prenotes
      2. Verify totals and Modify file on M: Drive – Change Settlement date to 2 business days
         after creation date
      3. Log into BOA website and transmit file
      4. Notify Utilities that file has been sent so they can continue on with their processes
      5. File reports in storage

Parks Memberships – Process is done on first business day of each month

      1. Receive email notification from Parks that file has been ran in Class system and what the
         total dollar amount is.
      2. Verify totals and Modify file on M: Drive - Change Settlement date to 2 business days
         after creation date
      3. From Class system, print copy of ACH Export Report and verify totals to file.
      4. Log into BOA website and transmit file
      5. File reports in storage

Prenotes – As needed

      1. Set up customer in Oracle
      2. Give customer information to customer service to enter a zero dollar prenote receipt
      3. Follow procedure for Oracle Invoices as listed above




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                      Financial & Management Services Business Plan 2009-2014

                                                                             $
           Accounts Receivable
            ACH Transactions

                                                                        ACH Activity



                                                                                             Parks
  Oracle Invoices                               Utility Payments                         Memberships              Pre-Notes
   (Bi-Weekly)                                        (Daily)                            (1st Business           (As Needed)
                                                                                       Day of the Month)




                                                 Receive email
  Extract Invoices,                                                                     Receive email          Set up Customer
                                                 with Total $’s
     Create File                                                                        with Total $’s             in Oracle
                                                 and Pre-notes



   Create Receipt                                                                                              Give info to CSR/
                                                  Verify Totals                          Verify Totals
       Batch                                                                                                         FMS



                                                    Change                                 Change
                                                                                                                CSR Enters $0
   Verify/Approve                               Settlement Date                        Settlement Date
                                                                                                               Pre-Note Receipt
                                                  (creation date + 2)                    (creation date + 2)




       Create                                                                             Print ACH
                                                Log onto B of A
     Remittance                                                                         Export Report
                                                   Website
       Batch                                                                             from Class



    Verify Format
                                                  Transmit File                          Verify Totals
        Batch




   Format: B of A                              Notify Utility Staff                    Log onto B of A
      Specs                                     when Complete                             Website




    Verify Totals                                                                        Transmit File




      Change
  Settlement Date
    (creation date + 2)




  Log onto B of A
     Website




    Transmit File




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                    Financial & Management Services Business Plan 2009-2014

                                       Administrative Support & City Clerk
                                (Treasury & Cash Management Line of Business)
                                                           Manager: Carrie Lewellen


Table of Contents

    1. Purpose ......................................................................................................................... 1
    2. Goals ............................................................................................................................. 2
    3. Major Services we provide ............................................................................................... 2
    4. Organization & Staff........................................................................................................ 2
    5. Major Processes we own ................................................................................................. 2
    6. Key Customers ............................................................................................................... 3
    7. Financial Balance Sheet Summary Data ............................................................................ 3
    8. Key Outcomes and Performance Measures........................................................................ 4
    9. Sample Cost to Provide Services ...................................................................................... 4
    10. Savings or Progress in efficiency, effectiveness, cost savings, or sustainability.................... 4
    11. Continuity of Operations ................................................................................................ 5
    12. Major Issues to address in the next two to three years..................................................... 5
    13. Future Issues ............................................................................................................... 6
    14. Process Descriptions and Flow Charts ............................................................................. 6
        Tab A – Requisitions........................................................................................................ 7
        Tab B – Publications, Meeting Notices & Advertising........................................................... 9
        Tab B (1) – Advertising Parameters for City Council Agenda Items .....................................10
        Tab C – Recording of Documents ....................................................................................11
        Tab D - Refund Requests................................................................................................17
        Tab E - Invoices.............................................................................................................19
        Tab F – Appeals Notices (Pending Completion) .................................................................21
        Tab G – Purchasing Cards (Pending Completion) ..............................................................22


1. Purpose

We provide high quality and timely administrative support to the CFO and leadership of FMS. We
provide general reception support, both for telephone and walk-in customers. We manage the
finances of the department as well as distribution of mail, photocopying, and purchase of supplies.

As the Assistant City Clerk, we are an impartial administrator and trusted conservator of public
records and processes, providing notary services, recording and preparing a variety of official
records.



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2. Goals

In the next 2-6 years, our top goal is to streamline repetitive services we provide, reducing
copying, printing and paper generation that is distributed in hard copy.



3. Major Services we provide

Internal administrative support
Mail handling
Notary Public
City Clerk administration
Recording documents
Legal advertising / publications
Public records requests
General reception
Appeals – intake and processing



4. Organization & Staff

Position                                                   FTE                (management)
Treasurer                                                   0.25                  (0.25)
Support Specialist III                                      1.0
Support Specialist II                                       1.0
Total FTE’s                                                 2.25                  (0.25)
Management ratio (managers to                              total employees)        1:4.5



5. Major Processes we own
See attachments for each process and flow chart

Process                                                    Location    Workload
Support City Clerk/Deputy                                  Tab A         17%
Publications                                               Tab B         15%
Record Documents                                           Tab C         35%
Refund Requests                                            Tab D         10%
Invoices                                                   Tab E          1%
Requisitions                                               Tab F          1%
Public Records Requests                                    None           1%
Mail Handling                                              None           9%
Receptionist Duties                                        None           9%
Other                                                      None           2%

*Workload percent calculated based on 2008 staff outcomes



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6. Key Customers

                                                              City      Admin
          Fund/Customer                             Total                                      Remarks
                                                              Clerk    Support
 External Customers1                           % of total     %         %
  Walk-in public                                              35        25
  Call-in public                                              35        35
  Mail-in public                                              30        40
 Total                                                       100%      100%

 Internal Customers2                           % of total
  CMO                                            10%
  CFO/City Clerk                                 25%
  Water/Utility Fund                             5%
  Accounts Receivable                            5%
  All other FMS teams                            5%
  DRS                                            10%
  Central Records                                15%
  HR                                             5%
  Law                                            10%
  Risk/Property Mgmt                             5%
  Other                                          5%
 Total                                          100%
Based on staff estimates


7. Financial Balance Sheet Summary Data
Based on 2009 full year budget and percent of time spent on activity expenditures
                                                 % of       Cost to
       Program or Activity                       time       provide                              Notes

 Recordings                                      35%        $141,859    Includes all Documents Recorded with Clark County

 Publications                                    15%        $60,797     Includes all Legal Ads placed in the Columbian

 Accounts Payable functions                      12%        $48,637     Invoices, Requisitions, Refunds, P-cards (Finance)

 Mail Handling/Distribution                       9%        $36,478

 Receptionist Duties                              9%        $36,478     Phones, Finance staff calendar, etc.

 Assist Finance Staff                             9%        $36,478     Includes supply orders, assisting supported employee, e

 Support other Departments                        8%        $32,425     Notary, phone coverage, document preparation, etc.

 Other                                            2%         $8,106

 Tracking                                         1%         $4,053     Property tax payments, PC inventory

 Total budget                                   100%        $405,311

LOB 4 Prog C Admin Support Program 08-2-10.doc/ 08/12/10                                                  LOB 4c-3
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8. Key Outcomes and Performance Measures

Annual Performance Measures for Admin Support
Outcomes and                                                2008     2009     2010
Performance Measures                        Goal                                      Change   Remarks
                                                           Actual   Actual   Actual
Our customers are satisfied
Rating on biannual internal
                                            ≥ 3.0           N/A      N/A
customer survey (4 pt scale)
We provide timely and accurate service
Legal Advertising dollar
                                         Work load
value per month
Document Recordings –
total documents recorded                 Work load
per month
Public Records Requests
                                         Work load
(PRRs) handled per month
Pages of PRRs supplied
                                         Work load
per month
Percent of PRRs that fully
met the required timeline
Dollar value of supplies
ordered per month
We process financial transactions effectively
Refunds processed per
                                         Work load
month
Invoices processed per
                                         Work load
month
Requisitions processed per
                                         Work load
month



9. Sample Cost to Provide Services                                                    2009
- Cost to handle a public records request, per page:                                  $
(Varies with complexity - approximately xx requests per year)
How it is calculated: Total pages provided divided into (budget divided by percent of time spent addressing PRRs)


10. Savings or Progress in efficiency, effectiveness, cost savings, or sustainability
For each item, identify what it was, what the estimated savings was (in dollars, hours, energy, environment or other
way) and how you calculated the savings.

      1) Improved document recording manual / paper copy process by replacing with spreadsheet.
         This change made it easier to determine allocation of billings for recordings.
      2) Worked more closely with supported staff to evaluate and utilize available skills resulting in
         increased performance.
      3) Streamlined refund process – now processing weekly to coincide with weekly A/P process.
      4) Organized and streamlined property tax information for easier research and access to
         information. (is this now on a spreadsheet- how do we find it? Should this be a process
         that is defined?)



LOB 4 Prog C Admin Support Program 08-2-10.doc/ 08/12/10                                                 LOB 4c-4
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11. Continuity of Operations
The city must be able to maintain essential operations during a disaster.

a. What major functions are essential for us to maintain or reestablish in case of a
disaster?
      - Legal advertising for council meeting notices
      - Record legal documents as needed
      - Track outstanding Council items (secure signatures, make copies, and send files to
        Central Records)
      - Timekeeper function for FMS department

b. What personnel or positions are essential to emergency operations?
     - City Clerk
     - Deputy City Clerk
     - Support Specialist III
     - Support Specialist II

c. Where do I find our updated emergency procedures?
The City Clerk Administration copy of the COOP is located on the FMS “I” drive at
I:\Finance\Emergency-Coop\ Annex P


12. Major Issues to address in the next two to three years

Issue 1: Staffing is being reduced as we consolidate into the new City Hall building

Background: In 2010, the administrative staff is being reduced by 1 FTE. That leaves .8 FTE to
complete the re

Discussion: Identify the variations and causes.

Solution 1: We need to …
Solution 2: We should ….
Solution 3: We should have…..

Recommendation: (Recommendation is specific and includes time frame when you will do it)


Issue 2: City clerk duties are normally not done in a Finance department, but in the City
Manager’s office and include other duties such as Council scheduling & support, recording council
meetings, document management and more.

Background:

Discussion: Identify the variations and causes.

Solution 1: We need to …
Solution 2: We should ….
Solution 3: We should have…..


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Recommendation: (Recommendation is specific and includes time frame when you will do it)



13. Future Issues
Items we project will be problems in the future, but for which we currently are not planning.

14. Process Descriptions and Flow Charts

Index
Tab A – Requisitions
Tab B – Publications, Meeting Notices & Advertising
Tab C – Recording of Documents
Tab D - Refund Requests
Tab E - Invoices
Tab F – Appeals Notices (Pending Completion)
Tab G – Purchasing Cards (Pending Completion)




LOB 4 Prog C Admin Support Program 08-2-10.doc/ 08/12/10                           LOB 4c-6
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                    Financial & Management Services Business Plan 2009-2014

Tab A – Requisitions

                                                           Requisition Processing

These requisitions will be initiated by someone in Finance but may be charged to any of the other
departments.

      1. Enter the requisition information into Oracle and send the “approval screen” to the
         employee authorized to approve the expense of Product/Service.
      2. It then will go to Procurement so they can generate a PO.
      3. When they give the PO# back, print the PO and attach it to the invoice.
      4. Make copies of the invoices and the other pertinent info and send to the departments that
         are being charged.
         Could this be scanned and e-mailed to the departments? If the info is already scanned and
         attached to the PO it would save both paper and time.
      5. Give all the paperwork to AP so they can issue a check.




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            Admin
          Requisition
          Processing


                                                 Open Oracle and
                                                     select
                                                 Purchasing and
                                                  Requisitions
                     $
                     $




                         $




                                                   Enter required
                                                 information in the
                                                      lines tab.
             Purchasing
                                                (Type, Category,
                                              Description, Quantity,
                                                  and Amount.)




                                                   Enter Supplier
                                                 information in the
                                                   Source Details
                                                   tab and save.



                                                 The requisition is
                                                    assigned a
                                                  number. Print
                      Requisition                out this page for
                                                     reference



                                            Enter appropriate budget                 Save and go back to
                                            number and cost. If more                     the 1st tab.
                                           than one budget number is
                                                used, split costs                    Click on the Approve
                                                  accordingly.                              Button




               Once approved and                           Click on send, and also   Use the drop down to
              PO issued, an Oracle                          send the manager an      select which manager
              alert will be received,                      email to let them know     should receive the
                Write this PO# on                          they have a requisition       requisition in
                    paperwork.                                waiting approval.      workflow to approve.




                 Print PO copy for
                        File.                          PO Copy




LOB 4 Prog C Admin Support Program 08-2-10.doc/ 08/12/10                                                    LOB 4c-8
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Tab B – Publications, Meeting Notices & Advertising

                                                           Publications

Notices of meetings that impact the citizens of the City of Vancouver are placed in the Columbian
to notify the public of the time, place and subject matter so they can attend if they want to.

   1. There are several different types of meetings and they have different time frames for the
       notices.
   2. The meetings are mostly taken from the Proposed Council Agenda items received
       interoffice from CMO (Mary White) each Friday – the “blue” packet.
   3. Review proposed Council agenda every week frequently to determine if there are any
       public hearings that need to be advertised.
   4. Call CMO Tuesday afternoon for meeting confirmation to see if there are any changes to
       the above proposed agenda (2 weeks out) before posting the notices.
   5. From the City Council Agenda sheets (blue) list each numbered agenda item on the
       spreadsheet I:\Finance\City Clerk\Council Action Status\Council Action Log2009.xls. *See
       the below Advertising Parameters sheet for notice specifics.
   6. Read the “Title” and the “Action Requested” sections to see if it needs to be advertised,
       then look at the Advertising Parameters to see when.
   7. Prepare the Legal Ad by choosing the template FIRSTF.doc or Mxxx1.doc on I:\Finance\City
       Clerk\ADVERTIS\2009\filename.doc Be sure to use a current doc so that the C-tran routes
       are correct.
   8. Before drafting the advertisement, save the ad with the new name, change the heading
       info (bold) to reflect the content of the ad- usually the “Subject” description found on the
       associated Staff Report for a given agenda item. The first paragraph of the legal
       advertisement will be the first paragraph of the Resolution or Ordinance. For Development
       Agreements, Street Vacations, CDBG, and other types of legal advertisements, either the
       law department or the originating department should provide the City Clerk’s office with the
       ad copy to be used.
   9. E-mail the ad to The Columbian at either:
               legals@columbian.com for legal notices
               Marjorie.lehman@columbian.com for other notices
   10. They will reply to the e-mail letting you know they received the ad, and what the cost will
       be. Print this e-mail and attach the ad copy to it to compare to the actual ad on the date it
       is scheduled to come out in the paper. This also has their contact information on it if
       needed, name, phone number, etc.
   11. Print a second copy of the advertisement and place in the appropriate City Council file
       folder for the date of the public hearing. This is necessary back-up for the State Auditors.
Update the Legal Advertising 2009 spreadsheet at I:\City Clerk\Legal Advertising\Legal Advertising
– 2009.xls




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Tab B (1) – Advertising Parameters for City Council Agenda Items


                ADVERTISING PARAMETERS FOR CITY COUNCIL AGENDA ITEMS
                                   FEBRUARY 2008
                                                                                 PUBLICATION
1.        Standard advertising requirements for all hearings
          (Ordinances, Resolutions, Appeals, Land Use Items,
          Public Hearings)                                                3 days before meeting
2.        Standard advertising requirements for all boards and
          commissions meetings                                            3 days before meeting
3.        Advertising for “special meetings”                              3 days before meeting
4.        Advertising for last-minute “special meetings”                  24 hours before meeting
5.        Franchise Ordinances                                            30 days between introduction
                                                                          of documents and public
                                                                          hearing
6.        Bond Ordinances                                                 30 days between first reading
                                                                          and public hearing
7.        Community Development Blocks Grant Ordinances
          identifying priority eligible projects (two public hearings     30 days between first reading
          are required, but only one has be in front of Council)          and public hearing
8.        Street vacations require 2 public hearings (introduction of     First public hearing 21 days
          resolution of Intent to Vacate – setting date of first public   after posting and introduction
          hearing)                                                        of resolution of Intent to
                                                                          Vacate

          Following the public hearing on the Resolution of Intent, Second public hearing will be
          introduce ordinance for first reading (same evening), with on the ordinance’s 2nd reading
          second reading and public hearing the next week (or next and public hearing.
          full council meeting, whichever is appropriate)




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Tab C – Recording of Documents

                                                           Record Documents

Overview

Legal documents must be recorded with Clark County on a daily basis. Sewer Connection Incentive
Program (SCIP) Agreements; Water, Sewer, Drainage, Storm, Street and Sidewalk Easements;
Satisfactions of Contracts; Release of Easements, Agreements, and types of Liens; Deed of Trust;
Agreements; Memorandum of Understanding; Lis Pendens; Annexation Ordinance; Demolition
Assessment; Modification of a recorded document; Correction to a recorded document.

      A) Signed documents are received and reviewed for conformance: ie Legible language, legible
         Notary Seal, all Grantor’s and Grantee’s signatures, Margins, and all pertinent exhibits
         attached as the language in the document and property exchange Deeds, with copies of
         the legal description and map(s) attached to each of the four pages of the RETA. Only
         documents 8 ½ “ x 11” or 11”x 14” in size is accepted for recording purposes. A Cover
         Sheet is necessary when the Title on the first page of the document is not 3” from the top
         of the page; when the Grantor and/or Grantee information, parcel number, legal
         description, and/or prior recording numbers pertaining to the submitted document is not
         evident on the first page; or the 1” margin a round the document is violated. (On occasion,
         a cover sheet is prepared for the submitted document to expedite the recording process.)
            ** SCIP and Utility Service Covenants are expedited ASAP. The recording is returned to the
            originator of the document in approximately 2 days, depending on staff available to
            maintain the workflow tempo. Most other recording documents turnaround in a week,
         unless the document needs to be recorded immediately (ie SCIP Modifications; USC; Notice
         of Intent).
      B) Parcel number and description on the submitted document is verified and reviewed against
         Clark County’s GIS for accuracy and consistency on the cover sheet and all exhibit
         attachments.
      C) Document(s) are assigned a Batch Number. It is a manually assigned number based on the
         document type, the month, the day, and the year. A worksheet is created in I:\City
         Clerk\Recording\2009 Recording.xls using the same Batch control number for both the
         Documents for Recording and the Recording Fees sheets. The new worksheet tab is
         renamed using the Batch Control Number so the documents can be easily found by looking
         on the Recording Log spreadsheet. Enter the information into the bottom section of the
         spreadsheet under Recording Fess. The information will go into the top section thru a
         formula. The recording fees are as follows (standard fees are in the spreadsheet as a
         formula):
         1. $62 for the first page, $1 for each additional page. (**Deed of trust is $63 for the first
             page, $1 for each additional page.) The amounts are set at the State legislative session
                  and are subject to change.
         2. $50 additional charge is assessed for a nonstandard document.
         3. Total the Batch with distribution of the costs to various funds the spreadsheet will be
            the “file” record of both documents. No need to print them for filing.
         4. Update the _2009 Recording Log spreadsheet at I:\City Clerk\_Recording Log 2009.xls
            according to the various columns: Document Description; Grantor; Parcel #; Date
            Document Received; Batch Control #; Date Batch taken to Auditor; Comments
      D) Hand deliver the Batch to Clark County Auditor’s Office

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      E) After being recorded, the Documents are picked up (either the same day, or at a later
         date) to update the Recording Log and distribute the original and scans.
             1. Update Log in Recorded Documents File in various columns: Date Batch Returned
                 from Auditor; Auditor’s File #; Date Document sent to Central Records for Filing;
                 Comments
             2. Scan the originals and e-mail to your e-mail address for saving to the I drive and e-
                 mailing to the originator any other necessary departments.
             3. **All original recorded documents, EXCEPT the Utility Service Covenants are sent to
                 Central Records for filing. The original recorded USC documents are sent to Team
                 USA for filing.
      F) Monthly: Audit and process Invoice of Recorded Documents
      G) Rejected Documents are logged in a file (Need More Information) and returned to the
         originator/department with a comment of what the necessary correction should be.

Details

We have an account set up with the County so we are billed monthly for the recordings. We track
the recorded documents to compare to the monthly invoice (see #6). The regulations can be
found on the City’s website under the VMC and RCW links.

To prepare the documents prior to taking them to be recorded
   1. Confirm the information presented for recording by viewing on GIS
       Go To:
       http://nt04/applications/gishome/property/




      Enter parcel number and click “Go!”




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            Confirm that owner information, legal description of the property location, and parcel
            number(s) match what is listed on the document to be recorded.

      2. Return the documents to originating department for corrections when needed. Attach an
         Additional Info Required Form.
         I:\Admin_City Clerk\Need Addtl Info Log
      3. Prepare the cover sheet I:\CityClerk\Recording\Recording Cover Sheet.doc changing the
         names, amounts, the type of document, etc – everything in Bold




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      4. Be sure to allow the 1” margin on all sides, and the 3” margin on the top of the 1st page.
          See I:\City Clerk\Recording\Recording Check List.doc
      5. Update the daily document log I:\City Clerk\Recording\_RecordingLog 2009.xls
      6. Batch and balance the documents, I:\City Clerk\Recording\2009Recording.xls (the Batch
          Control # is not really a date) Print out page 1 of the spreadsheet and put it with the
          documents to go to the County Public Service Building (1300 Franklin), then take them to
          the County cashier on the 2nd floor.
      7. Leave the batches there with the cashier so they can be recorded when there is time, and
          each time you are there, check to see if there is anything ready to be picked up (that was
          left from a prior day).
      8. You will go through the log book that they have at the County and update it with your
          “pick-up” information.
      9. When you get back to your desk, update I:\City Clerk\Recording\_RecordingLog 2009.xls in
          Excel (#5 above) with the Auditor’s File # and pick-up date. And the date it will be sent to
          Central Records and who you sent the scans to if you send to someone other than DRS.
      10. Also update the I:\City Clerk\Recording\2009Recording.xls with the Auditor’s File #
      11. Give originals to Alice to enter into Excel and print a list to attach with the documents that
          are being sent to Central Records


SCIP Modifications

      1. SCIP modifications (and a few other documents) require that you stay and have them
         recorded while you are there so you can bring the documents back with you that same day.




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Tab D - Refund Requests

                                                           Refund Requests

Refund requests that we process are generally originated from someone in Finance however they
may be for any other department within the City.

The requests for DRS get processed first due to the nature of the request.

To process the refund request
   1. In Oracle, set up the customer in the AP – Refund Site so it doesn’t calculate this as 1099
       earnings that would be paid to a regular vendor.

To Add a Vendor in Oracle - Daily

    1. The completed refund requests go to Carrie to approve, then to Mary.
    2. There can also be an e-mail listing from Parks – Utilities – DRS, etc containing names and
        addresses of people needing refunds from those areas.
    3. Go to COV Suppliers Maintenance – Supply Base - then to Suppliers
    4. click on the flashlight to find the name since many of them will already be in Oracle.
    5. If it is there, double check the information, then write the existing customer # on the
        paperwork.
    6. If it isn’t there, add the customer information in the General tab
    7. Taxpayer ID = REFUND – unless it is an employee, then enter EMPLOYEE
    8. Terms = IMMEDIATE
    9. Site name = city of the mailing address ie VANCOUVER
    10. Supplier = FIRST NAME LAST NAME and the ADDRESS
    11. Uncheck Purchasing
    12. Under the Classification tab – Type = REFUND
    13. Add the phone number if it is on the paperwork in case it comes back undeliverable
    14. Write the customer # on the refund document for processing the check
    15. If a check is returned undeliverable, you can inactivate the old address and add a new
        address if you know what the right address is.
    16. Reply to the e-mail listing adding the customer # to each name
    17. Give the folder back to Mary for entering into Oracle AP
    18. Create a batch with the amounts of the refunds
After the batch is balanced, give the paperwork to Carrie for signature, then to AP for processing a
check.




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       Admin                                                                            Customer
                                                                                                                DRS Refunds
  Refund Processing                                           AR Refunds                Service &
                                                                                     Parking Refunds




                                                                                                                Reviewed by
                                                                                       Reviewed by
                                                                                                               DRS. Received
                                                             Reviewed and               Cash Mgmt
                                                                                                               via inter-office
                                                            Approved by the           Supervisor and
                                                                                                               mail. To admin
                                                               Treasurer               Approved by
                                                                                                                   staff or
                                                                                         Treasurer
                                                                                                                accountant.




                                                                                     Given to Admin
                                                                                     Support Staff for
                                                                                         Entry

                       Enter Refund
                     Batches in Oracle




                          Is Vendor
                                              No           Set up Vendor
                           Set Up?


        Yes



                  Sort batches by refund
                                                                                            Total each batch and
                type: Alarms, Parking, etc.
                                                                                           set up in Oracle under
                                                                                              Invoice Batches
                    (for Oracle Shortcut)




                                                                                            Give to Treasurer for
                                                                                                  Approval




                                                                           Forward to Accounts
                                                                            Payable for further
                                                                               processing




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