HomeMy WebLinkAbout1981-12-01; City Council; 6835; Add Accountant Position Grants & Special ProjectAB# 4 frs? s''
MTG. 12/l /81
DEPT. FIN
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TITLE:
Addition of Accountant Position for Grants
and Special Project Accounting
DEPT. H .
CITY ATTY
CITY MGR. —
RECOMMENDED ACTION:
1. Approve the creation of a new accountant position in the Finance Department
to provide support for grants accounting and audit services.
2. Approve fund transfer 37, transferring $13,390 from the contingency account
to the Finance Department budget to cover the costs of this position for
fiscal year 1981-82.
ITEM -EXPLANATION:
The reorganization of the Housing and Redevelopment Department was partially
dependent upon additional support from the Finance Department in terms of
professional accounting services. In the Finance Director's opinion, the
finance staff will be unable to provide the level of support required by the
Section 8 Housing Program and the Co►nnunity Development Block Grant Program
without additional staff.
The Finance,Director proposes that an additional accountant position be
authorized to provide the following -services:
1. Section 8 - Housing Authority Accounting/Reporting
2. Community Development Block Grant Accounting/Reporting
3. Redevelopment Accounting/Reporting
4. Other Grant Program - Accounting/Reporting/Coordination
5. Audit of Transient Taxes and Business Licenses
6. Assistance in Monthly/Quarterly Reporting
Additional revenue should be available to the city from the following sources
as a direct result of this position:
1. Contributions from HUD Section 8
2. Overhead from Community Development Block Grants
3. Overhead from all Other Grant Programs
4. Tax Increment Financing from Redevelopment
5. Additional Transient Tax Collections
6. Additional Business License Collections
FISCAL IMPACT: The cost to the city for this position will be about $13,390 for
1981-82 and about $22,520 per year for 1982-83. Additional revenue generated
by this position should exceed these costs, but precise forecasts are very
difficult at this time. The transfer of $13,390 from contingencies will reduce
the available balance in the contingency fund to $765,002.
EXHIBITS:
Memo to City Manager, dated November 10, 1981, regarding the addition of an
accountant position to the Finance Department Staff.
R
� 4 N
MEMORANDUM
TO: City Manager
FROM: Finance Director
RE: Addition of an Accountant Position to the Finance Department Staff
DATE: November 10, 1981
Recommendation:
I recommend that the city create a,�new accountant position within the Finance
Department. This position will be under the direction of the -Finance Director
and will, be primarily assigned to grant accounting and city audits.
I also recommend that a fund transfer of $13,390 be approved from contingencies
to the Finance Department budget to cover the 1981-82 costs for this position.
Discussion:
During the past few weeks the staff has been involved in the reorganization of
the Redevelopment and Housing Department. This reorganization has called for
additional support from the Finance Department in terms of professional
accounting services for both the Housing Section 8 and Community Development
Block Grant Programs.
I have reviewed my staffs capabilities and feel the only way to provide the
level of support required by the Section 8 and Block Grant Programs will be to i
add an accountant level employee to the staff. The present staff would not be `
able to accept the responsibility of these programs and provide the level of {
service they will deserve.
I,propose that the Finance Department be authorized to hire an additional accountant
to provide the functions outlined below. This accountant will be dedicated to
serving the grant programs and providing a much needed audit position.
Duties of Accountant Position:
1. HUD Housing Authority - Section 8
a. Monitors monthly recordkeeping
b. Prepares semi-annual and annual reports for Section 8 Program
c. Assists in the budget preparation process for Section 8
d. Works with HUD - LA and San Francisco, to clear any accounting related
problems
e. Provides staff support for HUD audits
2. Community Development Block Grant Program
a. Monitors monthly recordkeeping on a project and year basis
b. Works with the Block Grant Administrator to provide necessary accounting
support
c. Prepares necessary financial reports
d. Provides staff support for audits
'November 10, 1981
page 2
3. Redevelopment
a. Works with Redevelopment Administrator to insure proper recordkeeping {
for redevelopment activity to safeguard the city's reimbursable
position
b. Provides staff support to audit of Redevelopment Agency
c. Prepares state controller's reports for redevelopment
4. General Grant Programs
a. Provides centralized accounting for all grant programs - operating
or capital
b. Helps establish a federally acceptable overhead allocation system which, i
will allow the.city to recover substantial overhead costs for grant
management
c. Prepares all accounting related reports for all grant programs
5. Audit
a. Performs transient tax audits on all city hotel and motel establishments
on a -rotating basis
b. Performs business license audits on major city license holders
c. -Performs other contract or special audits on an assignment basis
s
6. Monthly/Quarterly Reporting j
a. Provides staff support -to the monthly/quarterly reporting system
b. Gathers and prepares statistical information for use in revenue or
expenditure forecasting ;
This position can mean increased revenue within the general fund through the
following sources:
L Increased contributions from HUD Section�8 Program
2. The collection of overhead charges from the Block Grant Programs
3. The collection of overhead charges well in excess of the cost of this ?
position from operating and capital grant programs run by the city
4. Reimbursement from tax increment financing for services to the
Redevelopment Agency
5. Collect•ion of additional transient tax revenue based on audits of hotels
and -motels
6. Collection of additional business license tax revenue based on audits of
businesses within Carlsbad
.3
I, —
rNovember 10, 1981
page 3
The cost of an additional accountant position (Step C used for computation purpos?s)
would be:
1981-82
1982-83
7 months
12 months
Salary (Range 35)
$10,650
$18,460
Fringe -Benefits (22%)
2,340
4,060
Miscellaneous Supplies
400
-0-
TOTAL
$13,390
$22,520 .
These costs could be more than offset by the establishment of a federal- over-
head cost collection system, reimbursement from Redevelopment and.a 1% to 2%
increase in the transient tax revenue to the city.
I recommend that this position be recruited immediately and filled upon Council
approval. A fund transfer of $13,390 should be made from contingencies to the
Finance Department budget to cover these costs for 1981-82. This transfer will
decrease the contingency fund balance from•$778,392 to $765,002.
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