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[1. Call to Order of the Edmond City Council Meeting.]
I'D LIKE TO CALL THIS SPECIAL EDMOND CITY COUNCIL MEETING.BUDGET WORK, UH, WORKSHOP ON BUDGET MANAGEMENT AND YEAR END CLOSING.
THAT'S A MOUTHFUL, ISN'T IT? UM, BUDGET MANAGEMENT YEAR END CLOSING WORKSHOP TO ORDER
[2. Presentation and Discussion Regarding the Budgeting Process, Including the Creation of the Budget, Management of the Budget, and Yearend Budget Processes.]
OUR FIRST ITEM UP.ITEM NUMBER TWO IS PRESENTATION AND DISCUSSION REGARDING THE BUDGETING PROCESS, INCLUDING THE CREATION OF THE BUDGET, MANAGEMENT OF THE BUDGET AND YEAR END BUDGET PROCESSES.
BUT KATHY, BEFORE YOU JUMP INTO IT, I'D LIKE, I'D LIKE TO JUST SAY A COUPLE OF WORDS.
UM, THIS COUNCIL, I THINK IS LASER FOCUSED ON CLEANING UP OUR BUDGET PROCESSES.
UM, AND I THINK EVERYBODY NEEDS TO UNDERSTAND, ESPECIALLY THE PUBLIC, THAT THIS CITY IS NOT IN TROUBLE FINANCIALLY.
I'VE HEARD FROM SEVERAL CITY EMPLOYEES OVER THE LAST COUPLE OF WEEKS THAT WE'RE IN THE RED, THAT WE'RE JUST LIKE EVERY OTHER MUNICIPALITY STATE, WE'RE LOSING MONEY.
WE'RE IN THE RED, WE'RE NOT GONNA BE ABLE TO PAY OUR BILLS.
WE ARE IN GOOD SHAPE FISCALLY.
WE HAVE THE RESERVES TO GUIDE US THROUGH THIS ECONOMIC DOWNTURN THAT WE'VE BEEN IN.
UM, WE'RE GONNA COME OUT OF IT JUST FINE, BUT IT ALSO MEANS THAT WE'VE GOT TO SIT UP, TAKE NOTICE, AND CORRECT THE PROCESSES THAT HAVE JUST KIND OF BEEN WHERE WE HAVE EVOLVED TO OVER THE YEARS.
UM, WE'VE BEEN HAVING, MULTIPLE COUNCIL MEMBERS HAVE BEEN HAVING NUMEROUS CONVERSATIONS WITH KATHY PANAS, WITH BRENDA, WITH SHEILA, WITH RANDY.
AND WE WANNA MAKE SURE THAT AS WE MOVE FORWARD, THAT WE HAVE A PROCESS, A BUDGET MANAGEMENT AND CONTROL PROCESS THAT WORKS FOR ALL OF US.
SO WITH ALL THAT, WE FELT IT WAS IMPORTANT THAT COUNCIL KNEW AS MUCH AS WE COULD GET UNDER OUR BELT IN A COUPLE HOURS, AND THAT OUR DEPARTMENT HEADS ALSO UNDERSTAND WHERE WE'RE SITTING, WHERE WE'RE AT, AND WHAT WE'VE GOTTA DO TO, TO MOVE FORWARD.
SO, WITH ALL THAT, KATHY, I'LL LET YOU START.
CAN YOU HEAR ME? CAN YOU HEAR ME? HELLO? HELLO.
GOOD AFTERNOON, MAYOR AND COUNCIL.
UH, WE ARE JUST GONNA GO OVER A LITTLE BIT OF OUR BASIC PROCESSES TODAY.
AND ANYTIME YOU HAVE A QUESTION, JUST STOP AND YOU GUYS CAN DISCUSS OR WE CAN EXPAND MORE.
BUT, UM, I'LL GO AHEAD AND START.
WE'RE GONNA COVER BASIC BUDGETING PROCESS TODAY, THE BUDGET CREATION, BUDGET MANAGEMENT YEAR END BUDGET AND BUDGET ADJUSTMENT PROCESS AFTER, WELL, AT YEAR END.
SO THE BASIC BUDGET PROCESS, WE WILL HAVE A STRATEGIC PLAN THAT COUNCIL HAS A STRATEGIC PLAN EVERY YEAR IN NOVEMBER, AND THAT KIND OF SETS THE TONE, UH, JUST SOME OF THE, UH, PROJECTS THAT YOU'RE INTERESTED IN.
AND AS WE GO FORWARD, MUCH OF OUR AGENDA ITEMS ARE IDENTIFY A PROJECT OR AWARD.
AND IT A LOT OF TIMES WILL COME FROM THE STRATEGIC PLAN.
IN DECEMBER, WE START AN ALLOCATION STUDY, AND THAT IS REALLY OUR OVERHEAD ALLOCATION FOR ALL OF OUR DEPARTMENTS ACROSS THE CITY.
IT IS, WE HAVE A MANAGEMENT COMPANY THAT PERFORMS THAT AND CALCULATES IT.
AND IT'S ONE OF THE FIRST THINGS THAT WE TRY TO DO SO THAT WE CAN GET IT, UM, ENTERED INTO OUR BUDGET.
UH, IN JANUARY, WE WILL HAVE OUR KICKOFF MEETING, OUR KICKOFF WORKSHOP WITH COUNCIL.
AND THAT'S REALLY FOR YOU, THE COUNCIL TO TELL US REALLY WHAT YOUR PRIORITIES ARE THAT YEAR.
UM, AND THE, THE GUIDELINES, THE, THE GUARDRAILS, IF YOU WANT A 10% RESERVE BALANCE, THAT TYPE OF THING.
BUDGET WORKSHOPS, UM, ARE OCCUR THROUGHOUT THE BUDGET CYCLE.
BUDGET CYCLE'S, REALLY JANUARY THROUGH JUNE.
AND SO WE'LL HAVE A VARIETY OF DIFFERENT WORKSHOPS THAT CAN, ONCE AGAIN, IT CAN BE COUNCIL REQUESTS, THINGS THAT YOU'RE INTERESTED IN, THAT YOU REALLY WANT TO GET INTO DEEPER IN THAT BUDGET.
UM, AND THEN WE HAVE, ONCE WE, WE GO THE, THE WORKSHOPS HAPPEN THROUGHOUT THE WHOLE PROCESS, BUT THEY CAN BE, THEY START IN JANUARY WITH COUNCIL, AND THEN AS WE START IN JANUARY TO FEBRUARY, EVERYONE, ALL THE DIFFERENT DEPARTMENTS ENTER THEIR OWN BUDGET IN OUR SOFTWARE.
AND THAT'S WHERE WE COME TO OUR BASE, AND THEN WE'LL COMPILE IT AND HAVE A, A VERY PRELIMINARY BUDGET, AND WE GO FROM THERE.
SO ONCE THE BUDGETS ARE, IT'S PROBABLY, I GUESS MAYBE MARCH IS WHEN ALL THOSE BUDGETS ARE IN, AND THEN WE START LOOKING AT THEM.
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WE HAVE A BUDGET REVIEW COMMITTEE, WHICH IS, UH, THE CITY MANAGER.THIS HAS ONLY BEEN THE LAST COUPLE YEARS WHERE WE HAD THIS CITY MANAGER, FINANCE DIRECTOR, HR DIRECTOR, AND, UM, OUR BUDGET ANALYST THAT PULLS IT ALL TOGETHER.
SO WE MEET WITH EVERY DEPARTMENT AND WE DISCUSS THEIR BUDGET.
IF IT'S A YEAR THAT WE NEED TO REDUCE OUR BUDGET BECAUSE WE KNOW THAT SALES TAX AREN'T COMING IN, WE WILL COMMUNICATE THAT.
THAT'S GENERALLY COMMUNICATED, YOU KNOW, IN JANUARY WE, WE TRY TO LOOK AT THAT KIND OF THING.
BUT, UM, SO AFTER WE GET THE BUDGET ENTERED, WE PULL IT TOGETHER.
AND I'VE GOT A PIECE HERE THAT SAYS THE DEPARTMENT HEAD MEETINGS.
WE HAVE DEPARTMENT HEAD MEETINGS TO COMMUNICATE COUNCIL GOALS AND EXPECTATIONS.
WE DO THAT ALSO THROUGH MANAGEMENT STAFF THAT WE HAVE TWICE A MONTH.
SO IF EVERYTHING CHANGES, ANYTHING CHANGES AT THE COUNCIL LEVEL, WE'LL COMMUNICATE THAT THAT WAY AND WORK IT INTO OUR BUDGETS.
SO WE DEVELOP THE BUDGET CONSISTENT WITH THE GOALS OF THE COUNCIL.
THE CITY MANAGER REVIEWS THE BUDGETS.
WHEN WE GET TO, UM, REALLY MAY WE EVALUATE IT.
EVERYBODY'S LOOKING AT IT AND TALKING ABOUT IT, ADJUST IT TO THINGS THAT THE COUNCIL WOULD LIKE TO SEE.
IF IT'S NOT WHAT YOU WANT, THEN WE PRODUCE A FINAL BUDGET.
SO THERE'S, THERE'S TRULY A KATHY, BEFORE YOU, BEFORE YOU GO ON.
GO BACK TO THAT SLIDE IF YOU WOULD.
SO THIS IS KIND OF THE GENERAL OVERVIEW OF IT INCLUDED IN THIS PROCESS TODAY, WE DON'T HAVE A FORMAL CERTIFICATION PROCESS ESTIMATING OUR REVENUE.
I MEAN, I, I, I SAW WHAT HAPPENED THIS PAST YEAR WHERE WE HAVE THAT, THAT FIRST WORKSHOP, AND WE TALK ABOUT REVENUE, WE TALK ABOUT WHERE IT IS, BUT WE DON'T GO THROUGH THE PROCESS SIMILAR TO WHAT OTHER MUNICIPALITIES DO AND WHAT THE STATE DOES, WHERE WE GIVE A NUMBER, SAY IN, IN JANUARY OR FEBRUARY, AND THEN WE COME BACK AND GIVE A FINAL NUMBER IN MARCH, APRIL, SOMEWHERE IN THERE AND SAY, THAT'S THE NUMBER WE'RE GONNA APPROPRIATE.
NO, THE ONLY THING WE DO IS WE DO, WE DO SAY WHAT OUR PARAMETERS ARE AND HOW WE'VE ESTIMATED IT.
AND SO YOU DO SEE IT, BUT IT'S NOT AN OFFICIAL SEPARATE PROCESS.
ANY, ANY OTHER QUESTIONS RIGHT NOW? OKAY.
SO BY STATUTE, THIS IS WHAT, THIS IS OUR TIMELINE THAT WE HAVE TO MEET.
SO A PUBLIC BUDGET HEARING MUST BE HELD NO LATER THAN 15 DAYS PRIOR TO JULY 1ST.
WE USUALLY HAVE IT JUNE 9TH, JUNE 12TH, SOMETHING LIKE THAT.
BUDGET IS THE PUBLISHED NO LESS, THE BUDGET IS PUBLISHED NO LESS THAN FIVE DAYS BEFORE THE DATE OF THE PUBLIC HEARING.
AND THAT'S, THAT WILL BE TYPICALLY, WE PUBLISH IT IN THE DAILY OKLAHOMAN.
AND, UM, SO THAT'S OUR PROOF THAT WE HAVE PUBLISHED IT.
OUR BUDGET ADOPTION HAS TO BE AT LEAST SEVEN DAYS PRIOR TO JULY 1ST, THE BUDGET TRANSMITTAL, SO THE ACTUAL FINISHED PRODUCT IS ADOPTED, IS TRANSMITTED TO THE OKLAHOMA STATE AUDITOR WITHIN 30 DAYS AFTER JULY 1ST.
AND THE BUDGET TRANSMITTAL CONSTITUTES AN APPROPRIATION OF EACH FUND.
SO ONCE, ONCE YOU GUYS ADOPT IT, WE TRANSMIT IT.
SO OUR BUDGET CREATION IS DONE THROUGH BUDGET WORKSHOPS, DEPARTMENTAL ENTRY, WE HAVE THE BUDGET REVIEW COMMITTEE THAT MEETS WITH EACH DEPARTMENT.
EVERYONE REVISES THEIR BUDGET.
AND THAT MEANS THAT YOU'RE LOOKING, WHEN YOU'RE BUDGETING, WE START WITH TWO YEAR PRIOR ACTUAL, SO OUR CONSOLIDATED FINANCIAL STATEMENTS THAT ARE AUDITED, THEN YOU'RE IN THE YEAR THAT YOU HAVEN'T COMPLETED.
AND SO YOU'RE ESTIMATING THAT AS YOU GO.
AND THEN YOU'RE BUDGETING FOR THE FOLLOWING YEAR.
SO THAT'S WHAT REVISED BUDGETS MEAN.
WE COME UP WITH A DRAFT BUDGET, WE FINALIZED A BUDGET AND PRESENT IT AT A PUBLIC HEARING.
MEANTIME, WE'VE HAD BUDGET WORKSHOPS AND SUCH, AND WE CAN ADJUST IT IF THERE ARE THINGS THAT YOU GUYS ARE SEEING.
AND THEN FINALLY, WE ADOPT THE BUDGET.
SO THE BUDGET MANAGEMENT AT THIS TIME IS DEPARTMENTS PLAN FOR THE ANNUAL, THEIR ANNUAL NEEDS BASED ON APPROVED APPROPRIATIONS.
SO ONCE WE PASS A BUDGET, ADOPT IT, FILE IT, THEN YOU, EVERYBODY HAS THEIR BUDGET.
AND SO THROUGHOUT THE YEAR, ALL THE DEPARTMENT HEADS WILL BE WATCHING THEIR BUDGET AND SPENDING APPROPRIATELY OR ACCORDINGLY.
AND, UH, EVERY TIME WE GET A PURCHASE ORDER, WE WILL GO TO COUNSEL WHEN A PURCHASE ORDER IS REQUIRED AND REQUEST THAT ON AN AGENDA ITEM.
AND THAT ALLOWS THE PURCHASE ORDER TO BE CREATED.
AND WE HAVE SEVEN A MONTHLY MEETINGS, SO THAT'S TWICE A MONTH.
GENERALLY SPEAKING, YOU'LL SEE THAT TYPE OF THING.
UH, PURCHASING VERIFIES THE APPROPRIATION AVAILABLE FOR EACH AGENDA ITEM.
AND THEN ONCE THAT HAPPENS, THE FUNDS ARE SPENT, DEPARTMENTS REVIEW
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THE CURRENT STATUS OF THE BUDGET TO ACTUAL THROUGHOUT THE YEAR.AND THAT ANY DEPARTMENT HEAD OR ANY ONE CAN DO THAT AT ANY POINT.
UM, IT'S OUR, IT'S JUST OUR FINANCIALS THAT ARE IN OUR SYSTEM AND EVERYBODY HAS ACCESS TO THEIR OWN.
SO YOU CAN SEE AT ANY TIME WHAT'S BEEN SPENT.
THEN, UM, ADDITIONAL APPROPRIATION OF FUNDS OCCUR THROUGHOUT, THROUGH BUDGET AMENDMENTS APPROVED BY COUNCIL, AND THE DEPARTMENT HEADS ARE RESPONSIBLE FOR MANAGEMENT OVER THEIR BUDGETS.
SO ARE THERE ANY QUESTIONS ABOUT THAT? NO.
SO THE YEAR END BUDGET, THEN OUR FISCAL YEAR END IS JUNE 30TH.
OUR BUDGET IS MONITORED THROUGHOUT THE YEAR BY EACH DEPARTMENT.
HEAD INVOICES ARE CURRENTLY ACCEPTED THROUGH SEPTEMBER 30TH, AND THAT IS STATE LAW THAT WE NEED TO LEAVE OUR BOOKS OPEN TO ACCEPT INVOICES THROUGH THAT DAY.
ALL INVOICES THAT ARE DATED PRIOR TO JUNE 30TH, WHICH IS OUR FISCAL YEAR END, ARE REPORTED IN THE, IN THE FYI AS FISCAL YEAR END OF JUNE 30.
SO THAT ANYTHING DATED IN THE WORK PERFORMED PRIOR TO JUNE 30TH IS BOOKED IN THAT YEAR.
PURCHASE ORDER EXPENDITURES, UM, ARE ABLE TO CONTROL HOW MUCH IS SPENT OF THE BUDGET THROUGH OUR SOFTWARE.
SO IF THERE'S A PURCHASE ORDER LIMIT, IT WILL STOP.
UH, BUT, UH, A REQUEST THAT THAT'S OVER, THAT'S OVER THE LIMITS ON THE PO.
ALL OTHER EXPENDITURES, LIKE CREDIT CARDS OR OTHER TYPES OF THINGS ARE, ARE MONITORED BY THE DEPARTMENT HEAD.
THERE'S NOT AN AUTOMATIC WAY TO FIND IT IN OUR SOFTWARE.
AND THEN BUDGET TO ACTUALS ARE REPORTED IN THE ANNUAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE GOVERNMENTAL FUNDS, BUT ADDITIONALLY, YOU CAN ALWAYS FIND IT IN YOUR PROFIT AND LOSS AS WELL.
ONE, IF YOU WOULD JUST BACK UP ONE SLIDE.
SO THAT THIRD BULLET INVOICES ARE CURRENTLY ACCEPTED THROUGH SEPTEMBER 30TH.
WHEN YOU SAY INVOICES ARE CURRENTLY ACCEPTED, IT MEANS THAT ANY EXPENDITURE DURING THAT FISCAL YEAR, THAT PREVIOUS FISCAL YEAR THAT ENDED ON JUNE 30TH, IF IT HAS NOT BEEN INVOICED TO US YET, WE WILL STILL ACCEPT INVOICES FOR THAT 90 DAY PERIOD YES.
IT DOESN'T MEAN YOU'RE GONNA GO OUT AND SPEND MORE.
IT MEANS WE HAD TO HAVE, BASICALLY, WE HAD TO HAVE THE ENCUMBRANCE IN PLACE TO PAY THE BILL EVEN IF WE DID NOT HAVE THE ENCUMBRANCE IN PLACE.
AND WE ARGUE WE WILL HAVE THOSE EXCEPTIONAL RIGHT, RIGHT.
SITUATIONS THAT OCCUR WHERE WE HAVE, UH, UH, A CHARGE THAT WE WEREN'T ANTICIPATING THAT SLIPPED THROUGH THE PROCESS THAT WE HAVE TO DEAL WITH.
AND, YOU KNOW, UH, SOME OF THE LARGER INVOICES THAT FALL INTO THIS ARE, ARE, UH, CONSTRUCTION CONTRACTS.
THEY'RE, THEY'RE GOOD SIZED PAYMENTS.
SO, AND YOU KNOW, TYPICALLY NO ONE, WE DON'T RECEIVE.
YOU, YOU, WE CAN'T GET A JUNE BILL BY JUNE 30TH.
IT'S GONNA BE AT LEAST A FALL.
CAN I JUST CLARIFY THE STATE STATUTE? SO DOES IT, DOES IT SAY, I THINK THE WAY YOU SAID IT, KATHY, WAS WE HAVE TO LEAVE OUR BOOKS OPEN TO SEPTEMBER 30TH.
IS THAT WHAT IT SAYS? OR DOES IT SAY, I'LL LET BRENDA ANSWER THAT.
WE CAN, WE PUBLISHING THE PAPER TWICE.
WE HAVE, WE PUBLISHED IN THE NEWSPAPER TWICE AFTER THE AFTER JULY ONE STATING BASICALLY THAT ANY CLAIM TO DO UPON THE CITY FOR THE PRIOR YEAR BE HONORED UP UNTIL SEPTEMBER 30TH.
BUT THE COMMITMENT AND THE SERVICE HAS TO BE MADE IN THAT PRIOR YEAR, IN THE FISCAL YEAR, RIGHT? YEAH.
SO IF WE HAD, IF WE KNEW ALL OF OUR INVOICES WERE IN JULY 15TH, WOULD WE STILL HAVE TO LEAVE IT OPEN? YOU WOULD, YOU WOULD STILL HAVE TO DO THAT BECAUSE THE LAW REQUIRES IT.
BECAUSE EVEN THOUGH WE MIGHT FOLLOW UP WITH THE, WITH THE VENDORS AND WHATEVER AND SAY, HEY, YOU KNOW, WE'RE FIXING THE, YOU KNOW, HAVE, HAVE YOU SHIPPED THIS, WE GOT IT.
IF, IF, IF THEY DON'T GET IT TO US, TECHNICALLY WE DID COMMIT TO BY, ESPECIALLY IF WE'VE GOT A PURCHASE ORDER SAYING THAT.
SO WE GIVE THEM TO THE LAW, GIVES THEM UNTIL SEPTEMBER 30TH TO GET THOSE CLAIMS PRESENTED TO THE CITY FOR, FOR BAIL.
THAT'S ONE OF THE BIG DRIVERS TO CLOSE IN THE YEAR.
YOU'VE HEARD ME PONTIFICATE ON THIS.
I WANNA CLOSE THE YEAR FASTER SO WE ALL KNOW WHERE WE STAND.
BUT I THINK THAT'S A LIMITATION ON KIND OF A HARD LIMIT ON, AT LEAST ON THE FINAL, FINAL NUMBERS I START, WE CAN ESTIMATE AND WE KIND OF KNOW WHERE WE'RE AT.
YOU NEED PEOPLE TO LOOK, YOU KNOW, TRACK OUT INVOICES, LOOK AT YOUR POS.
IS THERE ANYTHING WE CAN CLOSE MM-HMM
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IT SOUNDS LIKE WE CAN'T FORMALLY CLOSE THE BOOKS.IT, YEAH, IT WOULDN'T, WE, WE WOULD STILL HAVE TO DELETE THAT, BUT, OKAY.
I ALSO WANTED TO MENTION, SORRY, JUST FOR THOSE WHO AREN'T ON THE FINANCE COMMITTEE THAT WE'RE WORKING ON HAVING SOME KIND OF A QUARTERLY, I MEAN, WE'RE NOT MANAGING STAFF, BUT LIKE A QUARTERLY LOOK AT BUDGET VERSUS ACTUALS, JUST SO WE CAN KIND OF SEE WHERE THINGS STAND.
I DON'T KNOW THAT WE'VE HAD THAT IN THE PAST.
SO THAT'S SOMETHING THAT WE'VE TALKED ABOUT PUTTING IN PLACE THIS YEAR.
SO THIS IS WHEN YOU GET TO THE YEAR END AND, WELL, IT CAN BE ANY TIME I GUESS DURING THE YEAR, BUT, UM, IT'S WHEN YOU HAVE CHANGES TO APPROPRIATIONS THAT ARE PRESENTED TO CITY COUNCIL FOR CONSIDERATION AS NEEDED THROUGHOUT THE YEAR.
SO A GOOD EXAMPLE IS DURING COVID, OUR WHOLESALE, UH, POWER PRICES WENT WAY UP.
SO THAT IS A GOOD EXAMPLE OF SOMETHING YOU DIDN'T EXPECT, BUT IT WAS SO MUCH THAT WE HAD TO COME BACK TO COUNCIL AND ASK FOR MORE BUDGET OF AUTHORITY, UM, OR APPROPRIATION.
CHANGES TO APPROPRIATIONS ARE APPROVED BY THE CITY COUNCIL, CHANGES TO APPROPRIATIONS ARE REPORTED TO THE STATE AUDITOR.
CHANGES TO APPROPRIATIONS ARE THEN RECORDED IN OUR BOOKS.
AND THEN, UM, WE RECENTLY AT FINANCE COMMITTEE APPROVED A NEW FINANCE COMMITTEE, TEMPORARY RECOMMENDATION FOR BUDGET ADJUSTMENTS, AND WE CAN DISCUSS THAT LATER.
BUT THAT'S A LITTLE BIT OF A CHANGE TO OUR PROCESS FOR BUDGET.
AND COUNCIL WILL SEE THAT AT THE NEXT COUNCIL MEETING.
NOT TONIGHT ON 25TH, BUT IN TWO WEEKS.
AND JUST SO THE REST OF THE COUNCIL IS AWARE OF WHAT FINANCE DID IS THEY CLEANED UP SOME LANGUAGE THAT WE HAD IN PLACE, WHICH WAS VAGUE.
WE HAD SOME UNDEFINED TERMS IN THE, THE BUDGET ADJUSTMENT POLICY THAT WAS APPROVED IN 1980.
UM, DOESN'T FOLLOW ANYTHING CLOSE TO WHAT WE'RE REALLY DOING, BUT WE ALSO WANTED TO MAKE IT SO THAT AS WE GET INTO THE CURRENT SITUATION OF TRYING TO FIGURE OUT HOW WE MOVE FORWARD ON OUR PROCESS, THAT WE DIDN'T HAVE TO HAVE THE CITY MANAGER COMING BACK TO THE COUNCIL, EVERY SINGLE COUNCIL MEETING TO DEAL WITH JUST CLEANING UP BUDGETS.
WE'RE NOT TALKING ABOUT ADDING APPROPRIATIONS TO THE BUDGET, JUST MOVING MONEY AROUND, WHICH WILL ALLOW US TO FOCUS ON WHAT THE REAL CHALLENGE IS.
AND YOU'LL SEE THAT IN TWO WEEKS.
JUST CURIOUS, HOW DO WE REPORT THOSE? OR HOW, AND WHEN MAYBE THOSE APPROPRIATION CHANGES TO THE STATE AUDITOR? IS THAT LIKE AN EMAIL HEADS UP, WE CHANGE THIS? OR DO WE MAIL A PAPER? IT'S LITERALLY, OH, NO, I BELIEVE THEY TAKE THOSE ELECTRONICALLY.
ARE THEY BATCHED UP? WE HAVE TO MAIL 'EM.
WE HAVE IS IT A MONTHLY LIKE REPORT OR IS IT LIKE A WE, WE, WE LITERALLY MAIL OUR ENTRY TO THEM.
WE MAIL IT AND PUT A, PUT A PIECE OF PAPER IN THE MAIL.
AND I HAVEN'T LOOKED RECENTLY, BUT I HAVE FOUND THOSE ONLINE BEFORE LITERALLY OUR ENTRY.
BUT, SO I GUESS THE IDEA IS YOU HAVE YOUR ORIGINAL BUDGET AND THEN IF YOU MAKE THOSE ENTRIES, WHICH WE MAKE IN OUR BOOKS, YOU WOULD COME IN THE SAME NUMBER.
AND OUR BUDGET IS AMENDED AT THAT POINT.
WHAT, WHAT DO THOSE LOOK LIKE WHEN WE DO A, WHEN WE DO A BUDGET AMENDMENT AND SUBMIT A, IS THERE A STANDARD FORM? HOW, HOW DO WE TAKE CARE OF THAT TO MAKE SURE THAT, UM, WE SEE THE CONSISTENCY THROUGHOUT TIME? IT, IT IS, IT'S LITERALLY WHAT WE BOOK.
SO IT'LL HAVE, IT SHOWS THE DEBITS AND THE CREDITS AND WHAT ACCOUNTS IT HITS TO THE FUNDS.
SHEILA, DO YOU HAVE ANYTHING ELSE TO ADD TO THAT? YEAH, JUDGE.
TO WHERE THINGS COMING FROM INTO TRUE.
SO, YOU KNOW, WHEN YOU SEE THE FISCAL IMPACT ON AN AGENDA ITEM, THAT, AND IF IT'S A SUPPLEMENTAL OR IF IT'S A BUDGET AMENDMENT, THAT'S WHAT WE BOOK.
I THINK THAT'S PROBABLY ONE MORE THING WE'LL BE LOOKING AT WITH OUR TASK FORCE IS BECAUSE WHEN, WHEN YOU DO THAT AND ALL YOU'RE DOING IS, IS SUBMITTING WHAT CHANGES COUNCIL SAW, WHICH WE'RE PROBABLY A LITTLE, WE'VE PROBABLY GOT A LITTLE BIT OF CURIOSITY ON THAT AS WELL AS HOW WE PRESENT IT TO THE COUNCIL IS WE KIND OF NEED TO KNOW, HERE'S WHAT IT WAS, HERE'S WHAT WE'RE DOING TO IT, AND HERE'S WHAT IT IS.
AND WHEN ALL YOU SEE IS A DOLLAR AMOUNT THAT SAYS WE'RE CHANGING THIS TO THIS, WHERE'S THAT STANDARDIZATION FOR US TO REALLY SEE WHAT THE BUDGET AS A WHOLE LOOKS
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LIKE.UM, AND I THINK THAT'S SOMETHING THAT WE NEED TO TAKE A LOOK AT, SEE WHAT, WHAT OTHER MUNICIPALITIES ARE DOING, HOW THEY HANDLE IT.
I WILL SAY WHEN YOU LOOK AT, AT OUR, AT EVERY PROFIT LOSS, THERE'S A CURRENT BUDGET COLUMN AND A ORIGINAL BUDGET.
THE CURRENT BUDGET INCLUDES ALL THOSE AMENDMENTS.
THAT'S REALLY WHERE YOU SEE IT, UM, FROM WHERE WE STARTED TO WHERE WE ARE NOW AND WHAT YOU CAN, WHAT YOU COMPARE TO BUDGET TO ACTUALS, YOU'LL USE THE CURRENT BUDGET.
ANY OTHER QUESTIONS?
AND ALSO I, I THINK MAYBE IT'S THE LOW TONES OF YOUR VOICE.
IT IS KIND OF HARD TO HEAR YOU DO.
SO MAYBE JUST GET REAL CLOSE IN THIS BIG, I CAN GET AS CLOSE TO THIS MICROPHONE AS YOU WANT ME TO
JUST TO MAKE SURE THAT I CAN HEAR YOU.
BUT NO, IT'S, I DON'T KNOW HOW TO STOP THERE.
THIS IS A CONVERSATION THAT WE'VE HAD I THINK OVER THE LAST COUPLE OF WEEKS IS WE KNOW IT SOUNDS A WHOLE LOT BETTER OUT THERE, BUT THERE ARE TIMES THAT IT IS MUCH HARDER TO HEAR UP HERE.
ANYTHING ELSE ON THIS SECOND? SO LET ME ASK, LET ME ASK THIS QUESTION.
HOW MUCH CONTROL DO OUR DEPARTMENT HEADS, BUDGET MANAGERS, WHATEVER, HOWEVER YOU WANNA LABEL IT, HOW MUCH CONTROL AND AND AUTHORITY DO THEY HAVE OVER WHAT HAPPENS? OVER WHAT MONEY THEY'RE QUOTE SPENDING? ANY DEPARTMENT HEAD THAT WOULD LIKE TO COME UP HERE CAN DO THAT.
BUT I'M GOING TO SAY IT'S AS THEY HAVE NEEDS.
SO WHETHER IT'S OFFICE SUPPLIES, YOU RUN OUTTA SOMETHING OR WHATEVER, THEY GO AHEAD AND BUY IT.
AND THEN THEY ARE, EVERYBODY REALLY IS JUST TO BE WATCHING THEIR BUDGET.
YOU SHOULDN'T OVERSPEND, YOU KNOW, ANY TYPE OF CATEGORY.
SO ANYWAY, EVEN IF YOU USE A CREDIT CARD, SPEAKING PERSONALLY, LIKE I MIGHT GO, OH, I'M GONNA LOOK AT DO I HAVE ENOUGH MONEY TO BUY A TABLE, UM, YOU KNOW, FOR OFFICE SUPPLIES.
AND IF I HAVE THE BUDGET, I GO AHEAD AND, AND BUY IT.
AND THEN TYPICALLY YOU JUST NEED TO MAKE SURE YOU'RE WAITING A COUPLE WEEKS, THREE WEEKS TO MAKE SURE THAT IT POSTS, YOU KNOW, SO IT'S GONNA TAKE A LITTLE BIT OF A LAG.
BUT OTHER THAN THAT, YOU SHOULD ALWAYS BE ABLE TO SEE WHERE YOU ARE ON YOUR BUDGET.
IT'S IN THE PROFIT AND LOSS, IT'S IN OUR SOFTWARE.
EVERYONE CAN SEE IT, AND YOU CAN DRILL DOWN ON ALL OF THOSE TWO AND SEE EVERYTHING THAT YOU SPENT.
SO IT'S REALLY JUST WATCHING IT AS BEFORE YOU SPEND REALLY.
SO IF WE WERE REALLY DOING THAT, WHEN WE GET TO YEAR END, IT SHOULD BE A LITTLE BIT CLEANER THAN WHAT WE'RE SEEING.
SHOULDN'T IT? WHEN YOU SAY CLEANER, YOU MEAN NOTHING? WELL, I MEAN, RIGHT NOW WE'RE DEALING WITH, AND MY EXPECTATION WAS THAT I WAS GONNA BE SITTING HERE THIS AFTERNOON WITH A LIST OF THE ITEMS THAT WE'RE NEEDING TO PAY THAT FOR ONE REASON OR ANOTHER, WE DON'T HAVE, WE DON'T EITHER HAVE AN ENCUMBRANCE FOR IT OR WE DON'T HAVE A PO OR WE'VE OVERRUN THE PO AND I DON'T HAVE ANYTHING.
UH, WE TALKED ABOUT A FEW THINGS LAST WEEK, BUT ULTIMATELY, UM, I MEAN, IF WE'RE WATCHING, IF WE'RE TRULY WATCHING OUR BUDGETS, WE SHOULD HAVE FAR FEWER OF THOSE THAN WE HAVE.
AND YOU KNOW, SO I'M NOT SAYING WE'RE NOT GONNA HAVE ANY, BECAUSE I WILL ACCEPT THE FACT IN THE OKLAHOMA MUNICIPAL BUDGET ACT ITSELF ANTICIPATES EXCEPTIONS.
THE PROBLEM IS, IS THEY DON'T GIVE US A CLEAN WAY TO SOLVE THE PROBLEM.
THEY JUST ACKNOWLEDGE IT'S GONNA HAPPEN.
UM, AND YOU KNOW, IT HAS BEEN, IT HAS BEEN A BATTLE, AND I THINK IT'S PROBABLY BEEN A BATTLE FOR QUITE A, QUITE A FEW YEARS.
I DON'T KNOW HOW LONG THIS GOES BACK OF WHEN YOU GET TO THIS POINT IN THE YEAR, YOU'VE GOT PURCHASING SCRAMBLING, YOU'VE GOT FINANCE SCRAMBLING, YOU'VE GOT COUNCILS ASKING QUESTIONS, AND YOU KNOW, NOW WE'VE GOT PRESTON WATERSON OVER HERE WANTING TO CLOSE THE YEAR FASTER.
AND WE'RE SITTING HERE TRYING TO FIGURE OUT HOW WE GET ALL THESE BILLS PAID AND WE SHOULDN'T HAVE TO FIGURE IT OUT.
WE OUGHT TO KNOW GOING INTO IT THAT IF WE'VE RECEIVED A SERVICE OR A PRODUCT AND WE KNOW AN INVOICE IS COMING, WE HAVE AN ENCUMBRANCE, WE KNOW WHAT'S HAPPENING.
AND ON THOSE FEW WHERE WE HAVE AN UNANTICIPATED CHARGE THAT POPS UP AGAINST ONE,
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WE DEAL WITH IT.I, IT JUST, TO ME, I THINK WE, WE'VE GOT SOME PROCESS ISSUES AND WE'RE SITTING HERE LISTENING TO IT AND WE'RE PUTTING OUR FINANCE STAFF AND OUR PURCHASING STAFF THROUGH THE RINGER TO TRY TO GET THROUGH THIS PROCESS.
WELL, AS YOU SAID IN THE VERY BEGINNING, WE ARE NOT, WE, WE'RE NOT OUT OF MONEY.
NO, WE'RE NOT NEAR BANKRUPTCY, NOTHING LIKE THAT.
WE HAVE ENOUGH FUNDS, RESOURCES, I'LL CALL THE RESOURCES BECAUSE IT IS PRIOR UNENCUMBERED UNSPENT FUNDS AND IT'S REVENUE THAT COMES IN AND IT'S LOANS.
AND SO WE HAVE PLENTY OF MONEY, IT JUST DOESN'T ALWAYS END UP ON THE RIGHT LINE OR THE RIGHT CATEGORY.
AND THAT'S TYPICALLY WHAT WE'VE, I DON'T LIKE THIS SAYING, BUT WHAT WE HAVE PRACTICED IN THE PAST IS WE ALWAYS WOULD CATCH ALL OF THAT UP.
'CAUSE WE HAVE ENOUGH MONEY MM-HMM
WE JUST NEED TO GET IT ON THE RIGHT AT THE RIGHT PLACE.
SO TYPICALLY WE'VE DONE THAT AFTER JUNE 30TH, AND THAT'S PART OF THE DISCUSSION NOW THAT WE'RE HAVING ON WHEN THAT NEEDS TO BE DONE AND THAT KIND OF THING.
SO IT'S NEVER BEEN A PROBLEM PAYING OUR BILLS.
IT'S, IT'S HAVING IT ON THE RIGHT SPOT IN THE BUDGET.
AND YES, WE DO HAVE THOSE THINGS THAT YEAR IN THAT COME UP THAT YOU DIDN'T EXPECT.
WE HAD A COUPLE THIS YEAR AND, UM, AGAIN, WHEN YOU MIGHT HAVE A VENDOR THAT DOESN'T SEND THE BILL RIGHT AWAY AND YOU MAY BE TWO MONTHS DOWN THE ROAD AND JUST, YOU JUST DIDN'T KNOW IT WAS COMING.
SO THOSE TYPES OF THINGS ARE ALWAYS GONNA HAPPEN.
BUT THAT'S WHY WE DO WATCH, WHEN WE DO THE BUDGET AMENDMENTS, WHEN I SAY WE LOOSELY, BUT EVERYONE, WHEN THEY THINK THEY NEED TO HAVE A BUDGET ADJUSTMENT, THEY KNOW WHAT THEIR FUND BALANCE, THEY KNOW WHAT THEIR RESOURCES ARE, THEY KNOW WHAT THEIR AVAILABLE RESOURCE RESOURCES ARE, AND THEY KNOW THAT THEY HAVE ENOUGH.
AND SO THE BUDGET ADJUSTMENT AND OR AMENDMENT WAS DONE AND IT WOULD CATCH EVERYTHING UP AND, AND THEN WE WOULD MOVE ON DOWN THE ROAD.
BUT THAT'S, I THINK THE PROCESS YOU'RE TALKING ABOUT.
WELL, I, I, I THINK MY, MY BIG CONCERN IN ALL OF THIS GOES TO THE FACT THAT WHEN WE HAVE CONVERSATIONS BETWEEN COUNCIL MEMBERS, CITY MANAGER, YOU, AND WE'RE TALKING ABOUT SUPPLEMENTAL APPROPRIATIONS, NOT JUST SHIFTING THE MONEY.
WHY, THE QUESTION IS, IS WHY DO WE GET TO THIS POINT IN THE YEAR THAT WE NEED TO BE PUTTING MORE REVENUE INTO THE BUDGET? THE BUDGET'S DONE WHAT HAPPENED THAT WE COULDN'T LIVE WITHIN OUR BUDGET, I'M SORRY, IN THE ASSISTANT CITY MANAGER ADMINISTRATION.
I, WE'VE BEEN TALKING ENOUGH, I'M TRYING TO, WE'RE GETTING THIS, THIS SPACE.
UM, I, I ALSO KNOW THAT IN COUNCIL, THIS IS AN ORGANIZATION THAT PRIDES ITSELF ON CONTINUOUS IMPROVEMENT.
SO ABSOLUTELY, I THINK WE'RE ALWAYS LOOKING TO, AND THE WAY THAT WE'RE DOING THINGS, AND WE LOOK FORWARD TO DOING THAT AS MOVING FORWARD THROUGH THIS FISCAL YEAR.
I THINK WE'VE DONE A DECENT JOB BEFORE, BUT I KNOW THAT WE CAN GET BETTER.
SO YEAH, AND THAT WAS PROBABLY A PRETTY GOOD THING TO SAY AT THIS POINT WHEN YOU'RE TALKING TO SOMEONE WHO DOES CONTINUOUS IMPROVEMENT PROFESSIONALLY.
UM, I, I, I DO, I DO LOOK AT IT AND SAY, THIS IS THE TIME TO FIX THIS.
AND, AND RANDY AND I HAVE HAD THIS CONVERSATION.
AND IT'S NOT JUST BECAUSE SOME OF US SITTING UP HERE THINK WE OUGHT TO BE DOING IT DIFFERENTLY.
IT'S BECAUSE STATE LAW SAYS WE SHOULD BE DOING IT DIFFERENTLY.
AND IT CONCERNS ME WHEN WE'VE GOT ISSUES WRAPPED AROUND WHETHER IT IS GETTING POS ISSUED, GETTING POS CHANGED, GETTING CONTRACTS SIGNED, WHATEVER IT IS.
I HAVE SAID IT, AND I'LL SAY IT AGAIN, I'M NOT GONNA SIGN ANYTHING THAT VIOLATES STATE LAW.
I'M NOT GONNA LET ANY OF US, AND THAT'S EVERYBODY IN THIS ROOM.
AS I LOOK AROUND AT EVERYONE ON OUR CITY STAFF, I'M NOT GONNA LET US DO THAT.
AS THE MAYOR OF THIS CITY, I'M GONNA MAKE SURE THAT WE ARE FOLLOWING STATE LAW AND IT CAN BE DIFFICULT AT TIMES, AND WE'RE JUST GONNA HAVE TO BITE THE BULLET.
AND YEAH, IT'S GONNA BE TOUGH TO UNTANGLE SOME OF THE THINGS THAT WE HAVE EVOLVED INTO OVER A HUNDRED YEARS, BUT THAT IS WHAT CONTINUOUS IMPROVEMENT IS ABOUT.
IT'S ABOUT LOOKING AT IT AND SAYING, OKAY, HOW DO YOU CORRECT IT? HOW DO YOU MOVE FORWARD?
[00:30:02]
UM, I THINK IT'S PRETTY OBVIOUS THAT I'M NOT GONNA TURN LOOSE OF THIS THING BECAUSE THIS IS AN OPPORTUNITY FOR US AS A MUNICIPAL GOVERNMENT TO REALLY MOVE FORWARD AND GET US ON THE RIGHT FOOT TO SERVE THE CITIZENS OF EDMOND IN A WAY THAT EVERYBODY UNDERSTANDS WHERE WE'RE AT AND WHERE WE'RE GOING.SO KATHY, I APPRECIATE EVERYTHING THAT YOU HAVE DONE TO HELP US TRY TO UNDERSTAND WHAT'S HAPPENING.
UM, AND I KNOW THAT, THAT WE HAVE HAD A LOT OF CONVERSATION WITH YOU OVER THE LAST FEW MONTHS.
AND YOU KNOW, THE, THE, THE BIGGEST CHALLENGE IS WHEN WE LOOK AT YEAR END IS HOW DO WE, HOW DO WE MAKE THE YEAR END PROCESS BETTER? AND A PIECE OF THAT, YOU KNOW, IS THE NEXT ITEM ON THE AGENDA.
AND THAT'S FOR BRENDA TO EXPLAIN THE PURCHASING PROCESS ITSELF.
I THINK IT MIGHT BE HELPFUL FOR THE PUBLIC TO GET SOME CLARIFICATION ON THE DIFFERENCE BETWEEN A BUDGET AMENDMENT AND A BUDGET ADJUSTMENT.
I'D LIKE TO HEAR MORE ABOUT THAT.
YOU WANNA HEAR IT FROM ME? YOU WANNA HEAR IT FROM STAFF, YOU WANNA HEAR IT FROM BOTH SIDES.
YOU WANNA HEAR IT FROM OUR CITY ATTORNEY.
HOW, I MEAN, WE'VE GOT DIFFERENT ANGLES ON THIS.
WELL THEN MAYBE WE DO NEED CLARIFICATION, MORE CLARIFICATION THEN.
SO I I WILL, I WILL GIVE MY STATEMENT ON THIS.
MS. SAWYER CAN CHIME IN IF SHE NEEDS TO.
KATHY, UM, ANDY, YOU ALL CAN JUMP IN AS WELL, BUT WHEN WE TALK ABOUT A BUDGET ADJUSTMENT, WE'RE TALKING ABOUT MOVING MONEY WITHIN THE BUDGET WITHOUT ADDITIONAL DOLLARS.
AND THEN A SUPPLEMENTAL APPROPRIATION IS WHERE WE ADD REVENUE TO THE BUDGET.
WE ADD DOLLARS BOTH ON THE EXPENDITURE SIDE AND THE REVENUE SIDE.
EXCEPT THAT WITHIN A, WITH JUST AN AMENDMENT, ALL YOU'RE DOING IS MOVING MONEY FROM ONE CATEGORY TO ANOTHER.
SO WHEN YOU DO A SUPPLEMENTAL APPROPRIATION, YOU'RE ACTUALLY ADDING MONEY.
NOW, IT DOESN'T MATTER WHAT YOU CALL IT, WHICH WAY YOU GO.
EITHER WAY IT IS A BUDGET AMENDMENT.
AND WHEN YOU DO A BUDGET AMENDMENT, WE HAVE TO FOLLOW WHAT THE STATE'S STATUTES SAY.
SO WE DON'T NEED TO BE CALLING THEM SUPPLEMENTAL APPROPRIATIONS WHEN WE PUT IT INTO OUR PACKETS.
WE DON'T NEED TO BE CALLING IT A BUDGET ADJUSTMENT.
WE NEED TO BE CALLING IT A BUDGET AMENDMENT BECAUSE THAT'S REALLY WHAT IT IS.
EVERY TIME WE MAKE A CHANGE AND SUBMIT IT, IT IS A BUDGET AMENDMENT.
YOU WANNA ADD ANYTHING TO THAT, KATHY? NO.
DID I, DID I DO A GOOD JOB?
WE ARE, BUT THE, THE LEGAL TERMINOLOGY IS BUDGET AMENDMENT.
I'M LOOKING AT YOU WHEN I SAY THAT.
SURE, WHY NOT? SO UNDER THE MUNICIPAL BUDGET ACT, THE BUDGET MAY BE AMENDED BY A TRANSFER OF APPROPRIATION, A SUPPLEMENTAL APPROPRIATION OR A REDUCTION IN APPROPRIATION.
MY UNDERSTANDING OF WHEN WE USE THE TERM BUDGET ADJUSTMENT IS WHEN THE GOVERNING BODY WOULD DELEGATE TO THE CITY MANAGER AUTHORITY TO MAKE WHAT IS ALSO REFERRED TO AS AN FUND TRANSFER.
MEANING HE COULD AUTHORIZE TRANSFERS, TRANSFER OF FUNDS FROM LIKE ONE ACCOUNT TO ANOTHER WITHIN THE SAME FUND, BUT NOT FROM ONE FUND TO ANOTHER FUND.
THAT ALWAYS HAS TO GO TO CITY COUNCIL AS A TRANSFER OF APPROPRIATION, WHICH WILL BE A BUDGET AMENDMENT.
SO THAT'S KIND OF THE DISTINCTION IN MY VIEW, IF THAT HELPS.
BUT THOSE MIGHT NOT ALWAYS INCREASE YOUR, YOUR APPROPRIATION.
JUST SAYING OTHER QUESTIONS BEFORE WE JUMP INTO THE PURCHASING SIDE.
[3. Presentation and Discussion Regarding the Purchasing Process and the Process for Encumbering Funds.]
WE'RE GONNA LET YOU TALK NOW, BUT YOU'RE GONNA HAVE TO TALK INTO THAT MICROPHONE.PULL IT CLOSER TO YOU, PLEASE.
[00:35:01]
PURCHASING AGENT, BRENDA MAYOR.WHAT WE'RE GONNA TALK ABOUT IS WHAT IS AN ENCUMBRANCE, THE ROLE OF CITY DEPARTMENTS, OUR WORKFLOW PROCESS FOR ENCUMBERING FUNDS, APPROVAL OF PURCHASE REQUESTS, AND THEN I JUST PUT IN A LITTLE CUTE LITTLE GRAPH PURCHASING REQUEST PROCESS AT A GLANCE.
I'M GONNA ASK YOU TO GET JUST A LITTLE BIT CLOSER TO THAT MICROPHONE.
YOU CAN ALMOST EAT IT IF YOU WANT TO.
AND ROLE OF PURCHASING AGENT AND THEN A SUMMARY.
SO FIRST OF ALL, I, IN, IN UNDERSTANDING ENCUMBRANCE AND ENCUMBRANCE IS A COMMITMENT OF FUNDS SET ASIDE FOR FUTURE EXPENSES, ENSURING THAT YOU HAVE THE PROPER BUDGET ALLOCATION.
UH, FIRST STEP, THE INITIAL STEP IS THE BUDGET APPROVAL.
YOU APPROVE THE BUDGET TO ALLOCATE THE FUNDS FOR YOUR, YOUR VARIOUS PROJECTS AND THE EXPENSES THAT YOU'RE GONNA HAVE THROUGHOUT THE, THE FISCAL YEAR.
ONCE YOUR BUDGET IS APPROVED, THE APPROPRIATIONS MUST BE ENCUMBERED IN THE FINANCIAL SYSTEM TO TRACK THE FUNDS FOR SPECIFIC PURCHASES.
THIS IS ALSO THE PART WHERE IT MOVES IT TO AN ENCUMBRANCE COLUMN AND DEDUCTS IT FROM YOUR BALANCE SO THAT YOU KNOW, YOUR BALANCE OVER HERE HAS YOUR ACTUALS AND YOUR ENC CONFERENCES.
FUND ALLOCATION IS ENSURING THAT THE ALLOCATED FUNDS ARE PROPERLY ENCUMBERED.
IT ALLOWS THE ORGANIZATION TO MANAGE THEIR FINANCIAL RESOURCES.
IF, IF EVERYTHING THAT WE THOUGHT WE WERE GONNA SPEND MONEY ON, OFFICE SUPPLIES, CHAIRS, CONSTRUCTION, MOWING, EVERYTHING, WE HAD A PURCHASE ORDER FOR EVERYTHING THAT WAS ENCUMBERED, YOU SHOULD BE ABLE TO GLANCE AT IT AND TELL, YOU KNOW, MAYBE I'M GONNA HAVE A THOUSAND DOLLARS MORE MOWING THIS YEAR 'CAUSE OF THE RAIN AND I'M LOOKING AT MY MOWING PO I MAY NEED TO GO AHEAD AND DO THAT BUDGET TRANSFER, WHATEVER YOU'RE CALLING IT NOW, SO THAT I DON'T WIND THAT SHORT IN JUNE.
SO THAT'S KIND OF WHAT THAT IS.
THE WAY THE ROLE OF THE DEPARTMENTS IN ENCUMBERING IS THEY IDENTIFY THE NEED.
CITY DEPARTMENTS MUST IDENTIFY THEIR RESOURCE NEEDS TO SUBMIT EFFECTIVE PURCHASE REQUESTS THAT SUPPORT THEIR OP OPERATIONS.
ONCE THEIR NEEDS ARE IDENTIFIED, THE DEPARTMENTS ENTER THE PURCHASE REQUESTS TO PREEN INCOME FUNDS.
SO WHEN THE PR IS ENTERED INTO OUR FINANCIAL SYSTEM, THE FUND ARE TECHNICALLY PREEN UNCOVERED.
SO THEY'RE NOT FULLY ENCUMBERED UNTIL THE PURSE ORDER IS ISSUED, BUT IT WILL DEDUCT AT THE PRE ENCUMBERMENT STAGE AND UNTIL IT'S EITHER DELETED OR TURNED INTO A FIRST ORDER.
UM, THIS STEP OF THE PREEN NCE ALSO BLOCKS REQUESTS THAT WOULD EXCEED BUDGET APPROPRIATIONS.
SO IF COME UP IN JUNE, JUNE, WELL, WE USUALLY CUT OFF POS TWO WEEKS BEFORE THE END OF THE YEAR JUST SO THAT WE HAVE TIME TO HOPEFULLY LOOK AT THESE THINGS.
SO IF YOU'RE AT THAT POINT IN TIME AND SOMETHING COMES UP AND YOU THINK, OH, I'VE GOTTA HAVE THIS AND YOU DIDN'T TAKE A LOOK AT YOUR BUDGET, YOU DIDN'T, YOU KNOW, CLOSE ANYTHING OR REDUCE ANYTHING OR MAKE ANY CHANGES TO FREE UP SOME, YOU KNOW, SOME BUDGET, DON'T WORRY.
BUT, UM, WHAT WILL HAPPEN IS WHEN YOU GO TO ENTER THIS $8,000 REQUISITION THAT FOR WHATEVER CAME UP THAT YOU WEREN'T ANTICIPATING IS GONNA BLOCK YOU IF YOU DON'T HAVE THE FULL 800,000 IN THAT CATEGORY, THAT GROUP, SO IT'LL BLOCK IT THEN, AND THEN IT KIND OF FORCES YOU TO, OKAY, WHY IS IT DOING THIS NOW I NEED TO LOOK AT MY BUDGET AND SEE IF THERE'S ANY POS I CAN REDUCE TO FREE UP SOME MONEY.
OR AM I GONNA HAVE TO DO A SUPPLEMENTAL OR TRANSFER? IS IT BLOCKING IT AT THE FOUR DIGIT OBJECTIVE EXPENDITURE CODE OR AT THAT GROUPING? IT'S AT THE GROUP.
THE THREE, LIKE THE 100, WELL NOT THE 100 GROUP.
SO 200 GROUP TO 300 GROUP OR THE 400 GROUP.
AND WHAT, WHAT'S THE SYSTEM WE USE TO MANAGE ALL THIS? UH, FINANCE ENTERPRISE.
FINANCE ENTERPRISE? UM, I HAD ONE SOLUTION SINCE SQUARE FINANCE ENTERPRISE.
AND ONGOING PROCESSES IS WHAT DEPARTMENTS NEED TO BE TO MONITOR THEIR BUDGETS, BUDGET BALANCE TO MONITOR THEIR PURCHASE ORDER STATUS.
THIS IS WHERE, YOU KNOW, YOU DID A PO IN JULY AND YOU'RE LIKE, APRIL OF FOLLOWING THIS YEAR, YOU STILL HAVE AN OPEN PO.
OKAY, WELL DID I GET THE STUFF? DID THEY DO THE WORK I NEED, I NEED TO FOLLOW UP, I NEED TO FIND OUT SO WE CAN GET THIS TAKEN CARE OF YOU.
[00:40:01]
THE NUMBER OF POS THAT I STILL HAVE THAT ARE STILL IN PO STATUS AT THE END OF THE YEAR.YOU JUST, EITHER WE DON'T HAVE THE STUFF OR IT JUST GOT, WE CAN GET BILLED AND THINGS LIKE THAT.
SO I TRY TO REMIND PEOPLE, IF YOU DON'T HAVE AN INVOICE AND IT'S BEEN A WHILE, CALL 'EM, YOU KNOW, GET IT IN AND WE NEED TO GET THIS DONE.
UM, COVER APPROPRIATED MONTHS THROUGHOUT THE YEAR AS NEEDED.
DEPARTMENTS DO IT TOTALLY DIFFERENT WAYS.
SOME PEOPLE ORDER ENCUMBER ORDER EVERY MONTH FOR THEIR MONTHLY WHATEVER, MOWING ALARM MONITORING, WHATEVER.
SOME WILL ORDER A WILL ENCUMBER THEIR WHOLE ENTIRE BUDGET FOR THAT PARTICULAR, LIKE IF THEY GOT CHEMICALS THAT THEY KNOW THEY'RE GONNA SPEND 700,000 ON, THEY'LL DO THE WHOLE 700,000 BECAUSE IT'S A LOT EASIER TO REDUCE THAT PO AND FREE UP SOME MONEY.
BRENDA, YOUR VOICE IS GETTING SOFTER AND SOFTER.
IT, IT IS, IT'S A LOT EASIER TO ASK ME TO REDUCE THE PO TO FREE UP SOME MONEY THAN IT IS TO GO TO COUNSEL TO ASK FOR MORE MONEY.
SO THAT'S KIND OF HOW THAT PROCESS AND RECONCILE THE CREDIT CARD CHARGES.
THAT'S ALSO, WE DON'T ACTUALLY, WELL I SOMEWHERE AFTER THE 15TH IS WHEN THE CREDIT CARD TRANSACTIONS ARE ACTUALLY POSTED.
THEY RUN THE CYCLE RUNS FROM THE SIXTH TO THE SEVENTH OF EACH MONTH.
SO WHEN THE, LIKE THE CYCLE THAT JUST CLOSED IS ACTUALLY FOR JULY CHARGES THAT IT WILL NOT ACTUALLY HIT THE GENERAL LEDGER UNTIL IN THE NEXT COUPLE OF WEEKS.
SO AFTER THAT IS WHEN SOMEBODY WOULD WANT TO STOP ME, TAKE A LOOK AND SAY, OKAY, THESE ARE MY CREDIT CARD TRANSACTIONS THAT CAME THROUGH BECAUSE THEY'RE STILL GOING TO, THEY'RE GONNA HIT THE GENERAL ELECTRIC JUST LIKE A PURCHASE ORDER WILL.
AND THE ENCUMBRANCE PART OF THAT PARTICULAR PROCESS IS WE HAVE A BLANKET PO PAYABLE TO THE CREDIT CARD CITY OF EDMOND CREDIT CARD THAT BLOCKS OUT A PORTION AT ONE TIME IT WAS EQUAL TO ONE CYCLES SPEND PER DEPARTMENT'S GROUP SO THAT WE WOULD SATISFY THE ENCUMBRANCE PROCESS AND THEORETICALLY THEY WOULDN'T STILL BE ABLE TO OVERSPEND.
BUT THAT'S HOW WE ACCOMPLISHED THAT.
SO WHAT I'M, WHAT I THINK I JUST HEARD IS WE REALLY DON'T HAVE A STANDARD PROCESS THAT OUR MANAGERS ARE USING TO ENCUMBER THEIR DOLLARS.
WHEN YOU LOOK AT 12 MONTH EXPENDITURES, SOME ARE DOING A BPO AND ENCUMBERING THE FULL AMOUNT, SOME ARE DOING IT A MONTH AT A TIME OR A QUARTER AT A TIME.
WHICH OBVIOUSLY MAKES IT DIFFICULT TO MANAGE THE MONEY.
I I MEAN IF YOU KNOW YOU'RE GONNA SPEND THE MONEY ALL YEAR, WHY ARE WE NOT DOING A BPO? AND, AND THAT'S, THAT'S, IF SOMEBODY ASKS ME, THAT'S WHAT I RECOMMEND, I RECOMMEND YOU GO AHEAD AND DO IT FOR WHAT YOU BUDGETED, BUT I DON'T NECESSARILY ALWAYS GET ASKED.
SO, AND IT'S NOT, I DON'T THINK IT'S FOR ME TO TELL THEM HOW TO DO THAT.
WELL I I RECOGNIZE THAT YOUR JOB, YOUR JOB IS TO MAKE SURE WE DO EVERYTHING.
YOUR JOB IS TO MAKE SURE THAT, THAT THE PO IS, IS YEAH.
IS ACTUALLY WRITTEN AND THAT MONEY IS ENCUMBERED IF AVAILABLE.
AND HOW THEY NOT TO TELL 'EM HOW TO BE A BUDGET MANAGER.
AND THAT IT, IT, THERE'S NOT REALLY ANY RIGHT OR WRONG WAY PER SE, BUT IT IS FOR ME, LIKE I SAID, IT'S EASIER TO TO OVER ENCUMBER IF IT'S ALREADY, YOU KNOW, IF IT'S ALREADY BUDGETED, IT'S EASIER TO GO AHEAD AND ENCUMBER IT ALL.
AND IF YOU DON'T SPEND IT, LET'S RELEASE IT AND USE IT FOR SOMETHING ELSE THAN TO MISJUDGE AND, AND THEN HAVE TO COME BACK, ASK FOR MORE.
SO IS, IS THIS THE REASON WHY WE'RE SITTING HERE WITH THE EXCESS CHARGES? IF THAT'S WHAT YOU WANT TO CALL IT ON THOSE CREDIT CARD FEES TODAY WAS THE, THE CREDIT CARDS ARE NOT, THE CREDIT CARDS ARE ALWAYS GONNA POST.
AND THE ONLY ONE THAT I'M AWARE OF ON THE CREDIT CARD THAT WAS THERE WAS AN OVER BUDGET BLOCK.
THEIR BUDGET WAS BLOCKED ON THEIR PO TWO AND WE'VE DONE AN INVOICE THAT THEY DON'T HAVE ENOUGH MONEY ON THE PO TO PAY EITHER.
YEAH, I, I MAY BE SITTING THERE.
KATHY, CAN YOU HELP US OUT WITH THIS? YOU KNOW, WE WERE TALKING ABOUT, UM, WE HAD MORE FEES THAT WERE CHARGED TO US THAN
[00:45:01]
HISTORICALLY WE HAD.YOU'RE TALKING ABOUT JUST CHARGES ON THE CREDIT CARD? NOT, NO, NOT, WE WERE, WE WERE, WE WERE TALKING ABOUT THAT OVERAGE THAT WAS GOING ON SHEILA'S CREDIT CARD.
AND THAT ALL OF A SUDDEN IT WAS THOUSANDS OF DOLLARS MORE THAN HISTORICALLY WE HAD SEEN ON, ON THAT CARD.
WELL, WHAT HAPPENS IS THERE'S NO STOP GAP ON A CREDIT CARD.
SO IF THERE'S A MONTHLY CHARGE OF $150,000 THAT HAPPENS EVERY MONTH AND THE BUDGET FOR THAT, WHATEVER IT WAS, WAS NOT LARGE ENOUGH, IT'S STILL GONNA POST BECAUSE IT'S JUST A CREDIT CARD AND THERE'S, AS LONG AS THERE'S, UH, SPENDING AUTHORITY OR DOLLAR LIMITS, JUST LIKE EVERYBODY HAS ON THEIR OWN CREDIT CARDS, MAYBE YOUR LIMIT'S $50,000.
AS LONG AS THAT LIMIT DOESN'T STOP IT, IT'S GONNA POST.
SO THERE'S A DISCONNECT BETWEEN CHARGING ON A CREDIT CARD AND THE ACTUAL BUDGET THAT IT HITS.
SO WHENEVER ANYBODY CHARGES ON THEIR CREDIT CARD, THEY DO GET IN.
EVERYBODY'S SUPPOSED TO BE GETTING IN AND CHANGING THEIR OBJECT CODE, WHICH IS THE LINE THAT IT GOES TO, AND THAT'S WHERE YOUR BUDGET SITS.
SO IF YOU'RE CHARGING SOMETHING, YOU SHOULD BE LOOKING TO SEE, DO I HAVE BUDGET IN THAT PARTICULAR ITEM? WE DO BUDGET AT THE CATEGORY LEVEL, BRENDA IS CORRECT.
AND SO UNTIL THAT WHOLE CATEGORY, SO OFFICE AND SUPPLY MATERIALS AND SUPPLIES OR PROFESSIONAL SERVICES, UNTIL THAT IS GONE, IT'S NOT GONNA GENERATE ANY KIND OF A PROBLEM PER SE.
BUT WHEN YOU DO GO OVER YOUR CATEGORY LEVEL, THAT'S WHEN WE HAVE TO LOOK AT SOME SORT OF ADJUSTMENT.
TYPICALLY WE TRY TO DO IT FROM ONE CATEGORY TO ANOTHER, WHICH WOULD NOT INCREASE IN APPROPRIATION.
EVEN A TRANSFER FROM ONE FUND TO ANOTHER MAY NOT INCREASE THE APPROPRIATION.
SO THERE ARE, LIKE BRENDA SAID, THERE'S A LOT OF DIFFERENT MOVING PARTS GOING ON, BUT THE, WHAT HAPPENS IN OUR BUDGET WHEN WE ACTUALLY GO OVER BUDGET DUE TO CREDIT CARDS, IT'S JUST BECAUSE THAT LINE DIDN'T HAVE ENOUGH AND IT AUTOMATICALLY CHARGES.
WE HAVE A LOT OF AUTO CHARGES EVERY MONTH.
SO LET'S GO BACK TO THE SITUATION WE TALKED ABOUT A COUPLE OF WEEKS AGO WHERE WE HAD BUDGETED A CERTAIN AMOUNT AND I THINK IT WAS FOR, I THINK IT WAS CREDIT CARD FEES ON UTILITY CUSTOMERS.
AND WE BUDGETED BASED ON WHAT WE'D SEEN HISTORICALLY, AND WE HAD AN INCREASE IN THE NUMBER OF CUSTOMERS PAYING ANDY'S NODDING HIS HEAD, RIGHT? SO YES, I KNOW WHAT YOU'RE TALKING ABOUT.
OKAY, SO ANDY, CAN YOU JUMP IN HERE AND AND, AND HELP ME WITH THIS AND HOW, HOW IS IT THAT IF WE'RE SITTING HERE PAYING THESE CREDIT CARD FEES ON, ON THE PERCENTAGES ON WHAT THE, THE CUSTOMERS ARE PAYING, HOW IS IT THAT WE GOT THROUGH THE FIRST QUARTER, SECOND QUARTER AND THIRD QUARTER AND NO ONE SAID WE'RE NOT GONNA HAVE ENOUGH MONEY HERE TO PAY THE REST OF THOSE FEES? OKAY, SO UTILITY CUSTOMER SERVICE ON THAT SIDE, THEY DO FALL UNDER A DIFFERENT PORTION OF CREDIT CARD PROCESSING AND WE GET A PER ITEM FEE.
SO WE SAVE A LOT, BUT WE STILL SPEND OVER LIKE A MILLION DOLLARS A YEAR IN CREDIT CARD FEES AND WE HAVE TO, WE HAVE TO PAY THAT.
WE CAN'T PASS THAT ALONG TO THE CUSTOMER THE WAY THAT WE'RE SET UP RIGHT NOW.
SO, YOU KNOW, YOU JUST NEVER KNOW EVERY MONTH.
SO THAT AUTOMATICALLY POSTS AND SO WE'RE GOING TO BUDGET ACCORDING TO WHAT HISTORICALLY WE'VE KNOWN.
WELL IF YOU HAVE A LOT MORE CUSTOMERS OR MORE CUSTOMERS CHOOSE TO PAY THROUGH THEIR CREDIT CARD, THAT'S WHAT'S GONNA CAUSE IT.
YOU'RE NOT GONNA KNOW IT UNTIL IT POSTS.
BUT AFTER IT POSTS, AS WE GO THROUGH THE YEAR, SOMEONE SHOULD BE WATCHING A BUDGET LINE SOMEWHERE.
BUT YOU MAY GO OVER, NOW YOU DO HAVE THE JUNE 30 CUTOFF LINE, WHICH YOU WOULD THINK YES, MAYBE WE WE NEED TO BE WATCHING EVERY MONTH.
OH, DID IT GO OVER AT ALL? BUT THAT'S WHY IT HAPPENS.
AND UM, IT'S THE AUTOMATIC CREDIT CARD.
WELL THAT'S, THOSE ARE ACTUALLY BANK CHARGES.
THOSE DON'T GO THROUGH A CREDIT CARD.
IT'S THE CUSTOMER'S CREDIT CARDS THAT WE'RE PAYING THAT FEE.
WHAT BRENDA HANDLES IS EMPLOYEES OR CREDIT CARDS.
SO IT'S REALLY THE OPPOSITE SIDE.
BUT AT ANY RATE, WE GET CHARGED THAT BY OUR CREDIT CARD PROCESSOR AND THEN IT, WE WE HAVE TO PAY IT.
I AND, AND I'M NOT SAYING WE'RE NOT, I'M NOT SAYING WE WON'T PAY ANY BILL, WE'RE GONNA ALWAYS PAY OUR BILLS.
MY QUESTION IS, WHO SHOULD HAVE BEEN WATCHING THAT BUDGET TO SAY THREE MONTHS AGO, SIX MONTHS AGO? WE DON'T HAVE ENOUGH BUDGETED AND THAT, THAT'S KNOW THAT.
NO, THAT'S THE PROCESS IMPROVEMENT I TALKED ABOUT EARLIER.
I THINK THERE'S THINGS THAT WE NEED THAT WE'RE AWARE THAT WE NEED TO PUT, BE PUT IN PLACE TO MAKE SURE THAT A SITUATION LIKE THAT DOESN'T HAPPEN
[00:50:01]
AGAIN.SO, AND WE'RE SAYING WE EVER CHANGING WORLD, WE HAVE MORE AND MORE PEOPLE CHOOSING TO DO BUSINESS WITH US FOR CREDIT CARDS.
AND SO THOSE FEES ARE, AND WHAT THAT CHARGE IS, IS GOING UP.
SO WE NEED TO PUT SOMETHING IN PLACE, BUDGET $800,000, RIGHT? AND IN THE FIRST QUARTER, SURE IT COST US 300,000.
I THINK ANY REASONABLE RIGHT BUDGET MANAGER WOULD SAY, WE BETTER WATCH THIS WHEN WE GET SIX MONTHS.
IF ALL OF A SUDDEN WE'RE 200,000 OVER WHAT WE HAD BUDGETED FOR SIX MONTHS, WE NEED TO BE LOOKING AT CHANGING THAT DOLLAR AMOUNT.
WE NEED TO BE INCREASING THAT BUDGET TO COVER THAT EXPENSE.
WE CAN'T WAIT UNTIL WE GET TO JULY AND SAY, OH LOOK, WE WERE OVER LAST YEAR.
IT MAY NOT HAVE HAPPENED UNTIL JUNE THOUGH.
SO WHAT ARE THE SAFEGUARDS YOU'RE PUTTING IN ARE YOU'RE LOOKING AT, I THINK AS A STAFF WE NEED TO VISIT ABOUT, AGAIN, I NEED TO BETTER UNDERSTAND THE SITUATION THAT HAPPENED IN THIS PARTICULAR CASE TO DIG INTO A LITTLE BIT, TO BETTER UNDERSTAND THE THINGS THAT COULD BE PUT INTO PLACE.
I, I THINK IT'D BE INTERESTING, LOVE TO SEE YOU, ANDY, LOOK AT CAN WE INCENTIVIZE PEOPLE TO PAY IN A DIFFERENT, I MEAN THAT'S WHAT A LOT OF QUOTE BUSINESSES HAVE DONE.
I DUNNO, FROM A LEGAL STANDPOINT, IT'S TOUGH.
I DON'T THINK WE'D WANT TO, UH, SURCHARGE PEOPLE USING CREDIT CARDS, BUT AT THE SAME TIME, IT'S NOT UNREASONABLE TO GIVE THEM AN INCENTIVE TO PAY IN A DIFFERENT WAY AN A CH THROUGH THEIR BANK OR WHATEVER TO WHERE WHAT, WHERE WE'RE NOT PAYING FOR THEIR AWARD MILES.
AND THAT'S, THAT MIGHT BE SOMETHING TO LOOK AT.
UH, WE ARE DOING NOW WHERE WE'RE, WE'RE PRODUCING QUARTERLY REPORTS AND WE HAVE A SYSTEM THAT'S EASIER FOR MANAGERS TO GET IN AND SEE WHERE THEY ARE ALONG, ALONG THE YEAR.
SO WE'LL BE IMPLEMENTING THAT THIS YEAR.
SO MAYOR, CAN YOU GO BACK, BRENDA, YOU MENTIONED SOMETHING THAT SOME DEPARTMENTS DO IT ONE WAY, SOME DEPARTMENTS DO IT ANOTHER WAY, YOU HAVE A PREFERRED WAY THAT YOU'D LIKE, BUT THAT'S, THEY'RE NOT REQUIRED TO DO IT THAT WAY.
WHAT IS, DO WE HAVE A POLICY ON HOW THEY DO THAT? DO WE HAVE A WRITTEN POLICY? I DON'T KNOW.
I DON'T KNOW HOW WE WOULD DO THAT.
WELL, I I DON'T KNOW THAT, THAT I WOULD HAVE THE AUTHORITY TO SAY, HEY, NO, NO, NO.
I'M JUST ASKING IS THERE A WRITTEN POLICY? MAYBE, YOU KNOW, I DON'T KNOW.
I I I'M NOT, I'M NOT AWARE THAT WE DO HAVE ONE.
THE PURCHASING POLICY GUIDES THEM ON WHAT LEVELS THEY CAN, YOU KNOW, MAKE PURCHASES, HOW TO MAKE CERTAIN PURCHASES, THESE KIND OF THINGS.
BUT IT DOESN'T SPECIFICALLY SAY THAT, YOU KNOW, IF YOU, IF IF, IF IT DOESN'T SAY TO ENCUMBER WHAT YOU'VE PLANNED TO SPEND AT THE BEGINNING OF THE YEAR, IT, IT GIVES THEM THAT FREEDOM.
MAYOR, CAN WE ENCUMBER SOME FUNDS FOR A FLY SWAT DRIVE ME CRAZY.
SO MADISON SMITH IN OUR OFFICE HAS BEEN WORKING WITH BRENDA ON UPDATES TO THE PURCHASING POLICIES AND PROCEDURES.
AND IF THAT'S SOMETHING COUNSEL IS INTERESTED IN IMPLEMENTING, WE COULD INCLUDE THAT IN THE REVISED VERSION THAT WILL COME BEFORE YOU ALL FOR APPROVAL.
YOU NEED TO, CAN, CAN YOU HEAR ME NOW? THERE YOU GO.
SO MADISON AND OUR OFFICE HAS BEEN WORKING WITH BRENDA ON UPDATING THE PURCHASING MANUAL AND IF THAT STANDARD PROCEDURE, UM, LIKE BRENDA WAS TALKING ABOUT IS SOMETHING THAT YOU ALL ARE INTERESTED IN, WE CAN INCORPORATE THAT INTO THE REVISIONS WOULD, AND THAT WHOLE THING WILL COME TO YOU ALL FOR APPROVAL.
YOU CAN CONTINUE, I THINK, I THINK WE'RE THROUGH THAT ONE.
WORKFLOW PROCESS AND FINANCE ENTERPRISE.
SO IN THE FINANCE ENTERPRISE SYSTEM, IT ALLOWS YOU TO TRACK YOUR PURCHASE REQUESTS, POS PAYMENTS, EVERYTHING.
SO YOU, YOU CAN SEE THE LIFECYCLE OF YOUR REQUEST WORKFLOW ENSURES THAT PURCHASE REQUESTS ARE PROVIDED TO THE APPROPRIATE SUPERVISOR.
SO WE'VE GOT OUR CHECKS AND BALANCES.
WHOEVER'S DOING THE ENTERING WANTS SOMEPLACE ELSE TO BE APPROVED.
UM, MINIMIZES DELAYS DOESN'T SIT ON ANYBODY'S DESK.
THEY GET AN EMAIL SAYING, HEY, YOU KNOW, YOU'VE GOT THIS IN YOUR TASK LIST TO GO APPROVE.
YOU KNOW, THE DEPARTMENT HEAD OR WHOEVER THE APPROVED APPROVER IS SHOULD LOG IN, TAKE A LOOK AT THE REQUEST AND MAKE SURE THAT THE DESCRIPTION, THE, THE BUDGET CODE, THE OBJECT
[00:55:01]
CODE, ALL THAT IS CORRECT BEFORE HITTING VENDORS CORRECT ALL THIS BEFORE ADMITTING SUBMITTING IT AND IMPROVING.UM, ONCE THAT APPROVAL PROCESS IS IN PLACE OR IN PLACE AT ONCE THE APPROVAL MECHANISM HAS DONE BEEN DONE BY THE DEPARTMENT HEAD, THEN IT PASSES ON TO THE FINAL APPROVER, WHICH WOULD BE ME.
SO AFTER EVERY EVERYBODY, HOWEVER MANY, GOSH, HOW MANY STOPS IT HAS, IT EVENTUALLY ENDS UP WITH ME.
AND THEN WHAT I CHECK FOR IS, SORRY, WE WE'VE BEEN INTERRUPTED BY THE FLY SWATTER.
SO WHEN IT FINALLY GETS TO ME, I CHECK TO BE SURE THAT WE'RE, THAT THAT, THAT THE PURCHASE FOLLOWS OUR, ALL OF OUR POLICIES AS FAR AS OPEN MARKET, YOU KNOW, QUOTE LIMITS, BID LIMITS, RFPS, RF, QS, CON, YOU KNOW, DO WE HAVE A CONTRACT? HAS IT BEEN THROUGH LEGAL? ALL OF THOSE THINGS, HAS IT BEEN TO COUNSEL? AND THEN ONCE ALL THOSE THINGS FOR ME ARE SATISFIED IS WHEN I APPROVE IT AND CREATE THE PURCHASE ORDER.
UM, IT IS VITAL THAT SOME OF THESE THINGS THAT BECAUSE THE STATE REQUIRES THEM, ONE OF THE BIG THINGS THAT SOMETIMES THE NEXT ONE IS JUST MY CUTE LITTLE, LITTLE OVERVIEW.
SO, BUT DEPARTMENT CREATES THE RIGHT REQUEST AND DONE ITS ENTERPRISE.
ONCE THEY HIT ENTER, IT FLOWS THROUGH TO THEIR DEPARTMENT HEAD APPROVER.
IF THAT'S ALL FINE AND GOOD, ONCE IT GETS TO ME AND I APPROVE IT, NOW THE FUNDS ARE FULLY ENCUMBERED.
SO A PRE ENCUMBERS AT THE, YOU KNOW, THE VERY FIRST STEP AND THEN IT'S FULLY ENCUMBERED UNLESS THE FINANCE ENTERPRISE HAS A GLITCH, WHICH THAT'S ANOTHER STORY.
CAN YOU REMIND, CAN YOU REMIND ME THE, UH, I THINK IT WAS IN OUR BUDGET COMMITTEE PACKET THE OTHER DAY, BUT I CAN'T REMEMBER THE THRESHOLD FOR, OR, OR MAYBE THE CRITERIA FOR CREDIT CARD PURCHASE VERSUS PR.
IS IT A DOLLAR THRESHOLD OR A COMPETITIVE REQUIREMENT OR WHETHER, WHETHER THEY DO A PO OR DO A CREDIT CARD? YEP.
IT, THE, THE POLICY REGARDING PURCHASING IS THE SAME WHETHER YOU'RE USING A CREDIT CARD OR A PO.
SO IF YOU'RE DOING A PO, ZERO TO 50 IS OPEN MARKET, BASICALLY WHERE WE DO.
THAT'S WHAT I WAS TRYING TO, WE DO WANT YOU TO, YOU KNOW, WE HOPE THAT YOU WOULD MAKE SURE YOU'RE GETTING THE BEST DEAL.
I'M NOT JUST SAYING, HEY, I CAN SPEND UP TO 50 GRAND, LET ME GO YEAH, BLAH, BLAH, BLAH.
50 TO 100,000 IS THREE WRITTEN QUOTES OVER 100,000 IS FORMAL BID.
AND THAT WOULD APPLY TO THE CREDIT CARD.
NOW I WILL SAY WE DON'T HAVE THAT MANY CREDIT CARD CHARGES THAT ARE GOING OVER A HUNDRED THOUSAND DOLLARS.
SO IF THEY'RE USING THEIR CREDIT CARD FOR SOMETHING THAT IT, IT WOULD ALREADY NEED TO BE A BID ITEM AND IT WOULD NEED TO BE, I I WOULD, I WOULD KNOW ABOUT IT.
I WOULD NEED TO KNOW ABOUT IT.
BECAUSE I KEEP TRACK OF THE, THE BID ITEM THINGS AND I WOULD WANT TO MAKE SURE THAT I HAVE THOSE IN MY TOTALS.
THAT, THAT'S HOW, UH, THERE'S GOTTA BE SOME INTERNAL CONTROLS OTHER THAN JUST THE HITTING AGAINST THE, THE BUDGET APPROPRIATION.
SO THAT, THAT HELPS A LOT IN THAT.
YEAH, THEY, WELL, AND THEY DON'T LIKE ME TO EMAIL 'EM ABOUT THEIR CREDIT CARD STUFF.
SO MONITORING REVIEW BY DEPARTMENT, THIS IS A DEPARTMENT OF RESPONSIBILITIES.
EACH DEPARTMENT MUST ACTIVELY MONITOR THEIR PURCHASE ORDERS AND CREDIT CARD PURCHASES TO MAINTAIN EFFECTIVE BUDGET MANAGEMENT DEPARTMENTS ARE RESPONSIBLE FOR TRACKING THEIR OWN EXPENSES TO ENSURE THEY STAY WITH THEIR, THEIR, THEIR ALLOCATED BUDGET APPROPRIATION, CONSISTENT REVIEWS, REGULAR REVIEWS ENSURE THAT SPENDING ALIGNS WITH THE BUDGET APPROPRIATION AND OPERATIONAL NEEDS, PROMOTING ACCOUNTABILITY AS WELL AS REDUCING THE POTENTIAL OF OVERSPENDING.
SO I HEARD RANDY SAY MAYBE GOING BACK TO QUARTERLY REPORTS, WE USED TO DO THOSE BACK IN THE DAY AND EVERYBODY AFTER THEY DID THEIR QUARTERLY REPORT, THEY HAD TO PUT LIKE A LITTLE NOTE OUTSIDE BY WHY, WHY IT WAS OFF WHEN EITHER WAY, IF, IF THEY UNDERSTAND OR OVERSPENT, THEY HAD TO TELL WHY THEY DID THAT.
SO, AND THAT WENT AWAY AT SOME POINT.
BUT I'M, I'M GLAD TO SEE IT COMING BACK IF THAT'S WHAT WE ARE DOING.
UM, BY MANAGING THEIR BUDGETS EFFECTIVELY, DEPARTMENTS CONTRIBUTE TO THE ORGANIZATION'S OVERALL FISCAL RESPONSIBILITY AND FINANCIAL HEALTH.
WE'RE ALL, EVERYBODY'S MANAGING THEIR BUDGETS APPROPRIATELY.
[01:00:01]
THEN AS OVERALL THE CITY BUDGET LOOKS GOOD AND ROLE IS PURCHASE THAT CRUCIAL ROLE IN APPROVING PURCHASES, MAKING SURE THAT WE'RE COMPLYING WITH STATE LAWS, POLICIES, BUDGET CONSTRAINTS, PURCHASING AGENT IS RESPONSIBLE FOR THE FINAL APPROVAL OF PURCHASE REQUEST TO ISSUE AND SIGN PURCHASE ORDER JUST TO ENSURE PROPER DOCUMENTATION ON ACCOUNTABILITY CREDIT CARD PURCHASES.I CREATE, UH, ONE PURCHASE ORDER, ONE VERY LARGE PURCHASE ORDER AT THE BEGINNING EVERY YEAR OUT OF EVERY DEPARTMENT'S TWO, THREE, AND 400 JUST FOR A A, AN AMOUNT JUST TO HAVE BASICALLY AN ENCUMBRANCE IN PLACE TO COVER THOSE CREDIT CARD CHARGES.
UM, THE WAY THAT IT'S ACTUALLY POSTED IS AT THE END OF THE CYCLE, THERE'S A BASICALLY A MAPPER THAT WE RUN THAT IMPORTS THE TRANSACTIONS AND THEN FINANCE POSTS THAT AS A GENERAL LEDGER TO THE GL.
SO DO YOU ONLY HAVE ONE BPO FOR CREDIT CARDS? MM-HMM.
IT HAS EVERY DEPARTMENT'S ACCOUNT NUMBER AND 200 AND 300 OPTIC CODES IS HUGE.
WELL, I THINK THAT'S ONE THING WE CAN, I THINK HELP WITH IS IT MAKES IT KIND OF HARD FOR SOMEONE WHO'S TRYING TO MANAGE THEIR OWN BUDGET IF THEY'RE HAVING TO LOOK AT A MASSIVE BPO.
NO, THEY ONLY SEE THEIR PART WHEN THEY DO THEIR P AND L.
THEY DON'T HAVE TO SEE THE WHOLE PO THEY ONLY SEE IT AS AN ENCUMBRANCE.
SO SO THEY'RE SEEING THEIR ENCUMBRANCE YES.
AND THAT MEANS THEN THAT THEY'LL ALSO KNOW IN THEORY WHAT'S LEFT.
RIGHT? BECAUSE IT SHOULD BE THE REMAINING ENCUMBRANCE IS WHAT THEY'RE SAYING.
YEAH, WE, WELL, WE, WE NEVER ACTUALLY HIT THE PO BECAUSE WE'RE NOT PAYING FROM THE PO.
IT'S JUST THERE TO, AND TO BASICALLY A PLACEHOLDER FOR THE FUNDS FOR EACH CYCLE.
'CAUSE WE, WE, WE WILL NEVER ACTUALLY HIT THAT PO IT, IT STAYS OUT THERE FOR THE WHOLE ENTIRE YEAR AS AN ENCUMBRANCE BECAUSE WE ACTUALLY POST THE CREDIT CARD TRANSACTIONS AS A GENERAL, UH, AS A GENERAL ENTRY.
SO IT, SO WHAT HAPPENS TO THE ENCUMBRANCE? DO WE GET THE ENCUMBRANCE DRAWN DOWN? I NO, I, WE IT STAYS OPEN UNTIL THE END OF THE YEAR.
AND THEN THE FULL, THE FULL AMOUNT.
BUT IT'S, BUT IT'S JUST 4 1 1 CYCLES WORTH OF CHARGES.
SO WHILE OUR, OUR WHOLE CREDIT CARD BILL MIGHT BE 900,000, UH, CITY MANAGER'S PORTION, IF THEY ONLY CHARGE THREE OR 400 A MONTH, THAT'S ALL THAT I'VE ENCUMBERED FOR THEM.
SO SINCE WE NEVER ACTUALLY REDUCE IT, IT JUST STAYS THERE.
SO THE NEXT CYCLE JUST DOESN'T MAKE SENSE TO YOU, DOES IT? NO, IT MAKES PERFECT SENSE TO ME.
DIRECTOR OF FINANCE FOR A STATE AGENCY, I'M LISTENING EXACTLY WHAT YOU'RE SAYING AND I'M THINKING, OOH, WE SHOULDN'T BE DOING IT THAT WAY.
BECAUSE IF WE'RE EXPECTING ALL THESE DEPARTMENT HEADS OUT HERE TO MANAGE A BUDGET, AND THEY'RE GONNA BE DOING A LOT OF BUSINESS ON A CREDIT CARD IF THEY NEED A BPO TO MANAGE THAT MONEY, THEY NEED TO SEE WHAT THAT ENCUMBRANCE IS.
AND AS THEY SPEND IT, THEY NEED TO SEE THAT THE ENCUMBRANCE IS GOING DOWN WHILE THE EXPENDITURE IS GOING UP SO THAT THEY KNOW IF THERE'S ENOUGH LEFT.
AND IF ALL THEY'RE SEEING IS ONE, ONE MONTH'S WORTH OF WHAT YOU'RE ESTIMATING, THAT'S NOT GIVING THEM THE KNOWLEDGE THEY NEED.
AND, AND THAT MAY BE TRUE, WHAT WE IN THE, IN THE PAST WHEN WE VERY FIRST STARTED WITH THE CREDIT CARD YES, SIR.
IN THE PAST, WHEN WE STARTED THE CREDIT CARD SYSTEM BACK IN, WHAT, 1996, EVERY DEPARTMENT HAD TO DO A PO TO THE CREDIT CARD COMPANY FOR ALL OF THEIR ANTICIPATED EXPENDITURES.
SO THEY WOULD HAVE TO DO EACH MONTH A PO FOR BASICALLY THEIR WHOLE DEPARTMENT'S CREDIT CARD SPEND FOR THAT MONTH.
SO THEY WOULD HAVE TO TAKE ALL, ALL THE TRANSACTIONS.
SO I HAD $80 THROUGH FIVE RECEIPTS FOR TOOLS AND, AND SO ON AND SO FORTH.
THEY WOULD THEN SEND THAT OVER TO A PE.
DIANE HAD TO ENTER EVERY SINGLE ONE OF THOSE
[01:05:01]
MANUALLY AND BASICALLY CUT A FAKE CHECK.WELL, I THINK WE CUT, DID WE CUT ONE CHECK OR TWO CHECKS? I DON'T REALLY REMEMBER.
WE MAY HAVE CUT SOMEHOW COMBINED IT, SO WE ONLY GET ONE CHECK TO THE BANK TO PAY FOR THE CARDS.
BUT THAT WAS HUGELY LABOR INTENSIVE AND JUST HUGE.
SO WHEN THE OPPORTUNITY CAME FOR US TO BE ABLE TO IMPORT THE TRANSACTION AS A JOURNAL ENTRY FILE, WE, WE JUMPED ON THAT.
AND THEN IN ORDER TO SATISFY THE ENCUMBRANCE LAW, THAT WAS HOW IT WAS DECIDED TO SATISFY THAT.
NOW, IF THE, IF WE WANT THE DEPARTMENTS TO CREATE THEIR OWN, WELL, I, I THINK JUST RTO YEAH.
I, I THINK IF WE'RE GONNA PUT MORE, MORE BUDGET MANAGEMENT RESPONSIBILITY ONTO OUR DEPARTMENT HEADS TO MANAGE THEIR BUDGETS, THEY NEED TO BE ABLE TO MANAGE THEIR BUDGETS.
AND THAT'S A HUGE PIECE OF IT.
I'M NOT SAYING THAT YOU, YOU GO BACK TO WHERE YOU STARTED.
NO, BUT I THINK IT'S SOMETHING WE, WE CAN LOOK AT TO SEE IF THERE'S NOT A WAY TO GIVE THEM BETTER VISIBILITY.
BECAUSE I DON'T WANNA SIT HERE AND, AND THINK THAT THIS COUNCIL IS GONNA BEAT PEOPLE UP FOR TRYING TO DO THEIR JOB WHEN THEY CAN'T SEE WHAT IS IN FRONT OF 'EM.
I MEAN, THAT IS THE ONE NICE THING ABOUT THE SYSTEM WE LIVE IN WITH OKLAHOMA GOVERNMENT FINANCE LAW IS THE SYSTEM IS DESIGNED SO THAT YOU CAN SEE WHAT'S HAPPENING.
SO I, I THINK IT'S, WE JUST NEED TO ADD THAT TO OUR LIST OF, AND YEAH, THEY, AND THEY, THEY CAN SEE, THEY CAN SEE THE ENCUMBERS.
DO THEY PAY ATTENTION TO IT? PROBABLY NOT.
WELL, BUT IF THE ENCUMBRANCE IS JUST A ONE MONTH ENCUMBRANCE AND IT REALLY IS NEVER CHANGING BECAUSE WE'RE JUST BYPASSING IT.
IT'S NOT GIVING THEM THE KNOWLEDGE THEY NEED BECAUSE CORRECT.
IF THEY WANTED TO ENCUMBER $120,000 BEGINNING OF THE YEAR AND NOW WE'RE SIX MONTHS THROUGH THE YEAR AND THEY'VE BURNED THROUGH TWO THIRDS OF THAT, THERE'S A QUICK EYESIGHT CHECK THAT SAYS WE GOT A PROBLEM.
SO RANDY, I THINK THAT'S ONE OF THOSE THAT WE CAN PUT ON OUR LIST OF TALKING ABOUT HOW WE CLEAN SOME THINGS UP.
AND I, ONCE AGAIN, I THINK IT'S FIGURING OUT WHAT BEST PRACTICE IS.
SO BASICALLY THAT'S THAT FOR THAT PURCHASING AGENT SHOWS THAT THE PURCHASING ACTIVITIES COMPLY WITH ESTABLISHED LAWS, POLICIES, AND PROCEDURES TO MAINTAIN THE FINANCIAL INTEGRITY, PROVIDE GUIDANCE ON BEST PRACTICE AND SPENDING MANAGEMENT HELPS OPTIMIZE PURCHASING ACTIVITIES AND IMPROVE EFFICIENCY AND THAT OVERSEE ALL THE PURCHASING ACTIVITIES AND ENSURE THEY ALIGN WITH OUR GOALS AND OUR FINANCIAL OBJECTIVES AS MUCH AS I'M ABLE TO.
AND IN SUMMARY, SUMMARY OF THE ENCUMBERS OF PURCHASE CUMBER PROCESS HELPS MANAGE FINANCIAL COMMITMENTS AND ENSURE PROPER ALLOCATION OF CITY RESOURCES, ENHANCING ACCOUNTABILITY PLUS IT'S STATE LAW THAT THE ENCUMBRANCE OCCUR PRIOR TO RECEIVING SUPPLIES, EQUIPMENT OR GOODS SERVICES WE'RE LACKING LACK EFFICIENT.
PROCUREMENT PROCESSES ARE VITAL FOR ACQUIRING GOODS AND SERVICES THAT MEET CITY'S NEEDS WHILE ENSURING TRANSPARENCY AND FAIRNESS.
CLOSING
THE PROCESS THAT REQUIRES CITY COUNCIL APPROVAL MM-HMM
AS WE GO THROUGH PURCHASING, AT WHAT POINT IS THE COUNSEL INVOLVED? BECAUSE WE SEE ITEMS REGULARLY ASKING FOR OUR, IMPROVE OUR APPROVAL THAT HAVE A CONTRACT ATTACHED OR SOME OTHER SITUATION THAT HAS OCCURRED AND IT'S COMING TO CITY COUNCIL FOR APPROVAL.
SO THERE'S DIFFERENT, DIFFERENT THINGS.
IF THERE, IF THERE'S A FORMAL BID OR BID THAT I'VE DONE OR SOMETHING LIKE THAT AND YOU'RE GETTING THAT, THEN HONESTLY COUNSEL'S PROBABLY NOT GONNA KNOW ABOUT IT UNTIL IT GETS TO YOU.
AND WHAT SHOULD IT LOOK LIKE WHEN IT GETS TO US? WHEN IT GETS TO YOU? IT SHOULD BE FULLY VETTED AND IN COMPLIANCE WITH, YOU KNOW, OUR POLICIES AND WITH THE STATE LAW.
[01:10:01]
CONTRACT INVOLVED.WE SHOULD SEE THE, THE, THE FULLY VETTED CONTRACT THAT YOU'VE LOOKED AT DOLLAR WISE THAT LEGAL HAS LOOKED AT FOR WHAT'S IN THE CONTRACT ITSELF.
AND THAT, THAT, THAT THE VENDOR MATCHES THE, THE, THE PAYMENT TERMS MATCHES, WHATEVER THE BID OR RFP MIGHT HAVE BEEN, WHATEVER WE'VE AGREED TO.
WHATEVER, YOU KNOW, IF WE'VE HAD TO, YOU KNOW, NEGOTIATE ANYTHING BACK AND FORTH, THAT IT'S ALL BEEN ENTERED INTO THE, THE, THE FINAL YES, I SEE ALL OF THIS BEFORE THE PO'S DONE.
SO WHAT HAPPENS WHEN WE DON'T FOLLOW THAT PROCESS? I MEAN, IN THEORY WE SHOULD EVERY TIME, RIGHT? I, I GET A, I GET A CALL ASKING FOR HELP AND HAVING, WHAT, WHAT DID YOU ME DO THIS? SO I'M THINKING SPECIFICALLY, WE'RE SITTING HERE TODAY, WE'RE GONNA BE DEALING WITH A CON A, A CONTRACT DURING THE COUNCIL MEETING THIS EVENING THAT WE APPROVED FUNDING FOR WITHOUT A CONTRACT.
IT WENT THROUGH BOTH PUBLIC WORKS AND COUNSEL AND, AND THE DOCUMENTATION STATED THAT THERE WAS AN APPROVED CONTRACT.
SO HOW DID THAT FALL THROUGH OUR PROCESS? OKAY.
I KNOW WHICH ONE YOU'RE TALKING ABOUT.
THEY HAD BEEN TRYING TO GET IT BEFORE THAT COUNCIL MEETING AND FOR WHATEVER REASON, YOU KNOW, FOLLOW UP, FOLLOW UP, FOLLOW UP.
SO THEY ATTACHED THE PROPOSAL.
THEORETICALLY IT PROBABLY SHOULD HAVE BEEN PULLED, BUT THE, THE WELL DON'T DOT EVEN GO ANY FURTHER.
I'M JUST GONNA LOOK RIGHT BEHIND YOU AT ANDY.
ANDY, YOU'RE THE GUY OVER THIS WHOLE PART OF THE OPERATION.
HOW IN THE WORLD DID THAT THING GET TO PUBLIC WORKS AND THEN TO COUNCIL AND WE DIDN'T HAVE AN APPROVED CONTRACT? YEAH, I THAT, THAT AGAIN SPEAKS TO THAT, THAT ABOUT PROCESS THERE THAT SHOULDN'T HAVE OCCURRED.
THERE'S BEEN THE STATES THAT, THAT SHOULD HAVE BEEN PULLED.
AND SO THE WHAT SHOULD HAVE CAME TO COUNCIL FOR APPROVAL SHOULD HAVE INCLUDED THE FULLY VETTED CONTRACT OR AGREEMENT OR WHATEVER.
IT'S IN THAT PARTICULAR INSTANCE.
SO WHY WASN'T IT PULLED? I I DON'T, I DON'T HAVE ANY, I I MEAN I DON'T HAVE, LET, LET'S BE HONEST GUYS, THIS COUNCIL WAS UNDER THE IMPRESSION THAT WE HAD A CONTRACT APPROVED AND IT MARCHED THROUGH HERE AND GOT ALL KINDS OF SUPPORT.
AND OH, BY THE WAY, THE TWO PROJECTS THAT ARE SPECIFIC ON THAT PARTICULAR CONTRACT WHEN YOU SEE IT, ARE VERY IMPORTANT TO THIS CITY.
AND NOW WE'RE SITTING HERE FACED WITH HOW DID THAT HAPPEN? THAT IT SAID THAT THERE WAS AN APPROVED CONTRACT AND YET ALL WE HAD WERE SOME SPECS THAT HAD BEEN PASSED BACK AND FORTH.
I MEAN, YEAH, I, I DID GET THE EMAIL FROM THEM SAYING THAT THEY WERE TRYING TO GET IT.
SO, AND THAT'S WHERE I LEFT IT.
SO I, A LOT OF THE THINK TIMES THINGS GET ATTACHED TO AGENDA ITEMS AFTER I'VE SEEN THEM.
SO, AND I'M NOT LOOKING BRENDA, I'M NOT LOOKING AT YOU BECAUSE NO, I KNOW, I KNOW.
IT LITERALLY, IT'S PAST, IT'S PAST YOUR PROCESS.
BECAUSE WHEN YOU'RE ASKED IF FUNDING IS AVAILABLE AND YOU SAY, YES, FUNDING IS AVAILABLE, THAT'S ONE THING.
BUT SOMEHOW, OR RATHER, NOT ONLY THAT, BUT WE THOUGHT, I MEAN, I'M GONNA LOOK OVER AT THE CITY ATTORNEY AND IT'S MY UNDERSTANDING THAT THEY THOUGHT WE HAD AN AGREEMENT ON TERMS APPARENTLY.
AND SO IT FLEW THROUGH THERE AND DIDN'T GET CAUGHT, BUT SOMEHOW, OR RATHER IT DIDN'T GET CAUGHT AND YEAH, WE'VE GOTTA MAKE SURE THAT THAT DOESN'T HAPPEN AGAIN.
I MEAN THAT'S THE KIND OF STUFF THAT MAKES ALL OF US LOOK BAD.
THAT IS A MISTAKE THAT WAS MADE.
UM, IT WAS A SCOPE AND A PRICE THAT WAS APPROVED.
SO IN ESSENCE, THAT BECAME THE CONTRACT, UH, ON TONIGHT'S AGENDA IS A FULL CONTRACT WITH ALL THE PROTECTIONS FOR THE CITY ON THAT IS WILL CORRECT THAT MISTAKE.
UH, WE WILL FIGURE OUT WHERE IT WENT WRONG IN THE PROCESS AND WE WILL CHANGE THAT.
'CAUSE I'M LOOKING AT THE JUNE 11TH PUBLIC WORKS COMMITTEE AND THE ITEM IS CONSIDERATION OF APPROVAL OF PROFESSIONAL SERVICES CONTRACT.
SO AGAIN, NOT ONLY HAD IT HAPPENED, BUT
[01:15:01]
WHY DID IT HAPPEN? I MEAN, IF THERE WAS AN ISSUE, WHY WASN'T IT PULLED? BUT THAT'S WHAT I DON'T UNDERSTAND.AND THEN NOT ONLY THAT, IT WASN'T READY WHEN IT GOT TO CITY COUNCIL, BUT YET IT WAS PUSHED FORWARD WITHOUT A CONTRACT.
THERE'S GOTTA BE AN ANSWER FOR THAT.
THERE HAS TO BE, I I DON'T KNOW THE DETAILS ON WHY IT WAS PUSHED FORWARD.
I KNOW WHY THE PUSH WAS TO TRY TO GET THIS THROUGH AND I DON'T KNOW THAT IT'S, IT'S NOT COMMONPLACE WITH CERTAIN KINDS OF CONTRACTS, BUT OCCASIONALLY IT DOES HAPPEN.
OR LEMME SAY IT THIS WAY WITH AGREEMENTS THAT A SCOPE AND A PRICE IS BROUGHT FORWARD.
IT SHOULDN'T HAVE BEEN REPRESENTED AS A CONTRACT.
I'M NOT SAYING, I'M NOT ARGUING THAT IT WAS SHOWN.
WHAT, I DON'T KNOW WHY IT GOT, HOW IT GOT THROUGH THE WAY IT DID.
I DON'T HAVE A GOOD ANSWER FOR YOU ON THAT ONE.
THE PURCHASE ORDER HASN'T BEEN RELEASED.
I'M SORRY? I SAID IF IT HELPS, THE PURCHASE ORDER HASN'T BEEN RELEASED.
IT'S NOT WORKING UNTIL WE GET THE FINAL THOUGHTS.
SO WHAT DO WE DO WE KNOW THAT OCCURRED, WHAT DO WE DO GOING FORWARD? NOT APPROVE IT FOR ME.
I WON'T APPROVE IT UNTIL I HAVE THE CONTRACT, UNLESS SOMEONE TELLS ME.
BUT GO AHEAD AND SEND IT THROUGH.
I SAID FOR ME, I PROBABLY WON'T SEND IT THROUGH AGAIN UNTIL I ACTUALLY HAVE THE CONTRACT BECAUSE I DID, I TOOK, I TOOK IT AT THEIR WORD THAT THEY WERE WORKING ON IT AND IT WOULD GET, IT WOULD GET ATTACHED ON DOWN THE LINE.
SO, BUT I DON'T KNOW IF THAT'S MY, WITHIN MY AUTHORITY TO HOLD SOMETHING UP LIKE THAT.
I KNOW OUR OFFICE WON'T BE PUTTING A STAMP OF APPROVAL ON ANYTHING UNLESS WE'VE REVIEWED IT PRIOR TO HITTING AGENDA QUICK.
I THINK WE CAN TAKE THIS PARTICULAR ISSUE OFFLINE AT THIS POINT AND HAVE SOME CONVERSATION FURTHERING IT.
BUT TO BE QUITE HONEST, THIS IS SOME OF THE STUFF THAT GETS FRUSTRATING WHEN YOU GET TO THE END OF A FISCAL YEAR.
WE DON'T NEED TO BE DISTRACTED BY LAPSES IN THE PROCESS.
SO I HAD A COUPLE OTHER QUESTIONS.
CAN I CHANGE SUBJECTS? YOU GO RIGHT AHEAD.
THIS IS LEARNING A LITTLE BIT, BUT UM, YOU MENTIONED EARLIER, SO ENCUMBRANCES AT YEAR END IS A PROCESS QUESTION, I GUESS YOU MENTIONED EARLIER WE HAVE, I GUESS HOW DOES IT WORK WHEN IT SPANS A YEAR? SO IF WE HAVE A PO THAT WE PLACED IN 2024 THAT'S STILL SITTING ON YOUR DESK OR IN, IN THE SYSTEM THAT HASN'T BEEN INVOICED YET, DOES THAT JUST CARRY OVER? DOES DOES THE BUDGET AND THE ENCUMBRANCE CARRY OVER WITH THE ANTICIPATED EXPENDITURE NORMALLY? BESIDES NOT A TRICK QUESTION.
I MEAN, I CAN ANSWER THE QUESTION, BUT DO YOU, WE CLOSE EVERYTHING THAT OKAY.
ALL SERVICES THAT ARE NOT CONSTRUCTION, THAT THAT, THAT, YOU KNOW, GO OVER MULTIPLE YEARS MM-HMM
UM, SO PRETTY MUCH ALL SERVICES GET CLOSER AT THE END OF THE YEAR.
ALL SUPPLIES WHERE THERE'S LIKE VERY LITTLE MONEY LEFT, THAT KIND OF THING.
THERE ARE ON OCCASION, LIKE FOR EXAMPLE, RIGHT NOW WE HAVE TWO, THEY'RE EITHER 23 OR 24, 24 I THINK POS FOR SOME AMBULANCES THAT WE'RE NOT GONNA GET UNTIL MARCH.
SO OBVIOUSLY OUR COMMITMENT WAS IN THE RIGHT YEAR.
SO WHAT WE DO AT THE END OF THE YEAR, AFTER I GO THROUGH THE PROCESS OF, YOU KNOW, TRYING TO CLOSE AS MUCH AS I CAN, WHATEVER, WE DO WHAT IS CALLED AN ENCUMBRANCE ROLE.
SO WHAT THAT DOES IS IT TAKES EACH PO AND GROUPS IT BY ACCOUNT AND OBJECT CODE AND ROLLS IT INTO THE NEW BUDGET.
OKAY? SO WHEN YOU AF AFTER THE ENCUMBRANCE ROLE AT THE END OF SEPTEMBER, YOU'LL HAVE A, A
[01:20:01]
ORIGINAL BUDGET AND THEN YOU'LL HAVE A CURRENT BUDGET WHEN YOU, IF YOUR CURRENT BUDGET HAS CHANGED FROM YOUR ORIGINAL BUDGET, IF YOU CLICK ON THAT IN FINANCE ENTERPRISE, IT'LL SHOW YOU WHETHER IT WAS A BUDGET AMENDMENT SUPPLEMENTAL OR SOMETHING, OR IF IT WAS THE ENCUMBRANCE ROLE.AND I THINK THAT ISSUE OF ENCUMBRANCE ROLE IS SOMETHING THAT THE TASK FORCE IS GONNA BE LOOKING AT BECAUSE YOU CAN INTERPRET WHAT OMBA SAYS ABOUT ROLES TWO WAYS MM-HMM
BECAUSE IT SPECIFICALLY TALKS ABOUT GRANTS AND IF YOU TAKE IT OUT OF THAT CONTEXT, YOU COULD APPLY IT TO JUST ABOUT ANYTHING.
AND THAT WASN'T, I THINK, THE INTENT OF IT, BUT BECAUSE IT'S CLEANER TO LOOK AT IT.
WELL, CAPITAL OUTLAY, I MEAN ESSENTIALLY HANDLES THAT WAY.
BUT, UM, BUT WHEN YOU START TRYING TO APPLY IT TO EVERYTHING ELSE, IT GETS REAL MUDDY REAL QUICK.
WELL, AND ONCE AGAIN, BACK BACK IN THE DAY WHEN BEFORE WE GOT ONE SOLUTION, WHATEVER THEY CALL IT NOW, WE LITERALLY CLOSED EVERY SINGLE PO AT THE END OF THE YEAR, EVERY SINGLE ONE.
AND EVERYBODY HAD TO REENTER ALL THEIR POS NEW ON JULY ONE.
SO TH THIS, WHILE IT MAY NOT BE IN CONTEXT, WHATEVER YOU SAID, BUT IT, IT, IT, IT, IT'S, IT'S WORKING FOR US.
IT'S, IT'S SAVES IT'S A LITTLE BIT OF A TIME AVER.
AND YEAH, PEOPLE FORGET, PEOPLE FORGET TO DO POS AND DO SOME OF THESE THINGS.
SO SOME OF THE AUTOMATION THAT WE DO IS, THAT IS KIND OF HELPFUL.
SOUNDS LIKE, YEAH, ANOTHER TOPIC FOR OUR BUDGET COMMITTEE, UH, TO DIG INTO A LITTLE MORE OTHER QUESTIONS.
I WANNA THANK BRENDA, I WANNA THANK YOU KATHY.
I WANNA THANK YOU FOR BRINGING AS MUCH OF THIS TO US IN A SHORT MEETING.
I MEAN, I'LL BE HONEST WITH YOU, UM, AS YOU ALL KNOW, THIS IS NOT AN EASY TOPIC.
UM, AND IT TAKES MOST PEOPLE MULTIPLE YEARS TO FIGURE OUT HOW YOU NAVIGATE THE WATERS EFFECTIVELY.
UM, AND THERE IS A CONFLICT FOR ANYONE WHO DOESN'T KNOW.
THERE IS A CONFLICT BETWEEN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND GOVERNMENT FINANCE.
THERE ARE JUST SOME THINGS THAT DON'T WORK, ESPECIALLY IN THE STATE OF OKLAHOMA, THE WAY WE HAVE STATUTORY LIMITATIONS ON WHAT WE CAN AND CAN'T DO.
UM, OUR GOAL IS MOVING FORWARD IS TO MAKE THIS EASY TO MANAGE OUR BUDGETS.
AND I MEAN, WE KNOW THAT THE, THE TASK FORCE THAT WE'VE GOT GOING RIGHT NOW, UM, IT MAY RESULT IN SOME BIG CHANGES, WHICH ARE GONNA TAKE A LOT OF EFFORT, BUT THE IDEA IS LET'S FIX IT ONCE AND FOR ALL AND MOVE FORWARD SO THAT IT IS EASIER.
BECAUSE I CAN TELL YOU FROM EXPERIENCE THAT WHEN BUDGET MANAGERS, PEOPLE RESPONSIBLE FOR BUDGETS, UNDERSTAND WHAT'S HAPPENING AND THEY HAVE THE ABILITY AND THE TOOLS, THEY'LL MANAGE THEIR BUDGETS.
ANY OTHER COMMENTS? I JUST, I MEAN, APPARENTLY THERE WERE SOME THINGS, SOME CHALLENGES WE HAD AT THE YEAR END CLOSING.
THAT'S WHY WE'RE TALKING ABOUT SOME OF THIS STUFF.
I HAVEN'T SEEN THE LIST OF THOSE.
I DON'T KNOW THAT EVERYBODY NEEDS TO SEE 'EM, BUT I THINK FOR THE BUDGET REFORM COMMITTEE OR MAYBE THE FINANCE COMMITTEE, IT'D BE JUST INSTRUCTIVE TO KIND OF SEE THAT LIST OF THINGS AND THEN WHAT DID WE LEARN FROM THAT? AND SOME OF THOSE WILL HIT JUST BY DOING THESE TOPICS IN THAT COMMITTEE.
BUT JUST SO WE, WE KINDA UNDERSTAND WHAT WE LEARNED FROM WHATEVER HAPPENED THIS YEAR.
I HAVE THOSE THAT YOU'RE TALKING ABOUT.
YOU NEED TO TALK INTO THAT MICROPHONE.
I DO, I DO HAVE THOSE THAT WE TALKED ABOUT THE OTHER DAY, OR I HAVE WHAT I, OF WHAT I HAVE, AND I DON'T KNOW IF IT'S IN MY BAG BACK THERE OR IF I, I THOUGHT I GRABBED IT, BUT WE CAN JUST SEND 'EM OUT LATER.
UM, I JUST WANNA MAKE SURE WE LEARN FROM THAT AND THEN WE ALL KIND OF UNDERSTAND, YOU KNOW, WHAT, WHAT WENT DOWN HERE.
AND THEN MY OTHER THING I WAS GONNA ADD, SORRY, I SAID NO COMMENTS A MINUTE AGO.
I'M VERY INTERESTED IN, UM, BRENDAN, YOUR THOUGHTS OR ANY OF YOU STAFF OUT HERE THAT MANAGE BUDGETS, UM, YOUR FEEDBACK ON THE PROCESS, ANY OF IT, UM, AS WE GO INTO THESE BUDGET REFORM COMMITTEES.
SOME OF YOU WERE THERE THE OTHER DAY WHEN WE HAD OUR FIRST MEETING, BUT IF THERE'S STUFF THAT JUST BUGS YOU OR THAT YOU DON'T THINK IS WORKING WELL,
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LIKE WE'RE ALL ON THE SAME TEAM HERE, WE'RE JUST TRYING TO IMPROVE THINGS.SO BRING THIS FORWARD TO, YOU KNOW, TO RANDY OR TO US, AND LET'S TRY TO ATTACK THOSE AND, AND MAKE IT BETTER.
CAN I ADD TO THAT? SO WHEN I LOOK AT THE CITY'S ORGANIZATIONAL CHART, I DON'T, I DON'T KNOW THAT I CAN LOOK AT THAT AND NECESSARILY TELL YOU WHO'S IN CHARGE OF THEIR BUDGET AND WHO'S NOT.
SO I, I DON'T KNOW THAT THERE'S A CLEAR DISTINCTION WHEN I, I'M NOT TRANSLATING FROM THAT WHO'S MANAGING A BUDGET.
SO THAT MAY BE HELPFUL TO SOMEHOW ON THE CHART DELINEATE.
THAT'S A, A VERY GOOD COMMENT WHO'S DOING THAT? AND THANK YOU FOR CLEARING THAT UP, BRENDA.
I KNOW THAT THAT CONTRACT ISSUE THAT I WAS TALKING ABOUT DID NOT REST WITH YOU AND I APPRECIATE YOU CLEARING THAT UP AND WE'LL GET TO THE BOTTOM OF THAT EVENTUALLY.
YOU, MR. FRAME, DO YOU HAVE ANYTHING TO ADD? I THINK YOU SAID IT ALL.
UM, LOOK, IN, IN CLOSING, I, I'LL JUST RESTATE, I WANTED TO MAKE SURE THAT THE COUNCIL HAD A PRETTY GOOD IDEA OF WHAT WAS GOING ON AND HOW IT WORKS AND WHAT THE STRUGGLES ARE AND WHAT THE ISSUES ARE.
AND THIS IS THE TIME, AS RANDY AND I HAVE TALKED ABOUT IT, THIS IS THE TIME TO FIX IT WHEN WE'VE GOT A COUNCIL THAT'S FOCUSED ON THAT WON'T BE EASY, WON'T BE HARD, BUT IN THE END, YOU KNOW, ALL OF US NEED TO UNDERSTAND THAT THE CONSEQUENCES FOR VIOLATING STATE LAWS WHEN IT COMES TO PUBLIC FINANCE ARE PRETTY SEVERE.
AND I DON'T THINK ANY OF US IN HERE WANT TO HAVE TO FACE THAT SITUATION.
UM, BECAUSE TO BE QUITE HONEST, AS I HAVE BEEN REMINDED MULTIPLE TIMES, UM, THE STATUTES ACTUALLY SAY THAT IF AN OFFICER OR AN EMPLOYEE OF A GOVERNMENT ENTITY SPENDS MONEY WITHOUT PROPER AUTHORIZATION, THEY CAN BE HELD PERSONALLY LIABLE FOR THAT INDEBTEDNESS.
AND THAT'S THE, THE MINOR PENALTY THAT EXISTS.
SO, UM, WE'RE GONNA, WE'RE GONNA IMPROVE THINGS.
WE'RE GONNA GET THROUGH THIS AND FIGURE OUT HOW TO MAKE IT EASIER TO GET THROUGH YEAR END AND HOW TO MAKE IT EASIER TO MANAGE OUR BUDGETS.
AND IT'S GONNA, IT, IT'S GONNA TAKE A LITTLE BIT, BUT UM, IT'S NOTHING THAT GROWING COMMUNITIES ALL OVER THE COUNTRY DON'T HAVE TO GO THROUGH.
SO, AND I APPRECIATE COUNCIL'S INPUT, I APPRECIATE STAFF'S INPUT TODAY AND, AND GIVING US AS MUCH INFORMATION AS YOU CAN IN SUCH A SHORT TIME.
SO, UH, WITH THAT I WOULD ENTERTAIN A MOTION TO ADJOURN.