FY 2021 Budget & Financial Planning Process – Departmental ... › about › board ›...

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FY 2021 Budget & Financial Planning Process –Departmental Budget Presentations

Joseph G. CostelloChief Financial Officer

Finance Department

Budget & Finance CommitteeJune 23, 2020

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FY 2021 Budget Documents

Finance Department

• Department Description

• FY 2021 Organizational Chart

• Work Plan Zero Based Approach

• FY 2021 Department Operating Budget

• FY 2021 Operating Budget – Details

Presenter

Presentation Notes

Notes to be added.

Finance Department

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• Finance looks to effectively collect passenger fares, pay DART employees and its business partners in a timely manner, ensure cash is available to meet payment obligations in a cost-efficient manner, and collect and provide financial information to DART management and other stakeholders to make informed decisions. Accounting (including payroll and accounts payable), budgeting and financial planning, revenue systems and administration, risk management, and treasury comprise the Finance Department. Performance reporting from the various Finance Department divisions is included in the DART Quarterly Operating and Financial Performance Report which is available on DART’s website, DART.org.

Finance Department

https://www.dartnet.org/quarterly/

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• Accounting Division– Financial Accounting and Reporting– Payroll – Accounts Payable

• Business Planning and Analysis Division• Revenue Division

– Revenue Administration– Revenue Systems

Finance Department (Cont.)

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• Treasury Division– Investments– Grants

• Risk Management Division– Integrated Disability Programs – Liability Claims– Medical Compliance– Insurance Programs

Finance Department (Cont.)

FY 2021 Organizational Chart

Organizational Chart

Joseph CostelloChief Financial

Officer

Dwight BurnsTreasurer

James DuffAVP Risk

Management

Katy GalindoAVP Controller

Senanu AdadevohAVP Payment Systems and

Statistical Reporting

Sherry Foster Interim AVP

Business Planning & Analysis

Approved Headcount - 117

FY 2021 Work Plan Zero Based Approach

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FY 2021 Work Plan Zero Based ApproachDivision Resources Adds/Reductions/Deferrals

Financial Accounting and Reporting section is responsible for managing the annual financial audit and recording all of DART’s business transactions in accordance with generally accepted accounting principles (GAAP). This section includes accounts receivable, cash accounting, fixed assets, general ledger, and financial reporting

Salaried Positions - 8 Outside training and travel is suspended in FY2021.Payment of RRROW administrative fees are dependent on RRROW board approval and RRROW income generated from the usage of our rail by other railroad companies. This source of revenue is expected to decrease.

Payroll Section is responsible for ensuring that all employees are paid accurately, timely, and in compliance with DART policies, state, and federal regulations.

Salaried Positions - 4 Outside training and travel is suspended in FY2021.

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Accounts Payable section oversees vendor payment and administration of the corporate card program. This section is responsible for vendor payment which includes invoice payment resolution, escheatment of unclaimed payments, 1099 issuance, maintaining vendor payment records, and ensuring that vendor payments are made accurately, timely, and in compliance with the prompt payment act and DART payment policies.


Refund offered by corporate card company which is dependent on the amount of corporate card purchases. Anticipate a decrease in corporate card spending

Business Planning and Analysis Division develops and administers the annual Operating and Capital budgets, long-range financial plan, preparation of the annual business plan, and the quarterly operating and financial performance report.



Revenue Administration consists of two separate sections within the Revenue Division (Revenue Administration and Finance Distribution). The primary responsibilities of these sections include ridership, revenue, and pass sales reporting, preparation and distribution of payroll and accounts payable checks, payroll tax transmissions, Payment Card Industry (PCI) compliance oversight, fare media inventory and procurement, and fare collection systems software administration and reconciliation for fareboxes, ticket vending machines (TVM), GoPass mobile ticketing, software to support the micro transit (GoLink), Plano Rides and Collin County Ride programs and count room currency collections software.

Salaried Positions - 9 The following budget amount should be moved to Police and Security for their management of FEO devices.120 FEO devices with AT&T cellular 4G services estimated at $75,000 / yr. This is an increase of $11,197 from CY due to adding 10 additional SIM cards as well as upgrading to 4G to meet MV7000 device standards.

Revenue Systems section includes all fare equipment dispatch responsibilities, revenue technicians, bus yard control, the maintenance personnel assigned to repair TVMs, and the count room. The fare equipment dispatch unit deploys available resources to bus or rail stations that have equipment in need of service or repair on a day-to-day basis.

Salaried Positions - 38 Hourly Positions – 18

If Revenue (TVM and bus/farebox) continues to be low, we will not utilize temp help in 2021. Equip Repair/MaintServices - $15,000 for 2020 has been deleted for 2021. Six open positions have been eliminated. Outside training and travel is suspended in FY2021.

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Treasury Division is responsible for cash/investment management, debt management, and securing/monitoring grants. Treasury manages DART’s funds in strict compliance with the Texas Public Funds Investment Act (PFIA) and DART Board investment policies. Fund management focuses on three goals, in descending order of priority: 1) preservation of capital; 2) liquidity to meet obligations in a timely manner; and 3) optimal return on investment.

Salaried Positions – 8 Slight reduction in budgeted wage/benefit expenditures for FY2021.

Outside training and travel is suspended in FY2021.

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Risk Management Division consists of four sections including Liability Claims, Insurance Programs, Medical Program Compliance, and Disability and Leave programs, that focus on cost containment and risk reduction with a focus on 5 Star service to both internal and external customers.


Insurance Increases (56010 -Property and Liability Ins.) - As a result of a hardening insurance market, adversely impacted by catastrophe losses globally i.e. natural disasters, insurance premiums are expect to rise up to 20 - 25% in 2021. This projected increase is factored into our Insurance Programs budget, with a $530,000 increase.

Liability Claims (56000 - PL and PD Expense) - As a result of projected decrease in ridership, it is anticipated that there will be a decrease in General Liability claims reported, allowing for a reduction of $963,000 in losses.

FY 2021 Rescope and DeferralsFINANCE WORK STREAM - FY2021 OPERATING BUDGET

# ITEM DESCRIPTION

RELATED DART AGENCY PRIORITY(S)

PROPOSED COMPLETION

DATE

FY2021 ACTIONS/OPTIONS FOR COMPLETION

TRIGGER POINTS OR CALL TO ACTION

(FY2021)

FY2021 FISCAL

IMPACT1 Employee Open

Positions/Hiringmanaging the annual financial audit and recording all of DART’s business transactions in accordance with generally accepted accounting principles (GAAP).

Due by 9/30/21 To be determined. Implementation of New GASB related to leases. Involves on-going detailed tracking and analysis of all DART lease related transactions. Additional work related to backend processing for go pass, TAP card and contact fare payment system.

2 Regional Rail Right of Way Fees

managing the annual financial audit and recording all of DART’s business transactions in accordance with generally accepted accounting principles (GAAP).

n/a Payment of RRROW administrative fees are dependent on RRROW board approval and RRROW income generated from the usage of our rail by other railroad companies. This source of revenue is expected to decrease.

$75,000

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# ITEM DESCRIPTION


PROPOSED COMPLETION

DATE

FY2021 ACTIONS/OPTIONS FOR

COMPLETION


(FY2021)

FY2021 FISCAL

IMPACT3 Professional Services managing the annual

financial audit and recording all of DART’s business transactions in accordance with generally accepted accounting principles (GAAP).

n/a Refund offered by corporate card company which is dependent on the amount of corporate card purchases. Anticipate a decrease in corporate card spending

$25,000

TOTALS $100,000


# ITEM DESCRIPTION


PROPOSED COMPLETION

DATE


COMPLETION


(FY2021)

FY2021 FISCAL

IMPACT1 Insurance Increases -

Property and Liability Insurance

2. Provide stewardship of the transit system, agency assets and financial obligations.

As a result of a hardening insurance market, adversely impacted by catastrophe losses globally i.e. natural disasters, insurance premiums are expected to rise to 20 - 25% in 2021.

$530,000

2 Liability Claims - PL and PD Expenses


Liability Claims (56000 -PL and PD Expense) - As a result of projected decrease in ridership, it is anticipated that there will be a decrease in General Liability claims reported, allowing for a reduction of $963,000.

$963,000

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# ITEM DESCRIPTION


PROPOSED

COMPLETION DATE


COMPLETION


(FY2021)

FY2021 FISCAL

IMPACT3 Contract Reductions 2. Provide stewardship of the

transit system, agency assets and financial obligations.

The following budget amount should be moved to Police and Security for their management of FEO devices.120 FEO devices with AT&T cellular 4G services estimated at $75,000 / yr.

This is an increase of from CY due to adding 10 additional SIM cards as well as upgrading to 4G to meet MV7000 device standards.

$75,000

4 Employee Open Positions/Hiring


Six open positions will be eliminated from the proposed FY2021 operating budget. There are no significant changes in the Maintenance-Fare Equipment side.

This is a decrease to Finance operating budget. The reduction includes 4 Revenue Techs, 1 Lead Treasury Associate and 1 Cash Manager. This elimination could result in a reduction in department analytics and possible delays in TVM servicing.

$261,710

TOTALS $619,710

FY 2021 Proposed Operating Budget By Department

Cost CenterFY 2020

Lawson BudgetFY 2021

Proposed Budget21 Proposed -

'20 Budget

416 - Finance Admin 1,124,617 801,207 (323,410) 425 - Accounting Admin 1,728,825 1,924,108 195,283 431 - Funds Admin 2,645,053 2,643,414 (1,639) 433 - Revenue Systems 4,513,815 4,133,183 (380,631) 435 - Revenue Admin 2,125,892 2,165,489 39,597 480 - Business Planning & Analysis 1,107,583 1,094,341 (13,242) 490 - Count Room Admin 496,294 282,038 (214,256) 266 - Risk Management Admin 8,040,334 7,892,791 (147,543)

40 - Finance - Dept 21,782,413 20,936,571 (845,842)

Dallas Area Rapid TransitFY 2021 Proposed Operating Budget

Budget BY Cost Center40 - Finance - Dept

FY 2020 Lawson Budget

FY 2021 Proposed Budget

21 Proposed - '20 Budget

51210 - Hourly - Wages 1,163,825 1,158,504 (5,321) Total_Non-Operator Payroll 1,163,825 1,158,504 (5,321)

51230 - Admin - Salaries and Wages 6,797,934 6,707,239 (90,695) 51233 - Admin - Overtime 2,000 - (2,000) 51234 - Part-Time/Temporary help 75,000 85,000 10,000 51237 - Admin-S&W-Interdepartmenta 20,004 20,004 - 51240 - Salary Adjustments-Budget On 44,992 5,000 (39,992)

Total_Administrative Payroll 6,939,930 6,817,243 (122,687) Total_SALARIES & WAGES 8,103,755 7,975,747 (128,008)

52999 - Benefits Allocation 3,774,923 3,677,001 (97,922) Total_BENEFITS 3,774,923 3,677,001 (97,922)

53025 - Equip. Repair/Maint Services 30,996 - (30,996) 53031 - Disposal Services 2,400 2,400 - 53065 - Facility Repair & Maint Svcs 4,800 4,800 - 53089 - Contract Services 341,004 350,000 8,996 53140 - Outside Printing Services 226,560 225,000 (1,560) 53151 - Medical Compliance 470,196 470,196 - 53158 - Consulting Services 822,000 807,000 (15,000) 53160 - Moving Services 2,496 - (2,496) 53179 - Regional Rail ROW Fees (75,000) - 75,000 53181 - Contract Labor 50,000 50,000 (0) 53186 - Software License/Maintenance 589,997 591,600 1,603 53193 - Misc Computer Services 176,004 176,004 - 53202 - Insurance Services 132,768 132,768 - 53205 - Credit Card Processing Fees 1,001,340 1,001,340 - 53210 - Legal Services 99,996 100,000 4

Total_SERVICES 3,875,557 3,911,108 35,551


Budget Overview40 - Finance - Dept

FY 2020 Lawson Budget

FY 2021 Proposed Budget

21 Proposed - '20 Budget

54081 - Rebuilt Parts - Charge Backs (300,000) (300,000) - 54130 - PCs and Other Comp Equip 7,004 - (7,004) 54131 - Computer Software 12,000 - (12,000) 54139 - Non-Standard Office Supplies 12,000 12,000 - 54140 - Standard Office Supplies 18,924 18,135 (789) 54149 - Promotional Supplies 1,500 - (1,500) 54150 - Shop Tools & Equipment 4,596 4,596 - 54152 - Safety Supplies & Equipment 696 - (696) 54270 - Conditioned Based Rail 200,004 100,000 (100,004) 54275 - Corrective Based Rail 300,000 300,000 - 54300 - Safety Shoes 4,572 3,200 (1,372) 54301 - Uniforms 26,100 23,100 (3,000) 54310 - Maint Equip Allowance 14,664 14,664 -

Total_MATERIALS & SUPPLIES 302,060 175,695 (126,365) 55010 - Power & Light - Facilities 4,500 4,500 - 55022 - Phone - Cellular 29,040 16,200 (12,840) 55028 - Phone - Other 480 480 - 55030 - Water and Sewer 1,200 - (1,200)

Total_UTILITIES 35,220 21,180 (14,040) 56000 - PL and PD Expense 3,513,048 2,550,048 (963,000) 56010 - Property and Liability Ins 2,119,092 2,649,092 530,000

Total_CLAIMS & INSURANCE 5,632,140 5,199,140 (433,000) 59050 - Drivers Licenses 192 200 8 59060 - Outside Training/Conference Re 100,495 25,000 (75,495) 59065 - Travel - Business Meeting 22,920 10,000 (12,920) 59076 - Employee Programs 7,500 4,500 (3,000) 59088 - Membership Dues 5,795 10,000 4,205 59090 - Books/Periodicals/Subscript 54,000 52,000 (2,000) 59095 - Business Meetings 6,708 - (6,708) 59111 - Use of Private Vehicles 348 - (348) 59113 - Professional Services (89,196) (75,000) 14,196 59114 - Child Sprt/Alimony/Work Union (50,004) (50,000) 4

Total_LEASE, RENTALS, TAXES & OTHER 58,758 (23,300) (82,058)

Total_Operating Expenses 21,782,413 20,936,571 (845,842)


Budget Overview40 - Finance - Dept

FY 2021 Proposed Operating Budget

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