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Agenda 09/27/2011 Item #16F10 9/2712011 Item 16.F.10. EXECUTIVE SUMMARY r"\ Recommendation to autllorize budget aBlellCl....ts appropriating approxiJDately 5277,556,493.57 of unspent FY 1011 grant and projtct budgets into fIScal year 1011. OBJECTIVE: Board of County Commissioners' approval of budget amendments which will increase the FY 2012 budget by approximately $277,556,493.57 in the various Capital Projects, Grant anciGrant donor matching funds. CONSIDERATIONS: During fiscal year 2011, grants and capital projects were contemplated and planned for in the adopted budget and/or budget amendments were processed. Grants and Capital Projects do not necessarily "expire" at the end of the B()at'd's fiscal year, on September 30. The unspent portion of these budgets needs to roll forward into the next fiscal year to avoid disruption in the payment of venders and employees. This. action is considered customary and routine in accordance with budgetary practices and the accounting 8SSQCiated with Capital and Grant Funds. ' r"\ Grant awards are approved by the Board at various times during the year; many grants have flscalyear cycles different than the County's fiscal year of Oct 1 - Sept 30. At year-end, the accounting system SAP automatically calculates the unspent budget (amended budget less expenditures) and posts this amount into fiscal year 2012 budget as a budget amendment. Some grants require local matching funds. In the donor funds, match money is budgeted as a tnmsf~r to the Grant Fund. As expenditures are incurred, Finance transfers the correct amount of cash from the donor fund to the Grant Fund. If at year enq, the grant is not completed, committed match dollars sitting. in the donor fund must be re-budgeted in fiscal year 2012 to ensure that the grant is in compliance with the grant contract and match requirements. Capital Projects are usually multi-year projects. Budgets are created during the budget process and/or in the form of budget amendments. As professionals and contractors are hired, purchase orders are opened and work is in progress, the closing down and starting.up a fiscal year should not disrupt the progress of a capital project. The accounting system SAP automatically calculates the unspent budget(amended budget less expenditures) and posts this amount into fiscal year 2012 budget as a budget amendment. On June 28, 2011, agenda item 16.1.5, the Clerk of Courts requested $300,000 for the implementation of an accounts payable improvement solution for the accounting system SAP. Included in this request was approval to allow the $300,000 to remain in the Clerk's operating Fund 011 at year end. To ensure compliance with all applicable Florida StatJItes,the unspent portion ($300,000 less any payments made) will be re-appropriated in FY 2012 as an increase to the Transfer to the Clerk from the Board's General Fund 001 and the Clerks Operating Fund 011 will also be increased. Section 129.06, Florida Statute, mandates that any increase in a Fund by the recognition of Carryforward or Grant Revenues; and increasing the appropriations must be approved-by resolution of the Board of County Commissioners after an advertised public hearing. (The ~ resolution is in this agenda under section 17). The $277,556,493.57 is the amount ofunspent budget (amended budget of S392t499t773.98 less expenditures of $114,943,280.41) as of September 16,2011. On October 1, SAP will automatically calculate and post the unspent H:\Executive SumDllll)'\Carryforward of unspent project budget Packet Page -2293- 9/27/2011 Item 16.F.10. .-" budgets in each grant and capital project's fund. The actual amount of the budget amendment may be more or less than $277,556,493.57 depending on the activity within the remaining 14 days before September 30. Additional moneys will be spent when invoices are processed and/or the Board may authorize budget amendments on September 27 which was not contemplated in this executive summary. Ifwe wait until after the close of the fiscal year for Board approval on the budget amendments to carryforward the unspent budgets, all the capital projects and grants will sit idle with no budgets for 11 days. This will mean that over $103.3 million in open purchase orders cannot roll into FY 2012; venders and employees will not receive any form of payment until after the October 11 th Board meeting. Below is a recap of Exhibit A listing the primary categories of the estimated roll over amounts in the Capital Projects and Grants totaling $277,556,493.57. The categories are listed from most restricted to least restricted in terms of various legislature, statutory, legal, policy, program or regulatory constraints. ~ Grant Funds Donor Funds Providing Grant Match Money Impact Fees Capital Projects Funds User Fees Capital Projects Funds Gas Tax Capital Projects Fund Ad Valorem Supported Capital Projects Funds General Fund transfer to the Clerk Clerk's Operating Fund 011 Total Unspent budgets as of 9/16/20 11 $70,497,143.96 $4,285,833.86 $58,810,296.01 $80,233,624.71 $48,097,229.40 $15,032,365.63 $300,000.00 $300.000.00 $277,556,493.57 FISCAL IMPACT: Budget amendments in the approximate amount of $277,556,493.57 are needed in FY 2012 to re-appropriate unspent (FY 2011) budget within each capital project, grant and match funds and to recognize a like amount in Carryforward/Grant revenue. Attached is Exhibit "A" listing each Fund and estimated dollar amount calculated as of September 16, 2011. On October 1, the accounting system SAP will calculate and post the precise amount of unspent budget and this amount may be less than $277,556,493.57, depending on the activity over the remaining 14 days in September. GROWTH MANAGEMENT IMP ACT: While there is no new growth management impact, this carryforward funding request will ensure that there are no payments or contracting delays for budgeted growth management projects. LEGAL CONSIDERATIONS: This item was reviewed by the County Attorney and is legally sufficient. This action requires a majority vote by the Board. RECOMMENDATION: Recommendation to authorize budget amendments totaling approximately $277,556,493.57 to re-appropriate unspent (FY 2011) budget and carry forward for capital projects, grants and match money. PREPARED BY: -. Susan Usher, Senior Budget Analyst, Office of Management and Budget Mark Isackson, Corporate Financial Operations & Management Services, County Manager's Office H:\Executive Summary\Carryforward of unspent project budget Packet Page -2294- 9/27/2011 Item 16.F.10. COLLIER COUNTY ~ Board of County Commissioners Item Number: 16.F.l0. Item Summary: Recommendation to authorize budget amendments appropriating approximately $277,556,493.57 of unspent FY 2011 grant and project budgets into Fiscal Year 2012. Meeting Date: 9/27/2011 Prepared By Name: BrockMaryJo Title: Executive Secretary to County Manager, CMO 9/18/2011 1:41:08 PM Submitted by Title: Executive Secretary to County Manager, CMO Name: BrockMaryJo 9/18/2011 1:41:09 PM ~ Approved By Name: IsacksonMark Title: Director-Corp Financial and Mgmt Svs,CMO Date: 9/21/2011 8:45:26 AM ~ Packet Page -2295- 9/27/2011 Item 16.F.10. EXECUTIVE SUMMARY ~ecommendation that the Board concur with the Clerk's intent to issue a request for proposal Jr the implementation of an accounts payable improvement solution for SAP and authorize use of existing funds in FY2011 and tentatively budgeted FY 2012. OBJECTIVE: To issue a request for proposal for services associated with the standardization and streamlining of invoice processing. CONSIDERATIONS: The Clerk's Office has been working with Board staff regarding optimization of the accounts payable process. Currently, the Clerk's Finance Department receives invoices for processing and then routes to Board departments as necessary for further information or approval. Board departments do not have immediate access to the invoice and the information that it conveys. As a result, both agencies are reliant on email and telephone for communication and there is not a common system to access invoices in the payment process. This is time consuming and labor intensive. In order to streamline this process. and improve efficiencies the proposed system will provide online access and an automated workflow process. There are various software products available that work in conjunction with SAP to provide a solution for both agencies. If thJs agenda item is approved,. the Clerk's Office will issue a request for proposal with the intent of awarding and entering into a contract prior to the end of the current fiscal year. With the process starting so close to the end of the fiscal year and the anticipated implementation timeline of six months, the Clerk would like to request that any balance remaining on the purchase orders associated with this project be allowed to carry forward into the next fiscal year to ensure that funds ~ available to complete the project. In September 2011, the Clerk's Office will submit a request with ~Il exact accounting of the amount needed to carry forward into fiscal year 2012. The. SAP Roadmao Committee. made UP of members from the Board and Clerk aaencies. has reviewed and approve of this recommendation. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. FISCAL IMPACT: The project will be funded by any cost savings and reprioritization of SAP projects in the Clerk's existing appropriations and the FY 2012 tentatively approved budget. Project costs will include software, professional services, related travel expenditures and all equipment necessary to implement the proposed solution. We do not expect the total cost of the project to exceed $300,000 based upon preliminary research. A final amount will be determined based upon the responses to the solicitation but will not exceed $300,000. Recurring annual expenses for maintenance are estimated to be between $30,000 and $45,000 which would be part of the Clerk to the Board budget. LEGAL CONSIDERATIONS: This item is legally sufficient and ready for Board action. RECOMMENDATION: That the Board of County Commissioners concur with the Clerk's plan to solicit for an accounts payable improvement solution, expenditure of Clerk's budgeted funds for this purpose and allow the roll of any unspent balance on the related purchase orders to roll into the 2012 ~cal year if required by project implementation. rKEPARED BY: Kelly Jones, Assistant Accounting Manager Packet Page -2296- Breakdown of the Unspent 2011 Project Budgets to be Added to FY 2012 Budget Grants: Supervisor of Elections Grant Fund (081) Sheriffs Grants Fund (115) Miscellaneous Grants Fund (116) Natural Resources Grants Fund (117) Emergency Managements Grants Fund (118) Parks and Recreation Food Service Grant Fund (119) Community Development Block Grants Fund (121) Services for Seniors - County Aging Program Fund (123) American Recovery & Reinvestment Act (ARRA) (125) MPO Grants Fund (128) Library Grants Fund (129) Adoption Awareness VehicIe Tags Fund (170) E911 Wireless Emergency Phone System Fund (189) State Housing Incentive Partnership Grant Fund (191) Gordon River Greenway & A TV Park (306) Public Utilties Grant Fund (416) Public Utilties Grant Match Fund (417) Collier Area Transit (CAT) Grant Fund (424) CoIlier Area Transit (CAT) Grant Match Fund (425) Collier Area Transit (CAT) Enhancements Fund (426) Transportation Disadvantaged Fund (427) Transportation Disadvantaged Grant Fund (428) Transportation Disadvantaged Grant Match Fund (429) Solid Waste Disposal Grants Fund (475) Solid Waste Disposal Grant Match Fund (476) EMS Grants Fund (491) EMS Grants Fund (493) Airport Authority Capital Fund (496) Airport Authority - lmmokalee Capital Improvements Fund (497) Airport Authority Grant Fund (498) Airport Authority Grant Match Fund (499) Administrative Services Grant Match Fund (704) Housing Grant Fund (705) Human Services Grant Fund (707) Human Services Grant Match Fund (708) Public Services Grant Fund (709) Public Services Grant Match Fund (710) Transportation Grant Fund (711) Transportation Grant Match Fund (712) County Managers Agency Grant Fund (7 I 3) Immkalee CRA Grant Fund (715) ARRA Grant Fund (725) Donor Funds Providing Match Money to Grants: General Fund (001) (includes the $300,000 transfer to Clerk) Landscape Fund (112) Services For Seniors (123) Conservation CoIlier (174) Parks and Recreation Capital Projects Fund (306) Road construction - Gas Tax Capital Fund (313) Stormwater Capital Projects Fund (325) County Sewer Capital Projects Fund (414) Collier Area Transportion (CAT) (426) Transportation Disadvantaged Fund (427) Solid Waste Capital Projects Fund (474) Airport Authority - Capital (496) Airport Authority - lmmokalee Capital Improvements Fund (497) Packet Page -2297- (AS of9/1612011) $ 87,350.83 2,191,844.00 253,362.39 78,590.25 66,445.33 201,885.82 2,926,842.30 632,688.22 2,731,894.40 127,356.80 432,012.43 123,187.44 870,186.71 381,702.34 11 ,228,061.12 488,500.00 1,852,500.00 3,446,013.45 1,564,248.00 4,742,768.88 1,054,148.25 520,870.00 66,563.94 5,332.00 1,693.00 55,794.33 39,565.00 91,273.99 575,339.48 4,661,634.50 206,092.83 18,545.00 16,091,054.08 2,312,417.93 18 I ,988.03 454,762.96 12,823.63 4,698,892.85 390,306.31 817,8]9.92 3,268,190.50 544,594.72 70,497.143.96 $ 399,787.50 1.83 124,187.55 18,545.00 19,887.00 1,699,982.32 71,400.00 1,900,500.00 127,177.00 34,169.66 1,693.00 146,003.00 42,500.00 4.585,833.86 9/27/2011 Item 16.F.10. Exhibit A r". r"" ----.. 911712011 8:58 AM 9/27/2011 Item 16.F.10. --.. Breakdown of the Unspent 2011 Project Budgets to be Added to FY 2012 Budget Exhibit A Impact Fee Capital Projects: Road Impact Fee - District I Fund (331) Road impact Fee - District 2 Fund (333) Road Impact Fee - District 3 Fund (334) Road Impact Fee - District 4 Fund (336) Road Impact Fee - District 6 Fund (338) Road Impact Fee - District 5 Fund (339) Regional Park Impact Fee Fund (345) Community and Regional Parks Impact Fee - Unincorporated Area Fd (346) EMS Impact Fee Fund (350) Library Impact Fee Fund (355) Community Park Impact Fee - Naples and Urban Collier Fund (368) Ochopee Fire Control District Impact Fee Fund (372) Isle of Capri Impact Fee Fund (373) Correctional Facilities Impact Fee Fund (381) Law Enforcement Impact Fee Fund (385) Government Facilities Impact Fee Fund (390) Water Impact Fees Capital Projects Fund (411) County Sewer System Development Capital Fund (413) --.. User Fees Capital Projects: Pine Ridge Industrial Park MSTU (132) Naples Production Park MSTD (138) Court Maintenance Fund (181) TDC Beach Park Facilities Fund (183) TDC - Beach Renourishment and Pass Maintenance Fund (195) (TDe) Museum Capital Projects Fund (314) Library Capital Projects Fund (307) Community Development System Development Capital Fund (310) Clam Bay Restoration Capital Fund (320) Pelican Bay Irrigation and Landscape Capital Fund (322) Water User Fees Capital Projects Fund (412) County Sewer Capital Projects Fund (414) County Water-Sewer Capital 2006 Bond Fund (415) Solid Waste Capital Projects Fund (474) Infonnation Technology Capital Fund (506) Gas Taxes Capital Projects: Road construction - Gas Tax Capital Fund (313) Ad Valorem Capital Projects: Clerk's Operating Fund (0 II) MSTD Landscaping Projects Fund (112) County-wide Capital Projects Fund (301) Parks and Recreation Capital Projects Fund (306) Stonnwater Capital Projects Fund (325) Grand Total /'"'-. Packet Page -2298- (As of 9/16/2011) 10,525,508.34 4,187,991.30 283,998.14 13,822,855.82 13,548,387.90 6,330,159.10 38,331.13 3,271,917.39 82,906.60 921,511.98 158,572.14 1,302.56 22,338.88 190,464.16 122,281.00 1,448,106.28 2,4 78,136.14 1,375,527.15 $ 58,810,296.0 I 4,020,990.11 sp Assessment 2,947,972.46 Sp Assessment 1,622,422.93 Court Fines & Fees 10,719,414.20 TDC tax 2,989,827.18 TDC tax 381,713.65 TDC tax 418,781.86 Private Contributions 1,063,539.12 CDES fees 314,261.88 Sp Assessment 2,506,484.49 Sp Assessment 20,203,943.99 Water User fees 24,808,310.48 Sewer User fees 671,076.89 Bond proceeds 7,3]4,]96.68 Solid Waste fees 250,688.79 Internal Service Charges $ 80,233,624.71 $ 48.097,229.40 300,000.00 22],290.25 5,627,205.47 2,]43,763.37 7,040,]06.54 $ ] 5,332,365.63 $ 277.556,493.57 9/1712011 8:58 AM