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Receive a presentation on the Auditor-Controller’s FY2019/20 proposed reorganization to address ongoing demands and future succession planning needs of the department
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Auditor-Controller recommends that the Board of Supervisors receives a presentation on the department’s FY2019/20 proposed reorganization to address ongoing demands and future succession planning needs of the department.
SUMMARY/DISCUSSION:
The Auditor-Controller is proposing a reorganization of the Auditor-Controller’s Office to address the ongoing demands and long-term succession planning needs of the department.
During the past year, the Auditor-Controller’s Office has been undergoing significant staff changes. The newly elected Auditor-Controller left a vacancy in the Assistant Auditor-Controller position, which was subsequently filled by promoting internally, thereby creating a vacancy in the Chief Deputy Auditor-Controller position. The department also has a vacancy in the Deputy Auditor-Controller (Internal Audit manager) position.
These two vacancies have provided an opportunity for the Auditor-Controller to reflect and review the current organizational structure of the department and whether the department has positioned itself to address the ongoing demands and the longer-term succession planning needs for the department.
The Auditor-Controller is proposing to reorganize the department into four functional divisions to be managed by four Deputy Auditor-Controllers. The Auditor-Controller’s proposal is to remove Payroll from General Accounting and to create a separate Payroll and Systems Division.
Currently there are five functional divisions that are managed by three managers: a Chief Deputy Auditor-Controller and two Deputy Auditor Controllers. The five functional divisions are: Internal Audit, Property Tax, Financial Reporting, Grants, and General Accounting. The General Accounting Division is further broken down into three bureaus: Accounts Payable, Systems and Payroll.
There is no change proposed for the Property Tax Division. The Internal Audit Division will report directly to the Auditor-Controller to promote the independence of this function. The primary change, however, is to separate Systems and Payroll from the General Accounting Division.
• The Accounts Payable unit is responsible for processing countywide financial transactions, budgetary control, fixed asset accounting, etc.
• The Systems staff supports the County’s general ledger, administering the countywide financial system, OneSolution. All county departments use the OneSolution system as the primary financial and budgetary system for the County.
• The Payroll unit is responsible for producing countywide payroll for over 3100 employees of the County and special districts; Federal and State tax withholding and reporting, CalPERS Reporting, countywide leave administration, benefit payments, etc.
The Accounts Payable unit will be realigned with the Financial Reporting/Grants divisions as these divisions are closely aligned and driven by generally accepted accounting principles, and State and Federal reporting requirements, including budgetary compliance.
The Payroll function is driven by State and Federal Labor, employment and tax laws, local Personnel and Salary Resolution, 19 memorandum of understandings, federal and state leave administrations laws (Fair Labor Standards Act, California Family Rights Act, etc.), etc.
The Payroll Division is heavily dependent on systems (PeopleSoft and IntelliTime). By realigning the systems accountants within this new Payroll and Systems Division, the systems accountants may assist in performing system tasks and providing some technical support to Payroll.
Because the Payroll and Accounts Payable functions are different and governed by different laws and regulations, the Auditor-Controller’s proposal is to separate Payroll from General Accounting and create a separate Payroll and Systems Division to be managed by a Deputy Auditor-Controller.
The Chief Deputy Auditor-Controller will be deleted and add a Deputy Auditor-Controller to oversee the Accounts Payable function, Financial Reporting and Grants Divisions.
The four functional divisions will then be: Internal Audits, Property Tax, Financial Reporting/General Accounting, and Payroll and Systems.
By having four Deputy Auditor-Controllers, there is a longer-term benefit of being able to reassign the Deputy Auditor-Controller’s management of the other functional divisions to provide cross-training and future succession planning opportunities.
Payroll: Limited Term Accounting Technician (Confidential)
Also, included in the Auditor-Controller’s FY2019/20 Requested Budget, the Auditor-Controller is requesting an Accounting Technician (C ) - Limited Term, to assist in documenting procedures and reports/queries and to cross-train on some of the duties of the Payroll Officer and the other Accounting Technicians. By bringing in a limited term Accounting Technician to cross train on the routine payroll functions, we can begin to cross-train our staff on the complex and critical payroll functions and begin addressing our succession planning needs in the Payroll Division.
FINANCIAL IMPACT:
The FY2019/20 Recommended Budget reflects the deletion of the Chief Deputy Auditor-Controller (budgeted in FY2018/19 at $200,000), the reclassification to a Deputy Auditor-Controller at an approximate cost of $154,000 and the addition of a Deputy Auditor-Controller at a cost of $154,000, for a net increase of $108,000. The budget also includes $27,375 for one-time remodeling and computer costs for the additional Deputy Auditor-Controller position. The Limited Term Accounting Technician (Confidential) is budgeted at $76,518 for salaries and benefits (representing approximately 9 months of costs).
The budget for the Payroll Division is primarily funded by the countywide cost allocation plan.
ALTERNATIVES:
The Board may choose not to receive this presentation; however, this is not recommended because the proposed change would allow the department to address ongoing demands and future succession planning needs of the department.
OTHER AGENCY INVOLVEMENT:
The County Administrator Office was consulted and agrees with the proposed reorganization. Human Resources was consulted in reviewing the position classifications.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION