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HomeMy WebLinkAboutAgenda - 05-05-20; 8-e - Distinguished Budget Presentation Award 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 5, 2020 Action Agenda Item No. 8-e SUBJECT: Distinguished Budget Presentation Award DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Gary Donaldson, Finance and Attachment 1. GFOA Announcement Administrative Services, (919) 245- Letter to Orange County 2453 Attachment 2. GFOA Award Criteria Paul Laughton, Finance and Administrative Services, (919) 245- 2152 PURPOSE: To recognize the budget staff of the Orange County Finance and Administrative Services Department for earning the Government Finance Officers' Association (GFOA) Distinguished Budget Presentation Award for the 2019-20 fiscal year budget document. BACKGROUND: GFOA is an internationally recognized organization that offers guidance and support to local and state government budget and finance professionals throughout the United States and Canada. The GFOA's Distinguished Budget Presentation Award is the highest form of recognition in governmental budgeting and represents a significant achievement by the organization. Its attainment represents a major achievement by a governmental entity and its budget team. In order to receive this award, the County's budget and capital planning documents must meet stringent program criteria such as policy documents, operations guides, financial plans, and communications devices. This year marks the twenty-eighth year that Orange County has received the GFOA Distinguished Budget Presentation Award. Eligibility standards and expectations for the award become more stringent and rigorous each year. The County commends the budget staff for their ability to consistently achieve the high standards required to receive this esteemed award. FINANCIAL IMPACT: There is no financial impact related to the recognition of this award. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal associated with this item. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends that the Board recognize the budget staff of the Finance and Administrative Services Department for the receipt of the GFOA Distinguished Budget Award. 2 April 2,2020 Gary Donaldson Chief Financial Officer Orange County 200 South Cameron Street Hillsborough,NC 27278 Dear Mr.Donaldson: We are pleased to inform you, based on the examination of your budget document by a panel of independent reviewers, that your budget document has been awarded the Distinguished Budget Presentation Award from Government Finance Officers Association (GFOA) for the current fiscal period. This award is the highest form of recognition in governmental budgeting. Its attainment represents a significant achievement by your organization. The Distinguished Budget Presentation Award is valid for one year. To continue your participation in the program, it will be necessary to submit your next annual budget document to GFOA within 90 days of the proposed budget's submission to the legislature or within 90 days of the budget's final adoption. A Distinguished Budget Program application is posted on GFOA's website. This application must be completed and accompany your next submission. (See numbers 12 and 13 on page 2 of the application for fee information and submission instructions.) Each program participant is provided with confidential comments and suggestions for possible improvements to the budget document. Your comments are enclosed. We urge you to carefully consider the suggestions offered by our reviewers as you prepare your next budget. When a Distinguished Budget Presentation Award is granted to an entity, a Certificate of Recognition for Budget Presentation is also presented to the individual(s) or department designated as being primarily responsible for its having achieved the award. Enclosed is a Certificate of Recognition for Budget Preparation for: Gary Donaldson,Chief Financial Officer Continuing participants will find a brass medallion enclosed with these results. First-time recipients will receive an award plaque that will be mailed separately and should arrive within eight to ten weeks. Also enclosed is a camera-ready reproduction of the award for inclusion in your next budget. If you reproduce the camera-ready image in your next budget, it should be accompanied by a statement indicating continued compliance with program criteria. The following standardized text should be used: 3 Gary Donaldson April 2,2020 Page 2 Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Orange County, North Carolina, for its Annual Budget for the fiscal year beginning July 1, 2019. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide,and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. A press release is enclosed. Upon request, GFOA can provide a video from its Executive Director congratulating your specific entity for winning the Budget Award. We appreciate your participation in this program, and we sincerely hope that your example will encourage others in their efforts to achieve and maintain excellence in governmental budgeting. The most current list of award recipients can be found on GFOA's website at www.gfoa.org. If we can be of further assistance,please contact the Technical Services Center at(312)977-9700. Sincerely, Michele Mark Levine Technical Services Center Enclosure 4 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Orange County North Carolina For the Fiscal Year Beginning July 1, 2019 OA,4:� P- ,-*f� Executive Director 5 BUDGET REVIEW COMPOSITE RATING FORM GFOA Distinguished Budget Presentation Awards Program Agency: Orange County, NC Fiscal Year beginning: July 2019 Document number: B9941581 At least 2 of the three reviewers must rate the document "proficient" or "outstanding on all four overall categories and all mandatory criteria in order for the document to receive the award Information Not Present Does Not Satisfy Proficient Outstanding (1) (2) (3) (4) R1 R2 R3 R1 R2 R3 R1 R2 R3 R1 R2 R3 Introduction and Overview C1 Table of contents (mandatory) P1 Strategic goals & strategies P2 Short-term organization-wide factors influencing decisions P3 Priorities and issues (mandatory) C2 Budget overview (mandatory) Financial Structure, Policy, and Process 01 Organizational chart (mandatory) F1 Fund descriptions and fund structure 02 Department/fund relationship F2 Basis of budgeting P4 Financial policies (mandatory) P5 Budget process (mandatory) Financial Summaries F3 Consolidated financial schedule (mandatory) * F4 Three (four) year consolidated & fund financial schedules (mandatory) F5 Fund balance (mandatory) F6 Revenues (mandatory) F7 Long-range financial plans Capital & Debt F8 Capital expenditures (mandatory) F9 Impact of capital investments on operating budget F10 Debt (mandatory) Departmental Information 03 Position summary schedule (mandatory) V/ V/ V, * 04 Department descriptions (mandatory) 05 Unit goals and objectives 06 Performance measures Document-wide Criteria C3 Statistical/supplemental section C4 Glossary C5 Charts and graphs C6 Understandability and usability Overall Overall as a policy document Overall as a financial plan Overall as a operations guide Overall as a communications device Special Capital recognition (three "outstanding ratings on F8 N and F9) Special Performance Measure recognition (three N "outstanding" ratings on 06) 6 Government Finance Officers Association Budget Presentation Awards Program Orange County, NC (FY2019-20) The Budget as a Policy Document: Great early placement of the mission statement. The budget message includes a thorough overview of what is included in the budget and some issues that are influencing the budget. Expand the discussion of organizational priorities and long-term vision to include context of goals, expectations, and definition of success, i.e. how citizens are to recognize progress. Clearly and specifically link some budget decisions to the priorities being supported so readers less familiar can better understand how the budget is developed to support the organization and community goals. Great integration of goal setting and capital and long-range planning into the budget process and the calendar. Detailed financial policies. The Budget as a Financial Plan: Good revenue descriptions and graphs. Be sure to explain bases of revenue projections and factors influencing major revenue sources to go up or down especially for the budgeted estimates. Good discussion of fund balance changes on page 59. Great capital project descriptions and acknowledgement of operating impact. Check the operating impact analysis as extending service facilities, adding facilities, or even replacing equipment will have some type of impact on maintenance even if it is difficult to quantify. Long Range plans need to include projections of revenues and expenditures for future years and make note of significant capital, operating, debt, legislative, regulatory, development issues and changes anticipated as well as the process and assumptions for how plans are developed. Work to develop a comprehensive and cohesive summary of plans and link to a 3-5 year financial forecast including revenue and expenditures estimates by category. Include discussion of how forecasts are affected by or affect the budget and other plans and issues as well as the implications for current and future budgets and operations. The Budget as an Operations Guide: Good use of color coding on the organizational chart to illustrate reporting relationships. Chart on page 29 uses fund by function to illustrate the relationship between accounting and operating structures. Clearly link some unit goals or key projects with organization-wide goals. Be careful of using jargon or assuming the reader knows any specifics about the department and avoid using duty or task lists or generic statements as goals. Continue to develop a good blend of performance measure types including efficiency, effectiveness, input, and output measures; clearly state what is being measured and the desired outcomes so readers know which direction the related performance measures should be going. The Budget as Communications Device: Be careful using tiny print, especially in charts and embedded images; copy quality may be affected, or the information rendered ineffective. Continue to integrate some more complex acronyms with brief definitions into the glossary. R931—02/2020 7 Name of Entity: State/Province: Orange County North Carolina Reviewer ID Document Number: 254 Fiscal Year: 2019-2020 Record Number Introduction and Overview Cl. Mandatory. The document shall include a table of contents that makes it easier to locate information in the document. 4 - Comments: The table of contents isgood;nice and clear. P1. The document should include a coherent statement of organization-wide, strategic goals and strategies that address long-term concerns and issues. 2 - Comments: No discussion of any strategic plan,goals and strategies that address the long-term issues and concerns of the government;however, there is a brief reference to organ.Zation-wide mission; the document needs to expand on it andpresent it within a strategic framework. P2. The document should describe the entity's short-term factors that influence the decisions made in the development of the budget for the upcoming year. 3 - Comments: Good discussion of the factors that influence the budget decisions of the government, much of which is contained in the budget message. P3. Mandatory. The document shall include a budget message that articulates priorities and issues for the upcoming year. The message should describe significant changes in priorities from the current year and explain the factors that led to those changes. The message may take one of several forms (e.g., transmittal letter, budget summary section). 3 - Comments: The budget message is good, articulating the issues, concerns, and priorities for the upcoming budget year; would be useful to present it at the be of the document. C2. Mandatory.- The document should provide an overview of significant budgetary items and trends. An overview should be presented within the budget document either in a separate section (e.g., executive summary or integrated within the transmittal letter or as a separate budget-in-brief document. 3 - Comments: Good overview of significant budgetary items and trends. Financial Structure, Policy, and Process 01. Mandatory. The document shall include an organization chart(s) for the entire entity. 4 - Comments: Good organ.Zational charts;nice and clear F1. The document should include and describe all funds that are subject to appropriation. 3 - Comments: The document includes all funds that are subject to appropriation. 02. The document should provide narrative, tables, schedules, or matrices to show the relationship between functional units, major funds, and non-major funds in the aggregate. 3 - Comments: Good use of narratives, tables, and schedules. F2. The document shall explain the basis of budgeting for all funds, whether cash, modified accrual, or some other statutory basis. 2 - Comments:No discussion of basis of budgeting the 8 [Page 66.Orange County.Nq document needs to work on it. P4. Mandatory. The document should include a coherent statement of entity-wide long-term financial policies. 4 - Comments: Good discussion of entity-wide long-term financial policies;nice and clear. P5. Mandatory. The document shall describe the process for preparing, reviewing, and adopting the budget for the coming fiscal year. It also should describe the procedures for amending the budget after adoption. 3 - Comments: Good discussion of the budget process, including the calendar. Financial Summaries F3. Mandatory. The document shall present a summary of major revenues and expenditures, as well as other financing sources and uses, to provide an overview of the total resources budgeted by the organization. 3 - Comments: Good summary of revenues and expenditures. F4. Mandatory. The document must include summaries of revenues and other financing sources, and of expenditures and other financing uses for the prior year actual, the current year budget and/or estimated current year actual, and the proposed budget year. 3 - Comments: Good Summary of revenues and expenditures;covers the requisiteyears. F5. Mandatory. The document shall include projected changes in fund balances, as defined by the entity in the document, for appropriated governmental funds included in the budget presentation (fund equity if no governmental funds are included in the document). 3 - Comments: Good discussion of changes in fund balances;covers the requisiteyears. F6. Mandatory.- The document shall describe major revenue sources, explain the underlying assumptions for the revenue estimates, and discuss significant revenue trends. 3 - Comments: Good discussion of major revenue sources and their underlying trends. F7. The document should explain long-range financial plan and its effect upon the budget and the budget process. 2 - Comments: No discussion of any long-range financial plan and/or its effect on the budget and the budget process;however, there is a good summary of revenues and expenditures through 2020; the document needs to extend it beyond 2020 and present it within the framework of a long-range financial plan. Capital & Debt F8. Mandatory.- The document should include budgeted capital expenditures, whether authorized in the operating budget or in a separate capital budget. 4 - Comments: Good discussion of capital improvement activities, theirpr jected costs, and sources of funding•nice and clear. F9. The document should describe if and to what extent significant nonrecurring capital expenditures will affect the entity's current and future operating budget and the services that 9 [Page 67.Orange County.Nq the entity provides. 3 - Comments: Good highlight of the impact the capital expenditures will have on current and future operations of the government;a brief narrative would be useful. F10. Mandatory. The document shall include financial data on current debt obligations, describe the relationship between current debt levels and legal debt limits, and explain the effects of existing debt levels on current operations. 3 - Comments: Good discussion of debt policy, debt obligations, and payment schedule; would be useful to highlight a little on legal debt limit and also on the effect the existing debt levels have on current operations of the government. Departmental Information 03. Mandatory. A schedule or summary table of personnel or position counts for prior, current and budgeted years shall be provided. 3 - Comments: Good summary ofposition counts;covers the requisiteyears. 04. Mandatory. The document shall describe activities, services or functions carried out by organizational units. 3 - Comments: Good summary of activities, services, and functions, as carried out by various units of the government. 05. The document should include clearly stated goals and objectives of organizational units (e.g., departments, divisions, offices or programs). 3 - Comments: Good discussion of mission,goals and objectives. 06. The document should provide objective measures of progress toward accomplishing the government's mission as well as goals and objectives for specific units and programs. 3 - Comments: Good summary ofperformance measures;covers requisiteyears. Document-wide Criteria C3. The document should include statistical and supplemental data that describe the organization, its community, and population. It should also furnish other pertinent background information related to the services provided. 3 - Comments: Good supplementary information about the government and the communities they serve. C4. A glossary should be included for any terminology (including abbreviations and acronyms) that is not readily understandable to a reasonably informed lay reader. 4 - Comments: The glossary of terms is good;nice and clear. C5. Charts and graphs should be used, where appropriate, to highlight financial and statistical information. Narrative interpretation should be provided when the messages conveyed by the graphs are not self-evident. 3 - Comments: Good use of narratives, tables, and schedules. C6. The document should be produced and formatted in such a way as to enhance its understanding by the average reader. It should be attractive, consistent, and oriented to the reader's needs. 3 - Comments: Good document, overall;simple and ea y to follow.