CityController's Logo
   Aug. 2009,  Vol. 1

  Audit plan
  BARC
  High-tech tools
  Shortfall drops
Annise Parker

Rat terrier at BARC

  Trixie, super-sweet
  2-year-old rat terrier,
  at BARC.

BARC

Adopt
a dog or cat
for only


$27.50


half price!


includes shots,
spay/neuter
& microchip



Saturday,
Aug.15
at BARC

713-229-7300

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Audit plan reflects tightening budgets

From vacant buildings to library books and code enforcement, the new FY10 audit plan attempts to save the city precious dollars as departmental budgets tighten.

“The audit plan is definitely leaner and meaner. We’re spending less on audits, but we’ve hired a few more city auditors with special skills to reduce outsourcing to audit firms,” explained City Controller Annise Parker.

The FY10 audit plan includes:

Performance audits
    –  General Services Dept. - city identification badge controls;
    –  HPD - Neighborhood Protection Corps, open and dangerous buildings;
    –  Library - Book procurement and distribution;
    –  Public Works Dept. - Code Enforcement.


Compliance audits
    –  Citywide insurance certificates/performance bonds;
    –  Parks and Recreation Dept. – Managed golf courses  (Hermann, Melrose, Glenbrook);
    –  Strategic purchasing, paperless invoicing;
    –  Followup audits (as determined);
    –  Tax Increment Reinvestment Zones (TIRZ) funds comparison.

Unannounced audits
     –  Inventory audits;
     –  Payroll verification (employee existence verification);
     –  Petty cash counts.

For the full plan, see www.houstontx.gov/controller/index.html.


    
  BARC at critical crossroads - again

By so many accounts, turnaround expert-BARC Interim Director Gerry Fusco is doing a super job, but the city can save more than $100,000 and possibly find the right permanent BARC director if we start now, City Controller Annise Parker suggests.

“I recommend that City Council reject Fusco’s pending four-month $158,500 contract and thank him profusely at the end of his six-week initial contract," she said.

Noting that city departments have cut budgets 3% in less than a year, she recommends: "Let's see if we can negotiate a better deal with a permanent or interim director without slowing the positive momentum. That deal might include Fusco,” she said.
Fusco

Parker hopes the Health Department is already interviewing director applicants, including top local applicants passed over a few months ago. Nathan Winograd, “No-kill” movement founder, is scheduled to assess BARC later this week. With the help of Fusco (right), Winograd and animal advocates, the city’s Bureau of Animal Regulation and Care faces a brighter future:

        1)    Possibly finding a permanent director in four weeks (by the end of Fusco’s initial six-week $49,500 contract); or
        2)    Perhaps hiring Fusco and/or a top applicant as interim directors, but at reasonable directors' salaries; or
        3)    Possibly hiring Winograd to advise BARC more extensively.

The controller noted that Fusco has gotten off to an excellent start by recommending the firing or relocation of several BARC employees accused of abuse. He also approved or allowed the transfer of 68 puppies to the Houston Humane Society, “hopefully ushering in a new era of public-private partnership that will help animals.”

And, the controller noted, Fusco is not shy about communicating with animal advocates by email, text and cell, even well into the night. He knows how to thank the Friends of BARC and other volunteers dedicated to turning BARC around.

The BARC atmosphere bristled with positive momentum Sunday as the shelter adopted a record 54 animals and seven fosters. A TV station announced the special Wags to Whiskers event sponsored by Friends of BARC. Another half-price adoption day (only $27.50) is set for Saturday, August 15. (You might ask which animals have been there longest.)

As the controller sees it, the right BARC director can:

  • Gather a top-notch staff that will treat animals humanely;
  • Inspire the public, volunteers, shelters and rescue groups to work together;
  • Work as quickly as possible to reduce euthanasia and increase adoptions;
  • Coordinate door-to-door educational and enforcement efforts in targeted areas (perhaps with low-cost spay/neuter coupons) to reduce the 100,000 calls the city receives annually about roaming and sometimes vicious dogs.

She also urges BARC to review the past year’s staff dismissals and consider asking whisteblowers like highly respected vet Dr. Gil Costas to return.

Local animal coalition

The controller said she was encouraged by attendance at the August 3 City Council committee BARC hearing. “This is critical mass for BARC,” she said, pointing out that Council members are demanding change and working behind the scenes. Directors of major shelters like the Houston Humane Society (HHS) and Citizens for Animal Protection (CAP) attended the meeting and offered assistance. One CAP official noted that citizen committees are working on solutions.

“BARC’s problems may be producing a much-needed coalition of animal groups,” the controller observed.

She suggests the city explores the possibility of using some city funds set aside for a new city adoption center and much-needed BARC improvements to expand other well-run shelters as joint projects. "As I have said several times, I think the city needs to let more successful groups handle most adoptions.”

Just for discussion, the controller asks people to imagine:

What if  the city partnered with the Houston Humane Society to expand its wonderful new shelter in far south Houston or worked with HHS to operate a shelter/adoption center/clinic in central Houston?

What if  the city partnered with other shelters, such as CAP, to expand shelter programs planned in far west Houston? That would allow BARC itself to concentrate more shelter/clinic/outreach efforts in east Houston, where they are sorely needed.



Maddie’s Fund millions

The controller hopes the city hires a BARC director who keeps his or her eyes on the prize: a coalition of the region’s animal service organizations working to reduce euthanasia rates, drastically increase spay/neuter and adoptions, educate the public and spend precious dollars efficiently.

Parker points to New York, a model “no-kill” transition city, where the mayor’s office created a coalition of about 140 animal groups that wrote a 10-year no-kill transition plan to win a Maddie’s Fund grant. They just announced they are halfway after five years. According to the annual report, Maddie’s Fund grants to New York total $19 million. Montgomery County is also working toward so-called no-kill, which seeks to adopt all animals except those too old or sick and return feral cats to caregivers after spay/neutering and vaccination. Maddie’s Fund has also apparently modified its requirements to make it easier for shelters to get grants.




FY09 budget shortfall drops $12 million

The FY09 budget shortfall could drop to $24 million, down about $12 million from last month, according to the City Controller's June MFOR (Monthly Financial and Operating Report).

Controller Annise Parker told City Council the relatively good news reflects a $9 million increase in overall revenue projection and a $3 million decrease in projected expenditures.

The MFOR shows increased projections for property tax and industrial assessments of $3 million and $8.7 million, respectively. Both increases are due to receipts from the Lyondell bankruptcy case, which were not previously anticipated due to uncertainty regarding the timing of payments.

Unfortunately, with only June sales tax receipts outstanding, Parker said her office is reducing sales tax projections by $6.4 million. On the positive side, the projection for licenses and permits rose $1.7 million, reflecting actual trends in permit revenues and ending the year better than expected. The department also increased projections for Municipal Courts fines and forfeits by $1.9 million to account for money collected through the annual year-end warrant roundup and amnesty programs.

General Fund expenditures are down just under $3 million. The FY09 budget adopted by City Council anticipated drawing down the fund balance by $51 million.

"If our current projections hold through next month’s report the amount needed from the fund balance will drop to $24 million," she said.



High-tech tools root out fraud and waste

 

The audit division of the Houston City Controller's Office has acquired new software that puts it at the leading edge of the financial auditing profession. 

“This new system provides the functionality of a computer-assisted auditing tool,” said City Controller Annise Parker.  “Unlike traditional auditing practices that rely on limited samples, the use of computer-assisted auditing allows extraction, manipulation and testing of unlimited amounts of data directly from multiple sources.  We will be better able to identify unusual transactions and trends that could be indicative of waste, fraud or abuse.”

The Controller's Office has acquired and is in the process of implementing three functional and interactive tools from ACL Services, a company with a long history of developing software for auditing purposes.  To help ensure optimal long-term benefit, the audit staff is receiving extensive training directly from the vendor.

Initial emphasis will be on transactions involving payroll, accounts payable, debit card use and accounts receivable with subsequent phases delving into testing for specific risks and assessment of performance measures.  “We are putting in place a system that provides for continuous monitoring of city financial transactions and internal controls,” said City Auditor Steve Schoonover. 

The new FY2010 audit plan is the first audit plan that includes a significant focus on computer-assisted auditing.