Houston Fire Department Finance and Administration

Deputy Director Neil J. DePascal, Jr. , CPA
HFD Finance & Administration
713-247-8721
1205 Dart Street , Houston , TX 77007
neil.depascal@cityofhouston.net

Personal Background - B.A. History and Accounting, Youngstown State University, 1972; M.B.A. Finance, University of St. Thomas, 1984; Doctoral Learner (DBA), University of Phoenix; Commander, USNR (Retired); Faculty Practitioner, University of Phoenix, Accounting and Finance

Certifications: Certified Public Accountant, State of Texas , 1981

Committees and Advisory Boards; Advisory Board, Cameron School of Business, University of St. Thomas; City of Houston ERP-SAP Steering Committee; Houston CPA Society; Accounting Career Education Committee

The Finance and Administration Command is comprised of:

General Accounting
Budgets
Financial Analysis
Fixed Assets
Compliance
Permits Office (Revenue and Cash Accounting)
SAP

The command provides support services to the operational commands within the Houston Fire Department. There are 20 civilian personnel currently assigned to this command.

General Accounting

Budget & Financial Reporting
The staff of three is responsible for the preparation and monitoring of the annual budgets for the General Fund, Capital Improvement Plan Budget , and the Capital Equipment Budget . In addition, they prepare the Five-Year Plan; prepare monthly financial reports for the Controller's Office and Finance and Administration; prepares interdepartmental billing for services rendered to the airport; and prepare monthly financial reports for each division within the Fire Department.

Internal Audit
The two members of the Internal Audit section are charged with performing both financial and performance audits within the Fire Department to assist us in proactively identifying and solving problems. This section also conducts the annual inventory of fixed assets.

Accounts Payable
Accounts Payable has two sections, accounts payable and contracts payables, and have four staff members. They are responsible for the timely processing of invoices, city business travel, college tuition reimbursements, and mileage reimbursements.

Revenue and Cash Accounting
This unit has seven staff members that process the billing for Hazardous Materials revenues, processes fire permits, handles the Department's petty cash, processes bank reconciliation and general ledger reconciliations, and handles other types of miscellaneous revenues.

Budgets

Five Years Operating Budget - General Fund (click on chart to enlarge)

The Fiscal year runs from July 1 - June 30 of each year. The operating budget is comprised of three main categories: personnel services, supplies and other equipment and charges. In FY08, 93.6 percent of the 387.7 million dollar budget is for personnel services, supplies make up 3.8 percent and other equipment and charges are 2.6 percent.

SAP

SAP Implementation: During FY07, the Houston Fire Department participated in the City of Houston SAP implementation. The project was divided into two phases: Phase I included the implementation of SAP modules related to the Finance and General Accounting and Materials Management aspects of City business. Phase II included the implementation of SAP modules related to Human Resources and Payroll. Phase I of the project was effective July 1, 2006. The Houston Fire Department commenced using the new ERP system in the areas of fund accounting, accounts payable, budgeting, banking and cash management, grants, procurement and purchasing, and inventory/warehouse management. Phase II of the project, included Human Resources and Payroll.

The Houston Fire Department commenced using these modules effective March 24, 2007, the beginning of the City's payroll period eight. The fi rst paychecks were delivered to approximately 4,200 Houston Fire Department employees on April 13, 2007.

Equipment Acquisition Fund – Capital Equipment:

The Houston Fire Department purchases capital equipment through the Equipment Acquisition Fund (EAF). The EAF acquires the majority of capital equipment for all General Fund departments and selected special revenue funds within the City of Houston (City). Commercial paper is issued by the City to finance the purchase of capital equipment budgeted in the EAF.

The capital acquisition budget for FY 2008 totaling approximately $6.6 million is comprised of rolling stock and non-rolling stock items. Rolling stock consists of five engines, a hazmat truck, ambulance and squad modules and cab chassis, automobiles and a delivery van totaling approximately $4.3 million. Non-rolling stock items included in the FY 08 capital budget total approximately $2.3 million. The capital acquisition budget for FY 07 was $6.9 million including rolling stock items, of $5.7 million.

Capital Improvement Plan:

The Capital Improvement Plan (CIP) is a plan for physical improvements to public facilities and infrastructure. The plan is a five year capital improvement planning process. This process is a continuous process that includes annual review and revision if necessary resulting from changing priorities within each City department.

The fiscal years 2007 through 2011 Fire Facilities Improvements Program totals $100.8 million. The primary sources of funding include Public Improvement Bonds, and selected grant funding. The improvements program includes new construction, renovation/rehabilitation, and relocation to expand and maintain a network of fi re stations and facilities to be able to quickly and efficiently meet emergency needs.

The highlights of the construction projects funded in the FY 2007-2011 CIP include:
• Construction of six new fi re stations Nos. 24, 84, 90, 95, 105 and the far west side of Houston
• Design and construction for the relocation of station No. 37
• Improvements at the Fire Training Academy
• Renovation and major repairs to existing stations
• Preliminary planning for a Fire Department Headquarters building

Fiscal year planned appropriations include: $16.6 million (FY 2007), $12.8 million (FY 2008), $19.2 million (FY 2009), $32 million (FY 2010), and $20.2 million (FY2011).

Revenues:
The Houston Fire Department collects revenues for certain services provided to other City of Houston departments, primarily the Houston Airport System, for services provided by the Life Safety Bureau, primarily for certain fi re permits, and standby services, and ambulance fees for EMS services. The ambulance fees are billed and collected by an outside third party. Actual revenues for FY 06 were $47.6 million. Projected revenues for FY 07 are anticipated to be approximately $45.1 million. Revenues for FY 2008 are expected to be approximately $46.5 million.