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Box 3, Folder 14, Document 6
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i : ? : : :
' : WHAT DOES THE DEPARTMENT OF FINANCE DO?
Funds for EOA in 1968 amounted to $14,897,150 in Federal plus
approximatately $200,000 available in Local Cash. Of the retecal Cash,
$21,763 came Feo. thee Nertonst eacnctl on Arts and Humanities, $5,315,411
from the Department of Labor ard $9,559,976 from OzO. EOA will have done
the detailed payrolling, siechestay nia accounting for sixty-eight
projects and will, have funded forty-four pelegcte Agency Projects during
1968.
.EOA Finance does the payrolling, purchase of supplies, detail
a,
accounting and other financial oporar’ons involving $7,266,925. Finance
- funded through Delegate Agencies EOA pvograms totalling $7,630,225. Finance
AA
\\
4
Ni
\
payrolls the verscinel j- Headquarters--fourteen Neighborhood
Service Centers--s2ven y Care Centers --the Parent-Child Center and West
End Child Center. this involves 513 employees. paid from CAP funds -- 14-
staff and 267 enrollees from NYC funds -- 99 staf£ and 73 enrollees from
ACEP funds. During the susmer months, Finance payrolled around 810 employees
in the Summer Recreation Program and 98 employees. in Summer Headstart. There
are occasions when our payroll staff are called upon to do the impossible,
for example: -During July and August, we were
be
nstructed to payroll an
additional 500 Nyc enrollees. We did it. When you think of a Payroll
Operation, you think only of a "pay check". The pay check is only the "end-
product", Think again -- time sheets are fed cake Payroll fron. around 200
locations, Each ene, time-earned, leave taken, etc. must be fed into a
computer. Deductions for Federal end State Income Tax -- FICA -- Retitre-
ment ~-Group Insurance -- Charity, etc. must be deducted. Look at your per-
check stub and visualize all the calculated detail. Multiply your
Kes 2G Bt een ale] ss ehoaaelea «4 1 4 a7-74- ax: ebapt-s = 4
detail by 626 bi-weekly pay checks and 340 weekly pay checks for year round
2. os 7 = a ee es oe ae = e oe ne Ten Sea “: a ~
Operetions end you get a better picture, During the summer, add another
\
finished. Quarterly, we make payments of your FIT and SIT deductions to
Uncle Sam and the State and then pay to Uncle Sam your FICA along with EOA's
contribution by listing each employee, his name, Social Security number,
your earnings, etc. At the end of the year, we prepare your W-2's for your
Income Tax Returns and simultaneously report to Uncle Sam and the State.
Also, think what happens in Payroll when you are hired: A file maintenance
has to be completed on each individual - name and address, date employed,
location, sex, marital status, date of birth, Social Security number, Budget
Account, Base Code, rate of pay, pension and number of withhold exemptions.
Every Personuel Acvion Salary fecreaees Name Change, Change of Address,
Termination, etc, causes a change reaction in payrolling.
Also when rou take a day's leave or work an hour overtime or on Com-
pensatory Time, this « uses individual actions in payroll. Our payroll
girls do a tremendous icb, with almost no complaint. Most important, pay
checks are always ready on payday. Errors are nil. Payrolling is one of
many Finance operations.
Finance issues around 60,000 checks a year. Each check is the result
of: Payroll; Travel; Rent; Purchase; Telephone Bill, ete. Before a check
is issued, there must be a voucher with supporting documentation which must
_be thoroughly audited so as to be certain that it is calculated correctly,
coded against a Budget Line Item, and is proper in all respects.
(aq fee Tee
Finances' Purchasing Department will have this year issued 1,600
Purchase Orders Ss 440 Service Orders and -- 400 orders to GSA, which will
involve around 17,000 line items. parchaadis gets the requisition;
establishes the method of procurement; gets bids from suppliers where
appropriate; and then issues the procuring document. Later Purchasing starts |
hounding you for the receiving report and the vendor for the invoice. When
: lee :
received, Purchasing verifies these documents and then passes on to
Fiscal for payment. Frequently in the process, Purchasing 'haggles" with
the Supplier to expedite what wou want and then later the Supplier “haggles"
Purchasing for payment. At that point, Purchasing starts "haggling" you,
The receiver, for your Receiving Report. Along with this, Purchasing dis-
trYibutes internal mail; sends things through postal mail or arranges for
your slifpnente, Ir does a big business of xerox, off-set reproduction and
collation; It stocks and issues your office supplies; and keeps track of
about 6,500 items of capital equipment. It arranges your lease, moves you -- gets
building renovations done a= G256 .uitding insurance liability -- insures
your official vehicle after having leased it -- gets your typewriter repaired oa
arranges for your tele noone and utilities and arranges many, many other things
with which you have fac*lity to do your job of operations such as pest doakeot a
janitorial service ~~ and that city bus to take VIP's on an inspection tour.
Yes, Purchasing has a terrific job of servicing you and we in Finance are
proud of the job it does.
Finance does the accounting for EOA, Our Accounting Division gets
the money in "hunks" and puts it in the bank. folpunties then proceeds to
account for the "out-go" penny by penny, Accounts must excercise controls.
When a requisition is received, Accounts determines that: there is money to
pay for the purchase and when purchased it must have record of the obligation.
Each receipt, obligation and expenditure must be recorded. During 1968,
we had 2,160 Distribution Ledger Accounts with corresponding acenunts in
six General Ledgers. Can you imagine the volume of detail in entering into the
Distribution Ledger Accounts, the budgets, obligations, expenditures and resulting
unobligated balances for each aed evans transaction and requiring absolute
accuracy in the steueke, Also entered in detail is every "crumb" of In-
Kind or Local Support. EOA uses a minimum of a “"Double-Entry" Accounting
System, which means that every entry in the Distribution Ledger is also
= . © wir
entered in General Ledger and the two ledgers must balance. So lets in~-
vision some 12,000 entries each month in the "Distribution Ledger" that
must match up in dollar value to corresponding entries in the "General
Ledger", Get the picture for accuracy perfection? Yes, we have all sorts
of checks and balances. For example, it is essential that our bank gecountE
have accumulative deposits and withdrawals.which agree with our records of
expenditures. At the end of each month, our Accountants must come-up with
Financial and Budget Reports to show management -- and you -- how we stand
moneywise. There are 107 sheets in the Budget Report which involve about
3,638 line items. OEO and the Department of Labor, our auditors and a few
; ‘ 4 ee
others ave interested too and Finance must produce reports which agree witu
their figures. You get copies of some of these monthly reports. Try and
ne ER ae
visualize the many recorded eeenanetvons. witen are entailed in the compilation
|
of these reports. You really can't -= but try. To compound this a little,
we should let you know that Finance must use a different Accounting System
to satisfy CAP, NYC and ACEP and that OEO, NYC and ACEP periodically change
their systems, and then -~ we must change ours,
|
|
Our Internal Audit reconciles all accounts and for one thing they. have
to look at those 60,000 duhies which were issued and be sure none were
"hiked", that they were endorsed and several other things. When you lose
your check, Finance has to put = "stop order" at the bank before we can
issue you a replacement ae and then -- to make certain someone doesn't
find and collect on the check you lost. Audit must review the "In-Kind" you
report and then be sure it is credited to =a project. In the process, Audit
|
has been known to prod you little to get your In-Kind "in". Audit also
takes a look at Delegate Agencies" accounts just to make sure they are living
| '
right. Audit rides herd on Petty Cash, Emergency Assistance and other escrow
funds that are made available to units outside Finance. We have about 43 of
such accounts. Each must be carefully analyzed and reimbursed each month by
=5m
/-
Internal Audit. This year Audit is supervising the Employees Credit Union,
reconciles our bank accounts to the General Kader, monitors the Retirement Fund
and handles Clearances for indebtedness for final pay settlement to departing
employees.
The Fiscal Officer does the paying of all the bills. Here, all the
vouchers are carefully axeutned and checks drawn for payment. Most payments
are run through Data Processing but a large number of checks are handdrawn.
Most checks are run =F the check signing machine. Fiscal maintains a
careful vigilance on blank checks and the check signing machine to guarantee against
fraud and embezzlement. bia you know that in the history of EOA there hes been
only one instance of fraud (a long time ago) which’ anyoived around $400.00 aad
that amount was immediately recovered. Even an attempt to fraud would require
the conspiracy of four key people and in Finance, that < 100% unlikely. Eve.
if it should happen, such fraud would be immediately discovered under our
system of checks and balenkes: Fiscal will voucher and pay around 7,000 bills
this year for such items ak supplies, services, Travel Vouchers, rent, tele-
phone, utilities, equipment, etc. Fiscal also assists in preparation of budgets
for Programming. Our Budget Control is being refined .and we will soon Vave
capability of more assurance to Management that obligations and expenditures
are as provided by budgets as approved and modified by Management. Fiscal
also controls the Key Punch operations for Data Processing. Our Fiscal
Operation assures the Stzeetoe of Finance and EOA Management that every nickel
of disbursement in its day to day operation is proper in all respects and we
can all sleep well every night in this knowledge.
Finance is now handling all Insurance and Employee Retirement. We
_ inherited this in September,’ 1968. Since that time EOA employees have
enjoyed a much increased Group Insurance and Hospital Benefit Plan. Records
have been brought up-to-date and you are assured of coverage... New booklets
2 -6-
of your coverage are now being made available to you. All claims received
are being processed on the date received. The Retirement Fund has been
audited for the first time -- Retirement records are current and up-to-date.
Many old accounts have been settled. The evaluations for each six-months
period have been established for the periods since 1965 through 6/30/68
and we expect to have made the 12/31/68 evaluation prior to 1/31/69. Each employee
‘fe an up-to-date card record which shows the employee contribution, EOA con-
tribution, number of units credited and the value of such units. We also
handle Workmen's Compensation claims for employees and enrollees totalling
from 1,000 te 2,500 cersons.
The foregcing gives you a “ball-park'" view of what Finance does.
What Joes “he Wirector of Finance do" Well, he attends a lot of
meetings -- has a lot . visitors -- writes a lot of reports (such as this
one) -- and must keep closeiv knowledgeable of all those things going on in
Finance and in EOA as they relate to Finance. His main concern is effort to
see that people in Finance get deserving recognition for the terrific job
they do for EOA and for the people who work in EOA. This report, which is
lacking in much detail in the way of a complete reflection of all those
things done by Finance, is written in appreciation and commendation of the
Department of Finance Staff.
November 26, 1968
\\
' : WHAT DOES THE DEPARTMENT OF FINANCE DO?
Funds for EOA in 1968 amounted to $14,897,150 in Federal plus
approximatately $200,000 available in Local Cash. Of the retecal Cash,
$21,763 came Feo. thee Nertonst eacnctl on Arts and Humanities, $5,315,411
from the Department of Labor ard $9,559,976 from OzO. EOA will have done
the detailed payrolling, siechestay nia accounting for sixty-eight
projects and will, have funded forty-four pelegcte Agency Projects during
1968.
.EOA Finance does the payrolling, purchase of supplies, detail
a,
accounting and other financial oporar’ons involving $7,266,925. Finance
- funded through Delegate Agencies EOA pvograms totalling $7,630,225. Finance
AA
\\
4
Ni
\
payrolls the verscinel j- Headquarters--fourteen Neighborhood
Service Centers--s2ven y Care Centers --the Parent-Child Center and West
End Child Center. this involves 513 employees. paid from CAP funds -- 14-
staff and 267 enrollees from NYC funds -- 99 staf£ and 73 enrollees from
ACEP funds. During the susmer months, Finance payrolled around 810 employees
in the Summer Recreation Program and 98 employees. in Summer Headstart. There
are occasions when our payroll staff are called upon to do the impossible,
for example: -During July and August, we were
be
nstructed to payroll an
additional 500 Nyc enrollees. We did it. When you think of a Payroll
Operation, you think only of a "pay check". The pay check is only the "end-
product", Think again -- time sheets are fed cake Payroll fron. around 200
locations, Each ene, time-earned, leave taken, etc. must be fed into a
computer. Deductions for Federal end State Income Tax -- FICA -- Retitre-
ment ~-Group Insurance -- Charity, etc. must be deducted. Look at your per-
check stub and visualize all the calculated detail. Multiply your
Kes 2G Bt een ale] ss ehoaaelea «4 1 4 a7-74- ax: ebapt-s = 4
detail by 626 bi-weekly pay checks and 340 weekly pay checks for year round
2. os 7 = a ee es oe ae = e oe ne Ten Sea “: a ~
Operetions end you get a better picture, During the summer, add another
\
finished. Quarterly, we make payments of your FIT and SIT deductions to
Uncle Sam and the State and then pay to Uncle Sam your FICA along with EOA's
contribution by listing each employee, his name, Social Security number,
your earnings, etc. At the end of the year, we prepare your W-2's for your
Income Tax Returns and simultaneously report to Uncle Sam and the State.
Also, think what happens in Payroll when you are hired: A file maintenance
has to be completed on each individual - name and address, date employed,
location, sex, marital status, date of birth, Social Security number, Budget
Account, Base Code, rate of pay, pension and number of withhold exemptions.
Every Personuel Acvion Salary fecreaees Name Change, Change of Address,
Termination, etc, causes a change reaction in payrolling.
Also when rou take a day's leave or work an hour overtime or on Com-
pensatory Time, this « uses individual actions in payroll. Our payroll
girls do a tremendous icb, with almost no complaint. Most important, pay
checks are always ready on payday. Errors are nil. Payrolling is one of
many Finance operations.
Finance issues around 60,000 checks a year. Each check is the result
of: Payroll; Travel; Rent; Purchase; Telephone Bill, ete. Before a check
is issued, there must be a voucher with supporting documentation which must
_be thoroughly audited so as to be certain that it is calculated correctly,
coded against a Budget Line Item, and is proper in all respects.
(aq fee Tee
Finances' Purchasing Department will have this year issued 1,600
Purchase Orders Ss 440 Service Orders and -- 400 orders to GSA, which will
involve around 17,000 line items. parchaadis gets the requisition;
establishes the method of procurement; gets bids from suppliers where
appropriate; and then issues the procuring document. Later Purchasing starts |
hounding you for the receiving report and the vendor for the invoice. When
: lee :
received, Purchasing verifies these documents and then passes on to
Fiscal for payment. Frequently in the process, Purchasing 'haggles" with
the Supplier to expedite what wou want and then later the Supplier “haggles"
Purchasing for payment. At that point, Purchasing starts "haggling" you,
The receiver, for your Receiving Report. Along with this, Purchasing dis-
trYibutes internal mail; sends things through postal mail or arranges for
your slifpnente, Ir does a big business of xerox, off-set reproduction and
collation; It stocks and issues your office supplies; and keeps track of
about 6,500 items of capital equipment. It arranges your lease, moves you -- gets
building renovations done a= G256 .uitding insurance liability -- insures
your official vehicle after having leased it -- gets your typewriter repaired oa
arranges for your tele noone and utilities and arranges many, many other things
with which you have fac*lity to do your job of operations such as pest doakeot a
janitorial service ~~ and that city bus to take VIP's on an inspection tour.
Yes, Purchasing has a terrific job of servicing you and we in Finance are
proud of the job it does.
Finance does the accounting for EOA, Our Accounting Division gets
the money in "hunks" and puts it in the bank. folpunties then proceeds to
account for the "out-go" penny by penny, Accounts must excercise controls.
When a requisition is received, Accounts determines that: there is money to
pay for the purchase and when purchased it must have record of the obligation.
Each receipt, obligation and expenditure must be recorded. During 1968,
we had 2,160 Distribution Ledger Accounts with corresponding acenunts in
six General Ledgers. Can you imagine the volume of detail in entering into the
Distribution Ledger Accounts, the budgets, obligations, expenditures and resulting
unobligated balances for each aed evans transaction and requiring absolute
accuracy in the steueke, Also entered in detail is every "crumb" of In-
Kind or Local Support. EOA uses a minimum of a “"Double-Entry" Accounting
System, which means that every entry in the Distribution Ledger is also
= . © wir
entered in General Ledger and the two ledgers must balance. So lets in~-
vision some 12,000 entries each month in the "Distribution Ledger" that
must match up in dollar value to corresponding entries in the "General
Ledger", Get the picture for accuracy perfection? Yes, we have all sorts
of checks and balances. For example, it is essential that our bank gecountE
have accumulative deposits and withdrawals.which agree with our records of
expenditures. At the end of each month, our Accountants must come-up with
Financial and Budget Reports to show management -- and you -- how we stand
moneywise. There are 107 sheets in the Budget Report which involve about
3,638 line items. OEO and the Department of Labor, our auditors and a few
; ‘ 4 ee
others ave interested too and Finance must produce reports which agree witu
their figures. You get copies of some of these monthly reports. Try and
ne ER ae
visualize the many recorded eeenanetvons. witen are entailed in the compilation
|
of these reports. You really can't -= but try. To compound this a little,
we should let you know that Finance must use a different Accounting System
to satisfy CAP, NYC and ACEP and that OEO, NYC and ACEP periodically change
their systems, and then -~ we must change ours,
|
|
Our Internal Audit reconciles all accounts and for one thing they. have
to look at those 60,000 duhies which were issued and be sure none were
"hiked", that they were endorsed and several other things. When you lose
your check, Finance has to put = "stop order" at the bank before we can
issue you a replacement ae and then -- to make certain someone doesn't
find and collect on the check you lost. Audit must review the "In-Kind" you
report and then be sure it is credited to =a project. In the process, Audit
|
has been known to prod you little to get your In-Kind "in". Audit also
takes a look at Delegate Agencies" accounts just to make sure they are living
| '
right. Audit rides herd on Petty Cash, Emergency Assistance and other escrow
funds that are made available to units outside Finance. We have about 43 of
such accounts. Each must be carefully analyzed and reimbursed each month by
=5m
/-
Internal Audit. This year Audit is supervising the Employees Credit Union,
reconciles our bank accounts to the General Kader, monitors the Retirement Fund
and handles Clearances for indebtedness for final pay settlement to departing
employees.
The Fiscal Officer does the paying of all the bills. Here, all the
vouchers are carefully axeutned and checks drawn for payment. Most payments
are run through Data Processing but a large number of checks are handdrawn.
Most checks are run =F the check signing machine. Fiscal maintains a
careful vigilance on blank checks and the check signing machine to guarantee against
fraud and embezzlement. bia you know that in the history of EOA there hes been
only one instance of fraud (a long time ago) which’ anyoived around $400.00 aad
that amount was immediately recovered. Even an attempt to fraud would require
the conspiracy of four key people and in Finance, that < 100% unlikely. Eve.
if it should happen, such fraud would be immediately discovered under our
system of checks and balenkes: Fiscal will voucher and pay around 7,000 bills
this year for such items ak supplies, services, Travel Vouchers, rent, tele-
phone, utilities, equipment, etc. Fiscal also assists in preparation of budgets
for Programming. Our Budget Control is being refined .and we will soon Vave
capability of more assurance to Management that obligations and expenditures
are as provided by budgets as approved and modified by Management. Fiscal
also controls the Key Punch operations for Data Processing. Our Fiscal
Operation assures the Stzeetoe of Finance and EOA Management that every nickel
of disbursement in its day to day operation is proper in all respects and we
can all sleep well every night in this knowledge.
Finance is now handling all Insurance and Employee Retirement. We
_ inherited this in September,’ 1968. Since that time EOA employees have
enjoyed a much increased Group Insurance and Hospital Benefit Plan. Records
have been brought up-to-date and you are assured of coverage... New booklets
2 -6-
of your coverage are now being made available to you. All claims received
are being processed on the date received. The Retirement Fund has been
audited for the first time -- Retirement records are current and up-to-date.
Many old accounts have been settled. The evaluations for each six-months
period have been established for the periods since 1965 through 6/30/68
and we expect to have made the 12/31/68 evaluation prior to 1/31/69. Each employee
‘fe an up-to-date card record which shows the employee contribution, EOA con-
tribution, number of units credited and the value of such units. We also
handle Workmen's Compensation claims for employees and enrollees totalling
from 1,000 te 2,500 cersons.
The foregcing gives you a “ball-park'" view of what Finance does.
What Joes “he Wirector of Finance do" Well, he attends a lot of
meetings -- has a lot . visitors -- writes a lot of reports (such as this
one) -- and must keep closeiv knowledgeable of all those things going on in
Finance and in EOA as they relate to Finance. His main concern is effort to
see that people in Finance get deserving recognition for the terrific job
they do for EOA and for the people who work in EOA. This report, which is
lacking in much detail in the way of a complete reflection of all those
things done by Finance, is written in appreciation and commendation of the
Department of Finance Staff.
November 26, 1968
\\
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