HomeMy WebLinkAboutOrdinance 19155-05-2010Ordinance No 19155-05-2010
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE GENERAL FUND IN THE AMOUNT OF $92,228.53, AND DECREASING THE
UNRESERVED UNDESIGNATED GENERAL FUND BALANCE BY THE SAME
AMOUNT FOR PAYMENT TO THE UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT FOR AUDIT FINDINGS PROVIDING FOR A
SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES REPEALING ALL ORDINANCES IN CONFLICT HEREWITH, AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS
SECTION 1
That in addition to those amounts allocated to the various City departments for Fiscal Year 2009-2010 in the
Budget of the City Manager there shall also be increased estimated receipts and appropriations in the
General Fund in the amount of $92,228.53, and decreasing the unreserved, undesignated General Fund
balance by the same amount, for payment to the United States Department of Housing and Urban
Development for audit findings.
SECTION 2
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void
for any reason by a court of competent jurisdiction such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3
That this ordinance shall be cumulative of Ordinance No 18809 and all other ordinances and appropriations
amending the same except in those instances where the provisions of this ordinance are in direct conflict
with such other ordinances and appropriations, in which instance said conflicting provisions of said prior
ordinances and appropriations are hereby expressly repealed
SECTION 4
This ordinance shall take effect upon adoption
APPROVED AS TO FORM AND LEGALITY
S
Assistant City Attorney
ADOPTED AND EFFECTIVE. Mav 18. 2010
City of Fort Worth, Texas
Mayor and Council Communication
~_
COUNCIL ACTION: Approved on °5/18/2010 -Ord
. ~. -~
DATE Tuesday May 18 2010
LOG NAME 17HEDESCROW
-_
. No. ':19155-05-2010
REFERENCE NO
......
G-16919
SUBJECT
Adopt Supplemental Appropriation Ordinance Increasing Appropriations in the General Fund by
$92 228 53 and Decreasing the Unreserved, Undesignated General Fund Balance by the Same
Amount, Confirm Payment of $92,228 53 for Audit Findings by the United States Department of Housing
and Urban Development and Adopt Appropriation Ordinance
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to
1 Adopt the attached supplemental appropriation ordinance increasing appropriations in the General
Fund in the amount of $92,228 53 and decreasing the unreserved undesignated General Fund balance
by the same amount; and
2. Confirm payment of $92,228 53 previously made to the United States Department of Housing and
Urban Development for audit findings
DISCUSSION
In 2004 the local field office of the United States Department of Housing and Urban Development (HUD)
conducted a financial management audit and review of the City's grant funded programs. This audit and
review identified an estimated $1 452 675 00 in questioned costs that could not be immediately resolved
so it was agreed that the City would create a restricted custodial account in the amount of the questioned
costs and engage an outside auditor to review them in more detail If the outside auditor determined a
questioned cost was in fact disallowed HUD would be paid from the custodial account as reimbursement
for the disallowed cost. HUD would then add those payments back into the City's HUD Line of Credit and
those funds would then be available for new eligible grant activities and projects The City would pay HUD
any interest earned on the account.
On May 29 2007 the City Council authorized the designation of $1 452 675 00 from General Fund
unreserved undesignated fund balance to be used to resolve the open audit findings regarding the
questioned costs and authorized the creation of a custodial account with Wells Fargo Bank to hold these
funds (M&C G-15737) The detailed review by City staff and the outside audit firm resulted in the final
amount of disallowed costs being substantially less than the total of the initially questioned costs
Payments to HUD as a result of the 2004 audit ultimately totaled only $273 627 00 However other City
HUD funded programs were also undergoing routine compliance audits, so staff recommended that the
balance of the custodial account be left in place to resolve any other audit findings requiring repayment to
HUD On December 16 2008 the City Council authorized the use of funds from the custodial account to
resolve any and all audit findings from HUD (M&C G-16403).
On March 9 2010 the City Council confirmed payments totaling $717 243 00 previously made to HUD
from the custodial account to remedy audit findings (M&C G-16867). The purpose of this M&C is to
Logname• 17HEDESCROW Page 1 of 2
confirm the additional payment to HUD of $92,229 00 from the custodial account to remedy audit findings
To date a total of $809 471 00 has been paid to HUD from the custodial account, $175 169 00 in Fiscal
Year 2009 and $634 302 00 thus far in Fiscal Year 2010
FISCAL INFORMATION /CERTIFICATION
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached supplemental appropriation ordinance funds will be available in the current
operating budget as appropriated of the General Fund Upon approval the unreserved undesignated
fund balance of the General Fund will exceed the minimum reserve in the Financial Management Policy
Statements
FUND CENTERS
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 539120 0905500 $92.228.53
CERTIFICATIONS
Submitted for City Manager's Office b~ Thomas Higgins (6192)
Originating Department Head. Jay Chapa (5804)
Additional Information Contact: Coy Gray (6203)
Logname: 17HEDESCROW Page 2 of 2