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HomeMy WebLinkAboutOrdinance 19334-09-2010Ordinance No 19334-09-2010 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $57 494 07 AND DECREASING THE UNRESERVED UNDESIGNATED GENERAL FUND BALANCE BY THE SAME AMOUNT TO REMEDY 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 $57 494 07 and decreasing the unreserved undesignated General Fund balance by the same amount, to remedy 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in which instance said conflicting provisions of said prior ord+nances and appropriations are hereby expressly repealed r SECTION 4 This ordinance shall take effect upon adoption APPROVED AS TO~FORM AND LEGALITY c..~ + Assistant City Attorney ADOPTED AND EFFECTIVE. September 14, 2010 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Appr©ved on 9/14/201`0 -Ord. No. 19334-09-2010.: -_ ~ ~ ~ .- _ -~- _< m DATE Tuesday September 14 2010 REFERENCE NO G-17049 LOG NAME 17HEDESCROW2 SUBJECT Adopt Supplemental Appropriation Ordinance Increasing Appropriations in the General Fund by $57 494 07 and Decreasing the Unreserved Undesignated General Fund Balance by the Same Amount, Confirm Payment of $57 494 07 for Audit Findings by the United States Department of Housing and Urban Development and Adopt Supplemental 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 $57 494 07 and decreasing the unreserved undesignated General Fund balance by the same amount; and 2. Confirm payment of $57 494 07 made in .Fiscal Year 2010 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. 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 of $717,242 92 (M&C G-16867) and on May 18 2010 confirmed payments of $92,228 53 (M&C G-16919) previously made to HUD from the custodial account to remedy audit findings. The purpose of this M&C is to confirm additional payments to HUD Logname• 17HEDESCROW2 Page 1 of 2 totaling $57 494 07 from the custodial account to remedy audit findings and will allow those findings to be closed To date $875 465 52 has been .paid to HUD from the custodial account, $175 169 00 was paid during Fiscal Year 2009 and $700,296 52 has been paid in Fiscal Year 2010 The funds expended on this finding will be added back to the City's HUD Line of Credit to fund eligible activities All funds in the custodial account have been expended on payments to HUD and it has been closed 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/AccountlCenters GG01 539120 0905500 57 494.07 CERTIFICATIONS Submitted for City Manager's Office bv: Thomas Higgins (6192) Originating Department Head. Jay Chapa (5804) Additional Information Contact: Socorro 'Coy" Gray (6203) Logname: 17HEDESCROW2 Page 2 of 2