Menlo Park Fire Protection District

 

Financial Management

 

Program Overview

The Financial Management (FM) program supports all Menlo Park Fire Protection District (District) programs by ensuring financial accountability and transparency to the public. It provides financial, analytical, and purchasing services to all District operations. The program upholds excellence in financial reporting and oversight, managing the District's funds and accounts in compliance with established policies and regulations. 

Management Oversight

The FM program is overseen by the Administrative Services Director, with operational oversight delegated to the Finance Manager. The program is staffed by five full-time equivalent positions and covers expenses related to bank and merchant services, auditing and actuarial services, consulting, general services, training and conference fees, office supplies, and property tax collection fees assessed by San Mateo County.

Program Objectives

  • Oversee all financial activities of the District, including budgeting, accounting, investments, purchasing, and financial reporting.
  • Interpret and apply laws, regulations, and policies to guide financial decisions and ensure compliance.
  • Develop and enforce financial accounting practices aligned with generally accepted accounting principles (GAAP).
  • Supervise the annual audit conducted by an external auditing firm to ensure accuracy and accountability in financial reporting.
  • Coordinate the review and preparation of the District's annual preliminary budget, ensuring alignment with organizational goals and priorities.

FY 2024-25 Accomplishments

  • Received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the FY 2023-24 Annual Comprehensive Financial Report (ACFR). This marks the 14th consecutive year the District has earned this prestigious recognition.
  • Completed the annual financial audit and single audit with an unmodified opinion and produced the ACFR within the required legal deadline.
  • Continued using OpenGov budgeting software, improving budget preparation, forecasting accuracy, and expenditure tracking, which enabled better budget monitoring and informed financial decision-making
  • Created a budget policy that enables the District to carry out budgetary administrative tasks more efficiently.
  • Developed and refined the Capital Asset and Surplus Policy.
  • Further developed and diversified the investment portfolio to better align with and support the District’s financial goals.

FY 2024-25 Program Initiatives

  • Ongoing development and refinement of financial policies and internal controls to ensure accountability and efficiency.
  • Begin evaluating and selecting an Enterprise Resource Planning (ERP) system to integrate accounting, budgeting, payroll, and timekeeping functions for greater operational efficiency.
  • Ensure all required audits are completed in a timely manner, achieving satisfactory results.
  • Obtain the GFOA Certificate of Achievement for Excellence in Financial Reporting and initiate the process for earning the GFOA Budget Excellence Award.
  • Conduct and document an internal control assessment to determine if the current controls effectively mitigate identified organizational risks and make modifications as necessary.

Full-Time Equivalent Personnel

Program Expenditure Summary

Expenditure Analysis

Salaries: The expenditure request includes regular salaries, annual leave, holiday pay, leave cash-outs, workers’ compensation, and other paid leaves. The increase is due to the anticipated general wage increase and the inclusion of salary costs for the Senior Payroll Analyst position, which has been transferred from the Human Resources program to the current program. This adjustment accounts for both the wage increase and the additional salary expenses for the transferred position.

 

Retirement: The expenditure request includes the standard employer retirement contribution, Unfunded Actuarial Liability (UAL) annual payment, UAL excess payment, and Medicare tax payments. The $107,160 increase is due to the allocation of UAL annual and excess expenses to the employee program, an increase in the normal retirement contribution rate, and the inclusion of retirement costs for the Senior Payroll Analyst position. This increase reflects the growing financial obligations associated with the retirement fund and the addition of retirement expenses for the newly transferred position.

 

Benefits: The expenditure request includes payments for the café plan, dental plan, life insurance, and post-employment health plan benefits. The $63,131 increase is due to the potential year-over-year rate increases for benefit plans, along with the inclusion of benefits costs for the Senior Payroll Analyst position. This increase reflects both the annual cost adjustments for the benefit plans and the addition of benefits expenses for the newly transferred position.