What exactly is your Finance department doing ??

From: Ted Noftall [mailto:Ted@TedNoftall.com]
Sent: Wednesday, May 07, 2014 6:50 PM
To: ‘Kisela, Greg’
Cc: Robin Fenwick (rfenwick@port-orange.org)
Subject: Do adequate financial records exist or not ??

TedNoftallThank you Manager Kisela,
I am trying to establish that this round of correspondence is being initiated by Ted the private citizen and while the correspondence to-and-fro is itself a public record any subsequent use I may or may not make of it is not the business of the state.  If you believe otherwise and that you have a right to know if I subsequently share it  with my Mother or my Brother or anyone else or no one else you will need  to test your theory in court.
Your comment regarding inventory controls is  troubling.  Of course your supply inventory is constantly being received and depleted.  The whole point of not charging these large dollar number purchases directly to expense but rather to an inventory account  is to force financial reconciliations against tracked physical quantities which  is a concept that competent CFO’s and Comptroller’s  are cognizant of.   What exactly is your Finance department doing ??
Of equal concern from your e-mail as brief as it is that I am sensing an admission is in the offing to the effect that your Finance department does not track the revenue and expenses for water and sewer business it conducts outside the city limits,  AND  as such  Finance cannot  advise if the City is making a profit or incurring a loss on some or all of these  activities.
If that is the case that speaks volumes regarding the financial accounting competency  of your CFO and Comptroller.
Manager Kisela I do not sense that you appreciate that the City of Port Orange is a near $70 million a year business  approximately ½ of which is received  in cash, and THAT IT DEMANDS  greater financial accounting competence than reacting to a handful of annual  audit comments that themselves are not resultant from any analysis as to the adequacy of internal controls or financial accounting reporting  which we know the Finance department does not undertake.
I also do not sense  you appreciate at all  that the hard working taxpayers of Port Orange do not want to suffer the consequences of another round of Manager misfeasance by  accepting substandard performance on the part of the City’s  CFO and Comptroller.
I hope you can demonstrate that my sense of this situation is wrong and that your Finance department is performing competently as regards these  matters.
Ted Noftall

–Original Message—–
From: Kisela, Greg [mailto:gkisela@port-orange.org]
Sent: Wednesday, May 07, 2014 3:16 PM
To: Ted Noftall; Fenwick, Robin
Cc: Saunders, Wayne; Roberts, Margaret
Subject: RE: Financial FOI
GregKiselaTed: I did not represent that we tracked the yearly expenses for Daytona Beach Shores, Ponce Inlet and the fly-in areas on annual basis.  I represented that we had cost of service studies/calculations  for the rates we charged these entities.   Some of these studies/calculations  maybe dated depending on when they were last completed.
I will defer to Finance on what reports are available on the inventory levels.   As you know we are constantly receiving and charging out material for utility work.
I will defer to Margaret Roberts, City Attorney,  if this material when distributed to you, remains a public record since it falls under the responsibility you oversee on the Audit and Budget Board.
Greg Kisela
City Attorney

From: Ted Noftall [mailto:Ted@TedNoftall.com]

Sent: Wednesday, May 07, 2014 11:43 AM
To: Robin Fenwick (rfenwick@port-orange.org)
Cc: ‘Kisela, Greg’
Subject: Financial FOI

TedNoftallGood morning Robin,
I was pleased to learn at  last evening Council meeting  that Finance does indeed track revenue and expenses—profit and loss,  on water and sewer business it conducts outside the city limits,  AND THAT  major supply purchases such as were discussed in last evenings change orders are not expensed as made but rather are booked into inventory.
In that regard please supply the following pursuant to Florida’s Freedom of Information statutes.

  • *) Profit and loss for both water sales and sewer processing for the first half of the current fiscal year and for each of the previous 3 fiscal years, segmented as between the cities of Daytona Beach Shores and Ponce Inlet,   and the County of Volusia.
  • *)  Screen shot of the general ledger inventory account(s)  indicating additions to and withdrawals  from,   along with the subsidiary ledger(s)  against which quantities are balanced against those General ledger dollar totals for each of the past 6 months.

Please call to discuss  if this material can be produced  in one manner vs another that is less time consuming for Finance staff.
This transmission is being made in my capacity as a private citizen,  and should not be construed as being made in any other.


5 thoughts on “What exactly is your Finance department doing ??

  • May 8, 2014 at 12:54 pm

    I’m going to try to add a little clarity to this. On the subject of meter change out inventory I would suggest that they inventory these materials on at the most a monthly basis due to the volume and speed that they plan to go through them. They also need to track the warehouse personnel time for dispensing and inventorying the material.
    Ponce Inlet
    Ponce Inlet owns and maintains their water system. We sell them water through two master meters. The only costs that we should incur on the water side would be maintenance on the master meters, meter reading and if we assisted them on a main break. If we assist them we do a charge back to recover our expenses.
    On the sewer side Port Orange owns and maintains the sewer system. It is considered part of our sewer system like any other part of the system. I don’t think the city has ever broke that out as a separate expense it is part of the overall system.
    DB Shores
    In the Shores Port Orange owns and maintains the water system. Like the Ponce Inlet sewer system it is considered part of our overall water system. Again I don’t think it has been broke out as a separate system or expense.
    Shores owns and maintains their sewer system. They meter the sewage that gets pumped to Port Orange through their master lift station. If we assist them we do a charge back.
    The County/Fly In
    The County owns and maintains both their water and sewer systems. There are two meters on the sewage line that pumps to Port Orange. One belongs to the County and one to Port Orange. We would incur costs by having a meter reader read the meter and meter maintenance. If we assist them we do a charge back. On these three items you also need to account for the cost to the finance department for processing and billing. Tracking costs by employees in the field for any work can be accomplished with crew reports that reflect time, material and vehicle costs. I hope that this is informational.

    • May 8, 2014 at 1:53 pm

      I was thinking operational costs and left off capital cost in my previous comments. Also consider capital costs such as lift station replacement and rehab, wet well lining, manhole and gravity system rehab, line pigging meter replacement, hydrant replacement etc.

  • May 9, 2014 at 9:38 pm

    The sad thing is that their appears to be no coordination or interface between the Public Utilities and the Finance Department. Public Utilities is producing ten’s of millions of dollars worth of product every year and the Finance Department is selling the product and collecting the revenue. This is a case of the left hand not knowing what the right hand is doing.

  • May 10, 2014 at 5:13 pm

    I hope we can make the city better and stop with any mud slinging

    • May 11, 2014 at 2:38 am

      I am sure the MITs and their Lifesaver would love everyone to stop the mud slinging and follow along like good little butt kissers.


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