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-f WHAT D0ES THE DEPARTI!ENT OF FH;A.t'\CE DO? Funds for EO A in 1968 amounted to $14,8~7,150 in Federaf plus approx i matately $200,000 available in Local Cash. Of the Federal Cash, $21,763 came fro m the Natio nal Coun~il on Arts and Huma nities, $5,315,411 from the Departme nt of Labor ard $9,559,976 from _~EO, EOA will have do ne the detailed payroliing, purchasing and ac~ounting for si~ ty-eight projects and wilL hav e fund~d forty-fopr De legate Age ncy Projects _ during 1968 . .EOA Finance do e s th e payrolli~g, purchase of supplies, detail accounting and 0t~ r [inanci ~~ op~ ri~ :0ns inv olving $7,266,925. Fina nc e 0 funded through ~e l eg ~te Age~ c {e ~ EDA ~~ogr ams totalling $7,630,225. Finance payrolls th e ~cr ~G1ne ~ 5- Head~uart2rs--four t e en Neighb or h ood Servic e Cent ers -- 5~\ e ~ End Ch ild Cent er . - J Care Ce n t er s --th~ Pare nt-Child Center and West '.!.' h is _;_uvo l v es 513 eEtp l oyees . p2, id fro m CAP fu nds -- 14 st a f f and 267 e n r oll e 2s f r om XYC f un ds -- 99 st a ff a nd 73 enroll ee s f ro2 AC EP fu nds . During t h e s 1_;:;i;-ner mon t h s, Fi nan c e payr oll ed aro und 810 er:-.pL:;y ees in th e Surr:,e r Rec rea ti on P r ogram a nd 98 emFloyee s. i n Sum:;1er He 2d st ar t. Th e re are oc c a s i on s whe n our payro ll st a f f a re c alle d upon t:o do th e i o.po s si b l e , for e xa ~? l e : -Duri nt J u l ; a nd Aug ust , we wer e i ns t ru c t Ld t o payro ll a n ad di tio nal 500 ~;ye enro ll e e s . \•Te di d it. Op er at i on , y ou t hi nk o;:i l y of f -__'. '.pa y. <:hec½.' '. produ c t ". loc a tions . c ompu t e r. 1:'nec1 you d-\i:,~~ of a Pay roll T1e p2y chE ck i s o:.-i l y t h e " e::d - Thi n~, -2.g a i n -- ti me s hee ts 2 re f ed i nt o Pay,:o ll fr o:.. a.ro u:.-id 2 00 Ea ch na~e , t i o 2 - ear~ed , l eave t e ~e n , e tc . mu st ~e fed i n to a Defuction s f or Fe~2r 2l e~d St a t e I;:ic o~e Ta~ - - FI CA -- ~e tir ~- me nt -- Gr oup I ns ura~ ~e - - Chari ty , etc. must b e deduc t ed . c he c',. : s t ub a:.-id v i sual i ze 211 t he c 2. lc u l ated de t ai l.

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-~ Look at your pa; - Mu lti p l y yo . 1 r " p2y - st u;:i " 1 No~.; -- p.';?.y r ol l ,:or~ i 5~:. ' ::- �-2- - 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 Persor..;.t2l Ac-Liem Salary I!lcrease , Name Change, Change of Address, Termination, etc, causes a change rea ction in payrolling. Also :vhen "Tvi.l t 9.ke a day's leave or work an hour overtime or on Compensatory Time, ~hist .uses individual acti ons in payroll. Our payroll girls do a tremendous ~t~, wi th almost no complaint. Most important, p&y checks are always ready Payrolling is one of on payday. Errors are nil. many Finance operations. Finance issues around 60,000 checks a year. of: Each check is the result Payroll; Travel; Rent; Purchase; Telephone Bill; etc. Before a check is issued, there must be a voucher with supporting documentation which must . be thoroughly audi t e d so as to be cert a in t hat it is calcul ated correct l y , coded against a Budget Line It em , and is prope r in all resp e cts. ·-=-- -· -- • • - · ·, Financ e s • :. . ~- ..,_,. r• ,_._.._..._,_~'!:!'- t ~ I .•• "Jtr.. ':'"C.._ • .u,.-.,.~- • Purcha sing Depar t men t wi ll have this year iss~ed 1,600 Purchas e Order s -- 440 Servic e Orders and -- 400 orde rs to GSA, which wi ll involve around 17,000 line items . Purchasing ge ts the requisition; estab lishes th e method of procurement ; gets bids from suppliers ~vhere appropr i a t e; and then issue s the procuring document . Later Purchasing starts hound i ng you for th e r eceiving report and the vendor for the i nvoice. When �-3received, Purchasing verifies these documents and then passes on to Fiscal for payment. Frequently in the process, Purchasing 'haggles" with the Supplier to expedite what you want and then later the Supplier '"haggles 11 Purchasing for payment. At that point, Purchasing starts "haggling" you, The receiver, for your Receiv~~g Report. Along with this, Purchasing dis- tributes internal mail; sends things through postal mail or arranges for your shipments. Ir does a big business of x erox , 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 renov ations done - - f~e~s , t.·'. 1 d:i.ng insurance liability -- insures your officia::. ve:1icle after ~iavi.ng lea3ed it -- gets your typewriter repaired --::: --=--------- arranges for y0uc ~el F~n ~~e and utilities an ~ arranges many, many other things with which you h av <:: ~a c-·_lity to do your job of operations such as pest control janitorial service-·- anj that city bus to take VIP's on an inspection tour. Yes, Purchasing has a t e rrific job of servicing you and we in Finance are proud of the job it does. Finance do es th e a ccoun ting for EOA . Our ftccountin g Division gets the money in "hunk s" and puts it in the bank . · Accounting then proce e ds to account for the ' 1ou t -g o" p enny by penny , Accounts must ex c ercise controls. When a requisition is r e c e i v ed, Accounts dete rmin e s that th ere is mone y to pay for the purchase a nd wh en p urch ased it must h av e re co1 d of th e obli gation. Each rec e ipt, ob l iga t ion and expend it ure must be rec orde d. During 1968 , we had 2,1 60 Distr i bution Ledger Ac counts with co r r e s pondi ng a ccoun ts i ~ s ~x Genera l Le dgers. Can you imagine th e vol ume of de t a il in ent e ri ng i nto the Di s tri bu t ion Ledger Ac counts , th e budge t s , obl iga tion s, exp end tture s and resulting unob li gated b a l ances for each and every transacti on and r equi ring abso l u t e a ccuracy in the process. Kind or Local Support. Al so entered in detai l is every · EOA us es a mini mum of a 11 11 c rumb 11 of In- Double-Entry" Accounting System, ,vhich means that every entry in the Distribution Ledger is also �I -4- entered in General Ledger and the t wo ledgers must balance. So lets in- vision some 12,000 entries each month in the "Distribution Ledger 11 that must match up in dollar value to corresponding entri e s in the ;'General Ledger". Get the picture for accuracy perfection? of checks and balances. Yes, we have all sorts For ex ample, it is essential that our bank accounts have accumulative deposits and withdrawals.which agree with our records of expenditures. At the end of each month, our Accountants must come-up with • / / / /' I Financial and Budget Reports to show management-~ and you -- how we stand rnoneywise. There are 107 sheets in the Budget Report which involve _about 3,638 line i terns. OEO and the Department of Labor, our auditors and a fe-.:.1 I others a. ..:e interested . too 1and Finance must produce reports which agree wit i, l their figures. You get copies of some o~ these monthly reports. _ Try ann ! visualize the many recbrde ~ transactions. which are ei:itailed in the cornpil a tio ;:. of these reports. I You really can't -- but try. To compound this a little, we should let you know that Finance must us e a different Accounting System i I to satisfy CAP, NYC and ACEP and th a t OEO, NYC and ACEP periodicall y change I their systems, and th~n -- we must ch ange ours. Our Internal Audit j econciles all accounts and for one thing they . hav e to look at thos e 60,000 ch e ck s which we r e issued and be sure none were "hiked", that they wer e endtrse d and s ev er a l other things. your check, Fin anc e h as to When you los e ut :.? "s t op orde r" at the bank befor e we can issue you a rep l acemen t ch e k &nd t hen -- to make c e rt a in s omeone doe s n 't i fin d and coll ect on t he ch e ck yo u lo s t. Aud it mu st rev i ew t he "In-Kind " yo u repo r t and t hen be sure i t ts cred i ted to your pro j e c t. has b een known to prod you i I n the pr oc ess , Audi t lit t l e to get your I n-Kind " in " . Aud it a l s o takes a lo ok at Delegate Agtncies ' ac c ounts j ust t o make s ure they are liv i ng r i ght. Aud i t rides herd on Pe t ty Cash , Emergency Assi st ance and other escrow funds that are made av ailable to units outside Finance. s uch accounts. We have about 43 of Each must be carefu l ly analyzed and reimbursed each month by I �I -5- I Internal Audit. This year Audit is supervising the Employe es Credit Union, reconciles our bank accounts to t .h e General Ledger, monitors the Retireme nt Fund and handles Clearances for indebtedne ss for final pay settlement to departing employees. The Fiscal Officer do e s the pay ing of all the bills. vouchers are carefully ex amined and checks drawn for payment. Here, all the Most payments are run through Data Proc'essing but a large number of checks are handdrawn. Most checks are ~un thro J [oh the check signing machine, Fiscal maintains a / careful vigilance on blan fraud and embezzl ement. ch e ck s and the check si gning machine to guarante e a gai n st I Did you know that in the history of EOA there h c".S been I! 0nly one instan ce of fraud (a long time a go ) which involved around $400.8 0 a nd that amount was imme diately recover e d_. Even an att empt to f raud would r ~~u i ~s ! ' the conspir a cy of four key p eo ple and in Finance, th.at is 100% unlikely. Evc1. I if it should h appen, such fraud would be i mme diat e l y discove red und e r our I system of che ck s and b a lan c e s. Fisc a l will vouch er and p ay aroun d 7,000 bi lls this y e ar for such it ems a ~ suppli e s, serv ic e s, Tr av e l Vouche rs, rent, tel e phone, utiliti e s, e quipmen ~, e tc. for Progr amming . .I Our Budge t cap ab ility o f more assu.ranct are a s prov i ded by budge ts F iscal a lso assis t s in pre p a r a t i on of budgets Control is b e i ng refine d ,and we will soon have to Management t hat obl i ga ti ons and expend itur es 1 s appr oved and mod ifi ed by Manageme nt. als o c ontr ol s the Key Pun ch l operati ons for Da t a Proc e s sing . Fisc a l Our Fi s c a l Op e r ation assur es th e Director of Fi n anc e and EOA Manag emen t t hat eve r y nicke l \I o f di s burs ement i n it s day t o day op eration is prop e r i n a ll re s p e cts and we c an a ll s l e e p we ll every ni1\ht in t his kn owl edg e. Fi nanc e is n ow h andl· ng a l l Insurance and Emp loyee Ret ir emen t . inh eri t ed this in Septemb er , 1968. We Si nce t ha t time EOA emp l oy ee s h ave en j oyed a much i ncreased Group I nsur anc e and Ho s pi t a l Benefit Pl an. Re c ords h ave been b rought up-to-date find you are a ssured o f c overage . . New bookl ets �-6o_f your coverage are now being made available to you. are being processed on the date received. All claims received The Retirement Fund has been audited for the ~irst time -- Retirement r e cords are current and up-to-date. Many old accounts have been settled. The evaluations for each six -months period have been establishe d for the periods since 1965 thro4gh 6/30/68 and we expect to hav e made t h e " 12/31/68 evaluation prior to 1/31/69. Each employee has an up-to-date card record which shows the employee contribution, EOA contribution, 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 tr 2, sno parsons. The for e 6 0i n1s gives yu u a What •:loe8 i'.h8 11 b&ll-park 11 view of what Finance does. ))irector of Finance do 11 Well, he attends a lot of meetings -- has~ l ot L visitors -- writes a lot of reports (such as this one) -- and must k e ep cl os P. l y knowl edgeabl e of all those things going on ·in Finance and in EOA a 8 t h ey r e l a te to Financ e . His main concern is effort to see that peopl e in Financ e ge t de ser v ing reco gnition for the terrific job they do for EOA and for th e peopl e who work in EOA. This report, which is lacking in much de tail in the way of a compl e t e r eflection of all those things don e by Financ e , j g wr itt en in ap pr e c ia tion and commendation of th e Department of Finance St a f f . -0Novemb er 26 , 19 68 �