Kitsap County Auditor2017 Proposed Budget

September 22, 2016

Auditor – Our Mission

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Provide essential services to the people ofKitsap County in a manner that ensuresquality, accountability and accessibility.

Auditor – Our Core Values

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Customer Service

KitsapCountyAuditor

Operational Effectiveness

Fiscal ResponsibilityEmployee Development

Auditor – A Lean Culture

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

KitsapCountyAuditor

2016 Accomplishments Goals: Quality, Accountability, Accessibility Results

Elections: Installed twonew ballot drop boxes inSouth Kitsap.

Increase voter access to drop boxes to promotetheir use. This will allow more timely ballotprocessing and reduce the number of vehicle tripsto the County Administration Building.

9,091 ballots dropped during April,May and August elections7,000+ ballots expected to bedropped in November

Financial: ImplementedAutomated PDF Splitter forAuditor-Payroll.

Reduce staff time in splitting large reports intoseparate departmental reports.

Provide electronic reports more efficiently.

216 Hours/County-Wide Savings78 Hours/Auditor-Payroll Savings40 Touchpoints Reduced$9,195 Projected Soft Cost Savings

Recording: ElectronicRecording Enhancements

Eliminate 250 obsolete document types.Reduce amount of documents rejected.Improve customer ability to accurately submitdocuments for electronic recording.

53% Reduced Rejected Documents67 Hours/Auditor-Recording Savings$2,800 Projected Soft Cost Savings

Identifying ways we can improve processes has helped to offset thesteady increase in the cost of providing services. Listed here areexamples of our commitment to a lean culture.

$14,355 - Department Net Savings FY 2016

Auditor – Elections and Voter Registration

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

The Elections Division is responsible forall aspects of voter registration andelections management.

Activities include maintaining adatabase of over 179,000 active andinactive voters; voter education andoutreach; ballot design, printing andmailing; and verifying, processing,tabulating and reporting ballotsreturned by voters.

In addition, the Elections Divisionprovides voters, candidates, electedofficials and districts information onstate and federal electionrequirements; archives and reportscurrent and past election results.

Auditor – Elections

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Delivering maximum benefits cost efficiently remains the standard.$

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$1

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7,1

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$1

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4,1

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$1

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$1

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$1

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$1

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$1

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$1

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$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2011 2012 2013 2014 2015 2016 2017

Revenue Expense

Auditor – Elections

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Elections$1,037,926

VoterRegistration

$432,788 Elections$1,037,926

VoterRegistration

$432,788

Revenue – Internal Service Fund$1,470,714

Expenses – Internal Service Fund$1,470,714

Auditor – Elections Finance

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Auditor – Elections Finance

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Elections Costs by Agency

Auditor – Elections Finance

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Registration Costs

Auditor – Financial

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Annual Financial Reports

Maintain accounting system

Fixed Assets

Accounts Payable

Payroll

Monitor state and federal grantfunds

Cash Audits

Auditor – Financial

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Audit and Issue PayrollTransactions

42,763 County

7,741 Special Purpose Districts

97% Payroll Direct Deposits

Audit of Cash Receipting Locations

54 Cash Funds Audited

20 Worksites

2 Recommendations Made

Major Cash Receipting Locations:

Auditor’s Office

District Court

Fair & Parks

Public Works

Sheriff’s Office

Treasurer’s Office

Audit Accounts PayableDisbursements

56,775 County

12,808 Special Purpose Districts

61.3% Vendor Direct Deposits

Auditor – Financial

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Balance Sheet

Statement ofIncome

Statement ofRetained Earningsand Stockholder’sEquity

Notes to theFinancialStatements

Statement of CashFlows

Reconciliation ofCash Provided byOperations to NetOperating Income

Reconciliation of theGovernmental FundsBalance Sheet to theGovernment-wideStatement of NetAssets

Statement ofRevenues,Expenditures andChanges in FundBalance - Cash

Statement ofRevenues,Expenditures andChanges in FundBalances – Budget toActual for MajorFunds

Proprietary FundsStatement of CashFlows

Statement of Activities

Proprietary FundsStatement of NetPosition

Proprietary FundsStatement ofRevenues, Expensesand Changes in NetPosition

Balance Sheet

Statement of NetPosition

Discussion and Analysis

Reconciliation of theStatement ofRevenues,Expenditures andChanges in FundBalance to theStatement of Activities

Reconciliation of CashProvided by Operationsto Net OperatingIncome

Fiduciary Funds BalanceSheet

Fiduciary FundsStatement of Changes inNet Position

Notes to the FinancialStatement

Private Sector Reporting (FASB) Government Reporting (GASB)

Governments are required to report in far greater detail andcomplexity than private companies.

Auditor – Licensing

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Current Vehicle Licensing System

New Department of Licensing Operating System. Current Vehicle Licensing Operating System dates back to the mid-1980s. Licensing and Recording staff will be trained on the new system.

Auditor – Recording

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

• $10 AffordableHousing

• $3.80 State,$6.20 County

• 15 affordablehousing andhomeless serviceorganizations

• $5 Recordingfee

• Since 1985, tofundoperations

• $10 DocumentPreservation

• $7 State, $3 County• Preserving

documents datingback to 1857.

• Provided over $1.2M to localhomelessness and housing programs

• 2,000+ homeless households

$74 Document Fee – Deed of Trust

Auditor – Licensing and Recording

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Ordering new chairs for the first time in 10 years. Risk Management recommended the YS73/KR200

Mesh Back. This chair will accommodate our 39” tall counters

and every day use requirements. Chairs come with a 12 year warranty. Estimated cost for 7 chairs is $3207.87. Current chairs were purchased in 2006 with a 7

year warranty.

Budget request to order new chairsfor the Licensing and Recording staff.

Auditor – General Fund

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Through defined goals and continuous process improvements, expensesremain lower than revenue while improving service to customers.

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$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2012 2013 2014 2015 2016 2017

Expenditures Revenues

Auditor – General Fund

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

Revenues – General Fund$2,267,153

Expenditures – General Fund$2,004,092

Financial$1,108,838

Licensing$442,203

Recording$453,051Financial

$10,000

Licensing$1,604,492

Recording$652,661

Auditor – Document Preservation Fund

7.5 FTE 9.7 FTE 4.7 FTE 6.1 FTE

$2

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$2

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$2

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$2

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$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2012 2013 2014 2015 2016 2017

Expenditures Revenues

Document Preservation Fund revenues dropped sharply with theeconomic downturn in the mid 2000’s. Expenses for preserving KitsapCounty’s historical documents continue to increase.

Kitsap County Auditor2017 Proposed Budget

Thank You!