1. City of Franklin, New Hampshire Financial Consolidation Recommendation

2. Background  In 2012, Members of the Council and of the School Board asked both Business Administrator O’Neill and Finance Director Milner to look into the feasibility of financial services consolidation  In 2015, SAU Withdrawal Committee asked what savings might be from financial services consolidation

3. Expected Benefits  Effective use of talent  Efficiency  Accountability  Transparency  Support  Cohesion  Consistency

4. Expected Results  Timely Reporting  Tax rate  Borrowing  Grants  Cross trained staff  Same accounting rules  Room for professional growth

5. Expected Results, cont  One point of accountability City Wide  Growth in Service (utilizing the talent we currently have)  Consistent, reliable services City Wide  Services not currently provided (but should be)  Both Municipal & School District

6. Process to date  Brainstorm (Mike O’Neill & Judie Milner)  Reassess (Amanda Bergquist & Judie Milner)  Current staff duties  Evaluated overlap/redundancies  Evaluated internal controls  Combined into proposed new positions  Budget

7. Current Configuration  Municipal Finance Department Finance Director Accountant Finance Assistant

8. Current Configuration  SAU SuperintendentGrants Mgr Business Administrator Payroll Accounts Payable Secretary IT DirectorSecretary

9. Proposed City Wide Financial Services Org Chart Finance Director Grant Administrator Accounting Manager Accountant Accounts Payable Coordinator HR Generalist Payroll Coordinator

10. Proposed SAU Operation Chart (Assumes Withdrawal from SAU18) SuperintendentIT AdministratorSecretary

11. Proposed Hill Solution (assumes Franklin Withdrawal from SAU18) Superintendent (Combined with Principal) Bookkeeper (secretary from SAU) Contracted BA (MRI-15 days per year)

12. Proposed SAU Operation Chart (assumes Franklin does not withdraw from SAU18) SuperintendentIT Administrator Bookkeeper/ Secretary

13. General Duties  Finance Director – directly supervised by City Manager and Superintendent  Supervises department, EE performance reviews  Accounting System Admin  Budget  Internal controls, policies/procedures  DOE/DRA reporting, tax rate setting  Payroll & Financial Statement Audit  Oversee food service, school bldg & grounds, transportation

14. General Duties  Accounting Manager-directly supervised by Finance Director  Day to day supervision of payroll, accounts payable, accounts receivable functions  Financial statement preparation  Cash Recon  Trustee of Trust Funds coordinator  GL warrants  Audit accounts payable  Reconcile City Clerk/Tax Collector

15. General Duties  Grants Administrator-directly supervised by the Finance Director  Seek/apply for grants City Wide  Single Audit Liaison  Administer all grants  School districts  SAU  Municipal  Contingent grant line

16. General Duties  HR Administrator-directly supervised by Accounting Manager & Finance Director  All EE benefits  FMLA & Leaves  PR issues  Payroll to general ledger reconciliation  Payroll liability reconciliation  W-2, 941, NHRS reconciliations  Payroll exceptions, union contract implementation

17. General Duties  Payroll Coordinator-directly supervised by Accounting Manager & Finance Director  Payroll input and processing  Payroll vendor bill processing & recon  Benefits support  New Hire packets  Risk Management central coordinator  NHRS reporting  Unemployment reporting

18. General Duties  Accountant-directly supervised by Accounting Manager & Finance Director  General ledger account reconciliations  Inter fund transfers  Budget review  Capital Assets  Centralized contract management  RFP/Bid manager  Approve Purchase Orders  Cash Receipts

19. General Duties  Accounts Payable Coordinator-directly supervised by Accounting Manager & Finance Director  Accounts payable input and processing  Purchase order processing and recon  Inventory  Account Receivable Billing  Central City Wide credit card coordinator  Assist in grant reporting

20. Employee Logistics  Finance Director supervised by City Manager and Superintendent  Staff directly supervised by Finance Director – All City employees pay & benefits  Central location – City Hall – employees work closely together and cross trained  Utilize one accounting system – efficiency allows for additional services  No proposed reduction in number of positions; most employees will see an increase in pay

21. Project Schedule o Minimum of 6 month lead time to live date needed for successful implementation o Will incur some one time costs, specifically software purchase and/or conversion o See attached complete project schedule o Continued positive support from all appreciated

22. Preliminary Budget Savings ItemSAU WithdrawalNo SAU Withdraw Wages & Benefits14,000 Software Support 5,000 Audit Services22,50015,000 Treasurer1,905 Hill Bookkeeper54,0000 Legal Services14,0000 Interest on Note1,500 Preliminary Totals112,90537,405

23. Budget Savings, continued  Smaller savings will likely occur in  Rental  Repair/maintenance  Postage  Books  Dues  Etc  Need more information to split SAU budget for these items

24. Questions?