HomeMy WebLinkAboutPR 22352: CONSULTING SERVICES WITH THE CFO TO GO PROGRAM (TEXAS WATER DEVELOPMENT BOARDS, lOk
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www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: January 24, 2022
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Scott Moore, Asst. City Manager& Kandy Daniel, Interim Dir. of Finance
RE: P. R.No. 22352
Introduction:
The intent of this Council Agenda Item is to seek the City Council's approval authorizing the
City Manager to participate in the Texas Water Development Board (TWDB) CFO to Go
Program.
Background:
On January 13, 2022, staff held a conference call with TWDB officials and was invited to
participate in their CFO to Go Program. The program was initiated in 2020 and have assisted
four(4) entities to date.
The program is fully funded by TWDB and was initiated to help lower risks to water supply
corporations and organizations that have loans with the TWDB. The program shares and
improves best practices of the water supply corporations and municipalities. TWDB has a CPA
firm under contract to complete the agreed upon task for organizations that participate in the
program. The program will provide the following benefits:
a. helps measures of internal control;
b. works to demonstrate good governance by the governing body; and
c. helps to update policy and procedures documents.
The representatives will advise the City Council and Administration of the process timeline,
which could take up to 120 days to be completed once selected to participate in the program.
An exhibit is included with this communication to highlight the benefits of participating in the
program and next steps once selected by TWDB officials.
Budget Impact:
There is no budgetary impact to the city for participating in the TWDB CFO to Go Program.
Recommendation:
It is recommended that the City Council approve P.R.No.22352 and authorize the City Manager
to submit a request to participate in the TWDB CFO to Go Program.
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"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P. R.No. 22352
SM: 01/24/22
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY OF PORT ARTHUR TO
PARTICIPATE IN THE TEXAS WATER DEVELOPMENT BOARD'S
(TWDB) CFO TO GO PROGRAM FOR THE PURPOSE OF PROVIDING
CONSULTING SERVICES FOR THE CITY AT NO COST.
WHEREAS,the Texas Water Development Board's (TWDB) CFO to Go program provides
consulting services at no cost to selected financial beneficiaries, including municipalities and water
supply corporations that participates in the program; and
WHEREAS, it is deemed in the best interests of the citizens and the City to participate in the
TWDB's CFO to Go Program to provide consulting and best management practices for financial and
accounting policies and procedures.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR,TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Council hereby authorizes the City to participate in the Texas Water
Development Board's CFO to GO program as delineated in Exhibit "A", with no cost associated.
Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the
City Council.
READ, ADOPTED AND APPROVED on this day of February, A. D., 2022, at a
Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: MAYOR
•
NOES:
Thurman Bartie,
Mayor
ATTEST:
Sherri Bellard,
City Secretary
APPROVED AS TO FORM:
Val Tizen
City Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton
City Manager
APPROVED AS TO THE AVAILABILITY OF FUNDS:
(VC 0C
Kandy Dani 1
Interim Director of Finance
Exhibit "A"
Texas Water
Development Board
www.twdb.texas.gov
CFO to GO Program
The Texas Water Development Board's CFO to GO program provides tangible benefits to
participating organizations, including the following:
• Reduces risk of loss from fraud, waste, and abuse.
No one can eliminate this risk entirely, but reasonable measures can be taken to lower the risk of loss by establishing
a solid system of internal controls and best practices for financial management. Smaller organizations are often more
at risk than larger organizations.
• Helps demonstrate good governance by a board of directors.
Boards of directors have a fiduciary responsibility to their stakeholders. Evaluating internal controls and reviewing
processes, as well as financial performance, are essential parts of good governance.
• Documents and preserves knowledge of key procedures, processes, and accounts.
Over time, all organizations struggle with maintaining processes,for example, due to staff turnover. Generally, the
best-managed organizations create reasonable and appropriate documentation that can be maintained over a long
period of time to provide consistency and support good management.
• Assures customers and other stakeholders that the organization follows sound management practices.
Efficient and effective management can reduce the risk of financial loss. Unexpected losses often create a need for rate
increases to offset costs. Reputations can and should be protected.
• Strengthens internal controls.
Processes are reviewed and updated as needed to produce stronger financial controls and protect organizational
assets. Losses, if incurred, can detrimentally and unexpectedly affect the ability to repay obligations.
• Provides best-in-class expertise.
The CPA firms we use are among the best in Texas and have specialized knowledge, skills, and abilities gained
from their experience across a range of governmental entities.Their expertise can be tapped to benefit CFO to GO
participants and reduce risk of loss.
• Offers participation at no cost to entities.
All out-of-pockets costs are paid by the Texas Water Development Board.
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