Finance Committee

Wednesday, 9:00 a.m., Jan. 21, 1998

Commission Hearing Room
4200 Smith School Road
Austin, TX 78744
Item
No.
Subject Public Hearing
Agenda Item No.
  Approval of the Committee Minutes from the previous meeting.  
  Summary of Minutes  
1. Chairman's Charges (Oral Presentation) Committee Only
2. Financial Review
Staff: Jayna Burgdorf
Committee Only
3. Acceptance of Gifts
Staff: Jayna Burgdorf, Lydia Saldaña
Committee Only
4. Other Business  

Summary of Minutes
Texas Parks and Wildlife Commission

Finance Committee

November 5, 1997

BE IT REMEMBERED that heretofore on the 5th day of November 1997, there came on to be heard matters under the regulatory authority of the Parks and Wildlife Commission of Texas, in the commission hearing room of the Texas Parks and Wildlife Headquarters complex, Austin, Travis County, Texas beginning at 1:34 p.m., to wit:

I. FINANCE COMMITTEE:

Dick Heath, Chair
Mickey Burleson
Nolan Ryan
Lee M. Bass
Ernest Angelo, Jr.
John Avila, Jr.
Ray Clymer
Susan Howard-Chrane

II. OPENING STATEMENT:

Commissioner Dick Heath called the meeting to order. The opening statement was read into the record by Executive Director Andrew Sansom.

III. APPROVAL OF MINUTES:

Commissioner Dick Heath asked for a motion to approve the minutes from the August 27, 1997 meeting. The motion was moved by Commissioner Nolan Ryan and seconded by Commissioner Mickey Burleson. The motion passed unanimously.

IV. THE FOLLOWING ITEMS WERE PRESENTED TO THE COMMITTEE:

(The items were not presented in the order of the agenda.)

1. BRIEFING - CHAIRMAN'S CHARGES

Presenter: Mr. Andrew Sansom

Mr. Sansom stated that the investigation during the next year about economic and demographic trends as they relate to our customer's needs and their willingness and ability to pay, and an investigation of the possibilities of public/private partnerships as they relate to managing our facilities are about to begin and in subsequent meetings we will have additional information. Other actions considered at the meeting relate directly to the charges.

a. Charge #5 - Point-of-Sale

Presenter: Ms. Lynne Lange

Ms. Lange discussed the options on how to improve and refine point-of-sale. She explained the differences between the current and proposed license. Commissioner Nolan Ryan stated that he believed the new format is an improvement and that the cost would be minimal if there were any costs at all. Ms. Burgdorf stated that we would like to introduce the new license at various locations sometime in the spring.

2. BRIEFING - FINANCIAL REVIEW

Presenter: Ms. Jayna Burgdorf

a. Preliminary first quarter review:

* User fees are 60% of expected revenue

* Fund 9 Game, Fish and Water Safety update included the following highlights:

License revenue up 1.8 million to date
supercombo sales up almost 33%

combo sales down 13.7%

resident hunting sales up 2%

resident fishing sales up 2%

Boat registration and titling ­ September and October are about 10% of annual revenue. Revenue is up $200,000 over FY97 for the same time frame.

b. Fund 64, State Park Fund update shows revenue up 2% for September and October from previous year during the same time frame.

c. Audit (presented by Mr. Kemp Long)

Mr. Kemp Long stated that as part of the financial review, an annual report on Department financial controls is conducted. This years assessment is to identify the significant risks in revenue, expenditures and financial reporting. Mr. Long then determines the measures in the process by the Department to mitigate those risks.

*Expenditures - The State Auditor's Office, the Comptroller's Office, and internal audit all did audits of the purchasing and contracting and accounts payable areas and found no significant problems.

*Local Bank Accounts - Controls remain somewhat inadequate and we need to ensure the number and type of accounts that we have. The Department is aware of this issue and a process is under way to maintain control over all local bank accounts.

*Financial System Implementation ­ Still in process of implementing a new system. This new system, like any other new system, could increase audit control risks. Implementation is following accepted development standards. Functional requirements are being developed and documented, acceptance testing is being done as well as training and the development of user manuals. All these positive actions increase the probability that this system will function as intended and will produce accurate information. Long-term, the new financial system should allow for streamlining of purchasing and improved bank account controls.

*Automated Systems -- Texas Outdoor Connection (license point-of-sale) has had past issues related to reconciliation, back-up and recovery. All of these issues are being investigated and the system continues to be refined. R-cubed (Park reservation, registration and reporting) system has had issues with capacity, financial reporting, reconciliation, back-up and recovery. There are about 20 parks on the system for registration, out of some 140 parks. Both systems were reviewed by Coopers and Lybrand which resulted in project plans that are being implemented by the Department.

*Park system has significantly increased in the number of sites operated and decreased its reliance on general revenue.

*In Fund 9, Game, Fish and Water Safety, we continue to see a decline in the number of participants in both hunting and fishing, although revenues are increasing.

4. ACTION - FY98 AUDIT PLAN

Presenter: Mr. Kemp Long

Mr. Long explained the internal audit planning process and briefed everyone on the proposed 1998 internal audit plan which includes better control of bank accounts and areas of concern with the new financial system. The number of field audits will increase.

The motion was moved by Commissioner John Avila, Jr. and seconded by Commissioner Ernest Angelo, Jr. The motion passed unanimously.

Ms. Julie Ivie from the State Auditor's Office gave a brief presentation outlining the State Parks management audit currently being conducted at Texas Parks and Wildlife. A report of the audit's findings should be ready for release by the summer of 1998.

3. ACTION - BOND ISSUANCE

Presenter: Ms. Jayna Burgdorf

Ms. Burgdorf explained there is a formal process for actually issuing these revenue bonds. The 75th Legislature, HB 3189, authorized $60 million in revenue bonds, and HB 1 provided the general revenue for debt service. This fiscal year a $12 million issuance was included as part of the capital budget.

The motion was moved by Commissioner Ernest Angelo, Jr. and seconded by Commissioner Mickey Burleson. The motion passed unanimously.

5. APPROVAL OF GIFTS

Presenter: Ms. Jayna Burgdorf

S.B. 145 requires all gifts of money or property with a value of $500 or more be accepted in an open meeting and included in the minutes. This will be an on-going process.

The motion was moved by Commissioner Nolan Ryan and seconded by Commissioner Susan Howard-Chrane. The motion passed unanimously.

V. OTHER BUSINESS

VI. ADJOURNMENT

Commissioner Dick Heath adjourned the committee.


Committee Agenda Item No. 1
Presenter: Jayna Burgdorf

Finance Committee
Briefing
Chairman's Charges
January 1998

(This item will be an oral presentation.)


Committee Agenda Item No. 2
Presenter: Jayna Burgdorf

Finance Committee
Briefing
Financial Review
January 1998

I. DISCUSSION: Staff will be presenting a financial review for FY 98, including an update on Account 9, Game, Fish and Water Safety and Account 64, State Parks. User fees comprise 60% of the agency's revenue, therefore this presentation will focus on review from the sale of hunting and fishing licenses, boat registration and titling, and State Park fees. This will be an oral slide presentation.


Committee Agenda Item No. 3
Presenters: Jayna Burgdorf, Lydia Saldaña

Finance Committee
Action
Acceptance of Gifts
January 1998

I. DISCUSSION: Senate Bill 145 passed by the Seventy-fifth Legislature gives some very specific direction to state agencies regarding the acceptance of gifts. The Act provides that all gifts of money or property with a value of $500 or more must be accepted by the Commission in an open meeting. The Act further states that the name of the donor, a description of the gift, and a statement of the purpose of the gift must be recorded in the minutes. Staff would propose to present a consent agenda at each Commission meeting with an attached listing as shown at Exhibit A of gifts received since the last approval action.

Exhibit B is a copy of Administrative Code Section 51.164 regarding gifts to the Department. Staff published this proposed rule amendment in the Texas Register and received no comments.

II. Recommendation: The staff recommends the Finance Commission adopt the following motion:

"The Finance Committee of the Texas Parks and Wildlife Commission approves the gifts listed in Exhibit A and proposed rule change as shown in Exhibit B for consideration for adoption."

Attachments - 2

1. Exhibit A - Gift List
2. Exhibit B - Rule, 31 TAC § 51.164

(Exhibit A - Available upon request)


Committee Agenda Item No. 3
Exhibit B

Gifts to the Department

§51.164 Gifts to the Department.

(a) Gifts of money or property $500 or more in value must be accepted contingent on Commission approval. The department may not accept or receive gifts or bequests from any source until such gifts or bequests have been approved for acceptance by the executive director or his delegate Acceptance of gifts is hereby delegated as follows.

(1) Gifts or improvement valued at $499.99 [$1,000] or less and intended to aid a specific division or facility of the department may be approved for acceptance by the manager of the facility affected by the gift or other employees designated by the executive director.

(2) Gifts or improvements valued at greater than $499.99 [$1,000] and less than or equal to $5,000 may be contingently accepted [approved for acceptance] by the division director responsible for the facility affected by the gift or use of the gift.

(3) Gifts or improvement valued at greater than $5,000 and all gifts or real property or interests in real property must be contingently accepted [approved for acceptance] by the executive director.

(b) The department may not accept a proposed improvement unless it is consistent with the park or facility master plan or public use program.

(c) Neither a donor nor a closely related nonprofit organization may accept real property on behalf of the department unless previously approved by the executive director.


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