Commission Agenda Item No. 2
Presenter:  Mike Jensen

Action
FY 2013 Operating and Capital Budget and
Conservation and Capital Accounts
TPWD Budget and Investment Policy Resolutions
August 29, 2012

I.       Executive Summary:  The Commission is considering the approval of the FY 2013 operating and capital budget including a Capital Conservation Account project list, and the Commission’s Budget and Investment Policy Resolutions.

II.      Discussion:  Request for Approval of the Proposed FY 2013 Operating and Capital Budget, Capital Conservation Account project list, and the Budget and Investment Policy Resolutions:

The proposed combined budget for fiscal year 2013 is based on legislative appropriations and other authority provided in special provisions and the supplemental appropriations bill.

In addition, Section 11.043 of the Parks and Wildlife Code provides that funds in the Texas Parks and Wildlife Conservation and Capital Account (Account 5004) may only be spent on projects that have been individually approved by the Commission.

Through the budget policy, the Commission authorizes the Executive Director to approve and execute, or have executed on his behalf, necessary expenditures, budget adjustments and transfers. Budget adjustments, excluding federal grants and bonds, which exceed $250,000 require prior approval of the Chair or Vice Chair or a Commissioner designee of the Chair or Vice Chair. The Investment Policy must be reviewed annually by the Commission as required by statute. All Texas Parks and Wildlife Department funds, with a few exceptions, are required to be deposited in the State Treasury. TPWD does not presently have any funds on deposit outside the treasury subject to the Texas Public Funds Investment Act (PFIA) but the policy outlines a process for complying with the PFIA in the event TPWD funds become subject to the PFIA.

III.     Recommendation:  Staff recommends the Texas Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to expend funds to operate the Texas Parks and Wildlife Department in accordance with the Proposed FY 2013 Operating and Capital Budget (Exhibit A, B) and approves expenditure of FY 2013 Texas Parks and Wildlife Conservation and Capital Account funds, including additional funds realized in FY 2013, for the individual projects listed (Exhibit C). The Commission also approves the Budget Policy (Exhibit D), and the Investment Policy (Exhibit E)."

Attachments – 5

  1. Exhibit A – Agency Budget by Strategy
  2. Exhibit B — FY 2013 Operating and Capital Budget by Division/Object of Expense
  3. Exhibit C — Conservation and Capital Accounts
  4. Exhibit D — Budget Policy
  5. Exhibit E – Investment Policy

Commission Agenda Item No. 2
Exhibit A

2013 Budget by Strategy

Strategy

FY2013

A.1.1. Wildlife Conservation

19,004,336

A.1.2. Technical Guidance

2,161,091

A.1.3. Hunting and Wildlife Recreation

2,749,284

A.2.1. Inland Fisheries Management

13,029,396

A.2.2. Inland Hatcheries Operations

4,550,221

A.2.3. Coastal Fisheries Management

11,261,424

A.2.4. Coastal Hatcheries Operations

3,253,513

B.1.1. State Park Operations

63,688,744

B.1.2. Parks Minor Repair Program

3,899,383

B.1.3. Parks Support

3,820,680

B.2.1. Local Park Grants

446,980

B.2.2. Boating Access and Other Grants

5,753,264

C.1.1. Enforcement Programs

43,350,918

C.1.2. Warden Training Academy

1,660,524

C.1.3. Law Enforcement Support

2,261,648

C.2.1. Hunter and Boater Education

1,779,933

C.2.2. TP&W Magazine

2,072,631

C.2.3. Communication Products and Services

3,082,468

C.2.4. Outreach and Education

803,377

C.3.1. License Issuance

7,262,109

C.3.2. Boat Registration and Titling

1,346,474

D.1.1. Improvements and Major Repairs

85,049,865

D.1.2. Land Acquisition

373,098

D.1.3. Infrastructure Administration

4,454,180

D.1.4. Debt Service

7,208,829

E.1.1. Central Administration

9,447,328

E.1.2. Information Resources

11,439,740

E.1.3. Other Support Services

2,904,292

Other Activity Payroll Related

39,417,737

Total

357,533,467

Method of Finance

FY2013

General Revenue

83,014,267

GR Ded-Game, Fish, and Water Safety

108,215,644

GR Ded-State Parks

40,263,489

GR Ded-Other

2,313,762

Federal Funds

45,977,339

Other Funds

8,914,276

GO Bonds

68,834,689

Total

357,533,467


Commission Agenda Item No. 2
Exhibit B

2013 Operating and Capital Budget by Division/Object of Expense
Division Salaries & Other Operating Grants Debt Service Benefits Capital Budget Total FTE
Administrative Resources 5,642,391 1,022,173     1,469,753   8,134,317 117.00
Coastal Fisheries 9,389,789 3,692,768 607,587   2,576,971   16,267,115 195.00
Communications 3,893,042 3,196,029 150,000   970,850   8,209,921 72.00
Departmentwide   18,924,734   7,208,829   3,146,366 29,279,929 -
Executive Administration 2,156,314 378,964     503,761   3,039,039 30.00
Human Resources 1,313,373 236,981     328,923   1,879,277 25.00
Information Technology 5,298,356 585,719     1,268,760   7,152,835 83.50
Infrastructure 4,102,509 1,044,720     1,062,912   6,210,141 118.00
Inland Fisheries 10,769,096 5,042,772 631,890   2,737,476   19,181,234 210.00
Law Enforcement 37,025,289 9,128,410     10,125,566   56,279,265 657.50
Legal 799,325 61,168     170,496   1,030,989 10.00
Local Parks 668,717 311,605 2,922,308   204,105   4,106,735 11.00
State Parks 43,273,603 23,835,739     13,949,928 20,428 81,079,698 1,281.30
Wildlife 14,835,638 7,213,017 441,412   4,048,236   26,538,303 280.00
Capital Construction           73,248,371 73,248,371 -
Capital Information Technology   4,465,596       196,742 4,662,338 -
Capital Land Acquisition             0 -
GLO Transfer     11,233,960       11,233,960 -
Total 139,167,442 79,140,395 15,987,157 7,208,829 39,417,737 76,611,907 357,533,467 3,090.30

Commission Agenda Item No. 2
Exhibit C

AY2013 Texas Parks and Wildlife Conservation and Capital Account Project Listing
Division Strategy Project Project Description Fund
Communications C.2.3 License Plate Marketing for Conservation Plates Funding to pay for various marketing efforts for all conservation plates. Includes print and online advertising and point of sale materials. 5043-Conservation Plate-Horned Toad
Communications C.2.3 License Plate Marketing for Conservation Plates Funding to pay for various marketing efforts for all conservation plates. Includes print and online advertising and point of sale materials. 5044-Conservation Plate-Bluebonnets
Communications C.2.3 License Plate Marketing for Conservation Plates Funding to pay for various marketing efforts for all conservation plates. Includes print and online advertising and point of sale materials. 5045-Conservation Plate-White Tailed Deer
Communications C.2.3 License Plate Marketing for Conservation Plates Funding to pay for various marketing efforts for all conservation plates. Includes print and online advertising and point of sale materials. 5047-Conservation Plate - Largemouth Bass
Inland Fisheries A.2.1. Freshwater Resource Management Develop fish stocking plans, habitat improvement and research to improve the statewide fisheries program 5047-Conservation Plate - Largemouth Bass
State Parks B.1.1. Operational Support To supplement operational needs in State Parks, such as utilities, supplies, travel, training, etc. 5044-Conservation Plate-Bluebonnets
Wildlife A.1.1. Implementation of the Texas Wildlife Action Plan Projects will involve the following areas: (1) nongame inventory and monitoring on public and private lands; (2) rare plant surveys on public and private lands; (3) invasive species monitoring and management; (4) habitat restoration for priority species on public and private lands; (5) climate change adaption strategies; (6) data management and analysis; (7) habitat modeling. 5043-Conservation Plate-Horned Toad
Wildlife A.1.1. Hardware to Implement Science Review Recommendations Purchase miscellaneous research and survey hardware to supplement current survey efforts, test advances in technology for potential hardware/software purchases as current hardware becomes obsolete. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. TWIMS Development Development of big game applications within Texas Wildlife Information Management Services. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. Software Development Modifications to CyberTracker data capture software. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. White-tailed Deer Research Contribute to research projects involving white-tailed deer. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. Bighorn Sheep Research Contribute to research associated with bighorn sheep stocking. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. Mule Deer Research Contribute to research projects involving mule deer. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. Pronghorn Research Contribute to research projects involving pronghorn. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. MLDP Permits Purchase Paper and fund mailing of MLD Permits. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. Deer and Habitat Management Publications Funding to pay for preparing and printing Big Game Publications. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. Big Game Harvest Survey Strengthen results of Big Game Harvest Survey by increasing sample size and changing the scale at which harvest is monitored. 5045-Conservation Plate-White Tailed Deer
Wildlife A.1.1. Big Game Advisory Committees and Working Groups Preparation and conduct of advisory committee and working group meetings 5045-Conservation Plate-White Tailed Deer

Commission Agenda Item No. 2
Exhibit D

BUDGET POLICY (CP-009)

It is the policy of the Texas Parks and Wildlife Commission to authorize the Executive Director to approve and execute or have executed on his behalf, expenditures, budget adjustments and transfers as follows:

  1. Adjust the budget to bring unexpended balances forward from prior year approved budgets.
  2. Adjust the budget for transfers between budgetary units, major expense categories, or line items.
  3. Adjust the budget to increase funds to allow payment of appraisal fees, witness fees, and investigation expenses on land acquisition and construction projects.
  4. Approve and/or execute contracts and interagency agreements necessary in the daily operation of the Department.  Revenues derived from interagency agreements may be budgeted and expended.
  5. Adjust the budget for appropriated revenues, such as sale of equipment, donations, concessions, escrow, refunds, insurance proceeds, and publications revenue, so long as the expenditures are in agreement with the stated program goals and there will be sufficient cash during the fiscal year.
  6. Approve and/or execute construction, repair, or renovation budgets, contracts, interagency agreements, and change orders if necessary to complete a project as approved by the Commission.  Adjust the budget from one Department facility major repair or development project to another or from available revenue to cover increased project costs or changes in scope.
  7. Allocate super combo license revenue to the related stamp funds according to the documented methodology and authorize the related transfers of revenue to appropriate accounts.
  8. Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of Texas Parks and Wildlife.
  9. Adjust the budget to place a Department facility into reasonable operation when its condition poses a health or safety hazard or seriously hampers its ability to function.
  10. Authorize classification changes anytime during a budgetary year, providing that such changes have been thoroughly justified and funds are available.
  11. Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized FTE limit.
  12. Adjust the budget to make capital expenditures for construction projects funded in part with proceeds of bonds issued by the Texas Public Finance Authority.
  13. Approve and/or execute the reimbursement of construction project costs with the proceeds of tax-exempt bonds issued by the Texas Public Finance Authority, pursuant to federal Internal Revenue Code guidelines.

The Chair or Vice Chair of the Commission, or a Commissioner designee of the Chair or Vice Chair, is authorized to increase, decrease or otherwise adjust the budget during the fiscal year based on revenue and expenditure information and document those actions as noted below.  Any budget adjustments that exceed a threshold of $250,000, excluding federal and bond funds, require the prior approval of the Chair, Vice Chair, or Commissioner designee through such means as a conference call or memo.  Donations or gifts exceeding $500 shall be accepted by the Chair, Vice Chair, or Commissioner designee on a monthly basis, with Commission acknowledgement of the acceptance of the donations at each scheduled Commission meeting.

Subject to notification of the TPW Commission of any changes to previously discussed purposes or uses of funds, the Department is authorized to use dedicated accounts and sub-accounts for purposes consistent with those outlined in relevant statutory provisions or administrative rules as set forth in the Texas Administrative Code.

This policy shall rescind any existing policy on budget adjustments and transfers.

APPROVED this the 30th day of August 2012.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 30th day of August 2012.

______________________________
T. Dan Friedkin, Chairman
______________________________
Margaret Martin, Member
______________________________
Ralph H. Duggins, Vice-Chairman
______________________________
S. Reed Morian, Member
______________________________
Antonio Falcon, M.D., Member
______________________________
Dick Scott, Member
______________________________
Karen J. Hixon, Member
______________________________
Bill Jones, Member
______________________________
Dan Allen Hughes, Jr., Member
 

Commission Agenda Item No. 2
Exhibit E

INVESTMENT POLICY (CP-016)

All funds paid to Texas Parks and Wildlife Department (TPWD) pursuant to the Parks and Wildlife Code or allocated to TPWD per §151.801 of the Texas Tax Code are required by §11.042 of the Parks and Wildlife Code to be deposited in the treasury with two exceptions, the Operation Game Thief Fund and the Texas Park Development Fund.  The Operation Game Thief Fund is held outside the treasury and, as authorized by Parks and Wildlife Code §12.201, is invested according to rules adopted by the Operation Game Thief Committee.  Therefore, the investment of the Operation Game Thief Fund is not governed by this Investment Policy. Although not required, the Texas Park Development Fund is and will continue to be deposited in the treasury and invested by the Comptroller.

Parks and Wildlife Code §11.065 authorizes the commission to adopt rules for investment of the Lifetime License Endowment Account.  The Lifetime License Endowment Account is and will continue to be deposited in the treasury and invested by the Comptroller.

In addition, TPWD has established an account at The Texas Treasury Safekeeping Trust Company, an organization created by the Texas Legislature to invest and safeguard funds for the state and various subdivisions whose sole shareholder and director is the Texas Comptroller of Public Accounts.  TPWD’s account at The Texas Treasury Safekeeping Trust Company is for the purpose of accepting donations of marketable securities which shall be held only until accepted by the Commission.  Donations of marketable securities shall be sold promptly upon acceptance by the Commission and the proceeds shall be deposited into the treasury.

  1. Objectives of TPWD
    1. Suitability of the investment to TPWD requirements
    2. Preservation and safety of principal
    3. Liquidity
    4. Marketability
    5. Diversification of the portfolio
    6. Yield
  2. Policy Guidelines
    1. TPWD funds shall be held in the state treasury and invested by the Comptroller under Texas Government Code §404.024.
    2. Mitigation funds distributed to TPWD shall be deposited in the state treasury and accounted for separately.
    3. Bank accounts authorized by the General Appropriations Act of the 82st Legislature, Article VI, Rider 3, and Texas Government Code §403.241-403.252 and §660.025 (petty cash accounts and imprest accounts for the purchase of evidence) should be either interest-bearing accounts or accounts with no fees.  Any interest earned in excess of bank fees shall be deposited in the General Revenue Fund.  The establishment of any petty cash or imprest bank accounts must be approved by the Department’s Chief Financial Officer (Signature and Approval Policy OP-03-03).  Continuance of bank accounts is dependent upon timely and accurate recordkeeping and reporting.
  3. Texas Public Funds Investment Act:  Investment Officer Designation and Reporting
    1. Pursuant to Texas Government Code §2256.004, the Texas Public Funds Investment Act (PFIA) does not apply to TPWD funds which are deposited into the state treasury and which are managed by the Texas Comptroller of Public Accounts in accordance with Texas Government Code §404.024.  Therefore, TPWD does not presently have any funds on deposit outside the treasury subject to the PFIA.
    2. In the event that TPWD funds are deposited outside of the state treasury and become subject to the PFIA, the TPWD Executive Director, or designee, shall identify and designate an Investment Officer.
      1. The designated TPWD Investment Officer, or Officers, shall perform the functions and responsibilities required by the PFIA.
      2. The Investment Officer(s) shall attend investment training at least once each state fiscal biennium from a program recommended by the Texas Higher Education Coordinating Board.
      3. The Investment Officers are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
      4. The Investment Officers are required to provide a written copy of the investment policy to every business organization engaging in investment activity with TPWD and must obtain written acknowledgement that the policy was received and reviewed and appropriate procedures and controls are in place to preclude unauthorized transactions.
      5. The Investment Officers will ensure that all TPWD funds outside the state treasury held in bank accounts are insured by FDIC up to the FDIC deposit insurance limit, currently $250,000.  If at any time deposits exceed the FDIC deposit insurance limit in any financial institution, the custodian of the affected account(s) is required to obtain collateralization that meets state requirements to cover the amount exceeding the deposit insurance limit.
      6. Reports of investment transactions for all funds managed under the PFIA shall be prepared within 45 days of the end of each quarter and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer as required by § 2256.023.  These quarterly reports shall comply with state requirements for content.
      7. To the extent that the Texas Legislature modifies any provision of the PFIA that is applicable to TPWD’s funds, a report summarizing those legislative changes to the PFIA shall be prepared and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer within six months of the end of a regular legislative session.
  4. Review — The Texas Parks and Wildlife Commission shall review this policy at least annually.

APPROVED this the 30th day of August 2012.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 30th day of August 2012.

______________________________
T. Dan Friedkin, Chairman
______________________________
Margaret Martin, Member
______________________________
Ralph H. Duggins, Vice-Chairman
______________________________
S. Reed Morian, Member
______________________________
Antonio Falcon, M.D., Member
______________________________
Dick Scott, Member
______________________________
Karen J. Hixon, Member
______________________________
Bill Jones, Member
______________________________
Dan Allen Hughes, Jr., Member
 

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