Documents/VPD/13: Finance

13: Finance

Deliver financial processes to support the organization

Other Information:

With virtually all funding derived from the City of Vancouver, financial management and the control of the VPD lie within a budget process managed in co-operation with the Police Board and the City. The VPD budget represents the largest single item within a complex City budget, and is a major standalone issue for the City, the Board and VPD management. Cost effectiveness and organizational efficiencies are critical demands for the VPD, as we constantly find ways to maximize return on taxpayers’ investment in policing. Further, the escalating costs associated to increased investigative demands, inadequate facilities, regional policing inefficiencies and a variety of broad social issues within the City, all require monitoring. This monitoring process will inform the VPD, help to identify their cause, and establish a framework to find solutions. Over the past three years, there has been a shift in the minds of senior management towards adopting a higher sense of responsibility and accountability for the VPD’s financial affairs. To this end, there has been a concerted effort to increase the level of financial services within the Department. Financial Services Section staff have been reorganized to allow for improved management reporting and working within the existing budget processes. Monthly variance and projection reports allow management to monitor the financial situation of the Department, and to manage the resources available more effectively. This has contributed budget surplus in 2005 and 2006, and similar projections for 2007. With the improved quality of management reporting, input into the budget cycle is more constructive and meaningful, leading to a higher degree of accuracy in the development of the budget. Finance In 2008, a management reporting team will develop a package of financial reports tailored to each budget manager’s needs. This will provide the manager with the information needed to maximize his or her ability to remain within budget for the year, and to highlight variances that require explanation as early in the year as possible. A project team, drawing on staff from Information Technology, Finance, Planning & Research and the City’s SAP Business Support Team, is reviewing the reporting ability of SAP to assist VPD in managing its overtime. Managing overtime is challenging within the VPD and gaining an in-depth understanding of the issues and drivers of overtime is fundamental to being able to manage it more effectively. The challenge is to develop a comprehensive package of reports that will allow managers to monitor and control the overtime incurred in their areas of responsibility. The Police Board, VPD management and City staff agree there is a need to move toward program budgeting. This flows from the results of the VPD Operational Review, in which each program in the VPD is reviewed for efficiency and effectiveness, and how best these programs may be delivered. Business plans will be prepared that allow, among other things, an individual budget for each program. While it is hoped that this new budget approach will be in place for the 2009 year, due diligence will be performed in developing an implementation plan upon completion of the Operational Review. MEASUREMENTS Key Performance Indicator: Budget variance Additional Measurements: * Improved overtime reporting to management * Improved variance reporting to management * Agreement as to plan and progress towards the implementation of program based budgeting * Completed authority matrix * Implementation of improved travel & training policies and procedures * Completion of the City’s Internal Audit Group review of internal controls

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