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Home My WebLink About1973 PROPOSAL TO IMPLEMENT A MUNICIPAL ACCOUNTING SYSTEM FOR THE CITY OF DENTON EXECUTIVE TECHNOLOGY , INC. Two Lenmon Park, Suite 284 Midway at LBJ Dallas, Texas 75234 (214) 661-5650 EXECUTIVE TECHNOLOGY, INC. Two Lentmon Part, Suite 284 Midvey at L131 CORPORATH PARTNERS Dallas, Tease 75234 (214) 661.5650 )A. i[arru~ A. d M.o6~arll V. C. KrsdrieL. Jr. February 19, 1973 Mr. James W. White City Manager City of Denton Denton, Texas 76201 Dear Mr. Whites Executive Technology is pleased to submit this proposal to the City of Denton describing how we would implement nn integrated accounting system. The System would be designed, programmed and implemented by Executive Technology specifically for your City and your IBM System 3 computer. SCOPE OF SYSTEM The System described in this proposal is an integrated accountinb aystem which includes the following specific applications: • Accounts Payable Cash Disbursements - Check Writing - Bank Account Reconciliation Sched,;Ies • Journal Entries • Cash Receipt Accounting • General Ledger Accounting • Encumbrance Accounting • Revenue and Expenditure Statements We would integrate this System with other computerized accounting systems such as the maintenance expense distribution system to eliminate manual entries wherever possible. Sample management reports are presented in Exhibit A of this proposal. These sample reports are presented to indicate the scope of the System. O -2- The City of Denton, however, is not bound to use these exact formats if other presentations would be more meaningful. A complete list of report titles to be generated by the System is presented in Exhibit B, APPROACH Executive Technology would assume complete responsibility for de- signing and programming the System. In addition we would train key City employees in System operations. To complete the engagement, we would perform the following steps: • Review proposal with City's Auditor • Perform a detailed review of the existing systems - Establish System requirements - Complete System conceptual design • Review conceptual design with key management personnel • Complete a Detail System Design to include: - Report formats - Record layouts • Review detailed design with key management personnel and modify System as required • Define programming requirements to modify existing Ciry systems which can be integrated with the new System, • Assign programming responsibility to City personnel to modify existing City Aystems • Write computer programs • Test computer progr&is • Prepare the following documents: - Finance Department User's Manual - Computer Run Book - Keypunch Manual • Design and order all forms • Train appropriate City personnel from the following departments in System operations: Finance Data Processing -3- Perform on-site monitoring the first time the following operations are perfcrmed! - Check writing - Financial statement preparation • Provide a reasonable amount Of consulting followup to assist City personnel as appropriate At the conclusion of the engagement the System would be implemented and fully operational. OUR QUALIFICATIONS Executive Technology and associates provide a unique combinatik , of training and experience to cities with IBM System 3 computers. We have implemented numerous computerized accounting systems, inclu3ing a municipal accounting system for the City of San Angeloincn addition, we have had experience with many phares of city government billing and joint data processing centers. We have had "hands-on" experience with numerous computer systems and, in particular, with the IBM System 3. proposnd Mr. David The engagement would ber£aos ed b 'Mr. Lynn Howard Dial. Their biographies appear Mr. Howard and Mr. Dial are Certified Public Accountants and each have had over four years of consulting experience both with national and local public accounting firms. Professional references are presented in Exhibit D. CLIENT PARTICIPATION The ultimate operation of the System must rest with City personnel. Consequently, we will involve key City personnel throughout the engagement. Specifically, the following will be the responsibility of City psonnelt • Preparation of Vendor Master File - Recording - Keypunching • Preparation of Chart of Accounts Recording Keypunching • Modification of interfacing programs to provide data to new System • Providing beginning account balances EXECUTIVE TECHNOLOGY, INC. Two Lemmon Parr, Suite 284 Midway at LBJ CORPORATE PARTNERS Dallas, Taxes 75234 (214) 661.5650 P, Hewr1 A, aM&A40011 V. C. xaaldd, b. March 1, 1973 Mr. James W. White City Manager City of Denton Denton, Texas 76201 Dear Mr. White: This letter supplements our proposal, dated February 19, 1973, to the City of Denton to implement an integrated accounting system. Executive Technology, Inc. agrees to complete the engagement described in the proposal for a total of fee as:d expenses not to exceed $11,000. If the City formally approves of our proposal by March 7, 1973, the System will be operational beginning July 1, 1973. We will issue monthly progress billings. Yours truly, EXECUTIVE T'ECk OLOGY, INC. i *nn Howard LH:am Approved By: / City Manager Date* -4- We anticipate that we will need approximately five to ten hours of computer time on the City's computer during the, last month of implementation. BENEFITS The implementation of the proposed integrated accounting System will allow the Cit) of Denton to realize numerous benefits. A portion of the potential benefits are outlined below: • Improved reporting formats for management personnel • Capability for more timely financial statements • Reduced clerical effort • Complete system documentation • Extensive operational controls • Complete audit trails We will minimize the time demands on City employees. This is particularly significant in Data Processing which is presently in the midst nf conversion from the Model 20 to the System 3. Our approach will permit Data Processing to concentrate their efforts on the conversion process and implementation of other systems. TIME AND EXPENSE Our total estimated fee and expenses to complete the engagement would range between $9,000 and $11,000. If the engagement is began prior to March 1, 1973, the System would be operational beginning July 1, 1973. We would issue monthly progress billings. a * ~ * * a We appreciate the opportunity to present this proposal and look fox-ward to working with you. Siucerely yours, EXECUTIVE TECHNOLOGY, INC. 4yn n Howard LH:am Corporate Partner Da to Accepted by ~r EXHIBITS • EXHIBIT A - Sample Management Reports • EXHIBIT B - Report Titles • EXHIBIT C - Biographies oft Lynn Howard David H. Dial • EXHIBIT D - References Ct1YIs NAfit' SSTE:~',l OF E.xPE_+UIIURES_ BY DcPAR1MENT PAGE GEhE!tAl F_L'~)__-~_ ---------FUa cu~REVt vtRloO f~tuil-'tz/ul/t~ 7o t213'i17~"--~ AvthtlEO - OkREiO PEk1Ub YEAk-1U-6. 1 -U}/ExDEhJk3 CLP4usi'a APPROPRiAIIUt; ExPENO11UkE5 EXPENDITURES BALANCE ENCURBRANCES-_____s!ILA`Ci CITY PA\A{,E4 - ti0~ I,Of6.75- 2153.30~j2tl~84a.~0 .0~-18,3~e.Si1-~ 541:5u ~~ircS 131,0u00 952.00 11.50 23.00 424.0011650 9l 1.50 51-291ii.o0-'-' kid-so SUPPLIES - 107AL5 FUli OEPA:t~E'~f 131,952.00 i;oa6.1's 2,II6,50 i24,TT5. 0 , F1iiAL U`P-~.IPc,1 ,at9.34 S ALA,Et1, c~3 *'GES 9bsT5Q.00 20150.-33 30U. 66 92,449.34 .00 92 2rod0.oo •---ls--- SUPPIl - IUTALS FUR GEP=..•c•.i 96rTSy.00 2+211.48 4 46 44,195.04 21, 15 94 DATA Y tu:EaS1M1v- CEPS:S~c'T - AtrJ w.GES 19,LOO.GO 1,194.53 2,389.06 15,6 0.94 499.00 4,656.00 - y41.4RI0 SUPPLIES 5r4S0..00 . 1.48.00___ 296.Ou 5,154.00 490.00 2J,266.94 IUTAISf 0~s c'.1 23,450.00 1,311.5) 2, 685. U6 20,164.4 TAR OEPAR1Y;r;1 ,00 60,x62.22 S%LARIES SSD S_.__._ 6B, 3~51B.6T 7037.18 bOr 9b2 . 22 -SUPPLIES - 59000.00 .o0 - 400 - `''r00u.o0 l,2T5.00 3, 125.00 64r61sP.22 TOTALS FGA GFPLRT4EVI 1),000.00 )L518_09 7,031.15 65,962._22 2tS.00 3081686.0s TUTALS FO-t f„•.J 32 T, 15_.00 6~22T.1,5~ _.I6r454.j031U~691.70_ 911 e.65 r - a CITY05 - _ ` STATEMENT OF REVENUES BY FUND PAGE I ~ - ~FU CuiiRc`NT PEKIUO`FRUis lV01-)-2 T IF IJ1712 tot AL --tURRtNI--PER1ti0___-_ TO=uAtE~_~--_------__._--- FUND ESTIMATED ACTUAL ACTUAL DIFFERENCE 10 ~S- - GENERALFUND 10SI6150.00 120425.64 240851,28 104910598.12 UP_d_ (,KA6Fur --3,)00:00 ba5.U0 ,3TU.3a ~,b30.Jif 10TA1 -RE VEWE_FOR-ail __F`$ ....rrrrrra.-, .rr..-....... rw. ........rrrrrrr....... ~wwr~.wrr~+• CITY's NAME STATt'!ENI OF LAV00MAES by FU'0D PAGE 1 FOR CURRENT PER10D FROM 12/01/72 10 12/31112 ANENOFO CURRENT PLRIOD YEAR-TO-DATE U14fKPkN0ko UNE%:U"BERED FUND APPRopetIAT1001 EXPENDITUlE5 EXPE401TURF S pALANCE ENCU43RANCEi BALANCE 10 GVilkAL FUNU SAtAAILS AND WADES 313x150.00 1094U.50 151841600 291x869,00 000 2910864.00 SUPPLIES 13040;.00 286.65 573.30 12062!!,10 10811.65 110011,05 TL1TAtS FUR FUND 3270152000 80221.IS 160454.30 310,697,tO 10811.65 303,886,05 6S SHOP L GARAGE FUND SALARIES AND WAGES 80535.00 81721.52 170443.04 809Dd.04- .00 8090d404- M4I+IIANfINCE 217004PU 18293.15 20S67.50 132.50 10283.15 10151.25- CAPIIAL Ol1ILAYS 1506?0.00 30500.00 10000.00 660000000 30500.00 640500.00 IlItALS FOR FU'tO 661235400 13,50S.21 2'0010.54 590224.46 40183415 S40440,11 SU'4,4AAY OF ALL FUNDS S%t4AIES A'10 WAGES 3220285.00 160662.02 330124.04 2380960496 .DO 2380960.96 SUPPLIES 130402,00 286,65 573.30 120828.10 10811.65 110017.05 MAIN10NANCE 20700.00 10263015 20561.50 132050 10283.75 I0151.25- CAPITAL OUTLAYS 750000.00 30500.00 10000.00 680000.00 30500.00 640S00000 TOTALS I.OR All FUNDS 4130381.00 210732.42 430464084 3690922016 60595,40 3630326.76 y _ , Cityls NAME 54UP 6 GARAGE FUND S1ATfMENT OF REVENUES BY ACCOUNT PAGE - FOR CURRENT PERIOD fRUN 12/01 72 TO 12/31112 -~-V -Y TOTAL CURRENT PERIOD YEAK-TO-DATE ACC0,UNT ESTIMATED ACTUAL ACTUAL DIFFERS' { i.E SHOPRLVENUE 31000000 685400 11310_._00 l,TA1 SHOP L GARAGE FUND 3L000.00,______-_-__ -685,00,Y`_ 1 310.00 1~b3C... - - - - ~r...........r...............~.....r.~~......-........~r.-.... r..~r... CITYtS PIAliE SyUP L GARAGE FU'+0 - STATEMENT OF EXPEUJINAES by ACCOUNT _ PAGE 1 FOR CURok0f PEIl1UD FROM-121UI1772 10 12/11 ?2 AKE,1 0EU CUiAENT P-'RIOO YEAA-TO-OATE U%EXPENJED UNENCUHOe .E: ACCUU\T APPkOPAIATIOy,- EXPENDIINES~ EXPEN011URES _ BALANCE ENCUw.BRANCES EkILANCE 74 LABOR nAII,TLNANCE 9,535.00 87721.52 171447y04 80908.04; 000 6190d...[wa- TFf-ALrSALA~tliS AND eAGES 50531400 8021@52 17 443.04 8008.04- •00 0 MJT~R VENICIE "aIhTEPM'iCE •00 Irlu0.00 2200.00 21200.00- LIIOU.DD 3.7CC...Ct- 15 OTHER KAINTENE%CE 29700.00 183075 367.50 -2 332.50 14305 2114s. -M I•IS....2±- TOIAI MAINTE~.3NCE 2.700.00 1x283.75 2•S67.50 131.50 lt283*15 04 MUIOR VEHICLE PUACMASE! 750000.00 31500400 7100D.00 681000.00 300U.00 64.5Ci...:J TOTAL CAPI.TAL_OJTLAYS 75x000.00-~-3•_500.00 7.20D.00 __-682000.00 -3 500.00__ 64~SC:.:.CC_ TOTALS fCR FU-%D BbL23S.00 132505.27 272010._54 592224.46 42783.75 S424l-6.'.71 s EXhIBIT A-4 C11104 NAME PAGE ~.1 - - Gtr+E'sAl LdOGErt,_„_ 10 - IA4 FUND 1• J/3l/11 YCNDUk CURRENT Ptit. ) YEAR-T NCt-- RkFtrli NGE_ tlAIA LRANSACiIUN NU, hU. AMOUNT DAiE~ SJJrtCE rU0 - `"r1Ati:6SCsa IIE1 CASH IN, BANK! - - lOlue%72~VoUCkrtK 12r425.e4 (11I iriVUSCt IOIS 10/01171 GASH ttCtlP1 _ 761 -~_T:440,.SOCrL 10/US/71~JGURt.,L EN1RY _ 111111 TAki$ KtCEiYkO It RtCUMO P, AV UL L. 1111 UAIArrCE FuR~ARU _ SO.oDCic 2101 DUk, f0.1+AfeA FUND --'L0~5/T2 JOU~tN4L ErfrRlf 2 50.000K ~UdClt 2101 SUPP' IeS fAU►, NAfER UEPrr 10/15/72 JDUKNAL dNTRY ~pp,oOC.__C_._.-100- 2101 SVP('.Ic$ FtLA %AI ER OEPT X10/3}172 .OJ 2 Ol dALAM1CE PU&P'ARO 100 3100 fUNO dALANCk 10/31/72 B~fO~NARO CItYIS hVtc PAGE to = GENkRAL fUNO YEA~lSO'DATE ACC,)UNT ANALYSIS f1T-.-IyTTY'NANAGEA _ KkFertkNCE VENDOR {I TRANSACTiJW N0, ---Nq, AM3UNT"" DESCRIPTI'O DATEI"' J-SOURCE M- ACCu?17'r'"'~ 01- 7 5 5101 SUPEKViSIUN 0/05-/7, JOURN W ENTRY' --1 f01.7~ 5101 -RECORD PAYROLL' _ IOTA. SUPEKV1SIO% - i 775.00 ID r" cY'ERK'HIAE-- 10/U5/72 JOJANAL ENTRY 37S.uJ 5102 KICOAD PAVAULL TUTAL CLEhK ►+1KE`~ 11.50 E661 1 OFFICt SUPPLIES 10/06/71 VOUCHER 50 01 PAPUTAC-OFFICe 1UPP0H i~OBBr 2S TOTALANAGtR EXHIBIT H REPORTS PREPARED BY COMPUTER Typical Reports which would be prepared by the System are listed below: REPORT NAME NORMAL- F- R" IUEHCY Account Analysis On Request Bank Reconciliation Schedule Monthly Batch Proof Listing of Disbursement Daily Vouchers Batch Proof Listing of Unvouchered Monthly Encumbrances Cash Disbursement Journal Daily Cash Receipts Journal Daily Chart of Accounts As Required Expenditure Budget On Request General Journal Monthly General Ledger Monthly Listing of Vouchers With Missing Exception Name and Address Cards Listing of Transaction Cards Exception WiCh Invalid Codes Listing of Unmatched Manual Check Exception Cards Proof Listing of Bank Statement Monthly Checks Register of Checks Prepared By Bi-Weekly Computer f Register of Checks Prepared Manually Si-Weekly Revenue Budget Annually Schedule of Encumbrances Monthly Schedule of Vouchers Paid Manually Monthly EXHIBIT 9 (conta,) REPORT NAME NORMAL FREQUENCY Schedule of Vouchers Payable Monthly By Payment Date Schedule of Vouchers Payable Monthly By Vendor Statement of Expenditures By Monthly Account Stattnant of Expenditures By Monthly Department Statement of Expenditures By Monthly Fund Statement of Revenue By Fund Monthly Vendor List As Required Voucher Checks Bi-Weekly BX IRT C-2 LYNN .11OWAPD Mr. Howard is a corporate partner of Executive Technology, Inc. He would assume responsibility for the entire engagement. Mr. Howard has had over four years of consulting experience with his own firm and with an international accounting firm. Prior to becoming a consultant, he had over four years of operating experience in the areas of accounting, production scheduling, production planning, inventory control and industrial engineering. In addition, he gained three years experience in designing and implementing computerized production scheduling and inventory control systems in a manufacturing environment. As a consultant his data processing experience includes the following: • Implemented the computerized accounting system for the City of San Angelo with Mr. Dial. Implemented an innovative computerized personnel record system for a government agency. • Conducted numerous data processing feasibility studies. Assisted in the development and implementation of a multi- user data processing center. • Developed data processing plans for two large corporations. Mr. Howard has a Bachelor of Science Degree from Princeton University and a Master of Science Degree from Southern Metho.+ist University. He is a Registered Professional Industrial Engineer and a Certified Publip. Accountant. DAVID H. DIAL Mr. Dial is an associate of Executive Technology, Inc. He has a broad range of experience in EDP system design, computer programming and systems evaluation. Mr. Dial manages a complete data center, utilizing an in-house IBM System 3 Model 10 computer. Mr. Dial has served as an EDP consultant with an international accounting firm where he completed numerous engagements involving the design, programming and implementation of computer-based accounting systems and the evaluation of computer hardware. He has had experience and is competent in the use of several programming languages. Examples of Mr. Dial's experience include the followings s Programmed and implemented the computerized accounting system for the City of Zan Angelo. • Designed, programmed and implemented several accounting systems for the IBM System 3 computer which include such applications as accounts payable, accounts receivable, payroll, general ledger and financial reporting. • Designed, programmed and implemented a complex retail inventory control and reporting system for the IBM System 3 computer. e Designed, programmed and implemented management information systems for small and medium-sized oil companies using IBH and Burroughs third-generation equipment. s Designed and programmed a computerized accounting system for a Burroughs second-generation computer. s Served as data processing manager for a tape-oriented system devoted to Accounting and inventory control. s Conducted feasibility studies foo computer systems in a large oil company and in a medium-sized hospital. s Performed evaluations of data processing installations in numerous organizations includin; cities, school districts, manufacturing firms, insurance companies, retail stores and banks. s Conducted data processing training courses on a national basis for auditors in a large public accounting firm. EXHIBIT C-2 (contd.) Mr. Dial holds a Bachelor of Business Admini,tration Degree with a major in accounting and a Master's in Professional Accounting Degree from the University of Texas at Austin. Mr. Dial is a Certified Public Accountant in Texas. gXlltgit D REFERENCES Mr. Wiley Webb Ex-Mayor City of San Angelo (915) 653-4543 Mr. Johnny Richardson Director of Finance City of San Angelo (915) 655-9121 Mr. Ronnie Ranes Data Processing Manager City of San Angelo (915) 655-9121 Mr. Morris Matson Director of Finance City of Fort Worth (817) 335-7211