Commission Agenda Item No. 2
Presenter: Mike Jensen

Action
Financial Overview
August 25, 2016

I.             Executive Summary: Staff will present an update of the Fiscal Year (FY) 2018-2019 Legislative Appropriations Request, a summary of the FY 2017 Operating and Capital Budget, and the Texas Parks and Wildlife (TPW) Commission’s Budget and Investment policies.

II.     Discussion:

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 2017 Operating and Capital Budget (Exhibits A, B) and approves expenditure of FY 2017 Texas Parks and Wildlife Conservation and Capital Account funds as budgeted. The TPW Commission also approves the Budget Policy (Exhibit C) and the Investment Policy (Exhibit D).”

Attachments – 4

  1. Exhibit A – Agency Budget by Strategy
  2. Exhibit B – FY 2017 Operating and Capital Budget by Division/Object of Expense
  3. Exhibit C – Budget Policy
  4. Exhibit D – Investment Policy

Commission Agenda Item No. 2
Exhibit A

FY 2017 Agency Budget by Strategy

Strategy AY2017
A.1.1. Wildlife Conservation 25,139,845
A.1.2. Technical Guidance 513,182
A.1.3. Hunting and Wildlife Recreation 2,613,692
A.2.1. Inland Fisheries Management 12,486,291
A.2.2. Inland Hatcheries Operations 7,645,938
A.2.3. Coastal Fisheries Management 11,992,579
A.2.4. Coastal Hatcheries Operations 3,185,694
B.1.1. State Park Operations 77,995,668
B.1.2. Parks Minor Repair Program 4,953,439
B.1.3. Parks Support 6,348,306
B.2.1. Local Park Grants 13,738,157
B.2.2. Boating Access and Other Grants 8,334,866
C.1.1. Enforcement Programs 56,274,372
C.1.2. Texas Game Warden Training Academy 1,771,506
C.1.3. Law Enforcement Support 2,460,235
C.2.1. Outreach and Education 2,571,082
C.2.2. Promote TPWD Efforts 5,110,996
C.3.1. License Issuance 7,729,290
C.3.2. Boat Registration and Titling 1,350,434
D.1.1. Improvements and Major Repairs 38,981,693
D.1.2. Land Acquisition 430,748
D.1.3. Infrastructure Administration 3,765,517
D.1.4. Debt Service 3,069,521
E.1.1. Central Administration 9,942,934
E.1.2. Information Resources 12,861,751
E.1.3. Other Support Services 2,780,801
Fringe Benefits 49,888,823
Total 373,937,360
Method of Finance AY2017
General Revenue 110,715,357
GR Ded-Game, Fish, and Water Safety 135,231,483
GR Ded-State Parks 51,449,487
GR Ded-Other 28,575,109
Federal Funds 43,328,413
Other Funds 4,637,511
Total 373,937,360

Commission Agenda Item No. 2
Exhibit B

FY 2017 Operating and Capital Budget by Division/Object of Expense

Division Salaries & Other Personnel Costs Operating Grants Debt Service Capital Budget Fringe Benefits Total Budget FTE's
Administrative Resources 6,343,627 829,568       1,843,943 9,017,138 118.0
Coastal Fisheries 10,820,419 3,239,612 640,368   224,417 3,162,808 18,087,624 204.5
Communications 4,553,469 2,962,628     33,459 1,223,309 8,772,865 77.0
Department-wide   12,047,249   3,069,521 71,577   15,188,347  
Executive 2,817,543 963,048       702,661 4,483,252 38.5
Human Resources 1,633,191 259,634       420,588 2,313,413 27.0
Information Technology 5,578,078 407,235       1,456,407 7,441,720 82.5
Infrastructure 4,712,726 997,058     199,000 1,312,146 7,220,930 117.0
Inland Fisheries 12,308,837 5,278,499 1,622,409   704,142 3,019,467 22,933,354 218.5
Law Enforcement 46,434,834 9,620,104     3,651,658 13,777,555 73,484,151 676.7
Legal 857,397 71,409       214,390 1,143,196 10.0
Local Parks 1,355,112 495,171 20,217,638     369,136 22,437,057 19.0
State Parks 54,975,662 25,260,540 18,500   6,230,089 18,089,386 104,574,177 1,323.2
Wildlife 15,058,981 6,647,536 5,498,715   659,161 4,297,027 32,161,420 316.0
Capital Construction         38,308,906   38,308,906  
Capital Information Technology         6,369,810   6,369,810  
Total 167,449,876 69,079,291 27,997,630 3,069,521 56,452,219 49,888,823 373,937,360 3,227.9

Note: The above FTE numbers are budgeted FTEs. GAA FTE cap for TPWD is 3,143.2.


Commission Agenda Item No. 2
Exhibit C

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.
  14. 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 25th day of August 2016.

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 25th day of August 2016.


______________________________________
T. Dan Friedkin, Chairman

______________________________________
Ralph H. Duggins, Vice-Chairman

______________________________________
Anna B. Galo, Member

______________________________________
Bill Jones, Member

______________________________________
Jeanne W. Latimer, Member


______________________________________
James H. Lee, Member

______________________________________
S. Reed Morian, Member

______________________________________
Dick Scott, Member

______________________________________
Kelcy L. Warren, Member

 



Commission Agenda Item No. 2
Exhibit D

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.

I.       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

II.  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 84th Legislature, Article VI, Texas Parks and Wildlife Department, Rider 3, and Texas Government Code §403.241-403.252 (petty cash accounts, 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 record keeping and reporting.

III. 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 Federal Deposit Insurance Corporation (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.

IV.       Review — The Texas Parks and Wildlife Commission shall review this policy at least annually.

 

         APPROVED this the 25th day of August 2016.

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 25th day of August 2016.


______________________________________
T. Dan Friedkin, Chairman

______________________________________
Ralph H. Duggins, Vice-Chairman

______________________________________
Anna B. Galo, Member

______________________________________
Bill Jones, Member

______________________________________
Jeanne W. Latimer, Member


______________________________________
James H. Lee, Member

______________________________________
S. Reed Morian, Member

______________________________________
Dick Scott, Member

______________________________________
Kelcy L. Warren, Member