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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 08/14/2018F IN A N C E A N D HUMA N RES O URC ES C O MMIT T EE August 14, 2018 - 3:30 PM 31111 Greenspot Road, Highland C A 92346 AGE N D A C A LL TO O RD ER PLED G E O F A LLEG IA N C E PUBLIC C O MMEN T S N E W B U SI N E SS 1.Approve the November 27, 2017 Finance and Human Resources Standing C ommittee Meeting Minutes 2.Review Operating and Capital Budget Policy 3.Review Email and Instant Messaging Acceptable Use Policy 4.Review Password Policy 5.Discuss Upcoming Finance and Human Resources C ommittee Meetings AD J O U RN P LEAS E NO T E: P urs uant to G overnment C ode S ec tion 54954.2(a), any reques t for a dis ability-related modification or ac commodation, including auxiliary aids or services, that is s ought in order to partic ipate in the above- agendized public meeting should be direc ted to the District C lerk at (909) 885-4900 at least 72 hours prior to said meeting. Page 1 of 2 Minutes 11/27/17 cmk Subject to Approval EAST VALLEY WATER DISTRICT November 27, 2017 FINANCE AND HUMAN RESOURCES STANDING COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 4:00 p.m. and Mr. Tompkins led the flag salute. PRESENT: Directors: Smith, Morales ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Human Resources/Risk & Safety Manager; Nate Paredes, Business Services Manager; Christi Koide, Administrative Assistant GUEST(s): None PUBLIC COMMENTS The Administrative Assistant declared the public participation section of the meeting open at 4:03 p.m. There being no written or verbal comments, the public participation section was closed. APPROVE THE SEPTEMBER 26, 2017 FINANCE AND HUMAN RESOURCES STANDING COMMITTEE MEETING MINUTES M/S/C (Smith-Morales) to approve the September 26, 2017 Finance and Human Resources Standing Committee meeting minutes as submitted. REVIEW UPDATE TO CAPITAL ASSETS POLICY 7.4 The Chief Financial Officer stated that all capital assets have an initial useful life in excess of two years and typically cost at least $5,000. In addition, the following updates to the Policy were discussed: categorizing asset types; identifying and tracking assets that are in-use; and disposal of surplus items. REVIEW UPDATE TO EMPLOYEE RECOGNITION POLICY 5.4 The Human Resources/Risk & Safety Manager gave a brief overview of the change from the Employee Recognition Committee to the East Valley Employee Events Association (EVEEA). This group who is comprised of District employees, formed a 501 (c)(4) non- profit organization to promote charitable activities and philanthropy within the community, alongside employee events, and activities for staff. Page 2 of 2 Minutes 11/27/17 cmk Furthermore, the Human Resources/Risk & Safety Manager highlighted changes to the following: Employee of the Year Program; Awards & Recognition for District staff; and Annual Awards Banquet Guests. ADJOURN The meeting adjourned at 4:15 p.m. James Morales, Jr., Ronald L. Coats, Governing Board Member Governing Board Member S TAF F R E P ORT Agenda Item #2. Meeting Date: Augus t 14, 2018 Disc ussion Item To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: C hief F inancial O ffic er Subject: R eview O perating and C apital Budget P olic y R E C OMME N D AT ION: S taff rec o mmends that the F inance and Human R es ources C o mmittee review the attached O p erating and C apital Budget P olicy. B AC KG R OUN D / AN ALYS IS: T he adoptio n o f sound fis cal p o licies is a p rudent o b jective in the District’s endeavor to demonstrate s tewards hip and ac countab ility over res o urc es entrusted to the Dis tric t’s management and s taff by Dis tric t ratepayers . It is therefore important that the Dis tric t remain d iligent in its effo rts to ensure that, not o nly are adopted polic ies current, b ut that the Dis tric t’s library o f fisc al p o licies is comprehensive. In looking for guidanc e on rec o mmended polic ies , s taff referred to the G o vernment F inance O ffic ers As s o ciatio n’s (G F O A) Best P rac tic e advis ory paper – Adopting F inancial P olicies. In this ad vis ory, the G F O A recommend s formally ad o p ting financ ial polic ies and lis ts 15 financ ial p o licies that all government agenc ies should c o nsider adopting. T he G F O A gives further guidance on financ ial p o licies in a pres entation for effective budgeting wherein it categorized s ome of the listed polic ies as ‘Essential’. T hos e ‘Es s ential’ polic ies include the following: F und Balanc es and R eserves √ Investment √ O perating Budget C apital Budgeting and P lanning Debt Management √ Long-R ange F inanc ial P lanning A √ next to a p o lic y in the ab o ve list ind ic ates that the Dis tric t has already ad o p ted s uc h a p o lic y, o r one equivalent to it. O f tho s e not marked, a Long-R ange F inanc ial P lanning p o licy can b e d eveloped along with the five-year plan later this fis cal year. S taff has addres s ed the remaining two es s ential p o licies in the attac hed O p erating and C ap ital Budget P olicy. S ome of the items inc luded in the polic y are: Budgetary C ontrol, Balanced Budget, and Es timates of R evenue and Expenditures AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability a) P rac tic e Trans parent and Acc ountable F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e Department and Executive Management. F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this agenda item. ATTAC H M EN TS: Description Type Operating and Capital Budget P olicy Backup Material EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Operating and Capital Budget Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 7.7 Page 1 of 5 Purpose The Operating and Capital Budgets are developed on an annual basis through the establishment of District-wide goals, a Capital Improvement Program (CIP), program/departmental goals and objectives, and performance measures/key performance indicators. Together, these goals and activities provide a comprehensive plan to deliver efficient services to ratepayers and stakeholders of the East Valley Water District (District) in a manner that aligns resources with the policies, Strategic Plan, and Vision of the District. The formulation of the Operating and Capital Budgets, including the publication of a comprehensive budget document, is one the most important financial activities that the District undertakes each year. This budget policy is intended to provide guidelines to assist in the formulation and consideration of broader implications of financial discussions and decisions, which ultimately assist in completing financial planning cycles that deliver efficient and effective public service. Authority The Board of Directors are responsible for policy formulation, and overall direction setting of the District. This includes the approval of financial policies which establish and direct the operations of the District. The General Manager/CEO is responsible for carrying out the policy directives of the Board of Directors and managing the day-to-day operations of the District. This policy shall be administered on behalf of the District by the General Manager/CEO and Chief Financial Officer. Scope This policy shall apply to all Funds under the budgetary and fiscal control of the Board of Directors. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Operating and Capital Budget Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 7.7 Page 2 of 5 Policy A. Basis of Budgeting 1. The District’s Proprietary Funds are budgeted on the Full Accrual Basis of Accounting with the following exceptions: a. Changes in the fair value of investments are not treated as adjustments to revenue in the annual operating budget; b. Compensated absence liabilities are expensed when paid; c. Pension expense is budgeted based on employer contribution rates; d. Principal payments on long-term debt are treated as expenses in the annual operating budget; e. Depreciation expense is not recognized in the annual operating budget; and f. Capital purchases are recognized as an expense in the annual operating budget. B. Budgetary Control 1. The District shall adopt an annual balanced budget on or before June 30 of each year, in accordance with all state and county laws. 2. Program management is responsible for administering their respective Programs within the financial constraints described by the adopted budget. 3. The Chief Financial Officer will provide updates on the District's financial position by regularly reporting to the Board of Directors the status of actual expenditures, expenses, and revenues compared to the adopted budget. Further, the Chief Financial Officer will ensure that program management has access to timely and accurate financial data. C. Balanced Budget 1. The District shall adopt a balanced budget for each Fund which this policy covers. A budget is balanced when the sum of estimated revenues and appropriated Net Position are equal to expenditures. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Operating and Capital Budget Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 7.7 Page 3 of 5 2. Operating Revenues and Other Financing Sources must fully cover Operating Expenditures/Expenses, including Debt Service, and Other Financing Uses. Operating Expenditures/Expenses for the purposes of balancing the annual budget shall include that year's contribution to the CIP. 3. One-time revenue sources and development fees must not be used to fund operational costs. 4. Minimum Reserve policy levels must be maintained unless reserves are being used in accordance with the purposes permitted by the District's policy (see District Reserve Policy for further guidance). 5. The balancing of Operating Revenues with Operating Expenditures (as defined above) is a goal that should be applied over a period of time which extends beyond current appropriations. Temporary shortages or operating deficits, can and do occur, but they will not be permitted as extended trends. D. Formation of the Budget 1. District Vision - The budget shall be constructed around the Board of Directors’ vision for the long-term direction of District services and the associated desired culture and environment. When appropriate, a needs assessment of stakeholders' priorities, challenges, and opportunities shall be integrated into the visioning process to assist with the establishment of both short-term and long-term goals. 2. Programmatic Budgeting - The budget shall be based on Programs in order to provide insight into the costs of service that the District provides. Deliverables and specific actions shall be detailed at the Programmatic level, which support the goals and objectives outlined within the Strategic Plan and District Vision. 3. Financial Information - The budget shall display estimated beginning Net Position, estimated revenue and receipts, appropriations, and the estimated year-end Net Position. E. Estimates of Revenue, Expenditures, and Expenses 1. Objective Estimates - The District shall take an objective and analytical approach to forecasting revenues, expenditures, and expenses as accurately as possible. Though the District will use the best information available to estimate revenues, EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Operating and Capital Budget Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 7.7 Page 4 of 5 absolute certainty is impossible. Should revenues be overestimated, the spending plans and priorities established during the budget process shall be used to propose appropriations and spending as required to bring the budget into balance. 2. Regular Monitoring of Projections - The Finance department shall monitor revenue incomes and expenditure/expense outflows to assess the implications of the annual budget in order to provide timely updates on actual financial performance. 3. Long-Term Forecasts - The Finance department shall develop and maintain long- term financial forecasts, at least five years into the future, in order to help the District assess its long-term financial sustainability. F. Stakeholder Participation - The District shall provide meaningful opportunities for the stakeholders to provide input into the financial planning and budget process, before a budget is adopted. G. Create Value for the Stakeholders - The District seeks to maximize the value each stakeholder receives through its spending. Accordingly, staff should develop budget tools and methods to measure and maximize value, particularly by critically examining existing spending patterns. H. Address Long-Term Liabilities - The District shall fully fund current portions of long- term liabilities in order to maintain the trust of creditors and avoid accumulating excessive long-term liabilities. I. Responsibilities and Calendar - The District's fiscal year runs from July 1 through June 30. The Chief Financial Officer shall submit or cause to be submitted annually to the Board of Directors no later than June during a Public Board Meeting, a proposed budget governing expenditures/expenses of all District Funds, including Capital Outlay and CIP, for the following fiscal year. The budget, after being reviewed and adopted, shall constitute the Board of Directors' appropriation of all Funds for such fiscal year. J. Budget Amendments - Amendments shall be considered and adopted by the Board of Directors during a Public Board meeting except for specific adjustments when limited authority is delegated to the General Manager/CEO. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Operating and Capital Budget Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 7.7 Page 5 of 5 Quality Control and Quality Assurance It is the responsibility of the Chief Financial Officer to ensure the presence of procedures that provide sufficient guidance to affected District personnel to fulfill the intent of this policy. S TAF F R E P ORT Agenda Item #3. Meeting Date: Augus t 14, 2018 Disc ussion Item To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: C hief F inancial O ffic er Subject: R eview Email and Ins tant Messaging Acc eptable Us e P olic y R E C OMME N D AT ION: S taff recommend s that the F inanc e and Human R es o urc es C o mmittee (C ommittee) review the attac hed Email and Instant Mes s aging Ac ceptable Use P olicy. B AC KG R OUN D / AN ALYS IS: Email and Ins tant Mes s aging (I M) are the two p rimary forms o f d igital c o mmunicatio ns us ed by Dis tric t staff. C ommunicating is essential to c o nduct d ay-to -d ay o p erations and c omes with inherent ris ks . T he attac hed policy is intend ed to ens ure the und ers tand ing o f email and IM limitatio ns while ad d res s ing potential sec urity concerns . T he s cope of the p o licy ap p lies to all Dis tric t s taff, all email ac c ount holders, and tho s e working on behalf of the Dis tric t. Inappropriate us e of the Dis tric t’s email or I M sys tems c ould lead to the dis tribution of s ensitive information, damage to the District’s reputatio n, and disrup t b us ines s o p erations . Due to the high imp act o f potential cons equences, staff sought guid anc e fro m info rmation technology c ons ultants and the Municipal Information S ystems As s o ciatio n o f C alifo rnia, and reviewed polic ies from o ther agencies in d eveloping a p o licy for the C ommittee’s c onsideration. AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability b) Utilize Effec tive C ommunic ation Methods R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e and Information Technology Departments , Executive Management, and Legal C ouns el. F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this agenda item. ATTAC H M EN TS: Description Type Email and Instant Messaging Acceptable Use P olicy Backup Material EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Email and Instant Messaging Acceptable Use Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 6.11 Page 1 of 4 Purpose Email is a critical mechanism for business communications at the District. Use of the District’s electronic mail systems and services must be used with respect and in accordance with the policies of the District. Instant Messaging (IM) is currently being used by the District as a form of real-time communication with individuals inside the District. IM technology is meant for the purpose of enhancing employee productivity while conducting business. IM carries some security risks that must be addressed. The purpose of this policy is to establish guidelines for the use of these communications ’ methods, to safeguard sensitive information and data, and to maintain the public trust and confidence in the District’s operations. Scope This policy applies to all email and IM systems used at the District’s headquarters, District offices, and remote locations. This policy applies to all email account holders, District employees, and those granted temporary access while working on behalf of the District. Policy A. Email access at the District is controlled through individual accounts and passwords. Each user of the District’s email and IM systems are required to read and sign a copy of this policy prior to receiving an email access account and password. It is the responsibility of the employee to protect the confidentiality of their a ccount and password information in accordance with the Password Policy. B. All employees of the District will receive an email account. Email accounts will be granted to those working on behalf of the District on a case -by-case basis. Access will be terminated when the employee or third party terminates their association with the District, unless other arrangements are made. C. Email users are responsible for mailbox management, including organization and cleaning. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Email and Instant Messaging Acceptable Use Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 6.11 Page 2 of 4 D. Email users are expected to remember that email se nt from the District’s email accounts reflects on the District. Please comply with normal standards of professional courtesy and conduct as emails are subject to the public records request act. E. Email users must not automatically forward incoming emails to accounts outside the control of the District. F. The District email systems and services are not to be used for purposes that could be reasonably expected to strain storage or bandwidth (e.g. emailing large attachments instead of pointing to a location on a shared drive). G. Email and IM use at the District will comply with all applicable laws, all District policies, and all District contracts. Use in a manner that is not consistent with the mission of the District, misrepresents the District, or violates any District policy is prohibited. H. The following activities are deemed inappropriate uses of the District email and IM systems and services, and are strictly prohibited. Inappropriate use includes, but is not limited to: 1. Use for illegal or unlawful purposes, including copyright infringement, obscenity, libel, slander, fraud, defamation, plagiarism, harassment, intimi dation, forgery, impersonation, and computer tampering (e.g. spreading of computer malware). 2. Viewing, copying, altering, or deletion of accounts or files belonging to the District or another individual without authorized permission. 3. Opening email attachments from unknown or unsigned sources. Attachments are the primary source of computer malware and should be treated with caution. 4. Sharing account passwords with another person, or attempting to obtain another person’s account password. 5. Excessive personal use of the District resources. 6. The District prohibits personal use of its email and IM systems and services for unsolicited mass mailings, non-District commercial activity, political campaigning, and dissemination of chain letters. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Email and Instant Messaging Acceptable Use Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 6.11 Page 3 of 4 I. The email and IM systems and services used are owned by the District, and are therefore its property. This gives the District the right to monitor any and all email and IM traffic passing through its systems. This monitoring may include, but is not limited to, inadvertent reading by IT staff during the normal course of managing the email and IM systems, review by legal counsel, observation by management in cases of suspected abuse, or to monitor employee efficiency. J. Emails that are retained in electronic folders or in hard copy and are not intended for temporary purposes may be public records and should follow the District’s retention schedule in terms of how long the records may be kept pursuant to legal requirements. K. All incoming, sent, and deleted emails that are older than 90 days will be automatically deleted on a daily basis. Emails that serve a useful business purpose can be preserved by manually moving the email to a subfolder of the mailbox. L. Use extreme caution when communicating confidential or sensitive information via email or IM and these are not considered secure means of communication. Keep in mind that all email messages sent outside of the District become the property of the receiver. M. Any allegations of misuse should be promptly reported to the Human Resources Manager. If you receive an offensive email, do not forward, delete, or reply to the message. N. Only IM services approved by the Information Technology (IT) may be installed and used on the District’s network. Free IM services commonly used within the consumer market (Facebook Messenger, AOL Messenger, etc.) are not approved or supported by the IT department. O. IM services are to be used for business communications and for the purpose of fulfilling job duties. Use of IM communications in this manner between the District employees is permitted and encouraged. It is expected that all employees will communicate professionally with colleagues, keeping in mind that foul language and slang terms are not allowed. P. Truly sensitive communications should be conducted through paper-based correspondences or in-person meetings. Employees are prohibited from sending EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Email and Instant Messaging Acceptable Use Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 6.11 Page 4 of 4 personal identifiable information such as credit card information, banking information, driver’s license numbers, social security numbers, and other sensitive information through the District’s email and IM systems. Non-Compliance Violations of this policy may result in disciplinary action up to and including termination. S TAF F R E P ORT Agenda Item #4. Meeting Date: Augus t 14, 2018 Disc ussion Item To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: C hief F inancial O ffic er Subject: R eview P assword P olic y R E C OMME N D AT ION: S taff rec ommends that the F inanc e and Human R es ourc es C ommittee review the attached P assword P olic y. B AC KG R OUN D / AN ALYS IS: An effec tive P as s word P o licy is an imp erative as p ect o f c ybersec urity that helps ensure o nly authorized users gain acc es s to Dis tric t sys tems. T he attac hed polic y es tab lis hes guid elines to minimize the ris k of unauthorized acc es s that c o uld possibly lead to the c o mp ro mis e o f Dis tric t sys tems, d ata breac h, and dis rup tion o f bus iness processes. T he o b jective o f this p o lic y is to es tablis h standards in p as s word creatio n, p ro tec tion o f those pas s words, and technology operations pertaining to pas s words. In d eveloping the P asswo rd P o lic y, s taff referred to guidance fro m a rec ent C yb ers ecurity As s es s ment. Additionally, the polic y takes into cons id eration ind ustry b es t p ractices d etermined by the National I ns titute of S tandards and Technology and P ayment C ard Indus try. AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability b) Utilize Effec tive C ommunic ation Methods R E VIE W B Y O T HE R S : T his agenda item has been reviewed b y the F inance and Info rmation Tec hno lo gy Departments and Executive Management. F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this agenda item. ATTAC H M EN TS: Description Type P assword P olicy Backup Material EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Password Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 6.12 Page 1 of 2 Purpose Passwords are the primary form of user authentication used to grant access to District information systems. To ensure that passwords provide as much security as possible, they must be carefully created and used. This policy offers guidelines for creating strong passwords that help minimize the possibility of access to the District’s information systems. It is the intent of the District to protect all its network resources including computer hardware, software, and data. This document will set forth the policy of maintaining logical security, protecting the software and utilization of systems by persons with legitimate access rights. Scope The Password Policy applies to all information systems, information components, and to all user account holders, District employees, and those granted temporary access while working on behalf of the District. Policy A. Passwords should be constructed according to set length and complexity requirements. As such, passwords must be at least 7 characters in length and must include an upper and lower-case letter, number, and special character. B. Passwords will have a maximum lifespan determined by the Information Technology Manager. C. Passwords should not be reused. Reuse includes the use of the exact same password or the use of the same root password with appended or pre -pended sequential characters. D. Passwords are to be used and stored in a secure manner. As such, passwords should not be written down or stored electronically in plain -text. Passwords are to be obscured during entry into information system login screens and are to be transmitted in an encrypted format. E. Passwords are to be individually owned and kept confidential and are not to be shared under any circumstances. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Password Policy Original Approval Date: August 22, 2018 Last Revised: Policy No: 6.12 Page 2 of 2 F. Vendor supplied default passwords must be changed prior to installing a system on the network. G. Information Technology professionals or system account credentials for non-console administrative access must be encrypted using technologies such as SSH, VPN, or SSL/TLS. Encryption technologies must include the following: 1. Must use strong cryptography, and the encryption method must be invoked before the administrator’s password is requested. 2. System services and parameter files must be configured to prevent the use of telnet and other insecure remote login commands. 3. Must include administrator access to web -based management interfaces. 4. Use vendor documentation and knowledge of personnel to verify that strong cryptography is in use for all non -console access and that for the technology in use it is implemented according to industry best practices and vendor recommendations.