County Highway Department’s
Accounting Systems
Financial Processes, Reports
and Schedules
WCHA Road School
January 2013
Doug Meek, WisDOT
Tim Ramberg, WCHA Treasurer
County Highway Departments have
Varying and Unique Requirements
• By State law (Chapter 83-County
Highways…)
• By WisDOT (Policies, Procedures,
Manuals…)
• By Departmental Policies/Procedures/Rules
• By County Auditors (Independent auditors)
• By County-wide Policies and Procedures
• (Counties must keep the first two in mind when
writing/modifying county-wide and departmental
policies and procedures.)
Ups and Downs of Highways
• Accounting Cycle
• Seasonal Cycles
– Construction/Summer Season
– Winter Season/Events
•
•
•
•
Weather Cycles
Emergencies
Projects (Over multiple years)
Various Time Periods and Cycles
WisDOT Highway Maintenance
Manual Basics Covered
•
•
•
•
•
•
•
•
Policy and Procedures - Administration
Roadway Maintenance
Traffic Services and Safety
Winter Maintenance
Roadside Management
Roadside Facilities
Right-of-Way Use & Permits
Emergency Response
Unique Financial Processes
• Accounting
Processing:
• Economic Decisions:
– Financial Analysis
– Tracks expenditure
– Operational insight
– Tracks revenues
– Life Cycle Costs (years)
– Yearly activity
– Audit account accuracy
– Reviews changes in
activity
– Long term value of a
decision
– Includes cost avoidance,
labor savings, public
service timelines, etc.
Unique Accounting System
Requirements
• Typical System
Modules
–
–
–
–
General Ledger
Payroll
Accounts Payable
Accounts Receivable
• Additional Modules
Needed
– Project Costing
• Over several years
• Tracked by activity
– Fixed Asset Inventory
– Fleet Operations
• Maintenance costs
• Maintenance triggers
– Labor hours tracked
• Incidental Labor
• Hours by job
– Machinery hours/ops
– Materials/Inventory
• Parts
• Fuels, etc.
– Pits & Quarries
– Bituminous Operations
Unique Accounting Systems
•
General Ledger Accounting
Systems
–
–
–
–
–
–
–
–
–
–
•
ALIO
ACS
J.D. Edwards
Springbrook
DataNow
Financial Edge
New World
CMHC/Netsmart/Avatar
Etc.
Whatever your county has
selected as there General Ledger
(GL) software package.
We look for Cost Accounting
software that is capable of
importing into the County’s
General Ledger & Payroll
Systems.
• Cost Accounting System needs
– CHEMS-PRO
•
•
•
•
–
–
–
–
–
–
Most county highways
WisDOT developed
Web based
Free to Highway Departments
ACS
Terry Esser (AS-400)
J.D. Edwards
Springbrook
RTVision
Others?
Highway Cost Accounting System
Needs
• Software modules need to:
– Set-up and track project costs
– Track labor, machinery, material:
•
•
•
•
Costs
Units
Time and
Quantities used.
– Contracted services used
– Special Reports
Construction & Maintenance
Projects
•
•
•
•
•
•
•
•
•
Widening
•
Base Improvement
•
Hill Cuts/Vertical
Realignment/Horizont •
al
•
Total Reconstruction •
Safety Enhancements•
County-Aid Bridges •
Bridge Replacement •
etc
•
Surface Patching &
Repair
Chipseal
Vegetation Control
Drainage/Culverts
Shouldering
Safety Appurtances
Accident Response
Signing
etc
Highway Cost Accounting System
Needs (Continued)
• Software modules need to:
– Manage pits & quarries inventory
(including cost of goods sold)
– Manage materials
– Manage employees
– Manage bituminous operations
– Manage fleet (including maintenance triggers)
– Manage equipment (including depreciation)
– Manage inventory (including ordering triggers)
• Culverts, blades, tires, batteries, vehicle parts
Highway Accounting System
Needs
(Continued)
• Software modules need to:
– Invoice WisDOT and other units of
government for work performed
– Run required reports and additional reports
requested by WisDOT
– Run reports for managers (Used many times
to assist in making decisions and as backup
to decisions.)
Year-End Process and
Report Schedules
• What does “year-end” process mean?
• What happens to my account balances?
• How are new billing rates set for:
–
–
–
–
fringes;
small tools;
shop overhead;
gravel or bituminous products?
• Where are approved budget monies?
Year end process and report
schedules (Cont’d)
• What schedules are important to
management (Commissioner)?
• What schedules are important to
WisDOT?
• Resources:
– County staff (Office Manager/Accountant)
– County audit firm
– WisDOT staff (Cassandra Hebert)
– WisDOT regional staff
– Other counties
Accounting 101
• “Accounting” defined:
- A system of analyzing and recording business
and financial transactions, and then…
- Analyzing, reporting and verifying the results.
• “Accounting period” – time frame for
recording financial transactions (both
month-end and year-end)
• “Accounting cycle” – steps needed for
recording of financial transactions (The
“How to Manual for Highway Accounting”)
Accounting 101 (Cont’d)
• Highway accounting – performed by office
manager/ accountant, and then transmitted to
County Clerk’s office for “Official Recording”
• Highway Financial Report – prepared by
office staff, and then verified by County
Auditor (Schedules are part of County Financial
Report, submitted to State and used for
reimbursement by both Departments of Revenue
and Transportation)
Highway Financial Reports
• Required by Wis. Statutes 83.01(7)(d) to
make annual report to WisDOT and county
board on expenditures made and estimate
of ensuing year’s maintenance costs.
• WisDOT required report schedules –
Annually required to complete 22
schedules that support operations and
maintenance of highway department.
(WisDOT Highway Maintenance Manual,
Chapter 02-30-15)
22 WisDOT-Required
Schedules
• 1-Buildings & Grounds
Ops.
• 2-Highway Administration
• 3-Other Administration
• 4-Fuel Handling
• 5-Shop Operations
• 6-Year-End Shop
Overhead
• 7-Operation of Equipment
• 8-Current Year
Depreciation
• 9-Bituminous Operations
• 10-Pits & Quarry
Operations
•
•
•
•
•
•
•
•
•
•
•
12-Buildings Inventory
13-Machinery Inventory
14-Machinery Purchased
15-Machinery Traded-In
16-Machinery Sold
17-Machinery Discarded
18-Fringe Benefit
Analysis
19-Field Small Tool
Account
20-Materials/Supplies
Anal.
21-Accounts Receivable
22-A/R-Due from State
General Ledger Accounts and
Account Balances
• Balance sheet accounts carried forward
include:
– Asset accounts (what you own – buildings,
equipment, cash, receivables, etc.)
– Liability accounts (what you owe – payables,
etc)
– Equity accounts (what you are worth)
General Ledger Accounts and
Account Balances (Cont’d)
• Income statement accounts closed out
for current operations include:
– Revenue accounts (money collected for
services provided)
– Expense accounts (money spent on providing
services or operations)
Billing Rates
• Fringe Benefit Rate – Payroll related costs
associated with highway employees
(vacation, sick, holiday, insurances, etc.)
• Small Tool Rate – Cost associated with
inexpensive equipment used on multiple
field projects and cumbersome to itemize
• Shop Overhead – Cost associated with
operating the highway shop (Indirect labor
and fringes, supplies, tools, building cost)
Billing Rates (Cont’d)
• Gravel Products – Cost associated with
operating gravel pits and quarries (Labor
and fringes, equipment used exclusively in
the pit, supplies, etc.)
• Bituminous Products – Cost associated
with operating bituminous plants (Labor
and fringes, equipment used exclusively
for production of mix, supplies, etc.)
Note on Billing Rates
• Calculated rates are required to be billed
to WisDOT
• Calculated rates are not required to be
billed for non-WisDOT work (county
could set rate higher or lower than
calculated)
• BETTER UNDERSTAND WHAT BILLING
LOWER THAN CALCULATED RATE
MEANS TO YOUR FINANCIAL
Approved Maintenance &
Construction Budget Money
(Different Recording Options)
• Option #1
– Approved county tax levy forwarded to
highway at start of new year. Recorded by
highway in general ledger, and money spent
throughout the year. Remaining balance at
year end stays in highway accounting ledger.
Approved Maintenance &
Construction Budget Money
(Cont’d)
• Option #2
– Approved county tax levy recorded by county
clerk in transportation account. As money is
spent throughout the year, the balance is
drawn down with revenue recorded in
highway general ledger. Remaining balance
at year end stays in county transportation
account for future highway spending.
Financial Schedules for
Commissioner
• What schedules are important to the
Highway Commissioner? (All are
important as they reflect your highway
operations for the year!)
• Significant schedules include:
– Maintenance Accounts (State RMA budget,
County tax levy, Local tax levy)
– Building & Grounds & Radio Operations
(WisDOT reimbursable)
– Machinery Operations (Used as funding
source for equipment purchases)
•
Financial Schedules for
WisDOT
What schedules are important to
WisDOT?
• Significant schedules include:
– Machinery Operations (Used to establish
equipment rates)
– Building & Grounds and Radio Accounts
(WisDOT reimbursable)
– Non-State Maintenance and Construction
Accounts (Reimbursable for General
Transportation Aids)
– Fringe and Small Tool Accounts (Used to
establish billing rates that require approval by
Who to contact with Questions?
• For explanations, questions or concerns
on accounting or financial information in
highway accounting system, contact:
– County Staff (Office Manager or Highway
Accountant)
– WisDOT Regional Staff
– Other Counties
– WisDOT Staff (Cassandra Hebert, Doug
Meek, or Mark Woltmann)
Highway Statutes of Reference
• Chapter 30 Navigable Streams
• Chapter 32 Eminent Domain
• Chapter 59 Counties
• Chapter 60.557 Reimbursement for fire calls on Highways
• Chapter 66 Sub-Chapter IX public works & Projects
• Chapter 66.0301 Intergovernmental Cooperation
• Chapter 66.0627(1) Special Charge on Tax Bill
• Chapter 66.0407 Noxious Weeds
• Chapter 66.1031 Widening of Highways
• Chapter 66.1033 Curative Provisions
• Chapter 66.1035 Rights of Abutting Owners
• Chapter 66.1037 Beautification & Protection
• Chapter 66.1003 Discontinuance of a Public Way
• Chapter 82 Town Highways
• Chapter 82.03(1)(a) Town Hwys-“Passable”
• Chapter 82.05(3) Town Hwys-Passable a-s-as-practical
• Chapter 83 County Highways
• Chapter 83.42 Rustic Roads
• Chapter 84 Trunk Highways (State)
• Chapter 84.17 Bridge Inspections Requirement
• Chapter 85 WisDOT
• Chapter 86 Miscellaneous Highway Provisions
• Chapter 86.02 Misc. Hwy Prov – Injury to Highway
• Chapter 86.03(1) Removal of Fallen Trees
• Chapter 86.04 Highway Encroachments
•Chapter 86.06 Highways Closed to Travel; Penalties
• Chapter 86.105 Contract for Snow Removal
• Chapter 88.68 Construction/Drains Across Highways+
• Chapter 88.87 Road Grades not to obstruct drainage
• Chapter 88.89 Roads not to obstruct watercourse
• Chapter 91 Farmland Preservation-Ownership
• Chapter 101 Dept. of Commerce-Various Regulations
• Chapter 102 Workers Compensation
• Chapter 103 Employment Regulations
• Chapter 106 Equal Rights
• Chapter 108 Unemployment
• Chapter 295 Non-Metallic Mining
• Chapter 342.40 & 346.94(13) Removing Vehicles
• Chapter 343 Operators’ Licenses
• Chapter 343.05(4) CDL – Exemptions
• Chapter 345.05 Municipal liability for vehicle accidents**
• Chapter 346.05 Exceptions to driving on the right
• Chapter 346.072 Passing stopped highway machinery
• Chapter 346.27 Persons working on highway
• Chapter 346.51 Stopping, standing, parking outside
business
• Chapter 346.57 Speed Restrictions
• Chapter 346.915 Snowplow following distances
• Chapter 346.94(5) Injurious substance on hwy (snow)
• Chapter 346.95 Penalties for debris on hwy (snow)
• Chapter 347.45(2) Prohibited Tire Equipment
• Chapter 348 Vehicle Size, Weight & Load
• Chapter 349 Local Authority-Vehicle Powers
• Chapter 349.11 Setting speed limits
• Chapter 349.15 Modify Weight Limits & Classify Roads
• Chapter 349.16 Special/Seasonal Weight Limits
• Chapter 893.83 Claims Against Gov’ts – Hwy Defects**
• Chapter 943.01 Damage to Property
Highway Administrative Codes & Rules of
Reference
TRANSPORTATION – Administrative Codes
•
COMMERCE
• COMM 8 Mines, Pits & Quarries
• SPS 332 Public Employee Safety & Health (Comm32)
• COMM 45 Mechanical Refrigeration
DEPARTMENT of WORKFORCE DEVELOPMENT
• DWD Chapter 80 Workers Compensation (WC)
• DWD Chapter 81 WC – Treatment Guidelines
• DWD Chapter 82 WC – Mining Damage Claims
• DWD Chapter 290 Public Works (PW) Contracts
• DWD Chapter 290 PW Contracts - Appendix A
• DWD Chapter 293 PW Payment & Performance Assurance
• DWD Chapter 294 PW Debarment Contractors
DEPARTMENT of NATURAL RESOURCES
• NR 102 Water Quality Standards for Surface Waters
• NR 135 Non-Metallic Mining Reclamation
• NR 151 Run-off Management
• NR 40 Invasive Species
• NR 300 Time Limits/Fees re: Waterway Permit+
• NR 320 Bridges & Culverts-Navigable Waterways
• NR 341 Grading-Banks of Navigable Waterways
• NR 345 Dredging Navigable Waterways
• NR 350 Wetland Compensatory Mitigation
ST. CROIX COUNTY ORDINANCES
• ORDINANCE 17.60 County Highway Setbacks
• ORDINANCE 17.65 County Sign Regulations
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
• TRANS RR1 Rustic Roads
• TRANS 75 Bikeways & Sidewalks in Highway
Projects
• TRANS 200 Erection Signs on Public Highways
• TRANS 200 Signs – Appendix A - Spec. Info. Sign
Hwys
• TRANS 200 Signs – Appendix B - Service (B/W)
Signs
• TRANS 200 Signs – Appendix C - TODS Signs
• TRANS 200 Signs – Appendix D – Gen. Dir. Guide
Signs
• TRANS 202 Wisconsin Scenic Byways
• TRANS 204 Town Road Standards
• TRANS 205 County Highway Standards
• TRANS 206 LRIP
• TRANS 207 Bridges & Culverts
• TRANS 213 Local Bridge Program
• TRANS 214 Town Road Bridge Standards
• TRANS 220 Utility Relocation
• TRANS 230 Permits for Oversize/Overweight
Loads
• TRANS 231 State Highway Driveway Permits
• TRANS 250 Oversize & Weight (OS/OW)–Size &
Weight
• TRANS 276 OS/OW - Vehicles & Combinations
• TRANS 278 OS/OW - Exceptions
• TRANS 277 Salt Storage
• TRANS 280 Roadside Vegetation Management
• TRANS 307 Standards for Load Securement
• TRANS 510 TEA Program
• TRANS 515 Contractual Service Procurement
Questions?
???????