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HomeMy WebLinkAboutORDINANCE 1498-1992~. O J ~7 Suggested by: Administration City of Kenai ORDINANCB NO. 1498-92 • C7 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AMENDING KMC 23.40.020 TO PROVIDE FOR MONTHLY PAYMENT OF HOLIDAY PAY FOR CERTAIN CITY EMPLOYEES. WHEREAS, the State of Alaska, Division of Retirement and Benefits hae completed an audit of the City's PERS accounting and reporting system, and has determined that payment for holidays should be made monthly in order to be in compliance with AS 39.35.170; and WHEREAS, in accordance with the City's personnel ordinance, Public Safety and Sewer Treatment Plant employees have been paid for holidays in December of each calendar year; and WHEREAS, the City's personnel ordinance should be amended to comply with State statutes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that KMC 23.40.020 is hereby amended as follows: 23.40.020 Holidays: (a) Employees shall be ._,_ entitled to the holidays listed below with pay. Full- time employees shall receive regular compensation; part-time employees shall be compensated in proportion to the number of hours they are normally scheduled to work. (1) New Year's Day (2) Washington's Birthday (the third Monday in February) (3) Memorial Day (the last Monday in May) (4) Independence Day (5) Labor Day (6) Alaska Day (7) Veteran's Day (8) Thanksgiving Day (9) Day after Thanksgiving (10) Christmas Day (il) A floating holiday subject to individual choice of each employee with five (5) working days notice to, and approval of, his itmnediate supervisor. (b) If any such holiday falls on a Sunday, the following Monday shall be given as a holiday. If such holiday falls on a Saturday, the preceeding Friday shall be given as a holiday. .. ... .. - }~ Ordinance No. 1498-92 Page Two 0 (c) Public 3afe~y and Sewer Treatment Plant employees .who normally work holidays shall receive jIN DECEA~BERj a monthly payment for authorized holidays at 1-1/2 times: their normal hourly pay [(FOR THAT PORTION OF THE CALENDAR YEAR DURING WHICH THEY WERE EMPLOYED)] as follows s Fire (~6 ~our(Sj week) - 11.2 hours pay per holiday. Fire, Police and Dispatch (40-hour week) - eight (8) hours pay per holiday. Sewer Treatment Plant Employees (40-hour week) - eight (8) hours pay per holiday. Holidays which occur during vacation shall be charged against such leave. (Ords. 336, 482, 537, 614, 639, 1044, 89-1347) PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of June, 1992. ^ +/ \' 7 /1 • ATTEST: MAYOR Carol L. Frees City Clerk Approved by Finance: (5/14/92) kl Introduced: May 19, 1992 Adopted: June 2, 1992 Effective: July 2, 1992 • 1 ~ RECEIVED MaY 1 4 1992 • .State of Alaska DIVISION OF RETIREMENT AND BENEFITS P.U. Box 110243. Juneau. Alaska 99811-0243 CITY OF KENAI t Audit Conuoi Number: edit Repot ~~ ~' t wrww~r~w~w~www~rw.rwwwAr.~wwwww~w.~wwwwww.~anwwwww~~www.. AUDIT REPORT DIVISION OF RETIREMENT AND BENEFITS The auditor is responsible for providing the division, employer's and retirement system's external auditors with compliance audits of employers participating in the State of Alaska's retirement systems. The retirement systems contain almost $5 billion in assets, assigned to future benefits. The auditor assures that membership in the system is appropriate and reporting of the employer is accurate. As a guide to all work, the Division of Retirement and, Benefits Audit position complies with generally accepted auditing standards established by the American Institute of Certified Public Accountants, with government auditing standards established by the U.S. General Acc©unting Office and the State of Alaska, statutes and regulations establishing and governing the retirement systems. RETIREMENT & BENEFITS MANAGEMENT: r~~wwwwr~ww~www.~.~w w.~w Gary Bader, Director Bob Stalnaker~, Deputy Director Jerome Walkush, Accounting Supervisor Bill Church, Retirement Supervisor Katherine Gouyton, Division Auditor C7 Audits are performed at the direction of the Director of the Division of Retirement and Benefits and the Commissioner of Administration.Individual members and employers can submit requests for audits of specific programs and problems. DEP ~a~Nr of ADMmv~s~,~oN . OlVtS/ON OF RETIREMENT ANO BENEFITS Mr. Charles Brown Finance Director. city of xenai WALTER J. HlCKE~, QOVERNOR Prr.~ASF REPCr ro: o po. eoxca .wMSwu. ~K e9~ei ~•o~ FAx: r~~ ~. © 7Qf EA$T TlJ40ff RA, SufrE 210 AAIQHORAQE, AK 095Q3.74t6 PHONE: (90?j 5E.3.6a6Cs FAx: (907) 66f-60~f8 Employer of the State of Alaska Retirement Systems Public Employee's Retirement System (PERS) Teacher's Retirement System (TRS) Judicial Retirement System {JRS) Elected Public Officers Retirement System (EPORS) National Guard and Naval Militia • Retirement System (NGNMRS) Supplemental Benefit's System (S8S) The attached report is submitted for. your review under the authorization allocated the division by AS 39.35.070, and 02 AAC 36.840. . COMPLIANCE AUDIT CITY OF KENAI PUBLIC EMPLOYEE'S RETIREMENT SYSTEM April 28, 1992 Audit Control Number P-15 • The audit was conducted in accordance with generally accepted governmental performance/compliance auditing standards. Audit scope and methodology are discussed in the Report bjectives, Scope, and Methodology section of this repot Katherine Gouy on Division Auditor 02•B4f.,H Non: Plttae include Yqur 8c~da1.3ecuriiy Number In Ali Correspondence and Requests C ntu Berwl; . oncem~np Y ~ ,+ f ~ ~ t ~ r ~.. . U TABLE OF CONTENTS index ..~.___ Report Objectives, Scape, and Methodology............ 1 General Employer Information ......................... 2 Auditor's Conclusion ................................. 3 Closing Comments.. ................................... 4 Employer Response Document: • City of Kenai ................................... 5 --- ~ ~ ~ _._.. u ._ _._ ._ _ ~. -. ~... .. • REPORT OBJECTIVES, SCOPE, AND METHODOLOGY rr~~r r.rr~rrr..rrr r~rrrrrrw.rrwr~.rrrrr.. ~.r w~. ~. !n accordance with AS 39.35.070 of the Alaska Statutes and 02 AAC 36.840 this report was prepared to evaluate the City of Kenai's compliance with submitting accurate information to the Public Employee's Retirement Systems (PERS j . Objectives: ----------- The report primarily focused on three general objectives. . 1. To review policies and procedures used in including or excluding employees in the retirement system. 2. To identify problems in compliance with the retirement systems statutes and regulations. 3. To identify solutions for these problems. • Scope and Methodology rr rr rrrr..r~rrrrrrrrrr The scope focused on procedures used in processing the records and reports submitted to the retirement system. The following procedures were used to evaluate compliance: a.) establishing employees included and excluded from submitted material; b.) confirming eligibility of included employees; c.) confirming the ineligibility of excluded employees; d.) confirming the accuracy of material submitted; The audit included review of payroll and personnel processes of the City of Kenai. Selected employee payroll processing, personnel files, and position descriptions were reviewed. Compliance with statutes, regulations and the employers contract were evaluated. • ~: .... . .. t GENERAL INFORMATION:~ Date of entry to the $ERS: July i, 1969 Totial fiumber of employees included in the PERS reporting: 96 Types of employees included: full-time. part-time, elected offiafals. Total number of employees excluded from the PERS: l0 -. Types of employees excluded: temporary, contractual, Additional contract admendments: none • • F, __1, ' ` ~.. •' 1. .,., r :.: .. .- ' `' ~., z CJ AUDITOR'S CONCLUSION CITY OF KENAI w w w r w w w w w r w w ~w r w w w w w The examination consisted of a review of the city's payroll transactions for the months of December 1991 and March 1992, with additional months reviewed for reporting eligibility of part-time employees. Supporting documents were reviewed to assure wages reported were paid, and personnel information was accurate. Given below are problems identified and solutions proposed: Problem 1. PERS Reporting Reconciled The City of Kenai's payroll transactions for the period indicated above, reconciled to the PERS turnaround reports and the monthly report of contributions with few exceptions. These were found to be employees who were either working in temporary positions or in fobs with insufficient hours to meet PERS membership qualifications. AS 39.35.680(37) defines a 'seasonal employee' as...."refers to an employee who is occupying a position for less than 12 months each year where it is anticipated that the same employee will return to the position when needed"; It appears the city may be employing some individuals who would meet the definition of 'seasonal'. Proposed Solution: rwwwwrww.rwwww~.. w..w The special summer and winter temporary hires should be reviewed to see if these 'temporary' positions are evolving into 'seasonal' positions. Sf they are reoccurring and budgeted every year, and the same employee is occupying the position every year, you may have a seasonal position, which is eligible for inclusion in the PERS. Problem 2. Year End Holiday Pay AS 39.35.170 discusses 'Employment Contributions Mandatory' it reads in part "payment of an employee's compensation, less payroll deductions, is a full and complete discharge and satisfaction of all claims and demands by the employee relating to renumeration of services during the period covered by the payment, except with respect to the benefits provided under the system". Monies earned during a given period of time cannot ' for purposes of reporting to the PERS' be deferred into a different time period. Wages earned for working holidays needs to be paid during the holiday reporting period. " , .. ., . Proposed So~.utfon: www~w~wwwwwrw.ww.~www For purposes of reporting. to PERS, report monies timely for the pay period they are related too. D4 Noy, defer holiday earnings to a lun-p sum year end payment. e • `J .. .. r _ ., . _ .,, ., ,. .. .. ,, ~. • CLOSING COMMEI~ITS ww ww www..wwwwwww~ • I want to thank you for tre assistance I was given in performing this review. It was a pleasure being able to meet and work with all of your staff. Elected Officials: w w w w..+ w w w w w ww w ww w w Elected Officials of the City of Kenai are currently either participating in the PERS or have 'Waiver's of Participation' on file with this office. • Suspense File Maintenance: wwww~.wwwwwwwwwwwwwr~www-www The city's current suspense file balance is $ 126.55. These are monies and service credit which have not been posted to employee accounts. This is an inception to date of enrollment balance, which is very low. In the next few months we will make an attempt to look at when this balance originated and assist you with posting these dollars. It is obvious that a lot of care is and complete information to the PERS. or require additional information I Once again, thank you. being made to report accurate Should you have any questions can be contacted at 465-4460.