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COLORADO STATE PUBUCATIONS UBRARY 3 799 00141 950 1 The 994 Annual Report of the 1 Division of Central Services Department of Administration 1994 Fiscal Year 1993-1994 ended June 30, Jat:k E. Keene, DirertorofCentral Services Division ofCentral Services 225 East 16th Avenue, Suite 800 Denver, CO 80203 Division of Central Services The 1994 Annual Report of the Division of Central Services Department of Administration Fiscal Year 1993-1994 ended June 30, 1994 jack E. Keene, DirectorofCentral Services This annual report is published pursuanttothe requirementofColorado Revised Statutes 24-30-1109. All aspects ofthe design and production ofthis annual report have been accomplished bythe employees ofthe Division ofCentral Services. December 1, 1994 Division ofCentral Services 225 East 16th Avenue, Suite 800 Denver, CO 80203 (303) 866-3970 FAX: (303) 894-2375 1 Annual Report 1994 ' ' •' ••.(.-’itr¥'^*'' •fi'ji!!!- ^ s' i ,. ’’ ' '‘STins-f^ i. „ A*. «':! ' • ^ ’• [< =•>,- ^^ . . . ^;;t'’f:.'m • • ' ‘ ‘ . v-^>r •r: ft- u* *“ V ;<» ..^ ^>-Wo ' .'->1 •• '. »•*- /-tj’ . i' Wpt<‘'4*». t< '' ,^' - • ', ”r^/•'• *. ,. " - • I Vi - 1 Ml •. ’. --‘f, . * ‘rf* ^7 \j 'F* »-'r., --f ^ *% r£. ,. / •* ^ 4.1 * -i . , {5^-, rFrA ° ,%-/ V m :iK ,-, f , ^ » » ^ » "annual Report 1994 Division of Central Services DIRECTOR'S MESSAGE Fiscal Year 1993-1994 was a very successful year forthe Division. The Division had revenues of$22,670,919 that resulted in a favorableyearend position. During the year, the Division's operations saved the State approximately $1 7,231,152. The Division played a significant role in the statewide issues offleet management, travel, and collections. The Division's customer service and quality assurance programs continueto address changing customer needs. Further, the Division's ongoing commitmentto total quality management has yielded results from some forty-three Quality Improvement Projects, makingthe Division a leader in its pursuit ofquality. Several highlights ofthe pastyear indicate the activities ofa busy year. The State Fleet Management continued to implement SB92-40, which provides forthe consolidation ofthe management of all State vehicles. The Statewide Travel Management Program continued to implement SB93-250. Travel rulesweredeveloped and adopted. Policies were changed to permitcash advancesfrom automated teller machines. During the year usage ofthe program grew by 15 percent. In Mail Services, the barcoding system processed more than six million pieces of letter mail. The mail management system and the billing module were revised and expanded. More than 2 million pieceswere processed on the Moore Self-Mailer. Central Collections had an excellent year. The section collected a total of $10,435,866. This represents a 14 percent increase over the previous year. The increase in dollars collected was $1,458,223. In summary, the Division has again performed beyond expectations. I would like to extend mythankstoour employees as they continueto meetthe challenge of new programs, increasing customer demands, and higherquality standards. This annual report is intended to meetthe requirements ofthe Colorado Revised Statute 24-30-1109 and is authorized forthatpurpose. jack E. Keene DirectorofCentral Services December 994 1, 1 3 Annual Report 1994 - mmmmmmmmmmmm » » » » » » m 0 0 » I « « ^ ^ 4S 4t ^ <@ « « « « « « 1. 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JnwiMem/rrftom R»-misiHil jttll^ni rbE arltno bw23>oiq:»»y/i3X*qf&fJim S. ij^l to i§Jof rbtir^sllconotos2afr .ifesy htâv3tfi»iioO lîirw^ M •<iT Hay ox>v9iq crdi’HVc ô-nj." /nscn^^ «i >Hfc|9i *kfr-,3d8,cfV<1f1 i1 fi 2fcvy bsti^lcomiktoni 52Wi3m‘ V ' ofwlaMufiltoWwag‘nNs/il1n«fVb)«ifil&fDteoq«,<*n5obrn?^trornaidJnbO^Df^mobaaif^n»i9tg^ry.o^2bq/n1«fuKj*o<doyf»QdaawblJ,yy^^mavbotvtjMtxnl^ ibHbfUfa ylthaîpi&rljklbni^«nr»0 wnKitfaiognbBflrjfn ,2mffifnq ^ b^tNffôbBV'ioD9 X- 'Jfwn^lupaivfffs$moiboboamla$^nocfsiIsunoB «r<T .9M)^tjqisHL* ’0? hwncûB2Ibnt 'f•Of4‘i; jjtfsii 9re<4 îbul J ih'fy>0i fo Kf.'i'irO i - i ^ ^ ^*" .» * .aR lb -: - sit %: ->... • -il«:li-E ;.j « t."• *••*>^4' '.ite- 4 # « ^ ^ Annual Report 1994 Division of Central Services PART INTRODUCTION I, 1 Profile Division responsibilities include the approval ofall service equipment acquisitions and staffing patterns ofservice The Division ofCentral Services, a statutory division, functions maintained by State agencies in thefour-county transferred by a type 2 transferto the Department of service area. Funding is earned by charging user agencies Administration and originally organized in 1976, for goods delivered and services rendered. State law maintains its headquarters at 225 East 16 Avenue, Suite requires thatall such user charges be made at competitive 800, Denver. The Division's primary purpose isto furnish rates. As a revolving fund agency. Central Services support services to other agencies ofthe executive branch receives no appropriated funds ofany kind; the Division — — ofState government. Enabling legislation is contained in operates as any enterprise does within the constraints Colorado Revised Statutes 24-30-1101. Priorto its of its earnings from the sale ofgoods and servicesto other legislative creation in July of 1977, the Division operated State agencies. by authority extended through an executive order dated February 17, 1976. To achieve these missions, the Division plans, coordinates, controls and/orfurnishes support services through what This annual report has been prepared and distributed may be described broadly as two types ofprograms: pursuantto the provisions ofColorado Revised Statutes consolidated service programs and management 24-30-1109. It reflects Division operations during Fiscal programs. Year 1993-1994. Consolidated service programs are those in which Central Services furnishes a good orserviceto its customers. Two examplesofthis typeofprogram are the State Print Shop 2 Mission and goal and the State Motor Pool. In management programs Central Services oversees the purveyanceofa service by The Division has a two-part mission. Most apparent is the mission to furnish commonly used support services to another supplier. Often the Division's role is one of contract administration/enforcement. Examples of agencies ofthe executive branch ofState government management programs includethe Statewide Travel located in Adams, Arapahoe and Jefferson counties, and Management Program, theCopier Management Program the City and County of Denver. Support services currently and the SER Program. offered include: printing and bindery, quick copy services, mail processing and messenger services, microfilm exposure and duplication, graphic design and Thegoal ofthe Division ofCentral Services is to reduce the State's costfor commonly used support services. The typographic services and fleet management. State Fleet means ofachieving the Division's goal are always Management also operates a motor pool, vehicle repair evaluated by a cost benefit study before any management service, and itvends motor fuel. Central Services creates State employee identification credentials, the State of decision is considered. Alternatives considered are: leaving the existing service structure intact; consolidating Colorado Telephone Directory and an organization chart theexisting service structurewith thatofthe Division or ofState government entitled "Organization ofState some other government service structure; creating a new Government in Colorado." Sincethe beginning of 1988, service structure; and, privatizing—contracting with the Central Services has also managed the Central Collection commercial sectorforthe needed service. Service forthe Division ofAccounts and Control. Central Collections recovers debts owed the State pursuantto Additional goals include controlling the proliferation of Colorado Revised Statutes 24-30-202.4 et seq. service equipment and operating personnel or planning rates ofequipment proliferation that are consistentwith Simply furnishing commonly used support services is not planned growth goals. The measurementofbenefits to the sole justification for Central Services. Effective management ofthe service resources ofthe State of Division customers is very straightforward in our consolidated service programs. Benefits are measured in Colorado is the Division's second mission. Central terms ofcost, delivery time, and quality ofthe good or Services is charged by statute to establish central planning, service furnished by the Division. control, and coordination ofservice activities. The Division has established several management programs: the Statewide Travel Management Program, the Office In management programs monetary benefits are delivered to the State; benefits to individual State agencies are less Copier Management Program, and the Service Equipment evident. Such benefits can sometimes be gauged in terms Request Program. 5 Annual Report 1994 Division of Central Services PART INTRODUCTION I, offiscal measurements, butoften require assessment in The Customer Relations Program trains and motivates less tangible terms such as: Central Services' employees to satisfy our customer's needs. An orientation program provides customer a. Fraud prevention and control. relationstrainingfor all new Division employees. In b. Cost avoidance. addition, on-going customer relations training is provided c. Recirculation ofStatefunds within the for Division employees. To motivate employees, the governmentframework. Division ofCentral Services' Awards ofMeritwas d. Increased levels ofservice availability. established nine years ago. The awards recognize and e. Ancillary savings implied byfurnishing a reward those employees committed to quality service and particular service. Intensive document performance excellence. microfilming, for example, implies cost avoidance in the areas offile cabinets, records Early in 1983, Central Services established an advisory warehousing facilities, and custodial personnel. Customer Panel. Panel members serve as a channel for feedback from State agencies and as a conduitforthe dissemination of information to Division customers. Many valuable suggestions have been presented by panel 3 Customer service members and our customers. Central Services believes The Division ofCentral Services is dedicated to providing that our customers are a valuable resource for productand quality service to its customers. Several programs have service design. been implemented to increase the quality ofservice and customer satisfaction. Quality control programs regularly monitor and control mechanisms within each operating unitof Central Services that verify product and service Division of Central Services' levels. The Quality Assurance Program determines customer satisfaction levels through a vigorous program of Customer Service Policy written and oral surveys which are conducted periodically. We guarantee that our customers must Once a good or service has been delivered, our Customer BE COMPLETELY SATISFIED WITH OUR Service Program insures that the customer is satisfied by standing ready to resolve any complaints. PRODUCTS, OR WE WILL REPLACE THEM AT NO COST OR REFUND THE PURCHASE PRICE. We guarantee that our customer must BE COMPLETELY SATISFIED WITH OUR SERVICES If the SERVICE YOU RECEIVE DOES NOT MEET WITH YOUR SATISFACTION, NOTIFY US AND WE WILL MAKE IT RIGHT. We will listen. All customer inquiries WILL BE ACKNOWLEDGED WITHIN TWO BUSINESS DAYS OR LESS. We are DEDICATED TO SATISFYING OUR CUSTOMERS. Should you have any QUESTIONS OR PROBLEMS, PLEASE CONTACT Central Services' Customer Service Representative. 6 Annual Report 1994 Division of Central Services 4 PART INTRODUCTION I, Total Quality Management c. OfficeCopier Management Program, During the pastyear, the Division revised its Total Quality d. 2Q2u5icEkasCto1p6yACveenntueers,:Suite 801, Denver. QPuraolgirtaymCtoounicmiplrowvaesimtsoerfefescpteicviefniecsasl.lyTdheefiRnoelde.oTfhtehe 21.. 11532153 SShheerrmmaann SSttrreeeett,, RRoooomm B1--1B01,9,DeDnevnevre.r. QualityCouncil is responsibleforthe development, 3. 201 EastColfax Avenue, Denver. implementation, and on-going administration ofthe 4. 1575 Sherman Street, Room G26, Denver. quality process. e. State Motor Pool, 1555 Sherman Street, Denver. The Quality Council has developed a Quality f. Design Center, Improvement Proposal (QIP) form which employees may 225 East 16 Avenue, Room 801, Denver. use in submitting suggestions to the Council. Suggestions g. State Microfilm Center, may befor both Division or Unit improvementofjob 1001 East 62 Avenue, Denver. efficiency, employee morale, customer relations, increased h. State Fleet Management, prreodduuccetidvictoys,t,ianncrdeapsoesdsiqbulaeliTtQyMoftperaomdsu.ctor service, 6i. S1ta0t0e1GEaarsatg6e2,Avenue, Denver. 1001 East 62 Avenue, Denver. Each QIP will be evaluated by the QualityCouncil, and Central Collection Service, j. t5he person making the QIP, will receive a letterthanking 225 East 16 Avenue, Suite 550, Denver. them for itand indicatingthe action taken on the k. State Travel Management, suggestion. The Council will forward the QIP, withoutthe 225 East 16 Avenue, Suite 800, Denver. name ofthe maker ofthe suggestion, to the manager(s) of North Campus, l. the unit(s) and recommend the typeofaction to betaken. 1001 East 62 Avenue, Denver. QIP forms are available from your Quality Council Representatives, and they are also prominently displayed Other instrumentalities ofthe Division are: the State of in work areas. Colorado Telephone Direaory, "Organization ofState Government in Colorado" chart, and State ofColorado Employees are encouraged to submit QIPs. Each person Diners Club CorporateCard System. In addition, the submitting a QIP will receive a pen with the Division's Division issues State ofColorado employee identification Quality Logo on it, and the person who submitsthe best credentials usable by all State government agencies. All of QIP forthe month, as determined by theCouncil, will these activities operate out of Division headquarters receive a coffee mug with the Division's Quality Logo located at225 East 16 Avenue, Suite 800, Denver. on it. The Quality Council received and implemented 29 Quality Improvement Proposals. They sponsored 24 TQM Employees teams, and Fleet Managementconducted five teams. The During the year. Central Services had 136.3 full-time units also completed 19 Quality Improvement Projects. Equivalent (FTE) employees on board. Minority status is claimed by 43 employees, or 31 percent, ofthat number; The betterQIPs for the six-month period are submitted for 20 employees are female and 23 male. It should be noted the Awards ofMerit Suggestion Awards. thatthe 31 percent minority status ofthis division exceeds the demographic distribution of minorities in the State's total population. A listing ofall employees asofthedate Operating names and locations ofthis report and theirjob skill classifications is included in theappendix ofthis report. Central Services' operates under the following name and titledesignations at the locations specified. Listings reflect locations ofoperations as ofthe lastday of Fiscal Year 1990-1991. a. Mail Services Section, 1525 Sherman Street, Basement, Denver. b. State Print Shop, 1001 East 62 Avenue, Denver. 7 Annual Report 1994 Division of Central Services 7 PART NOTES AND FINANCIAL STATEMENTS II, Summary of significant accounting policies revenue it generates. Its funding structure is in no significantway dissimilartothatofCentral Services. This In order to insure observance of limitations and restrictions similarityoffiscal structures was amongthe reasons forthe placed on the use offiscal resources, by rule and statute, assumption ofCCS' management by Central Services in all accounts are maintained bythe Departmentof 1988. Administration for Central Services in accordancewith the principles ofaccounting specified in Colorado Revised Statutes 24-30-202(12). The accounting prartices ofthe 8 Revenue recognition Department conform strictlyto those specified bythe In governmentaccounting, expenses and revenues are Controller. Resources intended for various purposes are reported in the period in which they are earned or classified, according to the principles offund accounting, incurred. All revenue for services performed or for goods into funds that operate in accordance with specified delivered before the closeofthe fiscal year is recognized activities or objectives. The accrual basis ofaccounting is in the reporting forthatfiscal year. Revenue is recognized followed. whether or not it is collected and whether or not its collection datefalls within the fiscal year in which earned. Central Services receives no aaual funds from the General Aposrsteimobnlyo.fthInestreeavde,nuitesr,ecweihveens aanndauitfheoarrinzeadt,iognenteorsapteenddbay 9 Indirect costs the sale of Division services to other government agencies. Central Services recognizes two levels ofcontribution to Central Services is a statutory revolvingfund (Colorado administrative/management costs: Revised Statutes 24-30-1108) which operates within the a. Operating units contribute to Central Services' confines ofthe revenue itgenerates. Users of Division overhead administration, rent, interest, and other services are charged the full costofall materials, labor and expenses. These expenses are captured as "DCS overhead attributable to the service used in accordance Overhead" in the profit and loss statements ofeach with Colorado Revised Statutes 24-30-1108(2). Prices operating unit. The contribution liability isdetermined charged by all ofthe Division's operating units are for each unit bythedirector. competitive with those ofprivate industry as required by b. The Division contributes to StateWide Indirect, which Colorado Revised Statutes 24-30-1108(3). is developed bythe Division ofAccounts and Control in accordancewith federal guidelines, recommended Attimes, the limitation ofthe authorized spending to thejoint BudgetCommittee, and approved by the authority by the General Assembly has resulted in the General Assembly. Division's inability to meetState agencies' needs for services because of unanticipated increases duringthe 10 Depreciation fiscal year in the costofgoods, such as paper, postage, General fixed assets are recorded as assets atthe time of automobiles, gasoline, repair services, and microfilm acquisition. Depreciation is then computed and recorded supplies. as currentexpense. Assets are carried at actual costand depreciated on a straightline basis over the useful life Therefore the Division intends to requestthatthe General spans prescribed in guidelines promulgated bythe Internal Assembly amend its statute so that,"When the cost of Revenue Service ofthe United States Government. goods sold by the Division ofCentral Services, including but not limited to the costofpaper, postage, and gasoline, increase unexpectedly during a fiscal year, the Division of 1 1 Service Equipment Request Program Central Services is authorized to expend cash exempt Under provisions ofColorado Revised Statutes 24-30- funds beyond the appropriation contained in the annual 1105(1)(a),(b),(e),(f) and 24-30-1107, the Division of appropriation bill to the degree necessary to meetthe Central Services is responsible for reviewing and service needs ofState agencies. Such expenditures shall be approving requests by other executive branch agencies for reported in advance to the State Controller, the State service equipment. Such equipment is related to the Office of Planning and Budgeting, and the Legislative Joint Division's service mission. The Service Equipment Budget Committee." Request Program dischargesthis responsibility. Specific approval procedures are contained in Fiscal Rules, chapter Thefunding structure ofCentral Collection Service is 3, section 1.35.09. The approval process takes into described in Colorado Revised Statutes 24-30-202.4(3)(d) account cost effectiveness and efficiencies required by and (e). Like all other Central Services' operating units. statute. Central Collections operates within the confines ofthe 8 Annual Report 1994