Council of Fiscal Officers Meeting September 29, 2011.

Council of Fiscal Officers Meeting

September 29, 2011

Agenda – Core-CT

• Core-CT• - PO and Requisition Reconciliation

• - P-Card vs. Payment Discounts

• - Upgrade of Core-CT from PeopleSoft 8.9 to 9.1

Agenda – Statewide

• Statewide• - Conversion to GAAP-based Budgeting

• - FFATA Reporting

• - Agency Consolidations/New Agencies

Core-CT – Monthly PO/Req Reconciliation

Why Reconcile

Standard Business Practice for all Modules

Accurate Balances of Budgets, Contracts, and Obligations

Preparing for the future with GAAP


Current Experience

Monthly Reconciliation of Pre-Encumbered and Encumbered Dollars

What are My Actual Budget Balances

Fiscal Year End becomes a clean up nightmare for all

What happens when Core-CT force closes transactions


Provide Monthly notification to CFOs and Business/Purchasing Office Head

POs and Requisitions in Budget Error

POs that are Fully Vouchered

POs that have had No Activity for a Period of Time

Monthly Comparison of Clean Up Activity


Results from Monthly Reconciliation

Accuracy of Budget Balances and Contract Spend

Fiscal Year End less of a nightmare for all

Timely/Accurate Decisions made on the Use of POs and Requisitions

Reduce the Fiscal Year End Clean Up by Core-CT and your agency

Core-CT – Prompt Payment Discounts

Prompt Pay Discounts offered by Vendors or Negotiated by DAS on Contracts and Request for Proposals

Incentives to pay the vendor in a given amount of time, which will result in a discount

Many agencies are not aware that these incentives are available

Payments should be prioritized to pay those with discounts within the specified time frame

http://www.core-ct.state.ct.us/financials/po/active_cntrcts.xls

Core-CT – Upgrade to 9.1

HR/FIN/EPM Upgrade to version 9.1

The look will be different – drop down menus, mouse over pop ups and type ahead/auto complete

Breadcrumbs will be back – easier to know where to go

New features under review Enhanced P-Card functionality

Punch-out to vendors website for purchasing

eBenefits

eRecruit

Other Self Serve functions

ePay will be further rolled out to agencies

Agenda – Statewide

• Statewide• - Conversion to GAAP-based Budgeting

• - FFATA Reporting

• - Agency Consolidations/New Agencies

GAAP-based Budgeting

Plan for Conversion to GAAP‐based Budgeting

Developed in Accordance With Governor Dannel P. Malloy’s Executive Order No. 1


GAAP-based budgeting for the General Fund, Special Transportation Fund and the eight other appropriated funds

Target date - fiscal year commencing July 1, 2013.


Modified accrual basis is utilized under GAAP

- Revenues are recognized when they are measurable and available to finance the expenditures of the fiscal period.

- Expenditures are recognized in the period in which a transaction creates a demand on current financial resources.


The implementation of GAAP‐based budgeting will require a number of changes:

- Year‐end closing procedures and timeframes

- Development, presentation and management of the budget

- Accounting and budgeting control practices and procedures

- Core‐CT and agency-specific systems

- State statutes

- Training of state staff


FY2014-FY2015 Biennium Budget

- Agencies should use GAAP year‐end closing information for fiscal years 2010‐11 and 2011‐12

- along with any updated information from OPM and the Comptroller’s Office

- to help estimate the changes that a modified accrual of expenditures will have on their budget formulation


Plan for Conversion to GAAP-based Budgeting

http://www.ct.gov/opm/cwp/view.asp?a=2998&q=477452

Federal Funding Accountability and Transparency Act (FFATA) Reporting

New reporting requirements for federal grants greater than or equal to $25,000 awarded to state agencies by October 1, 2010.

The prime awardees (state) is required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards and sub-recipient greater or equal to $25,000


The reporting requirements are:- For mandatory and discretionary grants on or after

October 1, 2010.

- All sub-award information must be reported by the prime awardees.

- If the initial award is equal to or over $25,000, reporting of sub-award and executive compensation data is required.


- If the initial award is below $25,000 but subsequent grant modifications result in a total award equal to or over $25,000 are subject to the reporting requirements as of the date the award exceeds $25,000.

- If the initial award equals or exceeds $25,000 but funding is subsequently de-obligated such that the total award amount falls below $25,000. the award continues to be subject to the reporting requirements of the FFATA and OMB guidance.


Links to federal reporting websites

http://www.ffata.org/ffata

https://www.fsrs.gov

https://www.fsrs.gov/documents/ffata_legislation_110_252.pdf

https://www.fsrs.gov/documents/OMB_Guidance_on_FFATA_Subaward_and_Executive_Compensation_Reporting_08272010.pdf

https://www.fsrs.gov/






Agency Consolidations/New Agencies

Consolidations- Transfer or assignment of all or part of an agency to a

successor agency under the provisions of any act of the General Assembly

- Examples:

DAS = DAS + part of DOIT + part of DPW

DEEP = DEP + DPUC + OCC + part of OPM


New Agencies- Creation of a new legal entity

- Example: Contracting Standards Board

- Creation of a new legal entity that combines existing agencies

- Examples:

OGA = ELE + ETH + FOI + CSB + OCA + OVA + CSB + JRC + JSC + FPE

BOR = DHE + BAA + CSU + CTC


A Consolidations/New Agencies workgroup- Comprised of representatives from central agencies,

line agencies and CORE-CT

- Document a summary of the steps necessary to implement consolidations/new agencies

- Include a recommended timeline for implementation

Questions

Council of Fiscal Officers Meeting September 29, 2011.

Documents

Transcript of Council of Fiscal Officers Meeting September 29, 2011.