Council of Fiscal Officers Meeting

1. Council of Fiscal Officers Meeting September 29, 2011

2. 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

3. Agenda – Statewide Statewide - Conversion to GAAP-based Budgeting - FFATA Reporting - Agency Consolidations/New Agencies

4. 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

5. Core-CT – Monthly PO/Req Reconciliation • 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

6. Core-CT – Monthly PO/Req Reconciliation 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

7. Core-CT – Monthly PO/Req Reconciliation • 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

8. 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

9. 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

10. Agenda – Statewide Statewide - Conversion to GAAP-based Budgeting - FFATA Reporting - Agency Consolidations/New Agencies

11. GAAP-based Budgeting Plan for Conversion to GAAP‐based Budgeting Developed in Accordance With Governor Dannel P. Malloy’s Executive Order No. 1

12. GAAP-based Budgeting GAAP-based budgeting for the General Fund, Special Transportation Fund and the eight other appropriated funds Target date - fiscal year commencing July 1, 2013.

13. GAAP-based Budgeting 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.

14. GAAP-based Budgeting 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

15. GAAP-based Budgeting 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

16. GAAP-based Budgeting Plan for Conversion to GAAP-based Budgeting http://www.ct.gov/opm/cwp/view.asp?a=2998&q=477452

17. 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

18. Federal Funding Accountability and Transparency Act (FFATA) Reporting • 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.

19. Federal Funding Accountability and Transparency Act (FFATA) Reporting • 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.

20. Federal Funding Accountability and Transparency Act (FFATA) Reporting • 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

21. 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

22. Agency Consolidations/New Agencies 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

23. Agency Consolidations/New Agencies 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

24. Questions