State Budget Update Elizabeth Grovenstein Adam Brueggemann Office of State Budget and Management

Session Etiquette Please turn off all cell phones. Please keep side conversations to a minimum. If you must leave during the presentation, please do so as quietly as possible. Thank you for your cooperation! 2

About OSBM: Constitutional & Statutory State Budget Act & Article III of NC Constitution: Director of the Budget – The Governor is required to prepare a recommended budget per NC Constitution (Article III, Section 5(3)) Budget Development – Required to clearly distinguish program continuation, reductions, eliminations, expansions, and new programs – Must also contain capital improvements in context of the Six-Year Capital Improvements Plan required by G.S. 143C-8-6 – The Governor must provide a budget message 3

About OSBM: Constitutional & Statutory State Budget Act & Article III of NC Constitution: Budget Requirements – The Governor must present a balanced budget – Budget recommendations must be included for all Governmental and Proprietary Funds Administration of the Budget – The Governor administers the budget once it is enacted by the General Assembly – Administered in accordance with the NC Constitution (Article III, Section 5(3)) and the State Budget Act – The constitution requires the Governor to take steps necessary to maintain a balanced budget at all times 4

About OSBM: Organizational Chart 5

About OSBM: Major Functions  Provide fiscal advice to the Governor  Prepare Governor’s recommended budget  Apply State law and policy in the administration of the budget  Publish the State Budget Manual – includes State Budget Act and policies on budget preparation, administration, travel, and other matters  Forecast and monitor state revenues  Conduct management analysis requested by legislature or agencies  Produce official population estimates for state, counties, municipalities  Staff to Council of Internal Audit 6

Budget Development: UNC System BOG Unified Budget Request GS 143C-3-3(b) Continuation - Building Reserves - Enrollment Growth - Annualizations - Remove NR Items Expansion - Salary Increases - New Programs - Expand Existing Programs Capital - New Construction - R&R - Land Acquisitions IT - Acquiring or Maintaining IT Infrastructure 7

Budget Development: BD 307 Certification 8

Budget Development: Post Legislative Summary 9

Budget Administration: Budget Revisions  G.S. 143C-6-4(g) “Transfers or changes within the budget of The University of North Carolina may be provided as in Article 1 of Chapter 116 of the General Statutes.” 10

Budget Administration 11 Certified & Auth. Yes Change Requirements and Receipts 12 Authorized Only Yes Change Requirements & Receipts 14 Authorized Only No Realign Requirements Only 11 Revision Type Impacts OSBM Approval Action

Budget Administration When to Use Type 11 Distribution of Statewide Reserves Allocation of Agency Reserves Enrollment Growth Building Reserves Reserves in Individual Campus Budgets Carry Forward – if Statutory or in Session Law Organizational Budget Changes Mandated by General Assembly – if Statutory or in Session Law Tuition and Fees Approved by BOG G.S (c) Transfers between SRCIs G.S

Budget Administration 13 When to Use Type 12 Over-Realized Receipts (ex. dual employment) Fees Not Authorized by UNC Board of Governors Reducing Budgeted Receipts Realignments that Impact Intra-Governmental Transaction Accounts ( 53 8xxx)

Budget Administration 14 When to Use Type 14 Realignments within or between purpose codes of a budget code Excludes Reserves and Intra-Governmental Transactions which must be a Type 12 Excludes realignments between budget codes which must be a Type 11.

Budget Administration  Receipts within UNC System are restricted per G.S A to a maximum of 10% above certified levels.  OSBM uses IBIS reports and budget/expenditure reports generated by OSC (BD701) to review budget and actuals. 15

Budget Administration: Allotments  G.S. 143C-6-3 “To receive operating funds appropriated to it, a State agency shall submit... a request for an allotment of the amount estimated to be required for the ensuing fiscal period.”  G.S explains that G.S. 143C-6-3 does apply to appropriations to SRCI’s.  Currently operating allotment requests are made on a monthly basis including payroll and operating funds.  OSBM uses IBIS and also expenditure/allotment reports generated by OSC (BD702). 16

End of Year Procedures: Carry Forward 17

End of Year Procedures: BD 701 Reports  What does OSBM review on the June BD 701?  Cert/Auth Requirements, Receipts, and Appropriation match IBIS (RK 317, 325, 325 reports).  No Negative Budgets at Account Level (Certified & Authorized).  No Over-Expended Line Items (or approved budget pool – see handout).  No Appropriation in Purpose 102 or 103.  No Expenditures in Reserve Accounts (71xx NCAS or 83xx FRS) 18

End of Year Procedures: BD 701 Reports  What does OSBM review on the June BD 701?  No Untitled Accounts  Carry Forward Transactions Reflected Correctly  At least One Dollar Left Unexpended 19

Other OSBM Responsibilities  OSBM promulgates state travel policies and regulations consistent with G.S , 138-6, and 138-7, which are applicable to all funds on deposit with the State Treasurer.  OSBM promulgates state moving expenses policies and regulations consistent with G.S  Director of the Budget is authorized to determine when to pay severance wages or discontinued service retirement consistent with G.S

Other OSBM Responsibilities  G.S. 115C establishes the Civil Penalty and Forfeiture Fund to be administered by OSBM.  UNC parking fines are required to be remitted, less the cost of collection as determined annually by OSBM (up to maximum of 20%).  Annual mailing list certification required to be submitted to OSBM per G.S  Biennial fee report is required per G.S. 143C-9-4 to be submitted to the General Assembly. 21

NC GEAR Review and analysis of efficiency and effectiveness of executive branch Staff of 4 time limited/2 permanent employees and outside consulting firm TBD Reviewing statutory authority, organizational structure, performance, and funding sources of programs Major statewide areas for review include HR, purchasing, IT, parking, motor fleet Final report due February 15, suggestions to: 22

FY Budget: Next Steps February 10, 2014 Budget requests submitted February 21, 2014 meeting with UNC System February 11 – April, 2014 OSBM staff review budget requests, meetings with State Budget Director and Governor’s Office staff, updated revenue estimates May 2014 finalize budget recommendations May 14, 2014 General Assembly convenes 23

About OSBM: Website OSBM website: 24

About OSBM: Website OSBM website: 25

Integrated Budget Information System (IBIS) Replace mainframe legacy systems by creating an integrated, web-based statewide budget system Incorporate program information and performance measurement into the State’s budgeting process Improve reporting and analytical capabilities Reduce dependency on manual processes for data collection, manipulation and analysis 26

IBIS Scope 27 Budget Execution Budget Development Program Information Administrative Features Budget RevisionsWorksheet IStrategic PlanningWork Queue AllotmentsWorksheet IIProgram DataMy Messages Salary ControlWorksheet IIIProgram Crosswalk History CertificationReportsProgram Structure Journal EntryReports Budget Code Fund Code Reports

IBIS Work Queue Filter and Sort instead of search. Filter/Sort any field. Must use format for budget revisions (not 11-1). Refine search by applying multiple filters. Clear filters by hitting refresh on browser. In work queue, right click form to print. 28

IBIS Work Queue Status Field – If left blank, only filters your queue. Approved = Approved by OSBM Submitted to OSBM = Approved by Campus, Pending OSBM Approved Internally = Approved by Campus (ex. Type 14) All = Any Status (Approved, Returned, Deleted, etc.) All Active = All Items Pending Action (Excl. approved/deleted) Validated = Checked for Errors (Does Not Mean Approved) BRU = Campus (Budget Reporting Unit) AGENCY = UNC General Administration 29

IBIS Work Queue 30

IBIS Budget Revisions Positions Tab – Only the Fund, Account, and FTE are required. – If Salary is entered, it must be annual salary. Budget Detail Tab – Excel Processing feature makes data entry of numerous accounts easier. Attachments Tab – Allows multiple formats (PDF, Word, Excel) 31

IBIS Budget Revisions 32 Using the Excel Processing Feature

IBIS Reports Frequently Used Reports Available in IBIS – BD 307 Certification – RK 325 Budget Reports – RK 15 Multi-Purpose Report (Used for Custom Searches) – Under Development: WK1 33

IBIS Reports 34 Link to current reports available on IBIS website IBIS website

IBIS Reports 35

IBIS Reports RK 15 Multi-Purpose Report – Budget Revision Search Tool – Find All Budget Revisions for a Budget Code, Fund, or Account – Search Across Multiple Budget Codes, Funds, or Accounts – Search Across Type 11, 12, and 14 – Access from Reports 36

IBIS Reports How to Find the RK 15 Multi-Purpose Report 37

IBIS Reports 38

IBIS Reports 39 Example of RK 15 Report Output

IBIS User Guides & Online Tutorials 40

IBIS User Guides & Online Tutorials 41

IBIS Future Functionality Worksheet I – Continuation Budget Prep. Type 14 Revision Rules – No realignments impacting reserves and intra- transfer accounts. – No realignment of receipts. 42

Questions & Answers 43

Thank You! Elizabeth Grovenstein Adam Brueggemann