FI$Cal Change Discussion Guide Budgeting Guide March 2015

FI$Cal: Transparency. Accuracy. Integrity.2 March 2015 FI$Cal Solution Legend Pre-Wave Wave 1 Wave 2

FI$Cal: Transparency. Accuracy. Integrity.3 March 2015 Process OverviewKey Impacts FI$Cal will facilitate the State’s incremental budget development methodology Budgeting includes these high-level processes:  Initiate Budget Development Process  Prepare Departmental Budget Submission Process  Develop Governor’s Budget Process  Manage Budget Legislation Process  Administer the Budget Process  Commitment Control (Budget Journals/Operating Budgets) Process This process includes activities performed by individual departments, the State Controller’s Office (SCO), and the Department of Finance (DOF) DOF centralized budget development functionality in FI$Cal is implemented statewide High-level process remains the same; tools and templates have changed All budget requests (current year and budget year) will be entered into FI$Cal Departments will continue to prepare budgets using the new Chart of Accounts (COA) Departments will track budgets prior to FY15/16 budgets using the old Uniform Codes Manual (UCM) codes Automated workflow is introduced Budgeting Overview

FI$Cal: Transparency. Accuracy. Integrity.4 March 2015 Process OverviewKey Impacts The Initiate Budget Development process covers all activities related to preparing the budget system for the upcoming budget cycle This includes the following sub- processes:  Maintain Cost Driver (DOF) (Future Wave)  Pre-Populate Budget System (DOF)  Prepare Budget Instructions (DOF)  Reconcile Authorized Positions Starting base budget year (BY), budget amounts will be the BY+1 amounts provided during the FY15/16 budget process If BY+1 amounts provided during the FY15/16 process included any one-time costs from FY15/16, those adjustments to FY16/17 will be recorded during this process Past year actual expenditures and revenues are collected for reporting and analysis The Schedule 7A reconciliation process will remain the same Budgeting Initiate Budget Development

FI$Cal: Transparency. Accuracy. Integrity.5 March 2015 Key Impacts Departments will update Past Year revenues and expenditures in the System to reflect actual budgetary revenues and expenditures Departments will update pre-loaded Past Year, Current Year, and Budget Year authorized position counts to reflect the outcome of the Schedule 7A reconciliation process Budgeting Initiate Budget Development

FI$Cal: Transparency. Accuracy. Integrity.6 March 2015 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around Budget development will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Initiate Budget Development Budgeting

FI$Cal: Transparency. Accuracy. Integrity.7 March 2015 Process OverviewKey Impacts The Prepare Departmental Budget Submission process covers all activities related to preparing departments’ incremental budget changes Departments complete budgeting activities in Hyperion:  Review Baseline Budget  Enter Workload Adjustments  Enter Policy Adjustments  Enter Current Year Adjustment (e.g. Section 28.00), if approved Departments prepare their incremental budget changes using decision packages Available decision packages include:  Baseline Budget Adjustment (BBA)  Baseline Revenue, Transfer, and Loan (BRTL)  Budget Change Proposal (BCP)  Enrollment / Caseload / Population (ECP) Budget Change  Capital Outlay Budget Change Proposal (COBCP) Capital outlay proposals will include a new COA value for Project Phase beginning in Wave 2 Budgeting Prepare Departmental Budget Submission

FI$Cal: Transparency. Accuracy. Integrity.8 March 2015 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around departmental Budget submissions will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Prepare Departmental Budget Submission Budgeting

FI$Cal: Transparency. Accuracy. Integrity.9 March 2015 Process OverviewKey Impacts The Develop Governor’s Budget process covers all activities related to the Department of Finance’s review, approval, and publication of the Governor’s Budget This includes the following sub-processes:  Analyze and Adjust Decision Packages  Conduct Drill  Project Cash Flow  Prepare Trailer Bill  Brief the Administration  Publish the Governor’s Budget These processes are led by DOF and may utilize FI$Cal or use legacy processes Departments may be required to respond to requests for information from DOF Budget changes move through workflow within DOF DOF may send budget changes back to departments for additional information or corrections Cash flow analysis will be performed based on submitted budget changes Budget information may be collected through budget drills submitted through FI$Cal FI$Cal will produce budget publications using the legacy Governor’s Budget Publication System until Wave 3 Budgeting Develop Governor’s Budget

FI$Cal: Transparency. Accuracy. Integrity.10 March 2015 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around Governor’s Budget will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Develop Governor’s Budget Budgeting

FI$Cal: Transparency. Accuracy. Integrity.11 March 2015 Process OverviewKey Impacts The Manage Budget Legislation process covers all activities related to recording legislative actions taken on the Budget Bill This includes the following sub- processes completed by DOF:  Record Legislative Action  Support Reconciliation of the Two Houses’ Budget Bills  Record Governor’s Veto Results in an enacted budget DOF will record legislative actions (dollars, language) in FI$Cal DOF may delegate recording legislative actions to departments Enacted budgets for all departments statewide will be transmitted to SCO’s legacy Fiscal System until Wave 3 FI$Cal is not integrated with the Legislative Counsel’s Bureau systems, therefore, the budget bill language sheets and trailer bill RN processes will not change Budgeting Manage Budget Legislation

FI$Cal: Transparency. Accuracy. Integrity.12 March 2015 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around Budget Legislation will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Manage Budget Legislation Budgeting

FI$Cal: Transparency. Accuracy. Integrity.13 March 2015 Process OverviewKey Impacts The Administer the Budget process covers all activities related to analyzing, forecasting, changing, and managing the budget after it is enacted This includes the following sub- processes :  Prepare and Administer Appropriation Adjustment  Prepare and Monitor Department Operating Budget Departments will use two different software tools to manage their budgets: 1. Hyperion  Appropriation level budget changes are developed and approved  Appropriation level budgets are posted to FI$Cal Commitment Control for controlling appropriations  Appropriation adjustments need DOF and SCO approval 2. PeopleSoft  Operating budgets and adjustments are loaded  Operating level budgets (i.e., allotments or spending plans) are loaded into Commitment Control directly online or via spreadsheet Budgeting Administer the Budget

FI$Cal: Transparency. Accuracy. Integrity.14 March 2015 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around administering the Budget will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Administer the Budget Budgeting

FI$Cal: Transparency. Accuracy. Integrity.15 March 2015 Process Overview The Commitment Control process covers all activities related to the recording of budgeted revenue and expenditure amounts Transactions in all FI$Cal modules are validated against these budgets Commitment Control allows for the establishment of spending authority at differing levels within state government Appropriations approved through the legislative process will be sent by DOF to SCO and posted in Commitment Control for departments to establish their operating budgets Departments will document operating budget amounts utilizing the current business process  The amounts will be posted directly by departments to Commitment Control using a budget journal to establish operating budgets/spending plans Budgeting Commitment Control

FI$Cal: Transparency. Accuracy. Integrity.16 March 2015 Key Impacts Appropriation and other central controlling budgets have been established and are managed by SCO Integration between Hyperion and Commitment Control allows for the sharing of financial information Budget Journals can be posted creating budgets for Appropriation (SCO) and Operating Budgets (departments) Commitment Control budget, expenditures, encumbrances are available for reporting using the Budget Overview inquiry and Budget Status report Grant module budget functionality will allow the creation of project budget to control grant expenditure and encumbrances Department-specific account translation is available  Account trees built to department specifications allow differing treatment of expenditures or revenue amounts during budget check for department specific operating budgets Budgeting Commitment Control

FI$Cal: Transparency. Accuracy. Integrity.17 March 2015 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around Commitment Control will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Commitment Control Budgeting

FI$Cal: Transparency. Accuracy. Integrity.18 March 2015 FI$Cal End-User Roles Budgeting FI$Cal End-User RoleDescription Department Budget Processor The department end user who enters and submits budget plan data for approval, including budget requests. The Department Budget Processor will be able to view and use reports, documents, task lists, and department budgeting content. Department Budget Approver The department end user who is responsible for approval of the budget submission. The Department Budget Approver can edit, add, or remove data in planning units to which they have received permissions, and then can approve or reject the budget plan submission.

FI$Cal: Transparency. Accuracy. Integrity.19 March 2015 FI$Cal End-User Roles Budgeting FI$Cal End-User RoleDescription Budget ViewerThe department or central end user who can view budget requests, budget reports, and budget documents. Department Budget System Maintainer The department end user who is responsible for managing department workflow, and making changes for assigned approvers.

FI$Cal: Transparency. Accuracy. Integrity.20 March 2015 FI$Cal End-User Roles Budgeting FI$Cal End-User RoleDescription GL ViewerThe central and department end user who has access to General Ledger and Commitment Control online inquiry screens and read only access to Create Journal Entry pages. Department Operating Budget Processor The department end user who can enter but cannot post department level budget journals. This user cannot enter or post statewide budget journals. Department Operating Budget Approver The department end user who can enter and post department level budget journals, and override department budget exceptions. This user cannot enter or post statewide budget journals or override a statewide controlling budget exception. Appropriation ViewerThe central and department end user who will allow users access to view Statewide Controlling budget information. Commitment Control

FI$Cal: Transparency. Accuracy. Integrity.21 March 2015 FI$Cal End-User Roles Budgeting FI$Cal End-User RoleDescription Operating Budget Viewer The central and department end user who will have access to view department-level budgets using online inquiry screens. GL ReporterThe central and department end user who will run reports and distribute to the Department GL Report Viewer as required. Department GL Report Viewer The department end user who will receive nightly batch distributed reports and have access to Report Manager. Commitment Control

FI$Cal: Transparency. Accuracy. Integrity.22 March 2015 Role Changes –Wave 1 to Wave 2 Budgeting Wave 1 RoleWave 2 Change Department Approver 1 This role name has been changed to Department Budget Approver in Wave 2. Department Approver 2 This role has been removed in Wave 2.

FI$Cal: Transparency. Accuracy. Integrity.23 March 2015 FI$Cal End-User Training Budgeting Course IDCourse NameDurationDelivery FS101*Introduction to FI$Cal 4 hours WBT FS103*FI$Cal Navigation: Budgeting4 HoursWBT BU101Introduction to Budgeting 4 hours ILT BU112Review and Update Departmental Budgets 4 hours WBT BU113Budget Development Using Decision Packages 4 hours WBT BU114DOF Internal Processes 4 hours WBT BU115DOF Reports 4 hours WBT BU116Capital Outlay 4 hours WBT *FS101 and FS103 are mandatory for all FI$Cal Budgets end users

FI$Cal: Transparency. Accuracy. Integrity.24 March 2015 For additional information on end-user training, visit the Training page of the FI$Cal Project website at : FI$Cal End-User Training