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

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

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

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

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

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.

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

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

GAAP-based Budgeting  Plan for Conversion to GAAP-based Budgeting

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,  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

Federal Funding Accountability and Transparency Act (FFATA) Reporting  The reporting requirements are: -For mandatory and discretionary grants on or after October 1, 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.

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.

Federal Funding Accountability and Transparency Act (FFATA) Reporting  Links to federal reporting websites    pdf pdf  FATA_Subaward_and_Executive_Compensation_Rep orting_ pdf FATA_Subaward_and_Executive_Compensation_Rep orting_ pdf

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

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

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

Questions