1. ARRA Administrative Costs NASACT 2009 Annual Conference August 17, 2009

2. Office of Financial Management Michigan Fast Facts Fiscal year - October 1 through September 30 FY 2009 General Fund budget - $9.8 Billion FY 2009 School Aid Fund budget - $13.3 Billion Anticipated ARRA funding - $7.0 Billion ARRA funds used to balance FY 2009 budget - $1.2 Billion

3. Office of Financial Management SWCAP Section I $102.0 million Section I cost pool (FY 2009 budgeted) Includes the following: –Civil Service Commission –Office of the State Employer –Office of Financial Management –State Budget Office –Administrative and support services provided by the departments of Management & Budget, Treasury, and Civil Rights

4. Office of Financial Management SWCAP Section II Internal Service Funds –Motor Transport Fund –Office Services Revolving Fund –Information Technology Fund –State Sponsored Group Insurance Fund –Risk Management Fund Other –Building space –State employees retirement –Office of the Auditor General

5. Office of Financial Management Michigans Approach Other than creating a new Economic Recovery Office, Michigan intends to administer ARRA funds and meet ARRA reporting requirements with existing staff and resources Michigan chose to limit recovery of ARRA administrative costs to the cost of the Economic Recovery Office ($2.0 million)

6. Office of Financial Management Actions Taken Submitted an addendum to the approved cost allocation agreement proposing that the Economic Recovery Office be added to Section II Resubmitted the addendum with the required certification

7. Office of Financial Management Rationale for Approach Maximizes the program impact of ARRA funding Avoids the need to find replacement funding for ongoing administrative functions when ARRA funding expires Treating the Economic Recovery Office as a billed service eliminates carryforward issues

8. Office of Financial Management Questions?