Transcript Changes to Fiscal Note Section of Budget Manual

OSBM
State Budget Manual Update July 1, 2007
WELCOME BUDGET MANAGERS
AND CHIEF FISCAL OFFICERS
State Budget Manual Update Meeting
June 2007
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OSBM
State Budget Manual Update July 1, 2007
State Budget Manual Update
Meeting, June 2007
Welcome
Purpose of Meeting
Updated Budget Manual
• Incorporates changes from HB914, State
Budget Act
• Includes policies since July 2006
• Improves format
• Adds links to related information
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OSBM
State Budget Manual Update July 1, 2007
State Budget Manual Update
Meeting, June 2007
Presentation Format
• Budget Development
• Budget Execution
• Capital Improvements
• Rule Analysis
Q&A
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OSBM
State Budget Manual Update July 1, 2007
Budget Development
Organization of Budget Development
Section
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Authorities, roles, and responsibilities
General requirements
Process for developing the budget (including
specific required elements)
Components of the budget
Results based budgeting
Systems supporting budget development
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OSBM
State Budget Manual Update July 1, 2007
Budget Development
Budget Development in the new SBA
G.S. 143C Article 3 - Governor’s Recommended Budget
• Requirements for requests – legislative, judicial, state
agencies, R&R, CI, IT
• Governor’s recommendations (documents), message in
short/long sessions
• Funds included in the state budget
G.S. 143C Article 4 – Budget Requirements
Balanced budget, limitation on growth (operating budget and
positions)
143C-1-3 Fund Types / GASB Fund Structure
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OSBM
State Budget Manual Update July 1, 2007
Budget Development
Change: Results based budgeting information required in
biennial budget
- Program goals and performance - G.S. 143C-3-5(b)(1)
- Goals and features of the Governor’s recommended budget G.S. 143C-3-5(d)
- Performance information described – G.S. 143C-1-1(d)(21)
Impact:
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Continued emphasis on Governor’s results based
budgeting initiative
Legislative interest in government performance
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OSBM
State Budget Manual Update July 1, 2007
Budget Development
Change: Receipts budgeted to prior year actual
collections or other reasonable basis - G.S.
143C-3-5(b)(2)(c)
Impact:
Greater emphasis on fully projecting and
budgeting anticipated federal, agency and
other receipts
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OSBM
State Budget Manual Update July 1, 2007
Budget Development
Change: Anticipated federal funds defined to
include previous funding levels, current
grant awards and applications - OSBM
policy in Budget Manual Section 3.12
Impact:
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Fully anticipates and budgets receipts
Creates authority to spend, potential challenges
when awards vary from prior years or applications
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OSBM
State Budget Manual Update July 1, 2007
Budget Development
Change: All Governmental and Proprietary
Funds Budgeted - G.S. 143C-3-5 (d)
Impact:
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GASB fund types - G.S. 143C-1-3
Budgeted v. unbudgeted codes
Size of total state budget
Budget preparation time
Presentation of budget
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OSBM
State Budget Manual Update July 1, 2007
Budget Development
Questions?
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
Organization of Budget Execution Section
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Authorities, roles, and responsibilities
Budget by fund sources, structure of the budget
General provisions for budget execution
Amending the operating budget
Allotment process
Information technology policies and procedures
Federal funds policies and procedures
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
Budget Execution in the new SBA
G.S. 143C Article 6 – Administration of the Budget
• Budget enacted by General Assembly; certified budgets of
State agencies
• Budget adjustments authorized
• Compliance with Chapter and appropriations act by State
agencies
• Use of State funds by non-State entities
• State grant funds: administration; oversight and reporting
requirements
• Federal and other receipts
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
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Change: All Governmental and Proprietary Funds
must be Budgeted – G.S. 143C-6-1 (c)
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Impact:
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To facilitate compliance, all Governmental and Proprietary
Funds that were not included in the 2007-09 Governor’s
Recommended Budget, will initially be established by
submitting an 11-type budget revision based on prior year
actuals.
Budget revisions must be submitted for all Governmental
and Proprietary Funds.
In the future, the certified budget to agencies will include the
amount appropriated from Governmental and Proprietary
Funds.
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
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Change: Revisions to the Certified Budget are
limited – G.S. 143C-1-1 (d)(7)
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Impact:
• Revisions to the certified budget can only be
made for those circumstances outlined in above
statute.
• Many budget revisions prepared as 11-types
before will now be processed as 12-types (e.g.,
unanticipated gifts or grants, adjustments to
existing federal grant programs, carry forwards).
• Creates deviation between the certified and the
authorized budget (does not negatively impact
the agency’s ability to make required changes).
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
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Change: Certain budget adjustments can only be
nonrecurring – G.S. 143C-6-4(b)(3)(iii)
Impact:
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Changes to the authorized budget within a fund/center are
still allowed on a recurring basis.
Changes to the authorized budget that move funds
between a fund/center can only be authorized on a
nonrecurring basis (e.g., salary reserve, position transfers,
and other movement of permanent funding).
Changes to budget additional receipts can only be
authorized on a nonrecurring basis.
Changes processed as nonrecurring that agencies request
to be permanent will be included in the continuation budget
or the Governor’s Recommended Adjustments document.
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
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Change: Approval of Receipt Supported Positions
- G.S. 143C-6-6, G.S. 143C-6-4(3)(iii)
Impact:
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Prior consultation with Gov Ops no longer required to
establish receipt supported positions.
Agency must continue to submit a budget revision to
OSBM for approval prior to the establishment of new
receipt supported positions.
Positions funded from new receipts can only be processed
as nonrecurring and will be included in the continuation
budget or Recommended Budget Adjustments document
for permanent funding if required.
New positions funded from salary reserves within a
fund/center are allowed on a recurring basis.
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OSBM
State Budget Manual Update July 1, 2007
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Budget Execution
Change: Use of Lapsed Salary Funds
– G.S. 143C-6-9
Impact:
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Lapsed salaries can only be used for nonrecurring
purposes. Lapsed salaries can not be used for the
following: grant in aid (6XXX), agency reserves (7XXX),
intra agency transfers (8XXX), and the establishment of
time limited positions.
Agencies are authorized to use 50% of generated lapsed
salaries.
Agencies may request use of lapsed salaries that exceed
50% to deal with unforeseen circumstances on a case by
case basis with thorough justification.
Type 14 budget revisions will continue to be processed for
transfers among the 1XXX accounts with the exception of
temporary wage accounts. 12 type budget revisions must
be submitted for all other lapsed salary transfers.
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
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Change: Information Technology (IT) Funds do not
revert until implementation – G.S. 143C-1-2(b)(iii)
Impact:
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Reversion language amended to provide that funds for IT
projects shall not revert until project is implemented or
abandoned.
Policy established to facilitate the new requirement.
Nonrecurring funding in 2006-07 will be carried forward for
transfer to a 2XXXX IT budget code only if the carry
forward is consistent with current authority under the
Executive Budget Act.
Transfers to the 2XXXX IT budget codes will be approved
only for projects submitted to the PPM tool.
2009-11 biennium, 2XXXX budget codes for IT projects will
be incorporated into the Worksheet I.
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OSBM
Budget Manual Discussion
Budget Execution
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Other Changes:
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Prior consultation with Gov Ops is required when total
requirements for a department exceed 3% of the certified
budget - there are no longer deviation thresholds for each
fund/center. (G.S. 143C-6-4(b)).
Allocations from the Contingency & Emergency Fund no
longer require prior consultation with Gov Ops.
All applications for new federal and other grant funds must
be submitted to OSBM (G.S. 143C-7-1).
Updates have been made to the procedures and forms for
requesting a new fund/center and budget code.
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OSBM
State Budget Manual Update July 1, 2007
Budget Execution
Questions?
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OSBM
State Budget Manual Update July 1, 2007
Capital Improvements
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Consolidates Capital Information
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General Statutes Involving CIP, Capital Budget
Preparation, and Budget Execution
General Provisions from Appropriations Act
COPs Procedures & Restrictions
Clarifies Close-out Procedures
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OSBM
State Budget Manual Update July 1, 2007
Capital Improvements
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New CIP Requirements
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Needs Estimates
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Worksheet III Requirements (Description, Justification,
OC-25 Cost Estimate, Operating Costs)
Description of Space Needs & Physical Requirements
Cash Flow Requirements
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OSBM
State Budget Manual Update July 1, 2007
Capital Improvements
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New Reversion Requirements
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Planning Must Begin in Same Fiscal Year as
Funds are Appropriated
Construction Must Begin Within 2 Fiscal Years
Otherwise, Project Authorization Lapses
Project Reserve Account Established
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Excess Appropriation Not Encumbered by
Construction Contract Transferred to OSBM’s
Project Reserve Account
Used for Emergency Repairs, Cost Overruns
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State Budget Manual Update July 1, 2007
Capital Improvements
Questions?
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OSBM
State Budget Manual Update July 1, 2007
Rule Analysis
• Electronic submission required and Internet
posting of final analysis
• Small business impact information
• More analysis required for larger rules
• Fast-track approval for rules that are not
significant
• Replacement of OSBM Form 4 with more
flexible format for analysis
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OSBM
State Budget Manual Update July 1, 2007
Rule Analysis
Questions?
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OSBM
State Budget Manual Update July 1, 2007
Changes to the Budget Manual
Questions or comments?
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