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Louisiana Office of Planning and Budget1 OPB RoadShow September 2006 Office of Planning and Budget Office of Planning and Budget Division of Administration.

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Presentation on theme: "Louisiana Office of Planning and Budget1 OPB RoadShow September 2006 Office of Planning and Budget Office of Planning and Budget Division of Administration."— Presentation transcript:

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2 Louisiana Office of Planning and Budget1 OPB RoadShow September 2006 Office of Planning and Budget Office of Planning and Budget Division of Administration State of Louisiana

3 Louisiana Office of Planning and Budget2 AGENDA Welcome and Introduction Budget Basics FY –Changes –Special Concerns FY Operational Plans ISIS/HR Data & Budget –ZP 22 –ZP 39 –ZP 116 – BR9B LaPAS FY Reporting EB-RB Controls –Expenditure & Revenue Budget Controls –Expenditure & Revenue Budget Adjustment Request BA-7s Executive Orders KBB & 33 –Accountability for Line Item Appropriations Katrina/Rita Cost Classifications –Hurricanes Katrina & Rita Expenditure & Revenue Tracking –FEMA Reimbursement & Coding Senate Concurrent Resolutions (SCRs) 43 and 130 State Emergency Response Fund – Act 640 of 2006 “Act 160” Undersecretary’s Report Revised Five-Year Strategic Plans Questions and Answers as we go and at end Office of Planning and Budget

4 Louisiana Office of Planning and Budget3 Office of Planning and Budget Division of Administration State of Louisiana

5 Louisiana Office of Planning and Budget4 Performance-based Budgeting Budgeting for Results $ Performance-based budgets focus on “return on investment”— that is, what do we get for our investment of state resources? ¢ Basic service level (or continuation of basic services)? ¢ Increased services (more services to same recipients or expansion of same services to more recipients)? ¢ Better (higher quality) services? ¢ More efficient services (cost savings in service delivery)? ¢ Mitigation or resolution of a problem? Budgeting for Results

6 Louisiana Office of Planning and Budget5 Budgeting for Results— With an Eye on the Price Tag $ Performance-based budgeting emphasizes program effectiveness and bases decision making (whether for continuation or enhancement of a program) on outcomes. $ However, the costs of achieving those outcomes must be scrutinized to ensure efficient service delivery and maximize allocation of scarce resources. Budgeting for Results Performance-based Budgeting

7 Louisiana Office of Planning and Budget6 $ A budget is a plan for receiving and spending funds; it is an allocation of anticipated resources. There are two parts to a budget: ¢ Means of Financing (what comes in); and ¢ Expenditures (what goes out). $ Budget requests must provide detailed information on both parts. ¢ Primary source of data for OPB budget analysis and recommendations ¢ Give special care to BR-6s, BR-7s, & BR-8s $ The goal of budget development is to balance these two parts. $ The goal of budget management is to keep them in balance. Operating Budgets MOFEXPENDS

8 Louisiana Office of Planning and Budget7 July 1 Fiscal Year Begins August 15 Performance Adjustment Requests Fiscal Yearend Closeout Early July Appropriation Letters Budgets Spread September 20 DOA/OPB Guidelines for Budget Preparation Progress Report Yearend Performance September 8 November 8 First Quarter Performance Progress Report Operational Plan, Budget Request and Capital Outlay Requests Prior Fiscal Year Current Fiscal Year Ensuing Fiscal Year June 30 Fiscal Year Ends February 8 Midyear Performance Progress Report February/March Executive Budget, Supporting Document, and Appropriation Bills May 8 Third Quarter Performance Progress Report March/April- June Legislative Appropriation Process November 1 December/January Revenue Forecast Operating Budget Timelines September-November Agency Budget Preparation December/January Preliminary Budget Recommendation

9 Louisiana Office of Planning and Budget8 OPB Budget Decision-making Factors $ Available Revenues $ Means of Financing $ Discretionary vs. nondiscretionary status $ Gubernatorial agenda and initiatives $ Statewide and agency strategic plans or initiatives $ Return on Investment $ Program performance $ Demonstrated need $ Other guidelines $ Agency and other input  DATA drive Budget Development

10 Louisiana Office of Planning and Budget9 TOTAL BUDGET REQUEST PACKAGE Changes and Special Concerns

11 Louisiana Office of Planning and Budget10 Total Budget Request Package $ Total Budget Request Package consists of 6 components ¢ Operational Plan (OP Form) ¢ Existing Operating Budget (BR Forms) ¢ Continuation Budget (CB Forms) ¢ Technical/Other Adjustment Package (T/OAP Forms) ¢ New or Expanded Services Package (NE Forms) ¢ Total Request Summary (TR-SUMM Form) $ Total Budget Request Package is accompanied by 5 addenda: ¢ Activities ¢ Sunset Review ¢ Information Technology ¢ Children’s Budget ¢ LA Workforce Commission $ Forms, Guidelines, and Instructions posted on OPB website.

12 Louisiana Office of Planning and Budget11 Budget Request Forms and Addenda BIGGEST CHANGE: Keeping hurricane recovery funding and expenditures separate

13 Louisiana Office of Planning and Budget12 Budget Request Forms and Addenda Use current OPB forms Follow instructions Check summary rows and columns Check for consistency between forms Submit a complete package on time Budget Request Pointers:

14 Louisiana Office of Planning and Budget13 Budget Request Forms and Addenda Explain, explain, explain! Data-driven, quantifiable Pertinent, concise Complete the package as if your budget depends upon it—IT DOES! Budget Request Pointers:

15 Louisiana Office of Planning and Budget14 Budget Request Forms and Addenda OPERATIONAL PLAN (OP)  An operational plan is an annual work plan.  An operational plan draws directly from strategic plan to: describe agency and program missions and goals state program objectives measure progress

16 Louisiana Office of Planning and Budget15 OP POINTERS : Use the current OP form. Follow all instructions and guidelines. Submit a complete OP on time. Cite strategic program performance objectives. Report balanced sets of indicators. Explain, explain, explain. Budget Request Forms and Addenda

17 Louisiana Office of Planning and Budget16 OP POINTERS : Be clear. Avoid technical terms or jargon. If a technical term must be used, add a note to explain the term. Avoid acronyms and initializations unless first spelled out. Do not use ”NA”. To maximum extent possible, use standard definitions and generally accepted or recognized calculation methods and formulas. Budget Request Forms and Addenda

18 Louisiana Office of Planning and Budget17 OP POINTERS : Be sure that indicator names and values are consistent with official sources.  LaPAS  Appropriation acts, approved Aug. 15th performance adjustments, and approved BA-7s Cite LaPAS PI Code for existing indicators. Budget Request Forms and Addenda

19 Louisiana Office of Planning and Budget18 OP POINTERS : Be consistent in what you report and how your data are calculated.  Don’t change performance indicators willy-nilly.  Don’t let the OP be the first indication that you think performance changes may be justified.  Talk to your OPB analyst before you undertake changes. Budget Request Forms and Addenda

20 Louisiana Office of Planning and Budget19 It’s my operational plan! Why can’t I change my performance indicators whenever I want to? In your strategic plan, you identified the indicators to be used to measure progress over the lifetime of the plan. You committed to those indicators. We need to track indicators over time to see progress. So there must be a compelling reason to change indicators during the lifetime of your strategic plan. AND that reason must be communicated and justified, early in the budget development process, to all key parties. Given our post-hurricane operating environment, some changes for FY may be justified. However, other key parties— particularly OPB—must agree with you. Budget Request Forms and Addenda

21 Louisiana Office of Planning and Budget20 Performance information must be provided also on: Continuation Budget Forms New or Expanded Service Forms Technical and/or Other Adjustment Package (as appropriate) Use performance indicators to describe and quantify existing services and justify workload adjustments and/or enhancements. Budget Request Forms and Addenda

22 Louisiana Office of Planning and Budget21 Office of Information Technology (OIT)Forms Who must submit IT-10 requests? Departments/agencies must submit an IT-10 and a corresponding Office of Planning and Budget CB8/NE form as a justification for each Information Technology (IT) project and/or initiative request exceeding $100,000 in total cost over five years. All IT projects and/or initiatives meeting the criteria for submittal specified require the approval of OIT. Budget Request Forms and Addenda

23 Louisiana Office of Planning and Budget22 Recent changes to the IT Request process:  A tab added to IT-0 identifying all previously approved IT-10s for which funds are in the Existing operating Budget itemizing planned cost by fiscal year through final year of planned funding.  A box has been added to the IT-10 form to: –Identifying the impact if the request is not funded –Affirm the department/agency budget office has reviewed the IT-10 –Affirm the department/agency undersecretary has approved the IT-10  Means of financing has been added to the cost summary section of the IT- 10 Cost worksheet Budget Request Forms and Addenda Office of Information Technology Forms

24 Louisiana Office of Planning and Budget23 What IT expenses do not require an IT-10? –Continuation of an existing contract, multi-year lease, lease purchase, or finance agreement for equipment that has been approved by OIT through an IT Request –Hardware and software maintenance renewal contracts Object Code 2820 Maintenance of Data Processing Equipment Object Code 2825 Maintenance of Data Processing Equipment – Software –Acquisitions that were included in a previously approved IT Request (has been assigned a CIO Approval #) unless the project/initiative materially changes (i.e., change in technical approach or scope, increase in total costs by 15% or more) Budget Request Forms and Addenda Office of Information Technology Forms

25 Louisiana Office of Planning and Budget24 ISIS/HR Data and the Budget  Employees are a valuable resource.  Salaries and related benefits often represent the largest operating cost for an agency.  Commissioner of Administration’s memorandum of February 9, 2006, directs state agencies to ensure accuracy and timeliness of data in ISIS-HR.  OPB uses ISIS/HR data to develop and monitor budgets.

26 Louisiana Office of Planning and Budget25 ISIS/HR Data and the Budget Valuable ISIS/HR Reports:  ZP22 - projects salary expenditures for the remainder of the current fiscal year  ZP39 - Position/Employee Statistical Report Summarized, which reports the total number of positions, employees and FTE by salary object, as defined by ISIS/HR Personnel Subarea. Mathematically, OPB simply subtracts the total FTE for all the Table of Organization (T.O.) salary objects (2100, 2130, 5200) from the authorized T.O. to obtain the number of funded vacancies.

27 Louisiana Office of Planning and Budget26 ISIS/HR Data and the Budget Valuable ISIS/HR Reports:  ZP116 — BR9B, which:  for filled positions, projects the salary and related benefits based upon the actual data of each incumbent identified by salary object;  for vacant positions, selects only the vacant positions designated with the “X” in the planned vacancy field. To project salary and related benefits, it uses the midpoint of the job’s pay range associated with the position and predefined specific amounts for the employee shares of retirement, health and life insurance.

28 Louisiana Office of Planning and Budget27 LaPAS  Opens for FY st Quarter Performance Progress Reports on Monday, October 9, Set interim targets prospectively Manage targets throughout the year Targets and actuals are cumulative All data cell entries required for a particular quarter must be complete to get “complete” status Explain, explain, explain  Use LaPAS user forms on the OPB website to request new user IDs and keep user contact information current.  Learn to use all the LaPAS tools.  New LaPAS Administrator, Diana Williamson

29 Louisiana Office of Planning and Budget28 $ Monitoring throughout fiscal year ¢ OPB analysts reconcile agency budgets between the OPB Budg- o-matic database and AFS. ¢ OPB analysts monitor collections by the agencies. ¢ OPB analysts run monthly position reports. ¢ OPB analysts monitor agency quarterly performance progress reports in LaPAS. ¢ OPB analysts monitor reports by legislative auditor and inspector general. Operating Budget Monitoring, Maintenance, and Control

30 Louisiana Office of Planning and Budget29 EB AND RB CONTROLS Office of Planning and Budget Division of Administration State of Louisiana

31 Louisiana Office of Planning and Budget30 OPB reviews and takes action on all EBs and RBs in AFS. Policy and procedures detailed in OPB Memoranda to state agencies. June 16, 2005 July 26, 2005 Available on OPB website: EB-RB CONTROL 30

32 Louisiana Office of Planning and Budget31 Agency must notify OPB analyst and supervisor via whenever an EB is entered into AFS. Agency must submit written justification (Form EB) for all EBs that realign funding between categories. Agency is not required to submit written justification for EBs that realign funding within a category. WHAT MUST AGENCIES DO? 31

33 Louisiana Office of Planning and Budget32 OPB monitors expenditures at both the CATEGORY and OBJECT level. Prior Year Expenditures Appropriated Budget Initial Budget Spread Year-to-Date Expenditure / Percent Expended Existing Operating Budget WHAT DOES OPB DO? 32

34 Louisiana Office of Planning and Budget33 WHAT HAPPENS IF AGENCIES FAIL TO COMPLY? OPB may delay or refuse approval for EBs with insufficient written justifications. If unexpected realignments between expenditure categories are identified in monthly reconciliations, OPB will require object-level justifications for all future EBs. If OPB finds questionable realignments within an expenditure category that an agency cannot sufficiently justify, OPB will require object-level justifications for all future EBs. 33

35 Louisiana Office of Planning and Budget34 $ Mid-Year Adjustments - BA-7 Process ¢ BA-7 form and questionnaire are available on OPB website. ¢ Request must conform with Title 39, preamble of the appropriation act (general or ancillary), and PPM 52. ¢ Both financial and performance data are required. ¢ Form and questionnaire must be complete. ¢ Incomplete BA-7 requests may be returned without action. ¢ Submission must be timely. ¢ Submission by deadline does not guarantee placement on agenda for JLCB meeting. BA-7s

36 Louisiana Office of Planning and Budget35 Executive Orders KBB & 33  KBB “Accountability for Line Item Appropriations” sets forth the requirements of certain appropriations in the General Appropriations Bill (Act 17). propriation.pdf  KBB modified and clarifies language in KBB  Line item appropriations require a cooperative endeavor agreement or contract between the recipient and an executive branch state agency to satisfy the provisions of Article VII, 14 of the Louisiana Constitution.  Susan Smith with the Office of Contractual Review is here to discuss the guidelines.

37 Louisiana Office of Planning and Budget36 Cost Classifications KATR & RITA Hurricanes Katrina & Rita Expenditure and Revenue Tracking  Commissioner’s memo of September 6, 2005, regarding accurately capturing and maintaining all records and documents related to Hurricane Katrina (KATR)  September 23, 2005, similar memo regarding the capture of records for Hurricane Rita (RITA)  Followup memo on September 27, reiterating the importance of identifying “KATR” and “RITA” expenditures reimbursement%20ltr%20for%20JLL.doc  Why is it so important to identify “KATR” and “RITA” expenditures?

38 Louisiana Office of Planning and Budget37 Senate Concurrent Resolutions 43 and 130 TRACKING HURRICANE RECOVERY SPENDING  SCR 43 of the 2005, 1 st Extraordinary Session requested the commissioner of administration to coordinate the efforts of agencies to develop an easily accessible public website detailing information on all recovery spending on disaster related contracts.  SCR 130 of the 2006 Regular Session went further in requesting a website contain a list of all state spending of federal hurricane- related aid updated monthly.

39 Louisiana Office of Planning and Budget38 Senate Concurrent Resolutions 43 and 130 TRACKING HURRICANE RECOVERY SPENDING  Some agencies have already started placing various hurricane recovery spending information on their websites.  To avoid duplication and assure a consistent approach, Neal Underwood with the Office of Electronic Services, is coordinating this website effort.

40 Louisiana Office of Planning and Budget39 Act 640 of 2006  Created: FEMA Reimbursement Fund and State Emergency Response Fund  FEMA Reimbursement Fund is “…for the purpose of providing funds to pay the state’s portion of any amount due the United States….”  State Emergency Response Fund (SERF) is to be “…used to provide a source of funds to pay expenses incurred as a result of activities associated with the preparation for and response to an emergency or declared disaster.”  Agencies must contact Commissioner of Administration’s Office to request use of the SERF before obligating expenditures.  Use of the SERF for specific purposes will be evaluated on a case-by- case basis. NO AGENCY SHOULD SPEND MONEY ASSUMING REIMBURSEMENT FROM THIS FUND.

41 Louisiana Office of Planning and Budget40 Annual Undersecretary Management & Program Evaluation Reports (“Act 160” Reports)  LRS 36:8 requires submission of an annual report summarizing the activities of each undersecretary’s office relating to management and program analysis conducted for preceding fiscal year.  Due to hurricanes Katrina and Rita, report was suspended last year.  However, FY report is required and due December 5,  Guidelines for undersecretary's Annual Management and Program Analysis Report (AMPAR) on OPB website.  AMPAR Form on OPB website.

42 Louisiana Office of Planning and Budget41 Strategic Plan Revision Successful strategic plans are not static. Revision and update are required, at a minimum, every three years after submission of an initial strategic plan. (The OPB recommends an annual effort to track progress toward accomplishment of strategic goals and objectives. This annual review and evaluation may reveal the need to make a few adjustments or accommodations. However, unless extraordinary changes in internal capacity or external operating environment have occurred, it should not be necessary to overhaul or rewrite your entire strategic plan annually.) Due date for next revised and updated strategic plans is July 1, This plan will cover the period of FY through FY Strategic Planning

43 Louisiana Office of Planning and Budget42 Strategic Plan Revision Strategic Planning Revision and update move the plan into the future. A three-year update moves the plan three years into the future. The strategic plan remains a five-year plan. Its start and end dates are moved into the future. FY FY FY FY FY FY FY FY FY Year Strategic Plan Revised 5-Year Strategic Plan

44 Louisiana Office of Planning and Budget43 Strategic Plan Revision Strategic Planning Division of Administration guidelines must be used. Updated guidelines for revising and submitting strategic plans available on OPB website in October Training in strategic planning available through the Comprehensive Public Training Program, beginning in November Your strategic plan is a public document. Publish your plan along with your process documentation, on your department or agency website. Unless your agency does not have website capability, hard copy or other electronic submission does not substitute for website publication. NOTE: If your organization does not have a website, contact the OPB regarding submission of hard copy.

45 Louisiana Office of Planning and Budget44 Strategic Plan Revision Strategic Planning Strategic plans must be submitted to the commissioner of administration (through the OPB) and the standing committee of each house of the legislature having responsibility for oversight of the department/agency. As a practical matter, plans also should be submitted to: > Legislative Fiscal Office > House Appropriations Committee/ House Fiscal Division > Senate Finance Committee/Senate Fiscal Section > Office of the Legislative Auditor To submit your plan, post your plan and process documentation to your website. Then send a notification to the official and courtesy recipients, stating the availability and web location of the plan.

46 Louisiana Office of Planning and Budget45 The OPB reviews department and agency strategic plans for compliance with guidelines and quality of plan contents. OPB reviews are sent to departments and agencies, with feedback on how to improve the plan. Departments/agencies are given a timeline for improving and resubmitting plans to the OPB. Strategic Plan Revision Strategic Planning

47 Louisiana Office of Planning and Budget46 For more information, please visit the Office of Planning and Budget website at: Look for: Executive Budget Documents LaPAS Performance-based Budgeting Forms and Guidelines MANAGEWARE: A Practical Guide to Managing for Results Links to performance-based enabling legislation and appropriation acts

48 Louisiana Office of Planning and Budget47 CONTACT OPB PHONE: (225) FAX: (225) STAFF ASSIGNMENTS AND ADDRESSES AVAILABLE ON THE OPB WEBSITE: 47Louisiana Office of Planning and Budget Office of Planning and Budget

49 Louisiana Office of Planning and Budget48 Louisiana Office of Planning and Budget Office of Planning and Budget ANY OTHER QUESTIONS?


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