Presentation on theme: "WELCOME BUDGET MANAGERS AND CHIEF FISCAL OFFICERS"— Presentation transcript:
1WELCOME BUDGET MANAGERS AND CHIEF FISCAL OFFICERS OSBMState Budget Manual Update July 1, 2007WELCOME BUDGET MANAGERS AND CHIEF FISCAL OFFICERSState Budget Manual Update MeetingJune 20071
2State Budget Manual Update Meeting, June 2007 OSBMState Budget Manual Update July 1, 2007State Budget Manual Update Meeting, June 2007WelcomePurpose of MeetingUpdated Budget ManualIncorporates changes from HB914, State Budget ActIncludes policies since July 2006Improves formatAdds links to related information
3State Budget Manual Update Meeting, June 2007 OSBMState Budget Manual Update July 1, 2007State Budget Manual Update Meeting, June 2007Presentation FormatBudget DevelopmentBudget ExecutionCapital ImprovementsRule AnalysisQ&A
4Budget Development Organization of Budget Development Section OSBMState Budget Manual Update July 1, 2007Budget DevelopmentOrganization of Budget Development SectionAuthorities, roles, and responsibilitiesGeneral requirementsProcess for developing the budget (including specific required elements)Components of the budgetResults based budgetingSystems supporting budget development
5Budget Development Budget Development in the new SBA OSBMState Budget Manual Update July 1, 2007Budget DevelopmentBudget Development in the new SBAG.S. 143C Article 3 - Governor’s Recommended BudgetRequirements for requests – legislative, judicial, state agencies, R&R, CI, ITGovernor’s recommendations (documents), message in short/long sessionsFunds included in the state budgetG.S. 143C Article 4 – Budget RequirementsBalanced budget, limitation on growth (operating budget and positions)143C-1-3 Fund Types / GASB Fund Structure
6OSBMState Budget Manual Update July 1, 2007Budget DevelopmentChange: 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:Continued emphasis on Governor’s results based budgeting initiativeLegislative interest in government performance
7OSBMState Budget Manual Update July 1, 2007Budget DevelopmentChange: 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
8OSBMState Budget Manual Update July 1, 2007Budget DevelopmentChange: Anticipated federal funds defined to include previous funding levels, current grant awards and applications - OSBM policy in Budget Manual Section 3.12Impact:Fully anticipates and budgets receiptsCreates authority to spend, potential challenges when awards vary from prior years or applications
9OSBMState Budget Manual Update July 1, 2007Budget DevelopmentChange: All Governmental and Proprietary Funds Budgeted - G.S. 143C-3-5 (d)Impact:GASB fund types - G.S. 143C-1-3Budgeted v. unbudgeted codesSize of total state budgetBudget preparation timePresentation of budget
10Budget Development Questions? OSBM State Budget Manual Update July 1, 2007Budget DevelopmentQuestions?
11Budget Execution Organization of Budget Execution Section OSBMState Budget Manual Update July 1, 2007Budget ExecutionOrganization of Budget Execution SectionAuthorities, roles, and responsibilitiesBudget by fund sources, structure of the budgetGeneral provisions for budget executionAmending the operating budgetAllotment processInformation technology policies and proceduresFederal funds policies and procedures
12Budget Execution Budget Execution in the new SBA OSBMState Budget Manual Update July 1, 2007Budget ExecutionBudget Execution in the new SBAG.S. 143C Article 6 – Administration of the BudgetBudget enacted by General Assembly; certified budgets of State agenciesBudget adjustments authorizedCompliance with Chapter and appropriations act by State agenciesUse of State funds by non-State entitiesState grant funds: administration; oversight and reporting requirementsFederal and other receipts
13OSBMState Budget Manual Update July 1, 2007Budget ExecutionChange: All Governmental and Proprietary Funds must be Budgeted – G.S. 143C-6-1 (c)Impact:To facilitate compliance, all Governmental and Proprietary Funds that were not included in the 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.
14OSBMState Budget Manual Update July 1, 2007Budget ExecutionChange: Revisions to the Certified Budget are limited – G.S. 143C-1-1 (d)(7)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).
15OSBMState Budget Manual Update July 1, 2007Budget ExecutionChange: Certain budget adjustments can only be nonrecurring – G.S. 143C-6-4(b)(3)(iii)Impact: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.
16Budget Execution Change: Approval of Receipt Supported Positions OSBMState Budget Manual Update July 1, 2007Budget ExecutionChange: Approval of Receipt Supported Positions- G.S. 143C-6-6, G.S. 143C-6-4(3)(iii)Impact: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.
17Budget Execution Change: Use of Lapsed Salary Funds – G.S. 143C-6-9 OSBMState Budget Manual Update July 1, 2007Budget ExecutionChange: Use of Lapsed Salary Funds– G.S. 143C-6-9Impact: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.
18OSBMState Budget Manual Update July 1, 2007Budget ExecutionChange: Information Technology (IT) Funds do not revert until implementation – G.S. 143C-1-2(b)(iii)Impact: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 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.biennium, 2XXXX budget codes for IT projects will be incorporated into the Worksheet I.
19Budget Execution Other Changes: OSBMBudget Manual DiscussionBudget ExecutionOther Changes: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.
20Budget Execution Questions? OSBM State Budget Manual Update July 1, 2007Budget ExecutionQuestions?
21Capital Improvements Consolidates Capital Information OSBMState Budget Manual Update July 1, 2007Capital ImprovementsConsolidates Capital InformationGeneral Statutes Involving CIP, Capital Budget Preparation, and Budget ExecutionGeneral Provisions from Appropriations ActCOPs Procedures & RestrictionsClarifies Close-out Procedures
22Capital Improvements New CIP Requirements Needs Estimates OSBMState Budget Manual Update July 1, 2007Capital ImprovementsNew CIP RequirementsNeeds EstimatesWorksheet III Requirements (Description, Justification, OC-25 Cost Estimate, Operating Costs)Description of Space Needs & Physical RequirementsCash Flow Requirements
23Capital Improvements New Reversion Requirements OSBMState Budget Manual Update July 1, 2007Capital ImprovementsNew Reversion RequirementsPlanning Must Begin in Same Fiscal Year as Funds are AppropriatedConstruction Must Begin Within 2 Fiscal YearsOtherwise, Project Authorization LapsesProject Reserve Account EstablishedExcess Appropriation Not Encumbered by Construction Contract Transferred to OSBM’s Project Reserve AccountUsed for Emergency Repairs, Cost Overruns
24Capital Improvements Questions? OSBM State Budget Manual Update July 1, 2007Capital ImprovementsQuestions?
25OSBMState Budget Manual Update July 1, 2007Rule AnalysisElectronic submission required and Internet posting of final analysisSmall business impact informationMore analysis required for larger rulesFast-track approval for rules that are not significantReplacement of OSBM Form 4 with more flexible format for analysis
26OSBMState Budget Manual Update July 1, 2007Rule AnalysisQuestions?
27Changes to the Budget Manual OSBMState Budget Manual Update July 1, 2007Changes to the Budget ManualQuestions or comments?