df-46 (rev 08/16) priority no. -...

STATE OF CALIFORNIA Budget . C h a n g e P r o p o s a l • C o v e r S h e e t DF-46 (REV 08/16)

Fiscal Year 2017-18

Business Unit 0840

Department State Contro l lers Office

Priority No. 6

Budget Request Name 0840-006-BCP-2017-GB

Program 0500 - STATE C O N T R O L L E R ' S

OFFICE

Subprogram 0500100 - A C C O U N T I N G A N D REPORTING

Budget Request Description State Government Report ing

Budget Request Summary

The State Controller's Office (SCO) requests 8.0 permanent positions and $1,083,000 ($617,000 General Fund [GF], $466,000 Central Service Cost Recovery Fund [CSCRF]) in 2017-18 and $1,067,000 ($608,000 GF, $459,000 CSCRF) in 2018-19 and ongoing to address the continuing workload required to prepare the annual Budgetary/Legal Basis Annual Report (BLBAR) and the Comprehensive Annual Financial Report (CAFR) ; and to address the new and ongoing workload related to implementat ion of account ing and report ing standards issued by the Governmental Account ing Standards Board (GASB).

Requires Legislation

• Yes • N o

Code Section(s) to be Added/Amended/Repea led

Does this BCP contain information technology (IT) components? • Yes • No

If yes, departmental Chief Information Officer must sign.

Department CIO Date

For IT requests, specify the project number, the most recent project approval document (FSR, SPR, S1BA, S2AA, S3SD, S4PRA), and the approval date.

Project No. Project Approval Document: Approval Date:

If proposal affects another department, does other department concur with proposal? • Yes • No Attach comments of affected department, signed and dated by the department director or designee.

Prepared By Date Reviewed By Date

Casandra Moore-Hudnal l , Chief Division of Accounting and Reporting

Larry Norris, Chief Admin and Disb. Division

Department Director Date Agency Secretary Date

Tom Yowell Chief Administrative Officer

George Lolas Chief Operating Officer

Department of F i n a n c e U s e Only

Additional Review: • Capital Outlay • ITCU • F S C U • O S A E • C A L S T A R S • Dept. of Technology

B C P Type: • Policy • Workload Budget per Government Code 13308.05

P P B A Original Signed By: CeriaCaetefteda

Date submitted to the Legislature

B C P Title: State Government Reporting

Budget Request Summary

Personal Services Positions - Permanent

Total Positions

Salaries and Wages Earnings - Permanent

Total Salaries and Wages

Total Staff Benefits Total Personal Services

Operating Expenses and Equipment 5301 - General Expense 5304 - Communications 5322 - Training 5340 - Consulting and Professional Services

External 5340 - Consulting and Professional Services

Interdepartmental 5346 - Information Technology

Total Operating Expenses and Equipment

Total Budget Request

Fund Summary Fund Source - State Operations

0001 - General Fund 9740 - Central Sen/ice Cost Recovery Fund

Total State Operations Expenditures

Total All Funds

Program Summary Program Funding 0500100 - Accounting and Reporting Total All Programs

BCP Fiscal Detail Sheet B R Name: 0840-006-BCP-2017-GB

F Y 1 7 C Y B Y BY+1 BY+2 BY+3 BY+4

0.0 8.0 8.0 8.0 8.0 8.0 0.0 8.0 8.0 8.0 8.0 8.0

0 556 556 556 556 556 $0 $556 $556 $556 $556 $556

0 298 298 298 298 298 $0 $854 $854 $854 $854 $854

0 32 16 16 16 16 0 8 8 8 8 8 0 8 8 8 8 8

0 69 69 69 69 69

0 20 20 20 20 20

0 92 92 92 92 92 $0 $229 $213 $213 $213 $213

$0 $1,083 $1,067 $1,067 $1,067 $1,067

0 617 608 608 608 608 0 466 459 459 459 459

$0 $1,083 $1,067 $1,067 $1,067 $1,067

$0 $1,083 $1,067 $1,067 $1,067 $1,067

0 1,083 1,067 1,067 1,067 1,067 $0 $1,083 $1,067 $1,067 $1,067 $1,067

B C P Title: State Government Reporting

Personal Services Details

B R Name: 0840-006-BCP-2017-GB

Salary Information Positions Min Mid Max

Accounting Administrator II (Eff. 07-01-2017)

C Y B Y BY+1 BY+2 BY+3 BY+4

0.0 1.0 1.0 1.0 1.0 1.0

. Accounting Administrator 1 (Spec) (Eff. ^^^^ " 07-01-2017) 0.0 7.0 7.0 7.0 7.0 7.0

Total Positions 0.0 8.0 8.0 8.0 8.0 8.0

Salaries and Wages C Y BY BY+1 BY+2 BY+3 BY+4

a.RA9 Accounting Administrator II (Eff. 07-^^^^ " 01-2017) 0 78 78 78 78 78

/ 1 C C O Accounting Administrator 1 (Spec) (Eff. ^^^^ • 07-01-2017) 0 478 478 478 478 478

Total Salaries and Wages $0 $556 $556 $556 $556 $556

Staff Benefits 5150900 - Staff Benefits - Other 0 298 298 298 298 298 Total Staff Benefits $0 $298 $298 $298 $298 $298

Total Personal Services $0 $854 $854 $854 $854 $854

A n a l y s i s of Problem,

A. Budget R e q u e s t S u m m a r y

The State Controller's Office (SCO) requests 8.0 permanent positions and $1,083,000 ($617,000 General Fund [GF], $466,000 Central Service Cost Recovery Fund [CSCRF]) in 2017-18 and $1,067,000 ($608,000 GF, $459,000 CSCRF) in 2018-19 and ongoing to address the continuing workload required to prepare the annual Budgetary/Legal Basis Annual Report (BLBAR) and the Comprehensive Annual Financial Report (CAFR) ; and to address the new and ongoing work load related to implementat ion of account ing and report ing standards issued by the Governmenta l Account ing Standards Board (GASB) .

B. B a c k g r o u n d / H i s t o r y

As the Chief Fiscal Officer of California, the State Control ler is responsible for providing sound fiscal controls and independent oversight of more than $100 billion in receipts and disbursements of public funds. An important aspect of providing sound fiscal controls is collecting and analyzing f inancial data and preparing and publishing annual f inancial statement reports for the State of California in accordance with Government Code (GC) Section 12460 and General ly Accepted Account ing Principles (GAAP). To fulfill this requirement, the SCO's Division of Account ing and Report ing (DAR), State Government Report ing (SGR) Bureau, prepares and publishes the BLBAR and the CAFR.

The BLBAR and the CAFR both contain f inancial statements for state funds; however, each report uses different basis of account ing and reporting requirements. The BLBAR is prepared on the same basis as the Governor 's Budget and the Budget Act while the CAFR is prepared strictly in accordance with GAAP. The CAFR contains a more thorough and detai led presentat ion of the State's f inancial condit ion than the BLBAR. Both reports provide a valuable source of statewide f inancial data to policy makers and are used to:

Determine the effects of federal and state changes to laws, policies, and procedures. Determine the level of revenue al located to state programs and local governments. Disclose and understand how state agencies spend public monies, and Provide information to bond rating agencies to determine State borrowing capacity and credit rating.

As the preparer of the State's BLBAR and the CAFR, the SGR is responsible for reviewing the information submitted by the various departments, boards, and commiss ions for accuracy and reasonableness. These financial reports and analysis must be free f rom errors and omissions and presented correctly and t imely as they provide the foundation for the budgetary process and ultimately the State Budget. This information is also crucial in identifying cash f lows and balances. Investors and financial markets use these f inancial reports to determine the State's credit rating and related interest rate.

The SCO is required to adhere to the account ing and reporting standards set forth by the respect ive govern ing entity; the Department of Finance (DOF) and SCO for the BLBAR; and GASB for the CAFR. Compl iance with these standards is required for the State to issue bonds and for federal f inancial compl iance.

Since 2012 the steady increase in the number of new account ing and reporting standards set by G A S B , and the complexity in implementing these standards, has resulted in a significant increase to SGR's work load. For example, the GASB has issued eighteen new account ing and reporting standards since 2012, compared to about two a year in the nine years prior. Each new standard requires interpretation through extensive analysis to determine the impact on the State's f inancial statements and to ensure the standard is implemented properly and accurately. Once a GASB statement has been implemented, there is still a workload that cont inues in future years to ensure that the standard's requirements continue to be met and the State's f inancial s tatements are in compliance with GAAP and Government Code (GC) section 12460. In some cases, the implementat ion is straight-forward requiring a one-t ime adjustment and simple notif ication. In other cases, the new standard is extremely complex, difficult to implement, and significantly increases the ongoing work load.

In 2015-16 the SCO received 6.8 permanent positions through two Budget Change Proposals (BCP) , State Government Reporting and Special Fund Review and Reporting Workload (5.0 posit ions for SGR; 1.5 posit ions for Financial Information Systems and Technology Bureau within DAR; and 0.3 for admin support) , to address the increased workload associated with state government report ing. Associated work load includes the

- 1 -

A n a l y s i s of Problem

implementat ion of new or changes to accounting standards and ongoing detailed analyses. Whi le these resources helped address the workload, some of the standards proved to be more complex than originally anticipated. It is apparent that existing resources are not sufficient to address the complexit ies and increased work load. To address this issue, in 2014-15 the SCO utilized Personal Service savings to hire 5.0 full-t ime staff in the Temporary Help blanket and 2.0 retired annuitants, as well as authorized staff overt ime. The SCO does not have the ability to absorb these ongoing expenditures and is now seeking addit ional resources and permanent funding for this work.

The SGR's current authorized staffing level is 28.6 positions and is comprised of three sect ions for managerial/supervisory reporting purposes: 1) Budgetary/Legal (BL); 2) GAAP; and 3) Policy.

Resource History (Dollars in thousands)

Program Budget 2011-12 2012-13 2013-14 2014-15 2015-16

Authorized Expenditures $2,121 $2,222 $3,086 $3,070 $2,538

Actual Expenditures'' $2,108 $2,369 $2,667 $3,036 $2,930

Revenues - - - - -

Authorized Positions 24.6 23.6 30.63 30.63 28.6''

Filled Positions'^ 23.6 23.6 29.1 35.5 34.6

\/acancies 1.02 0.0 1.5 -4.9 -6.0 ^ Includes overtime and Temporary Help expenditures. 2 This position was eliminated effective 7/1/12 as part of the salary savings drill per Budget Letter 12-03. 3 Includes 7.0 two-year limited-term positions to perform detailed analyses of special funds, approved through a 2013-14 BCP. " Includes 5.0 permanent positions approved through two 2015-16 BCPs (4.0 positions for state government reporting and 1.0 position for continued speciai fund review). 3 Reflects filled positions as of June 30 each year. Some positions were vacant during the year and other positions were downgraded for recruitment purposes resulting in reduced expenditures.

Workload History

Workload Measure^ 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Estimates^

GASB Analysis/Implementation; Exposure Drafts, and Implementation Guides

3,118 3,194 4,185 2,983 4,450 5,616

Budgetary/Legal Basis Activities 18,385 17,054 23,673 35,607 30,266 30,756

GAAP Basis Activities 9,503 10,125 11,709 11,787 12,666 11,837

CAFR Publication Activities 9,307 10,079 11,508 12,056 12,460 13,627

New Fund and Segment Reviews 480 480 400 400 4003 480

Quality Assurance Reviews 0 0 927 956 40V 962 Other Postemployment Benefits (OPEB) Liability Workload 0 821 821 821 821 821

State Agency Training 0 0 112 112 112 128 Pension Liability Workload (Ongoing)5 0 0 0 0 0 4,382

•' Workload Measures are in hours. 3 2016-17 estimates are based on prior year actuals and projected new workload hours. 3 Segment.reviews were not completed due to lack of resources. " Quality assurance reviews for special funds were not completed due to lack of resources. 3 New workload starting in 2016-17.

-2-


C . State Level Cons idera t ions

The State Control ler is the trusted source for independent, accurate, t imely, and reliable f inancial information and services, and core to the SCO's mission is to "strengthen California's f iscal and economic standing by protecting taxpayer dollars, providing sound f inancial management services, promot ing t ransparency in government and pioneering policies to further economic development."

The f inancial reports prepared and publ ished by the SCO represent the only source of statewide f inancial data avai lable to policy makers in all levels of government . Those who rely on the accuracy and t imel iness of these f inancial reports to analyze trends and evaluate the State's f inances include but are not l imited to the fol lowing:

• California Legislature • Department of Finance • Federal and state agencies • Bond rating, investment, and consult ing f irms • Local government agencies • Public policy advocacy groups • Employee unions • Col leges and universities • Public libraries • General public

For example, California's CAFR is used extensively by the California Legislature, federal and state agencies, bond rating agencies, investors, and consultants to prepare and administer the State's genera l obl igation bonds. W h e n bonds are issued, the State ' receives a bond rating f rom rating agencies, such as Moody 's Investors Service, Standard & Poor's, and Fitch Ratings. Delayed release of the BLBAR and the CAFR reports could result in increased costs to the State due to negative bond ratings and possible loss or reduct ion in federal awards, among other things. Addit ionally, if the information provided in these reports is inaccurate, those individuals relying on this information for investments may discont inue investment in the State. This may create a loss of revenue and may damage the State's reputation.

GC Section 12460 requires the Control ler to annual ly publish a CAFR that is prepared strictly in accordance with GAAP and publish the BLBAR in compl iance with state law, regulat ions, and policies. The State benefits from having a CAFR prepared in compl iance with GAAP because it presents economic and demographic data that is interpreted in conjunction with the f inancial statements to assess a government 's credit worth iness. Failure to implement new GASBs and to issue f inancial statements in accordance with G A A P will result in a modified or an adverse opinion from the California State Auditor (CSA) on the State's f inancial s tatements and the SCO believes may lead to a downgrade in the State's credit rating, loss of faith by investors and ult imately, an increase in the State's interest costs.

This proposal is also consistent with the Control ler 's Strategic Plan and supports the object ive of safeguarding public funds by producing reliable and accurate f inancial statements.

D. Justif ication

The SGR has the responsibility to interpret, analyze, and implement new GASB pronouncements , ensur ing that the State's financial statements are in compl iance with all standards and requirements and fairly represent the financial standing of the state. The State is required to comply with account ing s tandards; non-compl iance would mean a modified or adverse audit opinion on its f inancial statements f rom the CSA. A modif ied or an adverse audit opinion may lead to a downgrade of the State's credit rating resulting in higher borrowing rates and loss of revenues to the State.

In addition to implementing GASBs, preparing the BLBAR, and the CAFR, SGR performs work load consist ing of, but not limited to, the fol lowing:

-3-


Open house for agencies preparat ion State agency training State Fund Accounting course presentat ions Process of accounts receivable information gathering Ongoing \workload from previous GASB implementat ions Component unit reviews or analysis Quality assurance reviews Analysis of new GASB exposure drafts and implementat ion guides Workgroup participation (e.g. California Actuarial Advisory Panel (CAAP), Commi t tee on Account ing, Reporting and Audit ing (CARA), and the OPEB working group sponsored by the National Associat ion of State Auditors, Comptrollers and Treasurers (NASACT)) . New GASB presentations to execut ive management or other interested parties

Implementation of new standards general ly occurs one year or more after the standard is issued. For example, GASB 68 "Accounting and Financial Reporting for Pensions," was issued in June 2012, which required the SCO to implement the standard for the 2014-15 CAFR. The work for this CAFR was per formed in 2015-16. Due to the complexity of GASB 68, minimal or no effort was expended to complete the follov^ing critical tasks in 2015-16:

• Segment reviews • Special Fund/General Fund reviews • Preparation of exposure draft responses, and implementat ion guide drafts • Fund folder reviews • Participation in workgroups

In addit ion to the new accounting and reporting standards, to comply with audit standards, the CSA is now requiring the SCO to perform certain procedures termed "employer responsibilit ies." These responsibi l i t ies include, but are not limited to, performing census data testing and validating actuarial assumpt ions. This entails annual selection of a minimum of three state agencies and a sampling of the selected agency employees, and validating their employment records for pension purposes. It also involves reviewing eight account ing valuation reports and validating all of the assumptions associated with the reports. Furthermore, the S C O issues a new assurance report on pensionable compensat ion which provides certain state entities and their external auditors supporting information related to GASB 68. These addit ional responsibilities result in a signif icant increase to SGR's workload.

Based on the SCO's experience in implement ing previous GASBs and in its preliminary review of the upcoming GASBs, the SCO has identified the level of effort required to implement the new GASBs (not including the initial interpretation and extensive analysis or determination of the impact on the State's f inancial statements), and whether there will be significant ongoing workload as shown in the table below.

-4-


GASB Statements Title

of -Effort"

•

-Appfiacimafe Hours to

• Implement

.'•7' t i . ' 5 « ' T' ' p-' Significant;, Ongoing '

Workload by S C O Staff

2016-17 Workload for 2015-16 CAFR GASB 72 Fair Value Measurement and Application Medium 700 Yes

GASB 73

Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB 68 and Amendments to Certain Provisions of GASB Statements 67 and 68 Low 200 No

GASB 76 Hierarchy of Generally Accepted Accounting Principles of State and Local Government Low 40 No

GASB 79 Certain External Investment Pools and Pool Participants Low 40 No

2017-18 Workload for 2016-17 CAFR

GASB 74 Financial Reporting for Postemployment Benefits Other than Pension Plans High 1,500 Yes

GASB 77 Tax Abatements High 1,500 Yes

GASB 78 Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans Low 40 No

GASB 80 Blending Requirements for Certain Component Units Medium 700 Yes

GASB 82 Pension Issues - an Amendment of GASB Statements 67, 68 and 73 Medium 700 Yes

2018-19 Workload for 2017-18 CAFR GASB 75 Accounting and Financial Reporting for OPEB High 2,000 Yes

GASB 81 Irrevocable Split-Interest Agreements Medium 700 No ' In comparison to GASB 68.

Four of the five GASBs that must be implemented in 2017-18, will require a medium-to-h igh level of effort to implement and maintain. For GASBs 74 and 75 (OPEB) , the SCO anticipates that nearly every e lement of the GASB 68 implementation and ongoing work will need to be similar including but not l imited to obtaining legal opinions, accounting for and reconcil ing employer and non-employer contributions, conf i rming assets and developing and refining allocation models. For GASBs 77, 80, 81 and 82, there will be signif icant efforts in surveying all state agencies to identify which agencies account for and report the t ransact ions pert inent to each of these GASBs. SGR will be providing training and guidance to the impacted agencies to ensure that the transactions are accounted for and reported in accordance with the new standard and will per form its due dil igence on the transactions to ensure that amounts included in the CAFR are valid and accurate.

The SGR will be continuously reviewing the future GASB exposure releases. The average cycle for an exposure draft to become a new pronouncement spans a three-year per iod—from exposure draft to actual implementat ion. With the addition of needed staff, SGR would be able to plan ahead for the upcoming GASBs and provide departments with guidance in a t imelier manner; thus allowing the depar tments to more accurately plan their work and be alerted to the particular information they will be required to provide to the S C O for inclusion in the state's financial statements.

Once a GASB statement has been implemented, there is still a workload that cont inues in future years to ensure that the standard's requirements continue to be met and the State's f inancial s ta tements meet the reporting standards. As noted in At tachment I, current staff will continue to perform the ongoing work, such as GASBs 43 and 45 (OPEB) and 54 (new fund reviews, segment reviews, Special Funds and Genera l Fund classification); component unit reviews or analysis; review of CAFR sections (e.g. footnotes, RSI footnotes) to ensure compliance with reporting standards; quality assurance reviews of the work per formed that supports the publication of both the BLBAR and the CAFR; analysis of new GASB exposure drafts and implementat ion guides (prior to issuance as a standard or authoritative guide); workgroup participation (e.g. CAAP, CARA, and

-5-


the OPEB working group sponsored by NASACT) ; fund folder work; new GASB presentat ions to execut ive management and other interested parties; training and working with the CSA during the audit of the CAFR, prior to issuance.

The s e c is requesting 8.0 permanent positions (bringing the total SGR authorized posit ions to 36.6) to address the continuing workload required to prepare the annual BLBAR and the CAFR and to address the new and ongoing workload related to implementat ion of accounting and reporting standards issued by the GASB.

Accountincf Administrator II - 1.0 Position This position will oversee the additional workload and would allow the SGR Bureau Chief to better plan, direct, and oversee the work of the entire bureau. This position will also direct and monitor staff work load, work directly with staff to perform the more highly complex tasks, review staff work prior to submission to the SGR Bureau Chief for review, direct the quality assurance reviews, and act as a liaison with agencies.

Accountincf Administrator I (Specialist) - 7.0 Positions The specialists will perform the more highly complex tasks related to the preparation of the BLBAR and the CAFR. These positions will also responsible for the analysis of new account ing standards, part icipating in information gathering and implementat ion workgroups and preparing implementat ion guides. The special ists will also perform ongoing workload related to previously-issued accounting standards.

Attachment I provides workload details for the above positions.

E. Outcomes and Accountabil i ty

Approval of this proposal will provide the SCO necessary and sufficient resources to address the increased workload, provide and ensure an accurate and timely release of the state's f inancial reports, and permit S C C to provide appropriate and ample training and support to state agencies and departments in the implementation of new GASB requirements.

Projected Outcomes"'^ Workload Measure 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 GASB Analysis/Implementation; Exposure Drafts, and Implementation Guides 5,616 6,437 6,437 5,616 5,616 5,616

Budgetary/Legal Basis Activities 30,756 30,756 30,756 30,756 30,756 30,756

GAAP Basis Activities 11,837 13,237 13,237 13,237 13,237 13,237

CAFR Publication Activities 13,627 13,627 13,627 13,627 13,627 13,627

New Fund and Segment Reviews 480 480 480 480 480 480

Quality Assurance Reviews 962 962 962 962 962 962 Other Postemployment Benefits (OPEB) Liability Workload 821 2,100 2,100 2,925 2,925 2,925

State Agency Training 128 128 128 128 128 128

Pension Liability Workload (Ongoing) 4,382 4,382 4,382 4,382 4,382 4,382 ^ Workload Measures are in tiours and based on 2015-16 actual hours plus proected workload hours for new GASBs and associated tasks. 2 With the 8.0 approved positions, approximately 70% of the workload can he achieved. The remaining workload will have to he ahsorhed through overtime and/or other measures, which may not he sustainahle. The SCO will continue to review the workload and may submit future requests for additional positions.

F. Ana lys is of All Feasib le Alternatives

Alternative 1: Provide the SCC with 8.0 permanent positions and $1,083,000 ($617,000 General Fund [GF], $466,000 Central Service Cost Recovery Fund [CSCRF]) in 2017-18 and $1,067,000 ($608,000 GF, $459,000 CSCRF) in 2018-19 and ongoing to address the continuing workload required to prepare the annual Budgetary/Legal Basis Annual Report (BLBAR) and the Comprehensive Annual Financial Report (CAFR); and

-6-


to address the new and ongoing work load related to implementat ion of account ing and report ing s tandards issued by the Governmenta l Account ing Standards Board (GASB).

Pros; • Helps to ensure that the data within the State's f inancial reports is accurate, t imely and in

compl iance with the account ing and report ing standards. • Provides the SCO with some addit ional ability to perform more thorough reviews of information

submitted by reporting agencies for a t imely and accurate publication of BLBAR and CAFR. • Contr ibutes to providing t imely and accurate f inancial reports for use by credit rating agencies and

investors to secure their conf idence in t l ie State's ability to pay the State's debt. • Helps to minimize the l ikelihood of a modif ied or an adverse audit opinion f rom the CSA on the

State's f inancial statements. • Enhances the SCC's ability to meet deadl ines for publication of State's f inancial s tatements. » Provides some of the necessary resources to address the chal lenges in the implementat ion of new

accounting and reporting standards issued by GASB and perform the ongoing work associated with the new and upcoming standards.

• Helps to addresses changes in account ing and reporting requirements in an eff icient and t imely manner.

C o n s : • Increased costs to the GF and CSCRF. • With the 8.0 approved posit ions, approximately 70% of the workload can be ach ieved. The

remaining work load will have to be absorbed through overt ime and/or other measures , which may not be sustainable.

• If the impending work load exceeds the 8.0 posit ions, future requests for addit ional posit ions may be submitted.

Alternative 2: Provide the S C C with 12.0 permanent positions and $1,566,000 ($893,000 General Fund [GF], $673,000 Central Service Cost Recovery Fund [CSCRF]) in 2017-18 and $1,518,000 ($865,000 GF, $653,000 CSCRF) in 2018-19 and ongoing to address the continuing workload required to prepare the annual Budgetary/Legal Basis Annual Report (BLBAR) and the Comprehensive Annual Financial Report (CAFR) ; and to address the new and ongoing work load related to implementat ion of account ing and report ing standards issued by the Governmental Account ing Standards Board (GASB).

Pros: • Ensures that the data within the State's f inancial reports is accurate, t imely and in compl iance with

the accounting and reporting standards. • Enables the SCO to produce accurate and timely f inancial reports for various stakeholders and

decision makers. • Ensures that the SCO performs more thorough reviews of information submit ted by report ing

agencies for a t imely and accurate publication of BLBAR and CAFR. • Provides timely and accurate f inancial reports for use by credit rating agencies and investors to

secure their confidence in the State's ability to pay the State's debt. • Minimizes the likelihood of a modif ied or an adverse audit opinion from the CSA on the State's

financial statements. • Ensure that the SCO meets reporting deadlines for publication of State's f inancial statements. • Provides the necessary resources to address the chal lenges in the implementat ion of new

accounting and reporting standards issued by GASB and perform the ongoing work associated with the new and upcoming standards.

• Increases effectiveness and eff iciency in providing annual programming changes to account ing and reporting indexes, databases, report inquiry systems, and desktop publ ishing integrat ion.

• Addresses changes in account ing and reporting requirements in an efficient and t imely manner. • Decreases the need for overt ime and provides a more manageable staff work load which will

prevent staff turnover and burnout; thereby, retaining exper ienced staff for this critical work load.

-7-


C o n s : « increased costs to the GF and CSCRF.

Alternative 3: Provide the SCO with $1,566,000 ($893,000 General Fund [GF], $673,000 Central Service Cost Recovery Fund [CSCRF]) in 2017-18 and $1,518,000 ($865,000 GF, $653,000 CSCRF) in 2018-19 and 2019-20 to support 8.0 permanent positions and 4.0 three-year l imited-term positions to temporar i ly address the continuing workload required to prepare the annual Budgetary/Legal Basis Annual Report (BLBAR) and the Comprehensive Annual Financial Report (CAFR); and to address the new and ongoing work load related to implementat ion of accounting and reporting standards issued by the Governmental Account ing Standards Board (GASB).

Pros: • Ensures that the data within the State's financial reports is accurate, t imely and in compl iance with

the accounting and reporting standards, through 2019-20. • Enables the SCO to produce accurate and timely financial reports for various stakeholders and

decision makers, through 2019-20. • Ensures that the SCO performs a more thorough review of information submit ted by reporting

agencies for a timely and accurate publication of BLBAR and CAFR, through 2019-20. • Provides timely and accurate financial reports for use by credit rating agencies and investors to

secure their confidence in the State's ability to pay the State's debt. • Minimizes the likelihood of a modified or an adverse audit opinion from the CSA on the State's

financial statements, through 2019-20. • Meets statutory deadlines for publication of State's financial statements, through 2019-20. • Provides the necessary resources to address the challenges in the implementat ion of new

accounting and reporting standards issued by GASB and perform the ongoing work associated with the new and upcoming standards, through 2019-20.

• Increases effectiveness and efficiency in providing annual programming changes to account ing and reporting indexes, databases, report inquiry systems, and desktop publishing integrat ion, through 2019-20.

• Addresses changes in accounting and reporting requirements in an efficient and t imely manner, through 2019-20.

• Decreases the need for overt ime and provides a more manageable staff work load which will prevent staff turnover and burnout; thereby, retaining experienced staff for this critical work load, through 2019-20.

C o n s : • Increased costs to the GF and CSCRF through 2019-20. • Temporari ly addresses a continuously increasing workload.

Alternative 4: Do not provide requested resources.

Pros:

. No additional costs to the GF and CSCRF.

C o n s : • Will not enable the SCO to stay current with the new GASBs. • Inability to implement current and future GASBs and ensure their ongoing effects on the State's

financial reports. • Staffing resources in DAR and within SCO do not exist to address increased work load. • Inability to continuously provide training and assistance to other State agencies regarding new

GASB statements and their impact on the agencies' f inancial statements. • Deficiencies could occur in information provided to credit rating agencies and investors. • Reduced State's credit ratings and investors' confidence may result in reduced market availability of

external cash or at a much higher cost.

-8-


• SGR will continue to exper ience increased turnover due to staff burnout leading to inexper ienced staff, lower quality work, and delays in complet ing required workloads.

• Nevj GASB statements may not be implemented by required dates, therefore the State's f inancial statements would not be in accordance with GAAP, which would likely result in an adverse audit opinion by the CSA.

t Possible loss or reduction in the federal funding or grant monies if the CAFR is not issued by the required due date of March 3 1 .

• The ability to fol low the new GASB pronouncement cycle from concept to pronouncement , which Lisually takes about three years, will continue to be impaired due to insufficient resources, causing the SCO to continue playing catch-up instead of being prepared to implement new GASBs as they are issued.

« Will require overt ime to be performed and create staff burnout and turnover; thereby, being unable to retain experienced staff for this critical work load.

• Decreases effect iveness and efficiency in providing annual programming changes to account ing and reporting indexes, databases, report inquiry systems, and desktop publ ishing integration due to lack of resources.

« Will create the inability to address changes in accounting and reporting requi rements in an efficient and timely manner.

G . Implementation Plan

Time Frame Outcome

May 1, 2017 to June 30,2017 Recruit and hire staff.

July, 2017 to April 2018 Staff attend SGR training academy. Training continues through the reporting cycle.

Ongoing

Perform analysis of new GASBs; Perform ongoing workload related to previously-issued GASBs; Review and process Budgetary/Legal year-end statements; Perform other tasks detailed in Attachment 1 -Workload Justification.

H. Supplemental Information

In addition to the SCC standard C E & E complement , the SCC requests addit ional funding for the fol lowing:

Genera l E x p e n s e - $16,000 in one-t ime funding to support the purchase of PCs, monitors and standard software/l icenses for eight posit ions.

Consul t ing & Professional S e r v i c e s (Internal) - $20,000 in ongoing funding for an interagency agreement with CalPERS to provide S C C with GASB 68 Account ing Valuation Reports.

Consul t ing & Professional S e r v i c e s (External) - $69,000 in ongoing funding for a consul tant contract to provide SCC with expert account ing services related to GASB implementat ions.

Information Technology - $60,000 in ongoing funding for non-standard software used for publ icat ions.

I. Recommendat ion

Approve Alternative 1: Provide the SCO with 8.0 permanent positions and $1,083,000 ($617,000 General Fund [GF], $466,000 Central Service Cost Recovery Fund [CSCRF]) in 2017-18 and $1,067,000 ($608,000 GF, $459,000 CSCRF) in 2018-19 and ongoing to address the continuing work load required to prepare the annual Budgetaiy/Legal Basis Annual Report (BLBAR) and the Comprehensive Annual Financial Report (CAFR); and to address the new and ongoing workload related to implementat ion of account ing and report ing standards issued by the Governmental Account ing Standards Board (GASB).

-9-

S T A T E C O N T R O L L E R ' S O F F I C E

State Government Reporting

Attachment I

l o f 6

Workload Description

N e w A n n u a l Inc reased W o r k l o a d /

Task

A n n u a l Hou rs per

T a s k

Tota l Inc reased

Hours

N u m b e r of Pos i t ions

C l a s s i f i c a t i o n : A c c o u n t i n g Admin is t ra to r III Major Responsibility: As SGR Bureau Chief, direct, guide and monitor all SGR activities; develop policy decisions concerning state government reporting and perform normal managerial duties.

> Provide direction and guidance to GAAP section staff. 1 1.421 1.421 0.8 > Provide direction and guidance to B/L section staff. 1 89 89 0.1 > Provide direction and guidance to Policy section staff. 1 178 178 0.1 > Evaluate bureau performance; direct and guide subordinate managers on staff development and training; attend meetings; and complete other managerial tasks as assigned. 1 89 89 0.1

Workload assumption: Based on historical experience and workload. Total - Accounting Administrator III 4.0 1.777 1,777 1.0

Less.' Authorized positions (10) Total Need - Accounting Administrator III 0.0 Total Request - Accounting Administrator III 0.0

C l a s s i f i c a t i o n : A c c o u n t i n g Admin is t ra to r II

Major Responsibility: Provide leadership, ensure effective and efflcient operations, and participate in policy concerns.

GASBAnalYSis/lmplementation; Exposure Drafts, and Implementation Guides > Direct and review the process for new GASB analysis and implementation; and prepare responses to exposure drafts and draft implementation guides. 7 112 784 0.4 Budaetarv/Leaal Basis Activities > Direct, guide, and manage the activities for Budgetary/Legal new reporting cycle; Tasks include reviewing 1) B/L system set up; 2) validation of the CSU SAM 99 testing and production files; 3) B/L Log Report database and the Accounts Receivable (AR) Excel tracking log set up and maintenance; 4) fund folder preparation; 5) preparing and posting reports to the SCO website for state agencies to prepare year-end statements; and training materials preparation for the state agency training. 1,683 0 190 0.1 > Direct and guide the activities for Budgetary/Legal Year-End Statements review process: Tasks include 1) reviewing and processing General Fund. Other Funds, and FI$Cal agencies' year-end statements; 2) reviewing the Report of Accounts Outside the State Treasury; 3) reviewing the reconciliation of the General Fund and Special Funds Reports to the DOF; 4) reviewing the reconciliation of the Proposition 98 reports; and 5) overseeing the process of the AR reports.

1.905 0 908 0.5 > Direct, guide, and manage the process of preparing the BLBAR and Supplements publications. 33 14 455 0.3 > Direct, guide, and manage the process of closing Budgetary/Legal reporting cycle: Tasks include 1) posting of the criteria worksheets to the website; 2) fund folders final review for open house event, and 3) overseeing open house events for state agencies. 4.952 0 55 0.0 > Participate in other SGR duties: Tasks include 1) reviewing Fi$Cal functional design documents and attending Fi$Cal meetings; and 2) reviewing the reports posted to the SCO website in compliance with the American Disability Act (ADA) requirements. 40 5 219 0.1 GAAP Basis Activities > Direct, guide, and manage the preparation process activities for GAAP new reporting cycle: Tasks include 1) setting up the GAAP system; and 2) reversing prior year GAAP adjustment entries. 21 14 284 0.2 > Direct and guide staff; as well as review state agencies' submitted entries: Tasks include processing of Agency submitted management representation letters. General Funds. Internal Agency Funds (General Fund). Capital Project Funds. Special Revenue Funds. 0890 Federal Trust Funds. Internal Agency Funds (Special Revenue). Fiduciary Funds. 86 6 474 0.3 > Direct and guide staff; as well as review Fund-Based statements from state agencies or prepared by SCO: Tasks include processing of Enterprise Funds. Internal Service Funds. Fiduciary Funds, and Component Units. 88 1 123 0.1 > Direct and guide staff; as well as review miscellaneous Fund-Based adjustment entries; Tasks include processing of General Fund. Other Governmental Fund. Transportation Fund, and Agency Fund adjustments. 27 2 52 0.0 > Participate in administrative activities: Tasks include attending meetings, state agency training, and State Fund Accounting Course presentations. 288 4 1.130 0.6



Attact iment I

2 of 6



Task

A n n u a l Hours per

Task

Tota l Inc reased

Hours


CAFR Publication Activities > Direct and guide staff; as well as review CAFR major tasks whicti include processing of Interfund Receivable/Payable, PMIA Loans, Loans Receivable/Payable, Due froms and Due Tos, B/L Deferred Payroll Elimination Transactions, Transfers In and Transfers out, Deferred Receivables, Capital Assets and Leases, Calculation of Compensated Absences Liability, Calculation of Workers' Compensation Liability, Pension Obligation, Net OPEB Obligation, Certificates of Participation, Commercial Paper, G.O. Bonds - Debt Service and Bonds Payable, Debt Service funds Adjustments, Government-Wide Net investments in Capital Assets (NICA), Other Non Current Liabilities, Fund Balance, Fund-Based Financial Statements Review (Combining Statements), Government-Wide Statements of Net Positions, Statement of Activities, Letters, Management Discussion and Analysis (MD&A), Notes, •

Required Supplementary Information, and Statistical Section. 540 3 1.831 1.0

> Direct and guide staff; as well as review the preparation of the CAFR publication; Tasks include processing of CAFR with Amounts. CAFR Review and Approval, and After CAFR Release. 20 26 528 0.3 > Direct and guide staff; as well as review the preparation of CAFR Supplement publications: Tasks include processing of 1) Budgetary Comparison Schedule for General Fund. Federal Trust Fund. Transportation Fund. Environmental and Natural Resources Funds, and Non-major Governmental Funds; and 2) reviewing and publishing the CAFR Supplement. , 15 4 63 0.0 New Fund and Seament Reviews > Review the increased on-going workload related to GASB 54: Tasks include processing of Segment Reviews. New Fund Analysis, and Special Fund/General Fund Classification. 20 4 80 0.1 Qua/ifyr Assurance Reviews 0.0 > Direct and manage quality assurance review activities. 8 0 2 0.0 OPEBLiabiiitYWorkioad 0 0.0 > Direct and review GASB 43 and 45 activities. , v , 1 137 137 0.1 Sfafe Aaencv Trainina > Conduct training to state agencies. 2 8 16 0.0 Pension Liabilitv Workioad > Direct and review the increased on-going workload related to GASB 68 and 7 1 : Tasks include processing of Pensionable Compensation Determination. Allocation of Pensionable Compensation. Accounting Valuation Report Review and Analysis. CalPERS Master Sheet Preparation. Census Data Testing. Actuarial Assumption Reviews. Agency Requests. AU-C 805 Report. Note Disclosure and Required Supplementary Information. Deferred Employer Contribution Analysis. Accounting Entries. Providing GASB 68 data to agencies with non-centralized payroll, and identifying new funds subject to GASB 68 and 71 . 82 8 641 0.4

Workioad assumption: The activities and hours are derived from historical workload experience as well as estimated new workload. Total - Accounting Administrator 11 9.818 349 7.972 4.5 Less: Authorized positions (3.0) Total Need - Accounting Administrator II 1.5 Total Request - Accounting Administrator ii 1.0

C l a s s i f i c a t i o n : A c c o u n t i n g Admin is t ra tor 1 (Sup) Major Responsibility: Plan, direct and control the work of staff. Review staff work and report status to upper management.

Budoetarv/Leaal Basis Activities >Review the process for the Budgetary/Legal new reporting cycle and work directly with staff: Tasks include reviewing the following processes: 1) B/L system set up; 2) validation of the CSU SAM 99 testing and production files; 3) B/L Log Report database and the AR Excel tracking log set up and maintenance; 4) fund folder preparation; 5) preparing and posting reports to the SCO website for state agencies to prepare year-end statements; and 6) training materials preparation for the state agency training. 240 2 456 0.3 > Review Budgetary/Legal Year-End Statements: Tasks include reviewing and processing of 1) General Fund. Other Funds, and FI$Cal agencies' year-end statements; 2) Report of Accounts Outside the State Treasury; 3) Reconciliation of the General Fund and Special Funds Reports to the DOF; 4) Reconciliation of the Proposition 98 reports; and 5) overseeing the process of the AR reports. 217 9 1.886 1.1 > Review the preparation for the Budgetary/Legal Basis Annual Report (BLBAR) and Supplements and work directly with staff: Tasks include reviewing 1) BLBAR workplan; 2) the process of BLBAR for transmittal letters, notes. combined/comparative statements, etc.; 3) the process of BLBAR Supplements Volumes 1 & II. 33 22 710 0.4 > Review the process for closing Budgetary/Legal reporting cycle and work directly with staff: Tasks include 1) posting of the criteria worksheets to the website; 2) final review of fund folders for open house events; and 3) overseeing open house events for state agencies. 4.952 0 85 0.1 > Participate in other SGR duties: Tasks include 1) reviewing FISCal functional design documents and attending FI$Cal meetings; and 2) reviewing the reports posted to the SCO website in compliance with the ADA requirements.

40 11 438 0.3

S T A T E C O N T R O L L E R ' S O F F I C E At tachment I 3 of 6

State Government Reporting '



T a s k


T a s k

Tota l Inc reased

Hours

N u m b e r o f Pos i t ions

GAAP Basis Activities > Perform GAAP system database setup. 7 13 90 0.1 > Reverse prior-year GAAP Adjustments. 14 2 30 0.0 > Review state agencies' submitted entries: Tasks include processing of Agency submitted management representation letters, General Funds, Internal Agency Funds (General Fund), Capital Project Funds, Special Revenue Funds, 0890 Federal Trust Funds, internal Agency Funds (Special Revenue), Fiduciary Funds.

86 0 35 0.0 > Review Fund-Based statements from state agencies or prepared by SCO: Tasks include processing of Enterprise Funds, internal Service Funds. Fiduciary Funds, and Component Units. 88 1 65 0.0 > Review miscellaneous Fund-Based adjustment entries: Tasks include processing of General Fund. Other Governmental Fund. Transportation Fund, and Agency Fund adjustments. 27 1 40 0.0 > Perform other administrative duties including participating in meetings.

288 4 1.008 0.6 CAFR Publication Activities > Review CAFR major tasks which include processing of Interfund Receivable/Payable. PMIA Loans. Loans Receivable/Payable. Due froms and Due Tos. B/L Deferred Payroll Elimination Transactions. Transfers In and Transfers out, Deferred Receivables. Capital Assets and Leases. Calculation of Compensated Absences Liability. Calculation of Workers' Compensation Liability. Pension Obligation. Net OPEB Obligation. Certificates of Participation. Commercial Paper. G.O. Bonds - Debt Service and Bonds Payable. Debt Service funds Adjustments. Government-Wide Net Investments in Capital Assets (NICA). Other Non Current Liabilities. Fund Balance, Fund-Based Financial Statements Review (Combining Statements). Government-Wide Statements of Net Positions. Statement of Activities. Letters. Management Discussion and Analysis (MD&A). Notes. Required Supplementary information, and Statistical Section. 557 0 197 0.1 > Review the preparation of the CAFR publication and work directly with staff: Tasks include processing of CAFR with Amounts. CAFR Review and Approval, and After CAFR Release. 20 6 110 0.1 > Review the preparation of the CAFR Supplement publication and work directly with staff: Tasks include processing of 1) Budgetary Comparison Schedule for General Fund. Federal Trust Fund. Transportation Fund. Environmental and Natural Resources Funds, and Non-major Governmental Funds; and 2) reviewing and publishing the CAFR Supplement. 15 8 125 0.1

Work ioad a s s u m p t i o n : The activities and hours are derived from historical workload experience as well as estimated new workload. Total - Accounting Administrator 1 (Sup) 6.584 78 5.275 3.0

Less: Authorized positions (3.0)

Total Need - Accounting Administrator 1 (Sup) 0.0

Total Request - A c c o u n t i n g Admin is t ra to r i (Sup) 0.0

C l a s s i f i c a t i o n : A c c o u n t i n g A d m i n i s t r a t o r i ( S p e c ) Major Respons ib i l i t y : Act as a lead, perform complex tasks independently and provide assistance to the analysts within the Bureau.

GASB Analvsis/lmolementation: Exposure Drafts, and imoiementation Guides > Process the new GASB analysis and implementation: Tasks include 1) participating in information gathering seminars/conferences and implementation training workgroups; and 2) preparing responses to exposure drafts and draft implementation guides. 11 400 4.400 2.5

Budaetarv/Leaal Basis Activities > Perform more complex tasks for Budgetary/Legal new reporting cycle: Tasks include 1) processing and setting up the B/L system, 2) validating the CSU SAM 99 testing and production files; 3) setting up and maintaining the B/L Log Report database and the AR Excel tracking log; 4) guiding and assisting fund folder preparation process; 5) preparing and posting reports to the SCO website for state agencies to prepare year-end statements; and 6) preparing training materials and conducting state agency training. 33 65 2.135 1.2 > Review and process more complex Budgetary/Legal Year-End Statements: Tasks include 1) reviewing and processing General Fund. Other Funds, and FI$Cal agencies' year-end statements; 2) reviewing the Report of Accounts Outside the State Treasury; 3) preparing and reconciling General Fund and Special Funds Reports to the DOF; 4) preparing and reconciling the Froposition 98 reports; and 5) processing the AR reports.

676 6 4,035 2.3

> Coordinate the BLBAR and Supplements publications: Tasks include 1) compiling, reviewing, and publishing the BLBAR; and 2) compiling, reviewing, and publishing the BLBAR Supplements Volume 1 Revenue and Volume 11 Expenditures. 33 32 1,060 0.6

> Coordinate and process the closing of Budgetary/Legal reporting cycle: Tasks include 1) preparing and posting Criteria Worksheets to the website; 2) reviewing and organizing fund folders for open house events; and 3) planning, organizing, and attending open house events for state agencies. 338 2 655 0.4

> Farticipate in other SGR duties; Tasks include 1) reviewing FISCal functional design documents and attending FISCal meetings; and 2) preparing and posting reports to the SCO website in compiiance with the ADA requirements. 13 25 320 0.2



Attachment I

4 of 6

N e w A n n u a l Inc reased

A n n u a l To ta l N u m b e r of

W o r k l o a d / Hou rs per

T a s k Increased

Hours Pos i t ions

Workload Description T a s k

GAAP Bas is Acf/Wf/es > Perform more complex duties related to GAAP new reporting cycle: Tasks include 1) setting up the GAAP system; and 2) reversing prior year GAAP adjustment entries. 21 19 392 0.2 > Review and process more complex state agencies' submitted entries: Tasks include processing of Agency submitted management representation letters, Genera! Funds, Internal Agency Funds (General Fund), Capital Project Funds, Special Revenue Funds, 0890 Federal Trust Funds, Internal Agency Funds (Special Revenue), Fiduciary Funds.

86 12 1,002 0.6 > Review and process the more complex Fund-Based statements from state agencies or prepared by SCC which include Enterprise Funds. Internal Service Funds. Fiduciary Funds, and Component Units. 88 6 559 0.3 > Prepare more complex miscellaneous Fund-Based adjustment entries: Tasks include Genera! Fund. Other Governmental Fund. Transportation Fund, and Agency Fund adjustments. 27 13 348 0.2 > Participate in administrative activities: Tasks include attending meetings, state agency training, and State Fund Accounting Course presentations. 144 7 979 0.6 CAFR Publication Activities > Perform more complex CAFR major tasks which include Interfund Receivable/Payable. PMIA Loans. Loans Receivable/Payable. Due froms and Due Tos. B/L Deferred Payroll Elimination Transactions, Transfers In and Transfers out. Deferred Receivables. Capital Assets and Leases. Calculation of Compensated Absences Liability. Calculation of Workers' Compensation Liability. Pension Cbligation. Net CFEB Cbligation. Certificates of Participation. Commercial Paper. G.C. Bonds - Debt Service and Bonds Payable. Debt Service funds Adjustments. Government-Wide Net Investments in Capital Assets (NICA). Cther Non Current Liabilities. Fund Balance, Fund-Based Financial Statements Review (Combining Statements). Government-Wide Statements of Net Positions. Statement of Activities. Letters. Management Discussion and Analysis (MD&A), Notes. Required Supplementary Information, and Statistical Section. 346 10 3.498 2.0 > Coordinate and prepare the CAFR publication: Tasks include preparing CAFR with Amounts. CAFR Review and Approval, and After CAFR Release. 20 26 520 0.3 > Coordinate and prepare the CAFR Supplement publication: Tasks include 1) preparing the Budgetary Comparison Schedule for General Fund. Federal Trust Fund. Transportation Fund. Environmental and Natural Resources Funds. and Non-major Governmental Funds; and 2) compiling, reviewing, and publishing the CAFR Supplement.

10 65 650 0.4 New Fund and Seament Reviews > Work on the increased on-going workload related to GASB 54: Tasks include processing of Segment Reviews. New Fund Analysis, and Special Fund/General Fund Classification. 40 10 400 0.2 Quality Assurance Reviews > Perform quality assurance reviews, component unit analysis, and financial reporting analysis for improvements and compliance. 605 1 605 0.3 OPEB LiabilitY Workload 0 0.0 > Direct and review GASB 43 and 45 activities (subsequent GASB 74 & 75 activities). 1 2.100 2,100 1.2 State AqencY Traininq 0 0.0 > Conduct training to state agencies. . 2 56 112 0.1 Pension Liabilitv Workload > Work on the increased on-going workload related to GASB 68 and 7 1 : Tasks include preparing Pensionable Compensation Determination. Allocation of Pensionable Compensation. Accounting Valuation Report Review and Analysis. CalPERS Master Sheet Preparation. Census Data Testing. Actuarial Assumption Reviews. Agency Requests. AU-C 805 Report. Note Disclosure and Required Supplementary Information. Deferred Employer Contribution Analysis. Accounting Entries. Providing GASB 68 data to agencies with non-centralized payroll, and identifying new funds subject to GASB 68 and 71 .

105 35 3.710 2.1

Work load assump t i on : The activities and hours are derived from historical workload experience as well as estimated new workload.

Total - Accounting Administrator 1 (Spec) 2.599 2.889 27.480 15.5 Less: Authorized positions (6.0) Total Need - Accounting Administrator 1 (Spec) 9.5 Total Request - Accoun t i ng Admin is t ra to r i (Spec) 7.0

S T A T E C O N T R O L L E R ' S O F F I C E , * At tachment I 5 of 6


N e w A n n u a l Inc reased

A n n u a l Tota l N u m b e r o f

W o r k l o a d / T a s k

Hou rs per T a s k

Inc reased Hou rs

Pos i t ions

W o r k l o a d D e s c r i p t i o n

W o r k l o a d / T a s k

C l a s s i f i c a t i o n : A s s o c i a t e A c c o u n t i n g A n a l y s t Major Responsibility: Perform the following semi-complex analytical tasks independently.

Budaetarv/Leaal Basis Activities > Prepare for Budgetary/Legal new reporting cycle: Tasks include 1) processing and setting up the B/L system; 2) setting up and maintaining the B/L Log Report database and the AR Excel tracking log; 3) guiding and assisting fund folder preparation process; 4) preparing and posting reports to the SCO website for state agencies to prepare year-end statements; and 5) preparing training materials and conducting state agency training.

26 108 2,806 1.6 > Review Budgetary/Legal Year-End Statements: Tasks include 1) reviewing and processing General Fund, Other Funds, and FISCal agencies' year-end statements; and 2) processing the AR reports. 1.483 7 10,159 5.7 > Prepare the BLBAR and Supplements publications: Tasks include 1) compiling, reviewing, and publishing the BLBAR; and 2) compiling, reviewing, and publishing the BLBAR Supplements Volume i Revenue and Volume II Expenditures.

27 23 615 0.4 > Process the closing of Budgetary/Legal reporting cycle: Tasks include 1) preparing and posting criteria worksheets to the website; 2) reviewing and organizing fund folders for open house event; and 3) planning, organizing, and attending open house events for state agencies. 1.330 1 1.277 0.7 > Participate in other SGR duties: Tasks include 1) reviewing FISCal functional design documents and attending FISCal meetings; and 2) preparing and posting reports to the SCO website in compliance with the ADA requirements.

26 5 142 0.1 GAAP Basis Activities 0.0 > Prepare for GAAP new reporting cycle: Tasks include 1) setting up the GAAP system; and 2) reversing prior year GAAP adjustment entries. 21 33 692 0.4 > Review state agencies' submitted entries: Tasks include processing of Agency submitted management representation letters, General Funds. Internal Agency Funds (General Fund). Capital Project Funds. Special Revenue Funds. 0890 Federal Trust Funds. Internal Agency Funds (Special Revenue). Fiduciary Funds. 119 14 1,673 0.9 > Review Fund-Based statements from state agencies or prepared by SCO which include Enterprise Funds. Internal Service Funds. Fiduciary Funds, and Component Units. 88 10 896 0.5 > Prepare miscellaneous Fund-Based adjustment entries which include General Fund. Other Governmental Fund. Transportation Fund, and Agency Fund adjustments. 27 15 399 0.2 > Farticipate in administrative activities; Tasks include attending meetings, state agency training, and State Fund Accounting Course presentations. 2,965 1 2,965 1.7 CAFR Publication Activities > Perform CAFR major tasks which include processing of Interfund Receivable/Payable. PMIA Loans. Loans Receivable/Payable. Due froms and Due Tos. B/L Deferred Payroll Elimination Transactions. Transfers In and Transfers out, Deferred Receivables. Capital Assets and Leases. Calculation of Compensated Absences Liability. Calculation of Workers' Compensation Liability. Pension Obligation. Net OPEB Obligation. Certificates of Participation. Commercial Paper. G.O. Bonds - Debt Service and Bonds Payable. Debt Service funds Adjustments. Government-Wide Net investments in Capital Assets (NICA). Other Non Current Liabilities. Fund Balance. Fund-Based Financial Statements Review (Combining Statements). Government-Wide Statements of Net Positions. Statement of Activities, Letters. Management Discussion and Analysis (MD&A). Notes. Required Supplementary Information, and Statistical Section. 550 8 4,620 2.6 > Prepare the CAFR publication: Tasks include preparing CAFR with Amounts. CAFR Review and Approval, and After CAFR Release. 20 55 1,100 0.6 > Prepare the CAFR Supplement publications: Tasks include 1) preparing the Budgetary Comparison Schedule for General Fund. Federal Trust Fund, Transportation Fund. Environmental and Natural Resources Funds, and Non-major Governmental Funds; and 2) compiling, reviewing, and publishing the CAFR Supplement. 10 40 400 0.2

Workload assumption: The activities and hours are derived from historical workload experience as well as estimated new workload. Total - Associate Accounting Analyst 6.692 320 27.743 15.6

Less: Authorized positions (15.6)

Total Need - Associate Accounting Analyst 0.0

Total Request - Associate Accounting Analyst 0.0

S T A T E C O N T R O L L E R ' S O F F I C E A t tachmen t ! 6 of 6




T a s k


Task

Tota l I nc reased

Hours


C l a s s i f i c a t i o n : A s s o c i a t e G o v e r n m e n t a l P r o g r a m A n a l y s t Major Responsibility: Perform administrative and support duties.

Budaetarv/Leaal Basis Activities > Prepare for Budgetary/Legal new reporting cycle: Tasks include 1) processing daily work order for B/L system set up; 2) preparing, updating, and posting the contact list, due dates, and year-end procedure manual to the SCO website; 3) sorting and logging agencies' statements and downloading automated statements in the B/L Log Report; 4) setting up and logging AR in the tracking log; 5) contacting and tracking the delinquent agencies in year-end statements and AR reports; 6) ordering supplies, printing reports, labels, dividers, special handling instructions, and the process checklists for folder preparation; and 7) organizing and scheduling state agency training.

> Review Budgetary/Legal Year-End Statements: Tasks include 1) working with Data Guidance to request daily work order for General Fund. Special Funds, and special reports; 2) ordering, reconciling, and distributing daily batch entries; 3) delivering batches to key data operators; 4) reviewing and processing Report of Accounts Outside the State Treasury; 5) monitoring B/L and AR mailboxes; and 6) processing AR reports.

> Farticipate in the closing of Budgetary/Legal reporting cycle: Tasks include 1) preparing and posting Criteria Worksheets to the website; and 2) planning, organizing, scheduling, and attending open house events for state agencies. > Farticipate in other administrative activities: Tasks include 1) scheduling and organizing interviews; 2) preparing and posting reports to the SCO website in compliance with the ADA requirements; and 3) organizing SGR administrative activities.

15

9

7

5

25

80

73

25

380

720

510

125

0.2

0.4

0.3

0.1

Workioad assumption: The activities and hours are derived from historical workload experience as well as estimated new workload. Total - Associate Governmental Frogram Analyst 36 203 1.735 1.0

Less: Authorized positions 0.0

Total Need - Associate Governmental Frogram Analyst 1.0 Total Request - Associate Governmental Program Analyst 0.0 Total S G R N e e d 25,733 5,617 71 ,982 40.6 Less: Authorized positions (28.6) V a r i a n c e 12.0

Total B C P Request^ 8.0

' Wi th the 8.0 approved positions, approximately 70% of the workioad can be achieved. The remaining workload wil l have to be absorbed through overt ime and/or other

measures, which may not be sustainable. The SCO will continue to review the workload and may submit fu ture requests for addit ional positions

df-46 (rev 08/16) priority no. -...

Documents