Statewide Financial System

The enacted budget makes the following changes to the Executive Budget (March 30, 2012):

·        Makes no changes to the proposed All Funds, State Operations appropriation ($11.23 million)

·        Rejects the broad Executive Budget proposal to allow the Executive to have unlimited transfer and interchange authority over all State Operations appropriations. Instead it creates specific transfer and interchange authorization for State Operation appropriations, for this agency they include: OGS/Back Office, Call Center, and Information Technology.  In general this authorization allows the Executive to move appropriations between state agencies for these purposes. For additional detail please see page 5 of the Summary of the SFY 2012-13 Enacted Budget memo.

The Executive Budget recommends (analysis as of January 25, 2012):

A SFY 2012-13 workforce of 145, an increase of 9 FTES from the level anticipated in the SFY 2011-12 Executive Budget.  The additional positions reflect additional staff needed to support agencies during their transition to the new accounting system

• An All Funds appropriation of $55 million, an increase of $10 million (22%) from the enacted appropriation of SFY 2011-12. With the system expected to “go live” in April 2012, the recommended budget represents the first budget under which the new system will be fully operational for 63 agencies, the first phase of implementation. As a result, the budget reflects new ongoing operating costs associated with the transformation from project status to an operating system. These new costs are partially offset by reductions in equipment and consulting contract costs. Contingency appropriations of $5 million are included to mitigate any unforeseen circumstances arising during the initial months of system operation.

• A Personal Services appropriation of $11.23 million, an increase of $1 million (9.8%) from the enacted appropriation of SFY 2011-12.

• A Contractual Services appropriation of $43.41 million, an increase of $8.96 million (26%) from the enacted appropriation of SFY 2011-12. The additional costs are partially offset by a $4,160,000 reduction in equipment and consulting costs.  According to the Assembly, the increases will support the following:

o   $6,131,000 in software costs for a total expenditure of $7,130,000;

o   $4,518,000 in Debt Service for a total expenditure of $22,439,000;

o   $1,675,000 in Personal Service expenditures; and

o   $1,400,000 for the OSC Data Center for a total expenditure of $4,100,000.

·        The Statewide Financial System employed an estimated 107 employees (an estimated 107 FTEs) under consultant contracts in SFY 2011-12 at a cost of $84.07 million or an average cost of $785,682 per consultant.  It is estimated that 62 consultants (an estimated 62 FTEs) will be employed in SFY 2012-13 at an estimated cost of $18.81 million or an average cost of $303,400 per consultant.  The expenditures may include more than personal service costs and is inconsistent with Office of State Comptroller data on consultant spending so it is difficult to draw definitive conclusions as to the actual cost per consultant employee.