Program B: Financial Accountability and Control

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Program B: Financial Accountability and Control

Program Authorization: La. Constitution, Article III, Sec. 16 and Article IV, Section 9; R.S. 36:765-766; R.S. 39:82; R.S. 49:307 and 327

PROGRAM DESCRIPTION

The mission of the Financial Accountability and Control Program is to provide the highest quality accounting and fiscal controls of all monies deposited in the Treasury; to assure that monies on deposit in the Treasury are disbursed out of the Treasury in accordance with constitutional and statutory law for the benefit of the citizens of the State of Louisiana; and to provide for the internal management and finance functions of the Treasury. The accomplishment of this mission involves:

Keeping a true, just and comprehensive account of all public money received and disbursed. The Treasury is responsible for establishing the fund structure in the state's accounting system according to constitutional and statutory provisions and for approving accounting structure that provides a means for classification of revenues into the funds.

Keeping an accounting of all investments and related investment income. The Treasury tracks all cash transactions for sales and purchases to ensure that all investment activity is accounted for.

Disbursing public money in accordance with appropriations and laws and performing procedures to ensure monies are disbursed out of the treasury pursuant to a specific appropriation. The Treasury reviews appropriation structure for input of the state's budget into the state's accounting system to ensure monies are drawn out of the Treasury pursuant to law.

The goal of the Financial Accountability and Control Program is to provide an accurate accounting and reconciliation of all public monies on deposit in the Treasury and to control disbursement of these monies in a manner that ensures disbursements are made in accordance with provisions of the Louisiana Constitution.

In numerical terms, the state treasurer receives over 6.3 million deposit items included in over 70,300 deposits per year, totaling over $12 billion. These monies are pooled with other state monies and held in various investment portfolios, which average over $2.85 billion. In turn, the state treasurer releases over 430,000 checks to pay vendors through the Advantage Financial System and monitors agency bank accounts, which issue over 4.3 million checks for various programs (such as Medicaid Title 19, Aid to Families with Dependent Children [AFDC], statewide payroll, etc.) Additionally, the Financial Accountability and Control Program also distributes over $230 million to local governments under the authority of 14 distribution programs.

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with State General Fund, Interagency Transfers, Fees and Self-generated Revenue, and Federal Funds. The Interagency Transfers are derived from various state agencies for the cost of central depository bank services. Fees and Self-generated Revenue are derived from implementation of the securities lending program. The Federal Funds are derived from the audit cost of federal programs.

ANALYSIS OF RECOMMENDATION

GENERAL FUND	TOTAL	T.O.	DESCRIPTION

$446,205	$1,993,224	18	ACT 19 FISCAL YEAR 1998-1999

			BA-7 TRANSACTIONS:
$0	$0	0	None

$446,205	$1,993,224	18	EXISTING OPERATING BUDGET – November 20, 1998

$21,332	$21,332	0	Annualization of FY 1998 – 1999 Classified State Employees Merit Increase
$13,497	$13,497	0	Classified State Employees Merit Increases for FY 1999 - 2000
$0	$54,456	0	Acquisitions and Major Repairs
$0	($40,000)	0	Nonrecurring Acquisitions and Major Repairs
$1,629	$1,629	0	Legislative Auditor Fees
$0	$12,562	0	Salary Base Adjustment
($11,870)	($11,870)	0	Salary funding from other line items
$4,000	$4,000	0	Other Adjustments – Cash Management Training
$0	$23,532	0	Other Adjustments – Related Benefits for Retirees
($9,924)	($9,924)	0	Other Adjustments – Elimination of requirements for Building Maintenance
($16,772)	($16,772)	0	Other Adjustments – Interagency Transfer adjustment for the Attorney General
$0	$30,000	0	Other Adjustments – Population Census Information to be provided by La. Tech. University

$448,097	$2,075,666	18	TOTAL RECOMMENDED

$1,892	$82,442	0	DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 104.1% of the existing operating budget. It represents 97.1% of the total request ($2,139,413) for this program. The net increase in funding is due to an adjustment that provides additional funds for related benefits for retirees and funding a cooperative endeavor agreement with La. Tech University relating to census estimations.

PROFESSIONAL SERVICES

$5,000		Management consulting for computer network maintenance

$5,000		TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$1,004,504		Fees charged by the central depository bank for services rendered
$37,092		Legislative Auditor

$1,041,596		TOTAL OTHER CHARGES

		Interagency Transfers:
$5,848		Department of Civil Service
$14,360		Office of Information Services for data processing services
$30,000		La. Tech. University for Population Census Information

$50,208		TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

25,600		Replacement of broken/obsolete computer equipment
$28,856		Replacement of office printers and computer servers

$54,456		TOTAL ACQUISITIONS AND MAJOR REPAIRS

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