RequirementCoach Process - Budget Development

Budget Development
The Budget Development module enables the development of the States budget at the agency and the statewide (appropriation) levels. Budget Development integrates with both human resources to facilitate salary projections and general ledger to upload budgetary data for budgetary control. This module is intended to support the analysis of historical expenditure and budgetary data, allow what if analyses, salary and position budgeting, salary projections, and other types of forecasting. Budget development functionality required by sophisticated governments has been the weak link in ERP systems to this point, so many governments address their budget preparation needs through electronic spreadsheets or third party budget development applications.

BU 1.0 Budget Development General Requirements

BU 1.1  System security features shall be robust to control the views, changes, and approvals by different organizational units of the state. BU 1.2  System security features shall be robust to control the views, by chart of account value, including but not limited to agency and organization. BU 1.3 System shall provide audit trails to track the identity of user who made changes made to specific cells. BU 1.4 System shall provide the ability to drill down from budget to GL actuals and transactional detail. BU 1.5 System shall provide the ability to drill down from budget to HR database. BU 1.6 System shall provide the ability to drill down from budget to Payroll data. BU 1.7 System shall display information graphically (i.e. pie chart, bar chart, graph). BU 1.8  System shall provide the ability to drill down from budget to all system information by clicking on area of the graphic presentation. BU 1.9  System shall provide the ability to drill down from the dollar amount field to supporting data within the budget entry screen. BU 1.10 System shall validate field values within the budget entry screen. BU 1.11 System shall provide the following online queries by year and by period:
Beginning Beginning Amended

Expenditure Balance Expenditure Budget Expenditure Budget (Pre-Encumbrances)

Requisitions

Encumbrances

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RequirementCoach Process - Budget Development

Actuals Actuals

Expenditures Revenues (In and Out) Expenditure Budget Balance Budget Revenue Budget Revenue

Transfers Available Balance

Sheet Account (i.e. reserve and designated fund balance)

Revenue

Amended Accrued Prior

year savings of Prior Year Federal Revenue Surplus/Deficit

Refund

Collected Revenue

BU 1.12 System shall provide an ad hoc budget query tool. BU 1.13 System shall provide an ad hoc budget reporting tool. BU 1.14 System shall accept entry of budget requests at all organizational levels based on user authorization. BU 1.15 System shall restrict access to confidential data by user. BU 1.16 System shall prevent agency level users from updating budget information after it has been submitted. BU 1.17  System shall use the same baseline chart of account information ( e.g., general ledger accounts, expenditure objects, , source of revenue, grant, project, appropriation, organization (allotment), funds, etc.,) as the other ERP modules. BU 1.18  System shall provide a revenue code (e.g., federal, general) to identify the sources of funds supporting the budget request. BU 1.19  Where appropriate, authorized users shall be able to review, modify and approve budget baseline and actuals. BU 1.20  System shall provide a spreadsheet presentation (form) for end users to use to prepare the budget request. BU 1.21 System shall allow Division of Budget to configure multiple budget forms for the end user. BU 1.22  System shall provide the ability to prepare multiple types of budget including appropriation, spending plan, and capital budgets. BU 1.23  System shall provide user-defined attributes such as budget roll-up codes which further qualify elements within the Chart of Accounts (additional levels within the organizational structure (allotment) not contained in the accounting chart of accounts).
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RequirementCoach Process - Budget Development BU 1.24 System shall receive data from and export data to spreadsheet (Excel, Lotus, etc.). BU 1.25  System shall have the ability to attach files (i.e., Lotus, WordPerfect, Word, Excel, Quattro Pro) to particular stages and line items with the system.

BU 2.0 Budget Preparation

These requirements are provided to help with the preparations involved with a budget. It estimates, as realistically as possible, the cost of completing the objectives identified in the proposal. BU 2.1  System worksheets shall be configured to present object of expenditure, funding code, and position information by any chart of account field. BU 2.2  System shall allow central budget office and agencies to develop agency worksheets extracting data from the budget, human resources, payroll, and financial modules. BU 2.3  System shall allow Division of Budget to push via workflow budget forms (spreadsheets) out to agencies electronically for budget preparation. BU 2.4  System shall allow agencies to push via workflow budget forms (spreadsheets) out to agencies electronically for budget preparation. BU 2.5  System shall allow agencies to return completed budget forms to the Division of Budget electronically via workflow. BU 2.6 System shall create appropriation control budgets from budget stages. BU 2.7 System shall roll up agency worksheets into statewide master budget. BU 2.8 System shall provide for budget development through a Web Browser (Internet and Intranet). BU 2.9 System shall allow agencies access to view progress by subunits. BU 2.10  System shall provide ability to lock (prevent other changes to that budget stage) budgets at any phase of the budget, including after submission by agencies. BU 2.11  System shall provide the ability to unlock a frozen budget with the appropriate security control at the agency level unless it has already been submitted to Division of Budget. BU 2.12  Budget preparation module shall be integrated with other relevant modules including but not limited to purchasing, asset management, human resources, accounts payable, revenue, grant, projects and general ledger modules. BU 2.13  System shall provide data extraction from the financial system by general ledger account (i.e., real fund balance, nominal, statistical) for all line items.

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RequirementCoach Process - Budget Development BU 2.14  System shall allow agencies the capability to develop both detail budgets, at any level of the chart of accounts (i.e. fund, organization (allotment), program, general ledger) and summary budgets in a distributed environment. BU 2.15 System shall provide for data entry into multiple budget stages during budget preparation. BU 2.16  System shall provide the ability to record statistical and financial transactions against any combination of elements in the chart of accounts. BU 2.17 System shall contain a standard interface that provides the ability to interface statistical transactions. BU 2.18 System shall provide the following information on budget forms (worksheets):
Five

year historical budget and actual data and Year-to-date Actual Year Budget Year Projected

Monthly Current Current Next Up

Year Budgeted

to five years Projected

BU 2.19  System shall provide for application of percentage increases or decrease to a budgeted category (e.g., travel). BU 2.20  System shall provide for the development of expenditure and revenue forecasts at the beginning of the fiscal year based on prior year actuals and other information. BU 2.21  System shall provide the ability to assemble multiple years of budgeting information for budget preparation. BU 2.22 System shall create an initial stage of the budget using the following:
Zero

balances in all accounts years original budget years budgeted total years actuals years statistics years budget or actual plus/minus a percentage years budget or actual plus/minus a percentage based on percentage of last years actual based on user defined formula based on estimated actuals from current year 4 line projection

Current Last Last Last

Current

Previous Straight

Projection Projection Projection

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RequirementCoach Process - Budget Development BU 2.23  System shall provide a facility to conduct scenario and what-if analysis and financial and statistical data during budget preparation. BU 2.24 Scenario/what if budget stages (results) can be saved. BU 2.25  System shall be capable of performing and saving what if scenarios (parameters) at the Agency and Division of Budget levels. BU 2.26 System shall allow the user to create individual formulas for each cell in the budget worksheet (form). BU 2.27 System shall allow the user to input actual numbers into each cell in the budget worksheet (form). BU 2.28 System shall allow the user to copy formulas from one cell to many cells. BU 2.29 System shall allow the user to include other cell values in the formula (i.e. A1 * 1.1). BU 2.30  System shall allow for creating relationships between budgeted items (e.g., salary changes automatically adjust FICA). BU 2.31 System shall provide audit trail of adjustments to the budget stage. BU 2.32 System shall allow entering, storing, and reporting non-financial data, i.e. mission statements. BU 2.33 System shall roll forward mission statements from the prior period for current year reporting. BU 2.34 System shall permit users with security to edit the budget for closed periods (phases). BU 2.35  System shall store and report historical, proposed and forecasted budget and actual real and nominal data, for a minimum of 8 years. BU 2.36  System shall generate a 5 year forecast for expenditures and revenues (upcoming fiscal year plus four succeeding years). BU 2.37 System shall produce rolling forecasts (using updated forecasts to project new forecasts). BU 2.38  System shall provide for adjusting the base budget by line item or in total, by dollar amount or by percent. BU 2.39  System shall provide the capability to develop budgets at the program, service and line item levels and allow the aggregation of program/service/line item level budgets. BU 2.40  System shall process and maintains all budget iterations, from Agency request to Division of Budget to Legislative Adoption. BU 2.41  System shall compare budget stages to demonstrate cost changes that have been made between stages.

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RequirementCoach Process - Budget Development BU 2.42  System shall spread a global cost reductions and increases across specific agencies/organization (allotment) based on user-defined parameters. BU 2.43 System shall provide for multiple budget phases. BU 2.44 System shall provide for multiple budget stages. BU 2.45 System shall provide for many budget stages within one phase. BU 2.46 System shall allow data to be referenced between phases and between stages. BU 2.47 System shall provide for multiple levels of approval within each phase. BU 2.48 System shall allow data to be carried forward from one stage to the next stage. BU 2.49 System shall create the budget request document automatically based upon the approved phase. BU 2.50  System shall allow users to enter budget requests at a low level with the budget summarized and approved at either the low level or at a higher level. BU 2.51  System shall provide reports/inquiries, including graphs, to accommodate analysis of historical trends. BU 2.52  System shall provide the ability to drill down to compare budgets to actuals from highest level to detail. BU 2.53 System shall provide document publishing features including:
Producing Producing Producing Producing Providing

high quality final budget document pages budget reports and documents in PDF format camera-ready output the table of contents and index for the budget document

the user a function to create or enter footnotes and comments for budget publications

Producing  Producing  Includes

both the Budget and the Budget in Brief from a wide variety of source files, including system output from the database historical, current year projections and proposed budget data at any level of the hierarchical structure in a high quality printed form performance measures and results in the budget document charts, graphs, spreadsheets, etc. in the budget document

Incorporates Capability  Desktop

to automatically update charts, graphs, spreadsheets, etc. when data stored in budget system is altered publishing capabilities, i.e. flexibility in formatting, object placement, page layout non-budget information into the budget document, such as the glossary to incorporate objects from various sources, including commercial clipart and photos organizational chart 6

Incorporates Capability

Producing

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RequirementCoach Process - Budget Development

Provides

spell and grammar check user access to budget document publisher for preparation and editing purposes

Concurrent

BU 2.54 System shall allow standard rates to be established and saved within the system. BU 2.55 System shall provide a budget tool that produces new budget year and base budget. BU 2.56  System shall provide the ability to select specific budget data (i.e., by object, by fund) and import current year final adopted and adjusted budget data. BU 2.57  System shall provide a tool to facilitate reconciliation of adjusted budget data with approved budget adjustments. BU 2.58  System shall provide an automated interface to update the human resources and financial modules for budget information.

BU 3.0 Salary and Position Budgeting

The Salary and Position Budgeting section details the positions and related budgeted salaries at the beginning of a fiscal year. BU 3.1 System shall provide the ability to track positions at multiple levels of authorization.
Established Budgeted Authorized Filled Vacant Overlapped

(created)

(two persons in one position)

BU 3.2  System shall interface with the payroll system to periodically update position control information based on actual employee/payroll data. BU 3.3  System shall provide the ability to track positions by different by status: active, frozen, held, unfunded, etc. BU 3.4 System shall provide multiple types of positions, including but not limited to:
Full-time Part-time Hourly Seasonal Retiree

Contractor

Temporary

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RequirementCoach Process - Budget Development BU 3.5  System shall provide for calculation of a full-time equivalent for each position and accumulation by each segment of the Chart of Accounts. BU 3.6  System shall allow one or more funding sources to be identified to cover the cost of an individual position and allow to a user-defined allocation by each funding source. BU 3.7  System shall allow for the cost of a position to be allocated to multiple segments of the Chart of Accounts (i.e. organizations (allotments) , programs, projects, grants, etc.). BU 3.8  System shall calculate the budget for cross charges to each segment of the Chart of Accounts where a spending plan budgets for personnel that work and are paid from more than one location or program. BU 3.9  System shall provide the ability to perform the following operations online with the proper security authorization:
Add

or delete the number of established, authorized, or budgeted positions of the budgeted salary, benefit and other information of a position filled/vacant status

Modification Modify

BU 3.10 System shall provide access to position history. BU 3.11  System shall provide the capability to update budget request with salaries for current and next budget request year; specific salary rates are determined by policy. BU 3.12  System shall provide the ability to retrieve/calculate salary rates for each position, using date, note and salary grid to populate budget max rate; the rate retrieved is for the lowest rate within that FY (exceptions may apply). BU 3.13  System shall provide the capability to retrieve organization/allotment, position and budget minimum rate from prior fiscal year final budget data. BU 3.14  System shall retrieve budgeted amounts from employee benefit accounts for salary-driven benefits (pension savings, flex, megaflex and savings plan) by organization/allotment from prior fiscal year final budget data. BU 3.15 System shall retrieve actual retirement contributions by retirement plan, position and organization. BU 3.16  System shall provide an on-line facility to input new positions, position class, position number, organization and program. BU 3.17  System shall estimate costs for new, deleted and existing positions by evaluating salary adjustments, employee benefits rate increase, new positions; additional costs related to changes in positions for space, equipment, supplies, etc. BU 3.18  System shall produce salary and employee benefits base budget from current year final adopted and/or adjusted budget from financial and payroll systems.
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RequirementCoach Process - Budget Development BU 3.19  System shall provide budget tool to create salary and employee benefits baseline budget by position and organization (allotment). BU 3.20  System shall generate salary, new and transfer positions (improvements), and employee benefits spreadsheets. BU 3.21 System shall provide the ability to update position and budgeted salary information. BU 3.22  System shall store and retrieve baseline data from budget and position data and scenario results computed from scenario variables. BU 3.23  System shall store and retrieve scenario results from scenario variables, including base and other adjustments (base adj dates, base adj notes, base adj schedules, base adj min rates, base adj max rates, other adj dates, other adj notes, other adj schedules, other adj min rates. BU 3.24  System shall allow entry and tracking of employee benefit type including but not limited to insurance, retirement and FICA. BU 3.25 System shall track unique benefit rates by year and uses the appropriate rate in benefit calculations. BU 3.26  System shall have the ability to recalculate personnel budget complement costs based on benefit rate changes. BU 3.27  System shall have the ability to calculate employee benefit costs by position based on actual data provided by the payroll module.

BU 4.0 Analysis and Forecasting

Analysis and Forecasting is the discipline of identifying business needs and determining solutions to business problems. BU 4.1  System shall provide an analytical engine to slice and dice budget and actuals data via multidimensional views. BU 4.2 System shall provide drill down features are present for budget and actual analysis. BU 4.3  System shall provide facility to conduct budget to actual analysis for any level of detail in the chart of account structure on a real-time basis (must include history). BU 4.4  System shall forecast the level of unused appropriations given current spending patterns (must include encumbrances). BU 4.5 System shall calculate the costs of services, programs and activities, includes actual costs.

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RequirementCoach Process - Budget Development BU 4.6  System shall provide the ability to apply percentage increase to any line item category in the budget and assess impact on budget as a whole. BU 4.7  System shall provide multiple calculation methodologies for salaries & benefits budget monitoring and forecasting.
Number Current

of positions, by type. salary increases. population

salary ranges and overtime

Scheduled Bonuses

Employee Fringe

benefit changes

Workload Type

of position Unit (Cost Center) between position salaries in HR modules savings (unused appropriations) forecasts by agency, division, etc.

Organizational Link

Salary

BU 4.8 System shall capture and maintain the following PBB related information for each particular program:
Program Set

goal

of measurable objectives that support the program goal (volume of work produced) (assessment of the quality or effectiveness of program objective) measures

Outputs

Outcomes Efficiency Inputs Demand Minimum Target

performance level Certification Authority

performance level

Legislative Legislative Efficiency

measures

BU 4.9  System shall provide multiple calculation methodologies for statistical, real, nominal (revenue and expenditure) account budget monitoring and forecasting.

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RequirementCoach Process - Budget Development BU 4.10  System shall provide a report/inquiry to compare current year trend analysis with actual data from eight years prior. BU 4.11  System shall allow application of different forecasting calculations to the same line item (account) in different organizational units. BU 4.12  System shall allow application of different forecasting calculations to different line items (accounts) in the same organizational unit. BU 4.13  System shall forecast multiple times for the same line item using different forecasting techniques, displays the results, and allows the users to select most appropriate calculation. BU 4.14  System shall allow users to manipulate results and add/change forecast calculations for a single or multiple accounts and organization codes across appropriations. BU 4.15 System shall allow users to manipulate forecast results by percentage, dollar value, etc. BU 4.16  System shall allow attaching a forecasting calculation or user manipulation to a line item, and maintaining the calculation through organizational changes. BU 4.17  System shall provide variance analysis reports/inquires between actual and budgeted amounts for all iterations and levels of budgets. BU 4.18  System shall provide tools to analyze agency business program changes for impact on other agency programs and for statewide impact. BU 4.19  System shall provide a budget tool to obtain and store data components to prepare budget forecast, e.g., negotiated salaries, legislative mandates, economic factors, administrative considerations, etc. BU 4.20 System shall provide standard reports/inquiry that display the budget forecast summary by fund and organization. BU 4.21  System shall generate project reports which reflect accrued expenditures, providing the ability to forecast future project activity. BU 4.22  System shall provide a forecasting what if tool to analyze the impact of agency restructuring by identifying additional positions, functions, costs, etc. BU 4.23  System shall project year-end revenues and expenditures using appropriate methodologies, e.g., straight-line, straight-line adjusted, moving average, economic indicators, etc.

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RequirementCoach Process - Budget Development

BU 5.0 Reporting/Inquiry
This section provides requirements for inquiries and budget reporting. Reports include budgeted and actual statistics, total improvements, yearly reports, etc. BU 5.1  System shall generate budget message summary that displays base (continuation of existing service levels) and improvement (new programs) budget and funding source. BU 5.2 System shall provide chart of account listing reports. BU 5.3  System shall provide revenue and expense budget request summary reports by user defined combinations of general ledger account, object of expenditure, source of revenue, fund, appropriation, grant, project, organization (allotment), and program. BU 5.4  System shall provide detail revenue and expense budget information, including base actual, base estimated budget, improvement actual, and improvement estimated budget by user defined combinations of general ledger account, object of expenditure, source of revenue, fund, appropriation, grant, project, organization (allotment), and program. BU 5.5  System shall report budgeted and actual statistics (performance measures) by any element in the chart of accounts. BU 5.6 System shall produce a report of positions by any element in the chart of accounts. BU 5.7 System shall report total improvements by organizational (allotment) code. BU 5.8  System shall report base and improvement budget information by any element in the chart of accounts. BU 5.9  System shall allow the generation of customized, ad-hoc reports via a reporting tool that is designed for use by non-technical end users. BU 5.10 System shall create ad-hoc government-wide reports by chart of accounts level or user-defined fields. BU 5.11 System shall perform query operations on data fields. BU 5.12  System shall report are capable of including data for the prior year actual, current budget, current year-to-date actual, current year projections, and future year proposed. Reports should be able to include up to 5 years in the past and 5 years in the future. BU 5.13 System shall produce year-to-date, monthly, quarterly and annual reports. BU 5.14 System shall provide report that separates original budget, budget adjustments and revised budget. BU 5.15 System shall permit drill-down to determine originating transaction within the budget system. BU 5.16 System shall permit view of standard, customized and ad-hoc reports on-line before printing.
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RequirementCoach Process - Budget Development

BU 6.0 Budget Maintenance and Monitoring

Section provides requirements for the process of maintaining or preserving a budget and the monitoring of it. BU 6.1  System shall forecast real account balances, revenues and expenditures for the remainder of the year based on historical trends, percentages, or other specified parameters and allows for adjustments to the forecast. BU 6.2 System shall provide the ability to develop and track amendments to the approved budget. BU 6.3  System shall provide the capability to assess and update projection of actual financial activity (i.e., expenditure and revenue). BU 6.4 System shall synchronize individual budget changes between the budget and the general ledger. BU 6.5 System shall provide capability to reserve a portion of the appropriation budget. BU 6.6 System shall provide capability to defer/reserve a portion of the spending plan budget. BU 6.7  System shall retain and allow access to narrative justification for budget adjustments at the agency level. BU 6.8  System shall retain and allow access to narrative justification for budget adjustments at the Division of Budget level. BU 6.9  System shall provide for override budget control (by those having security) on a transaction by transaction basis without removing budget control for all other users. BU 6.10 System shall stamp all adjustments to the budget with:
User Date Increase/Decrease Dollar

Amount

BU 6.11 System shall provide the ability to lock out budget changes after specified date. BU 6.12 System shall provide drill-down capabilities from budgeted summary categories to line item detail. BU 6.13  System shall supply a method to load budget adjustments to multiple budgets (Adopted budget, current budget w/transfers, etc.). BU 6.14  System shall track budget adjustments individually (by dollar amount and/or Budget Adjustment #), and by chart of account elements (i.e. organizational, account code, project, etc.).

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RequirementCoach Process - Budget Development BU 6.15  System shall track all budget changes (transfers/amendments), authority, type of change, and reason for change. BU 6.16 System shall provide hierarchical workflow approval for budget adjustments. BU 6.17  System shall provide inquiries/reports that display budgeted amounts against actual amounts at any level of chart of accounts, at any time during the fiscal year. BU 6.18  System shall provide the ability to track the Work Program (original budget) and all budget revisions by object and document. BU 6.19  System shall allow users to perform on-line appropriation budget adjustments with appropriate security authority. BU 6.20  System shall allow users to perform on-line spending plan budget adjustments with appropriate security authority. BU 6.21  System shall provide security features that allow users to enter and save but not post budget adjustments. BU 6.22  System shall provide security features that allow central office budget personnel to retrieve and post saved budget adjustments. BU 6.23  System shall provide ability through workflow to mark adjustments as URGENT and notifies agency if approver is out of office. BU 6.24 System shall allow agencies to inquire as to the status of budget adjustment online. BU 6.25  System shall provide the ability to lock out budget changes after specified date, but maintain ability to view those in progress. BU 6.26 System shall provide drill-down capabilities from budgeted summary categories to line item detail. BU 6.27 System shall store and report fiscal note information. BU 6.28 System shall ensure that budget transfers are balanced within and between agencies and funds. BU 6.29 System shall provide a budget transfer report. BU 6.30 System shall provide hierarchical workflow approval for budget adjustments.

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