LSME: J. Hicks 1 Detailed Activities Key Activities Role Description Identify units of analysis Prepare agency budget Manage agency budget Change agency

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LSME: J. Hicks

Detailed ActivitiesDetailed ActivitiesDetailed ActivitiesDetailed Activities

Key ActivitiesKey ActivitiesKey ActivitiesKey ActivitiesRole DescriptionRole DescriptionRole DescriptionRole Description

Identify units of analysisPrepare agency budgetManage agency budgetChange agency budget

Role Design and Impact

This role serves to ensure that, via budgets, appropriate monitoring and controls exist for financial resources for which an agency is responsible. Agency budgets also provide managers with an essential tool, create feedback loops for monitoring purposes, and support and assist leadership decisions.

Prepare agency budget•Determine level of expenditure detail budgeted (Chart of Accounts elements)•Determine level of revenue detail budgeted (Chart of Accounts elements)•Align budget with strategic plan or other management plans•Distribute resources•Record/enter detailed agency management budget in MARS•Review reporting of prior experience

Manage agency budget•Compare actual information with budget forecasts•Communicate actual vs. projected budget data to staff•Forecast regarding past or possible future budget events•Keep abreast of opportunities

Change agency budget•Communicate adjustments made•Record/enter adjustments in MARS

Business Area: Budget ProcessBusiness Area: Budget Process MARS Roadmap: Budget Preparation MARS Roadmap: Budget PreparationBusiness Area: Budget ProcessBusiness Area: Budget Process MARS Roadmap: Budget Preparation MARS Roadmap: Budget Preparation

““To Be” To Be” Redesigned RoleRedesigned Role““To Be” To Be” Redesigned RoleRedesigned Role

Prepare and Monitor Detailed Agency Management Budgets

Notes:Bold, italic text indicates activities supported and/or facilitated to a significant degree by MARS.“*” Indicates activity for which significant reductions in time and/or effort to complete are expected due to automation and/or streamlined processes.“(F)”Indicates activities that are dependent upon agency structure and/or agency willingness to “push” accountability to the field.

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LSME: J. Hicks

Current to New Role Comparison: Prepare and Monitor Detailed Agency Management BudgetsCurrent to New Role Comparison: Prepare and Monitor Detailed Agency Management BudgetsCurrent to New Role Comparison: Prepare and Monitor Detailed Agency Management BudgetsCurrent to New Role Comparison: Prepare and Monitor Detailed Agency Management Budgets

Changed ActivitiesChanged ActivitiesChanged ActivitiesChanged Activities

Activities That Remain the SameActivities That Remain the SameActivities That Remain the SameActivities That Remain the Same

Definition of TermsDefinition of TermsDefinition of TermsDefinition of Terms

Training and Skills NeedsTraining and Skills NeedsTraining and Skills NeedsTraining and Skills Needs


Activities No Longer PerformedActivities No Longer PerformedActivities No Longer PerformedActivities No Longer Performed

Budget activities are not expected to go away, but rather to be executed in -- and streamlined by -- MARS.

N/A

MARS: Budget and Cash ControlMARS: Budget Execution Using BRASS

Prerequisites:MARS Computer Literacy TrainingComputer Based Training

TimingTimingTimingTiming

Processing of budget materials in MARS will coincide with the fiscal year.

Prepare agency budget•Review reporting of prior experience•Record/enter detailed agency management budget in MARS

•Change agency budget•Record/enter adjustments in MARS

Prepare agency budget•Determine level of expenditure detail budgeted•Determine level of revenue detail budgeted•Distribute resources

Manage agency budget•Keep abreast of opportunities

Change agency budget•Communicate adjustments made

Manage agency budget•Pair actual information with budget forecasts•Communicate actual vs. projected budget data•Forecast regarding past or possible future budget events

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LSME: J. Hicks

Additional NotesAdditional NotesAdditional NotesAdditional Notes


•For some agencies (typically smaller agencies) the role of preparing and managing agency budgets will be joined with the role of managing budget appropriations and allotments.•MARS should support the current budgetary control system providing flexible budgetary controls that satisfy the Commonwealth’s legal budgetary oversight responsibilities and also meet the needs of agencies for the establishment of agency spending plans, which can be used for reporting control.•MARS will afford agencies greater consistency of budget information in executing the budget process. Budget information will also be more accessible and easier to manipulate. Heightened availability of information is expected to provide better decision support.•Identify units of analysis - units defined will be a function of the legal responsibilities, geographic location, and organizational characteristics of the entity involved.•Change agency budget - completion of this activity will depend upon the latitude afforded budget managers as well as the overall fiscal environment of state government.

Template KeyTemplate KeyTemplate KeyTemplate Key

Current to New Role Comparison: Prepare and Monitor Detailed Agency Management BudgetsCurrent to New Role Comparison: Prepare and Monitor Detailed Agency Management BudgetsCurrent to New Role Comparison: Prepare and Monitor Detailed Agency Management BudgetsCurrent to New Role Comparison: Prepare and Monitor Detailed Agency Management Budgets

Activities that will be completed via MARS have been highlighted through the use of italic, bold font.Activities that are dependent upon agency structure and/or agency willingness to “push” accountability out to the field are identified with an “(F)”.Activities for which significant reductions in time and/or effort required are expected to result from automation and/or process streamlining are indicated with an “*”.Detail activities are grouped according to the key activity (underlined) they support.MARS documents are cross-referenced (by number) to the document(s) they replace.For more information on the process flow for activities regarding this area, please consult the MARS Roadmap document cited. Roadmaps may be found at http://www.state.ky.us/agencies/adm/mars/marssua.htm.

For more training guidance, please consult the MARS Training Curriculum, which will be posted to the MARS page of the Simplified Administrative Services Web site at http://www.state.ky.us/agencies/adm/mars/mars.htm.

Documents Relevant to RoleDocuments Relevant to RoleDocuments Relevant to RoleDocuments Relevant to Role

MARS Documents Documents Formerly Used

Obligation Plan Document (OB) [1]Revenue Recognition Plan

Document (RR)Cash Collection Plan Document

(CC)

DOA-49: Management Budget Form [1]

DOA-49a: Management Budget/Revision Form [1]

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LSME: J. Hicks



Manage budget appropriationsManage budget allotmentsRequest adjustment to allotmentRequest adjustment to allotment as well as appropriationRevise and report restricted fund and Federal Fund revenue estimates


Manage appropriations to ensure compliance with the enacted budget. Manage allotments to support the distribution of appropriations among specific subprograms or activities for a fiscal year. Manage restricted funds and Federal Fund revenue estimates.

Manage appropriation•Determine appropriate modifications needed•Pair actual information with forecasts•Communicate actual vs. projected data to staff•Forecast regarding past or possible future events

Manage allotment•Enter the request for allotment(s) in MARS•Determine allotment modification needed•Pair actual information with forecasts•Communicate actual vs. projected data to staff•Forecast regarding past or possible future events

Manage restricted fund and Federal Fund revenue estimates•Record the estimates in MARS•Revise and report the estimates in MARS

Request adjustment to allotmentRequests would be submitted by agencies concerning operating budgets; by Finance Cabinet Facilities Management or agencies for capital budgets. Requests would be submitted to the Governor’s Office for Policy (GOPM) and Management.

Request adjustment to allotment and appropriationRequests would be submitted by agencies concerning operating budgets; by Facilities Management or agencies for capital budgets.Requests would be submitted to GOPM and the Legislative Research Commission. Currently, the “approver” for requested changes to allocations or appropriations is GOPM and the Finance Cabinet. Appropriation modifications require prior review by the Interim Joint Committee on Appropriations and Revenue.



Manage Budget Appropriations and Allotments


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LSME: J. Hicks

Current to New Role Comparison: Manage Budget Appropriations and AllotmentsCurrent to New Role Comparison: Manage Budget Appropriations and AllotmentsCurrent to New Role Comparison: Manage Budget Appropriations and AllotmentsCurrent to New Role Comparison: Manage Budget Appropriations and Allotments








N/A


Processing of budget materials in MARS will coincide with the fiscal year.

Manage appropriation•Pair actual information with forecasts•Communicate actual vs. projected data to staff•Forecast regarding past or possible future events

Manage allotment•Enter the request for allotment(s) in MARS•Pair actual information with forecasts•Communicate actual vs. projected data to staff•Forecast regarding past or possible future events

Manage restricted fund and Federal Fund revenue estimates•Record the estimates in MARS•Revise and report the estimates in MARS

Manage appropriation•Determine appropriation modifications needed

Manage allotment•Determine allotment modification needed

MARS: Budget and Cash ControlMARS: Budget Execution Using BRASS

PrerequisitesMARS Computer Literacy TrainingComputer Based Training

Request adjustment to allotmentRequest adjustment to allotment and appropriation

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LSME: J. Hicks



•A budgetary control account for each appropriation will be established within MARS as required by state law and GAAP. •A budgetary control account also will be established for each allotment of an appropriation.•Enacted appropriations for both operating and capital budgets will be fed from BRASS into ADVANTAGE. Operating budget allotments and allotment modifications will be fed from BRASS to ADVANTAGE. All capital budget allotments start in ADVANTAGE and stay in ADVANTAGE.•Management of operating budgets will reside with individual agencies.•Request adjustment - The process of requesting an adjustment, which currently requires the submission of a letter and a STARS accounting document (which must be completed with the use of a typewriter), will be significantly streamlined in MARS. •The implementation of MARS should bring significant gains to the agencies in the area of budget management. There is one area, however, where the process within MARS will require additional steps than currently exist. This area involves the Secretary’s Order for Capital Projects, which now exists as one document that serves several purposes. In ADVANTAGE, it will comprise 4 distinct documents: 1.) Journal Voucher Transfer (JVT); 2.) Appropriation Extended (AP); 3.) Allotment (AL); and 4.) Revenue Budget (RB). Efforts are underway at the MARS Project to alleviate this via workflow and reporting.


Current to New Role Comparison: Manage Budget Appropriations and AllotmentsCurrent to New Role Comparison: Manage Budget Appropriations and AllotmentsCurrent to New Role Comparison: Manage Budget Appropriations and AllotmentsCurrent to New Role Comparison: Manage Budget Appropriations and Allotments




MARS Documents Documents Formerly UsedJournal Voucher Transfer [1]Appropriation (AP) documents [1]Allotment (AL) documents [1]Revenue Budget (RB) documents

(for capital projects only) [1]BRASS Allotment Request FormBRASS Appropriation Modification

FormBRASS Allotment Modification FormBRASS Federal/Restricted Fund

Revenue Estimate Form

DOA-05: Capital Construction: Secretary’s Order [1]

DOA-04: Advice of Allotment Adjustment

DOA-03: Request for Allotment

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LSME: J. Hicks



Receive and review budget instructionsPrepare biennial budget requestProvide support to the Governor’s OfficeParticipate in legislative review process


Budget preparation encompasses all activities from the development of instructions to the enactment of the biennial budget.

Receive and review budget instructions•Conduct agency training sessions

Prepare budget request•Prepare operating budget

– Prepare agency base budget– Prepare historical data– Prepare current services budget request– Identify unmet funding needs and/or problems– Submit budget request to GOPM/LRC for review and approval

•Prepare capital budget– Determine which capital projects/equipment will be submitted in

request– Submit to Finance Cabinet, Facilities Management for review– Ensure consistency with agency 6-year capital plan and amend capital

planning document, as needed

Participate in legislative review process•Explain agency budget request•Transmission of supplemental material•Review and communicate fiscal impact of legislation

Provide support to the Governor’s Office•Provide explanations and communicate responses to inquiries•Review and communicate fiscal impact of legislation



Biennial Budget Preparation


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LSME: J. Hicks

Current to New Role Comparison: Biennial Budget PreparationCurrent to New Role Comparison: Biennial Budget PreparationCurrent to New Role Comparison: Biennial Budget PreparationCurrent to New Role Comparison: Biennial Budget Preparation








MARS: Budget Preparation

Prerequisites:MARS Computer Literacy TrainingComputer Based Training


Processing of budget materials in MARS will coincide with the next biennial budget process.

Receive and review budget instructions•Conduct agency training sessions

Prepare budget request•Prepare operating budget

– Prepare agency base budget– Prepare historical data (restate, as needed, to accord with current

structure)– Prepare current services budget request– Identify unmet funding needs and/or problems– Submit budget request to GOPM/LRC for review and approval

•Prepare capital budget– Determine which capital projects/equipment will be submitted in request– Submit to Finance Cabinet, Facilities Management for review

–Receive and revise Personnel Cabinet runs

Participate in legislative review process•Explain agency budget request•Transmission of supplemental material•Review and communicate fiscal impact of legislation

Provide support to the Governor’s Office•Provide explanations and communicate responses to inquiries•Review and communicate fiscal impact of legislation

N/A

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LSME: J. Hicks



•It is the Commonwealth’s intent to automate as much of the current budget preparation process as possible. This will include full automation of the budget preparation process within MARS. This includes the capacity for agencies to develop their budget requests electronically within the agency, transmit their budget requests in an electronic format to GOPM and LRC for consideration, and route the Governor’s recommendation electronically to the General Assembly.


Current to New Role Comparison: Biennial Budget PreparationCurrent to New Role Comparison: Biennial Budget PreparationCurrent to New Role Comparison: Biennial Budget PreparationCurrent to New Role Comparison: Biennial Budget Preparation




MARS Documents Documents Formerly Used

Miscellaneous spreadsheets and templates were formerly used by the agencies.

BRASS budget forms; specific names and formats being finalized as of late February, 1999.