Program Authorization: La. Constitution, Article III, Sec. 16, Article IV, Secs. 4, 9, 10(A), and 26; R.S. 49:307-327.1; R.S. 39:136.1-138, 321-332
The mission of the Financial Accountability and Control Program is to provide the highest quality financial controls and information to accomplish the constitutional requirements directed to the state treasurer which are to maintain custody and safety of taxpayers monies and to ensure that those monies are disbursed out of the state treasury in accordance with constitutional and statutory law.
The goal of the Financial Accountability and Control Program is to provide an accounting of all public monies on deposit in the state treasury and to control disbursement of these monies in a manner that ensures monies are disbursed only in accordance with the Louisiana Constitution and statutory laws of this state following prudent cash management practices.
In numerical terms, the state treasurer receives over 4.9 million deposit items included in over 61,000 deposits per year, totaling over $7 billion. These monies are polled with other state monies and held in various investment portfolios which averages over $2.3 billion. In turn, the state treasurer releases over 510,800 checks to pay vendors through the Government Finance System and monitors agency bank accounts, which issue over 6.7 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 $265 million to local governments under the authority of 14 distribution programs.
OBJECTIVES AND PERFORMANCE INDICATORS
1. In FY 1998-99 the Financial Accountability and Control Program will provide accurate and efficient financial accounting, reporting, and distribution of the monies in funds and accounts in the State Treasury.
1 After the implementation of Act 5 of the 1st Extraordinary Session of 1988, there were 78 special funds in the State Treasury. At that time, there were 16 authorized positions in the Fiscal Control Section. There are currently 293 special funds in the State Treasury. The number of authorized positions has increased by only one position. As a result, the workload of the existing staff, who perform accounting and banking functions for each sepial fund, has increased beyond normal capacity.
2 The state entered a five-year contract for central depository banking services effective November 1, 1996. The bank was chosen utilizing an RFP process, thus allowing for the payment of fee for services rendered at the lowest possible cost to the state.
2. In FY 1998-99, the Financial Accountability and Control Program will improve internal controls related to cash management procedures in the State Treasury.
1 The central depository bank account is utilized to pool the state's cash receipts. This cash management technique provides greater investment opportunities. This account receives over $7 billion represented by more than 4.9 million deposit items and thousands of disbursement items through zero balance bank accounts (ZBA) tied to it. The automation of the supporting schedules utilized to reconcile this account provides more timely discovery of errors, omissions, corrections, etc.
3. In FY 1998-99, the Financial Accountability and Control Program will improve the methods of cash disbursement out of the State Treasury in order to enhance the State Treasury's investment opportunities by more clearly defining cash flow needs on a day-to-day basis.
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
The total means of financing for this program is recommended at 99.4% of the existing operating budget. It represents 92.2% of the total request ($2,160,510) for this program. The net decrease in funding is due to decreases in the retirement rate and risk management premiums along with increased funding for acquisitions. One position has been transferred to the Debt management Program to place it in the appropriate program.
ACQUISITIONS AND MAJOR REPAIRS
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