Appropriation Management through MMARS Budgets

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Appropriation Management through MMARS Budgets

• Julia Burns, CTR
• Kristine Drea, CTR
• CFO Conference
• Thursday, November 18, 2004

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Agenda

• Overview of MMARS Budgets
• Departmental Expense Budgets
• Tools to Track Budgets
• Recommendations for Next FY
• Discussion

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Searching for MMARS Information
Business Functions
Primary Navigation Panel
Secondary Navigation Panel
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Searching for MMARS Information

• Search by
• Category
• Page Type
• Description
• Page Code

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Appropriation Inquiries

• Appropriation Type (APTYP)
• Appropriation (APPR)
• Appropriation Budget Summary (ASUM)

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Appropriation Type (APTYP)

• 2CN (Capital)
• 3TN (Trust)
• 3TX (Trust, Non-cash)
• 4FN (Federal Grant)

• 1CN (Direct Appropriation Non-subsidiarized)
• 1CS (Direct Appropriation Subsidiarized)
• 1IN (Intragovernmental Non-subsidiarized)
• 1IS (Intragovernmental Subsidiarized)
• 1RN (Retained Revenue Non-subsidiarized)
• 1RS (Retained Revenue Subsidiarized)

MMARS Appropriation Types
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Appropriation (APPR)
Appropriation 50112001 has an Appropriation type
of 3TN (Trust)
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Appropriation Budget Summary (ASUM)
Search Functionality
Central Expense (CE)
Central Subsidiary Expense (CSE)
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Overview Budget Structures

• Central Budget Structures
• Central Expense (Former 00 Subsidiary)
• Based on GAA
• Established by ANF using the BGCN
• Appropriation Types 1CN, 1IN, 1RN, 2CN, 3TN, 4FN
• 2 Levels BQ89LV
• Level 1 BFY, Appropriation, Fund, Sub Fund
• Level 2 BFY, Appropriation, Fund, Sub Fund,
  Department
• Controls set at Level 2

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Central Expense (BQ89LV2)
Trust Account (3TN)
COA Elements
Appropriation Fund Sub Fund Department
Drill Down
Formula Definition Obligation Ceiling - Pre
Encumbered - Encumbered - Accrued Expenses - Cash
Expenses
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Overview Budget Structures

• Central Budget Structures
• Central Subsidiary Expense (Object Class AA-TT)
• Based on GAA
• Established by ANF using the BGCS
• Appropriation Types 1CS, 1IS, 1RS
• 3 Levels BQ81LV
• Level 1 BFY, Appropriation, Fund, Sub Fund
• Level 2 BFY, Appropriation, Fund, Sub Fund,
  Department
• Level 3 BFY, Appropriation, Fund, Sub Fund,
  Department, Object Class
• Controls set at Level 3 (Object Class)

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Central Subsidiary Expense (BQ81LV3)
Direct Appropriation (1CS)
COA Elements
Appropriation Fund Sub Fund Department Object
Class
APR2/APR4 information
APR1/APR3 information
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Overview Budget Structures

• Central Budget Structures
• Central Revenue (Former REVB)
• Established by CTR using the BGRN
• Three Levels BQ82LV
• Level 1 BFY, Fund, Sub Fund
• Level 2 BFY, Fund, Sub Fund, Department
• Level 3 BFY, Fund, Sub Fund, Department, Revenue
  Source
• Controls set at Level 3

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Central Revenue (BQ82LV3)
COA Elements
Fund Sub Fund Department Revenue Source
Drill Down
Formula Definition Collected Earned Revenue
Billed Earned Unbilled Earned Collected
Unearned/Deferred
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Overview Budget Structures

• Departmental Budget Structures
• Departmental Expense (Former ESUM)
• Established By Department using BGDN
• Appropriation Types 1CN, 1IN, 1RN, 2CN, 3TN, 4FN
• Three Budget Levels BQ83LV
• Level 1 BFY, Appropriation, Department,
  Division
• Level 2 BFY, Appropriation, Department,
  Division, District
• Level 3 BFY, Appropriation, Department,
  Division, District, Object
• Controls set at Level 1
• Department can manually set controls at Levels 2
  or 3 when entering BGDN

Department Defined COA Elements
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Departmental Expense (BQ83LV2)
COA Elements
Appropriation Department Division District
Department Defined COA Elements
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Departmental Expense (BQ83LV2)

• System-wide controls are set to No Action
• Departments may modify to Warning or Require
  Override
• Departmental Budgets do not have allotments

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Overview Budget Structures

• Departmental Budget Structures
• Departmental Subsidiary Expense (Former ESUM)
• Established By Department using the BGDS
• Appropriation Types 1CS, 1IS, 1RS
• Three Budget Levels BQ84LV
• Level 1 BFY, Appropriation, Department, Object
  Class, Division
• Level 2 BFY, Appropriation, Department, Object
  Class, Division, District
• Level 3 BFY, Appropriation, Department, Object
  Class, Division, District, Object
• Controls set at Level 1
• Department can manually set controls at Levels 2
  or 3 when entering BGDS

Department Defined COA Elements
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Departmental Subsidiary Expense (BQ84LV2)
COA Elements
Appropriation Department Object
Class Division District
Department Defined COA Elements
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Overview Budget Structures

• Departmental Budget Structures
• Departmental Revenue (New)
• Established By Department using the BGDR
• One Budget Level BQ85LV1
• Level 1 BFY, Fund, Sub Fund, Department, Revenue
  Source, Unit

Department Defined COA Elements
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Departmental Revenue BQ85LV1
COA Elements
Fund Sub Fund Department Revenue Source Unit
Department Defined COA Elements
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Overview Budget Structures

• Cost Accounting Structures
• Capital Spending (New)
• Established by ANF using the BGCP
• Appropriation Type 2CN
• 4 Budget Levels BQ86LV
• Level 1 BFY, Appropriation Type, Appropriation
  Group
• Level 2 BFY, Appropriation Type, Appropriation
  Group, Major Program Category
• Level 3 BFY, Appropriation Type, Appropriation
  Group, Major Program Category, Department
• Level 4 BFY, Appropriation Type, Appropriation
  Group, Major Program Category, Department,
  Appropriation

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Capital Spending (BQ86LV1)
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Capital Spending (BQ86LV2)
COA Elements
Appropriation Type Appropriation Group Major
Program Category
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Capital Spending (BQ86LV3)
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Overview Budget Structures

• Cost Accounting Structures
• Reimbursable Grant (New)
• Established by Department with CTR Approval using
  the BGRG
• Appropriation Type 4FN
• 2 Budget Levels BQ88LV
• Level 1 Department, Major Program, Program,
  Funding Profile, Funding Priority
• Level 2 Department, Major Program, Program,
  Funding Profile, Funding Priority, Funding Line

Department Defined COA Elements
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Reimbursable Grant (BQ88LV2)
COA Elements
Department Major Program Program Funding
Profile Funding Priority Funding Line
Department Defined COA Elements
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Reimbursable Grant (BQ88LV2)
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Overview Budget Structures

• Cost Accounting Structures
• Program Budget (New)
• Established by Department with CTR Approval using
  the BGPR
• Appropriation Type 2CN
• 4 Budget Levels BQ87LV
• Level 1 Program Class
• Level 2 Program Class, Department, Program
• Level 3 Program Class, Department, Program,
  Phase
• Level 4 Program Class, Department, Program,
  Phase, Activity

ISA Parent Department Defined COA Elements
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Program Budget (BQ87LV4)
COA Elements
Program Class Department Program Phase Activity
ISA Parent Department Defined COA Elements
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Program Budget (BQ87LV4)
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DMH Capital Spending and Program Budget Example

• Capital Spending Appropriation
• 3 Budget structures
• Central Expense BGCN/BQ89LV2
• Capital Spending BGCP/BQ86LV3
• Program Budget BGPR/BQ87LV4

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Central Expense (BQ89LV2)
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Central Expense (BQ89LV2)
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Capital Spending (BQ86LV3)
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Program Budget (BQ87LV4)
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Program Budget (BQ87LV4)
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DMH Federal Grant Example

• Federal Grants
• 3 Budget structures
• Central Revenue BGRN/BQ82LV3
• Central Expense BGCN/BQ89LV2
• Reimbursable Grant BGRG/BQ88LV2
• DMH also utilizes Departmental Budgets
• Departmental Expense BGDN/BQ83LV2

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Central Revenue (BQ82LV3)
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Central Revenue (BQ82LV3)
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Central Expense (BQ89LV2)
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Central Expense (BQ89LV2)
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Central Expense (BQ89LV2)
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Departmental Expense (BQ83LV2)
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Departmental Expense (BQ83LV2)
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Reimbursable Grant (BQ88LV2)
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Reimbursable Grant (BQ88LV2)
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Departmental Expense Budgets

• Pros
• Flexible to meet departments' needs
• 3 budget levels
• Division
• Division/District
• Division/ District/Object Code

• Pros
• Controls
• No Action
• Warning
• Require Override
• Online inquiry screens
• BQ83
• BQ84
• BQ85
• Both Expenditure and Revenue

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Departmental Expense Budgets

• Cons
• At which level will the Departmental Expense
  Budgets be entered?
• Level 1 -- Division only
• Level 2 -- Division and District
• Level 3 -- Division, District and Object Code
• Will the no action constraint be changed to
  warning or override?

• Cons
• A number of decisions must be made prior to
  opening activity
• Will all appropriations be subject to
  Departmental Expense Budgets?
• If only specific appropriations will use
  Departmental Expense Budgets, which ones?

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Departmental Expense Budgets

• Cons
• Budget documents must be in final status before
  any activity
• Pre-Encumbrance
• Encumbrance
• Expenditure (including payroll)

• Cons
• Chart of Account elements must be determined and
  entered prior to entering budget documents.
• Unit rollups include unique division or division
  and district combinations.

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Tools to Track Budgets

• DocDirect Web
• https//docdirect.itd.state.ma.us/
• Source System Reports
• CIW Web Portal
• https//ciw-reports.state.ma.us
• Departmental Reports Ad Hoc Reports
• CIW Views
• http//www.iw.state.ma.us/
• Starter Queries

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DocDirect NAR406S
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CIW Web Portal NGA208W
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CIW Starter Queries

• Budget Structures
• Document Management
• Disbursements
• Encumbrances
• General Accounting
• Intragovernmental

• Labor Cost Management(LCM)
• Master Agreement
• Pre-Encumbrances
• Receivables/Revenues
• Spending
• Vendor Customer

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Recommendations for Next FY

• Learning from the lessons of this initial
  implementation year and correcting/fine tuning
  how budgets are established
• Departmental Expense Budgets
• What controls are used
• Refining the chart of account structure
• Taking advantage of unused data elements
• CTR advice for FY05 was to do the basics and
  build on that

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Recommendations for Next FY

• Federal Grants
• Importance of defining revenue budgets first
• Establishing programs/major programs, etc.
• Prior to transaction processing
• Utilizing the drill down capacity of the system
• How BQ inquiries equate to APRs but will more
  ability to view pending documents, etc.
• Other Recommendations

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Discussion