FY2010 Budget Analysis - Legislative Post Audit

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LEGISLATIVE POST AUDITActual Agency Est. Gov. Rec. Agency Req. Gov. Rec.Expenditure FY 2008 FY 2009 FY 2009 FY 2010 FY 2010Operating Expenditures: State General Fund $ 2,483,204 $ 2,808,623 $ 2,808,623 $ 2,813,490 $ 2,750,359 Other Funds 0 0 0 0 0 TOTAL $ 2,483,204 $ 2,808,623 $ 2,808,623 $ 2,813,490 $ 2,750,359Percentage Change: Operating Expenditures: State General Fund 2.6% 10.9% 10.9% 0.2% (2.1)% All Funds 2.6 10.9 10.9 0.2 (2.1)FTE Positions 27.0 27.0 27.0 27.0 27.0Non-FTE Perm. Uncl. Pos. 0.0 0.0 0.0 0.0 0.0 TOTAL 27.0 27.0 27.0 27.0 27.0AGENCY OVERVIEWThe Legislative Division of Post Audit is the audit arm of the Kansas Legislature. TheDivision is responsible for the financial-compliance and performance audits of state agencies andprograms. The Division’s audit work is conducted in accordance with generally acceptedgovernmental auditing standards as set forth by the U.S. General Accounting Office. The agencyoperates under the supervision of the ten member Legislative Post Audit Committee.MAJOR ISSUES FROM PRIOR YEARSIn previous years, concerns have been raised in both the House Budget Committee andSenate Subcommittee that Legislative agencies be fully staffed. Legislative Division of Post Audithas fully funded their existing positions in this budget request, and has budgeted funding for somecontract audit work if an outside audit is directed by the Legislature.In 2003, the Governor implemented a new placeholder budget ...

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• Publié par: Thion
• Nombre de lectures: 21
• Langue: English

Extrait

Legislative Post Audit

1431

L

EGISLATIVE

P

OST

A

UDIT

Actual

Agency Est.

Gov. Rec.

Agency Req.

Gov. Rec.

Expenditure

FY 2008

FY 2009

FY 2009

FY 2010

FY 2010

Operating Expenditures:

State General Fund

$

2,483,204 $

2,808,623 $

2,808,623 $

2,813,490 $

2,750,359

Other Funds

0

0

0

0

0

TOTAL

$

2,483,204 $

2,808,623 $

2,808,623 $

2,813,490 $

2,750,359

Percentage Change:

Operating Expenditures:

State General Fund

2.6%

10.9%

10.9%

0.2%

(2.1)%

All Funds

2.6

10.9

10.9

0.2

(2.1)

FTE Positions

27.0

27.0

27.0

27.0

27.0

Non-FTE Perm. Uncl. Pos.

0.0

0.0

0.0

0.0

0.0

TOTAL

27.0

27.0

27.0

27.0

27.0

A

GENCY

O

VERVIEW

The Legislative Division of Post Audit is the audit arm of the Kansas Legislature. The

Division is responsible for the financial-compliance and performance audits of state agencies and

programs.

The Division’s audit work is conducted in accordance with generally accepted

governmental auditing standards as set forth by the U.S. General Accounting Office. The agency

operates under the supervision of the ten member Legislative Post Audit Committee.

MAJOR ISSUES FROM PRIOR YEARS

In previous years, concerns have been raised in both the House Budget Committee and

Senate Subcommittee that Legislative agencies be fully staffed. Legislative Division of Post Audit

has fully funded their existing positions in this budget request, and has budgeted funding for some

contract audit work if an outside audit is directed by the Legislature.

In 2003, the Governor implemented a new placeholder budget process for all Legislative and

Judicial branch agencies. The FY 2004 budget recommended by the Governor was the exact

amount approved for FY 2003 by the 2002 Legislature. This process left all the budget decisions

to be made by the Legislature during the session.

In 2004, the Governor modified the placeholder budget process that was used in 2003. Both

the Legislative Branch and the Judicial Branch budgets were recommended by the Governor as the

agency requested, without proposed changes. While required under 2003 SB 21 (law) to submit the

judicial budget without change, it was a policy decision to use the same process for the Legislative

Branch.

In the 2005 session, the legislature passed 2005 HB 2247, the school finance bill, that

created a new role for the Legislative Division of Post Audit with regard to oversight of school district

costs and expenditures. The bill requires the Division to make a professional cost study analysis to

determine the costs of delivering the kindergarten and grades one through 12 curriculum, related

services, and other programs that are mandated by state statute in accredited schools. This bill also

established the "School District Audit Team" within the Legislative Division of Post Audit to

accomplish the new role and provided an additional five positions.

Legislative Post Audit

1432

BUDGET SUMMARY AND KEY POINTS

FY 2009 – Current Year. Legislative Post Audit requests a revised FY 2009 budget

totaling $2.8 million, all from the State General Fund, an increase of $108,315, or 4.0 percent, above

the amount approved by the 2008 Legislature.

The increase is the result of an unlimited

reappropriation of $174,789 which carried forward from FY 2008. The agency anticipates spending

$108,315 of this reappropriation and lapsing $57,500 or 2.0 percent of available funding for FY 2009.

The remaining $8,974 will be carried forward to FY 2010 to reduce the amount of State General

Funds requested for FY 2010.

The Governor concurs with the agency estimate.

FY 2010 – Budget Year. Legislative Post Audit requests an FY 2010 budget of $2.8

million, all from the State General Fund an increase of $4,867, or 0.2 percent, above the revised

current year estimate. The request would fund 27.0 FTE positions. The increase is reflected in

salaries and wages ($22,1640) offset by a reduction in Financial Audit Contracts ($6,500) and other

operating expenses ($10,800).

The Governor concurs with the agency request and reduces $63,131, all from the State

General Fund, for the implementation of statewide moratoriums. The two moratoriums include a

reduction of $13,452, all from the State General Fund, from a nine-month moratorium on state

contributions to the KPERS Death and Disability Fund, and $49,679, all from the State General

Fund, for a seven payroll period moratorium on state contributions to the state employee health

insurance program.

Legislative Post Audit

1433

B

UDGET

T

RENDS

OPERATING EXPENDITURES

FY 2001–FY 2010

Fiscal Year

SGF

% Change

All Funds

% Change

FTE

2001

$

1,649,667

6.0%

$

1,649,667

6.0%

21.0

2002

1,710,969

3.7

1,710,969

3.7

21.0

2003

1,635,705

(4.4)

1,635,705

(4.4)

21.0

2004

1,694,380

3.6

1,694,380

3.6

21.0

2005

1,927,713

13.8

1,927,713

13.8

21.0

2006

2,405,851

24.8

2,405,851

24.8

26.0

2007

2,419,159

0.6

2,419,159

0.6

26.0

2008

2,483,204

2.6

2,483,204

2.6

27.0

2009 Gov. Rec.

2,808,623

10.9

2,808,623

10.9

27.0

2010 Gov. Rec.

2,750,359

(2.0)

2,750,359

(2.0)

27.0

Ten-Year Change

Dollars/Percent

$

1,100,692

66.7%

$

1,100,692

66.7%

6.0

OPERATING EXPENDITURES

FY 2001–FY 2010

L

e

g

is

la

t

iv

e

P

o

s

t

A

u

d

i

t

1

4

3

4

Summary of Operating Budget FY 2008-FY 2010

Agency Request

Governor’s Recommendation

Dollar

Percent

Dollar

Percent

Actual

Estimate

Request

Change

Change

Rec.

Rec.

Change

Change

FY 2008

FY 2009

FY 2010

from FY 09

from FY 09

FY 2009

FY 2010

from FY 09

from FY 09

By Program:

Legislative Post Audit

$

2,483,204 $

2,808,623 $

2,813,490 $

4,867

0.2%

$

2,808,623 $

2,750,359 $

(58,264)

(2.1)%

By Major Object of Expenditure:

Salaries and Wages

$

2,018,402 $

2,260,342 $

2,282,509 $

22,167

1.0%

$

2,260,342 $

2,219,378 $

(40,964)

(1.8)%

Contractual Services

449,088

522,181

508,381

(13,800)

(2.6)

522,181

508,381

(13,800)

(2.6)

Commodities

13,674

16,600

16,600

0

0.0

16,600

16,600

0

0.0

Capital Outlay

2,040

9,500

6,000

(3,500)

(36.8)

9,500

6,000

(3,500)

(36.8)

Subtotal - State Operations $

2,483,204 $

2,808,623 $

2,813,490 $

4,867

0.2%

$

2,808,623 $

2,750,359 $

(58,264)

(2.1)%

Aid to Local Units

0

0

0

0

0.0

0

0

0

0.0

Other Assistance

0

0

0

0

0.0

0

0

0

0.0

TOTAL

$

2,483,204 $

2,808,623 $

2,813,490 $

4,867

0.2%

$

2,808,623 $

2,750,359 $

(58,264)

(2.1)%

Financing:

State General Fund

$

2,483,204 $

2,808,623 $

2,813,490 $

4,867

0.2%

$

2,808,623 $

2,750,359 $

(58,264)

(2.1)%

All Other Funds

0

0

0

0

0.0

0

0

0

0.0

TOTAL

$

2,483,204 $

2,808,623 $

2,813,490 $

4,867

0.2%

$

2,808,623 $

2,750,359 $

(58,264)

(2.1)%

Legislative Post Audit

1435

B

UDGET

O

VERVIEW

A. FY 2009 – Current Year

CHANGE FROM APPROVED BUDGET

Approved

Agency

Agency

Governor

Governor

2008

Estimate

Change from

Rec.

Change from

Legislature

FY 2009

Approved

FY 2009

Approved

State General Fund

$

2,700,308 $

2,808,623 $

108,315 $

2,808,623 $

108,315

All Other Funds

0

0

0

0

0

TOTAL

$

2,700,308 $

2,808,623 $

108,315 $

2,808,623 $

108,315

FTE Positions

27.0

27.0

0.0

27.0

0.0

Legislative Post Audit requests a revised FY 2009 budget totaling $2.8 million, all from the

State General Fund, an increase of $108,315, or 4.0 percent, above the amount approved by the

2008 Legislature. The increase is the result of an unlimited reappropriation of $174,789 which

carried forward from FY 2008. The agency anticipates spending $108,315 of this reappropriation

and lapsing $57,500 or 2.0 percent of available funding for FY 2009. The remaining $8,974 will be

carried forward to FY 2010 to reduce the amount of State General Funds requested for FY 2010.

Most of the increased expenditure estimate is for salaries and wages ($90,678), and reflects the

most recent calculation of expenditures. Increases are also estimated in contractual services

($15,137) and capital outlay ($2,500).

The Governor concurs with the agency request.

Kansas Savings Incentive Program (KSIP) Expenditures

Legislative Post Audit does not participate in the Kansas Savings Incentive Program.

Legislative Post Audit

1436

B. FY 2010 – Budget Year

FY 2010 OPERATING BUDGET SUMMARY

Agency

Governor’s

Request

Recommendation

Difference

Total Request/Recommendation $

2,813,490 $

2,750,359 $

(63,131)

Change from FY 2009:

Dollar Change:

State General Fund

$

4,867 $

58,264

All Other Funds

0

0

TOTAL

$

4,867 $

58,264

Percent Change:

State General Fund

0.2%

(2.1)%

All Other Funds

0.0

0.0

TOTAL

0.2%

(2.1)%

Change in FTE Positions

0.0

0.0

Legislative Post Audit requests an FY 2010 budget of $2.8 million, all from the State

General Fund an increase of $4,867, or 0.2 percent, above the revised current year estimate. The

request would fund 27.0 FTE positions. The increase is reflected in salaries and wages ($22,164)

offset by a reduction in Financial Audit Contracts ($6,500) and other operating expenses ($10,800).

The Governor concurs with the agency request and reduces $63,131, all from the State

General Fund, for the implementation of statewide moratoriums. The two moratoriums include a

reduction of $13,452, all from the State General Fund, from a nine-month moratorium on state

contributions to the KPERS Death and Disability Fund, and $49,679, all from the State General

Fund, for a seven payroll period moratorium on state contributions to the state employee health

insurance program.

FY 2010 ENHANCEMENTS

Agency Request

Governor’s Recommendation

Enhancement

SGF

All Funds

FTE

SGF

All Funds

FTE

The agency did not submit any enhancements in FY 2010.

FY 2010 REDUCED RESOURCES

Agency Recommendation

Governor’s Recommendation

Item

SGF

All Funds

FTE

SGF

All Funds

FTE

The agency did not submit a reduced resources budget in FY 2010.

Legislative Post Audit

1437

Governor’s Recommended Salary and Wage Adjustments

State Employee Pay Increases. The Governor's FY 2010 recommendation includes a 1.0 percent base salary

adjustment for all employees for the entire fiscal year. W hile there is a base salary increase recommended, the

Governor’s recommendation is for the pay increase to be self funded from within existing resources. It is estimated

that the 1.0 percent increase would total $22.8 million, including $10.7 million from the State General Fund. For this

agency, the recommended self-funded pay increase is estimated to be $20,869, all from the State General Fund.

Classified Employee Pay Plan. During the 2007 interim, the State Employee Compensation Oversight Commission

was charged with the development of a new pay plan for classified employees for the Governor, Chief Justice of the

Supreme Court and 2008 Legislature to consider. The Commission endorsed the recommendation of the Hay Group

that five separate pay plans be created for state employees in the classified service, with different opportunities for

pay increases to acknowledge the different types of work performed. The five pay plans recommended include: a

management pay plan for those involved in managerial functions (increases based on performance); a professional

individual contributor for employees requiring knowledge of principles and theories of a professional discipline that

is normally obtained through a college curriculum (increases within broad bands to reflect different levels of work and

performance against established standards); a protective service pay plan for uniformed officers and all other

positions that meet the definition of police or law enforcement officer (increases based on achievement of milestone

and certification events as well as time on the job and performance); a basic vocational pay plan for employees that

perform routine, structured, work where performance can be measured on a pass/fail basis (increases based on the

traditional step movement approach, based on time on the job); and a general classified pay plan for those

employees who do not fall within the parameters of the other four plans (the pay ranges will have steps below the

market rate and an open range above the market rate).

The time frame to fully implement the recommended plan is five years.

Under the Governor’s

recommendations, the classified employees will be divided into three groups to first address those with the greatest

salary disparity to the market rate. In the first year, FY 2009, the first phase included the basic vocational classes,

as well as the isolated worst cases costing $16.0 million, including $8.5 million from the State General Fund. The

2008 Legislature appropriated $8.5 million from the State General Fund for FY 2010 through FY 2013 to the State

Finance Council. The Governor does not recommend changing the funding and leaves the money appropriated to

the State Finance Council. Because funding was appropriated to the State Finance Council, no funding is included

in the individual agency budgets.

Moratorium on Employer Contributions to the State Employee Health Plan. The Governor is recommending a

partial year moratorium for the State’s contribution to the state employee health plan. The moratorium will occur

in the first seven payroll periods of FY 2010, with balances in the Health Insurance Premium Reserve Fund sufficient

to maintain state employee health benefits. The state health plan moratorium is anticipated to save $66.1 million,

including $32.0 million from the State General Fund. In addition, the Governor recommends sweeping savings from

special revenue funds (excluding federal funds) that would have been spent for this purpose totaling $23.7 million.

For this agency, the recommended savings is estimated to be $49,679, all from the State General Fund.

Moratorium on KPERS Death and Disability The Governor recommends a partial year moratorium on the employer

contribution to KPERS death and disability. The moratorium will last the first nine months of FY 2010 and generate

an estimated $37.7 million, including $30.4 million from the State General Fund, in savings. In addition, the Governor

recommends sweeping savings from special revenue funds (excluding federal funds) that would have been spent for

this purpose totaling $5.1 million. For this agency, the recommended savings is estimated to be $13,452, all from

the State General Fund.

Longevity Bonus Payments. The Governor recommends the continuation of the current “temporary” longevity bonus

payment program. The recommendation provides for a bonus of $50 per year of service, with a 10-year minimum

($500) and a 25-year maximum ($1,250). The current statutory provisions of the longevity bonus payment are $40

per year of service, with a 10-year minimum ($400), and a 25-year maximum ($1,000). The estimated cost for the

recommended FY 2009 payments is $12.7 million, including $6.2 million from the State General Fund. For this

agency, the Governor recommends longevity funding totaling $11,951, all from the State General Fund.

Kansas Public Employees Retirement System (KPERS) Rate Adjustments. A total of $7.1 million, including $3.4

million from the State General Fund, is included in the Governor’s FY 2009 recommendations for KPERS adjustments.

The FY 2009 rate for KPERS regular and school members will increase by 0.6 percent, from 6.97 percent to 7.57

percent, when compared to FY 2008. This increase is attributable to the annual statutory increase for financing the

unfunded liability of the KPERS fund.

Legislative Post Audit

1438

Funding Sources

Agency Req.

Gov. Rec.

Percent of

Percent of

Funding Source

Total FY 2010

Total FY 2010

State General Fund

100.0%

100.0%

Legislative Post Audit

1439

P

ROGRAM

D

ETAIL

Gov. Rec.

Percent of

PROGRAM

FY 2010

Total

Salaries and Wages

$

2,219,378

80.7%

Contractual Services

508,381

18.5

Commodities

16,600

0.6

Capital Outlay

6,000

0.2

TOTAL

$

2,750,359

100.0%