Department of Audit and Control

 

The Executive Budget recommends (analysis as of January 28, 2008):

A FY 2008-09 workforce of 2,643.  This is an increase of 114 FTEs from the adjusted FTE level for FY 2007-08.  The following chart identifies adjustments in current fiscal year’s FTEs along with the recommended differences in FY 2008-09 FTEs by program (if the FTE’s are the same the program is not listed).  The department reconfigured many of its programs during SFY 2007-08 which makes changes in some programs during that fiscal year difficult to evaluate:

 

Program

FY 2007-08 Adjustment

FY 2008-09 Difference

Administrative and Data Processing

-334

0

Administration

+117

+7

Chief Information Office

0

+4

Executive Direction

+70

+1

Pension Investment and Public Finance Program

-6

0

Legal Services

+29

0

State Services

-562

0

State Operations

+609

+39

State and Local Accountability

+541

+40

Retirement Services Program

0

+23

 

 

 

·         The former Administrative and Data Processing program has been spilt into two programs: Administration with 117 FTEs in SFY 2007-08 and Chief Information Office with 177 FTEs in SFY 2007-08. Together these programs were authorized to have 334 FTEs in SFY 2007-08 and together they had 294 FTEs or 40 FTEs less than authorized. We believe these 40 FTEs were moved to the Executive Direction and Legal Services programs which helps explains both programs’ large FTE increase during SFY 2007-08 and both programs’ significant increase in personal and non-personal service appropriations for SFY 2008-09.  In SFY2008-09 7 FTEs are recommended to be added to the new Administration program, 4 FTEs are recommended to be added to the new Chief Information Office, and 1 FTE is recommended to be added to the Executive Direction program. The SFY 2008-09 appropriations for these programs and their changes from their SFY 2007-08 enacted appropriations appears consistent with this analysis although it is unclear how the new positions in the Administration and Chief Information Office programs will be funded as there appears to be a $3.5 million decrease in the personal services appropriations for these two programs which is only offset by a $3.5 million increase in the personal service appropriation for the Executive Direction (+1.7 million for one additional FTE) and Legal Services program (+2.1 million for no additional FTEs).  Exactly what programs/units and the number of FTEs that were moved during SFY 2007-08 should be clarified at statewide labor management as well as the funding source for the new positions.

 

 

·         The General Fund portion of the State Services program and its authorized 543 FTEs in SFY2007-08 has been moved into two different new programs: The State and Local Accountability program, which had an authorized level of 541 FTEs in SFY 2007-08, and the State Operations program, which had 609 authorized FTEs in SFY 2007-09.  We believe the former Payroll and Revenue Services program and its authorized 329 FTEs for SFY 2007-08 have been completely moved into the new State Operations program which, if accurate, would mean that 280 of the former State Services FTEs were moved into the new State Operations program and 263 of the former State Services FTEs were moved into the new State and Local Accountability Program.  We believe that all of the 286 FTEs for the former Local Government Services and Economic Development program were moved in the new State and Local Accountability program.  If you add all the SFY 2007-0-08 authorized FTEs for the former State Services (General Fund), Local Government Services and Economic Development, and Payroll and Revenue Services programs you would get 1,158 authorized FTEs slightly more than the 1,150 FTEs the SFY 2008-09 Executive Budget states are authorized for the new State and  Local Accountability and State Operations programs.  If accurate that would mean the department did not fill 8 of the FTEs it was authorized to fill in these combined programs.  This would also mean that the Department did not use for these programs the $2.35 million the Legislature added in the enacted SFY 2007-08 budget in a new maintenance undistributed appropriation in the Local Government Services & Economic Development program. We believed this additional funding was targeted for additional staff to audit school districts.  What these additional funds were used for and exactly what programs/units and the number of FTEs that were moved among these programs during SFY 2007-08 should be clarified at statewide labor management.  This should be clarified at statewide labor management. 

 

 

·         The SFY 2008-09 appropriations for the State and Local Accountability and State Operations programs and their changes from their SFY 2007-08 enacted appropriations appears consistent with the FTE analysis above.  There also appears to be adequate new funding for the new positions for both programs as their combined SFY 2008-09 personal service appropriations are increased by over $22 million offset by the $16.2 million decrease in the personal service appropriation for the Payroll and Revenue Service program which is now part of the State Operations program.  The adequacy of the funding for the new positions, particularly in the State Operations program which has a much smaller personal service appropriation increase than the increase in the personal service appropriation for the State and Local Accountability program, should be discussed at statewide labor management.  The Executive Budget (in the Projected Levels of Employment by Program table) also indicates that 19 FTEs that were in the State Services Program still exist, but the funding source for these positions does not correspond to the stated source.  8 FTEs are supposed to be supported by Special Revenue-Federal funds, however there are no Federal funds in the Department’s State Operations budget.  11 FTEs are supposed to be supported by Internal Services funds (ISF) however, there is only a $150,000 ISF appropriation in the State Operations program.  This discrepancy should be clarified at labor management.

 

 

·         40 new FTE positions are recommended for the new State and Local Accountability program.  According to the Executive Budget, “The State and Local Government Accountability program provides oversight through audits of all State and local government agencies, authorities and special purpose entities. Collects and reviews local government financial data, provides training programs and support services for local financial officials, and publishes research and analysis on a variety of local government policy issues. The Office is comprised of the Divisions of State Government Accountability and Local Government and School Accountability.”

 

·         39 new FTE positions are recommended for the new State Operations program.  According to the Executive Budget, “The Office of State Operations provides accounting and financial reporting services, audits State contracts, expenditures and payrolls prior to payment, carries out the mandates of the Abandoned Property Law by safeguarding lost assets belonging to residents, maintains the State’s current Central Accounting System, and is leading an initiative to replace the 20 year old system. The Office is also responsible for the VendRep system, which was established to promote State agency and Office of the State Comptroller due diligence in assessing the responsibility of vendors with whom the State contracts.”

 

·         A small decrease in the General Fund personal and non-personal appropriations for the Pension Investment and Public Finance program which appears consistent with the loss of 6 FTEs in this program.  However, this spending appears to have been moved to the Fiduciary Fund that also provides funding for this program and the personal and non-personal service appropriations for that Fund increase greater than the decrease in the personal and non-personal service General Fund appropriations for this program.  This issue should be clarified at statewide labor management. According to the Assembly, the $1.99 million increase in this Fiduciary account reflects a revised compensation structure for the Division of Pension and Cash Mangagement.

 

·         23 new FTE positions are recommended for the Retirement Services Program.  The Assembly indicates that these positions are for various initiatives including continuation of a retirement systems redesign process, backfile conversion for electronic storage and retrieval, and workload increases.

 

The Department of Audit and Control employed an estimated 340 FTE employees under consultant contracts in SFY 2007-08 at an estimated cost of $17.7 million or an average cost of $52,106 per consultant contract employee.  It is estimated that the number of FTE employees employed under consultant contracts will decrease to 261 in SFY 2008-09, a decrease of 39 FTE employees.  The consultants will be paid $27.4 million, in SFY 2008-09, and the average cost will increase to $105,154 per FTE consultant contract employee, a more than 100% increase over the average cost per FTE consultant employee in SFY 2007-08.  The purpose and use of these contract employees, the reason for their increased cost, and whether they can be replaced by state employees should be clarified at statewide labor management.

 

Department of Audit and Control 
Program Details-State Operations 
  Enacted Proposed Change in Percent
Program 2007-08 Budget 2008-09 Budget Appropriation Change
All Funds $233,577,000 $244,969,000 $11,392,000 4.9%
General Fund $135,752,000 $141,186,000 $5,434,000 4.0%
Special Revenue-Other (SRO) $5,838,000 $5,978,000 $140,000 2.4%
Internal Service Fund (ISF) $3,487,000 $4,101,000 $614,000 17.6%
Fiduciary/Contingency Funds $88,500,000 $93,704,000 $5,204,000 5.9%
         
Personal Services $149,589,000 $155,162,000 $5,573,000 3.7%
Contractual Services $43,181,000 $49,751,000 $6,570,000 15.2%
         
Administration Program (formerly Admin & EDP) $31,249,000 $12,189,000 ($19,060,000) -61.0%
Personal Service $21,995,000 $6,588,000 ($15,407,000) -70.0%
Regular $21,432,000 $6,438,000 ($14,994,000) -70.0%
Temporary service $563,000 $50,000 ($513,000) -91.1%
Holiday/overtime compensation $0 $100,000 $100,000 100.0%
Nonpersonal Service $9,254,000 $5,601,000 ($3,653,000) -39.5%
Supplies and materials $609,000 $346,000 ($263,000) -43.2%
Travel $354,000 $201,000 ($153,000) -43.2%
Contractual Services $8,030,000 $4,906,000 ($3,124,000) -38.9%
Equipment $261,000 $148,000 ($113,000) -43.3%
         
Chief Information Office Program (EDP from Admin Pgm) $0 $18,943,000 $18,943,000 100.0%
Personal Service $0 $11,906,000 $11,906,000 100.0%
Regular $0 $11,406,000 $11,406,000 100.0%
Temporary service $0 $300,000 $300,000 100.0%
Holiday/overtime compensation $0 $200,000 $200,000 100.0%
Nonpersonal Service $0 $7,037,000 $7,037,000 100.0%
Supplies and materials $0 $550,000 $550,000 100.0%
Travel $0 $125,000 $125,000 100.0%
Contractual Services $0 $4,972,000 $4,972,000 100.0%
Equipment $0 $1,390,000 $1,390,000 100.0%
         
Executive Direction $7,359,000 $9,733,000 $2,374,000 32.3%
Personal Service $5,046,000 $6,512,000 $1,466,000 29.1%
Regular $4,703,000 $6,422,000 $1,719,000 36.6%
Temporary service $343,000 $75,000 ($268,000) -78.1%
Holiday/overtime compensation $0 $15,000 $15,000 100.0%
Nonpersonal Service $666,000 $1,510,000 $844,000 126.7%
Supplies and materials $74,000 $74,000 $0 0.0%
Travel $91,000 $91,000 $0 0.0%
Contractual Services $474,000 $1,315,000 $841,000 177.4%
Equipment $27,000 $30,000 $3,000 11.1%
Internal Service $1,647,000 $1,711,000 $64,000 3.9%
         
Exec Direction Internal Audit (ISF) $1,647,000 $1,711,000 $64,000 3.9%
Personal Service $1,038,000 $1,080,000 $42,000 4.0%
Regular $990,000 $1,032,000 $42,000 4.2%
Temporary Service $48,000 $48,000 $0 0.0%
Nonpersonal Service $609,000 $631,000 $22,000 3.6%
Supplies and materials $24,000 $24,000 $0 0.0%
Travel $42,000 $42,000 $0 0.0%
Contractual Services $38,000 $38,000 $0 0.0%
Fringe benefits $470,000 $492,000 $22,000 4.7%
Indirect costs $35,000 $35,000 $0 0.0%
         
Legal Services $3,616,000 $5,967,000 $2,351,000 65.0%
Personal Services $3,366,000 $5,467,000 $2,101,000 62.4%
Regular $3,308,000 $5,397,000 $2,089,000 63.1%
Temporary service $58,000 $50,000 ($8,000) -13.8%
Holiday/overtime compensation $0 $20,000 $20,000 100.0%
Nonpersonal Services $250,000 $500,000 $250,000 100.0%
Supplies and materials $66,000 $67,000 $1,000 1.5%
Travel $53,000 $73,000 $20,000 37.7%
Contractual Services $131,000 $340,000 $209,000 159.5%
Equipment $0 $20,000 $20,000 100.0%
         
NY Env Protect and Spill Compensation Admin Pgm (SRO) $1,006,000 $1,047,000 $41,000 4.1%
Personal Service $512,000 $537,000 $25,000 4.9%
Regular $425,000 $450,000 $25,000 5.9%
Temporary service $87,000 $87,000 $0 0.0%
Nonpersonal Service $494,000 $510,000 $16,000 3.2%
Supplies and materials $30,000 $30,000 $0 0.0%
Travel $81,000 $81,000 $0 0.0%
Contractual Services $134,000 $136,000 $2,000 1.5%
Fringe benefits $232,000 $246,000 $14,000 6.0%
Indirect costs $17,000 $17,000 $0 0.0%
         
Office of the Deputy Comptroller for NYC (SRO) $4,287,000 $4,287,000 $0 0.0%
Personal Service $2,702,000 $2,702,000 $0 0.0%
Regular $2,654,000 $2,654,000 $0 0.0%
Temporary service $48,000 $48,000 $0 0.0%
Nonpersonal Service $1,585,000 $1,585,000 $0 0.0%
Supplies and materials $38,000 $38,000 $0 0.0%
Travel $12,000 $12,000 $0 0.0%
Contractual Services $207,000 $207,000 $0 0.0%
Equipment $13,000 $13,000 $0 0.0%
Fringe benefits $1,223,000 $1,223,000 $0 0.0%
Indirect costs $92,000 $92,000 $0 0.0%
         
Pension Investment & Public Finance Pgm $3,219,000 $2,851,000 ($368,000) -11.4%
Personal Service $890,000 $331,000 ($559,000) -62.8%
Regular $890,000 $328,000 ($562,000) -63.1%
Temporary service $0 $3,000 $3,000 100.0%
Nonpersonal Service $489,000 $280,000 ($209,000) -42.7%
Supplies and materials $12,000 $12,000 $0 0.0%
Travel $21,000 $21,000 $0 0.0%
Contractual Services $423,000 $214,000 ($209,000) -49.4%
Equipment $33,000 $33,000 $0 0.0%
Internal Service Fund $1,840,000 $2,240,000 $400,000 21.7%
         
Banking Services (ISF) $1,840,000 $2,240,000 $400,000 21.7%
Nonpersonal Service $1,840,000 $2,240,000 $400,000 21.7%
Supplies and materials $1,230,000 $1,230,000 $0 0.0%
Contractual Services $610,000 $1,010,000 $400,000 65.6%
         
Fiducary Funds $8,162,000 $10,152,000 $1,990,000 24.4%
         
Pension Investment & Public Finance Prg (p.226) $8,162,000 $10,152,000 $1,990,000 24.4%
Personal Service $4,542,000 $5,842,000 $1,300,000 28.6%
Regular $4,524,000 $5,824,000 $1,300,000 28.7%
Temporary Service $18,000 $18,000 $0 0.0%
Nonpersonal Service $3,620,000 $4,310,000 $690,000 19.1%
Supplies and materials $25,000 $25,000 $0 0.0%
Travel $91,000 $91,000 $0 0.0%
Contractual Services $1,290,000 $1,290,000 $0 0.0%
Equipment $2,000 $2,000 $0 0.0%
Fringe benefits $2,079,000 $2,769,000 $690,000 33.2%
Indirect costs $133,000 $133,000 $0 0.0%
         
State and Local Accountability Pgm (Local Govt Svcs & Econ Dev Pgm) $23,469,000 $43,186,000 $19,717,000 84.0%
Personal Service $18,163,000 $36,511,000 $18,348,000 101.0%
Regular $17,971,000 $36,036,000 $18,065,000 100.5%
Temporary service $192,000 $275,000 $83,000 43.2%
Holiday/overtime compensation $0 $200,000 $200,000 100.0%
Nonpersonal Service $2,061,000 $6,130,000 $4,069,000 197.4%
Supplies and materials $91,000 $208,000 $117,000 128.6%
Travel $1,156,000 $2,971,000 $1,815,000 157.0%
Contractual Services $760,000 $2,637,000 $1,877,000 247.0%
Equipment $54,000 $314,000 $260,000 481.5%
Maintenance Undistributed $2,700,000 $0 ($2,700,000) -100.0%
Personal Service $2,350,000 $0 ($2,350,000) -100.0%
Regular $2,350,000 $0 ($2,350,000) -100.0%
Nonpersonal Service $350,000 $0 ($350,000) -100.0%
Supplies and materials $12,000 $0 ($12,000) -100.0%
Equipment $256,000 $0 ($256,000) -100.0%
Fringe benefits $82,000 $0 ($82,000) -100.0%
Special Revenue-Other $545,000 $545,000 $0 0.0%
         
Grants Acct - (SRO) $545,000 $545,000 $0 0.0%
Personal Service $300,000 $300,000 $0 0.0%
Regular $300,000 $300,000 $0 0.0%
Nonpersonal Service $245,000 $245,000 $0 0.0%
Contractual Services $245,000 $245,000 $0 0.0%
         
State Operations Program (State Services and Payroll and Revenue) $45,750,000 $52,813,000 $7,063,000 15.4%
Personal Service $34,182,000 $37,939,000 $3,757,000 11.0%
Regular $33,853,000 $36,522,000 $2,669,000 7.9%
Temporary service $329,000 $475,000 $146,000 44.4%
Holiday/overtime compensation $0 $942,000 $942,000 100.0%
Nonpersonal Service $11,568,000 $14,874,000 $3,306,000 28.6%
Supplies and materials $446,000 $458,000 $12,000 2.7%
Travel $633,000 $400,000 ($233,000) -36.8%
Contractual Services $4,334,000 $10,645,000 $6,311,000 145.6%
Equipment $6,155,000 $3,371,000 ($2,784,000) -45.2%
Special Revenue-Other $0 $99,000 $99,000 100.0%
Internal Service Fund $0 $150,000 $150,000 100.0%
         
Child Performers Protection Acct - (SRO) $0 $99,000 $99,000 100.0%
Personal Service $0 $65,000 $65,000 100.0%
Regular $0 $65,000 $65,000 100.0%
Nonpersonal Service $0 $34,000 $34,000 100.0%
Fringe benefits $0 $31,000 $31,000 100.0%
Indirect costs $0 $3,000 $3,000 100.0%
         
Statewide Training Acct (ISF) $0 $150,000 $150,000 100.0%
Nonpersonal Service $0 $150,000 $150,000 100.0%
Supplies and materials $0 $150,000 $150,000 100.0%
         
Payroll & Revenue Services (now in State Operations Pgm) $25,122,000 $0 ($25,122,000) -100.0%
Personal Service $16,196,000 $0 ($16,196,000) -100.0%
Regular $15,725,000 $0 ($15,725,000) -100.0%
Temporary service $471,000 $0 ($471,000) -100.0%
Nonpersonal Service $8,926,000 $0 ($8,926,000) -100.0%
Supplies and materials $265,000 $0 ($265,000) -100.0%
Travel $228,000 $0 ($228,000) -100.0%
Contractual Services $6,277,000 $0 ($6,277,000) -100.0%
Equipment $2,156,000 $0 ($2,156,000) -100.0%
         
Retirement Services Pgm (p.226) $80,338,000 $83,552,000 $3,214,000 4.0%
Fiduciary Funds $80,338,000 $83,552,000 $3,214,000 4.0%
         
Common Retirement Fund (Fiduciary) $80,338,000 $83,552,000 $3,214,000 4.0%
Personal Service $38,307,000 $39,382,000 $1,075,000 2.8%
Regular $38,148,000 $39,223,000 $1,075,000 2.8%
Temporary Service $159,000 $159,000 $0 0.0%
Nonpersonal Service $42,031,000 $44,170,000 $2,139,000 5.1%
Supplies and materials $669,000 $669,000 $0 0.0%
Travel $894,000 $894,000 $0 0.0%
Contractual Services $20,228,000 $21,796,000 $1,568,000 7.8%
Equipment $1,650,000 $1,650,000 $0 0.0%
Fringe benefits $17,295,000 $17,866,000 $571,000 3.3%
Indirect costs $1,295,000 $1,295,000 $0 0.0%