• Summary of current service performance
  DOA is committed to excellence in all service areas. The major service areas within DOA include:
  
  General Accounting
  Compliance Assurance
  Payroll Operations
  Financial Reporting
  Finance & Administration
  Systems Development
  Systems Maintenance
  Computer Operations
  Payroll Service Bureau
  
  
  A description of the services provided by each of these service area follow.
  
  General Accounting
  The Department of Accounts (DOA) maintains the official accounts for the Commonwealth in the Commonwealth Accounting and Reporting System (CARS). Deposit and disbursement transactions are entered by agencies on-line during the workday and computer edited against authorized spending levels in nightly batch runs. A daily reconciliation of the state’s cash position in the books of the Comptroller to the books of the State Treasurer is performed. Various accounting reports are generated for use by agency and DOA staff to reconcile the accounts each day and identify and resolve any discrepancies that are identified. All disbursements of public funds must be processed through CARS. This service area also includes management of the state-aid-intercept program as well as the responsibilities that follow:
  
  Appropriation Control
  This service area involves the internal control procedures used by state government to enforce compliance with appropriation law. Following enactment of the Appropriation Act, two agencies become responsible for ensuring that appropriation law is followed. DPB authorizes the expenditure of appropriated funds through the allotment process, while DOA enforces this authorization through the automated edits and manual procedures that support the general ledger. This service area includes the preparation of year-end reconciliations that account for all expenditures as authorized in the Appropriation Act.
  
  Support Locality Revenue Deposits
  DOA has general oversight for deposit reconciliation for all sources of state revenue. However, a separate service involves the processing of deposits from local governments and the court system. Given the many different administrative environments found among local governments and the various state courts, DOA has assumed a higher level of processing responsibility for these deposits. Each month DOA handles an average of 4,500 local deposit certificates that account for between $80 million and $190 million in state receipts. Following a decentralization initiative begun in early 2003, entry of these deposit transactions into the central accounting system is largely executed by localities. A related responsibility is the monthly summarization and certification of recordation taxes, a portion of which are ultimately due to localities. This service also includes procedures for refunding forfeited bail bonds as ordered by a court.
  
  Interest Calculation
  Virginia statutory and appropriation law frequently allocates interest income earned by the Treasurer to specific non-general funds. This requires detailed calculations and record keeping necessary to allocate interest and demonstrate compliance with the related legal provisions.
  
  Debt Setoff Program
  Section 2.2-4806 of the Code authorizes the recovery of overdue debts owed the Commonwealth from suppliers for amounts to be paid for procured goods and services. This is a debt setoff program similar to that used by Tax to recover debts from state tax refunds. Since its inception in 1991 through FY 2007 this program has recovered in excess of $89.9 million in overdue debts owed the Commonwealth. The $89.9 million includes funds initially setoff but ultimately returned to the vendors because the debt was recovered by other means.
  
  Internal Control Compliance Quality Assurance
  This activity involves reviewing state agencies implementation of Agency Risk Management and Internal Control Standards (ARMICS). These Standards provide guidance for establishing and assessing agency internal controls in order to more effectively manage risk and maintain accountability. These Standards are an extension and clarification of existing requirements contained in the annual Comptroller's Financial Reporting Directives and the Commonwealth Accounting Policies and Procedures Topic 10305, Internal Control. This activity includes the review and testing of agency internal controls and development of reports and recommendations for improvement in the agency's implementation of ARMICS. Additionally, the results of the review are used to determine the extent of training needed by agency management and staff charged with ARMICS implementation.
  
  Higher Education Restructuring
  The Higher Education Restructuring Act has resulted in significant changes to the accounting treatment for all higher education institutions. DOA now performs complex analyses and reconciliations in determining general fund appropriation allocations. In addition, for Tier III schools, DOA must utilize spreadsheet data to build complex and voluminous accounting entries to appropriately reflect financial information in the Commonwealth Accounting and Reporting System.
  
  General Ledger Reconciliation Quality Assurance
  Agency reconciliation and internal control over the accuracy and completeness of financial transactions in the Commonwealth Accounting and Reporting System is critical to the integrity of the data in CARS. Given the Commonwealth’s highly decentralized financial organizational structure DOA analysts perform quality assurance reviews at agency fiscal offices to ensure the processes and procedures employed to validate this data is sufficient.
  
  New Financial Management System Initiative
  The Commonwealth is now in the preliminary stages of replacing its outdated financial management systems. The Accounting and Reporting unit will have to allocate experienced staff to ensure the successful design, development, and implementation of these systems.
  
  
  
  Loan, Line of Credit and Grant Coordination
  The Appropriation Act provides for intra-governmental loans and lines of credit from the Treasury to support state programs that are anticipating non-general funds from federal grants and contracts, bond sales, and similar situations. The Comptroller’s office is responsible for development of procedures for agencies to follow in applying and justifying such requests. DOA must administer these financial transactions including interest calculation, timing of repayment, and proper accounting and reporting. This service includes the processing of state grants to non-state agencies as authorized by the Appropriation Act and regulated by DPB.
  
  Financial Electronic Data Interchange (FEDI)
  FEDI increases administrative efficiency and reduces costs through the replacement of check payments with automated transactions. The program was implemented in 1994. The Commonwealth has over 44,500 trading partners accepting electronic payments including vendors, localities, state agencies/employees and grant recipients.
  
  Revenue Report
  A report is prepared monthly to report General Fund and Lottery revenue collections tracked against the latest official revenue forecast. Comparative data on the various revenue sources are provided reflecting actual revenues collected for the month and year-to-date compared to collections for the same period in the previous fiscal year. The percentage change in revenues for the month and year-to-date are also compared to the percentage change required by the revenue estimate.
  
  Distributions to Local Governments
  The State Comptroller is mandated by law to distribute certain funds to local governments. Such distributions include funds allocated to localities pursuant to the sales and use tax based upon school age population, a percentage of ABC profits based on total population, and recordation tax for which the total distribution is fixed but each locality’s share is based upon their collections compared to total collections.
  
  Personal Property Tax Relief Act (PPTRA)
  DOA disburses funds to local governments pursuant to the Personal Property Tax Relief Act.
  
  The Small Purchase Charge Card Program (SPCC) was initiated in order to reduce the volume and cost of accounts payable transactions. The program was implemented in January 1, 1995 and offers state agencies and institutions an alternative payment method when making small purchases under $5,000. A “gold card “ program also enables certain types of purchases to be charged up to $50,000. In 2009, over $344 million was purchased under this program and the Commonwealth received over $5 million in rebates from the charge card vendor.
  
  The travel charge card program is used by individuals who travel overnight more than two times a year to pay for official state travel expenses. Employees request and receive reimbursement for travel expenses as they complete travel, but must pay their travel charge card bills monthly. In 2009, over 5,500 travel charge cards were in use.
  
  
  
  
  Compliance Assurance
  This service area's organizational objective is to evaluate and report on agency financial accountability, compliance and internal control with the goal of assisting agencies in meeting their responsibilities for providing reliable and accurate financial information, for protecting Commonwealth resources and for supporting and enhancing the recognition of Virginia as the best managed state in the union. The following provide a description of various responsibilities in Compliance Assurance:
  
  State Agency Training
  This activity analyzes training needs surveys of state agency fiscal personnel and prepares an annual training plan for agency fiscal personnel. This activity conducts continuous training for agency fiscal management and staff keeping them abreast of changes in accounting standards and new reporting requirements. Additionally, this activity provides assistance and advice to state agency fiscal staff regarding accounting and compliance issues and participates in the procurement of professional training services.
  
  Decentralized Pre-audit
  Since 1992, DOA has been in the process of decentralizing the pre-audit function to individual agencies under a delegation of authority from the State Comptroller. This activity includes the identification of qualified agencies, negotiation of delegation agreements, and quality control reviews that monitor delegated pre-audit performance for compliance with published policies and procedures and advice to agencies of corrective measures that may be needed
  
  Division of the State Internal Auditor
  The Division of the State Internal Auditor provides an effective and efficient method for state employees to report fraud, waste, and abuse through the administration of the State Employee Fraud, Waste, and Abuse Hotline. DOA also assists in the establishment, development, and maintenance of agency Internal Audit Programs through training and technical assistance.
  
  Payroll Operations
  The State Payroll Operations service area administers the central payroll system (CIPPS) and ensures and facilitates the calculation of payroll and benefits for state employees by agency payroll personnel. Most state employees are served by CIPPS, although the largest state-supported colleges and universities operate independent payroll systems. In addition to payroll related services, this unit is responsible for the state’s charge card services (both purchasing and travel), compliance monitoring and reporting.
  
  Agencies may calculate several payrolls on a weekly, biweekly, semimonthly or monthly basis or “as needed” to cover special situations and demands. About 1,300 payroll staff at over 200 agencies and institutions are granted secure access to the central payroll system. The distribution of pay is either by direct deposit (about 93% of all salaried employees) or by payroll check.
  
  Employers are subject to severe financial penalties for inaccurate reporting of federal tax withholding. DOA deposits about $195 million each quarter on behalf of over 200 state agency employers. This activity includes the administration of the Federal Automated Deposit program (FAD), preparation and electronic filing of quarterly withholding reports (IRS Form 941), preparation of year end filings for over 120,000 W-2 forms, electronic reporting to the IRS and the Social Security Administration, and preparation and filing of adjusted forms as needed (Forms 941C, W-2C, and W-3C).
  
  Accounting and disbursements processing for benefits covers the deduction, reconciliation, disbursement and accounting for all amounts deducted from employee pay for both state benefit and supplemental deduction programs. The major benefit deductions include health care, Section 125 flexible spending accounts, and the Section 457 deferred compensation program. This service also includes the transmission of data to the VRS for retirement service credit recording, as well as the accounting of funds for employees who are eligible and have elected to participate in one of the three optional retirement programs offered in place of VRS. All deducted amounts are reconciled before the funds are disbursed to the appropriate receiving party. Deductions for other purposes are also supported including, CVC (charitable foundation contributions), U.S. Savings Bond purchases, child support orders, garnishment fees, dues for employee associations and premiums for supplemental insurance coverage and tax-deferred annuities.
  
  
  
  Financial Reporting
  The Virginia Constitution requires that accounts be maintained and reported based on when cash is received and paid out. This service area involves ongoing reporting of cash activity in the state accounts throughout the year. DOA reports cash activity in state accounts throughout the year for the Governor, Secretary of Finance and General Assembly include the monthly report on the cash position of the Commonwealth. A general fund preliminary annual report is prepared by August 15 as required by law. Financial reporting also has the following responsibilities:
  
  Producing the Comprehensive Annual Financial Report (CAFR) of the Commonwealth, which is audited by the Auditor of Public Accounts. Generally accepted accounting principals (GAAP) are promulgated by the Governmental Accounting Standards Board (GASB) and include the recognition of accrued assets and liabilities along with other non-cash accounting requirements. Planning, information gathering, and preparation of this report take approximately 6 1/2 months. In order to obtain all of the financial information necessary to prepare the CAFR, DOA issues the State Agency, Higher Education, and Component Unit Financial Statement Directives. These Directives provide guidance and assistance to State Agencies, Institutions of Higher Education, and Component units on the GAAP presentation of financial statement information.
  
  Summarizing and simplifying the presentation of information contained in the Commonwealth’s Comprehensive Annual Financial Report in a report often referred to as the “popular report.” This report is intended to better inform the public about the Commonwealth’s financial condition without excessive detail or the use of technical accounting terms. This service area also produces the Schedule of Expenditures of Federal Awards for inclusion in the Statewide Single Audit Report. The schedule is prepared in accordance with the requirements of OMB Federal Circular A-133.
  
  Financial Reporting Quality Assurance
  The Audited December 15 Comprehensive Annual Financial Report (CAFR) is prepared on the basis of generally accepted accounting principles (GAAP) and is used extensively by rating agencies, investment banks and others involved in the issuance and marketing of Commonwealth bonds. Virginia has produced a GAAP basis report that has received an unqualified audit opinion every year since 1986. This activity involves selecting state agencies for quality assurance reviews based on risk analysis. A review of the agency prepared financial reporting attachments is conducted and documented. A report is prepared detailing findings and recommendations for improvement in the process and is discussed with agency management. This activity improves the reliability of accounting data submitted for inclusion in the Comprehensive Annual Financial Report and helps to define agency training needs as it relates to financial reporting.
  
  The Code of Virginia (§2.2-4801 et seq., the Virginia Debt Collection Act) assigns DOA the responsibility to provide oversight reporting, and monitoring for the procedures used by state agencies to collect accounts receivable. Data on accounts receivable balances are compiled quarterly. These data are also used for the Comprehensive Annual Financial Report of the Commonwealth (CAFR) and the Report to the Citizens of the Commonwealth (PAFR).
  
  Preparing two indirect cost allocation plans. The first is prepared in accordance with OMB Circular A-87 and is used by agencies entitled to recover indirect costs from federal grants and contracts. The plan is audited and approved by the federal government on behalf of the Commonwealth and recovered over $216 million from federal sources in FY 2007. In addition, a second “full costing” plan is developed for DPB that supports the recovery of indirect costs borne by the General Fund on behalf of non-general funded agencies and programs. The Appropriation Act is used to recover these costs for the General Fund. In FY 2007, $7.1 million was recovered for the General Fund through this program.
  
  Accounting for all major land, building and equipment assets of the Commonwealth. Also included is the accounting for certain capital leases, which are reflected as assets in the Commonwealth financial statements. Typically about 45,000 fixed asset transactions are processed annually.
  
  
  
  Finance & Administration
  DOA’s Finance & Administration section provides payroll, invoice processing/accounts payable and accounting reconciliation services in support of the Departments of Accounts, Treasury, and Planning and Budget. DOA staff provides accounts payable services to the State Council of Higher Education in Virginia, and the Commonwealth Health Research Board. DOA staff provide accounts payable, accounting reconciliation and other fiscal services to the Virginia Racing Commission and the Board of Accountancy.
  
  DOA was among the first agencies to adopt an administrative service bureau that supports the routine technical aspects of administrative operations for more than one agency. To accomplish this, the DOA administrative services staff adopted a customer oriented approach to their work which emphasized quality attention to service needs regardless of whether the service was for DOA or another supported agency.
  
  In order to provide uniform accounting procedures for state government, DOA publishes the Commonwealth Accounting Policies and Procedures Manual (CAPP). The CAPP is a four volume set of prescribed accounting practices which is used by all agencies of state government. A publications unit manages the frequent revisions to the CAPP which are required by changes in state or federal law, generally accepted accounting principals, or administrative policy. Starting in FY 2003, the CAPP manual is no longer printed, but is still updated regularly and posted on the internet.
  
  DOA also publishes other documents, such as the Quarterly Report, that require high quality finishing and numerous copies to be distributed. In addition to printed items, the publishing unit utilizes the DOA Web Page as a means of making DOA publications electronically accessible. This technique significantly reduces the production and distribution costs for DOA, particularly for very lengthy publications such as the Comprehensive Annual Financial Report (CAFR).
  
  Administrative Services also processes Line of Duty claims for the Commonwealth. DOA is responsible for making lump sum payments to the beneficiaries of certain public safety personnel (e.g., police, fire, rescue) who die from work-related causes and an increasing number of monthly payments for health insurance for disabled public safety personnel injured in the line of duty and their spouses and dependents.
  
  Code § 2.2-814 requires the Comptroller be served for claims against the Commonwealth whenever the specific responsible state official cannot be determined.
  
  DOA’s public records unit is the official repository for all documents pertaining to cash deposit and disbursement transactions, unless that responsibility has been delegated by the Comptroller pursuant to the decentralization initiative described earlier. The public records unit has been steadily reduced in size as decentralization moved forward. However, a residual responsibility will remain for the storage of records pertaining to non-decentralized agencies, including those of elected officials, and for the records generated by DOA’s own central processing activity.
  
  
  
  Payroll Service Bureau
  DOA operates a payroll service bureau that supports agency level payroll, leave, and certain human resource and benefit data entry activities for over 15,000 employees in 50 agencies. In addition to performing the processing responsibilities for payroll, leave accounting and benefit administration, the Payroll Service Bureau also prepares payroll related reconciliations such as the monthly Healthcare reconciliation, the VRS reconciliation of retirement benefits, the administration of reciprocal taxing for non-Virginia state employees, the Quarterly and Annual Certifications of Taxable Wages and the Leave Liability Attachment to satisfy the financial reporting directive issued by DOA.
  
  To support certain Human Resource policies relevant to payroll, the Bureau prepares and enters the monthly Employee Position Report (EPR) information and maintains the 1,500 Hour Wage Reporting for the participating agencies’ wage employee rolls. It also prepares responses for any CIPPS/PMIS Exceptions that occur as a result of differences detected between PMIS and CIPPS.
  
  
  Systems Development, Maintenance, and Computer Operations
  DOA management recognizes the increasing value of information generation as a service. Integration between systems continues to increase, particularly between mainframe and desktop processing environments. This functional activity supports the operation of the statewide general ledger system (CARS), the statewide payroll system (CIPPS), and the statewide fixed asset system (FAACS), as well as other related statewide financial information systems.
  
  This area includes the ongoing planning needed to promote the coordinated development and integration of hardware, database systems, application programs, and communications within DOA and between DOA and its customers. All planning is done in conformance with the guidelines of the Virginia Information Technology Agency (VITA). Weekly management status meetings and the annual update to the agency information technology plan are used to support this activity.
  
  DOA transitioned to VITA in July, 2004. At that time the staff associated with the computer operations functions became employees of VITA. DOA continues to monitor the performance of these functions, in conjunction with VITA because they are vital to the operations of our major systems.
• Summary of current productivity
  The Department of Accounts (DOA) and the Office of the State Comptroller have been in existence since 1928. At its peak in the early 1990’s, DOA employed just fewer than 200 staff and had an operating budget of $13.3 million. DOA currently has 120 filled positions and an operating budget of $11 million for FY2010. In spite of the reduction in staff and budget DOA's productivity is impressive.
  
  CARS - The Commonwealth Accounting and Reporting System (general ledger system) processes in excess of nine million transactions annually.
  
  FAACS - The Fixed Asset Accounting Control System processes approximately 45,000 transactions annually.
  
  CIPPS - The Central Payroll System supports payments to an average of 87,000 employees each month and 120,000 employees throughout the year. Payline was implemented in July of 2001 - this is a web based system allows employees to access pay information online. As of June, 2009 77.4% of state employees participated in Payline. Of those, 97.2% of Payline participants have elected to eliminate the printed earnings notice.
  
  In 1995, DOA implemented the use of a purchase card program providing statewide enhanced efficiencies through the consolidation of vendor payments and the reduction in associated costs. The program has grown from $31 million in FY97 (158,000 checks avoided) to over $344 million in FY09 (over 647,000 checks were avoided).
  
  The payroll service bureau serves 50 agencies and produced over 15,000 W-2's for calendar year 2008.
  
  The administrative service bureau processed 5,386 vouchers in FY 2007. This is an increase of 58% over the number of vouchers processed in FY 2005.
  
  Despite the loss of positions from the early 1990's to the present ( 200 staff to 120 in FY 2009) DOA continues to satisfy mandated State & federal mandates. These include:
  
  Cash Management Improvement Act (CMIA) of 1990
  This federal law was imposed to bring equity to intergovernmental cash flows by establishing federal/state agreements regulating interest payment responsibilities. The movement of federal aid payments to the states results in “interest float” benefit to a state. Virginia must conduct detailed analyses to minimize the interest liability owed to the federal government each year.
  
  Indirect Cost
  The Appropriation Act, §4-2.03, requires that DOA develop procedures for a federal Statewide Indirect Cost Allocation Plan (SICAP) which is used to recover allowable indirect and overhead costs for agencies receiving federal grants and contracts. This plan must be developed and audited by the federal government before indirect costs can be recovered. Approval of the plan also allows the purchase of goods and services with federal grant funds from activities accounted for in the Commonwealth’s Internal Service Funds. The process of developing the federal SICAP, along with the companion “full costing” SICAP for general fund recoveries from non-general funded agencies and programs, requires a considerable commitment of resources.
  
  Statewide Single Audit Report
  OMB Circular A-133, “Audits of States, Local governments and Non-Profit Organizations” was revised in June 1997. This revision requires that the auditee prepare the “Schedule of Resolution of Prior Year Audit Findings” and the “Schedule of Expenditures of Federal Awards” sections of the Statewide Single Audit Report. The Department of Accounts prepares these statements for the Commonwealth as a whole, in the role of auditee.
  
  State Payroll Operations and Charge Card Administration
  Internal Revenue Service regulations dictate tax withholding requirements associated with wage payments and benefits. Compliance with these regulations is required by central and agency users in order to avoid payroll and tax errors that could result in significant IRS penalties. DOA administers the deposit and reporting of payroll taxes on behalf of over 200 state agencies.
  
  Financial Reporting
  This mandate is unusual in that a nonprofit corporation, the Governmental Accounting Standards Board (GASB) promulgates it, rather than a government. GASB is the public sector counterpart to the Financial Accounting Standards Board (FASB) which establishes generally accepted accounting principals for private sector entities. Virginia must comply with GASB standards in order to obtain an unqualified opinion on its audited financial statements. There are presently 56 GASB statements in effect. Complying with GASB standards is complex and resource intensive. However, the benefit of unqualified audit opinions and the Certificate of Excellence in Financial Reporting to the Commonwealth’s bond ratings and general standing in the national financial community is worth the investment.
  
  Finally, DOA is responsible under the Appropriation Act for distributing approximately $950 million to local governments each year as part of the administration of various shared-tax programs provided for in law. This program, referred to in the Appropriation Act as financial assistance to localities, is considered by DOA to be a functional activity.

• Summary of Major Initiatives and Related Progress
  Strengthen Oversight and Improve Internal Controls –
  This initiative began in the 2006-2008 biennium and continues into the 2010-2012 biennium. This initiative is intended to strengthen oversight, monitoring and training of agency accounting activities in response to Statement on Auditing Standard (SAS) 112, OMB Circular 123 and other financial reporting pronouncements. The new SAS standard effective fiscal year 2007 and beyond requires the auditor to communicate control deficiencies that are significant deficiencies or material weaknesses in internal control. The new standard is significant in that events previously regarded as minor and not reportable could, under SAS 112, be regarded as significant control deficiencies or material weaknesses. The Auditor of Public Accounts reports that if these standards were in place today, there is the potential for a material weakness in the internal controls over the preparation of the annual report.
  
  In response to SAS 112, OMB Circular A-123 and other pronouncements, DOA has created a new service area titled the Accounting and Internal Control Compliance Oversight group. The main responsibilities of this unit is to provide quality assurance related to financial reporting requirements, train agency fiscal staffs on accounting policies, and implement the ARMICS standard.
  
  Failure to proactively implement new agency financial reporting oversight, quality assurance and training functions could jeopardize the Commonwealth’s unqualified audit opinion. Virginia has earned and enjoyed twenty-one consecutive unqualified audit opinions. Although it is unlikely that one such qualification would jeopardize the Commonwealth’s AAA bond rating; several consecutive years of a qualified audit opinion would put the rating at risk. A single audit qualification would undoubtedly have a significant impact on the Commonwealth’s current ranking as the best financially managed state in the country.
  
  Other governmental accounting changes include federal legislation (Sarbanes/Oxley) and OMB policies (OMB Circ. A-123). These rules essentially require publicly traded corporations and federal agencies (and states through grant programs) to comply with the internal control standards established by the Committee of Sponsoring Organizations (COSO). COSO is comprised of professional organizations such as the AICPA and the Institute of Internal Auditors. COSO standards are fundamentally regarded as best practices for internal control. The successful implementation of these standards will greatly assist in mitigating the risks of reported control deficiencies dictated by SAS 112. These standards also provide reasonable assurance that the Commonwealth’s assets are protected, its laws and policies are complied with and its financial reporting data is fairly presently in a manner consistent with Generally Accepted Accounting Principles (GAAP). DOA has issued a directive titled “Agency Risk Management and Internal Control Standards (ARMICS)” as an important first step in bringing the Commonwealth into compliance with such internal control standards.
  
  PPEA ERP –
  DOA has invested significant resources on the core project team and steering committee of the Commonwealth’s PPEA Enterprise Resource Planning project (VEAP). With the assistance of the Enterprise Applications Public-Private Partnership Project Office, the Commonwealth has embarked on an ambitious comprehensive study of the Commonwealth’s business processes at the enterprise level, which will lead toward the replacement of all central administrative systems with commercial off-the-shelf software. Implementation of a new performance budgeting system (allowing Probud to be decommissioned) and a new financial management system (allowing CARS to be decommissioned) are being given the highest priority. Efforts are ongoing on several fronts including business process reengineering and change management, chart of accounts, and software requirements and RFP.
  
  Automated PMIS to CIPPS Batch Interface – Select information entered into PMIS will be captured in a batch file that will then be uploaded into CIPPS on a nightly basis to populate fields common to the two systems. This has been implemented in pilot agencies and plans are to complete the implementation of this project in FY2008.
  
  
  VITA Transition
  Significant effort and resources continues to be devoted to ensure a smooth transition with VITA. Issues include clear delineation and efficient operation of VITA IT "infrastructure" responsibilities and establishing a functional working relationship with the new IT Investment Board in context of DOA's statewide disbursement control and financial management system responsibilities.
  
  Improve eVA and SPCC Compatibility
  Strengthen the coordination and compatibility between the Small Purchase Charge Card program and eVA. Past coordination efforts have focused on vendor acceptance. Additional effort will focus on improving agency processes to leverage the benefits of both systems (e.g., agency "ghost" cards) to expand utilization and facilitate automated reconciliation and approval processing. However, significant resources will be required to successfully transition purchase card and travel card activities to the new charge card vendor.
  
  Document Management –
  DOA is researching possible archival solutions to manage document storage. This initiative is intended to improve security over documents and improve the efficiency with which these documents and related information are accessed. Types of documents to be considered includes permanently retained EDI security forms, HR files, line of duty records, and accounts payable documentation.
  
  Improving COOP –
  DOA plans to spend considerable effort in the next year to improve the Continuity of Business Operations Plan (COOP). Currently, the plan lacks some required documentation to be in compliance with VDEM’s template and there is a lack of necessary detail to ensure the success of the plan.
  
  Improve Small Purchase Charge Card Reconciliation -
  This initiative will enhance the cardholder reconciliation process to ease the burden on the cardholder as well as their supervisor. This improvement will also positively impact the fiscal office that reconciles the MasterCard bill each month. This initiative will allow cardholders to reconcile their bill online, automatically route it to their supervisor for review and to the fiscal office for final review. This new process should eliminate labor intensive processes including the preparation of a paper log currently prepared by cardholders and manually reviewed by their supervisors.
• Summary of Virginia's Ranking
  The Government Financial Officers Association has granted the Statewide CAFR the Certification for Excellence in Financial Reporting for the past 23 years. Virginia's PAFR (Popular Annual Financial Report) also won the award for the 23rd consecutive year.
  
  The Commonwealth has achieved an unqualified audit opinion for the last 23 years.
  
  The Commonwealth purchase card programs are among the largest in the country.
• Summary of Customer Trends and Coverage
  DOA’s customers are primarily those served by our major systems (i.e. state agencies or localities). In addition to our primary customers, DOA serves the citizens of the Commonwealth by preparing both the Comprehensive Annual Financial Report (CAFR) and the Virginia Financial Perspective, a report to the citizens of the Commonwealth otherwise known as the “popular report".

• Summary of Future Direction and Expectations
  Higher Education Restructuring
  The Higher Education Restructuring Act has resulted in significant changes to the accounting treatment for all higher education institutions. DOA now performs complex analyses and reconciliations in determining general fund appropriation allocations. In addition, for Tier III schools, DOA must utilize spreadsheet data to build complex and voluminous accounting entries to appropriately reflect financial information in the Commonwealth Accounting and Reporting System.
  
  New Financial Management System Initiative
  The Commonwealth is now in the preliminary stages of replacing its outdated financial management systems. The Accounting and Reporting unit will have to allocate experienced staff to ensure the successful design, development, and implementation of these systems.
  
  Implement the Enterprise Risk Management directive (ARMICS) providing state agencies with tools and information regarding overall risk management and reviewing efforts to ensure adequate internal controls exist in agencies.
• Summary of Potential Impediments to Achievement
  Summary of Potential Impediments to Achievement -
  Aging Workforce –
  DOA has over 22% of staff who are currently eligible for retirement and over 26.54% of staff eligible or over the age of 60. Transition planning is critical to ensure that critical skills are transferred and proper cross-training is continuously occurring.
  
  Adequate Supply of Accounting Personnel –
  Currently there is a high demand for qualified accounting personnel in the non-governmental community. This increases the difficulty of being able to find qualified staff for open positions. This impediment affects not only DOA as an agency but DOA as the responsible organization for establishing and ensuring compliance with accounting policy in the Commonwealth. If either DOA as an agency or other state agencies have difficulty securing qualified staff, the reliability of state financial information is at risk. In the long run, this may impact the CAFR and/or the bond rating of Virginia.
  
  New Accounting Policies
  The Governmental Accounting Standards Board (GASB) continues to issue new pronouncements, and there is a continuous challenge to appropriately evaluate and implement the new reporting requirements. As the statements continue to be technically challenging, additional stresses are being placed on the accounting professionals in DOA as well as in the Commonwealth as a whole to continue to produce more with fewer resources.
  
  Informat

• Description of the Agency's Products and/or Services:
  DOA maintains the primary central accounting, payroll and fixed asset systems for the Commonwealth. Through these systems DOA processes disbursements, payroll, and financial reports in accordance with State law. DOA promulgates accounting policy in the Commonwealth by issuing the Commonwealth Accounting Policies and Procedures manual (CAPP). DOA produces the Comprehensive Annual Financial Report (CAFR), a Preliminary Annual Financial Report, and a popular annual report which report on the financial condition of the Commonwealth.
• Factors Impacting Agency Products and/or Services:
  New Government Accounting Standards Board statements may be issued. These statements must be implemented in order for Virginia's CAFR to continue to receive and unqualified audit opinion.
• Anticipated Changes in Products or Services:
  We anticipate enhancements to our systems identified through analysis and enhancements which will be required to meet new Code or accounting requirements.

• Financial Overview:
  DOA is mostly funded with General Fund dollars. DOA's FY 2008 is $11 million. DOA has MEL of 119.
• Financial Breakdown:

  	FY 2009			FY 2010
  	General Fund	Nongeneral Fund		General Fund	Nongeneral Fund
  Base Budget	$11,850,195	$419,643		$11,894,919	$419,643
  Change To Base	$0	$0		$0	$0
  Agency Total	$11,850,195	$419,643		$11,894,919	$419,643

  This financial summary is computed from information entered in the service area plans.

• Overview
  DOA has a maximum employment level of 119. As of July, 2007, there were 114 filled positions and 5 vacant positions. DOA occasionally utilizes P-14 to supplement existing staff. As of July, 2007 there are 7 P-14's working at DOA. DOA utilizes approximately 15 role codes. DOA has 27 CPA's on staff and 16 information technology staff. All staff are located in Richmond in the Monroe Building.
• Human Resource Levels

  Effective Date	7/1/2007
  Total Authorized Position level	119
  Vacant Positions	-5
  Current Employment Level	114.0
  Non-Classified (Filled)	0
  Full-Time Classified (Filled)	114		breakout of Current Employment Level
  Part-Time Classified (Filled)	0
  Faculty (Filled)	0
  Wage	7
  Contract Employees	0
  Total Human Resource Level	121.0		= Current Employment Level + Wage and Contract Employees

• Factors Impacting HR
  DOA's workforce is aging. 12 employees have more than 30 years of service and are over 50 and therefore eligible to retire. Another 13 are within 5 years of joining the 30 year and over 50 group. In addition, there are 6 employees who are over 60 but do not have 30 years of service but may be leaving the workforce in the near future. This group near retirement makes up 30% of our workforce. Each area of the agency will have to monitor the plans for their staff and do succession planning well in advance of their departure.
  
  DOA is made up of many staff who are in professional accounting roles. Because of the increased emphasis on internal controls due to Sarbanes/Oxley in the private sector, it has become increasingly difficult to recruit experienced, professional accountants. In addition it is becoming increasingly difficult to retain staff because salaries in the non-governmental sector have increased and state salaries have not.
• Anticipated HR Changes
  DOA plans to fully utilize the authorized positions.

• Narrative overview of the current state of IT in the agency:
  During the strategic planning process the following issues were identified as potential areas of concern;
  
  
  While DOA’s cost for its IT infrastructure (hardware, software, network, telecommunications, production control , Operations) overall has hasn’t risen the desktop/server/hardware cost have significantly as a result of the VITA/NG transformation. DOA expects these costs to continue to rise, and these increased costs forces DOA to reduce expenditures for its programs and services that benefit the Commonwealth’s citizens. It is also anticipated that as agencies move their applications from the mainframe, those agencies remaining on the mainframe will incur higher charges per transaction.
  
  
  Currently VITA/NG have control of data access for the client/server environment. DOA, as owner of the data, needs to control and manage its data. Control of data and databases by a third-party increases the risk of illegal data access, data loss, and data breaches which could damage, harm, and discredit the agency.
  
  Even with security policies, procedures, and monitoring in place and being followed, there is still the possibility of a security breach. Security monitoring and controls management need to occur on a daily basis. DOA must address security within the on-going transformation changes that will occur within the state during the next few years. DOA needs to be in compliance with all VITA security standards and guidelines and to have a comprehensive IT security program.
  
  DOA needs to transition systems and applications from the mainframe environment to a client/server environment in order to offer more progressive and efficient self-service delivery services, in order to have more flexibility in system design and development, in order to mitigate the risk of mainframe rates rising significantly as more users go from the mainframe to client/server, and in order to have more opportunities for taking advantage of proven and emerging technology.
  
  Need to expand and improve the IT disaster recovery plan in order to reflect the transformation and in order to reduce downtime in the event of a disaster.
  
  DOA’s 20+ year-old mainframe applications and systems will be modernized and moved to a client/server environment. Some DOA’s IS staff, while proficient in COBOL and other mainframe technologies, must learn the client/server environment and associated technologies.
  
  Information systems staff need to be trained in client/server technologies. Once COBOL, mainframe-oriented IS staff are trained in client/server technologies, there will be a risk of losing staff because they will have more marketable and in-demand skills. In addition, as staff leave or retire, there is an agency loss of business intelligence and technical expertise.
  
  DOA needs to continue to grow and strengthen its project management expertise and to go toward the development of a Project Management Office.
  
  DOA needs to measure, analyze, improve, and control its IT processes and functions for continuous improvement. DOA needs to define and document the value IT brings to the agency and to set goals and measurable objectives that use technology as a tool for achieving its mission, vision and goals—as well as the mission and goals of the Commonwealth.
  
  DOA IT needs to devote more time in researching and exploring emerging technology in order to be able to adopt this technology as appropriate for delivering more and efficient/effective services.
  DOA has focused on providing agencies and employees a variety of secure, web-based systems to help agencies provide DOA required financial information and for employees to view/print personnel payroll information.
  
  DOA is in the process of web-enabling the Payroll Auditing Tool (PAT) which provides line agencies with the necessary tools to manage and certify payroll information.
  
  DOA is partnering with DHRM to partially integrate Personnel Information Management System (PMIS) with our CIPPS system to have both enterprise systems holding consistent information. DHRM is managing the administration and ownership of Employee Identification Numbers, which are now used as unique, required person identifiers in both PMIS and CIPPS. Also, PMIS is driving the edits and validation of mailing addresses based on the official standards adopted by USPS to make PMIS and CIPPS consistent in address information and format.
  
  DOA has emphasized improvement to the agency COOP plan to meet VDEM standards. In addition, additional resources will be necessary to ensure that all VITA security enhancements can be met.
  
  The 3-5 day system downtime (i.e., switch-over timeframe to back-up VITA site) currently embedded in the VITA disaster recovery and business continuity plan is inadequate and DOA is investigating better solutions to mitigate that delay.
  
  PPEA ERP –
  DOA has invested significant resources on the core project team and steering committee of the Commonwealth’s PPEA Enterprise Resource Planning project (VEAP). With the assistance of the Virginia Enterprise Applications Division of VITA, the Commonwealth has embarked on an ambitious comprehensive study of the Commonwealth’s business processes at the enterprise level, which will lead toward the replacement of all central administrative systems with commercial off-the-shelf software. Implementation of a new performance budgeting system (allowing Probud to be decommissioned) and a new financial management system (allowing CARS to be decommissioned) are being given the highest priority. Efforts are continuing on several fronts including business process reengineering and change management, chart of accounts, and software requirements and RFP.
• Narrative description of the factors impacting agency IT:
  Legislation is always a concern for information technology resources due to the potential system enhancements and timeframes required to meet the new requirements.
  
  • The transformation to VITA and the associated changes in personnel, platform requirements, architecture requirements, project management requirement, and various transformation activities, place a demand on agency IT personnel to ensure we are adhering to VITA standards, and aligning with VITA requirements.
  
  Simultaneous VITA transformation activities (Messaging, Active Directory, Network, Security, etc.) continue to impact the DOA IT staff's ability to serve internal and external customers, due to the multiple requests for information and tasks these efforts require. Increasing VITA/NG charges could have a financial impact on DOA operations and the ability to obtain and afford necessary IT goods and services to keep DOA operations going
  
  - PROCUREMENT AND NEEDS OF EQUIPMENT.
  VITA/NG procurement has been very detrimental to DOA services when any type of equipment has been ordered through the partnership; it may take 2 to 3 months to get the goods that were taking 2 to 3 weeks when DOA was responsible for the procurement
  
  - LACK OF SUCCESSION PLANNING AND STAFF BACKUP.
  The lack of adequate staffing levels engender two critical threats to the continuity of IT service provided DOA systems. First, due to inadequate staffing levels, there is little to no cross training to build staff-resource backup capacity in the event of an emergency. Second, due to inadequate staffing levels, there is little or no succession planning to ensure continuity of service due to the normal attrition.
  
  The VITA transformation phase is and will continue to consume resources to participate in assessments and project planning to move VITA forward. The consolidation efforts of this phase will cause an increased number of projects requiring agency resources which will impact other agency related projects.
• Describe any anticipated or desired changes to agency IT:
  - Appropriate funding to support the VITA/NG billing increase
  - Appropriate funding to support the training off staff
  - Adequate time delivery on the procurement through VITA/NG
  
  DOA plans to enhance the functionality of the data warehouse and to add the number of data sources being captured. Providing enhanced reporting for Stimulus spending.
  
  • VITA Transformation is also a focus of the agency. DOA is scheduled for final transformation in fiscal year 2009, but numerous activities are already underway or completed, including: Agency personnel transition, realignment of rolls and responsibilities, data center relocation, ITIL, Project Management oversight, and other VITA requirements and recommendations.
• IT Current Services:

  	Cost - Year 1		Cost - Year 2
  	General Fund	Non-general Fund	General Fund	Non-general Fund
  Projected FY2010 VITA Service Fees	$0	$0	$0	$0
  Changes (+/-) to VITA Infrastructure	$0	$0	$0	$0
  Estimated VITA Infrastruture	$0	$0	$0	$0
  Specialized Infrastructure	$0	$0	$0	$0
  Agency IT Staff	$0	$0	$0	$0
  Non-agency IT Staff	$0	$0	$0	$0
  Other Application Costs	$0	$0	$0	$0
  Agency IT Current Services	$0	$0	$0	$0

  Comments:
  [Nothing entered]
• Proposed IT Investments

  	Cost - Year 1		Cost - Year 2
  	General Fund	Non-general Fund	General Fund	Non-general Fund
  Major IT Projects	$0	$0	$0	$0
  Non-major IT Projects From $100,000 - $1 Milliona Total Cost	$0	$0	$0	$0
  Non-major IT Projects Below $100,000 Total Cost	$0	$0	$0	$0
  Major IT Procurements - Stand-alone	$0	$0	$0	$0
  Non-major IT Procurements - Stand-alone	$0	$0	$0	$0
  Total Proposed IT Investments	$0	$0	$0	$0

• Projected Total IT Budget

  	Cost - Year 1		Cost - Year 2
  	General Fund	Non-general Fund	General Fund	Non-general Fund
  Agency IT Current Services	$0	$0	$0	$0
  Total Proposed IT Investments	$0	$0	$0	$0
  Agency Projected Total IT Budget	$0	$0	$0	$0

• Current State of Capital Investments:
  [Nothing entered]
• Factors Impacting Capital Investments:
  [Nothing entered]
• Capital Investments Alignment:
  [Nothing entered]

DOA provides a uniform system of accounting, financial reporting and internal controls and provides sound financial information on which financial and budgeting decisions can be made. DOA management recognizes the increasing value of information generation as a service. Supporting our customers by operating the statewide general ledger system (CARS), the statewide payroll system (CIPPS), and the statewide fixed asset system (FAACS) is a key part of DOA's mission. Consistently maintaining a 95% up time is crucial to meeting the need of our agency customers. This goal aligns well with the agency mission statement because by maintaining the integrity of the accounting and payroll systems, the financial data is reliable and protected.

• Be recognized as the best-managed state in the nation.

Federal legislation called Sarbannes/Oxley was enacted for publically traded private companies in response to frauds that were committed by such firms as Enron. Sarbannes/Oxley requires a overall strengthening of internal controls to prevent such frauds. Although it does not directly apply to the governmental sector, it is considered to contain best practices. Management has always been responsible for implementing a strong set of internal controls and this goal intends to strengthen internal controls in the Commonwealth. DOA is enhancing vigilance over internal controls by: - Providing training to enhance knowledge of fiscal officers in Virginia. - Publishing and training agencies on an internal control directive that highlights the Virginia policy, risk assessment requirements and tools with which to assist agencies in carrying out internal control requirements. - Implementing a recovery audit program by hiring a firm that identifies duplicate or erroneous payments made by state agencies.

• Be recognized as the best-managed state in the nation.

The achievement of an unqualified opinion on the financial statements and the receipt of the GFOA Certificate of Excellence in Financial Reporting demonstrates excellence in financial reporting and enhances the integrity of the financial information of the Commonwealth. This supports the mission of the agency directly and is the outcome and culmination of all financial management activities the agency peforms.

• Be recognized as the best-managed state in the nation.

Manage planned increases in agency IT operating costs, control the delineation of VITA IT infrastructure responsibilities, establishing a functional governance and operating relationship with the IT Investment Board in context of DOA's statewide disbursement control and financial management system responsibilities.

• Be recognized as the best-managed state in the nation.

Enhance DOA's internal training, compensation, and recognition programs. This is intended to encourage retention of top performers and to provide the means to improve their performance further. Recognition of significant accomplishments is intended to reward and encourage employees. The ability to pay in accordance with market trends and with recognition of the skills required to accomplish the work will enhance the ability to retain staff.

• Be recognized as the best-managed state in the nation.
  Agency Comment: This goal is intended to retain top talent by enhancing DOA's internal training, compensation, and recognition programs.

DOA operates a payroll service bureau serving 37 agencies and an accounting/accounts payable service bureau serving 5 agencies in addition to agency 151. The purpose of the service bureaus is to provide more reliable and efficient processes with a high degree of professionalism while complying with state accounting and payroll policies and procedures. This goal aligns with the mission of the agency by enhancing the quality of accounting and payroll processing for participating agencies.

• Be recognized as the best-managed state in the nation.

This goal ensures compliance with federal and state regulations, policies and procedures for Commonwealth preparedness, as well as guidelines promulgated by the Assistant to the Governer of Commonwealth Preparedness, in collaboration with the Governor's Cabinet, the Commonwealth Preparedness Working Group, the Department of Planning and Budget and the Council on Virginia's Future. The goal supports achievement of the Commonwealth's statewide goal of protecting the public's safety and security, ensuring a fair and effective system of justice and providing a prepared response to emergencies and disasters of all kinds.

• We will be prepared to act in the interest of the citizens of the Commonwealth and its infrastructure during emergency situations by actively planning and training both as an agency and as individuals.
  Objective Strategies

  • The agency Emergency Coordination Officer will stay in continuous communicaiton with the Office of Commonwealth Preparedness and the Virginia Department of Emergency Management.

  Objective Measures

  • Agency Continuity of Operations Plan (COOP) Assessment Score
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Measure Baseline Value:

    Date:

    Measure Baseline Description: 2007 COOP Assessment Results (37% out of 100)

    Measure Target Value:

    Date:

    Measure Target Description: Minimum of 75% or, if at 75%, increase the average by 5% each year

    Data Source and Calculation: The COOP Assessment Review is a 24 component assessment tool that helps measure the viability of a COOP plan.

• Factors Impacting the Products and/or Services:
  The ability to attract and retain talented employees to handle the complex issues that DOA must address. The impact of new Code and accounting requirements on our system and business.
• Anticipated Changes to the Products and/or Services
  We anticipate enhancements to our systems identified through analysis and enhancements which will be required to meet new Code or accounting requirements.
• Listing of Products and/or Services
  • This area produces program code that operates the financial accounting systems in DOA.

• Comply with established deadlines to upgrade software and implement systems enhancements to meet legislative mandates.
  Objective Measures
  • Percent of time vendor established software upgrade deadlines are met.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, 2005

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2008-2010 biennium

• Track the percent of all general ledger anomalies and reconciliation discrepancies resolved within one month.

• Factors Impacting the Products and/or Services:
  The ability to attract and retain talented employees to handle the complex issues that DOA must address. The impact of new Code and accounting requirements on our system and business.
• Anticipated Changes to the Products and/or Services
  We anticipate enhancements to our systems identified through analysis and enhancements which will be required to meet new Code or accounting requirements.
• Listing of Products and/or Services
  • The product for this area is programming code.

• Comply with legislated deadlines for system upgrades.
  Objective Measures
  • Percent of time legislated deadlines for system upgrades are met.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, 2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2008-2010 biennium.

    Data Source and Calculation: The source of the measure is whether the programming changes were made by the deadline.

• Factors Impacting the Products and/or Services:
  The ability to attract and retain talented employees to handle the complex issues that DOA must address. The impact of new Code and accounting requirements on our system and business.
• Anticipated Changes to the Products and/or Services
  We anticipate enhancements to our systems identified through analysis and enhancements which will be required to meet new Code or accounting requirements.
• Listing of Products and/or Services
  • Statewide systems, CARS, CIPPS, FAACS

• Ensure that agency systems are available for use by DOA customers.
  Objective Measures
  • Percent of time that major systems are available.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, for the month of June 2005.

    Measure Target Value:

    95

    Date:

    6/30/2010

    Measure Target Description: 95%, 2008 - 2010 biennium.

    Data Source and Calculation: VITA is now providing this service and calculates this measure.

• Factors Impacting the Products and/or Services:
  The ability to attract and retain talented employees to handle the complex issues that DOA must address. The impact of new Code and accounting requirements on our system and business.
• Anticipated Changes to the Products and/or Services
  We anticipate enhancements to our systems identified through analysis and enhancements which will be required to meet new Code or accounting requirements.
• Listing of Products and/or Services
  • This service area provides all accounting reports for state agencies through the CARS system.

• Analyze and report general fund revenues.
  Objective Measures
  • Percent of time the general fund revenue report is prepared within two business days after the CARS monthly close.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, FY2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2008-2010 biennium.

    Data Source and Calculation: The general fund revenue report is posted on the Secretary of Finance web site on a monthly basis.

• Process legislatively mandated distributions to localities.
  Objective Measures
  • Percent of distributions to local governments processed by legislated time frames.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, FY2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2008-2010 biennium.

    Data Source and Calculation: General Accounting maintains the data for this measure.

• Ensure compliance with original legislative appropriations.
  Objective Measures
  • Percent of time original legislative appropriations are recorded and reconciled within 7 days of receipt from DPB.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, 2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2008-2010 biennium.

    Data Source and Calculation: General accounting maintains this data.

• Factors Impacting the Products and/or Services:
  The ability to attract and retain talented employees to handle the complex issues that DOA must address. The impact of new Code and accounting requirements on our system and business.
• Anticipated Changes to the Products and/or Services
  We anticipate enhancements to our systems identified through analysis and enhancements which will be required to meet new Code or accounting requirements.
• Listing of Products and/or Services
  • This service area produces audit reports when they review decentralized agencies disbursement records. These audit reports serve to inform agencies on where they deviated from state accounting policies & procedures and how to improve their future performance.

• Conduct risk-based compliance reviews to ensure compliance with state disbursement policies.
  Objective Measures
  • Percentage of agencies reviewed that are brought into compliance with state disbursement policies.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100% of agencies are considered in compliance.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: Ensure that all agencies reviewed are found to be or brought into compliance with state disbursement policies.

    Data Source and Calculation: Statistics related to the audits of decentralized agencies are gathered by the disbursements review unit.

• Administer the Fraud, Waste, and Abuse Hotline in accordance with Executive Order 24.
  Objective Measures
  • Percent of the hotline cases assigned within two business days.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    85

    Date:

    6/30/2006

    Measure Baseline Description: 85% of cases were assigned for the period ending 6/30/2006.

    Measure Target Value:

    95

    Date:

    6/30/2010

    Measure Target Description: 95%, 2008-2010 biennium.

    Data Source and Calculation: The Division of State Internal Audit maintains this data.

• We will enhance Commonwealth of Virginia internal controls by reconciling cash in CARS and cash in the Treasurer's system, and identifying and resolving general ledger anomalies and agency identified reconciliation discrepancies within one month.
  Objective Measures
  • Percent of all general ledger anomalies and reconciliation discrepancies resolved within one month.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, FY2005

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2008-2010 biennium.

    Data Source and Calculation: Agency exception registers.

  • Ensure that the number of recurring APA Internal Control Findings are 20 or below.
    Measure Class:

    Governor's Key

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Key Summary:

    Measure Baseline Value:

    Date:

    Measure Baseline Description: 25 recurring internal control findings reported on fiscal year 2005 audits.

    Measure Target Value:

    Date:

    Measure Target Description: 20 or fewer recurring internal control findings in subsequent fiscal years.

    Data Source and Calculation: This measure is calculated by reviewing published APA audit reports. This measure may be adjusted for certain complex findings whose corrective action may involve multiple agencies and institutions and entail multi-year efforts.

• Factors Impacting the Products and/or Services:
  The ability to attract and retain talented employees to handle the complex issues that DOA must address. The impact of new Code and accounting/payroll requirements on our system and business.
• Anticipated Changes to the Products and/or Services
  We anticipate enhancements to our systems identified through analysis and enhancements which will be required to meet new Code or accounting requirements.
• Listing of Products and/or Services
  • This area administers the charge card programs ensuring timely remittances to the card vendor and compliance with policies and procedures.
  • This area processes payrolls daily which results in the distribution of funds to state employees.
  • This area prepares the Report on Statewide Financial Management and Compliance.

• Maximize efficiency and minimize processing costs related to the Commonwealth Purchasing Card.
  Objective Measures
  • Percent that the Commonwealth procurement card charge volume increases.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    5

    Date:

    Measure Baseline Description: 5%, FY 2005.

    Measure Target Value:

    5

    Date:

    6/30/2010

    Measure Target Description: 5%, 2008-2010 biennium.

    Data Source and Calculation: The data is collected by the provider of the credit card service.

• We will process payroll requests timely.
  Objective Measures
  • Review and process all payrolls by the required certification date.
    Measure Class:

    Governor's Key

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Key Summary: Payroll Operations will continue to review certification requests daily to proactively identify certification errors which could prevent successful payroll processing. Additionally, a review of various payroll reports is performed each morning to aid in identification of any processing anomalies.

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, FY 2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2010-2012 biennium..

    Data Source and Calculation: Payroll Operations maintains a log of certification information each pay period which is compiled and stored by semi-monthlyu pay period.

• Meet quarterly IRS reporting requirements and payment deadlines.
  Objective Measures
  • Percent of quarterly IRS 941 reports transmitted in accordance with IRS deadlines.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, for entire year of 2005

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, each year in the 2008-2010 biennium.

    Data Source and Calculation: Payroll operations measures this.

• Process employee W-2's timely.
  Objective Measures
  • Percent of W-2's processed by the employee deadline of January 28.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, FY 2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, each year of the 2008-2010 biennium.

    Data Source and Calculation: Payroll operations maintains data.

• Factors Impacting the Products and/or Services:
  New Accounting Policies
  The Governmental Accounting Standards Board (GASB) continues to issue new pronouncements, and there is a continuous challenge to appropriately evaluate and implement the new reporting requirements. As the statements continue to be technically challenging, additional stresses are being placed on the accounting professionals in DOA as well as in the Commonwealth as a whole to continue to produce more with fewer resources.
• Anticipated Changes to the Products and/or Services
  [Nothing entered]
• Listing of Products and/or Services
  • This area produces the Comprehensive Annual Financial Report (CAFR) for the Commonwealth of Virginia.
  • This area produces the Preliminary Annual Report of the Commonwealth.
  • This area also produces the Popular Annual Financial Report (PAFR).

• We will produce a quality Comprehensive Annual Financial Report (CAFR).
  Objective Measures
  • Receive the Certificate of Excellence in Financial Reporting for the 23rd consecutive year.
    Measure Class:

    Governor's Key

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Key Summary:

    Measure Baseline Value:

    Date:

    Measure Baseline Description: Annually, the Virginia CAFR is submitted to GFOA to be considered for the Certificate of Excellence.

    Measure Target Value:

    24

    Date:

    6/30/2010

    Measure Target Description: FY 2008- 23; FY 2009 - 24.

    Data Source and Calculation: The unqualified opinion is rendered by APA upon audit of the CAFR and the Certificate of Excellence in Financial Reporting is provided by the Government Finance Officers of America (GFOA).

• Meet requirements of the Code of Virginia's Debt Collection Act.
  Objective Measures
  • Ensure that 100% of agencies are brought into compliance with the Debt Collection Act.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100 % annually, FY 2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100% annually, FY 2008-2010 biennium.

    Data Source and Calculation: Financial reporting maintains this data.

• Monitor agencies and institutions responses to APA audit reports.
  Objective Measures
  • Percentage of corrective action work plans (CAWS) that are submitted in accordance with policy.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100% of CAWS submitted/resolved in accordance with policy.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100% of CAWS submitted/resolved in accordance with policy.

    Data Source and Calculation: A review of the responses is published quarterly in the Comptroller's Report on Statewide Financial Management and Compliance.

• Develop an accurate Schedule of Expenditures of Federal Awards to ensure compliance with federal requirements.
  Objective Measures
  • Percentage of past five years that DOA produced an accurate Schedule of Expenditures of Federal Awards.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100 %.

    Data Source and Calculation: Financial reporting maintains this data.

• Ensure statewide compliance with the Prompt Payment Act.
  Objective Measures
  • Percentage of statewide vendor payments paid by the due date.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    98.9

    Date:

    6/30/2006

    Measure Baseline Description: Percent of payments made by the due date in FY 2005.

    Measure Target Value:

    98.5

    Date:

    6/30/2010

    Measure Target Description: 98.5% of payments made by the due date on average over the last 5 years.

    Data Source and Calculation: Financial Reporting maintains this data.

• Develop statewide Indirect Cost Allocation Plans.
  Objective Measures
  • Develop a Full-Costing Statewide Indirect Cost Allocation Plan and a Federal Indirect Cost Allocation plan in accordance with federal circular A-87.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    1

    Date:

    Measure Baseline Description: Annual, FY 2004.

    Measure Target Value:

    1

    Date:

    6/30/2010

    Measure Target Description: Annual, 2008 - 2010 biennium.

    Data Source and Calculation: Financial reporting maintains this data.

• Factors Impacting the Products and/or Services:
  [Nothing entered]
• Anticipated Changes to the Products and/or Services
  [Nothing entered]
• Listing of Products and/or Services
  [None entered for this Service Area]

• Factors Impacting the Products and/or Services:
  The ability to attract and retain talented employees to handle the complex issues that DOA must address.
  
  Line of Duty benefits are defined by the Code of Virginia, any changes to the Code will affect processing of claims/services offered.
  
  The number of agencies that utilize the benefits of the Administrative Service Bureau will affect the volume of transactions that have to be processed.
• Anticipated Changes to the Products and/or Services
  Services could be expanded if other agencies decide to utilize the Service Bureau.
• Listing of Products and/or Services
  • Admistrative Service Bureau
  • This area produces the Commonwealth Accounting Policies and Procedures (CAPP) manual that provides policy guidance to agencies of the Commonwealth.
  • This area process Line of Duty claim and insurance payments.

• Manage service bureau agencies in accordance with state policies.
  Objective Measures
  • Percent compliance with the Prompt Payment Act.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    99

    Date:

    Measure Baseline Description: 99%, 2005.

    Measure Target Value:

    95

    Date:

    6/30/2010

    Measure Target Description: Greater than 95%, 2008-2010 biennium.

    Data Source and Calculation: DOA produces the prompt pay report on a quarterly basis.

• To ensure that resources are used efficiently and programs are managed effectively, and in a manner consistent with applicable state and federal requirements.
  Objective Measures
  • Percent of Governor's Management Scorecard categories marked as meets expectations for agency.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: 100%, FY 2005.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: 100%, 2008-2010 biennium.

    Data Source and Calculation: Governor's Management Scorecard

• Factors Impacting the Products and/or Services:
  The number of agencies that utilize the benefits of the Payroll Service Bureau will affect the volume of transactions that have to be processed.
• Anticipated Changes to the Products and/or Services
  Services could be expanded if other agencies decide to utilize the Service Bureau.
• Listing of Products and/or Services
  • The product for this area is the timely payment of more than 13,400 employees each pay.

• Provide high quality payroll, fringe benefit and leave administration services for agencies participating in the payroll service bureau.
  Objective Measures
  • Achieve a satisfactory ranking on the overall customer service survey for each agency served.
    Measure Class:

    Other

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    Measure Baseline Description: Achieve a satisfactory customer service ranking from all participating agencies.

    Measure Target Value:

    100

    Date:

    6/30/2010

    Measure Target Description: Continue to receive a satisfactory service rating from all participating agencies.

    Data Source and Calculation: Survey is distributed to all participating agencies to determine the level of service being provided. The survey is done annually.