California will delay the July release of key control functions planned for its massive financial and accounting system overhaul, the head of the project told lawmakers Thursday.
Department of FI$Cal director Miriam Barcellona Ingenito said the decision involving the treasurer and controller offices was made to ensure a quality and secure product.
“It’s better to get this system right initially than trying to come back and correct any data for the economy the size of ours after the fact,” Ingenito said during testimony before the Senate Budget Subcommittee 4 on State Administration and General Government.
FI$Cal is attempting to create a central financial platform for the state, streamlining 2,500 legacy financial systems — mainframes, databases and spreadsheets — used across more than 120 departments.
So far, 58 departments are using the system, and the state now conducts its procurement and budgeting with FI$Cal. The July rollout will bring another 33 state entities onto the system.
The delay of the control functions rests with the state’s confidence to ensure the integrity of California’s finances. For example, the state Controller oversees and maintains the book of record for state funds and appropriations, including cash validation to ensure sufficient funds, and approval processes for transactions that impact a fund’s budget. Meanwhile, the State Treasurer oversees banking functions such as deposit and reconciliation processes.
In addition, the state is custodian of local government resources. Because these offices involve the state’s finances, Ingenito told lawmakers, they must have the ability to fully test the system and be comfortable with it before it goes into production.
“If this was another IT system just dealing with just any other type of technology we could release the code when it was ready,” Ingenito said.
FI$Cal staff are also in discussions with the Department of Technology to bring in an outside validator to ensure the automated accounting is correct. That’s because the state has made several tweaks — adding extensions and customizing code — to the PeopleSoft program they chose.
Department of Technology director Amy Tong praised the FI$Cal team — which includes representatives from the treasurer and controller offices — for having realistic conversations about what could be achieved.
“I applaud both the project and the partners for making those tough calls,” Tong said.
Going forward, the FI$Cal team also intends to embrace more interactive testing, having both the consultant and project staff in the same room so that any questions that come up are addressed directly and immediately.
That kind of approach will help the staff gain confidence in the system, said George Lolas, chief operating officer at the State Controller’s Office.
“They want to see where it is landing on the general ledger and how is it landing on the general ledger and is it appropriate,” Lolas said of the finances. “And if they can see that, their confidence will increase.”
The 33 state entities that will begin using FI$Cal in July include:
Baldwin Hills Conservancy
California Coastal Commission
California Community Colleges Chancellor's Office
California Conservation Corps
California Horse Racing Board
Coachella Valley Mountains Conservancy
Department of Child Support Services
Department of Community Services and Development
Department of Conservation
Department of Consumer Affairs Regulatory Boards, Bureaus & Divisions (Accounting Only)
Department of Fish and Wildlife
Department of Food and Agriculture
Department of Insurance
Department of Managed Health Care
Department of Parks and Recreation
Energy Resources Conservation and Development Commission
Enhanced Tobacco Asset-Backed Bonds
Los Angeles State Building Authority
Military Department
Oakland State Building Authority
Office of Emergency Services
Office of Statewide Health Planning and Development
Peace Officer Standards and Training Commission
Public Employment Relations Board
Riverside County Public Financing Authority
Sacramento City Financing Authority
San Francisco State Building Authority
San Joaquin River Conservancy
School Facilities Aid Program (OPSC)
State Coastal Conservancy
State Public Works Board
Student Aid Commission
Wildlife Conservation Board
