FI$Cal and CDT Respond: We'll Heed Auditor's Recommendations

Representatives of the Financial Information System for California (FI$Cal) and the California Department of Technology (CDT) have responded to a critical report issued Tuesday by state Auditor Elaine M. Howle. 

The auditor's report was the second in five months in which she notes that state agencies and departments overall have been slow to migrate their accounting, budgeting, cash management and procurement operations to FI$Cal, the $900 million-plus program designed to encompass those functions in a single unified financial management system. 

In her August 2018 report to the Legislature and the governor, Howle noted that some agencies' reluctance or inability to adopt the FI$Cal system could cost California millions of dollars, in a couple of ways:

— Individual departments' inability to finish financial reports in time for inclusion in the state's overall Comprehensive Annual Financial Report (CAFR) could make the CAFR either late to be released or require followup revisions. Either could hurt the state's credit rating, which in turn could shake the faith of bondholders, stakeholders and the public.

— Some agencies' failure to transition to the FI$Cal system could endanger their eligibility to receive "mission-critical federal funds." 

FI$Cal's Chief Deputy Director Neeraj Chauhan, who's also the project director, issued this statement after Howle's report was reported in Techwire:

"FI$Cal will continue to work closely with our partners and stakeholders to protect the state’s financial integrity. I value the Auditor’s input and will submit our annual report to the Legislature in February that will address the Auditor’s recommendations."

Chauhan then cited FI$Cal's accomplishments during 2018:

• 64 departments entered the FI$Cal system.
• State Treasurer’s Office (STO) control functionality went live, bringing in $2.05 trillion per year in cash management transactions.
• The initial launch of the integrated solution to bring on State Controller’s Office (SCO) functionality took place at the end of the year.
• In addition to deploying the largest departmental release to date, FI$Cal piloted Open FI$Cal, its financial transparency website, in September.
• Beginning January 2019, additional departments’ data will be added to the site. The transparency website offers a robust set of data with filters and reports for use by researchers, legislators, and the general public.
• FI$Cal is scheduled to implement remaining SCO control functionality beginning March 2019 and will complete the integrated solution in July 2019.

Chauhan adds:

"In addition to work performed in the scope of the project, FI$Cal released the following tools and services in 2018:

• Operational Insight Dashboard to analyze transactions and help with month-end-close tasks. 
• Improved online ticketing system to submit requests or report issues. 
• Automated role provisioning system that reduces wait times for role requests. 
• Chatbot that answers questions within the procurement module of the system.
• Dedicated engagement managers to provide in-person, home-office help following Go Live.
• User Support Labs – one-to-one sessions where end users bring real work and get help from subject matter experts." 

And CDT issued this statement through Alice Scott-Rowe, deputy director of communications: "The California Department of Technology takes the State Auditor's report very seriously and as a result has implemented additional measures to efficiently develop, validate, and publish accurate and timely monthly oversight reports. In addition to CDT’s continuous dialogue with FI$Cal leadership, partners, and stakeholders regarding project risks and issues, CDT staff will continue to leverage Steering Committee meetings to appropriately emphasize issues or risks."