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State Finance 101

By Jon Cunningham,2014-08-08 12:26
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State Finance 101

    State Finance 101

    By: The Oregon State Controller’s Division

    2004

    Section One: FINANCIAL ACCOUNTING IN OREGON

    Section Two: OREGON FINANCIAL MANAGEMENT STRUCTURES

    APPENDIX A: ESSENTIAL FINANCIAL MANAGEMENT STATUTES

     IN THE OREGON REVISED STATUTES

    APPENDIX B: DEFINITIONS OF GOVERNMENT FISCAL TERMS

SECTION ONE

STATE OF OREGON FINANCIAL ACCOUNTING STRUCTURE

INTEGRATED SYSTEMS

    Similar to large private sector enterprises, Oregon’s accounting structure is dependent upon stable and integrated financial management systems. Chart 1 shows some of the relationships between some of the major statewide systems used to keep track and report state government revenues and expenditures. For example, the state’s payroll system interacts with the state Personnel system to pay state employees and feed payroll/cost data to the R*Stars accounting

    system. R*Stars uses data from the Purchasing application and feeds revenue and spending data to the state budget system, and for statewide external financial reporting. The State Controller’s Division Datamart provides "desktop" access to the state’s financial and payroll

    databases to state accountants, budget analysts, payroll staff and state management. These systems need to be well planned, maintained, and replaced at regular intervals to improve data credibility, improve functionality, to keep current with ever changing technologies, and to ensure separate, but integrated systems, are kept in reasonable balance with each other. The term "Statewide Financial Management Systems (SFMS)" was first coined in a study of

    various financial systems in the early 1990’s. The terminology has been modified today to

    distinguish between the staff “Statewide Financial Management Services (SFMS)” and the

    system “Statewide Financial Management Application (SFMA)”. SFMA is comprised of both

    R*Stars, the accounting component and ADPICS, the purchasing component. Modern information management practices require that structural enterprise systems need to be integrated on a variety of levels to create efficiencies and maximize our technology investments.

    1

Chart 1

OREGON LEGISLATURE

    The legislature authorizes numerous bills that approve revenues and expenditures for state government agencies. One example of such a bill is an agency budget. The budget bill is a plan for income and spending to accomplish agency goals. It appropriates funds and limits

    expenditures. This plan, once approved by Budget and Management, and