Article 2 - Ongoing Maintenance and Operation of FISCal

California Government Code — §§ 11856-11868

Sections (6)

Added by Stats. 2022, Ch. 569, Sec. 18. (AB 156) Effective September 27, 2022.

(a)Notwithstanding any other law, and to the extent feasible as determined by the department in conjunction with the Department of Finance, state departments and agencies shall use the system.

(b)The system’s project objectives, as identified in Sections 11854 and 11862, for purposes of reporting pursuant to Section 11546, are determined to be complete as of July 1, 2022. Therefore, no further reporting pursuant to Section 11546 on system development, implementation, enhancement, maintenance and operations, security, or related workload is required.

(c)The department shall create and maintain a plan or roadmap pursuant to Section 11865.

§ 11860

Amended by Stats. 2023, Ch. 45, Sec. 20. (AB 127) Effective July 10, 2023.

(a)To serve the best interest of the state by optimizing the financial business management of the state, the partner agencies shall collaboratively develop enhancements to the system, utilize the system, and assist the department to maintain the system. This effort shall ensure best business practices by embracing opportunities to reengineer the state’s business processes and shall encompass the management of resources and funds in the areas of budgeting, accounting, procurement, cash management, financial management, financial reporting, cost accounting, asset accounting, project accounting, and grant accounting.

(b)State departments and agencies shall use the system, or, upon approval from the department, a department or agency may interface its departmental

system with the system. The system is intended to replace any existing central or departmental systems duplicative of the functionality of the system.

(c)To facilitate the integration of the state’s accounting book of record by July 1, 2026, to the extent feasible pursuant to the objectives stated in Section 11854, the Controller shall do both of the following:

(1)On or before December 31, 2023, provide the necessary system and interface requirements to the department to perform the accounting functions and produce the financial reports identified in Article 4

(commencing with Section 12460) of Chapter 5 of Part 2 of Division 3 of Title 2.

(2)On or before

December 31, 2023, with FISCal, evaluate and develop a timeline to complete the original scope for the Controller’s accounting book of record functionality. The timeline shall be based on an analysis of the ability to onboard, complete workload, and consider resource constraints. The Controller shall report the findings of this evaluation and updated timeline to the fiscal committees of both houses at the time of budget hearings.

§ 11862

Amended by Stats. 2022, Ch. 569, Sec. 21. (AB 156) Effective September 27, 2022.

(a)In addition to the requirements set forth in the approved FISCal project documents, the system shall include a state transparency component that allows the public to have access to information regarding General Fund, special fund, federal fund, and other nongovernmental cost fund expenditure data using an internet website.

(b)This section does not require the disclosure of information deemed confidential or otherwise exempt from disclosure under state or federal law.

§ 11864

Repealed and added by Stats. 2022, Ch. 569, Sec. 23. (AB 156) Effective September 27, 2022. Conditionally inoperative on or before January 1, 2034, as prescribed by its own conditions.

(a)On or before October 31, 2023, and annually thereafter on or before October 31, the department shall submit a report to the Legislature, pursuant to Section 9795, that includes all of the following:

(1)An executive summary and overview of the system’s status.

(2)An overview of the system’s history.

(3)Significant events of the system within the current reporting period.

(4)An overview of change management activities and stakeholder engagement for any new departments onboarding to the system.

(5)A discussion of lessons learned and best practices that will be incorporated into future changes in the management of the system.

(6)A description of any significant software customization, including the reason for the customization, if any customization was granted.

(7)The date on which state departments and agencies submit year-end reports to the Controller.

(8)The number of trainings held at the department and a list of state departments and agencies participating in these trainings.

(9)The number and length of unplanned outages that occurred during normal business hours.

(10)The number of requests for changes to the system by entities that reported concerns with

using the system to meet federal requirements and descriptions of the department’s efforts to resolve those concerns.

(11)The recommendations from evaluations performed pursuant to subdivisions (a) and (c) of Section 11868.

(b)(1) Commencing October 31, 2023, and biennially thereafter, the department shall report on the status of planning for roadmap activities, as described in Section 11865, including any expenditures made with funds provided by the Department of Finance and the Legislature to support “roadmap” activities pursuant to items 8880-001-0001 and 8880-001-9740 of the annual Budget Act.

(2)This section shall remain operative until the completion of roadmap activities, as described in Section 11865, or until January 1, 2034, whichever is

earlier.

§ 11865

Added by Stats. 2022, Ch. 569, Sec. 24. (AB 156) Effective September 27, 2022.

The department shall complete all of the following roadmap activities on or before July 1, 2032, unless otherwise specified:

(a)Ensure the system is technically optimized and secure based on infrastructure, platform, and software industry best practices, whether on-premise technologies, cloud-hosted technologies, or a combination thereof are used.

(b)Onboard the remaining deferred departments by July 1, 2032, and be sufficiently staffed to provide ongoing support and assistance to end users.

(c)Ensure the integrity and security of the state’s financial data.

(d)Support the

transition of the state’s accounting book of record from the Controller’s legacy systems to the system pursuant to subdivision (c) of Section 11860, including validation work related to the annual comprehensive financial report issued pursuant to Section 12460.

(e)Work with partner agencies to identify and implement additional products, interfaces, and add-ons to the system to enhance business transactions.

(f)Continue to enhance, upgrade, and manage the system to ensure efficient and relevant alignment with the state’s financial management processes.

§ 11868

Added by Stats. 2022, Ch. 569, Sec. 25. (AB 156) Effective September 27, 2022.

(a)In its independent monitoring of the system, the California State Auditor’s Office shall do, but is not limited to doing, both of the following:

(1)(A) Monitor and report annually to the Legislature, pursuant to Section 9795, regarding the Controller’s progress toward transitioning the state’s accounting book of record from the legacy system utilized by the Controller to the system pursuant to subdivision (c) of Section 11860.

(B)This paragraph shall apply only until the successful transition of the accounting book of record to the system.

(2)(A) Monitor and report

annually to the Legislature, pursuant to Section 9795, regarding the department’s completion of the activities required by Section 11865, with an emphasis on the activities described in subdivisions (c) and (e) of Section 11865 as top priorities.

(B)This paragraph shall apply only until the successful completion of the roadmap activities described in Section 11865.

(b)The department may contract for quality assurance services to monitor system-related workload, as needed or as determined to be appropriate by the department.

(c)The department shall contract for an annual assessment of the system that determines the ease of use of the system by end users, including control agencies, relative to statutory and policy requirements for accounting, cash management, procurement, and budgeting. The assessment shall

include recommendations to the department on process, policy, and system improvements including, but not limited to, changes that would assist departments in submitting timely annual financial statements.