Department of Financial Services
Division of Accounting and Auditing
Form 030 - DFS
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
1.
Agency Name
Department of Financial Services (DFS)
2.
Contact Name
3.
Mike Alexander
4.
Contact Title
Contact E-mail
michael.alexander@myfloridacfo.com
5.
Bureau Chief
Contact Phone Number
413-2092
6.
Impact to agency if request is not approved:
Expenditure Reporting
Business System Impact - Names of System(s):
Other – Please explain:
7.
Impact Statement (Explanation of Impact to the agency include any concerns on timeline)
1. If given the opportunity, it would be better for DFS to implement the Object Code Standardization Project at
the beginning of a fiscal year. Because implementation is during the fiscal year, every order in My Florida
Market Place will have to be updated with the new codes after the transition. In addition, transactions using
current object codes will have to be changed to the new object codes before fiscal year close on June 30,
2015.
Response: The project plan includes completing the conversion activities in May of 2015. After discussions
with agencies and FLAIR staff the conversion activities needs to be completed before agencies begin year
end activities so yearend is not impacted.
2. DFS has added a request for new object codes related to Risk Management and OFR. The dollar impact for
each code is several million dollars. DFS will use a combination of OCA and external object codes to
provide further breakdown for each code requested. DFS is continuing to monitor the need for new object
codes and may have additional requests in the future. Please see the State Risk Management Program details
below.
Response: See #8 below for the response to each requested object code.
3. As state agencies receive special appropriation categories from the Legislature, additional state standard
object codes may need to be requested due to limitations with FLAIR expansion sets. DFS is requesting
two new object codes for OFR due to these limitations.
Response: Agencies will have the ability to request new statewide codes in the future. The Division of
Accounting and Auditing will create a form and a formal process to review all requests. Details on the
procedures will be posted to the division website when they are available.
4. DFS also noticed existing object codes used by different State Agencies with similar descriptions that were
mapped to different proposed object codes (i.e.: weapons/ammunition, law enforcement equipment, and
Sunpass). DFS will submit an email to ObjectCodeProject@myfloridacfo.com requesting that these codes
be mapped differently.
Response: DFS provided the initial crosswalk as a starting point for agency analysis. Agencies do not need
to submit the object code crosswalk files until the agency is ready to convert. More details on the
requirements of the crosswalk will be addressed in the next agency workshop and will be posted to the
project website.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
5. State Agencies will be submitting and receiving journal transfers throughout the transition period. Since
State Agencies will be transitioning to their new object codes at different times, how will State Agencies
know which benefiting object code to use (current codes vs. new proposed codes)?
Response: Standardized object codes will be loaded for all agencies at the same time. If an
expenditure object code is used on the benefitting transaction, it is recommended that if the sending
agency is entering an object they should use the new standardized object code. While both the new
and old code will process in FLAIR, it will reduce entries which must be converted or rejected if
the agency has converted.
6. DFS uses an external database (FLAIR@DFS) to query financial transactions recorded in FLAIR. This
database will need to be modified to allow Divisions the ability to query detail data and produce reports
(which is currently performed at the agency unique object level) at the Other Cost Accumulator, Project ID,
and External Object Code level.
DFS has identified three business systems that load payment detail directly to Central FLAIR. These files
will need to be modified to submit a different six digit object code to Departmental FLAIR. Impact is
expected to be minimal at this time.
Response: The project team acknowledges the standardization of object codes will require modifications to
your agency business systems. The current project schedule allows for 12 months for agencies to address
business system impacts with a final conversion date in May 2015.
Agencies have the option to use other FLAIR fields to track additional details for expenditures (OCA,
External Category, External Object, External GL, etc.). DFS will offer training related to reporting and the
use of these codes. DFS is also working to include these fields in commonly used FLAIR standard reports
and the FLAIR information warehouse. Agencies have ability to create variations of the standard reports
with different sort functionality for agency specific reporting needs.
7. The State Risk Management Program must track its loss payments in order to provide reports required by
law or contract to the Legislature, the Revenue Estimating Conference (REC), the CFO, other agencies,
private insurance carriers insuring the State, and others. Currently, loss payments are tracked in FLAIR
through the use of agency unique object codes (i.e. 6-digit codes). The new FLAIR object codes proposed
as part of the standardization project are insufficient for this purpose. The Division currently records
expenditures in both FLAIR and its Risk Management Information System, but the majority of data
provided to the Legislature, OPB and the Revenue Estimating Conference is reported from Central FLAIR.
With the Division embarking on having a great majority of its payments made directly through Central
FLAIR (so as to reduce the revolving account currently being used to fund our payments and then seek
reimbursement through FLAIR), the lack of detail in the proposed object codes will prevent the Division
from extracting and providing acceptable and accurate payment data without a significant amount of manual
work each time data is needed. This will place the Department at risk of not being able to provide accurate
payment data to the REC, Legislature, and others that rely on our data and use it to make budget and loss
prevention decisions. We believe it is important to discuss the object code changes with the REC and
Legislative staff that work with the Risk Management program to determine if they independently pull
information from FLAIR and what impact these changes will have on their reporting. Since this response is
due the last week of Legislative session, this is not an appropriate week to be requesting their attention on
this matter. We will follow-up with Legislative staff, OPB and other REC members in the next 2 weeks to
determine if they are impacted by these changes.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
Response: See #8 below for the response to each requested object code.
8. In order to efficiently report the Risk Management program’s loss payments, the Division is requesting a
breakout of object codes similar to the one found for Lottery under current charges and obligations
(4*****). These object codes will be used to record loss payments made in conjunction with the State’s
self-insurance program within the State Risk Management Trust Fund. No other reporting entity within the
state makes these types of payments.
Response: See #8 below for the response to each requested object code.
9. The Risk Management Program Impact Statement
The Risk Management Program operates as a high dollar volume, statewide program with its own Revenue
Estimating Conference. Loss payments from the State’s self-insurance program are reported to the REC by
the coverage types identified below. It is imperative that program expenditure data be managed in such a
way as to maintain the data previously provided to the REC.
The Division of Risk Management is currently working with the Divisions of Information Systems and
Accounting and Auditing to establish a load and post of loss payments into Central Accounting (Central).
Without the establishment of unique standard object codes for each loss payment type, data could be
adversely impacted by this initiative. The paid file received back from Central will contain the four-digit
object codes accepted by Central and not the six-digit object codes acceptable to Departmental Accounting.
The load and post initiative is part of the development and negotiations for the Division’s new risk
management information claims system.
In addition, we do not believe that the proposed list of new standard object codes provides a proper
classification for the Risk Management program’s loss payments. Loss payments represent losses incurred
by the State’s self-insurance program for workers’ compensation, general liability, federal civil rights, auto
liability and property claims. These payments would not be properly classified under the 41**** object
code series because they are not expenditures for the purchase of insurance. This object codes series will be
used by state agencies making insurance premium payments to the Division of Risk Management, which is
a different type of expenditure than the loss payments paid by the Division of Risk Management. In
addition, except for workers’ compensation, loss payments are not related to a benefits program, and
therefore, should not be classified under the 42**** (Benefits) object code series.
We are requesting a set of object codes be specifically established for items listed below. If they are not
already in use, we recommend using either the 47xx or 48xx object code series for this purpose and titling
the object code series as State Self-Insured Program Losses.
Response: See #8 below for the response to each requested object code.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
8. Request for Statewide Object Codes (if applicable)
Object Code
132731
132723
Short Title
Long Title
IT DP TRAN
INFO TECH
DEFERRED PMT
TRANSACTION-OFR
IT-REAL
CCD
Information Technology
Services REAL Project
Check Cashing Database
Approved
Y/N
Definition
Justification
IT services
Legislature requires activities to be
recorded using special
appropriation categories. Need
object code to track expenditures
estimated at $2.9 million
N
IT services
Legislature requires activities to be
recorded using special
appropriation categories. Need
object code to track expenditures
estimated at $1.3 million
N
IT services
FY 14/15 Legislature will require
activities to be recorded using
special an appropriation category.
An object code is needed to track
expenditures
N
Comments
Agency should be directed
to 132700 - Information
Technology Services General and consider using
a different field, such as
OCA, in FLAIR to track
expenditures.
Agency should be directed
to 132700 - Information
Technology Services General and consider using
a different field, such as
OCA, in FLAIR to track
expenditures.
Agency should be directed
to 132700 - Information
Technology Services General and consider using
a different field, such as
OCA, in FLAIR to track
expenditures.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
422000
422001
429030
RM-WC-MED
RM-WC-IND
RM-GL
Risk Management –
Workers’ Compensation
– Medical
Risk Management –
Workers’ Compensation
– Indemnity
Risk Management –
General Liability
Florida self-insurance
program worker’s
compensation
medical loss
payments.
With an estimated total of 60.8M,
No other reporting entity within
the state makes these types of
payments; as such, they should not
be combined with the insurance
premium payments made in the
41xx object codes, nor should they
be classified as benefits in the
42xx object codes.
Florida self-insurance
program worker’s
compensation
indemnity loss
payments.
With an estimated total of 37.3M,
No other reporting entity within
the state makes these types of
payments; as such, they should not
be combined with the insurance
premium payments made in the
41xx object codes, nor should they
be classified as benefits in the
42xx object codes.
Florida self-insurance
program general
liability loss
payments.
With an estimated total of 3.9M,
No other reporting entity within
the state makes these types of
payments; as such, they should not
be combined with the insurance
premium payments made in the
41xx object codes, nor should they
be classified as benefits in the
42xx object codes.
N
Agency should be directed
to 421004 Benefits/Claims - Workers
Compensation and
consider using a different
field in FLAIR to track
expenditures.
Y
Agency should be directed
to 421027 Benefits/Claims - Workers
Compensation - Indemnity
and consider using a
different field in FLAIR to
track expenditures.
Y
421022 - Benefits/Claims General Liability is
proposed.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
429040
429050
899032
RM-AL
RM-FCR
RM-PROP
Risk Management –
Auto Liability
Risk Management –
Federal Civil Rights
Risk Management –
Property
Florida self-insurance
program auto liability
loss payments.
With an estimated total of 2.7M,
No other reporting entity within
the state makes these types of
payments; as such, they should not
be combined with the insurance
premium payments made in the
41xx object codes, nor should they
be classified as benefits in the
42xx object codes.
Y
421023 - Benefits/Claims Automobile Liability is
proposed.
Florida self-insurance
program federal civil
rights loss payments.
With an estimated total of 6.9M,
No other reporting entity within
the state makes these types of
payments; as such, they should not
be combined with the insurance
premium payments made in the
41xx object codes, nor should they
be classified as benefits in the
42xx object codes.
Y
421024 - Benefits/Claims Civil
Rights/Discrimination is
proposed.
Florida self-insurance
program property loss
payments.
With an estimated total of 200K,
No other reporting entity within
the state makes these types of
payments; as such, they should not
be combined with the insurance
premium payments made in the
41xx object codes, nor should they
be classified as benefits in the
42xx object codes.
Y
421021 - Benefits/Claims Property is proposed.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
422005
RM-CMS
Risk Management –
CMS
Florida self-insurance
program CMS loss
payments.
No other reporting entity within
the state makes these types of
payments; as such, they should not
be combined with the insurance
premium payments made in the
41xx object codes, nor should they
be classified as benefits in the
42xx object codes.
N
Agency should be directed
to 421xxx Benefits/Claims
series.
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