For purposes of this chapter:
(a) “Accounting book of record” means the central accounts maintained by the Controller and used in the preparation of financial statements, including the annual comprehensive financial report issued pursuant to Section 12460.
(b) “Approved FISCal Project documents” means any Special Project Report approved by the Department of Technology, or its successor agency, for the FISCal, as may be amended, augmented, or changed by any subsequent approved Special Project Report or legislative action.
(c) “Cost or costs of the system” means all costs related
to the acquisition, design, development, installation, deployment, and other related costs of the system, including, but not limited to, software, hardware, licenses, upgrades, training, facilities, contractors, and staff.
(d) “Cost allocation plan” means the plan described in Section 11874.
(e) “Deferred departments” means departments and agencies that are extended a delayed implementation date pursuant to the department’s plan.
(f) “Department” means the Department of FISCal established pursuant to Section 11890.
(g) “Director” means the Director of FISCal appointed pursuant to Section 11894.
(h) “Exempt departments” means departments or agencies not required to implement FISCal but that will interface pursuant to the department’s plan.
(i) “FISCal” means the Financial Information System for California.
(j) “FISCal Consolidated Payment Fund” means the fund created pursuant to subdivision (a) of Section 11872.
(k) “FISCal Internal Services Fund” means the fund created pursuant to Section 11870.
(l) “Interface” means to communicate or interoperate with the system.
(m) “Partner agencies” means the Department of Finance, the Controller, the Department of General
Services, and the Treasurer.
(n) “Partner staff” means specified employees or contractors of the Department of Finance, the Controller’s office, the Department of General Services, or the Treasurer’s office who are assigned to work on FISCal activities such as the maintenance, operations, and support of the FISCal system and who are issued a department email account.
(o) “State departments and agencies” means all state offices, officers, departments, divisions, bureaus, boards, commissions, organizations, or agencies, claims against which are paid by warrants drawn by the Controller, and whose financial activities are reported in the annual financial statement of the state or are included in the annual Governor’s Budget, including, but not limited to, the California State
University, the University of California, the legislative branch, and the judicial branch.
(p) “System” means a single integrated financial management system for the state that encompasses the management of resources and dollars as described in the approved FISCal Project documents and includes the information required by Section 11862.
(Amended by Stats. 2023, Ch. 198, Sec. 12. (SB 152) Effective September 13, 2023.)
The Legislature intends that the system meet all of the following objectives:
(a) Replace the state’s aging legacy financial management systems and eliminate fragmented and diverse reporting by implementing standardized financial management processes and systems across all departments and control agencies. For purposes of this subdivision, “financial management” means accounting, budgeting, cash management, asset accounting, vendor management, and procurement.
(b) Increase competition by promoting business opportunities through the use of electronic bidding, online vendor interaction, and automated vendor functions.
(c) Maintain a central source for financial
management data to reduce the time and expense of vendors, departments, and agencies collecting, maintaining, and reconciling redundant data.
(d) Increase investment returns through timely and accurate monitoring of cash balances, cashflow forecasting, and timing of receipts and disbursements.
(e) Improve fiscal controls and support better decisionmaking by state managers and the Legislature by enhancing the quality, timeliness, consistency, and accessibility of financial management information through the use of powerful data access tools, standardized data, and financial management reports.
(f) Improve access and transparency of California’s financial management information allowing the implementation of increased auditing, compliance reporting, and fiscal accountability while sharing information between the
public, the Legislature, external stakeholders, state, federal, and local agencies.
(g) Automate manual processes, to the extent that automation is feasible, by providing the ability to electronically receive and submit financial management documents and data between agencies, departments, banks, vendors, and other government entities.
(h) Provide online access to financial management information resulting in a reduction of payment or approval inquiries, or both.
(i) Improve the state’s ability to preserve, access, and analyze historical financial management information to reduce the workload required to research and prepare this information.
(j) Enable the state to more quickly implement, track, and report on changes to financial management
processes and systems to accommodate new information such as statutory changes and performance information.
(k) Reduce the time, workload, and costs associated with capturing and projecting revenues, expenditures, and program needs for multiple years and scenarios, and for tracking, reporting, and responding to legislative actions.
(l) Track purchase volumes and costs by vendor and commodity code or service code to increase strategic sourcing opportunities, reduce purchase prices, and capture total state spending data.
(m) Reduce procurement cycle time by automating purchasing authority limits and approval dependencies, and easing access to goods and services available from existing sources, including, but not limited to, using leveraged procurement agreements.
(n) Streamline the accounts receivable collections process and allow for offset capability which will provide the ability for increased cash collection.
(o) Streamline the payment process and allow for faster vendor payments that will reduce late payment penalty fees paid by the state.
(p) Improve role-based security and workflow authorization by capturing near real-time data from the state’s human resources system of record.
(q) Implement a stable and secure information technology infrastructure.
(Amended by Stats. 2022, Ch. 569, Sec. 17. (AB 156) Effective September 27, 2022.)