CUARTA GENERACION DE CONCESIONES

REQUESTING ROLLFORWARD OF APPROPRIATION AUTHORITY

FROM FY2015 TO FY2016

By state law, unexpended annual appropriations expire at the end of each fiscal year and do not carry over to a subsequent fiscal year, unless otherwise authorized by statute. The State Controller may approve the rollforward of unexpended annual appropriations as provided by State of Colorado Fiscal Rule 7-3

• The appropriated funds have been legally committed by purchase order or contract and there are extenuating circumstances that warrant carryover of the remaining appropriation,

under the following circumstances:

• There is express legislative intent that allows the rollforward of spending authority. The State Controller cannot rollforward an appropriation based on implied legislative intent.

• The appropriated funds have been legally committed by purchase order or contract with Colorado Correctional Industries (CCI) and delivery is reasonably anticipated within 60 days of fiscal year- end.

• The appropriation is from the capital construction fund.

Due to continuing demands on resources, as communicated to department controllers in Alert #201, agencies are encouraged to seek legislative approval through the addition of letternotes for any general- funded requests, including purchases from CCI.

The State Controller cannot rollforward an appropriation based on implied legislative intent. 2.1 Rollforward of Appropriated General and Cash Funds

A rollforward of an unexpended appropriation may arise out of timing problems associated with completing a legislatively authorized project within a single fiscal year. Rollforward requests are required to extend appropriations funded from general, cash, or reappropriated fund sources beyond the initial appropriation year. A rollforward request will not be considered when it represents an effort to capture unexpended balances for general operations or when an adequate appropriation is available in the next fiscal year for the same purpose. Each rollforward request must include both adequate justification and documentation of the issue(s) that prevented the expenditure of funds within the current year. Final approval of general-funded rollforwards requires that adequate General Purpose Revenue Fund balance is available to support the request. A rollforward request is not required for custodial funds (e.g., federal funds), unless there is a requirement that the funds be appropriated. Although a request is not required for custodial/statutory carryforwards, a budget document must be completed by mid-August per the open/close calendar for fund balances in funds 1000, and 4610. Additionally, a JV1STND document using Event Type XG30 must be completed, which flags the usage fund balance. Otherwise, balances will be swept in the reversion process. Note that a rollforward request is required for encumbered Tobacco Settlement money that is allowed per the statute creating the program.

2.2 Procedures for Appropriated General and Cash Fund Rollforward Requests

Coding for rollforwards will not require specific blocks of coding for each department. The OSC as set aside funding source codes 910 – 929 as the last three digits of the Appropriation Types, to distinguish the rollforward Appropriation Type from other Appropriation Types.

Complete the rollforward request form found on the OSC’s website at

accompanied by proper and complete

Chapter 3: Section 2 Page 40 numbering convention to be used is the four-character, alpha department code followed by sequential numbers (i.e., AAAA1, AAAA2, AAAA3, etc.). The OSC will use these numbers throughout the process. Rollforward request must be submitted to your OSC Consultant no later than the close of period 12.

Separate rollforward request forms must be submitted for each appropriation code. The form requires the listing of funding sources by general exempt, cash funds, or reappropriated. Only federal funds subject to appropriation per the Long Bill headnotes are included on this form; other federal funds and custodial funds are not included on these forms.

Proper documentation is necessary to explain and support the request. Proper documentation may come in various forms such as a letter explaining that an item on a purchase order, which under normal circumstances would have been delivered prior to June 30, has not been received. Please include a copy of the original encumbrance document with this type of request. If the justification for the rollforward is express legislative intent, please include a copy of the statute or Long Bill letter note or footnote that allows the funds to be rolled forward.

Separate appropriation codes need to be established for each rollforward request. Send an email request to Note that the Appropriation Category on all roll-forward appropriations is N for non- appropriated. Submit a zero-dollar BGA document prior to the purchase order roll process mid- July in order to have purchase orders or contract encumbrances rolled forward into the new fiscal year. The increase in spending authority should always be non appropriated general exempt or cash. The following table provides agencies with guidance on how general and cash funds should be rolled forward based on the original appropriation type, the fund in question, and the earnings status of the amount to be rolled at year-end.

Original Appropriation Type Fund 1000 Roll As

Funds 1010 - 9999 Roll As

General Funds General Funds Exempt N/A

Cash/Reappropriated Funds Already Earned

Cash Funds / Nonappropriated

Cash Funds / Nonappropriated Cash Funds Not Yet Earned Cash Funds /

Nonappropriated

Cash Funds / Nonappropriated Reappropriated Funds Not Yet

Earned

Cash Funds / Nonappropriated

Cash Funds / Nonappropriated  The request should be attached to a zero-dollar budget document with a "5" spending

authority indicator and use the budget line coding of the line from which a rollforward is requested. The approval of the zero-dollar budget document serves as approval of the request. The department will be notified if the document is not approved.

 Departments requesting reconsideration of denied requests should submit any additional justification and or documentation directly to the State Controller.

To avoid delay in processing any rollforward request, the request forms must be properly completed and properly documented in accordance with the above instructions. Rollforward requests with insufficient documentation or justification will be disapproved. It is not necessary to round up on your rollforward request, decimals are permittable. Rollforward requests must be received at the OSC no later than period 12 close. The OSC anticipates processing the rollforward budget requests prior to Period 1 close. If you have questions please call your OSC Consultant.

To record the rollforward in FY2016, complete a BGA document with an Event Type of BG04 – Carryforward and an SAI of 5 for Rollforwards in the rollforward budget coding. Attach a copy

of the approved carryforward to the BGA documents. The BGA document should be in the amount of the approved carryforward or less if the actual amount remaining is less than the estimate. If the actual amount of the funds to carryforward is more than the approved amount, a new carryforward request may be required. If the basis of the unexpended appropriation is fund balance, department will need to submit a JV1STND with event type XG30. Failure to record a JV1STND for previously earned revenues (RSRC 9523) in Fund 1000 could result in the unintended reversion of the spending authority, leaving the rollforward appropriation unfunded. In certain instances a department may have multiple-year contracts extending beyond the current fiscal year that will require the rollforward of the current year appropriation. This includes late contracts that require an amendment to extend the performance period beyond June 30 into the next fiscal year. In these situations it is critical that both the contract/amendment and the rollforward be evaluated and approved at the same time. Therefore, if a department submits a contract to the OSC that will require a rollforward of current year appropriation, the department must also submit a completed rollforward request along with the contract. The OSC Central Contract Unit (CCU) will then work with the related OSC Consultant and the State Controller to evaluate the contract and the rollforward request together.

It is important to note that if the OSC approves a multiple-year contract it is assumed that any funding beyond June 30 of the current year will come from appropriations in the subsequent fiscal year. Contract provisions, unexpected circumstances, and other mitigating factors will be evaluated as part of the approval process and all such items should be clearly communicated to the OSC with the contract and the rollforward request. Communication on these types of contracts should occur as soon as possible after they are identified by the department.

When state departments route contracts to the central approvers that are contingent upon an approved spending authority rollforward they should attach a copy of the rollforward request. This will ensure that they are delivered to the OSC for review by the CCU and the Consultant in a timely manner.

In addition, the OSC CCU may identify contracts submitted within 60 days of June 30 that they believe may need a rollforward. In these instances, the department will be contacted to determine whether a spending authority problem exists for the current fiscal year or whether a rollforward is needed for the following year.

2.3 Rollforwards from the Reappropriated Column of the Long Bill

When a department has a rollforward request that is from the reappropriated column, both state departments – the one spending the funds and the one providing the funding - must submit a rollforward request.

Chapter 3: Section 3 Page 42

CHAPTER 3: SECTION 3 (LAST UPDATED: JUNE 2015)