The Ohio Office of Budget and Management (OBM) is a cabinet-level agency within the executive branch of the Ohio state government. The director of OBM sits on the Governor's cabinet as the Governor's chief financial officer.
The mission of OBM is to provide financial management and policy analysis to help ensure the responsible use of state resources. In fulfilling its mission, OBM coordinates, develops, and monitors agency operating and capital budgets, and reviews, processes, and reports financial transactions made by state agencies. OBM also assists the Governor and other state agencies by providing policy and management support relative to the state's fiscal activities.
— Timothy S. Keen OBM Director — Fred Church Deputy Director, Forecasting and Projections — Kurt Kauffman Deputy Director, Debt Management — Jim Kennedy Senior Deputy Director, Services and Operations — Rae Ann Estep Deputy Director, Operations Acting Deputy Directory, Ohio Shared Services — Cynthia Klatt State Chief Audit Executive — Christine Morrison Controlling Board President and Policy Advisor — Bridget Brubeck Deputy Director, State Accounting — John Charlton Deputy Director, Communications — Joy DeMarco Chief Legal Counsel — Andy Shifflette Legislative Liaison
Budget and Planning
The budget development program evaluates agencies' budget requests and prepares the Governor's operating and capital budget recommendations for submission to the Ohio legislature. Once budgets are passed, this program oversees agencies' allotment planning and monitors agencies' spending to ensure it is done in accordance with state law and does not exceed appropriations. This program also prepares economic forecasts and revenue estimates and issues a monthly financial report to the Governor.+ Read More...
- Prepares an executive budget proposal for all state agencies every two years: budget requests are solicited from agencies and evaluated. Budget recommendations are developed with the Governor for submission to the General Assembly, typically in late January of odd-numbered years.
- Prepares a capital budget for all state-financed capital improvements: capital budget requests are solicited from state agencies and evaluated, and with the concurrence of the Governor, a capital plan is submitted to the Ohio legislature each even-numbered year.
- Oversee the preparation of annual spending, or allotment, plans by state agencies: these plans show how agencies anticipate spending their annual appropriations during the state fiscal year, which runs from July 1 through June 30 of the following year.
- Estimate spending for state agencies and monitor agency spending during the fiscal year to ensure it is done in accordance with state law and does not exceed the amounts appropriated.
- Prepare biennial and ad hoc economic forecasts and revenue estimates for the Governor's executive budget. The forecasts include estimates of future values of key economic variables such as gross domestic product, unemployment, employment, and inflation.
- Prepare for the Governor a monthly report analyzing current economic trends, year-to-date state revenues and spending, and the general revenue fund balance.
First created in 1917, the Controlling Board provides legislative oversight over certain capital and operating expenditures by state agencies and has approval authority over various other state fiscal activities. The board meets approximately every two weeks to consider and vote on requests for action that are submitted by state agencies and universities.+ Read More...
The board consists of seven members: the Director of Budget and Management, or his or her designee (the President of the Board); the Chairman of the Finance and Appropriations Committee of the House of Representatives; the Chairman of the Finance and Financial Institutions Committee of the Senate; two members of the House appointed by the Speaker of the House, and two members of the Senate appointed by the President of the Senate.
- Releases of capital appropriations for construction-related projects.
- Grants waivers of competitive selection.
- Approves loans and grants by the Department of Development.
- Approves in limited circumstances the transfer of appropriation authority between line items within a fund and increases in appropriation authority.
- Approves certain grants/loans made by the Department of Development.
The Debt Management section of OBM is responsible for managing existing state debt and proposed issuances of new state debt as authorized under Section 126.11 of the Ohio Revised Code. For proposed sales of new state debt, OBM must review and approve each sale including the amount, security, source of payment, structure, and maturity schedule.+ Read More...
- Develops and distributes monthly a coordinated bond sale schedule for state bond issuers.
- With respect to the State's biennial operating budget, establishes and monitors debt service appropriation line items within various agency budgets to ensure that all necessary debt service payment authorizations and associated administrative expenses are included in each budget bill.
- With respect to the State's biennial capital budget, projects the impact of various amounts and types of capital appropriations on the State's debt service expenditures to ensure affordability within the operating budget and compliance with the Constitutional provision limiting annual GRF-backed debt service to five percent of annual GRF revenue plus net state lottery proceeds.
- Coordinates and presents the flow of information to bond rating agencies on the state's debt and overall financial position.
The electronic commerce programs are designed to empower state agencies, boards and commissions to procure goods and services in a more efficient manner. These programs encourage the streamlining of the acquisition process, while still having solid internal controls to monitor the process and payment of the purchased goods and services. Using these programs helps to promote a more efficient and effective state government in the way we conduct business. There are two facets to the electronic commerce initiative within the state: electronic data interchange (EDI) program and the payment card program.+ Read More...
Electronic data interchange (EDI) is the process of receiving electronic invoices from vendors and the transmission of payments and remittance information back to the vendors. The payment card program is designed to empower state employees by allowing them to use a credit card for small dollar purchases.
- Loads daily transaction files to the state's accounting system for the e-commerce programs
- Assists agencies, boards and commissions on all inquires and questions regarding the e-commerce programs
- Administers training class sessions for all new potential users of the e-commerce initiatives
- Communicates the benefits and advantages of using the e-commerce programs through the state
- Assists agencies, boards and commissions in providing spending and purchasing data when necessary
- Enforces statewide policies and procedures surrounding the purchasing process of goods and services
The Financial Reporting section of OBM is primarily responsible for publishing the State's official Comprehensive Annual Financial Report, as authorized under Section 126.21(A)(9) of the Ohio Revised Code. The annual report covers all funds of the State's reporting entity and includes basic financial statements and required supplementary information prepared in accordance with generally accepted accounting principles (GAAP).+ Read More...
- Publishes the Ohio Comprehensive Annual Financial Report (CAFR) and develops the State's GAAP-compliant financial reporting policies and procedures.
- Compiles the annual state of Ohio's Supplemental Schedule of Expenditures of Federal Awards (SEFA) and coordinates the State's federal Single Audit with the Ohio Auditor of State's Office.
- Coordinates with state agencies regarding their responsibility for properly managing federal funds under the State's agreement with the U.S. Treasury, as required under the Cash Management Improvement Act.
- Publishes the Detailed Appropriation Summary by Fund Report, which can be found on the Financial Reporting Page.
Financial Planning and Supervision Commissions
There are two types of Financial Planning and Supervision Commissions: those that are formed to help school districts and those that are created to assist units of local government. In both cases, a commission is created after the Auditor of State declares the entity to be in a state of fiscal emergency.+ Read More...
For school districts, the Financial Planning and Supervision Commission consists of five members: a representative of the State Superintendent; a representative of the Director of the Office of Budget and Management; a business person appointed by the Governor; a parent with a child in the district, who is appointed by the State Superintendent; and a business person appointed by the mayor or county auditor. By law, the commission chair is the representative of the State Superintendent.
Services/Activities include:Helps commission review or assume responsibility for school district's finances to ensure a balance budget. Helps commission make reductions in force to bring the school district's budget into balance.
Units of Local Government
For units of local government, including cities, villages, townships and counties, a seven-member commission is appointed. A representative of the Director of the Office of Budget and Management, a representative of the Treasurer of State and three locally nominated gubernatorial appointees serve on all local government Financial Planning and Supervision Commissions. For cities and villages, the mayor of the municipality and the presiding officer of the local legislative body are also Commission members. For townships, a member of the board of trustees and the county auditor serve on the Commission. For a county, the president of the board of commissioners and the county auditor are Commission members.
- Helps units of local government prepare plans to overcome financial difficulties.
- Provides Chairman for each financial planning commission.
The Office of Internal Audit ("OIA") is created to conduct internal audits within state agencies (see below) by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal controls, and governance processes. The mission of the OIA is to provide independent, objective assurance and consulting services designed to add value by providing quality auditing services that result in reduced costs, gains in operational efficiencies, strengthened internal controls, and improved practices and policies.+ Read More...
The purpose of the OIA is to assist state agency management and the Audit Committee in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed, and by promoting effective control at a reasonable cost.
The scope of work of OIA is to determine whether the state agency network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure:
- Risks are appropriately identified and managed.
- Interaction with various governance groups occurs as needed.
- Significant financial, managerial, and operating information is accurate, reliable, and timely.
- Employees' actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
- Resources are acquired economically, used efficiently, and adequately protected.
- Programs, plans, and objectives are achieved.
- Quality and continuous improvement are fostered in agency control processes.
- Significant legislative or regulatory issues impacting the agencies' fiscal operations are recognized and addressed appropriately.
- Adequate controls, including those related to data privacy and security, are incorporated within new systems and processes.
Opportunities for improving management control and state agency image may be identified during audits. They will be communicated to the appropriate level of management and/or audit committee.
Ohio Shared Services will streamline such processes as accounts payable, travel reimbursement, general ledger and intra-agency transfers. Each of these processes is governed by a service level agreement or SLA, essentially a two-way agreement of commitment for both the agency and Ohio Shared Services. Unlike basic centralization of services, the service level agreement makes sure that both the agency and Ohio Shared Services are meeting their mutually agreed upon goals. It promises to be a relationship of equals that consistently strives for improvement.
State Accounting monitors and controls both the spending and revenue collection activities of state agencies. Staff in this program also develop and maintain computer software accounting programs.+ Read More...
- The appropriations control and cash reconciliation section prepares and maintains appropriation dollar amounts in the accounting system and reconciles agency appropriations and expenditures to ensure the accuracy and integrity of the information in the accounting system. Monthly cash balance reconciliations are made with the Treasurer of State's Office.
- The processing and review section performs purchasing, encumbering and payment functions in the Ohio Administrative Knowledge System (OAKS). This section reviews accounting documents and enters approved documents into the accounting system. Staff also perform on-site audits of agency petty cash accounts and prepare payments of settlements and legal judgments rendered by the Court of Claims against state agencies.
- The SWCAP section determines the value of services provided by agencies that provide services benefiting all state agencies and divides the cost among agencies. The resulting cost allocation plan also includes rental rates for state-owned facilities and for facilities financed by the Ohio Building Authority. The program prepares and submits the state's SWCAP annually to the federal government.