Title
Support authorizing the Auditor-Controller to amend the FY 2018-19 Adopted Budget, increasing appropriations by $5,340,441 in Other Financing Uses, 1050-8038-CAO017-7614, where the financing source is the release of $2,184,878 from the Capital Projects Assignment (BSA 001-3123) and $3,155,563 from the NGEN Radio Assignment (BSA 001-3122) to fund a $5,340,441 cash deficit in Resource Planning Fund 478.
Report
RECOMMENDATION:
It is recommended that the Budget Committee to support authorizing the Auditor-Controller to amend the FY 2018-19 Adopted Budget, increasing appropriations by $5,340,441 in Other Financing Uses, 1050-8038-CAO017-7614, where the financing source is the release of $2,184,878 from the Capital Projects Assignment (BSA 001-3123) and $3,155,563 from the NGEN Radio Assignment (BSA 001-3122) to fund a $5,340,441 cash deficit in Resource Planning Fund 478.
SUMMARY:
The release of assignments from Capital Projects ($2,184,878) and NGEN Radio ($3,155,563) will fund an estimated $5,340,441 cash deficit in the Resource Planning Fund 478 due to a cost overrun of the ERP upgrade project.
DISCUSSION:
The Auditor-Controller presented an ERP Upgrade Project status report to the Budget Committee on January 19, 2018 and the Board on February 6, 2018 at which time, the CAO conveyed to the Budget Committee an estimated ending cash deficit of as much as $6.1 million for the project based on available information. The estimate has been revised. The ERP Upgrade Project under Resource Planning Fund 478 ended FY 2017-18 with a cash deficit of $4,840,441 and it is estimated that an additional $500,000 will be expended by the end of project for an estimated cash deficit of $5,340,441. The cash deficit is due to an overrun in ERP Upgrade project costs from what was originally estimated and funded.
It is recommended that a release of assignment from NGEN Radio ($3,155,563) and Capital Projects ($2,184,878) be used to fund the cash deficit. The Adopted FY 2017-18 ...
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