Ohio Office of Budget and Management

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Rhodes Tower, Columbus, Ohio
Ohio Statehouse
About OBM

About OBM

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.

Budget Development

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.

Services/Activities include:

  • 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.

Controlling Board

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.

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.

Services/Activities include:

  • 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.

Debt Management

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.

Services/Activities include:

  • 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.
  • Coordinates and presents the flow of information to bond rating agencies on the state's debt and overall financial situation.

Accounting Operations and Processing

Accounting operations and processing 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, provide training to users of the state's accounting system, and produce state financial reports.

Services/Activities include:

  • 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 and accounting records are reconciled to the Auditor of State's warrant-writing, or check-writing, activities.
  • The processing and review section performs purchasing, encumbering and payment functions in the Central Accounting System (CAS). 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 management information systems section administers databases and security for OBM computer programs residing on the state's mainframe computer, including programs which are used by other state agencies. CAS is the major program for which the section has responsibility. Interfaces between agency programs are maintained, and special program features and reports are developed to meet agency-specific needs.
  • The training and communications section presents regularly scheduled classes and written updates on the Central Accounting System to state agencies and provides other training as needed. This section coordinates other state agencies' use of CAS Plus Workflow.
  • 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.

Electronic Commerce

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.

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.

Services/Activities include:

  • 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

Financial Reporting

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).

Services/Activities include:

Internal Accounting Control Program and Oversight

The Internal Accounting Control Program (IACP) is established by Executive Order. The IACP was created to ensure state agencies complete a control self-assessment. This assessment helps agencies to establish and maintain proper controls to comply with all applicable laws relating to financial matters and adopt practices to safeguard the state’s funds, property and other assets against waste, loss, and unauthorized use.

Services/Activities include:

  • Prepares written internal control guidelines for state agencies.
  • Provides technical assistance, training and information to agency internal control coordinators.
  • Evaluates state agencies annually on their internal control review approach.
  • Collects and summarizes annual IACP certifications from state agencies.
  • Serves as Secretary and provides on-going coordination and support to the Ohio Internal Audit Committee (OIAC).

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.

School Districts
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.

Services/Activities include:

  • Helps units of local government prepare plans to overcome financial difficulties.
  • Provides Chairman for each financial planning commission.

Ohio Administrative Knowledge System

The Ohio Administrative Knowledge System, or OAKS, is a business transformation project that will improve the effectiveness, efficiency, and integration of central government business functions through an enterprise resource planning (ERP) system. The director of OBM is one of the project's sponsors, and several OBM staff members are assigned full-time to the OAKS project, as are representatives from the Department of Administrative Services and the Treasurer of State.

When it is implemented, the OAKS system will replace the Central Accounting System, CAS Plus Workflow, and other systems, such as DAS's HR2K human resources system. OAKS is expected to go live in July 2006.