State/Federal Funding

The State/Federal funding process for projects can be complex. The information provided here is meant to be a general guide. It is critical to the success of the funding process to initiate communication with State and Federal control agencies early for program specific guidance.  

For state and federal funded information technology projects, there are parallel paths for the project and funding approval process. A Feasibility Study Report (FSR) is required for all state projects and the Advanced Planning Document (APD) is required for federal financial participation. Since the APD has similar information as the FSR it may be accepted by the California Technology Agency (TA)  in lieu of the FSR. Substitution of an APD for the FSR should be discussed with TA prior to planning the creation of either project approval document. (note: the TA was formerly know as the Office of the State Chief Information Offier (OCIO))  

Information technology projects that require a change to the current budget year’s spending authority must develop a Budget Change Proposal (BCP) and submit it to the Department of Finance (DOF) for funding approval. Once these project approval (FSR/APD) and funding authorization (BCP) documents are approved the project can commence utilizing state resources and funds.

For federal funds, eligible projects must submit the APD to the federal partner in two phases. The first phase is the Planning APD (PAPD) which is required if the State is requesting reimbursement for project planning costs. Once the PAPD is approved, federal funds can be used for planning phase activities. If any significant project changes occur during the planning phase a Planning APD Update (PAPDU) must be submitted for approval.  

If the project will require the acquisition of goods and services an Information Technology Procurement Plan (ITPP) must be developed and approved by Department of General Services (DGS). Once the ITPP has been approved, solicitation documents are created with the State’s requirements for the project based upon the approved FSR and APD. The solicitation documents must be submitted and approved by DGS and the Federal partner before they are released to potential bidders. See Acquisition Life Cycle for details.

Once a vendor has been selected, the second phase of federal approval must occur. The second phase includes the development of the Implementation APD (IAPD) document which requests federal approval for the project implementation phase. In some cases, the Federal partner requires the IAPD be accompanied by the solicitation documents when submitted for review. Prior to awarding the contract, written approval from both the State and Federal controlling agencies must be received. Once approval of the IAPD is received, federal funds can be used for project implementation activities. 

Projects should be aware of the reporting requirements associated with Control Section 11.00 and 11.10 of the 2006 Budget Act. Section 11 requires the Legislature to be informed of contracts associated with information technology projects or statewide software licensing agreements that will continue beyond the current budget year and may necessitate budget augmentations in future years. This gives the Legislature the opportunity to review the future funding obligations before they are made. 

During the execution of the project, if it is determined that the project requirements will not be satisfied by the strategy described in the approved FSR or ADP, or if a change in cost, benefits or schedule of ten percent or more has occurred (See SAM Section 4819.36), an Special Project Report (SPR) should be prepared and submitted. Similarly, for these changes an Implementation ADP Update (IAPDU) must be submitted to the Federal partner.   

If project costs exceed the current budget year spending authority, the project must develop and submit a Budget Change Proposal (BCP) to DOF. APD Update (APDU) are also required on an annual basis to provide status on the current costs and timelines.     
  Key Tasks
  • Feasibility Study Report (FSR) - Approval received from TA
  • Planning APD (PAPD) – Approval received from Federal controlling agency
  • Budget Change Proposal (BCP) - Approval received from DOF, as necessary
  • Information Technology Procurement Plan (ITPP) – Approval received from DGS, as necessary (See Acquisition Life Cycle)
  • Solicitation Documents – Approval received from DGS and Federal controlling agency, as necessary (See Acquisition Life Cycle)
  • Implementation APD (IAPD) – Approval received from State and Federal controlling agency
  • Section 11 Report – Legislature informed, as necessary
  • Planning APD Update (PAPDU) – Approval received from Federal controlling agency, as necessary
  • Special Project Report (SPR) – Approval received from DOF, as necessary
  •  Implementation APD Update (IAPDU) – Approval received from Federal controlling agency, as necessary
  • Annual Budget Change Proposal (BCP) – Approval received from DOF, as necessary
  • Annual APD Update (APDU) – Approval received from Federal controlling agency, as necessary
  • Lessons Learned

  

  Next Steps
 Documents
OSI Budget Language Definitions
Key Budget Schedules
Lessons Learned
Information Technology Procurement Plan (ITPP)
  
 Web Based Training
Lessons Learned Module
  
 Links
FSR Instructions and Template
(SIMM Section 20)
 
Information Security and Privacy Components in Feasibility Study Reports  
SPR Instructions and Template
(SIMM Section 30)
 
BCP Template  
Writing a Good BCP  
Budget Letter 08-06 (OCIO Project Approval Authority)  
Budget Letter 06-17 (Control Section 11)  
ACF Planning Advance Planning Document (PAPD)
ACF Implementation Advance Planning Document (IAPD)
ACF Advance Planning Document Update (APDU)
ACF Federal Guidance
FNS APD website
FNS APD Related Checklist
FNS APD Handbook
FNS APD Process Overview
  
 Roles
Project Director
Project Manager
Financial Analyst
Administrative Manager
Project Sponsor
  

 

 

 

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