Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Fiscal Reorg topic
No spam. Unsubscribe anytime.
Nevada OCIO seeks to move fiscal work in-house, cites $1.1 million biennial savings
Summary
The Office of the Chief Information Officer told a legislative subcommittee it proposes withdrawing from Administrative Services Division fiscal services, adding accounting staff and realizing more than $1.1 million in biennium savings while redistributing costs across OCIO budget accounts.
At a hearing of the Nevada Legislature’s Joint Subcommittee on General Government held with members and staff in Carson City and Las Vegas, the Office of the Chief Information Officer (OCIO) told legislators it seeks authority to transfer fiscal work away from the Department of Administration’s Administrative Services Division (ASD) into an OCIO fiscal unit.
The change is part of a budget amendment OCIO Director Timothy Galuzzi described as “reflects a over a $1,100,000 in savings to our agency and our rate payers across the biennium.” He said the amendment would create two fiscal positions and invest in rate-building and management software to lower rates charged to agencies that use OCIO services.
The shift would reallocate three management analyst positions currently assigned to separate OCIO units into a centralized fiscal unit, and add at least one accounting assistant position in the governor’s recommended budget. Tiffany Morelli, OCIO chief financial officer, told the committee the reorganization is intended to “remove some of that clerical work that the management analysts are doing right now” and to create an accounts-payable role that would receive invoices, route approvals, and enter data into the financial system. She said a second accounting assistant proposed in the budget amendment would handle billing generation, pay-clerk duties and contract tracking.
Legislators pressed OCIO on the accuracy of cost estimates and readiness to operate fiscal functions internally. Assemblymember Watts asked whether OCIO had modeled workload and whether the two new positions would be sufficient; Director Galuzzi said OCIO consulted with ASD and based its determination on those conversations. Morelli said OCIO performed a workflow analysis comparing current processes, transaction volumes and role duties and expects to leverage technology tools such as OnBase and ERP improvements to gain efficiencies.
Daniel Marlowe, administrator for ASD, told the committee ASD’s cost allocation uses a blended utilization metric governed by the statewide cost allocation plan (SWICAP) and federal Section 2 reporting. He said ASD typically serves smaller agencies that cannot cost-effectively maintain internal fiscal operations and noted OCIO has grown to the point where it can support internal controls and separation of duties.
OCIO and ASD representatives described a phased transition plan. Morelli said recruitment and training would begin immediately if authority is granted, and she and Galuzzi described coordinating with ASD on an anticipated handoff timeline (they suggested a fall transition window, around September, for training and overlap). OCIO said it expects the change to remove ASD direct services to OCIO after the transition.
No formal vote or motion on the amendment was recorded at the hearing. Committee members asked for follow-up materials and numbers clarifying differences between the governor’s recommended budget and separate budget amendment documents.
Because the amendment would shift costs to OCIO budget account 13‑73 and then allocate them back to OCIO’s customer accounts, Morelli said OCIO plans to continue distributing costs monthly across its other budget accounts rather than charging a separate external rate for the 13‑73 activities.
The discussion closed with legislators requesting further documentation of the analysis and the operational transition plan before approving the fiscal reorganization.
