State of Arizona Budget Request - AZ 2019 Budget Submission_0.pdf · Receivership Revolving Fund...

State of Arizona Budget Request

State Department of Financial Institutions

State Agency

A.R.S. Citation: 6-110

Governor DUCEY:

Agency Head: Robert D. Charlton

Title: Superintendent of Financial Institu

(signature)

Prepared By: Michael Fowler

Phone: (602) 771-2781

Email Address: [email protected]

To the best of my knowledge all statements and explanations contained in the estimates submitted are true and correct.

This and the accompanying budget schedules, statements and explanatory information constitute the operating budget request for this agency for Fiscal Year 2019.

Date Prepared: Wednesday, August 30, 2017

Robert D. Charlton 8/30/2017

Total: 7,577.7 (728.6) 6,849.1

FY 2019 Fund. Issue

Total Amount Requested: (283.6) 5,959.3

FY 2018 Approp

FY 2019 Total Budget

Appropriated Funds

6,242.9

0.0 2,201.0General Fund 2,201.0

531.5 3,758.3Financial Services Fund 3,226.8

(815.1) 0.0Board of Appraisal Fund 815.1

FY 2019 Fund. Issue

Total Amount Planned: (445.0)1,334.8 889.8

FY 2018 Expd. Plan

FY 2019 Total Budget

Non-Appropriated Funds

0.0 859.8Banking Department Revolving Fund 859.80.0 0.0IGA and ISA Fund 0.0

(445.0) 30.0Receivership Revolving Fund 475.0

Date Printed: 8/30/2017 9:24:19 AM Transmittal Statement All dollars are presented in thousands.

Page: 1

Revenue Schedule

State Department of Financial InstitutionsAgency:

AFIS Code Category of Receipt and Description FY 2017 FY 2018 FY 2019

1000 General FundFund:

4312 EXAMINATION FEES 660.8 764.5 769.54332 OTHER EDUCATION FEES 3.7 22.3 24.04339 OTHER FEES AND CHARGES FOR SERVICES 1,324.9 1,500.0 1,530.04372 PUBLICATIONS AND REPRODUCTIONS 1.6 0.5 0.54415 OCCUPATIONAL AND PROFESSIONAL LICENSES 2,816.7 3,382.8 3,497.04449 OTHER FEES 1,246.8 1,357.3 1,392.04519 OTHER FINES OR FORFEITURES OR PENALTIES 106.0 97.8 98.04645 CREDIT CARD DISCOUNT FEES PAID (3.9) (15.0) (16.0)4699 MISCELLANEOUS RECEIPTS 0.5 0.5 0.54821 PRIOR YEAR REIMBURSEMENT - REFUNDS 0.8 0.0 0.0

Fund Total: 6,157.9 7,110.7 7,295.5

Date Printed: 8/30/2017 9:24:25 AM All dollars are presented in thousands (not FTE). Page: 2

Department of Financial Institutions FY 2019 Budget Submission

Revenue Justifications

General Fund (#1000)

DFI combines historical revenue trends for licensing, renewal, examination, and financial institutions assessments with division management forecasts for activity (i.e., changes in application levels, financial institution asset levels, etc.) that will impact these revenue streams. With respect to licensing fees, FY 2018 and FY 2019 projections assume a 2% annual growth rate.

Note: SB 1197 (Laws 2017, Chapter 334), which was effective August 9, 2017, eliminated the Board of Appraisal Fund and appropriated $675,000 from the General Fund for real estate appraisal activities. As a result, FY 2018 and FY 2019 revenue projections include increases of $603K and $671K, respectively, for real estate appraisal license fees, which were being recorded to the Board of Appraisal Fund in prior years. Due to the effective date of the bill, the $603K increase in FY 2018 fees only reflects 11 months of revenue.

Mortgage Recovery Fund (#1997)

Under A.R.S. 6-991.09 the Mortgage Recovery Fund was established, consisting of monies paid by loan originator license applicants for the benefit of any person aggrieved by any act, representation, transaction of conduct of a licensed loan originator that violates statute or rule.

Applicants have the option of obtaining a bond in lieu of payment into the fund. Payment into the fund is $100 at the time of initial application and an additional $100 at the renewal date. Based on recent experience, DFI projects that only 25% of future applicants will pay into the fund.

Note: This fund has a cap of $2.0 million, which was reached as of June 30, 2015. Under A.R.S. 6-991.10, once the cap is reached, payments into the fund are no longer made by licensees as part of their license renewal application. However, one-time payments into the fund continue for new license applicants.

Financial Services Fund (#1998)

Under A.R.S. 6-991.21 the Financial Service Fund was established, consisting of loan originator licensing fees collected by DFI. Licensing fees include an initial application fee ($350), prorated license fee ($150), and an annual license renewal fee ($150). As of June 30, 2017, there were 15,342 licensed loan originators. The Department is projecting that number to grow to 15,800 by the next renewal date of December 31, 2017 and to 17,800 by the December 31, 2018.

Page: 3


Revenue Justifications (cont’d)

Banking Department Revolving Fund (#2126)

The Department Revolving Fund is established under A.R.S. 6-135. DFI forecasts revenue (Civil Money Penalties) primarily using historical data and projected examiner staff size.

Board of Appraisal (#2270)

DFI combines historical revenue trends for licensing with division management forecasts for activity (i.e., changes in application levels) that will impact these revenue streams.

Note: SB 1197 (Laws 2017, Chapter 334), which was effective August 9, 2017, eliminated the Board of Appraisal Fund and transfers any amount remaining in the fund to the General Fund. As a result, the FY 2018 revenue projection only reflects approximately 1 month of revenue.

Receivership Revolving Fund (#3023)

Pursuant to A.R.S. 6-135.01, the revenue received into this fund comes from two sources: 1) monies awarded and received as fees and costs in receiverships in which the Superintendent was the receiver, and 2) monies transferred from the Department Revolving Fund (SRF). Specifically, all unencumbered monies in excess of two hundred thousand dollars in the SRF at the end of each fiscal year, shall be deposited in the Department’s Receivership Revolving Fund.

Page: 4

Revenue Schedule



1997 Mortgage Recovery FundFund:

4612 RESTRICTED DONATIONS 158.1 75.0 75.04631 TREASURERS INTEREST INCOME 25.4 27.0 30.0

Fund Total: 183.5 102.0 105.0


Revenue Schedule



1998 Financial Services FundFund:

4415 OCCUPATIONAL AND PROFESSIONAL LICENSES 2,398.9 2,651.3 2,951.34449 OTHER FEES 2,171.0 1,300.0 1,300.04519 OTHER FINES OR FORFEITURES OR PENALTIES 27.2 25.0 25.04645 CREDIT CARD DISCOUNT FEES PAID (0.6) (0.5) (0.5)4821 PRIOR YEAR REIMBURSEMENT - REFUNDS 0.4 0.0 0.0

Fund Total: 4,596.9 3,975.8 4,275.8


Revenue Schedule



2126 Banking Department Revolving FundFund:

4519 OTHER FINES OR FORFEITURES OR PENALTIES 730.5 900.0 900.04901 OPERATING TRANSFERS IN 1.1 0.0 0.0

Fund Total: 731.6 900.0 900.0


Revenue Schedule



2270 Board of Appraisal FundFund:

4332 OTHER EDUCATION FEES 18.0 1.7 0.04415 OCCUPATIONAL AND PROFESSIONAL LICENSES 543.6 46.3 0.04449 OTHER FEES 90.8 7.8 0.04519 OTHER FINES OR FORFEITURES OR PENALTIES 1.3 0.2 0.04645 CREDIT CARD DISCOUNT FEES PAID (11.4) (1.0) 0.0

Fund Total: 642.3 55.0 0.0


Revenue Schedule



3023 Receivership Revolving FundFund:

4699 MISCELLANEOUS RECEIPTS 579.6 457.0 0.2

Fund Total: 579.6 457.0 0.2


Sources and Uses of FundsState Department of Financial InstitutionsAgency:

Estimate FY 2018

Actual FY 2017

Estimate FY 2019

1997 Mortgage Recovery FundFund:

Cash Flow Summary

Balance Forward from Prior Year 2,213.5 2,397.0 2,499.0Revenue (From Revenue Schedule) 183.5 102.0 105.0Total Available 2,397.0 2,499.0 2,604.0Total Appropriated Disbursements 0.0 0.0 0.0Total Non-Appropriated Disbursements 0.0 0.0 0.0Balance Forward to Next Year 2,397.0 2,499.0 2,604.0

Estimate FY 2018

Actual FY 2017

Estimate FY 2019Expenditure Categories

Non-Appropriated Expenditure

Personal Services 0.0 0.0 0.0Employee Related Expenses 0.0 0.0 0.0Prof. And Outside Services 0.0 0.0 0.0Travel - In State 0.0 0.0 0.0Travel - Out of State 0.0 0.0 0.0Food 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0Other Operating Expenses 0.0 0.0 0.0Equipment 0.0 0.0 0.0Capital Outlay 0.0 0.0 0.0Debt Service 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0Transfers 0.0 0.0 0.0

0.0 0.0 0.0Expenditure Categories Total:Cap Transfer due to Fund Balance 0.0 0.0 0.0Prior Commitments or Obligated Expenditures 0.0 0.0 0.0Non Appropriated 27th Pay Roll 0.0 0.0 0.0

0.0 0.0 0.0Non-Appropriated Expenditure Total:0.0 0.0 0.0Non-Apppropriated FTE:

Estimate FY 2018

Actual FY 2017


Appropriated Expenditure


0.0 0.0 0.0Expenditure Categories Total:Non-Lapsing Authority from Prior Years 0.0 0.0 0.0Administrative Adjustments 0.0 0.0 0.0Capital Projects (Land, Buildings,Improvements) 0.0 0.0 0.0Appropriated 27th Pay Roll 0.0 0.0 0.0Legislative Fund Transfers 0.0 0.0 0.0IT Project Transfers 0.0 0.0 0.0

0.0 0.0 0.0Appropriated Expenditure Total:0.0 0.0 0.0Apppropriated FTE:



Fund Description

Revenues consist of assessments levied by the Superintendent of Financial Institutions if the balance of the fund falls below two million dollars at the end of the fiscal year.The Mortgage Recovery Fund provides relief to persons or parties who have suffered an out-of-pocket loss from a fraudulent mortgage transaction.

OSPB:



Estimate FY 2018

Actual FY 2017

Estimate FY 2019

1998 Financial Services FundFund:

Cash Flow Summary

Balance Forward from Prior Year 8,714.6 11,879.1 12,624.8Revenue (From Revenue Schedule) 4,596.9 3,975.8 4,275.8Total Available 13,311.5 15,854.9 16,900.6Total Appropriated Disbursements 1,432.4 3,230.1 3,758.3Total Non-Appropriated Disbursements 0.0 0.0 0.0Balance Forward to Next Year 11,879.1 12,624.8 13,142.3

Estimate FY 2018

Actual FY 2017






Estimate FY 2018

Actual FY 2017



Personal Services 623.0 1,879.4 2,209.4Employee Related Expenses 228.2 742.3 871.8Prof. And Outside Services 272.9 87.0 87.0Travel - In State 3.4 6.0 18.0Travel - Out of State 0.3 3.0 9.0Food 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0Other Operating Expenses 187.4 386.7 434.7Equipment 112.3 122.4 128.4Capital Outlay 0.0 0.0 0.0Debt Service 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0Transfers 0.0 0.0 0.0

1,427.5 3,226.8 3,758.3Expenditure Categories Total:Non-Lapsing Authority from Prior Years 0.0 0.0 0.0Administrative Adjustments 4.9 3.3 0.0Capital Projects (Land, Buildings,Improvements) 0.0 0.0 0.0Appropriated 27th Pay Roll 0.0 0.0 0.0Legislative Fund Transfers 0.0 0.0 0.0IT Project Transfers 0.0 0.0 0.0

1,432.4 3,230.1 3,758.3Appropriated Expenditure Total:14.0 37.7 41.7Apppropriated FTE:

Fund Description

Revenues are collected from licensing fees paid by loan originators operating in Arizona and used to regulate and license loan originators.

OSPB:



Estimate FY 2018

Actual FY 2017

Estimate FY 2019

2126 Banking Department Revolving FundFund:

Cash Flow Summary

Balance Forward from Prior Year 200.0 166.6 200.0Revenue (From Revenue Schedule) 731.6 900.0 900.0Total Available 931.6 1,066.6 1,100.0Total Appropriated Disbursements 0.0 0.0 0.0Total Non-Appropriated Disbursements 765.0 866.6 900.0Balance Forward to Next Year 166.6 200.0 200.0

Estimate FY 2018

Actual FY 2017






Estimate FY 2018

Actual FY 2017








Fund Description

Revenues include any recovered investigative costs, or attorney's fees and civil penalties recovered by the state. Funds are used to investigate and prosecute civil actions against financial entities in Arizona. Any unencumbered balance at the end of the fiscal year above $200K is transferred to the Receivership Revolving Fund.

OSPB:



Estimate FY 2018

Actual FY 2017

Estimate FY 2019

2270 Board of Appraisal FundFund:

Cash Flow Summary

Balance Forward from Prior Year 377.3 479.8 (286.7)Revenue (From Revenue Schedule) 642.3 55.0 0.0Total Available 1,019.6 534.8 (286.7)Total Appropriated Disbursements 539.8 821.5 0.0Total Non-Appropriated Disbursements 0.0 0.0 0.0Balance Forward to Next Year 479.8 (286.7) (286.7)

Estimate FY 2018

Actual FY 2017






Estimate FY 2018

Actual FY 2017








Fund Description

This fund consists of fees and charges paid by real estate appraisers, property tax agents, appraisal management companies and education fees that are used to license, certify, and regulate the appraisers, tax agents, and appraisal management companies.

OSPB:



BOA Fund (#2270) – Negative Fund Balance

Board of Appraisal Fund - Negative Fund Balance ($286.7K)

SB 1197 (Laws 2017, Chapter 334), which was effective August 9, 2017, eliminated the Board of Appraisal Fund and transfers any amount remaining in the fund to the General Fund. As a result, the FY 2018 revenue and expenditure projections only reflect approximately 1 month of activity. In order to balance to the full FY 2018 appropriation amount of $815.1K, Operating Transfers Out was increased to $735.0K, resulting in a negative fund balance.

Page: 17


Estimate FY 2018

Actual FY 2017

Estimate FY 2019

2500 IGA and ISA FundFund:

Cash Flow Summary

Balance Forward from Prior Year 1.1 0.0 0.0Total Available 1.1 0.0 0.0Total Appropriated Disbursements 0.0 0.0 0.0Total Non-Appropriated Disbursements 1.1 0.0 0.0Balance Forward to Next Year 0.0 0.0 0.0

Estimate FY 2018

Actual FY 2017






Estimate FY 2018

Actual FY 2017






Fund Description

This fund was established for state agencies as a clearing account to properly account for, control, and report receipts and disbursements associated with intergovernmental and interagency service agreements, which are not reported in other funds.

OSPB:



Estimate FY 2018

Actual FY 2017

Estimate FY 2019

2600 Credit Card Clearing FundFund:

Cash Flow Summary

Balance Forward from Prior Year 0.0 2.9 0.0Total Available 0.0 2.9 0.0Total Appropriated Disbursements (2.9) 2.9 0.0Total Non-Appropriated Disbursements 0.0 0.0 0.0Balance Forward to Next Year 2.9 0.0 0.0

Estimate FY 2018

Actual FY 2017






Estimate FY 2018

Actual FY 2017




0.0 0.0 0.0Expenditure Categories Total:Non-Lapsing Authority from Prior Years 0.0 0.0 0.0Administrative Adjustments (2.9) 2.9 0.0Capital Projects (Land, Buildings,Improvements) 0.0 0.0 0.0Appropriated 27th Pay Roll 0.0 0.0 0.0Legislative Fund Transfers 0.0 0.0 0.0IT Project Transfers 0.0 0.0 0.0

(2.9) 2.9 0.0Appropriated Expenditure Total:0.0 0.0 0.0Apppropriated FTE:

Fund Description

OSPB:



Estimate FY 2018

Actual FY 2017

Estimate FY 2019

3023 Receivership Revolving FundFund:

Cash Flow Summary

Balance Forward from Prior Year 2,033.5 2,154.4 2,136.4Revenue (From Revenue Schedule) 579.6 457.0 0.2Total Available 2,613.1 2,611.4 2,136.6Total Appropriated Disbursements 0.0 0.0 0.0Total Non-Appropriated Disbursements 458.7 475.0 30.0Balance Forward to Next Year 2,154.4 2,136.4 2,106.6

Estimate FY 2018

Actual FY 2017






Estimate FY 2018

Actual FY 2017








Fund Description

Revenues include monies awarded and received as fees and costs in receiverships in which the superintendent was the receiver and monies received from the banking department revolving fund. Monies in the fund may be used to pay any costs incurred by the department arising out of the administration of a receivership in which the superintendent is the receiver.

OSPB:


Priority Funding Issue Title Total FTE

Total Amount

FY 2019

Funding Issues ListState Department of Financial InstitutionsAgency:

GeneralFund

Other Aprop. Funds

Non-App Funds

1 Mortgage Lending Division - Add 4 Examiners 4.0 358.3 0.0 358.3 0.0

2 Money Svcs Business Division - Add 1 Examiner 0.0 89.6 0.0 89.6 0.0

3 Financial Services Division - Add 1 Examiner 0.0 89.6 0.0 89.6 0.0

4 Remove One-Time Equipment Costs 0.0 (6.0) 0.0 (6.0) 0.0

5 New Licensing System 0.0 (381.0) 0.0 0.0 (381.0)

6 Reduce Receivership Expenditures 0.0 (64.0) 0.0 0.0 (64.0)

7 Repeal of Board of Appraisal Fund 0.0 (815.1) 0.0 (815.1) 0.0

4.0 (728.6) Total: 0.0 (283.6) (445.0)

4.0 (728.6)Decision Package Total: 0.0 (283.6) (445.0)


Funding Issue #2019-1: Mortgage Lending Division – Add 4 Examiners Proposal: To authorize and fund four (4) Financial Institutions Examiner positions, specializing in mortgage broker, mortgage banker, commercial mortgage broker, commercial mortgage banker and loan originator examinations. This is an ongoing appropriation request, to be funded out of the Financial Services Fund. Background: In 1990, the Department of Financial Institutions (“DFI”) had twenty-four (24) examiners assigned to examine 679 mortgage brokers and 153 mortgage bankers for a total of 832 licensees. DFI had one (1) examiner for every 35 mortgage licensees. In FY 2018, DFI has six (6) examiners assigned to examine 402 mortgage brokers, 465 mortgage bankers, 21 commercial mortgage bankers, 69 commercial mortgage brokers and 15,933 loan originators. DFI has one (1) examiner for every 2,815 mortgage licensees.

Licensees 1990 2018 Mortgage brokers MB 679 402 Mortgage bankers BK 153 465 Commercial mortgage broker CMB

- 69

Commercial mortgage banker CBK

- 21

Loan originator LO 15,933 Totals as of 8/24/17 832 16,890 The current number of mortgage examiners is inadequate and has caused DFI to fall behind on its required examination schedule. The funding request for four (4) new examiners will reduce the ratio to one (1) examiner for every 1,699 mortgage licensees (based on total number of licensees as of 8/24/2017). DFI is substantially under staffed; 122 mortgage bankers, 199 mortgage brokers, 36 commercial mortgage brokers and 4,416 loan originators that must be examined before the end of the year, June 30, 2018. For example, during FY2017 we had a total of 1,194 exams completed. This is a liability to the state.

Page: 23

Four Additional Examiners Will Help Arizona Businesses and Consumers

The need for additional resources to permit the Department to increase its examination coverage in the mortgage lending division cannot be overstated. Increasing this examination coverage is vital to DFI’s ability to protect Arizona taxpayers and offer guidance to our licensees. The largest increase in entities licensed with DFI has occurred among loan originators. In 2010 the new loan originator licensing law went into effect. There are currently 15,933 licensed loan originators. These loan originators are not exempt from examination. These compliance examinations are conducted, as a general practice concurrently with the examination of the mortgage broker or mortgage banker. Those examinations take additional time to complete as a result of the loan originator compliance review. Only through the efforts of a sufficient number of qualified examiners can DFI detect and eliminate the unscrupulous practices that can injure and defraud both businesses and consumers alike. When lenders and investors discover that they have purchased bad Arizona loans, they are reluctant to fund new loans in Arizona. The funding for these positions will come from the Financial Services Fund. The Financial Services Fund receives its’ funds from licensing fees from loan originators. This is a funded mandate that has yet to be staffed with an appropriate number of examination personnel. This fund currently has a balance of $11.8 million. Lastly, it must be pointed out that mortgage examiners generate examination fees. Those fees are deposited directly into the General Fund even though the cost to fund them comes from the Financial Services Fund. Each examiner will generate at least $62,400 in examination fees to the General Fund each year. As a result, each of these positions will be a financial benefit to the General Fund, with the cost to fund them coming from the licensed community. Alternatives Considered: Authorization and funding for four (4) examiners is the only solution to this problem. While monies in DFI’s Special Revolving Fund can provide a temporary funding source for examiner salaries, the monies in this fund are non-appropriated and an unstable/unreliable long-term funding source. Furthermore, this fund is statutorily capped at $200,000 to begin each fiscal year. This fund is used extensively to fund the Department’s legal fees. Therefore, this potential alternative does not address the long-term need for a core group of permanent examiners who will be responsible for ongoing examinations that are statutorily required. Moreover, these monies come from civil money penalties assessed to our licensees. Funding examiner positions from this fund can expose the state to “conflict of interest” claims.

Page: 24

DFI Mortgage Accreditation DFI/Mortgage Lending Division will be seeking the mortgage accreditation by the Conference of State Bank Supervisors (CSBS). Over half of the other states have achieved their status and Arizona must join the group to achieve the Governor’s goal for Arizona to be the number one state to work. To obtain the accreditation DFI/mortgage must have capable and adequate resources to supervise the mortgage industry effectively. The additional examiners requested will help the mortgage division to establish adequate staffing.

To achieve accreditation, a state mortgage regulatory agency must test itself against the criteria in the Self-Evaluation Questionnaire and achieve a total overall score of not less than 80% and 75% on the two Examination Sections and the Licensing/Supervisory/Enforcement Section; and not less than 70% on all other sections. This score incorporates the standards noted below:

A. The legal authority to license, examine, supervise and regulate all state-licensed mortgage providers consistent with basic principles of safety and soundness and protection of the public interest.

B. The demonstrated capability to conduct examinations of state-licensed mortgage providers within acceptable time limits. This capability should be supported by a combination of active monitoring, acceptable complaint processing procedures, review of applicable federal reports and other methods in a manner consistent with state statutes, consumer protection and safety and soundness.

C. Specialized capabilities as required in each state to assure safety and soundness of all state-licensed providers and full compliance with both state and federal statutes.

D. Adequate qualified staff with expertise to license, examine, supervise and regulate all state-licensed mortgage providers and to perform other agency functions and responsibilities.

E. A policy or statutory authority, which requires focused examinations on a frequency basis at least once every 60 months on all mortgage providers and the ability to meet the frequency policy.

F. Adequate statutory authority for the agency to carry out its duties and

responsibilities independently, including authority to take formal enforcement action in addition to revocation of a license.

G. Adequate funding to achieve all above-mentioned criteria.

The agency MUST have the ability to conduct examinations of all active licensed mortgage providers on a 60-month schedule. THIS STANDARD MUST BE MET TO OBTAIN ACCREDITATION. For initial accreditation, the agency must demonstrate the ability to examine licensees.

Page: 25

Here are some of the metrics that are used by CSBS in order to determine the number of examiners needed to meet the mortgage accreditation requirements. The following metrics derived from aggregate data from seven (7) accredited state’s with a similar number of licensees compared to Arizona. The data is from 2016 and the total number of licensees includes mortgage brokers and mortgage bankers.

STATE LICENSEES

#EXAMS EXAMS/EXAMINERS COMPANIES/EXAMINERS EXAMINERS

A* 970 418 16.08 37.31 26

B* 755 296 16.44 41.94 18

C* 546 56 4 39 14

D* 473 139 5.56 18.92 25

E* 492 119 6.61 27.33 18

F* 580 196 16.33 48.33 12

G* 511 76 3.04 20.44 25

Arizona 867 131 22 144.5 6

*This info is confidential and CSBS is not able to disclose the name of the state.

The chart above clearly demonstrates that Arizona’s ratio of 144 companies for each examiner far exceeds all other states.

Impact of Not Funding:

o DFI will continue to fall behind on its examination schedule and its statutory responsibility.

o The state of Arizona will face continual liability exposure for not complying with

statutory examination requirement.

o Arizona will not attain the mortgage accreditation by the Conference of State Banking Supervisors and fall behind half of the nation that has already attained this designation.

Page: 26

Conclusion Funding for four (4) additional financial institutions examiners in the Mortgage Lending Division is the only solution to help support Arizona businesses, consumers and financial enterprises to comply with state and federal mandates, and to achieve the mortgage accreditation. Decision Package / Position Detail: -------------------- ($000s) -------------------

# Position Class / Grade Salary ERE Training Travel Other* 1 Fin’l Institutions

Examiner, Journey (LO/Mortgage Exams)

AUN08341 / 21 55.0 21.6 3.0 3.0 7.0

4 Total 220.0 86.3 12.0 12.0 28.0 Decision Package Grand Total: $358.3 * Other Expense includes $2.0K per FTE for one-time Equipment costs.

Page: 27

Funding Issue #2019-2: Money Services Business Division - Add 1 Examiner Proposal: To fund one (1) Financial Institutions Examiner position, specializing in collection agency, money transmitter, and sales finance company examinations. This is an ongoing appropriation request for funding only, with no increase in authorized FTE. Note: This request can only be funded out of the Financial Services Fund if the FY 2019 Revenue Budget Reconciliation Bill (BRB) continues to allow the agency to use the Financial Services Fund for general operating expenses of the Department (see FY 2018 BRB (Laws 2017, Chapter 312). Alternatively, this language must be made permanent law. Background: The Money Services Business (“MSB”) Division currently has 2 FTE examiners that monitor and examine 1,383 licensees, 743 branch locations, and 12,204 authorized delegates. This funding request covers the following areas, all licensed and regulated by the Department of Financial Institutions (“DFI”): Collection Agencies: These companies contact debtors and attempt to collect money to be held in trust and then forward those monies on to the creditor. They handle millions of dollars in trust funds, make daily collection calls and send collection letters to Arizona consumers. Our past examinations document the necessity to conduct examinations to prevent the theft of trust funds due Arizona businesses and protect Arizona consumers from abusive collection practices. DFI is currently aware of collection agencies that are misappropriating trust funds that are owed to Arizona businesses. These collection agencies are using those funds as operating expenses. This is theft, and must be stopped. Recently, without notice to the DFI, a collection agency abruptly closed its doors and continued to collect monies from Arizona debtors without remitting the funds to the creditors. Many Arizona consumers have collection agencies contacting them. Abusive collection practices are on the rise and the Department is struggling to process cease and desist orders to correct this problem. DFI has one examiner attempting to monitor 729 licensees with 29 branch locations. Many of these licensees have home offices in other states requiring extensive travel time. There are currently 420 collection agencies that are at least 3 years past due for an examination. Money Transmitters: Money transmission has been in the spotlight, particularly after September 11, 2001. Money transmission has been implicated in money laundering and other financial crimes. From a service offered to individuals wishing to send money abroad, money transmission has grown into an international high profile business. It is essential for DFI, especially with Arizona being a border state, to regulate and monitor money transmission. In a recently completed examination, a licensee failed to maintain a net worth of at least one hundred thousand dollars, failed to file with the Superintendent a

Page: 28

consolidated financial statement, failed to keep their business books, accounts, and records in accordance with GAAP, failed to maintain business records at its principal place of business, failed to maintain adequate written records of all transactions involving the receipt of money from consumers, failed to provide any anti-money laundering policies, procedures, and training to comply with the federal Patriot Act and state laws, failed to create and/or deliver records that reflect the provision of updated operating policies and procedures, failed to keep adequate records of customers’ identities involving transmissions of $1,000 or more, and failed to maintain specific policies and procedures regarding the acceptance of anything of value which is intended to influence or reward the licensee or its employees in connection with money transmitter transactions. DFI issued a Cease and Desist Order and the money transmitter license was surrendered. In another recently completed examination, DFI issued a Cease and Desist Order to a licensee who failed to verify, collect and/or retain adequate records or copies of customers’ photographic identification and customers’ current occupations for 84,787 transactions of $1,000 or more, failed to create and/or maintain training materials, and overcharged Arizona consumers $146,266.25, in fees. DFI was successfully able to resolve this matter with the licensee, including restitution to Arizona consumers. This case originated from a tip from a local FBI agent. DFI has one FTE examiner attempting to monitor 120 licensees, 129 branch locations and 12,204 authorized delegates. Many of these licensees have home offices in other states requiring extensive travel times. There are currently 30 money transmitters that are at least 3 years past due for an examination. Sales Finance Companies: These companies can finance the purchase of a vehicle or provide a title loan. Payday loan statutes expired on June 30, 2010 and in lieu of payday loans, many Arizona consumers began utilizing title loans. For title loans, the maximum annual percentage rate (APR) allowed to be charged under Arizona Revised states is 120%-204%, dependent on the amount borrowed. In a current examination, the licensee failed to comply with A.R.S. §44-291(H) by charging title lien fees which are not expressly permitted. During the examination, it was discovered that unpermitted title lien services fees of $484,342.94 were charged on 35,232 title loans. DFI has one FTE examiner (note: the same examiner who examines money transmitters) attempting to monitor 534 licensees with 585 branch locations. There are currently 74 title lenders that are at least 3 years past due for an examination.

1 Additional Examiner will help Arizona Business and Consumers This examiner will join the MSB Division staff to be cross trained in all types of examinations. With a staff this small, all examiners must be able to respond to potential licensee failures when they arise. Only through systematic examinations can future problems and failures be detected. In addition, Arizona law requires collection agency examinations to be performed.

Page: 29

Arizona Revised Statutes (“A.R.S.”) Section 6-122(3) states that the Superintendent shall examine or cause to be examined the business and affairs of any enterprise at least once in a five-year period. Money transmitters and sales finance companies are not statutory required to be examined by DFI. However, the Superintendent has the authority to license, regulate, and conduct examinations for money transmitters as well as for the finance companies. In a border state like Arizona, money transmitter examinations are essential to combat money laundering, drug smuggling and human trafficking. Such examinations may reveal vulnerabilities that allow criminals to launder money through particular money laundering methods. Arizona consumers with short term cash needs and limited loan options often turn to title loans. These types of loans are secured by the vehicle; therefore, lenders often don’t consider a consumer’s income or ability to repay. If the borrower falls behind on payments, the car will be repossessed and sold to pay off the loan. When these Arizona citizens lose their car, their cycle of debt only gets worse. DFI focuses on lenders to make sure they are properly disclosing the term of auto title lenders and to protect Arizona consumers from predatory lending that could trap people in debt. Lastly, it must be pointed out that financial enterprise examiners pay for themselves through examination fees. DFI currently charges each enterprise examined $65 per hour for each examiner (A.R.S. § 6-125(B)(4)). These fees typically cover the salary and ERE of each examiner. Alternatives Considered: Authorization and funding for one (1) additional examiner is the only solution to this problem. While monies in DFI’s Special Revolving Fund can provide a temporary funding source for examiner salaries, the monies in this fund are non-appropriated and an unstable/unreliable long-term funding source. Furthermore, this fund is statutorily capped at $200K to begin each fiscal year. Therefore, this potential alternative does not address the long-term need for a minimum number of permanent examiners who will be responsible for ongoing examinations that are statutorily mandated or authorized by the Superintendent. Moreover, these monies come from civil money penalties assessed to licensees. Funding examiner positions from this fund can expose the state to “conflict of interest” claims. Impact of Not Funding:

o DFI will fall behind on its collection agency examination schedule and its statutory responsibility.

o DFI will fall behind on scheduled examinations authorized by the Superintendent.

Page: 30

o The state of Arizona will face continual liability exposure for not complying with statutory examination requirement.

o Consumers will continue to lose money and confidence in Arizona businesses and

its state government. Out of state businesses will be reluctant to enter this inadequately regulated state, and provide their services to Arizona consumers and businesses.

o Arizona businesses will lose money owed to them as unscrupulous licensees continue to steal their funds.

o Collection Agencies, Money Transmitters, and Sales Finance Companies will

have no supervision.

o Arizona debtors will continue to be subjected to illegal collection practices.

o Arizona consumers will fall victim to money laundering schemes.

o Arizona consumers will fall victim to predatory lending. Decision Package / Position Detail: -------------------- ($000s) -------------------


Examiner, Journey (Enterprises Exams)

AUN08341 / 21 55.0 21.6 3.0 3.0 7.0

1 Total 55.0 21.6 3.0 3.0 7.0 Decision Package Grand Total: $89.6 * Other Expense includes $2.0K per FTE for one-time equipment costs

Page: 31

Funding Issue #2019-3: Financial Services Division - Add 1 Examiner Proposal: To fund one (1) Financial Institutions Examiner position, specializing in escrow agent, consumer lender, debt management, premium finance, pre-need funeral trust, real estate appraisers, and appraisal management companies’ examinations. This is an ongoing appropriation request for funding only, with no increase in authorized FTE. Note: This request can only be funded out of the Financial Services Fund if the FY 2019 Revenue Budget Reconciliation Bill (BRB) continues to allow the agency to use the Financial Services Fund for general operating expenses of the Department (see FY 2018 BRB (Laws 2017, Chapter 312). Alternatively, this language must be made permanent law. Background: The Financial Services Division currently has 4 FTE examiners/investigators that monitor and examine 2,479 licensees with 593 branch locations. This funding request covers the following areas, all licensed and regulated by the Department of Financial Institutions (“DFI”): Real Estate Appraisers and Appraisal Management Companies (AMC): As of 2015 DFI has the responsibility of examining all licensed Real Estate Appraisers along with licensed Appraisal Management Companies. Currently there are 2,009 licensed Appraisers and 166 licensed AMC’s. There has been a total of 185 investigations that have currently been completed since May 2015 and a total 1,990 examinations that need to be completed by 2020. Currently, the average timeframe it takes to complete each investigation is 62 days. Escrow Agents: These companies handle the settlement services between real estate professionals, lenders, buyers and sellers. They hold millions of dollars in trust funds that must be disbursed according to escrow instructions or real estate contracts. It is important to monitor escrow agent trust accounts to ensure defalcation has not occurred. In a recently completed examination, a Licensee did not establish sufficient internal controls for an out-of-state branch location that housed one escrow officer. This enabled the escrow officer to defalcate over $93,000 in less than one year. Consumer Lenders: These companies advertise to make or procure small loans for consumers in this state. A recently completed examination indicated that a Licensee had collected over $10,000,000 unlawful fees from Arizona consumers. Debt Management Companies: These companies solicit consumers struggling with their ability to pay all of their creditors. The Debt Management companies work out payment plans with Arizona consumers, in an attempt to satisfy the various creditors’ demands. Some of these companies are also starting to misuse consumer funds for their own use.

Page: 32

Recently the Department had to pursue an unlicensed operator was conducting Debt Management business by having constructive control over customers’ accounts for paying itself its own fees. This resulted in the unlicensed operator being issued a civil money penalty of $150,000.00. Premium Finance Companies: These companies finance insurance premiums. Pre-need Funeral Trust Companies: DFI has an inter-governmental agreement with the Board of Funeral Directors and Embalmers. This agreement requires DFI to examine and report on prearranged funeral trust accounts of funeral establishments. These agreements hold in excess of $1,000,000.00 to cover funeral costs for Arizona citizens. There are currently 24 active Pre-Need Funeral Trust Companies in which all 24 companies are at least 2 years past due for an examination.

1 Additional Examiner will help Arizona Business and Consumers This examiner will join the staff to be cross trained in all types of examinations. With a staff this small, all examiners must be able to respond to potential licensee failures when they arise. Only through systematic examinations can future problems and failures be detected. In addition, Arizona law requires these examinations to be performed. Arizona Revised Statutes (“A.R.S.”) Section 6-122(B) states that the Superintendent shall examine each escrow agent every four years, each premium finance company every three years and each debt management company, and consumer lender every five years. Pre-need funeral trusts shall be examined, pursuant to agreement with the State Board of Funeral Directors and Embalmers, within the first year of operation and once every three years thereafter. Lastly, it must be pointed out that financial services examiners pay for themselves through examination fees. DFI currently charges each enterprise examined $65 per hour for each examiner (A.R.S. § 6-125(B)(4)). These fees typically cover the salary and ERE of each examiner. Alternatives Considered: Authorization and funding for one (1) additional examiner is the only solution to this problem. While monies in DFI’s Special Revolving Fund can provide a temporary funding source for examiner salaries, the monies in this fund are non-appropriated and an unstable/unreliable long-term funding source. Furthermore, this fund is statutorily capped at $200K to begin each fiscal year. Therefore, this potential alternative does not address the long-term need for a minimum number of permanent examiners who will be responsible for ongoing examinations that are statutorily mandated. Moreover, these monies come from civil money penalties assessed to licensees. To fund examiner positions from this fund can expose the state to “conflict of interest” claims. Impact of Not Funding:

Page: 33

o DFI will fall behind on its examination schedule and its statutory responsibility. o The state of Arizona will face continual liability exposure for not complying with

statutory examination requirement.

o Consumers will continue to lose money and confidence in Arizona businesses and its state government. Out of state businesses will be reluctant to enter this inadequately regulated state, and provide their services to Arizona consumers and businesses.

o Arizona businesses will lose money owed to them as unscrupulous licensees continue to steal their funds.

Decision Package / Position Detail: -------------------- ($000s) -------------------


Examiner, Journey (Enterprises Exams)

AUN08341 / 21 55.0 21.6 3.0 3.0 7.0

1 Total 55.0 21.6 3.0 3.0 7.0 Decision Package Grand Total: $89.6 * Other Expense includes $2.0K per FTE for one-time equipment costs

Page: 34

Funding Issue #2019-4: Remove One-Time Equipment Costs Background: DFI’s FY 2018 budget includes funding to hire three (3) new Financial Institutions Division Examiners. All three (3) of these new employees were funded from the Financial Services Fund. Since the additional funding included $6.0K in one-time equipment costs for these new employees, that amount must be removed from DFI’s FY 2019 appropriation. Decision Package Details: ($ thousands) General Fin’l Svcs Fund Fund Total Remove One-Time Equipment Costs: ($0.0) ($6.0) ($6.0)

Page: 35

Funding Issue #2019-5: New Licensing System Proposal: The FY 2014 through 2018 Revenue Budget Reconciliation Bills (BRB) gives DFI the authority to spend a total of $850,000 from the Receivership Revolving Fund in fiscal years 2014 through 2018 for expenditures on an electronic licensing system. Given continuing delays - caused by the vendor – there is a possibility that the project will not be completed until early in FY 2019. A revised project plan/schedule will soon be made available by the vendor. More clarity about the possible need to extend DFI’s spending authority for this project - from its Receivership Revolving Fund - will be known later in the calendar year. Expenditure Plan: Through June 30, 2017, aggregate expenditures on the new system totaled $469K. DFI’s expenditure plan for FY 2018 includes an additional $381K in development costs, assuming that the project will be completed by the end of the current fiscal year. Under this assumption, FY 2019 projected expenditures for outside and professional services must be reduced to zero. Decision Package Details: ($ thousands) Professional & Outside Services (381.0)

Page: 36

Funding Issue #2019-6: Reduce Receivership Expenditures Proposal: On June 24, 2009, the Receivership Court appointed the Superintendent as Receiver of Landmarc Capital & Investment Company (“Landmarc Capital”). Under A.R.S. § 6-135.01, a Receivership Revolving Fund (to be administered by the Department) is established. Monies in the fund are to be used to pay any costs incurred by the Department arising out of the administration of a receivership in which the Superintendent is the receiver. In FY 2017, $181K was disbursed from the Receivership Revolving Fund to pay for outside and professional services (e.g., accounting and legal services) related to the administration of the Landmarc Capital receivership. For FY 2018, $94K of expenditures is projected. Since the Landmarc Capital receivership is in the wind-down phase, FY 2019 projected expenditures for outside and professional services must be reduced by $64K to $30K. Decision Package Details: ($ thousands) Professional & Outside Services (64.0)

Page: 37

Funding Issue #2019-7: Repeal of Board of Appraisal Fund Proposal: SB 1197 (Laws 2017, Chapter 334), which was effective August 9, 2017, eliminated the Board of Appraisal Fund and transfers any amount remaining in the fund to the General Fund. Since the Board of Appraisal Fund will have no expenditures in FY 2019, the expenditure plan must be reduced to zero.

Decision Package Details: ($ thousands) Personal Services (39.1) ERE (16.9) P&O Services (22.2) In-State Travel (0.1) Other Operating Expense (1.7) Equipment (0.1) Transfers (735.0) Total (815.1)

Page: 38

Funding Issue DetailState Department of Financial InstitutionsAgency:

1 Mortgage Lending Division - Add 4 ExaminersIssue:

Expenditure CategoriesFTE

FY 20194.0

Office of SupervisionFinancial Services Fund (Appropriated)

$86.30$0.00

Program:Fund:

Calculated ERE:1998-A Uniform Allowance:

Personal Services 220.0Employee Related Expenses 86.3Subtotal Personal Services and ERE: 306.3Professional & Outside Services 0.0Travel In-State 8.0Travel Out-of-State 4.0Food 0.0Aid to Organizations & Individuals 0.0Other Operating Expenditures 32.0Equipment 8.0Capital Outlay 0.0Debt Services 0.0Cost Allocation 0.0Transfers 0.0

Program / Fund Total: 358.3

2 Money Svcs Business Division - Add 1 ExaminerIssue:


FY 20190.0


$11.80$0.00

Program:Fund:






3 Financial Services Division - Add 1 ExaminerIssue:


FY 20190.0


$11.80$0.00

Program:Fund:




4 Remove One-Time Equipment CostsIssue:


FY 20190.0


$0.00$0.00

Program:Fund:


Personal Services 0.0Employee Related Expenses 0.0Subtotal Personal Services and ERE: 0.0Professional & Outside Services 0.0Travel In-State 0.0Travel Out-of-State 0.0Food 0.0Aid to Organizations & Individuals 0.0Other Operating Expenditures 0.0Equipment (6.0)Capital Outlay 0.0Debt Services 0.0Cost Allocation 0.0Transfers 0.0

Program / Fund Total: (6.0)



5 New Licensing SystemIssue:


FY 20190.0

ReceivershipsReceivership Revolving Fund (Non-Appropriated)

$0.00$0.00

Program:Fund:

Calculated ERE:3023-N Uniform Allowance:

Personal Services 0.0Employee Related Expenses 0.0Subtotal Personal Services and ERE: 0.0Professional & Outside Services (381.0)Travel In-State 0.0Travel Out-of-State 0.0Food 0.0Aid to Organizations & Individuals 0.0Other Operating Expenditures 0.0Equipment 0.0Capital Outlay 0.0Debt Services 0.0Cost Allocation 0.0Transfers 0.0


6 Reduce Receivership ExpendituresIssue:


FY 20190.0

ReceivershipsReceivership Revolving Fund (Non-Appropriated)

$0.00$0.00

Program:Fund:

Calculated ERE:3023-N Uniform Allowance:

Personal Services 0.0Employee Related Expenses 0.0Subtotal Personal Services and ERE: 0.0Professional & Outside Services (64.0)Travel In-State 0.0Travel Out-of-State 0.0Food 0.0Aid to Organizations & Individuals 0.0Other Operating Expenditures 0.0Equipment 0.0Capital Outlay 0.0Debt Services 0.0Cost Allocation 0.0Transfers 0.0




7 Repeal of Board of Appraisal FundIssue:


FY 20190.0

SLI Real Estate AppraisalBoard of Appraisal Fund (Appropriated)

($8.40)$0.00

Program:Fund:


Personal Services (39.1)Employee Related Expenses (16.9)Subtotal Personal Services and ERE: (56.0)Professional & Outside Services (22.2)Travel In-State (0.1)Travel Out-of-State 0.0Food 0.0Aid to Organizations & Individuals 0.0Other Operating Expenditures (1.7)Equipment (0.1)Capital Outlay 0.0Debt Services 0.0Cost Allocation 0.0Transfers (735.0)



Summary of Expenditure and Budget Requestfor All Funds


Appropriated FY 2019FY 2017Actual

FY 2018 FY 2019Total RequestExpd. Plan Fund. Issue

Expenditure CategoriesFTE 69.1 69.1 4.0 73.1

Cost Center/Program:

1 Office of Supervision 3,278.4 531.5 3,809.92,373.12 Office of Regulatory Affairs 2,940.9 (815.1) 2,125.82,489.23 Receiverships 23.6 0.0 23.614.2

4,876.5 6,242.9 (283.6) 5,959.3

Personal Services 2,706.0 3,126.1 290.9 3,417.0Employee Related Expenses 1,016.4 1,251.6 112.6 1,364.2Professional and Outside Services 435.0 372.3 (22.2) 350.1Travel In-State 4.5 6.7 11.9 18.6Travel Out of State 6.2 8.0 6.0 14.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 577.3 613.1 46.3 659.4Equipment 131.2 129.1 5.9 135.0Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 736.0 (735.0) 1.0

Expenditure Categories Total: 4,876.5 6,242.9 (283.6) 5,959.3




Non-Appropriated FY 2019FY 2017Actual


Expenditure CategoriesFTE 1.0 1.0 0.0 1.0


1 Office of Supervision 859.8 0.0 859.8766.13 Receiverships 475.0 (445.0) 30.0458.7

1,224.8 1,334.8 (445.0) 889.8

Personal Services 45.0 68.0 0.0 68.0Employee Related Expenses 20.5 21.8 0.0 21.8Professional and Outside Services 1,045.1 1,108.0 (445.0) 663.0Travel In-State 40.2 50.0 0.0 50.0Travel Out of State 15.0 20.0 0.0 20.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 40.0 45.0 0.0 45.0Equipment 17.9 20.0 0.0 20.0Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 1.1 2.0 0.0 2.0

Expenditure Categories Total: 1,224.8 1,334.8 (445.0) 889.8




Agency Total for All Funds: 6,101.3 7,577.7 (728.6) 6,849.1


Summary of Expenditure and Budget Requestfor Selected Funds


FY 2019FY 2017Actual


1000 General Fund (Appropriated)Fund:

Expenditure Categories

FTE 46.1 31.4 0.0 31.4


1 Office of Supervision 1,747.4 911.4 0.0 911.4

2 Office of Regulatory Affairs 1,149.7 1,266.0 0.0 1,266.0

3 Receiverships 14.2 23.6 0.0 23.62,911.3 2,201.0 0.0 2,201.0

Personal Services 1,794.7 1,207.6 0.0 1,207.6Employee Related Expenses 679.0 492.4 0.0 492.4Professional and Outside Services 71.2 263.1 0.0 263.1Travel In-State 0.9 0.6 0.0 0.6Travel Out of State 1.3 5.0 0.0 5.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 347.7 224.7 0.0 224.7Equipment 16.5 6.6 0.0 6.6Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 1.0 0.0 1.0

Expenditure Categories Total: 2,911.3 2,201.0 0.0 2,201.0

Fund Total: 2,911.3 2,201.0 0.0 2,201.0






1998 Financial Services Fund (Appropriated)Fund:


FTE 14.0 37.7 4.0 41.7


1 Office of Supervision 625.7 2,367.0 531.5 2,898.5

2 Office of Regulatory Affairs 801.8 859.8 0.0 859.81,427.5 3,226.8 531.5 3,758.3

Personal Services 623.0 1,879.4 330.0 2,209.4Employee Related Expenses 228.2 742.3 129.5 871.8Professional and Outside Services 272.9 87.0 0.0 87.0Travel In-State 3.4 6.0 12.0 18.0Travel Out of State 0.3 3.0 6.0 9.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 187.4 386.7 48.0 434.7Equipment 112.3 122.4 6.0 128.4Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 0.0 0.0 0.0


Fund Total: 1,427.5 3,226.8 531.5 3,758.3






2126 Banking Department Revolving (Non-Appropriated)Fund:


FTE 1.0 1.0 0.0 1.0


1 Office of Supervision 765.0 859.8 0.0 859.8765.0 859.8 0.0 859.8

Personal Services 45.0 68.0 0.0 68.0Employee Related Expenses 20.5 21.8 0.0 21.8Professional and Outside Services 586.4 633.0 0.0 633.0Travel In-State 40.2 50.0 0.0 50.0Travel Out of State 15.0 20.0 0.0 20.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 40.0 45.0 0.0 45.0Equipment 17.9 20.0 0.0 20.0Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 2.0 0.0 2.0

Expenditure Categories Total: 765.0 859.8 0.0 859.8

Fund Total: 765.0 859.8 0.0 859.8






2270 Board of Appraisal Fund (Appropriated)Fund:


FTE 9.0 0.0 0.0 0.0


2 Office of Regulatory Affairs 537.7 815.1 (815.1) 0.0537.7 815.1 (815.1) 0.0

Personal Services 288.3 39.1 (39.1) 0.0Employee Related Expenses 109.2 16.9 (16.9) 0.0Professional and Outside Services 90.9 22.2 (22.2) 0.0Travel In-State 0.2 0.1 (0.1) 0.0Travel Out of State 4.6 0.0 0.0 0.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 42.2 1.7 (1.7) 0.0Equipment 2.4 0.1 (0.1) 0.0Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 735.0 (735.0) 0.0

Expenditure Categories Total: 537.7 815.1 (815.1) 0.0

Fund Total: 537.7 815.1 (815.1) 0.0






2500 IGA and ISA Fund (Non-Appropriated)Fund:


FTE 0.0 0.0 0.0 0.0


1 Office of Supervision 1.1 0.0 0.0 0.01.1 0.0 0.0 0.0



Fund Total: 1.1 0.0 0.0 0.0






3023 Receivership Revolving Fund (Non-Appropriated)Fund:


FTE 0.0 0.0 0.0 0.0


3 Receiverships 458.7 475.0 (445.0) 30.0458.7 475.0 (445.0) 30.0

Personal Services 0.0 0.0 0.0 0.0Employee Related Expenses 0.0 0.0 0.0 0.0Professional and Outside Services 458.7 475.0 (445.0) 30.0Travel In-State 0.0 0.0 0.0 0.0Travel Out of State 0.0 0.0 0.0 0.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 0.0 0.0 0.0 0.0Equipment 0.0 0.0 0.0 0.0Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 0.0 0.0 0.0


Fund Total: 458.7 475.0 (445.0) 30.0






3023 Receivership Revolving Fund (Non-Appropriated)Fund:

Agency Total for Selected Funds 6,101.3 7,577.7 (728.6) 6,849.1


Program Summary of Expenditures and Budget RequestState Department of Financial InstitutionsAgency:

Program: Office of Supervision




FTE Positions0000 38.3 38.6 4.0 42.6

Program Summary

Office of Supervision1-1 3,139.2 4,138.2 531.5 4,669.7

Program Summary Total: 3,139.2 4,138.2 531.5 4,669.7

Personal Services6000 1,448.2 2,016.2 330.0 2,346.2

Employee Related Expenses6100 528.8 796.2 129.5 925.7

Professional and Outside Services6200 707.4 737.8 0.0 737.8

Travel In-State6500 44.5 56.0 12.0 68.0

Travel Out of State6600 16.1 23.0 6.0 29.0

Food6700 0.0 0.0 0.0 0.0

Aid to Organizations and Individuals6800 0.0 0.0 0.0 0.0

Other Operating Expenses7000 313.2 420.7 48.0 468.7

Equipment8000 79.9 86.3 6.0 92.3

Capital Outlay8100 0.0 0.0 0.0 0.0

Debt Service8600 0.0 0.0 0.0 0.0

Cost Allocation9000 0.0 0.0 0.0 0.0

Transfers9100 1.1 2.0 0.0 2.0Expenditure Categories Total: 3,139.2 4,138.2 531.5 4,669.7

Fund Source

Appropriated FundsGeneral Fund (Appropriated)1000-A 1,747.4 911.4 0.0 911.4Financial Services Fund (Appropriated)1998-A 625.7 2,367.0 531.5 2,898.5

2,373.1 3,278.4 531.5 3,809.9Non-Appropriated Funds

Banking Department Revolving (Non-Appropriated)2126-N 765.0 859.8 0.0 859.8IGA and ISA Fund (Non-Appropriated)2500-N 1.1 0.0 0.0 0.0

766.1 859.8 0.0 859.8Fund Source Total: 3,139.2 4,138.2 531.5 4,669.7

All dollars are presented in thousands (not FTE).Date Printed: 8/30/2017 9:25:37 AM Page: 53

Program Group Summary of Expenditures and Budget Requestfor Selected Funds





1000-AFund: General Fund (Appropriated)

Program Expenditures

COST CENTER/PROGRAM BUDGET UNIT

Office of Supervision1-1 1,747.4 911.4 0.0 911.4

1,747.4 911.4 0.0 911.4Total

Appropriated Funding

Expenditure CategoriesFTE Positions 31.8 12.4 0.0 12.4

Personal Services 1,100.2 533.1 0.0 533.1Employee Related Expenses 406.4 213.2 0.0 213.2Professional and Outside Services 39.1 47.9 0.0 47.9Travel In-State 0.9 0.0 0.0 0.0Travel Out of State 1.1 0.0 0.0 0.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 191.3 115.1 0.0 115.1Equipment 8.4 2.1 0.0 2.1Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 0.0 0.0 0.0

Expenditure Categories Total: 1,747.4 911.4 0.0 911.4

1,747.4 911.4 0.0 911.4Fund 1000-A Total:

1,747.4 911.4 0.0 911.4Program 1 Total:







1998-AFund: Financial Services Fund (Appropriated)



Office of Supervision1-1 625.7 2,367.0 531.5 2,898.5

625.7 2,367.0 531.5 2,898.5Total



Personal Services 303.0 1,415.1 330.0 1,745.1Employee Related Expenses 101.9 561.2 129.5 690.7Professional and Outside Services 81.9 56.9 0.0 56.9Travel In-State 3.4 6.0 12.0 18.0Travel Out of State 0.0 3.0 6.0 9.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 81.9 260.6 48.0 308.6Equipment 53.6 64.2 6.0 70.2Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 0.0 0.0 0.0

Expenditure Categories Total: 625.7 2,367.0 531.5 2,898.5

625.7 2,367.0 531.5 2,898.5Fund 1998-A Total:

625.7 2,367.0 531.5 2,898.5Program 1 Total:







2126-NFund: Banking Department Revolving (Non-Appropriated)



Office of Supervision1-1 765.0 859.8 0.0 859.8

765.0 859.8 0.0 859.8Total

Non-Appropriated Funding




765.0 859.8 0.0 859.8Fund 2126-N Total:

765.0 859.8 0.0 859.8Program 1 Total:







2500-NFund: IGA and ISA Fund (Non-Appropriated)



Office of Supervision1-1 1.1 0.0 0.0 0.0

1.1 0.0 0.0 0.0Total





1.1 0.0 0.0 0.0Fund 2500-N Total:

1.1 0.0 0.0 0.0Program 1 Total:



Program Budget Unit Summary of Expenditures and Budget Requestfor All Funds

State Department of Financial InstitutionsAgency:Program: Office of Supervision



FTE0000 38.3 38.6 4.0 42.6Personal Services6000 1,448.2 2,016.2 330.0 2,346.2Employee Related Expenses6100 528.8 796.2 129.5 925.7Professional and Outside Services6200 707.4 737.8 0.0 737.8Travel In-State6500 44.5 56.0 12.0 68.0Travel Out of State6600 16.1 23.0 6.0 29.0Food6700 0.0 0.0 0.0 0.0Aid to Organizations and Individuals6800 0.0 0.0 0.0 0.0Other Operating Expenses7000 313.2 420.7 48.0 468.7Equipment8000 79.9 86.3 6.0 92.3Capital Outlay8100 0.0 0.0 0.0 0.0Debt Service8600 0.0 0.0 0.0 0.0Cost Allocation9000 0.0 0.0 0.0 0.0Transfers9100 1.1 2.0 0.0 2.0


Fund Source

Appropriated Funds1000-A 1,747.4 911.4 0.0 911.4General Fund (Appropriated)1998-A 625.7 2,367.0 531.5 2,898.5Financial Services Fund (Appropriated)

2,373.1 3,278.4 531.5 3,809.9Non-Appropriated Funds

2126-N 765.0 859.8 0.0 859.8Banking Department Revolving (Non-Appropriated)2500-N 1.1 0.0 0.0 0.0IGA and ISA Fund (Non-Appropriated)

766.1 859.8 0.0 859.8

Fund Source Total: 3,139.2 4,138.2 531.5 4,669.7


Program Budget Unit Summary of Expenditures and Budget Requestfor Selected Funds





1000-AFund: General Fund

Appropriated

0000 31.8 12.4 0.0 12.4FTE6000 1,100.2 533.1 0.0 533.1Personal Services6100 406.4 213.2 0.0 213.2Employee Related Expenses6200 39.1 47.9 0.0 47.9Professional and Outside Services6500 0.9 0.0 0.0 0.0Travel In-State6600 1.1 0.0 0.0 0.0Travel Out of State6700 0.0 0.0 0.0 0.0Food6800 0.0 0.0 0.0 0.0Aid to Organizations and Individuals7000 191.3 115.1 0.0 115.1Other Operating Expenses8000 8.4 2.1 0.0 2.1Equipment8100 0.0 0.0 0.0 0.0Capital Outlay8600 0.0 0.0 0.0 0.0Debt Service9000 0.0 0.0 0.0 0.0Cost Allocation9100 0.0 0.0 0.0 0.0Transfers

1,747.4 911.4 0.0 911.4Appropriated Total:

Fund Total: 1,747.4 911.4 0.0 911.4

Program Total For Selected Funds: 1,747.4 911.4 0.0 911.4







1998-AFund: Financial Services Fund

Appropriated

0000 5.5 25.2 4.0 29.2FTE6000 303.0 1,415.1 330.0 1,745.1Personal Services6100 101.9 561.2 129.5 690.7Employee Related Expenses6200 81.9 56.9 0.0 56.9Professional and Outside Services6500 3.4 6.0 12.0 18.0Travel In-State6600 0.0 3.0 6.0 9.0Travel Out of State6700 0.0 0.0 0.0 0.0Food6800 0.0 0.0 0.0 0.0Aid to Organizations and Individuals7000 81.9 260.6 48.0 308.6Other Operating Expenses8000 53.6 64.2 6.0 70.2Equipment8100 0.0 0.0 0.0 0.0Capital Outlay8600 0.0 0.0 0.0 0.0Debt Service9000 0.0 0.0 0.0 0.0Cost Allocation9100 0.0 0.0 0.0 0.0Transfers

625.7 2,367.0 531.5 2,898.5Appropriated Total:

Fund Total: 625.7 2,367.0 531.5 2,898.5

Program Total For Selected Funds: 625.7 2,367.0 531.5 2,898.5







2126-NFund: Banking Department Revolving Fund

Non-Appropriated

0000 1.0 1.0 0.0 1.0FTE6000 45.0 68.0 0.0 68.0Personal Services6100 20.5 21.8 0.0 21.8Employee Related Expenses6200 586.4 633.0 0.0 633.0Professional and Outside Services6500 40.2 50.0 0.0 50.0Travel In-State6600 15.0 20.0 0.0 20.0Travel Out of State6700 0.0 0.0 0.0 0.0Food6800 0.0 0.0 0.0 0.0Aid to Organizations and Individuals7000 40.0 45.0 0.0 45.0Other Operating Expenses8000 17.9 20.0 0.0 20.0Equipment8100 0.0 0.0 0.0 0.0Capital Outlay8600 0.0 0.0 0.0 0.0Debt Service9000 0.0 0.0 0.0 0.0Cost Allocation9100 0.0 2.0 0.0 2.0Transfers

765.0 859.8 0.0 859.8Non-Appropriated Total:

Fund Total: 765.0 859.8 0.0 859.8

Program Total For Selected Funds: 765.0 859.8 0.0 859.8







2500-NFund: IGA and ISA Fund

Non-Appropriated


1.1 0.0 0.0 0.0Non-Appropriated Total:

Fund Total: 1.1 0.0 0.0 0.0



Program Expenditure ScheduleState Department of Financial InstitutionsAgency:

Office of SupervisionProgram:

FY 2017 Actual

FY 2018 Expd. Plan

38.3 38.6FTE38.3 38.6Expenditure Category Total

Appropriated31.8 12.4General Fund (Appropriated)1000-A5.5 25.2Financial Services Fund (Appropriated)1998-A

37.3 37.6Non-Appropriated

1.0 1.0Banking Department Revolving (Non-Appropriated)2126-N0.0 0.0IGA and ISA Fund (Non-Appropriated)2500-N

1.0 1.038.3 38.6Fund Source Total

1,448.2 2,016.2Personal Services0.0 0.0Boards and Commissions

1,448.2 2,016.2Expenditure Category TotalAppropriated

1,100.2 533.1General Fund (Appropriated)1000-A303.0 1,415.1Financial Services Fund (Appropriated)1998-A

1,403.2 1,948.2Non-Appropriated

45.0 68.0Banking Department Revolving (Non-Appropriated)2126-N

45.0 68.01,448.2 2,016.2Fund Source Total

528.8 796.2Employee Related Expenses528.8 796.2Expenditure Category Total





737.8Professional and Outside Services0.0External Prof/Outside Serv Budg And Appn0.0External Investment Services

384.8Other External Financial Services231.2Attorney General Legal Services

0.0External Legal Services0.0External Engineer/Architect Cost - Exp0.0External Engineer/Architect Cost- Cap0.0Other Design

12.1Temporary Agency Services0.0Hospital Services0.0Other Medical Services0.0Institutional Care0.0Education And Training2.3Vendor Travel

All dollars are presented in thousands (not FTE).Date Printed: 8/30/2017 9:27:05 AM

Page: 63



FY 2017 Actual

FY 2018 Expd. Plan

0.0Professional & Outside Services Excluded from Cost Alloca0.0Vendor Travel - Non Reportable0.0External Telecom Consulting Services0.0Non - Confidential Specialist Fees0.0Confidential Specialist Fees0.0Outside Actuarial Costs

77.0Other Professional And Outside Services707.4 737.8Expenditure Category Total





44.5 56.0Travel In-State44.5 56.0Expenditure Category Total





16.1 23.0Travel Out of State16.1 23.0Expenditure Category Total





0.0 0.0Food0.0 0.0Expenditure Category Total

0.0 0.0Aid to Organizations and Individuals0.0 0.0Expenditure Category Total

420.7Other Operating Expenses0.0Other Operating Expenditures Budg Approp0.0Other Operating Expenditures Excluded from Cost Allocati5.5Risk Management Charges To State Agency


Page: 64



FY 2017 Actual

FY 2018 Expd. Plan

0.0Risk Management Deductible - Indemnity0.0Risk Management Deductible - Legal0.0Risk Management Deductible - Medical0.0Risk Management Deductible - Other0.0Gen Liab- Non Physical-Taxable- Self Ins0.0Gross Proceeds Payments To Attorneys0.0General Liability- Non-Taxable- Self Ins0.0Medical Malpractice - Self-Insured0.0Automobile Liability - Self Insured0.0General Property Damage - Self- Insured0.0Automobile Physical Damage-Self Insured0.0Liability Insurance Premiums0.0Property Insurance Premiums0.0Workers Compensation Benefit Payments0.0Self Insurance - Administrative Fees0.0Self Insurance - Premiums0.0Self Insurance - Claim Payments0.0Self Insurance - Pharmacy Claims0.0Premium Tax On Altcs0.0Other Insurance-Related Charges0.0Internal Service Data Processing

33.6Internal Service Data Proc- Pc/Lan0.0External Programming-Mainframe/Legacy0.0External Programming- Pc/Lan/Serv/Web0.0External Data Entry

46.8Othr External Data Proc-Mainframe/Legacy0.0Othr External Data Proc-Pc/Lan/Serv/Web0.0Internal Service Telecommunications0.0External Telecom Long Distance-In-State0.0External Telecom Long Distance-Out-State

47.7Other External Telecommunication Service0.0Electricity0.0Sanitation Waste Disposal0.0Water0.0Gas And Fuel Oil For Buildings0.0Other Utilities

85.7Building Rent Charges To State Agencies0.0Priv Lease To Own Bld Rent Chrgs To Agy0.0Cert Of Part Bld Rent Chrgs To Agy0.0Rental Of Land And Buildings0.0Rental Of Computer Equipment0.0Rental Of Other Machinery And Equipment1.3Miscellaneous Rent0.0Interest On Overdue Payments0.0All Other Interest Payments0.0Internal Acct/Budg/Financial Svcs0.0Other Internal Services0.0Repair And Maintenance - Buildings0.0Repair And Maintenance - Vehicles0.0Repair And Maint - Mainframe And Legacy0.0Repair And Maint-Pc/Lan/Serv/Web


Page: 65



FY 2017 Actual

FY 2018 Expd. Plan

2.3Repair And Maintenance - Other Equipment3.7Other Repair And Maintenance0.0Software Support And Maintenance0.0Uniforms0.0Inmate Clothing0.0Security Supplies3.0Office Supplies4.0Computer Supplies0.0Housekeeping Supplies0.0Bedding And Bath Supplies0.0Drugs And Medicine Supplies0.0Medical Supplies0.0Dental Supplies0.0Automotive And Transportation Fuels0.0Automotive Lubricants And Supplies0.0Rpr And Maint Supplies-Not Auto Or Build0.0Repair And Maintenance Supplies-Building0.0Other Operating Supplies0.0Publications0.0Aggregate Withheld Or Paid Commissions0.0Lottery Prizes0.0Material for Further Processing0.0Other Resale Supplies0.0Loss On Sales Of Capital Assets0.0Employee Tuition Reimbursement-Graduate0.0Employee Tuition Reimb Under-Grad/Other

16.9Conference Registration-Attendance Fees0.0Other Education And Training Costs0.0Advertising0.3Internal Printing0.0External Printing0.0Photography2.5Postage And Delivery0.0Distribution To State Universities0.0Other Intrastate Distributions0.0Awards0.0Entertainment And Promotional Items

46.7Dues12.9Books- Subscriptions And Publications0.0Costs For Digital Image Or Microfilm0.0Revolving Fund Advances0.0Credit Card Fees Over Approved Limit0.0Relief Bill Expenditures0.0Surplus Property Distr To State Agencies0.0Judgments - Damages0.0ICA Payments to Claimants Confidential0.0Jdgmnt-Confidential Restitution To Indiv0.0Judgments - Non-Confidential Restitution0.0Judgments - Punitive And Compensatory0.0Pmts Made to Resolve/Disputes/Avoid Costs of Litigation0.0Pmts For Contracted State Inmate Labor


Page: 66



FY 2017 Actual

FY 2018 Expd. Plan

0.0Payments To State Inmates0.0Bad Debt Expense0.0Interview Expense0.0Employee Relocations-Nontaxable0.0Employee Relocations-Taxable0.0Non-Confidential Invest/Legal/Law Enf0.0Conf/Sensitive Invest/Legal/Undercover0.0Fingerprinting, Background Checks, Etc.0.3Other Miscellaneous Operating

313.2 420.7Expenditure Category TotalAppropriated

191.3 115.1General Fund (Appropriated)1000-A81.9 260.6Financial Services Fund (Appropriated)1998-A




86.3Current Year Expenditures0.0Capital Equipment Budget And Approp0.0Vehicles Capital Purchase0.0Vehicles Capital Leases0.0Furniture Capital Purchase0.0Depreciable Works Of Art & Hist Treas/Coll Capital Purcha0.0Non Depr Works Of Art & Hist Treas/Coll Cap Purchase0.0Furniture Capital Leases0.0Computer Equipment Capital Purchase0.0Computer Equipment Capital Lease0.0Telecommunication Equip-Capital Purchase0.0Telecommunication Equip-Capital Lease0.0Other Equipment Capital Purchase0.0Other Equipment Capital Leases0.0Purchased Or Licensed Software-Website0.0Internally Generated Software-Website0.0Development in Progress0.0Right-Of-Way/Easement/Extraction Rights0.0Oth Int Assets purchased, licensed or internally generate0.0Other intangible assets acquired by capital lease0.0Other Capital Asset Purchases0.0Leasehold Improvement-Capital Purchase0.0Other Capital Asset Leases0.0Non-Capital Equip Budget And Approp0.0Vehicles Non-Capital Purchase0.0Vehicles Non-Capital Leases2.4Furniture Non-Capital Purchase0.0Works Of Art And Hist Treas-Non Capital0.0Furniture Non-Capital Leases0.0Computer Equipment Non-Capital Purchase0.0Computer Equipment Non-Capital Lease0.0Telecomm Equip Non-Capital Purchase


Page: 67



FY 2017 Actual

FY 2018 Expd. Plan

0.0Telecomm Equip Non-Capital Leases22.4Other Equipment Non-Capital Purchase0.0Weapons Non-Capital Purchase

53.6Other Equipment Non-Capital Lease0.0Purchased Or Licensed Software/Website0.0Internally Generated Software/Website1.5LICENSES AND PERMITS0.0Right-Of-Way/Easement/Extraction Exp0.0Noncapital Software/Web By Capital Lease0.0Other Intangible Assets Acquired by Capital Lease0.0Other Long Lived Tangible Assets to be Expenses0.0Non-Capital Equipment Excluded from Cost Allocation






0.0 0.0Capital Outlay0.0 0.0Expenditure Category Total

0.0 0.0Debt Service0.0 0.0Expenditure Category Total

0.0 0.0Cost Allocation0.0 0.0Expenditure Category Total

1.1 2.0Transfers1.1 2.0Expenditure Category Total

Non-Appropriated0.0 2.0Banking Department Revolving (Non-Appropriated)2126-N1.1 0.0IGA and ISA Fund (Non-Appropriated)2500-N


Combined Regular & Elected Positions At/Above FICA Maximum of $127,200

FTE's not eligible for Total Personal

Retirement System FTEPersonalServices

Employee Retirement Coverage

Fund#

State Retirement System 12.4 533.1 1000-A

State Retirement System 25.2 1,415.1 1998-A

State Retirement System 1.0 68.0 2126-N


Page: 68



FY 2017 Actual

FY 2018 Expd. Plan

0.00.0 0.0

Health, Dental & LifeFTE Services


Page: 69


Program: Office of Regulatory Affairs




FTE Positions0000 31.3 31.0 0.0 31.0

Program Summary

Office of Regulatory Affairs2-1 1,951.5 1,443.4 0.0 1,443.4

SLI Real Estate Appraisal2-2 537.7 1,497.5 (815.1) 682.4

Program Summary Total: 2,489.2 2,940.9 (815.1) 2,125.8

Personal Services6000 1,292.3 1,161.0 (39.1) 1,121.9

Employee Related Expenses6100 504.4 470.5 (16.9) 453.6

Professional and Outside Services6200 314.0 267.5 (22.2) 245.3

Travel In-State6500 0.2 0.7 (0.1) 0.6


Food6700 0.0 0.0 0.0 0.0


Other Operating Expenses7000 304.1 237.4 (1.7) 235.7

Equipment8000 69.2 62.8 (0.1) 62.7

Capital Outlay8100 0.0 0.0 0.0 0.0

Debt Service8600 0.0 0.0 0.0 0.0


Transfers9100 0.0 736.0 (735.0) 1.0Expenditure Categories Total: 2,489.2 2,940.9 (815.1) 2,125.8

Fund Source

Appropriated FundsGeneral Fund (Appropriated)1000-A 1,149.7 1,266.0 0.0 1,266.0Financial Services Fund (Appropriated)1998-A 801.8 859.8 0.0 859.8Board of Appraisal Fund (Appropriated)2270-A 537.7 815.1 (815.1) 0.0

2,489.2 2,940.9 (815.1) 2,125.8Fund Source Total: 2,489.2 2,940.9 (815.1) 2,125.8










Office of Regulatory Affairs2-1 1,149.7 583.6 0.0 583.6SLI Real Estate Appraisal2-2 0.0 682.4 0.0 682.4

1,149.7 1,266.0 0.0 1,266.0Total





1,149.7 1,266.0 0.0 1,266.0Fund 1000-A Total:

1,149.7 1,266.0 0.0 1,266.0Program 2 Total:







1998-AFund: Financial Services Fund (Appropriated)



Office of Regulatory Affairs2-1 801.8 859.8 0.0 859.8

801.8 859.8 0.0 859.8Total





801.8 859.8 0.0 859.8Fund 1998-A Total:

801.8 859.8 0.0 859.8Program 2 Total:







2270-AFund: Board of Appraisal Fund (Appropriated)



SLI Real Estate Appraisal2-2 537.7 815.1 (815.1) 0.0

537.7 815.1 (815.1) 0.0Total



Personal Services 288.3 39.1 (39.1) 0.0Employee Related Expenses 109.2 16.9 (16.9) 0.0Professional and Outside Services 90.9 22.2 (22.2) 0.0Travel In-State 0.2 0.1 (0.1) 0.0Travel Out of State 4.6 0.0 0.0 0.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 42.2 1.7 (1.7) 0.0Equipment 2.4 0.1 (0.1) 0.0Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 735.0 (735.0) 0.0


537.7 815.1 (815.1) 0.0Fund 2270-A Total:

537.7 815.1 (815.1) 0.0Program 2 Total:




State Department of Financial InstitutionsAgency:Program: Office of Regulatory Affairs



FTE0000 22.3 22.0 0.0 22.0Personal Services6000 1,004.0 822.5 0.0 822.5Employee Related Expenses6100 395.2 324.3 0.0 324.3Professional and Outside Services6200 223.1 46.0 0.0 46.0Travel In-State6500 0.0 0.0 0.0 0.0Travel Out of State6600 0.5 0.0 0.0 0.0Food6700 0.0 0.0 0.0 0.0Aid to Organizations and Individuals6800 0.0 0.0 0.0 0.0Other Operating Expenses7000 261.9 190.3 0.0 190.3Equipment8000 66.8 60.3 0.0 60.3Capital Outlay8100 0.0 0.0 0.0 0.0Debt Service8600 0.0 0.0 0.0 0.0Cost Allocation9000 0.0 0.0 0.0 0.0Transfers9100 0.0 0.0 0.0 0.0


Fund Source

Appropriated Funds1000-A 1,149.7 583.6 0.0 583.6General Fund (Appropriated)1998-A 801.8 859.8 0.0 859.8Financial Services Fund (Appropriated)

1,951.5 1,443.4 0.0 1,443.4

Fund Source Total: 1,951.5 1,443.4 0.0 1,443.4








Appropriated


1,149.7 583.6 0.0 583.6Appropriated Total:

Fund Total: 1,149.7 583.6 0.0 583.6

Program Total For Selected Funds: 1,149.7 583.6 0.0 583.6







1998-AFund: Financial Services Fund

Appropriated


801.8 859.8 0.0 859.8Appropriated Total:

Fund Total: 801.8 859.8 0.0 859.8




Office of Regulatory AffairsProgram:

FY 2017 Actual

FY 2018 Expd. Plan




1,004.0 822.5Personal Services0.0 0.0Boards and Commissions

1,004.0 822.5Expenditure Category TotalAppropriated


1,004.0 822.51,004.0 822.5Fund Source Total




46.0Professional and Outside Services0.0External Prof/Outside Serv Budg And Appn0.0External Investment Services0.0Other External Financial Services

55.0Attorney General Legal Services0.0External Legal Services0.0External Engineer/Architect Cost - Exp0.0External Engineer/Architect Cost- Cap0.0Other Design

86.3Temporary Agency Services0.0Hospital Services0.0Other Medical Services0.0Institutional Care0.0Education And Training0.0Vendor Travel0.0Professional & Outside Services Excluded from Cost Alloca0.0Vendor Travel - Non Reportable0.0External Telecom Consulting Services0.0Non - Confidential Specialist Fees0.0Confidential Specialist Fees0.0Outside Actuarial Costs

81.8Other Professional And Outside Services


Page: 77



FY 2017 Actual

FY 2018 Expd. Plan










190.3Other Operating Expenses0.0Other Operating Expenditures Budg Approp0.0Other Operating Expenditures Excluded from Cost Allocati6.3Risk Management Charges To State Agency0.0Risk Management Deductible - Indemnity0.0Risk Management Deductible - Legal0.0Risk Management Deductible - Medical0.0Risk Management Deductible - Other0.0Gen Liab- Non Physical-Taxable- Self Ins0.0Gross Proceeds Payments To Attorneys0.0General Liability- Non-Taxable- Self Ins0.0Medical Malpractice - Self-Insured0.0Automobile Liability - Self Insured0.0General Property Damage - Self- Insured0.0Automobile Physical Damage-Self Insured0.0Liability Insurance Premiums0.0Property Insurance Premiums0.0Workers Compensation Benefit Payments0.0Self Insurance - Administrative Fees0.0Self Insurance - Premiums0.0Self Insurance - Claim Payments0.0Self Insurance - Pharmacy Claims0.0Premium Tax On Altcs0.0Other Insurance-Related Charges0.0Internal Service Data Processing


Page: 78



FY 2017 Actual

FY 2018 Expd. Plan

37.5Internal Service Data Proc- Pc/Lan0.0External Programming-Mainframe/Legacy0.0External Programming- Pc/Lan/Serv/Web0.0External Data Entry

46.8Othr External Data Proc-Mainframe/Legacy0.0Othr External Data Proc-Pc/Lan/Serv/Web0.0Internal Service Telecommunications0.0External Telecom Long Distance-In-State0.0External Telecom Long Distance-Out-State

39.3Other External Telecommunication Service0.0Electricity0.0Sanitation Waste Disposal0.0Water0.0Gas And Fuel Oil For Buildings0.0Other Utilities

97.7Building Rent Charges To State Agencies0.0Priv Lease To Own Bld Rent Chrgs To Agy0.0Cert Of Part Bld Rent Chrgs To Agy0.0Rental Of Land And Buildings0.0Rental Of Computer Equipment0.0Rental Of Other Machinery And Equipment2.2Miscellaneous Rent0.0Interest On Overdue Payments0.0All Other Interest Payments0.0Internal Acct/Budg/Financial Svcs0.0Other Internal Services0.0Repair And Maintenance - Buildings0.0Repair And Maintenance - Vehicles0.0Repair And Maint - Mainframe And Legacy0.0Repair And Maint-Pc/Lan/Serv/Web2.3Repair And Maintenance - Other Equipment4.3Other Repair And Maintenance0.0Software Support And Maintenance0.0Uniforms0.0Inmate Clothing0.0Security Supplies3.6Office Supplies4.3Computer Supplies0.0Housekeeping Supplies0.0Bedding And Bath Supplies0.0Drugs And Medicine Supplies0.0Medical Supplies0.0Dental Supplies0.0Automotive And Transportation Fuels0.0Automotive Lubricants And Supplies0.0Rpr And Maint Supplies-Not Auto Or Build0.0Repair And Maintenance Supplies-Building0.0Other Operating Supplies0.0Publications0.0Aggregate Withheld Or Paid Commissions0.0Lottery Prizes


Page: 79



FY 2017 Actual

FY 2018 Expd. Plan

0.0Material for Further Processing0.0Other Resale Supplies0.0Loss On Sales Of Capital Assets0.0Employee Tuition Reimbursement-Graduate0.0Employee Tuition Reimb Under-Grad/Other0.4Conference Registration-Attendance Fees0.0Other Education And Training Costs0.0Advertising0.7Internal Printing0.0External Printing0.0Photography3.3Postage And Delivery0.0Distribution To State Universities0.0Other Intrastate Distributions0.0Awards0.0Entertainment And Promotional Items0.0Dues

12.6Books- Subscriptions And Publications0.0Costs For Digital Image Or Microfilm0.0Revolving Fund Advances0.5Credit Card Fees Over Approved Limit0.0Relief Bill Expenditures0.0Surplus Property Distr To State Agencies0.0Judgments - Damages0.0ICA Payments to Claimants Confidential0.0Jdgmnt-Confidential Restitution To Indiv0.0Judgments - Non-Confidential Restitution0.0Judgments - Punitive And Compensatory0.0Pmts Made to Resolve/Disputes/Avoid Costs of Litigation0.0Pmts For Contracted State Inmate Labor0.0Payments To State Inmates0.0Bad Debt Expense0.0Interview Expense0.0Employee Relocations-Nontaxable0.0Employee Relocations-Taxable0.0Non-Confidential Invest/Legal/Law Enf0.0Conf/Sensitive Invest/Legal/Undercover0.0Fingerprinting, Background Checks, Etc.0.1Other Miscellaneous Operating




60.3Current Year Expenditures0.0Capital Equipment Budget And Approp0.0Vehicles Capital Purchase0.0Vehicles Capital Leases0.0Furniture Capital Purchase


Page: 80



FY 2017 Actual

FY 2018 Expd. Plan

0.0Depreciable Works Of Art & Hist Treas/Coll Capital Purcha0.0Non Depr Works Of Art & Hist Treas/Coll Cap Purchase0.0Furniture Capital Leases0.0Computer Equipment Capital Purchase0.0Computer Equipment Capital Lease0.0Telecommunication Equip-Capital Purchase0.0Telecommunication Equip-Capital Lease0.0Other Equipment Capital Purchase0.0Other Equipment Capital Leases0.0Purchased Or Licensed Software-Website0.0Internally Generated Software-Website0.0Development in Progress0.0Right-Of-Way/Easement/Extraction Rights0.0Oth Int Assets purchased, licensed or internally generate0.0Other intangible assets acquired by capital lease0.0Other Capital Asset Purchases0.0Leasehold Improvement-Capital Purchase0.0Other Capital Asset Leases0.0Non-Capital Equip Budget And Approp0.0Vehicles Non-Capital Purchase0.0Vehicles Non-Capital Leases4.5Furniture Non-Capital Purchase0.0Works Of Art And Hist Treas-Non Capital0.0Furniture Non-Capital Leases0.0Computer Equipment Non-Capital Purchase0.0Computer Equipment Non-Capital Lease0.0Telecomm Equip Non-Capital Purchase0.0Telecomm Equip Non-Capital Leases7.4Other Equipment Non-Capital Purchase0.0Weapons Non-Capital Purchase

53.6Other Equipment Non-Capital Lease0.0Purchased Or Licensed Software/Website0.0Internally Generated Software/Website1.3LICENSES AND PERMITS0.0Right-Of-Way/Easement/Extraction Exp0.0Noncapital Software/Web By Capital Lease0.0Other Intangible Assets Acquired by Capital Lease0.0Other Long Lived Tangible Assets to be Expenses0.0Non-Capital Equipment Excluded from Cost Allocation





0.0 0.0Debt Service


Page: 81



FY 2017 Actual

FY 2018 Expd. Plan

0.0 0.0Expenditure Category Total





Fund#




Page: 82



State Department of Financial InstitutionsAgency:Program: SLI Real Estate Appraisal



FTE0000 9.0 9.0 0.0 9.0Personal Services6000 288.3 338.5 (39.1) 299.4Employee Related Expenses6100 109.2 146.2 (16.9) 129.3Professional and Outside Services6200 90.9 221.5 (22.2) 199.3Travel In-State6500 0.2 0.7 (0.1) 0.6Travel Out of State6600 4.6 5.0 0.0 5.0Food6700 0.0 0.0 0.0 0.0Aid to Organizations and Individuals6800 0.0 0.0 0.0 0.0Other Operating Expenses7000 42.2 47.1 (1.7) 45.4Equipment8000 2.4 2.5 (0.1) 2.4Capital Outlay8100 0.0 0.0 0.0 0.0Debt Service8600 0.0 0.0 0.0 0.0Cost Allocation9000 0.0 0.0 0.0 0.0Transfers9100 0.0 736.0 (735.0) 1.0

Expenditure Categories Total: 537.7 1,497.5 (815.1) 682.4

Fund Source

Appropriated Funds1000-A 0.0 682.4 0.0 682.4General Fund (Appropriated)2270-A 537.7 815.1 (815.1) 0.0Board of Appraisal Fund (Appropriated)

537.7 1,497.5 (815.1) 682.4

Fund Source Total: 537.7 1,497.5 (815.1) 682.4






Program: SLI Real Estate Appraisal


Appropriated



Fund Total: 0.0 682.4 0.0 682.4







Program: SLI Real Estate Appraisal

2270-AFund: Board of Appraisal Fund

Appropriated

0000 9.0 0.0 0.0 0.0FTE6000 288.3 39.1 (39.1) 0.0Personal Services6100 109.2 16.9 (16.9) 0.0Employee Related Expenses6200 90.9 22.2 (22.2) 0.0Professional and Outside Services6500 0.2 0.1 (0.1) 0.0Travel In-State6600 4.6 0.0 0.0 0.0Travel Out of State6700 0.0 0.0 0.0 0.0Food6800 0.0 0.0 0.0 0.0Aid to Organizations and Individuals7000 42.2 1.7 (1.7) 0.0Other Operating Expenses8000 2.4 0.1 (0.1) 0.0Equipment8100 0.0 0.0 0.0 0.0Capital Outlay8600 0.0 0.0 0.0 0.0Debt Service9000 0.0 0.0 0.0 0.0Cost Allocation9100 0.0 735.0 (735.0) 0.0Transfers

537.7 815.1 (815.1) 0.0Appropriated Total:

Fund Total: 537.7 815.1 (815.1) 0.0

Program Total For Selected Funds: 537.7 815.1 (815.1) 0.0



SLI Real Estate AppraisalProgram:

FY 2017 Actual

FY 2018 Expd. Plan


Appropriated0.0 9.0General Fund (Appropriated)1000-A9.0 0.0Board of Appraisal Fund (Appropriated)2270-A


288.3 338.5Personal Services0.0 0.0Boards and Commissions


0.0 299.4General Fund (Appropriated)1000-A288.3 39.1Board of Appraisal Fund (Appropriated)2270-A



Appropriated0.0 129.3General Fund (Appropriated)1000-A

109.2 16.9Board of Appraisal Fund (Appropriated)2270-A



90.9Other External Financial Services0.0Attorney General Legal Services0.0External Legal Services0.0External Engineer/Architect Cost - Exp0.0External Engineer/Architect Cost- Cap0.0Other Design0.0Temporary Agency Services0.0Hospital Services0.0Other Medical Services0.0Institutional Care0.0Education And Training0.0Vendor Travel0.0Professional & Outside Services Excluded from Cost Alloca0.0Vendor Travel - Non Reportable0.0External Telecom Consulting Services0.0Non - Confidential Specialist Fees0.0Confidential Specialist Fees0.0Outside Actuarial Costs0.0Other Professional And Outside Services


Page: 86



FY 2017 Actual

FY 2018 Expd. Plan












47.1Other Operating Expenses0.0Other Operating Expenditures Budg Approp0.0Other Operating Expenditures Excluded from Cost Allocati1.0Risk Management Charges To State Agency0.0Risk Management Deductible - Indemnity0.0Risk Management Deductible - Legal0.0Risk Management Deductible - Medical0.0Risk Management Deductible - Other0.0Gen Liab- Non Physical-Taxable- Self Ins0.0Gross Proceeds Payments To Attorneys0.0General Liability- Non-Taxable- Self Ins0.0Medical Malpractice - Self-Insured0.0Automobile Liability - Self Insured0.0General Property Damage - Self- Insured0.0Automobile Physical Damage-Self Insured0.0Liability Insurance Premiums0.0Property Insurance Premiums0.0Workers Compensation Benefit Payments0.0Self Insurance - Administrative Fees0.0Self Insurance - Premiums


Page: 87



FY 2017 Actual

FY 2018 Expd. Plan

0.0Self Insurance - Claim Payments0.0Self Insurance - Pharmacy Claims0.0Premium Tax On Altcs0.0Other Insurance-Related Charges0.0Internal Service Data Processing7.6Internal Service Data Proc- Pc/Lan0.0External Programming-Mainframe/Legacy0.0External Programming- Pc/Lan/Serv/Web0.0External Data Entry0.0Othr External Data Proc-Mainframe/Legacy0.0Othr External Data Proc-Pc/Lan/Serv/Web0.0Internal Service Telecommunications0.0External Telecom Long Distance-In-State0.0External Telecom Long Distance-Out-State5.4Other External Telecommunication Service0.0Electricity0.0Sanitation Waste Disposal0.0Water0.0Gas And Fuel Oil For Buildings0.0Other Utilities

15.0Building Rent Charges To State Agencies0.0Priv Lease To Own Bld Rent Chrgs To Agy0.0Cert Of Part Bld Rent Chrgs To Agy0.0Rental Of Land And Buildings0.0Rental Of Computer Equipment0.0Rental Of Other Machinery And Equipment1.3Miscellaneous Rent0.0Interest On Overdue Payments0.0All Other Interest Payments0.0Internal Acct/Budg/Financial Svcs0.0Other Internal Services0.0Repair And Maintenance - Buildings0.0Repair And Maintenance - Vehicles0.0Repair And Maint - Mainframe And Legacy0.0Repair And Maint-Pc/Lan/Serv/Web0.0Repair And Maintenance - Other Equipment3.8Other Repair And Maintenance0.0Software Support And Maintenance0.0Uniforms0.0Inmate Clothing0.0Security Supplies0.5Office Supplies0.8Computer Supplies0.0Housekeeping Supplies0.0Bedding And Bath Supplies0.0Drugs And Medicine Supplies0.0Medical Supplies0.0Dental Supplies0.0Automotive And Transportation Fuels0.0Automotive Lubricants And Supplies0.0Rpr And Maint Supplies-Not Auto Or Build


Page: 88



FY 2017 Actual

FY 2018 Expd. Plan

0.0Repair And Maintenance Supplies-Building0.0Other Operating Supplies0.0Publications0.0Aggregate Withheld Or Paid Commissions0.0Lottery Prizes0.0Material for Further Processing0.0Other Resale Supplies0.0Loss On Sales Of Capital Assets0.0Employee Tuition Reimbursement-Graduate0.0Employee Tuition Reimb Under-Grad/Other4.0Conference Registration-Attendance Fees0.0Other Education And Training Costs0.0Advertising0.0Internal Printing0.0External Printing0.0Photography0.4Postage And Delivery0.0Distribution To State Universities0.0Other Intrastate Distributions0.0Awards0.0Entertainment And Promotional Items0.8Dues0.1Books- Subscriptions And Publications0.0Costs For Digital Image Or Microfilm0.0Revolving Fund Advances1.5Credit Card Fees Over Approved Limit0.0Relief Bill Expenditures0.0Surplus Property Distr To State Agencies0.0Judgments - Damages0.0ICA Payments to Claimants Confidential0.0Jdgmnt-Confidential Restitution To Indiv0.0Judgments - Non-Confidential Restitution0.0Judgments - Punitive And Compensatory0.0Pmts Made to Resolve/Disputes/Avoid Costs of Litigation0.0Pmts For Contracted State Inmate Labor0.0Payments To State Inmates0.0Bad Debt Expense0.0Interview Expense0.0Employee Relocations-Nontaxable0.0Employee Relocations-Taxable0.0Non-Confidential Invest/Legal/Law Enf0.0Conf/Sensitive Invest/Legal/Undercover0.0Fingerprinting, Background Checks, Etc.0.0Other Miscellaneous Operating





Page: 89



FY 2017 Actual

FY 2018 Expd. Plan

2.5Current Year Expenditures0.0Capital Equipment Budget And Approp0.0Vehicles Capital Purchase0.0Vehicles Capital Leases0.0Furniture Capital Purchase0.0Depreciable Works Of Art & Hist Treas/Coll Capital Purcha0.0Non Depr Works Of Art & Hist Treas/Coll Cap Purchase0.0Furniture Capital Leases0.0Computer Equipment Capital Purchase0.0Computer Equipment Capital Lease0.0Telecommunication Equip-Capital Purchase0.0Telecommunication Equip-Capital Lease0.0Other Equipment Capital Purchase0.0Other Equipment Capital Leases0.0Purchased Or Licensed Software-Website0.0Internally Generated Software-Website0.0Development in Progress0.0Right-Of-Way/Easement/Extraction Rights0.0Oth Int Assets purchased, licensed or internally generate0.0Other intangible assets acquired by capital lease0.0Other Capital Asset Purchases0.0Leasehold Improvement-Capital Purchase0.0Other Capital Asset Leases0.0Non-Capital Equip Budget And Approp0.0Vehicles Non-Capital Purchase0.0Vehicles Non-Capital Leases0.0Furniture Non-Capital Purchase0.0Works Of Art And Hist Treas-Non Capital0.0Furniture Non-Capital Leases1.0Computer Equipment Non-Capital Purchase0.0Computer Equipment Non-Capital Lease0.0Telecomm Equip Non-Capital Purchase0.0Telecomm Equip Non-Capital Leases1.4Other Equipment Non-Capital Purchase0.0Weapons Non-Capital Purchase0.0Other Equipment Non-Capital Lease0.0Purchased Or Licensed Software/Website0.0Internally Generated Software/Website0.0LICENSES AND PERMITS0.0Right-Of-Way/Easement/Extraction Exp0.0Noncapital Software/Web By Capital Lease0.0Other Intangible Assets Acquired by Capital Lease0.0Other Long Lived Tangible Assets to be Expenses0.0Non-Capital Equipment Excluded from Cost Allocation2.4 2.5Expenditure Category Total




Page: 90



FY 2017 Actual

FY 2018 Expd. Plan







Combined Regular & Elected Positions At/Above FICA Maximum of $127,200

0.00.0 0.0

FTE's not eligible for Health, Dental & Life

Total FTE

Personal Services



Fund#




Page: 91


Program: Receiverships




FTE Positions0000 0.5 0.5 0.0 0.5

Program Summary

Receiverships3-1 472.9 498.6 (445.0) 53.6

Program Summary Total: 472.9 498.6 (445.0) 53.6

Personal Services6000 10.5 16.9 0.0 16.9

Employee Related Expenses6100 3.7 6.7 0.0 6.7

Professional and Outside Services6200 458.7 475.0 (445.0) 30.0

Travel In-State6500 0.0 0.0 0.0 0.0


Food6700 0.0 0.0 0.0 0.0


Other Operating Expenses7000 0.0 0.0 0.0 0.0

Equipment8000 0.0 0.0 0.0 0.0

Capital Outlay8100 0.0 0.0 0.0 0.0

Debt Service8600 0.0 0.0 0.0 0.0


Transfers9100 0.0 0.0 0.0 0.0Expenditure Categories Total: 472.9 498.6 (445.0) 53.6

Fund Source

Appropriated FundsGeneral Fund (Appropriated)1000-A 14.2 23.6 0.0 23.6

14.2 23.6 0.0 23.6Non-Appropriated Funds

Receivership Revolving Fund (Non-Appropriated)3023-N 458.7 475.0 (445.0) 30.0

458.7 475.0 (445.0) 30.0Fund Source Total: 472.9 498.6 (445.0) 53.6










Receiverships3-1 14.2 23.6 0.0 23.6

14.2 23.6 0.0 23.6Total





14.2 23.6 0.0 23.6Fund 1000-A Total:

14.2 23.6 0.0 23.6Program 3 Total:







3023-NFund: Receivership Revolving Fund (Non-Appropriated)



Receiverships3-1 458.7 475.0 (445.0) 30.0

458.7 475.0 (445.0) 30.0Total



Personal Services 0.0 0.0 0.0 0.0Employee Related Expenses 0.0 0.0 0.0 0.0Professional and Outside Services 458.7 475.0 (445.0) 30.0Travel In-State 0.0 0.0 0.0 0.0Travel Out of State 0.0 0.0 0.0 0.0Food 0.0 0.0 0.0 0.0Aid to Organizations and Individuals 0.0 0.0 0.0 0.0Other Operating Expenses 0.0 0.0 0.0 0.0Equipment 0.0 0.0 0.0 0.0Capital Outlay 0.0 0.0 0.0 0.0Debt Service 0.0 0.0 0.0 0.0Cost Allocation 0.0 0.0 0.0 0.0Transfers 0.0 0.0 0.0 0.0


458.7 475.0 (445.0) 30.0Fund 3023-N Total:

458.7 475.0 (445.0) 30.0Program 3 Total:




State Department of Financial InstitutionsAgency:Program: Receiverships



FTE0000 0.5 0.5 0.0 0.5Personal Services6000 10.5 16.9 0.0 16.9Employee Related Expenses6100 3.7 6.7 0.0 6.7Professional and Outside Services6200 458.7 475.0 (445.0) 30.0Travel In-State6500 0.0 0.0 0.0 0.0Travel Out of State6600 0.0 0.0 0.0 0.0Food6700 0.0 0.0 0.0 0.0Aid to Organizations and Individuals6800 0.0 0.0 0.0 0.0Other Operating Expenses7000 0.0 0.0 0.0 0.0Equipment8000 0.0 0.0 0.0 0.0Capital Outlay8100 0.0 0.0 0.0 0.0Debt Service8600 0.0 0.0 0.0 0.0Cost Allocation9000 0.0 0.0 0.0 0.0Transfers9100 0.0 0.0 0.0 0.0


Fund Source

Appropriated Funds1000-A 14.2 23.6 0.0 23.6General Fund (Appropriated)

14.2 23.6 0.0 23.6Non-Appropriated Funds

3023-N 458.7 475.0 (445.0) 30.0Receivership Revolving Fund (Non-Appropriated)

458.7 475.0 (445.0) 30.0

Fund Source Total: 472.9 498.6 (445.0) 53.6








Appropriated



Fund Total: 14.2 23.6 0.0 23.6








3023-NFund: Receivership Revolving Fund

Non-Appropriated

0000 0.0 0.0 0.0 0.0FTE6000 0.0 0.0 0.0 0.0Personal Services6100 0.0 0.0 0.0 0.0Employee Related Expenses6200 458.7 475.0 (445.0) 30.0Professional and Outside Services6500 0.0 0.0 0.0 0.0Travel In-State6600 0.0 0.0 0.0 0.0Travel Out of State6700 0.0 0.0 0.0 0.0Food6800 0.0 0.0 0.0 0.0Aid to Organizations and Individuals7000 0.0 0.0 0.0 0.0Other Operating Expenses8000 0.0 0.0 0.0 0.0Equipment8100 0.0 0.0 0.0 0.0Capital Outlay8600 0.0 0.0 0.0 0.0Debt Service9000 0.0 0.0 0.0 0.0Cost Allocation9100 0.0 0.0 0.0 0.0Transfers

458.7 475.0 (445.0) 30.0Non-Appropriated Total:

Fund Total: 458.7 475.0 (445.0) 30.0

Program Total For Selected Funds: 458.7 475.0 (445.0) 30.0



ReceivershipsProgram:

FY 2017 Actual

FY 2018 Expd. Plan




10.5 16.9Personal Services0.0 0.0Boards and Commissions


10.5 16.9General Fund (Appropriated)1000-A






89.3Other External Financial Services0.0Attorney General Legal Services

92.1External Legal Services0.0External Engineer/Architect Cost - Exp0.0External Engineer/Architect Cost- Cap0.0Other Design0.0Temporary Agency Services0.0Hospital Services0.0Other Medical Services0.0Institutional Care0.0Education And Training0.0Vendor Travel0.0Professional & Outside Services Excluded from Cost Alloca0.0Vendor Travel - Non Reportable0.0External Telecom Consulting Services0.0Non - Confidential Specialist Fees0.0Confidential Specialist Fees0.0Outside Actuarial Costs

277.3Other Professional And Outside Services458.7 475.0Expenditure Category Total

Non-Appropriated458.7 475.0Receivership Revolving Fund (Non-Appropriated)3023-N



Page: 98



FY 2017 Actual

FY 2018 Expd. Plan





0.0Other Operating Expenses0.0Other Operating Expenditures Budg Approp0.0Other Operating Expenditures Excluded from Cost Allocati0.0Risk Management Charges To State Agency0.0Risk Management Deductible - Indemnity0.0Risk Management Deductible - Legal0.0Risk Management Deductible - Medical0.0Risk Management Deductible - Other0.0Gen Liab- Non Physical-Taxable- Self Ins0.0Gross Proceeds Payments To Attorneys0.0General Liability- Non-Taxable- Self Ins0.0Medical Malpractice - Self-Insured0.0Automobile Liability - Self Insured0.0General Property Damage - Self- Insured0.0Automobile Physical Damage-Self Insured0.0Liability Insurance Premiums0.0Property Insurance Premiums0.0Workers Compensation Benefit Payments0.0Self Insurance - Administrative Fees0.0Self Insurance - Premiums0.0Self Insurance - Claim Payments0.0Self Insurance - Pharmacy Claims0.0Premium Tax On Altcs0.0Other Insurance-Related Charges0.0Internal Service Data Processing0.0Internal Service Data Proc- Pc/Lan0.0External Programming-Mainframe/Legacy0.0External Programming- Pc/Lan/Serv/Web0.0External Data Entry0.0Othr External Data Proc-Mainframe/Legacy0.0Othr External Data Proc-Pc/Lan/Serv/Web0.0Internal Service Telecommunications0.0External Telecom Long Distance-In-State0.0External Telecom Long Distance-Out-State0.0Other External Telecommunication Service0.0Electricity0.0Sanitation Waste Disposal


Page: 99



FY 2017 Actual

FY 2018 Expd. Plan

0.0Water0.0Gas And Fuel Oil For Buildings0.0Other Utilities0.0Building Rent Charges To State Agencies0.0Priv Lease To Own Bld Rent Chrgs To Agy0.0Cert Of Part Bld Rent Chrgs To Agy0.0Rental Of Land And Buildings0.0Rental Of Computer Equipment0.0Rental Of Other Machinery And Equipment0.0Miscellaneous Rent0.0Interest On Overdue Payments0.0All Other Interest Payments0.0Internal Acct/Budg/Financial Svcs0.0Other Internal Services0.0Repair And Maintenance - Buildings0.0Repair And Maintenance - Vehicles0.0Repair And Maint - Mainframe And Legacy0.0Repair And Maint-Pc/Lan/Serv/Web0.0Repair And Maintenance - Other Equipment0.0Other Repair And Maintenance0.0Software Support And Maintenance0.0Uniforms0.0Inmate Clothing0.0Security Supplies0.0Office Supplies0.0Computer Supplies0.0Housekeeping Supplies0.0Bedding And Bath Supplies0.0Drugs And Medicine Supplies0.0Medical Supplies0.0Dental Supplies0.0Automotive And Transportation Fuels0.0Automotive Lubricants And Supplies0.0Rpr And Maint Supplies-Not Auto Or Build0.0Repair And Maintenance Supplies-Building0.0Other Operating Supplies0.0Publications0.0Aggregate Withheld Or Paid Commissions0.0Lottery Prizes0.0Material for Further Processing0.0Other Resale Supplies0.0Loss On Sales Of Capital Assets0.0Employee Tuition Reimbursement-Graduate0.0Employee Tuition Reimb Under-Grad/Other0.0Conference Registration-Attendance Fees0.0Other Education And Training Costs0.0Advertising0.0Internal Printing0.0External Printing0.0Photography0.0Postage And Delivery


Page: 100



FY 2017 Actual

FY 2018 Expd. Plan

0.0Distribution To State Universities0.0Other Intrastate Distributions0.0Awards0.0Entertainment And Promotional Items0.0Dues0.0Books- Subscriptions And Publications0.0Costs For Digital Image Or Microfilm0.0Revolving Fund Advances0.0Credit Card Fees Over Approved Limit0.0Relief Bill Expenditures0.0Surplus Property Distr To State Agencies0.0Judgments - Damages0.0ICA Payments to Claimants Confidential0.0Jdgmnt-Confidential Restitution To Indiv0.0Judgments - Non-Confidential Restitution0.0Judgments - Punitive And Compensatory0.0Pmts Made to Resolve/Disputes/Avoid Costs of Litigation0.0Pmts For Contracted State Inmate Labor0.0Payments To State Inmates0.0Bad Debt Expense0.0Interview Expense0.0Employee Relocations-Nontaxable0.0Employee Relocations-Taxable0.0Non-Confidential Invest/Legal/Law Enf0.0Conf/Sensitive Invest/Legal/Undercover0.0Fingerprinting, Background Checks, Etc.0.0Other Miscellaneous Operating0.0 0.0Expenditure Category Total

0.0Current Year Expenditures0.0Capital Equipment Budget And Approp0.0Vehicles Capital Purchase0.0Vehicles Capital Leases0.0Furniture Capital Purchase0.0Depreciable Works Of Art & Hist Treas/Coll Capital Purcha0.0Non Depr Works Of Art & Hist Treas/Coll Cap Purchase0.0Furniture Capital Leases0.0Computer Equipment Capital Purchase0.0Computer Equipment Capital Lease0.0Telecommunication Equip-Capital Purchase0.0Telecommunication Equip-Capital Lease0.0Other Equipment Capital Purchase0.0Other Equipment Capital Leases0.0Purchased Or Licensed Software-Website0.0Internally Generated Software-Website0.0Development in Progress0.0Right-Of-Way/Easement/Extraction Rights0.0Oth Int Assets purchased, licensed or internally generate0.0Other intangible assets acquired by capital lease0.0Other Capital Asset Purchases


Page: 101



FY 2017 Actual

FY 2018 Expd. Plan

0.0Leasehold Improvement-Capital Purchase0.0Other Capital Asset Leases0.0Non-Capital Equip Budget And Approp0.0Vehicles Non-Capital Purchase0.0Vehicles Non-Capital Leases0.0Furniture Non-Capital Purchase0.0Works Of Art And Hist Treas-Non Capital0.0Furniture Non-Capital Leases0.0Computer Equipment Non-Capital Purchase0.0Computer Equipment Non-Capital Lease0.0Telecomm Equip Non-Capital Purchase0.0Telecomm Equip Non-Capital Leases0.0Other Equipment Non-Capital Purchase0.0Weapons Non-Capital Purchase0.0Other Equipment Non-Capital Lease0.0Purchased Or Licensed Software/Website0.0Internally Generated Software/Website0.0LICENSES AND PERMITS0.0Right-Of-Way/Easement/Extraction Exp0.0Noncapital Software/Web By Capital Lease0.0Other Intangible Assets Acquired by Capital Lease0.0Other Long Lived Tangible Assets to be Expenses0.0Non-Capital Equipment Excluded from Cost Allocation0.0 0.0Expenditure Category Total







Fund#



Page: 102

Administrative CostsState Department of Financial InstitutionsAgency:

Common Administrative Area FY 2019

Administrative Costs Summary

Personal Services 444.8

ERE 177.9

All Other 29.1

651.8Administrative Costs Total:

9.5%FY 2019

Request Admin %

6,849.1

Administrative Cost / Total Expenditure Ratio


Arizona Department of Financial Institutions

Fiscal Year 2019

Department Funding Structure

Page: 104

Department of Financial Institutions

Funding Structure

I. General Fund DFI neither has access to its general fund revenue (such as a 90/10 agency) nor any restraints on revenue collections (such as a 95/110 agency, in which fees must be set so that revenues collected equal between 95% and 110% of appropriations). Fees are set by statute and have not been adjusted in more than two decades. However, due to a spike in growth in the number of financial entities regulated by DFI, revenues swelled to over $8.1M by FY 2007. Although the 2008/2009 financial crisis caused revenues to drop to $4.3M by FY 2012, revenues started to turn upward in FY 2013. Continuing improvement since then resulted in over $3.2 million being added to the State’s general fund last fiscal year. The FY 2018 budget shifted $1.5 million from the General Fund to the Department’s Financial Services Fund. As a result, DFI’s general fund appropriation (excluding special line items) now sits at just over $1.5 million. The following chart compares revenue collections with appropriations and general fund expenditures over the past decade. Arizona Department of Financial Institutions: Actual Revenue and Expenditures vs. Budget, Fiscal Years 2008-2017.

- Despite the slow economic recovery, DFI's revenue less expenditures added $3.2 million to the State's general fund in FY 2017.

10 Year2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average

Revenue 6,096,763 5,435,509 4,637,690 4,412,390 4,302,145 4,769,218 5,333,285 5,866,580 6,401,068 6,157,474 5,341,212

Appropriation 3,883,300 3,304,900 2,970,300 2,894,800 2,814,300 2,958,800 3,019,100 3,020,200 3,008,000 2,978,200 3,085,190

Expenditures 3,882,742 3,304,393 2,970,197 2,794,887 2,745,082 2,948,793 3,011,159 3,004,628 2,904,295 2,911,305 3,047,748

Net to General Fund 2,214,021 2,131,116 1,667,494 1,617,502 1,557,063 1,820,425 2,322,126 2,861,952 3,496,773 3,246,169 2,293,464 (Revenue less Expenditures)

Note: Revenue comes from examinations and licensing fees as well as annual assessments paid by banks and credit unions. DFI has been a consistent net contributor to the General Fund. Over the last 10 years, DFI added an average of $2.3 million per year to the State’s general fund. Going forward, the $1.5M fund shift described above will serve to increase DFI’s annual contribution to the General Fund by an equivalent amount. All of DFI’s general fund revenue streams come exclusively from industry sources (i.e., licensing, examination, and annual assessments). Therefore, the state is essentially utilizing revenues from the regulated financial sector for non-DFI initiatives.

Page: 105

II. Other “Appropriated” Funds Financial Services Fund: Under A.R.S. Title 6, Chapter 9, Article 4, any person acting as a loan originator required a license from DFI beginning July 1, 2010. This new law also provided a financial structure that allows the Loan Originator licensing program to be self-sustaining and minimize support from the General Fund. Under A.R.S. § 6-991.21, the Financial Services Fund was established, consisting of loan originator licensing fees collected by DFI. The monies in this fund – which are subject to annual legislative appropriation – shall be used “…for the supervision and regulation of loan originators.” Note: The FY 2015 through FY 2018 Revenue Budget Reconciliation Bills (BRB) allow DFI to use the Financial Services Fund for general operating expenditures of the Department. The background surrounding the ongoing need for the above BRB language is as follows:

1) The FY 2015 budget included an increase of $310,400 from the Financial Services Fund (“FSF”) to hire 5 new staff. The new staff consisted of 2 Loan Originator/Mortgage Examiners, 1 other Examiner for the Financial Enterprises Division, a Customer Service Representative and an Administrative Assistant. While the Financial Services Fund is the correct funding source for the 2 Loan Originator/Mortgage Examiners, funding for the other 3 new employees must come from the General Fund, because the use of the Financial Services Fund is restricted by statute.

2) The FY 2016 FSF budget was increased by $223.3K to fund the ongoing

operating costs associated with a new electronic licensing system. While the Department can justify allocating a portion of these costs to the FSF, the correct funding source for a significant portion of these costs is the General Fund.

3) The FY 2018 FSF budget was increased by $250.5K to fund 3 new examiners

within the Financial Institutions Division. Again, since the use of the FSF is restricted, the correct funding source for these examiners is the General Fund.

4) Lastly, the FY 2018 budget shifted $1.5 million from the Department’s General Fund appropriation to the Financial Services Fund.

To address the above funding source issues, language was included in the FY 2015 through FY 2018 Revenue Budget Reconciliation Bills (BRB), which has allowed DFI to continue to use the Financial Services Fund for general operating expenditures of the Department. Given the above budget history, the Department recommends that this BRB language be made permanent law in the upcoming legislative session.

Page: 106

Real Estate Appraisal Fund: The FY 2016 Agency Consolidation Budget Reconciliation Bill (Laws 2015, Chapter 19) merged the State Board of Appraisal into DFI effective July 3, 2015. To facilitate financial accounting and reporting on a fiscal year basis, a Memorandum of Understanding was entered into, which implemented an effective date of July 1, 2015 for the consolidation. Under the merged entity, a separate Real Estate Appraisal Division was established and the Real Estate Appraisal Fund (formerly the Board of Appraisal Fund) retained its 90/10 funding structure. Note: SB 1197 (Laws 2017, Chapter 334), which was effective August 9, 2017, eliminated the Board of Appraisal Fund, transfers any amount remaining in the fund to the General Fund, and appropriated $675,000 from the General Fund for real estate appraisal activities. This appropriation is included as a Special Line Item within the FY 2018 budget. III. Non-appropriated Funding Department Revolving Fund: DFI has a Special Revolving Fund (“SRF”) for civil money penalties (CMP’s) collected and deposited. Monies can be expended by DFI “…for investigative proceedings or for the purposes of instituting and prosecuting civil actions pursuant to this title.” A.R.S. § 6-135(C). CMP’s are assessed by DFI as an enforcement tool to encourage compliance with State statutes. It’s important to point out that any amount over $200K in this fund at the end of each fiscal must be transferred to DFI’s Receivership Revolving Fund pursuant to A.R.S. § 6-135(B). Receivership Revolving Fund: This fund consists of: 1) monies awarded and received as fees and costs in receiverships in which the Superintendent was the receiver and 2) Monies received from DFI’s Department Revolving fund (see above). Under A.R.S. § 6-135.01(B), “monies in the fund may be used to pay any costs incurred by the Department arising out of the administration of a receivership in which the Superintendent is the receiver.” Note: The FY 2014 through FY 2018 Revenue Budget Reconciliation Bills (BRB) gives the Department authority to spend up to a total of $850,000 from the Receivership Revolving Fund for expenditures on an electronic licensing system. IV. Proposed Fund Restructure In 2012, the State Agency Fee Commission (Commission) reviewed the fees and funding structures of four State agencies, including DFI. The Commission’s December 2012 report recommended that DFI - prior to realigning its fees - be moved to a self-funding structure; at which time its appropriation would be increased to recognize the actual expenditure needs of the agency. The Commission also found that “altering DFI’s fee structure will enhance transparency of fees, eliminate conflicts of interest, and provide more efficient management of agency resources.” While the Governor’s FY 2014 through FY 2017 Executive Budgets included an increase in DFI’s appropriation, as part of a move to a self-funding structure, each year it failed to make it into the final budget bill. DFI remains supportive of the recommendation of the Commission and the self-funding structure that was proposed in the Governor’s budgets, and will again pursue making these changes for FY 2019.

Page: 107

V. FY 2019 Budget Request DFI’s FY19 budget request can be funded without the use of Arizona taxpayers’ funds. The monies generated from banks, credit unions, and licensees’ fees and assessments should be used to underwrite DFI’s operations. These monies should also be used to fund core agency functions that are currently being funded out of the Department Revolving Fund (e.g., examiner travel reimbursement and examiner training). In this way, DFI can adequately and meaningfully serve its regulated community and consumers. Moving DFI to the self-funding structure that was proposed in previous Executive Budgets will not only provide DFI with the mission critical resources it needs, but it will also provide greater transparency and more efficient management of agency resources – one of the key objectives of the Department’s Strategic Plan.

Page: 108

Arizona Department of

Financial Institutions

August 30, 2017

Robert D. Charlton

Superintendent

Tami Smull

FI Division Manager

Susan Zimmerman

Database Manager

Mark Murphy

FE Licensing Division

Manager Mike Fowler

Asst. Supt./Admin.

Div. Manager

Linda Lutz

Legal Secretary

ML Div/FS Div/CA & MSB Div

June Beckwith

Admin Asst

Annette Krenz

Admn Asst II

Michelle Castaneda

FE Maintenance

Cust Serv Unit Sp.

Lori Cardenas

Admv. Sv. Officer II

Sharon Butcher

Clerk Typist III

Juanita Coghill

Acctg. Specialist

Dave Lovallo

Systems/Lan

Administrator

Mila Bordelon

Admv Asst II

Gary McMurry

Fin. Inst. Exmr.

Ryan Mach

Fin. Inst. Exmr.

Tommy Pridgen

Fin. Inst. Exmr.

Zane Finch

.Fin. Inst. Exmr.

Brian Naig

Fin. Inst. Exmr.

Marie Corral

Fin. Inst. Exmr.

Fernando D ominguez

Fin. Inst. Exmr.

Gregory Dunn

Fin. Inst. Exmr.

Kelly HIggs

Fin. Inst. Exmr.

Tim Romero

CSR

Mary Cisneros

CSR

Bill Frank

CSR

LaTasha Ontiveros

FE Licensing

Cust Serv Unit Sp.

VACANT

CSR

Erica Martinez

CSR

Lanita Rojas

CSR

Olyver Quinlin

CSR

Jay DeArrastia

CSR

Arthur Reyes

Fin. Inst. Exmr.

Lola Duncan

Fin. Inst. Exmr.

Travis Thompson

Fin. Inst. Exmr.

Steve McElwain

Fin. Inst. Exmr.

Ron Doba

Financial Services Division Manager

Tammy Seto

Consumer Affairs & Money

Service Business Division Manager

Richard Fergus

Fin. Inst. Exmr.

Richard Traveler

Fin. Inst. Exmr.Liliana Larios

Fin. Inst. Exmr.

Gaby Macias

Mortgage Lending Division Manager

Carol Foster

Fin. Inst. Exmr.

Jessica Sapio

REA LicensingAdmn Asst III

Kelly Luteijn

Reg.Compliance Administrator

Linda Beatty

Investigator

Erika Redd

Acct. Tech III

Michael Bell

Fin. Inst. Exmr.

Rachel Dennis

Fin. Inst. Exmr.

Marilyn Alexander

Fin. Inst. Exmr.

Heath Clinger

Fin. Inst. Exmr.

VACANT

CSR

Tawnya Webel

.

Fin. Inst. Exmr.

Stephen Briggs

Legislative Liaison

VACANT

Fin. Inst. Exmr.

VACANT

Deputy Superintendent

Debra Rudd

Appraisal Reg. Specialist

VACANT

Fin. Inst. Exmr.

VACANT

Fin. Inst. Exmr.

VACANT

Fin. Inst. Exmr.

Page: 109

Page: 110

State of Arizona Budget Request - AZ 2019 Budget Submission_0.pdf · Receivership Revolving Fund...

Documents

Transcript of State of Arizona Budget Request - AZ 2019 Budget Submission_0.pdf · Receivership Revolving Fund...