“Georgia Fiscal Managers – The Key to The Best Managed State”

2007 State Fiscal Management Conference

St. Simons Island, GA

May 2, 2007

Enterprise Financial Management System

Building the Foundation

Lynn Vellinga - State Accounting OfficeDavid Tanner - Office of Planning & Budget

2007 FMC Conference

Agenda

• Introductions

• Overview of Best Managed State▪ How is it defined▪ Enterprise Approach

• State Financial Management System▪ Vision▪ Building the Foundation

• Process• Specific Tasks and Tools

▪ Benefits▪ Future Status

• Questions

2007 FMC Conference

Best Managed State – Overview - Vision

• Five Strategic Objectives for Georgia▪ Safe▪ Healthy▪ Educated▪ Growing▪ Best Managed

• They are continuing goals of this administration• Best Managed State – ingredients are:

• People• Assets• Processes• Tools

2007 FMC Conference

What is Best Managed?

• AAA Bond Rating• Timely CAFR• Unqualified Audit Opinions• Accessible, Reliable, Timely Financial Data• Efficient Effective Operation• Program Measures• Lower cost of operations

2007 FMC Conference

How is Best Managed Measured?Governing Magazine – Government Performance Project

Information:▪ Strategic Direction – budget and policy aligned with state plan▪ Budgeting for Performance and Managing for Performance▪ Program Evaluations▪ Electronic Government – services and financial information is easily

accessible Money:▪ Long-term Forecasting▪ Timely Financial Reporting▪ Transparent budget process▪ Efficient and effective procurement▪ Performance Measures

▪ People: Workforce planning, hiring, retention, training and employee performance management

▪ Infrastructure: Capital planning, project monitoring, maintenance, internal coordination, Intergovernmental Coordination

2007 FMC Conference

How is Best Managed Measured?

• Hackett Benchmarking▪ Efficiencies and Effectiveness

▪ Finance cost in relationship to total budget

▪ Error Rates

▪ Cycle times

▪ Technology used to improve operations

▪ Is Finance a valued business partner or an administrator of transactions? Controller or financial expert?

2007 FMC Conference

Challenges (From Verizon Wireless)

Do these Challenges sound familiar?

• Strong independent business groups• Varying degrees of commitment• Different business models• Losing control of critical functions• Agreeing on resources and responsibilities• Negotiating service level agreements• Different compensation and benefit plans• Mixed loyalties• Multiple systems and firewall between systems

Georgia State Government

Enterprise Approach

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Georgia is Big Business

• Georgia is a $34 billion operation • Over $34 billon in Assets

We are an Enterprise and when managed on an enterprise basis we will realize significant improvements to our business model.

2007 FMC Conference

Enterprise Approach -

Business Process Improvements Across Agency Boundaries

Define what we do and how we do it

(Business Process)

Make changes

based on best practices,

efficiencies and value add

Implementnew way of workingDevelop IT support

systems

Fiscal Managers

2007 FMC Conference

• Vision An enterprise-wide Financial Management System (FMS) that will provide the capability to share accurate, timely and consistent financial and operational information customized to individual enterprise stakeholders needs

• Characteristics▪ One access point to get financial information▪ Financial data is entered once▪ No duplicate systems▪ Feeder systems integrate seamlessly

Enterprise Approach –

State Financial Management System

2007 FMC Conference

Financial Information is essential to manage▪ Personnel▪ Asset▪ Budgets▪ Fund sources▪ Processes

• Georgia fiscal managers are a key to Best Managed State

• Need processes and tools that provide timely, uniform, accurate financial information

• To develop an enterprise financial management system we must build the foundation

Enterprise Approach –

State Financial Management System

2007 FMC Conference

State Financial Management SystemBuilding the Foundation - Challenges

• Appropriations Bill Structure▪ Programs, Fund Sources

• Lead Time – Planning and Development▪ 18 to 36 months to implement a new IT support

system

FLEXIBILITY

ChangingBusiness

Priorities and Needs

2007 FMC Conference

• Collaboration▪ Administrative agencies – SAO, OPB, DOAS, OFTS, GTA,

etc.

▪ Operational agencies

▪ Legislature

• Standardization▪ Processes

▪ Data – agencies, programs, fund sources, etc.

• Integration▪ Processes

▪ Systems

▪ Data

State Financial Management SystemBuilding the Foundation - Process

2007 FMC Conference

State Financial Management SystemBuilding the Foundation

What has been done: Priority Based Program Budgeting Commission for a New Georgia Office of Implementation State Accounting Office Customer Service Improvement Project

Performance Management Measure outcome and results Optimize various funding sources

2007 FMC Conference

State Financial Management SystemBuilding the Foundation

• Implementations to Date:▪ GTA Level IV Operations Center

▪ PeopleSoft 8.8 Upgrade

▪ BudgetNet To PeopleSoft• Interface with PeopleSoft Program and

Allotment Ledger

▪ Policies and Procedures

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Process Improvement ProjectsIn Process:▪ Standardized Reconciliations▪ Enhanced Report/Query tools▪ Carl Vinson Institute PeopleSoft TrainingTask List:▪ Standard funds treatment –

• carryover, reserves, encumbrances, prior year▪ Data Exchange – PeopleSoft to BudgetNet

• Standard treatment of attached agencies• Standard amendment numbering• OPB information requirements for AOB/Amendments

▪ Statewide Policies and Procedures• Accounting and Budgeting

State Financial Management System SAO/OPB Marriage

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State Financial Management SystemBuilding the Foundation

• Other Components In Process▪ Procurement Transformation

▪ Streamline Banking

▪ Asset and Fleet Management• BLLIP• Maximo

▪ Workforce Planning• Benefits Administration

▪ Agency Data Warehouses • Business Intelligence (DW)

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Statewideand Agency Reports

(Data Warehouse)

Enterprise Performance Management(EPM)

ExecutiveDashboard

Global Consolidations

“CAFR”

Current Functionality

Human ResourcesBase Benefits

Payroll

PurchasingAccounts Payable

Accounts ReceivableAsset ManagementLabor Distribution

Commitment ControlProject Costing (DOT)General Accounting

Enterprise Financial Systems

PROCUREMENT eProcurementContract Mgt

Strategic Sourcing

HUMAN RESOURCES

eRecruiteCompensationePerformanceLearning Mgt

Workforce Planning

Cash Management

Billing

Enterprise AssetManagement

BLLIPMaximo

BudgetNet AOB

AmendmentsAllotments

The foundation is being built one block at a time.

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Current Project Timeline for SAO projects

Project Start Projected Completion

Benchmarking September 2006 June 2007

Upgrade PeopleSoft HCM to 8.9 September 2006 May 2007

AMP Project August 2005 July 2007

Convert Additional Agencies to PeopleSoft October 2006 July 2009

Streamlined Banking October 2005 Pilot Agencies May 2007

CAFR Reporting System Enhancements January 2007 2008

Upgrade PeopleSoft Financials to 9.0 July 2007 2008

Delinquent Accounts Receivable Study June 2007 2008

Statewide Reporting (Data Warehouse) May 2007 2008

Human Resources (7 Modules) July 2006 June 2009

Procurement (6 Modules) May 2006 2009

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Agriculture

DOAS

Audits

Banking & Finance

SAO

Insurance

GSFIC

Defense

DOE

DTAE

DTAE – Technical Colleges

DCH

Forestry

OPB

DHR

DCA

Economic Development

Admin Office of the Courts

Superior Courts

Supreme Court

Law

General Assembly

GMS

DJJ

DNR

Pardons & Parole

DPS

DOC

Early Care & Learning

GBI

DOR

DDS

SOS

DOT

Veterans Service

Subsequent Injury Trust

Board of Workers’ Comp

GPB

GTA

GBA FY 2007 – FY 2008

Labor

Public Service Commission

Student Finance Commission FY 2008

Soil & Water Conversation FY 2008

OTFS

Judicial not on PeopleSoft FY 2007

General Fund Boards & Commissions

Georgia Office of Dispute Resolution

Georgia Aviation Hall of Fame

Indigent Defense Council

Removal of Hazardous Materials

Georgia Golf Hall of Fame

Board of Regents

Teachers Retirement

Employees Retirement

Lottery

Authorities

Commissions

Current PeopleSoftAgencies

Recommended AgenciesFor Conversion

Recommended AnalysisFor Conversion

Organizations to Remain onSeparate Accounting System

2007 FMC Conference

Benefits

Better Fiscal Management• More accurate picture of financial health of the State• Better policy recommendations • More accurate budget information

▪ Better understanding of funding sources and relationship to programs

▪ Better comparison between original budget and final outcomes

▪ Clear understanding of cost drivers and policy implications• Real time information• Historical information

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Benefits

Better Fiscal Management• More efficient business processes• Higher interest earnings on idle cash• Less duplication of efforts• Relevant information for decision maker• More timely financial reporting

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Benefits

Better Fleet management:▪ Total cost of ownership

▪ Reduced vehicle cost• Lower fuel cost

• Lower maintenance cost

• Lower purchase price

▪ Newer fleet, enhanced appearance,

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Benefits

• Better Facilities Management▪ Complete inventory

▪ Eliminate audit qualification

▪ Manage space utilization

▪ Lower maintenance cost

▪ Lower operating cost

▪ Better work environment

▪ Safer Facilities

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Benefits

• Workforce▪ Human Resource – Talent Management

▪ Better prepared leadership

▪ Standardized process

▪ Improved recruiting and retention

2007 FMC Conference

Georgia Fiscal Managers are Key to the Best Managed State Could not accomplish any of these initiatives without

you Drivers in fiscal policies and procedures Know how things work Provide necessary information and analysis to

operating managers Key to understanding fiscal policies set by statute,

constitution and GAAP Key to implementing changes

Georgia Fiscal Managers are Key

THANK YOUFiscal Mangers the Key to a Best Managed Georgia

2007 FMC Conference