Improving Statewide Reporting & Performance Data Analysis: Success Stories Keith Johnson, Director, State and Local Government, Oracle Robert Sabo, Executive Director, Public Sector Solutions, Oracle Alan Skelton, State Accounting Officer, Georgia
Mar 27, 2015
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Improving Statewide Reporting & Performance Data Analysis: Success Stories
Keith Johnson, Director, State and Local Government, OracleRobert Sabo, Executive Director, Public Sector Solutions, OracleAlan Skelton, State Accounting Officer, Georgia
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Welcome and Introductions
Moderator:R. Kinney PoynterExecutive Director
NASACT
Robert SaboExecutive Director
Public Sector SolutionsOracle
Keith JohnsonDirector
State and Local GovernmentOracle
Alan SkeltonState Accounting Officer
Georgia
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Program Agenda
Welcome and Introductions
Public Sector Challenges
Shifting Gears: Manual to Automatic – Statewide
Financial Reporting and Performance Data Analysis
State of Georgia Success Story
Questions and Answers
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Public Sector Challenges
Keith JohnsonDirector, State and Local Government Oracle
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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Things are changing!
“The picture is pretty bleak, gentlemen….The world’s climate
Is changing, the mammals are taking over, and we all have a brain
about the size of a walnut.”
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Things are changing!
Economic/budget crisis– Fewer resources – same or
bigger job
Internet savvy citizens demand more
– Demand “commercial” like access to government
Demands for transparency– What is my government
doing?
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Things are changing!
Demands for Efficiency– Performance Management
– How well is my government doing its job?
New Regulations– GASB, Federal, Bond Agencies
– Faster, more frequent reporting ( CAFR other)
– Federal Data Act
New technology options– Cloud – Next Gen Web – Social
Networking
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DATA – Digital Accountability and Transparency Act
What does it do?
Point Point
Creates Federal Accountability & Spending
Transparency Commission (FAST)
Requires recipients of federal fundsto report use of funds at least
quarterly to FAST
Requires single electronic platform to track federal spending
Amends FFATA - Federal Funding Accountability and Transparency
Act
What is it? Bi-partisan support in both House
and Senate
Purpose: Accountability andtransparency in federal spending,
including grants
Similar to ARRA reportingbut significantly expanded
In Process– Last hearing wasJuly 17,2012
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SEC Report on Municipal Market
Report issued July 31, 2012 Recommendations
– SEC would set issuer disclosure requirements
– SEC would establish form and content of financial statements
– SEC would enforce compliance with continuing disclosure obligations
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More cost effective delivery of services
A higher quality and level of services to citizens
Greater focus on outcomes and results
Effective use of personnel and technology
Deliver High Performance
What Must Government Do?
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Provide financial and other information faster
Deliver more and better usable information to citizens, elected officials and all stakeholders
Use technology and data to support better decisions
Provide Insight and Transparency
What Must Government Do?
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What can a high performance system do for your organization? – Reporting
Manage complex consolidation of organization/component units reports
• Eliminate multiple spreadsheets
• Provide detail audit trail to source entries
• CAFR, Budget Statement and other report book creation
• Streamline entire CAFR process
• Integrated to Desktop
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What can a high performance system do for your organization? – Budgeting and Planning
Provide detailed control over the entire process– Workflow
– Approval Rules
– Configurable forms
– Role Based Security
– Decision Packages
Analytic Capabilities– Multi year forecasts using complex formulas
– Real-time budget and scenario analysis
– Complex compensation modeling
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What can a high performance system do for your organization? – Performance Management
Support Performance Based Budgeting Models– Goal Setting
– Tie budget and expenditures to targets
– Manage action
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Summary
Things are changing – having to do more with less
Performance management (Transparency, Accountability and Timeliness) is at the forefront
Public Sector entities can successfully address these issues
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Financial Reporting Survey Results and Solution Overview
Bob SaboExecutive Director, Public Sector Solutions, Oracle
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Topics
• Survey Findings• Beyond ERP• Transparency• Enterprise Performance Management and Financial
Reporting
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Survey Results24 States Responded
Self Grade - Ability to deliver timely, useful financial reports to management
71% - budget reductions have had an impact on their ability to support financial reporting requirements and demand.
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Survey Results - Timing
•75 percent of the states note that it takes four to six months to complete and finalize the CAFR
•None of the states surveyed can complete the report in three months or less.
•However, two thirds of states note that they would like to complete and finalize the CAFR in fewer than 120 days.
Is the bottleneck component units? Systems? Necessity?
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Survey Results – Efficiency
33 % - CAFR process is extremely or somewhat inefficient
4% - four percent say that CAFR generation is completely automated.
71% - percent of the states noted that 25 percent to 50 percent of their financial staff’s time is spent on moving data or maintaining in-house developed routines to support the financial consolidation and reporting process.
States are acting!
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Survey Results – Data Analysis
25% - Of states surveyed note that inefficient manual processes pose the biggest challenge for analyzing data
25% - Not able to gain sufficient insight from their data and make use of it to drive actions or contribute to overall performance improvements
21% - Say their challenges divert time, money and resources from citizen programs or make it difficult to get timely information to managers who make decisions about funding and planning for these programs
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Charting a Path
• Examine current processes – define and develop organization-wide priorities and strategies that include information architecture and transition timelines
• Evaluate technology options – choose flexible financial management technology tools that enable states to start small and add new functionality when they need it
• Open doors – select open, standards-based solutions that enable integration between disparate systems and data sources
• Think analytically – invest in business intelligence solutions that provide financial managers with the timely information they need to make more effective decisions
• Partner for success – work with trusted technology providers that can help define information management strategies and architecture requirements to capture, secure, analyze, use and share data effectively and in real-time across the organization
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Topics
• Survey Findings• Beyond ERP• Transparency• Enterprise Performance Management and Financial
Reporting
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100% Custom – Fortran/Cobol – Punch Cards, COTS? ERP? What’sThat?
A Brief History of Business Applications
1970’s
1980’s
1990’s
2000’s…
Internal (MIS only) – Mysterious peopleIn cold rooms behind closed doors.Mainframe rules.
First COTS/ERP Apps (GL/AP) but still mostly custom – End user terminals (green screen) appear
Internal (MIS with some end useraccess.) Mainframe still rules but Mid range (and yes the PC) appears.
ERP grows – Many more applications – PC/Client Server gives birth to “Super User”COTS takes the lead. Y2k a major driver
Departmental – MIS no longer rules. Business users gain. StillInternally focused to organization
Internet changes everything –Tremendous productivity gains/cost savings. Data for analysis, not just recordkeeping. Transparency is a major requirement.
External Focus – Move outsideOrganization. Citizens, clients,vendors have access
FOCUS
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COTS – Commercial Off the Shelf Software
Systems Issues
• Old custom systems still around– UI systems average 22 years old
(NASWA)– MMIS, Tax, some ERP 10+ years
old
• Even 10 year old system not architected for external access
• Expensive to maintain• Nearly Impossible to upgrade
• Excel• Budgeting• Fed/Special Reporting• CAFR
• Multiple versions of the truth• Hidden effort is still costly• Multiple data handoffs• Audit issues
Vendors and customers have moved aggressively to replace
Custom applications with Off the Shelf ones!
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Topics
• Survey Findings• Beyond ERP• Transparency• Enterprise Performance Management and Financial
Reporting
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• Performance Management ensures public funds are effectively used
• Budgeting and Planning provides control and insight
• Reporting provides accurate and timely feedback.
Elements of Public Transparency
Solutions
Reporting
Public Transparency
Performance
Management
Budgeting and Planning
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Transparency• Groundswell– All 50 states have transparency sites– Quality/comprehensiveness varies
Following the Money 2011 – US Public Interest Research Group
2011 PIRG
ReportOnline Access to Government
Spending Data
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Transparency• Major Changes in Grades 2010 to 2012
Following the Money 2012 – US Public Interest Research Group
2012 PIRG
Report
Online Access to Government Spending Data
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Transparency
Following the Money 2012 – US Public Interest Research Group
• Major Changes in Grades 2010 to 2012
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Define Transparency?
http://sunshinereview.org/core/
•10 Criteria
•Goal – More than exposure
•Ratings for States, Cities, Counties, K12
Oracle Whitepaper:
Transparency in the Public Sector:
Its Importance and How Oracle Supports
Governments Efforts
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• PeopleSoft ERP, Business Intelligence
• Award winning “A” rated transparency website
• Direct data update to website from source
• Wide range of public information
Solutions
Transparency Case Study Example State of Indiana
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Transparency Case Study Example State of Indiana
Contract Search
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Topics
• Survey Findings• Beyond ERP• Transparency• Enterprise Performance Management and
Financial Reporting
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Local Government Technology Priorities
Center for Digital Government – State and Local IT Trends 2012
Performance management and reporting
Transparency
ERP – Replacement, implementation, extension and upgrades
Legacy Modernization – ERP and Tax Systems
Document/Records Management and content management and workflow
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Oracle EPM Overview
• Automates and links strategic/financial management processes
• Modular and integrated
• Integrates data from multiple transaction systems
• Fast time to value; Low TCO
Integrated Performance Management Suite
Oracle BI Foundation
Common Information Model
Performance Management
Financial Close & Reporting
Budget Formulation & Execution
Revenue Analysis &Cost
Management
Tax & Revenue
Case Management
Operational Systems
Student Systems
4040
Performance Management ApplicationsIntegrated Suite of Best-of-Breed Modules
Integrated Agency Planning
Financial Reporting & ComplianceCost Management
Performance Scorecard
Revenue Analysis and Cost Management
• Clearly articulate strategy & goals, communicate them across the enterprise
• Develop scorecards leveraging recognized methodologies and industry benchmarks
• Ensure accurate forecasts, shorten budgeting & planning cycles, and model the potential impact of workforce & capital spending decisions
• Conduct cost analysis using robust modeling and analysis with integrated drill down
• Visibility into cost and revenue drivers through traceability maps
• Close and report financial results, meet regulatory requirements, reduce compliance costs and improve confidence in the numbers
Strategy Management
Strategic Finance
Capital Expense Planning
Public Sector Budgeting and Planning
Financial Data Quality Management
Financial Management
4141
Hyperion Financial ManagementAccelerates Reporting Cycles and Reduces Costs of Compliance
• Patented financial consolidation and reporting features
• Complete audit trails, workflow and validations
• “Smart Dimensionality” • Flexible “what if” scenario
management features• Powerful, reporting and analysis
tools• Full integration with ERP and
other transaction systems • Easy to customize and extend• Web-architected
4242
Reliable Financial ReportingImprove Timeliness and Usefulness of Information
Daily Monthly QuarterlyQuarterly YearlyYearly
• Rapidly Aggregate Financial Information Across Different Entities
• Provide Visibility Across All Department / Management Levels
• Ensure Role-Based Securityat Every Level
• Internal Reporting for Operational Management and Improvement
• External Reporting for Submission to Overseeing Agencies
Departments
Agencies
Budget Officers
Program Managers / Officers
<Insert Picture Here>
4444
Link Hyperion to Source ApplicationsHyperion Financial Management/Planning
Oracle Account Analysis and Drill-Down
Hyperion Financial Data Quality Management
EPM System
Release 11
4545
Visual Flow of Calculation
EPM Calculation ManagerUnified Environment for EPM Business Rules
4646
Oracle Hyperion Strategic FinanceStrategic Agency Funding & Out-Year Financial Modeling
• Define Funding Options• Link Priorities to
Out-Year needs• Analyze trail feature• Freestyle reporting• “What If” analysis toolkit
4747
Taking Simulation to the Next Level:Understanding Risk and Uncertainty
1.Model– Specify the range of input
assumptions– Simulate possible outcomes
(Monte Carlo)
2.Quantify– Range and likelihood of outcomes– Relative importance of input
assumptions
3.Decide– Focus on what matters– Prioritize the outcomes by balancing
risk and reward
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Decision Workflows – Financial Analytics
• Business Function Finance / Budget
• Role Director – FinanceManager - Department
• Objectives– Monitor budget
utilization– Control risk of
payables portfolioTarget procurement efforts for more
effective spending
Drill toinvoice detail
Which payables itemsare involved?
Is it based onsupplier spend?
Which departmentsare accountable?
Are expenses on target?
Execute to Budget Plan
Drill toHR Analytics
When were theexpenses incurred?
Is it based on overtimecompensation?
Is revenue on target?
BusinessObjectives/
Issues
GainInsights
TakeAction
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Decision Workflows – Financial Analytics
Target procurement efforts for more
effective spending
Is it based onsupplier spend?
Execute to Budget Plan
Drill toDetailBusiness
Objectives/Issues
GainInsights
TakeAction
Who are the suppliers?
Drill toinvoice detail
Which departmentsare accountable?
Are expenses on target?
5050
Selected Oracle EPM State & Local Government Customers
Copyright © 2007, Oracle. All rights reserved.
Hyperion in GeorgiaAugust 13, 2012
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Agenda
► History of Reporting in Georgia► Hyperion Financial Management (HFM)
Overview Benefits
► Project Highlights► Overview of HFM
Hyperion Dimensions Data Loads Rules Financial Reporting Sample Reports
► Q&A
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History of Reporting
► Georgia produces 5 main financial reports annually Comprehensive Annual Financial Report (CAFR) Budgetary Compliance Report (BCR) Selected Summary Financial Information (Treasury
Operations) Single Audit Report (SAR*) Section 1512 Reporting (produced quarterly) (ARRA*)
• For FY2010 & FY2011 reporting Hyperion was used for the CAFR, BCR and Treasury Operations. SAR and ARRA have not been migrated to Hyperion.
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History of Reporting
► 50 organizations are reported in the BCR ► Approximately 350 trial balances (comprised of ~130
organizations) are reported in the CAFR ~ 45 of the organizations reported in the CAFR are on a
common ledger system (PeopleSoft).
► PeopleSoft primarily maintains ledgers on a statutory (budget) basis and is converted to GAAP reporting is collected through year-end forms. SAO utilizes the data on the year-end forms and other
sources to post conversion entries in HFM. Data is also gathered from CPA audited financial
statements for some organizations included in the CAFR.
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Challenges with Legacy System
► Time CAFR and BCR were not consistently being issued by required
12/31 deadline
► Cost Create separate import files for each organization Manually map each line of T/B to the applicable reporting line Consolidation of various reporting levels could take hours and the
system (Caseware) often crashed prior to completion. Manually enter information collected in year-end forms to
consolidate and prepare the notes Manually close out revenue/expense
► Quality Difficult to analyze data across funds (i.e., cash for a single entity)
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Solution: Hyperion
► Web based application Accessible by users in multiple locations
► State Owned and Operated SAO owns both the results and the system Minimal to no IT support required
► Packaged Application Out-of-the-box financial intelligence – minimal ongoing
consulting
► Drill-back capability Allows for drill-back to source system data Microsoft Office Add-In (SmartView) Allows users to retrieve data from and submit data to Excel
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Solution:Hyperion Financial Management (HFM)
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Benefits of HFM
► Reduce cycle time Automate data load for agencies using statewide accounting
system (PeopleSoft) with the use of FDM Automate journal entries, where possible Ability to post journal entries across multiple agencies
Allocation of investment pool holdings Remove encumbrances in conversion from Budget Fund to General
Fund Lease and capital asset / accumulated depreciation entries
Data forms and Excel SmartView spreadsheet upload tools allow for input of additional data Trial balance for non-PeopleSoft users loaded via SmartView Supplemental data used for the NTFS (i.e., Capital Asset changes
and debt service to maturity details)
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Benefits of HFM
► Improve Quality Standardized mapping for common G/L users and ability to
load data in a single upload file Reduced load time provides additional time to analyze data Data can be reviewed across organizations and fund types
from a single system Ability to more efficiently analyze year over year trends and
provide support for MD&A analysis
► Flexibility Easy to create and modify excel files to retrieve data from
HFM using SmartView No limit to the number of Excel SmartView files
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Project Highlights
► Entire timeline took less than 6 months to complete Used a consulting firm to assist with application setup
► SmartView functionality made it easy to convert write-up files from prior system to Hyperion links
► Created rules in HFM thereby reducing the number of AJEs required
► Created supplemental data accounts to track dates received and applicability status of year-end forms
► Utilized an Excel JE template to upload journals to HFM (maximum of 5K lines long)
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Reporting
► Examples of Reports in FASTR/SmartView Trial Balance BCR and CAFR Statements Journal Entry Report
► Hyperion Financial Reporting Studio report template will be created to support report production
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Sample BCR (SmartView version)
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Sample CAFR (SmartView version)
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Test Case
► Day before CAFR is to be released Material Error to Beginning Capital Asset amount for
Discretely Presented Component Unit
► What do I need to do? Enter AJE Enter Supplemental Data Consolidate Data Click “Refresh” with Smartview files and statements, NTFS,
MD&A, check files, and analytics
► Done!► All changes are done
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Additional Resources
• Report: Shifting Gears: Manual to Automatic- Statewide Financial Reporting and Performance Data Analysis
• On Demand Webcast: Reduce the Time, Cost and Complexity of Financial Report
• Resource Center: Public Sector Enterprise Performance Management*
*Note: To access the Resource Center, Enter one of the following case sensitive tokens: Federal: FEDQ22013 or State & Local: SLQ22013
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Questions?
Moderator:R. Kinney PoynterExecutive Director
NASACT
Robert SaboExecutive Director
Public Sector SolutionsOracle
Keith JohnsonDirector
State and Local GovernmentOracle
Alan SkeltonState Accounting Officer
Georgia
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