“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 Office David Tanner - Office of Planning & Budget
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“Georgia Fiscal Managers – The Key to The Best Managed State” 2007 State Fiscal Management Conference St. Simons Island, GA May 2, 2007 Enterprise Financial.
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“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
• 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
2007 FMC Conference
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
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
2007 FMC Conference
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
2007 FMC Conference
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)
2007 FMC Conference
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
The foundation is being built one block at a time.
2007 FMC Conference
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
2007 FMC Conference
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