State of Michigan s Project SIGMA

Transcription

1 State of Michigan s Project SIGMA Presented to State Association of Accountants, Auditors and Business Administrators (SAAABA) Ruth Schwartz, CPA, Project Director April 21, 2015

2 Topics for Today Project Overview, Targeted Improvements, and Functionality Schedule, Team, and Accomplishments Phase 1, Budget Development Phase 2, Core Financials, Procurement, Employee Time & Expense, and Labor Distribution End User Benefits 2

3 Project SIGMA Statewide Integrated Governmental Management Applications (SIGMA) is the State of Michigan s Enterprise Resource Planning (ERP) business process and software implementation. SIGMA will integrate systems and provide end-to-end support in one system for statewide administrative functions including financial management, procurement, asset management, performance budgeting, time and expenses. It will ultimately be used by all 50,000 state employees, external vendors, local units of government, and colleges & universities.. 3

4 Project SIGMA Overview Key Rationale for SIGMA Eliminates operational risk related to critical financial systems that have outlived their usefulness including MAIN and DCDS Provides built-in best practices and business rules for government accounting that expands the tools for existing staff, protects us with retiring staff, and attracts new talent Provides sophisticated statewide controls while providing the flexibility Departments need to operate efficiently Provides timely management information that supports operational improvements and performance reporting Fiscally conservative business case 4

5 Targeted Improvements Automate and Streamline Budget Preparation Reform Chart of Accounts /Uniform Coding Block Usage Enhance Transparency & Accountability Portal MIDB Currency and Reporting Move to Vendor Supported, Upgradeable COTS Solution Automate and Streamline CAFR Production Project & Grant Reporting, Budgeting, and Processing Cost Allocation 5 Increase Accounting Detail Posted from Agency Systems Support Treasury Functions: Debt Reporting Support for Investment Accounting Bank Reconciliation Warrant Writing Automate Interfaces with Banks Implementation of Positive Pay Banking (if feasible) Automate Vendor File Synchronization Reduce the Number of Applications Supported and Interfaced Integrated Procurement

6 SIGMA s Integrated System MIDB Budget Development Financial Management Inventory Fixed Assets Accounts Payable Purchasing Vendor Self Service Time, Expense Reimbursement, and Labor Management Self Service Self Service For Employees 6

7 Today From.! 7

8 Tomorrow..to this.! 8

9 Tomorrow, Continued Forecasting..and this!! 9

10 Project Schedule 2013 > 8000 Requirements Business Case RFP for software, implementation services, hosting and managed services Budget Preparation 8/2015 Project start 7/2014 (13 months) Phase 1: Budget Development Budget Dev Implemented 8/2015 Load Budget for FY17 Core Financials 10/2016 (27 months) Phase 2: Core Financials for All Agencies Procurement Added to Scope 12/ Core Financials Implemented 10/2016 Ongoing Support

11 Phase Functionality Phase 1 Budget Preparation Statewide Budget Development Legislative Tracking Salary Benefit Forecasting System Budget Bill and Budget Book Publication Phase 1.5 Budget Preparation Agency cost accounting structures added to budget development Foundation for performance based budgeting (objectives, measures, and metrics) Solution upgrade Integration with financials Budget Control Phase 2 Core Financials General Ledger and Financial Reporting Accounts Payable and Disbursements including Vendor Self Service Vendor Tax Reporting and Backup Withholding Accounts Receivable Asset Management, Inventory Management Budget Control Cash Reconciliation Cost Allocation Grant and Project Accounting Employee Time and Attendance, Expense Reimbursement, and Labor Distribution FHWA Billing Grants Management (Grantee and Grantor) Positive Pay Banking Procurement Data Warehouse Transparency and Accountability Portal 11

12 Roadmap 12

13 Strong Project Team Staffed by ~ 200 Members Co-located in the Victor Center Consisting of: SOM employees from 11 Agencies 3 Contract Partners: CGI System, Integrators, Managed Services ISG Quality Assurance Advocate - PMO Agency Implementation Leads & Teams 13

14 Key Accomplishments To Date Validated all in scope requirements Managed environments available and in use Phase 1 design complete with no modifications Phase 1 system test and mock conversions over 50% complete, preparing for User Acceptance Testing Phase 2 business process designs well underway Key design decisions: SIGMA budget structures Chart of Accounts (COA) Budget Bill Publishing approach Budget Fiscal Year Point of Sales and Cashiering Grants Project history conversion 14

15 Key Accomplishments To Date Engaged stakeholders Collaborated with Office of Internal Audit and IT Investment Fund Project Assurance Multiple Agencies in 100+ validation, Core Design, and Business Process sessions Delivered 24 system overview sessions in open forums and received good feedback Agency Implementation Guide rolled out to Agencies week of 4/13 Training for Phase 1 User Acceptance Testing this week 15

16 Budget Development Phase 1, 1.5, and 2 Key gains upon full project implementation Automate and streamline budget development processes Single data repository Automated workflow Integration with financials Projections, what-if capabilities, modeling, trend analysis Improved baseline economic processes Eliminate duplicate data entry 16

17 Michigan s Budget Process Michigan s Budget Process is made up of 5 major processes Budget Development Executive Budget Book Budget Bills Legislative Tracking Budget Administration Budget process begins with the Budget Instructions and ends with the loading of the budgets to Financial SIGMA Budget will be utilized to complete all 5 of the major processes 17

18 Budget Development Phase 1, 1.5, 2, and Beyond Phase 1 Phase 2 and Beyond Current Services Baseline Proposals for Change Capital Outlay Salary and Benefits Forecasting Publication of Executive Budget Book and Budget Bills Tracking of Legislative Changes Phase 1.5 Load enacted budget to SIGMA Financial Statewide Spending Plans Work Projects Foundation for performancebased budgeting Post enactment budget changes The ability to develop budgets at lower chart of account elements Integration with actual revenue and expenditure data Trend analysis, projections, and What- If scenarios Performance-based budgeting capabilities 18

19 Salary and Benefit Forecast (SBFS) The Salary and Benefit Forecasting (SBFS) tool within SIGMA Budget is designed to use position and employee data to develop highly accurate estimates of personnel related budget costs. The following Query is an example of data available as an output from the SBFS process. 19

20 Current Services Baseline (CSB) A CSB adjustment is a level of funding appropriated and/or the caseload or workload actually funded in the current fiscal year appropriations. Adjustments remove one-time items and reflect non-discretionary budget costs across the budgeting horizon. 20

21 Proposal for Change (PFC) A PFC adjustment is a discretionary initiative, including a fee proposal, which reduce or enhance a department's enacted budget. These adjustments are ongoing, one-time, or both upon submission and are tracked through the process by the type of funding. Form created at the department level. 21

22 Upcoming Activities For Phase 1 Go Live Phase 1 Go Live Activities Version Date: 4/15/

23 Phase 2 Core Financials Looking forward to: Standardized use of coding block/coa Data coding reduction options Automated Cost Allocation Elimination of Administrative Revolving Funds (ARFs) Integrated Time & Expense, Procurement, Fixed Asset and Inventory modules Integrated Procurement functionality Improved Project and Grant budgeting, accounting, billing and reporting Increased Reporting and Workflow functionality Online queries Parallel and sequential 23

24 Design Approach 24

25 Standardized use of coding block/coa Increased accuracy and effectiveness of the COA Improved Transparency Portal reporting Flexibility, as agencies can use detailed elements and still maintain centralized data integrity Improved access to summary level data while still providing drill down capability to detail level data Increased accuracy and efficiency by the use of additional detail COA elements that are standardized across agencies Increased flexibility, as agency ledgers and the central ledgers are based on single transaction processing that updates affected ledgers and balances 25

26 COA Mapping R*STARS to SIGMA Sample COA elements to be used in Phase 1: Department Fund Appropriation Object Revenue BFY (= AY) 26

27 SIGMA Chart of Accounts 27

28 Budget Fiscal Year (BFY) Work projects and capital outlay appropriations will remain available to spend for the statutorily authorized length of time by using a unique multi-year BFY code. Rolling this budget authority forward for qualifying encumbrances is a recognized best practice in accounting, and provides greater online transparency of total budget dollars spent. Unspent budget authority that is not a qualifying encumbrance, capital outlay appropriation, or work project appropriation will continue to lapse and not roll forward. 28

29 Budget Control A multi-level budget structure will track budget amounts for both spending and revenues. COA Combination Validation pages are being developed to supplement Michigan s Budget Control needs. Appropriated in Budget Bills Tracking and Establishing Control of work projects Performance Budgeting Management budgets allow agencies more granularity than the state-wide appropriation budget. Management Budgets Allow monitoring expenditures and revenues with budget versus actuals. Allow agency variation, but at a minimum, will include Event Types to record the initial budget amount and any adjustments for comparison to the Spending Plan in SIGMA Budget. 29

30 Budget Control Planned Defaults Severity Levels can be set as a default on most budget lines. Exceptions are made in SIGMA Financial by users with appropriate security. Example of a potential Budget Control list is shown below: Formula Default Severity Budget Line / Allotment Line Unobligated >= $0 Warning Budget Current Budget - Cash Expenditures - Accrued Expenditures >= $0 Total Revenue - Cash Expenditures - Accrued Expenditures - Encumbrances >= $0 Total Revenue - Cash Expenditures - Accrued Expenditures >= $0 Override No Action No Action Budget & Allotment Budget Budget & Allotment 30

31 Integrated Procurement functionality: Req to Check Procurement Accounts Payable Vendor Creation Vendor Modification Prevent duplicate vendors Vendor File Purchase Requisition Accounting quick codes Real-time budget validations/posting Create award documents right from requisitions Minimized data entry from requisition Reusable Templates Award Receive/Invoice Powerful search on Award # and other identifiable fields Partial receipt and invoice Reoccurring payments 3-way matching P-Card reconciliation Travel Reimbursement Payment Request & Disbursement Real-time Validations and GL Posting Validations against budgets in real-time Transactional documents post to GLs at the time of entry Workflow Workflow any document, any field, any value Reporting Delivered Reports Ad-Hoc Inquiry Reporting from Advantage BI 31

32 Procurement Functionality Procurement Workload management Information governance Solicitation management Bid evaluation and award Contract management Full lifecycle for requisition to disbursements Vendor Self-Service Vendor web registration bid notifications Vendor bulletin board Electronic response Financial transaction inquiry Invoice submission Business Intelligence Financials Encumbrances 2 or 3 way match Automated Payment Disbursements Single vendor/customer file Automated updates to Inventory and Fixed Assets TBD- pre-encumbrances 32

33 Vendor Self Service Invoice PO Flip 33

34 Invoice Coming from Vendor to Accounts Payable 34

35 Three Way Match 35

36 SIGMA for End Users Less manual, paper-intensive work Greatly improved reporting and data analysis Less redundant data entry Less reconciliation across systems Easier, more automated tracking and approvals Streamlined business processes that work similarly across departments Export/Import capabilities, powerful inquiries, improved data warehouse functionality One system for budgeting, procurement, and accounting, with expanded capabilities Ease in moving from one agency to another and one job to another Reduced training time for new hires 36

37 Project Communications Website - Newsletter Newsletter Frequently asked questions Presentations Project announcements Training Agency Implementation Guide Contact Us Image from Website 37

38 Questions? Upcoming Town Hall Meeting Thursday, April 30, 8:30-10:30 Capitol Commons Center - Conference Rooms A/B/C/D (Basement) 38