State of Wyoming Chart Of Accounts Redesign

Transcription

1 Moderator: Steve Barnett, SD Presenters: Cynthia Cloud, WY Sandy Urbanek, WY Robin Milne, Plante Moran State of Wyoming Chart Of Accounts Redesign 2

2 Presentation Agenda Background COA Redesign Objectives Approach Results Next Steps Questions 3 State of Wyoming Invested wisely in technology and kept pace with technological advancements Financial and accounting business practices were not re-evaluated or reengineered since the original creation of the chart of accounts (COA), resulting in: - State funds and federal funds co-mingled in the same fund - Lack of COA standardization, various use across agencies - Agencies use other business applications to meet their needs - Existing COA limits the use of new features and functions - Many inefficient business processes and workarounds 4

3 Carried the same bricks forward for years!!!! Chart of Accounts is the foundation for all accounting practices!!!!! 5 All issues lead to the Chart of Accounts 6

4 Where we were 7 What we needed Improve the accounting practices through a uniform and standardized COA along with business rules to: - Ensure consistent use across all state agencies - Achieve flexibility and scalability for future needs - Increase the educational awareness and understanding of the COA Change Management - Improve management of the COA, (the HUB for posting financial data transactions and reporting) - Provide the ability to aggregate data across and/or within the State (e.g., all cell phone costs for an organizational unit or for all State departments) - Provide State departments, divisions, agencies and other organizational units the flexibility to use COA to support business operations - Reduce redundancy - elimination of agency shadow systems to reduce costs 8

5 What we needed Increase the use of system reporting features to support reporting for: - Comprehensive Annual Financial Report (CAFR) - Schedule of Expenditures of Federal Awards (SEFA) - Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) - Support summary and detailed budget reporting - Answer external auditors and legislators questions in a more efficient and timely manner - Ability to analyze the wellness of the financial status of the state 9 Who we hired Plante Moran STABILITY Founded in 1924 Recognized by Fortune magazine as one of the 100 Best Companies to Work For for the last eighteen years 14th largest certified public accounting and management consulting firm in the nation INDUSTRY EXPERTISE Over 50 years of involvement in serving public sector clients Significant government operations and IT consulting experience DEPTH Approximately 2,000 staff members, including over 250 partners and directors Over 200 Management Consulting Professionals Deep expertise in managing high complexity projects in both the public and private sectors VENDOR INDEPENDENCE Independent from software and hardware vendors for our public sector clients Clients say Plante Moran puts their interest first 97% 10

6 COA Objectives 11 What we did Assess Current Situation Consult and Engage Stakeholders Determine Approach/ Options (projects, technical) Develop Structure Map Old to New Accounts Provide Training and Communicate Transform Chart: Go Live 12

7 Findings 13 Changes to Fund Accounting Elements Add a federal fund to the Governmental Fund list All Special Revenue recorded in a Special Revenue Fund (based on budget) Repurpose fund reporting dimensions to support CAFR and GASB Remove all unused funds, objects, revenue sources, and balance sheet accounts Identified new features to use allocations, budget reserve, budget linking, cash control, year end roll over 14

8 COA Results Consistent budget levels for central expense and revenue Implementation of new business processes for budget FY close, cash and fund management, and cost accounting Clean up of outdated COA elements to reduce data footprint & eliminate user confusion Establish reporting dimensions for each element to support reporting 15 Organizational Structure Remove unused codes Organizational codes are smart coded and have significant unused codes Keep appropriation & unit as is to match the budget and security / workflow processes 16

9 Cost Accounting Model Define a business model for how to track projects and grants using the system features Define policies and procedures on how to use the program / project model Establish the cost accounting budget model Define reporting dimensions for state-wide and departmental use 17 Benefits All funds are treated the same Cash can be tracked within the fund (federal, other, general fund) Improve cash management - ability to track and identify federal draw down gaps Consistent visibility to the revenues that are providing funding to each fund Clean cross-walk back to the budget book and sources of funds Enhanced reporting for CAFR, GASB, and SEFA Improved Legislative tracking and reporting without compiling multiple spreadsheets Elimination of over 90% of the customized Mods due to the fact that we will be using the system as designed and will reduce overall IT management support costs Reduced the COA data footprint in the database 18

10 Impact / Benefits Impacts - Communications maintain transparency - User training - Implementation process defined for new projects and grants - Implementation, training and FOLLOW-UP - Changes in Business in the Legislative Branch and Executive Branch Budget Division 19 Next Steps 20

11 Change Management The People SIDE Pilot program with 10 major agencies Early Adopters - Gain upper level management support and sponsorship. - Understand the expected outcomes and results from the stakeholder s perspective learn their business. - Focus on the improvements & outcomes for better adoption soft versus hard tangible results. - Present the change in PEOPLE terms to gain credibility, and an adoption of new processes which meet the PEOPLE s needs. - Talk early and often: ADKAR process. Bring awareness, Achieve desire, Provide knowledge, Deploy ability and Reinforce change. - Ask important change questions early and provide clarification to the stakeholders. 21 What s In It For Me? 22

12 Next Steps Decentralized review of department structures Primarily Organizational and Cost Accounting Develop consistent model for Cost Accounting Implement the COA roadmap for the new fiscal year 23 Lessons Learned Take advantage of the technical upgrade and look deeper at your system with those upgrades. Build in independent consulting services for upgrades to challenge old customizations, business processes. Understand the history and the roadmap of your system. How did you get to where you are today? Who in YOUR office will be leading the charge of managing the future roadmap of your system, identifying impacts of new technology, modifying practices, ensuring needs are being met by the system. It's not the IT folks How many shadow systems do your staff have to use/support because to meet the specific needs of your agencies? Could it be a lack of knowledge of your system's capabilities? 24

13 Questions Cynthia Cloud, Wyoming State Auditor - Cynthia.Cloud@wyo.gov - Phone: (307) Sandy Urbanek, Wyoming Deputy State Auditor - Sandy.Urbanek1@wyo.gov - Phone: (307) Robin Milne, Plante Moran Associate - Robin.Milne@plantemoran.com - Phone: (573) Thank You