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

1. Enterprise Financial Management System “Georgia Fiscal Managers – The Key to The Best Managed State” Building the Foundation 2007 State Fiscal Management Conference St. Simons Island, GA May 2, 2007 Lynn Vellinga - State Accounting Office David Tanner - Office of Planning & Budget

2. 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

3. 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

4. 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

5. 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

6. 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?

7. 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

8. Georgia State Government Enterprise Approach

9. 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.

10. Enterprise Approach - Business Process Improvements Across Agency Boundaries Make changes based on best practices, efficiencies and value add Define what we do and how we do it (Business Process) Fiscal Managers Implement new way of working Develop IT support systems

11. Enterprise Approach – State Financial Management System • 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

12. Enterprise Approach – State Financial Management System • 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

13. 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 Changing Business Priorities and Needs FLEXIBILITY

14. 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

15. 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

16. 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

17. Process Improvement Projects In Process: Standardized Reconciliations Enhanced Report/Query tools Carl Vinson Institute PeopleSoft Training Task 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

18. 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)

19. Current Functionality Cash Management HCM Financials Human Resources Base Benefits Payroll Purchasing Accounts Payable Accounts Receivable Asset Management Labor Distribution Commitment Control Project Costing (DOT) General Accounting PROCUREMENT eProcurement Contract Mgt Strategic Sourcing Billing HUMAN RESOURCES eRecruit eCompensation ePerformance Learning Mgt Workforce Planning Enterprise Performance Management (EPM) Executive Dashboard Global Consolidations “CAFR” Statewide and Agency Reports (Data Warehouse) Enterprise Financial Systems FY07- FY09 FY07-FY09 Enterprise Asset Management BLLIP Maximo The foundation is being built one block at a time. BudgetNet AOB Amendments Allotments

20. Current Project Timeline for SAO projects

21. Recommended Agencies For Conversion Current PeopleSoft Agencies Recommended Analysis For Conversion Organizations to Remain on Separate Accounting System

22. 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

23. 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

24. Benefits Better Fleet management: • Total cost of ownership • Reduced vehicle cost • Lower fuel cost • Lower maintenance cost • Lower purchase price • Newer fleet, enhanced appearance,

25. Benefits • Better Facilities Management • Complete inventory • Eliminate audit qualification • Manage space utilization • Lower maintenance cost • Lower operating cost • Better work environment • Safer Facilities

26. Benefits • Workforce • Human Resource – Talent Management • Better prepared leadership • Standardized process • Improved recruiting and retention

27. Georgia Fiscal Managers are Key • 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

28. THANK YOU Fiscal Mangers the Key to a Best Managed Georgia