Presentation Transcript

1. Pennsylvania Government Reform

   Anna Maria Kiehl, CPA Comptroller /Chief Accounting Officer, Office of Budget, Comptroller Operations
2. Treasurer Auditor General Commonwealth of PennsylvaniaFinancial Organization Structure 2
3. Governor Tom Corbett’s Reform Initiatives Performance-based Budgeting and a Biennial Budget Cycle Transparency in State Government Consolidation of Services Reducing the Size of Government Privatization opportunities, e.g., state-owned wine and spirit stores Operational efficiencies – Travel Policy revisions/Out of State Travel restrictions, Management Salary Freezes, Vehicle Policy revisions Pension reform Welfare Reform
4. PA’s Ten Years of Continuous Improvements 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Go Live 3 Phases between July 2002 and January 2003 ImaginePA - SAP Budget, Finance, Procurement, Reporting – (Start - March 2001) HR, Payroll (Start – March 2001) Go Live January 2004 SRM (Start - February 2006) Procurement Upgrade March 2007 EBP Upgrade August 2006 XML Go Live July 2007 Go Live Training November 2007 Revenue Initiative (Start - Within OB 2006) Reporting July 2008 Agency Kick Off June 2007 Finance Transformation (Start - February 2008) Scheduled Go Live – May 2009 Go Live May and June 2009 SAP Budget Control system (October 2009 - June 2010) Go Live July 2010
5. Comptroller Operations before transformation Inflexible Organizational Structure The Office of the Budget had two bureaus and five comptroller offices providing accounting and payment services. Offices were aligned around agencies rather than business processes. This inefficient structure resulted in higher operating costs and payment delays. Inefficient, Costly Processes Nonstandard processes and procedures in each office and bureau Frequent non-value-added handoffs of paper documents Labor-intensive effort, often resulting in delayed payments to vendors Duplicate scanning performed in Comptroller Operations and Treasury Department Paper, Paper and MORE Paper! Paper invoices sent to hundreds of different locations across the state for processing Thousands of paper documents stored in filing cabinets Excessive annual mailing costs associated with transporting paper documents No visibility of invoice status
6. Finance Transformation Goals: FASTER,BETTER, CHEAPER!
7. Major Changes Occurred in Three Areas: PEOPLE Consolidated 535 staff members in a central location and organized them around function. Implemented a centralized call center for state vendors, contractors and agency personnel. Established a Workforce Development and Training Office to provide financial, accountability and audit training to all commonwealth employees. Instituted a Quality Assurance function to assess and monitor the adequacy of internal controls, process design and performance metrics.
8. Major Changes Occurred in Three Areas: TECHNOLOGY Created centralized post office boxes for the receipt and scanning of invoices to reduce sorting and handling costs. Integrated invoice images and electronic approval capabilities within the existing IT system for both purchase-order and non-purchase-order-related invoices. Expanded the use of electronic invoicing with utility companies to reduce payment time and processing costs and receive rebates. Employed electronic imaging of checks to expedite the recognition of commonwealth revenue, allowing for deposits to be synchronized with the financial reporting system. Developed reports and dashboards to improve invoice lifecycle visibility and performance metrics.
9. Major Changes Occurred in Three Areas: PROCESS Developed a completely paperless procure-to-pay process. Provided electronic real-time visibility of invoices. Eliminated non-value-added handling of paper invoices and revenue documents. Developed and documented standardized procedures for payables, revenue, accounting and auditing. Streamlined approval processes by removing requirements for duplicate approvals. Eliminated the printing of paper documents for certain revenue documents. Developed a reporting solution for required Federal stimulus section 1512 reporting. Formed an audit committee and implemented a risk-based audit approach to an annual, internal audit plan that is more aligned with the administration’s priorities.
10. … and realized significant benefits Standardization of policies and procedures Improved allocation of resources Collocated staff for a more flexible organization and increased capacity Maximized the existing integrated, ERP system. New electronic invoice process Identified areas for continuous process improvement/efficiencies Improved coordination and communication within commonwealth agencies.
11. The Pennsylvania Office of Comptroller Operations Budget Secretary Executive Deputy Secretary for Budget and CFO AuditCommittee State Comptroller/ Chief Accounting Officer, Office of Comptroller Operations Office of Workforce Development and Training Bureau of Planningand Management Bureau of Commonwealth Payroll Operations Bureau of Liquor Control Board Services Bureau of Commonwealth Accounting Bureau of PayableServices Bureau of Financial Management Bureau of Quality Assurance Bureau of Audits
12. Impressive Results in 24 Months
13. Finance Transformation Results
14. Finance Transformation Results
15. The Impact of Finance Transformation on Comptroller Operations
16. The Comptroller’s role in current Government Reform initiatives Support of the Governor’s Transparency project – Penn Watch portal Elimination of Travel Per Diems – system, process, and policy changes Strengthening of Financial Policies and Management Controls Support for Privatization of State-owned Wine & Spirit stores Continuous Identification of Process and System Improvements Collaboration with other agencies to save costs, eliminate redundancy & paper Using Internal Audits and a statewide audit committee to focus audit resources on risk Expansion of Purchasing card and pursuing Vendor discounts