OFFICE OF FINANCIAL MANAGEMENT 0 Office of Financial Management Office of Financial Management BASS Budget Officers June 18, 2003

OFFICE OF FINANCIAL MANAGEMENT 1 Budget Officer’s Meeting Agenda Priorities of Government and Activity Based Budgeting TALS – The Allotment System Update SPS – Salary Projection System Update Other BASS Information Future Meetings Comments and questions from the meeting are recorded in the purple, italicized font within the slides.

OFFICE OF FINANCIAL MANAGEMENT 2 Priorities of Government II: Preparing for the Budget Process

OFFICE OF FINANCIAL MANAGEMENT 3 Lessons Learned from Key Things Worth Keeping The focus on government-wide results Using activities as budget building blocks A top-down framework—starting with Governor/OFM, with statewide results and strategies Use of multidisciplinary teams to recommend purchase strategies Teamwork among agency executives/budget analysts/policy staff Private sector involvement and the “executive” perspective

OFFICE OF FINANCIAL MANAGEMENT 4 Lessons Learned from Key Things To Improve Take a little more time at a different time of year. Better ways to involve analysts, agencies and stakeholders Tweak some of the elements of the Priorities of Government exercise Devote more attention and support to evaluating the cost efficiency of activities Provide better tools and support Better communication with agencies Build tools that allow for both activity and increment views—without reconciliation More research, measures and evidence More timely and coordinated instructions Make refinements to activity data

OFFICE OF FINANCIAL MANAGEMENT 5 Current thinking on budget development timeline Revisit price of government analysis and budget context—Early Spring 2004 Re-convene results teams in Spring 2004 to: –Assess which strategies worked and which did not –Evaluate performance evidence and new cost information –Advise Governor/OFM about alternative strategies, costs and funding –Re-affirm or re-cast spending priorities lists –Help determine what additional direction to give to agencies as they prepare budget and legislation requests Put revised priorities and strategic alternatives before the “public” in some way (early-mid summer) Combine result team information input with agency requests and other related budget information. (Late Summer 2004) Develop recommendations for the Governor (Fall 2004)

OFFICE OF FINANCIAL MANAGEMENT 6 POG I Follow-up Steps Collect lessons learned from OFM, agencies and Legislature Translate results indicators into measurements as a means of testing budget assumptions Collect activity information related to the final budget, noting related statewide results

OFFICE OF FINANCIAL MANAGEMENT 7 Steps to Prepare for Budget Development Confirm general approach and process for budget development (late spring 2003) Continue discussions with cabinet on goals for the next budget, approach, strategy, communication strategy, how to prepare, etc. (Begin summer 2003) Identify desired elements and format for agency budget submittal (Underway now) Refine activity definitions and costs (By October 2003) Consider and implement system changes needed to support budget/accounting for activities, collection of measures, a crosswalk between activity and incremental changes. Conduct research on issues raised during POG I. Provide assistance to agencies

OFFICE OF FINANCIAL MANAGEMENT 8 Identifying desired elements for the next budget submittal Budget by activity and increment at each budget level? What does the activity and statewide result focus imply for: –Our approach to performance measures? –Strategic plan elements? Do we need specific research or information related to results areas? What information do we need on hand for the results teams? Will we do another prioritization request? Are there budget submittal elements we’ve requested in the past we no longer need? Are there any new budget submittal elements needed?

OFFICE OF FINANCIAL MANAGEMENT 9 Providing Assistance to Agencies Some things agencies have told us they will need to be successful. A process outline, general timelines, and budget submittal expectations as early as possible Early confirmation of the right set of activity building blocks Understanding the keys to faring well in POG Understanding the ways in which they can and should participate –Participation opportunities –How and where to raise issues throughout the budget process Access to advice and assistance on: –How to measure and document results –How to improve activity efficiency –Conducting internal POG exercises and other preparation strategies Tools to support activity budget development

OFFICE OF FINANCIAL MANAGEMENT 10 Additional Mention at Meeting A proviso in the enacted budget requires OFM to report to the legislature by November 15 on: –The 10 priorities of government upon which the budgets will be structured –The cross-agency activities related to each priority with definitions and outcome measures. The proviso also requires that expenditures and appropriations be restated in this format. The Activity Inventory update scheduled for this fall will be used to develop this information. Draft instructions went out to agency budget officers for comment in late May. Final instructions, which will incorporate the new proviso requirement to restate expenditures, will be out shortly. Updated activity information will be due from agencies by October 15. The Legislature has not decided at this time whether or how it will use activity information in its budget process.

OFFICE OF FINANCIAL MANAGEMENT 11 We are now exploring system tools to support activity budgeting next year We are exploring the feasibility of system changes to: –Allow for agency and OFM entry and updates of all activity description elements through BASS/Winsum –Allow for collection, management, and reporting of activity data as part of budget proposals in both BASS and Winsum –Support activity inventory reporting needs –Support needs for budget development, management and reporting by both increment and activity We have started the task of developing requirements and assessing feasibility. Over the next few months we will be asking for your help in reviewing use cases and prioritizing requirements.

OFFICE OF FINANCIAL MANAGEMENT TALS The Allotment System Update

OFFICE OF FINANCIAL MANAGEMENT 13 Allotment and Appropriation System Objectives Replace the following systems: –APS – Allotment Preparation System –TAPS – The Allotment Preparation System –OFMARS – OFM Allotment Reporting System –ALOTRPTS – OFM Allotment Reporting System –OFM Expenditure Authority System Other systems likely to be impacted –Executive Monitoring –Statewide Monitoring Database –Capital Monitoring –AFRS –BASS Salary Projection System –FASTRACK –BASS Budget Development System –BASS Capital Budgeting System

Appropriation & Allotment System Project Participation - 5/6/03 Quality Assurance Sterling Associates Executive Advisory Committee 1. Candace Espeseth – OFM Chair 2. Sadie Hawkins - OFM 3. Nick Pender - OFM 4. Larry Dzieza - DOL 5. Ron McQueen GA 6. Melanie Griffin - L&I Customer Group OFM Budget Division OFM Statewide Accounting OFM Statewide Systems Legislature Agencies Project Development Team Program Allen Schmidt Sharon Novak Product Art Overman Sara Lieberman Vicki Rummig Lynne McGuire Kay Baxstrom 7. Bob Hubenthal, DSHS Capital 8. Bill Ford, DOT 9. Dave Daniels, DSHS Operating 10. Nancy Stevenson, DOE 11. Yolanda Wilson, OFM SACS 12. Shelly Hagen, DOR 13. Michael Mann, LEAP Dan Wilson, LEAP User Ed Sara Lieberman Art Overman Nancy Johnson Vicki Rummig OFM Budget Division Legislature Development Tom Heichelbech Kent Andrus Contract Developer OFM IS Division Logistics Tom Heichelbech Kent Andrus Keith Cooper Don Morris Erik Larson Testing Cynthia Roach Shaun Wilson Sharlene McGrath OFM Budget Division Agency Budget Officers Executive Sponsor Candace Espeseth OFM Planning Team Lynne McGuire Dennis Jones Allen Schmidt Sharon Novak Art Overman Vicki Rummig Sara Lieberman Kay Baxstrom Debbie Hoxit Dan Cole Jim Scheibe Muoi Nguy

OFFICE OF FINANCIAL MANAGEMENT 15 Key Themes Of Requirements Gathered Provide trend analysis tools and graphical views of data to assist in developing accurate allotments Provide common views of data and reports System edits that support allotment instructions and submittal edit checks Provide an Expenditure Authority Schedule integrated with allotment management that makes system edits possible

OFFICE OF FINANCIAL MANAGEMENT 16 Key Themes Of Requirements Gathered Ability to provide narrative descriptions for explanation to OFM or for internal documentation of allotment assumptions Electronic notification identifying items in the workflow process Single allotment data store avoiding mass distribution of data Provide better tools for Administering Agencies Potential reporting through FASTRACK data warehouse

System Capabilities System capabilities need to be flexible to accommodate changes in Policy and Process changes Provide cash monitoring and analysis tools Seamless integration with existing OFM services and system when feasible Eliminate the need to use multiple systems, both internal and OFM systems, to track and monitor allotments System allows data to be rolled up, with the ability to view lower levels of reporting Ability to input data at a variety of reporting levels Customer Question: Is the intent to build TALS so that it can capture allotment data by activity? Response: Yes, although we do not know at this time whether this capability will be needed or used. We made the same decision when building BDS to design the capability to capture and use activity level data incase future requirements dictated this need. It is much less costly to design the foundation for this capability at the start. We believe it is prudent to use the same approach with TALS. Customer Question: Are we headed towards accounting and allotting by activity? Response: We don’t know. We know that activity information has proved valuable in the budget development process. We haven’t yet thought through the potential benefits and costs of using this information in other financial management processes. There are of course many other financial management stakeholders that would also have to be a part of any such decision.

OFFICE OF FINANCIAL MANAGEMENT 18 The Development Process Incremental system development –Set priorities for core level of functionality –Adequate features are developed to support critical appropriation and allotment business processes common to all customers within each customer group –Core functionality built into initial release –Provide subsequent functionality in future releases Resources Features Time

OFFICE OF FINANCIAL MANAGEMENT 19 Business Risks Difficult to make improvements due to existing coding requirements for other systems Not getting real time access to AFRS titles Not thinking outside the box User groups in competition for functionality and priority New system does not contain adequate functionality in first release Unique agency needs that can not be met with new system

OFFICE OF FINANCIAL MANAGEMENT 20 February 2003 to June 2003 – Define Vision, Scope, and Requirements Phase July 2003 to December 2003 – System Design Phase January 2004 to December 2004 – System Development Phase January 2005 to April 2005 – System Implementation Phase Project Time Line

OFFICE OF FINANCIAL MANAGEMENT 21 Work Completed One-on-one interviews with BASS Executive Advisory Committee members Customer Group workshops captured agency business requirements OFM Budget Operations collected non-agency system requirements Customer Group, OFM Budget Operations and LEAP ranked benefit and penalty, and BASS Team ranked requirements for cost and risk Ranked requirements were prioritized by the OFM Planning Team, and Customer Group adjusted prioritization of necessary agency focused requirements

OFFICE OF FINANCIAL MANAGEMENT 22 Next Steps Develop Use Cases –A use case describes a business task a user needs to accomplish with the system. This model for gathering and understanding user requirements explores sequences of user actions and system responses. Use cases prove valuable in system design and testing. –Use cases are being developed for mandatory and highly desirable prioritized requirements –The Customer Group will meet to review and verify correctness of agency focused use cases

OFFICE OF FINANCIAL MANAGEMENT 23 How Can You Help? Use Case Workshop #1 July 16, 2003 Use Case Workshop #2 August 20, 2003 Meeting Time and Place 1:30pm Tumwater Point Plaza Training Room

OFFICE OF FINANCIAL MANAGEMENT 24 How Do I Receive Information? Join The Allotment System Listserv Topic: UGROUPAA Contact Information Sara Lieberman Phone: To view past messages and materials sent, a complete searchable archive of information sent regarding BASS is available on-line

OFFICE OF FINANCIAL MANAGEMENT SPS Salary Projection System Update

OFFICE OF FINANCIAL MANAGEMENT 26 Salary Projection System Schedule Target Release August 2003 Training dates tentatively scheduled beginning in August. An announcement will be sent when dates have been confirmed. –Trial training run through July 23, 2003 with select agencies SPS Security – Form available today. Users will be added and notified when the system is ready. BPS1 will be available through December 2003 providing a period for agencies to transition.

OFFICE OF FINANCIAL MANAGEMENT 27 SPS Features from BPS1 Add, Update, Delete Position Files Load data from the HR Data Warehouse (entire agency only) View the detail of individual positions Variable part-time and overtime screens by month for 24 months (can be used for intermittent and board type positions) Specify parameters to include in projection (COLA, 6767, Increments) Allotment Detail, Allotment Summary, and Position Listing reports with limiter (filter) and grouping options

OFFICE OF FINANCIAL MANAGEMENT 28 SPS New Features View positions of a position file in a list on-line Ability to find a position by position number or person name from listing or detail views Optional user defined field available for each position Funded vs. non-funded flag available for each position Unlimited number of account funding lines per position Easy recording of new positions or future position changes (I.e., in-training) Ability to filter position list, reports, or for copy/merge by selected criteria (account code or limited position information) Projection results can be saved to Projection Files with options to Update or Delete file information Reports viewed on-line with option to print or export to Word or Excel Increased security options include file owners or budget operations locks to limit who has the ability to change or delete position information

OFFICE OF FINANCIAL MANAGEMENT 29 Agency Readiness for SPS March 11-April 22, 2003 BASS conducted a test with agencies to verify they could gain access to the test version of SPS. 15 agencies participated in the test. One of the testing agencies was unable to successfully gain access to SPS due to custom firewall settings at their agency.

OFFICE OF FINANCIAL MANAGEMENT 30 Agency Readiness for SPS Agencies that successfully tested access to SPS:

OFFICE OF FINANCIAL MANAGEMENT Other BASS Business

OFFICE OF FINANCIAL MANAGEMENT 32 BASS Project Time Line Sterling Associates recently conducted an evaluation of our development process and recommended OFM improve communication. Ideas and comments from agency budget staff is appreciated. One response: Customer notification if something big changes (priorities/issues) with the ability for customer to indicate if a meeting on the issue would be helpful.

OFFICE OF FINANCIAL MANAGEMENT 33 Other BASS Enhancements BDS – Enhancements planned to support policy changes for the budget development. CBS – No system enhancements planned for the Capital Plan development. PMTES – Minor fixes were completed in PMTES this month. Other enhancements not planned at this time. BRS/VRS – Reports to support policy changes planned budget development.

OFFICE OF FINANCIAL MANAGEMENT 34 Next Budget Officers Meetings September 17, :30-5:00 p.m. Point Plaza 1st Floor Training Room ____________________________________ January 21, :30-5:00 p.m. Point Plaza 1st Floor Training Room