New Mexico State Treasurer’s Office DoIT Project Certification Committee Integrated Treasury Solution Project Close-Out November 13, 2018

Project Background to PCC June 22, 2016 Several reports and memos published regarding Cash Accounting Controls (LFC, 2012) and Current State Diagnostic of Cash Control (Deloitte, 2012) Documents pointed to need for an alignment of business and accounting practices and use of an integrated book of record Current investment accounting system (QED) was not integrated or interfaced with SHARE Manual entries were run monthly to true-up SHARE’s general ledger Many other processes were maintained in spreadsheets When SHARE was implemented 2006, the Treasury module was only partially configured

Original Project Goals and Objectives Minimize manual processes Provide integration of and transparency into STO’s investment and debt positions Leverage the State’s existing investment in SHARE Facilitate book-to-bank reconciliation for DFA and agency fund balance verification for the OSA

Project Goals and Objectives (continued) The Treasury Management System integrates: Electronic funds transfers (e.g., wires and ACH) Cash and liquidity management Cash forecasting Debt and investment management Financial risk management (counterparty, interest rate risk, etc.)

Current Project Status Completed May 18, 2018 All investments are in SHARE Deal Management Financial Gateway was implemented as part of SHARE upgrade STO now dispatches all ACH files for payments transacted through SHARE Deal Management is generating automated general ledger entries for all bank and investment activity

Current Project Status (continued) LGIP participant accounts are in SHARE Investment Pools module and statements have been generated from SHARE for eight months. All LGIP activities are maintained in a separate business unit for security and accounting purposes BPIP participant accounts are in SHARE’s Investment Pools module

Current Project Status (continued) Agency fund balances are tracked and reported in SHARE cash management STO now oversees the granting of user access for treasury roles

Ever-Improving Investment Accounting A few years ago, accounting was recorded once per year by STO’s CPA Monthly summary entries have been run since 2013 The new system posts entries at the transaction level “Drinking from the firehose”

Summary of Project Costs and Benefits Appropriated - $1,950,000 Actual costs - $1,946,300 Benefits Investments, bank accounts and pools in SHARE Accounting automated Transparency

Lessons Learned PeopleSoft is powerful but generic; it is not a robust investment-management system JPM’s reporting system has helped fill gaps Ongoing support will be necessary Don’t assume that PeopleSoft’s system is flawless Investment pools application has delivered bugs

Opportunities for Additional Enhancements Additional automated interfaces JPM, WFC, Bloomberg, and other banks Bond accounting/project fund tracking and processing Review business processes and organizational structure

Contact Information Sam Collins, Deputy State Treasurer Brent Johnson, Chief Information Officer 2055 South Pacheco Street, Suite 100 Santa Fe, NM 87505 505.955.1120