Commonwealth of Massachusetts IT Consolidation Program IT Finance and Budgeting Sub-committee Discussion Document June 2, 2010 DRAFT FOR DISCUSSION PURPOSES ONLY

- 1 - DRAFT FOR DISCUSSION PURPOSES ONLY Agenda 1.MAXIMUS Update - (Chantal Mont-louis – 5mins) 2.Review of Outstanding Chargeback Guidance (Chantal Mont-Louis/Katie Luddy– 45mins) 3.Critical Dependencies (Chantal Mont-louis – 5mins) 4.Upcoming Agenda Items (Chantal Mont-louis – 5mins)

- 2 - DRAFT FOR DISCUSSION PURPOSES ONLY MAXIMUS Update DateITEMOwner 5/28/10 Two draft rates sent to EOPS: one with fringe and one without. MAXIMUS 6/7-6/11Draft rates sent to all secretariatsMAXIMUS 6/9MMARS training for chargebackOSC 6/14-6/18Secretariat trainings on how to apply MAXIMUS rates MAXIMUS

- 3 - DRAFT FOR DISCUSSION PURPOSES ONLY Outstanding Guidance for Chargeback 1.Is there a way to operationalize the chargebacks for the four rates in MMARS?  MMARS does not have automatic transaction/reconciliation features  Secretariat can set up their own templates to facilitate transactions  Kathy Sheppard will provide more Guidance at 6/9 meeting 2.How often do Secretariats need to reconcile their chargebacks with actuals (monthly, etc.)  For audit purposes, secretariats can reconcile to actual on a quarterly basis, adjust their rates accordingly, and document changes.  After the first quarter of FY11, OSC will ask MAXIMUS or another third party vendor to review and advise on the secretariat methodologies used  Kathy Sheppard will provide further guidance at the 6/9 subcommittee meeting 3.How will fringe revenue be recouped into the general fund to ensure there is no hit to the general fund?  TBD

- 4 - DRAFT FOR DISCUSSION PURPOSES ONLY Outstanding Guidance for Chargeback 4.Should we plan for a midyear major reconciliation to start to determine whether we'll have a major roll-forward into FY12?  No 5. How to implement desktop/LAN rate if equipment isn't tied to a specific account?  TBD based on 6/2 Finance subgroup meeting  SCFO/SCIO: - What is your current tracking method for assets, specifically for those paid for by grants, capital, trusts, etc.? 6. Open for FY11 for lead agency Secretariats - are there any options? Temporary ISAs, etc.?  Lead Agency can process transactions up to approval phase. Secretariat employee must be the final approver.

- 5 - DRAFT FOR DISCUSSION PURPOSES ONLY Critical Dependencies Still Under Development # Pending Guidance Item DescriptionLead Response Deadline Start DateStatus 1 Asset Management What is the process for transferring Assets from agency to the secretariat? How soon does this need to be completed? Linda HamelTBD In Progress 2Chargebacks Guidance related to chargebacks, other than billing rates (e.g., process of reconciliation, etc.). Kathy Sheppard6/1/20107/1/2010In Progress 3 Fringe / Indirect / Payroll Taxes How do we use the chargeback account xxxx-1701 to charge off-budget accounts without losing revenue to the general fund from fringe or indirect rates? ANF, Eric Berman, and Kathy Sheppard 6/1/20107/1/2010In Progress 4 IT Bond Authorization Should bond authorization remain at the agency level or at the secretariat level? ITD, Lou AngeloniTBD In Progress 5 Open / Close Issues What needs to occur in order to Close FY10 and Open FY11 (mainly for lead agency model)? Kathy Sheppard6/1/20107/1/2010In Progress 6 Service Level Agreements (SLA) Develop sample documents for at least 2 SLAs for IT services and administrative services HHS/HED6/1/20107/1/2010Complete 7 “Shared IT Services” Legislative Authorization What are the alternative implementation steps for Lead Agency Models if Shared Service Language is not enacted OSC/ANF6/1/20107/1/2010In Progress 8 FTE Position Transfers What is the process for making sure that FTEs are transferred to the correct IT account ANF6/1/20107/1/2010In Progress

- 6 - DRAFT FOR DISCUSSION PURPOSES ONLY Next Weeks Subcommittee Meeting (6/9/10)  Chargeback Guidance – (Kathy Sheppard)  IT Bond Authorization – (Darrel Harmer/Walter Brownell)  FTE Position Transfers – (Chantal Mont-Louis)