State of Kansas Financial Management System Needs Assessment Validation Steering Committee Meeting October 25, 2006

2 Meeting Agenda  Introductions  Project Overview  Project Accomplishments  Preliminary Findings  Upcoming Activities  Next Meeting  Questions

3 Key Activities FMS Needs Assessment  Update the system requirements for a new integrated FMS  Update the business case analysis associated with implementing a new FMS  Determine whether there is a compelling business case for procuring/implementing an integrated statewide FMS  Submit recommendations regarding Organizational best practices Implementation best practices

4 Business Case Analysis Report Sept Oct Nov Dec Project Start-Up Validate the Business Case FMS Needs Assessment Update Key Deliverables Key Activities Timeline Validate Functional / Technical Requirements Updated Needs Assessment Organization / Implementation Best Practices

5 CORE FINANCIAL General Ledger / Budgetary Control Accounts Payable Accounts Receivable & Cash Receipting Cash Management Cost Allocation Grant Accounting Project Accounting Asset Management PROCUREMENT Solicitations (RFx) Catalog Procurement Reverse Auctions Inventory Management Commodity Management Vendor Management HR / PAYROLL Automated Interfaces to/from SHARP BUDGET DEVELOPMENT INTEGRATION Appropriation Budget Common Database Project Overview Proposed FMS functionality for consideration

6 Project Accomplishments Requirements Validation: Status  Conducted Focus Group Kick-Off Meeting on 10/09/ participants  Total of 104 participants in various Focus Groups  Final draft requirements are in process or have been completed for the following areas: General LedgerProcurement (in progress) Accounts ReceivableAsset Management Cash ManagementGrant Accounting Project Accounting (in progress) Accounts Payable Inventory Management (in progress) Cost Accounting / Allocation (in progress) Budget Development / Integration (in progress)

7 Project Accomplishments Stakeholder Agency Visits: Status 14 agency visits to-date: Department of Health and Environment Department of Transportation Departments of Corrections and Correctional Industries Department of Revenue Social and Rehabilitation Services State Treasurer Judicial Branch Department of Wildlife and Parks Adjutant General’s Office Department of Aging Kansas Health Policy Authority Department of Labor Department of Commerce Department of Administration

8 Project Accomplishments Business Case Validation: Status  Agency Systems Survey Briefing to Agency CFOs on 10/03/06 Received a total of 15 survey responses back, several outstanding  Value Pockets Survey Briefing to Agency CFOs planned for 11/02/06  Draft of business case report to be completed by 11/30/06

9 Preliminary Findings Lack of Integration  Financial Accounting (STARS, SOKI)  Purchasing (Procurement Manager Plus)  Asset Management (various agency systems)  Budget Development (BMS, various agency systems)  Accounts Receivable (various agency systems)

10 Preliminary Findings Functional Challenges  Procurement  Grant and Project Accounting  Fleet Management  Revenue, SRS, Corrections, KDOT, Wildlife and Parks, and KDHE  Inventory Management  Time and effort reporting in SHARP  Agency operating budget vs. appropriation budget  Real-time budget checking

11 Preliminary Findings Functional Challenges  Agencies need ability to establish lower level of detail in chart of accounts  Robust ad hoc reporting  More efficient processing of employee travel authorizations and payment  Comprehensive accounts receivable functionality including Set-Off capabilities  Central Asset Management system for assets and controllable items

12 Preliminary Findings Other  A number of agencies are either ready to seek replacement financial management systems or acquire a new system  Evaluation of Chart of Accounts Needed Financial Accounting Coding Structure Budget Coding Structure Procurement Commodity Code Structure  Accounting for Procurement Card Purchases  Difficult to obtain “true” data on statewide spend

13 Upcoming Activities  Continue Functional &Technical Requirements Validation Ongoing through November 21  Continue Business Case Analysis Business Case Report (due November 30)  Obtain Stakeholder Input and Approval November 30 – December 7  Conduct Agency Outreach Sessions December 7 – December 14  Deliver the Updated Needs Assessment December 15

14 Next Meeting  November Meeting November 16 2:00 p.m. – 4:00 p.m. Rm 102N Landon State Office Building

15 Questions?