Commonwealth of Massachusetts IT Consolidation Program IT Finance and Admin Sub-committee Update for the CIO Cabinet and Working Group Rate Development Progress and ‘Day 1’ Readiness May 17, 2010 DRAFT FOR DISCUSSION PURPOSES ONLY

- 1 - DRAFT FOR DISCUSSION PURPOSES ONLY Agenda Update on Rate Development Work ‘Day 1’ Scenarios Critical Dependencies Still Under Development

- 2 - DRAFT FOR DISCUSSION PURPOSES ONLY Update on Rate Development Work Secretariat Representatives on the IT Finance Sub-committee have received clear guidance and details on… 1.Differences of focus and scope between interim FY11 strategy and longer-term FY12 strategy ‒ FY11 strategy: predominantly salary-based since labor is largest portion of the 4 Secretariat IT services being consolidated ‒ FY12 strategy: will refine with additional cost drivers as needed to allow Secretariats to recover costs where needed 2.Rate calculations for FY11 for 4 Secretariat IT Services only (i.e., helpdesk, desktop and LAN, Web IA (static content management only), and select application services) 3.Web/IA Rate continues to be under development 4.Schedule for detailed working sessions with Maximus Team MTuWTh 5/17 1-2: EOPSS 5/ : EEA 11-1: ANF 5/ : HED 11-1: EOE 5/ : LWD

- 3 - DRAFT FOR DISCUSSION PURPOSES ONLY Update on Rate Development Work SCIOs and SCFOs should work together to collect the following information which will be used in the rate calculation 1.# of budgeted FTEs (all FTEs) for FY11 2.# of network printers, PCs and laptops 3.$ (payroll data) of IT staff (note, we will spend time during your Maximus meeting assigning each staff member to a consolidated service or overhead) 4.Estimated work hours for applications staff. This is calculated by subtracting the average leave time from the total number of workable hours in the year. 5.OUTSTANDING – data element for Web/IA

- 4 - DRAFT FOR DISCUSSION PURPOSES ONLY ‘Day 1’ Scenarios We expect the following scenarios for the administrative and financial management activities identified as high priority for July 1st: High-priority Activity Lead Secretariat Contracts Appropriate paperwork handed over from agencies to Lead Agency New process, roles, responsibilities documented and communicated to staff and vendors FY11 contracts encumbered in MMARS New process, roles, responsibilities documented and communicated to staff and vendors FY11 contracts encumbered in MMARS Budget Lead agency CFO, Secretariat CFO, and SCIO should complete agency IT needs assessment and begin budgeting process Reporting requirements defined per SCIO and Secretariat leadership needs Secretariat CFO, and SCIO should complete agency IT needs assessment and begin budgeting process HR Secretariat HR policies and procedures applied to Lead Agency staff where needed (or vice versa). Staff being converted from contractors to FTEs are identified in A&F spending plans Any newly consolidated staff made aware of Secretariat HR policies / procedures Staff being converted from contractors to FTEs are identified in A&F spending plans

- 5 - DRAFT FOR DISCUSSION PURPOSES ONLY ‘Day 1’ Scenarios We expect the following scenarios for the administrative and financial management activities identified as high priority for July 1st: High-priority Activity Lead Secretariat Payroll Both consolidated and non-consolidated FTEs are “pointed” to appropriate accounts in HR/CMS Timekeeping Timekeeping technology, if available and preferred, implemented (incl. staff training as needed) If not available, manual timekeeping template reviewed and deployed This is particularly important to main accurate records of application services time Timekeeping technology, if available and preferred, implemented (incl. staff training as needed) If not available, manual timekeeping template reviewed and deployed This is particularly important to main accurate records of application services time Procurement New process, roles, responsibilities documented and communicated Bill Paying New process, roles, responsibilities documented and communicated Ensure that all Ready Pay discounts are maintained New process, roles, responsibilities documented and communicated Ensure that all Ready Pay discounts are maintained

- 6 - DRAFT FOR DISCUSSION PURPOSES ONLY ‘Day 1’ Scenarios We expect the following scenarios for the administrative and financial management activities identified as high priority for July 1st: High-priority Activity Lead Secretariat Non-financial ISAs/Service Level Agreements Develop administrative services non-financial ISA or SLA in order to document lead agency service level and set other parameters for lead agency model Develop SLA for consolidated IT services (shared process with SCIOs) Chargebacks Chargeback ceiling may need to be adjusted to recoup fringe costs from non-budgetary accounts in chargeback account (note, fringe revenue will be returned to general fund, as it currently the case) Asset Transfers FY11 asset transfers known, communicated, and planned for (per legal, Federal, budgetary, state req’s)

- 7 - DRAFT FOR DISCUSSION PURPOSES ONLY Critical Dependencies Still Under Development Secretariats’ success in kicking off FY11 implementation depends on guidance being documented on the following outstanding items: # Pending Guidance Item DescriptionLead Response Deadline Start Date Status 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 ANF/HHS6/1/20107/1/2010In Progress 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