Deloitte Consulting LLP Commonwealth of Massachusetts IT Consolidation Program IT Finance and Budgeting Sub-committee Discussion Document February 17, 2009 DRAFT FOR DISCUSSION PURPOSES ONLY

- 1 - DRAFT FOR DISCUSSION PURPOSES ONLY Agenda 1.Confirm Maximus material submission (Chantal Mont-Louis - 20 mins.) 2.Review status of operating models and workplans (Chantal Mont-Louis- 20 mins.) 3.Discuss the workplan development and implementation; Review common activities (Alex Blair - 20 mins.)

- 2 - DRAFT FOR DISCUSSION PURPOSES ONLY Confirm Maximus material submission Additionally, Eric Berman requested that each Secretariat complete an analysis of the directly charged vs. indirectly charged resource using the worksheet he provided. Information Request MAXIMUS IT Consolidation Allocation Project Administration and FinanceReceived 1)Updated Org ChartX 2) Listing of all programs / funding sources that require direct charges of IT costs 3)Most recent listing of number of LAN connections by AgencyX 4) Listing of IT cost allocation Methods used for Child Support Enforcement PACAP (From DOR) X Public Safety 1)Finalized Org Chart X 2)Help Desk call log summaries for July January 2010 X 3)Most recent listing of number of LAN connections by Agency X Housing and Economic Development 1)Help Desk call log summaries for July January )Most recent listing of number of LAN connections by Agency 3) Summary of all timesheets that are kept by consolidated ITD staff from July January 2010 (or whenever they first became available) Energy and Environmental Affairs 1)Updated Organizational Chart X 2)Most recent listing of number of LAN connections by Agency 3)Help Desk call log summaries for July January 2010X Information Request MAXIMUS IT Consolidation Allocation Project Transportation and Public WorksReceived No files requested - Separate DICAP outside of this projectX Labor and Workforce Development No files requested - Agency will modify current process to account for IT consolidation X Health and Human Services No files requested - Agency will modify current process to account for IT consolidation X Education 1)Updated Organizational ChartX 2)Most recent listing of number of LAN connections by Agency X 3)Number of web pages by agency X General 1)Updated FY11 Budget informationX 2)Updated listing of employeesX Below is a summary of all of the data requested by Maximus:

- 3 - DRAFT FOR DISCUSSION PURPOSES ONLY Review status of operating models and workplans Incomplete Operating Models are 7.5 weeks overdue; incomplete Implementation Workplans are 6.5 weeks overdue. OutputANFEOEEEAHEDHHSLWDPSSDOT Op Model Workplan MMARS YYYY?YY? The Program is running out of time for course-corrections – please leverage the ANF and HHS results, then focus and execute on your own model and plan without further delay. Due 12/16 Due 12/24 Due 4/30

- 4 - DRAFT FOR DISCUSSION PURPOSES ONLY Process for Team Implementation Guidance Development In an effort to reduce the cumulative workload on the Secretariats and standardize common processes, the Secretariats will be paired to develop guidance on a subset of the implementation activities. Moving forward, each team will: Provide a weekly update on the implementation guidance for its respective activities and distribute written guidance for the benefit of the other Secretariats. The first weekly update will be on 3/3. In an effort to accommodate this process, the subcommittee will meet collectively for minutes each week, then provide the remainder of the time for each team to discuss their respective implementation progress and action items.

- 5 - DRAFT FOR DISCUSSION PURPOSES ONLY Team Structure for Implementation Guidance Development AreaTeamLeadIDActivity DescriptionTimeline IT Administrative Services Development EOHHS and EOEEA A1 Estimate the number of administrative staff required to support the Secretariat 1/4/2010 – 1/15/2010 A2 Document formal administrative processes for the “hub and spoke” model in an SLA 2/1/2010 – 3/1/2010 A3Develop IT administrative services report 3/1/2010 – 3/15/2010 IT Procurement MassDOT and EOHED B1 Identify the appropriate owner for all IT assets (Commonwealth, Secretariats, ITD) with leadership support. 1/4/2010 – 2/1/2010 B2Design a Secretariat-wide procurement process 2/1/2010 – 3/1/2010 B3Document the procurement responsibilities of all parties in an SLA 3/1/2010 – 3/15/2010 B4 Implement the procurement process using request fulfillment software and MMARS workflow 3/15/2010 – 4/1/2010 IT Bill Paying ANF and EOLWD C1Develop a process for validating usage on agency bills 2/1/ /15/2010 C2 Develop a reporting process between the Secretariat and the agencies to summarize their monthly bills 2/15/2010 – 3/1/2010 C3 Document the bill paying responsibilities for the agencies and the Secretariat in an SLA 3/1/2010 – 3/15/2010 Dynamic Staff Allocation EOPSS and EOE D1 Develop a standard process for aligning the resources with the appropriate skill set to each project 1/4/2010 – 2/1/2010 D2 Develop a time tracking mechanism that connects with payroll and can dynamically allocate funding from multiple accounts 2/1/2010 – 4/1/2010 D3 Update the language in the Grants to measure IT support by the number of hours of support provided rather than the number of FTEs 2/15/2010 – 3/1/2010

- 6 - DRAFT FOR DISCUSSION PURPOSES ONLY General Questions for Resolution by the Leadership Team ReferenceIDActivity Description Comptroller and Legal Review 1 What is the appropriate process for transferring assets (hardware, software licenses, maintenance contracts) from an agency to a Secretariat? 2 What is the process/can you transfer IT assets procured using federal funding/grants/trusts/assessed funding? 3 What is the appropriate process for using the chargeback with assessed accounts and other non- operating accounts in order to recoup fringe and indirect costs?

- 7 - DRAFT FOR DISCUSSION PURPOSES ONLY EOHHS IT Operating Model Implementation Major Milestones S1. Centralize Federally Funded IT Staff S2. Centralized IT Administrative Staff S3. Centralize Budgeting S4. Agency Support S5. Centralized Procurement S6. Centralized Bill Paying S7. Dynamic Allocation of IT Staff S8. Cost Allocation Plans S9. Centralized Time Tracking S10. Centralized Chargeback Reporting Transfer staff paid through federal funding to the Secretariat: Transfer administrative costs to the Secretariat IT account Plan to coordinate budgeting between the Secretariat and the agencies Plan to support IT and IT administrative staff ancillary costs Transfer procurement management to the Secretariat Transfer bill paying responsibilities to the Secretariat Develop a process to transfer staff from project to project based on need Update federal funding cost allocation plans Develop time tracking to support dynamic staff allocation Develop reporting mechanism to track chargeback funding /3-161/17-301/31-2/132/14-272/28-3/133/14-273/28-4/104/11-244/25-5/85/9-225/23-6/56/6-196/20-7/3 Scenario Description Status/ Comments We Are Here Upcoming Project MilestoneLegend:Completed Project Milestone At Risk Project Milestone

- 8 - DRAFT FOR DISCUSSION PURPOSES ONLY ANF IT Operating Model Implementation Major Milestones Scenario Description S1. Fully Centralize IT Staff S2. Centralized IT Administrative Staff S3. Agency Support S4. Centralized IT Payroll S5. Centralized Procurement S6. Centralized Bill Paying S7. Centralized HR S8. Dynamic Staff Allocation S9. Cost Allocation Plans (CAPs) S10. Centralized Time Tracking Transition from a delegated model to a centralized model for managing IT resources Develop a hub and spoke model to support all agencies with centralized IT administrative staff Plan to support IT and IT administrative staff ancillary costs Develop a plan to manage the IT payroll centrally Develop a centralized procurement management function Develop a centralized bill paying function Develop a plan to manage the IT HR workload centrally Develop a process to transfer staff from project to project based on need Update federal funding cost allocation plans Develop time tracking to support dynamic staff allocation S11. Centralized Chargeback Reporting Develop reporting mechanism to track chargeback funding S Centralized Budgeting Plan to coordinate budgeting between the Secretariat and the agencies /3-161/17-301/31-2/132/14-272/28-3/133/14-273/28-4/104/11-244/25-5/85/9-225/23-6/56/6-196/20-7/3 Status/ Comments We Are Here Upcoming Project MilestoneLegend:Completed Project Milestone At Risk Project Milestone