1. IT Spending Categories Project Overview January, 2011

2. IT Spending Categories Overview Current Commonwealth IT accounting codes and definitions are outdated and difficult to use.  Accurate IT spend data is very difficult to extract and use for IT planning and reporting because of these outdated definitions.  Restructuring IT expenditure codes and definitions is critical to appropriately budgeting for future IT initiatives, particularly given the current fiscal climate facing the Commonwealth. OA/OIT and OB are jointly coordinating efforts to update existing IT Spending Categories in SAP effective July 1, 2011. The proposed new categories will more accurately categorize commonwealth IT expenditures in the areas of Hardware, Software, Telecommunications, and IT Consulting Services: Hardware: Servers/Maintenance Network/Maintenance) Storage/Maintenance Peripherals/Maintenance Desktop/Maintenance Software Licensing Maintenance Procurement – Non-recurring/Recurring IT Consulting Services: Managed Services (Infrastructure/Software/Software as a Service) IT Help Desk Applications (Development/Maintenance & Support) Security Project Management General Telecommunications Services: Voice/Data/Security

3. Approach OA/OIT and OB are jointly coordinating efforts to update existing IT Spending Categories in SAP effective July 1, 2011, including the efforts for:  Finalization and creation of the new Commitment Items and General Ledger Accounts,  Outreach to agencies and vendors to demonstrate new spending categories,  Identification and update of existing procurements (both purchase orders and funds commitments) which will have to be updated, and ~This will include any existing multi-year procurements which extend into FY 11/12 and beyond.  Outreach to vendors regarding required updates to invoices for existing procurements for FY 11/12 and beyond. IT Spending Categories

4. Roles and Responsibilities The following groups will have assigned roles to implement the new spending categories:  OA/OIT and OB ~Project management and reporting ~Vendor outreach ~Implementation of new codes ~Identification of impacted documents ~Agency training/education ~Quality Assurance  AG, OGC, Treasury ~Approvals as required for update procurements  DGS ~Alignment of coding to statewide contracts line items to match new IT budget categories ~Vendor Outreach ~Quality Assurance  Agencies ~Fiscal, Budget, Procurement, and IT Participation ~Analysis and modification of procurements to apply new coding ~Coordination with vendors to update procurements and invoices * Note – Agencies will not be required to use the new commitment items for the 2011-12 SEM Rebudget submission; agencies can use commitment items from the initial budget submission and input SAP adjustments after the Rebudget is retracted to move budget items to the new commitment items.

5. Project Schedule IT Spending Categories

6. Project Contacts IT Spending Categories Richard Cardamone Director of Accounting, Office of the Budget rcardamone@state.pa.us Kathryn Hartzell Project Manager, Office for Information Technology khartzell@state.pa.us