2. OFFICE OF FINANCIAL MANAGEMENT 0 Office of Financial Management Office of Financial Management BASS Budget Officers October 6, 2004

3. OFFICE OF FINANCIAL MANAGEMENT 1 Budget Officer’s Meeting Agenda SAP Feasibility Study Results and Recommendations BASS Project Timeline The Allotment System Project Update Salary Projection System - Release 2 Performance Measure Tracking OFM Consolidated Systems Update Activity Budgeting Q&A

4. OFFICE OF FINANCIAL MANAGEMENT 2 SAP Feasibility Study Results and Recommendations

5. OFFICE OF FINANCIAL MANAGEMENT 3 Background New HRMS system will be implemented using SAP OFM wanted to determine if it made sense to use SAP rather than a customized solution for TALS, SPS and CIM OFM awarded contract to Dye Management in May 2004 and completed in August 2004

6. OFFICE OF FINANCIAL MANAGEMENT 4 Contract Deliverables Demonstration of how SAP will meet requirements of the systems Gap-analysis Interface Assessment High-level implementation plan Implementation risk assessment Implementation cost and schedule

7. OFFICE OF FINANCIAL MANAGEMENT 5 Major Finding  Study recommended implementing TALS and SPS using SAP Business Warehouse and Strategic Enterprise Management (SEM), not using the core SAP R/3 components

8. OFFICE OF FINANCIAL MANAGEMENT 6 What is the Business Warehouse? SAP’s data warehouse functionality Includes tools to extract and store R/3 data for reporting and analysis Includes tools to import and export data to outside applications

9. OFFICE OF FINANCIAL MANAGEMENT 7 What is Strategic Enterprise Management (SEM)? A planning tool Provides planning folders to define the user views of the data in the Business Warehouse

10. OFFICE OF FINANCIAL MANAGEMENT 8

11. 9 What this means Data is pushed from R/3 to Business Warehouse The functionality needed was not “out-of-the-box” functionality New set of tools for developers to learn and support

12. OFFICE OF FINANCIAL MANAGEMENT 10 Why BW and SEM, and not R/3? Flexibility (allows for multiple data sources) Interactive Modeling (SAP R/3 requires batch processes) User Interface (ability to for the screens to be designed more efficiently) HR Interaction (SAP R/3 required adding vacant positions to the master data file – could become a licensing issue with the HRMS system)

13. OFFICE OF FINANCIAL MANAGEMENT 11 OFM Recommendation Process Identify Alternatives Identify advantages and disadvantages of each alternative Select the optimal alternative

14. OFFICE OF FINANCIAL MANAGEMENT SPS

15. OFFICE OF FINANCIAL MANAGEMENT 13 Alternatives Considered 1.Use SAP Workforce Analytics at the R/3 level. 2.Use SAP/SEM at the Business Warehouse level 3.Modify the current SPS application to do projections based on collective bargaining and the new HR rules as a long-term strategy 4.Modify the current SPS application to do projections based on collective bargaining and the new HR rules as a short-term strategy to accommodate the development of allotments. Revisit the use of SAP at a later date as a long- term solution

16. OFFICE OF FINANCIAL MANAGEMENT 14 Alternative 1: Use SAP Workforce Analytics at the R/3 level Advantages DOP is already planning to implement some Workforce Analytics functionality in Release 2 of the new HRMS. The database structure and business rules for collective bargaining and civil service reform will exist in SAP for the new HRMS. Assumed that this will use more out-of-box functionality in SAP and require less programming and configuration than the Business Warehouse solution.

17. OFFICE OF FINANCIAL MANAGEMENT 15 Alternative 1: Use SAP Workforce Analytics at the R/3 level Disadvantages Unclear at how well Workforce Analytics will meet requirements. DOP’s timeline for Release 2 is August 2005, while SPS timeline is July 2005. Risk of impacting HRMS (would need to ask them to adjust their schedule). Could potentially be the only OFM system in SAP. Specialized skills needed. SAP uses a proprietary tool set. Required training for staff. Information regarding this solution is incomplete and will take additional time and analysis. Impact on April 2005 implementation timeline.

18. OFFICE OF FINANCIAL MANAGEMENT 16 Alternative 2: Use SAP/SEM at the Business Warehouse level Advantages “Appears” to meet requirements More flexibility to create custom functions Lays the groundwork for getting the database structure in the Business Warehouse for all OFM applications that will need to use it

19. OFFICE OF FINANCIAL MANAGEMENT 17 Alternative 2: Use SAP/SEM at the Business Warehouse level Disadvantages Consultant team needed by the end of September 2004 in order to meet SPS implementation timeline of April 2005. Could potentially be the only OFM system in SAP. Specialized skills needed. SAP uses a proprietary tool set. Will need training for staff. If DOP implements Workforce Analytics, may end up with two ways of doing some of the same functionality.

20. OFFICE OF FINANCIAL MANAGEMENT 18 Alternative 3: Modify the current SPS application to do projections based on collective bargaining and the new HR rules as a long-term strategy Advantages User experience will not change from current. Will use a known tool set. No additional training for developers and testers Ability to incorporate more long-term functionality and features

21. OFFICE OF FINANCIAL MANAGEMENT 19 Alternative 3: Modify the current SPS application to do projections based on collective bargaining and the new HR rules as a long-term strategy Disadvantages Recurring cost of updating business rules. May not be able to address all functionality with available resources and time. If DOP implements Workforce Analytics, may end up with two ways of doing some of the same functionality

22. OFFICE OF FINANCIAL MANAGEMENT 20 Alternative 4: Modify the current SPS application to do projections based on collective bargaining and the new HR rules as a short-term strategy to accommodate the development of allotments. Revisit the use of SAP at a later date as a long-term solution. Advantages Buys us time to make the right long-term decision. User experience will not change from current. Will use a known tool set. No additional training for developers and testers. Available resources and time. By concentrating on only the functionality needed for developing projections for allotments, development and testing effort will be less. Will be able to convert existing SPS position data into new format. Less risk to July 2005 timeline. Need to get system modifications implemented in time for allotments. Less risk for project management. Dealing with the “knowns” rather than the “unknowns.”

23. OFFICE OF FINANCIAL MANAGEMENT 21 Alternative 4: Modify the current SPS application to do projections based on collective bargaining and the new HR rules as a short-term strategy to accommodate the development of allotments. Revisit the use of SAP at a later date as a long-term solution. Disadvantages One-time cost of updating business rules. Potential to be a throw-away system if custom application is not used as a long-term solution.

24. OFFICE OF FINANCIAL MANAGEMENT 22 Recommendation for SPS Modify the current SPS application to do projections based on collective bargaining and the new HR rules as a short-term strategy to accommodate the development of allotments

25. OFFICE OF FINANCIAL MANAGEMENT 23 TALS

26. OFFICE OF FINANCIAL MANAGEMENT 24 Alternatives considered 1.Use SAP/SEM at the Business Warehouse level 2.Build a new custom solution

27. OFFICE OF FINANCIAL MANAGEMENT 25 Alternative 1: Use SAP/SEM at the Business Warehouse level Advantages Moves OFM towards implementing Enterprise Resource Planning, rather than custom solutions. Potentially, reduces total cost of ownership. Lays the groundwork for getting the database structure in the Business Warehouse for other financial systems that might want to use it. Looks as if the implementation date could be earlier than the custom solution date

28. OFFICE OF FINANCIAL MANAGEMENT 26 Alternative 1: Use SAP/SEM at the Business Warehouse level Disadvantages Not buying anything that is pre-built. New set of tools, new expertise required May be too early to assume that SAP will be the solution for Washington State Cost looked similar, but the study did not base the cost estimates on the level of complexity assessed during the Gap Analysis

29. OFFICE OF FINANCIAL MANAGEMENT 27 Alternative 2: Continue with a custom solution Advantages More flexibility to build the customers what they want Known set of tools One layer of project management Less contracting work

30. OFFICE OF FINANCIAL MANAGEMENT 28 Alternative 2: Continue with a custom solution Disadvantages Total cost of ownership may be higher than using SAP This direction may be different from what other statewide financial systems choose to do.

31. OFFICE OF FINANCIAL MANAGEMENT 29 Recommendation for TALS Continue building a custom solution

32. OFFICE OF FINANCIAL MANAGEMENT Questions?

33. OFFICE OF FINANCIAL MANAGEMENT 31 BASS Project Timeline

34. OFFICE OF FINANCIAL MANAGEMENT 32 High-Level BASS Project Timeline and Implementation Dates for 2004 - 2007

35. OFFICE OF FINANCIAL MANAGEMENT 33 TALS The Allotment System Update

36. OFFICE OF FINANCIAL MANAGEMENT 34 TALS Update Agenda EA Work Plan Work Completed for Expenditure Authority Phase 1 TALS Risk and Mitigation Strategy Resources Plan

37. OFFICE OF FINANCIAL MANAGEMENT 35 TALS EA Work Plan Design (April 2004 – Oct. 2004) Iteration 1 Construction and Testing (Sept. 2004 – Nov. 2004) –Import from WinSum and BuildSum Iteration 2 Construction and Testing (Mid Oct. 2004 – Jan. 2005) –Schedule Management (Operating, Capital) –Expenditure Authority Schedule Report –Expenditure Authority Schedule by Account –Filter –Provisos –Allocations –Reserve Requirements Iteration 3 Construction and Testing (Dec. 2005 – March 2005) –OFM Publish (release data) –Agency interface to reports –Update Chapter Numbers –Update AFRS –Non-appropriated allocations –OFM ability to view all agency schedules that have not been published

38. OFFICE OF FINANCIAL MANAGEMENT 36 TALS EA Work Plan Continued Iteration 3 Continued –Reports Null and Void report Bill Numbers without Chapter numbers Report Statewide EA Schedule by EA Type Statewide EA Schedule by Account Statewide EA Schedule by Account and EA Type Agency EA Schedule by EA Type Agency EA Schedule by Account and EA Type Iteration 4 Construction and testing (March 2005 – May 2005) –Table Management –Schedule Management (Supplemental) –Audit Trail –Incremental changes and comment field –Incremental change report –Audit Trail report

39. OFFICE OF FINANCIAL MANAGEMENT 37 Work Completed Expenditure Authority Phase 1 Iteration 1 – Import design document complete Test cases complete and testing has started Iteration 2 – Operating and Capital design documents complete –Filter, Provisos, Allocations, and Reserve Requirements included in design documents –Expenditure Authority Schedule report draft complete Sample reports will be reviewed by customer group in November Iteration 3 - Update Chapter Numbers design document complete Iteration 4 – Supplemental design document complete Construction began in September 2004. –Construction started on Import, Exception and Event logging, Web service (to enable TALS accessibility thru the fortress), Common BASS.NET framework that enables a common look and feel between TALS and SPS TALS EA is on schedule for Implementation in April 2005.

40. OFFICE OF FINANCIAL MANAGEMENT 38 TALS Risk and Mitigation Strategy PROJECT PROCESS RiskMitigation Will the system phases be ready at the appropriate time in the business cycle? Allotment Management – Phase 1 4/06 Allotment Management – Phase 2 4/07 Continue to make APS/TAPS and existing systems available. (Dependent on additional resources) Continue to assess resources and features for adequacy of resources and to confirm necessity of features Mitigation - Continue to use current manual process

41. OFFICE OF FINANCIAL MANAGEMENT 39 TALS Risk and Mitigation Strategy RESOURCES RiskMitigation How do we avoid spreading resources too thin to adequately develop and test new system? Utilize continuous change management and scope control, detail a plan for each phase of the project, assess time and resources Identify and negotiate time commitments from all stakeholders How do we minimize the impacts to external systems? Engage in discussions with experts from systems that will interface with TALS Can the TALS EA data be provided to the current mainframe systems that support the allotment review process, until allotment review becomes part of TALS? Early and continual analysis of interface needed

42. OFFICE OF FINANCIAL MANAGEMENT 40 TALS Risk and Mitigation Strategy BUSINESS PRACTICES RiskMitigation Some unique agency needs may not be met with the new system. Use iterative release process. Identify agency needs through customer requirements definition process. Identify common components to all customer groups, and target them for first release. Complete additional requirements for subsequent release. Some agency unique needs may not be met.

43. OFFICE OF FINANCIAL MANAGEMENT 41 Resources for TALS  One new tester and one new developer acquired for the Expenditure Authority Schedule Phase 1, bringing the total for this portion to 2.5 developers and 2 testers.

44. OFFICE OF FINANCIAL MANAGEMENT Questions?

45. OFFICE OF FINANCIAL MANAGEMENT 43 How Do I Receive Information? Join The TALS Listserv http://listserv.wa.gov Topic: UGROUPAA Contact Information Kay Baxstrom Staff Consultant OFM Budget Division kay.baxstrom@ofm.wa.gov 360 902-0566 Sara Lieberman BASS Product Manager OFM Statewide Financial Systems sara.lieberman@ofm.wa.gov 360 725-5263

46. OFFICE OF FINANCIAL MANAGEMENT 44 Salary Projection System Release 2

47. OFFICE OF FINANCIAL MANAGEMENT 45 Salary Projection System: Release 2 By April 2005 the SPS system will be updated to: –Enable import of data from the new HRMS system –Ensure salary projection calculations work with new DOP rules and collective bargaining items –Include the “bulk update” feature to allow agencies users to change many records in one step

48. OFFICE OF FINANCIAL MANAGEMENT 46 Salary Projection System: Release 2 (continued) Development effort for the April 2005 date is a temporary solution. OFM will continue to explore the possibility: –Of implementing the SAP product in the future Or –Further enhance SPS to provide all required functionality long-term salary projection solution

49. OFFICE OF FINANCIAL MANAGEMENT 47 Performance Measure Tracking

50. OFFICE OF FINANCIAL MANAGEMENT 48 Performance Measure Tracking By July 2005 a new function will be added to BASS to support performance measure estimating and tracking. System requirements have been identified, prioritized, and reviewed by agency users. Additional copies of the requirements are available

51. OFFICE OF FINANCIAL MANAGEMENT 49 Performance Measure Tracking

52. OFFICE OF FINANCIAL MANAGEMENT 50 OFM Consolidated Systems Update

53. OFFICE OF FINANCIAL MANAGEMENT 51 Consolidating OFM Systems OFM strives to create a common architecture where OFM systems are better coordinated and result in a more seamless experience for agency users. Two projects are underway toward this effort today: –Consolidated servers –Common Authentication (single sign-on)

54. OFFICE OF FINANCIAL MANAGEMENT 52 Consolidated Servers BASS will be moving to servers shared with other OFM applications in October. The URL (address) to access BASS will change as a result. New URL is: http://systems.ofm.wa.govhttp://systems.ofm.wa.gov

55. OFFICE OF FINANCIAL MANAGEMENT 53 Common Authentication Various OFM teams are working together to define requirements for a common authentication structure. Agencies will be able to administer their own security for all OFM systems involved when implemented. Agency users will have one login ID and password to access all systems affected that they have security for. Target date for implementation is unknown but not likely before next biennium.

56. OFFICE OF FINANCIAL MANAGEMENT 54 2005-07 Budget Submittal Questions?? Concerns?? Discussion??

57. OFFICE OF FINANCIAL MANAGEMENT 55 Operating Budget Statistics 91 agencies released as of 9/16/2004 5:00p 70 agencies with CFL loaded from WinSum 7 agencies called BASS Helpline with ML by Activity Confusion 72 released agencies with no M2-9Z (recast) 19 agencies released with an M2-9Z for recast or redistribution of activity dollars

58. OFFICE OF FINANCIAL MANAGEMENT 56 Next Budget Officers Meetings January 19, 2005 1:30-5:00 p.m. Point Plaza 1st Floor Training Room ____________________________________ May 18, 2005 1:30-5:00 p.m. Point Plaza 1st Floor Training Room