1. STATE OF WASHINGTON Office of Financial Management March 19, 2003 Allotment/Appropriation System Brainstorming Meeting Statewide Financial Systems Accounting Division

2. AGENDA Introduction Project organization Target schedule Current System Shortcomings Vision of new system System objectives Break Workshop framework Workshop discussion Workshop summary Next Steps Accounting Division Statewide Financial Systems

3. OFM Planning Team Introductions – Kay Baxstrom – Dan Cole – Debbie Hoxit – Dennis Jones – Bob Lewis – Sara Lieberman – Lynne McGuire – Muoi Nguy – Sharon Novak – Art Overman – Vicki Rummig – Jim Scheibe – Allen Schmidt Accounting Division Statewide Financial Systems

4. Appropriation/Allotment Project Organization – 3/5/03 Customer Group Validates Requirements, Functionality, Usability and Quality Assurance Project Assessment Program Testing Development Logistics Product User Ed Development Team Project Executive Sponsor Spokesperson, advocate, policy contact, authorization _______________________________________ Executive Advisory Committee Guidance on prioritization and risk Budget Officers Validates Process Impacts, and Project Plans OFM Planning Team Monitors scope, risk, and plans

5. Appropriation/Allotment Project Participation - 3/5/03 Quality Assurance Sterling Associates Executive Advisory Committee 1. Candace Espeseth – OFM Chair 2. Sadie Hawkins - OFM 3. Nick Pender - OFM 4. Larry Dzieza - DOL 5. Ron McQueen GA 6. Melanie Griffin - L&I Customer Group OFM Budget Division OFM Statewide Accounting OFM Statewide Systems Legislature Agencies Project Development Team Program Allen Schmidt Sharon Novak Product Art Overman Sara Lieberman Vicki Rummig Lynne McGuire Kay Baxstrom 7. Bob Hubenthal, DSHS Capital 8. Bill Ford, DOT 9. Dave Daniels, DSHS Operating 10. Nancy Stevenson, DOE 11. Yolanda Wilson, OFM SACS 12. Shelly Hagen, DOR 13. Michael Mann, LEAP Dan Wilson, LEAP User Ed Sara Lieberman Art Overman Nancy Johnson Vicki Rummig OFM Budget Division Legislature Development Tom Heichelbech Kent Andrus Contract Developer OFM IS Division Logistics Tom Heichelbech Keith Cooper Don Morris Erik Larson Testing Cynthia Roach Shaun Wilson Contract Tester OFM Budget Division Agency Budget Officers Executive Sponsor Candace Espeseth OFM Planning Team Lynne McGuire Dennis Jones Allen Schmidt Sharon Novak Art Overman Vicki Rummig Sara Lieberman Kay Baxstrom Debbie Hoxit Dan Cole Jim Scheibe Muoi Nguy

6. Targeted Schedule – February 2003 to June 2003- Define Vision, Scope, and Requirements Phase – July 2003 to December 2003 - Start System Design Phase – January 2004 to December 2004 - Start System Development Phase – January 2005 to August 2005 - Start System Implementation Phase Accounting Division Statewide Financial Systems

7. Current System Shortcomings The current process of developing, processing, editing, and reviewing appropriation schedules and allotments is time consuming Multiple databases create barriers in sharing information among system and system users Data must be re-keyed into different systems Current system does not support real time processing and reporting Current system is not flexible to support changes in policy or business practices Data is not readily accessible for analysis and research There is no current system linkage between the appropriation schedule information and controls and allotment development and reviews Accounting Division Statewide Financial Systems

8. Vision of New System Washington State Government will have a common tool that effectively supports the appropriation schedule and allotment development, management, reporting and monitoring needs of agencies, OFM, legislature and the public. The system will help people through the process, making it easy for them to create and access the information needed and helping them to comply with the allotment instructions. Most functions of the appropriation schedule/allotment process will be performed electronically in a way that minimizes staff time in low- value tasks of data entry, editing and maximizes the time all parties have available for the high-value interpretation, planning, analysis and review functions of the process. The system will be flexible enough to support changes in financial management policies. Accounting Division Statewide Financial Systems

9. Allotment and Appropriation System Objectives Replace the following systems: APS – Allotment Preparation System TAPS – The Allotment Preparation System OFMARS – OFM Allotment Reporting System ALOTRPTS – OFM Allotment Reporting System OFM Expenditure Authority System Other systems likely to be impacted Executive Monitoring Statewide Monitoring Database Capital Monitoring AFRS BASS Salary Projection System FASTRACK BASS Budget Development System BASS Capital Budgeting System Accounting Division Statewide Financial Systems

10. Allotment and Appropriation System Objectives Build a single system for the development and management of appropriation schedules and allotments Appropriation schedule development and reporting Allocation development and reporting Operating, Transportation, Capital, Cash, Revenue, Allotment development, review, management, and monitoring Unanticipated receipts development, review, and management Seamless integration with existing OFM services and systems when feasible Eliminate the need to use multiple systems, both internal and OFM systems, to track and monitor allotments Accounting Division Statewide Financial Systems

11. Allotment and Appropriation System Objectives Identify and implement new processes to simplify appropriation schedule and allotment development and management System edits that support allotment instructions Use appropriation schedules to support allotment development and review Increase ease and decrease time of developing a spending plan Eliminate the need to re-key data Views of data are consistent Automated notification and process tracking Improved method for documentation of historical and adjusted appropriation schedules or allotments Accounting Division Statewide Financial Systems

12. Allotment and Appropriation System Objectives Identify and implement new systems and tools to better support analysis and accuracy in the development and review of allotments Tools that support trend analysis and the ability to build allotments based on trends Cash monitoring Variance reports - Allotment vs. Actual Expenditure monitoring Provide meaningful data for analysis Accounting Division Statewide Financial Systems

13. Allotment and Appropriation System Objectives Potential System Process Improvements – Removes time consuming efforts to research data – Reports specific to agency needs – Reports are instant, easy to read, and contain key agency information requirements – Budget data modeling to assist in Budget, fiscal note and allotment preparation – The ability to copy historical allotment data from one biennium to the next – Use ratios from previous budget periods to establish an initial allotment base – Graphical representation of financial data Accounting Division Statewide Financial Systems

14. Allotment and Appropriation System Objectives Potential System Process Improvements – Scenario models that determine the affects of reductions in spending authority – Ability to project vacancy rates in staffing levels – The ability to calculate cost analysis, profit and loss ratios, and profit margin analysis – Ability to add agency specific financial and performance data to a common database – All parties involved need to see the same view of data – System allows data to be rolled up, with the ability to view lower levels of reporting – Provide ability to input data at a variety of reporting levels, organization, program index, work order, contract, etc. Accounting Division Statewide Financial Systems

15. Allotment and Appropriation System Objectives Potential System Process Improvements – More flexibility in the capital allotment process – Ability to track capital projects by contract, architect agreement, and appropriation – Reports that show multiple biennial views of capital projects – Report views of Federal revenues against Federal expenditures – Federal fiscal year report views – Receive agency appropriation schedule early, enabling allotments to be ready by July 1st Accounting Division Statewide Financial Systems

16. Allotment and Appropriation System Objectives Incremental system development approach Set priorities for core level of functionality Adequate features are developed to support critical appropriation and allotment business processes common to all customers within each customer group Core functionality built into initial release Provide subsequent functionality in future releases Accounting Division Statewide Financial Systems

17. Allotment and Appropriation System Objectives Identify quality attributes Correction features are easy to use New system is easy and simple to learn Simplified transactions Quickly executes/processes data System is reliable Accounting Division Statewide Financial Systems

18. Break Accounting Division Statewide Financial Systems

19. WORKSHOP FRAMEWORK Workshop purpose: – Begin capturing detailed business requirements – Understand business processes Today’s format: – Customer participation encouraged – Facilitated dialogue Accounting Division Statewide Financial Systems

20. WORKSHOP DISCUSSION Questions for each new slide: – Strengths and weaknesses of current system – Data and information requirements – Tools and capabilities needs – Data input and editing needs – Reporting formats – Historical data or daily data needs – Controls and edits – Communication and Notification – Documenting allotment and preparation assumptions – Steps that could be removed – Additional process steps needed? Accounting Division Statewide Financial Systems

21. WORKSHOP DISCUSSION Appropriation process – Schedule – Notification letter – Non-appropriated funds – Operating appropriations – Capital appropriations – Transportation appropriations Accounting Division Statewide Financial Systems

22. WORKSHOP DISCUSSION Allotment preparation process – Operating allotment preparation – Capital allotment preparation – Transportation allotment preparation – Revenue allotment preparation – Cash Receipts and Disbursements allotment preparation Accounting Division Statewide Financial Systems

23. WORKSHOP DISCUSSION Allotment submittal process – Methods of submittal – Allotment submittal due dates Accounting Division Statewide Financial Systems

24. WORKSHOP DISCUSSION Allotment review and approval process – Approval notification – Allotment data is transferred to AFRS after OFM review and approval – Correction of invalid data – Analyst questions Accounting Division Statewide Financial Systems

25. WORKSHOP DISCUSSION Financial Monitoring and Data analysis – Consistent views of information – Variance reports – Revenue and Expenditure monitoring – Cash flow monitoring – FTE monitoring – Expenditures by funding source monitoring – Data research – Capital and Operating Monitoring – Administrative Agency Fund Monitoring Accounting Division Statewide Financial Systems

26. WORKSHOP DISCUSSION Allotment adjustments – Allotment amendments – Document significant shifts in spending plans – Unanticipated receipts Accounting Division Statewide Financial Systems

27. WORKSHOP SUMMARY Next steps: – Compile information. – Analyze workshop information. – Draft Allotment & Appropriation System business requirements document and send out for review Accounting Division Statewide Financial Systems

28. Information and Reminder Contact Information Sara Lieberman Phone: 360.725.5263 E-mail: Sara.Lieberman@OFM.WA.GOVSara.Lieberman@OFM.WA.GOV Next meeting Requirements Definition & Refinement April 16, 2003 1:30pm Tumwater Point Plaza Training Room Accounting Division Statewide Financial Systems