1. OFFICE OF FINANCIAL MANAGEMENT 0 Office of Financial Management Office of Financial Management BASS Executive Advisory Committee June 20, 2003

2. OFFICE OF FINANCIAL MANAGEMENT 1 Meeting Agenda 1.BASS Overview 2.03-05 BASS Project Time Lines 3.TALS – The ALlotment System Update 4.Project Roles and Responsibilities 5.TALS QA Review - Recommendations 6.Priorities of Government and Activity Based Budgeting 7.SPS – Salary Projection System Update 8.Future Meetings

3. OFFICE OF FINANCIAL MANAGEMENT 2 BASS Overview The BASS project started in 1997 with the objectives to build systems that would: –Replace aging mainframe budget and allotment preparation systems –Assist budget staff and support budget workflow –Improve information exchange between OFM and agencies –Be easier to use and maintain –Provide better system integration and avoid re-keying data The initial 6 month prototype delivered PMTES in June, 1998. VRS came out in January, 1999. BDS and CBS were rolled out in March of 2000, and all have seen several enhancements. We have replaced BPS 2, and with the upcoming release of SPS in August, we will replace BPS 1.

4. OFFICE OF FINANCIAL MANAGEMENT 3 BASS Utilization by Month 01-03 Biennium

5. OFFICE OF FINANCIAL MANAGEMENT 4 BASS Utilization by System 01-03 Biennium

6. OFFICE OF FINANCIAL MANAGEMENT 5 03-05 BASS Project Time Lines Resources Features Time

7. OFFICE OF FINANCIAL MANAGEMENT 6

8. 7 The Allotment 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

9. OFFICE OF FINANCIAL MANAGEMENT 8 Key Themes of TALS Requirements Provide trend analysis tools and graphical views of data to assist in developing accurate allotments Provide common views of data and reports System edits that support allotment instructions and submittal edit checks Provide an Expenditure Authority Schedule integrated with allotment management that makes system edits possible System allows data to be rolled up, with the ability to view lower levels of reporting Ability to input data at a variety of reporting levels

10. OFFICE OF FINANCIAL MANAGEMENT 9 Key Themes of TALS Requirements Ability to provide narrative descriptions for explanation to OFM or for internal documentation of allotment assumptions Electronic notification identifying items in the workflow process Single allotment data store avoiding mass distribution of data Provide better tools for Administering Agencies Potential reporting through FASTRACK data warehouse Provide cash monitoring and analysis tools

11. OFFICE OF FINANCIAL MANAGEMENT 10 Additional TALS Objectives System capabilities need to be flexible to accommodate changes in Policy and Process changes Seamless integration with existing OFM services and system when feasible Eliminate the need to use multiple systems, both internal and OFM systems, to track and monitor allotments

12. TALS - Project Participation 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 Kent Andrus Keith Cooper Don Morris Erik Larson Testing Cynthia Roach Shaun Wilson Sharlene McGrath 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

13. OFFICE OF FINANCIAL MANAGEMENT 12 Project Roles and Responsibilities Development team –Develops vision, requirements, design, project plans –Builds and maintains application and technology environment –Provides testing, training, customer support Customer Groups – Validates requirements, functionality, usability, and quality Budget officers – Validates process impacts and project plans OFM Planning Team – Monitors scope, risk, and plans Quality Assurance – Independent project assessment

14. OFFICE OF FINANCIAL MANAGEMENT 13 Role of the BASS Executive Advisory Committee The Executive Advisory Committee will continue to provide OFM with strategic advice as system plans, project development, and implementation proceed. Current projects are focusing on the entire business process and require an enterprise-wide perspective. The allotment project will deliver features for OFM, agencies and legislative staff; with the potential need to reconcile competing priorities.

15. OFFICE OF FINANCIAL MANAGEMENT 14 TALS Business Risks Difficult to make improvements due to existing data requirements for other systems Not thinking outside the box Not getting real time access to AFRS titles User groups in competition for functionality and priority New system does not contain adequate functionality in first release Unique agency needs that can not be met with new system

16. OFFICE OF FINANCIAL MANAGEMENT 15 TALS Work Completed Agency Customer Group workshops and one-on–one discussions captured business requirements OFM Budget Operations collected non-agency system requirements Customer Group, OFM Budget Operations and LEAP ranked requirements for benefit and penalty BASS Team ranked requirements for cost and risk Requirements were prioritized by the OFM Planning Team, and Customer Group adjusted prioritization of agency focused requirements

17. OFFICE OF FINANCIAL MANAGEMENT 16 TALS Next Steps Complete requirements definition Complete conceptual design Finalize vision/scope and requirements document Update project risk analysis Build detailed project plan for design phase

18. OFFICE OF FINANCIAL MANAGEMENT 17 TALS QA Review Recommendations

19. OFFICE OF FINANCIAL MANAGEMENT 18 Priorities of Government II: Preparing for the 2005-07 Budget Process

20. OFFICE OF FINANCIAL MANAGEMENT 19 Lessons Learned from 2003-05 Key Things Worth Keeping The focus on government-wide results Using activities as budget building blocks A top-down framework—starting with Governor/OFM, with statewide results and strategies Use of multidisciplinary teams to recommend purchase strategies Teamwork among agency executives/budget analysts/policy staff Private sector involvement and the “executive” perspective

21. OFFICE OF FINANCIAL MANAGEMENT 20 Lessons Learned from 2003-05 Key Things To Improve Take a little more time at a different time of year. Better ways to involve analysts, agencies and stakeholders Tweak some of the elements of the Priorities of Government exercise Devote more attention and support to evaluating the cost efficiency of activities Provide better tools and support Better communication with agencies Build tools that allow for both activity and increment views—without reconciliation More research, measures and evidence More timely and coordinated instructions Make refinements to activity data

22. OFFICE OF FINANCIAL MANAGEMENT 21 Current thinking on 2005-07 budget development timeline Revisit price of government analysis and budget context—Early Spring 2004 Re-convene results teams in Spring 2004 to: –Assess which strategies worked and which did not –Evaluate performance evidence and new cost information –Advise Governor/OFM about alternative strategies, costs and funding –Re-affirm or re-cast spending priorities lists –Help determine what additional direction to give to agencies as they prepare budget and legislation requests Put revised priorities and strategic alternatives before the “public” in some way (early-mid summer) Combine result team information input with agency requests and other related budget information. (Late Summer 2004) Develop recommendations for the Governor (Fall 2004)

23. OFFICE OF FINANCIAL MANAGEMENT 22 POG I Follow-up Steps Collect lessons learned from OFM, agencies and Legislature Translate results indicators into measurements as a means of testing budget assumptions Collect activity information related to the 2003-05 final budget, noting related statewide results

24. OFFICE OF FINANCIAL MANAGEMENT 23 Steps to Prepare for 2005-07 Budget Development Confirm general approach and process for 2005-07 budget development (late spring 2003) Continue discussions with cabinet on goals for the next budget, approach, strategy, communication strategy, how to prepare, etc. (Begin summer 2003) Identify desired elements and format for agency 2005-07 budget submittal (Underway now) Refine activity definitions and costs (By October 2003) Consider and implement system changes needed to support budget/accounting for activities, collection of measures, a crosswalk between activity and incremental changes. Conduct research on issues raised during POG I. Provide assistance to agencies

25. OFFICE OF FINANCIAL MANAGEMENT 24 Identifying desired elements for the next budget submittal Budget by activity and increment at each budget level? What does the activity and statewide result focus imply for: –Our approach to performance measures? –Strategic plan elements? Do we need specific research or information related to results areas? What information do we need on hand for the results teams? Will we do another prioritization request? Are there budget submittal elements we’ve requested in the past we no longer need? Are there any new budget submittal elements needed?

26. OFFICE OF FINANCIAL MANAGEMENT 25 Providing Assistance to Agencies Some things agencies have told us they will need to be successful. A process outline, general timelines, and budget submittal expectations as early as possible Early confirmation of the right set of activity building blocks Understanding the keys to faring well in POG Understanding the ways in which they can and should participate –Participation opportunities –How and where to raise issues throughout the budget process Access to advice and assistance on: –How to measure and document results –How to improve activity efficiency –Conducting internal POG exercises and other preparation strategies Tools to support activity budget development

27. OFFICE OF FINANCIAL MANAGEMENT 26 We are now exploring system tools to support activity budgeting next year We are exploring the feasibility of system changes to: –Allow for agency and OFM entry and updates of all activity description elements through BASS/Winsum –Allow for collection, management, and reporting of activity data as part of budget proposals in both BASS and Winsum –Support activity inventory reporting needs –Support needs for budget development, management and reporting by both increment and activity We have started the task of developing requirements and assessing feasibility. Over the next few months we will be asking for your help in reviewing use cases and prioritizing requirements.

28. OFFICE OF FINANCIAL MANAGEMENT 27 Salary Projection System Schedule Target Release August 2003 Training dates tentatively scheduled to begin in August. An announcement will be sent when dates have been confirmed. –Trial training run-through planned for July 23, 2003 with select agencies SPS Security – Form available today. Users will be added and notified when the system is ready. BPS1 will be available through December 2003 providing a period for agencies to transition.

29. OFFICE OF FINANCIAL MANAGEMENT 28 Agency Technical Readiness for SPS Only 15 agencies participated in the March test for workstation readiness (see list).

30. OFFICE OF FINANCIAL MANAGEMENT 29 Next Executive Advisory Committee Meetings September 19, 2003 10:00 to 12:00 A.M. Point Plaza 1st Floor Training Room ____________________________________ January 23, 2004 10:00 to 12:00 A.M. Point Plaza 1st Floor Training Room