1. SHARE Special Project Cash Remediation Phase II Planning and Implementation Certification July 22, 2015
Requesting Agency:
Ron Spilman
State Controller
Department of Finance and Administration
SHARE:
Cassie Hayne
SHARE Deputy Director
Department of Information Technology

2. Current State
The State developed many functional customizations and “shadow systems” during SHARE’s original implementation. As a result:
External payment systems are not integrated into SHARE
SHARE does not contain all of the bank accounts owned by the State
Reliance upon “Shadow Systems” has negatively impacted the ability to produce the CAFR
The purpose of these customizations and shadow systems were to replicate the processes and systems that were in practice before SHARE, driving an inefficient and error prone environment:
Processes are labor intensive and therefore is subject to manual errors
General Ledger maintenance process and the process ownership is not clearly defined
System rules governing transactional accounting need to be updated and enforced
General Ledger entries are inconsistent and controls need to be defined
The State’s ability to produce required financial reports that meet accounting standards, to reconcile cash, as well as to prepare for the upgrade to a newer version of PeopleSoft has been adversely impacted as a result as these current conditions.
The DFA CAFR Reporting Project and Historical Cash Reconciliation Project are both underway. These projects are not dependent on Cash Remediation Phase II, but will be coordinating with the project team as there are synergies between the three projects.

3. Cash Control Processing General Ledger Processing
Project Objectives
Focus on these areas with the associated business process redesign objectives will institute broadly accepted practices and mitigate the adverse effect of customizations and shadow systems on accuracy, controls and timeliness
Process
Objectives
Payment Processing
Implementation of leading business processes and practices will validate that there are adequate checks and balances in place for payment related activity
Payment information will be in SHARE and will be consistently accurate and in compliance with State requirements
Cash Control Processing
Modify processes and security related to deposits to provide proper segregation of duties
Assign each State owned bank account a unique General Ledger Account in SHARE and verify it is tracked in SHARE Cash Management
General Ledger Processing
Implement clearly defined controls and processes associated with the Chart of Accounts, and SHARE configuration to increase financial reporting accuracy and compliance with GAAP/GASB
Establish clearly defined processes and preventive system controls within SHARE to increase accuracy and efficiency of journal entry processing
Redesign the SHARE open/close process for periods and adjust SHARE configuration to facilitate the creation of financial reports

4. Why now? Four Factors are Driving Urgency
Near-term realization of dramatically improved accounting processes for the State:
System Process Redesign: Adopting SHARE-delivered functionality thereby mitigating operational risks related to customizations, shadow systems and manual, error prone activities and interfaces
Accounting Process Redesign: Adopting industry standard accounting practices thereby mitigating operational risks related to insufficient controls, accuracy and timeliness, and efficient and effective State accounting processes:
Performance Enhancement: Realizing higher levels of process performance, controls and accuracy for the State’s accounting practices.
Implementation of compliance requirements related to audit findings:
Reduce ongoing exposure related to non-compliance with accounting standards as well as financial and system audit findings
Implement additional controls related to the Chart of Accounts, Configuration, and Security, which will provide the State increased data reliability
Achieve proper division of accounting responsibility between Agencies and DFA
Attain consistency in internal and external financial reporting in order to produce a compliant CAFR
Achieving these business results within the next 10 months
Setting the stage for a successful SHARE upgrade:
Implementing the process and system enhancements in the 8.8 environment will reduce upgrade project complexity and risks due to having BPR implemented before the upgrade begins

5. Cash Control Processing General Ledger Processing
Summary of Scope
Process Area
Scope
Payment Processing
External Payment Systems
Warrant Printing, Processing & Handling
Electronic Data Interchange strategy
Accounts Payable Vendor Processing
Staledating and Escheatment
Security and Approval Processing
Bank Integration
Cash Control Processing
Returned Depository Items
Returned Electronic Payments
Security
Bank Accounts
General Ledger Processing
Control General Ledger Process
Close Process
Financial Reporting Controls

6. Project Team Composition Key Project Stakeholder Communications
Project Timeline, Resources & Communications
Month
March - June
July
August
September
October
November
December
January
February
March
April
Design
Build and Test
Train and Deploy
Support & Project Close Out
Project Team Composition
Key Project Stakeholder Communications
Role
Resources
Meetings
Status Reports
Executive Sponsor
Ron Spilman
Monthly
Steering Committee
Representatives from DFA, DoIT, DOT, STO, and other identified agencies
Project Management
Representatives identified by agencies and vendor
Bi-Weekly
Project Team
Technical and Functional representatives from identified agencies and vendor
Receive from members

7. Deliverables Summary Phase Summary of Phase Key Deliverables
Project Planning and Organization
This phase outlines how the project will be conducted.
Scope Definition
Project Plan and schedule
Resource Requirements
Bi-weekly and Monthly Reports templates
Risk and Issues Log templates
Project Management Procedures document (escalation process, issue resolution process)
Design
The process, functional, and technical design activities will occur in this phase
Requirements Document
Fit / Gap Document
Configuration Design
Reports and Workflow Design
Process Flow Documentation

8. Deliverables Summary (cont’d)
Phase
Summary of Phase
Key Deliverables
Build and Test
The build activities and testing of the systems and related process, configuration, and other system adjustments will occur in this phase
Configure and Build
Test Plan
Testing Defect Tracking Log
Test Scripts for Testing Cycles
Unit Testing
System and Integration Testing
User Acceptance Testing
Regression Testing
Train and Deploy
User training, both support and end-user training take place in this phase as well as the implementation of the project
Job Aids
Training Materials
Training Delivery
Knowledge Transfer
Implementation Plan and Schedule
Implementation Issues Tracking Log
Cut-over
Support and Project Close- out
Support and final project documentation
On-site Support
Off-site Support
Transition Plan
Close-out Report

9. Risks, Dependencies and Assumptions
Sufficient state staff resource availability and project performance
Delay in funding, procuring, or contracting could push delivery dates
Organizational readiness
Agency modification of payment source systems
Completion of the project within the funding appropriations period
Availability of non-production SHARE financial environments for development and testing
Agency payment systems will require modification to their processes and interfaces
External system integrator services will need to be engaged
SHARE delivered processes and functionality will be used
Agencies will be able to meet project deadlines including timely executive decisions

10. Budget and Funding Sources
Amount
Description
Previously Certified
$1,054,000
Certification Request
$3,946,000
DOT Funding - DOT involvement to accommodate DOT requirements
Total
$5,000,000
Request based on independent CAFR audit findings and related compliance remedies

11. Summary
Cash Remediation Phase I was successfully delivered in February It automated the State’s cash reconciliation processes and had a dramatic impact on process efficiency and controls
Phase I was a ‘point forward’ solution and Historical Cash Reconciliation efforts are underway for the period between July 2006 and January 2013
Cash Remediation Phase II continues where Phase 1 left off. It will result in the expedient realization of the below project outcomes and benefits.
Primary Cash Remediation Phase II Project Outcomes and Benefits
Near-term realization of dramatically improved accounting processes for the State in the areas of Payment processes, Cash Control processes and General Ledger processes
Implementation of compliance requirements related to audit findings
Achieving these business results within the next 10 months
Setting the stage for a successful SHARE upgrade