1. Commonwealth of Massachusetts IT Consolidation Program IT Finance and Budgeting Sub-committee Discussion Document June 16, 2010 DRAFT FOR DISCUSSION PURPOSES ONLY

2. - 1 - DRAFT FOR DISCUSSION PURPOSES ONLY Agenda 1.Review of Billed Services Implementation - (MAXIMUS – 60mins) 2.Outstanding Critical Dependencies

3. - 2 - DRAFT FOR DISCUSSION PURPOSES ONLY IT Consolidation-Billed Services Implementation  Time Tracking must be in place by 7/1/10 for Services with Hourly Rates –Applications –Infrastructure –Data Center

4. - 3 - DRAFT FOR DISCUSSION PURPOSES ONLY IT Consolidation-Billed Services Implementation  Suggestions for what Department billings will look like: Track and Bill hours by project Memo Billing vs. Actual Billing Uses for Memo Billings Document costs for indirect cost rates Compare cost of services received to operating funds transferred. Billing Frequency-Monthly/Quarterly

5. - 4 - DRAFT FOR DISCUSSION PURPOSES ONLY Two Variables Costs Billed Units Comparing Billed Costs To Actual Costs IT Consolidation-Billed Services Implementation

6. - 5 - DRAFT FOR DISCUSSION PURPOSES ONLY IT Consolidation-Billed Services Implementation Options for Reconciling Under/Over Billings Federal Rules A-87 (2 CFR Part 225) Allows a 60 day reserve for cash flow  Issue credits or additional charges in current fiscal year  Reduce future year billing rates

7. - 6 - DRAFT FOR DISCUSSION PURPOSES ONLY Critical Dependencies Still Under Development # Pending Guidance Item DescriptionLead Response Deadline Start DateStatus 1 Asset Management What is the process for transferring Assets from agency to the secretariat? How soon does this need to be completed? Linda HamelTBD In Progress 2Chargebacks Guidance related to chargebacks, other than billing rates (e.g., process of reconciliation, etc.). Kathy Sheppard6/1/20107/1/2010In Progress 3 Fringe / Indirect / Payroll Taxes How do we use the chargeback account xxxx-1701 to charge off-budget accounts without losing revenue to the general fund from fringe or indirect rates? ANF, Eric Berman, and Kathy Sheppard 6/1/20107/1/2010In Progress 4 IT Bond Authorization Should bond authorization remain at the agency level or at the secretariat level? ITD, Lou AngeloniTBD Complete 5 Open / Close Issues What needs to occur in order to Close FY10 and Open FY11 (mainly for lead agency model)? Kathy Sheppard6/1/20107/1/2010In Progress 6 Service Level Agreements (SLA) Develop sample documents for at least 2 SLAs for IT services and administrative services HHS/HED6/1/20107/1/2010Complete 7 “Shared IT Services” Legislative Authorization What are the alternative implementation steps for Lead Agency Models if Shared Service Language is not enacted OSC/ANF6/1/20107/1/2010In Progress 8 FTE Position Transfers What is the process for making sure that FTEs are transferred to the correct IT account ANF6/1/20107/1/2010Complete