1. Commonwealth of Massachusetts IT Consolidation Program IT Finance and Budgeting Sub-committee Discussion Document May 27, 2010 DRAFT FOR DISCUSSION PURPOSES ONLY

2. - 1 - DRAFT FOR DISCUSSION PURPOSES ONLY Agenda Administrative Support Service Level Agreement - (Gray Holmes/Gerry Young – 30mins) Review of Outstanding Chargeback Guidance (Katie Luddy – 15mins) Asset Transfer Management (Katie Luddy – 15mins)

3. - 2 - DRAFT FOR DISCUSSION PURPOSES ONLY Administrative Support Service Level Agreement  Budget planning and reporting  Accounts payable processing  Accounts receivable processing  Procurement assistance and processing  Human resources – Hiring process – Classification and evaluation – Labor relations – Payroll and benefits

4. - 3 - DRAFT FOR DISCUSSION PURPOSES ONLY Components of an SLA ComponentDescription Provider: (Services Provided) A comprehensive description of the services provided Customer Service An outline of how the provider organization will service the customer, specifically detailing the contacts for services, and hours of availability Cost Information A description of the proposed charges for services provided. This should increase transparency, clearly specify cost drivers and break down charges on a service-by- service basis External Benchmarks A comparison of current performance services levels and cost against external benchmarks Performance-Level Commitments Commitments by the provider based on Key Performance Indicators (KPI) Customer: (Customer Commitment) A comprehensive outline of customer requirements that will enable the provider to meet specified performance level commitments Process Improvement A description of process improvement initiatives to be undertaken by the provider, customer or jointly, for the term of the agreement, and the expected benefits associated with these improvements Issue Resolution / Escalation Process An outline of how issues and disagreements will be resolved between the provider and the customer Specify the escalation process within the Shared Service Center and through the governance structure Terms The length of time over which the agreement is enforced

5. - 4 - DRAFT FOR DISCUSSION PURPOSES ONLY Outstanding Guidance for Chargeback 1. Is there a way to operationalize the chargebacks for the four rates in MMARS? 2. How often do Secretariats need to reconcile their chargebacks with actuals (monthly, etc.) 3. How will fringe revenue be recouped into the general fund to ensure there is no hit to the general fund? 4.Should we plan for a midyear major reconciliation to start to determine whether we'll have a major roll-forward into FY12? 5.How do we bill for Helpdesk/LAN support? The Comptroller’s and ANF will meet to discuss and answer the following chargeback related questions:

6. - 5 - DRAFT FOR DISCUSSION PURPOSES ONLY Critical Dependencies Still Under Development # Pending Guidance Item DescriptionLead Response Deadline Start Date Status 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 In Progress 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/HED6/1/20107/1/2010In Progress 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 ANF6/1/20107/1/2010In Progress