Steering Committee Meeting

Sunflower ProjectStatewide Financial Management System Update

December 12, 2008

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Today’s Topics

• Project status – Kent

• Change Control – Peggy

• Project risks – Peggy

• Agency activities and issues – Gary

• Set-off replacement – Gary

• Labor distribution analysis – Gary

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Projec

t

Kick-o

ff

Oct 6th

Begin

FMS T

eam

Traini

ng

mid-October mid- November

Begin

Confe

renc

e

Room

Pilo

ts

Analys

is Com

plete

for C

OA,

KDOT, SRS a

nd T

reas

urer

Sys

tem

s

mid-January

Inte

rface

Stand

ards

Com

plete

and

Publis

hed

to A

genc

ies

Mid-April

The 1st Six Months of the Project

Build-

out o

f Dat

a Cen

ter

Inclu

ding

SHARP II

mid-March

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• All State positions filled except for 5 positions for a total of 44 team members

• Accenture has ramped up to approximately 25 consultants on-site

• Team chemistry is very good – several team building events have helped – but real team building is being catalyzed by the challenge and the importance of the project

• Teams have self-organized in terms of roles and division of responsibilities

• State functional team members are rapidly gaining knowledge of the PeopleSoft software and Accenture’s methodology and making strong contributions to their teams

Project Team

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• Functional courses completed• General Ledger• A/P & Purchasing• A/R Billing• Query• Asset Management• Grants• Expenses• Numerous courses for technical team

• Final functional courses• e-Procurement• Project Costing and Contracts

• Technical training will be on-going for the next six months

Team Training is Wrapping Up

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• Identifies gaps between Kansas’ desired future business processes and requirements against the processes directly supported by PeopleSoft

• Concluded December 11th – 66 CRPs have been conducted

• Good agency participation – 42 agencies attended one or more sessions

• Not without problems (space was tight for early sessions, agencies want more agency-specific attention which will come later)

• Identified gaps in the software which are being addressed in the following manner:

• Eliminate the requirement (little relevance and impact)

• Work-around

• Modification

Conference Room Pilots (CRPs)

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Determining number of GL business units

• Extensive analysis being performed

• Impacts amount of work required to modify SHARP

• Impacts what data agencies see in drop down menus

• May impact “PCA” chartfield

• Consulted other states, STA, Oracle and no clear consensus opinion – each approach has pros and cons

• Will determine tentative approach by end of January and finalize decision by end of February or early-March

Foundation Decisions

8

• Beginning build-out of data center for Development and Testing environments

• Initial set of servers have arrived (DEV, TST)

• DISC is in the process of installing servers

• After physical installation DISC will pull wires, install operating systems and tie servers into the network

• Environments scheduled to be available by early-February

Data Center Hardware & Build-out

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• Surveys out to agencies for reporting needs, QA capabilities, labor distribution (non-core agencies)

• Request for detailed project plans for interfacing agencies and agencies that are de-commissioning systems – due December 15th

• “Visioning” session to be held with Director of Division of Purchases (12/18) to develop long-term strategy for rolling out additional purchasing-related functionality

• Final draft of Security Assessment Plan complete

• Five (5) deliverables (paid and non-paid) submitted to date – all due dates have been met

• Twenty (20) deliverables due in January!

Miscellaneous Project Activities

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• Parking lot for scope elements and requirements not included in the July 2010 “go-live”

• Working on KITO quarterly submittal

• Preparing for IV&V review

• First bi-monthly newsletter will be published this month

• Contest for naming the system… over 100 entries… results to be announced soon….

Miscellaneous Project Activities

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• Held first meetings to discuss software gaps (from CRPs)

• Process starts with review of requirements (20 - 200 requirements per module) in CRPs by functional team and agency participants

• Examples of potential mods from Purchasing CRP sessions

• Delivered software does not provide the ability to include the distributor name and number in catalogs

• Agencies do not currently track distributor information and see no need to capture this information

• Resolution: remove requirement

• Delivered software does not provide fields to maintain information on recycled content and percentage

• Agencies are required to report on recycled materials • Resolution: small modification to create indicator and quantity of recycled content

• Delivered software can only store 254 character description for contracts/catalogs

• Specific agency has this capability in their current purchasing system• Resolution: work-around by using available field

Change Control – Enhancements & Mods

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Authority for Change Requests

Change Request

Authority Cost Impact Scope Impact Impact on PS Code

Base

Schedule Impact Agency Impact Law, Reg, Policy Impact

KITOKITO Office All changes over

10%Depends on impact to cost or schedule

Schedule impact of 20%

Level 1Executive Sponsors

TBD TBD Any change affecting the “Go-live” date

TBD Any changes affecting laws, regulations or other non-A&R policies

Level 2Steering Committee

Changes over $50K “Significant” impact on project scope (+/-)

TBD Recommends changes to Executive Sponsors

Level 3FMS Mgmt Team (CCB)

Changes under $50K

“Moderate” impact on project scope (+/-)

All mods approved by FMS Mgmt Team

Any change affecting KITO milestones or other key (internal management) milestones

Any decisions/ changes “adversely” affecting agencies

Any changes affecting A&R policies and procedures

Level 4 ManagersAll changes affecting cost (+/-) approved by FMS Mgmt Team

“Minor” impact on project scope (+/-)

“Minor” impact on project activities that do not adversely impact a milestone

Configuration decisions benefiting agencies that do not impact cost or do not impact a milestone

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• Changes to the Contract and/or Statement of Work

• Minor wording changes and clarifications

• Minor change for use of different software for developing training material

Change Control Log

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1. Availability of DPS/A&R/DISC resources may cause delays in accomplishing required development of SHARP II

2. State functional team members may not acquire required level of knowledge to support users post “go-live”

3. Agency requirements may be more extensive and specialized than expected

4. Lack of (agency) volunteers to train end-users

5. DISC networking group is in the midst of a major upgrade

Top 10 Project Risks

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6. High workload for State team members could result in turnover

7. Lack of “trickle down” communication within agencies

8. Availability of end-users to attend training

9. Large and/or high-impact agencies not ready for go-live

10. Inadequate (agency) SMEs to assist/learn agency-specific configurations

Top 10 Project Risks

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• Briefed Regents Controllers on project status, chart of accounts changes and other central business process changes – follow-up ½ day meeting planned for mid-January

• Briefed RITC (Regents IT leadership) on project status, request for project plans, QA assessment

• DOL to discuss agency path forward – depends on labor distribution decision

• Veterans’ Affairs to discuss integration of new financial system with STARS and FMS

• SRS regular meetings for FARMS and Central Cashier

• State Treasurer for replacement of Treasurer systems

Agency Activities and Issues

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• During negotiation Accenture proposed to replace Set-off using PS customization – approx $500K fixed price cost seemed very pricey and proposed solution (developed within PeopleSoft) would probably have been klugey

• Based on above, Set-off replacement was removed from the Accenture contract/SOW

• Set-off replacement system was built using 3rd party contractor for approx $90K in two months; system is being deployed this month

• SOW includes provision for Accenture to draft a change order for configuring FMS to interact with Set-off and to design required interfaces

• Interfaces between Set-off and FMS will be developed and tested by Treasurer’s Office

• Strategy will result in approximate $300K savings to the State and provide a better solution (cheaper, better, faster) than the original course of action

Set-off

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• Drafting analysis document

• Major sections include:• Background – originally targeted agencies and why this is important to them as well

as results from surveying other agencies• Presentation of alternatives and pros/cons of each alternative (including impact on

agencies of no central labor distribution solution)• Recommended alternative• Estimated project costs:

• Software• Implementation services (Accenture & State)

• Estimated post “go-live” operational roles (A&R, DPS, DISC) and required FTEs to support central labor distribution solution

• Estimated post “go-live” operational roles and required FTEs in agencies

• Will provide Steering Committee members copy of draft analysis on 01/05/09

• Will present analysis and recommendation to Steering Committee on January 9 th

Labor Distribution Analysis

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Questions and Answers

??For additional information on the project, please seethe project website: http://www.da.ks.gov/ar/fms/