Georgia Fiscal Managers – The Key to The Best Managed State

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Georgia Fiscal Managers The Key to The Best
Managed State
Enterprise Financial Management System
Building the Foundation
Lynn Vellinga - State Accounting Office David
Tanner - Office of Planning Budget

• 2007 State Fiscal Management Conference
• St. Simons Island, GA
• May 2, 2007

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Agenda

• Introductions
• Overview of Best Managed State
• How is it defined
• Enterprise Approach
• State Financial Management System
• Vision
• Building the Foundation
• Process
• Specific Tasks and Tools
• Benefits
• Future Status
• Questions

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Best Managed State Overview - Vision

• Five Strategic Objectives for Georgia
• Safe
• Healthy
• Educated
• Growing
• Best Managed
• They are continuing goals of this administration
• Best Managed State ingredients are
• People
• Assets
• Processes
• Tools

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What is Best Managed?

• AAA Bond Rating
• Timely CAFR
• Unqualified Audit Opinions
• Accessible, Reliable, Timely Financial Data
• Efficient Effective Operation
• Program Measures
• Lower cost of operations

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How is Best Managed Measured?

• Governing Magazine Government Performance
  Project
• Information
• Strategic Direction budget and policy aligned
  with state plan
• Budgeting for Performance and Managing for
  Performance
• Program Evaluations
• Electronic Government services and financial
  information is easily accessible
• Money
• Long-term Forecasting
• Timely Financial Reporting
• Transparent budget process
• Efficient and effective procurement
• Performance Measures
• People Workforce planning, hiring, retention,
  training and employee performance management
• Infrastructure Capital planning, project
  monitoring, maintenance, internal coordination,
  Intergovernmental Coordination

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How is Best Managed Measured?

• Hackett Benchmarking
• Efficiencies and Effectiveness
• Finance cost in relationship to total budget
• Error Rates
• Cycle times
• Technology used to improve operations
• Is Finance a valued business partner or an
  administrator of transactions? Controller or
  financial expert?

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Challenges (From Verizon Wireless)

• Do these Challenges sound familiar?
• Strong independent business groups
• Varying degrees of commitment
• Different business models
• Losing control of critical functions
• Agreeing on resources and responsibilities
• Negotiating service level agreements
• Different compensation and benefit plans
• Mixed loyalties
• Multiple systems and firewall between systems

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Georgia State Government

• Enterprise Approach

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Georgia is Big Business

• Georgia is a 34 billion operation
• Over 34 billon in Assets
• We are an Enterprise and when managed on an
  enterprise basis we will realize significant
  improvements to our business model.

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Enterprise Approach - Business Process
Improvements Across Agency Boundaries
Make changes based on best practices, efficienc
ies and value add
Define what we do and how we do it (Business
Process)
Fiscal Managers
Implement new way of working
Develop IT support systems
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Enterprise Approach State Financial Management
System

• Vision
• An enterprise-wide Financial Management System
  (FMS) that will provide the capability to share
  accurate, timely and consistent financial and
  operational information customized to individual
  enterprise stakeholders needs
• Characteristics
• One access point to get financial information
• Financial data is entered once
• No duplicate systems
• Feeder systems integrate seamlessly

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Enterprise Approach State Financial Management
System

• Financial Information is essential to manage
• Personnel
• Asset
• Budgets
• Fund sources
• Processes
• Georgia fiscal managers are a key to Best Managed
  State
• Need processes and tools that provide timely,
  uniform, accurate financial information
• To develop an enterprise financial management
  system we must build the foundation

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State Financial Management SystemBuilding the
Foundation - Challenges

• Appropriations Bill Structure
• Programs, Fund Sources
• Lead Time Planning and Development
• 18 to 36 months to implement a new IT support
  system

Changing Business Priorities and Needs
FLEXIBILITY
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State Financial Management SystemBuilding the
Foundation - Process

• Collaboration
• Administrative agencies SAO, OPB, DOAS, OFTS,
  GTA, etc.
• Operational agencies
• Legislature
• Standardization
• Processes
• Data agencies, programs, fund sources, etc.
• Integration
• Processes
• Systems
• Data

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State Financial Management SystemBuilding the
Foundation

• What has been done
• Priority Based Program Budgeting
• Commission for a New Georgia
• Office of Implementation
• State Accounting Office
• Customer Service Improvement Project
• Performance Management
• Measure outcome and results
• Optimize various funding sources

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State Financial Management SystemBuilding the
Foundation

• Implementations to Date
• GTA Level IV Operations Center
• PeopleSoft 8.8 Upgrade
• BudgetNet To PeopleSoft
• Interface with PeopleSoft Program and Allotment
  Ledger
• Policies and Procedures

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State Financial Management System SAO/OPB
Marriage

• Process Improvement Projects
• In Process
• Standardized Reconciliations
• Enhanced Report/Query tools
• Carl Vinson Institute PeopleSoft Training
• Task List
• Standard funds treatment
• carryover, reserves, encumbrances, prior year
• Data Exchange PeopleSoft to BudgetNet
• Standard treatment of attached agencies
• Standard amendment numbering
• OPB information requirements for AOB/Amendments
• Statewide Policies and Procedures
• Accounting and Budgeting

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State Financial Management SystemBuilding the
Foundation

• Other Components In Process
• Procurement Transformation
• Streamline Banking
• Asset and Fleet Management
• BLLIP
• Maximo
• Workforce Planning
• Benefits Administration
• Agency Data Warehouses
• Business Intelligence (DW)

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Enterprise Financial Systems
FY07- FY09
FY07-FY09
Enterprise Asset Management BLLIP Maximo
The foundation is being built one block at a time.
BudgetNet AOB Amendments Allotments
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Current Project Timeline for SAO projects
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Recommended Agencies For Conversion
Current PeopleSoft Agencies
Recommended Analysis For Conversion
Organizations to Remain on Separate Accounting
System
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Benefits

• Better Fiscal Management
• More accurate picture of financial health of the
  State
• Better policy recommendations
• More accurate budget information
• Better understanding of funding sources and
  relationship to programs
• Better comparison between original budget and
  final outcomes
• Clear understanding of cost drivers and policy
  implications
• Real time information
• Historical information

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Benefits

• Better Fiscal Management
• More efficient business processes
• Higher interest earnings on idle cash
• Less duplication of efforts
• Relevant information for decision maker
• More timely financial reporting

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Benefits

• Better Fleet management
• Total cost of ownership
• Reduced vehicle cost
• Lower fuel cost
• Lower maintenance cost
• Lower purchase price
• Newer fleet, enhanced appearance,

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Benefits

• Better Facilities Management
• Complete inventory
• Eliminate audit qualification
• Manage space utilization
• Lower maintenance cost
• Lower operating cost
• Better work environment
• Safer Facilities

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Benefits

• Workforce
• Human Resource Talent Management
• Better prepared leadership
• Standardized process
• Improved recruiting and retention

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Georgia Fiscal Managers are Key

• Georgia Fiscal Managers are Key to the Best
  Managed State
• Could not accomplish any of these initiatives
  without you
• Drivers in fiscal policies and procedures
• Know how things work
• Provide necessary information and analysis to
  operating managers
• Key to understanding fiscal policies set by
  statute, constitution and GAAP
• Key to implementing changes

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THANK YOU

• Fiscal Mangers the Key to a Best Managed Georgia

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