1. 1 Life after Implementing ERP In Pennsylvania Presented by: Harvey C. Eckert Commonwealth Comptroller Commonwealth of Pennsylvania For: Annual NASACT Conference August 22, 2006 Omaha, Nebraska

2. 2 ERP Implementation Recap 07/02 - Wave 1 agencies (Finance, Budget, Procurement, BW) 10/02 – Wave 2 agencies 01/03 – HR, Payroll 07/03 – Wave 3 agencies 07/04 – PA DOT

3. 3 Post ERP Implementation Projects Preparation of a more timely CAFR Reengineering of Requisition to Check Implementing the Supplier Relationship Management Module Revision to Travel Planning software Implementing Revenue in SAP Plant Maintenance in PA Department of Transportation PA Liquor Control Board Retail ERP

4. 4 Preparation of a more timely CAFR Where we were: ’02 CAFR issued by 12/31/02 ’03 CAFR issued by 5/31/04 ’04 CAFR issued by 3/31/05 Where we are: ’05 CAFR issued by 12/31/05 Where we are going: ’06 CAFR issued by 12/15/06 (5.5 mos.) ’07 CAFR issued by 11/30/07 (5.0 mos.)

5. 5 Preparation of a more timely CAFR (cont’d) Expedite the CAFR production and Audit Process – “ Top Down” Approach - What’s material? – Focus on Opinion Units, significant funds – Utilize variance analysis approach – Utilize estimates – Utilize Entity Wide entries Improve coordination and communication with the Auditors

6. 6 Reengineering Requisition to Check Make recommendations to improve standardization, workload and cycle time and align the Commonwealth with industry best practices. Recommendations will cover agencies, Comptroller Offices, and Treasury. Includes the payment process for Procurement, Utilities, and Grants

7. 7 Recommend options for process improvement Delineate organizational roles and responsibilities Guidelines for processes and procedures Identification of policies and statutes to update Recommend changes to SAP configuration Requisition to Check Deliverables

8. 8 Purpose of SRM: Contract automation of bidding process and auction functionality Automated Purchase Order from a shopping cart Streamline and standardize workflow Implementing the Supplier Relationship (SRM) Management Module

9. 9 Increase utilization of catalogs/punch out Enhance vendor registration process Electronic transmission of Purchase order and Invoice using supplier self- service or XML Implementing the Supplier Relationship (SRM) Management Module (cont’d)

10. 10 Short term implementation schedule Internet Web based software Travel plans will be synchronized into SAP Hands-on training available to agencies Commonwealth receives commission from hotels for on-line bookings Expanded flight selection options Revision to Travel Planning software Amadeus e-Travel Management

11. 11 User-friendly interface that looks and feels like commercial web sites Flexible, one-stop online booking Lowest nightly rate for hotels Hotel searches by price or proximity to location Reporting capabilities – each agency has license to reporting tool Revision to Travel Planning software (cont’d)

12. 12 Replacement of 25+ year paper-based legacy system, out-of scope during original ERP implementation Redundant entry of same data into multiple systems Implementing Revenue in SAP

13. 13 Implementing Revenue in SAP (cont’d) Delays in recording revenue when significant funds are now electronically transferred Complicated reconciliation process due to timing differences and data entry errors in multiple systems

14. 14 Utilize SAP for reporting all Commonwealth accounting data Decommission various legacy systems Eliminate duplicate data entry by utilizing file transfer Eliminate/reduce paper documents Utilize consistent number ranges to track documents/records Improving Revenue Reporting

15. 15 Major Project to integrate PA DOT maintenance management business into the Commonwealth’s ERP environment –11 Engineering Districts –58 maintenance organizations in 67 counties –Annual budget > $1 Billion Improve the business processes of the highway, fleet, and materials management, and sign inventory and ordering processes Federally mandated requirements Plant Maintenance in PA Dept of Transportation

16. 16 Replace antiquated Financial Systems with ERP Solution Issue RFP for software vendor and integrator Implement a Retail ERP System Need to reengineer the Business Process PA Liquor Control Board Retail ERP System

17. 17 Questions?