What have we done?

Project context Size of state budget: $ 27 Billion Includes the three branches of state government Includes DOT Number of employees: 43,000

Legacy processes Paper invoices routed via messenger A/P batched nightly to generate warrants Paper travel authorization Paper travel claims for most agencies Three agencies used an electronic claim system No A/R system Limited grant accounting system No facilities management system Mainframe processing

Legacy processes, cont Individual systems worked in silos Systems were highly customized Systems that were replaced were extremely old and not supported anymore

The new view Leadership wanted a new platform that would enable better analysis, support improved business processes and leverage technology That translated into imaging, workflow and employee self-service on a web-based architecture, including the following modules:

Human Capital Management Absence management Benefits administration Commitment accounting Enterprise learning management Human resources Payroll Time and labor

Financials, Supply Chain Mgmt Asset management Accounts payable Accounts receivable Budget control Billing Cost allocation Cash management Contracts Cashiering

FSCM, cont. Fleet management General ledger Grants Inventory Plant management Projects

FSCM, cont. Catalog management Procurement contract ePro requisitions eSupplier Purchasing Services Procurement Strategic sourcing Travel

Planning Conducted site visits in PA, OK, MA and UT Knoxville Performed a high-level requirements analysis Identified business and technical solution requirements Prepared a competitive procurement Established project sponsorship and steering committee Identified the state project team Established a communications plan

Things we didnt plan for: Downturn in the economy First Republican majority in the TN Senate since Reconstruction Federal stimulus funds The intensity of agencies resistance to change Worst flood in 1000 years

Goals for success Minimize software customization Facilitate agency involvement Implement a reliable technical infrastructure Support trained users Configure a solution that meets the states administrative business requirements Position the state for future improvements

Project costs Consultants - $ 73,800,000 Software - $ 15,000,000 State Project Team annual operations - $15,000,000

Project timeline Both HCM and FSCM projects would begin on 4/06 HCM went live Oct 2008 FSCM went live in waves beginning Jan 2009 and ending Oct 2009

Difficulties in implementation Change management Protracted conversion Keeping two accounting systems going stretched limited resources and added a confusion factor to reporting and transaction processing

Results of those difficulties Delayed CAFR preparation Increased the opportunity for error in analysis Criticism Lost sight of the technological improvements

Implementation realities Electronic pay stubs Web-based system used remotely 24/7 Streamlined W2 processing Imaging has improved document retrieval and reduced physical storage needs More recording of accounting events when they occur due to the A/R module Quicker and more efficient travel reimbursement Use of employee id in place of SSN

Implementation realities, cont. Supplier portal reduces phone call inquiries Employee self-service allows employees the convenience of making certain changes on their own Provided an infrastructure for new ways of making procurement processing efficiencies Provided the framework for improving the management of state facilities Provided the framework for better grants management information Provided better control over cashiering activities

Implementation realities, cont. Provided framework for better analytics because more information is captured on more transactions Provided a better audit trail for each transaction

Questions? Call or Jan Sylvis Chief of Accounts TN Department of Finance and Administration