1. IT Project Management in Virginia http://www.apa.virginia.gov IT Project Management Audits in Virginia _____________________________________ NSAA IT Conference October 3, 2013 Tracy Surratt, CISA, PMP Auditor of Public Accounts

2. IT Project Management in Virginia http://www.apa.virginia.gov Discussion Points IT Project Management Specialty Team –Who we are, what we do, and why we do it Examples of development and project management reviews –Findings and risks identified during the eHHR (electronic Health and Human Recourses) Program review. Page 2

3. IT Project Management in Virginia Why Virginia has an IT Project Management specialty? In the Beginning: $500 million spent on duplicative accounting systems Prevalence of system development failures Current Day: 57 projects at a cost of $669 million included in the Commonwealth Budget Bill An additional 27 projects recommended for funding at a cost of $83 million http://www.apa.virginia.gov Page 3

4. IT Project Management in Virginia http://www.apa.virginia.gov IT Project Spending Trends in Virginia Page 4

5. IT Project Management in Virginia Detect problems at the earliest possible point and inform and alert decision makers so that they can take action to reduce potential failures Legislative interest for unbiased information Understand controls & plan future work Why create an IT Project Management specialty? http://www.apa.virginia.gov Page 5

6. IT Project Management in Virginia IT Project Management Team Objectives Eliminate costly failures Support Code of Virginia requirement Assist other specialty teams Monitor legislative and policy developing entities to identify and follow any issues affecting IT and systems development in the Commonwealth http://www.apa.virginia.gov Page 6

7. IT Project Management in Virginia What do we do and who are we? Monitor the development and implementation efforts throughout the project life cycle Ensure project management standards and industry best practices are followed Optimum team size of 7, including director Average 400 project hours assigned annually (about 30% of availability) http://www.apa.virginia.gov Page 7

8. IT Project Management in Virginia Qualifications Demonstrated knowledge of the Systems Development Life Cycle (SDLC) and industry best practices Good communication skills and auditor awareness 40 hours of specialty related training Project Management Professional (PMP) Certified Information Systems Auditor (CISA) http://www.apa.virginia.gov Page 8

9. IT Project Management in Virginia Who issues Project Management best practices? The Project Management Institute (PMI) issues Project Management Body of Knowledge (PMBOK) PMI administers Project Management Professional (PMP) exam The Virginia Information Technologies Agency (VITA) has statewide Project Management Standards which mirrors PMBOK http://www.apa.virginia.gov Page 9

10. IT Project Management in Virginia What is a Project? Definition: A project is a temporary endeavor undertaken to create a unique product, service, or result. TEMPORARY – has a beginning and an end UNIQUE – not a routine operation, but a specific set of operations designed to accomplish a single goal http://www.apa.virginia.gov Page 10

11. IT Project Management in Virginia Examples of projects under review in Virginia Statewide Financial System Replacement Retirement System Modernization Employment Commission Unemployment Insurance Modernization Medicaid Modernization Solution, eHHR Program http://www.apa.virginia.gov Page 11

12. IT Project Management in Virginia 2010 – Patient Protection and Affordable Care Act (PPACA) passed. 2010 – the Centers for Medicare and Medicaid Services (CMS) increased federal reimbursement percentages for certain projects from 50% to 90%. http://www.apa.virginia.gov The eHHR Program: Where did it come from and how does it impact YOU? Page 12

13. IT Project Management in Virginia PPACA Impact to State Government: –Medicaid expansion, including the mandate that states improve their Medicaid eligibility application process – October 2013 –Health Benefit Exchange, an online market place where individuals and small businesses can compare and purchase healthcare insurance policies – January 2014 http://www.apa.virginia.gov Patient Protection and Affordable Care Act Page 13

14. IT Project Management in Virginia http://www.apa.virginia.gov How did many states approach PPACA? Page 14

15. IT Project Management in Virginia $152 million joint investment between Virginia and the federal government 13-16 individual projects making up the eHHR Program 2 Secretariats and the Commonwealth CIO involved At least 6 agencies involved High Risk? YES!! http://www.apa.virginia.gov Virginia’s approach: eHHR Program Office Page 15

16. IT Project Management in Virginia To oversee projects that will implement information technology systems, business processes, and organizational changes. To ensure that Virginia improve its administrative effectiveness and reduce errors in social service programs through the modernization efforts. http://www.apa.virginia.gov eHHR Program Office Scope Page 16

17. IT Project Management in Virginia  Healthcare Reform Uncertainty and Timeline Flexibility Report Results: The Supreme Court ruled on the Patient Protection and Affordable Care Act in June 2012, therefore the program requirements and deadlines became official. http://www.apa.virginia.gov Program Risks identified - June 2012 Review Page 17

18. IT Project Management in Virginia  Operationalizing Program Office After Beginning Projects  Blurred organizational structure  No Critical Path to Support the Feasibility of Meeting Deadline Report Results: Program office developed and finalized a structure and tools to control, monitor, and enhance working relationships with individual projects. http://www.apa.virginia.gov Program Risks identified - June 2012 Review Page 18

19. IT Project Management in Virginia  Fast and tight deadlines –Federal Mandate of October 1, 2013 –Ten month timeline for implementation –Need for contingency planning Report Results: Issue continues to exist and compounded by additional resource constraints Identified Program Risks that Continue on… http://www.apa.virginia.gov Page 19

20. IT Project Management in Virginia  Agencies Must Be Allowed to Share Commonwealth citizen information to fully realize the strategic goals of the eHHR Program. Report Results: This is an ongoing issue. http://www.apa.virginia.gov Identified Program Risks that Continue on… Page 20

21. IT Project Management in Virginia  Project documents do not meet best practices  Required documentation was not completed prior to moving into the next stage of development. IT Investment Management Standards AND IT Project Management Standard are not being followed! Report Results: This is an ongoing issue. Identified Program Risks that Continue on… http://www.apa.virginia.gov Page 21

22. IT Project Management in Virginia The Program Office relies too heavily on self reporting from individual projects –Lack of coordination, communication, interdependencies, and interaction between the projects. Program Risks identified August 2013 Review http://www.apa.virginia.gov Page 22

23. IT Project Management in Virginia The Program Office has no close-out plans. –Is the Program Office providing benefits? –Are the remaining projects still related? –Is the Program Office removing redundant work requirements or adding additional requirements? –Do the added benefits received from operating the Program exceed the added costs? Program Risks identified August 2013 Review http://www.apa.virginia.gov Page 23

24. IT Project Management in Virginia Program Management: the process of managing several related projects, often with the intention of improving an organization’s performance. Portfolio Management: a method for analyzing and collectively managing a group of current or proposed projects http://www.apa.virginia.gov Program vs. Portfolio Page 24

25. IT Project Management in Virginia Address the close out process at the beginning of the review Ensure the program team is looking at future work, not just current work, to identify and respond to potential Ensure auditors have appropriate training in the program/project management discipline used. Lessons Learned http://www.apa.virginia.gov Page 25

26. IT Project Management in Virginia More Program Offices More coordination across Secretariats Newly developed Program and Portfolio Standards Changes to Project Management Standards to address “new” project management methodologies What will the future bring? http://www.apa.virginia.gov Page 26

27. IT Project Management in Virginia Tracy Surratt IT Program Management Virginia Auditor of Public Accounts (804) 225-3350 Tracy.Surratt@apa.Virginia.gov Luis Toledo Assistant State Auditor NC Office of the State Auditor (919) 807-7524 Luis_Toledo@ncauditor.netQuestions? http://www.apa.virginia.gov Page 27