2. Panelists

4. 52% ORGANIZATONS THAT HAVE RECENTLY MODERNIZED 69% EXPECTING OR EXPERIENCING PROJECT DELAYS

5. Survey results were almost identical for both state and local government ERP implementations Customizations did not meet desired expectations 32% of organizations have Shelf-ware – Modules purchased but never implemented Additional Lessons Learned & Recommendations: Minimize Software Modifications - Limit customizations to Regulatory Requirements Dont purchase software licenses until you plan to implement the capabilities Stay current with your Vendors Software Releases Demand Accountability from Software Vendor/Integrator Software Bug vs. Enhancement Beware of Works as Designed

6. Perspectives from the Panelists

7. Thomas L. White, Jr., CPA State Comptroller State of Alabama Update: Segmented Approach

8. In 2011-12 identified segmented concept focused on greatest need and opportunity for improvement Follow the money: Personnel Cost $2.4B 40,000+ employees Use a best of breed/best of fit approach Time & Attendance opportunity Front end interfaced with current payroll system Standardization

9. Considerable Amount of Effort, Time, and Money Required to Maintain State's Current Time and Attendance Processes Time And Leave Reporting Errors More Likely Labor Law Compliance Risks Extensive Use of Paper and Distribution Cost Lack of Labor Analysis and Scheduling Tools 9

10. Control and Reduce Overtime More Accurate Leave Reporting, Scheduling and Processing Ensure Labor Law Compliance Provide Employee Self Service Facility (Portal) Support Automated Workflow and Online Approvals Better Secure Employee Information Provide Ability to Support Future Requirements 10

11. Kronos Contract Signed March 2013 Software Implementation Services Time Clocks Statewide T&A System State Employees and Vendor Team Phased Implementation 24 Months Permanent Support Team Sustain System, Training, Upgrades 11

12. Efficiency Gains and Cost Reductions: Automated Workflow Review and Approval Replaces Current Paper Based System Greater Accuracy Reduction of Labor Wages Increased Control over Employee Overtime Elimination or Reduction of Paper Documents 12

13. Christina Smith, Director Division of Accounting and Auditing Department of Financial Services State of Florida

14. Lack of a Governance structure Governor controls procurement and HR CFO controls financials and treasury functions State does not have a vision/strategy on how core systems would integrate: Procurement – Ariba Human Resources – SAP Financials – PeopleSoft Treasury – PeopleSoft

15. Lack of standardization resulted in 280 customizations Leadership did not understand the impact of significant Project Modifications made in second year of the project (guaranteed a two year extension for the project) Significant change in software version that was to be implemented Changed Chart of Accounts structure Significant number of stops and starts for the testing phase – ultimately led to decision to suspend project

16. Establish a stronger governance structure Develop a business case that recommends a strategic vision for the state Establish an independent project that focuses on Organizational Change Management Recommending a longer (8-10 years) approach, with several short-term goals that can be achieved during an administrations 4 year term

17. David A. Von Moll State Comptroller Commonwealth of Virginia

18. National Association of State Comptrollers David A. Von Moll, State Comptroller david.vonmoll@doa.virginia.gov March 21, 2013 Commonwealth of Virginia Cardinal Project

19. Department of Accounts (Comptrollers Office) and Department of Transportation (VDOT) Partnership Both needed to replace non-upgradable legacy financial management systems IT governance initiatives sought to reduce agency-based administrative systems VDOT had funding and agreed to meet statewide requirements as initial step towards statewide base system implementation Enterprise Resource Planning (ERP) – PeopleSoft VDOT decommissions heavily customized PeopleSoft version 6.0 Comptrollers Office will decommission 30 year-old statewide legacy system by 2016 Modern Technology Platform Essential first step towards providing needed business functionality to agencies and optimize benefits of full ERP solution so that select agency-based administrative systems can be retired and related systems support cost savings can be realized

20. 20 YearCardinal Project Timeline/Activities 2004 - 2005 VDOT Financials replacement project planning Develop ERP business case - administrative system duplication/redundancy, legacy system risk Analyze available ERP software packages - decision to implement PeopleSoft 2006Original ERP Plan – $318 million total for Financial Management/Budgeting, HR/PR, Purchasing Governor requested $30 million to get started (e.g., establish PMO, define system requirements) Just $11 million appropriated by General Assembly 2007Plan B – original ERP Plan project scope narrowed to Financial Management/Budgeting Completed system requirements definition and RFP planning 2008Cardinal Plan – Economic downturn resulted in no additional funding for Plan B in Governors introduced budget Strategy to partner with VDOT developed 2009RFP for software and integration services, Accenture and Oracle contracts established 2010VDOT, Accounts and Accenture work on Cardinal Part 1 2011Successful go-live date for VDOT (Part 1) – December, 2011 2012Successful go-live date for Accounts (Part 2) – October, 2012 2013Statewide rollout (Part 3) planning and kick-off

21. 21 Part 3 Statewide Rollout Enterprise Base System Rollout: Wave 1 – 148 Cardinal-only agencies, 469 users (Oct, 2014) Wave 2 – 130 interface agencies, 1,290 users (Feb, 2016) Retire Legacy Financial System (CARS) Part 1 VDOT Functions in Scope: General Ledger Accounts Payable Accounts Receivable Project Accounting Procurement Time and Attendance New Statewide COA 5,000 End Users Trained Retire FMSII Deployed December 2011 Part 2 Comptrollers Office Enterprise Base System Functions in Scope: General Ledger Accounts Payable Limited Accounts Receivable (Funds Receipt) Enterprise Base System scope limited to current functionality Deployed October 2012

22. Gaining Executive Support Emphasize risk mitigation versus savings/efficiencies Manage expectations of cost savings and functional improvements One step at a time on savings from agency system elimination Count on roadblocks, setbacks and delays Patience/ persistence, incremental progress, leverage Unique advantages of COVA approach Partnership Leverage VDOT project and funding capacity Proof-of-concept for complex business requirements Risk aversion and cost smoothing Limited functionality of initial enterprise rollout Phased approach 22

23. Questions for the Panelists