Skip to Content

Texas State Agency Business Administrators’ Association (TSABAA) – February 2011

Agenda

ProjectONE Update

Current Financials Plan

Financial Project Timeline

2010
  • Q1
    • Dec. 2009: Project initiation
    • March: Complete Requirements Gathering
  • Q2
    • June: Complete Fit/Gap against vanilla 9.1
  • Q3
    • August: Complete process designs
2011
  • Q1
    • February: Complete development objects
  • Q2
    • June: Complete testing activities
  • Q3
    • August:
      • Complete cutover activities
      • Complete User Acceptance
    • September 1: Go Live for DIR & CTTS

Accomplishments

  • Began testing activities on January 24, 2011
    • Completed 98% of technical specifications and 97% of code and unit testing needed for Phase 1
    • Completed 57% of technical specifications and 56% of code and unit testing needed for Phase 2
  • Presented the first CAPPS training demonstration to DIR and TxDOT
  • First eight project milestones and development progress checkpoints completed on time
  • Completed initial Process Design
  • Fit/Gap workshops were held in April and May
    • Financials Team:
      • 159 four-hour workshops
      • 2,414 “Fits” and 1,335 “Gaps” were approved by the Steering Committee
    • HR/Payroll Team:
      • 148 four-hour workshops
      • 2,674 “Fits” and 2,732 “Gaps” were approved by the Steering Committee
  • Completed the most comprehensive list of statewide requirements ever compiled for the state

Legislative update

  • Base budget did not include funding for CAPPS maintenance.
  • CAPPS is a priority for the Comptroller”s office.
  • CPA is working with Senate Finance and House Appropriations to reduce anticipated costs and identify needed funding.
  • ProjectONE is moving forward until directed otherwise.

What’s So Great About ERP?

The Current Environment/ Setting the Stage: External Influences

Budget Constraints

  • Texas is not alone
  • Only four states with a budget surplus

Retiring Workforce

  • Nearly 30% of state employees are retirement eligible in the next five years

Mission vs. Support

  • Both of these factors put pressure on internal support functions
  • Want to minimize impact to agency customers

There is unprecedented opportunity and demand for creating efficiencies.

Workforce Supply and Demand

graph showing likely gap scenario and how it can be closed

The Silver Tsunami. In the next 15 years, 70 million Baby Boomers are expected to retire. From 2008 to 2018, the proportion of our labor force made up of individuals 55+ years old is expected to grow five times faster than the overall labor force.

Generation Y is Changing the Game. Changing demographics are making it harder for organizations to attract and retain the workforce of tomorrow.

Multiple Methods Are Required to “Bend the Curves.” Using technology to be more efficient is one of the methods.

How can ERP help Texas?

People

As budget and staffing shortages occur, an ERP system provides the ability to transfer people from agency to agency with more ease; allows for virtualization and easy job transfer.

Process

Enables agencies to provide services to other agencies. For example if one agency is constrained around an area such as Accounts Payable, then another agency could step in to help support and relieve some of the burden.

Technology

Offers a common set of standards; allows for different user groups to access the same data; increases productivity and decreases errors; enables robust reporting capabilities.

How is it working in industry?

Industry is facing similar issues with financial pressure and resource constraints, and we are seeing greater adoption of shared services and the ability to perform work virtually due to ERP.

For example, in Deloitte ERP enables:

  • Colleagues to move all around the world (i.e. India to U.S., Europe to U.S.) because we are all on one common platform.
  • Virtualization for our workforce – staff can have the same job function and not move.
  • Planning to be more efficient.

In Texas, this could mean that:

  • The state has more resources to share, transferable skills become more commonplace.
  • For the individual, having skills and experience with ERP translates into high value in the labor market.

CAPPS Benefits

Why CAPPS?

Legacy Systems

  • Not intuitive, difficult to learn
  • Does not process in real time
  • Multiple entry
  • Inconsistent information
  • Data not easily shared
  • Cumbersome reporting process

CAPPS

  • User friendly
  • Web-based
  • Information can be accessed in real time
  • Single entry
  • Data can be accessed by multiple agencies
  • Reports can be processed in real time

Benefits

  • Increased employee job satisfaction
  • Increased agency operational efficiency
  • Cost savings over time
  • Increases ease of decision making for Management and Legislature

Process Definitions

Procurement & Materials Management

  • Purchasing & eProcurement
  • Accounts Payable
  • Inventory

Asset Lifecycle Management

  • Asset Management

Project Management

  • Project Costing
  • Revenue Contracts
  • Grants Management

Revenue & Receivables Management

  • Billing & Accounts Receivable

Financial Control & Reporting

  • General Ledger & Commitment Control (KK)

Procurement & Materials Management

Purchasing & eProcurement

  1. Improve efficiency and reduce processing time
  2. Improve flexibility in creating documents and enhance traceability and visibility for the entire lifecycle of a transaction
  3. Provide a centralized source of transaction processing that results in one record of information
  4. Provide integration with all downstream areas of procurement, including Accounts Payable, Asset Management, Commitment Control, and more

Improve the efficiency of processing orders while strengthening agency business needs and statewide policy compliance

Accounts Payable

  1. Reduce key strokes and data entry time while increasing data accuracy
  2. Ensure agencies only pay for goods and services that were ordered and received through automated reconciliation
  3. Provide a rigorous audit trail for vendor and voucher information
  4. Provide a single, centralized source for transaction data

Enhance payment accuracy and accountability while reducing payment turnaround time

Inventory

  1. Provide a seamless flow of inventory items in a single, relational database
  2. Provide automated inventory replenishment triggers and integration with purchasing
  3. Utilize express and multi-step order fulfillment processing
  4. Allow cycle counting by Item ID, Location or Utilization code (A, B, C codes)
  5. Employ flexible reporting and analysis tools for managing and tracking inventory

Streamlined inventory processing from receipt to issue in an integrated system

Asset Lifecycle Management

Asset Management

  1. Reduce redundant data entry and simplify maintenance and reconciliation
  2. Adhere to GAAP, GASB rules and statutory reporting
  3. Track non-financial asset information like insurance, warranties, physical movement, location and custodians

Seamless, one-step, verifiable and accurate processing of asset information for financial and operating purposes

Financial Control & Reporting

General Ledger & Commitment Control

  1. Flexible GL reporting to meet Federal, State, and Agency-Specific reporting requirements
  2. Efficient processing of GL data through various delivered data entry functions and features
  3. Real-time budget check of commitments against Appropriation, Organization, and Project Budgets
  4. Comprehensive budget inquiry with drill down capabilities to source transactions

Flexible, efficient processing of financial data with real-time controls ensuring accurate and timely data to meet agency reporting requirements