Steering Committee Meeting Minutes
December 12, 2008
9:00 - 11:00 a.m.
Room 102, Landon State Office Bldg.

The meeting of the Financial Management System (FMS) Steering Committee was called to order.  The following persons were in attendance:

Duane Goossen, Division of the Budget
Kent Olson, FMS Project Director
Gary Schneider, FMS Implementation Manager
Carol Foreman, Department of Administration
Chris Howe, Department of Administration
Jeff Peter, Judicial Branch
Roger Werholtz, Department of Corrections
Marty Kennedy, Department on Aging
Alice Knatt, Department on Aging
Jim Conant, Department of Revenue
Laura Howard, Department of Social and Rehabilitation Services
Rhonda Seitz, Department of Transportation
Marcia Ferrill, Department of Transportation
Diane Duffy, Board of Regents
Cindy Hooper-Bears, State Treasurer
Dick Koerth, Department of Wildlife and Parks
Paul Lavery, Accenture
Kirk Teal, Salvaggio, Teal & Associates (STA)
Becky Kersting, DISC
Connie Guerrero, FMS Enterprise Readiness Team Manager

Carol Foreman began the meeting by informing Steering Committee members that no formal decisions would be made during today’s meeting. She reminded them the January meeting will be a point where several analysis documents will be discussed. Kent Olson introduced Marcia Ferrill who has been recently appointed as the Director of the new Division of Financial Services at KDOT. Dale Jost, who has served as the Bureau Chief for Fiscal Services for many years at KDOT is retiring today. Kent also introduced Paul Lavery, Accenture Project Manager and Kirk Teal from Salvaggio, Teal & Associates.

I.      Project Status

The 1st Six Months of the Project
Kent Olson reported the Project continues to remain on track for all deliverables and work products. Conference Room Pilot (CRP) sessions are nearly finished. CRP sessions wrap up next week on the remaining two topics. A total of 66 CRP sessions have been held since November 12th.

Mid-January is a decision point on several analysis documents for the project including the Chart of Accounts, KDOT, SRS and the State Treasurer systems. Starting in mid-March 2009 interface standards will be completed and send out to agencies. The build of the technical infrastructure is also scheduled to be completed in April of 2009.

Project Team
The majority of State positions on the project have been filled. Only five positions remain vacant including the training developers that are not scheduled to join the project until early next year. Accenture has also ramped up their staffing and have approximately 25 consultants on-site.

State functional team members are rapidly gaining knowledge by attending Oracle certified training on the PeopleSoft software and are learning Accenture’s Project Methodology. Learning this methodology is new to many of the staff and Accenture is providing a lot of knowledge to the State team members at this point in the project. Team chemistry is good and all of the teams are working towards finding the balance between the roles and responsibilities of the tasks performed by State and by Accenture.

Team Training
Kent Olson reported that functional team training will be completed this week. State functional team members are attending Project Costing and Contracts this week. Technical staff training is on-going and will continue for the next few months.

Conference Room Pilots (CRP's)
Kent Olson reported that the Conference Room Pilot sessions concluded on December 11th. However, a couple of additional sessions may be held next week. He stated this was a very large effort that included a total of 66 CRP sessions attended by staff from 42 different agencies that collectively represent the most complex business process scenarios. The biggest overall problem was related to the meeting room space. However, our partners at SRS and the Department of Revenue came forward and provided the project team with alternative conference room space.

The overall purpose of these sessions was to identify gaps in the software by taking the requirements identified in the RFP and comparing them against the vanilla software. We knew there would be several different alternatives to address the gap including 1) eliminating the requirement; 2) creating a work-around or different way to accomplish the requirement; or, 3) developing a system modification.

The project team will now made decisions on which modifications need to be completed.

Foundation Decisions
Kent Olson reported that the Project Team is still working toward a decision on the number of General Ledger (GL) business units that will be implemented in the new FMS system.  PeopleSoft has the potential for one to many business units and there isn’t one right answer as each approach has pros and cons as different things apply to each organization.  One impact of creating only one GL Business Unit would mean that each ‘PCA” chartfield value would need to be unique for each State agency.  An analysis document is being put together to formalize this decision. 

Diane Duffy asked if there would be any tax implications if only one GL business unit is implemented.  Paul Lavery from Accenture responded there would not be any tax implications even if we end up implementing multiple business units.

Data Center Hardware & Build-out
The beginning build-out of the data center for the Development and Testing environments is on schedule and will be available by early February 2009.

Miscellaneous Project Activities
Several surveys have been sent out to designated agency contacts regarding reporting needs, quality assurance capabilities and labor distribution requirements.

A request was sent to agencies that will be interfacing into the new FMS system or de-commissioning agency systems requesting they provide detailed project plans to the Sunflower Project team by December 15th. Dick Koerth from the Department of Wildlife and Parks asked if a decision had been made regarding the elimination of an internal financial management system at W&P. Gary Schneider reported that this system is scheduled to be eliminated with the implementation of the new FMS system.

Mr. Koerth also thanked the Project team for providing his agency with remote access so they were able to participate in the CRP sessions without having to travel to Topeka.  

A meeting is being scheduled with the Division of Purchases on December 18th to develop a long-term strategy for rolling out additional purchasing-related functionality.

Five project deliverables (paid and non-paid) have been submitted to date including the Project Management Procedures and the Communications Plan.  A total of twenty deliverable documents are due in January and many of these will include recommendations for several decision points on the project.  

A Parking lot list of things to consider for the future related to scope elements and requirements not included in the July 2010 “go-live” has been started.

The Project team is preparing for the first Independent Verification and Validation (IV&V) review.  A total of five quarterly assessments will be conducted by the vendor selected to do these reviews throughout the duration of the project.  The staff assigned to the Quality Assurance team on the State side is small so this could be an issue identified by the vendor.  Project team members are also looking for documents that the vendor can review.

The first bi-monthly Project newsletter will be published this month and the announcement of the winning name of the new FMS system will be announced soon.

Cindy Hooper-Bears reported that Accenture Project Team members have been great in leading her agency through the process of putting together an analysis document regarding the State Treasurer’s Office computer systems.

II.     Change Control Log

Enhancements & Mods
Gary Schneider informed Steering Committee members the first meeting to begin discussing the software gaps identified during the CRP sessions was held last week. The process started with a review of the requirements which ranged from 20 to 200 requirements per module in the CRP sessions attended by Project functional team members and agency participants.

Resolutions for the software gaps fall into three categories. The first resolution is to eliminate a requirement that was identified initially. Annette Witt who is the Finance Team Manager on the Sunflower Project has the authority to drop requirements that are no longer determined to be needed in the new FMS system as part of the Governance Structure on the project. The second resolution is to request a system modification to gain an important piece of functionality related to a previously identified requirement. These modifications requests will have to come up through the Project’s Governance Structure in order to be approved. The final resolution is go back and look for work around that can be accomplished without adding a modification to the system. For example, if a requirement was based around an agency specific process or internal system limitation the Project Team will most likely push back to the agency and request that they create a work-around in lieu of modifying the software package. The Project team needs to keep in mind the long-term impact and value to the State that each modification will create as part of this overall decision making process.

Authority for Change Requests
Gary Schneider went over a slide that defines the Governance Structure and authority for change requests that occur on the Project.

Level 4 – State Sunflower Project Team Managers (Finance, Technical, and Enterprise Readiness) are authorized to approve minor changes in project scope. This includes Annette Witt the Finance Team Manager.

Level 3 – State Sunflower Project Leadership Team are authorized to approve moderate scope changes and all code changes to the delivered software. This level includes Kent Olson, Peggy Hanna and Gary Schneider.

Level 2 – Steering Committee is authorized to approve significant scope changes and make recommendations on policies and issues affecting agencies.

Level 1 – Executive Sponsors provide the Statewide leadership and the mandate for the Sunflower project.

Change Control Log
Gary Schneider a few minor changes to the Contract and/or Statement of Work have occurred. These changes include minor working changes and clarifications and a change to allow for the use of a different software package for developing end-user training.

III.     Top 10 Project Risks

Gary Schneider went over the Top 10 Project Risks identified by State of Kansas and Accenture Project Team members. Every risk has an owner and mitigation strategies and the risks appear in the order of their impact to the Project team. Risks discussed included the availability of resources in the Division of Personnel Services, Accounts and Reports and the Division of Information Systems and Communications and their ability to implement the changes required to integrate with the new FMS system. Other risks included lack of agency volunteers to train end-users and to attend end-user training. In addition, agency requirements may be more extensive and specialized that originally expected. These risks will continue to be monitored to determine if mitigation strategies are working to keep these risks from during into issues.

IV.    Agency Activities and Issues

Project Team members recently briefed Regents Controllers on project status and chart of accounts changes. A follow-up meting is planned for mid-January. Regents IT Leadership were also briefed on project status and they have been requested to create project plans and provide an update on progress once a month.

The Department of Labor is working towards a decision on whether or not they can de-commission their agency cost accounting system. Their ability to eliminate this system is impacted by the labor distribution system decision.

Veterans’ Affairs is implementing a new financial system that will initially integrate with STARS and then to the new FMS.

Analysis documents regarding the replacement of the Department of Social and Rehabilitation Services FARMS and Central Cashier systems and the replacement of State Treasurer systems are due in Mid-January.

Set-Off
Gary Schneider informed Steering Committee members that during negotiations Accenture had proposed a solution to replace the existing Set-off system by implementing a customization to PeopleSoft for approximately $500K. The Project had three options to consider, 1) eave the system the way it is; 2) implement the customization in PeopleSoft; or 3) develop a custom solution. Option 3 was selected and a new custom system is nearly complete and resulted in a savings of approximately $300K to the State.

VI.     Labor Distribution Analysis

The Labor Distribution Analysis document is still being complete. This solution affects many stakeholders and represents a major decision point affecting both agency satisfaction and risk to the project. The Steering Committee will be provided with a draft copy of this analysis document to give them information to make an informed decision at the January Steering Committee meeting.

VII.      Next Steering Committee Meeting

The next Steering Committee meeting will be on Friday, January 16, 2008 from 9:00 – 11:00 a.m. in Room 102 of the Landon State Office Building.

Kent Olson thanked all members for their contributions and the meeting was adjourned by Carol Foreman.