Enterprise Solutions: Grants Management/ Financials Review. February 28, 2013

Transcription

1 Enterprise Solutions: Grants Management/ Financials Review February 28, 2013

2 Review of Grants Management Committee Presentation from 12/13/2012 1

3 Session Law Grants Management Oversight Committee created and charged with: Coordination of development of enterprise grants management system to replace all redundant grants management systems Directing OSBM s planning and implementation of a new enterprise grants management system The committee is currently made up of the following members: David McCoy, State Controller (Committee Chair) Tom Newsome, Senior Deputy State Controller Art Pope, State Budget Director Beth Wood, State Auditor 1

4 Current Grants Management Systems NC agencies currently operate more than 20 separate grants management systems Several agencies are still using fully manual processes Table 1 - Existing Grant Applications Category Custom, in-house developed & supported Custom, vendor developed & supported COTS*, vendor supported Software-as-a-Service (SaaS) Total Manual Processes - No IT Applications *Commercial Off-the-Shelf Applications/Agencies 13 applications 2 applications 3 applications 3 applications 21 applications 5 agencies 2

5 Grants Management Requirements OSC conducted business requirements gathering in 2008 With agency input, OSBM updated the 2008 requirements, with 2 major categories: State-as-a-grantor State-as-a-grantee A comprehensive enterprise grants management system must include the following: State as a grantor: Application for non-state entities to receive State grant funds Payment processing and monitoring Grantee reporting Audit State as a grantee: Federal draw-down Reports on use of federal funds 3

6 Methodology Study by Gartner, Inc. used to identify Best-of-Breed and ERP grant systems A Best-of-Breed application is the best application for one particular function, such as grants An Enterprise Resource Planning (ERP) application performs all business functions, such as finances, grants, fleet maintenance, and HR/payroll, as one integrated system 5

7 Recommendations Implement full SAP ERP SAP is the leading enterprise grants management software for large public sector entities Financials must be included in order to capture State-as-agrantee requirements SAP is the only ERP capable of meeting NC s needs from both a grants and financials perspective Additionally, NC already has significant SAP resources BEACON HR/Payroll operates on an SAP platform DOT s ERP implementation was the basis for SAP s public sector package 8

8 Recommended Steps: Short-Term Agencies in need of new grant management systems prior to the implementation of a statewide solution should work with OSBM and DOT to adapt DOT s existing SAP solution as Best-of-Breed (excluding Financials - Grantor only) Existing or future grants-related IT projects would be redirected toward the long-term statewide enterprise effort Agencies taking the short-term approach would move to the statewide solution if that solution is different from the existing Reauthorize Grants Management Oversight Committee as a Steering Committee, expand to include agency participants agencies with both State-as-grantee and Stateas-grantor needs 9

9 Recommended Steps: Long-Term Begin implementation of ERP based on recommendations of planning assessment Anticipated phased implementation, agency-by-agency over 5- year period Consider centralizing SAP resources in a statewide financial oversight agency with a direct SAP appropriation Governance decisions would be accomplished through this agency 11

10 Next Steps: Update aging financial infrastructure backbone: - Extending State s existing HR/Payroll ERP to include Financials will help better manage our business by allowing for more customer required integrated functionality. - Increased integrated functionality drives more efficiencies and productivity for the State. 12

11 Key New Functionality Required Accounts Receivable Cost Allocation Fleet and Facilities Management Grant Administration (Grantee & Grantor) *excludes potential benefits from code/configuration re-use

12 Proposed Rollout NCAS, our existing financial system is aging and lacks key functionality that our customers are demanding. HR/Payroll completed Uses SAP platform Limited enterprise data structures in place OSC Shared Services and technical support org HR/Payroll Replace NCAS Enterprise design AR, Cost allocation functions, Fleet & Facilities Mgmt., Grants Mgmt. Leverage SAP assets and resources at OSC & DOT Financials (Phase 1) Financials (Phases 2-x) Replace NCAS Implement remaining agencies New CAFR reporting, Cash Mgt functions Interfaces for noncore NCAS agencies Sunset agency sub-systems Budget Full integration with ERP system

13 Estimated Cost Implementation Costs $30M/year for 5 years Once rolled out, estimated on-going O&M costs would be approximately $9M/year. Caveats: Does not include Universities Does not include: Budget, E-procurement or Manufacturing 13

14 Summary Proactive request to update aging Statewide financial backbone (NCAS). Fulfills agency business requirements for A/R, cost allocation, fleet/facilities management, & grants management, etc. which create increased statewide efficiencies & productivity through extended integrated workflow benefits. Provides the State the ability to do program level reporting Allows ability to leverage existing unused licenses and some subject matter expert (SME) resources. More efficient to have single enterprise financial backbone versus one-offs.ne-offs.

15 Questions? 12