2015 NASC Conference - March 11, 2015
Modernization through Collaboration
How Commonwealth of PA Treasury maximized the Value of ERP by integrating GRC
(Governance Rick and Compliance) with the collaboration of 25 different agencies.
Ms. Anna Maria Kiehl –Comptroller of Commonwealth of Pennsylvania
Mr. PN Narayanan – Chief Information Officer – Pennsylvania Treasury
Mr. Robert Sabo – Executive Director – Public Sector Solutions, Oracle
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Program Agenda
1
What’s Ahead on the Road to Government
Modernization
2
Modernization through collaboration at the
Commonwealth of Pennsylvania
3
Question and Answer
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
2
Government Modernization
1
What’s Ahead on the Road to Government
Modernization
2
Modernization through collaboration at the
Commonwealth of Pennsylvania
3
Question and Answer
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
3
What Does Modernization Mean for Public Sector
Professionals?
Key technologies and trends that impact you and Government Modernization
• Modernization – Improve efficiency, effectiveness and lower costs
• Mobile – Work anywhere on any device
• Cloud – Reduce deployment time, stay current, impact staffing issues
• Business Intelligence/Analytics – Use information to drive change
• Shared Services/Consolidation – Lower costs, improve service
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
4
Priority Technologies – Shifting Sands
1. Cloud Computing – lower
cost, faster deployment
2. Legacy Application
Modernization – more
efficient, lower cost, advanced
technologies
3. Mobile Workforce
Technologies – adapt to
changing workforce
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Modernized, mobile enabled using a
choice of deployment methods
Cloud
Business
Intelligence
Talent
Management
On Premise
Social
Relationship
Management
Planning and
Budgeting
HCM
Applications as a Service
ERP
Platform as a Service
Infrastructure as a Service
On Premise – Shared Service -
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Policy
Automation
Examples – Modernization through collaboration
Collaborative Solutions
Collaborative Solutions
• City of Tampa Hillsborough County FL.
'Historic' County, City Collaboration …….. “
Consolidated purchase between the the two
separate governments brings to the area the largest
Enterprise Resource Planning (ERP) system in the
nation.
• New York State - On April 23, 2007, the Office of
the State Comptroller (OSC) and the Division of
the Budget (DOB) announced their agreement on a
strategic alliance aimed at coordinating the
implementation of a statewide financial system for
New York State.
• Loudoun County VA and Loudoun County
Schools - County government and Loudoun
County Public Schools began implementation of
the new enterprise resource planning system in
January 2012 as part of a comprehensive program
to replace three core financial systems.
• New York MTA – Created a Business Services
Center to modernize and consolidate six previously
independent organizations on one shared service
platform. MTA is the largest transportation provider
in the Western hemisphere.
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Enterprise-wide Risk & Controls
OPERATIONAL RISK
FINANCIAL RISK
IT RISK
LEGAL RISK
Legal & Regulatory
Litigation
IP & Copyright
Discovery Risk
Contract Risk
Information Privacy
IT Asset Risk
Segregation of Duties
Service Provider Risk
Disaster Recovery
Compliance Risk
Service Level
Comptroller
Financial Reporting
Compensation Risk
Fraud
Transaction Errors
Governor/Legislature
Supply Chain Risk
Sourcing Risk
Material & Hazard Risk
Environmental Risk
Citizen Service Quality
WORKFORCE RISK
Health & Safety
Personnel Policy
Talent Retention
Auditor/Treasurer
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
8
Advanced Controls vs. Standard (historical)
Controls
Standard Controls + Advanced Controls
Fine-grained User
Access
Standard
Controls
Role-based
Security
Privileged User
Access
Monitoring
Prevent Exact
Duplicate Invoice
Audit Logs
Transaction
Pattern Analysis
Journal
Management &
Monitoring
Configuration
Snapshots &
Change Mgmt
Monitor
KRI’s
Compliant
Provisioning
3-Way Match
Approval
Hierarchies
Advanced
Controls
Duplicate Payment
Detection
&
Prevention
T&E Policy
Enforcement
Fuzzy Logic,
‘similar values’
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
9
Government Modernization
1
What’s Ahead on the Road to Government
Modernization
2
Modernization through collaboration at the
Commonwealth of Pennsylvania
3
Question and Answer
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
10
2015 NASC CONFERENCE
MODERNIZATION THROUGH
COLLABORATION
Commonwealth of Pennsylvania
Treasury Transformation
Anna Maria Kiehl, CPA, CGFM
Pennsylvania State Comptroller
akiehl@pa.gov
www.budget.state.pa.us
2015 NASC CONFERENCE
ROLE OF THE COMPTROLLER
• Appointed and serves all agencies under the Governor’s
jurisdiction, as well as certain independent agencies,
boards and commissions.
• Manages a shared service center providing payables,
accounting, reporting, quality assurance, and fiscal
oversight for all state agencies.
• Reviews most contracts and payment requests before
sending to State Treasurer for disbursements.
• Utilizes Pennsylvania’s SAP ERP system.
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2015 NASC CONFERENCE
STRUCTURE AND PROCESS
• Comptroller Operations, while not an independently elected office, is
separate and autonomous from all state agencies under the Governor’s
jurisdiction.
• The PA Treasurer is an independently-elected office
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2015 NASC CONFERENCE
COMPTROLLER FINANCE
TRANSFORMATION
2002: SAP ERP Implementation
• Treasury was determined to be out of scope.
• New system and account code structure were adopted by the Administration.
• Result: Comptroller was required to maintain legacy account code and cross
walk tables to communicate with the State Treasury system, perpetuating the
paper process between SAP and Treasury.
2009: Comptroller Consolidation and Further Automation of Processes
• A paperless invoice process and revenue collection process was implemented,
but the State Treasurer and Auditor General systems still required paper.
• Result: Agreement was reached to share Comptroller’s document repository to
eliminate scanning of paper in Treasury.
2010: Developed Framework for Automated Revenue Process
2014: Finalized Automation with State Treasurer’s Implementation of PeopleSoft
• Result: Electronic files replaced paper handling, revenues were recorded more
quickly, and the manual keying of data at Treasury was eliminated.
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2015 NASC CONFERENCE
STATE TREASURY DECISION TO IMPLEMENT
ORACLE ERP SYSTEM
• State Treasury CIO involved Comptroller and agency
stakeholders in ERP planning.
• Treasury CIO requested Comptroller pain points and lessons
learned implementing SAP in 2002.
• State Treasury CIO welcomed Comptroller business
requirements and enhancements in designing the TO BE
Treasury processes in PeopleSoft.
• Collaboration opened the door to many operational efficiencies
and added functionality across both ERPs and agency systems.
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2015 NASC CONFERENCE
THE APPROACH
• Standardize and streamline non-standard & sub-optimal
processes.
• Eliminate non-value added processes & activities.
• Reduce cycle times & overall cost of operations.
• Collaborate, Communicate, and Confirm Expectations.
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2015 NASC CONFERENCE
COMPTROLLER ACCOMPLISHMENTS
• Converted 83 payment files across 22 agencies to conform to
standard account code & SAP/PeopleSoft readable format.
• Converted 77 legacy system voucher transmittals, which were
mostly paper transmittals, into standard transaction processes.
• Eliminated intermediate programs used to load agency files
into SAP, thereby eliminating the on-going need to support
.Net and Progress applications.
• Standardized the file transfer process across agencies and
ensured DHS has the ability to stop any payment request it
deems invalid prior to transmission to either SAP or Treasury’s
PeopleSoft system.
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ENTERPRISE-WIDE BENEFITS
• Eliminated legacy account codes & dual account code
maintenance, crosswalk maintenance.
• Reduced staff needs and reconciliation errors.
• Standardized all non-standard processes on SAP/Payables.
• Eliminated legacy applications and front end processes.
• Streamlined financial sub-systems maintained by agencies by
standardizing on one account code structure across all agencies
and State Treasury.
• Decentralized revenue entry and implemented a standard
process.
• Improved cycle time and lowered operational costs by
streamlining & decommissioning front end systems.
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2015 NASC CONFERENCE
ADDITIONAL AGENCY BENEFITS
• Agencies interfacing directly with Treasury’s new
PeopleSoft system are able to post or link payment
information on agency system transactional data.
• Enhanced remittance advice capabilities are now
available in PeopleSoft enabling expansion of ACH
payments & use of electronic addenda.
• New flexibility in the timing of the interface
between SAP and Treasury allows the
Administration to send payment requests
throughout the day to better respond to emergency
payment requests.
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2015 NASC CONFERENCE
DAY 1 SUCCESS!
Over $43M in critical (same day or next day) payments along
with 175 previously manual payment processes were
successfully processed in PeopleSoft.
EBT
Daily Lottery Wire
WIC
SWIF
SSI/Cash/PNA
(Welfare Benefits
Medicare A&B
Premiums
PACSES (Child
Support payments
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2015 NASC CONFERENCE
COLLABORATION GETS RESULTS
• Built relationships and bridges across agencies and offices.
• Developed a common understanding of business requirements and a
shared IT vision across agencies.
• Demonstrated cross-functional, multi-agency team success!
• Implemented an ERP system for the State Treasurer that is
technologically advanced and can be adapted and enhanced to meet
future initiatives.
Future Plans
• Comptroller and Treasury CIO to discuss ways GRC tools can be
leveraged to reduce manual controls throughout the process.
• Comptroller and Treasurer to design a process to capitalize on prompt
payment discounts.
• Comptroller and Treasurer to enhance payment status reports for
payees throughout the payment process.
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2015 NASC CONFERENCE
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PENNSYLVANIA TREASURY: Organization Overview
New Records
30M
$15Bn
Payments
worth more
than $75Bn last
fiscal year.
In State Assets PA 529 College Savings
Managed by IT Program reaches nearly $3
Systems
billion in assets, serving
186,000 accounts as of
June 30, 2014
Unclaimed
Property
Collected $265 million and
returned over $116 million,
generating nearly $148 million
for the General Fund in FY
13-14.
www.patreasury.gov 25
Fiscal Review
• Section 1501 of the Fiscal Code requires all agencies to submit
payment request to State Treasury.
• Section 1502 of the Fiscal Code requires payment requests to be
audited in accordance with GAAS, and if they appear lawful and
correct, Treasury will issue warrant for payment.
• 50 Employees
• Over 60 Commonwealth Agencies
• Over 25 different source systems submit payment requests to
Treasury
• Many time sensitive payments (less than 10 days to review and
process)
www.patreasury.gov 26
Fiscal Review

$
All Payments By The Commonwealth Of PA audited By
Fiscal Review
30 Million Transactions Per Year; $75 Billion In Spend Per
Year
Detect Duplicate And Incorrect Payments
____
___
•• ___
___
•
i
Maintain Audit Checklists
Accumulate Audit Error & Savings Information
www.patreasury.gov 27
Before GRC
Agencies Payment
Requests
Treasury Payment System
Payment
Requests
_________
L E G A C Y
Fiscal Review Team
CUSTOM BUILT
SQL SYSTEM
• Sampling
• 100% OVER
threshold
www.patreasury.gov
After GRC
AGENCY PAYMENT
REQUESTS
-
PEOPLESOFT FINANCIALS (New Payment System)
-----------------------------------------------------------------------------------------------------------------------------HOLD
Auto
Payments
________
_
L E G A
C Y
FISCAL REVIEW
TEAM
PEOPLESOFT
Daily Graph
Update Job
Standard
 GRC
CONNECTOR 
for PeopleSoft
RELEASE
-Payments On Hold
Not Selected For Audit
GRC Advanced
Controls
----------------------------------------------------------GRC
• Graph-updates
• Map Reduce
Enabled
– 4+ dedicated
machines
• Control Analysis
• Linux
• Oracle DB
www.patreasury.gov
Sample Controls
Duplicate invoice
Invoices ending with alpha character
Similar invoice numbers – same vendor
First time payments for contract/purchase order
Resubmission of previously rejected payments
Invalid Address
www.patreasury.gov 30
Summary
 GRC Advanced Controls is ‘Mission Critical’ for Treasury
 $75 billion spend & 30 million transactions mandated to be
reviewed
 Enable continuous improvements for upstream Agency
processes
www.patreasury.gov 31
Collaborative Success
• 12 different agencies and 35 different systems
• Replaced/consolidated more than 25 different internal systems
• Eliminated scanning Fiscal review support documents by
securing access directly to source system.
• 8 Million payments worth $50 billion processed successfully
• On Schedule , under budget
• $0 Change orders
www.patreasury.gov 32
Government Modernization
1
What’s Ahead on the Road to Government
Modernization
2
Modernization through collaboration at the
Commonwealth of Pennsylvania
3
Question and Answer
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
33