SHARE Special Project
Cash Remediation Phase II
Planning and Implementation Certification
July 22, 2015
Requesting Agency:
Ron Spilman
SHARE:
Cassie Hayne
State Controller
Department of Finance and
Administration
SHARE Deputy Director
Department of Information
Technology
Current State
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The State developed many functional customizations and “shadow systems” during
SHARE’s original implementation. As a result:
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External payment systems are not integrated into SHARE
SHARE does not contain all of the bank accounts owned by the State
Reliance upon “Shadow Systems” has negatively impacted the ability to produce the CAFR
The purpose of these customizations and shadow systems were to replicate the
processes and systems that were in practice before SHARE, driving an inefficient and
error prone environment:
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Processes are labor intensive and therefore is subject to manual errors
General Ledger maintenance process and the process ownership is not clearly defined
System rules governing transactional accounting need to be updated and enforced
General Ledger entries are inconsistent and controls need to be defined
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The State’s ability to produce required financial reports that meet accounting standards,
to reconcile cash, as well as to prepare for the upgrade to a newer version of PeopleSoft
has been adversely impacted as a result as these current conditions.
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The DFA CAFR Reporting Project and Historical Cash Reconciliation Project are both
underway. These projects are not dependent on Cash Remediation Phase II, but will be
coordinating with the project team as there are synergies between the three projects.
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Project Objectives
Focus on these areas with the associated business process redesign objectives
will institute broadly accepted practices and mitigate the adverse effect of
customizations and shadow systems on accuracy, controls and timeliness
Process
Objectives
 Implementation of leading business processes and practices will validate that
there are adequate checks and balances in place for payment related activity
Payment Processing
 Payment information will be in SHARE and will be consistently accurate and in
compliance with State requirements
 Modify processes and security related to deposits to provide proper segregation
of duties
Cash Control Processing
 Assign each State owned bank account a unique General Ledger Account in
SHARE and verify it is tracked in SHARE Cash Management
 Implement clearly defined controls and processes associated with the Chart of
Accounts, and SHARE configuration to increase financial reporting accuracy and
compliance with GAAP/GASB
General Ledger Processing
 Establish clearly defined processes and preventive system controls within SHARE
to increase accuracy and efficiency of journal entry processing
 Redesign the SHARE open/close process for periods and adjust SHARE
configuration to facilitate the creation of financial reports
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Why now? Four Factors are Driving Urgency
1. Near-term realization of dramatically improved accounting processes for the State:
― System Process Redesign: Adopting SHARE-delivered functionality thereby mitigating operational risks
related to customizations, shadow systems and manual, error prone activities and interfaces
― Accounting Process Redesign: Adopting industry standard accounting practices thereby mitigating
operational risks related to insufficient controls, accuracy and timeliness, and efficient and effective State
accounting processes:
― Performance Enhancement: Realizing higher levels of process performance, controls and accuracy for the
State’s accounting practices.
2. Implementation of compliance requirements related to audit findings:
― Reduce ongoing exposure related to non-compliance with accounting standards as well as financial and
system audit findings
― Implement additional controls related to the Chart of Accounts, Configuration, and Security, which will
provide the State increased data reliability
― Achieve proper division of accounting responsibility between Agencies and DFA
― Attain consistency in internal and external financial reporting in order to produce a compliant CAFR
3. Achieving these business results within the next 10 months
4. Setting the stage for a successful SHARE upgrade:
― Implementing the process and system enhancements in the 8.8 environment will reduce upgrade project
complexity and risks due to having BPR implemented before the upgrade begins
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Summary of Scope
Process Area
Scope
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External Payment Systems
Warrant Printing, Processing &
Handling
Electronic Data Interchange
strategy
Accounts Payable Vendor
Processing
Staledating and Escheatment
Security and Approval
Processing
Bank Integration
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Returned Depository Items
Returned Electronic Payments
Security
Bank Accounts
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Control General Ledger
Process
Close Process
Financial Reporting Controls
Security
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Payment Processing
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Cash Control Processing
General Ledger Processing
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Project Timeline, Resources & Communications
Month
March - June
July
August
September
October
November
December
January
February
March
Design
Build and
Test
Train and
Deploy
Support &
Project
Close Out
Project Team Composition
Role
Key Project Stakeholder Communications
Resources
Meetings
Status Reports
Executive Sponsor
Ron Spilman
Monthly
Monthly
Steering Committee
Representatives from DFA, DoIT,
DOT, STO, and other identified
agencies
Monthly
Monthly
Project Management
Representatives identified by
agencies and vendor
Bi-Weekly
Bi-Weekly
Project Team
Technical and Functional
representatives from identified
agencies and vendor
Bi-Weekly
Receive from members
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April
Deliverables Summary
Phase
Summary of Phase
Key Deliverables
Project Planning
and Organization
This phase outlines how
the project will be
conducted.
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Design
The process, functional,
and technical design
activities will occur in this
phase
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Scope Definition
Project Plan and schedule
Resource Requirements
Bi-weekly and Monthly Reports
templates
Risk and Issues Log templates
Project Management Procedures
document (escalation process, issue
resolution process)
Requirements Document
Fit / Gap Document
Configuration Design
Reports and Workflow Design
Process Flow Documentation
Deliverables Summary (cont’d)
Phase
Summary of Phase
Key Deliverables
Build and Test
The build activities and
testing of the systems and
related process,
configuration, and other
system adjustments will
occur in this phase
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Configure and Build
Test Plan
Testing Defect Tracking Log
Test Scripts for Testing Cycles
Unit Testing
System and Integration Testing
User Acceptance Testing
Regression Testing
Train and Deploy User training, both support
and end-user training take
place in this phase as well
as the implementation of the
project
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Job Aids
Training Materials
Training Delivery
Knowledge Transfer
Implementation Plan and Schedule
Implementation Issues Tracking Log
Cut-over
Support and
Project Closeout
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On-site Support
Off-site Support
Transition Plan
Close-out Report
Support and final project
documentation
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Risks, Dependencies and Assumptions
Risks
Dependencies
Assumptions
 Sufficient state staff
resource availability and
project performance
 Delay in funding,
procuring, or contracting
could push delivery
dates
 Organizational readiness
 Agency modification of
payment source systems
 Completion of the project
within the funding
appropriations period
 Availability of nonproduction SHARE
financial environments
for development and
testing
 Agency payment
systems will require
modification to their
processes and interfaces
 External system
integrator services will
need to be engaged
 SHARE delivered
processes and
functionality will be used
 Agencies will be able to
meet project deadlines
including timely
executive decisions
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Budget and Funding Sources
Funding Source
Previously Certified
Certification Request
Total
Amount
Description
$1,054,000
$3,946,000
DOT Funding - DOT involvement to
accommodate DOT requirements
$5,000,000
Request based on independent CAFR audit
findings and related compliance remedies
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Summary
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Cash Remediation Phase I was successfully delivered in February 2013. It automated the State’s
cash reconciliation processes and had a dramatic impact on process efficiency and controls
Phase I was a ‘point forward’ solution and Historical Cash Reconciliation efforts are underway for
the period between July 2006 and January 2013
Cash Remediation Phase II continues where Phase 1 left off. It will result in the expedient
realization of the below project outcomes and benefits.
Primary Cash Remediation Phase II Project Outcomes and Benefits
1. Near-term realization of dramatically improved accounting processes
for the State in the areas of Payment processes, Cash Control
processes and General Ledger processes
2. Implementation of compliance requirements related to audit findings
3. Achieving these business results within the next 10 months
4. Setting the stage for a successful SHARE upgrade
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