Streamlined Banking Project: Efficient Reconciliation and Cash Management Implementation

1. STREAMLINED BANKING PROJECT CLOSEOUT PHASE Elena Tercero – DFA Victor Vigil – STO

2. STREAMLINED BANKING • Evaluate and re-engineer cash management • Reconciliation processes • Functionality • State of implementation

3. STREAMLINED BANKING • Project Goals • Increase the success of the automated reconciliation function • Establish controls over data input • Increase the efficiency of automated process to reduce the time needed to reconcile • Fully implement a daily book to bank reconciliation process • Establish business processes that prevent reconciling items other than timing differences related to the redemption of warrants • Test and implement stale-dated warrant process • Test and implement a standard process to void warrants

4. STREAMLINED BANKING • Outcomes and Deliverables • Implemented procedural and system changes • Ability to automatically match the bank statement data to the financial registers on a daily basis • Implemented a daily book to bank reconciliation process • Ability to reconcile the general ledger to the journals, the journals to the financial registers, and the registers to the fiscal agent bank statements • Ability to accurately report financial data • Audit trail from the bank statements, to the financial registers, to the journals, to the general ledger, to the financial statements • Verified reconciliation data from June 30, 2006 through project completion • Ability to provide accurate outstanding information to the stale-dated-warrant process and the reconciliation process

5. STREAMLINED BANKING • Streamlined Banking Project Timeline

6. STREAMLINED BANKING • Project Progress: • Initiation Phase • Defined business requirements • Determined project goals and deliverables • Developed Project Management Plan • Performed software functionality assessment • Developed list of procedural and configuration changes • Constructed Proof of Concept • Planning Phase • Developed Implementation Plan documents • Developed preliminary Project Schedule • Sent Requests for Quotes for IV&V Contractor • Developed Scope of Work for development and data cleanup contractors • Identified resource requirements • Received waiver for a TARC review • Initiated development of Project Request Forms • Drafted MOU between DoIT, DFA, and STO

7. STREAMLINED BANKING • Project Progress: • Implementation Phase • Implemented configuration design in Cash Management Module • Conducted UAT and Integration Testing • Implemented business process changes • Implemented daily book-to-bank reconciliation process • Implemented Stale Dated Warrant enhancements • Completed data cleanup

8. STREAMLINED BANKING • Lessons Learned: • Set a logical plan to accomplish goals, objectives, and deadlines. • Co-located team in a dedicated, separate space for development and testing • Elimination of distractions • Project change to include Transition of Fiscal Agent had a beneficial effect • Set a clear definition of goals • Continuity of resources for project team • Increased knowledge of Cash Management Module • Commitment of resources for duration of project • 3rd Party Agencies had difficulty complying with project timeline • Should have included 3rd Party Agencies in project status reporting • Need to clearly communicate mission statement to outside agencies

9. STREAMLINED BANKING • Results Achieved: • 30-40% reduction in time for reconciliation at STO • STO now able to focus on other issues and responsibilities • STO not “data clerks” anymore, they are now “data managers” • New business processes for stale dated warrants • Easier reconciliation for agencies • DFA improved book-to-bank reconciliation • New fiscal agent’s willingness to work with state • Stale Dated Warrant funds returned to agencies

10. STREAMLINED BANKINGBudget By Project Phase