LaGOV LaGOV Version 1.0 Updated: 10/09/2008 Agenda Logistics, - PowerPoint PPT Presentation

Project Systems Project Systems Project Systems Capital Projects Periodic Processing Capital Projects Periodic Processing Capital Projects Periodic Processing November 12- -13, 2008 13, 2008 November 12 November 12-13, 2008 LaGOV LaGOV Version 1.0 Updated: 10/09/2008

Agenda  Logistics, Ground Rules & Introduction  Project Timeline  Workshop Objectives  Business Process Review – Process overview – AS-IS process flow – Current system alignment – Process improvement opportunities – SAP terms glossary – SAP concepts & functionality – Business process flow – Leading practices – Enterprise readiness challenges  Next Steps – Action items  Questions 2

3 Before we get started ... Logistics

Ground Rules  Has everybody signed in?  Everybody participates – blueprint is not a spectator sport  Silence means agreement  Focus is key – please turn off cell phones and close laptops  Challenge existing processes and mindsets  Offer suggestions and ideas  Think Enterprise  Ask questions at any time  One person at a time please  Timeliness – returning from break  Creativity, cooperation, and compromise 4

Introduction  Roles  Process Analyst and Functional Consultant – lead and facilitate the discussions and drive design decisions  Documenter – take detailed notes to support the formal meeting minutes to be sent by the Process Analyst to all participants for review and feedback  Team Members – provide additional support for process discussions, address key integration touch points  Subject Matter Experts – advise team members on the detailed business process and participate in the decisions required to design the future state business process Round the Room Introductions Name Position Agency 5

Project Phases  Five Key Phases Preparation Realization Preparation Business Blueprint Go Live Support Project Final and • Strategy & Approach Defined • Development & Unit Testing • Go-Live Support • • • Project Team Training Integration Testing Performance Tuning • End-User Training Materials • Business Process Definition • User Acceptance • • Development Requirements Technical Testing • End-User Training • Conversion 6

Project Organization - Functional Teams Finance Leads Logistics Leads Linear Assets Leads Beverly Hodges – Finance Lead Belinda Rogers – Logistics Lead Mark Suarez – Agile Assets Lead Drew Thigpen – Finance Lead Jack Ladhur – Logistics Lead Charles Pilson – Consulting Lead Mary Ramsrud – Consulting Lead Brad Denham – Consulting Lead General Ledger Accounts Payable Accts Receivable Cash Management Cost Accounting Funds Management Charlie Davis Grants Mgt John Hodnett Project Systems Larry Hofstad Asset Accounting Christine Lee Grantor Budget Prep Real Estate Management 7

Blueprint Objectives  Review and discuss the current or As-Is business processes • Which helps to drive out the Business requirements Business requirements • As well as the integration points integration points with other processes  Define Master Data • Address key integration points • Support organizational requirements • Consistent and appropriate use of data fields  Define Future or To-Be business processes based on: • Best Practices inherent in SAP • Intellectual capital from other SAP implementations • State business requirements  Identify development requirements • Which could result in the need for a form, report, interface, conversion, enhancement, or workflow (FRICE-W)  Understand and communicate any organizational impacts / Enterprise Readiness challenges  Gather system security authorizations and district-wide training requirements 8

Future Work Sessions Work Title Business Process Goals Session Date - Automated settlements to Assets under Construction and final assets Capital Projects Periodic 11/12/08- - Process for project closeout FI-PS-009 Processing 11/13/08 - Define roles and processes for defining settlement rules and executing periodic processing - Reporting requirements to effectively manage projects 11/19/08- FI-PS-008 Project Management - Standard reports versus BI reports 11/20/08 - Detail the use of Networks and Activities for scheduling PS Validation Session: December 10-11 9

Work Session Objectives  Review current As-Is and define future To-Be processes for capitalizing assets and closing out projects – Discuss creation of settlement rules – Discuss creation of Asset Master Records – Settlement process to AuC’s and Fixed Assets  Identify roles and responsibilities surrounding periodic processing and project close out  Identify process changes and training needs for State End-Users 10

As-Is: Wooster Method  Provides ‘a relatively simple solution to the problem of capitalizing a complex and high dollar system of assets such as the State’s infrastructure’ – Identifies an infrastructure asset as all expenditures made by an agency during a particular year  Does not provide costs by specific inventory assets: – Impairment reporting and insurance recoveries (GASB42) – Retirement or turning over parts of infrastructure to a local government – Re-evaluation of estimated life of a project 11

DOTD As-Is: Project Close-out  Final Inspection complete, road open to traffic  Construction Audit updates TOPS with Final Estimate Date when last construction invoice is processed  Audit Section completes audit  Final Voucher (Federal Aid Projects) is submitted to FHWA by Project Finance-Federal Aid  Project is closed 12

FPC –“As-Is” Process Overview  OSRAP reviews all Fund 075 expenditures per the 2G06 report to determine which should be capitalized  Appropriate (> $100,000) projects/expenditures are classified as “Construction-in-progress” until complete  FPC transmits Notice of Acceptance to OSRAP upon completion  OSRAP capitalizes appropriate expenditures based upon FPC coding & description – Projects under $100,000 are not capitalized. – Discrete expenditures such as Superdome, Colleges, not capitalized by the State – Local Projects (Non-state Capital Outlay projects) are not capitalized by the State – Land purchases (by the State) are not subject to the $100,000 threshold for capitalization 13

CWPPRA- “As-Is” Process Overview  CWPPRA projects typically constructed on private property through surface-rights agreement with the owner, costs shared by feds  At completion, projects are expensed out, not recorded assets of the State  State is responsible for monitoring & maintenance activities for 20 year project life 14

Current Systems Alignment  AFS  AGPS/CFMS  SLABS  PMFS  Excel  TOPS  STARS  Trns.port SiteManager 15

Process Improvement Opportunities (Pain Points)  Complete integration between the capital projects in the PS module and Assets-under-construction (AuC) and the Final Depreciating Assets (FDA) in AA module  Settle project expenditures to the appropriate balance sheet or income statement on a routine basis (typically monthly)  Automate AuC and final fixed asset settlement  Utilize status management to effectively monitor and control project expenses 16

SAP Glossary Capital Asset - Tangible property which  Asset Class - Main criterion for cannot easily be converted into cash and classifying fixed assets according which is usually held for a long period, to legal and management including real estate, equipment, etc requirements.  Settlement- settlement is the process  Asset Master Record (AMR) – where the actual costs incurred for a Contains general information and WBS element, network, or activity are valuation/depreciation rules for a allocated, in whole or in part, to one or specific item in the Asset more receivers (e.g. from WBS to AuC, Accounting (AA) module. In SAP, it from AuC to final AMR) also stores all the values and  Settlement Rule- distribution rules for transaction data for the item. interim settlements and final settlement  Asset Under Construction- a fixed to fixed assets asset that is in the process of being  Settlement Profile- the central control completed at the time the balance parameter for settlements sheet is being produced – construction in progress  Cost element – Represents General Ledger accounts in the Controlling module. 17

Settlement Overview FI FI MM Material withdrawal Material withdrawal AM AM Goods receipt Goods receipt Settlement FI FI rules: Invoices Invoices - Receivers - Distribution rule CO CO CO CO - Settlement Activity allocation, Activity allocation, parameters transfers, distribution, transfers, distribution, overheads, process costs overheads, process costs PS PS PS PS Confirmation Confirmation 18