STREAMLINED BANKING
Project Management Plan
(PMP)
Executive Sponsor
Anthony Armijo, CPA, CGFM
State Controller
Executive Co-Sponsors
Marlin Mackey, DoIT Secretary
James Lewis, State Treasurer
Business Owners
Anthony Armijo, CPA, CGFM
State Controller
Marlin Mackey, DoIT Secretary
James Lewis, State Treasurer
Project Manager
Anthony Armijo, CPA, CGFM
Original Plan Date: October 13, 2009
Revision Date: November 3, 2009
Revision: 0002
table of contents
table of contents ii
Revision History v
1.0 Project Overview 6
1.1 Executive Summary 6
Goals of the Project 8
1.2 funding and sources 8
1.3 constraints 9
1.4 dependencies 10
1.5 ASSUMPTIONS 10
1.6 Project Risks Identified 11
Risk 1 11
Risk 2 11
Risk 3 11
Risk 4 11
2.0 Project Authority and Organizational Structure 12
2.1 Stakeholders 12
2.2 Project Governance Structure 15
2.2.1 Describe the organizational structure – Org Chart 15
2.2.2 Describe the role and members of the project steering committee 16
2.2.3 Organizational Boundaries, interfaces and responsibilities 16
2.3 Executive Reporting 16
3.0 Scope 17
3.1 Project Objectives 17
3.1.1 Business Objectives 17
3.1.2 Technical Objectives 17
3.2 Project exclusions 18
3.3 Critical Success Factors 18
4.0 Project Deliverables and methodology 18
4.1 Project Management Life Cycle 18
4.1.1 Project Management Deliverables 20
4.1.2 Deliverable Approval Authority Designations 26
4.1.3 Deliverable Acceptance Procedure 27
4.2 PRODUCT LIFE CYCLE 27
4.2.1 Technical Strategy 29
4.2.2 Project and Product Development Deliverables 29
4.2.3 Deliverable Approval Authority Designations 31
4.2.4 Deliverable Acceptance Procedure 31
5.0 Project Work 32
5.1 Work Breakdown Structure (WBS) 32
5.2 Schedule allocation -Project Timeline 34
5.3 Project Budget 35
5.4 Project Team 36
5.4.1 Project Team Organizational Structure 36
PROJECT GOVERNANCE PLAN 37
5.4.2 Project Team Roles and Responsibilities 37
5.5 STAFF PLANNING AND Resource ACQUISITION 42
5.5.1 Project Staff 42
5.5.2 Non-Personnel resources 42
5.6 PROJECT LOGISTICS 43
5.6.1 Project Team Training 43
6.0 Project Management and Controls 43
6.1 Risk and issue Management 43
6.1.1 Risk Management Strategy 44
6.1.2 Project Risk Identification 44
6.1.3 Project Risk Mitigation Approach 44
6.1.4 Risk Reporting and Escalation Strategy 44
6.1.5 Project Risk Tracking Approach 44
6.1.6 ISSUE MANAGEMENT 44
6.2 INDEPENDENT Verification And Validation - Iv&V 46
6.3 Scope Management Plan 46
6.3.1 Change Control 47
6.4 Project Budget Management 47
6.4.1 Budget Tracking 48
6.5 Communication Plan 48
6.5.1 Communication Matrix 48
6.5.2 Status Meetings 51
6.5.3 Project Status Reports 51
6.6 PERFORMANCE MEASUREMENT (PROJECT METRICS) 51
6.6.1 Baselines 51
6.6.2 Metrics Library 51
6.7 QUALITY OBJECTIVES AND CONTROL 51
6.7.1 quality Standards 51
6.7.2 Project and Product Review AND ASSESSMENTS 52
6.7.3 Agency/Customer Satisfaction 52
6.7.4 PRODUCT DELIVERABLE ACCEPTANCE PROCESS 53
6.8 CONFIGURATION MANAGEMENT 54
6.8.1 Version Control 55
6.8.2 Project Repository (Project Library) 55
6.9 PROCUREMENT MANAGEMENT PLAN 55
7. 0 Project Close 55
7.1 Administrative Close 55
7.2 Contract Close 56
AttachmentS 57
Attachment A: Project Schedule with Milestones and Tasks 58
Attachment A: Project Schedule with Milestones and Tasks 58
Attachment B: Risk Assessment Report 59
Attachment C: Issue and Risk Log Attachment D: Change Request Log 60
Attachment D: Change Request Log 61
Attachment E: Project forms/Templates 63
Attachment F: Project Budget 68
Attachment G: Streamlined Banking Project Library 69
Attachment H: Streamlined Banking Project Acronyms 70
Attachment I: Project Management Definitions 71
Attachment J: Streamlined Banking Project Test Strategy 76
Revision History
Revision Number / Date / Comment0001 / 10/30/09 / Updated Project Governance Plan
0002 / 11/03/09 / Updated for Planning Phase
1.0 Project Overview
1.1 Executive Summary
The scope of this project will include reviewing and evaluating current SHARE cash management business processes, development and implementation of a strategy to reconfigure the current SHARE System cash management functionality; identification of the functionality of the never configured options within the SHARE modules for impact to cash management and inventorying the state’s reporting needs. The project will support the requirements definition and identification of modifications to the current Cash Management and Treasury processes to achieve efficient cash reconciliation. The scope of this project includes reviewing and revising the current SHARE system cash management reconciliation processes, functionality and state of implementation. It will identify the procedural changes, system configuration changes, and data cleanup necessary to achieve two important goals: 1) improve the success of the automatic reconciliation function now in place, and 2) fully implement a daily book to bank reconciliation process.
The PeopleSoft Cash Management module monitors and forecasts cash requirements, performs automated bank reconciliations, and automatically generates accounting entries. It addresses the planning, processing, and reporting requirements for the state treasury functions. It ensures adequate control and accounting of cash management processes. Cash Management reduces the manual effort of managing exceptions by creating business rules to reconcile and account for bank statement line items automatically; ensures that zero-balance, sweep transfers, and interest income and interest expense are properly reconciled and accounted for each day; reconciles bank statement balances to General Ledger by using book-to-bank reconciliation; and automatically generates the due-to/due-from entries for both inter-unit and intra-unit balancing.
The State needs to be able to reconcile bank statements quickly with high accuracy, few exceptions, and limited resources. Currently the process to reconcile between General Ledger and Cash Management is extremely time consuming and prone to errors. The current business processes need to be reengineered to be more efficient and eliminate all reconciling items. In addition, the State needs to eliminate all reconciling items between SHARE’s bank table and the fiscal agent bank. SHARE’s automated and matching processes between its bank tables and Cash Management module need to be re-evaluated and re-configured. The cash transaction flow through SHARE needs to be reengineered so that it results in the proper accounting for cash.
The project has two major goals:
1. Increase to virtually 100% the success of the automated reconciliation function.
a. Sub-goals are:
i. Establish controls over data input.
ii. Increase the efficiency of automated process to reduce the time needed to reconcile.
2. Fully implement a daily book to bank reconciliation process.
a. Sub-goals are:
i. Establish business processes that prevent reconciling items other than timing differences related to the redemption of warrants.
ii. Test and implement stale-date warrant process.
iii. Test and implement a standard process to void warrants.
The current implementation of SHARE Cash Management does not support efficient reconciliation processes and existing business processes due to configuration problems and the significant number of custom modifications that were made to the system to establish workarounds for problems that should have been solved by proper implementation of system options. Changes are required to reconfigure these processes in order to fix reconciliation issues related to customizations and to implement efficient State business processes. Configuration includes reverting to vanilla objects, replacing ineffective current customizations, and the implementation of delivered functionality not previously configured.
The Streamline Banking Project is a business opportunity to enhance and meet critical needs through the implementation of a comprehensive cash reconciliation automated solution. The immediate opportunities are in the increased efficiency and accuracy of work, the increased professionalism of the products produced, the reassignment of staff to analytical, more value-added work than the current inefficient and inaccurate processes require. The overarching achievement will be an effective, efficient cash reconciliation operation resulting in reengineered business processes and procedures to eliminate reconciling items, improve the cash transaction flow through SHARE so that it results in proper accounting for cash, and an increase of accountability across state government.
The following are the outcomes and deliverables for the project.
· Deliverable: Identify, design, test, and implement procedural and system changes listed in the List of Procedural and Configuration Changes Needed To Ensure the Success of the Daily Automated Reconciliation Process.
o Outcome: The ability to automatically match the bank statement data to the financial registers on a daily basis.
· Deliverable: Design, test, and implement a daily book to bank reconciliation process.
o Outcome: The ability to reconcile the general ledger, to the journals, the journals, to the financial registers, and the registers to the fiscal agent bank statements.
o Outcome: The ability to verify and accurately report financial data.
o Outcome: An audit trail from the bank statements, to the financial registers, to the journals, to the general ledger, to the financial statements.
· Verify reconciliation data from June 30, 2006 through date the project team completes the project.
o Outcome: The ability to provide accurate outstanding information to the stale-dated-warrant process and the reconciliation process.
This project will build upon the existing infrastructure and knowledge base of the State of New Mexico SHARE system by fully implementing the State owned PeopleSoft Cash Management Application Module that will enhance and automate the cash reconciliation process. This will enable the State to implement and follow consistent, controlled, accountable, efficient processes.
The intention is to leverage the existing work done to align the business processes from the SHARE implementation and the internal business, functional and project management knowledge and skills to complete this implementation. We plan to utilize outside contract vendors for the expertise in the system configuration changes and the data cleanup from June 30, 2006 through the completion of this project.
Existing DFA/FCD and STO staff have significant functional experience in the PeopleSoft Cash Management Module that will compliment and complete the required business and functional skills required to complete this project successfully.
DFA envisions and fully supports changes to business processes in order to realize the greatest return on investment in this project.
Goals of the Project
· 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-date warrant process.
· Test and implement a standard process to void warrants.
1.2 funding and sources
Source / Amount / Associated restrictions / ApproversLaws 2009, Chapter 3, Sec. 7 – Data Processing Appropriations includes $935,000 that is “reappropriated to the department of information technology for incremental license fees and to address critical issues with the statewide human resources, accounting and management reporting system”. / $500,000.00 / DoIT has oversight of funds. / Executive Sponsors
Laws 2009, Chapter 3, Sec.7 – Data Processing includes $240,000.00 that is “reappropriated to the department of information technology to configure and correctly implement the statewide human resources, accounting and management reporting system treasury module”. / $240,000.00 / DoIT has oversight of funds. / Executive Sponsors
Severance Tax Bond Proceeds / $500,000.00 / SHARE has oversight of funds. / Executive Sponsors
TOTAL FUNDS / $1,240,000.00
PHASES PLANNED CERTIFICATION DATE AMOUNT
Initiating / October 28, 2009 / $0.00
Planning / October 28, 2009 / $ 410,000.
Implementing / November 18, 2009 / $830,000.
Closing / August 2010 / $0.00
TOTAL / $1,240,000
1.3 constraints
Constraints are factors that restrict the project by scope, resource, or schedule.
Number / Description /1 / System modifications and enhancements must be integrated with other SHARE/PeopleSoft modules without adverse effects.
2 / Long-term approach to implementation plan is necessary to allow for Streamlined Banking required functionality to be achieved on an incremental basis. (i.e. there will be additional phases expanding to include clean-up of prior year data related to the matching process, addressing the handling of voids, re-development of a trial balance report, and solution to the auto-reconciliation problems).
3 / Difficulties in removing unnecessary customizations made to original implementation.
4 / Ability to eliminate duplicate warrant numbers issued by State agencies.
1.4 dependencies
Types include the following and should be associated with each dependency listed.
· M- Mandatory dependencies are dependencies that are inherent to the work being done.
· D- Discretionary dependencies are dependencies defined by the project management team. This may also encompass particular approaches because a specific sequence of activities is preferred, but not mandatory in the project life cycle.
· E-External dependencies are dependencies that involve a relationship between project activities and non-project activities such as purchasing/procurement
Number / Description / Type M,D,E /1 / State establishes the policies and procedures to support the new business processes / e
2 / The ability to expedite the Project Certification process so that the project can accomplish Initiation, Planning and Implementation concurrently for individual pieces of the overall project / m
1.5 ASSUMPTIONS
Assumptions are planning factors that, for planning purposes, will be considered true, real, or certain.
Number / Description /1 / Stakeholder participation and buy-in
2 / Timely decisions from the project team and executive leadership
3 / Project leadership will have adequate time for project planning activities
4 / Project will be appropriately staffed with dedicated resources for phases/scenarios
5 / Appropriate resources from the professional services vendors will be dedicated to the project in order to complete the project within the defined timelines
6 / Changes to match process between bank tables and cash management will have a positive effect on system performance
7 / This project will eliminate any reconciliation items between the bank statements and bank tables
8 / After the completion of this project the only unmatched items will be outstanding warrants
1.6 Project Risks Identified
In this section identify and describe how each risk will be managed. Include the steps that will
be taken to maximize activity that will result in minimizing probability and impact of each risk.
Risk 1
Description - Insufficient funds allocated to support this project. / Probability: Possible / Impact: MediumData cleanup may require more resources than anticipated.
Mitigation Strategy: Contingency funding commitment of Financial Resources beyond those anticipated
Contingency Plan: Worst case, status quo continues; Most likely case, implement a subset of functionality. State may be required to assign personnel to cover gaps in system/tool availability
Risk 2
Description- Lack of sufficient personnel to support the Streamlined Banking effort. / Probability: Possible / Impact: HighSchedules will be delayed, costs may increase and project may not receive the thought and testing required for smooth transition into production/implementation Surprises may occur during the initial go-live period
Mitigation Strategy: Hiring of additional support staff.
Contingency Plan: Identify scope priorities and schedule slippage opportunities. Monitor closely the workload and personnel assignments. Utilize outside resources if budget will accommodate
Risk 3
Description Reliance on outsourced resources to accomplish project goals. / Probability: Expected / Impact: LowOutside consultants bring industry expertise in Treasury functions and best practices. Costs are increased.
Mitigation Strategy: All critical tasks assigned to state personnel. Closely monitor and manage outside contractor teams. Monitor costs closely.
Contingency Plan: Monitor situation closely and utilize all functionality available. Hire contractors for only short term needs.
Risk 4
Description Multi-agency project with different approaches / Probability: Expected / Impact: LowDifferent expectations may complicate the achievement of project goals and objectives.
Mitigation Strategy: Close communication between Executive Sponsors, Steering Committee, and Project Team. Clearly stated project methodology and change definition.
Contingency Plan: Enforcement of statutes to ensure proper accounting for cash. Escalate conflict resolution to higher management levels.
2.0 Project Authority and Organizational Structure
The Project Organization describes the roles and responsibilities of the project team. It also identifies the other organizational groups that are part of the project and graphically depicts the hierarchical configuration of those groups. It exists to clarify interaction with the project team.