Overview wi at is SIGMA? Statewide Integrated Governmental Management Applications + Project SIGMA is a business process transformation project implementing new software as the State of Michigan's Enterprise Resource Planning (ERP) solution. « SIGMA integrates disparate State systems and provides end-to-end support for accounting, procurement, and employee timekeeping functions. « It replaced over 60 systems in state government operations, including 24-year old enterprise systems like MAIN and DCDS and numerous agency specific systems. * SIGMA includes approximately 200 unique document types and over 250 enterprise reports in addition to automation of the State's Comprehensive Annual Financial Report and public Transparency Portal ‘estrmaion Wl ciean verted* Accounting and Financial Management ‘SIGMA replaces the Michigan Administrative Information Network (MAIN), which is comprised of four distinct enterprise components: R*STARS, AdPICS, RMDS, and MIDB. MAIN was implemented in the State in 1994 for all State of Michigan accounting, financial management, and financial reporting functions. + Employee Timekeeping ‘SIGMA replaces DCDS for employee time and attendance, leave and overtime requests, labor distribution, and employee expense reimbursement functions. SIGMA will include web-enabled direct entry of time and expense information by all state employees with online approvals by state supervisors and managers, = Procurement SIGMA replaces Buy4Michigan for the State's procurement functions and provides a fully integrated procure-to-pay system supporting over 100,000 vendors that do business with the State. SIGMA Procurement will also be used by local units of government to support select procurement functions for local government operations. onc — tater A en er ‘SIGMA contains extensive configurations, processes, and technical components that require ‘ongoing support, testing, and management. ‘These include: + Over 5,000 requirements + Over 200 documentation deliverables * Over 500 configuration tables * Over 56,000 configured Chart of Account elements, Over 300 interfaces ‘More than 250 enterprise reports + Approximately 46 Training courses including classroom (instructor-led), computer based training, and self- ‘study components. + Over 5,000 test cases (SUgACHn Keak) — 710K UST + Over 20 unique conversion programs + Over 190 Document Codes. * Over 200 security roles and over 200 workflow approval paths +, Expanding, with department configurations, to approximately 20,000 configurations reoxcjscn ——————— nn Terman Zadar PervertedUsers ‘Approximately 6,000 core users (expected to grow overtime) ‘+ More than 40,000 employee users * Over 100,000 Vendors + Colleges and Universities (Capital Outlay Budget Requests) + Local Units of Government (Procurement functions) rnogjcn Government Operations? = SIGMA will enhance the work of approximately 6,000 core application users in a system that addresses over 5,000 State of Michigan requirements ' SIGMA will be the backbone of state goverment operations supporting the delivery of state ‘government services. In addition to the enterprise-wide systems replaced by SIGMA, SIGMA delivers new functions at an enterprise level in a standardized manner. These include: + Extensive cost accounting and cost allocation functions to address project and grant accounting needs, increase automation of complex accounting functions, and enable improved transparency reporting deta. ‘These functions are configured to address over 10,000 individual projets and gran statewide. + Grant lifecycle management, which includes integration with federal grant opportunity information, enabling the State to pursue grant opportunities in an automated manner. I also enables online State grant offerings allowing local units of government and service agencies fo pursue opportunities fo collaborate wth the State in {an efclont manner + Asset and inventory management functions that are integrated wth procurement, cost accounting, nd financial reporting. + Performance budgeting, which was implemented in August 2016 and has additional financial integration functionality, being implemented in July 2017. In addition to direct use by the State, Stale of Michigan «Colleges and Universities use SIGMA Budget directly to address capital outlay requests. ga eer ‘eotamaten len intsa Government Operations? * By standardizing processes and systems, we have ensured the state will be able to seamlessly adapt to a changing environment while reducing long-term costs. * By reengineering processes to meet the solution’s best practices we have certainty regarding the long-term stability of the system and the associated costs, ' Standardization of the data improves the ability for the State to be responsive to an ever- changing environment: + Employees can transition seamlessly when organizational changes occur, + Impacts of new and different reporting needs can be addressed quickly, and + Requests for information from constituents, lawmakers, and businesses can be addressed more efficiently and effectively. rons — taatrmation Wb cena tiveted ie State a jer Governmenta \d for Services? + The operational efficiencies produced by SIGMA will enable an increased focus on mission critical business and program functions of the departments — providing improved services to the citizens of ‘our State. These efficiencies include: + Less manual, paper-intensive tasks + Elimination of redundant data entry + Less reconciliation needs across systems + Greatly improved reporting and data analysis capabilities + Simple and automated tracking and approvals, + Reduced training time for new hires frock, —______ rentitan Hs sosint ir Governmental ‘Services? Cont'd * Streamlined business processes that work similarly across departments enable improved data consistency and reporting internally and improved access to information for businesses interacting with the State (the State's vendor community), economic developers, and constituents * Local units of government will be able to leverage SIGMA to support critical functions surrounding procurement and they are also able to leverage the same software and collaborate with the State on standardized solutions, like two counties and one city in Michigan are already doing, * Colleges and Universities began using SIGMA Budget directly for Capital Outlay requests with the Fiscal Year 2018 Budget Development cycle and will continue to do so for years to come. Collaboration across federal, state, and local units of government is improved through integrated, online functions such as grant lifecycle management. SSS — vansomaton esiganreoerted = Major Successes: = SIGMA went live, statewide, with all functionality on time, under budget, and without customization to the core software. = SIGMA accomplished all of the project objectives including standardization of processes and data statewide. = Agency success rates for document processing are phenomenal. = Employee time and attendance processing is running smoothly with fewer default timesheets created than were historically needed in the legacy system (DCDS) racy —— — —_________ rattan seesee = Challenges: * SIGMA experienced significant performance issues with the self-service components of the application the first week it was used for payroll processing (the week of 10/16). Those issues were fully resolved # As agencies continue to learn how to effectively use the new system, occasional processing delays occur and/or data corrections are needed. = Minor problems with the batch cycle have occurred — all have been resolved without. impact to the users and/or payees. None have resulted in increased costs to the State. ificant * Issues with employee travel and expense functionality have occurred in production including technical issues and some software defects. Most of these have been resolved. Final resolution of technical (architectural) issues that result in usability challenges were moved to production in December 2017. ‘anteration Migr reeves ‘+ Over 226 SIGMA Business Inteligence Reports available in production FIN = Over 2.4 milion payments totaling almost $18.4 blion issued through 1/17/18, + Aware of concerns regarding backlog in vendor payment processing (expenditure and revenue refunds); outreach activities scheduled and underway. ~ SIGMA Collections, to date + 6,677 payments processed offsets through SIGMA/Treasury integration totaling $4.8 milion in collections + TEL ~ Timekeeping continuing to result in fewer default timesheets than historical averages. Most recent cycle: 64 default timesheets generated, statewide compared to 400 to 600 which was typical for DCDS. ~ Expense reimbursement processing for most recent two pay periods similar to historical averages and backlog (older in progress documents) down substantially ~ With functions relatively stable, able to increase focus on best practice process recommendations and streamlining opportunities. DHHS Quarterly Cost Allocation running this week (additional details covered separately) + Interface results continue to be highly successful. 99.8% of 1.4 million interfaced documents are in final ‘raatrmation WA igen eevented us. 0 Sa —