CABINET AGENDA

FINANCIAL MANAGEMENT INFORMATION BOARD

FEBRUARY 06, 2001

Contact Person: Martin Young

Contact Telephone Number 850-410-9415

1. APPROVAL OF THE MINUTES OF THE FINANCIAL MANAGEMENT INFORMATION BOARD MEETING OF MARCH 28, 2000. (Attachment A)

(Recommend Approval)

2. REPORT TO THE FINANCIAL MANAGEMENT INFORMATION BOARD ON THE ACTIONS OF THE JANUARY 22, 2001 FLORIDA FINANCIAL MANAGEMENT INFORMATION SYSTEM (FFMIS) COORDINATING COUNCIL MEETING. (Attachment B)

(ITEM # 3 IS TO BE WITHDRAWN)

3. APPROVAL OF AN AMENDMENT TO THE FLORIDA FINANCIAL MANAGEMENT INFORMATION SYSTEM (FFMIS) STRATEGIC PLAN 2001/2002-2005/2006.)

On January 22, 2001 the FFMIS Coordinating Council reviewed and approved a motion relative to the outsourcing of the human resources functions of the Florida Financial Management Information System. A new strategy relative to outsourcing is submitted as an amendment to the FFMIS Strategic Plan approved at the March 28, 2000 Financial Management Information Board meeting.

Proposed FFMIS Strategic Plan Amendment:

Strategy 3.11 (New)

The FFMIS functional owner information subsystems may pursue outsourcing initiatives to replace or enhance the functionality of the FFMIS subsystems whenever they determine that the outsourcing approach is in the best interest of the state and that the outsourcing approach is supported by a business case study. Any such outsourcing initiatives shall be reviewed by the FFMIS Coordinating Council to ensure that the state's financial management data can be exchanged between information systems.

Florida Cabinet

Financial Management Information Board Meeting Minutes

Attachment A

FBM 00-2

March 28, 2000

Tallahassee, Florida

The Financial Management Information Board met this date in Room LL03, New Capitol.

The following members were present:

Honorable Jeb Bush, Governor and Chairman

Honorable Robert Milligan, Comptroller

Honorable Bill Nelson, Treasurer

Mr. Martin Young, Secretary to the Financial Management Information Board (Board).

1. Pursuant to the request of Mr. Martin Young, Secretary to the Board, a motion was made, duly seconded and unanimously adopted, approving the minutes of the March 14, 2000 Financial Management Information Board.
2. Pursuant to the request of Mr. Martin Young, Secretary to the Board, a motion was made, duly seconded and unanimously adopted, approving the revised 2001/2002 through 2005/2006 Fiscal Year Florida Financial Management Information System (FFMIS) Strategic Plan.

Attachment B

Report on the FFMIS Coordinating Council Actions on the Human Resources Outsourcing Initiative (Amended as of 01/31/01)

On January 22, 2001 the FFMIS Coordinating Council heard a presentation from MEVATEC Corporation (the consultant assisting the Department of Management Services) on the human resources outsourcing project. The presentation addressed the scope, approach, and the methodology for the business case analysis for outsourcing human resources and benefits. The baseline scope for the business case analysis includes:

• time, attendance, and leave
• recruitment services
• in-process services
• employee record management
• gross pay calculation
• flexible spending account management
• retirement benefits and
• statewide training (not agency specific training)

At the presentation there was an indication that the payroll production function of the State Comptroller may also be included in the business case analysis. The human resources outsourcing initiative assumes that the Cooperative Personnel Employment Subsystem (COPES) would be replaced. There are thirty executive branch state agencies that use COPES. In addition, COPES also supports the human resources functions for the sixty-seven county health units, the State Courts System and entities provided staff support by the Justice Administrative Commission. COPES does not provide for the human resources functions of the State University System, the Legislature and the Office of the Auditor General.

As part of the process for building the business case analysis state agencies have been surveyed for the "as is" cost elements and full-time equivalents (FTE) for the functions within the baseline scope. The data collection is almost complete. The "as is" agency cost data will be analyzed and used to generate the preliminary business case analysis estimate.

The schedule of major events for the human resources outsourcing initiative is as follows:

• Preliminary business case analysis: February 01, 2001

• Release the invitation to negotiate: March 12, 2001

• Receive proposals from the vendors: May 03, 2001
• Final business case analysis: May and June, 2001
• Finalize contract with vendor: June 28, 2001
• Transition period: October 01, 2001 - June 30, 2002
• Full implementation: July 01, 2002
• Administer contract: Ongoing

A preliminary business case analysis should be completed in the month of February 2001. The final business case analysis will not be completed until May or June 2001. The final business case analysis will include information from the vendor proposals. So long as the final business case analysis shows that the outsourcing proposal makes economic sense, the proposal will be implemented. The Governor's recommended budget for FY 2001-2002 contains proviso language to restore the positions and funding deleted from each agency's budget for the outsourcing of the state personnel and payroll functions provided the agency's personnel and payroll functions are not phased out and performed by a vendor under contract with the state.

After the presentation the FFMIS Coordinating Council had a discussion and answer period on the human resources outsourcing initiative. After the discussion was completed the FFMIS Coordinating Council unanimously approved a motion to allow the human resources outsourcing initiative to proceed with the development of the business case analysis, the other documentation materials and the procurement process that were explained during the presentation on the human resources outsourcing initiative. The FFMIS Coordinating Council will be provided an opportunity to review the business case analysis materials and other proposal documents before execution of a contract with a vendor.