STATE OF CALIFORNIA Budget Change Proposal - Cover Sheet D F - 4 6 ( R E V 08/16)

Fiscal Year 2017-18

Business Unit

0840 Department State Controller's Office

Priority No. 1

Budget Request Name 0840-001-BCP-2017-GB

Program 0 5 0 0 - S T A T E C O N T R O L L E R ' S

OFFICE

Subprogram 0 5 0 0 3 0 0 - P E R S O N N E L P A Y R O L L SERVICES

Budget Request Description California State Payroll System

Budget Request Summary

The State Controller's Office (SCO) requests $2,970,000 one-year l imited-term funding [$1,693,000 General Fund and $1,277,000 Central Services Cost Recovery Fund (CSCRF)] to support 11.0 posit ions in 2017-18 to perform business process re-engineering of human resource management and payroll processing practices, document mid-level solution requirements, and begin the complet ion of the Stage 2 Al ternat ives Analysis of the Department of Technology (COT) Project Approval Lifecycle (PAL).

Requires Legislation

. 1 Yes fSsNo

Code SeGtion(s) to be Added/Amended/Repea led

Does this BCP contain information technology (IT) components? ^ Yes O No

If yes, departmental Chief Information Officer must sign.

Department C IC

Todd Boltjes, Chief Information Systems Division

Date

For IT requests, specify the project number, the most recent project approval document (FSR, SPR, S1BA, S2AA, S3SD, S4PRA), and the approval date.

Project No. Project Approval Document: Date:

If proposal affects another department, does other department concur with proposal? Yes • No Attach comments of affected department, signed and dated by the department director or designee.

Prepared By Date Approved By Date

Chris Male, Project Director

Debra Spel lman, Chief Personnel/Payrol l Services Div.

Department Director Date Reviewed By Date

Tom Yoweli Chief Administrative Cfficer

Larry Norris, Chief Admin and Disb. Division

Department of F inance U s e Only 1

; Additidnal Review: O Capital Outlay • ITCU • FSCU • OSAE • CAlSJARS • Dept. of Technology

; BCP Type: • Policy • •Workload Budget per Government Code 13308.05 .

PPBA OfiglnalS^nedBy: Carta CastaAeda

Date submitted to the Legislature

BCP Fiscal Detail Sheet B C P Title: California State Payroll System - PAL Stage 2

Budget Request Summary

B R Name: 0840-001-BCP-2017-GB

F Y 1 7 C Y B Y BY+1 BY+2 BY+3 BY+4

Salaries and Wages Earnings - Temporary Help 0 727 0 0 0 0

Total Salaries and Wages $0 $727 $0 $0 $0 $0

Total Staff Benefits 0 390 0 0 0 0

Total Personal Services $0 $1,117 $0 $0 $0 $0

Operating Expenses and Equipment 5301 - General Expense 0 22 0 0 0 0 5304 - Communications 0 11 0 0 0 0 5322 - Training 0 11 0 0 0 0 5340 - Consulting and Professional Services - 0 1,496 0 0 0 0

External 0 0 0

5340 - Consulting and Professional Services - 0 269 0 0 0 0 interdepartmental

269 0 0 0 0

5346 - Information Technology 0 44 0 0 0 0 Total Operating Expenses and Equipment $0 $1,853 $0 $0 $0 $0

Total Budget Request $0 $2,970 $0 $0 $0 $0

Fund Summary Fund Source - State Operations

0001 - General Fund 0 1,693 0 0 0 0

9740 - Central Service Cost Recovery Fund 0 1,277 0 0 0 0

Total State Operations Expenditures $0 $2,970 $0 $0 $0 $0

Total All Funds $0 $2,970 $0 $0 $0 $0

Program Summary Program Funding 0500100 - Accounting and Reporting 0 112 0 0 0 0

0500300 - Personnel/Payroll Services 0 2,858 0 0 0 0

9900100 - Administration 0 265 0 0 0 0

9900200 - Administration - Distributed 0 -265 0 0 0 0 Total All Programs $0 $2,970 $0 $0 $0 $0

B C P Title: California State Payroll System - PAL Stage 2 B R Name: 0840-001-BCP-2017-GB

Personal Services Details

4213

4552

5393

Salaries and Wages

Sr Info Sys Analyst (Spec) (Eff. 07-01-^•^-^^ ' 2017)

Payroll Officer (Eff. 07-01-2017) Accounting Administrator I (Spec) (Eff.

07-01-2017) Assoc Govt! Program Analyst (Eff. 07-01-2017)

VROO - Various (Eff. 07-01-2017) Total Salaries and Wages

Staff Benefits 5150900 - Staff Benefits - Other Total Staff Benefits

Total Personal Services

C Y B Y BY+1 BY+2 BY+3 BY+4

0 162 0 0 0 0

0 248 0 0 0 0

0 68 0 0 0 0

0 249 0 0 0 0

0 0 0 0 0 0 $0 $727 $0 $0 $0 $0

0 390 0 0 0 0 $0 $390 $0 $0 $0 $0 $0 $1,117 $0 $0 $0 $0

A n a l y s i s of Problem

A. Budget R e q u e s t S u m m a r y

The State Control ler 's Off ice (SCO) requests $2,970,000 one-year l imited-term funding [$1,693,000 Genera l Fund and $1,277,000 Central Services Cost Recovery Fund (CSCRF) ] to support 11,0 posit ions in 2017-18 to perform business process re-engineer ing of human resource management and payroll processing practices, document mid-level solut ion requi rements, and begin the complet ion of the Stage 2 Al ternat ives Analysis of the Depar tment of Technology (CDT) Project Approval Lifecycle (PAL).

B. Background/His tory

The S C O is responsible for issuing pay to employees of the State civil service, Cal i fornia State University (CSU) and Judicial Counci l . There are currently over 160 depar tments and 23 C S U campuses and the C S U Chancel lor 's Off ice in the State of Cal i fornia. The State workforce is compr ised of approximately 275,000 employees, represented by 21 State civil service bargaining units and 13 C S U bargaining units. Employees are located throughout Cal i fornia and in other states, and range f rom elected officials, managers and supervisors, and higher educat ion faculty, to rank and file workers In a variety of occupat ions.

In 2010, the State Control ler 's Off ice (SCO) hired SAP Public Services, Inc., to develop, test, deliver, and implement the 21st Century Project sys tem (also known as MyCa lPAYS) . Star ted in 2006 by BearingPoint and cont inued by SAP, the project was the largest payroll modernizat ion effort In the nat ion, intended to replace 30-year-old legacy systems and improve staff management processes such as payrol l , benefits administrat ion, and t imekeeping for all state government employees.

In August 2 0 1 1 , the S C O issued a formal cure letter to SAP Public Services and in November 2011 negot iated a new agreement . However, in October 2012, a second formal cure letter was issued to SAP Public Services and in February 2013, the S C O terminated its $90 mill ion implementat ion contract wi th SAP after an unsuccessfu l e ight -month pilot involving 1,500 state employees. In November 2013, the S C O fi led a lawsuit against SAP and SAP later f i led counter-c la ims against SCO. After two and a half years of l i t igation, a June 6, 2016, set t lement agreement resul ted in SAP paying S C O $59 mil l ion and abandon ing Its own claims against S C O in the amount of approximately $23 mil l ion. The $59 mill ion set t lement was distr ibuted to the state's Genera l Fund and special funds, using the same proport ions establ ished to support the 21st Century Project. S C O Is now closing out the 21st Century Project and recently comple ted a Post- Implementat ion Evaluat ion Report (PIER) to the C D T on November 7, 2016.

During the 2016-17 May Revision the S C O was approved authori ty of $2,377,000 in 2016-17, and $2,831,000 in 2017-18 to fund 8.0 posit ions to begin the process of re-start ing the human resource management and payroll sys tem replacement project, using the new PAL processes to identify and analyze alternative solut ions to the MyCa lPAYS sys tem. As part of the approved May Revis ion, the Legislature adopted supplementa l report ing language requir ing S C O to provide more detai l on future assessment activit ies. Please see At tachment I - Assessment Report, for a report that out l ines the proposed assessment activit ies beginning in 2017-18.

Resource History (Dollars in thousands)

Program Budget 2011-12 2012-13 2013-14 2014-15 2015-16

Authorized Expenditures - $2,160 $6,147 $14,779 $15,505

Actual Expenditures - $2,160 $6,147 $14,779 $13,233

Revenues - - - -Authorized Positions - 5,5 9.2 5.0 8.0

Filled Positions - 5.5 9.9 5.0 6.0

Vacancies - 0.0 0.0 0.0 2.0

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A n a l y s i s of Problem

Workload History

Workload Measure 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

N/A - - - - - -

C . s ta te Level Cons idera t ions

Government Code § 12432 (a) st ipulates in part "The Legislature hereby f inds and declares that it is essent ial for the state to replace the current automated human resource/payrol l systems operated by the Control ler to ensure that state employees cont inue to be paid accurately and on t ime and that the state may take advantage of new capabil i t ies and improved business practices." Due to the contract terminat ion and CDT's suspension and SCO's closeout of the project, the state cont inues to rely on its 1970s-era legacy systems and has not achieved the benefits envis ioned of the new system. To develop a comprehens ive approach which satisf ies all stakeholders' concerns, a strategic plan is being developed to move the project forward consider ing the best interests of the state.

Since this project's suspension three years ago, the C D T has adopted the PAL process to improve the quality, value and l ikelihood of success for information technology (IT) projects undertaken by the State of Cal i fornia. The PAL represents an opportunity for SCO's management to assess the full impl icat ions of a proposed IT project. The PAL is also the means of l inking a specif ic IT project to SCO's strategic business plans and IT plans, and to ensure that the proposed project makes the best use of SCO's IT infrastructure. The PAL is intended to ensure projects are undertaken with clear business object ives, accurate costs, and realistic schedules.

In order for a new effort to be approved by the CDT, the S C O must complete all 4 s tages of the PAL including Stage 1 Business Analysis (S1BA), Stage 2 Alternat ives Analysis (S2AA), Stage 3 Solut ion Development (S3SD) and Stage 4 Project Readiness and Approval (S4PRA) , each of which are separated by gates of approval. The SCO will be work ing closely with the C D T as it completes each of the stages in the PAL and will seek cont inued legislative approval through future Budget Requests. By doing so, the S C O will effectively justify its business case and selected alternative to the satisfaction of the CDT.

D. Just i f icat ion

One of the most significant lessons learned f rom prior efforts is that the state's personnel and payroll pract ices are extremely complex and not a lways in al ignment with industry standards, result ing in great difficulty when attempting to identify a modern alternative system. The addit ional resources requested in this proposal will augment the 8.0 exist ing posit ions and cont inue the extensive effort of examin ing these business pract ices and working with SCO divisions. Department of Human Resources (CalHR), Financial Information System for California (FI$Cal), Department of Finance, and departmental human resources offices to determine where the state can conform to industry standards for payroll processing.

The alternatives analysis for this project is a signif icant endeavor and is likely to span the entire 2017-18 f iscal year. It is projected that the S1BA will be completed by April 2017, the S2AA by August 2018, the S3SD by May 2019, and the S4PRA is projected to be completed by December 2019. Project funding is targeted for 2020-21 .

The sec is taking a col laborative approach to examine business practices and is identifying classif icat ions and posit ions within S C O divisions and Ca lHR to accompl ish this objective. Once potential changes are identif ied, these resources will work with a consult ing f irm to engage in business process re-engineer ing and a procurement consultant to assist in the development of the mid-level solut ion requirements needed for the complet ion of the PAL. The state will need to rely on its most skil led and knowledgeable payroll staff to provide the expert ise required to part icipate in business process re-engineering and develop mid-level solut ion requirements. These Subject Matter Experts can provide complete and accurate Information regarding requirements such as: legal, business, funct ional , technical , user, integrat ion, security, and per formance requirements. This effort will in turn support developing new approaches, methods or technologies for the future payroll system.

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A n a l y s i s of Problem

CalHR and the S C O Divisions do not have sufficient resources to do this work, so it is necessary to request addit ional resources that will replace the experts d rawn in order to def ine and document requirements beginning Fiscal Year 2017-18, If these resources are not provided, mandated work load will not be completed, and Ca lHR and the S C O will not be able to provide the payrol l / f inancial integrat ion expert ise to develop the requirements to the proper level of detai l .

The project team is currently composed of 8.0 posit ions that just completed close-out activit ies, and is refocusing Its efforts towards work ing with internal focus groups to identify potential areas of policy change to reflect best pract ices for initial business process re-engineer ing opportuni t ies. This will assist with refining the scope of the future Cali fornia State Payrol l Sys tem (CSPS) project. The SCO and CalHR are work ing together, wi th other s takeholders as necessary, to develop a Statewide Human Resource Information System roadmap. The roadmap will have a central "hub" where many different aspects of human resource management discipl ines, such as recrui tment, can interface. The S C O has several discipl ines that are considered in scope, and subject to business process re-engineer ing as identif ied in this BCP (please see At tachment II for a list of the business discipl ines of wh ich the S C O is the owner) . Whi le other areas of business functionali ty owned by stakeholder depar tments will l ikely interface with or share data e lements with the replacement payroll system, those lines of business are not within the scope of this BCP.

The S C O is request ing resources for 11.0 posit ions in 2017-18 to join the exist ing 8.0 staff to work on the fol lowing project startup activit ies that will dr ive the process of assessing opt ions and designing a new statewide payroll approach. The fol lowing detai ls the posit ions that are necessary in this request:

C a l H R : Through an Interagency Agreemen t wi th CalHR, 2.0 Personnel Program Advisors will provide Human Resources specif ic representat ion and support for CALHR. These staff will provide informat ion for the exist ing procedures and policies under the authority of CalHR, including Labor Relat ions, Benefi ts Administ rat ion, Third Part ies and Unions. In addit ion, they will support activit ies related to an alternative assessment analysis, including deve lopment of business and user requirements.

S C O D iv is ions : Division of Accounting and Reporting (PAR) Resources for 1.0 posit ion will be necessary to provide informat ion for the exist ing procedures and policies, provide direct input to the PAL documentat ion requirements, ensure f iscal oversight compl iance of project requirements, support activit ies related to an alternative assessment analysis, and develop business and user requirements.

Personnel Pay roll Services Division (PPSD) Resources for 8.0 posit ions will be necessary to provide expert ise on the exist ing Legacy HR, Payrol l , and Leave Account ing systems, pract ices and procedures. These staff will be responsible for providing direct input to the PAL documentat ion requi rements, information for the exist ing procedures and policies, including disburs ing State funds; reviewing payrol l documentat ion and maintain ing payment controls, and support ing activit ies related to an alternat ive assessment analysis, including deve lopment of business and user requi rements.

Information Systems Division (ISD) Resources for 2.0 posit ions will be necessary to provide technical expert ise on the exist ing Legacy HR, Payrol l , and Leave Account ing systems. These staff will be responsible for providing direct input to the PAL documentat ion requi rements, performing highly technical and complex dut ies involving the definit ion of per formance, availabil i ty, scalabil i ty, security, maintainabil i ty, accessibi l i ty, deployabi l i ty and extensibi l i ty requirements.

Staff levels have been determined using the work load history, work loads of similar projects and the Ideal Staff ing by Phase and Complexi ty chart publ ished on the Best Pract ices websi te hosted by the Cali fornia Off ice of Sys tems Integrat ion. For addit ional information regarding the work load of the requested posit ions, please see At tachment III - Work load Just i f icat ion.

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A n a l y s i s of Problem

i. O u t c o m e s and Accountabi l i ty

The SCO plans for the resources requested in this BCP to perform business process re-engineering where business processes will be examined, documented, ref ined and potentially changed. The product of these efforts will then be used to develop the mid-level solut ion requirements which is a signif icant component of the S2AA. The SCO expects the outcome of the BCP will result in the documentat ion of all mid-level solut ion requirements and will serve to inform the overall al ternatives analysis phase of this project.

Accountabi l i ty for project resources will be achieved through var ious management processes with updates provided to a diverse populat ion of stakeholders on a regular basis via monthly C D T reports, and execut ive steering commit tee meet ings. To maintain independence and object iveness throughout the durat ion of the project, the SCO has already begun establ ishing a governance structure of active and engaged stakeholders, control agencies, and departments, which thus far includes: SCO, CalHR, Government Operat ions Agency (GovOps), Department of Finance, The California Public Employees ' Ret i rement System (CalPERS), and CDT. The governance structure will address business and technical strategies to cohesively implement future statewide human resource IT solut ions.

Projected Outcomes

Workload Measure 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

N/A - - - - -

F. A n a l y s i s of All Feas ib le Alternat ives

Alternative 1: Provide the SCO with $2,970,000 one-year l imited-term funding ($1,693,000 General Fund and $1,277,000 CSCRF) to support 11.0 posit ions in 2017-18 to perform business process re-engineer ing of human resource management and payroll processing practices, document mid-level solut ion requirements and begin the complet ion of the S2AA of the CDT P A L

P r o s : • Al lows the SCO to conduct the research and prepare the necessary documentat ion to cont inue the

approval process for the payroll system replacement project. • Enables the SCO to cont inue to examine, refine, and potential ly change its business processes. • Al lows the SCO to identify the benefits and risks associated with the alternative solut ions to the

current payroll system. • Utilizes CalHR. DAR, PPSD and ISD's most skil led and knowledgeable payroll staff, with the

expert ise required to participate in business process re-engineering and developing mid-level solutions, ensur ing accuracy of requirements is met.

C o n s : '• • • • Requires one-year l imited-term fund authority. •

Alternative 2: Provide the SCO with $3,827,000 one-year l imited-term funding ($2,181,000 General Fund and $1,646,000 CSCRF) to support 19,0 posit ions in 2017-18 to perform business process re-engineering of human resource management and payroll processing practices, document mid-level solut ion requirements and begin the complet ion of the S2AA of the C D T P A L

Al lows the SCO to conduct the research and prepare the necessary documentat ion to cont inue the approval process for the payroll system replacement project. Enables the SCO to cont inue to examine, refine, and potentially change its business processes. Al lows the S C O to identify the benefits and risks associated with the alternative solut ions to the current payroll system. ^ .

P r o s :

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A n a l y s i s of Problem

• Util izes CalHR, DAR, PPSD and ISD's most skil led and knowledgeable payroll staff, with the expert ise required to part icipate in business process re-engineer ing and developing mid-level solut ions, ensur ing accuracy of requirements is met.

• Supp lements the Project Management team with addit ional staff who will accelerate the deve lopment of requi rements, provide input to PAL documentat ion as wel l as provide a link between business communi ty and informat ion technology.

C o n s :

• Requires addit ional one-year l imited-term fund authority.

Alternative 3: Deny this request

P r o s :

• No increase in funding will be necessary.

C o n s : • Wil l not al low the S C O to seek approval of the payroll sys tem replacement project. • Wil l not al low the S C O to cont inue performing business process re-engineer ing to examine, refine,

and change outdated business processes. • Wil l not al low the S C O to f ind ways to replace the State's exist ing payrol l systems that do not meet

the needs of today 's government . G . Implementat ion P lan Upon approval of this proposal , the S C O will fill the temporary posit ions, al lowing exper ienced staff to engage in the stakeholder focus group sess ions and business process re-engineer ing efforts already underway.

The S C O will then engage with a procurement support vendor to create new, or refine exist ing, mid-level solut ion requirements that will be Included in the S2AA. The S C O will also engage the services of an exper ienced project management f i rm to help manage this extremely complex project. The S C O ant ic ipates submit t ing future budget requests to assist with the complet ion of the PAL process.

Project T ime F r a m e O u t c o m e May 2 0 1 7 - J u n e 2017 Recruit staff

July 2017 Hire staff

July 2 0 1 7 - M a r c h 2018 Perform business process re-engineering.

October 2017 Hire procurement support contractor

January 2018 Hire project management contractor

January 2018 - June 2018 Document mid-level solution requirements

May 2017 -Augus t 2018 Complete the S2AA

H. Supplementa l Information

In addit ion to the S C O standard complement , funding for Consul t ing and Professional Services are included within this request.

Consu l t ing and Pro fess iona l S e r v i c e s - $1,765,000 in 2017-18

Interdepartmental Consulting Services - $269,000 - The S C O will execute an interagency agreement to re imburse Ca lHR costs for two Personnel Program Advisors to support the project. Please see At tachment IV for the letter of concurrence f rom the Director of Ca lHR's des ignee, Mark T. Rodr iguez, Chief of Administrat ive Services Division.

External Consulting Services - $1,496,000 - The S C O will cont inue to contract for business process re-engineer ing services to refine the requirements to conform with agreed changes to exist ing policies and

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A n a l y s i s of Problem

practices ($448,000). The S C O will then engage with an exper ienced project management f irm to help manage the project ($591,000), and with a procurement support vendor to create new, or refine exist ing, mid-level solution requirements, assist with the per formance of a market survey and aid in the deve lopment of a procurement strategy that will be included in the S2AA ($457,000).

Project funding The requested funding is a split 5 7 % General Fund and 4 3 % Central Service Cost Recovery Fund. The funding strategy recognizes that funding sources used for support ing ail s tatewide posit ions should pay for a portion of the project costs. The project funding plan author izes the use of non-general fund and General Fund sources. The non-general fund will be charged through the Pro Rata process.

I. Recommendat ion

Approve Alternative 1 and provide the SCO with $2,970,000 one-year l imited-term funding ($1,693,000 General Fund and $1,277,000 CSCRF) to support 11.0 posit ions in 2017-18 to perform business process re-engineering of human resource management and payroll processing pract ices, document mid-level solut ion requirements and begin the complet ion of the S2AA of the C D T PAL.

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Attachment I Assessment Report

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

As recommended by the Legislative Analyst Office (LAO), the 2 1 C e n t u r y Project's May Revision proposal approved in 2016 included supplemental reporting language. This language specifically requires the State Controller's Office (SCO) to provide the Joint Legislative Budget Committee and the fiscal committees of both houses a report that details proposed assessment activities beginning in 2017-18. This reporting requirement may be satisfied by the submission of a budget change proposal as part of the Governor's 2017-18 Budget to address the 21=' Century Project assessment efforts to refine the scope of a future payroll project.

Supplemental Language Report: "It is the intent of the Legislature to continue funding assessment activities relating to the 21st Century Project to replace the state's human resources and payroll management systems. No later than March 31st, 2017, the State Controller's Office shall provide to the Joint Legislative Budget Committee and the fiscal committees of both houses a report that details the proposed assessment activities beginning in 2017-18. This reporting requirement may be satisfied by the submission of a budget change proposal as part of the Governor's 2017-18 Budget that assesses the issues listed above."

The report shall at minimum detail:

(1) The result of assessments already completed

During the project's suspension, the SCO, Department of Finance (DOF), Department of Technology (CDT), LAO, the Legislature, and others have called for, and recognize the need for several project assessments. In order to develop a comprehensive approach which satisfies all of the stakeholders' concerns, a multi-step assessment was created. The comprehensive assessment included three separate assessments focused on key objectives that are required to develop a strategic plan to move the project forward considering the best interest of the state.

The assessment of the MyCalPAYS system and software has been completed. This initial independent project assessment conducted by Grant Thornton provided an analysis of the MyCalPAYS system software, including information about whether or not requirements were met, a determination of what can be used to complete the project, and an estimate of the cost to do so. This assessment cited proof of the system to be approximately 2/3 configured, with medium leveragability of artifacts, resulting in an overall savings of 1/8 the full project cost, which, when factored into the original project scope, was estimated to be $107-$199 million.

(2) Alternatives to be considered as part of Stage 2 of the Project Approval Lifecycle process before restarting efforts to replace the state's payroll system

Since this project's suspension three years ago, the CDT has adopted the Project Approval Lifecycle (PAL) process to improve the quality, value, and likelihood of success for information technology (IT) projects undertaken by the State of California. The PAL represents an opportunity for SCO's management to assess the full implications of a proposed IT project. The PAL is also the means of linking a specific IT project to SCO's strategic business plans and IT plans, and to ensure that the proposed project makes the best use of SCO's IT infrastructure.

1

Attachment I Assessment Report

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

The PAL is intended to ensure projects are undertaken with clear business objectives, accurate costs, and realistic schedules.

In order for a new effort to be approved by the CDT, the SCO must complete all 4 stages of the PAL (including Stage 1 Business Analysis, Stage 2 Alternatives Analysis, Stage 3 Solution Development, and Stage 4 Project Readiness and Approval) each of which are separated by gates of approval. The SCO will be working closely with the CDT as it completes each of the stages in the PAL, and will seek continued legislative approval through future budget requests. By doing so, the SCO will effectively justify its business case and selected alternative to the satisfaction of the CDT.

As such, the project management assessment and capabilities of the SCO to manage a project of this size are addressed during Stage 1 of the PAL. The alternatives assessment is addressed during Stage 2 of the PAL.

Stage 1 of the PAL specifically addresses the organizational readiness to pursue this initiative and includes an assessment of maturity of the organization as a whole to carry out a project of this magnitude. Stage 1 of the PAL then delves much deeper, and makes assessments of the proposed governance structure, leadership participation, resource capacity, organizational change management and, very important to the success of this project, data management.

The SCO will refine and re-establish an HR and Payroll governance structure, working collaboratively with Government Operations Agency (GovOps), Department of Human Resources (CalHR), CDT, Financial Information System for California (Fi$CAL), California State University (CSU). and various operating departments.

Additionally, as directed by the CDT, the SCO has completed a Post Implementation Evaluation Report (PIER) for the MyCalPAYS project that assesses the overall effectiveness of the project management practices used in this project including whether or not the primary vendor contract was managed appropriately, the extent to which quality control measures were effective, and the extent to which risk and issues were identified and managed appropriately.

The objective of the second assessment was to research and identify alternative solutions to meeting the state's business and legal requirements. This assessment would identify potential solutions along with the benefits and risks associated with their respective implementations. The results of Assessment 2 would provide the means to compare the risks and costs associated with implementing the alternatives with the results of Assessment 1.

Stage 2 Alternatives Analysis is the second of four stages of the PAL and provides a basis for project management, program and business management, executive management, and state-level control agencies to understand and agree on how the proposal's business objectives will be achieved. Market research is conducted in Stage 2 based on the stated objectives as the means to research viable IT solutions (alternatives) available in the open market. Market research provides a process for gathering data on product characteristics, suppliers' capabilities and the business practices that surround them—plus the analysis of that data to define viable solution alternatives and make informed procurement decisions. Stage 2 Alternatives Analysis is used to evaluate alternative solutions to determine which alternative will best meet the business

2

Attachment I Assessment Report

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

objectives, and propose an appropriate acquisition strategy/plan for procuring services if needed based on the alternative selected.

The SCO will:

• Work with its partners, and all other entities, such as Child Welfare Services - New System (CWS-NS) to determine effective use of the "Agile development" methodology.

• Examine short term plans on technology enhancements that represent the best value to SCO, CalHR, and employees.

• Identify and gain consensus with its business partners on Business Process Re-engineering (BPR) opportunities.

• Develop and execute longer term strategy with CalHR for "meet and confer" plan with collective bargaining units to review proposed changes.

• Develop and propose legislation to change any statutes required to execute proposed changes.

Through its established governance structure, the SCO expects to conduct fresh market research to broaden the focus of alternative considerations for a new state wide payroll approach. In light of lessons learned concerning a waterfall development approach to an incredibly complex workforce that the vendor community struggles to comprehend, extremely careful scrutiny of all reasonable approaches should be considered.

Initial alternatives to be explored would include:

• Use an incremental or modular approach through a series of smaller projects.

• Explore different solution for less complex departments versus alternative solution for more complex departments

• Utilize COTS SAP applications as described by Grant Thornton

• Implement other COTS software, e.g., FlSCal's People Soft

• Engage an internal customized system with limited outside help using current technology

• Implement GUI front end face to legacy but keep existing mainframe data base

• Initiate Software as a Service/Outsource

Concerning the alternatives, the report shall address whether:

(1) An independent third party should conduct the alternatives assessment

The SCO Caltfomia State Payroll System 2017-18 Budget Change Proposal includes a funding request for Consulting and Professional Services to contract for procurement services. The procurement support vendor will assist with requirements definition and alternatives analysis assessment.

3

Attachment I Assessment Report

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

(2) The assessment should consider incrementally replacing business processes through a series of smaller projects

The SCO has identified this alternative, as well as others, within the initial alternatives to be explored identified above.

(3) The assessment should consider a decentralized model that integrates less complex payroll departments together and considers alternative approaches for modernizing the payroll systems of complex departments

The SCO has identified this alternative, as well as others within the initial alternatives to be explored identified above. However, initial indicators are that this alternative may involve greater overall funding, complexity, and risk.

(4) Other state departments or agencies should be involved in the project in addition to the State Controller's Office

As stated above, the SCO will refine and re-establish a HR and Payroll governance structure, working collaboratively with GovOps, CalHR, CDT, Fi$CAL, CSU, and various operating Departments. Additionally, the SCO California State Payroll System 2017-18 Budget Change Proposal includes a funding request for positions not only from across the SCO organization, but from CalHR and our operating departments to assist in determining where the State can conform to industry standards in human resource management and payroll processing or othenvise improve existing policies and procedures. These resources will also work on the Stage 2 Alternative Analysis where they will document mid-level solution requirements and then identify and analyze all feasible alternatives for a replacement human resources management and payroll system.

4

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

Attachment II

Business Functionality Owner Position Control SCO Employment History SCO Organizational Structure SCO Timekeeping / Leave Tracking SCO Payroll/Deductions/W2 SCO Financial Services Interfaces SCO Statewide Management Reporting SCO Travel Advance/Reimbursement SCO

Legend: State Controller's Office (SCO)

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

Attachment III Page t of 5

F Y 2016-17 F Y 2017-18

VVorkload Description New Annual Increased Workload/

Task

Annual Hours per

Task

Total Increased

Hours

Number of Positions

New Annual Increased Workload/

Task

Annual Hours per

Task

Total Increased

Hours

Number of Posit ions

P r o j e c t M a n a g e m e n t T e a m Classification: Chief, Information Systems Division (Project Director) - C S P S Major responsibility: The Project Director ensures the overall success of the project, including effectiveness of the project's governance structure, strategic direction, integration wiih departmental goals and objectives, and stakeholder support.

> Provide leadership to the California State Payroll System (CSPS) Project Management team and a variety of project support vendors, and policy direction/development towards the implementation of the new system, which includes the following: Act as the initial escalation point for contractual issues that cannot be resolved by the Project Manager; Chair the CSPS Project's Change Control Board: Ensure the project objectives remain consistent with departmental goals and objectives: In conjunction with the Division Chief, Personnel/Payroll Services Division, provide coordination and oversight of policy decisions affecting the CSPS Project: Ensure transitional planning to the operations/maintenance phase is performed timely.

12 55 660 0.4 12 55 660 0.4

> Oversee arrd monitor the activitiesAasks of trie project team (state and contractor staff) to ensure the project is delivered within the scope, schedule, resource and quality objectives identified in trie CSPS Project Charter, which includes the following: Review mitigation and contingency plans for critical project risks: Provide oversight of project communications to ensure internal and external stakeholder communication needs are met: Approve any changes to project scope that win impact the overall project cost or major project milestones.

12 55 660 0.4 12 55 660 0.4

> Represent the CSPS Project and the SCO with various state agencies, stakeholder meetings, legislative hearings, oversight committees, and in meetings with the SCO Executive Office, which includes the following: Communicate objectives, scope, impacts, milestones, issues, risks, and other information to relevant stakeholders, project team members, SCO Executive Office, and Legislative staff: Provide consultation and strategic advice to executive level managers, and lead strategic discussions with the project's Steering Committee: Present updates on project activities in meetings with SCO Executive Office and key project stakeholders: Provide updates to the State ControBer and/or his/her designee.

12 20 240 0.1 12 20 240 0.1

> Attend high-level staff meetings, which include. Out will not be limited to legislative hearings, tfudget committee meetings, division chief meetings, etc. Maintain effective communication and working relationships with other division chiefs within the SCO; Represent the CSPS Project at departmental meetings. Worttload assumption: Activities and tasks are based upon prior experience providing project management leadership and executive representation tor a complex, medium to large scale project such as the C S P S Project. The Project Director serves as the primary escalation point tor contractual issues, while effectively executing extensive project governance tasks and activities that align with the project's strategic direction. The director is a key figure within objectives to ascertain stakeholder support at every level.

12 20 240 0.1 12 20 240 0.1

Total tileed: Chief, Information System Division (Project Director) - C S P S 48 150 1,800 1.0 48 150 1.800 1.0 Less Existing Positions (from 2015-16 May Revise} 48 150 1,800 10 48 150 1800 10 Total Request: Chief. Information System Division (Project Director) - C S P S - - - - - - - -Classification: CEA B Project Manager - C S P S Major responsibility: Project Manager > Provide leadership to the CSPS Project Management team and a variety of project support vendors, and policy direclion/development towards the implementation of a new HR/Payroll System,

12 60 720 0.4 12 60 720 0.4

>Coordinate and participate in focus group sessions with human resource and payroll executives, subject matter experts and other stakeholders to discuss policies, processes and standards. Oversee and monitor the requirements development and refinement process

12 30 360 0.2 12 30 360 0.2

> Oversee and monitor the activitiesAasks of the project team (state and contractor staff) to ensure project approval documentation and project assessment work is complete and ready for submission to the Department of Technology. > Attend high-level staff meetings, which include, but will not be limited to legislative hearings, budget committee meetings, division chief meetings, etc. Worldoad assumption: Activities and tasks are based upon prior experience providing day to day project management oversight/teadership while serving as a HR/Payroll subject matter expert tor a complex medium to laroe scale project such as the C S P S Project.

12

12

35

25

420

300

0.2

0.2

12

12

35

25

420

300

0.2

0.2

Total Need: CEA B Project Manager-CSPS 48 150 1,800 1.0 48 150 1.800 1.0 Less Existing Positions (from 2015-16 May Revise) 48 150 t.soo 10 48 150 1800 10 Total Request: CEA B Project Manager - C S P S - - - - . . . Classification: Staff Services Manager III . C S P S Major Responsibility: Project planning office management > Manage, organize and direct the preparation of the CSPS Project's approval documentation

defned in the Department of Technology Project Approval Lifecycle (PAL). Participate in focus group sessions with human resource and payroll executives, subject matter experts and other stakeholders to discuss policies, processes and standards. Participate in requirements development and refinement sessions, > Manage, organize and direct budget and facility operations for the project. Direct and oversee

ttte preparation of project control documents, including. Budget Change Proposals and Finance Letters, Manage the preparation of budget projections, contract encumbrances, and cost estimates, tvtonitor expenditures to ensure they do not exceed approved funding levels. Review and approve purchase orders and payments for contractors.

12

12

30

40

960

480

0.5

0.3

12

12

80

40

960

480

0.5

0.3

> Attend project meetings, participate in the risk and issue management process. Review and provide comments on project plans and processes. > Provide oversight and direction in managing project archives, e.g., document retention, archiving and information dissemination. Ensure vendors have access to alt necessary project documentation artifacts. Ensure PPO staff adhere to established processes and quality standards to ensure integrity and confidentiality of project documentation.

12

12

20

10

240

120

0.1

0.1

12

12

20

10

240

120

0.1

0.1

Workload assumption: The scope and complexity of the work will require extensive management overstght with regards to the organization and completion of at! phases of the PAL Star Gate Model, beginning with the Stage 1 Business Analysis and Stage 2 Alternative Analysis

Total Need: Staff Services Manager III - C S P S 48 150 1,800 1.0 48 150 1.800 1.0 L e s s Existing Positions (from 2015-16 May Revise) 48 150 1,800 10 48 150 1,800 10 Total Request: Staff Services Manager III - C S P S - - - - - - - . C S P S Project Management Team Total 144 450 5,400 3.0 144 450 5.400 3.0

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

Attachment III Page 2 of 5

F Y 2016-17 F Y 2017-18

Workload Description New Annual Increased Workload/

Task

Annual Hours per

Task

Total Increased

Hours

Number of Posit ions

New Annual Increased Workload/

Task

Annual Hours per

Task

Total Increased

Hours

Number of Posit ions

T e c h n i c a l T e a m classification: Systems Software Specialist 11 (Technical) - ISD Major responsibility: Performs highly technical and the more complex duties involving the definition of performance, availability, scalability, security, maintainability, accessibility deployability and extensibility requirements. > Provide input to the preparation of project approval documentation defined in the Department

of Technology Project Approval Lifecycle (PAL). Participate in focus group sessions with human resource and payroll executives, subject matter experts and other stakeholders to understand policies, processes and standards.

12 80 960 0.5 12 30 960 0.5

> Work with SCO business and technical staff to develop and refine all performance, avaiiaOility, scalability, security, maintainability, accessibility, deployability and extensibility requirements.

12 40 480 0.3 12 40 480 0.3

> Attend project meetings, participate in the risk and issue management process. Review and provide comments on project plans and processes. Workload assumption: The scope and complexity of the work, along with the expected timeframe, requires a resource tor technical research and documentation, as well as their participation in creating the PAL Stage 2 documents that include solution requirements and alternatives analysis

12 30 360 0.2 12 30 360 0.2

Total Need: Systems Software Specialist II (Technical) - ISD 36 150 1,800 1.0 36 150 1.800 1.0 Less Existing Positions (from 2015-16 May Revise) 150 1,800 1,0 36 150 1,800 1.0 Total Request: Systems Software Specialist II (Technical) - ISD - - - - - . Classification: Senior Information Systems Analyst (Specialist) - ISD Major responsibility: Performs highly technical and complex duties involving the definition of performance, availability, scalability, security, maintainability, accessibility, deployability and extensibility requirements. > Provide input to the preparation of project approval documentation defined in the Department

of Technology Project Approval Lifecycle, Participate in focus group sessions with human resource and payroll executives, subject matter experts and other stakeholders to understand policies, processes and standards.

- - - 24 80 1,920 1.1

> Work with SCO business and technical staff to develop and refine ait performance, availability, scalability, security, maintaihability, accessibility, deployability and extensibility requirements. - - 24 40 960 0.5

> Attend project meetings, participate in the risk and issue management process. Review and provide comments on project plans and processes. Workload assumption: The scope and complexity of the work, along with the expected timeframe, requires a resource tor technical research and documentation, as well as participation in creating the PAL Stage 2 documents that include solution requirements and alternatives analysis.

24 30 720 0.4

Total Need: Senior Information Systems Analyst (Specialist) - ISD - - 72 150 3,600 2.0 Less Existing Positions (from 2015-16 May Revise) - - - - -Total Request: Senior Information Systems Analyst {Specialist) - ISD 72 150 3,600 2.0 Classification: Staff Information Systems Analyst (Specialist) - ISD Major responsibility: Provide general technical expertise and is responsible for technology support.

> Perform system support activities including database administration, application administration, user provisioning and backup and recovery services of the original infrastructure.

12 60 720 0.4 - - -

> Provide input to the preparation of project approval documentation defined in the Department of Technology Project Approval Lifecycle (PAL), Participate in focus group sessbns with human resource and payroll executives, subject matter experts and other stakeholders to understand policies, processes and standards.

- - 12 60 720 0.4

> Work with SCO business and technical staff to develop and refine alt performance, availability, scalability, security, maintainability, accessibility, deployability and extensibility requirements.

12 30 360 0.2 12 30 360 0.2

> Develop work plans and procedures needed to support the project vendors as well as development of technical requirements, including the scope definition, >Provide direct input towards the Department of Technology Project Approval Lifecycle (PAL) requirements specific to the Projects Stage 1, Business Analysis and Stage 2 Alternatives Analysis designed to set clear business objectives and realistic schedules for proposed IT projects. Workload assumption: The scope and complexity of the work, along with the expected timeframe, requires a resource tor technical research and documentation, as well as participation in initially creating the PAL Stage 2 documents that include solution requirements and alternatives analysis.

12

12

20

40

240

480

0.1

0.3

12

12

20

40

240

480

0.1

0.3

Total Need: Staff Information Systems Analyst (Specialist) - ISD 48 150 1,800 1.0 48 150 1,800 1.0 L e s s Existing Positions (from 2015-16 May Revise) 48 150 1,800 f.O 48 150 1,800 f.O Total Request: Staff information Systems Analyst (Specialist) - ISD . . . . . . . C S P S Project Technical Team Total 84 300 3,600 2.0 156 450 7.200 4.0

] - . • . ' - • .r : t:.:t'

S T A T E C O N T R O L L E R ' S O F F I C E Attachment III 2017-18 Budget C h a n g e Proposal P a g e 3 of 5

California State Payroll S y s t e m

Workload Description

F Y 2016-17 F Y 2017-18

Workload Description New Annual Increased Workload/

Task

Annual Hours per

Task

Total Increased

Hours

Number Of Posit ions

New Annual Increased Workload/

Task

Annual Hours per

Task

Total Increased

Hours

Number of Posit ions

B u s i n e s s / A d m i n i s t r a t i v e T e a m s

Position Control; Employment History; Configuration Major responsibility: The incumbent will be responsible for supervising and leading Business Analysts performing journeyperson level work related to documenting and re-engineering business processes, requirements gathering and providing input to Project Approval Lifecycle (PAL). > Plan, organize, iead, and control the work of staff involved in requirements gathering, design.

business processes, requirements gathering and providing input to Project Approval Lifecycle (PAL). > Plan, organize, iead, and control the work of staff involved in requirements gathering, design.

12 60 720 development, test and implementation. 12 60 720 0.4 12 60 720 0.4 > Estatttish priorities and commit resources for project tasks. Meet regularly with Project management to develop project plans (short and long term}, and negotiate changes in scope. 12 20 240 0.1 12 20 240 0.1 resources, or timeframes. > Meet regularly with the fWoject Drector and Project Manager to provide project status and to provide input on and recommendations for project priorities, including change to project scope.

12 30 360 12 30 360 and sensitive policy and legal issues. Develop and make presentations to State administrative 12 30 360 0.2 12 30 360 0.2 staff, varying from working level to high level management. > Negotiate with control agencies tor changes to or for new rules and policies as necessary to accommodate the business functions and processes supported by the new system and to 48 10 480 0.3 48 10 480 0.3 resoNe issues impacting tfie efficiency of the business practices.

Workload assumption: The scope and complexity of the work, along with the expected timeframe, requires dedicated leaders who also have experience in best practices for business analysis and prior experience developing FSR's, Tasks and activities are expected to provide the direction and leadership to execute the completion of the defined PAL Stage Gate Model Phases.

Total rVeed: Staff Services Manager 1 (Business Team Manager - CSPS) 84 120 1,800 1.0 84 120 1,800 1.0 L e s s Existing Positions (from 2015-16 May Revise) 84 120 1,800 1.0 84 120 1,800 f.O Total Request: Staff Services Manager 1 (Business Team Manager - CSPS) - - . - - . . Classification: Staff Services Manager (Spec) (Administrative Support Workload - CSPS) Procurement; Budgets, Contracts; Human Resources; Accounting Major Responsibility: Under the general direction of the Project Manager, C S P S Project, the incumbent is responsible for Procurement, Budgets. Contracts. Human Resources and Accounting functions. > serves as an independent consultant tor an accounting services pertaining to tne C S H S Project. Oversees the estimation of expenditures, reimbursements and revenues, payment of travel expense claims and invoices, year-end accrual, billing of reimbursements to the agencies. 12 60 720 0.4 12 60 720 0.4 special fund assessments: advise management of forecasted expenditures relative to budgeted authority.

> Serves as an independent consultant and principal staff supporting alt budgetary issues for the SCO. Oversees the development, analyses, allocation, and monitoring of the CSPS Project budget. Oversees the preparation of and/or edit BCPs to ensure that each proposal contains proper and sufficient workload justification to support the request. Analyzes BCPs for conformity 12 50 600 0.3 12 50 600 0.3 with the Department's and State's policies and procedures and ensure that all DOF requirements are met. Makes recommendations and provides pertinent information and guidance relative to budgetary concerns of Executive staff on BCPs. Functions as a liaison with the DOF. .* serves as an iiluepeilueiii analyst lespoiisiuie lUi iiie uay-lu-uay cuiiiiaci auiimiisuaiiun aiiu management of the project's consultant services and goods contracts. Works on contract management issues with project management and analytical staff, as well as controt agencies and departments. Provide Project Management with project status reprrrts and recommendations 12 30 360 0.2 12 30 360 0.2 changes to rules and poScies related to contract management. Functions as a liaison befween the Project, Departmental Accounting and Budget Staff in regards to contract budget and funding issues.

> Performs as tfie Personnel Liaison to the CSPS Project Staff. Assists supervisors and managers with personnel actions; initiate and review for completeness and accuracy Action Request Forms, duty statements, job opportunity bultetins, organization chads, and other personnel documentation related to hires, transfers, promotions, separations, and other

20 100 20 too personnel transactions to be processed by the department's Human Respurce Office. Route 20 5 100 0.1 20 5 too 0.1 Notice of Personnel Actions, probationary repods, individual Development Plans, and other documents to the appropriate staff for signature. Work with the Human Resources Office to help determine employee eligibitity for promotional examinations, classification transfers, and benefts. Research relevant laws, rules, procedures, bargaining unit contracts, etc. workload assumption: i ne scope and complexity oi me worx. along wim me expected timeframe, requires a dedicated specialist who has experience in project planning, procurement. budgets, and Human Resources. The position will manage these activities for a project of medium to high complexity

Total Need: Staff Services Manager (Spec) (Administrative Support Workload - CSPS) 56 145 1,780 1.0 56 145 1,780 1.0 L e s s Existing Positions (from 2015-16 May Revise) 56 145 1,780 1.0 56 145 1,780 1.0 Total Request: Staff Services Manager (Spec) (Administrative Support Workload - CSPS) - . Classificatidn: Accounting Administrator 1 - OAR Major responsiDility: provide tiscal Accounting specilic representation and support tor Statewide Division of Accounting and Reporting (DAR). Provide information for the existing procedures and policies under the authority of DAR. including ensuring fiscal oversight compliance of project requirements. Support activities related to an alternative assessment analysis, including development of business and user requirements. > Padicipate in external focus group sessions to pursue payroll accounting process standardization and simpiifcation. Provide control organization input and direction to these sessions. > Represent the Project as an exped consultant at meetings and briefings with the Accounting user community regarding sensitive policy and legal issues. > Develop work plans and procedures for Ihe retrieval of documents and adifacts necessary to suppod development of project requirements, including the scope definition, > Provide direct input towards the Depadment at Technology Project Approval utecycle (PAL) requirements specific to the Projects Stage 1, Business Analysis and Stage 2 Alternatives Analysis designed to set dear business objectives and realistic scbiedules for proposed IT projects workload assumption: I ne scope ana complexity ot tne work along wim me expecteo timeframe requires a resource to represent statewide fiscal accounting policy research and documentation, to effectively participate in creating the PAL Stage 2 documents that include solution requirements and allernatives analysis

- - - -

24

12

12

12

35

20

20

40

840

240

240

480

0.5

0.1

0.1

0.3

Total Need: Accounting Administrator 1 - DAR - - - - 60 115 1,800 1.0 L e s s Existing Positions (from 2015-16 May Revise) -Total Request: Accounting Administrator] - DAR - - - - 60 115 1.800 1.0

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroii System

Attachment iii Page 4 of 5

Workload Description

F Y 2016-17 F Y 2017-18

Workload Description New Annual . , . .

Annual Total i . * Increased ,, , . Number of . . . . . ^, Hours per ncreased _ _ Workload/ ^ , , . Posit ions

_ , Task Hours Task

New Annual „ , ^ ^ , increased . Number of workload/ " ^ " ^ ^ P ' * ^ '''Z Posit ions

Task ^^^"^

Classification: Payroll Officer - PPSD Major responsibility: Provide payroll specific representation and support for the Personnel and Payroll Services Division (PPSD). Provide information for the existing procedures and policies under the authority of PPSD, including disbursing State funds; reviewing payroll documentation and maintaining payment controls. Support activities related to an alternative assessment analysis, including development ot business and user requirements. > Participate in external focus group sessions to pursue payroll process standardization and

simplification. Provide control organization input and direction to these sessions. > Represent the Project as an expert consultant at meetings and txiefings with the HR user community regarding sensitive policy and legal issues. > Develop work plans and procedures for the retrieval of documents and artifacts necessary to support development of project requtements, including the scope definition. >Provide direct input towards the Department ot iechnoiogy Project Approval Utecycle (PAL) requirements specific to the Projects Stage 1, Business Analysis and Stage 2 Alternatives Analysis designed to set clear business objectives and realistic schedules for proposed IT projects. worKloaa assumption: i ne scope ana complexity oi tne worK, along witn tne expected timeframe, requires resources under the authority of PPSD with legacy system expertise to evaluate supporting operational documentation, as well as participate in initially creating the PAL Stage 2 documents that include solution requirements and alternatives analysis.

-

- - - 96

48

43

43

30

25

20

45

2,380

1,200

960

2.160

1.6

0.7

0.5

1.2

Total Need: Payroll Officer - PPSD - - - 240 120 7,200 4.0 Less Existing Positions (from 2015-16 May Revise) -Total Request; Payroll Officer - PPSD - - - - 240 120 7,200 4.0 Classification: Associate Governmental Program Analyst (Business Analyst - CSPS)

Major responsibility: Under the general direction of the Staff Services tvlanager 1 (Business Team Manager), C S P S Project, the incumbent will be responsible for requirements gathering and provides a strong link between the business community and information technology. They assess business models and their integration with technology.

> Perform the more complex typical system development life cycle tasks including gathering business requirement from stakeholders, business process reengineering, fit/gap analysis, design and implementation of the new HR/Payroll System. Work with Information Technology staff during the system development life cycle. Devetop the more difficult acceptance testing plans and cases, and conduct user acceptance testing. Maintain and monitor the systems to ensure accuracy. Analyze the more complex laws or policy changes to determine their impact on business requirements and rules and present these findings to management. Provide direct input towards the Department of Technology Project Approval Lifecycle (PAL) requirements specific to the Projects Stage 1, Business Analysis and Stage 2 Alternatives Analysis designed to set clear business objectives and realistic schedules for proposed IT projects. > Work with departments and control agencies to determine needs, gather information and negotiate agreements. Identify the more complex issues, develop alternative solutions and make recommendations. Develop and make presentations to small groups. > Meet with various State officials to negotiate law. rules, and policy changes, advise of changes, and handle sensitive problems.

> Represent the Slate Controller's Office on various complex functional focus groups, task forces comprised of departmental, control agency, campus and labor union representatives. worxioao assumpiion: i ne scope ana complexity or me worx aiong wiin ine expeciea timeframe, requires resources with end user business expertise and significant project experience working with information technology staff, to effectively organize and participate in initially creating the PAL Stage 2 documents that include solution requirements and alternatives analysis.

12

12

12

12

60

60

20

10

720

720

240

120

0.4

0.4

0.1

0.1

12

12

12

12

60

60

20

10

720

720

240

120

0.4

0.4

0.1

0.1

Total Need: Associate Governmental Program Analyst (Business Analyst - CSPS) 48 150 1,800 1.0 48.0 150.0 1,800.0 1.0 Less Existing Positions (from 2015-16 May Revise) 48 150 1,800 1.0 48 150 1,800 1.0 Total Request: Associate Governmental Program Analyst (Business Analyst - CSPS) - - - - - . Classification: Associate Governmental Program Analyst (Business Analyst - PPSD) Major responsibility: Krovide payroll specific representation and support tor tne P M b U . Hrovide information for the existing procedures and policies under the authority of PPSD, including disbursing State funds; reviewing payroll documentation and maintaining payment controls. Support activities related to an alternative assessment analysis, including development of business and user requirements. > Participate in external focus group sessions to pursue payroll process standardization and

simplification. Provide control organization input and direction to these sessions. > Represent the Project as an expert consultant at meetings and briefings with the HR user community regarding sensitive policy and legal issues. > Develop work plans and procedures for the retrieval of documents and artifacts necessary to suppod development of project requirements, including the scope definition. >Provide direct input towards the Department ot Technology Project Approval Utecycle (PAL) requirements specific to the Projects Stage 1. Business Analysis and Stage 2 Alternatives Analysis designed to set clear business objectives and realistic schedules for proposed IT projects. Workload assumption: The scope and complexity of the work, along with the expected timeframe, requires resources under the authority of PPSD with legacy system expertise to evaluate supporting program documentation, to effectively participate in creating the initial PAL Stage 2 documents that include solution requirements and alternatives analysis.

•

-

-

-

96

48

48

48

30

25

20

45

2,880

1.200

960

2,160

1.6

0.7

0.5

1.2

Total Need: Associate Governmental Program Analyst (Business Analyst - PPSD) - - - 240.0 120.0 7,200.0 4.0 Less Existing Positions (from 2015-16 May Revise) . Total Request: Associate Governmental Program Analyst (Business Analyst - PPSD) - - - 240 120 7,200 4.0 C S P S Project Business/Administrative Team Total 188 415 5,380 1 3.0 728 770 21.580 12.0

TOTAL - C S P S Project 416 1,165 14.380 8.0 1,028 1,670 34,180 19.0 Less Existing 2016-17 May Revision Approved Resources 416 / , /65 14.380 8.0 416 r , j65 14.380 8 0 Total CSPS Project 2017-18 Budget Change Proposal Request - - - 012 505 19,300 11.0

STATE CONTROLLER'S OFFICE 2017-18 Budget Change Proposal

California State Payroll System

Attachment III Page 5 of 5

Workload Description

F Y 2016-17 F Y 2017-18

Workload Description New Annual . , , ,

Annual Total -Increased , Number of . . . . .., Hours per Increased „ ... Workload/ , . . Posi t ions

... , Task Hours Task

New Annual . , ^ , Annual Total .. . .

Increased ., , . Number of . . . . . ... Hours per ncreased ... Workload/ ^ .'̂ Posit ions

_ , Task Hours Task

C a l H R l A A Classification: Personnel Program Advisor Major responsibility: Provide Human Resources specific representation and support for CALHR. Provide information for the existing procedures and policies under the authonty of CalHR, including Labor Relations, Benefits Administration, Third Parties and Unions. Support activities related to an alternative assessment analysis, including development of business and user requirements. > Participate in external focus group sessions to pursue HR process standardization and

simplification Provide control organization input and direction to ttiese sessions. > Represent ttie Project as an expert consultant at meetings and briefings with ttte HR user community regarding sensitive policy and legal issues. > Devetop work plans and procedures for trie retrieval of documents and artifacts necessary to support development of project requirements, including the scope defnition >Provide direct input towards tne Department of Technology Project Approval Ufecyde (PAL) requirements specific to the Projects Stage 1. Business Analysis and Stage 2 Allernatives Analysis designed to set dear business otrjectives and realistic schedules for proposed IT Pfoiects. Workload assumption: The scope and complexity of the vrork. along with the expected timeframe, requires resources under the authority of the CalHR with policies and procedures expertise, to effectively evaluate supporting operational documentation, as well as participate in initially creating the PAL Stage 2 documents that include solution requirements and alternatives analysis.

- -

-

48

24

24

24

30

25

20

45

1.440

600

480

1,080

0.8

0.3

0.3

0.8

Total Need; Personnel Program Advisor - - - - 120 120 3,600 2.0 L e s s Existing Positions (from 2015-16 May Revise) -Total Request: Personnel Program Advisor - - - 120 120 3,600 2.0 CalHR lAA Total - 120 120 3.600 2.0

Attachment IV

Administrative Services Division 'iSib SSt rpe; , txiorrii Bui ld ing, Sui t* 500

Sac ia inento, CA 9 5 S U ( 9 i 6 i 322-0790 fax (915) 327-056S

August 23, 2016

Dennis Duarte, Project Manager State Controller's Office 2 1 ' ' Century Project 300 Capitol Mall - 8"' Floor Sacramento, CA 95814

Re: 2 1 " Century Project

Dear Mr Duarte:

The State Controller's Office (SCO) will submit an annual Budget Change Proposal (BCP) starting in fiscal year 2017-18 that will provide the Department of Human Resources (CalHR) with iimited-term funding for two (2) positions designated to support the SCO's continued efforts to implement a modern Human Resources Management System (HRMS) and Payroii System. CalHR fully supports this proposed concept.

CalHR's statewide responsibility for Ca/ifornia's civil service human resources (HR) programs, Labor Relations (LR) and workforce data reporting requirements necessitates Its involvement in SCO's efforts to develop and Implement the state s new HRMS/Payroll system. CalHR staff, as members of the 2 1 " Century Project, will work in close partnership with SCO to ensure the new system not only appropriately applies requirements set by laws, regulations and bargaining agreements, but also effectively supports statewide HR and LR programs' business policies, practices and processes.

The positions will be involved in business process engineering and independent assessment work activities, Including: business process mapping and process flow documentation: assessment and analysis of state business requirements: research and analysis of legal authorities, policies and practices; identification of opportunities to standardize, streamline or re-engineer business processes or practices; collaboration on the development of proposals, plans, and strategies to affect viable changes to business processes and practices; development of legislative and regulatory proposals and policy directives and memoranda; and provide staff support for HR and LR matters linked to business practice or policy change

Governor tc'rnu.nd G B:owi - a

Secretary, Government Operat ions Agency M a ; / tc ; ' Sa i je ;

Director R c h a t p Gi i i inan

Dennis Duarte August 23, 2016 Page 2

The CalHR team includes two (2) Personnel Program Advisors More detail about these positions is contained in the table below.

Salary R a n g e $6,453 $7,331 Personnel

Program Advisor Total Salar ies and W a g e s

Posi t ions 2

$165,000

Staff Benefits Detail OASDI $13,000 Health/DentalA/ision Insurance $19,000 Retirement Miscellaneous S41,000| Safety •

Industrial Other: Workers' $2,000 Compensation Industrial Disability Leave $0 Non-Industrial Disability Leave $0 Unemployment . $0 Insurance Other: $10,000 Total Staff Salary & Benefits $250,000 O E & E $14,000 Total Staff Salary, Benef i ts , and O E & E $264,000

~ Approved Staff Benefit

Rate

7.966% 11.475%

25.150%

1.010%^

0.025% 0.065% 0.052%

3Mm

* The dollar amounts in this document were captured prior to the new Staff Benefit and Standard Comp. rates. The new total for Staff Salary, Benefits, and OE&E is $269,000.

Dennis Duarte August 23. 2016 Page 3

The table below describes the workload justification for the two positions

Classification: Personnel Program Advisor

Major responsibility: Provide Human Resources specific representation and support for CalHR. Provide information for the existing procedures and policies under the authority of CalHR. including Labor Relations and Benefits Administration. Support activities related to an alternative assessment analysis, including development of business and user requirements

> Participate in external focus group sessions to pursue HR process standardization and simplification. Provide control organization input and direction to these sessions

> Represent the project as an expert consultant at meetings and briefings with the HR user community regarding sensitive policy.

> Develop work plans and procedures for the retrieval of documents and artifacts necessary to support development of project requirements, including the scope definition.

>Provide direct input towards the Department of Technology Project Approval Lifecycle (PAL) requirements specific to the Project's Stage 1, Business Analysis and Stage 2 Alternatives Analysis designed to set clear business objectives and realistic schedules for proposed IT projects.

TOTAL Personnel Program Advisor

F Y 2017/18

48

24

30 1,440 0.8

25 600 0.3

24

24

20 480 0.3

45 1 ,080 ' 0.6

120 120 3,600 2.0

Sincerely, ,- 7

;/:/A V

MarkT Rodriguez, Chief Administrative Services Division