State of

State Auditor’s Office

Kristi Racines, CPA Eydie Trautwein, J.D.

State Auditor Deputy State Auditor

December 9, 2020

Senator , Chairman Representative , Chairman c/o Jonathan Sandoval, Legislative Services Office Management Audit Committee Sent via email to [email protected]

In Re: Request for information related to the State Auditor’s Office accounting software

Dear Senator Perkins, Representative Barlow, and members of the Management Audit Committee,

Thank you for your recent letter requesting information about the ’s Office (SAO) accounting software and its potential capabilities.

The SAO operates the uniform accounting systems supported by CGI Technologies. This system supports and is used by all branches of state government (executive, legislative and judicial). The uniform accounting system consists of three major components: WOLFS, HRM, and infoAdvantage®. WOLFS is the financial management component, HRM is the human resource management and payroll component and infoAdvantage is the financial reporting component.

Below are responses to specific questions:

1. Does the accounting software purchased from CGI Technologies and Solutions have the ability to allow for multiple users (cities, counties, special districts, etc.)? Does the State's current version of the accounting software allow for multiple users?

Yes, the accounting software does have the ability to allow for multiple users. For example, currently multiple state agencies (80+) are system users. We have confirmed with the vendor (CGI) that our current version (3.11) allows for multiple entities to leverage the state’s instance of the software. To be clear, the State of Wyoming has never allowed “outside” entities, like cities, counties or special districts, to use the uniform accounting system. The SAO estimates there are approximately 23 counties, 99 municipalities and 650+ of special districts (varying in size and

Herschler Building Telephone: (307)777-7831 4th Floor East Fax: (307)777-6983 122 West 25th Street E-mail: [email protected] Cheyenne, WY 82002 Website: sao.wyo.gov Senator Drew Perkins, Chairman Representative Eric Barlow, Chairman Management Audit Committee December 9, 2020 Page 2

complexity), which could result in the addition of close to 800 new “entities” with even more individual “users.” Each new entity would likely request individual users (at a local level) have access to the system.

We have confirmed with the vendor that the current version 3.11 would be suitable for new entities. However, the vendor reports that it may be worthwhile to wait until after the next system upgrade (4.0) to add additional and different entities. Version 4.0 would be a shorter time-to-value and provide potential greater return on investment given the streamlined user experience and velocity with which the entities could be live, productive, and self-sufficient.

2. Would the State's current accounting software be suitable or accessible for cities, towns, counties, special districts, or other governmental entities? The accounting software may be suitable for other entities, however, the SAO recommends the committee survey cities, towns, counties, special districts and other governmental entities to ensure the state’s system meets their local needs. Essentially, the committee is asking for the SAO to host a common platform for the state and all local governmental entities, which is possible. However, the local entities would need to conform to the state’s general budget structure (biennial budget), budget development process (legal appropriation levels) and chart of accounts (use the state’s “coding” for expenditures and revenues). We would not be able to opine at this time as to whether the system would be suitable (and meet the needs) for all local entities. We anticipate some local entities may not have the time or resources to alter their current processes and may push back on the state if required to adjust budget processes and expenditure and revenue coding. But, the SAO could make the software accessible to local entities. It is important to note that any “customization” to the platform (i.e. changes from the state’s current structure) could be costly.

3. What is the potential for having a common platform across the State, or among similarly complex entities? Could an accounting software be built-up to serve the needs of small entities all the way to the State itself?

Yes, we have confirmed with the vendor that the current version of the software could be re- purposed as the common platform across the state. However, there are significant design elements that will need to be assessed (like the existing chart of accounts and state budget structure) to ensure the system could work for local entities. The vendor provided several examples of existing clients who have leveraged a single instance for a multi-entity model. The vendor is collecting information from these clients and we are happy to provide that information to the committee (ex. California school districts and the State of Michigan).

Yes, the accounting software could be built-up to potentially serve the needs of all entities. However, a transition to a common platform would take legislative changes, time, money and staff resources. We would recommend the committee request a legal review of the current statutes related to local entity budgeting and accounting to inquire what statutes would need to be modified to ensure consistent use of the system1. Once legislative changes are made, the actual costs

1 For example, W.S. 16-4-103 and W.S. 16-4-125 may need to be modified to specify that municipalities and governmental entities submit budgets every two years (instead of one) to better leverage the state’s common platform which was built based on a biennial budget structure. Senator Drew Perkins, Chairman Representative Eric Barlow, Chairman Management Audit Committee December 9, 2020 Page 3

associated with the creation of a common platform would be implementation-related. The state, in collaboration with the vendor, would need to develop a roll-out strategy that includes local entities. The SAO would need additional staff to assist with a roll-out of the approximately 800 new entities and the training of those users (potentially >thousands). The vendor, as mentioned above, recommends potentially waiting until after the next system upgrade which is anticipated to start in September 2021 with a go-live date of July 2022 (tentative). Leveraging a newer version of the software could provide greater benefits and could be more cost-effective.

It is important to note that the information provided above does not include an analysis of the utilization of the state’s payroll functionality (HRM).

In closing, I want to emphasis again that a transition of local government entities to a common platform would require changes to multiple statutes, time, money and staff resources. We would suggest the following potential process be considered if the committee decides to move forward with this project:

1. Review of Wyoming statutes to identify necessary changes needed to accommodate a transition of local governmental entities onto a common financial platform; 2. At a minimum, a survey be conducted (of local governmental entities) to better understand the types of accounting systems currently being used and whether or not the state’s system would meet their needs; 3. The SAO be allowed time to work with the vendor to develop a cost proposal, which would include costs to “customize” the system, the number of additional employees needed to effectively manage a roll-out, trainings and helpdesk for local governmental entities.

We look forward to continuing this conversation.

Sincerely,

Kristi J. Racines, CPA Wyoming State Auditor

Herschler Building Telephone: (307)777-7831 4th Floor East Fax: (307)777-6983 122 West 25th Street E-mail: [email protected] Cheyenne, WY 82002 Website: sao.wyo.gov