Budget Change Proposal - Cover Sheet - CA.gov
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STATE OF CALIFORNIA Budget Change Proposal - Cover Sheet DF-46 (REV 09/19) Budget Change Proposal - Cover Sheet Fiscal Year: 2020-21 Business Unit: 4300 Department: Developmental Services Priority Number: 2 Budget Request Name: 4300-002-BCP-2020-GB Program: 4149001 – Program Administration Subprogram: Click or tap here to enter text. Budget Request Description: Uniform Fiscal System Modernization Budget Request Summary: The Department of Developmental Services (Department) requests $1.4 million ($1.3 million General Fund [GF]) in 2020-21 and $1.6 million ($1.5 million GF) in 2021-22 to plan for the replacement of the Uniform Fiscal Systems (UFS). The requested resources will allow the Department to move through the State’s required California Department of Technology (CDT) Project Approval Lifecycle (PAL) in preparation for the project. Requires Legislation: ☐ Yes ☒ No Code Section(s) to be Added/Amended/Repealed: Click or tap here to enter text. Does this BCP contain information technology (IT) components? ☒ Yes ☐ No If yes, departmental Chief Information Officer must sign. Department CIO Name: Mike Sakamoto, Deputy Director Department CIO Signature: Signed On Date: Click or tap here to enter text.
For IT requests, specify the project number, the most recent project approval document
(FSR, SPR, S1BA, S2AA, S3SD, S4PRA), and the approval date.
Project Number: 4300-061
Project Approval Document: S1BA
Approval Date: October 17, 2019
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: Mike Sakamoto
Date: Click or tap here to enter text.
Reviewed By: John Doyle
Date: Click or tap here to enter text.
Department Director: Nancy Bargmann
Date: Click or tap here to enter text.
Agency Secretary: Mark Ghaly MD, MPH
Date: Click or tap here to enter text.
Department of Finance Use Only
Additional Reviews: Capital Outlay:☐ ITCU:☒ FSCU:☐ OSAE:☐
Department of Technology:☐
PPBA: Brent Houser
Date submitted to the Legislature: January 10, 2020A. Budget Request Summary The Department requests $1.4 million ($1.3 million GF) in 2020-21 and $1.6 million ($1.5 million GF) in 2021-22, to complete the CDT PAL and plan for the replacement of the UFS used by the Department and 21 regional centers (RC). This request includes funding to hire one (1.0) IT Specialist II (ITS II), one (1.0) IT Specialist I (ITS I) on a two-year limited-term basis, and acquire consultant resources to support planning for the RC UFS replacement project. The objective is to replace the RC’s UFS application. UFS is a complex legacy accounting system, developed in 1984, that tracks: a) operational expenses and service provider authorizations and claims, b) state funding, and c) consumer financial benefits. The mission-critical UFS environment requires a high degree of specialized technical knowledge and skills that are required for this effort to be successful. B. Background/History The Department administers the Lanterman Act, ensuring that individuals with intellectual and developmental disabilities have access to the services and supports needed to lead more independent and productive lives. The RCs are nonprofit, private entities that contract with the Department to provide and coordinate the services and supports for individuals with developmental disabilities. There are 21 RCs across California and they currently serve over 350,000 individuals. The RCs are located throughout the State based on population density and individuals are served by the RC in their geographic area. The RCs act as the local entry point for consumers entering into the developmental services system. Individuals who apply for services at RCs are evaluated for eligibility. The RCs assist eligible consumers in developing their Individual Program Plan (IPP) to determine the necessary services for achieving their personal goals. The RCs are responsible for providing an array of services including: outreach, intake, diagnosis/assessment, preventative services, placement, individual program planning, advocacy, monitoring/evaluation, case management, and other services as required to achieve objectives in the consumer’s IPP. A primary function of these centers is the purchase of services for consumers from approved service providers or other publicly funded agencies. As indicated in the Lanterman Act section 4631, the 21 RCs must all use a uniform accounting system to ensure continuity and standardization of accounting processes. In 1984, UFS was implemented at each RC and the Department’s headquarters office. UFS is an extremely complex legacy accounting system that has been modified to meet RC’s business needs, which include: the turn-around invoice (TAI); the Self- Determination program; the Intermediate Care Facility State Plan Amendment (ICF-SPA) program; operating expenses and expenditure tracking; service provider
purchases of services authorizations and claims; and consumer financial benefits management. UFS interfaces with each RC’s case management system and eBilling, an online billing software used by community vendors to complete and submit invoices for services provided to consumers. UFS contains more than 2,948 programs and 736,341 lines of code. Additional modifications have been made to accommodate unique RC business process; federal funding billing rules; and new business programs. Data from UFS is transmitted monthly to the Department where it is used for program monitoring, legislative reporting, and federal reimbursement billing. The Community Services Program (CSP) acts as a liaison to the RCs, setting purchase of services policies, monitoring community programs and RC performance. The Federal Programs Division (Federal Programs) oversees and ensures compliance with reporting to the Centers for Medicare & Medicaid Services (CMS) for waiver and SPA. Activities include monitoring RC enrollments and performance in federally funding programs. UFS data is utilized to ensure compliance with federal programs requirements, monitor purchases of services, and improve program administration. Federal funding reimbursements recover approximately $3.0 billion dollars annually. UFS data is used to complete critical budgeting and estimating activities, ensuring the correct amount of funding is allocated to each RC contract. The Department, RCs, and the Association of Regional Center Agencies (ARCA) shall work collaboratively to develop requirements and evaluation criteria for the new information technology systems. UFS is a mission critical accounting application, used for consumer purchase of services authorizations, tracking, and maintenance. The legacy system is unable to accommodate the RC’s growing needs, including increasingly varied consumer populations, multiple services delivery models, new program regulations, and additional program monitoring requirements. In addition, UFS is not able to interface with other billing systems, which creates laborious invoicing processes for vendors, contributing to delayed payments and a diminishing pool of available services providers. Failure to begin planning for the UFS replacement project risks the Department’s ability to ensure the continuous delivery of services for consumers, which are mandated through the Lanterman Act. Without a modern solution, the 21 RCs will continue to struggle with inflexible technology that forces manual workaround processes, needlessly increasing workloads for their overextended staff and affecting the quality of services available to consumers.
Resource History
Dollars in thousands
Program Budget 2014-15 2015-16 2016-17 2017-18 2018-19
Authorized Expenditures $4,556 $4,641 $4,791 $5,608 $5,718
Actual Expenditures $4,038 $4,330 $4,901 $5,180 $5,699
Revenues N/A N/A N/A N/A N/A
Authorized Positions 60.0 61.0 65.0 69.0 67.0
Filled Positions 50.3 53.4 58.4 60.5 63.2
Vacancies 9.7 7.6 6.6 8.5 3.8
C. State Level Considerations
The Department is the state entity responsible for ensuring the provision of services and
supports for individuals with intellectual or developmental disabilities as an entitlement
mandated by both the Lanterman and the Early Intervention Services Acts. Continued
provision of these services in California is dependent on the ability to process purchase
of services claims. In addition, it is critical that the data is available for federal
reimbursement billing, mandated reporting, and programs administration.
The Department will adhere to the State’s prescribed PAL process for new information
technology projects, collaborating with its partners including: RCs, ARCA, CHHSA’s
Office of Systems Integration, CDT, the Department of Health Care Services, and the
Department of Finance. The Department plans to work collaboratively to ensure the
PAL process is followed and the project receives adequate oversight.
Consistent with California Health and Human Services Agency (CHHSA) and the
Department goals, planning will ensure that the future solution has a standard technical
architecture; facilitates improved business processing efficiencies; supports application
integration; and enhances data collection and sharing for improved services delivery for
consumers.
D. Justification
The Department seeks to replace UFS with a modern solution that is user-friendly and
configurable to meet program needs, including State and Federal requirements.
Implementing a new solution will allow the Department to address the following issues:
• Addition of functionality that is not currently available, including budgeting modules
and improved fiscal reporting.
• Unreliable data that cannot be aggregated to provide meaningful information for
programs evaluation and predictive analytics.• Inadequate system security and accounting controls that increase risks to the State. • Inflexible technology that does not fully meet program needs and federal reporting requirements, jeopardizing $3.0 billion dollars in federal reimbursements. • Inefficient workflows that require laborious manual workarounds and external data tracking for RC staff. Recognizing the severe deficiencies with UFS, the RCs and ARCA contracted with a third-party vendor to perform an assessment. It was determined that a UFS replacement project will be a large and complex effort. After reviewing the UFS assessment report, the State requested additional information regarding project scope, approach, solution alternatives, and cost. Proposed resources will allow the Department to begin PAL activities, including: Stage 2 Alternatives Analysis, Stage 3 Solution Development, and Stage 4 Project Readiness and Approval, while forming a collaborative partnership with the RCs, determining the best available options for modernization. The current proposal requests planning funds totaling $3.0 million to complete PAL activities and prepare for a future project, over a two-year period. Careful planning will ensure the new technical solution is implemented successfully, providing the RCs with a better fiscal solution, while ensuring the continuous delivery of high-quality services for consumers and safeguarding federal funding reimbursements for the State. Position Justification: Included in this request is funding the equivalent of 2.0 Information Technology positions on a two-year limited-term basis that will support the PAL activities. The Department determined the number of requested positions based on project needs, CDT’s project management best practices, and recommendations from CHHSA’s Office of Systems Integration. Each new position will perform specific roles and duties on the project as detailed in Section H. The Department is unable to redirect existing resources to implement the new system because current employees are supporting the legacy system and ongoing maintenance activities. E. Outcomes and Accountability Modernizing the UFS will automate manual processing at the RCs, improving the quality of the critical data received by Federal Programs and CSP. A modernized accounting solution will give RCs a better tool for claims processing and data collection, increasing accuracy, visibility, and improving reporting data used for budgets and estimates. Program changes and updated data collection requirements will be easier to implement, improving compliance with federal regulations while minimizing workload impacts for staff. In addition, a modernized accounting solution will follow standardized and generally accepted accounting practices, improving information controls to better control access to sensitive consumer information.
The Department anticipates achieving defined outcomes over the next three fiscal years. As an information technology effort, the Department must comply with the State’s Project Approval Lifecycle process. The Department estimates one year for each project phase, where Stage 2 Alternatives Analysis in 2020-21 and Stage 3 Solution Development in 2021-22. In support of PAL Stage 2, the Department will release a Request for Information to gather market research on accounting systems similar to UFS in 2021-22. In 2021-22, the Department will prepare its project management planning, with the creation of a Project Charter and Scope document, assess UFS data and prepare a data migration plan, develop project management plans, and develop the solution vendor Request for Proposal. In 2022-23, the Department will release the solution vendor Request for Proposal, entering into a formal solicitation process. The Department will also continue its data analysis and preparation activities. *Please see Attachment A for the projected outcomes. F. Analysis of All Feasible Alternatives Alternative 1: Approve $3 million ($2.8 million GF), which includes $1.4 million ($1.3 million GF) in 2020-21 and $1.6 million ($1.5 million GF) in 2021-22 for project planning resources to enable the Department to plan for the replacement of the its legacy RC accounting system. Pros: • Provides the necessary one-time resources required to proceed with completion of the SIMM 19 PAL Stage activities. • Complete analysis needed to select a future accounting system that provides RCs with needed functionality. • Increases the State’s ability to enhance accommodate future programs. • Improves budgeting and fiscal reporting capabilities to provide additional oversite and improved forecasting. • Provides consulting resources to help the Department prepare for a solution implementation increasing the probability of a successful outcome. Cons: • Budget increase required. Alternative 2: Defer the budget request to 2021-22. Pros: • No budget increase required.
Cons: • The regional centers will continue to struggle with a legacy accounting system that does not meet business needs. • Inability to meet current and future program billing requirements due to system limitations and inefficiencies. • Limited budgeting, reporting, and fiscal forecasting capabilities. Alternative 3: Approve $2.31 million ($2.31 million GF) over two years for project consulting resources only. Pros: • Provides the limited, one-time resources required to proceed with completion of the SIMM 19 Project Approval Lifecycle Stage activities, on a delayed schedule. • No increase in permanently authorized positions required. Cons: • Without a fully staffed project planning team, overall planning costs will increase due to limited resources and a delayed schedule. • Increased risk of project failure due to inadequately staffed project team. • State staff will not be available to form a partnership with regional center stakeholders required for project success. • Limited State resources to provide guidance and oversight of consultant activities. • Regional Centers will unnecessarily continue to struggle with a legacy accounting system that does not meet business needs. G. Implementation Plan Upon budget enactment, the Department will begin recruitment and selection processes to hire qualified staff. The Department will also work collaboratively with the Office of Systems Integration and CDT to procure interdepartmental and external consulting services for the project. The Department plans to procure the following external services using the delegated purchasing authority under the California Multiple Award Schedules or the Information Technology Master Services Agreement (IT MSA): • Business Analysis and Requirements Management • Organizational Change Management • Legacy Data Documentation and Preparation • Business Process Reengineering Cost estimates are based on Rate Schedules published by CDT and blended rate calculations of published rates on the IT MSA. The estimate for consulting hours was determined using prior procurement costing information.
H. Supplemental Information The total funding request reflects the Department’s average costs for the standard position complement of operating expenses and equipment. The mission-critical UFS environment requires a high degree of specialized technical skills to understand, the levels defined in the ITS I and ITS II classifications are required for this effort to be successful. *Please see Attachment B for the workload analysis for the two requested positions. I. Recommendation The Department recommends Alternative 1 - Approve $3.0 million ($2.8 million GF) over two years, broken down as $1.4 million ($1.3 million GF) for 2020-21 and $1.6 million ($1.5 million GF) for 2021-22. The associated funding is for 2.0 Information Technology positions and contracts to enable the Department to replace its legacy federal billing system.
BCP Fiscal Detail Sheet BCP Title: Uniform Fiscal System Modernization BR Name: 4300-002-BCP-2020-GB Budget Request Summary Personal Services Salaries and Wages 0 181 181 0 0 Earnings - Temporary Help Total Salaries and Wages $0 $181 $181 $0 $0 Total Staff Benefits 0 99 99 0 0 Total Personal Services $0 $280 $280 $0 $0
Operating Expenses and Equipment
Operating Expenses and Equipment FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
5301 - General Expense 0 4 4 0 0 0
5302 - Printing 0 2 2 0 0 0
5304 - Communications 0 2 2 0 0 0
5306 - Postage 0 2 2 0 0 0
5320 - Travel: In-State 0 6 6 0 0 0
5322 - Training 0 2 2 0 0 0
5324 - Facilities Operation 0 16 16 0 0 0
5340 - Consulting and Professional Services - External 0 832 1,024 0 0 0
5340 - Consulting and Professional Services -
0 235 202 0 0 0
Interdepartmental
5346 - Information Technology 0 10 10 0 0 0
539X - Other 0 20 0 0 0 0
Total Operating Expenses and Equipment $0 $1,131 $1,270 $0 $0 $0Total Budget Request
Total Budget Request FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
Total Budget Request $0 $1,411 $1,550 $0 $0 $0
Fund Summary
Fund Source
Fund Source FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
State Operations - 0001 - General Fund 0 1,344 1,487 0 0 0
0995 - Reimbursements 0 67 63 0 0 0
Total State Operations Expenditures $0 $1,411 $1,550 $0 $0 $0
Total All Funds $0 $1,411 $1,550 $0 $0 $0Program Summary
Program Funding
Program Funding FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
4149001 - Program Administration 0 1,411 1,550 0 0 0
Total All Programs $0 $1,411 $1,550 $0 $0 $0Personal Services Details
Salaries and Wages
Salaries and Wages FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
5804 - Info Tech Spec I (Eff. 07-01-2020)(LT 06-30-2022) 0 83 83 0 0 0
9450 - Info Tech Spec II (Eff. 07-01-2020)(LT 06-30-2022) 0 98 98 0 0 0
Total Salaries and Wages $0 $181 $181 $0 $0 $0Staff Benefits
Staff Benefits FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
5150350 - Health Insurance 0 11 11 0 0 0
5150500 - OASDI 0 14 14 0 0 0
5150630 - Retirement - Public Employees - Miscellaneous 0 56 56 0 0 0
5150800 - Workers' Compensation 0 1 1 0 0 0
5150820 - Other Post-Employment Benefits (OPEB)
0 2 2 0 0 0
Employer Contributions
5150900 - Staff Benefits - Other 0 15 15 0 0 0
Total Staff Benefits $0 $99 $99 $0 $0 $0
Total Personal Services
Total Personal Services FY20 FY20 FY20 FY20 FY20 FY20
Current Budget BY+1 BY+2 BY+3 BY+4
Year Year
Total Personal Services $0 $280 $280 $0 $0 $0Uniform Fiscal System Modernization BCP
Attachment A –
Projected Outcomes
Workload Measure 2020-21 2021-22
Request for Information Released Publicly Released
SIMM 19G Project Approval Approved by CDT
Lifecycle Stage 2 Alternatives
Analysis Documentation
SIMM 19C Project Approval Approved by CDT
Lifecycle Stage 3 Solution
Development Documentation
Project Charter Approved by Project
Sponsors
Project Scope Document Approved by Project
Sponsors
Data Migration Plan Approved by Project
Sponsors
CA-PMF Project Management Approved by Project
Documentation Sponsors
Solution Vendor Request for Documentation
Proposal CompletedUniform Fiscal System Modernization BCP
Attachment B –
Workload Analysis
IT Specialist I
Working Title Project Planning Tasks
Business and Project Support Analyst • Complete project management support
activities.
• Define, clarify, and approve business
rules, business requirements, and
workflows specific to waiver processes.
• Work with lead analyst to capture and
document design specifications.
• Develop use cases and user stories.
• Review and coordinate approval of
system artifacts (i.e., design concepts,
design, test scripts, and user
interfaces).
• Work with testing teams to develop user
acceptance criteria and user
acceptance test scripts.
• Report to information technology
division management and project
managers on status of assigned work
products.
Task Annual Hours FTE
Define, clarify, and approve business rules,
business requirements, and workflows specific
to waiver processes. Liaison with existing
subject matter experts as needed to refine
business documentation. Develop, update, and
maintain project documentation: action items,
risks and issues, mitigation strategies, project
sponsor decisions, project management plans,
memos, etc. 300
Participate in regular staff meetings
(Departmental, Division, Section), project
meetings (weekly status, weekly data
governance, monthly steering committee,
agency/CDT updates), and procurement specific 250
meetings (RFP development, evaluation andscoring, confidential discussions and
demonstrations). Prepare for assigned agenda
items and status updates. Assist with and
facilitate project communications via project
meetings, presentations, and status reports.
Work with data governance and conversion
preparation team(s) to define data element
descriptions and business rules specific to
legacy data as well as enterprise-wide data
governance. 250
Track and maintain a list of changes, updates,
enhancements, and ad-hoc report requests
made to the existing system and update the as-
is documentation over the course of the
procurement. 200
Support procurement activities: respond to
vendor questions, review draft proposals, score
and evaluate final proposals, and attend product
demonstrations. Complete assigned project
activities, such as procurement activities,
adaptive/iterative development assignments,
and testing scripts and testing activities. 450
Work with Organizational Change Management
team to develop materials and communicate
change to stakeholders, including regional
centers and internal departmental staff. 200
Work on program specific findings as noted in
Oversight and Validation & Verification Findings
and Reports. 50
Administrative Duties 100
IT Specialist I Total 1,800 1.0IT Specialist II
Working Title Project Planning Tasks
Lead Analyst • Complete project
management support
activities.
• Capture and document
business requirements.
• Maintain system
documentation
• Create, maintain, and update
analysis documentation
• Decompose legacy system
jobs and existing program
functionality.
Facilitate requirements,
design, and development
sessions.
Task Annual Hours FTE
Perform duties as business information system lead by
working with program staff and subject matter experts to
capture and document business requirements. Maintain
system documentation. Create, maintain, and update
analysis documentation. Decompose legacy system job
steps and existing program functionality. Create business
process workflows and assist with the creation of system
documentation. Responsible for defining, clarifying and
approving business rules, business requirements, and
workflows specific to waiver processes. Utilize standard
iterative project management and systems development
lifecycle methodologies, such as Agile Scrum, Kanban
product delivery, and iterative development to achieve
project objectives and continuously meet customer needs. 400
Coordinate and monitor modification to business practices. 240
Advise project team on waiver program
enhancements/changes. 60
Act as an ongoing point of contact and facilitate
communication between business program and technical
staff; externally with DGS and DHCS. 120
Work with stakeholders to meet project deliverables and
due dates. 60
Report project risks to Project Manager using standard
project management methodologies. 40As needed, complete project management and
procurement activities including the creation of project
management plans, PAL documents, statements of work,
requirements, minimum qualifications, proposal evaluation
and scoring, vendor demonstration. 580
Participate in on-going project meetings. 100
Work with Data Governance on data definitions and data
classifications. 100
Administrative Duties 100
IT Specialist II Total 1,800 1.0You can also read
