Financial Baseline and Benchmark Project

In January 2004, the Office of Financial Management began its efforts to measure the effects of change in the state's financial processes between 2004 and 2006/07. OFM teamed up with the Governor's Office, Department of Personnel, and consultants from Mercer and Sierra Systems to complete a baseline assessment of the state's current financial processes in June 2004.

The financial processes will be re-measured in 2006/07 (do to other business committments, OFM has decided not to persue the process remeasurement in 2006/07.)

Project Overview

The Financial Baseline and Benchmark Project was the second component of an enterprise project that began July 2003 with an assessment of the state's HR processes. The HR component was completed in December 2003.

Both the HR and Financial Baseline and Benchmark Projects were recommended in the feasibility study completed to acquire a new personnel / payroll computer system. The purpose of the financial assessment was to identify processes that are overly complex, cumbersome, or duplicative. In addition, the project identified opportunities for improving financial processes and developing tighter integration among the state's "back office" systems. Project results and recommendations were provided to:

  • Participating agencies for:
      - Establishing internal baseline measures and benchmarks for key financial processes.
      - Identifying cost drivers and areas of unnecessary complexity.
      - Discovering best or better practices that we can adopt from others.
  • The Governor's Office for:
      - Comparing the performance of Washington State's key financial business processes with established national financial benchmarks.
  • The Office of Financial Management for:
      - Identifying missing functionality and potential operational efficiencies in statewide financial systems.
      - Helping establish planning priorities for future statewide financial systems.

    Project Approach

    The project approach was similar to that of the HR assessment. The same twelve agencies participated:

    · Attorney General's Office · Employment Security Dept
    · Dept of Information Services · General Administration
    · Dept of Corrections · Labor and Industries
    · Dept of Licensing · Office of Financial Mgmt
    · Dept of Personnel · Dept of Printing
    · Dept of Revenue · Washington State Patrol

    Deputy directors, financial officers and agency coordinators from the 12 participating agencies attended a project kick-off meeting in late January. The agency coordinators helped modify a survey tool (called the Operations Scanner) used to collect the baseline information on financial processes. The survey was administered via the Internet between February 17 and March 3. More than 700 employees completed the survey - a 99% participation rate.

    After the surveys were completed, Mercer and Sierra Systems analyzed the results, conducted interviews / focus groups to "fill in the information gaps" and compiled the findings.

    The follow-up assessment will take place in 2006/07.

    Summary of Findings and Recommendations

    The full summary of findings and recommendations for the Financial Baseline and Benchmark Project can be found here.

    Key recommendations for agencies:

    Short Term
    Medium Term
    Long Term
    • Receive all invoices centrally within each agency.- Receive electronic invoices into a shared Payables inbox ("lockbox" processing).
        • - Log all invoices upon receipt.
        - Retain original invoice and accept other forms of verification of receipt of goods or services (e-mail, fax, etc.).
    • Send interagency invoices electronically to generic agency A/P inboxes rather than individuals.
    • Leverage internal best-practice budget development tools (e.g., Excel templates).
    • Expand use of rapid invoice processing.
    • Provide online self-service training materials and references for agency finance staff.
    • Centralize customer service within agencies, provide staff access to appropriate financial systems, and record and track issues and resolutions.
    • Expand payment options such as credit/debit cards, EFT, etc. with appropriate information for allocation and invoice matching.
    • Consolidate cash receipting systems.
    • Expand customer self-service functionality to include vendor access to account information and workflow for internal customers.
    • Review agency service pricing models to encourage appropriate levels of accounting details in applications and invoices.

    Frequently Asked Questions

    Financial Baseline and Benchmark Project FAQ's

    Contact Information

    For more information about the Financial Baseline and Benchmark Project contact Kathy Rosmond, OFM Project Manager, at Kathy.Rosmond@ofm.wa.gov or 360/664-7771.