IT Expenditure Coding Requirements and GASB 51

This information supersedes previous announcements from OFM regarding upcoming statewide SAAM policy changes related to tracking Information Technology (IT) expenditures and the implementation of new accounting requirements issued by the Government Accounting Standards Board (GASB).

Recent conversations with a larger group of stakeholders have led to the following decisions:

During recent sessions with agency Deputy Directors, Chief Information Officers and Fiscal Officers, we were advised to expand our outreach and broaden participation and communication to these communities in developing the IT definitions that will result in changes to statewide policy.  Because there is great value in collecting accurate and consistent information on IT costs, we will pursue their recommendation.

Next steps, for the state as a whole, include convening a workgroup with a mix of folks from the IT and financial communities to further refine the IT data definitions.  Once their work is formalized, it will be shared with the larger IT and financial community prior to implementation.

At the same time, we want to acknowledge the excellent work done by agency staff in anticipation of the changes related to IT expenditure coding.  Several agencies are ready to begin using the new coding structure for the biennium beginning July 1, 2009.  They have agreed to be early implementers of the IT project type coding structure.  We commend them for their willingness to be our “pilot agencies” in this venture and will work with them to ensure their success.

Thank you for your support in this initiative.  If you have any questions, please do not hesitate to call me at 360.725.0179 or send me an email at sadie.hawkins@ofm.wa.gov.  You may also contact the accounting consultant assigned to your agency.

Roadmap Implementation Plan Now Complete

Completion of the Roadmap Program Implementation Plan represents the culmination of 4+ years of work that includes participation from nearly every state agency and several higher education institutions, and provides a framework for achieving the goal of modernizing the core financial system.

The Implementation Plan is a high-level view of what the Roadmap Program could accomplish once funding becomes available, and it addresses challenges that state government faces in moving towards modernizing its core financial systems.

View the complete plan here.

About the Roadmap: Positioning the State for the Future

In today’s business environment, Washington State agencies are finding that many of their existing financial and administrative policies and processes no longer meet the demands of citizens, the Governor and the Legislature. Expectations for clarity and transparency in government are hindered by outdated back-office policies and business practices, and the tools and systems supporting them. 

Citizens deserve to know how their taxpayer dollars are being spent and for what results. That’s where the Roadmap program comes in.

The Roadmap looks across state government to:

To do so, the Roadmap must weigh the needs of the state as an enterprise over the needs of single agencies, or even functionally related agencies.

Washington stands at a crossroad where every state agency faces real and urgent business needs and risks.  We can choose to stay with the status quo – allowing agencies to continue investing in unique solutions that divert time, resources and energy from enterprise solutions.   Or, Washington State government can lead the way by providing enterprise tools that benefit all agencies.

In the past, Washington State has taken a decentralized governance approach. For example:

However, we are also exploring the benefits of an enterprise approach to achieve:

As we explore enterprise options we will clarify where a specialized approach is absolutely needed.