TOPIC: Software for CAFR Production OFFICE: Office of the State Controller STATE: ME DATE: 02/23/2016 QUESTION / ISSUE:

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1 TOPIC: Software for CAFR Production OFFICE: Office of the State Controller STATE: ME DATE: 02/23/2016 QUESTION / ISSUE: The Maine Office of the State Controller is investigating potential computer software programs to produce its Comprehensive Annual Financial Report (CAFR). We currently use a product called CAFR Unlimited. Please inform us if your state uses an automated report generating computer program, such as CAFR Unlimited, instead of creating your own Excel based spreadsheets. If you utilize an automated computer software package, please provide the following: 1. The name of the program and version, if applicable. 2. The company that created the software (i.e., Oracle). 3. The number of employees who are involved in the CAFR preparation. 4. Estimate of the amount of time required to prepare your CAFR using the software. 5. Any advantages and/or disadvantages you have come across using the software. 6. Any other comments or issues. Alaska Hawaii Alaska uses Excel and Word to put together our CAFR, which is then converted to PDF for publishing. We continue to use Excel spreadsheets in Hawaii.

2 Idaho 1. We use ProSystem fx Engagement, v CCH Inc Not sure if you're looking for total CAFR preparation time or just the amount of time in the application, but once we set up the financial statements and solidified our journal entry and import processes, the amount of time using the application to create our statements is fairly minimal. We import our data and the statements automatically update. The purchase price and annual maintenance costs are very inexpensive relative to other products. Our statements and note disclosures are Microsoft Excel and Word based, so there isn't an additional learning curve for actual production of the CAFR. Adding, moving, or removing lines/columns for the statements is very easy because we're using Excel. The statements and notes that are linked back to the trial balance automatically update as trial balance items change. The latest version of the product allows us to create journal entries in Excel and link those directly back to the trial balance, so if changes need to be made the trial balance automatically updates. We keep all of our workpapers in the Engagement application as well. We have the capability of rolling all our workpapers, trial balance, etc. forward for each new year; the year rolls forward, eliminating the need to touch each statement, workpaper, etc. to update years. Helps move an organization to a paperless environment. Users can work at home without an Internet connection if needed. It takes time to set up the trial balance and linking structure; you would experience that with any product, however. As changes are made to the trial balance, the changes are not automatically synched to all the other users. The 'owner' of the trial balance must manually sync back to the central server and the other users must then manually sync as well. Doesn't take much time, it's just an added step. Reporting/query capability is rather limited and crude. We've linked our database to our data warehouse to greatly expand our query/report-building capability. 6. Engagement is a great product. I believe we were the first state to acquire the application for CAFR production. It has worked well for us. The support staff at CCH is very good to work with when we need them, which hasn't been often; we've had the product for a couple of years now. Indiana Iowa Indiana currently compiles the CAFR using Excel; however, we are going to begin looking at programs that could help us in the compilation. We use a combination of Microsoft Excel and Microsoft Word to produce the state of Iowa CAFR.

3 Maryland 1. IBM Cognos FSR IBM ,080 hours Runs on Word and Excel platforms Rolls CAFR statements and documentation from year-to-year Automatically populates variables in Word documents Source data and GAAP journal entries entered directly in software and automatically updates statements Provides audit trail of work performed in each object and retains prior versions of report Need to contract for support, especially in early years of implementation As newer versions are developed, a cost to upgrade vs. retaining older versions with reduced technical support No automatic updates for full-accrual (GASB 34) entries; these are imported from separate Excel worksheets, imported and mapped to financial statements. 6. No Minnesota Missouri Montana Minnesota does not use a separately purchased software program, but we have created our financial statements through a tool called nvision which pulls data directly from our PeopleSoft/Oracle accounting system. Missouri uses Excel spreadsheets to put together the CAFR. 1. Montana uses nvision an Excel-based add-on to our PeopleSoft/Oracle ERP, which all state agencies and component units are required by state law to use, to prepare the financial statements. Note disclosures are developed manually for the most part. We created and maintain nvision financial statements and related elements in-house. 2. Oracle preparers and 2-3 internal reviewers. 4. Entire process still takes us about 4 months to create the CAFR. North Carolina North Carolina doesn t use a computer software program currently to produce our CAFR.

4 New Jersey 1. New Jersey uses two applications, IBM s Cognos FSR and Clarity Studio 7.0. We use Cognos FSR to consolidate data from multiple sources and publish the CAFR. We use Clarity Studio for single and double sided journal entries and templates for data collection purposes. In order to have the ability for multi-year analysis, we use Microsoft Analytical Services, which requires a dedicated server. 2. Cognos FSR and Clarity was created by Clarity Systems. IBM acquired Clarity Systems in There are approximately 11 employees; however, these employees have other responsibilities beyond the CAFR. We also employ four part time consultants and interns to assist with several projects that impact the CAFR, but are not necessarily involved 100% with the CAFR production. 4. This is a difficult question to answer as in recent years, GASB Statements and other issues impacted the process. In the first year we used Cognos FSR, we reduced the process by approximately 6-8 weeks. However, for reference purposes, under our old CFO Vision software, New Jersey was the 43 rd state to issue their CAFR. In the first year of Cognos, we were the 5 th (and missed 4 th by one day). We also had reduced the number of individuals working on the CAFR as a result of the new software. 5. Using the product and a few underlying collection processes, we consolidated the CAFR process into a single application. Our previous application only produced 70% of the CAFR. The remaining 70% was in Word and Excel. Cognos FSR produces 100%. A key feature in our selection process was the ability for a single change to populate all relevant documents, thus a journal entry to a single fund in our primarily accounting system automatically reflects to the higher statements up to, if we choose, the MD&A in Cognos FSR. In addition, this product automatically page numbers the entire document and automatically changes dates throughout the entire document. The application allows New Jersey to easily enforce uniform publication standards. 6. Acquisition and implementation cost was considerable as IBM supports several custom designed processes. New Jersey is also in the process of migrating from IBM s Cognos FSR to Cognos Disclosure Management (CDM). Cognos FSR and CDM requires that the staff include an individual with IT skills, not necessarily programming or database administrator abilities but the ability to understand queries and data structures. Oklahoma Oklahoma uses Hyperion Financial Management to produce the CAFR and PeopleSoft for the cash basis financials.

5 Pennsylvania 1. We use a combination of an SAP ERP system, which then feeds into our data warehouse, where we access summarized versions of the ERP data via Business Intelligence (BI) software (version 7.3). Note: This requires that all entries affecting the financials must be entered into the ERP system. Within BI we have CAFR groupings (by GL) that summarize further to meet financial reporting requirements. We then export the BI data into Excel, where the statements are linked and formatted. We add footnote disclosures via Word. And we combine the whole package using Adobe Pro. 2. SAP created the ERP and BI software. Microsoft Excel and Word. And Adobe for the finished product. 3. From a technical perspective of preparation, we have one full time employee who works on maintaining BI groupings, formatting various Excel statements and maintaining Excel links and formulas, and combining everything into Adobe format. From a non-technical perspective, we have a staff of seven who prepare various enterprise-wide entries, and the various Word documents for footnote disclosures, etc. 4. We have one full time employee who spends approximately half of his time monitoring master data creation (funds and GLs), maintaining BI groupings, maintaining Excel links, formulas and formats, and combining into final Adobe version. Once all groupings, formulas, links and formats have been updated for the fiscal year (which is a constant on-going process), he can run an updated version of the CAFR in approximately half a day, depending on timing of latest entries in the ERP system, how quickly those entries flow to our BI system, and how fast our network is responding that day. 5. Because the CAFR financial statements flow directly from the ERP system, there is good change control. However, since some of our reporting entities, both internal and component unit related, are not using the ERP system to maintain their ongoing accounting records, it requires us to prepare special entries to incorporate their financial statement balances into our CAFR. 6. SAP also offers an ERP solution for financial statement preparation; however, we determined early on in our SAP ERP implementation that using this SAP reporting module was not flexible enough to meet our needs, especially if last minute changes are required in order to finalize the CAFR quickly. South Carolina 1. N/A We use Excel and Word in combination with our general ledger (SAP). 2. Microsoft & SAP (see above) 3. 4 FT and 3 PT 4. Once we are ready to assemble the CAFR and all pertinent information is available, the actual time to assemble the document is approximately one week of staff time (mostly government-wide reconciliation process). 5. There is off-season prep work and a manual workpaper roll-forward process, but the setup we have is efficient when the busy season comes.

6 South Dakota 1. South Dakota has used Hyperion Financial Management (HFM) Oracle for our last two CAFRs. 2. Oracle 3. South Dakota has 12 to 13 people who are dedicated to CAFR preparation. 4. It took South Dakota 7 months after the close of the fiscal year to issue the FY15 CAFR. We will issue the FY16 CAFR within 6 months of the close of the fiscal year. Not all of that time is used in creating the CAFR. It takes some time for the agencies to post year-end accruals (cash basis accounting to accrual and modified accrual) and then audit time. HFM is a reporting package that allows for posting of accrual entries (journal entries). We dump the accounting system account balances into HFM. Agencies then enter year-end accrual entries into HFM as journal entries. There are some good controls built into the system HFM also allows for batch upload of accrual journal entries. That is almost exclusively what South Dakota uses. SmartView SmartView is an MS Excel plug-in that allows Excel to communicate with the HFM data. This tool alone made HFM worth the cost. All data is at your fingertips using a well-known software application (MS Excel). The report writing function of HFM is cumbersome. We were hoping to print (and PDF) CAFR statements directly from HFM. We can do that; however, we have found it is easier to manually enter the numbers into our old MS Excel spreadsheets for formatting and appearance reasons. A simple thing like rounding is a bit of an issue for HFM. The manual process of entering journal into HFM is cumbersome. Thus, we use the upload process.

7 Tennessee 1. Hyperion Financial Management Oracle 3. 8 FTE and 3 PT 4. FY2015 CAFR completed 12/29/15 (182 days after FYE 6/30/15); FY2015 was our first year utilizing this software. Provides for a centralized location for data collection, consolidation, and reporting; this has proved to be extremely beneficial as it allows users to be able to search and locate information in a single location without exhausting an enormous amount of time searching through multiple files in different locations. Provides for a framework for reporting that is consistent from year to year. Provides for flexible data analysis. Reports are better suited for publishing than previous exports from Excel. Application is user friendly for front line staff preparing journals/statements. Significant lead time for data conversion (mapping, clean up, loading prior year data, etc.), and determining new business processes prior to implementation. Short-term learning curve front line staff was familiar with the process of using Excel based spreadsheets and needed to become familiar not only with a new application to prepare statements, but new business processes were required as a result of implementing the new application as well. Web based application is subject to temporary server down time that is out of our control. Application administrator functions require significant technical knowledge to maintain; we are relying on our IT staff/consultants more than we expected. 6. FY 2015 was the first year we used Hyperion to produce financial statements for the CAFR. We extracted and loaded the trial balance data from our PeopleSoft system and utilized the application to record all worksheet and full accrual entries, to prepare most fund level and government-wide statements (all except cash flow statements), and all budget to actual schedules. MD&A, cash flow statements, notes, other RSI notes/schedules, and statistical schedules were created in Excel and Word as in previous years. We are currently working through additional issues that were not able to be resolved in this first year. Solutions for journal security, rounding functionality, cash flow statements, and elimination entries are still being researched to develop effective alternatives. Utah Vermont Utah does not use a computer program to produce its CAFR but uses Excel spreadsheets. Here at Vermont Department of Finance & Management we have been using numerous linking Excel spreadsheets, and linking into Microsoft Publisher. This is very labor intensive. We are just beginning to look into a software program to produce the CAFR. We have 5 employees dedicated to the CAFR s preparation. Virginia Wyoming Virginia uses Excel. Wyoming Auditor's Office CAFR Division uses CAFR Unlimited to enter our adjusting journal entries to convert from the cash basis to the modified/full accrual basis as necessary but we do not use it to prepare our statements. We use a combination of Excel and Word to prepare the CAFR. We have been looking at the new SQL platform that CAFR Unlimited has recently released and are considering switching to that version.