Moving From iProcurement to eProcurement

1
Moving From i-Procurement to e-Procurement

• Jill Kot, A/Executive Director, CAS
• Stuart Newton, Director FMB, OCG
• February 23, 2005

2
Who Are We

• Corporate Accounting Services (Min of Mgmnt
  Services)
• Provides the corporate financial system and
  related services for the province
• Financial Management Branch, OCG (Min of Finance)
• Maintains and enhances legislation, policy and
  procedures to provide a governance framework for
  financial management

3
Todays Presentation

• Changes to the control framework
• Purpose of the new EA policy
• Overview of control
• Where we are now and next steps
• Vision for eProcurement
• Key elements of the vision
• What it means to stakeholders

4
Expense Authority Policy

• Purpose of new Expense Authority Policy
• Strengthen Expense Authority accountability for
  expenditures and payments
• Streamline the purchasing and accounts payable
  process via iProcurement
• Eliminate the customized ok to pay tool in
  Oracle Accounts Payable

5
Expense Authority Policy

• Overview of Controls
• Expense Authority (EA)
• Delegated authority for expenditures
• Budget
• Policy and Procedures
• Financial management reports (FMR)
• Qualified Receiver (QR)
• Can be any staff with knowledge of goods/services
  and can verify receipt
• Fundamental Control
• Segregation of duties (two persons must be part
  of a process that results in a payment
• Risk and Controls Reviews
• Individual ministry reports
• Corporate report

6
Expense Authority Policy

• Overview of Controls (contd)
• Payment Review Office
• Risk managed payment review
• High risk post -payment reviews
• Low risk statistical sampling
• Obligation To Report
• Part of overall control framework
• Service Planning
• Ensure achievement of goal objectives
• Internal Audit and Advisory Services
• Ongoing compliance audits
• Deputy Ministers corporate audit committee

7
Expense Authority Policy
8
iProcurement

• iProcurement is a web-based front end module to
  Oracle Financials
• Process Overview

9
Where Are We Now?

• Underlying system (i-procurement) implemented in
  all ministries
• Base functionality for all ministries to support
  procure-to-pay business process new financial
  control framework
• Foundation has been laid major milestone in the
  journey
• Electronic procurement vision for the future has
  been developed
• Plans are underway to achieve the vision in the
  next 3 years

10
Successes Challenges

• Some Successes
• Implementation on schedule (strong ministry
  support)
• A solid foundation to build on for the future
• Business model and the vision are supported
• Transactions being processed, information being
  captured
• Catalogue content increasing daily
• Success stories reported
• Some initial challenges have been relieved as
  system is used and learned
• Some challenges
• Business process change high requirement for
  change management
• Efficiency (Learning curve, speed of
  implementation, solution gaps)
• Consistency in Approach (The balance between
  standard business processes unique needs)
• Adoption (Percentage of transactions using P2P
  model)
• Customer change fatigue
• Many of the benefits are still to come

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The Next Steps (short term)

• Confirm the vision and keep it in mind
• Solution refinement (CAS) (in progress)
• Feb 24th
• Automated catalogue load
• PO/Requisition amendment address duplicate EA
  approvals
• Moving to e-procurement (in progress)
• Work with ministries central agencies to
  identify leading practices, share successes,
  identify barriers and develop solutions
• Objective is to help ministries understand and
  use the system to advantage
• Seeking ministry commitment
• Catalogue loading, reporting (in progress)
• 75 of government wide CSAs are now loaded
• Remaining CSA are under analysis
• Catalogue Load Initiative PSS working with
  ministries
• Planning (in progress)
• Focus on clear communication of plans to give
  ministries time to anticipate changes
• Seek ministry input for priorities and timelines

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Where Are We Going?

• BC Governments eProcurement Vision
• A corporate, integrated procurement solution that
  encourages leading practices, streamlines
  processes, and demonstrates real value to BC
  Public Sector customers.

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Key Elements of the e-Procurement Vision

• A one-stop government shopping mall promoting
  corporate supply arrangements (in standardized
  electronic catalogues) (ongoing)
• Provides easy access to pre-negotiated sources of
  supply
• Provides access to best value agreements for
  common goods, services construction
• A shared information repository for corporate
  financial and procurement information (ongoing)
• Captures the categorized spend, and other
  procurement information
• Records the financial and contract information
• Captures each step in the complete end-to-end
  procure-to-pay cycle
• Provides valuable information for clients and
  customers, as well as central agencies
• Provides flexible, accessible, relevant reporting
  for diverse audiences
• Automation of Procure-to-Pay workflows with
  appropriate procurement financial controls
  (completed)
• Automates approvals, reduces data entry and user
  intervention
• Provides tools processes to support customers
  in their daily business activities
• Provides confidence and trust that transactions
  are safe, secure, and processed in an
  appropriate manner

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Key Elements of the Vision (cont)

• Integration to Sourcing (BC Bid electronic
  tendering system) (in progress)
• Streamlines processes and reduces redundant data
  entry to support the full end-to-end procurement
  cycle
• Internal Supplier Integration (e.g. PSS
  Distribution Centres, Purchasing Services CITS
  services) (planned, mid term)
• Provides full access to internal suppliers
  through the shopping mall to support one stop
  shopping
• External Supplier Integration (vendor managed
  catalogues and electronic exchange of
  transactions) (long term)
• Reduces paper handling with external suppliers,
  and aids efficiency and quality of service
• A corporate, integrated procurement financial
  contract management solution (pre-planning, long
  term)
• Provides business tools to support contract
  authoring, award, tracking and ongoing management
• Fills gap identified by many customers in order
  to meet the trend from acquisition of goods to
  acquisition and management of complex services

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Key Elements of the Vision (cont)

• Improved system access through measures such as
  wireless technology and expanded hours of
  availability (expanded hours planned, mid term)
• Supports diverse schedules and needs of
  self-service customers (executive audiences, and
  operations outside business hours)
• Integration to p-card as a payment method
  (including policy for appropriate usage) (long
  term?)
• Streamlines reconciliation processes and provides
  clear direction in order to meeting e-procurement
  objectives (e.g. information capture)
• Streamlining paper handling processes through
  technology such as document imaging (short term
  planned, full solution is long term)
• Streamlines processes to aid efficiency in
  transition from paper to electronic documents.
• Integration to corporate solutions such as
  identity management, and signing authority
  matrices (pre-planning, long term)
• Supports an overall integrated view for clients
  and customers

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What Will the Vision Mean to Stakeholders?

• What Will the e-Procurement Vision Mean to the
  Customer in a Program Area?
• Streamline and automate day-to-day purchasing to
  payment activities through an intuitive, user
  friendly front end making it easier to do their
  job
• Improved buying experience with the ability to
  easily find what they need
• A reduction in data entry
• Business tools and processes to support the full
  end-to-end integrated procurement cycle
• Better pricing and reduced procurement process
  costs through aggregated sources of supply and
  strategic sourcing
• Access to good information and reporting at the
  ministry and program level to support business
  decisions and understand business activities

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What Will the Vision Mean to Stakeholders?

• What Will the e-Procurement Vision Mean to
  Executive?
• Appropriate procurement financial control to
  manage costs and risks
• Ability to meet business objectives through clear
  accountabilities, access to information, and
  assistance from central agencies
• Support for strategic sourcing and the
  aggregation of demand resulting in better pricing
  and reduced procurement process costs
• Increased confidence in systems and information
• Support for the full range of business processes
  for acquisition of both goods and services,
  including ongoing contract management
• Access to good information and reporting to
  support business decisions and understand
  business activities

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Contacts

• Arn van Iersel Project Sponsor
• Comptroller General
• [phone]
• Jill Kot Systems Project Lead
• A/Executive Director
• Corporate Accounting Services
• [phone]
• Vern Burkhardt Purchasing Project Lead
• Queens Printer and Executive Director,
  Procurement Supply Services
• [phone]
• Stuart Newton
• Director, Financial Management Branch, Office of
  the Comptroller General
• [phone]
• Thank you