Financial Services

1. FinancialServices

2. Who We Are Financial Services is a team, as well as individuals, that make up an office that serves this agency, as well as the State of Washington. Our goal is to promote fiscal responsibility and ensure accountability to the stakeholders of the Commission and the citizens of the state. Mike Young, Financial Manager Kim Anderson, Budget Analyst Tami Schultz, Payroll & Benefits Melissa Hamilton, Accounts Payable & Travel Kristine Nielsen, Accounts Receivable (Honorary Member: Paula McKeown)

3. Budget Annual budget for 6 FTEs approximates $519,000 Annual budget for centralized services approximates $473,000 Monitor and adjust budgets for 24 other sections utilizing 4 funds

4. Financial Services HR Report Card

5. Our Relationships

6. What We Do-Revenue 255 233 172 159 163 Data reflects annual report year not fiscal year.

7. What We Do-Revenue *05-07 Includes only one renewal process

8. Commission Revenues and Expenses for Public Service Revolving Fund The vast majority of commission revenue is from regulatory fees, which we receive around May 1 each year. Traditionally, fund balances have been lowest at the end of March. Industry balances have remained fairly constant over time as company revenues have increased along with the cost of regulation.

9. Commission Revenues and Expenses for Public Service Revolving Fund The vast majority of commission revenue is from regulatory fees, which we receive around May 1 each year. Traditionally, fund balances have been lowest at the end of March. Does not include the $7.8 million QWEST penalty Industry balances have remained fairly constant over time as company revenues have increased along with the cost of regulation. Note: Does not include the $7.8 million Qwest penalty

10. What We Do-Accounts Payable

11. What We Do-Payroll • Quarterly premiums for Workers Compensation Insurance. • Field staff require higher premiums. • Fluctuations reflect staffing levels • Data entered through L&I website • Income Tax withholdings reported on form 941 and remitted to IRS quarterly • Reported amount must exactly match actual payment to IRS • Substantial penalty for late filing • Fluctuations reflect staffing levels more than salary levels

12. What We Do-Payroll Adding new staff requires more steps and involves more data elements than previously; daily schedules for example. Terminating staff requires more steps and coordination with other agencies than previously; buy-outs, balance transfers, status changes, etc. • HRMS requires daily leave entry; facilitated by leave slips. • Leave slips processed may contain several lines of coding • Inclement weather and contagious illness affect leave entry. • Seasonal trends with summer, holidays, etc.

13. What We Do-Budget Budget Adjustments are items initiated by the Governor or Legislature, and require a change to our agency budget. Also includes Agency requested decision packages (carry forward) • 4 programs of 24 sections; monthly projections vs. Actuals • 11 activities on Activity Inventory with 16 performance measures Monthly projection reports are actual expenditures and projected use of remaining budget. • 4 funds, • 5 senior managers • 27 programs. It takes approximately 6 hours every month to prepare the budget reports; and 1 hour per month for meetings, concerns or questions. • Specialized reports for Pipeline Safety, Motor Carrier Services

14. What We Do – Cost Accounting Overhead industries (499, 501, 502, 503, 504, 505, 506 and 507) are allocated during the monthly cost process. Out of all the industries, overhead industries make up 33% of agency expenditures. (25% is for 499, other 8% is for all other overhead industries.) • Old system=24 hours & 3 staff. 80%=Financial Services • New system=7 hours & 2 staff. 80%=other than Financial Services • Old system=8 published 11x17 reports; numerous custom spreadsheets • New system=3 published reports + ad hoc reports • Old system=1 or 2 month lag in reporting costs • New system=costs matched to period in which they occur

15. Our Successes • HRMS • Conversion: no employees left behind • Provided significant input for establishing 941 reporting process • Leave process: spread out work load; more useful reporting and tracking • Cost Accounting • Reduced time to process; costs now included in month they were incurred • More useful reports • Web-based payments • SSRS renewals automated. Web vs. mail • Laid groundwork for accepting other forms of payment; automating other processes • Accounts Payable • Utilizing statewide vendor numbers-eliminates cost of warrants • TVS reduces potential turnaround time for travel reimbursement • Scanning invoices to allow greater access

16. Our Challenges • HRMS • Reporting now agency responsibility; must develop new processes for running, distributing, and storing reports • Some processes not fully functional, requiring work-around • Some processes require more effort: leave tracking, Health Benefits, reconciliation of accounts • Revenue • Systems not integrated, requiring multiple entries for single transaction • Processes different for different types of revenue i.e. SSRS vs. regulatory fees • Systems • Old internal systems difficult to learn, require more effort to maintain • Poor reporting/data availability • Multiple small systems require more reconciliation

17. Our Challenges Internal Systems Revenue system Licensing Registration system Cost Allocation system Time Sheet History database Industry Balance database Records Management System (RMS) Annual Reports Tracking System (ARTS) Contract Log Numerous spreadsheets for tracking all sorts of things External Systems Agency Financial Reporting System (AFRS) Travel Voucher System (TVS) Treasury Management System (TM$) Fastrack Human Resource Management System (HRMS) Business Warehouse & Data Warehouse PAY1 (old payroll system) Budget Development System (BDS) Performance Measure Tracking System Allotment Preparation System (APS) Capital Asset Management System (CAMS) Personal Service Contract Database (PSCD) Fiscal Notes System • Staff • Small, specialized staff makes customer service challenging • Multitude of internal and external systems creates learning curve for new employees, continuous learning for existing employees, compatibility issues

18. Our Responses • HRMS • Document our work-arounds; continue to work with DOP to improve processes • Develop Business Warehouse reports to assist managers and reduce reconciliation effort • Revenue • Request minor changes to systems that will improve data entry • Continuous Process Improvement as technology and circumstance change • Staff • More cross training • More staff attend OFM systems training • Customer Survey as part of Admin. Division • Systems • Work with IS to replace AREV with integrated Revenue System • Work with IS and management to improve reporting • Develop requirements for “ideal” system(s)

19. Our Opportunities • UCR • New Microsoft-based platform • Road Map (Statewide systems upgrade) • Methods of payment-electronic check, ACH, debit card, etc. • Working closely with sections to improve communication and reduce work load

20. Special Thanks Kim Tami Kristine Melissa Paula Debra Vicki Elliot Paul Curl

21. The End In order of appearance: Financial Services Eastern European Unit Director: Mikhail Youngski North American Unit Director: Mike Young 1st unit coordinator: Kim Anderson Stunt Coordinator: Kim Anderson Wrangler: Kim Anderson (again??) Key Grip: Kristine Nielsen Make up artist: Tami Schultz Wardrobe by: Melissa Hamilton Soundtrack available on FS Records No animals were harmed during the making of this presentation This has been a Financial Services Production MMVI