Chapter 4 – Information Technology

It is the policy of the Department to monitor the implementation and outcome of EDPElectronic Data Processing (see IT) projects within the Department to ensure that progress and outcome information is tracked and reported, as specified by SAMState Administrative Manual 4940 and as otherwise required by State oversight agencies. Additional requirements may be specified by the Office of Information Technology (OITOffice of Information Technology) in response to the Department’s Information Management Annual Plan (IMAPInformation Management Annual Plan) or in response to other needs reported by the Department (see SAMState Administrative Manual 4819.3 through 4819.39 for departmental requirements).

The purpose of this policy is to ensure that adherence to all project reporting requirements outlined by State oversight agencies is monitored and met.

The Compliance Review Reporting Schedule for both delegated and non-delegated projects is set by the MISManagement Information Systems Committee in accordance with central control agency and Department requirements, and is reported to the central clearinghouse.

All information technology projects are subject to audit, with project reporting and evaluation documents being an essential aspect of the audit trail (SAMState Administrative Manual Section 4943). CDC is subject to project audits by control agencies as well as internal audits. Documentation supporting project decisions shall be kept by the Department in the central clearinghouse for a minimum period of two years following approval of the post-implementation assessment.

Nondelegated Projects

• OITOffice of Information Technology audits project reporting documentation in conjunction with its audit and oversight responsibilities.

Delegated Projects

• For delegated projects, the MISManagement Information Systems Committee shall determine when an audit is to be conducted, the scope of the audit, and who shall perform the audit.

The project audit reporting schedule for both delegated and non-delegated projects is set by the MISManagement Information Systems Committee in accordance with central control agency and Department requirements, and is reported to the central clearinghouse.

Quarterly Project Reports (QPR) are usually required of the project manager in the case of projects subject to monitoring by OITOffice of Information Technology, and may be required as an additional reporting responsibility for delegated projects. OITOffice of Information Technology’s response to the Department’s IMAPInformation Management Annual Plan or FSRFeasibility Study Reports specifies the necessity of preparing QPRs for particular projects. On occasion, reporting on other than a quarterly basis is established by the FSRFeasibility Study Reports and approved by the MISManagement Information Systems Committee.

Every external QPR shall be reviewed and approved by the affected division, and by the Director, or designee. Two copies of the QPR shall be submitted to the central clearinghouse for submittal to OITOffice of Information Technology by no later than the 15th day of the month following the end of each fiscal quarter (i.e., October 15, January 15, April 15, and July 15). A copy of the QPR shall be forwarded to the Office of the Legislative Analyst.

CDC also encourages use of the QPR format to document project activity for projects that do not qualify as reportable, or for which project monitoring has been delegated to the Department. These internal QPRs shall be reviewed and approved by the affected division. It is not necessary to forward copies of these reports to OITOffice of Information Technology or the Office of the Legislative Analyst unless so required by OITOffice of Information Technology.

The QPR shall contain a brief summary of project status including an explanation of any minor deviations from the original project plan. An updated Project Management Schedule (see SAMState Administrative Manual Section 4928.4) showing actual completion dates of specific tasks/deliverables shall be attached. The QPR shall conform to the standard format provided in SAMState Administrative Manual Section 4944.1.

Some deviations from the project plan require preparation and submission of a Special Project Report (SPRSpecial Project Reports). The conditions that require preparation of an SPRSpecial Project Reports are defined in SAMState Administrative Manual Sections 4945 and 4945.1.

General Reporting Requirements (SAMState Administrative Manual Section 4945): Preparation of an SPRSpecial Project Reports is required whenever a project deviates substantially from the costs, benefits or schedules documented in the approved FSRFeasibility Study Reports, or when a major revision occurs in project requirements or methodology. No expenditure of funds shall be made to implement an alternative course of action until approval has been received from OITOffice of Information Technology or the Director of CDC, as appropriate (SAMState Administrative Manual Section 4945). SAMState Administrative Manual Section 4945.1 lists specific conditions for the required submission of an SPRSpecial Project Reports to OITOffice of Information Technology.

SPRs, which must be submitted to OITOffice of Information Technology, shall be transmitted within 30 days after recognition of a substantial deviation. Two copies of the SPRSpecial Project Reports shall be submitted to OITOffice of Information Technology and one copy to the Office of the Legislative Analyst. SPRs shall be signed by the Director of CDC or designee.

If a QPR is due to OITOffice of Information Technology during the period the Department is engaged in preparing the SPRSpecial Project Reports, CDC shall submit the QPR (see SAMState Administrative Manual Sections 4944 through 4944.1) stating that an SPRSpecial Project Reports is under development and providing an approximate date for its completion.

The format and content of the SPRSpecial Project Reports transmittal letter for each non-delegated or delegated project shall conform to the standard formats provided in SAMState Administrative Manual Section 4945.

Conditions Requiring Submission to OITOffice of Information Technology (SAMState Administrative Manual Section 4945.1):

• Projects subject to OITOffice of Information Technology approval/oversight – an SPRSpecial Project Reports shall be submitted to OITOffice of Information Technology if:

  • The information technology project’s total costs deviate p roj, or are anticipated to deviate, by ten percent (higher or lower) from the estimated information technology ect budget (to be measured against the combined total of each fiscal year’s One-time Costs plus Continuing Costs on the Summary Fact Sheet, SAMState Administrative Manual 4930 Illustration 1.

  • The project schedule falls behind or is anticipated to fall behind by 10 percent or more (to be measured using the key management milestones critical to project success reported on the Summary Fact Sheet, SAMState Administrative Manual Section 4930, Illustration1).

  • The total program benefits deviate or are anticipated to deviate by 10 percent (higher or lower) from the estimated total program benefits (to be measured against the combined total of each fiscal year’s Cost Savings and Cost Avoidances on the Summary Fact Sheet, SAMState Administrative Manual 4930, Illustration 1).

  • A major change occurs in project requirements or methodology.

• Projects subject to approval and oversight by the Special Project Director (delegated or nonreportable), and projects for which project reporting has been delegated to the Director after OITOffice of Information Technology approval of the FSRFeasibility Study Reports: Submission of an SPRSpecial Project Reports to OITOffice of Information Technology is required if the revised project costs exceed or are estimated to exceed CDC’s IMAPInformation Management Annual Plan cost threshold (SAMState Administrative Manual Section 4902.12), and one or more of the following conditions are true:

  • The total information technology project costs deviate or are anticipated to deviate by 10 percent (higher or lower) from the estimated information technology project budget (to be measured against the combined total of each fiscal year’s One-time Costs vs. Continuing Costs on the Summary Fact Sheet, SAMState Administrative Manual Section 4930 Illustration 1).

  • The project schedule falls behind or is anticipated to fall behind by 10 percent or more (to be measured using the key management milestones critical to project success reported on the Summary Fact Sheet, SAMState Administrative Manual 4930, Illustration 1).

  • The total program benefits deviate or are anticipated to deviate by 10 percent (higher or lower) from the estimated total program benefits (to be measured against the combined total of each fiscal year’s Cost Savings and CostAvoidances on the Summary Fact Sheet, SAMState Administrative Manual Section 4930, Illustration 1.

  • A major change occurs in project requirements or methodology.

• If an SPRSpecial Project Reports for a delegated project must be submitted to OITOffice of Information Technology, attach to the SPRSpecial Project Reports a copy of the approved FSRFeasibility Study Reports and the project approval letter signed by the Director or designee.

• Internal special project reports Delegated or nonreportable projects which exceed projected project development costs but do not (according to control agency requirements) require an SPRSpecial Project Reports.

An internal SPRSpecial Project Reports shall be required when the cost thresholds below are exceeded:

• By less than $100,000 The project exceeds cost projections by 25 percent or more.

• Between $100,000 and $200,000 The project exceeds costs projections by 15 percent or more.

• Over $200,000 The project exceeds cost projections by 10 percent or more.

The SPRSpecial Project Reports shall provide sufficient information for Department management, executive branch control agencies, and the Legislature to assess the merits of the proposed project change and determine the nature and extent of future project oversight requirements. If an SPRSpecial Project Reports lacks sufficient information for these purposes, OITOffice of Information Technology may request that the Department provide additional information.

SPRs shall be commensurate with the level of deviation from the approved FSRFeasibility Study Reports. Therefore, the Department shall determine whether to prepare a revised FSRFeasibility Study Reports, provide the information required by the minimum content for an SPRSpecial Project Reports (defined below), or do something in between these two extremes.

The minimum content for an SPRSpecial Project Reports consists of a description of the project status, an explanation of the reason for the project deviation, a revised project management schedule, and economic summary information. CDC shall prepare an SPRSpecial Project Reports with at least the minimum content described below:

• Project Status – An explanation of the problems encountered or opportunities identified that have led to the preparation of the SPRSpecial Project Reports. This section of the SPRSpecial Project Reports shall include as appropriate:

  • Changes in Project Requirements or Methodology – An explanation of the proposed change from the anticipated course of action, including the reasons for the change and why this proposed alternative methodology is now the preferred course of action.

  • Cost Benefit or Schedule Deviations – An explanation of the deviation from the originally anticipated costs, benefits or schedule. This section shall include the reasons for the deviation and the proposed course of action to bring the project back within planned costs, benefits, or schedule.

• Summary Fact Sheet – This section shall include a revised Summary Fact Sheet (SAMState Administrative Manual Sections 4930 through 4930.1) indicating accomplishments to date by using actual dates in the Target Date fields of the Project Schedule, then continuing the schedule by focusing on the yet to be accomplished milestones critical to project success. The cost analysis portion shall contain all actual costs to date plus revised projected costs through the end of the project.

For example, this may be the second fiscal year that the project has been under development: indicate the actual project costs for last year and place them in the first column of Personnel Years (PYs) and Costs, then combine the actual costs for the current fiscal year-to-date with the anticipated costs for the remainder of this fiscal year, and place them in the second column of PYs and Costs. Indicate the anticipated costs for each succeeding budget year through the end of the project.

If the feasibility of the project was documented through the preparation of a FSRFeasibility Study Reports, the following additional content shall be provided:

• Project Management Schedule – A revised Project Management Schedule (SAMState Administrative Manual Section 4928.4) indicating accomplishments to date and focusing on the duration of critical tasks, major management decision-points, and progress reporting milestones shall be included in the SPRSpecial Project Reports.

• Economic Analysis Worksheet – A revised Economic Analysis Worksheet (SAMState Administrative Manual Sections 4929 through 4929.2) shall be provided. The worksheet shall contain all actual costs to date plus revised projected costs through the end of the project.

For example, this may be the second fiscal year that the project has been under development: Indicate the actual project costs for last year and place them in the first column of PYs and Costs, then combine the actual costs for the current fiscal year-to-date with the anticipated costs for the remainder of this fiscal year, and place them in the second column of PYs and Costs. Indicate the anticipated costs for each succeeding budget year through the end of the project.

A Formal Project Review (FPRFormal Project Review) may be initiated by Department management or required by OITOffice of Information Technology for any information technology project. The FPRFormal Project Review typically provides a formal management or control agency checkpoint after completion of the project’s general design phase, but before substantial resources have been committed. It may also provide a formal management assessment of a project at any point during the development cycle. FPRs may be scheduled during the procurement process if doing so does not violate procurement requirements.) OITOffice of Information Technology may notify the Department that an FPRFormal Project Review is required in its response to the Department’s IMAPInformation Management Annual Plan, in an FSRFeasibility Study Reports approval document, or in any correspondence subsequent to project approval.

SAMState Administrative Manual Section 4946.1 provides guidance in the form of recommended content for the preparation and presentation of an FPRFormal Project Review. Depending upon the complexity, sensitivity, and size of the project, an FPRFormal Project Review presentation shall usually require between two and four hours. When the Department receives services from a data center or from another agency, responsible staff should request that representatives of the data center or the servicing agency attend.

Content and Organization

• The FPRFormal Project Review provides an opportunity for a final critique of the merits of the proposed information technology project prior to commitment of substantial resources. It shall be used also as a checkpoint during project development to maintain management involvement and awareness with respect to crucial decision points. The FPRFormal Project Review allows assessment of: (1) systems design, (2) current estimates of costs and benefits, (3) management controls, and (4) probability of project success.

Composition of Formal Project Reviews (FPRFormal Project Review)

• An FPRFormal Project Review topic outline is provided in SAMState Administrative Manual Section 4946.1, Illustration 1. Typically, the FPRFormal Project Review is organized into four major sections:

  • Background.

  • Technical Strategy.

  • Project Management Controls.

  • Summary.

• The suggested content of each of these sections is specified in SAMState Administrative Manual Sections 4946.11 through 4946.14.

• It is important to adapt the presentation to suit the audience. Executive management, for example, may not be interested in the technical details of a project, but may be anxious to know the time frames for system operation and the capture of proposed tangible and intangible benefits.

Background Section

• The Background Section of the FPRFormal Project Review shall provide the facts necessary to understand the problem or opportunity being addressed by the project, and the defined project objectives within their program context.

• Typically, this portion of the presentation shall include:

  • A summary of the information contained in the requirements section of the FSRFeasibility Study Reports, with a note of any significant changes since preparation of the FSRFeasibility Study Reports.

  • A brief overview of the project technical strategy as defined in the FSRFeasibility Study Reports’s functional requirements (technical topics are normally covered in detail during the technical strategy section of the FPRFormal Project Review).

  • A brief description of project organization as it relates to the overall organization of the Department, and any specific user organization within the Department.

  • An overview of the information contained in the Management Plan Section of the FSRFeasibility Study Reports.

  • A management summary that concentrates on costs, benefits, savings, PYPersonnel Year reductions, or other quantifiable or non-quantifiable management benefits that were described in the FSRFeasibility Study Reports.

  • A synopsis of anticipated decisions that shall be necessary at the conclusion of the presentation.

• Ideally, the FPRFormal Project Review is based upon information that is more current than is contained in the FSRFeasibility Study Reports; therefore, the estimates should be an update to the economic analysis portions of the FSRFeasibility Study Reports.

• The presentation on technical strategy shall include typically:

  • Major system processes, including file or data section base relationships, interfaces with existing systems, and impact on other systems currently in operation, planned, or under development. This overview of systems capabilities should inform the audience regarding methods for processing information, input mechanisms, output mechanisms, error detection techniques, and data distribution or access.

  • Specific hardware and software requirements for development and operation of the system; the level of presentation detail should be based on the audience’s technical background and need to make informed decisions.

  • Lease versus purchase decisions for equipment and software, and the procurement mechanism and schedule.

  • Requirements for security and asset protection: level of security, security methods, and contingency plans.

Project Management

• This section provides an overview of the project management plan based upon the Management Plan section of the FSRFeasibility Study Reports with updates to reflect changes since the preparation of the FSRFeasibility Study Reports. Additionally, a review of the project phases is typically presented including design, development, testing, implementation, conversion, and acceptance. Coordination of responsibility for these phases is also presented.

• Other topics included in the project management section of the presentation are:

  • Training requirements, plans, and costs for technical and user staff.

  • Special management requirements for system conversion.

  • User or technical responsibilities for data conversion.

  • The time frame for accomplishment of conversion.

Summary

• The concluding section of the FPRFormal Project Review normally summarizes the current status of the project, describes the next steps in the project, highlights potential problems for the project, and closes with any required decisions that may be necessary.

The Assistant Secretary, EISEnterprise Information Services (formerly Information Services Division), or designee shall be responsible for ensuring that the contents of this Article are kept current and accurate.

SAMState Administrative Manual §§ 4819.3 – 4819.39, 4902.12, 4928.4, 4929 to 4929.2, 4930 to 4930.1, 4940, 4943, 4944 to 4944.1, 4945 to 4945.1, 4946.1, and 4946.11 – 4946.14.