"At this point, we do not feel it will be appropriate to switch to the new system on July 1," Office of State Finance Director Scott Meacham said. "A number of agencies have indicated they may not be ready for the conversion at that time, so we felt it was important to be responsive to their needs and to delay implementation of the system."
The system, called CORE, will replace the state's fragmented purchasing, financial and human resources computer systems with one centralized system. The project is a joint effort of the Office of State Finance, Department of Central Services and Office of Personnel Management. The decision to delay the go-live date was a joint decision of the three sponsoring agencies.
Implementation of the project's first phase components - human resources/payroll, procurement, general ledger and accounts payable - will be delayed until October 1. Plans call for the current human resources/payroll system to run parallel to the new system until January 1, 2004.
"By running the new payroll system parallel for a quarter, we can ensure that this critical component is operating properly," Meacham explained.
The delay, Meacham added, is not indefinite. "State agencies will continue to work with the project staff to meet various deadlines in preparation for the new go-live date," Meacham said. "It is important that we do not lose our momentum and that agency directors make sure that they continue to commit the personnel necessary to complete this project.
"This is a very important and complex project and delays in a project of this magnitude, whether in the public or private sector, are not uncommon" Meacham explained. "It is important that the state be able to transition as seamlessly as possible to the new system."
The delay will not result in additional costs to the state, said Meacham.
"We recently renegotiated the contract with PeopleSoft, the vendor for the project," Meacham explained. "Not only were we able avoid a penalty as a result of the delay, but we negotiated an overall better deal for the state, eliminating the need to charge agencies fees to utilize the system and saving the state approximately $13 million. We will be receiving more services at less cost than was originally anticipated."
The total cost of the project is $34.1 million. The state has paid $9.1 million during this and the prior fiscal years. The $25.0 million balance will be paid over four years. When completed, the state will have a fully centralized financial and management computer system, including functions such as asset management, grant management, billing and inventory.
News provided courtesy of PriorityWatch.
PriorityWatch provides in-depth alerts, digests, and analysis on legislative and budgetary trends related to information technology in the public sector. Scanning thousands of sources, this advanced research service tracks technology-related bills and summarizes impacts of federal mandates to provide an aggregated view of legislative, policy and administrative developments throughout the United States.
