Joint Committee Committee on Joint Technology Committee (12/30/2014)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT TECHNOLOGY COMMITTEE

Date:	12/30/2014	ATTENDANCE

Time:	09:04 AM to 12:02 PM	Martinez Humenik	*
		Merrifield	X
Place:	HCR 0112	Neville T.	X
		Singer	X
This Meeting was called to order by		Tate	X
	Representative Tyler	Tyler	X

This Report was prepared by
	Matt Becker
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Chair and Vice-Chair Election CORE Supplemental Statewide Internet Portal Authority Annual Report DHS Supplemental Request Committee Duties and Responsibilities		Chair and Vice-Chair Elected Approved Witness Testimony and/or Committee Discussion Only Approved Witness Testimony and/or Committee Discussion Only

09:04 AM -- Election of New Chair and Vice Chair

The meeting was called to order. Representative Tyler explained the role of the Joint Technology Committee (JTC) and its role with the Capital Development Committee (CDC), the Joint Budget Committee (JBC), and other roles. He also explained the committee's involvement with the Statewide Internet Portal Authority (SIPA). Mr. Gary Lucas, contractor for Legislative Council Staff (LCS), came to the table to introduce himself. He explained he has several years experience as an Information Technology (IT) project manager and is looking forward to working with the JTC.


BILL:	Election of Chair
TIME:	09:11:02 AM
MOVED:	Tyler
MOTION:	Elect Senator T. Neville to Chair of the Joint Technology Committee. The motion passed on a vote of 5-0, with 1 member excused.
SECONDED:
		VOTE
	Martinez Humenik	Excused
	Merrifield	Yes
	Neville T.	Yes
	Singer	Yes
	Tate	Yes
	Tyler	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Election of Vice Chair
TIME:	09:11:49 AM
MOVED:	Neville T.
MOTION:	Elect Representative Tyler to Vice-Chair of the Joint Technology Committee. The motion passed on a vote of 5-0, with 1 member excused.
SECONDED:
		VOTE
	Martinez Humenik	Excused
	Merrifield	Yes
	Neville T.	Yes
	Singer	Yes
	Tate	Yes
	Tyler	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:13 AM -- CORE Supplemental

Mr. Bob Jaros, State Controller; Ms. Kara Veitch, Deputy Executive Director, Department of Personnel and Administration (DPA); and Mr. Michael Brown, Deputy Chief Technology Officer, Office of Information Technology (OIT), came to the table to discuss an emergency supplemental request for additional funds related to the migration of the state's Colorado Financial Reporting System (COFRS) to a new system, known as the Colorado Operations Resource Engine (CORE). Ms. Veitch discussed the history of COFRS. In response to a committee question, Mr. Jaros explained the definition and purpose of the 13th accounting period used by the state. Ms. Veitch discussed the initial contract with CGI, the vendor chosen to implement CORE in 2012. She then explained the key components of CORE. She explained that CORE went live on July 1, 2014, which she said was a very quick turnaround. In response to a committee question regarding the contractor working on CORE, Ms. Veitch responded both government and contract employees were involved. Mr. Jaros explained the business process re-engineering that was involved with the initial development of CORE.

Mr. Jaros discussed the supplemental request for CORE, and the General Accounting module of CORE. Committee members received a summary of the request, prepared by LCS, and a copy of the budget request submitted to the Governor's Office of State Planning and Budgeting (OSPB) (Attachment A). In response to a committee question about a cost overrun, Mr. Jaros responded that additional reports necessary for the state's Comprehensive Annual Financial Report (CAFR) necessitated the need, in part, for this supplemental request. In response to the nature of the original contract with CGI, Mr. Jaros responded the contract was a fixed-price contract that included specific modules. Amendments were made to the contract, particularly for labor allocation and training.

141230 AttachA.pdf

Mr. Jaros went on to explain the Security and Workflow module of CORE, as part of the supplemental request. He explained that department-specific changes and judicial department changes are driving the cost increase for this module. In response to a committee question regarding best practices and out-of-the-box solutions, Mr. Jaros explained the initial out-of-the-box solution for Security and Workflow would not work for every department. Discussion ensued on other states' needs for the judicial branch. Mr. Jaros explained the Procurement module is one of the largest in CORE. One item that was not initially implemented was Vendor Self-Service, which allows vendors to see where payments are in the payment process. He then discussed the Technical Support module and explained that the supplemental request for this module is for additional hours (e.g., 6 a.m. to 8 p.m.) for technical assistance from CGI. The final module, Labor Data Collection/Colorado Labor Allocation System (LCD/CLAS), includes detailed timekeeping and records for grant management, especially for the federal government. He explained enhancements are still necessary for this module. He explained work on this module to date has been very labor intensive and perhaps the most difficult aspect of CORE implementation. In response to a committee question regarding contingencies on the original contract, Mr. Jaros responded the initial contact included $1.9 million in contingency. However, it was primarily used for labor allocation and training.

09:49 AM

Mr. Jaros explained the new modules being requested as part of this supplemental. Discussion ensued on the Accounts Receivable module. He explained that because all departments have their own processes for accounts receivable, it was very difficult to include all departments in the initial development of CORE. Mr. Jaros went on to discuss the Grants Management module. He explained this module is two-fold, for both incoming and outgoing grants. He explained that the grants process is very paper-intensive and inefficient and that the module would automate the entire grants process. Discussion ensued on the implementation of this module. Mr. Jaros then explained the Interface Support module. Discussion ensued on the need for this interface to upload critical data to CORE. He then discussed the Business Intelligence and Training Environment modules, which he said are both necessary for reporting and functionality. He also discussed the Network Enhancement module. He said DPA is working with OIT to determine the appropriate network capacity. Mr. Jaros explained the purpose of the "Invoice Numbers on EFT" module. As the final module, Mr. Jaros discussed Project Management and General Support. In response to a committee question on efficiencies accomplished by automating tasks in CORE, Mr. Jaros responded DPA will have a better handle on it once they are able to analyze the performance of CORE after more issues have been worked out.

10:10 AM

In response to a committee question regarding lessons learned from CORE implementation, Ms. Veitch explained OIT and other departments are utilizing lessons learned in implementing new software systems. Mr. Brown responded OIT will be conducting a post-implementation analysis of CORE and would be happy to report the findings back to the JTC. In response to a committee question regarding reaching out to other states who have implemented a similar system to CORE, Mr. Jaros explained OIT and DPA would be happy to do so. In response to a committee question regarding the nature of the emergency request, Ms. Veitch responded the urgency with the contractor already working on the project necessitates the need for an emergency supplemental. She also explained that the funds from another project have been identified to be restricted as part of the request. In response to a committee question regarding the working relationship with CGI, Ms. Veitch explained OIT and DPA has a good working relationship with CGI. In response to a question regarding the timing of the request, Mr. Jaros responded that the critical timeline is driven by the state's budget cycle, e.g., the CAFR report. In response to a committee question regarding the success of CORE, Ms. Veitch stated that CORE works. In response to a committee question regarding change management issues from departments, Ms. Veitch responded DPA is still in communication with departments and is monitoring reducing help tickets and other measures of success.

10:26 AM -- Statewide Internet Portal Authority Annual Report

Mr. Jack Arrowsmith, Chairman of the Board; Mr. Greg Rippy, Interim Executive Director; Mr. Bill Hobbs, Director of Special Projects; and Ms. Catherine Kunst, Director of Operations, all from the Statewide Internet Portal Authority (SIPA), came to the table to discuss SIPA's annual report. Mr. Arrowsmith explained the recent history of SIPA. Committee members received SIPA's Annual Legislative Report (Attachment B), a presentation from SIPA (Attachment C), and the FY 2012-13 and FY 2013-14 financial statements for SIPA (Attachment D). Discussion ensued on the background of SIPA.

141230 AttachB.pdf

141230 AttachC.pdf

141230 AttachD.pdf

Mr. Rippy discussed SIPA's annual report. He discussed eligible governmental entities, including 293 governments or subdivisions. Discussion ensued on the Drupal open-source content management system. Mr. Arrowsmith discussed Payment Card Industry compliance requirements. Mr. Rippy discussed SIPA's product solutions, including Salesforce, DocuSign, Google Apps for Government, Mobile Pulse, and Perceptive Software. He also discussed SIPA's Grant Program, which uses excess revenues to help governments put more consumer-facing services online. In FY 2013-14, a majority of the grant recipients received awards to help review cyber security practices. He also discussed the financial transactions processed on behalf of state agencies. In FY 2013-14, $13.5 million in transactions were processed.

10:49 AM

Mr. Hobbs discussed legislation recommended by SIPA. He stated SIPA recommends two statute changes related to harmonizing reporting requirements and to changing the annual reporting deadline. He also discussed other potential legislative changes concerning SIPA's board of directors. Mr. Rippy discussed SIPA's financial statements. He also discussed SIPA's role and interaction with OIT. He said SIPA sees itself as a nimble tool and resource for OIT. He said SIPA also continues to view itself as a partner with OIT. In response to a question regarding fees for constituents, Mr. Arrowsmith responded that financial reserves have been set aside in case their integrator should go bankrupt, in order to protect its constituents. Mr. Rippy discussed the inherent inefficiency of in-person services. He also discussed a recent study showing the lower cost of online services as opposed to in-person services. Discussion ensued on the efficiency of online services.

11:03 AM -- DHS Supplemental Request

Ms. Julie Krow, Director of the Office of Children, Youth, and Families, Department of Human Services (DHS); Mr. Patrick Fox, Office of Behavioral Health (OBH), DHS; and Mr. Herb Wilson, IT Director for DHS, came to the table to discuss the supplemental request for the Electronic Health Record and Pharmacy System Replacement project. Committee members received a summary of the request, prepared by LCS (Attachment E). Ms. Krow discussed the inclusion of the Division of Youth Corrections (DYC) to the previous DHS project regarding an electronic health record system. She said since OBH has already begun a Request for Proposal (RFP) process, this supplemental request would be much more efficient than a new budget request. In response to a committee question regarding the Department of Corrections (DOC), Mr. Fox stated he was unaware of the specifics regarding DOC's electronic health record system. In response to the nature of the supplemental request, Mr. Wilson responded this request allows additional licenses to be purchased, in addition to those purchased by OBH, as well as to use the same vendor and implementation process, resulting in cost efficiencies. In response to a committee question regarding training, Ms. Krow stated that while it is not included in the current request, existing funds could be used in conjunction with the DYC training program and overlap with OBH. In response to the differences between DYC and OBH, Ms. Krow explained that while there are similarities, specific differences will be addressed during implementation. In response to a committee question related to foster care, Ms. Krow responded many foster care clients are patients in federal facilities, which already utilize electronic health record (EHR) systems. By extending the EHR system to DYC, it allows DYC clients' records to be inter-operable with other EHR systems, including private ones.

141230 AttachE.pdf

11:18 AM

In response to a committee question regarding data transfer from the Colorado Trails information system to EHR, Ms. Krow responded the vendor will be able to advise on ways to best integrate data between the systems. DHS is very open to that possibility.

11:19 AM

The committee recessed.

11:34 AM

The committee was called to order.


BILL:	Office of Information Technology
TIME:	11:34:43 AM
MOVED:	Singer
MOTION:	Approve the supplemental request from the Office of Information Technology for the Colorado Financial Reporting System (COFRS) Modernization project ($4,463,642 GF and $616,962 CF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Martinez Humenik	Yes
	Merrifield	Yes
	Neville T.	Yes
	Singer	Yes
	Tate	Yes
	Tyler	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Department of Human Services
TIME:	11:35:56 AM
MOVED:	Neville T.
MOTION:	Approve the supplemental request from the Department of Human Services for the Electronic Health Record and Pharmacy System Replacement project ($935,000 GF), to include Division of Youth Corrections requirements. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Martinez Humenik	Yes
	Merrifield	Yes
	Neville T.	Yes
	Singer	Yes
	Tate	Yes
	Tyler	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:42 AM -- Committee Duties and Responsibilities

Ms. Jessika Shipley, LCS, discussed the duties and responsibilities of the JTC. Committee members received a memorandum prepared by Ms. Shipley (Attachment F). Discussion ensued regarding the charge of the JTC. Ms. Shipley discussed the committee's role in approving IT budget requests and its interaction with the Capital Development Committee (CDC) and the Joint Budget Committee (JBC). She also discussed OSPB's budget request process. The IT budget requests submitted to OSPB for FY 2015-16 will be summarized by LCS using a standard template. She also discussed the JTC's ability to propose legislation. Ms. Shipley explained the budget request process and deadlines to the JBC. She also discussed the upcoming FY 2015-16 budget requests and appointments to other boards that are required by statute.

141230 AttachF.pdf

11:55 AM

The committee discussed potential meeting dates for the 2015 session. The next JTC meeting will be on January 9 at 1:30 p.m.

12:03 PM

The committee adjourned.