HSE National Shared Services Detailed Design Project Change

National Shared Services Delivering a customer-focused support to health service delivery Planning for Shared Services in The Health Service Executive ACCA Employers Conference 19th September 2006 Laverne McGuinness National Director of Shared Services Contents • Context for Change • National Shared Service Vision & Scope • Business Case Levers • Creating an Environment for Change 2 Contents • Context for Change • National Shared Service Vision & Scope • Business Case Levers • Creating an Environment for Change 3 Context – Significant Organisational Change in the HSE (1 of 3) • • Health Care Reform Programme 2003 Replacing 11 former Health Boards with one National Structure • New Unified National Structure Health Service Executive established 1st of January 2005 • • Budget of €12 Billion Staff in excess of 100,000 4 Context - HSE Structure (2 of 3) 1. Health and Personal Social Services are divided into three service delivery units.    2. Population Health Primary, Community and Continuing Care (PCCC) National Hospitals Office (NHO) Within Support Services are six management units       Human Resources Finance Shared Services Information and Communications Technology Estates Procurement 3. 4. Office of CEO Reform and Innovation 5 Context - Significant challenges for National Shared Services (3 of 3) • • • • • • Outside of the east little understanding of Shared Services model Significant transformation throughout HSE – Shared Service but one element of this change Multiple legacy IT systems across country No national standard end-to-end processes 2000+ skilled admin staff spread across many locations to be transitioned to Shared Services Not a small operation to introduce a service for… – 18,000 vacancies filled p/a – Approx 80,000 supplier accounts – 1.5m Purchase Orders – 2 m invoices received annually – 57 m Medical reimbursement transaction per annum 6 Contents • Context for Change • National Shared Service Vision & Scope • Business Case Levers • Creating an Environment for Change 7 Objectives of National Shared Services (NSS) The Vision: To deliver a customer-focused National Shared Services to support health service delivery The following functions will be delivered from National Shared Services: Finance HR Procurement ICT PCRS Legal Services The Key Drivers behind National Shared Services: • Reduces costly duplication • Enables economies of scale • Fosters centres of knowledge • Facilitates shared expertise • Drives consistency in the way things are done 8 By any standards, HSE National Shared Services will represent a large-scale transformation programme National Shared Services Procurement Legal Services Finance: HR: Procurement: PCRS: Finance PCRS ICT HR Annual Activity 2 Million invoices €8 Bln transaction value 18,000 vacancies filled 100,000 staff paid 1.5 Million Purchase Orders 57 Million transactions €2 Bln transaction value 9 National Shared Services Programme Timeline A Planning Phase was the first step in the four phase NSS Programme. It has driven out: • • An Operating Model defining scope of service A Business Case, tangibly defining the financial and qualitative benefits, thus enabling future tracking • An Implementation Plan highlighting dependencies, risks and resource requirements Feb-Jun ‘06 Phase I Planning Jul-Dec ‘06 Phase II Design Quick Wins 2-4 years Phase III Build Phase IV Deploy / Implement 10 Scope of National Shared Services HR Finance Procurement PCRS ICT Legal Service Recruitment Pensions Mgmt General / Asset Accounting Payment Services Treasury & Cash Mgmt Billing & Collections Tender Admin Systems Team Calculation of Payments Processing of Payments Verification of Claims Compilatio n of Statistics Personnel Admin Payroll * Training & Developmnt Travel & Subsistence Foreign Travel Desk Assisted Buying Centre 11 Rigour has been applied to develop a robust starting point Example below for Finance Shared Service Scope of Service e.g. General Ledger & Financial Systems Queries and Compliance Management Financia l System s, Access & Security Set up & maintenance of user profiles & authorisations Managing authorisations within Financial Regulations Review user access and compliance Monitor access to OSS Finance SS Manage General Ledger Maintain Chart of Accounts Creation & Maintenance of Master Data Maintenance of CRS Solution Finance SS Assess impact of change Communicate to all impacted parties Shared Requests for GL Account setup or modification Process Reporting (KPIs and GL performance reports) Perform Payroll Costing Transac Admin & tion & Allocati Process Reconci on of ing liation Costs Create journal Manage PAYE / Complete entry rules PRSI manual secondary cost Automatic Payment run and allocations upload of all payments interfaces submitted Gather Statistical through ROS Key Figures Perform (SKFs) validation to Returns ensure accuracy submitted to Upload SKFs of transaction Revenue Execute Posting and assessment Finance SS reconciliation of cycles Maintain Non Pay voluntary Reverse Accruals deductions DB assessment Set up recurring cycles Process vendor journal rules payments for Create & voluntary Post to GL Maintain CO deduction Master Data Finance SS Indicative Key Service Metrics: • No days to perform close • % journals delivered on time • % accounts reconciled Request for profit centre creation or modification CRS Change request Executive sign off and approval Retained Identify need for journal / interface Create journal voucher (accruals and manual entry) Obtain appropriate sign off Retained Internal Payroll Reconciliations e.g. payroll specials Third Party payroll reconciliations e.g. ROS Shared Plant Maintenance Settlement Finance SS Review Master Data Review and Update Assessment Cycles Shared Project / Special I&E Account ing Set up projects account Release project for spending Input budget & plans Review & Finalise all project costs and expenditures Settle costs to asset Process unassigned costs / revenues Control checks Close Project Prepare Form 8 for AFS Prepare and submit claims (Form A’s) Finance SS Perform Closing Run FM/CO reconciliation Close sub ledgers Reconcile to GL Make necessary adjustments Carry out required revaluations Perform Closing QA Checklist Close Period & GL Finance SS Create Close Schedule Monitor Close Schedule GR/IR Maintenance Shared Financial control checks Review & Update settlement rules Run stock balances Retained 12 Financial Reporting (Statutory & Non Statutory) Queries and Compliance Management Process Reporting (KPIs and GL performance reports) Extract Trial Balance data from SAP Validate data / check totals Analyse and report on data as necessary Run relevant queries Distribute for review Report Non Financial Statement s Ensure All Interfaces uploaded Ensure all reconciliations complete Extract relevant data from SAP Produce AFS & Supplementaries from SAP to templates Finance SS Report Annual Financial Statement s Vote Budget Managem ent Execute Vote Report Finance SS Vote budget enquiries Analysis & reconciliation of: Appropriation in aid Extra Exchequer receipts Non Vote Income & Expense Suspense accounts Process Virement Process supplementary Shared Calculate return to the Exchequer Retained Vote Reporting Preparation of Vote Reporting – Monthly and Annual Vote Report generation in accordance with “Public Financial Procedures” regulations Finance SS Agree vote reports Vote Reconcilia tion Reconciliation of Vote to CRS Reconciliation of Bank to CRS Reconciliation of Operating Statement and Appropriation Account Vote Audit File Requirem ents Copy of GL on CD Detailed Trial Balance on CD and in hard copy Finance SS Preparation of Lead Schedules for Audit Requirements Shared Audit File approval and distribution Retained Reconciliation of Vote to AFS Finance SS Identify need for report / information Retained Reconcile agreed balance sheet accounts Consolidation of AFS Audit Performance Shared Identify need for AFS Complete Lead Statutory pages Distribute to internal audit, governance body & board for approval Audit Certification Oireachtas review Finance SS Shared Approval and return to Exchequer Retained Agree reconciliations Shared Approval Retained Retained Indicative Key Service Metrics: • No days to perform close 13 Management Reporting & Budgeting Queries and Compliance Management Process Reporting (KPIs and GL performance reports) Budget Preparation Budget preparation Input Budgets, Revisions & Adjustments Create / update funds management master data Input Operating Budget Input Capital Budget Review and reconcile budget inputs Execute Assessment Cycles Period End Mgmt Reporting & Analysis Report generation Distribution and communication of periodic reports Finance SS Report request received and actioned Query request to developer & report writer Communicate report availability CRS Month End* Receive data files Validation (manual) Load actual / budget data to CRS Check for errors Run assessment cycle to transfer appropriate balances to Balance Sheet Review Data & Extract for upload Transfer to Corporate Copy data to BW Reconcile with Special Projects Ledger (SPL) Communicate data availability Finance SS Retained Reverse Assessment Cycles where required Upload budget revisions & adjustments Reconciliation of adjustments Finance SS Reallocate funds Allocate funds to cost element & centre Assign unallocated funds to “holding” cost centre Indicative Key Service Metrics: • % of reports generated and distributed automatically • Availability and use of self service reporting Review Master Funds Management Data Review and Update Assessment Cycles Review budget at consolidation levels Shared Review and Analyse Plan: Income & Expenditure Relevant SKFs Review & Analyse Working Capital Reports Trend Analysis Comparative Analysis Ad hoc report query / request Retained *CRS is an interim solution. Create Close Schedule Monitor Close Schedule Shared CRS Analysis and Board Reporting Retained 14 Accounts Payable Vendor / User Queries Process Reporting (KPIs and AP performance reports) Supplier Manage ment Purchas ing Delivery & Receipt Invoice process ing Invoices received Invoices validated for syntax errors Invoices scanned and registered Invoice duplicate check Invoice matched with PO and GRN (3 way match) Invoice matched with PO (2 way match) Non Order Payment Request Interface Invoice match (utilities) FX invoice processing Perform Welfare Processing Invoice High Value Block Invoice rerouted for approval as no PO Posted & archived Finance SS Invoice Approved Retained Retained Manage Taxes Plan Taxes Manage VAT & VIES Return Manage PSWT Manage Relevant Contracts Tax (Construction Industry Tax) Tax Clearance Certificate Check Finance SS Paymen t Process ing Determine Cash Position AP Reconcili ations Perform petty cash Impreset Reconciliations Accounts Payable Reconciliations Aged vendor list analysis compared to control account Identify differences and take appropriate action Procurement Process Payment proposal (incld. GBP) Payment block Electronic payments processed Manual payments processed Financial ledgers updated Imprest payments processed Prompt Payment Calculations Finance SS Cheque Management & Maintenance Payment proposal approved Bank signatory approved Compare statements with AP Ledger Finance SS Indicative Key Service Metrics: • % Invoices Paid within Terms • % Unmatched invoices • No. Manual payments • Average Days to Pay 15 Contents • Context for Change • National Shared Service Vision & Scope • Business Case Levers • Creating an Environment for Change 16 Drivers of HSE National Shared Services Management Information A single, national source of data and more robust reporting will allow for better decision making, strategy development and budgeting Management Information Value for Money Value for Money NSS will facilitate cost reduction in performing HR, Procurement and Finance transactional activities within the HSE Enhanced Control Environment Enhanced Control Environment Standardisation and consolidation of policy and processes will improve the level of service and provide a greater focus on compliance 17 The quantifiable benefits are significant, but outweighed by the potential of the Qualitative Quantitative Benefits • Cost savings in transactional workforce • Enabler of procurement savings programme Qualitative Benefits • Less transactional activity • Standardisation of processes • Continuous process improvement • Improved control environment • More timely, consistent information • Key enabler in transformation of corporate functions • Operational cost reductions • Reduction in ICT costs (national-v-multiple deployments) VFM Management Information Enhanced Controls 18 Contents • Context for Change • National Shared Service Vision • Business Case Levers • Creating an Environment for Change 19 Context for Successful Change • • • • • • • • Project directly sponsored by CEO and top management Integrated Transformational Programme with HSE Business Units and Corporate functions Transparent communication to all stakeholders (management, staff, unions, etc) A compelling rationale and business case for change Significant emphasis on Change Management to ensure programme acceptance and delivery of results The project is “business focused” as opposed to “system focused”, resulting in an integrated solution that brings together processes, people and technology In addition to core ERP platform ensure Shared Services enabling technologies (eg: scanning, workflow) are incorporated into design Strong HSE team skill-set, breadth of experience and diversity of perspective 20 Programme Governance is vital for gaining commitment and integration to reform program CEO    CEO Sponsorship Directly accountable to CEO Governance is representative of HSE Management Team across Business Units and Corporate Functions Continue to integrate with Corporate Transition Leads National Director of SS NSS Governance Committee NSS Advisory Panel  “Ensures integration with other programmes” NSS Prog. Leadership NSS Workstream Leadership Work stream Leadership 21 A business case that has clear value for all stakeholders 1. Enhanced Control Environment 2. Management Information 3. Value for Money Corporate Functions Finance Policy Strategy ICT Functional Strategy HR Compliance National Data Source Standard processes & tools Consolidated standardised data Business Units NHO PCCC Service Provision Corporate Support Services Population Health Corporate Affairs Voluntaries* 22 National Shared Services Procurement * For any Voluntaries within future scope of Shared Services A detailed framework for change has been established There are many change aspects which need to be planned and managed to ensure the successful implementation of NSS. 1. Change Planning 11. Service Baselining 2. People 3. Knowledge 10. Contingenc y 4. Systems Change Aspects 9. Cutover 5. Facilities 8. Data 7. Training 6. Comms 23 Thank you Laverne McGuinness National Director of Shared Services 24