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PART I Agency Administrative Information

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					                      DEPARTMENT OF ACCOUNTS
                    Information Technology Strategic Plan
                               September 2001


                  PART I: Agency Administrative Information


Agency Title: Department of Accounts (DOA)

Plan Date Approved on: September 10, 2001

Approved By: William E. Landsidle, Comptroller

Agency Contact:     Karen M. Robinson
                    Manager, Financial Analysis and Services
                    (804) 225-2373
                    (804) 225-2430
                    KRobinson@doa.state.va.us




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                        DEPARTMENT OF ACCOUNTS
                      Information Technology Strategic Plan
                                 September 2001



                       PART II: Agency IT Strategic Direction

Summary of Current Agency IT Environment:


1. Background: The Department of Accounts (DOA) is a central state agency in the
   Executive Branch of state government and reports to the Secretary of Finance. In
   brief, its mission is ―to provide a uniform system of accounting, financial reporting,
   and internal control adequate to protect and account for the Commonwealth’s
   financial resources.‖ In order to accomplish the stated mission, the Department must
   provide certain resources, services, information systems, fiscal and accounting
   guidance, and other support to a variety of state agencies and institutions. At the
   same time, the Department is subject to budgetary influences, legislative and
   administration initiatives and other priorities of the Executive Branch.

   The DOA supports three key systems upon which most state agencies rely. The state
   general ledger (CARS) must be operational each day during normal business hours to
   accommodate agencies that perform financial data entry, financial inquiry, table
   maintenance and inquiry functions, and also access the 1099 adjustment system.
   Most state agencies and institutions process the agency payroll for their employees
   using the state payroll system (CIPPS) which must also be available on a daily basis,
   due to the time sensitive nature of payroll transactions. Eight decentralized colleges
   and universities have exercised their authority to acquire or develop their own payroll
   systems and process their payroll transactions independently. The state fixed asset
   system (FAACS) is also provided to agencies for recording the acquisition, transfer,
   and disposal of certain types of state owned assets. The control and reporting of such
   assets has become more critical to the Commonwealth because of the implementation
   of GASB 34 which requires more detailed and accurate reporting of state owned
   assets and infrastructure in the Comprehensive Annual Financial Report (CAFR).
   The information contained in the CAFR can have significant implications for bond
   rating agencies, and therefore influence the cost of borrowing money for the
   Commonwealth. Legislators and state agency management naturally have a keen
   interest in prudently managing the cost of financing state debt, as well as maintaining
   the Commonwealth’s reputation for exceptionally strong financial management.

   Over time, the total number of authorized positions has declined significantly which
   has impacted the ―look‖ of the agency, as well as the conduct of business. The DOA
   organizational chart for December 1989 listed a total of 194 positions including the
   Comptroller, a Deputy Comptroller, three Assistant Comptrollers, and a Director of
   Internal Audit representing the agency’s top management. The July 2001
   organizational chart lists 123 positions. To better understand how the organization
   has changed it may be helpful to highlight some of these changes.
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                    DEPARTMENT OF ACCOUNTS
                  Information Technology Strategic Plan
                             September 2001


Elimination of senior management positions:

   Deputy Comptroller

   Internal Audit Director

   Three Assistant Comptrollers

Changes to operational groups/functions:

   Elimination of the Internal Audit management group;

   Elimination of one Pre-Audit Supervisor position and 10 staff positions;

   Addition of three External Auditor positions for post audits;

   Elimination of Data Processing Operations Manager position (Staff positions
    reporting to this position were realigned.);

   Elimination of the Data Entry group representing 18 positions;

   Transfer check printing function to the Treasury Department;

   Addition of Payroll Service Bureau for more efficient centralized processing of
    small agency payrolls.

Excluding the addition of the Payroll Service Bureau, added in 1996, the Department
staffing level is approximately 42% lower than it was eleven years ago. This is a
dramatic change that actually represents the changes in the agency priorities and
senior management’s efforts to redirect limited resources to accommodate the
delivery of service to agency customers in rapidly evolving business environment.
For example, the Data Entry group keyed agency transactions into the state’s general
ledger for nightly batch updating. Although this method provided a necessary service
to state agencies in an efficient manner, technology became available which rendered
this method obsolete. It became more efficient for agencies to key transactions
directly on-line to the general ledger or to interface transaction sets through a disk
transfer.

Another DOA response to the need for efficiencies in state government, was the
implementation of the Payroll Service Bureau. This group of 12 positions processes
agency payrolls for 38 state agencies representing 5,700 state employees. Having this
function centralized within DOA greatly reduces the need for numerous payroll
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                       DEPARTMENT OF ACCOUNTS
                     Information Technology Strategic Plan
                                September 2001


   positions at many smaller agencies that cannot justify these positions from an
   efficiency standpoint.

   Other technological advances allowed DOA to evolve from a mini-computer based
   Wang word processing system to a LAN based information system utilizing the
   Microsoft suite of products. The LAN products empowered the individual worker to
   become more efficient by making available relatively easy to use word processing,
   spreadsheet and database tools. The LAN also allowed the introduction of e-mail to
   enhance interagency communications and information sharing, as well as access to
   the Internet.


2. IT Successes:

   Development of Payline: Payline is a new web-based service available to all
   Commonwealth of Virginia employees paid through the Commonwealth Integrated
   Personnel and Payroll System (CIPPS). Payline provides the means to view and print
   personal earnings, benefits, and leave information for each payday. Because it is
   web-based product, an employee can access his personal information at anytime that
   may be convenient. Payline also offers more information (e.g. banking information,
   tax status, health and retirement selections) than what is provided on the state
   earnings notice or check stub. It also makes current payday information available up
   to four days before payday. Historical information will also accumulate from the
   system implementation date. As this system is rolled out to all CIPPS agencies, the
   printing and mailing of earnings notices may be reduced. State-of-the-art security
   features were incorporated to maintain strict confidentiality of personal payroll
   information. Access to the system requires a user id and password and uses Secure
   Sockets Layer with a 128-bit encryption routine to protect data as it moves back and
   forth across the Internet from the server to the user. This technology is widely used
   by financial institutions to provide a high level of data protection. DOA also uses
   ECC (Elliptic Curve Cryptography) technology, an internal encryption routine, to
   protect sensitive data on the server and prevent unauthorized access to the server.

   Data Repository: End users of the Commonwealth Accounting and Reporting
   System (CARS) ―Repository,‖ a database of accounting transactions, experienced
   tremendous gains in speed of access to data and increased storage capacity. This was
   possible because the Department switched from an IBM operating system (OS2)
   product to a new database (ADABAS) product for NT and moved to Windows
   Terminal Server/Citrix. These changes allow Repository information to be updated
   daily rather than weekly, provide improved end user interface and replaced courier
   file delivery with electronic file transfers. A T1 line was added to accommodate
   high-speed file transfers of information.

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                    DEPARTMENT OF ACCOUNTS
                  Information Technology Strategic Plan
                             September 2001


CARS PPTRA Enhancement: The DOA technical staff, working with General
Accounting staff, enhanced CARS by adding a new option on the Main Menu to
allow localities to enter their request for state reimbursement for the state portion of
the car tax, as provided for by the Personal Property Tax Relief Act. This CARS
enhancement provides an easy-to-use method for localities to control the submission
of the reimbursement request. There are 137 jurisdictions that have requested on-line
access to CARS for processing these payments.

DOA Web Page: Executive Order 51 directed agencies and institutions of the
Commonwealth to move aggressively to implement E-government initiatives that
would ensure that all Virginians’ would benefit substantially from the convenience,
accuracy, and efficiency of interfacing with government and education via the
Internet. The Department launched its Internet website (www.doa.state.va.us) in the
spring of 1997, and enhancements have been implemented on a regular basis since
then.

The Department endeavors to provide all information that may be needed by the
customers who rely on the agency’s services, systems and products. Consequently,
special attention is devoted to providing a wide array of helpful information,
including forms, instructions, and policies and procedures. DOA’s primary
customers are other state agencies and institutions, the courts system and localities.
Over 90 percent of agencies and institutions rely solely on online access to DOA for
accounting policy and procedure (CAPP Manual) information.

The site also includes publications, reports such as the Comprehensive Annual
Financial Report, Popular Report, and Quarterly Report, announcements, bulletins,
and newsletters, as well as employment opportunities and agency contacts that may
be of interest to the citizens of the Commonwealth as well as other governmental or
private sector organizations. Links of particular interest include the Governor’s home
page, as well as the home page for the Secretary of Finance and the Commonwealth
of Virginia. A search tab is also provided in order to allow the viewer to easily
research specific topics. There are about 3,500 visitors and 250,000 hits per month
on the DOA website.

Metafile Record Management System: Metafile was installed on the DOA LAN in
the spring of 2001 as the new storage medium for CARS, CIPPS and FAACS reports.
Metafile is a PC based product that enables financial system report storage and
desktop viewing using the DOA LAN as a report repository. This product replaced
microfiche as the reports archival medium and produces significant efficiencies in
accessing stored information.

Metafile allows the user to locate sought after information using query facilities,
greatly improving the efficiency of research efforts. Since each DOA employee can
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                    DEPARTMENT OF ACCOUNTS
                  Information Technology Strategic Plan
                             September 2001


access Metafile from the desktop, this new archival and research tool should also
reduce the volume of paper reports stored at the agency. Selected paper copies of
individual pages or sections of reports can be printed locally as needed when such
documentation must be provided.

Currently Metafile is available to only DOA employees via the agency LAN, and
other select users via CD. When funding permits, Metafile should be expanded to
allow state agencies and institutions across the Commonwealth to access this archival
and research tool through the DOA website and thereby realize the efficiencies
available.

Web-based FAACS: The Fixed Asset Accounting and Control System (FAACS) is
the official centralized system for recording and monitoring fixed assets in the
Commonwealth. In keeping with the Governor’s initiative, Executive Order 65, to
accelerate the implementation of electronic government in Virginia, DOA developed
a new web-based application to replace the old on-line data entry/inquiry version of
FAACS. While most Internet development is focused on query of data and
presentation graphics, DOA’s new web-based FAACS is an interactive transaction
system that allows users to maintain their fixed assets from any PC connected to any
Internet provider.

This data entry module was designed using Cold Fusion software to provide a more
user-friendly method of accessing the mainframe based FAACS system. The new
data entry module resides on a server located at DOA and is accessed through an
Internet connection. Once the users key their FAACS transactions directly into an
Internet application they are then uploaded to the mainframe based FAACS system.
The web-based system replaces older mainframe type menus and submenus with user
friendly navigation bars typically found in web-based screens. It accommodates the
use of a mouse rather than PF keys and incorporates drop down menus and help
screens.

The system enhancement was exclusively developed and funded with DOA
resources. Statewide training of FAACS users was conducted and full
implementation occurred in May 2001. Development of the web-based on-line data
entry/inquiry environment is phase one of a two-phase project. Phase two will
include an ad-hoc reporting capability.

Enhanced E-mail Access: The Department upgraded to Exchange Server 5.5 for e-
mail support, keeping current with improving technology. This server allows DOA
employees access to their DOA e-mail via the Internet. All DOA workstations have
Internet access and e-mail capabilities.


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                       DEPARTMENT OF ACCOUNTS
                     Information Technology Strategic Plan
                                September 2001


   CIPPS Upgrade: DOA has been chosen by GEAC (CIPPS Vendor) to participate as
   a beta test site for GEAC's field expansion project, scheduled for August 2001. The
   field expansion project will include significant changes to CIPPS software and files.
   Participating as a beta test site gives DOA several advantages from the standpoint of
   GEAC on-site support, on-site training and problem resolution. DOA was chosen as
   a beta site because of the size of the Commonwealth's payroll environment and
   because the Commonwealth has a wide variety of pay types.

   Hotsite Test: For the second consecutive year, the Department of Accounts (DOA)
   participated in the DIT test of its hotsite facility provided by SunGard located in
   Pennsylvania. The primary purpose of this test was to confirm that DIT could operate
   its systems at the back-up site if their data center was rendered inoperable. Since
   DOA’s critical mainframe systems reside at the DIT data center, it was imperative
   that DOA participate in the test to obtain a reasonable assurance that its primary
   systems would continue to function under contingency conditions.

   DOA successfully tested CARS and CIPPS batch and online systems at the DIT back-
   up site. The CARS batch test included the creation of a checkwrite file that was later
   tested successfully with the Treasury Department. Report generation to an output
   queue was also successfully tested. EDI transmission lines were tested with mixed
   results, but provided valuable information by identifying problems for resolution
   under ―real‖ emergency operating conditions. The successful testing of critical
   agency systems under contingency conditions provides invaluable insight regarding
   the soundness of the agency contingency plans.

   Check Printing: The check printing function was consolidated in the Department of
   Treasury operations. The Departments of Accounts and Treasury purchased two laser
   check-printing machines to transfer check production from Accounts to Treasury.
   The two agencies coordinated the migration utilizing information technology support
   from both agencies. Migration to newer laser printers replaced outdated technology
   with high-speed laser technology while greatly increasing the alternatives for back-up
   check production under contingency conditions. Transition to laser printers replaced
   nightly courier runs with electronic file transfers. The laser printers eliminate the
   need to manually ―stuff‖ payroll checks and earnings notices into envelopes by using
   pressure sealed forms. Accounts will continue to produce the print files. The old
   Troy machines were retired.


3. Current IT Focus:

   CIPPS Upgrade: The GEAC upgrade for the CIPPS statewide payroll system
   represents a major systems project for the Department. This upgrade is not optional
   since continued vendor support of the proprietary payroll software will cease if the
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                        DEPARTMENT OF ACCOUNTS
                      Information Technology Strategic Plan
                                 September 2001


   upgrade is not installed. Although GEAC will provide on-site support, training and
   problem resolution assistance throughout this initiative, the demand on DOA
   resources will be significant. Technical staff from both the Systems Analysis and
   Programming unit and the Database Administration unit will be focused on this
   project for at least the next twelve months.

   EDI Security: The Department issued an RFP to replace the existing software
   product DATAGUARD, which is used to authenticate EDI files transferred to and
   from the bank. However during the proposal process it was determined that a more
   efficient hardware method was available. This new method utilizes hardware at the
   bank and at the DIT Data Center to encrypt and authenticate the data. Once testing is
   complete this method should be installed by fall 2001. This new process is more
   secure than replacement mainframe software.

   EDI Communications Enhancement: DOA is converting dial-up communications
   between DIT and MCI to Frame Relay. This communication method is expected to
   be much more reliable than modems and is more in tune with current industry
   standards. Frame relay is characterized by having high transmission speeds with low
   network delays, high connectivity and efficient use of bandwidth.



Agency Critical Issues

The following critical information technology issues were identified in the DOA
Strategic Plan issued for the 2000 – 2002 Biennium and 2002 – 2004 Biennium:

       DOALT01: Post Y-2K environment.

       Issue and Overall Impact — DOA must plan the future direction of its systems
       development efforts for a post Y-2k environment. Since the Department is a
       behind-the-scenes administrative arm of state government, funding becomes a
       strategic issue for the agency in periods of resource scarcity. The Department is
       expecting ongoing funding constraints that will impact the agency and
       information technology budgets. DOA must achieve maximum results from
       existing resources by establishing realistic goals for the replacement, renovation,
       enhancement or upgrade of DOA systems, both those that operate statewide and
       within the agency.

       IT Impact — Yes

       IT Strategy — Limit mainframe applications primarily to technologies with
       which DOA staff have experience. Consider additional technologies only for
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                 DEPARTMENT OF ACCOUNTS
               Information Technology Strategic Plan
                          September 2001


mission critical systems, with careful attention to future needs for staff training
and the probability of staff turnover.

The Department has been chosen by GEAC (CIPPS vendor) to become a beta test
site for the implementation of the next upgrade of the Commonwealth Integrated
Personnel and Payroll System (CIPPS). This initiate represents a substantial
upgrade to the current software and since the Department represents the most
complex and robust user of the software this partnership should provide several
benefits to DOA. GEAC will provide on-site support, training and problem
resolution during the project.

Base Funding — Yes (Additional funding is not expected to be available.)

Additional Funding— N/A

Measure(s) of Success-- Success will be realized if the Department continues to
operate and support several critical statewide financial systems with a high degree
of efficiency, reliability and stability within the funding levels made available.

DOALT01: Post Y-2K environment.

Issue and Overall Impact — DOA must plan the future direction of its systems
development efforts for a post Y-2k environment. Since the Department is a
behind-the-scenes administrative arm of state government, funding becomes a
strategic issue for the agency in periods of resource scarcity. The Department is
expecting ongoing funding constraints that will impact the agency and
information technology budgets. DOA must achieve maximum results from
existing resources by establishing realistic goals for the replacement, renovation,
enhancement or upgrade of DOA systems, both those that operate statewide and
within the agency.

IT Impact — Yes

IT Strategy — Replace internally developed or old commercial PC based
applications with modern commercial software that has strong vendor support.

Agency equipment, such as desktop workstations, servers, storage devices, and
printers, is aging and many are approaching the end of their useful lifecycle.
Client and Server hardware platforms including seven 400 MHz servers and about
one hundred twenty 300 – 400 MHz client computers will need to be replaced
with up-to-date hardware in the 1GB+ MHz range. Client operating system
software and applications upgrades will include replacing the current outdated
Windows 95 and Office 97 versions with Windows XP Professional and Office
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                DEPARTMENT OF ACCOUNTS
              Information Technology Strategic Plan
                         September 2001


XP. SQL version seven should be replaced by version 2000 to better support the
Department’s web applications. The current twelve client network hubs
manufactured in 1992 should be replaced with up-to-date hardware that includes
dedicated switching and smart network management. The current single Ethernet
hub supporting enterprise printing should also be replaced. The current LAN
access modems will be replaced by Internet enabled VPN access. Seven
workgroup printers that are more than four years old are at the end of their
expected life cycle and also need to be replaced. Maintenance upgrades to the
core business infrastructure will provide a lower failure rate, significant
improvements in response times and throughput, and boost staff performance.

The need for equipment and software replacement will be required in the near
future, while funding for equipment could be limited. Software upgrades to office
systems could become a top high priority depending upon the future evolution of
common office software products among DOA customers and other entities with
whom the agency must communicate and share information.

Base Funding — No

Additional Funding— Estimate not available at this time.

Measure(s) of Success-- Success will be realized if the Department continues to
operate and support several critical statewide and agency financial systems with a
high degree of efficiency, reliability and stability within the funding levels made
available.

DOALT01: Internet and Web-based technologies

Issue and Overall Impact — DOA must expand the use of Internet and Web-
based technologies and related business practices to address technical staffing
limitations and concerns with the status of the Commonwealth’s technical
infrastructure.

IT Impact — Yes

IT Strategy — Expand the use of the Internet as a delivery mechanism for
additional accounting and reporting transactions such as direct deposit notices,
remittance advices for electronic data interchange, accounting reports and
procedures manual information.

The Fixed Asset Accounting and Control System was upgraded from a mainframe
based asset control system to PC type front-end processing system accessed
through the DOA web-site. Development of the web-based on-line data
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                DEPARTMENT OF ACCOUNTS
              Information Technology Strategic Plan
                         September 2001


entry/inquiry environment is phase one of a two-phase project. Phase two will
include an ad-hoc reporting capability to enhance its functionality and value to
agencies and institutions.

Base Funding — Yes (Additional funding is not expected to be available.)

Additional Funding — N/A

Measure(s) of Success — Ease of use (FAACS, Payline), reduction of errors
(FAACS), enhanced service delivery to customers, expanded information delivery
(Payline), potential costs savings (Payline).

DOALT01: Improve operational efficiencies through low cost initiatives

Issue and Overall Impact — DOA must continue improve operational
efficiencies through low cost initiatives such as selective partnering to reduce
costs and improve service, making targeted investments in additional equipment,
and/or changing current policies or procedures.

IT Impact — Yes

IT Strategy — Examine options for replacing the microfiche copies of accounting
reports with CD-ROM technology that provides more efficient retrieval and
storage of records and reports and is more cost effective than microfiche.

Metafile is a PC based product that enables financial system report storage and
desktop viewing using the DOA LAN as a report repository. This product
replaced microfiche as the reports archival medium and produces significant
efficiencies in accessing stored information.

Currently Metafile is available to only DOA employees via the agency LAN, and
other select users via CD. When funding permits, Metafile should be expanded to
allow state agencies and institutions across the Commonwealth to access this
archival and research tool through the DOA website in order to maximize the
efficiencies that are available. Statewide access to the Metafile systems will
reduce paper printing and shipping costs, and provide state-of-the-art information
access and utilization to all fiscal offices.

In order to make Metafile available statewide, the Department must purchase and
deploy the following: an external RAID data storage vault, a larger tape backup
device, a dedicated web appliance, and http access licenses and software from the
Metafile vendor or its equivalent.

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                DEPARTMENT OF ACCOUNTS
              Information Technology Strategic Plan
                         September 2001


Base Funding — No

Additional Funding — Estimate for year one of the biennium: $150,000
                     Estimate for year two of the biennium:   63,000
                     Total for biennium:                    $213,000

Measure(s) of Success — Statewide access to DOA reports through the DOA
website.

DOALT01: Improve operational efficiencies through low cost initiatives

Issue and Overall Impact — DOA must continue improve operational
efficiencies through low cost initiatives such as selective partnering to reduce
costs and improve service, making targeted investments in additional equipment,
and/or changing current policies or procedures.

IT Impact — Yes

IT Strategy — Work with VDOT and the APA on initial planning for changes to
the GASB standard on GAAP financial reporting.

GASBS 34 requires an extra set of financial statements, as well as additional
footnote disclosures. These additional requirements will result in an increase in
the manual hours needed to complete the CAFR. Financial Reporting needs to
find more efficient ways to prepare the CAFR in order to meet the mandated
December 15th deadline. One way to achieve this goal is to reduce the number of
manual entries that are currently required during CAFR preparation. A project is
currently underway that will automate summarizing information from CARS to
meet CAFR reporting classification requirements.

This statement requires revenues to be classified in various categories. DOA will
maintain a GASBS 34 Revenue Table that lists each agency, fund/fund detail, and
source code. A GASBS 34 revenue category will be assigned to each item in the
table. New CARS reports will be generated to provide summary and detail
information for the GASBS 34 revenue.

Base Funding — Yes (Additional funding is not expected to be available.)

Additional Funding — N/A

Measure(s) of Success — Statewide efficiency in preparation of CAFR in
accordance with GAAP.

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                      DEPARTMENT OF ACCOUNTS
                    Information Technology Strategic Plan
                               September 2001



Agency Information Technology Vision

      The Department anticipates limited funding opportunities for information
      technology initiatives in the foreseeable future. This limits future information
      technology efforts to enhance services to maximizing existing agency resources
      and systems. Utilization of existing software and web-based development tools
      will require careful planning of future development efforts and systems
      enhancements.

      DOA must meet the challenge of maintaining existing statewide systems such as
      CARS, CIPPS, FAACS, and FINDS since agencies throughout the
      Commonwealth rely on the uninterrupted availability and stability of these aging
      systems.

      Agency equipment, such as desktop workstations, servers, storage devices, and
      printers, is aging and many are approaching the end of their useful lifecycle.
      Replacement of approximately 120 agency PC’s will be required in the near
      future, while funding for equipment could be limited. Software upgrades to office
      systems could become a high priority depending upon the future evolution of
      common office software products among DOA customers and other entities with
      whom the agency must communicate and share information.

      In the long term DOA plans to upgrade and enhance current business
      infrastructure systems to make them fault tolerant. This upgrade is required for
      the agency to consolidate services and cluster mission critical services into four
      main groups to provide fault tolerance and load balancing. The upgrade will
      include providing an all-inclusive tape backup system, purchasing SAN network
      data storage, and clustering for all server systems. The expected benefits will
      include elimination of server failures and increased response rates resulting in
      increased staff productivity.

      Expansion of web-based information will likely play a key role in providing better
      service to DOA’s customers while resources and funding are constrained. DOA
      will endeavor to increase web-delivered services such as accounting and reporting
      transactions, remittance advices for EDI and accounting reports.

      DOA’s GASB 34 project will increase efficiency for all state agencies and
      institutions in the production of information needed to produce the Comptroller’s
      Annual Financial Report. This will be accomplished with CARS programming
      that will reduce the number of manual accounting entries that are currently
      required for CAFR preparation. Also, by automating revenue analysis, agencies
      and institutions will no longer be required to perform this task manually.
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