Department of Administration Shared Services of Alaska Overview

Department of Administration Shared Services of Alaska Overview Presented by Director Thomas Millar Director Cheri Lowenstein March 12, 2019 House Finance Budget Subcommittee

Shared Services of Alaska (SSo. A) Mission “To provide back office support of common administrative transactions to allow state departments to use budget and staff to focus on their core mission and responsibilities. ” • Shared Services efforts are deemed critical to facilitate the services provided and supported by all other state agencies. March 12, 2019 House Finance Budget Subcommittee 2

SSo. A Sections • Travel and Expense • Collections • Accounts Payable • Leasing and Facilities • Print Services & Central Mail • Procurement March 12, 2019 House Finance Budget Subcommittee 3

Shared Services of Alaska Service Area FY 2020 Funding Total UGF Funding Budgeted PCNs SSo. A $78, 896. 1 $481. 4 116 Accounting $9, 778. 7 $0 74 Lease Admin. $1, 515. 8 $0 10 Leases $44, 844. 2 $0 Facilities Admin. $1, 661. 2 $0 Facilities Non PBF $15, 441. 7 $824. 3 $0 $481. 4 Print Services $2, 597. 8 $0 6 Procurement $2, 261. 2 $0 16 January 30, 2018 House Finance Budget Subcommittee 10 4

Travel and Accounts Payables Travel Accounts Payable • Doing work for twelve departments • Processing portion of AP from six departments • Approximately 70% of State Travel currently in scope • Ongoing volume and capacity benchmarking and analysis • SSo. A Accounts Payable Portal • Standardizing with Travel • Launch in March 2019 • Planning Kaizen on AP for April 2019 • SSo. A Travel Portal • Went live February 1, 2019 • Unprocessed Trip Backlog • 11/26/18 ~ 1, 462 • 03/07/19 ~ March 12, 2019 80 House Finance Budget Subcommittee 5

Travel and AP History • Pre-SSo. A launch of Travel & AP initiatives: • 615 staff worked on them in some way • Inconsistent processing procedures conducted by a large number of different positions (social workers, admin assistants, office clerks, accounting techs, etc. ) • Total work volume for all state agencies required 263 full time equivalent (FTE) positions • 130 FTE spent at least 50% of day on Travel & AP • 76 positions were located in Juneau • 54 positions were located in Anchorage • Departments transferred 74 positions to SSo. A to process that workload March 12, 2019 House Finance Budget Subcommittee 6

Collections Initiative • Retained Account Control Technology, Inc. (ACT) on behalf of the state to collect delinquent debt • FY 2018 total recovery $962, 000 • FY 2019 current recovery $740, 000 • Department of Law transferred all their collections activity to SSo. A. • Law collection unit had 12 staff • Shared Services unit has 2 staff • For debts transferred from the Alaska Court System, SSo. A executes an annual PFD Garnishment • Recovered $8. 2 million from 2018 PFD distribution March 12, 2019 House Finance Budget Subcommittee 7

Leasing and Facilities • Working to maximize occupancy for all State -owned buildings • Pursuing cost savings and renegotiating lease contract terms wherever possible • Supporting maintenance centralization by engaging with DOT Public Facilities • Upgrading Lease Tracking Software March 12, 2019 House Finance Budget Subcommittee 8

Print Services & Central Mail • Provides state agencies with daily sorting, delivery, insertion and posting services • Increasing collaboration and use of available data to provide more efficient service to state agencies at lower cost • Evaluating upgrades to sorting and processing hardware that will reduce postage expense March 12, 2019 House Finance Budget Subcommittee 9

Procurement • Anticipate Centralization of Procurement in FY 20 – Per Administrative Order 304 • Work to standardize commonly-purchased items and leverage spend volume for increased savings • Developing new procurement training programs or schedules March 12, 2019 House Finance Budget Subcommittee 10