Bill Text: MS HB1315 | 2011 | Regular Session | Introduced


Bill Title: DFA Office of Shared Services; create to centralize universities and colleges business functions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2011-02-01 - Died In Committee [HB1315 Detail]

Download: Mississippi-2011-HB1315-Introduced.html

MISSISSIPPI LEGISLATURE

2011 Regular Session

To: Universities and Colleges; Appropriations

By: Representative Frierson

House Bill 1315

AN ACT TO ESTABLISH AN OFFICE OF SHARED SERVICES (OSS) IN THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO PROVIDE THAT BEGINNING ON JULY 1, 2015, THE OFFICE OF SHARED SERVICES SHALL ESTABLISH A CENTRAL BUSINESS OFFICE FOR ALL STATE INSTITUTIONS OF HIGHER LEARNING AND COMMUNITY AND JUNIOR COLLEGE DISTRICTS; TO PROVIDE SHARED BUSINESS SERVICES; TO REQUIRE THE OFFICE OF SHARED SERVICES TO DEVELOP A BUSINESS CASE AND TRANSITION PLAN TO PHASE-IN THESE SERVICES PRIOR TO JULY 1, 2015; TO REQUIRE STATE INSTITUTIONS OF HIGHER LEARNING AND COMMUNITY AND JUNIOR COLLEGE DISTRICTS TO COMPLY WITH THE PLAN; TO AUTHORIZE FEES FOR SERVICES; TO PROVIDE THAT THE OFFICE OF SHARED SERVICES SHALL DEVELOP AND ADMINISTER REGIONAL OFFICES FOR PROCUREMENT FUNCTIONS OF ALL STATE INSTITUTIONS OF HIGHER LEARNING AND COMMUNITY AND JUNIOR COLLEGE DISTRICTS; TO DIRECT THE OFFICE OF SHARED SERVICES TO FILE WITH THE STATE TREASURER AND THE STATE FISCAL OFFICER NECESSARY DATA AND INFORMATION TO ENABLE THE OFFICE OF SHARED SERVICES TO PREPARE ALL PAYROLL CHECKS AND DISTRIBUTE PAYMENTS BY ELECTRONIC FUNDS TRANSFER TO STATE INSTITUTIONS OF HIGHER LEARNING AND COMMUNITY AND JUNIOR COLLEGE DISTRICTS; TO PROVIDE THAT THE REGIONAL OFFICE OF SHARED SERVICES SHALL BE THE PURCHASING AGENT FOR STATE INSTITUTIONS OF HIGHER LEARNING AND COMMUNITY AND JUNIOR COLLEGE DISTRICTS; TO PROVIDE THAT SUCH STATE INSTITUTIONS OF HIGHER LEARNING AND COMMUNITY AND JUNIOR COLLEGE DISTRICTS SHALL PURCHASE PERISHABLES, FOOD, COMMODITIES, EQUIPMENT, SUPPLIES, UTILITIES AND FUEL THROUGH THE OFFICE OF SHARED SERVICES; TO AMEND SECTION 27-104-3, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  There is hereby established the Office of Shared Services (OSS) within the Department of Finance and Administration.  The following terms, when used in conjunction with the OSS, shall have these meanings:

          (a)  "Accounting services" means general accounting services to include, but not be limited to, accounts receivable, accounts payable, financial statement preparation, inventory, and related.

          (b)  "Human resource services" means transaction processing associated with employment activities and related.

          (c)  "Payroll and travel services" means preparation and distribution of all payroll and travel payments and related.

          (d)  "Purchasing and contracting services" means transaction processing for the acquisition of goods and services, contract review, and related.

          (e)  "Shared services" means accounting services, human resource services, payroll and travel services, and purchasing and contracting services defined by this section.

(f)  "Employee" means any person employed by a state institution of higher learning or a community or junior college district.

     SECTION 2.  (1)  There is hereby established in the Office of Shared Services (OSS) within the Department of Finance and Administration to operate as the central business office for all state institutions of higher learning and community and junior college districts, to provide shared services to these entities, with such services to be phased-in according to a timetable developed pursuant to subsection (2) of this section.  The Executive Director of the Department of Finance and Administration shall employ a competent person as Director of the Office of Shared Services and necessary staff for the office, who shall be members of nonstate service and shall receive a salary as determined by the executive director with the approval of the State Personnel Board.  The staff transferred to the Office of Shared Services from state agencies shall remain nonstate service members until July 1, 2015, at which time they will convert to membership in the state service.  The Director of the Office of Shared Services may also contract with private vendors for a portion of the workforce necessary to operate the functions of the Office of Shared Services.

     (2)  The Office of Shared Services, beginning July 1, 2011, shall develop a business case and an implementation plan to bring the business services described in subsection (1) of this section online for all state institutions of higher learning and community and junior college districts in an orderly transition, beginning on July 1, 2012, with complete transition no later than July 1, 2015.  The business case shall include estimated transition costs and expected savings to be achieved through the implementation of the Office of Shared Services.  The implementation plan shall include PIN numbers and titles of positions whose functions will be eliminated or transferred to the Office of Shared Services, and shall include any contracted service that will be eliminated or transferred according to the assumption of the function by the Office of Shared Services.  The implementation plan shall also outline required workflows and controls required to connect the program functions of the state institutions of higher learning and community and junior college districts with the central business functions within the Office of Shared Services.  The Office of Shared Services is authorized to determine the methodology for implementing shared services and the transition order for the state institutions of higher learning and community and junior college districts.  The Office of Shared Services shall contract with private vendors to develop the business case and implementation plan.  The Office of Shared Services shall, by rule, describe the business services to be provided by the Office of Shared Services and their applicability to the institutions of higher learning and community and junior college districts, and the implementation plan shall be subject to approval by the Executive Director of the Department of Finance and Administration.  After approval by the Executive Director of the Department of Finance and Administration, the state institutions of higher learning and community and junior college districts shall comply with the schedule of services developed and issued by the Office of Shared Services and shall not spend appropriated state funds to provide or contract for services to be provided by the Office of Shared Services.

     (3)  Beginning July 1, 2015, the Office of Shared Services shall be the central business office for all state institutions of higher learning and community and junior college districts, and shall administer the following functions:  (a) the preparation and distribution of all payroll checks and electronic funds transfer for all employees; (b) the administration of accounts receivable, accounts payable, budget preparation and accounting services for all state institutions of higher learning and community and junior college districts; (c) human resource employment services for all employees in the State of Mississippi; and (d) purchasing agent for business property insurance and business personal property insurance.  Effective July 1, 2015, it shall be the duty of the president of each state institution of higher learning and community and junior college district to make, or cause to be made, a list of all employees, including necessary years of service and salary information, and make this available to the Office of Shared Services at such times as determined to be necessary by the Office of Shared Services.  Such information shall be used by the Office of Shared Services in the preparation of all employee checks or electronic funds transfers made to employees.  It shall be the duty of each state institution of higher learning and each community and junior college district to make, or cause to be made, all necessary financial information, balance sheets, source of funds statements, property inventories and records of transactions to enable the Office of Shared Services to administer a central business and accounting office for each state institution of higher learning and each community and junior college district in the state.

     Effective July 1, 2015, it shall be the duty of the Office of Shared Services to file with the State Treasurer and the State Fiscal Officer such data and information as may be required to enable the State Treasurer and State Fiscal Officer to distribute the salary checks and by electronic funds transfer to the employees at the time required by law, and to make other lawful expenditures by all state institutions of higher learning and community and junior college districts at the time required by law.  Such data and information so filed shall show in detail the amount of funds to which each employee is entitled from state funds, and from federal or other funds.  Such data and information so filed may be revised from time to time as necessitated by law.  At the time provided by law, the Office of Shared Services shall prepare the salary payments for all such employees and distribute to the employees the amounts to which they are entitled by electronic funds transfer as provided by law.  In such instances, the State Treasurer shall submit a request for an electronic funds transfer to the State Fiscal Officer, which shall set forth the purpose, amount and payees, and shall be in such form as may be approved by the State Fiscal Officer so as to provide the necessary information as would be required for a requisition and issuance of a warrant.  A copy of the record of said electronic funds transfer shall be transmitted to the state institutions of higher learning and community and junior college districts.

     (4)  Beginning July 1, 2015, the Office of Shared Services of the Department of Finance and Administration shall be the purchasing agent for all state institutions of higher learning and community and junior college districts in the State of Mississippi, for the purpose of advertising for and procuring all perishables, food, commodities, supplies, equipment, utilities and fuel.  However, the Office of Shared Services shall develop regions and establish regional offices for the administration of the procurement function for state institutions of higher learning and community and junior college districts.  The Office of Shared Services is authorized to select sites within the regional procurement zones for the placement of the regional procurement offices and may contract with the local board of any community or junior college district within such region for the placement of the regional procurement office in existing facilities.  The Director of the Office of Shared Services, with the approval of the Executive Director of the Department of Finance and Administration, shall employ a competent person as the director of each regional procurement office and necessary staff for the regional office, who shall be members of nonstate service and shall receive a salary as determined by the executive director.

     (5)  Effective July 1, 2015, it shall be the duty of the president of each state institution of higher learning and community and junior college district to make, or cause to be made, a list of perishables, food, commodities, supplies, equipment, utilities and fuel, including quality specifications when applicable, regularly used in the colleges and universities under their supervision, and to maintain such a list in the appropriate regional procurement office.  Such list shall be used by the regional procurement office in obtaining competitive bids for perishables, food, commodities, supplies, equipment, utilities and fuel, and shall be available to any interested person.  Purchases made by colleges and universities from the petty cash fund of One Hundred Dollars ($100.00) shall be exempt from Office of Shared Services disbursement and competitive bid.

     (6)  The Office of Shared Services shall develop an implementation plan to bring the business services described in Section 1 of this act and the regional procurement services described in Section 2 of this act online for all state institutions of higher learning and community and junior college districts in an orderly transition, beginning on July 1, 2011, with complete transition no later than July 1, 2015.  The implementation plan shall include identification of employees whose functions will be eliminated or transferred according to the assumption of the function by the Office of Shared Services, and shall include any contracted service that will be eliminated or transferred according to the assumption of the function by the Office of Shared Services.  The Office of Shared Services is authorized to bring each business and procurement service online in a one-service-at-a-time manner.  The Office of Shared Services may contract with private vendors to develop the implementation plan.  The Office of Shared Services shall by rule describe the business and procurement services to be provided by the Office of Shared Services and its applicability to each state institution of higher learning and community and junior college district, and the implementation plan shall be subject to approval by the Governor.  After approval by the Governor, the president of each state institution of higher learning and community and junior college district shall comply with the schedule of services developed and issued by the Office of Shared Services and shall not spend appropriated funds to provide or contract for services or procurement to be provided by the Office of Shared Services under the schedule of services.

     (7)  The Office of Shared Services, with the approval of the Executive Director of the Department of Finance and Administration, shall set and charge a fee to each state institution of higher learning and community and junior college district that receives a shared business service from the Office of Shared Services in an amount sufficient to cover the direct and indirect cost of providing the service.

     (8)  The Office of Shared Services is authorized and empowered to establish rules and guidelines to implement this section.

     (9)  The Executive Director of the Department of Finance and Administration shall promulgate regulations for central payment of salaries and travel to employees by electronic funds transfer from the Office of Shared Services.

     SECTION 3.  The Office of Shared Services shall make a report to the Legislature during the 2012 Regular Session regarding the costs to establish the Office of Shared Services and transition state institutions of higher learning and community and junior college districts business services to the Office of Shared Services.  The reports shall also include the projected savings resulting from implementation of this act and the comprehensive implementation plan.  Such report shall include any technical legislative or administrative recommendations for further consolidation of the business functions of state institutions of higher learning and community and junior college districts.  Such report shall also include an administrative recommendation in consideration of the consolidation or outsourcing of shared information technology, computer and telecommunications services for all state institutions of higher learning and community and junior college districts.

     SECTION 4.  Section 27-104-3, Mississippi Code of 1972, is amended as follows:

     27-104-3.  In addition to other powers and duties prescribed by statute, the Department of Finance and Administration shall have the following powers and duties, with regard to fiscal management:

          (a)  Provide direct technical assistance and training to state agencies and departments in implementing generally accepted accounting principles, in preparing financial statements as required by law, and in management and executive development.

          (b)  Provide temporary administrative services in financial accounting and public administration to any state agency, department or institution upon request of the governing board of the state agency, department or institution.

          (c)  Prepare and issue a comprehensive reference manual or manuals of policies and procedures for each state agency and department to use, which may include chapters on purchasing, personnel, payroll, travel, chart of accounts, fund classifications, receipts, warrants, expenditures, fixed assets, property inventory, and maintaining financial records and preparing financial reports as required and prescribed by law.  The manual shall be revised on a continuing basis.  The manual shall be prepared and revised in consultation with the State Auditor's office.

          (d)  Provide assistance to any state agency, department or institution in collecting a fee or other valid obligation that another agency, department or institution has failed to pay to it.  For purposes of this paragraph, the agency, department or institution seeking to collect the funds shall be referred to as the "creditor agency," and the agency, department or institution that has not paid the creditor agency shall be referred to as the "delinquent agency."  A valid obligation may be evidenced by an invoice or any other documentation as may be required by the Department of Finance and Administration, hereinafter referred to as the department.  A creditor agency may request assistance from the department, and the department may require the creditor agency to furnish detailed information regarding the obligation.  Upon determining that the delinquent agency owes the creditor agency a specific amount, the State Fiscal Officer shall pay to the creditor agency that amount out of any funds in the State Treasury to the credit of the delinquent agency.  The State Fiscal Officer shall notify the creditor agency and the delinquent agency of the total amount of funds transferred.  Either agency may appeal the transfer of funds or the failure to transfer funds, under rules and regulations promulgated by the department and approved by the Office of the State Auditor.  The Department of Finance and Administration shall report any actions taken under this paragraph (d) to the Chairmen of the Appropriations Committees of the House of Representatives and the Senate on a quarterly basis.

          (e)  Beginning July 1, 2011, establish an Office of Shared Services, employ a director of the office and administer a central business office to provide shared services for the state institutions of higher learning and the community and junior college districts as prescribed in Section 2 of this act.

     SECTION 5.  This act shall take effect and be in force from and after July 1, 2011.


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