Tuesday, May 17, 2011

Fallin Signs Financial Services Reform Bill

Governor Fallin has signed legislation designed to transform inefficient state agency financial services systems and save taxpayer dollars.

Senate Bill 541, by Senator Anthony Sykes (R- Moore) and Rep. Jason Murphey (R-Guthrie), was proposed after the Office of State Finance commissioned a report by the globally-recognized Hackett Consulting Group.

The study demonstrated massive inefficiencies in the way state agencies conduct financial service operations. The report compared Oklahoma agencies’ financial services processes to those of other public and private sector peer organizations of like complexity. The report demonstrated the inefficiencies by stating that it costs Oklahoma taxpayers $20.05 to process one accounts payable invoice while comparable peer groups pay $3.58 for each similar service. The study also stated that Oklahoma state government has a significantly higher number of full time employees employed to conduct these operations than peer organizations. Oklahoma processes 2,039 accounts payable occurrences for each employee while peer groups are able to account for 15,693 of these same processes with each employee.

The bill proposes to fix the problem by conducting an annual review processes that requires the most inefficient state agency financial service operations to participate in shared services agreements designed to drive down costs.

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