HIGH INTENSITY DRUG TRAFFICKING AREA

FINANCIAL MANAGEMENT DATABASE PROJECT

INTRODUCTION:HIDTA Overview Congress established the High Intensity Drug Trafficking Area (HIDTA) Program to operate under the direction of the Office of National Drug Control Policy (ONDCP) by the Anti-Drug Abuse Act of 1988 (P. L.100-690, November 18, 1988) and the ONDCP Reauthorization Act of 1998.

Resources provided to the HIDTA Program have grown from $25 million in Fiscal Year 1990 to $206 million in FY 2001.

The FY 2001 HIDTA Program coordinated the efforts of a total of 941 local, 170 state and 35 Federal law enforcement agencies and 60 other agencies participating in 482 HIDTA-funded initiatives

INTRODUCTION:Project Background

The HIDTA Financial Management Database Project will give the HIDTA program a single national financial management system for all HIDTA locations.

Benefits include providing one set of financial records for all HIDTA participants, a standardized process for budget development and programming of funds, standardized reporting, ad-hoc reporting, and will provide better financial communication across the organization.

PROJECT ANALYSIS:

The Problem…

Each HIDTA office develops and manages its own budget separate from the national financial records.

The records maintained by the national HIDTA program office frequently differ from the records tracked by each individual HIDTA office.

32 HIDTA offices has each have a financial manager who spends at least 8 hours per week fixing discrepancies between local and national numbers.

PROJECT ANALYSIS:

The Objectives…

1. Reduce errors and improve the accuracy of HIDTA financial data.

2. Reduce the time and cost of reconciling HIDTA budgets by integrating all HIDTA financial records into one system.

3. Speed up the budgeting and reprogramming approval processes.

4. Improve financial reporting and managerial decision making capabilities.

PROJECT ANALYSIS:

In Scope…

         All end-user interaction via web based interface

         Custom HIDTA input form

         Custom HIDTA reports – specific to program

         Digital approval process equal to current process

         Web-based remote management of product

         Budgeting Process

         Automated management of Grants Administration

PROJECT ANALYSIS:

Out of Scope…

         Expenditure Tracking

         Wide Area Network Design / Implementation

         GroupWare

RETURN ON INVESTMENT:Expected Benefits

Return on Investment Analysis

Financial Management Costs Under Current System

# of personnel

Estimated Total Hours

per Month Each Hourl Rate

Total Cost per

MonthTotal Cost

per YearReconciling local and national figures 32 32 $45 $46,080 $552,960Other financial processes with curren system 32 48 $45 $69,120 $829,440

Total Annual Cost: $1,382,400

Financial Management Savings Under NEW System

Number of

personnel

Estimated Total Hours

per Month Each Hourl Rate

Total Cost per

MonthTotal Cost

per YearReconciling local and national figures 32 0 $45 $0 $0Other financial processes with curren system 32 12 $45 $17,280 $207,360

Total Annual Cost: $207,360

Total Annual Savings: $1,175,040

Financial Management Database Project Estimated Costs

Personnel Cost

PositionTotal Project

HoursHourly

Rate Total CostProject Manager 1016 $50 $50,800Project Team (5 people) 1300 $45 $58,500Contractors (2 people) 616 $250 $154,000Project IT Team (5 people) 1360 $45 $61,200Project Trainers (2 people) 160 $30 $4,800HIDTA Financial Managers (32 people) 1280 $45 $57,600

Total: $386,900

Materials CostItem Quantity Unit Cost Total CostCore Software (1000 users and support) 1 $500,000 $500,000System Server 4 $10,000 $40,000

Total: $540,000

Services CostItem Quantity Unit Cost Total CostTrain the Trainer (service per person) 3 $2,000 $6,000Estimated Travel CostsContractor Travel (weeks) - 2 people 20 $1,000 $20,000Travel to training (weeks) 32 people 32 $1,000 $32,000

Total: $58,000

Total Estimated Project Cost: $984,900

RISK MANAGEMENT:

Risk Assessment…

        Users might not buy into the system after rollout

        System software could be dropped by vendor

        System software might not work as advertised

        Could be more expensive to manage than planned

RISK MANAGEMENT:

Risk Control…

        Training, support, and financial manager empowerment

        Product is standards based and code is available

        A third party could modify and/or support

        Could contract with 3rd party for less expensive support

PROJECT IMPLEMENTATION:Timeline and Work Breakdown Structures…

        Estimated 127 working days to complete entire project.

        Core team of 15 people – 13 HIDTA, 2 contractors

        Design phase 60 working days to complete.

        Development phase 44 working days to complete.

        Implementation phase 23 working days to complete

Task Name Duration Start Finish Predecessors

1 HIDTA Financial Management Database Project Summary 127 days 8/2/2004 8:00 1/25/2005 17:00

2 Design Phase 60 days 8/2/2004 8:00 10/22/2004 17:00

3 Develop System Design 60 days 8/2/2004 8:00 10/22/2004 17:00

4 Develop System Specs 60 days 8/2/2004 8:00 10/22/2004 17:00

5 Develop Training Plan 30 days 8/2/2004 8:00 9/10/2004 17:00

6 Develop System Security Plan 60 days 8/2/2004 8:00 10/22/2004 17:00

7 Development (Build) Phase 44 days 10/25/2004 8:00 12/23/2004 17:00

8 Build System Prototype 19 days 10/25/2004 8:00 11/18/2004 17:00

9 Install Server Hardware 2 days 10/25/2004 8:00 10/26/2004 17:00 3,4,6

10 Install Server Software 5 days 10/27/2004 8:00 11/2/2004 17:00 9

11 Load Sample Data 2 days 11/3/2004 8:00 11/4/2004 17:00 10

12 Configure System Software 10 days 11/5/2004 8:00 11/18/2004 17:00 11

13 Test system Prototype 10 days 11/19/2004 8:00 12/2/2004 17:00 12

14 Training 10 days 12/3/2004 8:00 12/16/2004 17:00

15 Train the Trainer training 5 days 12/3/2004 8:00 12/9/2004 17:00 13

16 Train all HIDTA Financial Managers 5 days 12/10/2004 8:00 12/16/2004 17:00 15

17 System Acceptance Test 5 days 12/17/2004 8:00 12/23/2004 17:00 16

18 Implementation Phase 23 days 12/24/2004 8:00 1/25/2005 17:00

19 Import Historical Data 3 days 12/24/2004 8:00 12/28/2004 17:00 17

20 Define/Build Production Input Forms 5 days 12/29/2004 8:00 1/4/2005 17:00 19

21 Define/Build Production Reports 5 days 12/29/2004 8:00 1/4/2005 17:00 19

22 Implement Security 2 days 12/24/2004 8:00 12/27/2004 17:00 17

23 Deploy at each HIDTA office 10 days 1/5/2005 8:00 1/18/2005 17:00 20,21

24 Develop Lessons Learned Report 5 days 1/19/2005 8:00 1/25/2005 17:00 23

25 Project Completion 0 days 1/25/2005 17:00 1/25/2005 17:00 24

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HIDTA Financial Management Database Project Summary 127 days

Design Phase 60 days

Develop System Design

Develop System Specs

5 Develop Training Plan

Develop System Security Plan

Development (Build) Phase 44 days

Build System Prototype 19 days

Install Server Hardware

Install Server Software

Load Sample Data

Configure System Software

Test system Prototype

Training 10 days

Train the Trainer training

Train all HIDTA Financial Managers

System Acceptance Test

Implementation Phase 23 days

Import Historical Data

Define/Build Production Input Forms

Define/Build Production Reports

22 Implement Security

Deploy at each HIDTA office

Develop Lessons Learned Report

Project Completion 1/25

28 4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30 6 13 20 27 6 13 20Mar '04 Apr '04 May '04 Jun '04 Jul '04 Aug '04 Sep '04 Oct '04 Nov '04 Dec '04 Jan '05 Feb '05 Mar '05

Critical Path Gantt Chart

FINAL ANALYSIS:

Methods of Evaluation…

        Project completed on time and on budget.

        Documented use by all financial analysts.

        Budget reconciliation time eliminated.

  Reduce reprogramming processing time from 3 days to 1

        Reduce budget approval process from 5 months to 3

HIGH INTENSITY DRUG TRAFFICKING AREA

FINANCIAL MANAGEMENT DATABASE PROJECT