4819.34 PROJECT APPROVAL AUTHORITY
(Revised 12/04)
Authority for approval of information technology projects lies with the Department of Finance, but it is the intention of the Director of Finance to delegate approval authority to agency directors to the maximum extent practicable. When an agency's proposed expenditures on information technology are consistent with established policies and when the agency has consistently adhered to those policies and successfully implemented information technology projects, Finance will consider delegating authority for the approval of expenditures to agency directors, as defined below.
Finance will establish an agency-specific cost delegation level, i.e., the project cost level above which the agency must obtain Finance's approval of an FSR or Feasibility Study Report - Reporting Exemption Request (FSR-RER) (see SAM Section 4819.37) before the agency is authorized to initiate the project.
Finance's delegations fall into one of three general groups:
Group 1 - Desktop and Mobile Computing Delegations–Agencies that have established and currently maintain an acceptable operational recovery plan and plan for the appropriate application of desktop and mobile computing will be delegated authority for the acquisition of equipment and software to support their desktop and mobile computing activities. See SAM Section 4989.2.
Group 2 - Agency Delegation for Non-Reportable Projects –Approval authority for projects which are not classified as reportable is delegated to the agency director. Agencies undertaking delegated projects are expected to employ appropriate project review, approval, and reporting procedures as specified in SAM Sections 4819.35 and 4819.36. See SAM Sections 4819.37 and 4819.39 for a list of reportable project criteria and a definition of delegated cost threshold.
Group 3 - Requested Delegation for Reportable Projects–An agency with an acceptable Operational Recovery Plan and an Agency Information Management Strategy that has been approved by Finance may submit a Feasibility Study Report - Reporting Exemption Request (see SAM Section 4819.38) to Finance prior to the encumbrance or expenditure of funds, including the use of staff resources, on the project beyond the feasibility study stage. Finance will review the form and notify the agency whether it has been delegated approval authority for the proposed project. If delegation is not granted, the agency must submit the project FSR to Finance for approval.
1. Among the factors considered by Finance in determining whether a project should be delegated are:
a. The apparent adequacy of the agency's planning process;
b. The cost, scope, and complexity of the project;
c. The size and composition of project staff;
d. The agency executive staff's project management experience;
e. The level of complexity and completeness of prior FSRs prepared by the
agency;
f. The number and complexity of previous information technology projects
attempted by the agency;
g. The demonstrated ability of agency project management staff to successfully
monitor, control, and report progress during a complex undertaking; and
h. The agency's past success in applying information technology to attain goals
on time and within budget and to realize expected objectives.
Delegation of approval authority will NOT normally be given for projects which:
a. Have significant statewide, interdepartmental, or intergovernmental impact;
b. Involve the establishment or use of nonstandard or extensive communication
facilities;
c. Propose software or equipment acquisition expenditures that are large in
relation to the agency's information technology budget;
d. Have the potential for involving new or unfamiliar technology;
e. Produce revenue for the state, such as licensing fees, tax collection, etc.;
f. Have a high potential risk associated with the security and confidentiality of the
information being processed; or
g. Depend upon decisions to be made during the development or enactment of
the Governor's Budget, such as approval of a Budget Change Proposal or
Budget Revision.
2. Splitting a project into smaller projects to avoid either fiscal or procedural
controls is prohibited.
3. Agencies undertaking delegated projects are expected to employ appropriate
project review, approval, and reporting procedures as specified in SAM
Sections 4819.35 (Feasibility Study Report) and 4819.36 (Project
Reporting/Oversight) below.
4. All information technology projects are subject to audit. Documentation
supporting project decisions must be kept by the agency for a minimum of two
years following approval of the Post-Implementation Evaluation Report (PIER).
See SAM Sections 4947-4947.2.
5. Finance, at its discretion, may rescind previously delegated approval
authority for individual projects or for all information technology activities in
progress or proposed by an agency. Finance may require that project
planning, design or implementation be halted or redirected.
The decision to rescind delegation will typically be based on review (audit) of the agency's information management practices; review of a specific project; redefinition of the project; significant increases in project cost projections; major cost overruns; specific control language placed on expenditures through legislation (i.e., the Budget Bill); identification of significant unresolved technical issues; or a change in the direction of state policy.
