The State of Hawaiʻi is embarking on a substantial upgrade to its financial systems, with the Department of Accounting and General Services (DAGS) seeking bids from software providers and system integrators. The RFP published last Monday, marks the start of the Enterprise Financial System (EFS) Project, a $68 million venture aimed at modernizing the State's financial data system—which currently sustains the state’s economic activities.
In a statement obtained by the publication, Governor Josh Green emphasized the significance of the initiative, "This is the single most transformative modernization effort in Hawaiʻi," and outlined the range of individuals and entities affected, from state employees and benefit recipients to vendors and departments managing federal grants. As described in the Department of Accounting and General Services press release, the modernization is critical for streamlining operations that handle a volume of transactions equivalent to the state's GDP.
DAGS' Director and Comptroller Keith Regan highlighted the existing system's vast reach, reminding us that "When you consider the volume of transactions processed by the State’s accounting system, it is equivalent to the state’s gross domestic product (GDP) of $76.5 billion in 2023. More than 900,000 transactions are run through the system every year." This puts into perspective the urgency and the challenge of ensuring a robust and efficient accounting system.
The current system, known as the Hawaii Financial Accounting and Management Information System (FAMIS), is 55 years old and has been mostly unchanged since the 1920s. It is acknowledged as antiquated and inefficient, incurring high maintenance costs and presenting serious risks to state operations in the event of a system failure. A modernized system promises not just efficiency but also potential savings for taxpayers and enhancement of public service delivery.
Previous attempts to modernize the financial system, which trace back to 2015 and 2020, are now being pushed forward with new strategies and dedication. "We’ve learned many lessons from our previous efforts. Accounting and fiscal operations are now taking lead roles in the management of this project. We are reengineering the way we operate, which requires a significant investment of time and effort on the people-side of our organization. Change of this magnitude is not easy, but involving those who will ultimately have to live and breathe this new system will be critical to the success of this project," a statement obtained by the Department of Accounting and General Services.
With the solicitation process now underway, the next step will be the selection of a system integrator who will collaborate closely with the project team to implement the new financial system. For more comprehensive details on the EFS Project, the public can visit the department’s dedicated website.
