In a recent government meeting, the Washington State Auditor's Office presented findings from a performance audit of the 1 Washington program, which aims to replace the state's aging core financial management system, the AFRS. Senior Performance Auditor Patrick Anderson and Staff Auditor John Hegman highlighted the critical need for reliable financial statements, emphasizing that accurate data is essential for the state's creditworthiness and effective decision-making.

The audit revealed that while 1 Washington has made progress in addressing risks associated with the transition to the new Workday system, significant challenges remain. The project, which has a total cost of $465 million, is set to go live on July 1, 2025. However, the auditors noted potential threats to the project's success, including schedule delays, insufficient training for state agency staff, and a lack of documented contingency plans.

Key areas of concern identified in the audit include the transfer and classification of data from the old system to Workday, the generation of financial statements, and the preparation of agency staff for the new system. Although 1 Washington has implemented practices to ensure data accuracy and has begun training initiatives, the auditors warned that the timeline for training may be inadequate, particularly as it coincides with the busy fiscal year-end period.

The auditors recommended that 1 Washington enhance its project resources, ensure the accessibility of training materials, and develop actionable contingency plans to mitigate disruptions to financial reporting. They also urged the establishment of clear decision points in the project schedule to address readiness concerns before the system's launch.

During the meeting, concerns were raised about cybersecurity risks associated with the project, although the audit did not specifically evaluate this aspect. Additionally, a representative from the University of Washington shared experiences of delays in grant applications due to the Workday transition, underscoring the broader implications of the project's readiness.

As the 1 Washington program moves forward, the auditor's findings serve as a crucial reminder of the importance of thorough preparation and risk management in large-scale system transitions.