HB 316: "An Act providing for a standardized improvement tracking system for state agencies."

00 HOUSE BILL NO. 316 01 "An Act providing for a standardized improvement tracking system for state agencies." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 44.66 is amended by adding a new section to read: 04 Article 2. Standardized Improvement Tracking System. 05 Sec. 44.66.100. Standardized improvement tracking system. (a) The 06 governor shall implement a standardized improvement tracking system for state 07 agencies. Each state agency shall designate one person from the agency to administer 08 the system for that agency. 09 (b) The standardized improvement tracking system must enable tracking of the 10 status, progress, and closure of actions arising from audit findings, corrective and 11 preventive action requests, and other valid improvement opportunities identified by 12 agency employees, internal or external auditors, customers, and stakeholders. 13 (c) The standardized improvement tracking system must 14 (1) provide that each improvement opportunity for each state agency 15 be uniquely tracked using the system;

01 (2) validate each improvement to ensure that it can be logged and 02 tracked as a unique improvement opportunity rather than an addition to or 03 modification of an existing improvement opportunity; 04 (3) identify the following elements for each improvement item: 05 (A) description of improvement opportunity; 06 (B) criticality rating based on an objective system of scoring 07 the relative importance of improvement projects using elements including 08 frequency, cost, and risk or opportunity; 09 (C) identity of opportunity initiator; 10 (D) source identifier, including audit finding or corrective or 11 preventive action; 12 (E) date entered into system; 13 (F) identity of persons responsible for ensuring completion of 14 the improvement; 15 (G) improvement action status; 16 (H) scheduled completion date; 17 (I) actual completion date; 18 (J) name of authorized person who may accept completion of 19 the improvement item; and 20 (K) estimated cost, value, and savings of the improvement 21 expressed as an annual, one-time, or other cost as may be applicable; 22 (4) provide a mechanism for state agencies to 23 (A) analyze each improvement opportunity by reviewing 24 causes, characteristics, and frequency of occurrence; 25 (B) review the findings of the analysis to determine specific 26 programmatic or other root cause; 27 (C) determine the corrective action to be implemented that 28 addresses the root cause to prevent reoccurrence; corrective action shall be 29 taken to eliminate the cause of a defect that has already occurred; 30 (D) develop an implementation schedule for each corrective 31 action and implement those actions in accordance with the schedule;

01 (E) evaluate effectiveness of corrective and improvement 02 action plans and implementation; 03 (5) ensure evaluation of the effectiveness of a corrective action plan 04 and assess improvements in operations and efficiencies; and 05 (6) provide for quarterly status reporting from the system administrator 06 to the head of an agency and annual status reporting from the governor to the 07 legislature; quarterly and annual status reports must include the following: 08 (A) quantity of open items; 09 (B) quantity of closed items; 10 (C) aging of items approaching or beyond scheduled 11 completion date; 12 (D) cost or benefit of items closed during the reporting period 13 and fiscal year to date; 14 (E) details of higher criticality items that have been closed 15 within the reporting period; 16 (F) details of higher criticality items that have already extended 17 or are projected to extend beyond their original due date; and 18 (G) action plan for closure of higher criticality items that are 19 beyond their scheduled closure date. 20 (d) In this section, 21 (1) "improvement" means a systematic action taken to correct or 22 prevent defects; 23 (2) "preventive action" means action taken to prevent the occurrence of 24 a defect in the future; 25 (3) "state agency" means the University of Alaska and a department, 26 institution, board, commission, division, authority, public corporation, or other 27 administrative unit of the executive branch.