Technological tools.

• Author: Kinney, Anne Spray
• Position: From the editors - Editorial

Decades ago, automation transformed the way the finance office processed transactions and tracked account activity Since then, technology has affected virtually every functional area in state and local government. In this issue of Government Finance Review, we look at ways in which technology helps jurisdictions not only to become more productive, but to improve overall performance.

All organizations face risks when implementing technology projects, and the bigger the initiative, the greater the exposure. In "Mitigating Risk in IT Contracts," David Melbye explains how to build protections and risk mitigation into contracts with vendors, including the use of deliverable-based payments, warranties based on requirements, and service-level covenants.

Managing cash efficiently and predicting future cash availability is crucial to sustaining organization-wide activities; managers across the organization need to understand how their actions affect and are affected by cash flow. In "The Kansas Department of Transportation Builds a Transparent and Nimble Cash Flow Forecasting System," Marcia Ferrill, Kyle Malcom, and Rob Suggs explain how KDOT created a system that allows agency managers to detect and respond to cash flow shifts quickly, easily, and accurately.

An important but sometimes neglected aspect of technology is governance. The finance department and the information technology (IT) department need to work closely together to make...