Gov. Kim Reynolds announced Friday that the state will end its agreement with Workday, an enterprise software company, and update the state’s financial management system to a different cloud-based platform.

“This is not the outcome we wanted, but I’m confident in our team’s recommendation and greatly appreciate their diligence throughout this process,” Reynolds said in a news release. “Despite the time, effort and money invested, this decision is the responsible and prudent course of action to ensure the state has the right tools to support our operations, save money over the long term, and improve service to Iowans.”

In 2019, the state selected Workday to update its legacy systems for human capital management and financial management with modernized, cloud-based systems. The state will continue to use Workday for its human resource and payroll system, the announcement said.

The implementation of Workday’s financial management system was delayed last summer after potential issues were identified that would affect a number of state business processes. Since then, the Department of Management and the Office of the Chief Information Officer have determined the platform will not meet some of the state’s needs.

The state has negotiated a contract with its current vendor, CGI, to upgrade the state’s legacy financial systems with a cloud-based solution. CGI did not have a cloud-based solution when the state selected Workday in 2019.

The project will begin April 1 and is estimated to be complete in March 2024. According to the release, a preliminary review suggests this option is more compatible with the state’s requirements and current business operations and will result in less disruption to internal functions and lower ongoing costs over 10 years.