city/county joint erp implementation by ajay gajjar, cpa, cma, cfm, cia, ctp, cgfo november 16, 2012
TRANSCRIPT
City/County Joint ERP
ImplementationBy Ajay Gajjar, CPA, CMA, CFM, CIA, CTP, CGFO
November 16, 2012
What does ERP mean?
A. Energetic Reporting Program
B. Everlasting Relaxation and Peace
C. Everyone Reacts in Panic
D. Enterprise Resource Planning
Topics
• Scope of the project• Benefits• Issues related to:
-- Procurement -- Management -- Accounting
Scope of the ERP Project
Joint ERP procurement and implementation by:
City of Tampa Hillsborough County:–Board of County Commissioners–Clerk of Circuit Court / Comptroller–Civil Service Board
ERP System Goals
1. Increase efficiency2. Improve managerial and operational
effectiveness3. Promote intergovernmental cooperation and
participation4. Reduce risk5. Maximize human capital
ERP System Objectives
a. Reduce total costs of system ownershipb. Streamline business processes through
improved system integrationc. Standardize business practices across
organizationsd. Promote accountabilitye. Improve ability to track and measure
performance
ERP System Objectives
f. Improve procurement managementg. Eliminate redundant systemsh. Protect sensitive datai. Improve ability to adapt to changing business
and technical environmentj. Reduce recovery time, if there is a disasterk. Better receivables management
ERP System Objectives
l. Instill common skill set across local government
m. Attract, develop and retain talent
Why are we doing this now?
We currently use FAMIS, which is no longer supported.
The number of separate computer systems will increase and become entrenched if we do not go to a single ERP system.
What did we buy?
• Licenses for Oracle E-Business Suite (EBS) version 12, Kronos, JobAps, and Vertex
• AST Corporation is the system integrator consultant for implementation
• Oracle on Demand will host the system for both the City and the County
ERP Contract Overview
5-Year Cost Summary ($000) Separate billing
Item County City TotalSoftware licenses 2,567 2,018 4,585Annual maintenance 2,658 2,090 4,748Hosting 3,041 2,122 5,163Professional services 8,482 6,226 14,708Interfaces 252 558 810Training 456 359 815Business Intelligence reptg 450 450 900Perfromance bond 219 168 387Contingency bucket 1,087 758 1,845
Total project cost 19,212 14,749 33,961
Subledgers/Modules Purchased
• General Ledger• Purchasing and Inventory• Accounts Payable, iSupplier, and iExpense• Accounts Receivable• Cash Management and Treasury Management• Fixed Assets• Projects and Grants• Business Intelligence (OBIEE)
Subledgers/Modules Purchased
Continued:
• Human Resources and Self Service• Budgeting (Hyperion)• Payroll (Kronos)• Others
Project Phases
Wave 1 Financial, Procurement, Projects/Grants, Core HR, Business Intelligence, Reporting
Wave 2 Code Enforcement (city of Tampa only)
Wave 3 JobAps, Benefits
Project Phases
Wave 4 Self-Service applications, Advanced Procurement
Wave 5 Time Entry, Workforce Scheduling, and Payroll
Wave 6 Planning and Budgeting
Project Governance
• Executive Sponsors (Elected Officials)• Governance Committee• Executive Steering Committee• Project Managers (Consultant, City, County)• Functional Leads• Subject Matter Experts
Benefits of Joint Procurement and Implementation
• Same consulting firm handles both
• Save about $6.6 million
Benefits of Joint Implementation
• Both City and County personnel assigned – twice the involvement for a higher quality implementation
• County and City personnel learn from each other and open up lines of communication for future collaboration.
Benefits of Joint Implementation
• Possible savings on procurements by making purchases against City contracts, and vice versa.
• Employees would have more marketable skills and job opportunities across employers using the same system.
Project “Infrastructure”
• Joint office space set up for the project at the County
• County network IDs assigned for e-mail and scheduler access to all members of the ERP team including the AST consultants
• Dedicated conference rooms • Dedicated training rooms
Project “Infrastructure”
• SharePoint set up for ERP for plans, documents, schedules, user guides
• Change managers at AST, County, and City• Purchased Oracle books for office library
Procurement Issues
How do you set the requirements?
-- hired a consultant to guide us through the process.
-- If the requirements are too stringent, all responses will be “nonresponsive.”
-- If the requirements are too vague, they will not be useful.
When will the core financial system go live?
• Our choice: April 1, which was pushed to May 1 due to a delay in negotiating the contract.
• Benefits: It gives us several months before the busy fiscal year-end period to work out any problems. It avoids the busy year-end period of time.
Management Issues
Modifications
• When Oracle upgrades are done, all modifications will need to be re-established (at a high cost in consultant or staff time).
• We are trying to minimize the number of customizations.
• Modifications are paid for jointly or separately depending on who benefits.
Historic Data
Data conversion is difficult and expensive. How much historical data should be converted?
• Our decision: 2 years of historic data and the current year in detail.
• Trying to convert data on active grants and projects (which are set up as inception-to- date).
New Business Processes?
• 3-way match vs. Instant 3-way match• Expense reports vs. iExpense• Journal Entries after the fact vs. time reporting• Cash controls vs. allocating budget by
Getting Information From Old System
• Reports from old system will be available on Spoolview (report viewing software).
• Old system with data through April 30, 2013, will be available for viewing only until the new budget system is implemented (Wave 6).
Transaction Detail
System Support Department will download transaction detail, year by year, just in case the details are needed for audits by:
- Federal Emergency Management Agency- Arbitrage audits by the Internal Revenue
Service, - Grant audits by state or federal grantors.
Superusers & Training
• What “superusers” do and why is it important to identify them early in the process?
• How will training be handled during and after implementation of all ERP waves?
Getting Staff Involvement
• Joint City/County meetings on requirements
• Joint City/County demonstrations by potential vendors
• Meetings early in the process to discuss “pain points” associated with the old systems
Why do we need Change Management?
• We overestimate the disadvantages of change and underestimate the advantages of change.
• Adapting to change is difficult. Some people fear losing their jobs to “automation.”
• Some sharing between City/County/AST Change managers
Accounting Issues
General Ledger Objectives
• Meets statutory reporting needs• Meets management reporting needs• As simple as possible• Room for growth and additional entities• BOCC and Clerk share General Ledger– For example, natural accounts are shared
Accounting Segments – General Ledger
FundCost Center (Department)Natural Account (General Ledger Account)Sub Account (Function)Activity (for management tracking*Project (to assist reconciliation with subledger)Future
Accounting Segments – Projects and Grants Subledger
P - Project number for grants and capital projects
O - Organization (i.e. department)E - Expenditure natural accountT - Task, a subdivision of a projectA - Award, the funding source for a grant or
capital project
Capitalization of ERP Costs
• Capitalize internally generated software such as actual programming work.
• We capitalize the ERP Director’s time, the salary cost of the consultant hired as the County’s project manager, and the cost of AST system integrator.
Shared Vendor File
• The same vendor file will be used for the City and County. But the vendor may be 1099 reportable at one entity and not the other.
• Solution: Use a code to distinguish City and County vendors, but use the same file. And possibly vendor maintenance by one area for both entities.
Oracle Insight – an Oracle program to compare metrics before and after to see measure the change brought about by the ERP system.
How do you know if the conversion was successful?
Other Governments With ERP Systems
• City of St. Petersburg, FL (Oracle)• Polk County, FL (Oracle)• Pinellas County, FL (Oracle)• Loudoun County/Loudoun County School
Board (Oracle)
Hillsborough County Contacts
Ajay Gajjar Assistant Finance DirectorHillsborough County Clerk of Circuit Court(813)[email protected]
Eric Johnson Strategic Planning & ERP ImplementationHillsborough County BOCC(813)[email protected]
City of Tampa Contact
J. Michael Fitzgerald, Jr. Accounting ManagerCity of Tampa Accounting Office(813)274-7101