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REPORT (MISC. #04287) October 21, 2004
BY: General Government Committee, William R. Patterson, Chairperson
IN RE: MR #04287 — DEPARTMENT OF MANAGEMENT AND BUDGET —
INTEGRATED E-FINANCIAL SYSTEM PROJECT — APPROPRIATION FOR
IMPLEMENTATION OF PHASE II
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The General Government Committee, having reviewed Miscellaneous Resolution
#04287 on October 11, 2004, reports with a recommendation that the resolution be
adopted.
Chairperson, on behalf of the General Government Committee, I move
acceptance of the foregoing report.
GENERAL GOVERNMENT COMMITTEE
General Government Committee Vote:
Motion carried unanimously on a roll call vote.
MISCELLANEOUS RESOLUTIO1\ #04287 October 7, 2004
BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON
IN RE: DEPARTMENT OF MANAGEMENT AND BUDGET - INTEGRATED E-FINANCIAL SYSTEM
PROJECT - APPROPRIATION FOR IMPLEMENTATION OF PHASE II
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS on March 14, 2002, the Board of Commissioners adopted M.R.
#02043 authorizing acquisition of PeopleSoft licenses thereby enabling
commencement of the Integrated E-Financial System Project, components of
which included e-procurement, enhanced time and labor reporting, project
costing, an Internet portal for on-line payment, and activity based
management, budgeting and financial reporting; and
WHEREAS on November 20, 2003, the Board of Commissioners adopted M.R.
#03326 authorizing the appropriation of $2,895,812 from the Designated
Fund balance for the E-Financial System implementation and $1,500,000 from
the Designated Fund Balance for Data Privacy and Security to fund Phase I
of the E-Financial System implementation.
WHEREAS Phase I of the Integrated E-Financial System implementation,
which included the implementation of enhanced Data Privacy/Security
Technologies, a replacement for the legacy Time & Labor System, Human
Resources Self-service applications, and other Human Resources System
Enhancements, is near completion; and
WHEREAS the Integrated E-Financial System Project optimally requires
implementation of Phase II, currently planned for execution over the next
fiscal year with an estimated cost of $6,474,928; and
WHEREAS this resolution applies only to Phase II of the Integrated
E-Financial System Implementation Project and neither commits the County
to the funding or execution of future phases of the Project, nor requires
the execution of future phases to be a successful, value-added endeavor;
and
WHEREAS Phase I of the Integrated E-Financial System Implementation
Project when completed on time is reconciled to be $802,990 under budget;
and
WHEREAS $802,990 is favorable from Phase I funds and are available
in the "Major Departmental Support Projects Fund" and could be applied
towards the Phase II implementation costs; and
WHEREAS the County Treasurer has committed $2,000,000 from the
Delinquent Personal Property Tax Administration Fund to support the Phase
II implementation; and
WHEREAS the balance of $3,671,938 is required for the Phase II
implementation and could be transferred from the continuation of the
Designated Fund Balance for Phase II of the Integrated E-Financial System
Project from the fiscal year 2004 close;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes the commencement of Phase II of the E-Financial
System implementation.
BE IT FURTHER RESOLVED that the Oakland County Board of
Commissioners authorizes an appropriation of $3,671,938 from the
Designated Fund Balance for Phase II of the E-Financial System
implementation; and $2,000,000 from the Delinquent Personal Property Tax
Administration Fund to fund Phase II of the E-Financial System
implementation.
BE IT FURTHER RESOLVED that the Board authorizes that the favorable
balance of $802,990 from Phase I funds in the "Major Departmental Support
Projects Fund" be allocated to support the Phase II implementation.
BE IT FURTHER RESOLVED that the appropriation be transferred to the
"Major Departmental Support Projects Fund" (436).
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
BE IT FURTHER RESOLVED that the FY 2005 Budget be amended, as
specified below:
FY 2005
GENERAL FUND (101)
Revenue
90-150000-14000-1582 Planned Use of Fund Balance $3,671,938
Expenditures
90-310000-98436-8001 Transfer to Major Dept. Supp. Fund $3,671,938
$ 0
DELINQUENT PERSONAL PROPERTY TAX ADMINISTRATION FUND (704)
Revenue
22-170415-10000-1582 Planned Use of Fund Balance $2,000,000
Expenditure
90-370415-98436-8001 Transfer to Major Dept. Supp. Fund $2,000,000
$ 0
Chairperson, on behalf of the Finance Committee, I move adoption of
the foregoing resolution.
FINANCE COMMITTEE
E-Financial System Phase II Implementation Cost Estimates By Category
Schedule 1:
Training of Staff on PeopleSoft System
PeopleSoft Software and Hardware
Additional PeopleSoft Module Licenses
Project Manager
IT, Fiscal Services, and HR Staff Resources
Contingency
Sub-Total:
eVerge Professional Services
Sub-Total:
Less Phase I Unspent Fund Balance
Less Delinquent Personal Property Tax Administration Fund
Contribution
Total Requested From Designated General Fund Balance:
Phase II
$176,000
$1,120,363
$246,589
$51,500
$1,334,900
$742,954
$3,672,306
$2,802,622
$6 474 928
($802,990)
($2,000,000)
$3,671,938
OAKLAND
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E-Financial System
Implementation Project
Presentation to
the Board of Commissioners
COUNTY MICHIGAN
September 30, 2004
E-Financial System Scope
>The "E-Financial System Implementation Project" has
seven components that can be more cost-effectively
performe ld together / sequentially than separately:
• Data Privacy/Security Technologies Implementation
• Time & Labor Implementation
• Human Resources Self-service
• Human Resources Enhancements
• Financials Management Implementation
• Supply Chain Management Implementation
• PeopleSoft Portals and Analytics
2
Implementation Timeframe
Phase I: January, 2004 - Sept., 2004
• Data Privacy/ Security Technologies Implementation
'• Time & Labor Implementation
• HR Self-Service and Enhancements Implementation
>Phase II: Oct., 2004 - Sept., 2005
• Full KPMG Performance Series Replacement
(Financials and Supply Chain Management)
>Phase III and Beyond
• Implementation of Analytics Modules and Additional
PeopleSoft Portals
Implementation Conditions
Each Phase is independent from its predecessor
During and after each Phase, project status and
accomplishments will be provided to the Board
Subsequent Phase appropriation requests will be
contingent on the County's budget situation
4
Phase I Accomplishments To Date
>Internal E-Financial Project Web Site Launched and
Change Management Structure Implemented
>HRMS 8.8 Upgrade and Enterprise Web Portal with
Streamlined Sign-on and Password Administration Go Live
(Pilot Group)
>eApplications and HRMS Portal Pack Go Live (Pilot Group)
Numerous Phase I Efficiency Enhancements Realized (see
Attachment A) and elimination of 74% of identified
Gaps/Shadow Systems are in process
5
E-Financial System Phase I Project Rollout
• Time & Labor operational for FY2005
• Phase I eApplications Rollout to Pilot Group of 140 Users:
Board of Commissioners Central Services
Circuit Court Clerk's Office
Community & Economic Development
County Executive District Court
Drain Commissioner Facilities Management
Human Resources Information Technology
Mgt. & Budget Parks & Recreation
Prosecuting Attorney Public Services
Sheriff's Office Treasurer's Office
• Post-Go Live Rollout of OakSource and eApplications to All
Users by Q2-FY2005; in-process of training 4000 end-
users
6
Phase I Project Budget Detail
as of September 30th
Budgeted Actual-to-Date Percentage Budget
Expenditure Categories Phase I Used Expended Remaining
Training of Staff on PeopleSoft System 93,500.00 - 0.00% 93,500.00
PeopleSoft and Data Security/Single Sign-on Software and Hardware 626,451.00 626,451.00 100.00% -
Additional PeopleSoft Module and Licenses 40,000.00 40,000.00 100.00% -
Project Manager 50,000.00 - 0.00% 50,000.00
IT, Fiscal Services, and HR Staff Resources 1,155,284.00 1,004,404.00 86.94% 150,880.00
Contingency 714,382.00 205,772.00 28.80% 508,610.66-
Sub-Total: 2,679,617.00 1,876,627.00 70.03°X- 802,990.06-
eVerge Professional Services 1,519,417.00 1,519,417.00 100.00% -
Accenture Professional Services 751,000.00 751,000.00 100.00% -
Total: 4,950,034.00 4,147,044.00 83.78% 802,990.00 _
......
7
Implementation Phase Budgets
)1-he revised E-Financial System Implementation project
budget estimates by phase are as follows:
Phase I - Data Privacy/ Security Technologies, HR
Self-service and Enhancements, Time & Labor;
Actual cost: $4.1 million
• Phase II - PeopleSoft Financial System and Supply
Chain Management; Estimated cost: $6.5 million
• Phase III and Beyond - PeopleSoft Financial
Warehouse, Selected Portals and Analytics, and
Additional Enhancements, Upgrades, and Modules as
Justified by ROI
8
Phase II Implementation Budget
Budgeted
Expenditure Categories Phase ll
Training of Staff on PeopleSoft System 176,000.00
PeopleSoft Software and Hardware I 1,120,363.00
Additional PeopleSoft Module and Licenses 246,589.00
Project Manager 51,500.00
IT, Fiscal Services, and HR Staff Resources 1,334,900.00
Contingency 742,954.00
Sub-Total: 3,672,306.00
eVerge Professional Services 2,802,622.00
Total: 6,474,928.00
9
Implementation Phase Budgets - Updated
>The amount remaining in the Major Departmental
Support projects Fund at the end of Phase I is
$803k, or 16% of the budget
>While we are establishing a reserve for post-Go Live
contingencies, the balance remaining in the Major
Departmental Support Projects Fund could be used
to reduce the Phase II budget by up to 12%
10
Oracle vs. PeopleSoft
>USDOJ suit to block Oracle's hostile takeover of
PeopleSoft went to court in July. On September 10, the
federal judge cleared the way for the merger.
>Numerous hurdles have yet to be overcome, including:
• An EU anti-trust case
• DO3 appeal
• Civil suit against Oracle
>A recent article, stated, "Oracle's takeover deal is
predicated on slashing PeopleSoft's...development and
marketing costs."
>Oracle states that it is" committed to maintaining the
PeopleSoft software and...providing a superior future
product roadmap...supporting existing customers...[and
will] combine the best features of each company's
products."
Oracle vs. PeopleSoft
>If Oracle deal goes through...
• County is an Oracle database customer
.• Likely five-year migration horizon
• Full credit for license fees
• Well-defined migration path
12
Implementation Delay Risk Factor
• The Performance Series system and its third-party
components are outdated and many are no longer
supported by the vendor
• To keep the current version of Performance Series
operating, the County has not been able to perform key
upgrades to hardware and database / operating software
In other words, there is a domino-effect to upgrading
Performance Series. If an upgrade is performed to avoid
a failure, then numerous systems / features will have to
be upgraded.
• To keep Performance Series operating longer than FY05,
an infrastructure and risk mitigation upgrade will have to
be performed at a cost of $1 million minimum
13
Next Steps
>Secure Approval for Phase II
>Report Periodically to Finance Committee on Phase II
Progress
>Take Advantage of ROT/Gap Analysis Opportunities (see
Attachment B)
14
Conclusion
>Requesting authorization for an allocation of funds as
delineated in the proposed Miscellaneous Resolution to
allow thecontinuation of the E-Financial System
Implementation Project authorized by MR #02043 and
MR #03326
15
Attachment A: PeopleSoft Phase I
Functionality and Efficiency
Enhancements
E-Financial System Implementation Project
PeopleSoft Phase I ROI and Gap Analysis Status
A detailed Return on Investment (ROI) and Gaps/Shadow Systems Analysis was
performed in FY2003. Numerous opportunities for streamlining business
processes and eliminating duplicative files, spreadsheets, and databases were
identified. The ROI for the E-Financial System Implementation Project yielded a
likely 6-year payback with three phases of implementation spread out over three
consecutive fiscal years.
As Phase I drew to a close, a review of the Return on Investment (ROI) and
Gaps/Shadow Systems Analysis status shows that 74% of identified
gaps/shadow systems are in the process of being either eliminated outright or
streamlined via a business process re-engineering approach. Given that many
business processes involve many different PeopleSoft modules, and the fact that
Go Lives on new modules occur at the end of their respective phases, the ability
to eliminate or streamline gaps/shadow systems overlaps phases.
Presented below are functionality and efficiency enhancements that, when
combined with the elimination and streamlining of gaps/shadow systems, are
allowing us to begin realizing the cost avoidances and efficiencies that the ROI
was predicated upon.
PeocoleSoft Phase I Functionality and Efficiency Enhancements
1. HRMS 8.8 Upgrade / Expedited the PeopleSoft HRMS Upgrade to Release
8.8 — The Phase I implementation of self-service applications and PS Time &
Labor fostered the upgrading of HRMS to its most current release, easing the
interfacing and data sharing between PS applications.
2. HRMS 8.8 Upgrade / Re-Positioned HRMS to Expedite Future Upgrades —
The HRMS 8.8 Upgrade included re-configuring the set up and shifting how
various fields were being used to adhere with PeopleSoft standards. This will
greatly enhance the ease and speed with which the County will be able to
upgrade HRMS ia the future.
3. HRMS 8.8 Upgrade / General functionality improvements and efficiency
enhancements — Numerous functionality and efficiency enhancements
improvements were realized via the upgrade, such as:
• Enhanced search capability
• Enhanced Position Management
4. HRMS 8.8 Upgrade / eDevelopment — Over twenty course registration
spreadsheet files have been replaced, streamlining the current three-step
data collection and recording process to a single on-line step. Additional
spreadsheets recording course descriptions and codes have been migrated to
a self-service on-line process.
5. HRMS 8.8 Upgrade / Benefits Administration — Provided full function queries
and instant validation ot data entry.
6. HRMS 8.8 Upgrade / Replaced a Recruiting expenses Access database —
Tracking Recruiting expenses for open positions is now performed within
PeopleSoft, eliminating the use of a standalone database with restricted
access. On-line queries of Recruiting expenses by position, job fair,
newspaper advertising, date range, etc. can be performed ad hoc.
7. HRMS 8.8 Upgrade / Process improvement to synchronize Employer Paid
Benefits — Using Best Practices, the new process eliminated discrepancies
between the Estimated and Budgeted Employer Paid Benefits, thus ensuring
consistency between General Ledger entries and Payroll information reported
to the employees. Also, this process eliminated previously implemented
modifications on the paycheck and direct deposit advice forms.
8. HRMS 8.8 Upgrade / Streamlined primary job maintenance process — What
used to be a trial and error method of rectifying data is performed on-line in a
fraction of the time.
9. HRMS Portal / Enhanced access to information — The HRMS Portal
enhanced data access for County employees by providing staff access to
numerous reports and queries on-line from their desktops.
10. HRMS Portal / Company Directory on-line — Altered a delivered HRMS Portal
Pack view to provide a single point of active employee data to enable
effective contact during emergencies, e.g., last year's blackout.
11. HRMS 8.8 Upgrade / County-owned PCs is being tracked by employee, on-
line.
12. HRMS 8.8 Upgrade / Employee email addresses tracked in on-line User
Profiles to expedite contacts.
13. HRMS 8.8 Upgrade / New Employee Orientation scheduling process
streamlined — When a new hire is entered into the system, the Training Office
is now automatically notified to schedule the person for New Employee
Orientation.
14. HRMS Portal / Company Directory on-line — Altered a delivered HRMS Portal
Pack view to provide a single point of active employee business data.
Company Directory provides search capabilities to access employee business
title, address, phone number, and email address hyperlink to Microsoft
Outlook. Search by Department provides a list of all current employees for a
department, along with the business phone number, email hyperlink, and
employee hyperlifik to obtain employee's business information. Search by
Location provides the business location's main information phone and fax
numbers. The Company Directory can replace the County's Phone List that is
currently maintained manually by each department and is often out of date.
Updates to the Company Directory will be made by the system as employees
are hired, terminated, transferred, promoted, etc.
15. HRMS 8.8 Upgrade / Staff termination process streamlined — The system
generates e-mail notifications when employees are hired or terminated,
thereby eliminating the manual process of notifying IT, Purchasing, Garage,
and Security ID.
16. HRMS 8.8 Upgrade / FMLA eligibility determined on-line, real-time —
Departments have been trained to use HRMS for FMLA eligibility
determination.
17. HRMS 8.8 Upgrade / Replaced a CDL Licenses Access database — Renewal
tracking, including physicals and random MDOT-ordered random drug testing,
is now performed within PeopleSoft, eliminating the use of a standalone
database with restricted access. The status of all CD L's for county employees
can be queried real-time on-line.
18. HRMS 8.8 Upgrade / Eliminating shadow systems for tracking licenses and
certifications — Departments can now use PeopleSoft to track licenses and
certifications on-line in a common, centralized database.
19. Post Go Live Support / IT Help Desk — Analyzed the current IT help desk
support process and designed a new process to streamline support for Phase
I applications with the IT help desk.
20. eDevelopment / Course documents creation expedited — The new
eDevelopment application allowed for a query directly from PeopleSoft that
reduces the time required to create course sign-in sheets and certificates of
course completion. These were manual processes in the past.
21. eProfile Manager Desktop / Supervisory level provided staff a single point of
contact to their employee's business data and personal data — Supervisory
staff can view employee information and initiate employee changes such as
terminations, location moves, etc. This also enables them to contact their
employees during emergencies, etc.
22. eProfile / Manual personal Information form eliminated — Employees can now
review and maintain their own personal and professional profile information
on-line. This eliminates the annual process of manually updating employee's
personal information via the Personal Information form. HR no longer needs
to print the form, forwarding it to employees who review / edit, and then
manually inputting the changes into the system. Also, eProfile 'eliminates the
need for employees to complete a address change form and mailing it to HR
for entry into the system and filing in the employee's HR files.
23. eCompensation / Reduced phone calls from departments and employees that
HR receives regarding salary information or history — Employees can now
review or verify their own compensation history on-line, real-time.
24. eCompensation A Eliminated unnecessary job codes and the manual
maintenance of those codes — With the Multiple Components of Pay
implementation, employee salary rates are broken down into their various
components, e.g., base rate, bonus rate, and longevity. This will allow the
employee to view their compensation rate as it is actually set up instead of as
just a total rate.
25. eCompensation Mariager Desktop / Supervisory level staff able to view and
verify employee compensation history and request a salary change for their
employees on line — Viewing information on-line eliminated the need for
departments to maintain their own duplicative manual data entry of employee
information.
26. eBenefits / Replaced manual forms and processes — Employees can now
make name, beneficiary, etc., changes on-line, in real-time, thereby
eliminating manual forms and duplicative handling of data.
27. eDevelopment / Creation of languages database — Employees can now enter
which languages they are fluent in, thereby creating an on-line database for
HR to tap into as necessary.
28. eDevelopment / Creation of membership database — Employees can now
enter which associations / professional organizations they belong to, thereby
creating an on-line database for HR, M&B, etc., to refer to as necessary.
29.Time and Labor / Eliminated the custom Time & Labor legacy system —
Designed and developed an interface from PeopleSoft Payroll to the
Performance General Ledger in addition to the interface from PeopleSoft
Time and Labor to the Performance General Ledger. The customized
application and its ancillary processes, reports, and functions were "turned
off," allowing for a 100% vendor-supported suite of applications. This also
allowed for the elimination of an unsupported package called Rogue Wave,
which in turn allowed for the upgrade of the UNIX and Oracle software.
30. Time and Labor / Reduction and streamlining of reports — The interfacing of
PS Time & Labor and Payroll with Performance Series G/L required the re-
programming of reports generated by the custom Time & Labor legacy
system. Of the 45 reports, processes, and functions analyzed, 50% will be
eliminated. Of the 50% remaining, 25% will allow for queries instead of
complex reports and functions. Not only will this significantly cut back on initial
IT development and maintenance efforts, but will also provide an easier and
instant means for end users to access important Time & Labor information.
31.Time and Labor / KRONOS Interface — By creating an electronic interface
between the KRONOS timekeeping system at the MCF and Children's Village
and PS Time and Labor, a significant amount of duplicative manual data entry
was eliminated.
32. Time and Labor / Streamlined enrollment process — Designed and automated
the enrollment of existing employees into the Time and Labor system, thus
reducing over 250 hours of the Oakland County Time and Labor team's
workload.
33. Time and Labor / Streamlined query and enhancement process — Requests
for queries and other enhancements from IT has been significantly reduced
now that Payroll and other departments can "self-service" themselves on-line
in real-time.
34. Time and Labor / Eliminated manual Batch Rules process — Automated rules
verification on-line provided to eliminate manual verification.
Attachment B: Examples of
Anticipated Benefits and Measurements
Ph. Anticipated Benefits:
I 1. "Self-service *access to information
by s**taff and constituents via portal
II 2. Elimination of KPMG Performance
Series administration and support costs
I- 3. Reduction in hardcopy reporting and
III distribution costs
I- 4. Elimination of duplicative systems
III and full roll out of Portal to reallocate
staff time
I- 5. Elimination of custom systems
III
Measurements:
- Increase in usage of self-service portal
- Expenditure reduction for support services
- Reduction in printed reports
- Increase in downloads of reports from the
portal and PeopleSoft systems
- Checklist of systems to "turn off"
- Reduction in security administration databases
- Reduction in Help Desk calls
- Checklist of systems to "turn off"
17
Attachment B: Examples of
Anticipated Benefits and Measurements
Ph. Anticipated Benefits: Measurements:
II- 6. Enhanced, prbactive supply chain - Increased number of bidders
III management - Increased % of purchases via Web
- Enhanced turnaround time for RFP/bid process
- E-catalog purchasing by departments with pre-
approved, negotiated pricing
- Statistical analysis-based reduction in poor
performing vendors
- Enhanced early payment discount realization
- Enhanced volume discount capturing via
statistical analysis and selective re-negotiating
- Optimizing of purchase quantities
18
Resolution #04287 October 7, 2004
The Chairperson referred the resolution to the General Government Committee. There were no
objections.
Resolution #04287 October 21, 2004
Moved by Moss supported by Bullard the resolution be adopted.
Moved by Moss supported by Potter the General Government Committee Report be accepted.
A sufficient majority having voted therefore, the resolution be adopted.
Vote on resolution:
AYES: Coulter, Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII, Law, Long,
McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster,
Wilson, Zack, Bullard, Coleman. (25)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
October 21st, 2004 with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the, County of Oakland at
Pontiac, Michigan this 21st day of October, 2004.
G. William Caddell, County Clerk