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Home My WebLink AboutResolutions - 2021.11.10 - 3501040AKLANUFt- CO U N T Y M I C H I G AN BOARD OF COMMISSIONERS November 10, 2021 i\HSCELL ANEOUS RESOLUTION #21-464 Sponsored By: Gwen Markham IN RE: Financial and Human Capital Management Replacement Project - Implementation Extension, Support, and Enhancement Chairperson and Members of the Board: WHEREAS the Oakland County Board of Commissioners authorized Miscellaneous Resolution (MR) #18252 in July 2018 to replace the County's PeopleSoft financial system and human capital management system with the Workday product; and WHEREAS MR #18252 authorized transfers totaling S13,780.841 during FY 2018 — FY 2020 for the Workday project implementation; and WHEREAS the Workday project was planned as a phased implementation with an aggressive two (2) year timeline: and WHEREAS Phase I of the implementation went live July 18. 2020, and consisted of Human Resources. Time Tracking, and Payroll; and WHEREAS MR #20632 authorized an additional S5.200,000 toward the project for Phase II, which consists of the financial, procurement, and treasury applications: and WHEREAS there are many factors that have contributed to the project implementation delays, such as resource demands, resource turnover, volume and complexity' of numerous integrations. as well as the continuing impact of the COVID-19 pandemic; and WHEREAS additional costs are necessary to complete the Workday implementation, including costs for Information Technology employees and contractors: the contracted implementer toward change management. budget planning tool implementation; the annual financial reporting accelerator tool: additional support resources: PeopleSoft financial system application support; and integration costs from third -party applications: and 'WHEREAS the County is able to leverage $1,124,146 previously appropriated toward the project extension: and WIIEREAS as explained in the attached memo. with costs detailed in the attached Exhibit 1, the estimated additional cost required to complete the Workday implementation project is S41945.628 �vith SL595,142 associated with project delays, $1.324,004 associated with additional support needs, and $2.026,482 associated with additional components not previously budgeted; and NVHERE AS finding will be covered by the allowable use of American Rescue Plan Act (ARP) calculated revenue loss dollars. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes an additional appropriation of $4,945,628 for the Financial and Human Capital Management System Replacement Project BE IT FURTHER RESOLVED that $4.945.628 be transferred from the ARP Local Fiscal Recovery Fund (#21285) Project #100000003600 to the Financial and Human Capital Management Replacement Project Fund (#42100) Project #100000002816, BE IT FURTHER RESOLVED that the FY 2022 budget is amended as reflected in the attached Schedule A. BE IT FURTHER RESOLVED that monthly project implementation status update reports shall be provided to the caucus chairs of the Oakland County Board of Conunissioners. BE IT FURTHER RESOLVED prior to any further implementation activities progressing for the Financial and Hunran Capital Management Replacement Project. a separate resolution for additional program funding must be adopted by the Board of Commissioners. Chairperson, the following Commissioners are sponsoring the foregoing Resolution: Gwen Markham, Date: November 16, 2021 David Woodward, Commissioner Iau Date: November 16. 2021 Hilarie Chambers. Deputy County Executive Il 4;�� Date: Novem ber 17, 2021 Lisa Brown, County Clerk 1 Register of Deeds COMhIITTEE TRACKING 2021-11-03 Finance - recommend to Board 2021-11-10 Full Board VOTE TRACKING Motioned by Commissioner Gwen Markham seconded by Commissioner Yolanda Smith Charles to adopt the attached Budget Amendment: Financial and Human Capital Management Replacement Project - Implementation Extension, Support, and Entrancement. Yes: David Woodward, :Michael Gingell. Michael Spisz. Karen Joliat, Kristen Nelson, Eileen Kowall. Christine Long. Philip Weipert, Gwen Markham, Angela Powell. Chuck Moss, Marcia Gershenson, Yolanda Smith Charles, Charles Cavell. Penny Luebs. Janet Jackson, Gary McGillivray, Robert Hoffinan, Adam Kochenderfer (19) No: None (0 ) Abstain: None (0) Absent: (0) The Motion Passed, ATTACHMENTS 1. workday memo finance cane oct 2021 w attach ?. Schedule A Bud Arad- Financial & Human Capital Mgmt System Replacement Project -Project Delay- Support-Addl System Components STATE OF MICHIGAN) C'OUJNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland. do hereby certify that the foregoing resolution is a tare and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on November 10. 2021, 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 Circuit Court at Pontiac. Michigan on Wednesday. November 10, 2021. Lisa Brown, Oakland Courrtr Clerk "Register of'Deeels MOAKLANDTO`!r� COUNTY MICHIGAN OAKLAND COUNTY EXECUTIVE DAVID COULTER TO: Finance Committee Members FROM: Sean Carlson, Deputy County Executive Kyle I. Jen, Director, Management and Budget Mike Timm, Director, Information Technology RE: Financial System Implementation DATE: October 22, 2021 The County Executive Administration is requesting $4.9 million in American Rescue Plan funds to complete and enhance the implementation of the financial components of the Workday Enterprisewide Resource Planning (ERP) system. Of this total, $1.6 million is directly attributable to the delay in planned go -live date for the new financial system. The remaining funds will be utilized for necessary project supports and system components not previously budgeted. This memorandum provides background on the project, summarizes current project status, describes supports being added to ensure a successful implementation, and details the budget needed to complete the project. Project Background Following a competitive bid process, project work for the Workday implementation began in 2018. The system was designated to replace Peoplesoft as the platform for the County's integrated HR, payroll, procurement, and financial system. Peoplesoft was implemented for HR in 1998 and Financials in 2006. The Peoplesoft software had become outdated and an upgrade was cost prohibitive relative to implementing a new system with enhanced functionality. While Workday is the software platform being utilized, Accenture is the contractor assisting the County with implementation of the software. The project is being implemented in two phases: • Phase I encompassed Human Capital Management, Absence, Benefits, Compensation, Learning, Time Tracking, and Payroll. This phase successfully went live last July. Employees are currently entering time, taking training, managing benefits, making payment and withholding elections, and receiving pay through Workday. • Phase II of the project includes Financial Accounting, Budgets, Banking & Settlement, Customer Accounts, Supplier Accounts, Business Assets, Projects, Procurement, Grants Management, and Expenses. This Phase was originally scheduled to go live 10/1/20. 2100 Pontiac Lake Road i L. Brooks Patterson Building 41 W I Waterford, MI 48328 1 Fax (248) 452-2915 1 OakGov.com In addition to configuring core functionality, implementing an ERP system requires building integrations to other County IT systems that impact financial operations (e.g., the County's property tax collection system). For Oakland County, approximately 50 such integrations are being built for the Phase II financial implementation alone. A total of approximately 50 County staff have been involved in the project in some capacity over the last several years, including approximately 28 full-time exempt staff, across Fiscal Services, Human Resources, Purchasing, and the Treasurer's Office are assigned to the Workday project. These staff are completing project -related work on top of their normally assigned job responsibilities. Additionally, 9 IT staff and contractors are working on the project full time (particularly system integrations). Last year, the go -live date was pushed back to October 1 of the current year due to a number of reasons, including: The focus on Phase I implementation ® Competing demands including the distribution of federal COVID funding through County grant programs Y The negative impact of remote work on collaborative project work on problem solving These factors have continued to negatively affect progress on the project over the last year. The original project budget was $13.8 million. An additional $5.2 million was appropriated by the Board last December. Current Project Status In April of this year, two key decisions were made: first, a dedicated full-time project manager was needed for Oakland County. Second, the pace of work, including contractor and Accenture billings was reduced, in order to reduce employee burnout and better plan a realistic implementation date. In July, the County brought on a full-time project manager with experience managing Workday projects (including recently recalibrating the plan for a major municipality) to assess project status and build a stronger and more detailed plan for completing implementation. This assessment found that, while County staff were continuing project work at a steady pace, four key gaps existed: County project team members understood their individual pieces of the system. However, they had not been given the larger view of the system needed to understand cross functional impacts of system changes. There was insufficient visibility and transparency for project leadership into timeline, testing, and issue resolution, which was resulting in inefficiencies. 2100 Pontiac Lake Road i L. Brooks Patterson Building 41 W i Waterford, MI 48328 1 OakGov.com • The project lacked a centralized storage system with up-to-date and well -maintained project documentation needed for effective implementation. • The impact of COVID-19: remote work allowed the project to continue, but made communication, collaboration, integration, and testing — all key project activities -- less efficient. As described below, specific steps are being taken to address each of these gaps. Further, we have built a more detailed plan for completing implementation with a planned go -live date of May 9 of next year. This plan will allow for more precise project tracking so that any slippage can be addressed as quickly as possible. A summary of this schedule is attached. Project Supports Supports being added to ensure a successful implementation next May and effective County financial operations after implementation include the following: Bringing on a full-time project manager to manage project work more comprehensively, ensure that key risks and slippages are addressed in a timely manner, and improve the efficiency of system configuration decisions. • Adding additional contract resources to assist with project documentation, system testing, cross functional analysis, and security analysis, in order to reduce system defects and alleviate demands on County staff. • Providing additional change management and training support to ensure County staff have the resources needed to better understand the system and carry out their job functions. Project Budget Going forward, $4.9 million is needed to complete implementation, ensure project success, and fund components previously budgeted. A detailed budget is attached. The remaining project costs are broken down into the following categories: $1.6 million for costs related to delaying the go -live data for the new system. This is the net result of $2.7 million in contractor and IT cost going forward less $1.1 million that remains from the existing project budget as a result of slowing work in recent months while the new plan was built. $1.3 million for the costs of the project supports described above • $2.0 million for costs of additional system components needed for effective County operations that were not included in the original project budget. This includes: o Resources needed for functional and technical stabilization of the system in the nine months following system go -live o A budget component to streamline annual production of the County's budget and provide tools for long-term budget forecasting and planning 2100 Pontiac Lake Road i L. Brooks Patterson Building 41 W i Waterford, MI 48328 1 OakGov.com o A component to streamline production of the county's Annual Comprehensive Financial Component o A Workday -specific help desk solution to ensure effective and timely issue resolution for County users o Replacement of the County's outdated cash register system Under federal guidance for the $244 million in Local Fiscal Recovery Funds the County is receiving under the American Rescue Plan, these costs are an eligible expense within the subset of funding attributable to the County's calculated revenue loss for FY 2021 that can be utilized for provision of government services. We view this as an appropriate and effective use of that funding given the substantial impact the COVID-19 pandemic has had on this project over the last 20 months. Please don't hesitate to reach out to us with any questions you may have prior to the Finance Committee meeting. Attachments (2) 0 2100 Pontiac Lake Road i L. Brooks Patterson Building 41 W i Waterford, MI 48328 1 OakGov.com ° Configuration Review g "'•"�:'' ; :`..•. E2E Testing Production Dress :3 •.; i:_;:,-'=... Business Process E2E Tenant Build Production Support Rehearsal Postproduction Review E2E Testing Preparation Model Model 'End User Training Support Cross -Functional Training Preparation Training Material Production Migration Project Close Out Review Cutover Planning = Cutovar Checklist MAY 9TH GO -LIVE Impact Analysis Jul Aug Sep Oct Nov Dec 0All>L COHNTY M7_t H"I G_A_N 06 07 Jan Feb QG Mar Apr May June Jul Q 04 NANCIAL & HUMAN CAPITAL MGMT SYSTEM REPLACEMENT PROJECT IHIBIT 1- PHASE 2 PROJECT DELAY, PROJECT SUPPORT, & ADDITIONAL SYSTEM COMPONENTS NEEDED _ scription zenture (Sierra Cedar acquired by Accent_ure) nplementation hange Management Activities: Job Aids (December 2021) _ Learning Programs & End to End Workflow (March 2022) Lunch & Learns (June 2022) Annual Comprehensive Financial Report (ACFR) Accelerator (for FY 2022 ACFR ) Adaptive Planning Implementation (budget planning -for FY 2024-FY 2026 budget process) :centure (Sierra Cedar acquired by Accenture) Subtotal orkday elpdesk supportsystem orkday Subtotal Formation Technology FLabor- incremental. Additional hours for Integrations, Reports, Tenant Builds due to time requirements Additional hours for new Integrations and post go -live technical support oftware Maintenance/Additional Third Party Integration costs/Additional Equipment Costs Additional System Components Total One -Time Project Delay Project Support Needed Estimated Costs $930,000 $0 $0 $930,000 159,000 159,000 33,920 I 33,920 23,320 23,320 237,440 237,440 463,750 463,750 930,000 216,240 701,190 1,847,430 160,000 160,000 160,000 160,000 1,211,207 1,211,207 532,566 532,566 Rimini Street- PeopleSoft Maintenance Support _ _ 172,4751 _ _ 172,475,E Siteminder Software for PeopleSoft Access 87,503 87,503 Bottomline (check / remittance advice) 17,100 17,100 McAfee Server Licensing 6,970 6,970 Vermont/ RecTrac System Modifications 1,150�, 1,150 Devnet System Modifications 31,500 31,500 Northstar System Modifications 14,175 14,175 Point of Sale Replacement - Capital Costs 148,500 148,500 Formation Technology Subtotal 1,542,080 !I, 681,066 2,223,146 :her Contracted Services Guidehouse Project Management services I, 450,000 450,000 Guldehouse support resources 537,400 ! 537,400 Add'I Workday Post Go -Live "Optimization" Functional Support (9 months) 300,000 1 300,000 :her Contracted Services Subtotal i 987,400, 300,000 1,287,400 -and Total Estimated Costs before Contingency $2,472,080 $1,203,640 _ $1,842,256 _ $5,517,976 1% Contingency applied to Grand Total Estimated Costs $247,208 $120,364 $184,226 $551,798 'and Total Estimated Costs with Contingency $2,719,2e8 $1,324,004 '', S2,026,482 $6,069,774 ;s Amount in Project from prior appropriations that can be used toward the above costs �I ($1,124,146) ($1,124, 146) - Iditional Funding Amount Requested $1,595,142 $1,324,004 $2,026,482 $4,945,628 SCHEDULE A OAKLAND COUNTY, MICHIGAN FISCAL YEAR 2022 FINANCIAL & HUMAN CAPITAL MANAGEMENT SYSTEM REPLACEMENT PROJECT - PHASE II EXTENSION - SUPPORT - ADDITIONAL SYSTEM COMPONENTS FY 2022 AMENDMENTS DEPT PROGRAM ACCT FUND AFF. OP UNIT ACCOUNT NAME ARP LOCAL FISCAL RECOVERY FUND (#21285) Project Business Unit GRANT, Project #100000003600, Activity A Revenue 9010101 133095 610313 Federal Operating Grants $ 4,945,628 Total Revenue $ 4,945,628 Expenditures 9010101 133095 788001 42100 Transfer Out - HR-Financial System Project $ 4,945,628 Total Expenditures $ 4,945,628 HR - FINANCIAL SYSTEM REPLACEMENT PROJECT (#42100) Project Business Unit MAJOR, Project #100000002816, Activity A Revenues 9016001 152130 695600 21285 Transfer In- ARP Fund $ 4,945.628 Total Revenues $ 4,945,628 Expenditures 9016001 152130 731458 Professional Services $ 1,710,684 9016001 152130 730373 Contracted Services 346,825 9016001 152130 731773 Software Rental Lease Purchase 160,000 9016001 152130 731780 Software Support Maintenance 284,048 9016001 152130 750154 Expendable Equipment 148,500 9016001 152130 773630 Info Tech Development 1,743,773 9016001 152130 730359 Contingency 551,798 Total Expenditures $ 4,945,628 frOAKLANDFn- COUNTYM I C H I GAN BOARD OF COMMISSIONERS AMENDMENT IN RE: SPISZ AMENDMENT #1 BE IT FURTHER RESOLVED that monthly project implementation status update reports shall be provided to the caucus chairs of the Oakland County Board of Commissioners. VOTE TRACKING - Board of Commissioners Motioned by: Commissioner Michael Spisz Seconded by: Commissioner Michael Gingell Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Chuck Moss, Marcia Gershenson, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Gary McGillivray, Robert Hoffman, Adam Kochenderfer (19) No: None (0) Abstain: None (0) Absent: (0) The Motion Passed. fr0,AKLANDF!!- CO U N T Y M IC H I G A N BOARD OF COMMISSIONERS AMENDMENT IN RE: SPISZ AMENDMENT #2 BE IT FURTHER RESOLVED prior to any further implementation activities progressing for the Financial and Human Capital Management Replacement Project, a separate resolution for additional program funding must be adopted by the Board of Commissioners. VOTE TRACKING - Board of Cormmissioners_ Motioned by: Commissioner Michael Spisz Seconded by: Commissioner Michael Gingell Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Chuck Moss, Marcia Gershenson, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Robert Hoffman, Adam Kochenderfer (18) No: Gary McGillivray (1) Abstain: None (0) Absent: (0) The Motion Passed.