1. City/County Joint ERP Implementation
By Ajay Gajjar, CPA, CMA, CFM, CIA, CTP, CGFO
November 16, 2012

2. What does ERP mean?
A. Energetic Reporting Program B. Everlasting Relaxation and Peace C. Everyone Reacts in Panic D. Enterprise Resource Planning

3. Topics Scope of the project Benefits Issues related to: -- Procurement
-- Management
-- Accounting

4. 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

5. ERP System Goals Increase efficiency
Improve managerial and operational effectiveness
Promote intergovernmental cooperation and participation
Reduce risk
Maximize human capital

6. ERP System Objectives Reduce total costs of system ownership
Streamline business processes through improved system integration
Standardize business practices across organizations
Promote accountability
Improve ability to track and measure performance

7. ERP System Objectives
f. Improve procurement management g. Eliminate redundant systems h. Protect sensitive data i. Improve ability to adapt to changing business and technical environment j. Reduce recovery time, if there is a disaster k. Better receivables management

8. ERP System Objectives
l. Instill common skill set across local government m. Attract, develop and retain talent

9. 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.

10. 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

11. ERP Contract Overview
5-Year Cost Summary ($000) Separate billing

12. 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)

13. Subledgers/Modules Purchased
Continued:
Human Resources and Self Service
Budgeting (Hyperion)
Payroll (Kronos)
Others

14. 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

15. Project Phases Wave 4 Self-Service applications, Advanced Procurement
Wave 5 Time Entry, Workforce Scheduling, and Payroll
Wave 6 Planning and Budgeting

16. Project Governance Executive Sponsors (Elected Officials)
Governance Committee
Executive Steering Committee
Project Managers (Consultant, City, County)
Functional Leads
Subject Matter Experts

17. Benefits of Joint Procurement and Implementation
Same consulting firm handles both
Save about $6.6 million

18. 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.

19. 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.

20. Project “Infrastructure”
Joint office space set up for the project at the County
County network IDs assigned for and scheduler access to all members of the ERP team including the AST consultants
Dedicated conference rooms
Dedicated training rooms

21. 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

22. Procurement Issues

23. 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.

24. 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.

25. Management Issues

26. 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.

27. 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).

28. 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

29. 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).

30. 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.

31. 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?

32. 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

33. 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

34. Accounting Issues

35. 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

36. Accounting Segments – General Ledger
Fund
Cost Center (Department)
Natural Account (General Ledger Account)
Sub Account (Function)
Activity (for management tracking*
Project (to assist reconciliation with subledger)
Future

37. Accounting Segments – Projects and Grants Subledger
P - Project number for grants and capital projects O - Organization (i.e. department) E - Expenditure natural account T - Task, a subdivision of a project A - Award, the funding source for a grant or capital project

38. 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.

39. 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.

40. How do you know if the conversion was successful?
Oracle Insight – an Oracle program to compare metrics before and after to see measure the change brought about by the ERP system.

41. 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)

42. Hillsborough County Contacts
Ajay Gajjar Assistant Finance Director Hillsborough County Clerk of Circuit Court (813) Eric Johnson Strategic Planning & ERP Implementation Hillsborough County BOCC (813)

43. City of Tampa Contact
J. Michael Fitzgerald, Jr. Accounting Manager City of Tampa Accounting Office (813)