City of Bartlesville, OK ERP Business Case



Attachment 13City of Bartlesville, OK ERP Business Case 2016Prepared By The City of Bartlesville, OK and GFOABartlesville, Oklahoma Business Case Analysis by Functional AreaTable of Contents TOC \o "1-2" \h \z \u ACCOUNTING PAGEREF _Toc433269886 \h 3Chart of Accounts PAGEREF _Toc433269887 \h 4Financial Reporting PAGEREF _Toc433269888 \h 5Grants PAGEREF _Toc433269889 \h 6Project Accounting PAGEREF _Toc433269890 \h 7Accounting - Future PAGEREF _Toc433269891 \h 8ACCOUNTS PAYABLE PAGEREF _Toc433269892 \h 10Accounts Payable PAGEREF _Toc433269893 \h 10Bank Reconciliation PAGEREF _Toc433269894 \h 11Purchasing Cards PAGEREF _Toc433269895 \h 12Accounts Payable - Future PAGEREF _Toc433269896 \h 14ACCOUNTS RECEIVABLE PAGEREF _Toc433269897 \h 16Receivables – Set Up PAGEREF _Toc433269898 \h 16Cash Intake PAGEREF _Toc433269899 \h 18Accounts Receivable - Future PAGEREF _Toc433269900 \h 19ASSET MANAGEMENT PAGEREF _Toc433269901 \h 20Asset Acquisition /Asset Tracking PAGEREF _Toc433269902 \h 20CIP Projects PAGEREF _Toc433269903 \h 21Asset Year-End Reporting PAGEREF _Toc433269904 \h 22Asset Transfers/ Disposal PAGEREF _Toc433269905 \h 23Work Orders PAGEREF _Toc433269906 \h 24Asset Management - Future PAGEREF _Toc433269907 \h 26BUDGETING PAGEREF _Toc433269908 \h 27Revenue Projections PAGEREF _Toc433269909 \h 27Budgeting Adjustment / Amendments PAGEREF _Toc433269910 \h 28Capital Budget Preparation PAGEREF _Toc433269911 \h 28Operating Budget Preparation PAGEREF _Toc433269912 \h 29Budget Preparation - Future PAGEREF _Toc433269913 \h 31Human Resources PAGEREF _Toc433269914 \h 33Benefit Enrollment PAGEREF _Toc433269915 \h 33Performance Evaluations/Employee Relations PAGEREF _Toc433269916 \h 34Recruitment PAGEREF _Toc433269917 \h 35Salary Change PAGEREF _Toc433269918 \h 36Separation PAGEREF _Toc433269919 \h 37Human Resources - Future PAGEREF _Toc433269920 \h 37PURCHASING PAGEREF _Toc433269921 \h 39Purchase Requisitions PAGEREF _Toc433269922 \h 39Contracts / Change Orders PAGEREF _Toc433269923 \h 40Inventory PAGEREF _Toc433269924 \h 41Receiving PAGEREF _Toc433269925 \h 41Purchasing - Future PAGEREF _Toc433269926 \h 42TIME ENTRY /PAYROLL PAGEREF _Toc433269927 \h 44Time Entry PAGEREF _Toc433269928 \h 44Payroll Processing/ Reporting PAGEREF _Toc433269929 \h 45COMMUNITY DEVELOPMENT PAGEREF _Toc433269930 \h 46Community Development Maintenance PAGEREF _Toc433269931 \h 46ACCOUNTING The County’s primary accounting system is the Select ERP solution; a product of Harris Computer Systems. There are four other primary systems that feed into the Select solution, which together, cover a majority of the business processes within the City. Northstar Utility Solutions (also a Harris product) is used for the water and sewer billing. Firehouse (Xerox product) is used for fire personnel scheduling. SleuthSystems is used by Bartlesville Municipal Court for case management and all accounting related to individual court cases. Hansen (an Infor product) is being used for work orders related to wastewater treatment. The City operates throughout the year on modified accruals; however, the enterprise funds report on a full accrual basis throughout the year. The operating funds and the proprietary funds follow the same business processes; meaning, they follow the same process rules for approving purchases, time approvals, and other typical operational processes. The diagram below depicts the current relationship between the primary accounting systems and the current reporting requirements.Diagram 1Chart of AccountsThe City’s primary chart of accounts resides in the Select ERP solution. All applications that integrate to Select must map to Select’s chart of accounts. The City of Bartlesville’s fiscal year ends June30.Current State of City’s Chart of Accounts: The current chart of accounts uses four segments:FundDepartmentAccountProjectIt was reported that all financial reporting comes from a single ledger; meaning, there are no separate reporting ledgersThe City does not need to abide by a State Chart of Accounts for reporting purposesThe City does need to report financials related to waste water and water to a Water Resource BoardThe City would like to have year-round GAAP statementsThe City has spent the past several years re-designing the chart of accounts to facilitate managerial reporting and end-of year financial reporting. GFOA did not find any major issues with the current design of the core chart of accounts. (The City did report that they would like to remove inactive accounts, which can be removed during implementation of a future system.) The project accounts will need to be assessed to fit modern systems. (See Project Accounting)Based on interviews with City staff, GFOA understands that any interface between an external system and the general ledger requires a significant amount of manual work. For example, FTP data exported from NorthStar will be in summary journal entry form. The detailed data remains in North Star. Inter fund transfers are (49 and 59) (49 if from the general fund) (59 is to the general fund) Process Analysis Recommendations:Accounts that are candidates for removal will need to be identified as part of implementation. Funds that are no longer needed will be identified as part of implementation. Policies and Procedures Document Reference: Procedure File Number AC-7Process Maps:No process map was created for the Chart of Accounts sectionFinancial Reporting Although most of the administrative systems provide reporting functions, staff feels they are difficult to use, particularly when staff would like to modify an existing report or create new reports. As a work-around, staff uses Microsoft Office products to report information from the various systemsReported Gaps/Requirements: The City reports on a modified accrual basis throughout the year and a full-accrual basis for end of year reporting. The City would like to have capabilities to report on both views throughout the year.The City uses fifteen accounting periods. The first 12 are operating periods based modified accrual accounting. The thirteenth period is used for reconciling between modified and full accrual (i.e., GAAP adjustments). The fourteenth period is used for audit adjustments. The fifteenth period is the closing period.The following external stakeholders must be accommodated in any future solution:Water Resource Board – Financial reports from Wastewater and Water enterprise fundsLocal Taxing Bodies (e.g. County, School District) – Tax Increment Financing (TIF) activity (asset sales)State of Oklahoma State Auditor Report (SAI)Note: none of the above require the City to report activity based upon a separate chart of accountsThe City would like functionality that will allow them to create distribution reports (940 reports) and taxable wage reports in a future solution. The City is currently entering this information manually.The City would like functionality in a new solution that would create the State Auditor Inspector (SAI) reports for them within the system if possible. (Desired but not required.)Systems that interface to the primary general ledger will serve as sub-ledgers. Summary level data will be sent to the general ledger. Detailed transactions will remain within these specialized applications. (See individual functions)City would like to have two-way interfaces with external systems (i.e., outside of the ERP solution)Policies and Procedures Document Reference: Procedure File Number UB-58, Procedure File Number PA-10, Procedure File Number PA-4, Procedure File Number PA-7Process Maps:Fixed Assets, Year-End MapGrants The City does not have an automated grants accounting system. The City’s Grants Administrator tracks all grant activity through the financial system since grants are tracked as projects or funds within the system. Current Process for Grant Management: Departments are supposed to notify the Finance Office when they are applying for a grant. In most cases, the Finance Department finds out about a grant application after the application has been submitted.All grants are tracked by a Grants Administrator. The Grants Administrator is also responsible for working with the department to set up the budget for grant.The finance office runs quarterly reports The City Manager has the authority to pursue any grant without preauthorization. This privilege extended to department directors. They do not have to go to the City Council for authorization to pursue a grant. Many of the grants are multi-year grants Reported Gaps/Requirements: The City wants easier ability to track vendor activity by grant The City will need to track by fiscal year and sponsor year The City would like a system that is user friendlyIt is difficult to extract or export information from the current systemsSystem errors will occur without being invoked by a transaction or configuration change. Since the error messages are not intuitive, and root cause is not known, the City has to call contact the current ERP software company to fix the issues It’s difficult to conduct analysis, particularly ad-hoc analysis within the current systemThe City would like ad-hoc query functions for grants analysis (and for the entire system)The current system crashes on a regular basis The City’s grant policy will result in the finance department receiving funds throughout the year that were not budgeted for.The City faces challenges with grant reporting when they take or win grants, and fail to inform the cities designated grant manager. The grant manager needs to know the matching, revenue source, and transaction activity.Policies and Procedures Document Reference: Grants are reference in the record retention policy section, number 28Process Maps:No process map was created for the Grants section Project Accounting Current Project Accounting Design: Select’s chart of accounts contains a field for project accounts. Project accounts that begin with “99” (e.g., 99007) are projects that will remain in perpetuity (never be closed). All other project numbers use the first two starting digits to indicate the year that they were created followed by the sequential number assigned to project for that year (e.g., 04016) Reported Gaps/Requirements: Reporting fiscal year activity within “99” projects can be difficult, since there is no way of identifying year to year activity easily.Projects need to show income statementsThere is no way to restrict transactions for projects (and grants) that have restricted uses.GFOA observed that some of the projects being tracked are not true projects. In most cases, these types of projects were assets. The City tracks assets as projects so that expenditures related to the assets can be tracked easily. Similarly, programs were also tracked as assets; again, they were tracked as projects for easier reporting. Future Process: Assets will be accounted for through asset management functionality in a modern system.Funded programs and related activities will be tracked in a budget solution or ledger capable of tracking program related activities.Life-to-Date reporting functions for projects and programs will be accommodated through robust reporting functions capable of crossing fiscal years. Policies and Procedures Document Reference: Procedure File Number AC-7, Procedure File Number A-13Process Maps:No process map was created for the Project Accounting sectionAccounting - Future GFOA reviewed possible scope options for the future general ledger solution. Although modern ERP applications offer most of the functions that are being provided in the City’s five enterprise applications, GFOA is recommending that the City limit the scope to the following:The future general ledger should be limited to a primary ledger receiving financial data from other sub-ledgers.The Firehouse software is a solution highly unique to the Fire Administration. It is unlikely that an ERP application will have this functionality. Therefore, Firehouse should interface to the future solution.The NorthStar application contains detailed information about the utility accounts. A utilities solution implementation can be burdensome. GFOA is currently recommending that the City hold off on implementing a utilities solution and interface the current application to the future ERP solution instead. Once the future ERP system is stabilized, the City can explore the possibility of replacing the utilities application.The Sleuth application is also highly unique. Current ERP solutions are limited in case management functions. Implementation requirements related to CJIS compliance requirements may also be burdensome to the City, if the City decides to replace the court management system. GFOA is currently recommending that the Sleuth interface to the future ERP solution and only interface summary financial data to the future financial application.The Hansen permitting solution should be replaced by a future solution. Permitting functions are not highly unique and can be accommodated by modern ERP applications. It is recommended that the solution be incorporated into the future solution.The following diagram depicts the desired state for the future solution.Diagram 2ACCOUNTS PAYABLEThe accounts payable process at the city is a highly central one. All payments are issued from the Select accounts payable module and managed by the Department of Finance/Treasury. The only exception is that the City’s Municipal Court has a manual checkbook used for payments related to the court docket. Municipal Court payments are later reconciled (in summary form) into Select.Accounts Payable The City of Bartlesville has roughly 18,000 vendors in its current system. (A majority of the vendors represent utility billing refunds.) Payment runs occur every two weeks. Current Process for Accounts Payable Processing: Payments are authorized based upon the matching of the purchase order to the receiving document (invoice, packing slip with invoice, etc.) Departments receive the item and scan the invoice or packing slip into Fortis, which is the City’s document management system. After the receiving and scanning is complete, the Fortis system notifies the Department of Finance (via AP inbox) that the item is ready for payment.The Department of Finance is responsible for completing the three-way match in Select (Purchase Order, Receiving Document, Invoice) and notifies the Department that the item is ready for payment. The Department approves the payment.After Department approval, Finance creates a claim entry in Select.City Clerk/City Manager approves the final paymentThis list is compared against the City’s available cash balance At the beginning of the check run process Finance runs a trial batch of check payments to ensure that batch claim entries are balanced. If everything balances, they will run the final payment run, which generates a report of all checks to be issued.Finance runs the checksA final review of all printed checks is completed by FinanceThe checks are scanned into Fortis and referenced to the PO in the document management system.Once approved, Finance stuffs each check into envelopes and mails or distributes.Future Process: Future system will accommodate “one-time” vendor records that will be used to issue utility payment refunds. “One time” vendor records do not require extensive data and can be marked for purging easily.The City’s practice of imaging the supporting documentation is a good one and will be used to support the future solution.Departments will be responsible for completing the three-way match. The system will not approve a payment without the matching transaction.Electronic workflow will be used to approve payments and for Finance to review payment authorizations. For example, Finance can review all partial payment authorizations.The future solution should have better integration with commercial banks so that check runs, positive pay, or electronic payments can be accommodated.Since Sleuth functions are not part of the recommended scope, the manual checks may need to continue. An interface consisting of summary liability and expense data can be developed to reconcile Sleuth with the future ERP application.Policies and Procedures Document Reference: Procedure File Number AP-1, Procedure File Number AP-4, Procedure File Number AP-7, Procedure File Number AP-8, Procedure File Number AP-10, Procedure File Number AP-12, Procedure File Number AP-13, Procedure File Number AP-16, Procedure File Number AP-18, Procedure File Number AP-19. Process Maps:Purchase-to-Pay All Maps Bank Reconciliation The current bank reconciliation process is manual. The City reconciles by pulling the cash account activity from the City’s bank accounts and manually comparing this to the City internal records. Current Process for Bank Reconciliation: The finance department runs General Ledger cash transaction listingThe finance department reconciles bank deposits by payment typeThe finance department receives bank fileThe finance department clears paper checksThe finance department clears “electronic” transactionsThe finance department balances expenditures to bank statementThe finance department clears deposits to bankThe finance department identifies un-receipted electronic activityThe finance department assigns accounts and descriptionsThe finance department process receiptsReported Gaps/Requirements:The City has security on the current system that will not allow them to see other department’s information. Management would like to retain this functionality in a future solution. The City is not comfortable with setting up security protocols within the system and would like additional support when doing so in a future solution.The City would like to delineate transactions during the cash intake process. For example, staff should be able to assign the cash to the correct revenue accounts while simultaneously being able to accommodate pooled cash accounting.The current system puts all data in the first row when it is extracted from the system. The data is not easy to manipulate once it’s out of the system. The current systems is not user friendlyFuture Process: Creating reports is a big issue in the current system. The City would like functionality that will allow the easy creation of ad-hoc reports in a future solution. The City does not have import functionality in the current system. The City would like user friendly import functionality in a future solution. The City would like functionality that can facilitate City Council Members presentation and reporting, and/or dashboard functionality for City Council Members. The City would like bank reconciliation functionality in a new solution. CashieringThe City would like to take payments online (e.g. business licenses).They can do receipts for payments but there is no high-end cashiering functionality in the current systems (e.g. closing out a cash drawer) The City would like functionality that could eliminate or reduce batch processing and allow for the processing of data in real-time. Policies and Procedures Document Reference: Procedure File Number AC-52, Record retention policy number 26. Process Maps:Purchase -to-Pay, Bank Recon Purchasing Cards Full-time employees at the City are eligible to be issued a City purchasing card (credit card). Eligibility is contingent upon approval by their Supervisor or Department head. City purchasing cards are governed by a Citywide purchasing card policy, which the cardholder is expected to read, understand, and sign before being issued the card. Cards are issued by JP Morgan Chase. There is an annual blanket PO for JP Morgan. Department directors and a few others have credits cards. When the City buys something on a Credit-Card they invoice JP Morgan Chase, not the vendor. There is both a master statement and individual statements for credit card purchases. There are sign-offs for the card holder and the supervisor when a purchase is made. Current Process for Obtaining a Credit Card:The department looking to obtain a Credit Card will formally request the credit card by emailing a form to the finance departmentThe Finance Department will review the formThe Finance Department will submit the form to JP Morgan (City’s CC institution) JP Morgan Chase will the process requestThe Finance department will receive the cardThe City requires the person getting the card to complete a 1) Card Holder Agreement and a 2) Card Holder Guide. Upon acknowledgement, the cardholder receives the card and activates it.Current Process for Making Purchases with a Credit Card: The cardholder can only make purchases authorized by the City’s purchasing policy and internal Department procedures. (In most cases, the card has a spending limit that coincides with City purchasing policies.)Each billing period, Finance Receives the master account statement from JP MorganThe Department/ card holder also receives a statement from JP Morgan or from the City’s Finance Department. The cardholder is responsible for assigning account numbers to each purchase listed on the statement.The card holder signs the form and submits the statement to their Supervisor or Department head for approval. Upon approval, the Supervisor scans the invoice into Fortis to indicate payment approval (See Accounts Payable Process) The Assistant Finance Director confirms payment to JP MorganReported Gaps/Requirements: Currently the City has no method for reconciling Credit Card payments with vendor 1099’s. Future Process: JP Morgan may have a standard API to the future ERP solution, allowing a direct interface between the credit card issuer and the ERP solution. Cardholders will still be responsible for assigning accounts but may not need to wait until the invoice is received to assign the account numbers.Policies and Procedures Document Reference: There are no references to City provided credit cards in the policy document Process Maps:Purchase-to-Pay Credit Cards 1 and Credit Cards 2 Accounts Payable - Future The future accounts payable process will be tightly integrated and automated. The following is a summary of the vision for the future accounts payable process:Vendor Maintenance. Currently, staff members are required to maintain all records in the system. In the future, vendors will be required to maintain and update their records through a self-service web portal. To maintain integrity of the records, all vendor self-service transactions will be approved by authorized City personnel before being posted as final changes to the future ERP solution.Better vendor maintenance will facilitate 1099 reporting. By using an integrated vendor record system, the City can track all 1099able transactions.Matching. Departments will be responsible for completing the three-way match in the system. Once an item or service is received, the Department will scan the receiving document into Fortis and match the scanned record to the purchasing document. Once the invoice is received, the Department will scan the invoice and match the items to the receiving document and the purchase order. Once approved for payment, automated workflow will send the transaction to the Department of Finance for review and payment. Any errors on the transaction can be rejected and documented. Central automation will allow the City to track prompt payments and, perhaps, take advantage of early payment discounts.Credit Cards. After the future ERP solution is installed, the City should explore options with JP Morgan. Some ERP solutions have automated interfaces to JP Morgan, which allows card holders to use a JP Morgan portal to assign accounts prior to receiving the invoice. The interface also allows better integration between JP Morgan (the vendor) and the vendor record (within ERP).Bank Reconciliation. Similar to the JP Morgan set-up, the commercial banks currently being used by the City may already have standard interfaces to the future ERP solution. This will enable the City to reconcile bank transactions faster since files will be able to be sent directly from the bank into the ERP application. Modern applications also have comprehensive payment options that include check runs, special check runs, ACH, and debit card interfaces.Interface to Utilities. GFOA recommends exploring a possible automated interface between the utilities solution and the future ERP solution so that customer records do not need to be manually duplicated to accommodate refund payments.Diagram 3ACCOUNTS RECEIVABLEFor this project, it was decided that miscellaneous receivables will be accommodated in the future ERP application. Specialized receivables related to utilities and the library, for example, will remain within their respective systems. Miscellaneous receivables are receivables related to business licenses, fuel, golf, vending permits, and other miscellaneous receivables. To that end, miscellaneous accounts receivables are tracked and collected by the departments but are accounted for centrally by the Department of Finance and in Select. The City also bills for licenses and permits. Although most of these revenues are immediately collected (upon issuance), some will become receivables. This section addresses how the relationship between licensing and permitting works with the revenue collection process.Specialized revenue systems (e.g., utilities) also send summary revenue data to Select. This process is described in this section.Finally, the cash intake process is used extensively to match incoming revenue with outstanding receivables and current invoices.Receivables – Set Up The Department of Finance is responsible for setting up all miscellaneous receivables in Select. Finance is also responsible for most of the related invoices. This section describes the process for establishing a miscellaneous receivable.Current Process for Miscellaneous Receivables: The Department sends a notification of receivable to financeFinance receive the notificationFinance creates a the receivableFinance copies supporting documents and stores them manuallyFinance generates the invoicesFinance mails the invoices to customersFinance applies customer payments against receivables.Current Process for Permits and Licenses: Invoices are sent to current permit and license holder by July 1 of each yearHolders receive the invoice renewal notices and submit their paymentsPayments may be mailed in, or physically dropped off at the central cashier windowCity cashiers are responsible for applying the payment to correct revenue and receivableDunning:Open receivables are assessed a penalty after 30 daysIf still unpaid finance sends to collections. The City uses a contract collections manager. The collections manager is paid based upon the amount collection calls and successful collections. Finance reconciles against collection agent spreadsheet.Late accounts that are settled are placed onto the successful collection listCashiers and Finance apply the payments to the correct accountsReported Gaps/Requirements:The current receivables process requires the various City departments to send all documentation via email to the finance department. In some cases, all needed documentation is not included in email which can create complications. Receivables are currently tracked in a manual file. Currently, late fees are assessed manually. The current process for past due collections (and reconciling accounts with the collection agent) is manual, which can create errors. The Current system does not allow users to see any file information on monthly billings. Also, the system does not allow users to add enough information on the account file. Currently, all monthly billing is done manually. The system does not always pull the right information when running aging reports. In some cases, it pulls names of people that are current and paid-up to date and show them as past due.In a future solution, the City would like functionality that will allow the user to inquire individual fields selected by the user. In a future solution the City would like functionality that will allow the user to delete old/unused accounts (the current system keeps them for 20 plus years of history) Any future solution will need to interface with the NorthStar utility billing systemThe City would like functionality that would track the age of the payment due date (e.g. 30,60, 90 days overdue)Currently, all payments are received by mail or in person. The City would like functionality that will allow them to accept payments online (e.g. e-government functionality). This functionality is important for overall project buy-in from the community. The City would like functionality that would allow users to only see current vendors.The City would like functionality that will allow them to process business and liquor license fees throughout the year.Business licenses fees and beer/liquor licenses fees create issues in the current system. Currently, the City can’t invoice these fees until July 1st. When businesses want to pay in advance of July 1st, the City can’t take the payment. The City faces challenges with its collection agent used to follow up on unpaid receivablesThe current systems still shows past due balance from the prior finance system. It tracks all fees for a single person and shows all fees even if they are unrelated. (e.g. Business owners personal utility bill and their business license fee) Policies and Procedures Document Reference: Procedure File Number MB-16, Procedure File Number, MB-13, Procedure File Number MB-10, Procedure File Number, MB-7, Procedure File NumberMB-4, Procedure File Number, MB-1, Procedure File Number, UB-37, Record Retention Policy Number 7 Process Maps:Accounts Receivable, Miscellaneous Receivables and Permits and Licenses Cash IntakeCurrent Process: The City provides several options for collecting payments:A “cashier window” is available for customers to drop off payments. Cashiers are responsible for entering the payment into the correct cash receipting system and applying the payment.Cashiers use spreadsheets to balance the daily intake to the daily accounting in each application. The Golf Course balances its own cash drawers and makes deposits. The deposit data is emailed to Finance for daily reconciling.The City processes utility billing payments (including walk-ins) through the NorthStar utility billing system. PayPal is the credit card processor for customers wanting to pay online. The City also uses (iPay) which is an ACH payment from one in-town bank. In some cases, forms are used to indicate a receivable, however most receivables come in as emails. Each day, all credit card receipts are settled to the correct accounts.Reported Gaps/Requirements:Cashiers are required to be logged into three different cash receipting systems: Select, Sleuth, and NorthStar.Receivables for the next fiscal year cannot be paid within the current fiscal year It is difficult to match the payment to the receivable, particularly, when no invoice is referenced or a payment is received for several revenue items.Process Analysis Recommendations:Future process should have a single cashiering solution that is able to interface to all three future revenue systems (Sleuth, NorthStar, and the future ERP application).Online payments should be a regular option for customersPolicies and Procedures Document Reference: Procedure File Number CA-1, Procedure File Number CA-4, Procedure File Number CA-7, Procedure File Number CA-10, Procedure File Number CA-13, Procedure File Number CA-16, Procedure File Number CA-19, Procedure File Number CA-22, Procedure File Number CA-25, Procedure File Number CA-28, Procedure File Number CA-31, Process Maps:Accounts Receivable, Miscellaneous Receivables and Permits and Licenses Accounts Receivable - FutureSimilar to what is being used today by the City, the future accounts receivable system will consist of miscellaneous receivables and community development receivables (licenses and permits) being housed within the primary ERP solution. Other specialized receivables (e.g., utilities) will remain in their unique application and will provide summary data to the future ERP solution.Refunds related to the specialized receivables application and the ERP receivables solution will be accommodated by the future accounts payable function within the future ERP solution.Customer record maintenance can be distributed, to ease the burden on central Finance staff. Automated workflow would be used to review these records and post them as final records. Diagram 4ASSET MANAGEMENT For this project, “asset management” is defined as functions that are typical to enterprise asset management systems. These functions include: capitalized assets, capital projects, work orders, and inventory. Asset Acquisition /Asset Tracking Capitalized assets are defined by the City as all items over $5,000. Most capital assets are tracked in the central accounting system. New asset acquisitions; however, are not entered into the system until the end of the year. Detailed information about each asset (e.g., title, insurance, location, etc.) are stored on manual forms.The City considers anything worth more than $5,000 a capital asset. City departments submit this from back to the finance department with all the relevant data after making a capital purchase. The department the buys the asset and files the insurance with the insurance company. They then send the information over to the finance department with the “Fixed Asset Data Form”. The finance department also creates Fixed Asset Date Forms for purchases that are over $5,000 that they did not receive a Fixed Asset Data Form when they were purchased department. Departments can access the ERP Capital Asset data through a windows emulator.Current Process Asset Acquisition: All purchases require the Departments to complete a requisition form (See Purchasing)When an asset is purchased, the Departments must also complete a Fixed Asset Data Form to be used to provide detailed information about asset. Examples of additional information include insurance information, vehicle identification numbers, and other pertinent data.The department making the purchase will file related insurance and warranty within the department Finance receives the requisition form and the fixed asset data formFinance updates the accounting system with the new asset dataFinance updates the system at year endReported Gaps/Requirements:The City currently has a capital asset module; however it is not used to the full extent of its functionality. Assets are typically entered at the end of the year.Policies and Procedures Document Reference: Procedure File Number AC-13, Procedure File Number AC-7, Information is also contained in the City of Bartlesville Capital Assets Accounts, Classes and Lives section of the procedures document Process Maps:Fixed Assets, Acquisitions CIP Projects Assets under construction are also tracked by the City through the Capital Improvement Plan (CIP). Assets under construction are tracked as projects within the accounting system (See Accounting). Projects that are completed or accepted during the fiscal year are converted in the central accounting system from assets under construction to capitalized assets.For projects that are under construction Engineering maintains a “construction-in-progress” spreadsheet. “Construction–in-progress” projects are only tracked if they are not completed by year-end. This process is fully manual.Current Process CIP Projects: Asset under construction are tracked by:Running a financial report on all project accountsOpen projects are tracked by Finance on an outside spreadsheet to indicate that they are under constructionOnce a project is completed (or the project is accepted and put into service), the managing department completes the fixed asset data form and submits the form to Finance.Capital projects moved into service are entered by Finance into the central accounting system as capitalized assets.The finance department will then compile the list (subsidiary ledger or CIP governmental and CIP proprietary spreadsheet)Reported Gaps/Requirements:The project reports show active and closed projects. The only way the accountants know that a project is an asset under construction is by reviewing the asset under construction spreadsheet with Engineering.Projects are not closed in accounting system. As a result, project reports cannot delineate between completed projects and projects in progress.Policies and Procedures Document Reference: Procedure File Number AC-13, Procedure File Number AC-7, Information is also contained in the City of Bartlesville Capital Assets Accounts, Classes and Lives section of the procedures document Process Maps:Fixed Assets, CIP Projects Asset Year-End Reporting The year-end reporting process is used to fully account for capitalized assets. This includes calculating depreciation and final recording of asset disposition.Current Process for Assets Reporting and Transfers: Review the general ledger detailPull all CIP recordsCreate “Fixed Asset Data Forms” if they are missingAdded these to the working list of Fixed Asset Data FormsUpdate Fixed Asset modulePost to general ledgerRun depreciationPost to general ledger againFile reconciliationUpdate general ledger Current Process for Asset Depreciation: The useful life of an asset is recorded by asset class and maintained in central accounting system. Accountants assign the asset class when the record is created.The City uses straight-line depreciation to calculate end-of-year values. Construction projects placed into service in the middle of the year are assigned a mid-year value for depreciation purposes. All other assets are based upon the in-service date. Capital outlay expense items are used to record associated expenditures on the modified accrual basis.The central accounting system runs the depreciation at the end of the year.Reported Gaps/Requirements:Assets are not completely reported throughout the year (See also CIP)Detailed asset information is stored manuallyPolicies and Procedures Document Reference: Procedure File Number AC-13Process Maps:Fixed Assets, Year-EndAsset Transfers/ Disposal The process for transferring an asset is identical to the asset acquisition process. Asset disposals typically take the form of full disposal of the asset. In some rare cases, assets are transferred or auctioned. The City has an auction company that is based in the city that is typically used to auction assets. Current Process for Asset Transfers: All asset transfers are self-reported to the Finance DepartmentIf an asset is transferred during the fiscal year, Departments are supposed to complete a Fixed Asset Data Sheet with the transfer information and submit the form to Finance for proper recording; otherwise;Departments record transfer of assets at the end of year. Transfers at the end of the year also require the submittal of a Fixed Asset Data Sheet.Finance updates the system at year endCurrent Process for Asset Disposals: Asset disposals follow the same process as transfers.Assets that are disposed and not sold at auction are self-reported by departments through the Fixed Asset Data FormAssets that are to be sold are also self-reported; however, an outside auction house is responsible for the sale of the retired item. Finance tracks the revenue and applies the correct accounting after the sale.Although Departments should record disposition throughout the year, most activity is recorded at the end of the fiscal year.Reported Gaps/Requirements:Assets are not completely reported throughout the year (See also CIP). Assets under construction, for example, are maintained in a spreadsheet outside of the primary accounting system.The city would like functionality that will allow them to track their vehicles by VIN number, unit number or Title numberPolicies and Procedures Document Reference: Procedure File Number AC-13Process Maps:Fixed Assets, Transfers Work Orders There are three work order systems currently in operation at the City. Building Maintenance uses a cloud product called Maintenance Care. Hansen Asset Management is used to track maintenance on the wastewater infrastructure. NorthStar Utilities Solution is being used to issue and track work orders related to water infrastructure. None of the work order systems interface to each other. The City has Lucity software that has a work order module (street management) as well but has not been used. Current Process for Building Maintenance Work Orders: Department requests serviceIf the Department has access to Maintenance Care, the staff member may enter the service request directly into the system;Otherwise, the Building Maintenance or other authorized staff enters the service request into Maintenance Care.Building maintenance reviews requestBuilding maintenance prints the work orderBuilding maintenance prioritizes the work and assigns the work order to a work crew or crew memberOnce the work order is completed the Work crew reports the status of the work order as complete Building maintenance manager reviews the work and officially closes the work order in the systemRequestor receives notice that work order is closedCurrent Process for Wastewater Preventative Maintenance Work Orders:Most infrastructure work orders are driven by a preventative maintenance plan. The maintenance work orders are issued as scheduled by segment. Preventative maintenance is scheduled in the Hansen system by a Waste Water SupervisorWaste Water Supervisor prints the work orderWaste Water Supervisor assigns the work order to a work crewThe work crew completes the work order and reports status to the Work Crew Supervisor.The Supervisor is responsible for updating the Hansen work order system and closing the work order, if completed.Current Process for Outside Service Request related to Wastewater: Waste Water Supervisor receives complaint/service request and call crew to investigateCrew completes investigation and completes a manual formWastewater Supervisor enters data from manual form into HansenCurrent Process for Water Department: Work Orders Customer request service by contacting City Customer ServiceCustomer Service logs the work request in NorthStarCustomer Service prints work order to operations locationPublic works crew completes the service requestThe work crew reports the status of the work order on manual form and submits the report daily to Public WorksPublic Works administrative staff updates the work order status or close the work order in NorthStar, once it’s complete.Reported Gaps/Requirements:The city’s fleet maintenance is not using any work order system at this time. The process is fully manual.Crew scheduling is not in scope at this point but would be helpful down the line. Currently, there is no way to show the status of the work order in the system, or give feedback to a citizen about the status of the work order unless it is closed.Work orders are stored in three different systems The city would like functionality that tracks other types of service requests (e.g. IT tickets, parks tickets, etc.)The city would also like functionality that could receive and track 311 related request via e-government related functionality (online ticket submission) The city would like functionality that could track the amount spent on each work orderPolicies and Procedures Document Reference: Procedure File Number UB-19, Procedure File NumberUB-1, Procedure File Number UB-10, Procedure File Number MS-4, Procedure File Number MS-7, Procedure File Number MS-10, Procedure File Number MS-13, Procedure File Number MS-19Process Maps:Work Orders, Building Maintenance, Sanitation, WaterAsset Management - FutureAsset management in the future will be based on enterprise asset management processes. Central records for assets will be in a future fixed asset/capitalized asset module. Assets will be added through the purchasing process or through the project accounting process. Maintenance and improvements will also be tracked by asset throughout the year.Work orders related to the assets will track preventative maintenance and repairs. Since project resources are limited for this ERP implementation, the preventative maintenance work orders in the Hansen work order system will interface to the future solution. The same model will be used for the NorthStar system; meaning water customer related work orders will remain in that system. All other work orders will be maintained in the future ERP solution. This will allow the City to easily track maintenance, improvements, and annual costs related to each asset.The City is following standard practice for depreciating assets. This process will be replicated in the future system - The difference being that assets under construction will also be tracked in the same system. Depreciation will only be applied after the asset is accepted into service.Year-end reporting will be facilitated by fixed asset/capitalized asset records that utilize asset record numbers rather than project numbers. Assets under construction will also be identified as such. The end result will be a system that shows current assets, asset value, asset disposition, and assets under construction.Diagram 5BUDGETING The City’s Department of Finance is responsible for coordinating the budget preparation process. All budget preparation is completed on spreadsheets and managed on the City’s network. This section covers the revenue projection process, the operating and capital budget preparation process, and the budget amendment process.Revenue Projections All budget preparation steps are conducted in advanced of budget and fund transfers. Once budgets have been crated and fund transfers have been conducted, final revenue projections are compiled. Transfers, Grants, and miscellaneous receivables are tracked as revenue. Current Process Developing Revenue Projections: Run partial year trial balance periods 1 - 7Run partial year trial balance periods 1 - 12Run calendar year trial balance periods 1 - 7Create revenue estimate worksheetCreate current year revenue estimatesCreate budget year revenue estimates (based on 5 year trend)Prepare projection revenuesEstimate transfersCompile final revenue estimatesReported Gaps/Requirements:The City does not use the budget preparation module in the current system. All budget preparation is done manually. For all enterprise funds, the budget preparation and revenue projections are done outside the ERP system, manually by the various departments, and the numbers are given to the Finance Department to be added to the ERP. Reported Gaps/Requirements:For requirements the City will need to be able to estimate revenues for five year.Policies and Procedures Document Reference: Procedure File Number AC-79 Process Maps:Revenue ProjectionsBudgeting Adjustment / Amendments The budget is amended once a month, or as needed. Amendments are typically revenue driven, and involve the city collecting more revenue than was initially expected. Inter-fund transfers require Council approval. Intra-fund transfers require City Manager approval only. Transfers between funds are administered at one-twelfth (1/12) or balancing every month. Current Process for Budget Adjustments and Amendments: City departments request a budget amendmentIf the amendment is within the fund, it goes to the City ManagerCity Manager reviews and approvesThe budget is updatedIf money is not being moved within a fund a budget resolution is prepared by the finance departmentThe resolution is then approved by the City CouncilReported Gaps/Requirements:The amendment process is the same for capital and operating budget preparation. Policies and Procedures Document Reference: Procedure File Number AC-79Process Maps:Budget AmendmentsCapital Budget Preparation The City of Bartlesville currently maintains a 5 year Capital Improvement Plan. All capital projects for the City are managed by the Engineering Department. Both the City and State require a 70/30 split with 70% of all projects being covered by bonds. Projects from the long-term capital plan are prioritized ahead of request from city departments. Current Process for Capital Budget Preparation: Finance will run income statements on the accounts with project numbers (i.e., active projects)Engineering will complete estimated expenditures for the current yearFinance will estimate fund balance for the end of the year Each year, Departments submit project budget requests to EngineeringEngineering will review project requestsEngineering will then estimate project budgets for the new budget yearFinance will review project requests after Engineering reviewThe City Council will review project budget requests as part of the overall budget request process Approved projects are assigned project numbers and entered into the accounting system by the Department of Finance Project performance is monitored by Engineering throughout the year.Reported Gaps/Requirements:Procedure File Number AC-7, Procedure File Number AC-70, Procedure File Number AC-76, Information is also contained in the City of Bartlesville Capital Assets Accounts, Classes and Lives section of the procedures document Process Maps:Capital Budget Preparation, Page-1, Page-2Operating Budget Preparation The Finance Department uses what is called a “Directors Request Sheet” to track budget information internally. Under the current process the City Council can make changes, however they rarely do. If there are changes from the City Council the Finance Department will make the necessary changes. New budgets are opened on July 1st and the ERP system is updated.Current Process for Operating Budget Preparation:Finance department conducts a payroll data export from the ERP systems to a spreadsheetFinance updates the spreadsheetThen they do a payroll data validationNew positions are added Finance then runs an estimate of benefits calculationExpenditures are exportedThe Finance Department estimates expenditures for the current yearFinance then compiles expenditures by departmentThen then clear all budget documentsFinance then creates update budget schedulesThen they create budget submission foldersThey emails a notice regarding expected payroll to the department directorsDepartments validate estimatesDepartments prepare budget request packetThe finance department receives packet from the departments The finance department updates the budget documentCity Manager, city departments and finance have a budget discussionFinance department tracks budget changesFinance department locks in city manager’s budget request columnFinance department updates budget documentsFinance department validates all information The finance department creates a draft/city manager’s budgetThe City Council reviews the draft budgetIf changes are needed, the finance department will update the draft budget with the City Council’s changesThe City Council holds a final public hearingFinance and the city departments create an electronic version of the budgetThe department receive the electronic version of the budget and send it back to finance with the final approval Finance loads the final budgetReported Gaps/Requirements:Estimates for salaries expenditures can create issues in some cases. The current manual process uses excel spreadsheets that are linked to information with job classifications and other HR information. When there are vacant positions, information for pay is set at the midpoint so the potions can be tracked. This manual process is imprecise. Excel spreadsheets are emailed to the directors. The current estimation and validation process for payroll and non- payroll expenditures involves many manually processes and several manual handoffs. This can expose the process to errors. Doing the budget in Excel opens the city to errors and version control issues. Future Process: They would like functionality that will allow them to see several versions of the budget (e.g. City Managers budget, City Council’s budget, etc.) This will allow the City to easily track changes after department directors changes are made and help with negotiations. Policies and Procedures Document Reference: Procedure File Number AC-67, Procedure File Number AC-70, Procedure File Number AC-73, Procedure File Number AC-76, Procedure File Number AC-79, Procedure File Number AC-82, Procedure File Number AC-85 Process Maps:Operating Budget Preparation, Page-1, Page-2, Page-3, Page-4, Page-5 Budget Preparation - Future The City’s vision for a budget preparation is one that is integrated and is relatively intuitive to Department budget preparers. The following outlines this vision:Revenue Projections: The system accommodates up to five years of forecast data. Forecasting can be based on various models; however, trend analysis is most important. Seasonality is also important for forecasts to explain possible budget anomalies. To facilitate the preparation of revenue forecasts, the system should integrate well with the revenue accounts and be able to pull the financial data into revenue performance and estimate reports.Expenditure Estimates/Forecasts: The vision for expenditure forecast functions are similar to revenue forecasts; however, more emphasis is placed on budget year forecasts to gauge expenditure performance throughout the fiscal year. Project/Grant Budgets: The primary vision for these functions is to be able to compare overall project/grant budget planning to fiscal year budget appropriation. Estimates and budget preparation should also take into account overall (life-to-date) budge performance.Budget Preparation: The future budget preparation system should accommodate central budget administration for budget worksheet preparation; de-centralized budget request preparation; and budget preparation process tracking. Budget preparation worksheets should be intuitive to budget preparers. Budget administrators should have the ability to pre-load budget worksheets with past performance data, salary and position data, and revenue data. In short, budget administrators should be able to provide a complete budget picture to budget preparers. The system should accommodate versioning so that budgets can be locked down as they go through the budget process, yet progress can be tracked by the preparers. Budget preparers should also have the ability to forecast revenues and expenditures for at least five years.Diagram 6Human ResourcesThe City’s human resources and payroll system is centralized on Harris Select. All of the City Departments, including the enterprise funds and Municipal Courts follow the same central policies established by the City Manager’s Human Resources Department.Benefit Enrollment Benefits for all employees are managed by the City’s Human Resources Department. During open enrollment, employees elect their benefits online. On-going enrollment is elected by the new hires manually. Human Resources personnel update each benefit plan during the new hire process. The Fire Department receives funds from the City to administer their own benefits plans. Benefits for uniform Fire personnel (except for the Chief and the Assistant Chief) would be outside of the scope of this system. (NOTE: The Chief and the Assistant Chief have the option to participate in either plan but not both.)Current Process Ongoing Enrollment (Civilian and Police): New employee chooses benefits after participating in a benefits orientation meeting conducted by Human ResourcesHuman resources enrolls the new employee in the selected plansEmployee receives notice from the plan that they are enrolled Fire Union is responsible for ongoing enrollment for new Fire personnelCurrent Process Open Enrollment: Human Resources conducts a pre-planning session for open enrollment Human Resources conducts benefits roadshow (visit various city sites with information)The employees enroll through a benefits portal or manual processRun reports to see which plans employee selected Finance is notified of the selections and deductions employees makeFinance updates payroll with deductionsHuman Resources conducts an audit for payroll deductionsReported Gaps/Requirements:Vacation time begins accruing on an employee’s first day, but they cannot use the time for 6 months. This would need to be accounted for in a future solutionHR would like functionality that will allow employees to enroll in their annual benefits on-line. The City is using a system called HR Connections for this currently, but would like this functionality in a future new solution.HR would like to be able to run and exception list that could be easily created and sent to payroll.Policies and Procedures Document Reference: There are no references to the benefit enrollment process in the policies document Process Maps:Human Resources, Open Enrollment, On-going Enrollment Performance Evaluations/Employee RelationsEach year, Department Supervisors are supposed to conduct performance evaluations of employees. The current ERP system does not have this functionality. Recordkeeping is manual. (Records are scanned and maintained digitally.) Current Process for Performance Evaluations: Human Resources loads evaluation dates manually into Select and scans supporting documentation into FortisDepartments conduct evaluationsHuman Resources loads the data from the evaluations into SelectHuman Resources loads the information into SelectReported Gaps/Requirements:The City would like functionality that will allow grievance tracking. This is currently a manual process. The City would like functionality that would allow HR to add notes, and possibly show an employee photo. The City will need an interface to Assure-IDThe City would like functionality that would tell employees that they are about to lose their paid time off if they do not use it before the years end. The City would like functionality that would track pay historyThe City would like rules-based-controls for pay grades The City would like the ability to track training in a future solutionThe City would like an Employee Self Service (ESS) module with a smart phone application The City would like functionality that will allow direct emailing to employee’s through the system. System flags when certification is about to expireSystem flags when driver’s license or CDL is about to expirePayroll and or HR currently send reminders to departments to conduct evaluations. All employees must have an annual evaluation. Currently, HR and Payroll create reports with the names of employees who need an evaluation and are past due. This happens frequently. Policies and Procedures Document Reference: There are no references to the hiring process in the policies document Process Maps:Human Resources, Annual Evaluations RecruitmentHuman Resources is responsible for almost all recruitment activities at the City. The exception is that the Police Department and Fire Department use national and public safety recruitment resources for new sworn officers. Current Process for Recruitment [POLICE AND FIRE FOLLOW SIMILAR PROCESS BUT APPROVAL PATH IS DIFFERENT. UNION EXECUTIVE BOARD APPROVES JOB DESCRIPTIONS]: The Department looking to add staff sends a request for a new employee emailThe Human Resources department receives the email and gets approval from the City managerIf approved by the City manager Human Resources is notified that they can post the positionHuman Resources then prepares job descriptionIf the position is a new, the job description needs review by the department creating the position and approval from the City ManagerHuman Resources then post the position to the website and/or recruiting channels (e.g. local new paper, online job boards, recruitment firms)Current Process for Hiring: The applicant submits an applicationHuman resources logs the applicationHuman resources files the application (posting file) Human Resources close posting once a sufficient number of applications are received or the allotted time-frame to receive applications endsThe department hiring the employee receives all applications for the given positionHuman Resources reviews questions from the departments about applicationsThe department conducts the interviewThe department looking to hire selects a candidateFire/PoliceConduct internal screening and testingFire/Police make conditional offerAfter conditional offer acceptance, Department sets up background check and health screeningFire / Police make formal offerFire /Police negotiate start date and notify Human ResourcesHuman Resources conduct orientation (Then follow PAF on…)The applicant and the Human Resource Department agree on a conditional offerThe Human Resource Department run health and background checks through a third partThe Third part lets Human Resources know if they failedIf the pass a formal offer is made to the applicantHuman Resources notifies the department of the applications start dateThe department looking to hire will then create a Personnel Action Form for the new employeeHuman Resources will also create a Personnel Action Form for the new employeeThe Finance Department will update payrollHuman Resources will conduct and orientationHuman Resources will close the hiring fileReported Gaps/Requirements:The HR departments use an Excel spreadsheet to log and track applications. This is a fully manual process. Currently, The HR department must maintain a manual file for all applications that come in for a specific job. They typically send all applications to the department once the job is “closed”. Departments do all the vetting within their department after HR sends the applications over. HR is not always aware of the criteria the departments use to select a candidate. The City would like functionality that will allow them to conduct high-level applicant tracking (e.g. NeoGov). Currently, the City does not have any functionality in this area. Applicant self-service is a desired function for Human ResourcesPolicies and Procedures Document Reference: There are no references to the hiring process in the policies document Process Maps:Human Resources, Recruitment, Hiring-1, Hiring-2, Hiring-3Salary ChangeCurrent Process for Salary Changes:All salary changes are made in the system but they are also tracked manually on a spreadsheet. Changes in pay are done outside the ERP system, manually, on a spreadsheet and the new numbers are entered into the system. Reported Gaps/Requirements:The current system does not allow mass pay changes for percentage pay increases.The City would like to upload supporting documentation for mass change transactions (e.g., copy of contract) The City could benefit from functionality that would automatically remind department directors if evaluations are overdue. The City would like functionality that will track FMLASystem can accommodate mass leave changes such as updating leave for non-uniform personnel and update separate leave rules for uniform personnelThe City would like functionality that can do pay calculations and changes within the system.The City would like functionality that would track longevity. They City pays based on longevity but this is currently calculated outside of the system. Separation Current Process for Employee Separation: Employee notifies their supervisor that they are leaving the cityThe department then notifies Human Resources that the employee is leavingThe department then creates a Personnel Action Form (PAF)Human Resources receives the Notice and Personnel Action Form (PAF)Human Resources obtains all needed signatures Finance updates PayrollHuman Resources conducts the exit interviewHuman Resources notifies other pertinent departments (e.g., IT) about the separationGaps:When the exit interview is conducted by HR the date of separation can change depending on the needs of the employee and/or the City. Any future solution would need to accommodate this. Finding the official termination date can be an issue in the current systems. HR would like functionality that will show the real date the employee left the city so they don’t have to look at several different documents determine they separation date. Policies and Procedures Document Reference: There are no references to the separation process in the policies document Process Maps:Human Resources, Separation Human Resources - Future The City’s vision for a future human resources solution is a system that tracks an employee career from recruitment to retirement. The system should be flexible and scalable to accommodate outside recruiting tools, such as cloud recruiting services, yet also permit the City to run their own recruitment processes. The system should integrate with other City systems, such as IT security and the City’s badging system. The future system should also track career development and certifications. It should also provide functionality, such as employee self-service, which allows employees to elect benefits online or self-report life events. (Automated workflow would be required for central Human Resources to review and approve any self-service changes.) . The system will also integrate with highly specialized applications, such as Firehouse, which would not be replaced by the new ERP solution. Diagram 7Diagram 8PURCHASING The City’s purchasing processes are governed by the City’s Municipal Code, the Purchasing Ordinance, and the City’s policies and procedures. All purchases are tracked in the central accounting system. Requisitions are initiated by Departments on manual forms. The purchasing process is managed by the City’s Finance Department. There is no official Purchasing Officer or Purchasing Department.Purchase RequisitionsThe city has credit accounts with all vendors. When a purchase is made the department just gives the vendor the PO number. The purchasing thresholds for the City of Bartlesville are $2,500 for department directors and approved staff. Items costing between $2,500 and $10,000 require three informal bids (three verbal quotes). Between 10K and 25k require three written quotes. Over $25k requires formal bid. All purchase requisitions are submitted to purchasing on a manual Excel-based requisition form. Purchase orders are not issued without three verbal or written quotes. Documentation is also required in some instances. Current Process for Requisitions: The department looking to make the purchase completes a requisition form and sends it to APThe accounts payable clerk reviews the requisition formThe accounts payable clerk creates a purchase order and saves image of PO to FortisVendor receives the PO number from requisitioner and processes orderThe accounts payable clerk emails the purchase order number to the department looking to make the purchaseThe department looking to buy something purchases the item(s)Current Process for Formal Bids: Departments prepare their own bidsThe Purchasing Technician in the finance office gives the departments a bid number Department Directors finalize the bid and decide how to advertise/ release the bid. The finance department follows through by advertising or publicizing the bid Vendors submit a formal bid to the cityWhen the bids come in they are sent to the City Clerk/Finance Department (A copy is also given to the department making the purchase)Finance opens the bids (public bid opening) with a representative from the requisitioning departmentThey have a meeting involving City Council to accept the bids “receipt of bids” Assign a Council Member to work with the Department Head to review/analyze the bids.The department head will recommend a particular bidIt then goes back to Council to be award/rejected It then goes through the requisition process Current Process for Informal Bids: The department completes a requisition form Department obtains three written or verbal quotes and attaches the quotes to the formThe accounts payable clerk reviews the requisition formThe accounts payable clerk creates a purchase orderThe accounts payable clerk emails the purchase order number to the department looking to make the purchaseThe AP department saves a copy of the requisition in FortisThe department looking to buy something purchases the item(s)Policies and Procedures Document Reference: Procedure File Number AP-1, AC -1Process Maps:Purchase-to-Pay, Requisitions, Contracts / Change Orders The contract process for the city of Bartlesville is similar to the requisition process; however, the professional services contracts do not require formal bid information. These types of contracts are selected and reported to City Council by Departments. Weekly purchase orders are also issues every Friday or Saturday that can be used to address any changes. These are referred to by the City as weekly’s.Current Process for Contracts and Change Orders: For contracts above $25,000 changes must be approved by councilContract changes are recorded in FortisPolicies and Procedures Document Reference: Procedure File Number AC-1, Process Maps:Purchase-to-Pay, Bids-1, Bids-2 Inventory All inventory is tracked in excel. The city has one warehouse. A manual count of items in the warehouse is done each month. Inventory is replenished when counts are below a given point. There are roughly 500 items kept in inventory by the city. Most of the cities inventory is for the Waste Water Department. Current Process for Inventory Management: The Public Works Department tracks and manages inventory in the city's warehouseThe various city departments request inventory itemsPublic works fills these requests and conducts a physical count of the inventory via a manual spreadsheet. They follow the purchasing process when replenishing inventoryPolicies and Procedures Document Reference: Procedure File Number AC-28, Process Maps:Purchase-to-Pay, Inventory Receiving Departments are responsible for receiving goods and services. The invoices go into an AP inbox and the Payroll clerks do matching to the correct PO. The city department directors can check and approve payments in Fortis. It then goes to the Finance Department for payment. Current Process for Receiving: The Department receives the goods or service and scans the supporting documents into FortisFinance conducts the matching process through the accounts payable process (See Accounts Payable)Finance and the receiving Department tracks open encumbrances related to any partial receiptsReported Gaps/Requirements:The City does not currently account for, or track shipping cost. Policies and Procedures Document Reference: Procedure File Number AC-1, Procedure File Number AP-4, Procedure File Number AP-7, Procedure File Number AP-18, Procedure File Number Process Maps:Purchase-to-Pay, Receiving Purchasing - Future The future purchasing solution will replicate processes that are currently done today at the City; however, processes will be more automated and highly integrated. Instead of completing a manual requisition form, Departments will complete an online requisition form (usually a shopping cart in modern applications). The requisition will automatically be routed for approval, depending upon the purchasing policy. Vendors can register online to participate in City bidding lists. The system will also be flexible to accept bids from vendors online. As part of the shopping cart experience, users will select goods and services from authorized vendors and contracts. In some cases, users will be directed to requisition items from City inventory. Departments will continue to be responsible for receiving and confirming items. In addition to scanning the supporting materials, users will enter the receiving information into the system. The system will automatically create the match for Finance review and approval. Since the system will be highly integrated, any open purchase orders will reference the right encumbrance. Once the Requisitioner has received all of the items, they will be responsible for closing the purchase order for accounts payable processing. Diagram 8TIME ENTRY /PAYROLLThe City’s time entry and payroll is managed the Department of Finance. All organizations (operating and enterprise funds) follow the same time entry and payroll rules. The City’s Fire Department uses Firehouse for scheduling. This system will remain and interface to the future ERP solution.Time EntryThe City of Bartlesville currently has roughly 350 employees for which time entry functionality will be necessary. Current Process for Time Entry: Employees complete time sheetDepartment manager reviews time sheetDepartment administrator enters time into the ERP systemDepartment administrator validates the time entriesAccountant validate time entriesCurrent Process for Fire Department Time Entry: The Fire Department Administrator exports Data from their time entry systems "Firehouse"The Fire Department Administrator calculates daily time and sum by pay periodThe Fire Department Administrator enter time into the main ERP systemThe Fire Department Administrator validates time entries in ERP systemReported Gaps/Requirements:The data from the Fire Department’s “Firehouse” is exported manually and sent to payroll to be reentered manually. In some cases, this can create opportunities for errors. The city would like an interface from any future ERP systems to FirehouseThe city would like functionality that will allow leave-time and other information to be exported into the ERP without manual hand-offs. In a future solution the city would like all salaried employees to enter “exception-time” only, with an assumption of 40 hours per week.There are a large number job codes for the Fire Department. The city would like functionality that allows for easy transfer of pay-codes between the “Firehouse” system and the city’s ERP system. Would like system to report when employee last worked (i.e., prior time entry detail)Would like system to maintain history of time entry detailPolicies and Procedures Document Reference: There are no references to time entry in the policy document Process Maps:Time Entry, Time Entry Payroll Processing/ ReportingAlthough many employees use direct deposited the city still has 60-plus employees who still receive paper checks. All departments are on the same payroll cycle. Most employees enter their own time either on a manual paper sheet or in some limited instances directly into the ERP system. Current Process for Payroll Processing and Reporting: The Finance Department will update benefits in the ERP systemThe Finance Department makes other miscellaneous adjustments (e.g. Bonus, Wellness Pay, etc.)The Finance Department will update the deduction worksheetThen they conduct a trial run in the ERP systemNext they process the final runNext they will process all AP transactions in suspenseThen the Finance Department will add imports into the AP batchThe Finance Department will then reconcile the batch to payroll deduction registerNext they prints the checks (for non-direct deposit)Next they run ACH paymentsThen they print checks (required for ACH run)Then checks are distributed The employee signs to acknowledge receipt of their checkThe Finance Department completes payroll (runs reports/post General Ledger)The Finance Department send FTP reports to the networkReported Gaps/Requirements:All errors in the city’s payroll must be found manually in when calculations are done on the dedication worksheet.The current system does not allow the city to split a single employee’s paycheck easily. (e.g. 529’s, or flex spending plans). It is possible to split checks, but involves several manual workarounds.Checks (check stubs) are not typically mailed, but given to employees by hand. Each employee signs for their check when they receive it physically from their manager for validation purposes.The city would like to be able to lock the system down so they can run trial payrolls. When HR makes a change, there are typically manual, (paper) work-flows. The City would like workflow functionality that will allow easy and clear workflows between HR and Payroll. The city would like functionality that will allow them to create and save unique reports. The city has a reporting requirements that mandates a quarterly report for unemploymentStoring reports is challenging in the current system (e.g. FTP report). Reports created by the city are often lost when the city updates its software. The City would like functionality that will enable mass updates. Policies and Procedures Document Reference: Procedure File Number AC-40, Procedure File Number AC-73, Procedure File Number PA-1, Procedure File Number PA-4, Procedure File Number PA-7, Procedure File Number PA-10, Procedure File Number PA-13, Procedure File Number PA-16, Procedure File Number PA-19, Procedure File Number PA-22Process Maps:Time Entry, Payroll Process-1, Payroll Process-2 COMMUNITY DEVELOPMENTCommunity Development Maintenance The City is currently using BlackBear as their primary permitting system for Community Development Maintenance. The Department processes a number of permits and licenses.Reported Gaps/Requirements:The Community Development Department would like functionality that will allow citizens to access permit applications onlineThe Community Development Department would like functionality that will allow citizens to reserve shelters for parks and recreation facilities online The Community Development Department would like functionality that will allow code enforcement trackingThe Community Development Department would like functionality that will track impact feesThe Community Development Department would like functionality that will track performance bondsThe Community Development Department would like functionality that can accommodate Tax Incremental Financing (TIF) districts. The Community Development Department would like functionality that will track customer escrowsThe Community Development Department would like reporting functionality that includes:Performance reportingFlexible reportingAd-hoc reportingThe Community Development Department would like functionality that will facilitate integration with GIS (ESRI – ArcCAD 10), including:ScanningAuditing (permits/licenses signature tracking) ................
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