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Home My WebLink AboutCOW 2021-07-12 Item 4D - Update - Enterprise Resource Management ImplementationCOUNCIL AGENDA SYNOPSIS ‘1' 4, Initials ITEM No. 2 Meeting Date Prepared by Mayor's revie2v Council revieav 7/12/21 LH a 4 D z� . 1908 ITEM INFORMATION STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 7/12/21 AGENDA ITEM TITLE Enterprise Resource Management Implementation (ERP) Update CATEGORY 0 Mtg Discussion Date 7/12/21 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Pub& Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD a Finance ❑ Fire ❑ P&R ❑ Police ❑ PIV SPONSOR'S Staff is providing an update on implementation of the new Enterprise Resource SUMMARY Management Implementation. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMI 11 EE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 7/12/21 MTG. DATE ATTACHMENTS 7/12/21 Information Memo dated June 30, 2021 59 60 of Tukwila TO: FROM: DATE: SUBJECT: Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Committee of the Whole Vicky Carlsen, Committee of the Whole June 30, 2021 Enterprise Resource Management Implementation Update BACKGROUND In 2020, the City Council unanimously supported replacement of the City's existing financial software system and authorized funding for contracts with CentralSquare Solutions and NeoGov to undertake this project in 2021. CentralSquare Solutions is providing a full suite of financial software modules including general ledger, accounts payable, accounts receivable, payroll, bank reconciliation, fixed assets, grant and contract management, and more. NeoGov is providing a complete Human Resource Information system including recruitment, onboarding, time, performance management, learning management and offboarding. DISCUSSION Staff is in the process of implementing Phase 1 of the Finance Enterprise software solution, which includes process review, identification of needed improvements, documentation of decisions, and a complete overhaul of the chart of accounts (COA). The COA is a listing of all accounts used in the general ledger to track accounting transactions (both revenue and expenditure) by fund, department and type. The current COA does not reflect actual transactions in meaningful ways. For example, it includes a few very general categories, like "miscellaneous," or "communications," without further refining what those things include. Staff began the update by first identifying significant or common transactions and then thinking about how they could be better described. Categories were then reorganized, renamed, deleted, or added as appropriate. The new COA will allow for much better reporting and greater transparency to the City Council and public. The chart below shows the changes that will be made to the Supplies and Services expense accounts (changes are still being reviewed and are subject to change as needed): Current COA New COA Supplies 31 Supplies NEW 32 Repairs and Maintenance Supplies Interfund 33 Removing as this is outdated Resale 34 Resale Small Tools 35 Small Tools NEW 36 Tech Supplies NEW 37 Fleet 61 INFORMATIONAL MEMO Page 2 OLD 33 39 Interfund Professional Services 41 Professional Services Communication 42 Communication Travel 43 Professional Development Advertising 44 Advertising Rental 45 Rentals Insurance 46 Tech Services Utilities 47 Utilities Repairs and Maintenance 48 Repairs and Maintenance Miscellaneous 49 Miscellaneous For further explanation, with the current COA most costs related to offsite training is categorized under the broad bucket of Travel. Travel is being renamed to Professional Development to better reflect actual expenses, and the table below shows the new subcategories within 43 -Professional Development: 43 - Professional Development 543000 Professional Development 543001 Membership 543002 Registration 543003 Meals -Prof Dev related 543004 Airfare 543005 Mileage 543006 Certification 543007 Hotel 543008 Transportation 543009 Tuition Employees will be able to apply these more descriptive codes to their expense reporting, resulting in more accuracy, better reporting, and greater transparency. 62 INFORMATIONAL MEMO Page 3 To provide further examples, the tables below show the new subcategories that will be included in 42 -Communication and 49 -Miscellaneous. 42 - Communication 542000 Communication Telephone, Alarm & Cell 542001 Service 542002 Postage Internet Services -City Wide 542003 Use 542004 Printing & Binding 542005 Microfilming/Imaging 542006 Recorded Documents 49 - Miscellaneous 549000 Miscellaneous 549001 Armor Car 549002 Credit Card Fees 549003 Commute Trip Reduction 549004 Employee Appreciation 549005 Employee Wellness 549006 Entrance Fee/Admissions 549007 Excise Tax 549008 Settlement/Claims/Judgments 549009 Subscriptions Business Meals (non -Prof Dev 549010 related) Interfund Taxes & Oper 549054 Assessments Adding these additional descriptive categories allows employees to more accurately describe transactions. The system has flexibility and categories can be added or adjusted to reflect emerging needs or lessons learned from the initial implementation phase. In 2022, phases will include implementation of the remaining financial modules including fixed assets, grant and contract management, purchasing, budgeting and the CAFR and budgeting reporting tool. Next will be implementation of the utility billing module and payroll. FINANCIAL IMPACT None, as implementation is included in the 2021-2022 adopted budget. RECOMMENDATION This information is provided as a status update to the City Council and an opportunity to answer any questions. 63 64