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Home My WebLink AboutIR 9835 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9835 To the Mayor and Members of the City Council January 26, 2016 h�T�i7 Page 1 of 3 �i �i7 Y *a SUBJECT: ENTERPRISE RESOURCE PLANNING PROJECTS #qrF rn f e'?5 The purpose of this Informal Report is to provide the City Council a summary on the City's Enterprise Resource Planning (ERP) Projects beginning August 26, 2008 (M&C G-16255) when Council authorized Phase I of the ERP initiative designed to address weaknesses identified in several management letters from the City's auditor. ERP Phase I — Human Capital Management ERP Phase I encompassed the PeopleSoft Payroll/Timekeeping implementation providing functionality for: Time & Labor, Payroll, Human Resources, Absence Management, Benefits Administration, and Recruiting. In October 2010, the Payroll/Timekeeping modules went into production replacing the previous Genesys system. ERP Phase I stabilization efforts continued through October of 2012. At that time, the ERP Phase I project was closed and the remaining project funds were transferred to General Debt Service on March 3, 2015, M&C G-18422. Capital Investment Summary: ERP Phase I - HCM Available Funds $25,215,681 Expenditures $24,109,179 Balance $ 1,106,502 Applied to Debt Service ERP Phase II — Financials ERP Phase 11 encompassed the PeopleSoft Financials implementation. To address the operational impacts on the organization, the project was broken down into sub-phases. Phase IIA went partially into production starting with Asset Management in August 2014. On October 1 , 2015 the remaining Phase 11 modules of Accounts Payable, Accounts Receivable (Deposit), Cash Management, Commitment Control, General Ledger, and integration with the PeopleSoft Payroll/Timekeeping and the BuySpeed Purchasing Systems (collectively known as Enhanced General Ledger) were moved into production. ERP Phase 11 is scheduled to be closed in November 2016. The total project expenditures through this date are projected to be $33,870,316 which include stabilization activities, the achievement of monthly/quarterly financial management reporting, and year-end close milestones. An estimated balance of$19,594,435 is expected to be available for future efforts as described in the Informal Report: ERP Financials Update and Future Phases, provided City Council on 11/17/2015. It is anticipated that this future work will continue through at least FY2017 and will be prioritized among capital technology needs across the organization. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9835 To the Mayor and Members of the City Council January 26, 2016 h�T�i7 Page 2 of 3 �i �i7 Y *a SUBJECT: ENTERPRISE RESOURCE PLANNING PROJECTS #qrF rn f e'?5 Capital Investment Summary: ERP Phases — Financials Available Funds Original Funding $57,617,659 Transfer Out/Refunds $ 4,152,908 Net Available Funds $53,464,751 Project Expenses Estimated to Complete Phase IIA $33,870,316 Additional Capital/Reserve for $19,594,435 IR 9821 , 11/17/2015 Future Phases identified additional modules and functionality that are scheduled; the summary table is included below. Planned Use of Additional Capital/Reserve for Future Phases Track 1 Track 2 Track 3 Accounts Receivable Budget Purchasing & Projects Receivables Hyperion Workforce Purchasing Planning Billing Hyperion Planning Plus eProcurement Point of Sale System * Hyperion Public Sector Supplier Contract Planning Budgeting ** Management eSupplier Connection eSettlements * System to be selected and purchased as part of Track 1 Strategic Sourcing ** Module to be purchased as part of Track 2 Inventory Management Contracts Grants Project Costing ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9835 To the Mayor and Members of the City Council January 26, 2016 h�T�i7 Page 3 of 3 �i �i7 Y *a SUBJECT: ENTERPRISE RESOURCE PLANNING PROJECTS #qrF rn ye,?5 Recurring Operating Expenses The ERP system replaces several legacy systems such as Genesys, MARS, and the mainframe revenue system as well as numerous desktop ad hoc systems based on Excel and MS Access databases. By decommissioning the MARS and Genesys systems, and migrating the revenue system to a temporary operating platform, the IBM mainframe has been decommissioned saving approximately $835,000 annually. This savings will not be fully realized until implementation of the future billing modules to replace the mainframe revenue system. The estimated annual operating expense for the current ERP environment is provided in the following table. Estimated Annual Operating Expense for HCM and FSCM Staff- 22 AP's (ITS, FMS, HR) $1,771,884 Salaries and Benefits Outsourced/Contract Support $1,400,000 Project software development efforts Software Maintenance $ 576,000 Oracle software licensing Upgrades $ 500,000 Estimated $1 .5M/3 years Total $4,247,884 For questions or further information, please contact Kevin Gunn (x2015) or Aaron Bovos (x8517). David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS