HomeMy WebLinkAboutIR 9538 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9538
To the Mayor and Members of the City Council January 29, 2013
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SUBJECT: ERP PHASE II UPDATE
The purpose of this Informal Report is to provide the City Council an update on the status of the
Enterprise Resource Planning (ERP) Phase II initiative. Staff will provide quarterly Informal
Reports with an emphasis on recent activities, upcoming activities, and project risks.
ERP Phase II Project Description:
The ERP Phase II project is the second part of a City-wide effort to replace aging financial
systems that lack functionality, sufficient integration, and appropriate internal controls. Staff is
reliant on out-of date technology that has contributed to material weaknesses and other
deficiencies, which have been noted by the City's independent auditor (Deloitte and Touche) over
the last few years. In addition, the auditors have stated that they cannot rely sufficiently on
system related controls and thus have to "test around the system," which leads to a more
expensive audit. While manual processes have been established to address weaknesses, these
are temporary solutions. The implementation of ERP Phase II will remedy these and other
issues.
ERP Phase II is divided into three distinct parts: Phase IIA (Core Financials) has begun and will
go-live in October 2014, Phase IIB (Budget) will begin in July 2014 and go-live in April 2015, and
Phase IIC (Capital Projects Management and Purchasing) will begin in December 2014 and go-
live in December 2015.
Recent and Upcoming Activities:
In June 2012, the City Council authorized agreements with Ciber and ISG (formerly known as
STA) for implementation and advisory services, respectively.
Since that time, staff has worked closely with Ciber for project deliverables such as the charter,
risk management plan, communication strategy, and many other foundational documents. The
most significant success was the redesign of the City's Chart of Accounts (CoA).
The City uses the CoA as the structure by which it defines operations in financial terms, and it is
the basis for fiscal reporting and tracking. Simply put, the CoA identifies the fund, department,
and account type (asset, liability, equity, revenue, or expenditure). Staff coordinated a series of
meetings and engaged every City department for feedback. After multiple work sessions and
testing exercises, the revised CoA was completed in December 2012. Staff will continue to
evaluate the new coding structure and revise, if necessary.
As the project continues to gain momentum, Project Team Members will transition from various
City departments to the project. These individuals are experts in a variety of City processes and
will become experts in their respective areas in PeopleSoft. Each team member has been
assigned to lead a particular aspect of the PeopleSoft implementation (i.e. General Ledger, Fixed
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9538
To the Mayor and Members of the City Council January 29, 2013
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SUBJECT: ERP PHASE II UPDATE
Assets, etc.), and these individuals will facilitate various work efforts with other City staff
beginning with a series of Fit/Gap sessions.
Fit/Gap sessions, which begin in February 2013, are designed to identify the "fits" and the "gaps"
between the application and City processes. These sessions will include Subject Matter Experts
(SMEs) from all departments to ensure that each aspect of PeopleSoft receives an appropriate
amount of attention during the implementation process. City processes will undoubtedly change
to strengthen internal controls, reflect best practice, and better fit the application.
Project Risks:
In an effort to identify and manage risks early and efficiently, staff meets weekly with Ciber and
ISG to discuss project risks.
The Phase II effort has taken steps to mitigate risks, where possible. A heavy emphasis was
placed on Change Management and Internal Controls during the selection process for project
implementation. Ciber responded with a robust change management strategy and a
comprehensive plan to improving internal controls. These approaches will help to mitigate
organizational risks and ensure that the system has strong controls.
Other risk management strategies include the phase by function approach, which reduces the
amount of organizational change impacting staff at one time; heavy SME involvement, which
ensures departmental participation and engagement; backfill strategies for SMEs, which ensures
the appropriate level of SME participation; and aggressive talent management, which ensured
that the City's most talented individuals were involved on the project either as a Subject Matter
Expert, Project Team Member, or Change Liaison.
At this time, no material risks have been identified that jeopardize the project's schedule, scope,
or budget. Staff will provide regular updates to the City Council on a quarterly basis.
For questions or further information, please contact Greg Jordan, ERP Phase II Director at (817)
392-2836.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS