city of bartlesville, ok erp business case · web viewthe current bank reconciliation process is...

Attachment 13

City of Bartlesville, OK ERP Business Case

2016

Prepared By The City of Bartlesville, OK and GFOA

Business Case AnalysisPage 1 of 49

Bartlesville, Oklahoma Business Case Analysis by Functional Area

Table of Contents

ACCOUNTING..............................................................................................................................................3

Chart of Accounts......................................................................................................................................4

Financial Reporting....................................................................................................................................5Grants.........................................................................................................................................................6

Project Accounting.....................................................................................................................................7Accounting - Future...................................................................................................................................8

ACCOUNTS PAYABLE..................................................................................................................................10

Accounts Payable.....................................................................................................................................10

Bank Reconciliation.................................................................................................................................11Purchasing Cards.....................................................................................................................................12

Accounts Payable - Future.......................................................................................................................14

ACCOUNTS RECEIVABLE............................................................................................................................16

Receivables – Set Up...............................................................................................................................16Cash Intake...............................................................................................................................................18

Accounts Receivable - Future..................................................................................................................19

ASSET MANAGEMENT...............................................................................................................................20

Asset Acquisition /Asset Tracking...........................................................................................................20CIP Projects.............................................................................................................................................21

Asset Year-End Reporting.......................................................................................................................22Asset Transfers/ Disposal........................................................................................................................23

Work Orders.............................................................................................................................................24Asset Management - Future.....................................................................................................................26

BUDGETING...............................................................................................................................................27

Revenue Projections.................................................................................................................................27

Budgeting Adjustment / Amendments.....................................................................................................28


Capital Budget Preparation......................................................................................................................28Operating Budget Preparation..................................................................................................................29

Budget Preparation - Future.....................................................................................................................31

HUMAN RESOURCES..................................................................................................................................33

Benefit Enrollment...................................................................................................................................33Performance Evaluations/Employee Relations........................................................................................34

Recruitment..............................................................................................................................................35Salary Change..........................................................................................................................................36

Separation................................................................................................................................................37Human Resources - Future.......................................................................................................................37

PURCHASING.............................................................................................................................................39

Purchase Requisitions..............................................................................................................................39

Contracts / Change Orders.......................................................................................................................40Inventory..................................................................................................................................................41

Receiving.................................................................................................................................................41Purchasing - Future..................................................................................................................................42

TIME ENTRY /PAYROLL..............................................................................................................................44

Time Entry...............................................................................................................................................44

Payroll Processing/ Reporting..................................................................................................................45

COMMUNITY DEVELOPMENT....................................................................................................................46

Community Development Maintenance..................................................................................................46


ACCOUNTING

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 1


Chart of Accounts

The 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:

o Fundo Departmento Accounto Project

It was reported that all financial reporting comes from a single ledger; meaning, there are no separate reporting ledgers

o The City does not need to abide by a State Chart of Accounts for reporting purposeso The City does need to report financials related to waste water and water to a Water

Resource Boardo The City would like to have year-round GAAP statements

The City has spent the past several years re-designing the chart of accounts to facilitate managerial reporting and end-of year financial reporting.

o 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.)

o 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:o Accounts that are candidates for removal will need to be identified as part of

implementation. o Funds that are no longer needed will be identified as part of implementation.

Policies and Procedures Document Reference: Procedure File Number AC-7

Process Maps: No process map was created for the Chart of Accounts section


Financial 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 systems

Reported 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 funds Local 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

accounts The 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 Map


Grants

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: 1. 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.

2. 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.

3. The finance office runs quarterly reports 4. 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.

5. 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 friendly It is difficult to extract or export information from the current systems System 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 system The 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 28

Process 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 statements There 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-13

Process Maps: No process map was created for the Project Accounting section

Accounting - 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 2


ACCOUNTS PAYABLE

The 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: 1. Payments are authorized based upon the matching of the purchase order to the receiving

document (invoice, packing slip with invoice, etc.) a. Departments receive the item and scan the invoice or packing slip into Fortis, which

is the City’s document management system. b. 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.

2. After Department approval, Finance creates a claim entry in Select.3. City Clerk/City Manager approves the final payment4. This list is compared against the City’s available cash balance 5. At the beginning of the check run process Finance runs a trial batch of check payments to

ensure that batch claim entries are balanced. 6. If everything balances, they will run the final payment run, which generates a report of all

checks to be issued.7. Finance runs the checks8. A final review of all printed checks is completed by Finance9. The checks are scanned into Fortis and referenced to the PO in the document management

system.10. 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: 1. The finance department runs General Ledger cash transaction listing2. The finance department reconciles bank deposits by payment type3. The finance department receives bank file4. The finance department clears paper checks5. The finance department clears “electronic” transactions6. The finance department balances expenditures to bank statement7. The finance department clears deposits to bank8. The finance department identifies un-receipted electronic activity9. The finance department assigns accounts and descriptions10. The finance department process receipts


Reported 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 friendly

Future 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. Cashiering

o The City would like to take payments online (e.g. business licenses).o 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:1. The department looking to obtain a Credit Card will formally request the credit card by

emailing a form to the finance department2. The Finance Department will review the form3. The Finance Department will submit the form to JP Morgan (City’s CC institution) 4. JP Morgan Chase will the process request5. The Finance department will receive the card6. The 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: 1. 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.)

2. Each billing period, Finance Receives the master account statement from JP Morgan3. The Department/ card holder also receives a statement from JP Morgan or from the City’s

Finance Department. 4. The cardholder is responsible for assigning account numbers to each purchase listed on the

statement.5. The card holder signs the form and submits the statement to their Supervisor or

Department head for approval. 6. Upon approval, the Supervisor scans the invoice into Fortis to indicate payment approval

(See Accounts Payable Process) 7. The Assistant Finance Director confirms payment to JP Morgan

Reported 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 3


ACCOUNTS RECEIVABLE

For 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: 1. The Department sends a notification of receivable to finance2. Finance receive the notification3. Finance creates a the receivable4. Finance copies supporting documents and stores them manually5. Finance generates the invoices6. Finance mails the invoices to customers7. Finance applies customer payments against receivables.

Current Process for Permits and Licenses: 1. Invoices are sent to current permit and license holder by July 1 of each year2. Holders receive the invoice renewal notices and submit their payments3. Payments may be mailed in, or physically dropped off at the central cashier window


4. City cashiers are responsible for applying the payment to correct revenue and receivable

Dunning:1. Open receivables are assessed a penalty after 30 days2. If 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.

3. Late accounts that are settled are placed onto the successful collection list4. Cashiers and Finance apply the payments to the correct accounts

Reported 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 system The 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 receivables The 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 Intake

Current 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 customers


Policies 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 - Future

Similar 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 4

ASSET 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: 1. All purchases require the Departments to complete a requisition form (See Purchasing)2. 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.

3. The department making the purchase will file related insurance and warranty within the department

4. Finance receives the requisition form and the fixed asset data form5. Finance updates the accounting system with the new asset data6. Finance updates the system at year end

Reported 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: 1. Asset under construction are tracked by:

a. Running a financial report on all project accountsb. Open projects are tracked by Finance on an outside spreadsheet to indicate that

they are under constructionc. Once 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.

2. Capital projects moved into service are entered by Finance into the central accounting system as capitalized assets.

3. 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: 1. Review the general ledger detail2. Pull all CIP records3. Create “Fixed Asset Data Forms” if they are missing4. Added these to the working list of Fixed Asset Data Forms5. Update Fixed Asset module6. Post to general ledger7. Run depreciation8. Post to general ledger again9. File reconciliation10. Update general ledger

Current Process for Asset Depreciation: 1. 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.2. 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.

3. 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 manually


Process Maps: Fixed Assets, Year-End


Asset 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 Department If 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 end

Current 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 Form Assets 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 number


Process 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: 1. Department requests service

o If the Department has access to Maintenance Care, the staff member may enter the service request directly into the system;

o Otherwise, the Building Maintenance or other authorized staff enters the service request into Maintenance Care.

2. Building maintenance reviews request3. Building maintenance prints the work order4. Building maintenance prioritizes the work and assigns the work order to a work crew or

crew member5. Once the work order is completed the Work crew reports the status of the work order as

complete 6. Building maintenance manager reviews the work and officially closes the work order in the

system7. Requestor receives notice that work order is closed

Current Process for Wastewater Preventative Maintenance Work Orders:1. 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 Supervisor

2. Waste Water Supervisor prints the work order3. Waste Water Supervisor assigns the work order to a work crew4. The work crew completes the work order and reports status to the Work Crew Supervisor.5. 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: 1. Waste Water Supervisor receives complaint/service request and call crew to investigate2. Crew completes investigation and completes a manual form3. Wastewater Supervisor enters data from manual form into Hansen

Current Process for Water Department: 1. Work Orders Customer request service by contacting City Customer Service2. Customer Service logs the work request in NorthStar3. Customer Service prints work order to operations location4. Public works crew completes the service request


5. The work crew reports the status of the work order on manual form and submits the report daily to Public Works

6. Public 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 order

Policies 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-19

Process Maps: Work Orders, Building Maintenance, Sanitation, Water

Asset Management - Future

Asset 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 5


BUDGETING

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: 1. Run partial year trial balance periods 1 - 72. Run partial year trial balance periods 1 - 123. Run calendar year trial balance periods 1 - 74. Create revenue estimate worksheet5. Create current year revenue estimates6. Create budget year revenue estimates (based on 5 year trend)7. Prepare projection revenues8. Estimate transfers9. Compile final revenue estimates

Reported 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.


Process Maps: Revenue Projections


Budgeting 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: 1. City departments request a budget amendment2. If the amendment is within the fund, it goes to the City Manager3. City Manager reviews and approves4. The budget is updated5. If money is not being moved within a fund a budget resolution is prepared by the finance

department6. The resolution is then approved by the City Council

Reported Gaps/Requirements: The amendment process is the same for capital and operating budget preparation.


Process Maps: Budget Amendments

Capital 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: 1. Finance will run income statements on the accounts with project numbers (i.e., active

projects)2. Engineering will complete estimated expenditures for the current year3. Finance will estimate fund balance for the end of the year 4. Each year, Departments submit project budget requests to Engineering5. Engineering will review project requests6. Engineering will then estimate project budgets for the new budget year7. Finance will review project requests after Engineering review8. The City Council will review project budget requests as part of the overall budget request

process 9. Approved projects are assigned project numbers and entered into the accounting system by

the Department of Finance 10. 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-2

Operating 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:1. Finance department conducts a payroll data export from the ERP systems to a spreadsheet2. Finance updates the spreadsheet3. Then they do a payroll data validation4. New positions are added 5. Finance then runs an estimate of benefits calculation6. Expenditures are exported7. The Finance Department estimates expenditures for the current year8. Finance then compiles expenditures by department9. Then then clear all budget documents10. Finance then creates update budget schedules11. Then they create budget submission folders


12. They emails a notice regarding expected payroll to the department directors13. Departments validate estimates14. Departments prepare budget request packet15. The finance department receives packet from the departments 16. The finance department updates the budget document17. City Manager, city departments and finance have a budget discussion18. Finance department tracks budget changes19. Finance department locks in city manager’s budget request column20. Finance department updates budget documents21. Finance department validates all information 22. The finance department creates a draft/city manager’s budget23. The City Council reviews the draft budget24. If changes are needed, the finance department will update the draft budget with the City

Council’s changes25. The City Council holds a final public hearing26. Finance and the city departments create an electronic version of the budget27. The department receive the electronic version of the budget and send it back to finance

with the final approval 28. Finance loads the final budget

Reported 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 6


HUMAN RESOURCES

The 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): 1. New employee chooses benefits after participating in a benefits orientation meeting

conducted by Human Resources2. Human resources enrolls the new employee in the selected plans3. Employee receives notice from the plan that they are enrolled 4. Fire Union is responsible for ongoing enrollment for new Fire personnel

Current Process Open Enrollment: 1. Human Resources conducts a pre-planning session for open enrollment 2. Human Resources conducts benefits roadshow (visit various city sites with information)3. The employees enroll through a benefits portal or manual process4. Run reports to see which plans employee selected 5. Finance is notified of the selections and deductions employees make6. Finance updates payroll with deductions7. Human Resources conducts an audit for payroll deductions

Reported 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 solution


HR 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 Relations

Each 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: 1. Human Resources loads evaluation dates manually into Select and scans supporting

documentation into Fortis2. Departments conduct evaluations3. Human Resources loads the data from the evaluations into Select4. Human Resources loads the information into Select

Reported 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-ID The 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 history The City would like rules-based-controls for pay grades The City would like the ability to track training in a future solution The 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 expire System flags when driver’s license or CDL is about to expire


Payroll 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

Recruitment

Human 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]:

1. The Department looking to add staff sends a request for a new employee email2. The Human Resources department receives the email and gets approval from the City

manager3. If approved by the City manager Human Resources is notified that they can post the position4. Human Resources then prepares job description5. If the position is a new, the job description needs review by the department creating the

position and approval from the City Manager6. Human 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: 1. The applicant submits an application2. Human resources logs the application3. Human resources files the application (posting file) 4. Human Resources close posting once a sufficient number of applications are received or the

allotted time-frame to receive applications ends5. The department hiring the employee receives all applications for the given position6. Human Resources reviews questions from the departments about applications7. The department conducts the interview8. The department looking to hire selects a candidate9. Fire/Police

o Conduct internal screening and testingo Fire/Police make conditional offero After conditional offer acceptance, Department sets up background check and health

screeningo Fire / Police make formal offer


o Fire /Police negotiate start date and notify Human Resourceso Human Resources conduct orientation (Then follow PAF on…)

10. The applicant and the Human Resource Department agree on a conditional offer11. The Human Resource Department run health and background checks through a third part12. The Third part lets Human Resources know if they failed13. If the pass a formal offer is made to the applicant14. Human Resources notifies the department of the applications start date15. The department looking to hire will then create a Personnel Action Form for the new

employee16. Human Resources will also create a Personnel Action Form for the new employee17. The Finance Department will update payroll18. Human Resources will conduct and orientation19. Human Resources will close the hiring file

Reported 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 Resources

Policies 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-3

Salary Change

Current 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 FMLA System can accommodate mass leave changes such as updating leave for non-uniform

personnel and update separate leave rules for uniform personnel The 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: 1. Employee notifies their supervisor that they are leaving the city2. The department then notifies Human Resources that the employee is leaving3. The department then creates a Personnel Action Form (PAF)4. Human Resources receives the Notice and Personnel Action Form (PAF)5. Human Resources obtains all needed signatures 6. Finance updates Payroll7. Human Resources conducts the exit interview8. Human Resources notifies other pertinent departments (e.g., IT) about the separation

Gaps: 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 7

Diagram 8


PURCHASING

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 Requisitions

The 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: 1. The department looking to make the purchase completes a requisition form and sends it to

AP2. The accounts payable clerk reviews the requisition form3. The accounts payable clerk creates a purchase order and saves image of PO to Fortis4. Vendor receives the PO number from requisitioner and processes order5. The accounts payable clerk emails the purchase order number to the department looking to

make the purchase6. The department looking to buy something purchases the item(s)

Current Process for Formal Bids: 1. Departments prepare their own bids2. The Purchasing Technician in the finance office gives the departments a bid number 3. Department Directors finalize the bid and decide how to advertise/ release the bid. 4. The finance department follows through by advertising or publicizing the bid 5. Vendors submit a formal bid to the city6. When the bids come in they are sent to the City Clerk/Finance Department (A copy is also

given to the department making the purchase)7. Finance opens the bids (public bid opening) with a representative from the requisitioning

department


8. They have a meeting involving City Council to accept the bids “receipt of bids” 9. Assign a Council Member to work with the Department Head to review/analyze the bids.10. The department head will recommend a particular bid11. It then goes back to Council to be award/rejected 12. It then goes through the requisition process

Current Process for Informal Bids: 1. The department completes a requisition form 2. Department obtains three written or verbal quotes and attaches the quotes to the form3. The accounts payable clerk reviews the requisition form4. The accounts payable clerk creates a purchase order5. The accounts payable clerk emails the purchase order number to the department looking to

make the purchase6. The AP department saves a copy of the requisition in Fortis7. The department looking to buy something purchases the item(s)

Policies and Procedures Document Reference: Procedure File Number AP-1, AC -1

Process 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 council Contract changes are recorded in Fortis

Policies 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: 1. The Public Works Department tracks and manages inventory in the city's warehouse2. The various city departments request inventory items3. Public works fills these requests and conducts a physical count of the inventory via a

manual spreadsheet. They follow the purchasing process when replenishing inventory

Policies 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: 1. The Department receives the goods or service and scans the supporting documents into

Fortis2. Finance conducts the matching process through the accounts payable process (See Accounts

Payable)3. Finance and the receiving Department tracks open encumbrances related to any partial

receipts

Reported 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 8


TIME ENTRY /PAYROLL

The 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 Entry

The City of Bartlesville currently has roughly 350 employees for which time entry functionality will be necessary.

Current Process for Time Entry: 1. Employees complete time sheet2. Department manager reviews time sheet3. Department administrator enters time into the ERP system4. Department administrator validates the time entries5. Accountant validate time entries

Current Process for Fire Department Time Entry: 1. The Fire Department Administrator exports Data from their time entry systems "Firehouse"2. The Fire Department Administrator calculates daily time and sum by pay period3. The Fire Department Administrator enter time into the main ERP system4. The Fire Department Administrator validates time entries in ERP system

Reported 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 Firehouse The 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 detail


Policies and Procedures Document Reference: There are no references to time entry in the policy document

Process Maps: Time Entry, Time Entry

Payroll Processing/ Reporting

Although 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: 1. The Finance Department will update benefits in the ERP system2. The Finance Department makes other miscellaneous adjustments (e.g. Bonus, Wellness Pay,

etc.)3. The Finance Department will update the deduction worksheet4. Then they conduct a trial run in the ERP system5. Next they process the final run6. Next they will process all AP transactions in suspense7. Then the Finance Department will add imports into the AP batch8. The Finance Department will then reconcile the batch to payroll deduction register9. Next they prints the checks (for non-direct deposit)10. Next they run ACH payments11. Then they print checks (required for ACH run)12. Then checks are distributed 13. The employee signs to acknowledge receipt of their check14. The Finance Department completes payroll (runs reports/post General Ledger)15. The Finance Department send FTP reports to the network

Reported 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 unemployment Storing 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-22

Process Maps: Time Entry, Payroll Process-1, Payroll Process-2


COMMUNITY DEVELOPMENT

Community 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 online The 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 tracking The Community Development Department would like functionality that will track impact

fees The Community Development Department would like functionality that will track

performance bonds The 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

escrows The Community Development Department would like reporting functionality that includes:

o Performance reportingo Flexible reportingo Ad-hoc reporting

The Community Development Department would like functionality that will facilitate integration with GIS (ESRI – ArcCAD 10), including:

o Scanningo Auditing (permits/licenses signature tracking)

city of bartlesville, ok erp business case · web viewthe current bank reconciliation process is...

Documents