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Home My WebLink AboutCS 5/99��OFp� �^ � 3 ~ REPORT TO COUNCIL FROM: Gillis A. Paterson DATE: Deeember 7, 1999 Dircctor, Corpor.�te Scrviccs & Trcasurcr REPORT NUMBGR: CS OS/99 SUBJECT: Rcplucemen► of the Currcnt Payroil and Timc and AttcnJancc Systems and Intet;ration with thc H/R System RECOMMENDATION: Thc Report CS OS/99 of thc Director, Corporalc Serviccs & Trcasurcr bc reccivcd anJ that: l. thc Trcasurcr bc authorizcd to cntcr into a conlract with ADP Canada providing for Ihc Icasing of PC/Payroll for Windaws, Timc and Attendancc Managcmcnt (c-Timc) solt��•arc applications; 2. thc Town's cxisting INFO: H/R Sollwarc bc moJificd and thc so(lwarc intcrfacc routines bc dcvclapcJ to automatically impon/cxport Jata across thc PC/Payroll and c-Timc applications to provide an integrated system w�ith atlendance reporting capabilitics; 3. funding for PC/Pay�oll so(la•arc anJ convcrsian costs, o-Timc sofl«�arc, timc docks, INFO:HR convcrsion and Projcct Atanagcr at an cstimatcJ cost of 558,200 plus applicable taxes bc pro��iJcJ from a transfcr Gom thc Rescn�c far ihe Rcplaccmcnt of Equipmcnt; and, 4. thc appropriutc oUicials of thc To��n of Pickcring bc givcn authority to givc cffcct thcrcto. ORIGIN: Director, Corporatc Scrviccs & Trcasurcr AUTHORITY: Not Applicable. FINANCIAL IMPLICAT[ONS: Eslimatcd software implementation and conversion co;tts are: One Tlmc Caoftal Costs Annual Costs PC/Payroll Windows S 8,000 5 27,000 sollwarc & conversion c-Timc softwarc/hardwsuc 5,200 I5,000 INFO: H/R Convcrsion 1�,000 4•5�0 S Z$,754 5 9i�,i44 Projcct ManogcmcnUConsultunt S 3Q,QQQ (implemcntation and trnining) �• � Report to Council CS OS/99 Datc: Dcccmbcr 7, 1999 % 4 Subjcct: Rcpinccmcnt of Current Puyroll Comract - Ccridian (CIDC) pagc 2 Thc annual operating costs of thc currcnt systcros which consist of CcriJian, VAMS and INFO:HR, arc npproxintotcly SJ5,000. Thcrcforc, Ihc incremcntal annual cosl of Ihis solulion is approximatcly S11,500. It is fclt howcvcr that savin�s in staff Iimc across thc Corporation will far outwcigh Ihis amount. Furthcr productivity improvcmcnts will bc an aJdcJ bcncfit with thc inlcgration of Ihc Payroll, H/R and timc and aucndancc soflwarc applications. EXECUTIVE SUMMARY: Thc currcnt payroll systcm was first "Icascd" by ihc To�en Gom CcriJiun Carporalion's prcdcccssors many ycars ago, most likcly prior to 1974. It is ouldatcJ, cumbcrsom�, DOS hased and crror pronc. It is timc to rcplacc it. Thc upgradc anJ com•crsion of Pa}�roll 3en�iccs to ADP CanaJa's PC/Payroll lor \Vindo��•s will providc for incrcascd productivily and functionality of our Payroll operations. Thc so(twarc application is Y2K compliant. Thc addi�ion of c-Timc soll�varc and hard«�ar: will rcplacc cxisting �imc clocks, pro�•iJc for a dircc; fceding of Jata inlo thc payroll systcm, providc for cxpandcJ timc rcpoAing and intcgrations �cith thc H/R sys!cm. Duc lo thc rclnH��cly lo�r onc-Ilmc custs und t6c almost no chan�c in lhc nnnuol aperating cosls this ilem is bcing put (orlh ut thts time ns buJgclnn• fmpucls �vill bc minimul. INorco�•cr, thc dcemcd importancc of makin�; impro�•cment lo Ihis criUcul aren of our operatlon necesstlated moking rccommendutions no��•. BACKGROUND: Payroll scrviccs ha��c bccn owsourccJ �o an extcmal pa�roll scn'ICC SIOCC 7l IC85( I�J%�i. TI1C currcnt providcr is CcriJian (C.I.U.C.). Thc so(l��•arc applicalian is a DOS ecrsion packagc and is vcry old anJ outJatcJ rryuiring a significant amowu of manual labour for proccssing thc biwcckiy payroll. Thc Iluman Rcsourcc systcm and Ihc Attcndancc htunagcmcnt systcm arc purchased softwarc packages operating on the To��•s's ncl��•ork. [3oth Ihcsc systcros should fced autom�tically into thc whol� payroll process. Currcntly all Ihrec applications are sland ulonc operalions and do not sharc data which IcaJs to Juplication of Jata cntry. This is incfficicnt which incrcascs thc risk of incomplctc recorJs anJ thc chancc of cicrical crrors. The scrviccs of M& N Consulting Group Inc. havc bccn cngagcd to rcvicw thc currcnt payroll systcm and investigate thc To��•n's altemati��cs/options. Thc cxtcmal Auditor has also bccn asked lo rcvicw all thc Town's financial syslcros a�hich includcs Payroll. Thc consullant anJ thc Auditor havc met to review and comparc thcir findings. A Stecnng Committcc was fomicJ madc up of thc Dircctor, Corporatc Scrviccs, Managcr of Accounting, Payroll Supcn�isor, Manager of Information Systcros and Supen�isor of Human Resourccs and the ConsultanL Thc rccommcndation Gom all p•rnics was that thc Payroll systcm, Human Resourcc systcm and thc Attcndance Managcment system bc one integrated systcm with an automulic intcrfacc among thc applications. This can nut bc accommodatcd with the cumnt applications. From this dccision thc ncxt step was to rcview whethcr thc payroll systcm rcmain outsourccd with an cxtemal payroll scrvice providcr or be brought in•housc ic. leasin�; versus purchasc. Outsouroine Thc lwo firtns rcvicwcJ for outsourcing Payroll scrviccs wcrc Ccridian Cnnada and ADP Canada. While othcr firtns may providc Ihis scrvicc, thcsc two wcrc choscn ns Ccridian is Ihc currcnt providcr and ADP is known by scvcral of thc Commiucc mcmbcrs to ha��c n product that would bc applicable to Ihc Town. CcriJian Canada offcrs an intcgratcd Anyroll, HlR, AucnJancc Manugcmcnl Systcm. INSYNC is Ccridiun's new payrollAmman resourcc proccssing nppliwtion, howcvcr, thc Ccridian rcprescnlativcs indicalc Ihc product is atill in initial tcsting nt scvcral sitcs. Thcy mcntionai that . �C . Report to Council CS 05/99 Datc: Dcccmbcr 7, 1999 � Subjcct: Rcplacement ofCurrcnt Payroll Contrnct — Ccridian (C[BC) Pagc 3 Ceridian Cannda is planning to release thc product for distribution in early March 2000. Usc of INSYNC would require the Town to convcrt both payroll and human resourcc applications. Thc estimatcd costs related with Ccridian, our current service providcr, arc as follows: One Tlme Costs: SollwnrelCom�ersion costs - Payroll $ 1,000 Sollware/Convcrsion costs — H/R 7 500 ��,?� Annual Operatfng Costs 528.000 (based on currcnt nctivity) ADP Canada offcrs an integrated Payroll, H/R, Attendance Mgmt system. Thcir Payroll proccssing application, PC/Payroil for Windows, has 6ecn operational for somc timc. Thc estimated costs relatcd with ADP are as follows: Onc Time Costs: Sollwarc/Convcrsion Costs S 5.000 Annual Operuting Costs � (based on curtent uctivity) In conjunction wilh thc PC/Payrall for Windows applicntion thc Town's cxisting lNFO:H/R Sotiware will bc modificJ to proviJe for thc ongoing hislorical employcc database records to bc updatcJ and maintaincd and allow for thc automatic transfcr of infortnation to thc ncw A.D.P. Payroll and c-Timc applications. �Vith thc intcgration of thc thrcc applicutions the Town will bcnefit grcatly. In-House: An in•housc system woulJ also proviJc a fully intcgrated Payroll, Human Rcsourcc nnd Time & Attcndancc systcm. A numbcr of vcndors wcrc contactcd, howevcr thc significnnt capital invcstment cost (+/. $200,000) in aJdition to ►he timc and resources rcquircd to implement such a system are not thc best option at Ihc present timc especially given the limiled resourccs availublc in both Information Systcros and Financc. Comoarison - OutsourcinR vs In-Housc: Thcre are a number of benefits derivcd from outsourcing versus an in-house payroll system. Thcsc arc highlighted bclow: • Costs with respect to outsourcing are a pay us you go process mcaning you only pay forthc scrviccs you use. Thereforc it is the least costly process for maintuining tlic Payroll application. • The cupital investment rcquircd to upgrade and convcrt thc cxisting system would bc significantly lowcr than that rcquired for an in-housc syslcm. • Upgrada nnd convcrsion to u new und improvcd Payroll servicc will improvc thc overnll Payroll productian process. • The training of staff rcquircd including Infortnation Systems' wau1J bc minimal sincc thc extemal payroll provider would maintnin thc npplication. • Eliminatcs ndditiunnl churges for sottwarc updatcs whcn the tax tnbles or Icgislntion chunges. Eliminates programming chargcs for new cnlculations or factors set up on thc p¢yroll. • Thc new PC/Payroll Cor Windows sottwnre dcsign fentures offer Opcn Databnse Conncctivity (ODBC) which will nllow for intcgrnlion to othcr nppliculions such ns Humnn Rcsourcc or Timc/Attcndanc. 7'rncking. . � s Report to Council CS OS/99 Datc: Decembcr 7,1999 S u b j e c t: Re pinr,emcnt of Currcnt Pn y r oll Contrncl — Ceridian (CIBC) Pagc 4 From the review by thc consultant und in consullation with stnfl; it is recommcndcd that thc Town nccept the ADP proposcd plun to convert nnd implement thc PC/Payroll for Windows services. ADP is the preferred firtn as they arc proposing a proven production system. Analher benefit is thc payroll staff have prior knowledgc anJ expericncc with ihe ADP PC/Payroll for Windows sollwnre package, With the moJification nnd upgradcs to the INFO: H/R So(iware the Town will have no nccd to convert their H/R databases to a new system which would havc resultcd in significant capital investment and staff time nnd effort to complete a total H/R conversion. Time & Auendance ManaRement In conjunction with the Payroll conversion to ADP Canada it is recommendcd that thc Town also phase in tha automated data collcetion of time and attenJance information with the installation of e-Time sotiwarc and timc clocks Gom ADP. Currently within the Town thcre are thrcc time clocks in use. The locations arc the Work's Centrc, the RccreaGon Complex anJ Don Bccr Arcna. In adJition to thcse timc clocks, stuff are rccordcd on Timc and AttcnJancc shccts maintaincJ in Exccl which arc thcn scnt to Payroll who theu entcr the samc information plus specific pay code infommtion. Slaft's time and attendance is also entered at thc departmcntal Ievel and maintained in the attendancc management system (V.A.M.S.). With thc replaccmcnt of thc existing time clocks und cxisling soltwnrc, the following bencfits will bc derivcd: . eliminatc a significant proponion of staff timc and effort rcquireJ to maintain tlie curtent systcros . climinatc thc paper timc shcets and punch cards from thc currcnt systcros • automatically rccord individuals' timc and attcndancc with a swipc of a card or input through a PC to thc nctwork so(iwarc database . timc and uttcndancc data would bc automatically cxtractcd and submitted to Payroll for proccssing without rcinput by thc payroll staU • timc and attcndance data would automatically bc cxtractcd and importcd to thc INFO:HR Systcm for reporting rcquircmcnts Thc ovcrall objcctivcs with automating the Timc and Attcndance arc: • eliminate the necd for the Jetailed time and attendnnce shccts • Icssen the nmount of staff time and cffort now collccting and maintaining this data • standardize the process for collecting Timc and Attendance information • strcamline the processes for Time and Altendance transaction recording and thc overell Puyroll production process • integration of time and attendance/HR and payroll funetions We will be investigating the possibility of similar time nnd nttendnnce reporting in othcr arcas of the wrporation where it is not curtcnUy in use later in the year. The projected costs nre as follows: One timc cost: - E-timc soRware $ 3,800 - 3 time clocks I.400 $ 5.200 Ongoing wsts: - Annunl costs S 13,000 - Traininp�Maintcnanec 2.000 515.000 • �. Report lo Council CS 05/99 Datc: December 7, 1999 %r% Subjcel: Replucement of Cuacnt Payroll Contrect — Ccridian (CBC) Pagc 5 The A.D.P. Canada e-Time soltwnm packnge like the payroll is an uutsourced scrvice requiring thc least capitnl investment of $5,200. If the Town were to purchnse n comparable in house time und attendance puckuge it would c�st approximately $50,000 -$75,000. It should be mentioncd that in nnother installalion with which thc Puyroll Supervisor is familiar the installntion of automated time nnd attendance. Ttia system paid for itsclf within six months of operotion through improved employec attendance. Since thc annuul operuting costs for Ihe new payroll system are very similar to our currcnt costs, no budgetary effects arc unticipated . Thc annual opereting cost for c-Time will how�ever be additionul, thereby increasing Ihe budget for the Corporate Services Depurtment. It is nnticipatcd that thc efficicncies gained will have a bcncficial effcct in all dcpartments thereby providing some additionnl staff time for othcr dcpartmental tnsks und responsibilities not relatcd to payroll. A7TACHMENTS: Not Applicablc. Preparcd By: 'stmc Scnior, Managcr of Accounting Approvcd / E rs By: ]e ifer Parent, upervisor of Human Rcsourccs KS:vw Approved / Endorsed E3y: J� --- Gillis . Pntcrson, Dircctor, Corporate Scrvices & Treasurer Copy: T. J. Quinn, Chicf Administrative Of(iccr E. Buntsma, Dircctor, Operotions & Emergency Services N. Carroll, Director, Planning nnd Dcvelopment B. Gajadjnrsingh, Division Head, Human Resources Recommended for the consideration of Pickcring Town uncil N h as J. w, Chief AJ� °' trativ� fficer ' 7s� CORPUIZA'iE SERV(CES DEPARTMF,NT INTERDRPARTMENTAI. MEMORANDUM TO: The Audit Commiltee: Councillor Maurice Brenner, Chair Councillor Mazk Holland, Membcr ' Mayor Wayne Arthurs, Member FROM: Gillis A. Paterson, Director, Co�porate Scrvices & Treasurcr DATE: January I 1, 2000 RE: Replacemcnl of Pnyroll System Lense Mew Timc Clock Report(ng Syslem — c•Time Sofhvure / Ilardwarc Integrutc Payroll, e-Tlme Appl(catious wtth INFO:EIR System Execut(ve Summarv The Auditor, in thc 1999 Managcment Lctter, identificd tl�e nccd to replace the payroll syslem and lo intcgrate payroll, time and attcndance reporting and the HR Systems. Th(s �vus included in report 1�IN 25/9'J ns udopteJ by Counctl uudcr Resolutiop 185/99 J(recttng the Trensurer to tnke tiie ncccssary octlon. Subscqucntly Report CS OS/99 rcqucsting approval to procecd witl� specific coRCClive actions was defeated at Ihe Executive Commiltce meeting of December 13, 1999. Payrall System o-Time SoRwarelHard«•are VAMS ]nCo:}UR Financfal Summnrv Annunl Costs (Current Provider) (Ne�v ProviJer) CcrlJlan ADP 1999 2000 Incrense(Decrensel 528,000 527,000 � S(I,000) - 15,000 I5,000 2,500 - (2,500) 4.500 4.i00 ,�.�,QQ,Q �.�.QQ Sll_500 One Timc Costs ' Cer(dlan I � incre�sefDeerease) Payroll Conversion 2000 ' 58,500 56,000 S(500) e=Time - 'S,200 5,200 Info:H/R Conversion IS.00R I5.000 #33,�d�'1 � � S 4.700 Project M�nagemrnt Consullunl ;;0 j30.000 .,�$�.�SZQ ,�.ZQQ S 4"700 No�e: (I) SS),SOOwillbe«quiredjustlortuinuinthettrtusquolnY000. � •.�; , �''3 �' •' _: � •" ` .��, �' ��l. . : ':0:, . : �. �; �,,';� , i'J : �. �.. . ':1. ..�� . . .� . . �' �! a � '� • J� '� � i� �. ' . f` •. • . a ' i�. , <,. f' + , �k. +�` �� ' Y �'�� . t •• �� . ' 79 r,, :.; ;�'; .;;,. 1��.: 1 A' ,'+ . 4 i � 1. � � , ,!� tf, ( �: � � �: C ( � �it ;�I'.i. . '��'-�' f� . Doing nolhtug Ie uc! an option as the provider will disconlinue support for the currenl DOS bused systcm, presumably somelimo in 2000. Staying wilh the current provider in a new Windows bascd system will only update Ihe current problems, not address them. As discussed, this rcquest is bcing submitted at this time following your suggestion av Chair oC the Audit Committce, Ux Mayor, the urgency of tiie situation and the fact that changes in our systcros must takc place in the coming year. By approving the go ahead now as a Pre • 2000 Budget Approval, llie City will have the systems in place by May r�ther than late Auguat / Septcmber. This implcmcntation plan will also reducc the potential for major problems and tl�e associ�ted risk factors involved with any decision to further delay tliese Payroli syste�ns changcs. You will note we will be laking corrective action to fix several problems which have bcen identificd and reported on over the past yeaz. Rationale to support tlicse changcs to our operations are summarized from several of our intemal reports, extracts from our Auditors' Reports and a Report from our syslems cansultant. The documcnls arc: Finance llepnrtment 1999 Currcnt Budget-111ay 1999: - To improve the use of managament infonnation tccluiology in the Dcpanmcnt to obtnin higher levels of timclincss, ct7iciency and e(fectiveness in thc provision of deparlmentai serviccs; ' - To providc thc Ciry with thc automatcd systems nccessary to function within lodny's business climalc; - To standardize, improvc and automate Comis uscd by the deparlmcnts. luformntfon Syslcuu Strutegic I'inn-111arcl� 1999: - Pacilitate application inlegration; and reduce Jnta duplication across multiple applications; - Data sl�ould be captured once at the mosl appropriate point and never re•cntercd In 1999 to continue thc rcplaccmcnt of oldcr financial systcros. Auditor's 1999 M1t:�nagcmcnt Leticr—August 30, 1999: - Thc audit identificJ that thc databasc system used in H/R is not synctuonizcd wilh the dalab�se used in thc Payroll, lhis leads to duplication of data entry; - The City should consider acquiring one so(twaze that can be useJ by both H/R and Payroll lo track cmploymcnt hislory, time nnd attendance; - Employcc time would be savcd in tlic future a�d morc cffcctivc dccision making can take place. . Trcusurer's Report to Com�cil—Seplember 25,1999: - Responding to Council on comments in Auditor's Management Letter - Reports that Auditor and Systems Consultants both engagcd to review financial ,rystcros - Indicates need for replacement ofPayroll Syslem � .2. • `:;. . , . . ',9 � �).. . �,t� I' ( Y �,':� ' . �. ! � • , � t�' � . Y �, • � : i' ' . ,�. ;:�. �; �i �1 . {: �1 . �� : �: •'F ' ) � � `j� . � ��.. :� r' y`j . i i . � ,.. .,.... . . j�, _.�.��... � , �s�• Council Minutee — Uclober 4,1999: ' - Auditar's 1999 Management Letter rcCertcd to Dircctor of Finance Cor any fucther action deemed necessary Auditor's Report on Pnyroll System Operat(onul Revlew— October 27,1999: - INfO:t[R, VAIv1S and Ceridinn Pnyroll applicutions do nol conununicate with ear,h olher; - Same information entcred in ut lenst two systems incrensing llie likclihood of humaz� error, - Payroll has no manuals or procedures documents for the system; - There nre Ihrcc payrolls with diCtcrent Pay codes mid pay ending dates, increasing Uie polcntiai Cor human error, ' - Payroll docs not generatc any useful managemenl reports. Ofla� spccializcd reporls havc to be prepared manually; Syslems Consultant Rcport ou Pnyroll, H/It, Attendance Systems — No��ember,1999: - Payroll is slill running in a DOS cnvironmenl; sliould be moved to Windows; - Payroll is lechnically ouldatcd and unable to meet thc existing requirements witliaut a lot of manual intcrvcnlion; - The Payroll system is not ducumcntcd and rely hcavily on the experienccd staff lo meet critical productiou deadlines; - Payroll requires each transaclion to have a number oCcodes entered, therc are loo many data scrccns; - Payroll syslem docs not provide Cor a completc onlinc record oCthc cmployees' pay hislory infomiation; thereCore, any corrections, cl�anges or adjustmeuts requires the payroll clerk to go back to Ihe printcd pay rcgisters this is a vcry time consuming process; - Thc Payroll ayslcm docs not providc any stalisticat reports lo managcmcnl; - The Payrolt syslem is s1anJ plone anJ the coding structures are different Gom the VAMS and INfO:IiR and tlicreforc yau cannat link key infarmation nnd reports are not readily available. Aud(tor's Letler rc Cnyroll Sy�stem — Novembcr 8,1999: - Syslem must bc replaccd and integraled with time, attcndance and H/R Systems Replaccment of 1'nyroli System Li October 1999, a Stccring Committee was fortncd made up of thc Director, Corpomtc Servicu, Managcr olAccounting, Payroll Supervisor, Managcr of inCortnation Systcros and Supervisor of Human Rcsourccs und thc Consultant. After our revie�vs �ud studles it �vas concluded qint the best Interest of tl�e Corporation vvould be served by A diffcrcut supplicr, ADP Canada Ltd. Failurc to take actiou norv �vill not nvo(d the cost thal must be incurred in tUe next few mouths x�lien the current provider Cer(dtan (CIBC) requires us tc move lo their oew sofdsare package INSYNC. 7'he IIJSYNC SoIlwaze package is still in bela test. The change in scrvice provider will not result ui any increase in annual costs for the Payrol( System.l'hcre will, however, be one lime slart up costs. ' ' ',.r� � ' , _ J. / .r , •:i -S- � �. �.i . '� :� � � . '� .'�• , s: .i �� 'I ,�. � , �. ��, - � � .�: ��, � , . i �t � �d 1 3 ,'l � i r: Jr �. The cstimnted Payroil costs nrc as follows: � ' ADP CERIDIAN COST (Current Provtder) ' SAV(NCS One Time Cost • SoftwardConversion costs S 8,000 S 8,500 (5500) AnnualOperatingCosts 27,000 28,000 (51,000) Leose netiv Time Clock Report(ng System — e-Timc Softwnrc/Ilard�rare In conjunction with the Payroll conversion to ADP Canada it is recommcnded that tha City also phase in the automateJ data collection of time and attcndance infortnalion with the instaltation of e-Time soltware and ncw limc clocks Crom ADP. The ovccail objeclives witli automating the time and uttendance are: • �. elimination oCthc necd Cor the dctailcd time and attcndance sheets . rcduce the amount of staff time and ellort now collccting and msunlaining this data . standardizc the pracess :or collecting time and attendance infortnation . streamlinc thc processes for timc and attendance iransactiun recording a��d dte Payroli production process . integrate of lime and attendance, H/R and Payroll functions 1'he usc of ADP's c-Timc sollwarc will allow us lo not only rcplacc thc cxisting timo rccording clocks in use in tlie City but µ�ill ailow us to cxpand llmt usc and tced aulomalically inlo lhe Puyroll System. 7'I�is would ctfectively climinatc ertors in data entry and duplicatc efforls. This information could thcn be downloaJed lo IN�O:HR cnsuring data consistency, and reporting - inlegriry. Tho projccted costs nre u Collows: Onc Timc Cost: - c•Timc soRware 53,800 - 3 time clocks 51.400 � ��Q ' Annunl OperaUng Cosls: - Annual costs S13,000 -Training/Maintenancc S 200 • SI5.000 Inlegrnte Pnyroll, e-Tinie Applicnt(ons �rilh INPO:IIR Systcm The INFO:HR softwarc package curtenlly bcing used by ttte City'a H/R staff is working well. It is an industry standard wluch can rcadily interface wilh lhe ADP Payroll and e-Timo applications. With minor modifications and upgrades lo thc INFO:HR the Ciry will l�ave no nced to converi their Hllt databases to a new system. This will aliminate in significant capital invcstment and sta[f time and efCort requucd to complete a total H!R conversion. The projected Cosis arc as Collows: • . ;r';�, ..r1 . : ,t; � � 2�1 ia,C��+r.' .. . �' 7 �i t �+I i� � .�� :� 1 ,� �� ..t,. . f ! ' !+3 t . �,.:; 1 ?+�,� ' ,, :��1 � ; ?��. �.. .,_ !• �'r. .. . . _ , _4-. }� ' � '� . � `� 1' � 1l� ; � � ' � 1 �.. ; � � :y, . . .S .. �t� . , . b `'� . �,��t , �r , , ,ti . ; ,. 81 82 One Tlme Cosb: INFO:Hltmodifications jjj.Q,QQ Annual Operating Costs - S 4.500 The atimated Project Managemcnt Costs are: One Time Costs: Project ManagemenUConsultant (implemcntation and Uaining) �_��i ✓ ' �� ' Gillis A. Puterson, Director, Corporate Scrvices & Trcasurer Copy: T.J. Quinn, Cliicf Administrativc OC(iccr � B, Gajadharsingh, Division HeaJ, Human Rcsourecs � . .5, ' ! ;�7� �1 .f .j ii� � ' ; •1� '� � � { � � ' �� `. .t } ; t � '', i � '.;� T ':, ! + ` f � � '� ' t;i � ;` . �J � J� . L r� �� ' . �� •'� � � , ; 1 j � ,{� 1 i �, � �' t `�t,.�� , �� '�� ,rr ,� � ,. : , } , } � r �,�A � , s ��: . �l �, t i� i 1 t �'- --• �' j ti , 'r,y ry '�, � • i ., ;tY. � ,�, , t,. �; . ,--- - ...._.. �i � 83 • Exlrocli trom Iho 1999 Current BuJgct o( lhe finance DepArtment 1999 Dcoarlmcnlal Goals and OFtjeclives ."to improvc Ihc usc of managcmcnt inCocmation lechnology in tlie Departmcnt to oblain highcr levcls of timeliness, e�cicncy and effeclivcncss in the provision of deparlmcnlal scrviccs:' 1999 Clialicnecs anJ Oonortunities .°to devclop u corpomtc slrnlcgic plan regarding computerizulion.' ."to providc tlie Town with Ihe automated systems necessary to function wilhin todays busincssclinwle:' . '�otentinl far Operational Improvc cn ."lo continue...to obtnin grealer efficicncies and e(fcetiveness in the provision of departmentul services." .°to assist departmcnts in thc finm�cial management of their cosls ecnter through improved financial systcros." .°ro staudarJizc, improve cuid automulc fom�s uscd by thc Departments:' • .�, . . ,; ; , i`. ;: � >4 : �. %r . ', t� �' . .. .. , +, . . ,�`i11 ' . '��, '�+ . ,• . J�� !.. it °� =� �< � + . ?' '� •Y , ;, .:' ,. � ; ` y: � • ,f. � •� , , �; / °�' ��` � ' �i; i.'� � � �� 4 . ;� $4 � `" ,�'ui��ciry �le�t, J''uaclau� � 7Il Q/ YC/ Y� ✓ l�CC O t!/ 1 Cl !/ 1 t. G' August 30,1999 P�RSONAL AND CONFIDENTIAL The Corporation of the Town of Pickering Pickering Civic Complcx One 7'he Esplanadc Pickcring, Ontario Ll V GK7 . DAWN M. FLE1T, e.ew, cti WARREN C. HURREN, ew NEIL SINCWR, e.ew, CA Attention: Councillor Mauricc Brenner Chair. Audit Committee Dcar Mr. Brenncr: In conjunclion with thc rcccnlly compleled uudil oCtlic 199R annual financial sGilements of thc Corporation oC die'1'own of Pickcring, we wish to tnakc lhc Collowing observations and comrocnts. l. �nrlment Of I�inonce A ea nJn As discussed during Uu cmiduct of the audit wid al thc lnst audit cmnmittec meeting, it is cicar that the depanmcnt has many challengcs bcfore it ranging from tnx rcCortn to computer conversions to stn((ing issues. Although Uic management und staCCof the dcpnrtment have workcd cxtremely hnrd to kccp ns current as possiblc and to service the laxpaycts nnd the other dcpartments, it is dcar that ccriain key projecls must be completcd.'Ihcse projccts include: (a) Complete thc iirplemenwtion of thc Vailtecl� Sotiware nnd completc the teport generation components of the program. Such rcports include thc general ledger trial balancc, dcpartmental rcports, nnd periodic financial statcments. (b) Commencc the process of briaging lhe capilal and reserve accounts on line with the Vailtech softwarc ns this work is still being perfomied separalely (c) Integrate Uie new budgcting sottware with the new accounting progrem in order to generatc more useful tnancial reports and assist in the preparation of the annual budget. P.O. BOX 458 PICKERING, ONTARIO L1V 2R7 TEL: (005) 883-8858 FAX: (905) 6B334TB ;i.i ,��,�' � � . ,i,I �'' , . ,, r,1 . 1ti �•y,i , . , , . ,, . �, e ; c `s' �, !��' . . . �, � 7�N , y. , � �4•:.w�.. . , . i . : �: . . . . . .. ...... .. ............,.........; . ;�_' , . ,.� .� „. (,� '�; �� t ,:. • . v 1 . , d � , � r,: ,��. { � . , ,..,: ;� ,. . �,. , � : � �'` � 4 '� . �! , L� f� • �,` �S. -. JJJt. �•r �,. ,"f�� . , . ; ! � . ;. • � , � Q� �; ,;,. . . . ;; � 1 • y (d) Conlinue to develop, tmin and recruit appropriate accounting personnel to aliuw for moro efl'ective use of managcment time wiqiin the department. Altitough we recogniu that some progress is being mnde on some oCthese issues, we would suggest that r timel�ble be prepared and adhered to ond human rcsources Ix made available, to ensure that these projects are completcd in an eCfectivc und more timely fasliion. 2. CoorJinntton of Ifuronn Rcsources Depnrtmcnt nnd Pavroll During the conduct oC tlia audit, it came to our attention thnt Qie databnse system used in the human resources Jepartmcnt is not synchronized with the database used in the pnyroll deparitnent. Allhough this has not lead to inappropriate payroll transactions, tliis could Icad to duplication of data entry nnd inaccurnle iiifom�ation ubout Ihe employce linse of the Town. Givcn thc nwnber uf pcople employcd by the Town, it may bc approppate to consider acquiring soR�varc that can be used by botl� oFtl�c departments to track employment history, time nnd attendance and address Qie baiilcing camponent in the payroll cycle. 9y using onc piecc of sotlware to perform Uiese duties in the two depariments, duplicatc data cntry cun bc eliminatcd und all uscrs will be making decisions bascd on thc sa�ne informution. Once implemenled und updated, only onc system would have lo bc maintained. Therc would be costs associatcd with thc suliware and tim: would be rcquired to initiate thc soliwarc wid its datn. }Iowcver, employce time would b; savcd in lhe futurc nnd more effcclive dccision making can take placc. 3. DePartmculal Si�n(ne Aulhorities During thc conduct of thc audit, it �vas obscrvcd timt somc departmcnt hcads have delegnted some nuthority lo Icss senior persoiu�el with respect to nutliorizing purchoses. Thc dclegation of nuthority is necessary to ensurc tl�c smoodi operation of the department. Departmcnt hcads should only delcgate such authority lo employces who have an appropri�te balance oCtraining, knowlcdge and experiencc. Such an individuul may bc a department managcr. At tlu samc time, signing limits should also be a�signed and enCoreed by the department head. When completed, each department should provide this inCortnation to thc financc dcpartmcnt. IIy doing so, tl�e dcpartment heads atid finnnce can morc cffcctivcly control thc appro��al of transactions. It is our wdcrstanding that Council is about to approve the financinl control by-law prepared by the Dicector of C•inance.7liis b��-law addresscs departmcntal signing autlioritics.'17iis by-law should be adhercd lu. 4. Ycar 2000 Stntui of Ihc Vailtcch Financial Proernm As discussed during th: conduct of the nudit, Ihe Town has received �vrinen notif cation from lhe softwnrc developer that the program can accurately proccss ye.r 2000 data. Howcver, in thc same notification, the developer has slated that "it is the responsibility of thc customer to test Vailtcch applications for year 2000 functionalily. Although the program stores ycars in Cour digit focmats, the program should be fully tested to ensure - ,'r�;:.. . +: ;� . '�. i �• �r, � . :� '�,ti• � : �: �.;.�',: . �,�j � ,r . `'�,� . .. :;�� . r + ,�,i . � t ' iii' • 1 ,�. . ! 1 '� I/ � r 1 � � ! ( ,jY ' ' � . ...r.,. . �. , , . . : �, �� ..�J . .� 7: , . �' 1 '�;+ 1:� v � � :; ' I , , � t� .�,1 ' . t� . 3 :: �;. ,t . ;',•, ': .. i. . • ' ' ' ' � , :� . +,. � ,}� ' . ,if y, • N •. . .{ ' � ': : t �i ♦ ! �'• � \ i � 85 �' � � ss , . •, compliency. Thcre is now a limeteble in place lo fully test the program by Octobor 31, 1999. Despite humnn resource conslraints facing the informntion systems dcpartn�enf and � the developer's prcmise ►hut the program can process Year 2000 dnla, we encourngc lhc � Town to sutisfy themselves thnt the program will be complient aftcr January 1, 2U00. The ' sooner thnt thcse tests are perfonned the sooner you witl havc comfort thnt the program is compliant. At tl�e snme time, if tlie program is not compliant, the Town will hnve more ' time availnble to take cortective action. If you have any questions with regards to these comments, plense fcel &ee to contact mc directly. Very truly yours, HURItEN, FLL•'TT, SINCLrtIR CNARTERCDACCOUNTANTS �i�� ,�,►,� w�� c. H�R��,, cn NS:dm `cc: Mr. Gillis A. P�tcrson, Director of financc 1; • .1 • � : . -� t� . i1; " �t , : s '.t ty' �� , �s t � .. '.#, . . �ti _ �t� t .I i i , r}: •'� 7{ � � � � . �t t; �� .. .. . . � . . . _� - . Tr i ' ' L, . . . . t+ . . . : y, . . �` ��' • j� r }. .;;' ' '`: �, . .� � • i � . , ;; : ;� , _ ' 87 COUNCIL MECTINC MINUTES MONUAY, Octobcr 4,1999 — 7:30 P.M. EXTRACT • Resolution 11185/99 Movcd by Councillor Brcnner ! Sccondcd by Cow�cillor Holland ; Thul Finance Rcporl # 25-99, dated Seplembcr 23,1999 conceming lite 1999 Audilcd I'inancial Slatcmcnt for thc Town of Pickcring bc refcrred to Council for information; and , That thc 1998 Auditcd Financial Statemcnls for the Town of Pickcring bc refcrrcd to Council far information; nnd Thnl the Managcment Lcttcr from ti�c Audilor bc rcfcrtcd lo thc Director oCFinance for any further aclion dcemcd nccessary. CAItItIGD t ± , 1. � � ,, ' . . r' . �. = ;, � i. . : �r aS . � ti� , . � j4 �: }_ ; ��t� i i(Y� , �, ' h}t �Itr .! � . �� ' � �. x,�: }�� ,�� . ��, � �+,' n ,,f �. s-� t, :i. , j 1 ` �..'� A .. ; � . ,� ` . 1 ., +: .x, F t,` � � � - /� ' . •: � . i� � { � • �� ,� � _ � �• It ,i � . - � . �-��- . t i. ` �t� ,i ��t� • t} �� . :.1 fs� ; R § , �: � , � a { � t `,<<.,;�i�� 1`_ .S� . _ �?. , _. , .. .,.r._ .—.._. _.._ ._.__. - �, . .,�; �js ° , . '9 ��,� . 4 � � Y � v It�PORT TO COUNCIL � . � , FROM: OillisA,Polerson DATE: Seplcmber2J,1999 Dircclor af Finance & Treasurcr ; ItEPORTNUMOER: FIN15-99 • SUDIEC7'; �9gg pudilcd F(nancial Stalemcnu for Ihe Town of Pickedng RECOMMGNDATION: Tha! 1he Audit Cammilke rewmmend to Caundl thal: 1. This report of ihe Dimalor of financc ond Tressurcr be rcceived m�d rckmd to Council for informalion; Z. Thc 1998 AuJilcd Financial Stalemenls for Ihe Town of Pickering be received cnd • ' fanvarJed la Council for informa�ion; 7• The Mnnagemenl leUCr Gom Uu Audilor be ro&rted to thc Uireclor of Fin�nce for any fuAhcr action decmcd necessary, wid forwuded to Council for information. ' ORIOIN: Dircclor of �innucc fi Trcasurcr AUTHORITY: • 7'hc Municipal Acl, RS.O. 1990, m amended, Seclions 8G, 87, BB, 89 end 90 FMANCfAL IMPLfCATIONS: Not Applicablc . !A , . , — • cxECUrtvcsuMt�nRV: � •��h Year Ihe Auditor o(lhe Town of Pickering, Humn, Fletl, Sindair, Chartaed Accoun�anb, . audi0 Iho yooks� acwun� and annua� financial statementr, u preparcd by the F(nance , ; Departmrnt, oC Ihe Carpomtion. This lnformalion (s then forxarded lo Couneil md made available lo the public. Acwmponying Ihese slalemenls is Ihe Auditor'a Leller of Opinion md Menagement I.ouer. • '? 'c'� ,): '` ' �:� ,�• !: �; ; �'� ' • 'e i . • • t '(fr. , : . I. �i ;� '; ( � ; �� . � . �i ,� . '�:4.. � � ! j ,�� . .� ,I � ; . . • � ,a� � 1 .. •. y r ; _t � � ! r� �. ' '�;7` �f , '; .I • 7` ;.„ ,,1. . }', � � ;, � , '� . , ; � � � ,r ,�,� , y� . . �,� � t rhd • . . :;i.. • ; . » . j � �,��;i � � � � � ��' � . ;`. _ _... _ .� , • • { 0 RepoA lo Council Date: September 2], 1999 � SubJecc 1999 AuJitcJ rinondul Smlement for ihe Town of Pickering Poge 2 DACKOROUND; ' At tnenlioned aboee, each year the auditeJ Pinand�l Statemenu nre prescnted to Council, 'fl�i� ytar I� cxceptionally lale, nol due lo nny problems incurreJ during ihe audil, bul ralhet due lo unccrtointief reg�rd(ng Ihe financiol implicalione of die provinei�l "copping legisladon" (Dill 79).'f6is infonnatian was receiveJ from Il�e Province Judng the summer, allowing ihe Audilor's Report lo be compk�ed. 1 an pleased Io advise Ihe Cammlltee Ihot Ihere were uo problemr or ilems of a quesiiuimble naluro Ih�t ell6er 1 or the AuJitor huvc lo teport lo you at tlils lime. I would like however lo t�ke Ihis oppar�wii�y �o cumnunt upun �he i�cma mcntioncd iu �he AuJilur's Manngement Laicr. I. peonrhnenl of I�fnance Aaeiidn Your ouauion is dmwn to this secilan oC Ihc report as it is smnewho� indicmive of some uf Ihc problcros Ihal have han present in Ihe depar�mnnt Wr mm�y yaars anJ which dw eurrcnl m�nagemcnt s�nl7 inl�crikd. ' Uur nbiliiy io nJJrcss Ihesa issucs liave Ikcn sevecly hmnpercd Jue lo lintitcd rcsaurccs. Currcnl mnnagcment stalr Ims Ihe expartise but unfurtunal:ly Ihe Jemonds of Ihe day lo Jay opemdons of Uie Jeponmenl prevent us Rnm Jc:ding wilh mm�y of thcsc issucs. 'fhcwfurc, aflcr cunsullnlion wllh Ihc CAU, I h:rvc rccci�cd liit �ippwvul to cn6ogc Ihc scrviccx uf Ihc Auditur lu unJctluka mt Upernliun�l Syslcros Itcvicw nf all finmiciul syslcros onJ pruccsscs in d�c Curpotntion. As ymi kuw�, iu Ihc p:u1 ilicrc liu Lwtn swnc issucs �vilh respca w tlic lin�nci�l ull'uirs. of tho G�rporution. �Viiile Ihe new mauagement st�lT in dic dcpwimcnt. �viih lhe support uf �he CAU, hnve Jono cvep�diing wiihin �heir pu�.va lo cnsure Ihot Uic To�vn �ccci��es thu Ixsl financinl inPonnmiun and ndvice, buic prublcros anJ coucems cominue. 'flicse ure roninly in tl�c nrc�s of prnccssin; finnncinl infunnuiiun; lntcmal AuJii nnJ Cnnlnd, nnJ m6u mmurs basic w Ihe gooJ man�gcmm�l of � I'iuunce Dc�mrmxnt anJ pruper linoncial prucesses onJ proceJure� Wr ihc'(own uf I'ickcrinµ. We e:�prct ihc Audiwr w rc�a�l Lock in Ihe nenr fulum ailh liis finJings nnJ reconm�cuJnliuns. 2. C,rordi� ^iion of Human Re aurces Droartmanl nnd Pnvroll ' Wa capccl Ihc AuJilor lo c�pnnd u�wn Ihcsc conuncnlY Juring Ir.s U��cmliunal Ilcvicw. In Ilic mcanlime, nc�v sy9cros hnvr lKCn caplunJ Iq� tlw I':iyiull Supervisur uuJ �hc tdnnagcr uf Accouutinb anJ �ve h��c haJ Jiscussimu wid� Ihc Ihuu:m Ilcsuu�cca 1)cpuuncnt. Il is m�ticipalcJ Ihnl, al Ihe Icnsl. IICtV �AIYfUII �IfUCI'Silll�j SUI�IVOIC 1VIII IIO « yuluJ. Tiie eunent systcm is vtry o�J, �cry omducJ, rcqui�es loo mucli munual I�bour nnJ Joes nw iNU�ct wid� the odur financial sys�ems uf Ibe Town. FuNhenuote, the curtenl a��enJnnce mm�agenent sysler.i Jues uol inlcracl wiih Ihc I'aycoll Sysiem. II is anlicipaled ilml Iliis iiem will be incluJcd in Ihe 2000 C�piial UuJgcl. J, I)evarlinental Sienin¢ A�ritiee Tlie Accou�ting wid Supply nnd Services Divlslon� of Ilie Pinunce Depar�ma�l hove undeAaken a rcview of signing awhoriiies in ihe Town. ReviscJ ouiherilies md comml mechmdsms me baing pul in ploce. It ie nnlicipmeJ �hat n funher repon on Ihis nnJ Ihc ' aforcmen�ioneJ Ilems will be mode lo die AuJit Commiuce once die AuJ(�or h�s eomple�eJ the above menlloneJ revlew. . , 4. � Y��•2000 Slatus of �he Aecountin¢Proeram This eomment, or one similar, ha� ban incluJed in mmiy financiul smtemenls of municipalities end corpomlions. II eppeus (o be fairly univcrsal in expression ol'some concem Ihat Ihe changeover moy rcsult in uncertaiNies. The concem ts wodJwide lhal 16erc me no guu�nlees Ihal cverylhing will cbmige over on Uccember ]I, 1999 wilh no problem. '[fiis comment appears io be a generol s�otement af condi�ions Ihat an Auditor cannot Ignote in 1999. .,�. . . . i .� ^ 1 i� t . ,1 �, .,,; . ..j . ;'�F 1 � ;�' '.. , �,.. 1. ��. . � - .. . .Y� . .. . � . � . . . �. . _ � . � ._.. �,�_. . ' . , ; � . ,` . ,; ,, ! 5, 0 83 � r �� ,. �' t �. ;. y ,, . �. � � � � I ,t . � Report lo Council Dute: Septunbcr 2], I')99 9 o Subjecl: 1999 AuJIICJ Finonclul Slnlement for iha Town of P(ckering Pa�{e J• 'I'rqusurcr'r Cummcnle ' � Therc ue tHO significant aspec� Ihal I, cs Treasurer, mu�t camment upon. One ts Ihe changeover in Augusl of 1998 of Ihe finnncicl syslems. Usuolly wl�en a convenion of Ihi� magnlluJo mkcs plaa, oJJidonnl time, plonning nnJ �in(ling arc rcqu(reJ to eiuum 1Uc new syslem� are perfonning corrcclly. In Ihla case Ihc parnllcl run widi Ilie aIJ sollwore w� only fur upproxim�lely sfx wceks due lo Ilmited resources. 7he new sollwore condnues �o be problemalle resulling in excessive JcmonJs on ��aff, espccially menageaenl, ond locke many ko�ures naccssary lo produce infortnaiiou nceJed by �he managemrnt oC Ihe Town. These fcalurce ore nnJily availaLlc om m�ny differcnt so(Iware pukuges. The seconJ maucr ts Ihe cominu(ng nJ�•crse efi'ais un stafl' anJ manngemenl wo�kload� Jue �o Ulll 79 nnd odier related assesemem .' nnJ msaQon legislalfon. hlos! municipulit(es were complelely unprcpored fur ihe condnuing ' dcmanJs Ihnl a•aulJ be plaad upon Ihem piertby advcrsely a(Tecling aur abl�ilies to Jc�l wilh many ulhcr yignilicanl accuuming nnd linaneiol s(guificant nmucrs. Uowcvcr, in I'ickcriny it is cven more af o problcnt due lu nll uf Ilie foregoing mullers nnJ cunccrns. Il is nnlfcipateJ Ihm bolh ol'diese ileros will bc aJJresscd furlher in Ilie 2000 OuJgds. nTTAC1IMGNTS: Not Applicable PrcparcJ/AppravcJ / Gidorscd Dy: �/��;�, �'O.A. Palerson, Directar of Finonce mJ Treasurer QAP:vw . Copy: Councillor \I, Drcnner, Clmir, Audit Cornmiuea hlayor Wa�ne Arthurs, hlember, Audil Conuniuec Cuuucillur hl. IIuI1nnJ, Mcmbor, AuJii Cuunuiucc . ChiefAJminislrotive0fficer (iecommendeJ for Ihe tonsiJetallon oC Pickedng Tawn Council Tl�omul, ulnn Che Admini�trativa0fficer . , \.. 0 �• s �,�� f � • � , � :j _ , �; ,,, _ . , � �i � � i. � . � �� ' �, i,,� i . . � ;f . � t a,,y f�� , � �, .� ��.` ' r ; �.,r; • , . • , ` ?;j: � � . �. �� '4� � {� , I '� / f 1 .. if ��,� . . , .. . ... ' �! . . . , � . � . � .I, � . . +_.. , ...—....�: �J � . �'' " : • ; ,`;. � �, . ,� %'. . 5 ,i ' � � r . .�'. .i . f �' `' . !;i: ; i -_._. ; t � ` ;�. ,i , . � � 'N: . . . .. . . . � ..�1�. ,�"ui�,�ciz, �let,�, J''aaclau� �%a. � d.. fc c o u a ta i t cm Octobcr 27,1999 Town of Pickcrtng Pickering Civic Complex Ona The Gsplanadc Pickering, Ontario L1V 6K7 t�ttention: Mr. Gil Paterson. Director of Finance Dear Sir: . hl�'J U 1 1998 F��A LETT, B BA, CA WARREN C. HURREN, C�. NE�L SINCLAIR, B.BA, CA As discussed with you mid your staft; I hnvc cotnpleted Phase 1 of thc operntional revicw of the payroll/time managemcnt system. Enclosed is tlie report of my findings. As ngrecd to by your Jeparlment and the outside computer consultnnt, my involvemcnt with lhis pnrt of the process is complcte pending a dccision wilh regard to thc compulcr syslcros for both paytoll nnd time menagement. At thnt time, I am prepared to provide assistance in establishing controls, documenting policies and proccdures and trnining persounel, 1 trust you will kecp me informed on your progress and where I can provide the best ossistance to the project. ]n tl�e meantime, I am prcparcd to move on to Uie purchasing/payablc cycle. To this end, I har-e providcd Kristinc with my schcdule for next weck in tlu hopes that intcrviews can be set up and conducted next wcek for thc devclopment of my report on this .rystem. 1 trust this timclablc mccts with your appro�•al ns we strive to complelc this rcview in a timely nnd cfficicnt mamcr. Sincerely, HURREN, FLETfS/NCLAIR CHARTEREDACCOUNTANTS �CCu.v %� • �LCJD4 Da�m M. Flett, B.B.A., C.A. DMF;dm Enclosurc cc: Thomas J. Quinn, CAO P.O. BOX 456 pICKERINO, ONTARIO L1V 2R7 TEL: (905) 883-BB58 FAX: (905j 883�3429 ;' �.I , ;+' ; ' ' ',. �, . . . !' i , �''• i. . . ' .ri;•' . � - -•Y�'- � � ;.�' , 1. � :rt� t • . i� � ,;i+�, :i � y�,,i � 7 ry � • 1• ! ' L ,i �1 tt' n� � ' � r1 r ,1� F � � .4 � 4 ��' Sl t ` � �'�1 � 1 �� z <a{ � ,,i .* i��i�t1� . � . . � . ��., _ . .. . _. � .) t 'r �i. r ,! r. , �� , . ' �� ; • , ;?. , ,1 �t, , � 1: . , 1 � ,. f1�, .I ��i .i . :i. �: .. , ,y, .r y � . � r'r _ - . � . . . d(. . ` 92 r--- ��•►� � ' ► ` �-` � li- - -M � � 1. The payroll continues to be processed within the tight deadlines, and c��rrections are being handled as quickly ns possible. 2. All departments scem genuine in their gonls to strcamline the proccss nnd work together to ensure th�t payroll is accurate and timely. 3. Payroll department has a wealth of experience which cunently isn't beuig utilized. 4. All departments nre wiiling lo muke changes to the process, given proper training. 5. Senior management is cammitted to supporting the recommendations renched collectively in tl�is review. { . !%� '� .;i � � �i: .�, : �, ,�` . i ,,,,¢ . t� .. - .. ... ti .j�. . , . ; '?r. . . :�irr'i�, �?IiII. �linf/nJr � f�%.xyev./. / �rw. �. + . .',j;. f •. � � ! , �„ ,f . ,, :7 i( � ,' _ . i��. �A' . ., . "1�... � . � ;i l ;. i �: !1 �', � ;i' ' i � t i � r � • 'i � i' � �� . 93 -z- TOVWi OF PICKERING �,Yt �LL SYS'TEM ISSUES AND CHALLENGES 1. H.R. Information System, VAMS & Ceredian do not comm�nicate with one another. The same info�7na�ion is being manually entered into at least two systems. This is a great waste of time and incieases the likelihood of human eaor. 2. The system is too rcliant on payroll personnel having "history" with the Town. There are no manuals or procedtues documented for t}tis system. 3. Systems and procedutes have been developcd in all areas without formalized training or consultation. 4. The payroll program is thrce separate systems. Pay codes and pay cnding dates, for exemple, are not the same in each system. Obviously, this increases tha likelihood of human enror. Ctiaently, the paytoll department has a vatiety of cocles for which I thera secros to be duplicafion or no clear purpose. 5. A significant number of errors in pay rates and hours end departments are expected to be cnught and corrected by payroll. 6. Tight deadiines for proccssing pay. ' I 7. Lack of ttaining in all nreas of the process including en understauding of how individual actions affcct thc process. 8. Payroll systern does not generate any usefvl management reports. Often a specializcd report would Itave to be prepared manusilly — another great lime waster. 9. "Nobody told me" — communicetion to all areas affecting the system is often lacking, !�i�vy�ra nirll. J)i�r/ni� bf.++�..�I. Im..��.r. . . :.y ',�I 7 . •'� . � . "�' � �C�,: . � �. . ;.-S, -, .,. r . ,� ,:�,'.� . . . ��: . : . �,', �� ' � ,� �� R . . � , . . ii�Y' . . } � , ': i� �' ' • j ,• t: , .�'�j . ' �` ' � '�1 I�� ' �. r�.;� ,� � � ' � +'�I�.;IF�' ' ,�,�t , `; � r . . � ' � � , . ' . l �l� j�� ,1� � 11�� M . . . ,� � ` . � " • fN .t '�`� L' . . ' � � , , , ;;r ' �#s � ,� , 1 .i. . ' . , ,� � •' . . .... + ��, i� . . : ' ; � '. . ' • 1'' •'r .� I ; ' [' 1 � � � , �, .. �:.: .. . . .• 9� - 3— � .h � - ,_ : ► : � u. � ' � ' u � I 1. One payroll system utilizing sume set of pay codes and the ability to set up formulas for calculations. 2. Ability to import datn Gom "hours tracking system" input at department lcvel. 3. Ability to create repotts by selecting specific datu fields. For examplc: Employee # 0/f hours O/f $ For Dept. X 4. Ability to password protect puy rates and permanent employee data. 5. Ability to track year-to-Jate h dnnces for hours and dollnrs for sick time, lieu timc and vacation. I 6. Ability tc track hours or dates ns requircd for chan�es to pay rates or vacation and benefit e:�titlement as stipulated in the collective ngreement. 7. Set up required monthly reports for automatic system generation. 8. Ensure that tlie staff is adequatety trained in thc use of the system, including Information Systems, who will nced to provide backup support for thc system. 9. Ability to desiE;n exception reports to provide high levcl review procedures for , payroll. For ex,imple: Hours in exccss of XX OT hours in excess of XX Employees with ratc changes in period Emplo��ees paid in prior period and not current 10. The system adopted must be subject to the network controls provided by Informution Systems to ensure that proper security and backup is provided. I��rr�i. �?/N/. rlinf/ni� (.S..�rn../. / .wwri� ..s � . i :+ �� : �{, . ' � t 1 �:.,'h, • :�' � `�� '�; � i5�.• , ;;. � • ,t f ; . .`s�: fr ti ;rl:. � . • , , �� ,�� ' � ' ! , .r,��' S ' • i •`��? , t . . , + r i r•:•�� , �' tF �/� ' - �� . 1}. : J'�' . . . .�' " ' . . � . 'r . ;; i. • � . � , ,,:,�. „� � . . \; � �t 'f • '�. f� :i �Y � . �,"�`, . � . . .j S �.►�.'�,_o_ ► � :� u. �u �; � 1. Decide on payroll and "how•s trncking" system. 2. Set up the pay codes, fixed timounts, fortnulas and employees in system. 3. Confirni carryfarwurd balances for sick time and vacation for entry in system. 4. Design report and Unin department clerks on entering hours. 5. Run parallel with curccnt system to ensure payroll accuracy. il 6. While system is bcing implemented, devclop documentcd prncedures and responsibilitics for nll nret�s of system. Meet with various personncl to ensure cmnpliance and address arc;�s of concem. 7. Providc training Cor managcment to aid in understunding reports and discuss information which couid be provided to assist in job perfonnance. -;�.i 'I , ;�. �i ?�� `' � ' • �i :ti , . . ', ; t : �,;t ,� i; s �{�. �}J�' .. , . . , .. :�ir't�h'?ir1/. �lLrc�ni� !.{w.+nw:. / ..Iw.�• _.1 i, '.i' . ,;�,+�v; �. ,�( , ��'' � .., : '� ;�, •.� �� ,, � �: '4 � � � '�: 15 9� �N�C/L� ✓'GC�j vl/lu(u/° 6'/�rtu�ul.�fccou�ta�eGv Novcmber 8, 1999 0 DAWN M. FLEI'T, e ew, cA WARREN C, HURREN, Cw NEIL SINCW R, e,e�, cw Town oC Pickcring One Thc Esplanade Pickering, Ontario LIV 6K7 Attention: Gillis A. Pnlcrson. C.iv1.A. Deaz Git: ' Rc: Pavroll Svstem As discussed with you, ( fecl Ihat there are some major concems with tl�e current payroll system. The currcnt system opemlcs in ttu DOS cnvironment, which is inconsistcnt with Uie Winduws environment oF the rest of the operating systcros. DOS is old technology nnd will ultimatcly have to bc rcplaccd. The inability of the H.R. inCo systcm, VAMS and Ceridian to communicate with onc unotl�er, the three scpar�tc systcros anJ inconsistcnt codings for payroll and tl�c lack of uscful mnnagemcnt rcports from ttie currcnt system all mulliply tlie pussibility of human crtor. Tigl�t deadlines, new personncl not given formnlized uaining nnd cormnunication brcakdown nll complicatc thc proccss. Any ncw system choscn should address thcsc concems and limit, whcrc possiblc, tlie duplication of rccord kecping. Spccific sotiwarc issues are nddresscd in my nttached report. To muke no cBange at tl�is time just mcans dclaying thc incvitnblc as U�e DOS vcrsion will evcntunlly cease to be supportcd. Many of the issucs ndJresseJ in my report cannot be rectified within the curtent system, Please review my nt�achcd report and contact me if you wish lo discuss ony matters Curlher. Sincercly, HURREN, FLETI; SINCLA/R CHARTERED ACCOUNTANTS C�w..,�, °)�� . ��t,'tl Dawn M. Flctt, P,.B.A., C.A. DMF:dm Enclosurc P.O. BOX 458 PICKERING, ONTARIO L1V 2R7 TEL• (905) 6838858 FAX: (905) 883�3428 �'�� 'y'• � r �i� : . i. . �, .. , . ; , �,�{,. ; ._.,t.- . . , � t� , ,; �� 4 � 4�11 ' �., t r� S� ��'Y1�1 � , r i , � ,tir 'j'� . , r 4 t �..) :� �� ' . . �,r.,<• '1� . . �. _,ir, .. '�r.. . - ' � . . : ( , ' �: . • , '�; f ;i .;} ; . ; 1'. . • �, � �� , . ,,. , , ,:. , ;> :; ; � :;,. ; � , . ��: � •; . �,; • . � , rt . ,��' � � � i � .�'. ' . '� 1 4 � tr ` . � 'r'..'t ' (�1 � ��. � . , ' � ��, , . ,ti•• `� . ; ' 7 � : ji� � s ,��. �� Cou�Eins C7roup , M&N Consulting Group InC. 2016 Joshuas Creek Orive Oakvnle, Ontario . � L6H 6E5 Interim Report for t6e Payroll, H/R, Attendance Managen�ent Systems - Revicw Project Novembcr 1999 97 , ti � . "�. i'- ' ! , '_� � S � 'r • • 9 " ;; � ?' ' 1,r '� ', � , �� ,, } �' � ,,1� 1 �S ; � . ' , l�, << ' 1� � � t� �� . + ' � �, ': . • � i .�' , r � .� �?r �� 7: �� t' F�j , ;r f � r I ��,t �' �.'�� f � j�'.. . �. . � 4 �� . ,� ,. j . r f., j , y. 1 ` � w ��4 + IY� J�4� ��}�1 ' � y t � ��, t �' 't� � � �'. � . � . y f i " 3l }�r t��r�t,� t .e �t - I. � ' i� r t i fr � �� j�� ) �r i j 1- t� i ^ fa� N, �'Jr.�Y( � r r - 7 5 i , � . � �. {: � + .,��. y ., ~ L�S� . 4:}3lc.3 1 ..us ._2 . t �� .'Y� t._�.�. .� ..�i . } �� 3. t . �t :. . .,_ ll . , c � , . . �. �." :,.1�•_ � . Y � •98 � Re: Yayroll, il/R, Attendance Management Informatioo Systems - Review Project This is an lnterim Rcpoi t on the status of tlus Project. Project Start Dalc: October 19th; M&N Consulting Group Inc. have conducted several interviews wich the ProJect teaat members and two user department directors and their administretive assistants. Our initial invatigation and review also includes brief discussions with eight other municipalities. In addition,lvl&N Consuiting Group Inc. has initiated contact wiih s'uc softwure vendors to invutigate and explore their products and scrvices. Two of these vendors, who are outsourcing service fums have provided presentauons to the Yroject team. Overview of FI/R Findings: The anent application soRware package Gom HR Systems Strategies seems to be working well for the H/R department; there are 6 H/R users and 2 Payrall staff accessing the system. The H/R app6cation 6as been operational about three years. The overaU user acceptance, Cunctionaliry, modularity design, help screens a�id ease of use of the application indicates the systems seems to be working well. The H/R department are using most of the modulcs available, there are still onc or two they may incoiporate in the near future. , � The WR database is MicrosoR - MS/Access which is cuaently an indusUy slandard ^nd therefore would allow for the development of interf'ace software routines to e Payroll or Attendance Management application. ' The ne:R steps in thi� review phase of the H/R application are: - To review the li/R Suate�es -Attendance Module to see if it wili provide the same controls and managemeac of time and attendance recording data as the VAMS ( Yiking Atteadance Management System); , 1 :, �: � � ,,,, �I , � i.,i . ' ',tl', ;` ?• . -; '�' ; � . E` 't �,. , 1 �, �• ! . ''F ,'� .+. � . rrj,� . f; . '�� ... . .. � � ,�. � �`., r.;• ;.t' ; I 1 � i . ` ?r , A ��, , r. , L,;�', �,r,.. ��_,, ,. . ;. � ,. . ; � }; , ��,� � �� s;�� ; .. �� J � '� � ;� . � �;�� : T t , � . . ?,% . .! , ± � �t �l f -�- J u - To investigate with the wftwaze suppGer the potrn6el for implanenting the H/R Attendance Module components to have them installed and accaued at the department levd; - To investigate the overail impact af these potendal changes on the department levels and the Information Services department; - To contine die development of the mandatory H!R selection criteria. Overview of Attendance blanagement Findiogs: The curtent V��IS soliware package was purchazed &om Viking Solutions a��d is installed across all departments. Each department is responsible for inpuning uidividual staff membcrs time and attendance records within speci6c coding class groups and parameters. The soRware has been installed and operational ovcr the past year. However, . the rystem haz not received overall user acceptaz� :e and there are some key ra�sons: 99 -1'he soRware documention and the functions that users need to use to updatr, end maintain the individual staff and department records is not only complex but difficult to understand what is happening within the systcm; - Many of thc users of the appGcation do not Ceel comfortable with the overall information and reports coming from the system and thctefore kcep another set of manual records as backup to the application; - The Reports from thc system are limited; - In the pazt the vendor wac unwilling to provide easy aceess to their program code and file layouts for ongoing software maintenance. The next steps in this review phase of the VAMS application are: - In conjunctian with thc Attendance Module - H/R Suategia review we will investigate that the coding structures, functionality needs, individuals record and department records are updated and maintained correctly within the :rystem; , - 7'o investigate what ef£,rt there is to move away from thc VAMS system to either thc iilR module or move to a totally ditferent time and ettcndena tracking system. • - To continue the development of the mandatory Time and Attwdance sdection criteria. , 2 1' �� , , ,�, ' ,` , • '�• r�� . ; i: li� " . t „� .. , -i. .:�� 5 �I.�It ' � , , � �{ � ' , tl . • � 1 �111 � . . `� � j ,.�,,1'� . • � �� ', � � t , � . ' '�• . 1 i .�f= . .. t . , . . , t\. � ' � . ��' 1 , r� , � �ti� ;.. '', ;1, . . r� ' �'� +`f � ;1A ,� ' ' �, i ' ., t``� t,� „�� ,: , , Vi ��`� � � 1 ii �4 ti;�� i �; �� . , >7: � t,..�t�� . � � . f� .. r .'�. .,r7' .. ��t�Gl:if -''�i j.i � `•� � � � ,�' ��} rj�: . _. .�oo � , , , : �� , ., ' � � 3 . �i, A � ''• . '• � � � - �j! '� � i; � �� { � �, {� � � ;. ,. ;:, < <<, � �: � r �: ��^� Overview of Payroll Findiagi: The Payroll System used by the Town of Pickering is outsourced to Ceridian ( C.I.B.C. ) servica and has been in place Cor several yeazs. The appGcadon is stand alone and is not integrated to the F?R or Attwdance Managemrnt rystems of the Town. ?here are two stafi'maintaining the Payroll services on their PC hard driva at the Town. These staff access the main Payroll epplicadon &om the Ceridian Service Bureau. Current Payrolt ApplicaHon: The major appGcation processing requ'vements are: - To run threc sepazale Payrolls - Producing Bi-Wcekly Pay Clieques for approximately 600 - 700 employees; - P 06 pay processes ue for Schedules A,➢ and Temporary employees - 250; - P 42 pay processes are for Full Time Hourly - 100; • - P43 pay processes ue for the Managcmcnt and Salary groups - 250, Costs: The estimated costs of the Ceridian Services Cor the Bi -Weekly Payroll are Sl,000; plus ycar-cnd processing for an overall Total of epprowmately S 26,000: 528,000: ennuapy. Operalion�l Issues: The current Payroll systems are r.ot documented and rely heavily on ihe Town's PayroU staff and eaperiences to meet the critical deadGnes to ensure the overall production of the tluee Bi - weekly Payrolls. Each Payroll appGcadon requires a signi6cant amount of input data Gam JilFerent forms including a varying number of Pay Rates, Pay Codos and Pay Types. Thcsc forms and spea6c codes need to be de6ned and entered for each employee Payroll transaction as input to thc system. • As the Payrol! system is stand aloae and is aot integrated with the I�t: Wo. or Attendence Management systems there is a signiHcant amount of dupGcate iuformatioa being entered across all thra systems. 3 � , � . . . . '! . � . � � . . . . . � � _r7 ' .. . � . 1 �F � . i . 1! i � ' , ;�� r • •r � ,� , „r � r , '� . . .. . ..... . : . .;�.,�... ,.�s�t .M, ._. , ._._,, , j �' I _ Q � �; ' . ! ,��,. . . � ! ' , ,.,� � .. ' � ' . . . t1�' t �� , y.. � �,� � . 's : ..,� _ �:. _ ' : 101 Tlie Current Payroll system does not provide the Payroll statf with a complete online record of the individual's pay history information and therefore if any corrections, changes or adjustments are requiral of an individual's pay the Payroll sta�'must go back to the printed Pay Registers to deterrtwu the correct�on process. The curtent PayY011 system does not provide nny Statistical report� to Payroll and the management departmenu. Speci6c data needs to be identi6ed from the detaileJ Payroll Registers a�id extracted manually to Excel spreadsheets. The curtent Payroll system is accessed and inuntained by two Town sta[f utilizing two Gnked PC computers operating in a DOS environment with Dial Up capability to the Ceridian ( C.1.B.C. ) Service Bureau. T6e neil steps !or Payroll / Recommeudations: Further to the review of the H/R, VAMS, Payroll systems M&N Consuli�ng Group Inc. and the Project team members have attended prescntations by two vendors who provide outsourced services for Payroll, H/R and'Cime Management applicatioas: - Ccridian Canada Ltd.( C.I.B.C. ) • The curtent Grtn supplying the outsourced Payrnli ��rvices to the' •.wn; - A.D.P.Canada ( Scotia Bank and Bank of htontreal ) - Many years expericnce in delivering outsourced PayroU applications to pubGc and private secror organizations. T6e Ceridian 6rm has been servicing the Town's Payroll nceds for sevcral years. The curtenl wtlware package has also been in place a few years and is out of date compared with whats currentiy availabie in the mazket place. On October 26th. the Project team attended the Ceridian presentation of tde product they would be proposing to «piace our curtent soQware. ?I�e product W SYNC is a new integrated [-UR and Payroll Windows soRwnre package with Crystal Raports Writer. Overall the product loolu very impressive and cenaiiily would be a major improvement in what is curendy being uscd by the Town. 4 � , ; • �� ;; ,Y . '... ;,�, • � t � ' � �� ; � `�� tt,, ' <�. , : , ' ', { • • , ' ;• , 1,�r� . s, . i ;� ' �' , Y ��. . ; � t; � '�•' + _ j.� � � , i ,. , }' 'f ' ��' ' { �±, � , , , ,, r ! . ; . ( ,` � ,:: ; �. � �i i ` � : � � , � ;� ! � ,..-.j_� . ._., , , . .. . .. . r, ��. '� , , „... .� . . _ .r� . .., . . . . .. .�7 . . . �ioz 0 � 'I'he Ceri�ian reprcsentadva ir.cacated the new IIJSYDIC praduct was still in bett testing a� several si�es. They also mcadoaed that Ceridian Canada aze pianning to rdease the produa for dis.riburion early �farch 2000. • . The r1.D.P. Cz.zda presentadoa to the Project team a•as held Tuesdxy, November 3nd. the Pc / Payroll for Windows a�plication has beea operational for some.ime. Much bf the prae�ia�ion wu an inuoduc::on to A.D.P. Canada and its ouuourcina servica in ehe Payroll and IiiR senices. • � T6e bfunicipxlity of Clarin¢�cn have implemrnted the AD.P. Caaada Payroll and H/R senices and sheg indicated •h2c the rystems are worldng 5ne. They zlso mendoned that ' the overall training and sup;�or. servias Gom AD.P. 6ave been timely and mort satisfxnorv. Tne Clarington Pz}7oU is approximately 500. T6e :1.DP. Cz�ada reprueatz7ve 6u proposed thev PayroO servic:s as an altanative to the Town's cu-eat supplier Cw�diu�. They are also proposing to have the Payroll up and runnin3 in thes emvonment by January 2000. �. . Payroll Recomeudatioos: M&N Consulting Group Inc. ue recommending that the Town accept t6e AD.]'. t proposed plan to convert and implement t6e PC / Pa}TOU for Wiudows semca uow to ensure the Jazn:ary implemeatztion timehame. • As a result of reviewing the taro 6rau available to outsource Payroll servica - t6e AD.P.Canada sale;ion is the praferred supplicr as they aze proposing a prov�n production rystem. ' � . The estimated wsts to up¢r�de and comert the existing Payroll servica including parallel tating would be appro�natdy 510,000. The ongoing annual wsts to run t6e Payr�Jl m'l! be approximat:ly the same as Ceridian wsts - 530,000. ' m 5 � • .. _ . .. � �I r �lS � . �.. . ' .� : �- „s� . : �) . . . � � . , . . i. . � ii ' , ..�1. . . . . . .. .: . � � . .. : . ' � .. � ��,I�f i .. i . . � � .. . • _\'. ( ,:� � . 1 � ' �'� . . �1 �� r,1T . . . t � ,t . , . . ��' ; :.� �. ., .i•. � i lt , � i;� , �%": ` ' ' `"� :� , r � ! t,4 i '; ,�: '� i J ��t j � 4. . t� � �1� � ` ` • , y rt .-� } ' -'iF � � . '(+ . 1 't � t � ::� i � � �U ;� � ' � . _ _ �' r _ .., _ . . •>s .,, �. ;� , Projected Bcnefits to the Town are: ' � - Continuing to outsource the PayroU servica is considered the least cosdy process for maintaining the Payroll application; -'fhe Capital Investment to upgrade and convert the existing system is S10,000. wluch is si,ni6cantly lower than what an in house systcm would cost; -�th the upgrade and conversion to PC / Payroll for Windows scheduled for • January implementation this will result in less conversion effort and start up costs = Tlie upgrade and eonvcrsion to new and improvcd Payroll services will improve tlie overaU Payrc>ll production proccss; - Ttie Town's Payroll stafi'have prior knuwlcdge and experience with the AD.P. PC I PayroU for Windows soflwaze package; - The training eR'oit with the A.D.P. Payroll services would be minimal; - The acw PC I PayroU for Windows soflware design features o6er Open Database Coanectiviry ( ODBC ) which will allow for integauon to other appGcations - i.c. ( I-T/R, Time / Attendance Tracking ); - The PC / Payroll for Windows applicatian is Y2K compGant. � t , �6 �n3 • c , - , .e L ��1^,�. � , ;i . I ', � • • s ' , . ��t � � �, . �1 . ;' � � , !, ��,,�',} a , a. '4�i ` �"�� • `;. '1' �f 1:� . ,:4:. ' � , � . �� `,�: � � i � �� ,;�; �t i� �j ( ! _ '� � , r Q � �, � "; � ;�t�� + _ � ' ,�. ' �� < � � ;, . " , �� , �:: ,g . j , � :'� �a; .�t,l, i��:i� h3� .. � . . f.: .ro�u �� r�'i> . �., .. . - t� . � . . �'� . , . 1R4 � . • EXECUTIVI; COMM[TTEE MEETINC MINUTES MONDAY, Decembcr 13,1999 — 7:30 P.M. u EXTRACT "23. CORPORATE SGRVIC�S REPORT f105/99 REPLACEM ENT OF TF1E CURREN'f PAYROLL AND TIME ATTENDANCE SYSTGMS & INTEGRATION W1TIi THE H/R SYSTEM" ? 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