ERP Needs Assessment Report SUMNER COUNTY, TN DECEMBER 14, 2012

ERP Needs Assessment Report SUMNER COUNTY, TN DECEMBER 14, 2012

Table of Contents 1 Executive Summary... 2 2 Assessment by Functional Area... 9 3 Technology Readiness Assessment... 37 4 ERP Market Analysis... 47 5 Recommended Next Steps... 55 Appendix A: Project Charter... 65 Appendix B: Application Inventory... 79 Appendix C: Sample Approach for /Implementation... 83 Appendix D: ERP Cost Estimate Assumptions... 85 Appendix E: Sample System Roles & Responsibilities... 86 Appendix F: As-Is Process Maps... 88 1 P a g e

1 Executive Summary Sumner County (the County ) and Sumner County Schools (the County ) have approximately 5,000 employees (both County and Schools combined) and an annual operating budget (both County and Schools combined) of about $290 million. In 2012, the State of Tennessee enacted the Financial Management Modernization System of the County of Sumner, TN of 2012, or otherwise known as the 2012 Finance Act. As a result of this Act, the County and the Schools are to streamline many business operations and modernize associated accounting systems on or before June 17 th of 2016. This deadline, coupled with a desire to streamline County business processes are the primary drivers for the ERP Needs Assessment project. The County currently operates Zortec financial management software from Local Government Data Processing Corporation for its Enterprise-Wide Resource Planning system (ERP) that includes financial, procurement, and payroll functionality for both the County and Schools. In addition, staff use several shadow systems for a variety of other functions including human resources, inventory management and asset management activities. Shadow systems are defined as duplicate systems used to check against the primary system or to enhance the functionality of the primary system. Shadow systems include Microsoft Office Suite products such as Excel as well as other commercial off the shelf (COTS) software such as DataQuest for Human Resources activities that is used by the County to support other administrative processes. The County implemented Zortec approximately 15 years ago. The County recognized that its current Zortec environment is aging, making it increasingly difficult to provide end users with the level of functionality they desire. The County would like a newer system that is robust, easy to support, and has more recent ERP functionality (e.g., self-service capabilities and workflow functionality). As a result of the lack of functionality in the current systems, coupled with a need to modernize financial management systems as per the 2012 Finance Act, the County determined a need for a comprehensive assessment of current back office systems and business processes to determine the feasibility of replacing Zortec with a newer ERP solution. Specific goals cited by the County for performing an ERP Needs Assessment include: Incorporate fully integrated "best business practices" Develop a system that is user-friendly and empowers departments to improve their business processes Add and improve functionality in back-office functional areas Improve quality and accessibility of information for decision support Eliminate paper-based workflow processes and forms Reduce redundant shadow systems, data entry, storage, and paper processing Improve operational effectiveness and productivity Enable e-government initiatives, including enhanced customer service and web self-service Reduce the number of systems we own and support and their related costs by retiring existing legacy and back office "systems" and tools With these goals in mind, the County requested that Plante Moran perform the following activities: Examine the major strengths and weaknesses of the current ERP and shadow systems in addition to their associated internal practices and processes. Map as-is business processes and provide recommendations for business process improvement 2 P a g e

Identify key decision points related to the replacement of the current ERP system Create a Request for Proposal (RFP) in order to identify a future ERP provider and solution. The RFP, including software specifications that document required functionality for each business area, will be developed following the delivery of this Needs Assessment Report. 1.1 PROJECT SCOPE The intent of this project was to perform an assessment of the County s current financial and personnel environment and identify key strategic options and recommendations. In addition to these core ERP functions, the project included an assessment of all major best-of-breed and third-party systems used by the County. Specifically, the project scope included conducting project management tasks, reviewing documentation, conducting interviews and assessing the County s technical environment to develop this ERP Needs Assessment for the following functional areas: Processes Included in Needs Assessment Phase Accounts Payable Bank Reconciliation Budgeting General and Technical Requirements General Ledger/Financial Reporting Human Resources Payroll Performance Management Projects & Grant Accounting Cash Management Inventory Management Purchasing Cash Receipting Investment Management Time & Attendance Dashboard Debt Management Misc. Billing and Accounts Receivable Fixed Assets Document Management The project scope excluded recommendations for the following specific systems and processes: CRM System Law Enforcement Systems Health Care Patient Systems Student Information Systems Jail Management Systems However, interfaces to many of these systems were included as part of the study due to the importance of their function in supporting the related business processes covered within the scope of the project. 3 P a g e

1.2 PROJECT APPROACH The following chart illustrates the approach that was taken in performing the ERP Needs Assessment: 1. Initiation Define Project Organizational Structure Develop Project Charter Develop Project Plan Establish Project Collaboration Center 2. Needs Assessment Review County Documentation Conduct Departmental Interviews Assess Technology Environment Map 'As-Is' Processes 3. Draft Report Compile Findings Identify ERP Options Conduct Visioning Prepare Draft Report Develop Action Plan Present Draft Findings 4. Finalize Report Review Draft ERP Needs Assessment Update Draft Report Finalize Report The overall goal of this needs assessment was to define a future course of action for the County s ERP and shadow systems. The project was conducted using a participative and inclusive approach with significant input from County management and staff to ensure accuracy, completeness, and ownership of the resulting recommendations. Participation was obtained through the following activities: Establishing a Project Sponsor to maintain the project vision, act as a project champion, provide a strategic perspective, and to remove project roadblocks when necessary. Defining a Project Manager and co-project Administrators to ensure prompt and clear communication between the County and Schools in order to manage project activities, ensure project deliverables were reviewed by the appropriate staff, and to provide progress updates to the County management and other interested stakeholders. Developing a Project Steering Committee to assist in creation of the project charter, work with the County staff to identify needs, make decisions about the project, and review and provide feedback on project deliverables. Facilitating multiple project management status meetings to manage project activities and provide status updates. Conducting interviews with the County departmental end users to evaluate current systems and business processes. Departmental management was encouraged to participate and invite team members. Collection and review of numerous documents provided by the County, as well as completed questionnaires by the departments. 4 P a g e

Soliciting input from the participating Departments that included the evaluation of the following items: o Identification of current systems o o o o o o o o Duplicate entry / re-keying of information Issues with / shortcoming of current systems Strengths of existing systems Unused features / functionality of current systems Opportunities to interface systems Unique County business rules Vendor interaction Current technology project initiatives / Future technology projects The overall goal for implementing new technology not only focuses on the technology itself, but also aims to enhance existing business processes performed by individual departments across the County. Technology is intended to enhance departmental business processes by: Making them more efficient Making them more effective Improving decision-making Providing enhanced customer service to both internal and external customers Improving access to information Streamlining processes to reduce costs. 1.3 SUMMARY OF OBSERVATIONS The approach Plante Moran followed in developing the Needs Assessment report focused on identifying how the current technology applications supports the County s business goals and denoting opportunities for improving the effectiveness of business processes performed at the County in the future. The key findings and opportunities are further described in the Current State / Gap Assessment section of this report. We have also summarized the findings and opportunities in this Executive Summary section as presented below. 1.3.1 Key Findings Aging Financial System Lacks Functionality Found in Many Modern ERP Systems Limited Access to Information Recent advances in ERP systems, which the County s system does not currently provide (either because they are not available or were never implemented); include electronic workflow and self-service functionality. These functions significantly enhance efficiencies, as they enable endusers to complete and route transactions to the appropriate decision makers leveraging the use of notifications and queues which allows for greater organization and less redundancy. The County s use of separate software systems for core financial/human resources and purchasing functions causes significant delays, manual processes, and reconciliations, as staff do not have access to necessary, detailed information in real-time. 5 P a g e

Lack of a Central Time Entry System and Lack of Integration Between Departmental Time Entry Systems and The Zortec System Inhibits Time Tracking Activities Lack of an Integrated Method of Tracking and Calculating Information Has Led to the Implementation of Manually Intensive Stand-alone Shadow Systems and Processes The manual nature of the County s current time entry process makes it difficult to accurately manage employee time worked. In addition, the County departments use several systems for time entry and related activities, which are not interfaced to the County s payroll system. This creates excessive manual reconciliation as part of the payroll process. Integrated functionality for these processes is available in modern ERP systems. Many of the shadow systems consist of individual Microsoft Excel spreadsheets and Access databases that require excessive time to use and maintain. Incorporating the information and calculations from these shadow systems into an integrated ERP system can reduce the effort required to maintain the information, make information more accessible to others, eliminate redundancy and manual reconciliation and reduce the risk of human error. 1.3.2 Opportunities There were a number of consistent themes noted throughout each of the functional areas. The unmet needs, which County management and staff expressed as opportunities for improvement, are summarized as follows. 1. Full integration between all modules, allowing for the elimination of shadow systems. 2. Real-time, immediate update and access to additional financial and human resources information. 3. Single entry of data and reduction in manual processes and shadow systems. 4. A consolidated modern system with user-friendly features (e.g., easy navigation, drop down boxes, drill down functionality, validation of data upon entry, etc.) that offers on-line help functions and customized system documentation. 5. User-friendly, user-driven and flexible reporting tools that support the information needs of staff and the County Commission including tracking and reporting of performance metrics. 6. Elimination of paper-based processes and replacement with automated, online workflows and approvals. 7. Streamlined business processes incorporating established best business practices. 8. Self-service capabilities and other e-government opportunities such as employee selfservice, remote time entry and mobile workforce capability. 9. Improved reporting capabilities. Overall, the majority of the unmet needs that are listed above could be met by a public sector based ERP system with a common database. 6 P a g e

1.4 SUMMARY OF RECOMMENDATIONS 1.4.1 Recommended Strategic Direction The County should direct its analysis efforts towards evaluating the advantages and disadvantages of changing the current environment through implementation of a new suite of integrated ERP modules from an ERP provider. While cost implications of current inefficiencies were difficult for the County staff to quantify, there is a common belief amongst staff that information tracking tools and processes are inefficient and there is a universal acknowledgement that current information silos are a root cause of the problem. The County would be best served to move toward a newer ERP via a competitive bid process. Overall, this strategy would provide the County will the following benefits: 1. Opportunity to Leverage Technology for Business Process Improvement: Many of the benefits of an integrated ERP solution are derived from the system-wide features built into each of the system modules. Examples of such features include the following: Common Database Robust Development Tools Versatile Ad-Hoc Reporting Flexible Chart of Accounts and Budgetary Structures Audit Trails/Drill Down Capability Workflow for Automation of Business Processes Cross module integration Content Management Built-In Best Practices The strategy of moving toward leading ERP packages will lead to the standardization of business processes across the organization. Because customization increases both current and future software costs, the County can adopt the vanilla processes and best practices embedded in the software. An added benefit of this is greater discipline across departments. 2. Comprehensive Functionality: The strategy of moving to an integrated ERP solution is to provide the majority of functional and technological needs of an organization in a comprehensive suite of integrated applications. As a best practice, a future ERP solution for the County should include a time entry module allowing all departments to monitor and track employee time entry and leave balance detail. 3. Reduce Software Fragmentation: Compared to the current Zortec environment and the standalone systems, a newer ERP would be the backbone of a comprehensive systems modernization strategy. In addition, the selection of an ERP system will guide future IT investment decisions as those investments would need to interface with the ERP software. Assuming that the results of the Needs Assessment are considered and the recommendations for system selection and implementation presented below in the report are followed, we recommend that the County replace current systems with an Integrated ERP. 7 P a g e

1.4.2 Recommended Approach To implement the recommended option of replacing the current systems with an integrated ERP environment, the following approach is recommended: 1. Review and Obtain an Understanding of the Needs Assessment Report: The Needs Assessment Report and components should be reviewed in its entirety to gain an understanding of what is being presented and to prompt discussion and feedback on elements of the assessment. 2. Garner Support for the Plan: Within the Needs Assessment, there are numerous recommendations that will direct the use of staff time and other resources at the County. Support for the plan will be essential in its success. This support must come from County leadership including the County Administrator, Schools Superintendent, Department Directors, and the County Commission. 3. Establish Capital Budgets and Obtain Funding: As part of the initial implementation of the Plan and on an on-going basis, funding will need to be obtained to implement the initiatives in the Plan. As vendor proposals are received and due diligence activities conducted, narrowing the County s selection towards a select list of finalist vendor(s), the County should refine preliminary projections and develop a more specific Total Cost of Ownership (TCO) over 5-10 years factoring in all internal and external costs. This can be accomplished through a best and final offer (BAFO) process and contract negotiations. 4. Execute a Plan of Action: Once approval for the project has been obtained and initial capital funding requests initiated, the implementation of the Request for Proposal tactics can occur. Additional steps in a Plan of Action are as follows: Plan of Action Summary 1. Develop a Project Structure and Governance Model 2. Develop a Structured ERP Request for Proposal 3. Perform an Open Procurement 4. Balance a Strategic Vendor Decision with a Preliminary Investment 5. Leverage a Prime Vendor Approach Toward Implementation 6. Develop a Phasing Plan 7. Develop a Project Staffing / Backfill Approach 8. Develop Plans for Data Cleansing and Data Conversion 9. Develop a System Interface Plan 10. Plan Approach for Report Development 11. Manage the Changes that will be Required by the Project 12. Plan and Execute Project Communications Based on Stakeholder Requirements 13. Strategically Perform Process Redesign to Implement Best Practices 14. Implement Complimentary Modules Together 15. Plan, Deploy and Sustain Staff Training on the New ERP System 8 P a g e

2 Assessment by Functional Area One of the primary reasons for selecting and implementing a new ERP system is to improve the efficiency and effectiveness with which business processes are executed at the County. This includes the ability to more easily access and report on information in order to make informed decisions. A majority of the Needs Assessment phase of the project focused on the review of existing business operations and the systems that support these operations. Through a series of interview sessions with County departments, a large number of issues and opportunities with existing processes and supporting systems were identified. Each opportunity was identified with a resulting decision as to a future course of action by the County. All of the decisions will impact one or more of the following: People Policy Process Technology Each of the issues and opportunities defined in the following sections has a decision timeframe associated with it as follows: : Prior to final vendor selection Implementation: During implementation of the selected solution The issues and opportunities identified on the following pages have been organized by module within their line of business. They should not be viewed as a comprehensive list of ALL issues that were defined during the needs assessment phase of the project as the current environment has a significant number of issues related to functionality, integration, and process challenges inherent within the existing system s infrastructure. Likewise, the decisions highlighted below should not be viewed as a comprehensive list of ALL decisions that will need to be made during the course of the project as there will be a large number of specific process-related decisions within each functional area that will be reviewed and assessed during the implementation phase of the project. The issues, opportunities, and decisions highlighted below are those that were noted during the interview sessions as one of a significant nature that will likely require discussion among the County management team. Additionally, certain decisions will need to be made prior to the implementation phase of the project such that a proper Statement of Work (SOW) with the selected vendor can be established. 9 P a g e

1.1. Core Financials AP/Purchasing/Contract Management/Vendor Maintenance Organization Issue Opportunity Decision Timing 1. Schools Individual schools issue manual POs to central office. Electronic POs would save time and help eliminate potential errors. Determine if County Schools want to move forward with electronic POs to all schools. If so, identify best approach for implementing electronic POs to the individual schools and incorporate into software system requirements. 2. County P-card transactions against POs do not liquidate encumbrances. This has to be done manually. The automatic reduction of encumbrances associated with POs for p- card transactions will reduce the amount of manual work that needs to be done. Determine the importance of this functionality in the overall system selection process. 3. Both Contracts are manually tracked to determine the timing for re-bidding. The ability to track contract expiration and send a notification or flag for renewals will not only reduce manual effort, but may increase the County s responsiveness to contract expirations. Determine the importance of this functionality in the overall system selection process. 4. County Prior year POs are tracked in a separate spreadsheet and is a manual process. Tracking prior POs within the main system would remove the duplication of effort, opportunity for errors and potentially simplify reporting and tracking processes. Determine the importance of this functionality in the overall system selection process. 5. Both The current system does not maintain any historical information about POs, including amendments or liquidation. A system that maintains historical information on transactions will allow for more accurate analysis and increased audit capabilities. Determine the importance of this functionality in the overall system selection process. 10 P a g e

AP/Purchasing/Contract Management/Vendor Maintenance Organization Issue Opportunity Decision Timing 6. Both There is no vendor self-service function for AP resulting in additional phone calls and correspondence with vendors. Vendor self-service functionality should reduce the number of phone calls and increase payment processing efficiency. Determine level of AP functionality to be provided through vendor self-service. If needed, determine the appropriate phasing of this functionality as part of system implementation. 7. County The current system will allow two separate individuals to create a new vendor at the same time, but will assign the same vendor number to both vendors. This causes one of the vendors (and associated information) to be overwritten. A system that restricts vendor creation and only assigns a vendor number once will reduce repeated efforts and frustration, and insure accurate information is entered. Ensure that the selected system restricts the creation of two vendors with the same vendor number. 8. Schools The current vendor file is overpopulated and contains a large quantity of inactive vendors. It is estimated that there are 12,000 + vendors in the AP vendor file and about 3,000 of them are active. Implementing a new purchasing system will provide the County with an opportunity to cleanse the current vendor database. Identify what vendors to convert into a new system. Initiate a data cleansing process to purge vendors that are no longer needed for population into the new system. 11 P a g e

Budgeting / CIP Organization Issue Opportunity Decision Timing 9. Both Budgeting information are produced in real-time but is not readily available in real-time. Departments receive a monthly budget report from Finance which they reconcile against. Select a system with real time budget reporting/query capability. Determine the importance of this functionality in the overall system selection process. 10. County Manual intervention is required in early July (before the new budget is entered) in order to create expenditures. Once the budget is entered, another manual adjustment is required. (It is taking out a code D before a purchase order can be issued. Once the budget is entered, the D is placed back.) Select a system with a fully integrated budgeting and budget prep module. Determine the importance of this functionality in the overall system selection process. 11. Both The budget preparation process is done in excel (offline) and any changes or adjustments are entered manually in Excel. Later the budget is entered manually into Zortec. Streamlining the budget preparation process and using data within the database will improve data integrity and increase the speed of the process. Determine the importance of this functionality in the overall system selection process. 12. Schools There is not currently a long term capital improvement plan that forecasts projects to be funded 3-5 years into the future. In the past, the County s General Operations Committee produced longterm projects as has the Director of Schools. However, these plans are not comprehensive i.e. include estimated maintenance costs, maintenance schedules, and replacement schedules. Develop a best practice capital improvement budgeting process and build system specifications to support the new process. Determine the importance of this functionality in the overall system selection process. 12 P a g e

Cash Receipting Organization Issue Opportunity Decision Timing 13. Schools The point of sale system (Horizon) does not interface with the current system. Data has to be entered twice and it causes significant integration issues. Most ERP systems either have standardized interfaces to numerous point of sale systems or can easily build an interface. Identify required interface points and incorporate into software system requirements. 14. Schools Schools make daily deposits into an School Nutrition Program (SNP) account for their school. At the end of the month, the SNP writes one check per school to the Sumner County Board of Education (45 checks). The Sumner County Board of Education then drives the checks to the Sumner County Financed Department and provides a receipt for SNP to reconcile to the General Ledger. A single SNP account with varying subaccounts for each school would allow for easier fund transfers. The implementation of a shared ERP would allow for a simple interface between the County Trustee and County Schools to simply transfer funds. Identify a bank that has the ability to create sub-accounts with detailed tracking to allow ease of fund transfers. Identify interface requirements for transferring funds between the County Trustee and County Schools and incorporate into software system requirements. Implementation 15. Schools There is no integration between the SNP funds and school activity funds, so if any money needs to transfer between or be split among funds, a refund process has to be followed. It should be noted that there is not a standard bank that all schools use. If a single bank was used district-wide it could allow funds to be transferred between accounts. The implementation of a new ERP would allow for an interface to be built between the individual School systems and County Schools to simply transfer funds. Identify a bank that could be used district-wide and consider moving all schools to that bank. Identify interface requirements for transferring funds between the individual schools activity funds and County Schools and incorporate into software system requirements. Implementation 16. Schools The process that SNP & County Schools follow to balance deposits back to the Trustee is manual. The implementation of a shared system would allow for much of this to be accomplished through the system, with exception reports run for issues. Identify a clear, consistent process for balancing deposits that meets both the School s and County s needs. Incorporate requirements into software 13 P a g e

Cash Receipting Organization Issue Opportunity Decision Timing system requirements. 17. Schools If a NSF check is received for a student account, the money is not removed from the student account, even if it is not collected (school food service managers and SNP collect these funds currently). A NSF service would allow the District to save time that current staff are spending on this process, and may provide a better return on NSF checks. Identify potential NSF services and do a cost/benefit analysis to determine if it makes sense to engage their services. Implementation 18. Schools All cash receipts are deposited as a single deposit for each category (e.g. SNP has 3 deposits that total X). There is no way to tell what comprises the total deposit. Most ERP systems either include reports that would show this detail or provide a report writer so that a standard report could be created to provide this detail. Identify all detail that is required from the individual deposits so that a report may be created and incorporate into software system requirements. 19. Schools There is no interface between School Funds Online (the financial system the individual schools use) and the current school system. 20. Schools Schools write checks to the Central School Board Office rather than just transferring funds for items such as daycare, field trips, print shop, transportation, registration fees, building projects, and computers. Most ERP systems either have standardized interfaces to numerous systems or can easily build an interface. If a single bank was used district-wide it could allow funds to be transferred between accounts. The implementation of a new ERP would allow for an interface to be built between the individual School systems and County Schools to simply transfer funds. Identify required integration points between School Funds Online and the County/School system. Work with Payroll, the bookkeepers, and appropriate staff from the Finance department to ensure that all integration points are identified. Incorporate needs into software system requirements. Identify a bank that could be used district-wide and consider moving all schools to that bank. Identify interface requirements for transferring funds between the individual schools activity funds and County Schools and incorporate into software system requirements. Implementation Consider creating a single monthly invoice for all items, rather than invoices 14 P a g e

Cash Receipting Organization Issue Opportunity Decision Timing for every single item. Implementation 21. Schools The process for receipting money within the schools is fairly manual, requiring a handwritten collection log, multiple copies of receipts and a manual analysis of deposits. Work with School Funds Online to determine if there is a way to automate much of the manual process. Meet with School Funds Online to review current process and see how this process can be automated within the system including potentially allowing employees access to the system in order to enter the money they collected directly into the system prior to providing it to the Bookkeeper Implementation Long term: Ensure that the need for an interface between County Schools and individual schools is identified in the software system requirements. 15 P a g e

Fixed Assets Organization Issue Opportunity Decision Timing 22. Both The current process of tracking and reporting on assets is completely manual and is extremely time consuming. Because of the manual aspect, staff is never sure if all assets have been accounted for. An integrated Fixed Assets module will allow for assets to be tracked upon acquisition. This will increase the efficiency of the process and allow for more time to be spent tracking down any assets that were missed. Implement a Fixed Assets module, update business processes, and educate department staff to help reduce the number of assets that are not tracked. / Implementation Tracking assets within the system will allow for more robust reporting may eliminate the need to manually compile the data for the auditor, as it is done today. 23. County Sales from govdeals.com are manually included into the spreadsheet for tracking purposes. Importing the data electronically will reduce the opportunity for error and the time required to complete the task. Determine if an interface file can be used to electronically upload the data from govdeals into the ERP system. 24. Schools There are dozens of systems used throughout the schools for inventory management; however, there is no transparency between the systems to identify stock on hand. Implement a centralized inventory tracking system for inventory items that are necessary Include inventory management specifications in the RFP document. 16 P a g e

General Ledger Organization Issue Opportunity Decision Timing 25. Both Account codes are not intuitive. As such, there are many errors when accounts numbers are input into journal entries and sent to Finance for positing. Include specification for account drop down lists for users to have access to only those account numbers they are allowed to post to. Identify what users should be able to post to the GL in a future system environment. Implementation 26. Both The journal entry process is completely manual and time/labor intensive. Implement a system with improved journal entry functionality including journal entry upload capability. Include specifications for automatic journal entry functionality within the functional requirements for a new system. Identify what current journal entries could be automated in a future system environment. Implementation 27. Both While the system enables the transfer of funds between departments many departments issues manual checks to other departments instead of fund transfers. Become more efficient by electronically transferring funds vs. generating paper checks between departments. Review the interdepartmental transfer policy and identify ways to increase the number of transfers to limit the number of checks department are issuing to each other. Identify which manual fund transfers can be electronic in a future system environment. Implementation 28. County Line item budget control is being accomplished manually. Implement a system with automatic budget control functionality. Include budget control specifications in the RFP document. 29. County Staff cannot easily identify an account balance (asset, liability, revenue, or expense) for a certain date. Currently, they have to get the balance by manually totaling transactions for individual accounts. This is due to the system cannot close balance sheet accounts monthly or upon demand. Point-in-time reporting functionality can eliminate the need for manual calculations for individual GL accounts, thus reducing time and increasing accuracy. Identify what types of point in time reports are needed for the GL module. 17 P a g e

Miscellaneous Billing & AR Organization Issue Opportunity Decision Timing 30. Both Each department maintains its own customer file, making it extremely difficult to identify the entirety of organizations the County is doing business with. Develop a standard County bill and track County customers in a central repository. Determine the importance of this functionality in the overall system selection process. 31. Schools Every department bills separately and there is no uniform school bill that is sent to vendors. Develop a standard County bill and track County customers in a central repository. Determine the importance of this functionality in the overall system selection process. 32. School Tracking of payment plans for out of County tuition is a very manual and labor intensive process. Implement a system with payment plan tracking functionality. Incorporate payment plan requirements into the specifications as part of the RFP. Bank Reconciliation Organization Issue Opportunity Decision Timing 33. Both Bank Reconciliation was an automated process for a period of time but has since reverted back to a manual process since the Trustees office moved to a new system. Ensure an interface exists between egov and a new financial system to eliminate any manual reconciliation needs. Incorporate bank reconciliation and egov system interface requirements into the specifications as part of the RFP. 18 P a g e

Project & Grant Accounting Organization Issue Opportunity Decision Timing 34. Both Due to the limitations with the current method for tracking time, employee time is not tracked in accordance with specific grant related activities or when it is done it is tracked very manually in spreadsheets etc. Project/Grant modules will typically allow for activity based time tracking, allowing for the complete reporting of all expenses related to a certain grant or activity. Implement a fully integrated time and attendance/erp system so that grantrelated activities can be tracked and tied back to a specific grant. 35. Schools Any user could be charging an expenditure to an incorrect grant. This leads to a very cumbersome manual reconciliation process during grant reporting periods. Implement a system with account validation functionality, based on user role Identify users that require access to charge expenditures to grant related activities. Implementation 36. Schools The lack of availability of easy to use financial reports makes grant reporting very cumbersome for end users. Users have so much paper work they do not have time to apply for more grants. Implement a new financial system with more robust grant tracking/reporting capability. Identify critical financial reports required for the 5-10 larges grants currently administered and include those reports as required reports in the RFP. 37. Schools The grant addendum approval process is cumbersome. It can be months between when the addendum is approved and when it actually is updated in the financial system. Review the grant addendum approval process and streamline it via electronic workflow in a new grant accounting module. Identify if the existing grant addendum approval process can be changed, as per existing County code. Implementation 38. Both Many grant related documents are scanned when they arrive in the finance department and then scanned again for the grant records. (In the County, the responsibility is the grant administrator s to maintain all scanned documents on the finance server.) A centralized document repository would reduce the time spent on scanning documents. Revise the processes around document imagining, addressing procedures for grant specific documentation. Implementation 19 P a g e

Human Resources 1.2. Human Resources / Payroll / Time & Attendance Organization Issue Opportunity Decision Timing 39. Schools Substitutes are occasionally hired as full time employees by the principal and HR is not always alerted. This prevents them from going through the whole HR process with benefits, etc. until HR is notified. A formal procedure that highlights the process a principal is to follow when substitute teachers are hired as full time employees would allow for standardized offerings to each new employee. If there is a formal process already established, develop a campaign to promote this procedure. If there is not an established procedure, develop formalized procedures for principals to follow so that substitute teachers are hired through the same methods as all other employees. Implementation 40. Schools Teachers have to be entered into multiple systems. Most ERP systems either have standardized interfaces to numerous systems or can easily build an interface. Identify the need to create these interfaces in the software system requirements. 41. Schools Professional development is tracked through the teacher center on pink and green sheets. Most ERP systems include professional development tracking / reporting in their package. Identify the key requirements that need to be tracked and include in the software system requirements. 42. Schools The current system does not fully track certain aspects of the mandated Hepatitis B training. Most ERP systems include professional development tracking / reporting in their package and would include customizable aspects to allow for tracking of shots, etc. Identify / confirm the data elements that tracking is required for (the date the info packets are sent out, the dates shots are given, etc.) and include in the software system requirements. 43. Schools Training / licensing for some employees is not currently tracked within HR (e.g., substitutes, DOT training [this is done in Transportation], bus driver licensing, etc.). Most ERP systems include professional development tracking / reporting in their package. Identify the key requirements that need to be tracked and include in the software system requirements. 20 P a g e

Human Resources Organization Issue Opportunity Decision Timing 44. Schools The system does not allow customized reporting on teacher endorsements. Most ERP systems either include reports that would show this detail or provide a report writer so that a standard report could be created to provide this detail. Document all HR requirements for the customized reporting ( teacher license #, the ability to pull all teacher s that have a specific type of endorsement [e.g. economics] and show only those endorsements on a report) and include the need for this report in the software system requirements. 45. Schools The State will occasionally rename endorsements (e.g. Early Childhood Education to Early Childhood) and these changes are all required to be manually updated within the system. Some ERP systems may have a way to automatically obtain this information and update within the system. Identify the need to automatically obtain / update this information in the software system requirements. 46. Schools HR currently runs reports to see which employees have licenses that are expiring. Most ERP systems have the ability to set up flags / notifications for various triggers. Most systems also include a workflow module that allows for automatic notices to be distributed. Identify the need to use flags to identify the employees with expiring licenses, as well as a workflow to send an automatically generated letter in the software system requirements. 47. Schools The current system does not have adequate user defined fields. HR is using date fields to accommodate this and tracking with a complicated set of reference #s (e.g. 1011 means X, 1012 means Y). These are tracking various information including: whether a copy of the teacher s license is on file, how the teacher has proven that they are highly qualified, employees that are rehired, etc. Most ERP systems include numerous user defined fields or other fields that are inherent in the system functionality. Identify the field attributes that need to be tracked and define those in the software system requirements. Determine if the vendor solution provides for the tracking of these fields or allows for the use of user defined fields. 21 P a g e

Human Resources Organization Issue Opportunity Decision Timing 48. Schools Leaves (e.g. short term, FMLA, etc.) are recorded in the current system, but the tracking is lacking in a number of areas, including: the system does not alert when employee is due back, no information is sent to employees when it is time for them to return, and the system only stores information regarding one leave. Most ERP systems include leave management within their system. Identify the need to manage leaves in the software system requirements. 49. Schools There is no workflow process for changes in position or pay. HR receives a signed piece of paper that they use to enter information into the current system. The Schools would benefit from a formalized process being implemented, as it would ensure that all changes were addressed quickly and no errors were made. Most ERP systems include a workflow module that can be used to assist in this process. Define a formalized workflow process and document the need to include this workflow in the software system requirements. 50. Schools The Schools don t currently use performance management; however, they would like to within the next few years. Most ERP systems offer performance management functionality as part of their system. Identify the key elements required for performance management tracking and workflow in the software system requirements. 51. Schools There is no indication in the system if an employee is retiring from Sumner County Schools or if they have already retired form a different district. Most ERP systems include numerous user defined fields that could be used for this purpose. Identify the need to have user defined fields in the software system requirements. 52. Schools Employee retirement / termination payoffs are all completed manually (with the pink & green sheets). Most ERP systems include retirement and termination tracking, calculation and reporting in their package. Identify the key requirements that need to be tracked and calculated and include these in the software system requirements. 22 P a g e

Human Resources Organization Issue Opportunity Decision Timing 53. Schools The system does not alert HR if retired certified employees are nearing the end of the 120 days they are allowed to work per year. Most ERP systems have the ability to set up flags / notifications for various triggers. Most systems also include a workflow module that allows for automatic notices to be distributed. Identify the need for the 120 day flag and subsequent workflow that would automatically generate a notice to the employee in the software system requirements. Indicate that the 120 days is in a rolling year. 54. Schools The current system does not have enough date fields (e.g. multiple hire dates, seniority dates, transition dates, etc.). Most ERP systems include multiple date fields that can be used in a number of different ways. Identify the need for the specific dates required to be tracked in the software system requirements. 55. Schools The system does not allow HR to make global name changes (e.g. Custodian 1 to Head Custodian). This has to be done manually for each employee. Most ERP systems allow for global name changes to occur within the system. Identify the need to be able to apply global changes (including name changes) in the software system requirements. 56. Schools The current system does not allow HR to save things from the system directly into the document management system, nor does it allow HR to tie files from the document management system into the system records. Many ERP systems offer a basic document management system as part of their solution. This would allow files to be tied to specific records. Identify the need for a document management solution that allows files to be tied to system records in the software system requirements. 57. Schools The current system does not have the capability to link to documents used to investigate unemployment claims (letters of termination, all unemployment claims, etc.). Additionally, there is no field within the system to indicate why an employee left. Many ERP systems offer a basic document management system as part of their solution. This would allow files to be tied to specific records. User defined fields can be used to track reasons an employee left. Identify the need for a document management solution that allows files to be tied to system records in the software system requirements. 23 P a g e

Human Resources Organization Issue Opportunity Decision Timing 58. Schools Employees are reimbursed for fingerprint fees (if qualified according to pay rules). Currently, this is a manual process requiring HR s review and manual request for reimbursement. Most ERP systems have the ability to set up flags / notifications for various triggers. A flag could be set up to either automatically reimburse employees that qualify or to notify HR when employees are eligible and allowing them to approve with one click. Identify the need to use flags / workflow for the fingerprint reimbursement process in the software system requirements.. 59. Schools The current system does not have a position control feature. Most ERP systems have a position control module. Identify the need for position control in the software system requirements. 60. Schools The current system does not alert HR if an employee s VISA is going to expire. Most ERP systems have the ability to set up flags / notifications for various triggers. Most systems also include a workflow module that allows for automatic notices to be distributed. Identify the need for the VISA expiration flag and subsequent workflow that would automatically generate a notice to the employee in the software system requirements. 61. Schools The current system does not have an investigation or case management module that allows HR to manage HR investigations and tie them back to personnel records Many ERP systems offer aspects of investigation / case management. Identify the need for HR investigation management and case management in the software system requirements. 62. Schools The current system does not have everify compliance tracking or workflow Most ERP systems have customizable fields to allow for various tracking. Most systems also include a workflow module that allows customized workflows to be developed. Identify the need for everify compliance tracking and workflow in the software system requirements. 63. Schools The current system does not have a robust self service module that includes pay stubs, employment verifications or self-service (status change, etc.) Most ERP systems include robust selfservice modules. Identify the need for a robust self service module in the software system requirements. If acquired, determine the appropriate phasing of this functionality / Implementation 24 P a g e

Human Resources Organization Issue Opportunity Decision Timing as part of system implementation. 64. Schools HR has to manually calculate / predict an employee s retire eligibility date in order to use it for budgeting purposes. Most ERP systems include the ability to set up various calculations, including retirement eligibility date. Identify need to calculate retirement eligibility and include in the software system requirements. 65. County Currently, the employee file is housed with the payroll department, and most employee management is done at the department level. This creates a challenge in terms of verifying accrual balances, tracking certifications/training, and managing personal actions. Implementing the Human Resources module as part of the ERP will allow for central tracking of personnel-related data. Determine if personnel-related data will continue to me managed /tracked at the department level or if this will be done centrally through the use of the integrated Human Resources module. Implementation 66. County OSHA reporting is manual since hours are not captured. Most ERP systems include OSHA reporting in their standard package. Identify the need to track and report on OSHA information in the software system requirements. 67. County EEO-4 Reporting is available in the personnel module but the County uses a separate reporting module. Most ERP systems include EEO-4 reporting in their standard package. Identify the need to track and report on EEO-4 information in the software system requirements. 68. County The system does not track historical information. If access to historical data is needed, staff will need to go into a paper file and review documentation. Most ERP systems can accommodate the ability to track historical information. Include the need to track up to X years of historical data as part of the software system requirements. The County should also decide historical information will be converted to the new system. 25 P a g e

Human Resources Organization Issue Opportunity Decision Timing 69. County There is some concern regarding the integrity of data. A number of fields in the system (including employee name) are freeform. So formatting may not be consistent. Data integrity will be a key component to the success of any software implementation. Steps can be taken today to help ensure that good data is converted during implementation. Identify which fields may be the most troublesome from a data integrity standpoint. Identify any opportunities to standardize existing data in the current system and to perform data cleansing on information that will need to be converted. Payroll Organization Issue Opportunity Decision Timing 70. County Payroll changes are captured manually each payroll through the distribution of a paper worksheet to each County Department. The ability to electronically capture payroll changes through workflow and selfservice can reduce the time needed to process payroll and result in increased accuracy. Identify opportunities within a new system to eliminate the need for the payroll worksheet. These include but are not limited to: electronic timekeeping, selfservice, and workflow. Implementation 71. Both System requires a lengthy setup of the payroll schedule each pay period. This is a time consuming process. The ability to preset pay periods ahead of time will eliminate or reduce cycle time. Identify the need to preset pay periods in the software system requirements. / Implementation 72. County A separate audit spreadsheet is used to audit against Payroll reports. The use of separate side systems and reports can increase payroll processing cycle time and can result in inaccurate payrolls. A system that provides solid preprocessing payroll audit reports can eliminate the need to maintain separate spreadsheets to reconcile against. Identify what types of pre-processing reports the County would need in order to complete a thorough pre-processing audit each pay cycle. Include these reports and data attributes in the software system requirements. 73. County Multiple Journal Entry corrections are made each pay period for employees with unique jobs (e.g. recording minutes). The system will deduct portions of their benefit Consider setting up a charge to earnings code for the unique job where time charged to that code but benefit premiums are still charged to the Identify options for setting up a charge to code for unique jobs. Also include the need to charge time out but not deductions out in the software system 26 P a g e

Payroll Organization Issue Opportunity Decision Timing deductions from the minutes account code but benefits are supposed to be charged to their home department. employee s home department. requirements. 74. County Some Departments are paid current and some are paid in arrears. This difference can result in inaccurate payrolls and extra work for County Payroll staff. The County should consider moving everyone to the same payroll cycle where everyone is paid in arrears. Identify when the change should be made countywide. Ideally, this change will be made prior to converting to the new system. / Implementation 75. County Life Insurance Report is done in Excel. The report cannot be run in the system because of how EMS is setup and it is unable to complete some necessary calculations. The ability for the system to generate a Life Insurance Report will reduce the need for manual manipulation of data. Include Life Insurance Reporting requirements in the software system requirements. 76. County Self-service is not available in the current system. The implementation of employee and manager self-service can reduce the amount of paper transactions, reduce redundant data entry, and decrease cycle time for many County processes. Decide whether or not to include selfservice as part of the ERP selection and implementation project. 77. County Retro pay is calculated manually on a spreadsheet. This can result in inaccurate payroll calculations or missed steps. Many ERP systems accommodate retro pay directly in the system. More specifically, if a correction is needed, it is entered once and all the necessary changes (GL, benefits, etc.) will automatically occur. Include the ability to calculate Retro Pay as part of new software requirements 27 P a g e

Payroll Organization Issue Opportunity Decision Timing 78. Schools Payroll staff cannot report off of some system fields which results in the need to create manual reports. Many ERP reporting systems offer multiple options for reporting (crystal, COGNOS, SQL, etc.). Include the ability to report off any system field as part of new software requirements. Also, the County will want to ensure that data in these fields can be extracted in order to be converted into the new system. Implementation 79. Schools Due to current security setup, there are limitations on what HR can see from a payroll data perspective. Providing staff with access to data they need will reduce cycle time across multiple County processes. Identify what fields, screens, and tables HR staff need from a payroll data perspective. Management should review the need for access to these fields. 80. Schools Some fields are not long enough to capture needed information. Having adequate field lengths will improve data integrity. Include ideal field lengths as part of software system requirements 81. Schools Since school employees are paid monthly, an additional payroll run is setup and run when needed to address corrections and complete other tasks. The School Central Office should consider changing pay cycles since an additional run is necessary some months.. Central Office should decide whether or not to change from a monthly pay cycle to a semi-monthly or biweekly pay cycle. Implementation 82. Schools A separate Excel spreadsheet (Black Book) is used to audit against system generated Payroll audit reports. A system that provides solid preprocessing payroll audit reports can eliminate the need to maintain separate spreadsheets to reconcile against. Identify what types of pre-processing reports the County would need in order to complete a thorough pre-processing audit each pay cycle. Include these reports and data attributes in the software system requirements. 83. Schools A pay stub cannot be reprinted. If an employee requests a copy, a screen-print of the last pay stub is provided. Most ERP systems store copies of old pay stubs in the system. With selfservice, employees would be able to Decide whether or not to include selfservice as part of the ERP selection and implementation project. If implemented, determine when that functionality will be / Implementation 28 P a g e

Payroll Organization Issue Opportunity Decision Timing download old checks stubs on their own. phased in. 84. Schools Direct deposit functionality is limited to one account per employee. Additional accounts can be added, but it limits the availability of retracting funds if necessary in an overpayment situation. Most ERP systems allow for more than one direct deposit account to be setup for each employee. Identify the number of direct deposit accounts that each employee should be allowed to have. Include in software system requirements. 85. Schools The current system does not provide the ability to perform test check runs with different parameters. Most ERP systems allow for test check runs. Identify the need to do test check runs with varying parameters in the software system requirements. 86. Schools Payroll checks with Transportation to determine how many extra hours employees have worked (field trips, etc.) and they then do a manual comparison to see if this puts the employee into overtime. Most ERP systems will include the ability to incorporate pay rules that will automatically calculate overtime. Identify the need to automatically calculate overtime in the software system requirements. 87. Schools Multiple departments can enter a leave for an employee. The Schools should consider implementing a policy that only allows one department (e.g. Payroll or HR) to enter leaves. The new system security can be set up to enforce this. Determine if a policy will be implemented, and if so, include the new requirements in the software system requirements. 88. County Payroll disbursements are produced from the feedback on the Payroll Worksheet. No additional documentation is necessary. The County should implementing processes and policies that require the timely submission of supporting documentation each payroll cycle. (It is required for the 2012 Financial ACT) Determine if a policy will be implemented, and if so, identify process for implementing the policy and using the new system when possible. Implementation 29 P a g e

Payroll Organization Issue Opportunity Decision Timing 89. County At some point after payroll is processed, some offices send varying amounts of documentation. This documentation is not reconciled to the payroll exception report unless there is a question. The County should implementing processes and policies that require the timely submission of supporting documentation each payroll cycle Determine if a policy will be implemented, and if so, identify process for implementing the policy and using the new system when possible. Implementation Benefits Organization Issue Opportunity Decision Timing 90. Schools New benefit enrollment and open enrollment is completed via a paper process. Most ERP systems include robust online benefit enrollment packages. The data entered here would interface with the Payroll module as well as the benefit module so that data would not have to be reentered in the system. Identify the need for online enrollment in the software system requirements. 91. Schools Benefits currently keys data into insurance sites for all classified employees to enroll them in insurance. The Schools should check with the insurance providers to determine if there is a standard file format that could be imported into their system so that handkeying would not need to be done. School system is working on this ability now. If a standard file format is able to be imported into the system, include the requirements of that format in the software system requirements. 92. Schools Benefits currently checks with the insurance providers on a regular basis to confirm that new employees are set up for insurance. The Schools should check with the insurance providers to if a new employee benefits report could be provided to them at predefined intervals. If a report is available, use the report to confirm that new employees are enrolled. Include the requirement for a similar report to be provided from the new system to compare it with as part of the 30 P a g e

Benefits Organization Issue Opportunity Decision Timing software system requirements. 93. Schools Employees are unable to see who their beneficiaries are in the current system (it is kept in a hard copy file in a safe). Most ERP systems include the ability to view and change beneficiaries within the self service module. Identify the need to include beneficiaries in the self service module in the software system requirements. 94. Schools For employees whose pay is less than $10,000, their salary is artificially bumped to $10,000 in order to allow them to get Board-funded life insurance. Most ERP systems include the ability to build customized pay rules. A pay rule could be set that all employees that meet XYZ criteria will get Board-funded life insurance. Identify the need to build customized pay rules within the software system requirements. 95. County Benefits information for County employees is maintained both in the Payroll system as well as in two large spreadsheets (health and dental). The shadow system is required because not all of the necessary information is maintained in or can be queried from the Payroll system. Use of a centralized Human Resources module would allow for the maintenance of a complete personnel data file which contained all of the necessary benefit information. Implement the complete functionality for a fully-integrated Human Resources module as part of the ERP implementation, and maintain benefits information with the rest of the personnel file. Implementation 31 P a g e

Time & Attendance Organization Issue Opportunity Decision Timing 96. Schools The current system does not interface with AESOP. Teachers complete handwritten leave information which is then verified by bookkeepers and handwritten onto reports to provide to payroll. Payroll then keys this data into the current system and performs a number of manual error checks. Many ERP systems can interface with AESOP, or a custom interface can be built. Include the need to interface with AESOP in the software system requirements. 97. Schools There is no report from AESOP that provides the information required to reconcile teacher leave information with the current system data (e.g. teacher shows as absent in AESOP but not in current system or teacher shows as absent, but the leave was not approved). Short Term: Identify information needed on this exception report and provide requirements to AESOP. Long Term: The interface to AESOP with a new system should make this issue non-existent. Short Term: Work with AESOP to either develop this report or have AESOP train the Schools how to create this with the report writer. / Implementation 98. Schools A number of issues were identified in AESOP, including: a) Bookkeepers cannot view a list of preferred substitutes. b) Teachers cannot view substitute s phone numbers. c) There is no way for a school to exclude a substitute from teaching at that school. Meet with AESOP to determine if any of the required functionality is available in the system as is, and if so, obtain training on it. If functionality is not available, determine if it could be built. Work with AESOP to ensure the system is being used to its fullest. Obtain training on items such as the report writer and any other areas that would address the concerns listed. Identify if it makes sense to customize anything within the system to address the needs listed (do a cost/benefit analysis). Implementation d) AESOP does not require a leave to be approved prior to 32 P a g e

Time & Attendance Organization Issue Opportunity Decision Timing calling the substitute. 99. Schools Classified employee time is tracked on hourly timesheets. Employees have a manual process for comp time at some buildings. AESOP can be used for classified employee time tracking. Implement time tracking for classified employees within AESOP. Implementation 100. County Departments handle their own leave accrual tracking. Leave accruals are reconciled with finance once a year through a manual reconciliation. The consistent application of leave policies across the County can result in accurate payrolls and could also potentially result in cost-savings. With a new system, determine whether or not the management of leave policies should be centralized or left to departments. (Leave policies should be embedded in the new system. However, legally several departments can have their own separate policy.) Implementation 101. County Finance feels that departments may not be correctly enforcing their own leave policies. The consistent application of leave policies across the County can result in accurate payrolls and could also potentially result in cost-savings. With a new system, determine whether or not the management of leave policies should be centralized or left to departments. Implementation 102. County There is no consistent process for when departments should submit timesheet information to Finance. Finance uses timesheet information as backup documentation for payroll. A consistent policy of submitting supporting documentation to Finance can improve the accuracy of payroll. Management should establish a set policy on when timesheet data should be submitted to Finance. Ideally, it would be submitted each pay period with a payroll worksheet. Implementation 103. County Employee leave is tracked manually. Many ERP systems have the ability to support and track multiple leave types and leave plans eliminating the Include leave requirements in software system requirements. 33 P a g e

Time & Attendance Organization Issue Opportunity Decision Timing need to track leave manually. 104. County There is a concern among County Departments on how the new time system will accommodate staff members who travel frequently or between different locations. There are multiple options on how to address this concern including but not limited to exception reporting, use of mobile devices, use of tablets, etc. County Management should establish a policy to address how these staff members should enter their time. Implementation 105. Schools Some employees are required to complete an hourly timesheet manually. This is currently a carbon copy document where one copy is kept by the school and the other for the employee. An electronic timekeeping system will eliminate the need to complete paper timesheets and reduce payroll cycle time. Include time collection requirements in software system requirements 106. Schools While timesheets are supposed to be audited by the department or school bookkeeper, Payroll has to recalculate and audit all timesheets every pay period. This is a time consuming process which takes away from payroll processing time. Holding Department and School Timekeepers accountable for auditing timesheets can provide Central Office Payroll staff with more time to conduct payroll-related audits and corrections during the regular payroll preparation process. Identify ways and opportunities to ensure that thorough timesheet audits are being conducted by Department and School timekeepers. Implementation 107. Schools There is no drop dead deadline for timesheets and payroll changes to be submitted to Central Office Payroll. This impacts the ability for Central Office Payroll to complete a thorough audit. Establishing and enforcing a payroll schedule with clearly defined deadlines for timesheets and changes can help streamline the payroll process. Central Office Finance Department should review the current process and identify drop dead deadlines for Departments and Schools. Implementation 34 P a g e

Time & Attendance Organization Issue Opportunity Decision Timing 108. Schools HR is not aware of leave unless they are notified by Payroll. This can impact the ability for Schools HR to identify employees who may be eligible for FMLA. A system with flags that will identify employees who have been on leave for an extended period of time can help HR identify employees who may be eligible for FMLA. Short-term: HR and Payroll should identify a process for notifying and flagging employees who may be FMLA eligible. Long-term: Consider building a business rule that will flag employees taking high amounts of leave for FMLA consideration. Short-term: Long-term: Implementation 109. Schools Leave adjustments are tracked through paper forms (Pink/Green/Blue forms). These are done manually and takes time to update in the system. A system that allows leave adjustments to be submitted through workflow can eliminate the need for paper forms and reduce the time needed to process these adjustments. Identify to-be process for processing leave adjustments in a new system. Include in system workflow discussions. Implementation 35 P a g e

1.3. Document Management Document Management Organization Issue Opportunity Decision Timing 110. Schools The current document management system does not allow users to save files directly from the system directly into the document management system. In addition, files can only be saved as.tif files. Most ERP systems offer a basic document management system as part of their solution. This would allow files to be tied to specific records and saved as.pdf files. Identify the need for a document management solution that allows files to be tied to system records in the system requirements. 111. County Currently Finance is scanning in most of the documents received within the office; however, they are not accessible outside the Finance Department. Many departments also keep local copies. A County-wide document management system would simplify the storage of documents and reduce multiple copies and scanning efforts. Formalize an enterprise wide document management strategy. Implementation 112. Schools Multiple document management systems are used across the various departments. Additionally, files are often scanned in multiple times and saved in various folders within the system. By standardizing on a single document management system, departments could easily share information. Identify all departments requirements for a document management system and include in the system requirements. 113. Schools Emails cannot be sent from the current document management system Most document management systems include the ability to email documents directly from the system. Identify the need to email documents directly from the system in the system requirements. 114. Schools Selected newer hardware (workstations, printers and scanners) is not supported with the current system. A new document management system will support all the new technology. Identify current technology used in the system requirements/rfp. 36 P a g e

3 Technology Readiness Assessment 3.1 COUNTY ENVIRONMENT Sumner County network consists of 1 building only. There is no data connectivity to any other county facility. All systems in the data center are protected by UPS systems but there is no power generator. A non-liquid fire suppression system is also available at the data center. Access to the data center is protected by a locked door and only authorized personnel have access to this room. Windows 2008 is the operation system used on 100% of the servers. Currently server virtualization is not used. An EMC centralized storage system is available for use and has expansion capabilities. The majority of the servers used are Enterprise class systems and the preferred manufacture of these system is Dell Computer Systems. The majority of the systems are less than 3 years old. Daily full backups are currently performed to disk and also to an online resource. The backups are verified periodically and backups are transported to a secure off-site (online resource). Currently there is no server or workstation patch management policy in place. All system are protected with an antivirus software. There are approximately 150 workstation / laptops in the organization and the organization has started the migration to a Windows 7 (b4-bit) platform. The organization has standardized on the use of Dell servers, workstations, and laptops. Network Infrastructure Configuration (WAN & Internet) There is only 1 building on the county network. The network is a managed service bandwidth management and troubleshooting are provided by a third party End user devices are connected using either 10/100Tx Ethernet technology. IPv4 is the primary protocol used on the network. Remote access to the network is currently not available. Network traffic volumes for the WAN, LAN, and servers are not formally tracked. Opportunities Implement systems monitoring and management - Implement a network and sever monitoring system to proactively monitor and identify potential system issues. While the implementation of a full scale network management system would unnecessary, it is recommended that a minimal form of a network monitoring system should be implemented. Data Center There is a dedicated room to host the County s servers and core network components. This facility is protected behind locked doors and only authorized personnel have access to this facility. A single dedicated air cooling system is available for the data center. A non-liquid fire suppression system is available for use at the data center. A single UPS unit is used to provide backup power protection for all IT components in the data center. Opportunities No major opportunities identified for this section. Server & Storage Environment 37 P a g e

There are approximately 20 servers as a part of the County environment. Dell Computer Systems (80%) is the preferred manufacturer of the server equipment. The age of the server varies from 1 year to 5 years (1-3 years = 80%, 3-5 years = 20%). The majority of the systems have redundancy features such as dual power supplies, NICs, and hard drives. There currently is no proactive server maintenance program for hardware issues. There is no consolidated data storage system in place. Each server stores data on its local drives. Microsoft Windows 2008 is the only server operating system used. Systems are updated on an as-per-need basis; there is no formal patch management in place. Antivirus software is use on all of the server. Server virtualization is currently not used. Opportunities Implement server / storage management system - The County should consider implementing Dell OpenManage (IT Assistant and OpenManage Server Administrator) management to proactively monitor and manage the servers & storage environment. Consolidate all critical data on to a centralized storage system - The County should consider consolidating all of the data on to a centralized storage system that has tiered classes of storage. Implement patch management policy - The County should implement a standardized patch management policy. To test the overall security (password strengths) and patch levels on all systems running Microsoft operating system, the County should periodically run Microsoft Baseline Security Analyzer (MBSA) tool. This tool provides a streamlined method to identify missing security updates and common security misconfigurations for system running MS operating systems. Consider servers virtualization technologies When the time comes to upgrade the current server & storage environment, the County should consider the use of server virtualization technology to maximize the use of server hardware, reduce costs by increasing energy efficiency, and build a business continuity process. Policies / Backup & DRP Environment Policies / Procedures No all components of the system (network and servers) are documented. Regular maintenance window are not defined. Data classification is not conducted. Proper access control policies are not in place. The System Administrator account is used for day-to-day system activities. Account creation and deletion are handled on an adhoc basis. User accounts are not audited on a regular basis. There is no password policy in place requiring users to change or have complexity in their passwords 38 P a g e Backup / DRP Disk-to-Disk (D2D) technology is used to backup the data; the backups are not encrypted. Daily full backups are performed. In addition, an online backup service is used to ensure backups are located off-site. Databases used are also backed up, but the process used to backup them up are inconsistent e.g. not all databases have backup agents that allow for the backups of open

records. A DRP is not currently available. A threat matrix, RPO (Recovery Point Objective), RTO (Recovery Time Objective), and BIA (Business Impact Analysis) have not be documented. A complete system restore has not been tested to validate the integrity of the backups. Opportunities (Policies / Procedures) Develop system documentation and standard operating procedures - Apply the necessary resources to creating usable documentation. This investment is critical considering much of the information regarding the IT systems at the County is stored within individual employees (or vendors). The documentation must be stored in a secure location on the network that is accessible only to authorized personnel. Implement a standard system maintenance window - Regular maintenance window should be defined. Classification of Data - The data should be classified for sensitivity and appropriate data controls applied to ensure confidentiality, integrity, and availability of the data. Restrict system administration account usage - The Administrator account should not be used for day-to-day operations. For users that require occasional administrator capabilities, in addition to their normal account, a separate administrative privileged account should be created for system administration and management purposes. Formalize user account creation process - Formalize process and procedure should be developed that authorize the create/deletion/modification of system accounts. Develop strong password policies - Polices related to passwords, personnel devices, data backup and retention should be developed. Strong password restrictions/policies should be enforced. The estimated cost to implement this opportunity is expected to be minimal but will require procedural effort. 39 P a g e Opportunities (Backup & DRP) Classification of Data (see above). To ensure that all critical data is being backed up, the criticality of the data should be identified. This process would also assist with the DRP efforts. Data backups should also be encrypted to ensure the confidentiality and integrity of the data on stored disk. Review current backup process & procedures The data backup process should be formalized and consistent with the data retention policies of the organization. The organization should consider implementing an off-site / online backup system. If the organization desires to retain backup operations in-house, the organization should implement incremental backups Monday-Friday to disk, and full weekly backups to disk and to tape. At a minimum, the weekly backups should be taken to an off-site location such as the bank vault or other secure facilities. The off-site weekly backup rotation should be in accordance to the organization s backup policy. Random restores should be performed on a periodic basis (weekly or monthly) to test the integrity of the backup system. Formalize Disaster Recovery Planning - A written disaster recovery plan (DRP) should be developed. The DRP should address recovery of facilities and all business functions/departments. The Organization should develop an appropriate DRP/BCP strategy. This process should begin by identifying various business goals critical to the organization. Using the goals, various processes need to be identified and an appropriate DRP/BCP developed. Using the DRP/BCP as a blue print, the network and server infrastructure should be evaluated along with the process and modified accordingly so as to meet the objective of the DRP/BCP. The established business goals would determine the need to create a backup or live data center (probably at a plant), move services to a hosted location, or simply maintain status quo. The Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) would also determine the criticality of the infrastructure that needs to be planned. The development of a BCP/DRP should be considered as long term project as it requires considerable planning and implementation. Recovery procedures for IT components and

applications should be documented and periodically tested. Testing results should be reviewed with the Management Team. Implement a backup validation test process To ensure the integrity of the backup systems, on a regular basis, the County should implement a test restore process that validates the integrity of the systems being backed up. Workstation Standard There are approximately 150 workstations across the County network. The age of the workstation rage from less than a year old to greater than 5 years. The estimated age of the workstation is as follows - <1 year = 20%, 2-5 years = 70%, 5-7 years = 10%, and > 7 years = 0%. Due to the age of the workstations, a variety of operating systems are in used Windows 95/98 (20%), XP (40%), and Windows 7 (40%). All new system are procured with Windows 7 operating systems. Trend Micro is used for antivirus protection on the workstation. Microsoft IE (90%) and Google Chrome (10%) are the primary web browsers used on the workstations. An active inventory of the workstations and peripheral devices is not maintained. Opportunities Establish and enforce patch management policy and procedure - Patch management is critical to functioning and security of the servers. Establish a clear timeline for rollout of the server and workstation patch management system by establishing testing and rollout process. A maintenance window (weekly, bi-monthly, or monthly) should be established during which server updates are performed. The County should consider implementing a local Windows SUS server an update server. The SUS server allows administrators to completely manage the distribution of updates that are released through Microsoft updates to computers and servers on the County network. This allows for consistent deployment of updates. Updates to servers should be reviewed by application owners and application vendors prior to deployment. Current ERP Systems / Applications The County use Microsoft Exchange 2007 email services that are hosted internally and has approximately 32,000 email boxes. A proprietary web content management system is used to manage the web sites. Opportunities No major opportunities identified for this section. Staffing There is only 1 County IT employee. To the most part, the County use external resources to assist with the day-to-day activities. Opportunities No major opportunities identified for this section. 40 P a g e

3.2 SCHOOLS ENVIRONMENT Sumner County Schools network is spread across 47 buildings. On the WAN, though dark fiber and leased fiber connectivity methods are used, the buildings are primarily connected using leased network bandwidth services. The majority of the buildings are connected in a star topology. Hewlett-Packard network equipment is primarily used for network electronics. The primary data center is currently hosted in the school district, but the Schools are in the process of moving their data center to a colocation facility in January 2013. Windows 2003/2008 is the operation system used on the majority of the servers. There are instances of Apple OSX servers in the organization as well. Currently server virtualization is used but in limited instances. The organization has standardized on the use of Dell servers and the age of the servers ranges less than a year old to greater than 7 years. A centralized storage system is available but is only used for certain segments of data. Backups are currently performed to disk and the backup software allows for bare metal restores. The backups are not verified periodically and backups are not transported to an off-site secure data storage vault. There are some inconsistencies in the data backup strategies and the district is it the process of revaluating their backup and restore strategy. The District also does not have a completely documented Disaster Recovery Plan (DRP) in place. Microsoft SQL and MySWL databases are used. Microsoft online email services (live 365 email services) is used and there are approximately 32,000 mailboxes. Servers and workstation are patched on an adhoc basis; there is no formal patch management policy in place. All system are protected with an AVG antivirus software. There are approximately 10,0000 workstation / laptops in the organization. The ages of the workstation range from less than a year old to greater than 7, and in some instances approximately 10 years old. Network Infrastructure Configuration (WAN & Internet) There are 47 buildings on the Sumner County Schools network. Of these, 37 are connected in a star topology network and the remaining building are connected in off the nodes on the star topology. All of the buildings on the Wide Area Network (WAN) are connected using 1 Gigabit Ethernet (1GBPS) technology. The majority (38/47) of the buildings are connected over a leased bandwidth (Comcast) network, 6 are connected over leased fiber network, and the remaining 3 are connected using a private fiber network. The WAN is a managed service bandwidth management and troubleshooting are provided by a third party. The schools primarily use Hewlett-Packard network equipment (approximately 85%) for LAN/WAN connectivity. Cisco System equipment (approximately 15%) is also used on some parts of the network. End user devices are connected using either 10/100 or 10/100/1000Tx Ethernet technology. VoIP technology is used in the District, but is used only on the internal network. VoIP is not used across the WAN. Video conferencing and data multicast applications are used on both the LAN and WAN. IPv4 is the primary protocol used on the network. Remote access to the network is available via IPSEC technology. Authentication for VPN is provided by a local database. Only the core components of the network are under maintenance contracts. 41 P a g e

Opportunities Integrate VPN authentication with directory services - To increase security and reduce system administration, the District should consider integrating the VPN database with the District s directory services. Reconfigure the current VPN system for consistency - The School should explore the reliability of the remote VPN access system. Implement systems monitoring and management - Implement a network and sever monitoring system to proactively monitor and identify potential system issues. While the implementation of a full scale network management system would unnecessary, it is recommended that a minimal form of a network monitoring system should be implemented. Data Center The current data center does not have adequate physical security. There are some major physical infrastructure deficiencies in the current data center environment. The Schools are in the process of moving the current data center to a third party hosted data center facility. This process is to start early next year (2013). Opportunities Proceed with data center migration - We concur with the School s decision to migrate the current data center to a third party hosting facility. Server & Storage Environment There are approximately 50 100 servers as a part of the SCS environment. Dell Computer Systems is the preferred manufacturer of the server & storage equipment. The age of the server and storage system varies from 1 year to 5 years (1 < year = 10%, 2-5 years = 45%, > 5 years = 40%). The majority of the systems have redundancy features such as dual power supplies, NICs, and hard drives. There currently is no proactive server maintenance program for hardware issues. A centralized storage system is available, but not all of the data is stored on the centralized storage system. Some of the systems store data on local drives. Microsoft Windows 2008 (60%), Windows 2003 (30%), and Apple OSx (10%) are the primary operating systems used on the servers. Microsoft Hyper-V hypervisor is used for server virtualization. Server virtualization is deployed in a limited manner. Systems are updated regularly, but there is no formal patch management in place. AVG Pro is used on the servers for antivirus. 42 P a g e Opportunities Implement server / storage management system - The Schools should consider implementing Dell OpenManage (IT Assistant and OpenManage Server Administrator) management to proactively monitor and manage the servers & storage environment. Consolidate all critical data on to a centralized storage system - The Schools should consider consolidating all of the data on to a centralized storage system that has tiered classes of storage. Implement patch management policy - The Schools should implement a standardized patch management policy. To test the overall security (password strengths) and patch levels on all systems running Microsoft operating system, the Schools should periodically run Microsoft Baseline Security Analyzer (MBSA) tool. This tool provides a streamlined method to identify missing security updates and common security misconfigurations for system running MS operating systems.

Policies / Backup & DRP Environment Policies / Procedures No all components of the system are documented. Regular maintenance window are not defined. Email is the primary method for communicating the status of IT systems. Data classification is not conducted. Proper access control policies are not in place. The System Administrator account is used for day-to-day system activities. Account create and deletion are handled on an adhoc basis. There is no password policy in place requiring users to change or have complexity in their passwords Backup & DRP The current data center does not have adequate physical security. Some of the critical systems are not backed up on the regular basis. It appears that the onus is on each individual department to identify the data that needs to be backed up. There currently is no verification or testing process in place to validate the integrity of the backups. There are multiple backup systems in place and the process and procedure, type of data being backed up, system notification process, etc. is inconsistent. Disk-to-Disk (D2D) technology is used to backup the data; the backups are not encrypted. Symantec Backup Exec is used for system backups. Databases used are also backed up, but the process used to backup them up are inconsistent e.g. not all databases have backup agents that allow for the backups of open records. The storage of the backup media is also inconsistent. A partial DRP is currently in place. All of the critical data is stored internally. Backup data is not transported to a secure off-site location. For the DRP, a threat matrix, RPO (Recovery Point Objective), RTO (Recovery Time Objective), and BIA (Business Impact Analysis) have not be documented. 43 P a g e Opportunities (Policies / Procedures) Develop system documentation and standard operating procedures - Apply the necessary resources to creating usable documentation. This investment is critical considering much of the information regarding the IT systems at the Schools is stored within individual employees. The documentation must be stored in a secure location on the network that is accessible only to authorized personnel. Implement a standard system maintenance window - Regular maintenance window should be defined. Classification of Data - The data should be classified for sensitivity and appropriate data controls applied to ensure confidentiality, integrity, and availability of the data. Restrict system administration account usage - The Administrator account should not be used for day-to-day operations. For users that require occasional administrator capabilities, in addition to their normal account, a separate administrative privileged account should be created for system administration and management purposes. Formalize user account creation process - Formalize process and procedure should be developed that authorize the create/deletion/modification of system accounts. Develop strong password policies - Polices related to passwords, personnel devices, data

backup and retention should be developed. Strong password restrictions/policies should be enforced. The estimated cost to implement this opportunity is expected to be minimal but will require procedural effort. Opportunities (Backup & DRP) Classification of Data (see above). To ensure that all critical data is being backed up, the criticality of the data should be identified. This process would also assist with the DRP efforts. Data backups should also be encrypted to ensure the confidentiality and integrity of the data on stored disk. Review current backup process & procedures The data backup process should be formalized and consistent with the data retention policies of the organization. The organization should consider implementing an off-site / online backup system. If the organization desires to retain backup operations in-house, the organization should implement incremental backups Monday-Friday to disk, and full weekly backups to disk and to tape. At a minimum, the weekly backups should be taken to an off-site location such as the bank vault or other secure facilities. The off-site weekly backup rotation should be in accordance to the organization s backup policy. Random restores should be performed on a periodic basis (weekly or monthly) to test the integrity of the backup system. Formalize Disaster Recovery Planning - A written disaster recovery plan (DRP) should be developed. The DRP should address recovery of facilities and all business functions/departments. The Organization should develop an appropriate DRP/BCP strategy. This process should begin by identifying various business goals critical to the organization. Using the goals, various processes need to be identified and an appropriate DRP/BCP developed. Using the DRP/BCP as a blue print, the network and server infrastructure should be evaluated along with the process and modified accordingly so as to meet the objective of the DRP/BCP. The established business goals would determine the need to create a backup or live data center (probably at a plant), move services to a hosted location, or simply maintain status quo. The Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) would also determine the criticality of the infrastructure that needs to be planned. The development of a BCP/DRP should be considered as long term project as it requires considerable planning and implementation. Recovery procedures for IT components and applications should be documented and periodically tested. Testing results should be reviewed with the Management Team. Workstation Standard There are approximately 10,000 workstations across the school system. The age of the workstation rage from less than a year old to greater than 10 years. The estimated age of the workstation is as follows - <1 year = 3%, 2-5 years = 13%, 5-7 years = 30%, and > 7 years = 54%. A vast majority of the workstations are beyond their expected life expectancy. Due to the age of the workstations, a variety of operating systems are in used Windows 95/98, XP, Vista, and Windows 7. The Schools are in the process of implementing a pilot Virtual Desktop Integration (VDI). The Schools are in the process of implementing a Windows Services Update Server (WSUS) to manage deployment of Microsoft operating system and application patches /updates. Multiple web browsers are is use. Clonezilla and Microsoft SCCM are used for workstation image management. The printing environment is heterogeneous and include network printing, multifunction devices, and standalone printing. 44 P a g e Opportunities Develop and implement workstation refresh policy - For the majority of the workstations, they are being used beyond their reasonable expected life expectancy. A workstation refresh

45 P a g e policy should be developed and implemented. This allows the Schools to replace a certain percentage of workstations annually and avoid workstation obsolesce. VDI implementation can extend the useful life of the aged workstations We concur with Schools decision to implement a VDI solution. The use of an appropriate VDI solution can extend the life of the current workstations, thereby maximizing the ROI on the VDI solution. Implement WSUS for server patch management - We concur with the School s decision to implement WSUS for workstation patch management. The same tool can be used for the management of patches on the servers as well. Implement standardize applications To streamline and effectively administer the application and workstation environment, the School should define a standard set of application that are deployed and supported by IT. Implement Multifunction Devices for printing - To streamline and effectively administer the printing environment, the School should move towards the use of Multi Function Devices (copiers/scanner/printer) for printing purposes. The departure from local printing and multitude of network printer can reduce operational costs. Current ERP Systems / Applications The Schools use Microsoft Outlook 365 hosted email services and has approximately 32,000 email boxes. This includes e-mail for students. Onbase and ImageEase are used for document imaging and Electronic Content Management (ECM). Open source content management system (CMS) Joomla is used for the management of website content. The Schools are currently evaluating Atlassian Confulence as well. When web based applications are developed internally, PHP is the preferred programming language. Microsoft SQL and MySQL are the two primary databases used in the organization. Besides the current Student Information System (SIS), an ERP system / application is not used. Opportunities No major opportunities identified for this section. Staffing To the most part, the schools are self-sufficient and use external resources strictly on an asper-need basis. There are approximately 10employees in IT. After hours support for the system is provided via remote access. There are configurational issues with the current VPN system that provide consistent and reliable access to the network remotely. There is limited cross training between the IT employees primarily due to time constraints. There is currently no training budget for the IT staff. Opportunities Promote IT cross-training - To provide coverage in the event that an IT specialist is unavailable for an extended period of time, the organization should consider promoting crosstraining skills between various IT personnel Create and enforce policies to require staff development - The School should also create policies that require IT staff to undergo skills refinement training each year, including a combination of formal training, train-the-trainer, on-line webinars, conferences and seminars. This would create for better employee morale, use technology more efficiently, and also assist them in deploying new technologies for the Schools. When possible, the School, in its annual budget, should allocate budgets dedicated for the purpose of IT training. IT Staff development should be a major performance metric while assessing their annual performances.

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4 ERP Market Analysis 4.1 INTEGRATED ERP MARKETPLACE The purpose of the Market Analysis is to provide the County with an overview of the current financial system and ERP software vendor marketplace. Information provided in this marketplace assessment was gathered from prior Plante Moran project and consulting experience, feedback from the County staff during interviews, and external research. Generally, enterprise financial system solutions evolved out of a desire to provide the functionality of two or more systems, such as Financials and Human Resources, in an integrated software solution. Enterprise software solutions experienced its first major growth in private sector businesses in their manufacturing and supply chain operations. Many of these Tier 1 ERP solution providers offer broad solutions designed specifically for the private sector. Over the past several years, these solutions were enhanced, configured and tested in public sector organizations. With these enhancements, these solutions originally developed for private sector organizations could now be deployed in a public sector setting. There are also a number of Tier 2 ERP software providers that originated and offer specific vertical solutions designed for the public sector including fund accounting, encumbrance accounting, sophisticated budgeting, grants management, etc. and capabilities which are pervasive in this segment. These solutions are typically characterized as Tier 2 solutions and are normally deployed in medium sized public organizations. Over time, there has been increased focus from these Tier 2 vendors towards developing niche solutions designed to compete with the Tier 1 providers. Small to Medium size government agencies, such as the County, generally select financial management solutions identified as Tier 2 solutions. The most basic differentiations between Tier 1 and Tier 2 providers lie within the depth of functionality, breadth and complexity of the software. 4.2 TIER 1 PROVIDERS Tier 1 providers have a broader offering that often include modules for Customer Relationship Management (CRM), Enterprise Asset Management (EAM), Learning Management, Analytics and Reporting, Data Warehousing, and Project Management modules. While Tier 1 providers offer robust core financial modules, as well as HR and Payroll, typically they rely on third party vendors for functionality specific to government activities in other functional areas. Most, but not all, Tier 1 providers have a large network of implementers available to implement their solution, many of which have dedicated public sector practices. The most significant challenge with Tier 1 solutions is that government agencies often find that they are not able to dedicate enough technical resources to leverage expansive capabilities of the system to meet their needs. Due to their flexibility (thus complexity) Tier 1 implementations are most successful at organizations with structured IT software governance and/or ERP process governance, not typically demonstrated in organizations which have implemented a fragmented software approach. In addition to the necessary governance, strong IT project management is also critical for Tier 1 deployment. In several instances, Plante Moran has worked with public sector clients who have implemented Tier 1 ERP systems and the following situations have prevented them from realizing the full benefit of these systems thus diminishing their return on investment: 47 P a g e The governmental body did not budget the necessary capital to implement the solution and optimize current business processes due to cost factors related to capital budget and resource constraints. The operating costs to maintain Tier 1 solutions relative to software maintenance and support consumed operating budgets thus creating a situation where hiring the necessary internal resources to maintain and enhance these systems (e.g., data mining, workflow, custom reporting, etc.) was not feasible.

4.3 TIER 2 PROVIDERS Users of Tier 2 solutions often find that these solutions are more prescriptive; i.e., governmental best practices are designed within the application. This is intuitive since Tier 2 solutions were designed for use within the government sector. They may offer less flexibility and configurability than Tier 1 system but, as a result, are typically less cumbersome to implement within their organization, because of their native public sector design and more prescriptive implementation approach. Tier 2 vendors tend to have their origin based in the government sector and have been improving and updating their software products to offer a greater range of modules and functionality. As such, the Tier 2 vendors are touting themselves as viable alternative solutions to Tier 1 providers. However, beyond enhanced functionality, the scalability of the services being offered by Tier 2 solution providers is a strong consideration when determining the best overall solution. Unlike Tier 1 solution providers, nearly all Tier 2 solution providers implement their own software and do not rely on third party implementers. The software marketplace has seen the emergence of solutions being touted as Tier 1.5 s, or one and a halves. Originally positioned as Tier 1 or Tier 2 solutions, these vendors have now positioned themselves between the two tiers and often offer enhanced functionality in areas such as HR and Payroll. They are also offering modules that are able to scale up to a larger client s complexity and transaction volume but at a lower cost and time to implement as compared to a Tier 1 provider. As identified by Gartner Research, there are still distinct differences between Tier 1 and Tier 2 software providers in the ability to address all business needs. Tier 1 vendors, such as IBM, Microsoft, Oracle, SAP and UNIT4, garner economies of scale by focusing on a smaller set of back-office capabilities and building add-ons to products they sell in other vertical markets. They attempt to address local government-specific business requirements, such as permitting and licensing, by building templates using a combination of ERP, CRM and business intelligence (BI) products. Conversely, the Tier 2 provider s smaller scale allows for country-specific business and regulatory compliance requirements, and positions them to focus on local government-specific capabilities. In order to meet a greater subset of business needs, they have evolved through a number of acquisitions that have led to solutions that satisfy both back-office and front-office business requirements. The struggle, however, has been to evolve toward an integrated suite package while continuing investments in business development for the separate products. While overlap occurs, generally Tier 1 vendors are more prevalent in larger counties (populations over 500,000) while Tier 2 vendors occupy the market space for cities below this threshold. Large global vendors tend to focus on the largest local government jurisdictions. The cost of their solutions and their business models, which usually require a system integration partner for design, configuration and implementation, are usually beyond the means of smaller jurisdictions. Conversely, local independent software vendors tend to be viable for smaller jurisdictions and have pricing and implementation timelines that tend to be more favorable for midsize and small local government organizations. 4.4 VENDOR CONSOLIDATION Consolidation among public sector software vendors has left a fewer number of vendors providing customized services to the public sector than in prior years. Organizations such as Harris, Oracle, SunGard Public Sector, and Tyler Technologies have acquired competing software offerings over time and, to varying extents, marketed, licensed, implemented and supported each of them. As such, the remaining vendors have a larger installed base per vendor. It is anticipated that, over time, these vendors will reduce, not increase, the number of ERP solutions that they will maintain and support for the public sector. This consolidation of solution offerings is typical in the software industry as a result of their desire to create a sustainable business model. Thus, it is important during the due diligence and contract negotiation process to consider any future product plans available from software providers, with the purpose of maximizing solution longevity and avoiding expensive capital outlays for upgrades and for replacements. 48 P a g e

4.5 BEST OF BREED Fortunately, given the trends in the Tier 1 and Tier 2 ERP marketplace, there are software packages that complement ERP systems, referred to as Best of Breed. Common examples include time entry systems that include greater functionality than what is in a typical ERP system, such as time clocks; enterprise asset management systems; investment management systems; and land management systems such as code enforcement, permitting, and business licensing. These systems, typically offered by third parties, need to interface with the ERP system, and thus are not seamlessly integrated. However, Tier 1 and Tier 2 core ERP vendors will generally target specific best of breed providers in which they will develop long-term relationships and integrations between their products to satisfy clients needs for an overall integrated solution. As the ERP marketplace evolves, with certain offerings being incorporated into or separated from ERP systems, organizations will need to determine which solutions to purchase as part of an ERP and which to purchase as best of breed. Currently, HR and finance functionality are the main solutions to purchase within an ERP, with the other modules depending on the needs of the organization and the software vendors offerings. 4.6 SUMMARY COMPARISON: TIER 1 VERSUS TIER 2 The following table identifies some of the key differences between Tier 1 and Tier 2 software providers on issues such as support requirements, cost of implementation services, cost of major version upgrades, software support channel and other factors: Characteristic Tier 2 Vendors Tier 1 Vendors Sample Representative Vendors: SunGard Public Sector (e.g. OneSolution) Tyler Technologies MUNIS and Eden New World Systems Harris (e.g. Innoprise, etc.) Springbrook Others Oracle (PeopleSoft and Oracle e-business Suite) SAP Oracle (JDE 1.5) Infor (1.5) CGI (1.5) Unit4 (1.5) Others Design Considerations Primarily designed for public sector Ongoing Technology Support Resource 49 P a g e More prescriptive functionality and less conducive to customization without altering source code Often leverage common municipal technology standards (e.g. MS SQL database). Some support Oracle Environments leverage 3rd party tools (database, report writer, etc.) Requires fewer technology FTEs to support Developed product for private sector and later adapted for public sector Many modules specific to public sector Larger organizations with greater R&D budgets, offer more robust technology Robust development tools Scalable to leverage most robust development and database environments Most require multiple technology FTEs to support

Characteristic Tier 2 Vendors Tier 1 Vendors Requirements Also impacted by level of integration with other organizational systems Also impacted by level of integration with other organizational systems Software Functionality Incrementally less robust functionality for core components Implementation Services for New Installation Staff required for Implementation Ongoing support staff required Cost Model for Major Version Upgrades HR/Payroll solutions are frequently less robust as compared to Tier 1 offerings Many vendors offer additional public sector modules, such as fleet management, request for service, etc. License costs per user typically less expensive than Tier 1 Vendor Homework approach has organization responsible for many implementation tasks Frequently implemented with organization resources not dedicated to the project Rarely requires full-time vendor staff to implement Software vendors also implement their own solutions Implementation services to license fees ratio typically closer to 1:1. 2:1 would be more robust services approach 3-5 FTE 6-12 FTE 1-3 FTE 3-8 FTE License fees for version upgrades often included with maintenance fees Most major upgrades require moderate levels of vendor services Core modules have robust functionality May lack public sector specific features (e.g. encumbrance rollover, GASB 34 reporting, etc.) License costs per user typically more expensive than Tier 2 Requirement for multiple full time staff to implement Requires significantly greater implementation vendor resources than Tier 2 to implement including key staff that are full-time to the project Software implementers are typically integrators / channel partners Implementation services to license fees ratio frequently 3:1 or higher Most major upgrades include significant license fee costs Most major upgrades require significant levels of vendor services to assist 50 P a g e

Characteristic Tier 2 Vendors Tier 1 Vendors Software Support Channel Primarily direct vendor support Mixed, some direct, some through implementer / value added reseller channel Hosting Options* Generally hosted internally, some offering Software as Service/Cloud solutions. Few multi-tenant web-based options. Generally hosted internally, some offering hosted solutions. Few multi-tenant web-based options. 4.7 APPROACH: REPLACE CURRENT SYSTEMS WITH AN INTEGRATED ERP In 2012, Sumner County enacted the Financial Management Modernization System of the County of Sumner, TN, or otherwise known as the 2012 Finance Act. As a result of this Act, the County and the Schools are to streamline business operations and consolidate associated financial systems on or before June 17 th of 2016. Through a competitive RFP process, the County could procure and implement a fully integrated Tier 2 (or a Tier 1 (or 1.5 )) ERP system. As described in detail earlier in the report, some Tier 2 solutions are designed specifically for the public sector so that they offer a wide variety of modules and Tier 1 solutions are used by a wide variety of industries, including special districts. Tier 2 solutions typically have fewer configuration options but require a significantly lower implementation effort and on-going internal support. Tier 1 solutions will require a greater level of implementation effort but can provide the County with robust functionality and flexibility to grow in the future. Given this, the new system would replace the current Zortec applications as well as the many additional spreadsheets and other shadow systems. By changing systems, the County would support the current environment throughout the future system selection and implementation effort. The system selection would be a competitive procurement with stakeholder input to define requirements and measure vendors against them. It would require a capital investment and necessitate ongoing sustained investment through software maintenance and continued internal technical support. The following graphic illustrates how the County s future ERP environment may look. 51 P a g e

Core ERP: Those modules that are intended to be replaced as part of the project through the RFP process although their replacement will likely occur in various stages of software implementation. Expanded ERP: Those modules that are being considered for further evaluation during the RFP process and may or may not be replaced as part of the project depending on a number of factors. County Interfaces: Those modules that are not within the scope of the project but may have interfaces to the implemented ERP solution. At some point in the future, the County may consider replacement of these modules or a marketplace assessment to determine the current vendor solution set that exists for these areas. 52 P a g e

4.7.1 Cost Estimates Capital Cost Estimates for ERP System and Implementation Through a competitive RFP process, the County can procure and implement a fully integrated ERP system. Based on Plante Moran s experience with ERP projects of similar scope and an anonymous Request for Information distributed by Plante Moran on behalf of the County, estimated internal and external cost projections have been developed for the County to select and implement an ERP solution, as follows: Total ERP Project Costs* ERP Replacement Project Costs Low Estimate (Tier 2) High Estimate (Tier 1.5) External Project Costs Hardware/Software $ 871,000 $ 1,681,000 Hardware & Supporting Software 145,000 181,000 Software License Fees 726,000 1,500,000 ERP Vendor Services $ 592,000 $ 3,000,000 Implementation & Vendor Proj. Mgmt. Services 544,000 3,000,000 Other Expenses 48,000 - Additional 3rd Party Services $ 304,000 $ 360,565 System, Proposal Evaluation and Contract Negotiation Services 77,740 77,740 Implementation Management Assistance 226,260 282,825 Project Contingency $ 272,000 $ 756,000 Total External Costs $ 2,039,000 $ 5,797,565 Internal Project Effort / Costs: Vendor (FTE) 5 5 Vendor (duration - months) 6 6 Vendor Cost: $ 200,000 $ 200,000 Software Implementation (FTE) 4.5 6 Software Implementation (duration - months) 18 18 Software Implementation Cost: $ 540,000 $ 720,000 Total Intenral Costs $ 740,000 $ 920,000 *Does not include on-going support or software maintenance costs. 53 P a g e

On-Going Support Costs After procurement and implementation of an ERP system, the County must be able to support the new solution. Essential to the support and maintenance of an enterprise solution are the following issues: Vendor Support and Maintenance Technical and Functional Support End-User Training As part of the total cost of ownership, software vendors require payment of annual support and maintenance fees. Generally, annual fees range from 15-25% of initial license fees. Types of support can include on-site post-implementation support, off-site telephone support, third party support, access to upgrades, and access to training courses. Enhanced Critical Software Support and Managed Services are available from vendors as well at considerably higher rates. The level of technical support varies depending on the complexity of the enterprise solution. Technical support is essential to maintain proper application compatibility and ensure the successful continued operation of the system. Software vendors recommend different staffing levels for ongoing support based on the complexity of the system. It should be noted that every public sector entity is different and staffing levels may differ depending on the complexity of the system, in-house expertise, and overall IT governance structure. After implementation, the County can only take advantage of the full functionality of the ERP if users are adequately trained to use software. Similarly, new employees must receive adequate training on the system. Cost estimates for ongoing support of a new ERP system for 5-years are included in the table below: Ongoing System Support Effort / Costs (5 yrs): Low Estimate (Tier 2) High Estimate (Tier 1.5) Functional Support (Business Analysts) (FTE) 2 4 Internal Support Costs $ 800,000 $ 1,600,000 Training Staff (FTE) 1 2 Recurring Annual Training $ 400,000 $ 800,000 Vendor Annual Maintenance and Support $ 610,000 1,650,000 5 year On-going System Support Cost: $ 1,810,000 $ 4,050,000 Additional details related to the assumptions used for the cost estimate are included in the ERP Cost Estimate Assumptions section in the Appendix. 54 P a g e

5 Recommended Next Steps 5.1.1 Project Governance Implementation of the new ERP system will require a well-coordinated and well-organized governance structure in which to operate and manage the project. For the ERP system being considered by the County, all staff will be impacted. Complex ERP implementations are most successful at organizations with structured governance structure set-up for the project. The process and technology changes will be significant and will impact all departments. As a result of the passage of the 2012 Finance Act, there will also likely be policy and organizational structure changes that will need to be considered and implemented to receive the full benefits. Strong project management is also critical for deployment, and becomes increasingly important with the ERP investment. As a result, it will be critical to form a project structure that meets the following requirements: Considers the needs of a variety of stakeholders Provides the ability to make decisions in the most efficient and effective manner Ensures that project communication is flowing to the right individuals at the right time including those that are part of the project team and those external to the project team The project team structure is empowered by management to enforce policies Recommended Strategies The following strategies should be employed relative to the establishment of a project governance structure during the selection and implementation phases of the project: 1. Governance Structure Establishment: Establish a formal governance structure to coordinate the selection of the new ERP system, with the intent that structure can be leveraged and specific roles can be re-defined for future design, implementation and maintenance phases of the ERP lifecycle. See the Sample System Roles & Responsibilities matrix in the Appendix for further clarification. 2. Identification of County Staff Time Commitment: As part of the RFP process, request information from vendors as to the optimal County staffing structure and time commitment required for a successful ERP implementation including on-going support and maintenance of the system. 3. Establishment of Time Commitment Expectations: Prior to launching the implementation phase of the project, establish expectations with County staff as to the time commitment that will be required for a successful implementation. 4. Determine Sunsetting Policy: Establish policies to sunset legacy best of breed and shadow systems, in conjunction with the ERP implementation so that they do not perpetuate an environment of dual information tracking. 55 P a g e

5.1.2 Request for Proposal (RFP) Tactics The Request for Proposal (RFP) will encompass a number of sections including a list of the software modules to procure, detailed software specifications, interface requirements, and migration paths for existing systems. Recommended Strategies The following strategies should be considered by the County through the RFP and due diligence activities leading up to the selection of a future ERP solution: 1. Vendor Clarity in RFP: Ensure that software vendors are clear as to the strategy of the organization as it relates to the procurement of replacement software. 2. Open Procurement: The County should define both functional and technical requirements as part of the RFP process and allow to vendors propose their respective solutions. The County will then be able to evaluate the solutions based on the selection criteria and conclude on the most appropriate level of investment. The ERP Marketplace Assessment section further details the differences between the Tiers of vendors. 3. Identify Other Vendor Module Capabilities: Within the RFP, include additional questions pertaining to the capabilities of vendors in other areas not considered as part of the initial scope of the project (i.e., system interface required modules) but which may be available from the ERP vendors. 4. Balance a Strategic Vendor Decision with a Preliminary Investment: Include all ERP modules which the County may consider as part of an ERP procurement and structure the RFP to provide a la carte pricing. This will allow the County to evaluate the full scope of the vendor solution to aid in the strategic decision of the vendor/erp platform; however, make a subsequent conclusion on phasing the investment. Please refer to the Phasing section below for additional details. 5. Progressive Elaboration: As the County learns more about the work of the project, planning can progress and becoming more elaborate over time. Using consultant templates and expert judgment can assist with leveraging lessons learned from other similar local public sector organizations; however, specific implementation planning requirements will be increasingly defined throughout the project phases. 6. Evaluate Financing Options: As part of the RFP process, the County may wish to consider financing options that are available from the vendor to provide an improved payment stream to fund the cost of the project. 7. Consider County and Vendor Hosting Solution Offerings: The capabilities of municipal software vendors that provide robust hosted solution offerings are becoming more appealing for a variety of reasons. The County should consider requesting both types of offerings from responding vendors to evaluate the potential of having one or more solution components be externally hosted. 8. Software and Services Solutions: Ensure that information is gleaned from providers of ERP solutions in areas of both product and service as part of the RFP and due diligence activities. Specifically, this would include the following: a. Review their product offerings as requested in the RFP b. Identify and contact relevant references of a comparable size to the County c. Develop vendor demonstration agendas that are geared towards identifying how the vendors will achieve specific County outcomes d. Develop a preliminary Total Cost of Ownership (TCO) over 5 years factoring in all internal and external costs e. For multi-product solutions, assess the degree in which these various products have operated with each other at other clients 56 P a g e

5.1.3 Phasing The implementation of a municipal management solution presents a number of options as to when certain modules are deployed, frequently based on when the various business cycles are executed within the County such as: Fiscal year-end Calendar year-end CAFR development Budget development There are a variety of options to consider when implementing a new system including the appropriate phasing of modules. For the County, the natural grouping of modules, although not necessarily in the order shown, is as follows: Core ERP (to include Financials, Document Management and HR/Payroll) Time and Attendance Asset Management Recommended Strategies Although there is no perfect answer as to when certain modules should be deployed, the following best practices should be considered related to the implementation phasing set of activities: 1. Implement Complimentary Modules Together: There is a natural implementation phasing of like modules as part of the deployment of a new ERP system. For example, core financial modules should be implemented together. Likewise, HR/Payroll modules, to the extent incorporated, should be implemented together as well. This is another example of factors to be considered when determining an overall implementation approach. 2. Avoid Big Bang Approach : The deployment of a new ERP system is a very significant project requiring a large amount of staff and vendor time to implement as it will impact people, process, policy and technology. Careful phasing of implemented modules should be performed versus a big-bang approach of implementing all software at the same time to minimize overall project risk. The County may wish to consider separating core financial modules, payroll and personnel, and procurement functions into separate phases. Integrations to other County systems should follow as the ERP modules are implemented over time. 3. Evaluate Opportunities for Quick-Win Implementations: There are a number of opportunities to obtain quick-win implementations of a new system that provide visible evidence of project success and minimize the risk of bringing all modules up simultaneously. Frequently, modules such as Debt Service Management and Investment Management are isolated to a limited number of individuals, are relatively simple to deploy and do not have significant interaction with the core financial system. Opportunities for these quick-wins should be explored during the vendor selection phase of the project and more closely during system implementation. Certain quick-wins may need to be initially implemented in standalone mode with or without temporary bridges in place and then later integrated when the core ERP is live. 4. Consideration of Natural Business Cycles: A natural tendency is to implement a the financial components of an ERP system such that go-live is on a fiscal year-end to have all transactions for a year on one system. In general, there are many cases where this is not the ideal situation as the post go-live challenges with implementing a new system impede significant activities that are required for year-end close. HR/Payroll solutions tend to go-live on a quarterly basis and the County may wish to 57 P a g e

consider going live at a calendar year break due to the processing of W-2 statements for employees. Regardless, natural County business cycles should be considered as part of the phasing of ERP modules. 5.1.4 Cost Containment Strategies for Implementation The procurement and implementation of a comprehensive ERP solution can be a very expensive endeavor with opportunities for purchasing software and services that do not necessarily equate to immediate or long-term value for the County. This is especially relevant in these difficult economic times in which County expenditures need to be directed appropriately to maximize the benefits to County staff and to the constituents served by the County. There are a number of strategies that the County should consider when selecting and implementing a software solution to maximize the value of what is being acquired as follows: Ensure that the purchased solution is an appropriate fit for the County versus over-buying on a solution that has additional functionality that will likely not be used by the County Take advantage of best practices offered by the software vendors versus customizing the products to meet unique County needs Defer or opt-out of procuring more advanced software functionality that adds incremental value to the base solution or whose overall costs is not worth the functionality provided State the top-end budget for the software vendor in the RFP such that the onus is on them to construct a response that fits within the County budget Minimize the amount of data conversion to be performed Implement only critical interfaces during the initial go-live while deferring or opting out of the implementation of less critical interfaces Opt out of certain services that add incremental value to the overall success of the project or alternatively perform those services internally if the skillsets exist (e.g., change management) Negotiate the start of maintenance payments as far in the future as possible Negotiate vendor payments to be aligned with achievement of critical milestones Negotiate hold-backs/retainages to be paid out once final acceptance of the entire solution is achieved Look for price concessions from the vendors as part of contract negotiations Implement a vendor-hosted solution and construct the payment stream such that it is evenly spread over a seven or ten year period 58 P a g e

5.1.5 Staff Backfill The anxiety of staff who will be involved in the project is significantly high as they try to comprehend the amount of effort that will be required to implement the new solution and associated processes while continuing to perform their existing work. Frequently, staff who are the most desirable to lead such a replacement project are also the ones who also have the most knowledge of the legacy environment and are viewed as key in maintaining the integrity of the existing environment. Recommended Strategies Consider the following tactics with respect to performing staff backfill during the implementation phase of the project: 1. Factor Backfill Costs in Project Budget: The County should factor backfill costs into the overall project budget that is presented to the County Commission as part of the entire project budget. 2. Consider Recent Retirees to Provide Backfill: To the extent feasible, evaluate the opportunity of using recently retired staff to provide backfill support for the project or to provide assistance in critical areas deemed important for the project due to their institutional knowledge. This may include areas such as data conversion assistance, including data cleansing, where this institutional knowledge is relevant, or for addressing day to day operational responsibilities, while current County subject matter experts focus their attention on the ERP implementation effort. 3. Consider Workload Sharing: Based on normal business cycles, certain County staff may become especially busy addressing operational requirements. During these times, a refocus of other staff s efforts to assist them in their operational duties, can mitigate the bottlenecks which can result and increase staff availability to participate on project work. Additionally this can help with staff crosstraining, and collectively upgrade staff skills in each work area. To the extent that the County can proactively initiate such approaches in advance of the ERP project, it can provide benefits to allow subject matter experts to more easily transition to their project roles. 5.1.6 Data Cleansing/Conversion Legacy systems frequently have data stored in a variety of formats either electronically within the system or in hard-copy format, which is deemed as critical and has data retention requirements. Vendors will generally provide two approaches towards the conversion of client data. In one method, vendors will provide a template format to the County and request that all data to be converted is provided in the requested format regardless of the number of data sources that currently house this information. In the second method, vendors will manage both the extraction and conversion of information into the template format. In both cases, the data conversion process will be iterative in terms of extracting, converting, reporting and reviewing. Likewise, cleansing of the data prior to the data conversion activity during implementation will generally make this process occur more smoothly. Regardless of the methods taken, data conversion is considered a critical part of system implementation and one that can be a critical risk to the project if not managed correctly. Recommended Strategies The following data cleansing/data conversion strategies should be considered to minimize the challenges that many organizations encounter as part of migrating data from the legacy to the new environment: 1. Scope Data Conversion Requirements Early: Define general data conversion requirements in the RFP and work with the tentative finalist vendor during the last stages of the selection to finalize the scope of conversion within the Statement of Work (SOW) with the ERP vendor. 59 P a g e

2. Minimize Data Conversion Volume: Avoid converting all historical information to the new environment. Instead, consider the conversion of summary information as a first course of action unless detail is needed. 3. Assess Alternative Options to Converting: Consider alternative options of accessing historical information other than electronically. This may include printing of reports to electronic files or the creation of a data mart. 4. Develop Required Cross-Walks: Develop a cross-walk between legacy and new system data as part of the conversion process. For example, this may include development of an interface that allows users to enter in an old account that then displays the same account in the new structure. Likewise, an old vendor number could populate a field in the new system to act as a cross-reference. 5. Initiate Data Cleansing Activities Early: Begin data cleansing activities as early as possible. For example, the County may wish to start reviewing its existing vendor file and eliminating duplicates or vendors who no longer exist. During the implementation phase of the project, most ERP vendors will provide specific instructions related to data cleansing activities. 6. Assess Alternative Conversion Destinations: As a separate internal project, consider the use of a data mart for housing of legacy data for historical reporting purposes. If this route is chosen, clear responsibilities for separately acquiring and implementing the data warehouse will be required to consider both vendor and County staff involvement. 5.1.7 Interface Development Interfaces related to the deployment of a new financial system can exist in various forms as follows: Standard imports or exports provided by the vendor s solution with entities and systems outside of the County (e.g., benefit providers, other governmental entities, etc.) Interfaces between the vendor s solution and applications that are not being considered for replacement as part of the project (e.g., ESRI, egov, etc.) Interfaces between the vendor s solution and applications that are being considered for replacement as part of the project that may or may not be provided by the prime vendor (e.g., document management, etc.) Decisions as to who will develop and provide on-going support for system interfaces are another important factor to consider. Frequently, vendors will provide toolsets that assist in the development and management of system interfaces. Recommended Strategies The following strategies should be considered relative to interface development activities: 1. Define Required Interfaces Early: Define needed interfaces between the new ERP and external entities in the RFP. This would include existing as well as desired new interfaces that would be populated in the Application Interface Table of the RFP. 2. Consider External Systems in Interface Definition Development: Define needed interfaces between the new ERP and other County systems not being replaced in the RFP. This would include existing as well as desired new interfaces that would be populated in the Application Interface Table of the RFP. 3. Mandate Prime Vendor Responsibility for Interface Development: Ensure that the prime vendor is responsible for the delivery of all system interfaces during implementation. 60 P a g e

4. Shadow Staff to Facilitate Knowledge Transfer: County staff should shadow ERP vendor staff during system implementation to develop an understanding of their conversion tools such that the County can maintain those interfaces designated for County support going forward. 5. Contract for Standard Interface Support: Consider allowing the software vendors to maintain interfaces that exist between their product and entities outside of the County (e.g. benefit providers, IRS, etc.) and, as an option, other systems not being considered for replacement by the County. 6. Ensure Holistic Interface Strategy: Perform the necessary work to inventory the system interface requirements, develop an System Interface Plan, design and develop the system interfaces, test and accept the interfaces and implement them in conjunction with the out of the box system implementation. 5.1.8 Report Development Although the selected vendor will provide a significant number of reports and queries through their base system there will be a need for the County to have existing reports customized and to have additional reports developed that are not available as part of the core set of reports. The skill sets required for report development include not only the report development tools but also an understanding of the database and/or views which the reporting tools access. Likewise, if the County pursues the use of a separate data mart /data warehouse in order to perform more complex analysis, additional skill sets will be needed. When software vendors demonstrate their solutions, the expectation of users being able to perform ad-hoc reporting themselves is heightened as the vendors will present the process as simply involving the point and click of a few buttons to generate the desired results. In reality, the process of using the tool and developing an understanding of the database/view takes a period of time. Recommended Strategies The following strategies are proposed to maximize the reporting outcomes from the project: 1. Establish Staff Expectations on Reporting Options: Reset staff expectations that traditional reporting should not necessarily be the first or most appropriate method towards obtaining the financial, procurement or HR information that they seek. Instead, as part of the overall training approach, ensure that staff understands the self-service, inquiry and portal functions available in the system, and when to use them. 2. Ensure Training on Reporting Tools: Identify a joint team of process owners and technical support staff to be trained on the ad-hoc reporting tools during the implementation. These staff will likely be generating custom-developed reports for some time after the go-live period. 3. Assess Reporting Options During Process: Obtain a clear understanding during the selection process as to the reporting options available with each vendor solution and, for each reporting option, and who within the County will be using the tool. 4. Establish Process for Identifying and Developing Custom Reports: Work with the software vendor during the implementation phase of the project to develop a select set of custom reports, with their assistance, to improve knowledge transfer as to both the product and database structure. 5. Establish Go-Live Reporting Expectations: Reset staff expectations that not all reports will be available at the go-live transition and that all users will be able to generate ad-hoc reports. 61 P a g e

5.1.9 Change Management Project success comes from having a very clear idea of how management would like to run the County and then using a new ERP system to facilitate the way the County has envisioned it. When software implementations do not meet expectations it is often due to people issues, and not necessarily the technology. Research indicates a correlation between the success of a change initiative and how well the people side is managed. That is why applying a change management methodology is critical to the success of such an initiative. A rigorous change management methodology is critical to supporting the successful launch of the new ERP. The purchase and implementation of a new ERP system and related technology is done to assist in meeting organizational objectives and improving performance. Organizational performance is also impacted by the people of an organization and the processes used to complete work. Throughout the project, the goal is to balance these components, as illustrated: Technology Process People 62 P a g e

5.1.10 Communication Planning As part of the first steps of change management planning, the County should develop communications plans intended to guide project communications from inception through post-implementation. By its nature, the ERP replacement project will affect many staff across the County. For this reason, a Communications and Change Management Team recommended the appointment of key change agents within each County Department to nurture 'buy in' and get Department staff committed to taking relevant actions. Such team members will be involved in educating Department staff about the impacts and benefits of the project and be inspiration agents by helping Department staff find ways to discover their potential, overcome barriers, and celebrate successes. These staff should monitor "what is working", "what isn't working" and "what do we need to change" and provide regular feedback on progress to Department staff. Acknowledging the diverse County audiences that will be involved and impacted by this project, a Communication Plan should be developed to create awareness and make the project relevant by effectively communicating the impacts to both internal and external stakeholders. Sample objectives for a Communication Plan may include: Accurately distribute information in a timely manner concerning important project benchmarks and progress to employees. Use various media to provide multiple sources from which information concerning the project can be accessible. Ensure all information available is updated and accurate. Reduce confusion among employees by providing a sole directive and source from which all project information originates. Provide clear channels of communication within which County project staff can operate to lead to an expedited solution to issues that arise during the selection and implementation and after its completion. Encourage feedback from employees across the County 5.1.11 Process Re-Design The County should be re-engineering business processes in conjunction with the implementation of the new ERP, as part of a successful change management approach. The needs assessment activities that were conducted outlined a number of 'as-is' process maps, and surfaced several opportunities for improvements in the management and execution of existing processes. Through the course of conducting process owner review sessions and stakeholder review sessions, process-specific as well as County-wide issues and opportunities were surfaced. During the implementation phase of the project, there will be significant levels of review conducted by the selected vendor to understand existing County processes and how their software can be used to improve the efficiency and effectiveness of these processes. However, it is generally considered the responsibility of the client to develop the actual procedural documentation that defines exactly how these processes will operate with the selected system for use by process owning and process end-user staff. Recommended Strategies The following strategies related to process redesign are recommended: 1. Educate Vendors on Process Considerations During Implementation: During the RFP development and due diligence activities associated with reviewing vendor responses, ensure that process redesign decisions are provided to the vendors. 2. Recognize Change Management Challenges: Consider the significant change management aspects associated with the large amount of process redesign that will likely occur on the project. 63 P a g e

3. Assess Process Redesign Support During Process: As part of the due diligence phase, ask the finalist ERP vendors what process redesign activities they will conduct during the implementation phase of the project and the specific deliverables that will be produced. 5.1.12 ERP System Training The County should develop appropriate training plans in conjunction with the implementation of the new ERP. The County does not currently have any formalized training program for existing financial, procurement and human resources systems. Current training methods are primarily limited to informal one-on-one training provided by County staff that support the individual systems or are the key users of the systems, at the time that and that is an issue. The process of providing training to on the new County system should occur in in conjunction with the implementation of the new ERP. Training should be both functional and technical. Functional training should be for both process owners and process end users to include technical training to County IT and departmental power user staff. Recommended Strategies The following strategies should be employed relative to training on the new system and associated changed processes: 1. Communicate Training Expectations: During the RFP development and due diligence activities associated with reviewing vendor responses, ensure that any specific training expectations are articulated to the vendors. Consider the use of a train the trainer approach, whereby the County would save on vendor implementation expense, as well as encourage County process owners to become knowledgeable about the key aspects of the system. 2. Assess Level of Training to be Performed: As part of the due diligence phase with the finalist ERP vendors obtain a clear understanding as to the level of training activities they will conduct during the implementation phase of the project and the specific training materials. 3. Define a Training Team for Implementation: During the implementation of the new ERP, formulate a Training Team which will focus both on the implementation training requirements on the development of an ongoing internal training program for continued exploitation of the capabilities of the new system over time. In future budget cycles, consider including an ongoing training budget specific to the ERP system, to assist in maximizing the ongoing leveraging of the County s investment. 64 P a g e

Appendix A: Project Charter Sumner County, TN ERP Needs Assessment and Solution - Project Charter PROJECT NAME: Sumner County, TN Enterprise Resource Planning (ERP) Project VISION STATEMENT: The project will provide an integrated Enterprise system that will support County staff in the delivery of Government services and activities, take advantage of best practices, and significantly improve the efficiency and effectiveness of County's customer service and business processes. PROJECT OVERVIEW: The County will implement an Enterprise Resource Planning system on or before June 17, 2016. The implementation will replace the current mainframe system. PROJECT PURPOSES: Replace certain core business systems and shadow systems with a web/internet based, transaction based, integrated ERP system. Have more effective business processes & replace our paper-oriented processes using e-forms, document imaging and workflow. Have employee self-service for HR activities. Provide better front-end services by improving our back-end services & systems. Replace our 15 year old mainframe based system that is antiquated, disjointed and in some cases, does not provide a complete and consistent view of the information. PROJECT OBJECTIVES: County hopes to accomplish the following objectives with the successful completion of this project: Incorporate fully integrated "best business practices" Develop a system that is user-friendly and empowers departments to improve their business processes Add and improve functionality in back-office functional areas Improve quality and accessibility of information for decision support Eliminate paper-based workflow processes and forms Reduce redundant shadow systems, data entry, storage, and paper processing Improve operational effectiveness and productivity Enable e-government initiatives, including enhanced customer service and web self-service Reduce the number of systems we own and support and their related costs by retiring existing legacy and back office "systems" and tools Increase our ability for teleworkers and telecommuters to access systems and information remotely through the use of a web-based user interface BUSINESS DRIVERS: 1. One current view of the data; a single source of the truth. Eliminate conflicting information, shadow systems (spreadsheets, multiple systems with the same basic functionality, etc.) 65 P a g e

2. Significantly reduce process time through business process reengineering and best practices in the ERP product 3. Users & vendors can see where their transaction is in the process. Fewer phone calls for status. 4. Eliminate paper-based processes & forms 5. Employee self service 6. Quality is moved to the front of the transaction 7. Get off the 15 year old mainframe PROJECT INFLUENCES: Available resources for implementing the selected solution Staff time and financial resources Existing processes have been in existence for an extended period of time that are paper-based and are based on existing technology Current system lacks flexibility. CRITICAL SUCCESS FACTORS: Ensuring that all of the needs of the County are thoroughly defined, documented and understood by the vendors. Business process reengineering takes place as appropriate Vendor understanding of what the County is trying to accomplish with a new system Obtaining buy-in from the departments on the process for defining the needs and selecting a new system Gaining ownership by the departments on the selected system Ensure that the selection process is conducted under a sound and unbiased process The County provides adequate resources to the selection and implementation of the system County staff perform appropriate due diligence in reviewing the potential vendor solutions to ensure that the selected solution will meet their needs Have users that are computer literate to the extent that they can effectively use the system Have a user help system in place to provide quality, timely help to trained users and to provide training to new employees and users PROJECT CONSTRAINTS: Staffing resources during the implementation effort New system needs to be operational by June 17, 2016 There is no formal training function that currently exists within the County (materials, support staff, etc.) User buy-in and capacity for change during implementation Legal restraints that impact County financial and human resources operations PROJECT SCOPE: In-Scope: This project will impact the business processes that the County employs to accomplish most financial and human resources related tasks. Virtually all County employees will be affected as current paper-based processes are moved to the ERP system including the following areas: o Accounts Payable Forecasting) o Bank Reconciliation o Cash Management o Budgeting (including Budget o Cash Receipting / Point of Sale 66 P a g e

o o o o o o o o Dashboard Debt Management Fixed Assets General Ledger Human Resources Inventory Management Investment Management Miscellaneous Billing and Accounts o o o o o o Receivable Payroll (including time entry) Performance Management Project & Grant Accounting Purchasing Financial Statement Preparation Document management Out-of-Scope: The following areas are deemed to be out of scope on the project: o CRM system o o o Most law enforcement processes Health patient care systems Jail management system (jail & inmate operations) GUIDING PRINCIPLES: The County shall adhere to the following principles throughout the planning, design and implementation of the project: a. Information is a County asset to the extent that it is not confidential or private. b. Establish common processes & practices across the County. c. Focus on process and transaction quality; build quality at the source. d. Provide relevant, timely, and consistent management information. e. Minimize resources allocated to transactional activities; focus more on information to run the business. f. We will embrace process improvement strategies and shall encourage the implementation of out-of-the box functionality (what is normally termed in the industry as "vanilla") and best business practices embedded in the software. We will use the functionality provided by the software out-of-the-box. There will be virtually no customization (we modify the source code) of the software; it will be considered only as a last resort with Steering Committee approval. We will configure the system to meet our unique needs within the options offered by the product. g. The ERP Steering Committee shall be composed of department leadership staff who are committed to dedicating appropriate staff resources to ensure the success of the project. h. The County shall embrace financial accounting best practices. i. Decisions related to project activities and system implementation shall be developed for the betterment of the entire County. j. Department needs shall be given adequate consideration in the development of project policies and activities. k. The project shall minimize system interfaces, and prioritize integration over best-of-breed solutions, unless significant, mission-critical reasons exist for not doing so. l. We will place high priority on transitioning displaced personnel into other Government job positions within a similar classification should this be necessary due to system implementation. m. The County shall commit to providing adequate staffing and financial resources to ensure the success of the project, during and after its completion. n. The ERP Steering Committee commits to ensuring that adequate training is available to project team staff and County system users during the implementation, prior to placing the system into production, and after the system is in production. o. The project shall strive to decentralize operational responsibilities and approvals to the degree reasonable and possible. The ERP Steering Committee commits to ensuring that adequate training is available to project team staff and system users during the implementation, prior to placing the system into production, and after the system is in production. 67 P a g e

p. The County s IT architecture & standards shall be followed and will be communicated as a must in the system RFP. q. Mainstream security practices and functionality will be built into the system. PROJECT MILESTONES AND DELIVERABLES: ERP Specification Development: o ERP Assessment Report: 12/14/2012 Software Phase: o Release of ERP RFP: TBD o Select Preferred Vendor: TBD o Negotiate ERP Contract: TBD Implementation Management Phase: o TBD Note: See Project Schedule in SharePoint for the most current & complete schedule information. 68 P a g e

PROJECT ORGANIZATION STRUCTURE The following are the roles that will be employed for the County ERP selection phase of the project. These roles are essential for the success of the project and are intended to define the project reporting structure and lines of authority for decision-making. This structure will be modified once the selected vendor solution has been made and the implementation phase of the project begins. The management component of the project consists of the Executive Sponsors, the Steering Committee and Project Managers. The Project Managers report directly to the Steering Committee. Leadership is further broken down into Process Area Team leads and team leads for Communications and Change Management. Further description of the teams, membership and responsibilities are outlined below. Project Role Individual(s) Responsibility Executive Sponsor David Lawing Del Philips Maintain the project vision Act as the project champion Energize the project leadership and teams Be visibly committed to the project Provide a strategic perspective when defining the needs for a future ERP and associated processes Remove project roadblocks Secure alignment across departments Coach the project leadership Steering Committee Policy Subcommittee of the Financial Management Modernization System of Sumner, Tennessee of 2012 (Anthony Holt Del Phillips David Lawing Amanda Prichard) ERP projects require executive level support from all organizational areas significantly impacted by a new system. The Steering Committee should provide incentives to County-wide executives to view the project as a top priority. To the extent possible, the Steering Committee is comprised of senior-level managers who have the ability to make the decisions regarding changes in organizational policy and procedures that will be required by an ERP implementation. Steer the Project Managers Address issues presented by the Project Manager Clear roadblocks that jeopardize project success Create the conditions to make the Project Managers successful in their role Review and decide on proposed changes to organizational policies and procedures that will be impacted by the project Review and make decisions on project change orders Review and approve significant project recommendations (e.g., recommended vendor solution) Review and approve the ERP Needs Assessment Report 69 P a g e

Project Role Individual(s) Responsibility Software Committee David Lawing Amanda Prichard Shawn Curtis Work with the County departments to ensure that all software functional needs have been identified and prioritized (musts, wants) Develop proposed vendor selection criteria and weightings Review and approve release of the ERP RFP documents Review and provide feedback on vendor proposals Participate in vendor proposal analysis meeting to determine and recommend finalist vendors Participate in software vendor demonstrations and integrator presentations Conduct reference checking and site visits, if performed Solicit input from the Team Leads (if not a team lead) regarding the vendors solutions Conduct scoring of finalist vendor solutions Recommend preferred vendor solution 70 P a g e

Project Role Individual(s) Responsibility Project Managers David Lawing The person(s) in this role must monitor and manage several "mini projects" over the life of the ERP project. There are many teams working on individual tasks and many tasks occurring simultaneously. Therefore, the effective project manager determines the right level of involvement keeping a close enough eye to recognize problems early but maintaining the "big picture" vision to ensure that the project as a whole is on target. It is critical that the project manager be at the center of all project communications and activities so that he is current on the status of the project. All communications and questions about the project shall be directed to the project manager. Ensure that prompt and clear communications to County department staff is conducted Manage project milestones & activities Manage the project budget Manage the project schedule and task completion Identify and log proposed project change orders Manage and direct project resources Follow-up on project tasks to ensure on-schedule completion Communicate project status, issues and risks to the appropriate stakeholders Document and track to resolution project issues and decisions Escalate issues in a timely manner to the Steering Committee or Executive Sponsor as appropriate Oversee planning activities associated with project Ensure that project deliverables are reviewed by appropriate County staff Provide progress updates to County management, project Steering Committee, County Commission and other interested stakeholders Participate as a member of the Project Steering Committee Participate in contract negotiations with the selected ERP software vendor Maintain project team well being Manage the configuration of the SharePoint site Work with the team leads in communicating decisions that need to be brought to the Project Steering Committee for review and resolution 71 P a g e

Project Role Individual(s) Responsibility Project Administrator Process Area Team Leads and Backups Non-Process Owning Departments Beth Browning Amanda Prichard David Lawing Amanda Prichard Shawn Curtis Beth Browning Amanda Prichard Schedule various meetings between the consultant and County staff and other necessary project-related meetings Maintain the project calendar Ensure availability of appropriate resources to support project meetings Act as a liaison between the outside consultant and the County related to various project logistics Take minutes at meetings, as needed Ensure project communications are distributed Tabulate vendor demonstration evaluation sheets With a focus on a specific component of the ERP system, the process area team leads work with the project manager to drive the process. Each of these resources must have very strong expertise in their assigned functional area and should possess strong organizational, analytical and communications skills, as well as the ability to meet deadlines. Provide information on current County processes, systems and shadow systems used Participate in initial/on-site and cross-functional interview sessions Articulate needs and desires for a new ERP and associated processes Develop an understanding of how a future ERP and associated processes might operate Identify and communicate potential procedural or policy changes that may require decisions related to implementation of a new ERP Review and provide feedback on the Issues & Opportunities matrix Review and approve module specifications Review and provide feedback on appropriate sections of vendor proposal responses Develop vendor scripts to be used during vendor demonstration activities Participate in software vendor demonstrations Provide feedback on demonstration and due diligence activities Conduct due diligence on software vendors with peer organizations Participate on project teams Provide input from an end-user perspective related to various processes that are executed in their department 72 P a g e

Project Role Individual(s) Responsibility Technical Team David Lawing Amanda Prichard David Pigna Craig Clayton Provide information on the County s current IT infrastructure during the Needs Assessment phase Define technical requirements for a new ERP Review and provide feedback on the technical components of vendor proposals Conduct due diligence on technical aspects of the vendors solutions Assess the impact of vendor solutions on the County technology infrastructure Ensure vendor solutions conform with County IT policies, technical architecture and standards Ensure that the SharePoint site is operational throughout the course of the project Establish the resource(s) for support during the implementation phase of the project Change Management Team David Lawing Amanda Prichard Shawn Curtis Assess the readiness of the County with respect to change that will occur as a result of the project Actively participate in the conducting and analysis of the Denison Cultural Assessment Develop change management strategies and practices that can be used to enhance project success based on the results of the Denison Survey and other sources Develop, implement and monitor change management action plans Act as a liaison to the team leads for identifying and resolving change issues associated with people, process and technology Identify training and education requirements as it relates to change management needs associated with people, process and technology Define change management requirements for inclusion in the ERP integrator RFP Evaluate the change management approach provided by vendors in their RFP response Work with the selected ERP vendor in the development and implementation of additional change management strategies during project implementation Educate the project teams on change management theory and practices and bring those to the project Work with the Communications team on providing content related to the external facing project web site that is viewable by all County staff 73 P a g e

Project Role Individual(s) Responsibility Communications Team David Lawing Amanda Prichard Develop a Communications Management Plan that identifies how oral and written communications will be addressed for the various project stakeholders Communicate, implement and monitor deployment of the Communications Management Plan Manage a project suggestion/comment box In conjunction with the Change Management team, develop and implement strategies related to maintaining employee morale during the project (e.g., name the project, project celebrations, recognition of outstanding results, etc.) Act as the point for project communications that are directed towards stakeholders external to the project team Act as the focal point for external stakeholders who have information needs related to the project (e.g., press, community, etc.) Manage the structure and content of the County Intranet project site that is visible to all County staff Maintain awareness of general communications that are occurring related to the project Training Team David Lawing Amanda Prichard Shawn Curtis Define training requirements for inclusion in the ERP RFP Evaluate the training approach provided by vendors in their RFP response Formulate a training strategy to be used during the project implementation phase including identification of resource (e.g. trainers, facilities, materials, etc.) needs Human Resources Department David Lawing Amanda Prichard Act as the initial point of contact for issues that related to job roles and responsibility and/or civil service changes Shawn Curtis Procurement Office / Legal Counsel David Lawing Provide terms and conditions to be used in the RFP Participate in contract negotiation activities with the selected ERP vendor Negotiating Team Policy Subcommittee of the Financial Management Modernization System of Sumner, Tennessee of 2012 Negotiate contracts with vendors (e.g. ERP software vendor) 74 P a g e

Project Role Individual(s) Responsibility Outside Consultant Plante Moran Facilitate the needs assessment and selection phase of the project Apprise the project manager of current and potential project risks and discusses means of mitigating these risks Work with the project manager in scheduling, planning and conducting on-site visits Provide leadership and guidance to the County throughout the project Develop project deliverables 75 P a g e

PROGRAM MANAGEMENT STANDARDS AND PROCEDURES It is important to ensure that the entire project team is aware of the project standards and procedures, so that project deliverables are both uniform and easily referenced. The Project Team will function with the following set of standards and procedures. Communication related procedures are defined in the Communications Management Plan. SharePoint will be the primary source of project communications and archival of project information throughout the project. Team Leads are expected to post their team s meetings in the SharePoint Project Calendar section. Issues and Action Items Management: An issues and action items log will be placed on the project s SharePoint site. The issues database will include a description of the issue, a brief narrative of the potential impact to the project, date reported, date resolution needed, responsible party for follow up, and date resolved. The issues log review will be a part of the weekly Project Management meeting. The Team Leads will bring to the Project Manager in a timely manner any and all issues that need approval / resolution. So as to not impede the progress of the team, all reported issues must have a 24-hour turnaround for an initial response. Both the County and Vendor Project Manager should be notified once an issue has been logged. Risk Management: A risk management database will be placed on the SharePoint site that will be used to log all project risks to include the following for each risk: description, probability of occurrence, ability to control, impact and risk response strategy. Monitoring of project risks is the responsibility of all project participants. The risk log will be reviewed as part of the weekly Project management meeting. The Team Leads will bring to the Project Manager in a timely manner any and all risks that have newly surfaced or have changed in either probability or impact. So as to not impede the progress of the team, all reported risks must have a 24-hour turnaround for an initial response. Both the County and Vendor Project Manager should be notified once a risk has been logged. Budget Management: Tracking of the project budget during the selection phase of the project will be the responsibility of the Project Manager and reported out to the Project Steering Committee on a monthly basis. Budget status will be published to the SharePoint site on a monthly basis. 76 P a g e

Meeting Management: The following ground rules should be followed with respect to project meetings: Honor other people s time. Be prompt in showing up at meetings (i.e., meetings will start at the scheduled time and end at the scheduled time). Attendance is strongly encouraged. If not available, have your back-up attend and debrief your designated back-up prior to the meeting. Bring your calendar to the meeting. Keep your Outlook calendar current. Pagers/phones off/vibrate. No surfing / emailing. Respect everyone's opinion. Do not interrupt others while they speak. One person speaking at a time, no sidebars. If you gotta go, go. Speak-up, silence is consent. We will either actively contribute to decisions or implicitly agree to the outcome. Strive for consensus. Get to the point. Stay focused, stay out of the weeds. Use the parking lot. Keep it functional, not personal. Major issues, action items and risks identified during the meeting should be communicated to the Project Manager for logging purposes. Decision Management: Various types of decisions will be made during the course of the project. A Decision database will be maintained in the SharePoint site to track major decisions made during the course of the project to include: o Process-related decisions o Policy-related decisions o Significant system configuration decisions o Other key project decisions Significant project decisions will be escalated to the Steering Committee for review and decision-making. The results of these decisions will be communicated to and logged by the Project Manager to the SharePoint site. 77 P a g e

Change Order Management: Steering Committee approval will be required for all modification, and scope changes. A special form will be used for documenting the issue and providing guidance on approvals. Timeline Management: Management of the project timeline during the course of the selection project will be the responsibility of the outside consultant, Plante & Moran. Current timeline progress will be maintained by the consultant and published to the Project Schedule (using Microsoft Project) Library in SharePoint on a weekly basis. Status Reporting: During the selection phase of the project, the outside consultant will provide a bi -weekly status report to the Project Management team apprising them as to overall project status. The status report will include the following information: o Activities accomplished during the previous week o Activities expected to be accomplished in the upcoming week o Issues / barriers to success o Traffic light (green, yellow, red) related to various project areas o General narrative status discussion o Status of major milestone completion o Summary of project change order requests Status reports will be published to the SharePoint site on a bi-weekly basis. 78 P a g e

Appendix B: Application Inventory A partial list of the County applications identified through the ERP Needs Assessment process has been assembled, organized by functional area and is presented below: ** Legend: (ERP Availability) Generally Available: The module is generally available from most / many providers of ERP solutions to similar size entities Best of Breed: Expanded ERP: The module is not generally available from most / many providers of ERP solutions to similar size entities and is typically selected and implemented as a separate best of breed system, then later integrated to ERP, as feasible, based on available funding and skills. The module is available from certain, select providers of ERP solutions to similar size entities and if not selected and implemented as part of the integrated ERP system, would need to be retained and / or obtained by the County from a separate best of breed system, then later integrated to ERP, as feasible, based on available funding and skills. * Legend: (Preliminary System Migration Plan) Replacement (R): The County is intending on replacing this application Consider (C): Maintain (M): Interface (I): The County is considering replacing this application with an ERP solution, based on the strength of the finalist vendor offering and cost / benefit of the replacement module The County is intending on retaining the application, not replacing it. The County is intending on keeping the application and interfacing/integrating it with the selected ERP solution. Note that the County should further refine and document this plan as part of the process to develop specific software and interface requirements as part of a RFP process. Additionally, later as the County may conclude on a finalist ERP vendor, the County should update the list and conclude on the scope of the finalist vendor system components and services. Guidelines for Preliminary System Migration Plan With some exceptions, the following guidelines were used in performing the analysis of existing systems to develop the preliminary system migration plan: Limited ERP: Best Of Breed: Shadow System: 3rd Party Application: Replace as available in ERP unless providing other strategic the County function. Interface otherwise. Interface, unless available as stronger offering in ERP Replace as available in ERP Interface as appropriate 79 P a g e

Current ERP Application Application Notes/Description Functional Area Preliminary System Migration Plan* ERP Availability** Expected ERP Module DataQuest HR HR R Generally Available DataQuest Payroll Payroll R Generally Available HR Payroll DataQuest Benefits Benefits R Generally Available DataQuest Cash Receipting / Management Finance R Generally Available ImageEase Document Management Finance / HR / Payroll OnBase Document Management Maintenance and Pupil Services AESOP Time and attendance; sub-calling system Benefits, Open Enrollment Cash Receipts / Account Receivable R Expanded Document Management C / I Expanded Document Management Payroll / HR I NA NA SearchSoft Online applicant tracking HR C/I Best of Breed NA Filemaker Pro Alexander & Company School Funds Online/TRA Funds Horizons Point of Sale Applicant Tracking/Demographic Information Open enrollment for supplementals (life, disability, short term, etc.) Individual schools accounting system for activity funds Point of Sale System (may replace with CyberSoft) HR R Generally Available Human Resources Benefits I NA NA Finance I NA NA School Nutrition Program C / I Expanded Point of Sale / Food Service 80 P a g e

Current ERP Application Application Notes/Description Functional Area Preliminary System Migration Plan* ERP Availability** Expected ERP Module My Payments Plus Online student meal pay School Nutrition Program I NA NA Zortec/Local Government Current Payroll system for County and Schools TimeForce Timekeeping system for Sheriff and Fire Time and Attendance ESchedule Scheduling software for Sheriff Time and Attendance Quickbooks Budget tracking software for some County Departments Payroll R Core Payroll R Best of Breed NA C/I Best of Breed NA Budget R Core Strategic Asset Management Systems Schools Asset Management Fixed Assets I Extended Universe (Custom Built Unix System) Highway Purchasing System Purchasing C/I Core Budget Asset Management Purchasing Nova Highway Time Entry Time Entry C/I Core Time Entry TLC Library Management Library M NA NA Universe (Custom Built Unix System) Universe (Custom Built Unix System) Highway Fleet Management Highway Job Costing/Project Accounting Fleet Management Project Accounting Progress/Visual Recorder Registrar of Deeds System Registrar of Deeds C/I Best of Breed NA C/I Core Project Accounting Kronos Time Entry Schools Maintenance Time Entry C / I Core egov Trustee Bank Reconciliation Bank Reconciliation M NA NA Time Entry C / I Core Bank Reconciliation 81 P a g e

Current ERP Application Application Notes/Description Functional Area Preliminary System Migration Plan* ERP Availability** Expected ERP Module State of Tenn. ereporting State of TN department of education site Grant Accounting M Atrium Schools Library Management Library M NA NA Book Trax School Text Book Management Asset Management Maintenance Direct Work Order System - Schools Work Order M Extended NA Commerce Bank P-Card System Accounts Payable Inventory Direct Inventory Management - Schools Inventory C/I Extended Inventory Zortec/Local Government Core Financials M M Accounts Payable, General Ledger, Bank Reconciliation, Financial Reporting R Core Core Financials NA NA NA NA NA NA 82 P a g e

Appendix C: Sample Approach for /Implementation SAMPLE APPROACH FOR SELECTION OF MAJOR NEW TECHNOLOGY Based on expected acquisition of an ERP system in the future, an established technology acquisition approach is appropriate. A sample high level approach is as follows: Establish Functional / Technical Requirements: Define Criteria: Appropriate Purchasing Process: Evaluate Vendor Responses: Additional Due Diligence: Finalist Determination: Finalize Scope of Software License and Vendor Implementation Services: Negotiate Contract: A detailed list of functional and technical requirements should be established that reflects the needs for the ERP system. Involvement of the relevant County staff and users is critical. Steps to identify these requirements will vary but may include: identification of functional requirements, identification of best practices, involvement of process owners and customers, etc. Technical requirements will need to be identified as well. System selection criteria should be defined to assist with identifying how vendor / technology solution decisions will be determined. Formal RFP process should be used to request information, quotations or proposals as appropriate. An RFP format should be used that both are intended to capture the appropriate information regarding vendor solutions and ease vendor response analysis. Vendor responses should be evaluated based on the selection criteria including factors such as one time and ongoing costs, the solution s adherence to the County s system requirements, the background of the vendor, and their ability to provide the appropriate level of ongoing support and training. Semi-finalist vendors should be further evaluated and additional due diligence should be performed. Such due diligence should include activities such as system demonstrations, reference checking, and performing site visits as appropriate. The finalist vendor should be selected based on the analysis of the vendors solutions and considering the information gathered during the due diligence activities. The contract should be defined listing an agreed-upon matrix of roles and responsibilities for the required activities for all involved in the implementation and ongoing support of the system. Consideration should be given to the realistic services required to realize the envisioned benefits of the system. A contract should be negotiated with terms and conditions that are sufficient to protect the County s interest and that meet the spirit and intent of the transaction. Any pending contract should be reviewed by the County s legal counsel prior to completion. 83 P a g e

SAMPLE IMPLEMENTATION APPROACH FOR MAJOR NEW TECHNOLOGY Based on expected implementation of various new technologies in the future, an established technology implementation approach will be valuable to assist the effective adoption for technology initiatives. Best practice project management approaches, including the adoption of PMI s (Project Management Institute) PMBOK (Project Management Body of Knowledge) will be valuable to consider for future technology initiatives at the County. As such, a sample high level approach for technology implementation is as follows: 1. Project Initiation and Planning Phases: o Project Charter o Define Project Sponsor o Define Project Milestones o Define Roles & Responsibilities o Define templates, tools and a process for project administration (to do tracking, issues, meeting, status reporting, decisions, schedule) o Define method for tracking project costs o Identify project risks, impacts and mitigation approaches o Communications Planning o Understand Stakeholder Impact o Project Planning (scope, schedule, costs, quality, staffing, risk, communications) o Define meeting frequencies for the teams, team leads and leadership group o Define project success o Other activities as necessary 2. Execution and Controlling Phases: o Administer Project o Meetings and Status Reporting o Cost Management o Installation and Configuration o Process Mapping & Redesign: identifying specifics on how to incorporate the new tools into operations o Security o System Modifications o Testing and Quality Assurance o Training and Documentation o Data Conversion 3. Closing Phase: o Final Acceptance o Identify follow up items o Support Transition Plan from Vendor to Internal o Archive Project Records o Close out Contracts o Post project review activities 84 P a g e

Appendix D: ERP Cost Estimate Assumptions Various assumptions have been used in the evaluation of the cost estimate. There are certain assumptions relevant to specifically highlight, which include: 1. Complex componentization: There are many components and variables which could be modified and thus influence the specific outcomes. The intent of this ERP Needs Assessment is to focus on the assessment of core ERP functionality and provide recommendations for a strategic long term direction, rather than tactical plans. A detailed implementation plan for replacing the ERP will need to be developed, which may lead to changes in the estimated costs. 2. Input into Estimates: The financial information is based on three primary sources: County feedback, vendor information, and consultant experience. Input and feedback related to how the County staff envisioned future steps occurring was considered in the development of the assumptions. Further, Plante Moran consultants utilized their experience and responses to a Request for Information in order to provide the County with ranges for costing. 3. Nature of Estimates: Any cost estimates provided are broad estimates for planning purposes only. RFP proposal responses from the vendor community will provide more accurate cost estimates. 4. Exclusion of Process Redesign Costs: The implementation of a new ERP system will provide the County the opportunity to review its as-is business processes and identify any efficiencies/optimizations that could be achieved by streamlining and automating some of the related process activities via central tracking and electronic workflow. A significant portion of the total project ROI will result from the ability to redesign processes based on the capabilities available within the new ERP system. Some organizations choose to engage external professional services firms to assist with this process. For the cost estimate, there is an assumption that this will be an internally led activity. 6. Exclusion of Staff Backfill Costs: In developing the estimates, which quantified internal effort for the County staff who would be dedicated to the project, costs were not included for staff backfill. The County project managers will need to consider the potential of backfilling staff during the implementation effort. 85 P a g e

Appendix E: Sample System Roles & Responsibilities The following matrix of roles and responsibilities further outlines a sample governance structure for the County to consider for the system selection phase of a future ERP environment: Role Project Sponsor Project Manager / Project Management Team (PMO) Employee Type County Administrator of Finance Director Department Head(s) and/or Asst. Finance Director Responsibility Maintain the project vision Act as the project champion Be visibly committed to the project Identify and support the project manager Provide a strategic perspective when defining the needs for a future ERP and associated processes Lead the Steering Committee and remove project roadblocks Ensure that prompt and clear communications to department staff is conducted Manage project activities Oversee planning activities associated with project Work with the Steering Committee and other department leaders to coordinate resources to meet the project objectives. Ensure that project deliverables are reviewed by appropriate staff Provide progress updates to management, County Commission and other interested stakeholders Participate on the Project Steering Committee Participate in contract negotiations Develop, execute and coordinate selection and implementation plans for non-erp technology and process improvements 86 P a g e

Role Project Steering Committee ERP Process Owners and End-Users Technical Team Employee Type Project Sponsor Project Manager(s) IT Director Other Senior- Level Staff Process Owners and Process End- Users Responsibility Work with the Departments to ensure that all needs have been identified Work with staff to make project decisions Obtain necessary resources to meet project objectives. Determine vendor selection criteria Review and provide feedback on project deliverables Review and provide feedback on vendor proposals Participate in proposal analysis meeting Attend vendor demonstrations Conduct reference checking, site visits, and other due diligence activities Provide input and make timely decision on a recommended finalist vendor Participate in other project-related meetings Provide information on current processes, systems and shadow systems used Articulate needs and desires for a new ERM and associated processes Develop an understanding of how a future ERP and associated processes might operate Participate in developing, review and approve module specifications and specific interface requirements Review and provide feedback on appropriate sections of vendor proposal responses Participate in vendor demonstration planning Participate in software vendor demonstrations Provide demonstration / due diligence feedback Conduct due diligence on software vendors Review project deliverables for accuracy / completeness IT Staff Define technical requirements Review and provide feedback on vendor proposals Conduct due diligence on technical aspects of the vendors solutions Assess the impact of vendor solutions on technology infrastructure Ensure vendor solutions conform with technical standards 87 P a g e

Appendix F: As-Is Process Maps As part of the needs assessment process, Plante Moran documented twenty core as-is financial and human resource business processes as identified in the table below. All documented County As-Is business process maps are attached to this Appendix as well as provided in.pdf format on the project collaboration SharePoint site. Organization School School School School School School School School School School School County County County County County County County County County As-Is Business Process Payroll Time Entry Bank Reconciliation Budget Development Budget Adjustment Cash Receipting Invoice Processing (AP) Job Posting P-Card Purchasing Hiring Process Bank Reconciliation Budget Development Fixed Assets Grants and Projects Misc/Cash Receipting Payroll P-Card Purchasing (Purchasing and AP) Time Entry 88 P a g e

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{Thank You!} For more information contact: Scott Eiler, Partner 248-223-3447 scott.eiler@plantemoran.com Mike Riffel, Manager 312-602-3539 Mike.Riffel@plantemoran.com plantemoran.com