From
Robert Myers
Title
Ordinance amending the FY 2015/2016 Capital Improvement Projects Budget and authorize the City Manager to enter into a contract with Infor US Inc. for upgrades and implementation services for improvements to the current Lawson Financial System as follows: Re-configuration services for procurement and accounting modules in the amount of $127,440, Purchase and implementation of procurement card Employee Self Service (ESS) module in the amount of $60,000, Lawson training in the amount of $17,400 for a total project cost in the amount of $204,840.
Presenter
Robert Myers, Purchasing Manager
Recommended Action
Approve
Analysis
In August 2015 City staff contracted with a Lawson consultant to review the current business processes and make recommendations for improvements in the utilization of the Lawson Financial System. The Lawson consultant met with key staff in IT, Finance, and Budget to determine current processes, the current Lawson configuration, and to review best practices. From the review it was determined a number of current Lawson processes in the procurement, accounts payable, and asset management modules needed to be re-configured to align the City with best practices and GASB standards. Based upon the review and internal discussions, the consultant and staff recommend the following changes to align the City with best practices in the use of the Lawson financial system:
1. $127,440 for re-configuration services for the following modules: requisition, purchase order, accounts payable, asset management, matching, and inventory control. The re-configuration of these modules will help the City meet the goals and achieve the benefits stated below:
Goals:
1. Create a "three-way" match in Lawson between order, receipt, and payment
2. Divide responsibility for the receipt of goods and payment of goods
3. Fully implement asset management module
Benefits:
1. Confirmation a good/service is received prior to payment
2. Eliminates the use of "evaluated receipts settlement" i.e. "2-way match" which is believed to be the culprit behind the orphan record issue and is an uncommon business practice(consultant stated only one other company uses this method)
3. Allows for additional features to be used that are not available under the current system such as payment adjustments for estimated items such as shipping which reduces/eliminates the need to re-touch purchase orders
4. Provides stronger internal controls and aligns the City with GASB requirements for segregation of duties
5. Provides a central point of contact for City vendors on invoices and payment issues
6. Creates efficiency in the process and reduces duplication of work effort (related to errors in entry which requires Accounting and the Department to correct)
7. Audit trail of approval
8. Aligns the City with a best practice
2. $60,000 for the purchase of the procurement card ESS module and implementation. This module will help the City meet the goal and achieve the benefits stated below:
Goals:
1. Fully implement procurement card ESS module
Benefits:
1. Automates the creation of merchants for payment which improves the efficiency and time required for this process
2. Eliminates the need for a paper approval process and the need to use the JP Morgan website for the creation of monthly expense reports
3. Creates an electronic audit trail
3. $17,400 for indepth Lawson training for key staff on the modules that will be re-configured. This training will provide additional in-house knowledge to key staff that will be utilized in the design phase for the re-configuration of these modules.
The Finance & Government Committee recommended this item for approval at their December 15, 2015 meeting.
Financial Consideration
Funding for Lawson improvements for the total amount of $204,840 is available by appropriating and transferring the unobligated fund balance in the Capital Reserve Capital Fund (402590) WO #01610703 (Lawson Re-configuration and Upgrade) 61065 (contractual services) and 68420 (data processing software).
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE FY 2015/2016 CAPITAL IMPROVEMENT PROJECTS BUDGET BY TRANSFERRING AND APPROPRIATING $204,840 FROM THE UNOBLIGATED FUND BALANCE IN THE CAPITAL RESERVE FUND (402590), WO #01610703 (LAWSON RE-CONFIGURATION AND UPGRADE)
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. THAT THE FY 2015/2016 Capital Improvement Projects Budget be amended by approving an ordinance transferring and appropriating $204,840 from the unobligated fund balance in the Capital Reserve Fund (402590) WO #01610703 (Lawson Re-configuration and Upgrade).
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 5TH DAY OF JANUARY.